Peru Food and Drink Report 2013

While we anticipate headline growth in Peru to slow in the coming years, as China's hard landing feeds through into a more moderate expansion of the mining sector, we continue to expect the country's economy to remain one of the most dynamic in Latin America. Underpinned by this economic development, we also expect a number of interesting investment opportunities at the sector level, including food and drink. In fact, investments into Peru from Chilean retailers Falabella and Cencosud are positive signs, although we warn that a lack of infrastructure will continue to weigh on the sector's growth.

Headline Industry Data (local currency)

?? 2013 per capita food consumption = +9.76%; forecast compound annual growth rate (CAGR) to 2017 = +8.88

%?? 2013 alcoholic drink sales = +6.69%; forecast CAGR to 2017 = +6.53

%?? 2013 soft drink sales = +7.61%; forecast CAGR to 2017 = +7.34

%?? 2013 mass grocery retail sales = +11.17%; forecast CAGR to 2017 = +10.23

%Key Industry Trends & Developments

Peruvian Olive Oil Association Asks for Protection Against Imports: In November 2012, according to statements made to Olive Oil Times by the Peruvian Pro Olivo Association, local producers of olive oil have been impacted by the subsidized Spanish olive oil inflows in Peru. As a result, Pro Olivo has applied to 'Peru's National Institution for Competition Defense and Intellectual Property Protection (Indecopi) for an extension of countervailing duties on Spanish olive oil imports', according to the source.

Key Risks to Outlook

Elevated Security Risks: While Peru's economy offers a wealth of opportunities at the sector level, the operating environment is not without risks. In our view, political risk is likely to remain high over the coming years on the back of continued social unrest and a tenuous security situation. Given that we believe income inequality is a root cause of many of these issues, we expect they will take years to resolve. In addition, the domestic security situation has come back into focus in recent months following an increase in activity by left-wing insurgent group Sendero Luminoso, with resolution unlikely to be reached easily.

Table of contents

Chapter - BMI Industry View

Chapter - SWOT Analysis

Peru Food Industry SWOT

Peru Drink Industry SWOT

Peru Mass Grocery Retail Industry SWOT

Chapter - Business Environment

BMI's Core Global Industry Views

Table: Core Views

Latin America Risk/Reward Ratings

Table: Latin America Q113 Food & Drink Risk/Reward Sub-Factor Ratings (scores out of 10)

Table: Latin America Q113 Food & Drink Risk/Reward Ratings

Peru Food and Drink Risk/Reward Rating

Macroeconomic Outlook

Table: Economic Activity

Chapter - Industry Forecast Scenario

Consumer Outlook

Food

Food Consumption

Table: Food Consumption Indicators – Historical Data & Forecasts

Confectionery

Table: Confectionery Value/Volume Sales – Historical Data & Forecasts

Table: Confectionery Production & Trade – Historical Data & Forecasts

Meat And Fish

Table: Meat Production, Consumption & Trade – Historical Data & Forecasts

Table: Fish Production, Consumption & Trade – Historical Data & Forecasts

Pasta

Table: Pasta Production, Consumption & Trade – Historical Data & Forecasts

Oils And Fats

Table: Oils & Fats Production, Consumption & Trade – Historical Data & Forecasts

Dairy

Table: Dairy Production, Consumption & Trade – Historical Data & Forecasts

Drink

Hot Drinks

Table: Hot Drinks Value Sales – Historical Data & Forecasts

Table: Tea Production, Consumption & Trade – Historical Data & Forecasts

Soft Drinks

Table: Soft Drink Value Sales – Historical Data & Forecasts

Table: Soft Drinks Production, Consumption & Trade – Historical Data & Forecasts

Alcoholic Drinks

Table: Alcoholic Drinks Value Sales – Historical Data & Forecasts

Table: Alcoholic Drinks Production, Consumption & Trade – Historical Data & Forecasts

Trade

Table: Food & Drink Trade Balance – Historical Data & Forecasts

Mass Grocery Retail

Table: Mass Grocery Retail Sales By Format – Historical Data & Forecasts

Table: Sales Breakdown by Retail Format Type

Chapter - Food

Key Industry Trends And Developments

Multinationals Invest In Peru

Market Overview

Organic Farming

Chapter - Drink

Key Industry Trends And Developments

Aje Group Issues Bond, Exploring IPO

Focus on Premium-Segment Beers

Coffee Exports Keep Rising

Market Overview

Hot Drinks

Soft Drinks

Alcoholic Drinks

Chapter - Mass Grocery Retail

Key Industry Trends And Developments

Censosud Turns A Corner In Peru

Chilean Retailers Investing In Peru

Walmart Looks To Expand Peruvian Base

Market Overview

Table: Structure Of Peru's Mass Grocery Retail Market By Number Of Outlets, 2004-2012

Table : Structure of Peru's Mass Grocery Retail Market – Sales Value by Format (US$bn)

Table: Average Annual Sales Value by Format – 2012

Chapter - Competitive Landscape

Key Players

Table: Key Players In Peru's Food & Drink Sector

Table: Key Players In Peru's Mass Grocery Retail Sector

Chapter - Company Monitor

Food

Grupo Gloria

Good Foods

Drink

Union de Cervecerias Peruanas Backus y Johnston (Backus)

Corporacion Jose R. Lindley (J.R. Lindley)

Aje Group

Mass Grocery Retail

Wong (Cencosud)

Saga Falabella

Chapter - Risk/Reward Ratings Methodology

Table: Rewards

Table: Risks

Weighting

Table: Weighting

Chapter - BMI Food & Drink Industry Glossary

Food & Drink

Mass Grocery Retail

Chapter - BMI Food & Drink Forecasting And Sources

How We Generate Our Industry Forecasts

Sources

Related research categories

By sector: General drinks

By market: Peru (in South America)