Alcoholic Drinks in Peru

Alcoholic Drinks in Peru
Euromonitor International
May 2021
ALCOHOLIC DRINKS IN PERU Passport i
LIST OF CONTENTS AND TABLES

EXECUTIVE SUMMARY .............................................................................................................. 1
COVID-19 impact on alcoholic drinks ....................................................................................... 1
COVID-19 country impact ......................................................................................................... 1
Company response................................................................................................................... 2
Retailing shift ............................................................................................................................ 2
On-trade vs off-trade split ......................................................................................................... 2
What next for alcoholic drinks? ................................................................................................. 3
Chart 1 Alcoholic Drinks Off-Trade Volume Sales Growth Scenarios: 2018-
2025 ............................................................................................................. 3
Chart 2 Alcoholic Drinks On-Trade Volume Sales Growth Scenarios: 2018-
2025 ............................................................................................................. 4
Chart 3 Drinks Impact of Soft Drivers on Off-Trade Volume Sales: 2018-2025 ........ 5
Chart 4 Drinks Impact of Soft Drivers on On-Trade Volume Sales: 2018-2025 ........ 5
MARKET BACKGROUND ............................................................................................................ 6
Legislation ................................................................................................................................ 6
Table 1 Number of On-trade Establishments by Type 2015-2020 ............................ 8
TAXATION AND DUTY LEVIES ................................................................................................... 9
Summary 1 Taxation and Duty Levies on Alcoholic Drinks 2020 .................................... 9
OPERATING ENVIRONMENT ................................................................................................... 10
Contraband/parallel trade ....................................................................................................... 10
Duty free ................................................................................................................................. 10
Cross-border/private imports .................................................................................................. 10
KEY NEW PRODUCT LAUNCHES ............................................................................................ 11
Outlook ................................................................................................................................... 11
MARKET INDICATORS ............................................................................................................. 11
Table 2 Retail Consumer Expenditure on Alcoholic Drinks 2015-2020 ................... 11
MARKET DATA .......................................................................................................................... 11
Table 3 Sales of Alcoholic Drinks by Category: Total Volume 2015-2020 .............. 11
Table 4 Sales of Alcoholic Drinks by Category: Total Value 2015-2020 ................. 12
Table 5 Sales of Alcoholic Drinks by Category: % Total Volume Growth 2015-
2020 ........................................................................................................... 12
Table 6 Sales of Alcoholic Drinks by Category: % Total Value Growth 2015-
2020 ........................................................................................................... 12
Table 7 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade:
Volume 2020 .............................................................................................. 12
Table 8 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: Value
2020 ........................................................................................................... 13
Table 9 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: %
Volume 2020 .............................................................................................. 13
Table 10 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: %
Value 2020 ................................................................................................. 13
Table 11 GBO Company Shares of Alcoholic Drinks: % Total Volume 2016-
2020 ........................................................................................................... 13
Table 12 Distribution of Alcoholic Drinks by Format: % Off-trade Value 2015-
2020 ........................................................................................................... 14
© Euromonitor International
ALCOHOLIC DRINKS IN PERU Passport ii
Table 13 Distribution of Alcoholic Drinks by Format and by Category: % Off-

trade Volume 2020 ..................................................................................... 15
Table 14 Forecast Sales of Alcoholic Drinks by Category: Total Volume 2020-
2025 ........................................................................................................... 15
Table 15 Forecast Sales of Alcoholic Drinks by Category: Total Value 2020-
2025 ........................................................................................................... 16
Table 16 Forecast Sales of Alcoholic Drinks by Category: % Total Volume
Growth 2020-2025 ..................................................................................... 16
Table 17 Forecast Sales of Alcoholic Drinks by Category: % Total Value
Growth 2020-2025 ..................................................................................... 16
DISCLAIMER ............................................................................................................................. 16
SOURCES.................................................................................................................................. 17
Summary 2 Research Sources ...................................................................................... 17
ALCOHOLIC DRINKS IN PERU Passport 1
ALCOHOLIC DRINKS IN PERU

