Czech Republic Food and Drink Report Q1 2013

The Czech consumer outlook continues to remain extremely challenging. We forecast the Czech economy will remain in recession this year to the tune of 0.7% before recovering to 0.8% real GDP growth in 2013. Additionally, the ongoing eurozone sovereign debt crisis will continue to depress domestic activity in the Czech Republic via weaker exports and investments. Meanwhile, the government's sustained fiscal austerity drive will result in lower household spending.

Headline Industry Data (local currency) ?? 2013 per capita food consumption = -0.39%; forecast to 2017 = +8.1% ?? 2013 beer volume sales = -0.02%; forecast to 2017 = +0.11% ?? 2013 confectionery volume sales = +2.61%; forecast to 2017 = +13.6% ?? 2013 mass grocery retail (MGR) sales = +2.64%; forecast to 2017 = +23.5%

Key Company Trends Temporary Ban Imposed on Hard Alcohol: In September 2012, the health ministry in the Czech Republic decided to temporarily ban the sale of liquors with more than 20% alcohol content. The temporary ban was imposed after deadly methanol poisonings, for which the government imposed a partial ban on the sales of hard liquor in kiosks, street stalls and markets. The Czech Union of Alcohol Producers and Importers estimates the ban may result in a loss of hundreds of millions of crowns. Following the hard alcohol ban, restaurants in the Czech Republic may lose about CZK200mn (US$10.5mn) a day, which in turn, is expected to boost sales of wine and beer in the country.

Hypermarkets Preferred Shopping Destination: Citing a study by GfK Incoma in August 2012, it has - been found that Czechs continue to prefer hypermarkets over other retail formats, with 45% respondents choosing hypermarkets over other shopping destination for purchasing grocery products. The second preferred format was discount stores (23%). About 18% of respondents indicated supermarkets as their grocery shopping destination for foodstuffs, while 13% voted for small self-service shops.

Key Risks To Outlook Debt Crisis: The eurozone sovereign debt crisis continues to post downside risks to the Czech government's fiscal position via reduced revenue flows. The impact of the slowdown in the common Czech Republic Food & Drink Report Q1 2013 © Business Monitor International Ltd Page 8 currency bloc on the Czech economy has been sizeable, and in the event of a deepening of the crisis we could expect to see revenues come in worse than we are currently factoring for.

Table of contents

BMI Industry View
SWOT Analysis
Czech Republic Food Industry SWOT
Czech Republic Drinks Industry SWOT
Czech Republic Mass Grocery Retail Industry SWOT Business Environment
BMI’s Core Global Industry Views
Table: Core Views CEE Food & Drink Risk/Reward Ratings
Table: Central & Eastern Europe Q113 Food & Drink Risk/Reward Ratings
Table: Central & Eastern Europe Q113 Food & Drink Risk/Reward Sub-Factor Ratings (scores out of 10)
Czech Republic’s Food & Drink Risk/Reward Rating Macroeconomic Outlook
Table: Economic Activity
Industry Forecast Scenario
Consumer Outlook
Food Food Consumption
Table: Food Consumption Indicators – Historical Data & Forecasts, 2009-2017 Meat .
Table: Meat Volume Sales, Production & Trade, 2009-2017
Confectionery
Table: Confectionery Value/Volume Sales – Historical Data & Forecasts, 2009-2017
Table: Jams & Jellies Volume Sales, Production & Trade, 2009-2017
Canned Food
Table: Canned Food Value/Volume Sales – Historical Data & Forecasts, 2009-2017
Dairy
Table: Dairy Volume Sales, Production & Trade, 2009-2017
Drink
Alcoholic Drinks
Table: Alcoholic Drinks Value/Volume Sales – Historical Data & Forecasts, 2009-2017
Soft Drinks
Table: Soft Drinks Value/Volume Sales – Historical Data & Forecasts, 2009-2017
Hot Drinks
Table: Hot Drinks Value Sales – Historical Data & Forecasts
Mass Grocery Retail
Table: Mass Grocery Retail Sales By Format – Historical Data & Forecasts, 2009-2017
Trade
Table: Trade Indicators – Historical Data & Forecasts, 2009-2017 Food Key Industry Trends And Developments
Some Companies Deleveraging
Consolidation Gaining Pace Firms Targeting Innovation
Czech Republic Food & Drink Report Q1 2013 
Market Overview
Food Production Leading Players
Food Consumption Confectionery
Canned Food
Agriculture Drink
Key Industry Trends And Developments
Temporary Ban Imposed On Hard Alcohol
Beer Production Growing As Shandy Increases In Popularity Beer Market Starts To Stabilise . Molson Coors Acquires StarBev AB InBev Acquires Budweiser Rights
Downturn Hits Beer Consumption in 2010/11 
Taxes Affecting Growth
Market Overview 
Alcoholic Drinks 
Beer 
Leading Players 
Non-Alcoholic Beer 
Wine 
Spirits
Soft Drinks 
Hot Drinks 
Mass Grocery Retail 
Key Industry Trends And Developments
Hypermarkets Preferred Shopping Destination In Czech Republic
Iceland Launches In Czech Republic
Tesco Rolls Out First Central European Online Shopping Service Suppliers Stop Deliveries
Discount Stores Outperforming 
New Players Emerging
Multinationals Continuing To Launch Stores And New Services Market Overview
Leading Retailers 
Table: Structure Of The MGR Market By Number Of Outlets, 2004-2011.
Table: Sales Breakdown By Retail Format Type, 2011 And 2021 (% of total) .
Table: Structure Of The MGR Market By Value, 2004-2011
Table: Value Sales Per Outlet, 2011e .
Competitive Landscape .
Table: Key Players In Czech Republic’s Food Sector .
Table: Key Players In Czech Republic’s Drink Sector
Table: Key Players In Czech Republic’s Mass Grocery Retail Sector .
Company Profiles
Food.
Nestlé Cesko .
Madeta .
Czech Republic Food & Drink Report Q1 2013
Hamé 
Drink
Plzensky Prazdroj
Budejovicky Budvar
Karlovarske Mineralni Vody (KMV) Kofola
Mass Grocery Retail 
Ahold Czech Republic
Tesco Stores CR
Lidl & Schwarz
Rewe Demographic Outlook 
Table: The Czech Republic's Population By Age Group, 1990-2020 ('000)
Table: The Czech Republic's Population By Age Group, 1990-2020 (% of total)
Table: The Czech Republic's Key Population Ratios, 1990-2020
Table: The Czech Republic'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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By market: Czech Republic (in Europe)