Israel Food and Drink Report Q1 2012
Report description
Household expenditure has grown over recent years, stimulated by the strong domestic food production industry and high per capita incomes, as well as by the expansion of modern retailing. However, as 2011 has proved more challenging on the economic front, high food prices came under scrutiny, having resulted in public protests. In consequence, major food producers and retailers were forced to reduce prices on selected products, although critics point out that the reductions are insufficient and actually mask the real increase in food prices since the start of the year. Nevertheless, the price reductions are expected to have an effect on both final consumer and supplier prices, making for a more difficult operating environment.
Headline Industry Data (local currency) ?? 2011 per capita food consumption sales = +3.35%; forecast compound annual rate growth to 2016 = +3.92% ?? 2011 alcoholic drink sales = +0.88%; forecast compound annual rate growth to 2016 = +1.05% ?? 2011 soft drink sales = +4.12%; forecast compound annual rate growth to 2016 = +7.19% ?? 2011 mass grocery retail sales = -1.72%; forecast compound annual rate growth to 2016 = +4.06%
Key Company Trends High Food Prices Targeted: Food prices have become a contentious issue, leading to protests and consumer boycotts of some products. In fact, in October 2011, three Israeli companies - Strauss Group, Osem and Unilever Israel - were given a time frame of three weeks to cut their prices by boycott leaders.
However, Unilever Israel also stood accused of announcing ostensible price cuts on its food ranges that are a tiny proportion of actual prices increases during 2011. Additionally, Tel-Aviv-based thinktank Business Data Israel has published a report claiming that Israelis could pay US$1.43bn less annually for food if government, importer, producer and retail profits conformed to the European averages.
Broadening Portfolio: Given that the domestic food manufacturing and most other industry sectors are highly consolidated, key players are looking to broaden their portfolio of offerings. For example, Israeli pharmaceutical firm Teva Pharmaceutical Industries Ltd has recently entered the infant formula market, in partnership with French food processor Groupe Danone SA. The infant formula sector will become part of Teva's pharmaceutical operations and its market value is estimated at US$145mn. The firm aims to win a 15% market share within four years.
Key Risks to Outlook Economic Risks - Downside risks to our forecasts are posted by further weaknesses in the economies of the US and eurozone, which could depress external demand and thus constrain economic growth through a fall in exports. Security Risks - The October 2011 agreement between Israel and Hamas to swap prisoners is expected to do little to promote the peace process between Israelis and Palestinians. Therefore, from Israel's perspective, we foresee an uptick in security risks, continuing stability within the coalition government, and the need to reassess its military strategies. This situation will continue to deter foreign investment, while also undermining business confidence in Israel and also trade links with other countries, especially given the elevated regional risks.
Table of contents
Chapter 1 - Executive Summary
Chapter 2 - SWOT Analysis
Israel Food Industry SWOT
Israel Drink Industry SWOT
Israel 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
Middle East Food & Drink Business Environment Ratings
Table: Saudi Arabia Food & Drink Risk/Reward Ratings – Q
Table: Middle East & North Africa Food & Drink Risk/Reward Ratings – Q
Israel's Food & Drink Business Environment Rating
Macroeconomic Outlook
Table: Israel Economic Activity
Consumer Outlook
Chapter 4 - Food
Industry Forecast Scenario
Food Consumption
Table: Food Consumption Indicators Historical Data & Forecasts
Canned Food
Table: Canned Food Historical Data & Forecasts
Confectionery
Table: Confectionery Historical Data & Forecasts
Trade
Table: Sectoral trade indicators Historical Data & Forecasts
Chapter 5 - Drink
Industry Forecast Scenario
Alcoholic Drinks
Table: Alcoholic Drinks Historical Data & Forecasts
Soft Drinks
Table: Soft Drinks Historical Data & Forecasts
Hot Drinks
Table: Hot Drinks Historical Data & Forecasts
Chapter 6 - Mass Grocery Retail
Industry Forecast Scenario
Table: Mass Grocery Retail Sales Historical Data & Forecasts
Table: Israel Grocery Retail Sales Breakdown (%)
Chapter 7 - Food
Key Industry Trends and Developments
Market Overview
Food Consumption
Food Production
Halal
Table: Muslim Populations In Select Countries
Agriculture
Table: Oils And Fats
Dairy
Table: Butter
Drink
Key Industry Trends and Developments
Market Overview
Soft Drinks
Alcoholic Drinks
Hot Drinks
Chapter 8 - Mass Grocery Retail
Key Industry Trends and Developments
Market Overview
Table: Structure of Israel's Mass Grocery Retail Sector by Estimated Number of Outlets
Table: Structure of Israel's Mass Grocery Retail Sector Sales Value by Format (US$bn)
Table: Estimated Value of Sales per Outlet ()
Chapter 9 - Competitive Landscape
Key Players
Food & Drink
Table: Key Players in Israel's Food & Drink Sector
Mass Grocery Retail
Table: Key Players in Israel's Mass Grocery Retail Industry
Company Analysis
Food and Drink
G WilliFood International
Osem
Frutarom
Tnuva
Mass Grocery Retail
Shufersal (SuperSol)
Blue Square
Chapter 10 - Appendix:
Country Snapshot: Israel Demographic Data
Section : Population
Table: Demographic Indicators
Table: Rural/Urban Breakdown
Section : Education And Healthcare
Table: Education
Table: Vital Statistics
Section : Labour Market And Spending Power
Table: Employment Indicators
Chapter 11 - BMI Methodology
Food & Drink Business Environment Ratings
Ratings Methodology
Ratings Overview
Ratings System
Indicators
Limits Of Potential Returns
Risks To Realisation Of Potential Returns
Weighting
BMI Food & Drink Industry Glossary
Food & Drink
Mass Grocery Retail
BMI Food & Drink Forecasting & Sourcing
How We Generate Our Industry Forecasts
Sourcing
The just-drinks office is currently: Closed
Office opening hours
Mon-Thursdays 9:00am-5:30pm
Fridays 9:00am-4:30pm
The office is closed during weekends.
Current time at just-drinks headquarters: 3:07am (Wednesday, 19 June 2013)
Need help? Contact the research team