EXECUTIVE SUMMARY
COVID-19 impact on alcoholic drinks

Due to the outbreak of COVID-19 in 2020, alcoholic drinks recorded a double-digit total
volume decline, with a significant decline seen in the on-trade. Lockdown periods in the country
required restaurants, bars and similar venues to close their doors, leading to a substantial
decline in sales. When venues were open, ongoing restrictions such as social distancing
partnered with consumers concerns of socialising in public to dampen volume on-trade growth
for the rest of 2020. For smaller venues, capacity limits and restrictions impacted trade, with
many unable to be profitable enough, choosing instead to remain closed.
While the on-trade saw a significant decline, off-trade volume sales of alcoholic drinks also
declined; however, this was not as severe as the fall seen in the on-trade. With some
consumers out of work and many uncertain about their financial security, declines in the off-
trade were driven by increased price sensitivity. While certain spirits became fashionable during
the review period, including gin, the lockdown period and pandemic led to a decline in the
consumption of these products.
However, while beer and spirits recorded an off-trade decline, RTDs and wine continued to
drive positive off-trade growth, with wine improving upon growth seen in 2019. With the on-trade
closed, these beverages benefited from being easily accessible in grocery retailers, with some
consumers enjoying RTDs and wine in the evenings to help relax during a stressful time. In
addition, wine already had a strong link with home consumption in Peru, with many consumers
enjoying the drink within the household, of an evening or with a meal. Still red wine saw the
highest growth, as red wine is often associated with having benefits to health, aiding sales of the
drink during the health crisis. RTDs also benefited from their low price-points during a price-
sensitive time, while the single-serving offering was more practical and cheaper, especially
when compared to spirits.
RTDs also offered affordable indulgence, which was especially seen during the first lockdown
period in March, helping consumers relax and take a break from the routine of the day. Due to
ongoing price concerns, a decline in premium offerings was seen during 2020, with consumers
seeking deals and discounts. This impacted expensive craft beers, high-end wines and premium
spirits. In response, premium offerings boosted their promotional strategies, with many
implementing digital strategies to make their products more accessible.
The pandemic and lockdown periods generated new occasions for consumption in 2020, with
a rise in consumption at home, with the family and through deliveries and takeaway. As such,
growth was seen in the online channel, with e-commerce registering higher share.
COVID-19 country impact

A lockdown in Peru began on 16 March 2020. It was a strict lockdown, with enforcement in
place and consequences for those breaching restrictions. The restrictions on movement meant
that people were only allowed to leave home to carry out essential tasks and a curfew was in
place between 20.00hrs and 05.00hrs. Driving a car was forbidden, except for people who
needed to use their cars to continue to travel to work, but they would need to obtain official
permission to do so. Homeworking was recommended for all but essential roles. The country’s
borders were also closed. Only essential retail or service outlets remained opened, meaning
mainly grocery stores, pharmacies and banks. Even in these outlets only products considered to
be of prime necessity were being sold. Schools were closed from the start of the lockdown.
On 4 May, the government announced that some measures would be eased; for example,
children would be allowed out once a day and food deliveries would be allowed. In July the
government announced a phased reopening which would include the mining and textile
industries again beginning operations. Restaurants and retail shops also began to go through a
phased reopening with various restrictions in place, such as social distancing and capacity
limits.
As autumn approached, cases began remerging once again. Further regulations have been
implemented in order to combat this, with harsh punishments for those who fail to abide. After
having its borders closed since March and all flights grounded, Peru has reopened its borders to
seven countries within the South American region in October.
However, the start of 2021 saw an unusually ferocious wave of infections. The government
therefore announced new lockdowns for 10 of its 25 regions starting on 31 January 2021,
including the capital Lima, as cases rise, and hospitals reach a breaking point. The country still
has one of the highest excess death rates in the world, and its large rural population, which
regularly moves between country and city in search of work, is unusually vulnerable, and poorly
served in terms of health provision. A further rise in cases to April led to a four-day lockdown
over the Easter weekend. The country’s vaccine roll-out has been slow and did not start until
February 2021, with just 2% of the population having had one vaccination by late-April and 1%
being fully vaccinated.
Company response
Due to the outbreak of COVID-19 in 2020, players responded by offering different retail
experiences and services. Various forms of e-commerce emerged, offering hybrid strategies
and 100% digital orders and deliveries. E-commerce became increasingly relevant during the
year, as some consumers migrated to the channel, perceiving it to be a safer form of retail. As
such, players responded accordingly, improving their delivery and ordering services.
AB InBev focused on e-commerce in 2020, with its success aligned to it being well integrated
into the company’s overall offering, focusing on delivery times and adhering to protocols.
Backus took advantage of its strong distribution channel to deliver products sold through the e-
commerce platform. For one of the most important brands of craft beer, Candelaria, e-
commerce represented the opportunity to access different consumers. For other brands, e-
commerce was an opportunity to reach consumers and offer them better prices than at physical
retailers.
Retailing shift
During Q1 of 2020, production was stopped in line with COVID-19 restrictions. Manufacturers
opened again in June, with operations going ahead with reduced human resource and other
limitations. During Q1, retailers were selling their remaining stock for three months, which led to
some stockpiling in wine, leading to a slight shortage in the month of May.
While sales continued to be led by traditional grocery retailers in 2020, e-commerce saw an
increase in growth. For spirits and wines, the online channel represented a supply opportunity
directly to consumers (B2C), with many players improving their digital strategies and online
presence to align and respond to the heightened demand.
On-trade vs off-trade split

There was a channel shift in 2020, with on-trade closures impacting sales during the year.
With venues closed, the principle source of alcoholic drinks was through the off-trade, mainly
through retail. Therefore, retail sales of alcoholic drinks increased in 2020, benefiting from being
easily accessible in open essential retailers during the COVID-19 lockdowns, shifting volume
sales from the on-trade to off-trade.
However, many independent stores closed, due to low footfall and supply problems. Those
that adapted to consumer’s needs, including offering delivery and credit card payments,
performed better throughout the year.
What next for alcoholic drinks?

