Bahrain Food and Drink Report Q1 2013

BMI View: We continue to hold a relatively bullish outlook on household consumption in Bahrain. Although timely data out of the country is relatively sparse, previously announced hikes to public sector salaries are most likely beginning to feed through to the wider economy. Local reports have indicated that growth in car sales was well into double-digits through the first five months of 2012. With banking sector credit growth hitting three-year highs in H112, we expect private consumption to remain well supported in the near term.

Headline Industry Data (local currency) ?? 2012 food consumption growth = +8.1%; compound annual growth rate (CAGR) to 2016 = +7.7% ?? 2012 soft drink value sales growth = +6.9%; CAGR to 2016 = +6.7% ?? 2012 mass grocery retail sales = +10.1%; CAGR to 2016 = +9.4% Key Company Trends

Nestlé Makes Major Investment: In June 2012, global food and drink giant Nestlé announced plans to construct a new US$136.1mn production facility in Dubai. Nestlé has signed a partnership agreement with Dubai World Central for a 175,000 sq m plot that will be used to manufacture nutrition, culinary and coffee products. By boosting its regional manufacturing presence, Nestlé will be able to tailor an even greater proportion of its products to suit tastes and preferences across the Middle East and North Africa region. This will also allow for greater local sourcing, fresher product, and being the second production facility in Dubai, it will create opportunities for synergies.

Investments in Luxury Water: In July 2012, Qatar-based Tamani Foodstuffs announced that it has entered into an agreement with Canadian luxury drink producer Gize to expand Gize’s presence in the Middle East region. Tamami Foodstuffs will be the new sales and distribution partner for the nonalcoholic drinks company that specialises in high-end mineral water. Tamani will represent Gize in Bahrain, Saudi Arabia, the UAE, Kuwait, Qatar, Oman and Yemen. A Gize representative has said that this partnership with Tamani will benefit Gize greatly as it will allow it to benefit from Tamani’s network and logistics in order to be present in luxury hotels and gourmet venues, and make the drink a recognised part of menus in luxury venues across the region.

Bahrain Food & Drink Report Q1 2013 © Business Monitor International Ltd Page 6 Key Risks To Outlook

Inflation Remains A Dark Cloud: An ongoing concern is inflation; higher inflation will dilute the impact that higher government spending will have on real growth. Our optimistic stance on the region's macroeconomic prospects over the next few years is based, to a large extent, on the positive outlook for domestic consumption, which in turn depends on fiscal expenditure. Higher prices would weigh on consumer spending power and will likely mean that the Gulf Cooperation Council will be unable to sustain the robust growth rates seen in recent years.

Table of contents

BMI Industry View
SWOT Analysis
Bahrain Food Industry SWOT 
Bahrain Drinks Industry SWOT
Bahrain Mass Grocery Retail SWOT Business Environment
BMI’s Core Global Industry Views
Table: Core Views Middle East Food & Drink Risk/Reward Ratings
Table: Middle East And North Africa Q113 Risk/Reward Ratings
Table: Middle East & North Africa Q113 Food & Drink Risk/Reward Sub-Factor Ratings (scores out of 10)
Bahrain’s Food & Drink Risk/Reward Ratings
Macroeconomic Outlook
Table: GDP By Expenditure Industry Forecast Scenario
Food Food Consumption
Table: Food Consumption Indicators, 2010-2017 Drink
Soft Drinks Table: Soft Drink Sales, 2010-2017
Mass Grocery Retail
Table: Mass Grocery Retail Sales By Format, 2010-2017 Trade
Table: Trade Indicators, 2010-2017 Food Key Industry Trends And Developments
Savola And Almarai Look Well Placed For Growth Increasing Interest In Processed and Snack Foods
Interest From Non-Regional Multinational Corporations Market Overview
Agriculture Key Food Processors
Halal Food Drink
Key Industry Trends And Developments
Pelit Su Acquisition Complements Agthia's Product And Geographic Expansion
Alcohol Piggybacking Off Aviation Boom
Tang Proving Very Popular
Market Overview
Soft Drinks Alcoholic Drinks Hot Drinks Bahrain Food & Drink Report Q1 2013
Mass Grocery Retail . Key Industry Trends And Developments
Catching The Eye Of Foreign Investors
Duty-Free Booming Across Gulf Market Overview
Competitive Landscape
Table: Key Players In Bahrain's Food & Drink Sector
Table: Key Players In Bahrain's Mass Grocery Retail Sector
Company Profiles
Food Bahrain Flour Mills Company General Trading And Food Processing Company (TRAFCO)
Kraft Foods MEA
Delmon Poultry Company
Nestlé Middle East Drink
Awal Dairy Company
Mass Grocery Retail 60 EMKE Group
Fu-Com International/Géant
Carrefour MAF
Demographic Outlook
Table: Bahrain's Population By Age Group, 1990-2020 ('000)
Table: Bahrain's Population By Age Group, 1990-2020 (% of total)
Table: Bahrain's Key Population Ratios, 1990-2020
Table: Bahrain's Rural And Urban Population, 1990-2020
Risk/Reward Ratings Methodology 
Table: Rewards
Table: Risks
Weighting
Table: Weighting
BMI Food & Drink Industry Glossary
Food & Drink Mass Grocery Retail
BMI Food & Drink Forecasting & Sourcing How We Generate Our Industry Forecasts . Sourcing

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Related research categories

By sector: General drinks

By market: Bahrain (in Asia)