Caribbean Food and Drink Report Q1 2012

Within the Caribbean there are several markets, including the Dominican Republic and Trinidad and Tobago, which have bounced back much swiftly from the global economic downturn. In the Dominican Republic, the economy is being boosted by a number of major mining projects that are set to boost exports and should eventually have a significantly wider impact on affluence throughout the country. The strength of the consumer in the Dominican Republic, linked to increasing personal wealth across the country, is likely to attract considerable investment into retail-focused sectors, including food and drink and financial services. Another market with a favourable outlook in the region is Trinidad and Tobago, which has also managed to move beyond tourism thanks to its energy reserves. High international energy prices, as well as strong regional and US demand for the country’s main energy exports, liquefied natural gas and oil, are expected to keep a floor under growth and drive up local income and consumption.

Headline Industry Data 2011 food consumption per capita/forecast 2012 growth/forecast compound annual growth rate (CAGR) to 2016 (all in US dollar terms): ?? Bahamas: US$1,831/+2.3%/2.4% ?? Barbados: US$1,174/+2.8%/+3.0% ?? Dominican Republic: US$249/+14.9%/+8.2% ?? Jamaica: US$292/+3.7%/+6.3% ?? Puerto Rico: US$954/+3.0%/+5.6% ?? Trinidad and Tobago: US$1,111/4.3%/+5.0%

Key Company Trends US Red Stripe Stripped Out Of Jamaica: In October 2011, Diageo delivered a blow to the Jamaican drinks industry by announcing that Red Stripe beer destined for the US market will no longer be brewed in Jamaica but instead on the US mainland. While its Jamaican subsidiary Desnoes & Geddes (D&G) will continue to brew Red Stripe in Jamaica for Brazil, Canada and some parts of Europe, the sizeable scale of US exports will mean the move will have a significant impact on the local brewing sector. The chairman of D&G, Richard Byles, revealed the firm is planning to cut output at its Kingston brewery by up to 3.5mn cases and eliminate 70 jobs.

CL Financial's Angostura Loses CEO As Lascelles Is Subject To Takeover Bid: In September 2011, Trinidad & Tobago based drinks firm Angostura parted company with its CEO and Managing Director Wayne Yip Choy following a contract dispute. The dispute is reported to relate to an incentive compensation claim worth TTD20mn that was tied to Angostura's financial performance. Angostura is a subsidiary of the CL Financial Group, one of the largest conglomerates in the region but a major victim of the global credit crisis that had to be bailed out by the Trinidad & Tobago government, which has now assumed control of the business under a rescue plan. This setback comes despite Angostura's financial performance indicating that the unit has turned a corner, having moved back towards profitability in 2010 with sales also moving in the right direction.

Key Risks To Outlook Different Prospects for Individual Caribbean Markets: Given that the Caribbean is not a homogenous food and drinks markets, risks are on both upside and downside in relation to individual countries surveyed. For example, given that tourism continues to account for a significant proportion of economic activity in Jamaica, improved international perceptions of the island are likely to bode well for real GDP growth and thus also for consumer outlook. Furthermore, on the domestic front, this is likely to encourage greater investment into both hotel and transport infrastructure from the private sector. On the other hand, in Puerto Rico, one of the largest regional food and drinks markets, while huge structural reforms have dramatically improved the island’s fiscal outlook, growth is set to remain weak, especially as the authorities aim to rein in public sector spending.