Due to continued COVID-19 restrictions and regulations, on-trade volume sales will continue
to be challenged in Peru in 2021. However, on-trade growth is set to be positive in 2022, as
consumers return to restaurants, bars and venues that serve alcoholic drinks. On-trade growth
will then continue to remain positive, driven by sales of RTDs, boosted by rising popularity with
younger adult consumers of legal drinking age. However, all categories in alcoholic drinks are
set to drive positive on-trade growth from 2022.
All areas in off-trade volume sales are set to see a decline in 2021, with RTDs and wine
declining the most, in comparison to their heightened growth in 2020. In addition, all areas are
set to struggle due to growing price sensitivity during the economic recession, while off-trade
sales will also dip due to returning competition from the on-trade. As a result, off-trade volume
growth will not be positive until 2022-2023, also driven by growth in RTDs and wine. For wine,
off-trade volume growth is predicted to be driven by sparkling wines, as socialising returns in the
country and events and occasions take place once more. Growth for RTDs will be driven by
product innovation, offering unique and interesting flavour combinations, and the convenience of
having pre-mixed, on-the-go beverages, which are also cheaper than investing in spirits.
Heightened price sensitivity will influence alcoholic drink purchasing habits over the forecast
period, with the economic recession leading to many cutting back on spending or migrating to
cheaper offerings. Premiumisation, which was growing prior to the outbreak, is not likely to
recover in the early forecast period; however, growth in premiumisation is set to recover over
the longer term. This will include premium spirits and craft beers. Similarly, demand for imported
premium lager is projected to see sustained growth as the forecast period progresses.
Chart 1 Alcoholic Drinks Off-Trade Volume Sales Growth Scenarios: 2018-2025
Source: Euromonitor International
Chart 2 Alcoholic Drinks On-Trade Volume Sales Growth Scenarios: 2018-2025
Chart 3 Drinks Impact of Soft Drivers on Off-Trade Volume Sales: 2018-2025
Chart 4 Drinks Impact of Soft Drivers on On-Trade Volume Sales: 2018-2025
MARKET BACKGROUND
Legislation
Legal purchasing age and legal drinking age

