just the facts - ice cream in the Philippines

As Nestle announces more investment in its ice cream business in the Philippines, just-food and Euromonitor outlines the top ten facts on the country's ice cream sector.

1. Ice cream sales in the Philippines were expected to grow by 2.8% in 2009 to PHP8.75bn (US$195.4m). Volumes were forecast to inch up 0.7% to 64m litres.

2. The market is dominated by two large players, with Nestle accounting for 42.5% of sales in 2008 and Unilever arm Selecta Wall's having a share of 40%.

3. The Nestle brand is the largest ice cream brand in the Philippines, accounting for 37.2% of 2008 sales. The Selecta brand enjoyed 36.2% of sales in 2008.

4. According to Euromonitor, the medium term remains "unexciting" for ice cream in the Philippines; the volume CAGR is projected at just 1% between 2009 and 2014.

5. The "minimal growth" will mainly come from the expansion of smaller lower-priced brands like Creamline Dairy Corp. and others in impulse ice cream. On the other hand, major manufacturers such as Nestlé and Selecta Wall's will see more growth in bulk ice cream.

6. Bulk ice cream will remain the "brightest spot" in ice cream with a volume CAGR of 1.3% over the forecast period. This growth in volume will contribute to the continuous contraction of other take-home ice cream, namely ice cream desserts.

7. Consumption of ice cream in the Philippines was concentrated within the Greater Manila area between 2004 and 2008, with 60% of total volume purchased there. Euromonitor believes there is an "opportunity" for manufacturers to penetrate key cities where the level of consumer income is on a par with Metro Manila.

8. Products geared towards lower- and middle-income consumers have enjoyed recent success. Nestlé embarked on the introduction of Nestlé Sorbetes which banks on the penchant of Filipinos for unbranded home made sorbetes. This brand competes through its lower-pricing strategy of Ps100 per 1.6 litres. Meanwhile, responding to warm acceptance from buyers, Selecta Wall' maintained the price of its Selecta 3-in-1 at PHP95 but increased volume by 33%.

9. The proliferation of smaller companies offering lower-priced branded products in the market has been snatching sales from major brands especially in impulse ice cream.