Italy Food and Drink Report Q1 2012
Report description
The rate of growth remains anaemic in Italy. The onset of fiscal austerity amid a deterioration in eurozone economic activity will see the Italian economy contract by 1.4% in 2012, down from 0.8% growth expected for 2011. Through to 2016, growth in food and drink spending is expected to stagnate in real terms. Static domestic demand remains a concern for all of Italy’s food and drink producers and particularly impacts those that do not have much exposure to markets outside of the country.
Headline Industry Data (local currency) ?? 2011 per capita food consumption = +1.7%; forecast to 2016 = +9.1% ?? 2011 alcoholic drink sales = +2.6%; forecast to 2016 = +12.3% ?? 2011 soft drink sales = +1.3% ; forecast to 2016 = +7.1% ?? 2011 mass grocery retail sales = +4.1%; forecast to 2016 = +19.4%
Key Industry Trends And Developments De Cecco Looks to Russia for Growth: Italian pasta group De Cecco announced in October 2011 the acquisition of Russian pasta producer PMK in a deal worth EUR40mn. De Cecco’s acquisition can be seen as part of a wider trend of food companies in Western Europe looking to take advantage of stronger growth in emerging markets. Italian companies have generally been slow off the mark in this regard, perhaps partly because of the premium positioning of many Italian food and drink products. However, De Cecco’s move suggests that the difficult domestic conditions may have spurred increased desire for expansion into emerging markets.
Stevia’s EU Approval Will Spur Product Development: The European Commission has formally approved the use of sweeteners derived from the Stevia plant. The move came into force at the beginning of December 2011 and could pave the way for a host of new product launches containing the ingredient. The bigger opportunity lies within soft drinks and confectionery, where there is a strong possibility that stevia-based products can capture a significant chunk of these sizeable markets. Following this announcement, sweetener producer Merisant announced plans to target the UK and Italy by launching stevia-based tabletop sweeteners Pure Via and Canderel Green.
Key Risks To Outlook Stalling Economy: A stalling economy could see the Italian government fail to reach its goal of a balanced budget by 2013. Moreover, given that Italy has the third-largest sovereign debt load in the world, an increase in servicing costs would further accentuate the debt burden. Eurozone Weakness: Demand across the eurozone remains subdued, and with fiscal consolidation programmes being proposed across the bloc, export orders could slump significantly over the medium term. Concerns about the very existence of the euro in 2012 are expected to hold back investments, further weighing on the Italian economy.
Table of contents
Chapter 1 - BMI Industry View
Chapter 2 - SWOT Analysis
Italy Food Industry SWOT
Italy Drink Industry SWOT
Italy Mass Grocery Retail Industry SWOT
Chapter 3 - Business Environment
BMI’s Core Global Industry Views
Table: Agricultural Commodity Prices
Table: Core Views Q
Western Europe Risk/Reward Ratings
Table: United Kingdom Food & Drink Risk/Reward Ratings – Q
Table: Western Europe Food & Drink Risk/Reward Ratings – Q
Italy’s Food & Drink Risk/Reward Ratings
Macroeconomic Outlook
Table: GDP By Expenditure
Chapter 4 - Industry Forecast Scenario
Consumer Outlook
Food
Food Consumption
Table: Food Consumption Indicators – Historical Data & Forecasts
Canned Food
Table: Canned Food Value/Volume Sales – Historical Data & Forecasts
Confectionery
Table: Confectionery Value/Volume Sales – Historical Data & Forecasts
Frozen Fuit & Vegetables
Table: Frozen Fruit & Vegetables
Baked Products
Table: Baked Products
Pasta
Table: Pasta
Meat Fish And Dairy
Table: Meat
Table: Fish
Table: Oils And Fats
Drink
Soft Drinks
Table: Soft Drinks Value/Volume Sales – Historical Data & Forecasts
Alcoholic Drinks
Table: Alcoholic Drinks Value/Volume Sales – Historical Data & Forecasts
Mass Grocery Retail
Table: Mass Grocery Retail Sales By Format
Table: Retail Sales Breakdown By Format Type
Trade
Table: Trade Indicators – Historical Data & Forecasts
Chapter 5 - Food
Key Industry Trends And Developments
De Cecco Looks to Russia for Growth
Stevia’s EU Approval Will Spur Product Development
Lactalis Succeeds in Takeover Bid For Parmalat
Granorolo Strengthens Position in Dairy Sector
Consolidation in the Italian Deli Sector
Barilla Offloads German Bakery Chain To Focus On FasterGrowing Units
Unilever Sells Italian Frozen Food Division
Market Overview
Food Processing
Consumption
Prepared Food
Confectionery
Chapter 6 - Drink
Key Industry Trends And Developments
Bottled Water Producer Sorgenti Emiliane Modena Cancels IPO
Soft Drinks Sector Shows LongTerm Potential
Italian Wines Look To Export Markets
Refresco Invests In Private Label Soft Drinks
Lavazza Focusing On Capsules And Emerging Markets
Campari Expands Emerging Market Footprint
Market Overview
Hot Drinks
Soft Drinks
Table: Soft Drinks Sales Breakdown By Value (%)
Alcoholic Drinks
Table: Alcoholic Drinks Sales Breakdown In Italy By Value (%)
Chapter 7 - Mass Grocery Retail
Key Industry Trends And Developments
Difficulties in Italian Retailing Highlighted
Esselunga Results Highlight Price Sensitivity Of Italian Retail
La Rinascente Acquired By CRC Of Thailand
Private Labels Gaining Market Share
Retail Sector Difficult To Navigate
Market Overview
Table: Structure Of Mass Grocery Retail Market By Estimated Number of Outlets
Table: Annual Average Sales Per Outlet By Format (US$mn)
Chapter 8 - Competitive Landscape
Table: Key Players in Italy’s Food Sector
Table: Key Players In Italy’s Drink Sector
Table: Key Players in Italy’s Mass Grocery Retail Sector
Chapter 9 - Company Monitor
Food
Gruppo Galbani (Lactalis)
Perfetti Van Melle
Gruppo Barilla
Carapelli Firenze SE
Drink
Gruppo Campari
Birra Peroni (SABMiller)
Mass Grocery Retail
Conad
Chapter 10 - BMI Methodology
Food & Drink Business Environment Ratings
Ratings Methodology
Ratings System
Indicators
Table: Limits Of Potential Returns
Table: Risks To Realisation Of Potential Returns
Weighting
Table: Weighting
BMI Food & Drink Industry Glossary
Food & Drink
Mass Grocery Retail
BMI Food & Drink Forecasting And Sources
How We Generate Our Industry Forecasts
Sources
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