▪ Law No. 28681 bans the sale of alcoholic drinks to individuals under 18 years old in Peru. The
country’s legal drinking age continues to be 18 in 2020, when individuals, by law, reach
adulthood.
▪ In 2014, the media company RPP, in association with the organisation DEVIDA, the National
Commission for Development and Life without Drugs, launched the campaign ‘Do not give
minors, adults’ problems’, with the aim of preventing the sale of alcohol to minors. DEVIDA
and the National Police also launched a campaign called Red Card, used at soccer matches,
to prevent the sale and consumption of alcohol to/by minors. Campaigns are carried out
continually by municipalities and the police to remind retailers to avoid selling alcohol to
minors and reminding them of the penalties associated with doing so. According to studies by
DEVIDA, almost half of children aged between 11 and 13 start drinking while accompanied by
their parents or relatives at home or, in cities outside of Lima, at traditional parties.
▪ Diageo Perú’s La Bomba programme was renewed in 2018 for the fourth consecutive year.
The programme seeks to help minors avoid alcohol consumption. It has reached 5,300
students and approximately 400 parents.
Drink driving
▪ In 2014, traffic laws were revised and the permitted blood alcohol level was reduced to
0.25g/litre for individuals providing a public transportation service for people or cargo. The
driver is to be incarcerated for 24 hours. For drivers of other vehicles, the blood alcohol level
should not exceed 0.5g/litre. The fine for driving under the influence of alcohol is 50% of the
UIT (tax unit), which in 2018 was PEN4,150 (paying a total of PEN2,075). The driver’s license
is suspended for three years.
▪ With the increase in the fine and the suspension of the licence, drivers are more aware of the
consequences of drinking and driving.
Advertising
▪ Law 28681, approved in 2006, regulates not only the sale and consumption of alcoholic
drinks, but also publicity. In 2016, this law was modified in articles 4, 7, 8 and 10.
▪ Article 4 now includes a regulation about time restrictions on the sale of alcohol, which are
given by the Municipality. Article 7 states that the phrase “Drinking alcohol in excess is
harmful and driving under the influence is a crime” should be included in a space no smaller
than 20% of the product’s label or packaging. Article 8 states that the phrase “Drinking alcohol
in excess is harmful and driving under the influence is a crime” should be included in a space
no smaller than 20% of the publicity banner. It is forbidden to use arguments that induce the
consumption of alcohol. Article 10 states that prevention campaigns are obligatory twice a
year, and should be carried out by the three levels of the government.
▪ Both on-trade and off-trade outlets must secure authorisation to sell alcoholic drinks. The law
requires a visible sign stating “The sale of alcoholic drinks to minors is forbidden” and “If you
have drunk alcoholic drinks, do not drive”. In addition, outlets whose principal business is the
sale of alcoholic drinks must deny access to minors.
▪ According to the law, vending machines can only be placed in outlets where minors are
forbidden to enter, or in places where someone can supervise the machine to ensure it is
used only by adults.
▪ Prevention campaigns are managed by the Health Ministry and supported by central or
regional governments. Schools, academies and universities are the priority in order to prevent
underage drinking and educate young adults about drinking. Other organisations, such as
DEVIDA and CEDRO, also promote the responsible consumption of alcohol.
▪ In 2017, manufacturers and distributors of alcoholic drinks that are members of Lima’s
Chamber of Commerce, which include the biggest players in the market, subscribed to the
Code of Ethics and Self-Regulation in matters of Advertising and Selling. In doing so, they
agreed to avoid using public figures who appeal to children or teenagers in their
advertisements. In addition, they are forbidden to include advertisements in shows,
publications or events that are aimed at minors. They must also include in their digital
advertisements the phrase “Drinking alcohol to excess is harmful”, and state that access is
restricted to people over 18 years, asking persons to enter their birth date and denying access
if they are minors. This last restriction is not required by law. Internal sanctions can be applied
if the Ethics Committee determines that there has been a breach of the agreement.
Smoking ban
▪ In July 2008, law 28705, the Prevention and Control of the Risks of Tobacco Consumption
Law, was approved. It established rules for the commercialisation, consumption and publicity
of tobacco products. In April 2010, law 29517 was approved, modifying some parts of the
original law and making it stricter.
▪ A new law in 2010 established that areas to be 100% free from tobacco smoke, which
included all health institutions, educational institutions, government offices and workplaces
would cover public places and public transportation. In areas described as 100% free from
tobacco smoke, there must be signs indicating “It is forbidden to smoke in public places
because it is harmful” and/or “100% free from tobacco smoke area”.
▪ The 2010 law established the obligation to display different health and graphic warnings on
tobacco packaging, in a space bigger than 50% of the package. The graphics and phrases
are arresting, as those affected by tobacco consumption or tobacco-related diseases are
featured on the packaging. The phrases are crude and warn about the health implications of
smoking. The law established several graphics and phrases which must be alternated every
six months. In addition, every outlet selling tobacco must display a sign stating “Tobacco
consumption is harmful; sale to minors is forbidden”. Publicity for tobacco products is also
highly restricted; it cannot be placed within 500m of health institutions, educational institutions
and sports centres. In addition, publicity is not allowed through mass media such as radio or
television.
Opening hours
▪ In March 2011, a new regulation was approved which set the limit at 03.00hrs for selling
alcoholic drinks in any on-trade or off-trade outlet. However, the modification to law 28681
indicates that the municipality in which the outlet is located will establish the time of closure of
alcohol sale.
On-trade establishments
▪ Prior to the outbreak of COVID-19, on-trade outlets continued to expand in Peru over the
review period, with consumer foodservice outlets such as restaurants and bars being the most
important. Rising purchasing power and disposable incomes, together with easier access to
credit and the higher penetration of the media through mobile devices encouraged individuals
to dine out more. The gastronomic boom in Peruvian cuisine was phenomenon for
consumers, and it also boosted consumer interest in dining out.
▪ Related of the artisanal beer consumption, prior to the outbreak of COVID-19, some brands
were offering a direct-to-consumer channel through their own bars and points of sales. The
most significant was Barbarian. Barbarian had taken advantage of the pairing trend and
offered meals that were linked to specific beer consumption. Traditionally, beer was closely
linked to the consumption of fish and shellfish, especially in the summer season, as well as
the consumption of fast food, although to a lesser extent. The more recent pairings have been
better beer with food, especially fast food (hamburgers, etc.). In this sense, the pairings take
advantage of the marked Peruvian affinity for enjoying food to enhance the experience of beer
consumption. In addition to Barbarian, Barranco Beer Company made its own beers and
operated three stores in Lima.
▪ However, due to the outbreak of COVID-19 in 2020, on-trade outlets were significantly,
negatively impacted. Venues remained closed, operating only through delivery, for five
months. Many businesses closed for the year, as they were unable to offer deliveries, and
could not continue to be profitable during the uncertain time. For some others, although they
were able to offer delivery, their fixed costs exceeded sales, and this led to a permanent
closure.
Table 1 Number of On-trade Establishments by Type 2015-2020
Subcategory Data Type 2015 2016 2017 2018 2019
Bars/Pubs Units/ 4.270,00 4.637,00 4.985,00 5.335,00 5.681,00

outlets
Cafés Units/ 2.649,00 2.815,00 2.982,00 3.159,00 3.302,00
outlets
Full-Service Restaurants Units/ 47.494,00 51.190,00 55.031,00 58.921,00 62.632,00
outlets
Self-Service Cafeterias Units/ 66 68 68 68 68
outlets
Street Stalls/Kiosks Units/ 103.320, 107.565, 110.892, 117.261, 123.750,
outlets 00 00 00 00 00
Subcategory 2020
Bars/Pubs 3.309,00
Cafés 1.837,00
Full-Service Restaurants 41.745,00
Self-Service Cafeterias 68
Street Stalls/Kiosks 97.822,00
TAXATION AND DUTY LEVIES

