The dilutables category is known to perform well when the economy is strained due to its affordability and the value it offers. However, for the past two years this has not been the case. The substantial increase in the average industry selling price across the different subcategories is believed to be associated with the reduced demand for dilutables.
The dilutable dairy juice blends subcategory continued to hold the largest share of packaged and reconstituted volume for dilutables. This subcategory is cheaper on a rand per litre basis and has a high reconstitution factor compared to the other subcategories. In an economy where consumers are looking for ways to stretch their budgets on products that offer value for money, this becomes an attractive option for them.
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July 23, 2019