This record came as the Philippines experienced its hottest year in 2024, with Filipinos seeking relief through their trusted sari-sari stores.
In the key findings released by tech startup Packworks through its mobile sari-sari store app and business intelligence tool, Sari IQ, revealed consumption trends that highlight the crucial role neighborhood stores play in meeting immediate needs during extreme weather.
Packworks’ Sari IQ is an advanced data analytics tool that processes data from sari-sari stores nationwide to help address the growing needs of store owners and its suppliers to serve its communities with greater efficiency.
According to its 2024 data, well-known energy drink brand Sting recorded a whopping 83% sales increase, with a Php 34 million gross merchandise value (GMV), up 89% from Php 18 million the year prior.
The company analyzed over 1 million sales transactions per month from its network of over 300,000 sari-sari stores nationwide.
The sari-sari store staple saw notable sales margins, with Region IV-A (CALABARZON) leading at Php 7 million in GMV, followed by Region II (Cagayan Valley) at Php 6.6 million and Region III (Central Luzon) at Php 6.1 million.
Meanwhile, Mindanao posted the largest sales increases, with the BARMM (Bangsamoro Autonomous Region in Muslim Mindanao) seeing an uptick of 1,810%, and together with Region XIII (CARAGA) and Region X (Northern Mindanao), it saw over Php 650,000 in combined GMV.
According to Packworks, the sales spikes in Mindanao coincided with the all-time temperature records posted in Butuan City and Malaybalay City, Bukidnon during that period.
Energy drinks were not the only products that saw a boost in sales, as powdered iced tea brand Nestea saw a significant 76% spike, recording Php 30 million worth of GMV compared to Php 17 million in 2023.
The three regions with the highest sales in terms of GMV are Region IV-A (CALABARZON) with Php 5.5 million; Region VII (Central Visayas), Php 3.1 million; and Region I (Ilocos Region), Php 3 million.
In terms of the highest sales increase, Region V (Bicol) logged the highest at 254%, followed by BARMM (+160%), and Region VI (Western Visayas) (+138%).
A noteworthy piece of information, when Sting and Nestea saw their sales peak in March 2024, it coincided with the declaration of the start of the dry season in the country by the Philippine Atmospheric, Geophysical, and Astronomical Services Administration (PAGASA).
After which, the state weather bureau reported that 2024 was the hottest year on record in the country since monitoring began in 1951.
With prolonged periods of warm weather and all-time temperature spikes recorded last year, consumer behavior nationwide suggest that customers found ways to cope with the record-breaking heat by going to their neighborhood stores.
“Our data underscores the critical role sari-sari stores play in providing immediate relief and meeting the ongoing demand for essential refreshment, especially during the hotter months,” said Packworks Chief Data Officer Andoy Montiel
He continued, “As forecasts predict continued warm periods this year, it solidifies the sari-sari stores’ role as a crucial touchpoint for consumers nationwide, especially for regions that are sweltering through warmer conditions.”
For Packworks CEO Bing Tan, however, “the sales trends we recorded not only quantify the remarkable growth but also pinpoint regional nuances in both sales volume and growth.“
“These consumption patterns offer valuable insights for businesses looking to serve this vital market effectively,” the added.
Packworks was established in 2018 by its founders Bing Tan, Ibba Bernardo, and Hubert Yap, with the mission to help Filipino sari-sari stores connect with the multinational companies operating in the country.
Out of its over 300,000-strong network of sari-sari stores nationwide now, Packworks boasts that 75% are owned by female entrepreneurs.
The Filipino neighborhood store, which serves as the backbone of Filipino communities, is also being retooled through the addition of digital innovation, with accessible and scalable digital tool that helps store owners streamline business operations, access financial services, and build a more sustainable business through technology.