▪ Changes to the Selective Consumption Tax (ISC) were introduced in 2018, separating
products according to their alcohol level.
▪ Alcoholic drinks with an alcohol level between 0% and 6% ABV must pay PEN1.25 per litre
sold, or 35% of the msp value, whichever is the greater amount of taxes to be paid. Previous
regulations considered 30% of the msp value only.
sold, or 25% of the msp value, whichever is the greater amount of taxes to be paid. This
range is new; previously, it was included in the 6% to 20% ABV range.
sold, or 30% of the msp value, whichever is the greater amount of taxes to be paid. The
previous regulations considered 25% of the msp value only, and PEN2.5 per litre sold.
▪ Alcoholic drinks with an alcohol level above 20% ABV must pay PEN3.40 per litre sold, or
40% of the msp value, whichever is the greater amount of taxes to be paid. The previous
regulations considered 25% of the msp value only.
▪ To improve the tax system, in June 2019 Supreme Decree No. 181-2019-EF was introduced
with changes made to the measures that were taken in 2018 in terms of the ISC and Income
Tax (IR). The manner in which the ISC taxed beer was modified to the fixed amount of S /
2.25 per litre. This fixed ISC amount is equivalent to the mixed rate that was being applied;
that is, there is no effect on the average tax burden. The rates, applicable to the rest of
alcoholic beverages between 0° and 6°, were also modified, considering a specific ISC of S /
1.25 per litre and an ISC of 20%.
▪ At the beginning of 2020, the amounts of the Selective Consumption Tax (ISC) applied to
cigarettes, pisco and liquors with more than 20 degrees of alcohol such as rum, whiskey,
vodka, among others, were raised. For pisco, the ISC increased from S / 1.50 to S / 2.17 per
litre. The change for those drinks with more than 20 degrees of alcohol such as rum, whiskey,
vodka, among others, is an increase from S / 3.40 to S / 3.47 per litre.
Summary 1 Taxation and Duty Levies on Alcoholic Drinks 2020
Excise tax
Value Volume/Value Unit
Beer PEN2.25 per litre sold or
35% msp value
Still Wine PEN2.50- PEN 2.70 per litre sold or
Sparkling Wine 25%-30% msp value
Spirits PEN3.40 per litre sold or
40% msp value
RTDs PEN2.50 per litre sold or
25% msp value
Cider/Perry - -

Note: The rates applicable to the rest of alcoholic beverages between 0° and 6° were also modified,
considering a specific ISC of S / 1.25 per litre and an ISC of 20%.
OPERATING ENVIRONMENT
Contraband/parallel trade
▪ The recent ISC tax increase will boost growth in demand for informal alcoholic drinks,
especially counterfeit and contraband products. This situation not only affects the amount of
tax the government collects, but it also affects companies, as their sales decline and their
brands are susceptible to poorer images. In addition, consumers are exposed to poor-quality
products. There are no definitive numbers on the size of the informal market in Peru.
▪ On February 14, 2019, the Supreme Decree that approved the regulation of Law No. 29632
by Ministerial Resolution No. 046-2019-Produce was published. It is meant to eradicate the
expansion and commercialisation of informal alcoholic drinks, adulterated or unfit for human
consumption.
Duty free
▪ The main duty free shop in Peru is located at Jorge Chavez airport in Lima, and there is
another in the Rodriguez Ballón airport in Cuzco. Given the small number of duty free shops
across the country, sales of alcoholic drinks through this channel are minimal.
▪ The Tacna free zone is important for alcoholic drinks in Peru, as it receives a high proportion
of imports that enter the country or goods that are re-exported to other countries. Products
that enter the country do so formally, paying the necessary taxes, or no taxes if sold only in
the free zone. However, most of the products entering the country to be sold in Tacna go
illegally to other cities in Peru, representing the main source of contraband.
▪ Due to the outbreak of COVID-19 in 2020, duty free sales were negatively impacted.
Cross-border/private imports
▪ Cross-border/private imports do not play an important role in alcoholic drinks in Peru.
KEY NEW PRODUCT LAUNCHES

▪ New offerings were seen across the landscape in 2020. Golden value beer was launched,
along with Michelob Ultra and Revolución; a light beer with a contemporary design. Heineken
entered the market.
▪ New RTDs that entered the market included sparkling wine Viña Vieja, Coca Cola’s launch of
Topo Chico Hard Seltzer and Ab InBev’s launch of Mike’s Hard Lemonade. Spirits saw the
launch of Passport Scotch
Outlook
▪ RTDs saw solid growth in 2020, despite the outbreak of COVID-19. The presence of Coca
Cola is set to boost growth over the coming years, as well as new brands entering the
landscape. Players such as Four Loko, have been growing strongly. A new consumption
offering of a single serving can which is practical, will continue to drive sales across the
coming years.
▪ The presence of Golden in the beer market will boost the value landscape over the forecast
period, with a highly competitive price per litre. The beer itself is not subject to taxes, so it has
an important advantage. However, beer at the lower end of the market will remain popular,
especially Cristal and regional offerings including Arequipeña and Pisen Trujillo.
▪ The entry of Heineken into the local market by the hand of Aje, will boost the sector. The
global brands that Heineken offers, in addition to Heineken itself, will benefit consumers,
offering a wider variety.
MARKET INDICATORS
Table 2 Retail Consumer Expenditure on Alcoholic Drinks 2015-2020
PEN million
2015 2016 2017 2018 2019 2020
Total 8,803.0 9,496.9 10,033.2 10,574.8 11,125.9 10,358.2

Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Note: 2019 data is forecast
MARKET DATA
Table 3 Sales of Alcoholic Drinks by Category: Total Volume 2015-2020
2015 2016 2017 2018 2019 2020
Beer (million litres) 1,416.6 1,447.6 1,474.0 1,468.3 1,459.7 1,250.0