Table of contents

Chapter 1 - BMI Industry View

Chapter 2 - SWOT Analysis

Caribbean Food Industry SWOT

Caribbean Drink Industry SWOT

Caribbean Mass Grocery Retail Industry SWOT

Chapter 3 - Business Environment

BMI’s Core Global Industry Views

Table: Food Prices And

Table: BMI’s Core Views For The Food & Drink Industry

Chapter 4 - Macroeconomic Forecasts

Barbados

Table: Barbados – Macroeconomic Data And Forecasts

Cuba

Table: Cuba Macroeconomic Data And Forecasts

Table: Dominican Republic – Macroeconomic Data And Forecasts

Puerto Rico

Table: Puerto Rico – Macroeconomic Data And Forecasts

Jamaica

Table: Jamaica – Macroeconomic Data And Forecasts

Trinidad And Tobago

Table: Trinidad & Tobago – Economic Activity

Chapter 5 - Industry Forecast Scenario

Regional Consumer Outlook

Food

Table: Food Consumption In Selected Caribbean Markets

Table: Barbados Margarine

Table: Trinidad And Tobago Margarine

Table: Dominican Republic Oils And Fats

Table: Trinidad And Tobago Oils And Fats

Table: Dominican Republic Dairy

Table: Jamaica Meat

Alcoholic Drinks

Table: Barbados Beer Market

Table: Dominican Republic Beer Market

Table: Jamaica Beer Market

Table: Trinidad And Tobago Beer Market

Table: Cuba Beer Market

Soft Drinks

Table: Barbados Carbonated Soft Drinks Market

Table: Dominican Republic Carbonated Soft Drinks Market

Table: Jamaica Carbonated Soft Drinks Market

Table: Cuba Carbonated Soft Drinks Market

Hot Drinks

Table: Cuba Coffee Market

Trade

Table: Food & Drink Trade Balance – Historical Data & Forecasts (US$mn)

Mass Grocery Retail

Table: Total Sales Via Grocery Retail Outlets In Selected Caribbean Markets*

Bahamas

Industry Forecast Scenario

Barbados

Industry Forecast Scenario

Dominican Republic

Industry Forecast Scenario

Jamaica

Industry Forecast Scenario

Puerto Rico

Industry Forecast Scenario

Trinidad And Tobago

Industry Forecast Scenario

Chapter 6 - Food

Regional Overview

Table: Caribbean Imports Of Agrifood Goods From The US (US$mn)

Key Industry Trends And Developments

Wisynco’s Push Into Ice Cream Will Benefit From Economic Growth And Rising Tourist Numbers

JEA Predicts Loss Of Market Share Under New US Food Law

Regional Players Expanding Supplies Of North American Markets

Foreign Investors Seeking Opportunities In The Sugar Industry

Ethanol Business Proves To Be Sluggish

Agricultural Diversification Under Way

Chapter 7 - Drink

Regional Overview

Key Industry Trends And Developments

US Red Stripe Stripped Out Of Jamaica

CL Financial's Angostura Loses CEO As Lascelles Is Subject To Takeover Bid

Club Caribe To Open Rum Distillery In Puerto Rico

Jamaican Coffee Reaches China

Innovation And Collaboration Increasing In The Soft Drink Industry

Rum Poised To Perform Strongly

Foreign Players Remain Interested In The Caribbean Alcoholic Drinks Market

Difficult Time For Beer

Trademark And Promotion Disputes Increased As Economic Downturn Intensified Competition

New Strategies For Growth Of Alcoholic Drinks Sales…

…But Those That Cannot Compete Leave

Chapter 8 - Mass Grocery Retail

Regional Overview

Chapter 9 - Competitive Landscape

Table: Key Players In The Caribbean Food Market

Table: Key Players In The Caribbean Drinks Market

Table: Key Players In The Caribbean MGR Market

Chapter 10 - Company Profiles

Food

Seprod (Jamaica)

Canco Ltd (Jamaica)

Jamaica Producers Group (Jamaica)

Jamaica Broilers Group (Jamaica)

Drink

Wisynco Group (Jamaica)

D&G/Red Stripe (Jamaica)

Salada Foods (Jamaica)

Cervecería Nacional Dominicana (Dominican Republic)

Angostura (Trinidad and Tobago)

Mass Grocery Retail

WalMart (Puerto Rico)

Supermercados Nacional (Dominican Republic)

Chapter 11 - BMI Food & Drink Methodology

BMI Food & Drink Industry Glossary

BMI Food & Drink Forecasting And Sourcing

Sourcing

Related research categories

By sector: General drinks

By market: Antigua and Barbuda (in North America), Bahamas (in North America), Barbados (in North America), Cuba (in North America), Dominica (in North America), Dominican Republic (in North America), Grenada (in North America), Haiti (in North America), Jamaica (in North America), St Kitts and Nevis (in North America), St Lucia (in North America), St Vincent and the Grenadines (in North America), Trinidad and Tobago (in North America)