Cider/Perry ('000 litres) - - - - - -
RTDs ('000 litres) 677.1 862.6 1,303.7 1,491.5 2,303.4 2,558.8
Spirits ('000 litres) 19,066.6 21,594.8 23,567.1 24,697.1 26,276.8 24,466.7
Wine (million litres) 39.5 40.7 41.7 43.3 44.2 45.1
Alcoholic Drinks 1,475.8 1,510.7 1,540.6 1,537.8 1,532.4 1,322.1
(million litres)
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 4 Sales of Alcoholic Drinks by Category: Total Value 2015-2020
PEN million
2015 2016 2017 2018 2019 2020
Beer 12,685.9 13,599.3 15,016.0 16,205.0 16,944.9 15,925.2

Cider/Perry - - - - - -
RTDs 10.0 13.6 22.1 26.6 42.0 45.7
Spirits 1,843.6 2,182.9 2,305.4 2,453.5 2,647.8 2,275.5
Wine 1,043.1 1,101.0 1,183.4 1,273.7 1,416.6 1,286.1
Table 5 Sales of Alcoholic Drinks by Category: % Total Volume Growth 2015-2020
% total volume growth

2019/20 2015-20 CAGR 2015/20 Total
Beer -14.4 -2.5 -11.8

Cider/Perry - - -
RTDs 11.1 30.5 277.9
Spirits -6.9 5.1 28.3
Wine 2.0 2.7 14.2
Alcoholic Drinks -13.7 -2.2 -10.4
Table 6 Sales of Alcoholic Drinks by Category: % Total Value Growth 2015-2020
% local currency, current value growth
2019/20 2015-20 CAGR 2015/20 Total
Beer -6.0 4.7 25.5

Cider/Perry - - -
RTDs 8.8 35.6 358.8
Spirits -14.1 4.3 23.4
Wine -9.2 4.3 23.3
Alcoholic Drinks -7.2 4.6 25.3
Table 7 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: Volume 2020
Off-trade On-trade Total
Beer (million litres) 1,020.1 229.8 1,250.0

Cider/Perry ('000 litres) - - -
RTDs ('000 litres) 2,545.9 12.9 2,558.8
Spirits ('000 litres) 21,705.9 2,760.8 24,466.7
Wine (million litres) 39.1 6.0 45.1

Alcoholic Drinks (million litres) 1,083.5 238.6 1,322.1
Table 8 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: Value 2020
PEN million
Beer 11,106.8 4,818.4 15,925.2

Cider/Perry - - -
RTDs 45.1 0.6 45.7
Spirits 1,267.8 1,007.7 2,275.5
Wine 967.3 318.8 1,286.1
Alcoholic Drinks 13,387.0 6,145.5 19,532.5
Table 9 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: % Volume 2020
% volume analysis
Beer 81.6 18.4 100.0

Cider/Perry - - -
RTDs 99.5 0.5 100.0
Spirits 88.7 11.3 100.0
Wine 86.8 13.2 100.0
Alcoholic Drinks 82.0 18.0 100.0
Table 10 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: % Value 2020
% value analysis
Beer 69.7 30.3 100.0

Cider/Perry - - -
RTDs 98.7 1.3 100.0
Spirits 55.7 44.3 100.0
Wine 75.2 24.8 100.0
Table 11 GBO Company Shares of Alcoholic Drinks: % Total Volume 2016-2020
% total volume
Company 2016 2017 2018 2019 2020
Anheuser-Busch InBev NV 94.9 94.7 94.4 92.3 90.7
Santiago Queirolo SA 1.1 1.1 1.2 1.2 1.7

Viña Tacama SA 0.7 0.7 0.7 0.7 1.0
Cartavio Rum Co SAC 0.5 0.6 0.6 0.7 0.8
Bodegas y Viñedos 0.4 0.4 0.5 0.5 0.7
Tabernero SA
Diageo Plc 0.2 0.2 0.2 0.3 0.3
Pernod Ricard Groupe 0.1 0.1 0.1 0.1 0.1
Viña Concha y Toro SA 0.1 0.1 0.1 0.1 0.1
Aje Group 0.1 0.1 0.1 0.1 0.1
Destilerías Unidas SAC - - - - -
Others 1.9 1.9 2.0 4.0 4.6
Total 100.0 100.0 100.0 100.0 100.0
Table 12 Distribution of Alcoholic Drinks by Format: % Off-trade Value 2015-2020
% off-trade
2015 2016 2017 2018 2019 2020
Store-Based Retailing 100.0 100.0 100.0 100.0 100.0 98.5

- Grocery Retailers 100.0 100.0 100.0 100.0 100.0 98.5
-- Modern Grocery 25.6 28.8 30.4 30.7 32.8 33.4
Retailers
--- Convenience Stores 0.1 0.2 0.2 0.2 0.2 0.2
--- Discounters - - - - - -
--- Forecourt Retailers 2.3 2.5 2.7 2.7 2.8 2.8
--- Hypermarkets 9.6 10.3 10.8 10.9 12.6 12.4
--- Supermarkets 13.7 15.9 16.8 16.9 17.2 18.0
-- Traditional Grocery 74.4 71.2 69.6 69.3 67.2 65.1
Retailers
--- Food/drink/tobacco 18.5 17.2 16.7 16.6 16.0 15.4
specialists
--- Independent Small 55.8 54.0 52.9 52.7 51.2 49.1
Grocers
--- Other Grocery - - - - - 0.6
Retailers
- Non-Grocery Specialists - - - - - -
-- Drugstores/ - - - - - -
parapharmacies
-- Other Non-Grocery - - - - - -
Alcoholic Drinks
Specialists
- Mixed Retailers - - - - - -
-- Department Stores - - - - - -
-- Mass Merchandisers - - - - - -
-- Variety Stores - - - - - -
-- Warehouse Clubs - - - - - -
Non-Store Retailing - - - - - 1.5
- Direct Selling - - - - - -
- Homeshopping - - - - - -
- E-Commerce - - - - - 1.5
- Vending - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Table 13 Distribution of Alcoholic Drinks by Format and by Category: % Off-trade Volume

2020
% off-trade
Beer Cider/Perry RTDs Spirits Wine
Store-Based Retailing 98.6 0.0 97.5 98.0 97.5

- Grocery Retailers 98.6 0.0 97.5 98.0 97.5
-- Modern Grocery 18.5 0.0 26.6 30.2 38.1
Retailers
--- Convenience Stores 1.2 0.0 0.5 0.5 0.1
--- Discounters 0.0 0.0 0.0 0.0 0.0
--- Forecourt Retailers 1.8 0.0 8.1 2.0 1.1
--- Hypermarkets 8.8 0.0 9.8 15.6 20.0
--- Supermarkets 6.7 0.0 8.2 12.1 16.9
-- Traditional Grocery 80.1 0.0 70.9 67.8 59.4
Retailers
--- Food/drink/tobacco 19.7 0.0 9.4 49.1 53.8
specialists
--- Independent Small 60.4 0.0 61.5 18.7 5.6
Grocers
--- Other Grocery 0.0 0.0 0.0 0.0 0.0
Retailers
- Non-Grocery Specialists 0.0 0.0 0.0 0.0 0.0
-- Drugstores/ 0.0 0.0 0.0 0.0 0.0
parapharmacies
-- Other Non-Grocery 0.0 0.0 0.0 0.0 0.0
Alcoholic Drinks
Specialists
- Mixed Retailers 0.0 0.0 0.0 0.0 0.0
-- Department Stores 0.0 0.0 0.0 0.0 0.0
-- Mass Merchandisers 0.0 0.0 0.0 0.0 0.0
-- Variety Stores 0.0 0.0 0.0 0.0 0.0
-- Warehouse Clubs 0.0 0.0 0.0 0.0 0.0
Non-Store Retailing 1.4 0.0 2.5 2.0 2.5
- Direct Selling 0.0 0.0 0.0 0.0 0.0
- Homeshopping 0.0 0.0 0.0 0.0 0.0
- E-Commerce 1.4 0.0 2.5 2.0 0.0
- Vending 0.0 0.0 0.0 0.0 2.5
Total 100.0 0.0 100.0 100.0 100.0
Table 14 Forecast Sales of Alcoholic Drinks by Category: Total Volume 2020-2025
Million litres
2020 2021 2022 2023 2024 2025
Beer 1,250.0 1,346.6 1,375.1 1,407.1 1,440.1 1,470.8

RTDs 2.6 2.3 2.3 2.8 3.2 3.8
Spirits 24.5 24.1 25.2 26.6 28.0 29.3
Wine 45.1 39.9 41.5 42.5 43.6 44.6
trade sources
Table 15 Forecast Sales of Alcoholic Drinks by Category: Total Value 2020-2025
PEN million
2020 2021 2022 2023 2024 2025
Beer 15,925.2 16,319.9 18,230.8 19,215.2 20,293.8 21,431.5

RTDs 45.7 47.9 49.8 61.6 74.1 89.0
Spirits 2,275.5 2,295.6 2,794.3 3,083.0 3,374.9 3,694.1
Wine 1,286.1 1,308.1 1,453.1 1,525.6 1,603.2 1,683.1
trade sources
Table 16 Forecast Sales of Alcoholic Drinks by Category: % Total Volume Growth 2020-
2025
% total volume growth

2020/21 2020-25 CAGR 2020/25 Total
Beer 7.7 3.3 17.7

Cider/Perry - - -
RTDs -10.3 8.1 47.8
Spirits -1.6 3.7 19.8
Wine -11.5 -0.2 -1.0
trade sources
Table 17 Forecast Sales of Alcoholic Drinks by Category: % Total Value Growth 2020-
2025
% local currency, constant value growth
2020/2021 2020-25 CAGR 2020/25 Total
Beer 2.5 6.1 34.6

Cider/Perry - - -
RTDs 4.9 14.3 94.7
Spirits 0.9 10.2 62.3
Wine 1.7 5.5 30.9
trade sources
DISCLAIMER
Forecast and scenario closing date: 3 May 2021
Report closing date: 18 May 2021
Analysis and data in this report give full consideration to consumer behaviour and market
performance in 2021 and beyond as of the dates above. For the very latest insight on this
industry and consumer behaviour, at both global and national level, readers can access
strategic analysis and updates on www.euromonitor.com and via the Passport system, where
new content is being added on a systematic basis.
SOURCES
Sources used during the research included the following:
Summary 2 Research Sources

Official Sources Dirección General de Salud Ambiental
(DIGESA)
INEI
Instituto Nacional de Defensa de la Propiedad

Intelectual (Indecopi)
Instituto Nacional de Estadística e Informática
Ministerio de la Produccion (PRODUCE)
SNI Comité de Bebidas Alcohólicas
Sociedad Nacional de Industria (SNI)
Superintendencia de Mercado de Valores

(SMV)
Superintendencia Nacional Tributaria

(SUNAT)
Trade Associations Asociación de Productores de Pisco de Ica
Asociación Latinoamericana de Fabricantes

de Cerveza (ALAFACE)
Asociación Nacional de Anunciantes del Perú

(ANDA)
Asociación Peruana de Consumidores y

Usuarios (ASPEC)
Bureau National Interprofessionnel du Cognac

(BNIC)
Cámara de Comercio de Lima
Cámara de Comercio de Trujillo
Cámara Nacional de la Industria Tequilera
Comision Nacional del Pisco (Conapisco)
Comité de Industria Vitivinicola
Comité Interprofessionnel du Vin de

Champagne (CIVC)
Office International de la Vigne et du Vin
Scotch Whisky Association
Trade Press Agencia Andina de Noticias
Agencia Orbita
Agencia Peru Com
America Economía
Be Strong Business Consulting
Club Darwin
Dia 1 El Comercio
Diario Correo
Diario Expreso
Diario Gestión
Diario La República
Drinks International
El Comercio
El Peruano
Emerging Markets Information Service
Gestion
Noticias Terra
Peru 21
Peru.com
Radio Programas del Peru
Report Peru
Revista Business
Semana Economica
Universia
Wine & Spirits International
World Drink Trends

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LIST OF CONTENTS AND TABLES

Table 13 Distribution of Alcoholic Drinks by Format and by Category: % Off-

ALCOHOLIC DRINKS IN PERU

COVID-19 impact on alcoholic drinks

COVID-19 country impact

On-trade vs off-trade split

What next for alcoholic drinks?

Chart 1 Alcoholic Drinks Off-Trade Volume Sales Growth Scenarios: 2018-2025

Source: Euromonitor International

Chart 2 Alcoholic Drinks On-Trade Volume Sales Growth Scenarios: 2018-2025

Source: Euromonitor International

Chart 3 Drinks Impact of Soft Drivers on Off-Trade Volume Sales: 2018-2025

Source: Euromonitor International

Chart 4 Drinks Impact of Soft Drivers on On-Trade Volume Sales: 2018-2025

Source: Euromonitor International

Legal purchasing age and legal drinking age

Table 1 Number of On-trade Establishments by Type 2015-2020

Subcategory Data Type 2015 2016 2017 2018 2019

Bars/Pubs Units/ 4.270,00 4.637,00 4.985,00 5.335,00 5.681,00

TAXATION AND DUTY LEVIES

Summary 1 Taxation and Duty Levies on Alcoholic Drinks 2020

Value Volume/Value Unit

Beer PEN2.25 per litre sold or

35% msp value

Still Wine PEN2.50- PEN 2.70 per litre sold or

Sparkling Wine 25%-30% msp value

Spirits PEN3.40 per litre sold or

40% msp value

RTDs PEN2.50 per litre sold or

25% msp value

Source: Euromonitor International

KEY NEW PRODUCT LAUNCHES

Total 8,803.0 9,496.9 10,033.2 10,574.8 11,125.9 10,358.2

2015 2016 2017 2018 2019 2020

Beer (million litres) 1,416.6 1,447.6 1,474.0 1,468.3 1,459.7 1,250.0

Table 4 Sales of Alcoholic Drinks by Category: Total Value 2015-2020

Beer 12,685.9 13,599.3 15,016.0 16,205.0 16,944.9 15,925.2

Table 5 Sales of Alcoholic Drinks by Category: % Total Volume Growth 2015-2020

% total volume growth

Beer -14.4 -2.5 -11.8

Table 6 Sales of Alcoholic Drinks by Category: % Total Value Growth 2015-2020

% local currency, current value growth

2019/20 2015-20 CAGR 2015/20 Total

Beer -6.0 4.7 25.5

Table 7 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: Volume 2020

Off-trade On-trade Total

Beer (million litres) 1,020.1 229.8 1,250.0

Wine (million litres) 39.1 6.0 45.1

Table 8 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: Value 2020

Beer 11,106.8 4,818.4 15,925.2

Table 9 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: % Volume 2020

Beer 81.6 18.4 100.0

Table 10 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: % Value 2020

Beer 69.7 30.3 100.0

Table 11 GBO Company Shares of Alcoholic Drinks: % Total Volume 2016-2020

Anheuser-Busch InBev NV 94.9 94.7 94.4 92.3 90.7

Santiago Queirolo SA 1.1 1.1 1.2 1.2 1.7

Table 12 Distribution of Alcoholic Drinks by Format: % Off-trade Value 2015-2020

Store-Based Retailing 100.0 100.0 100.0 100.0 100.0 98.5