Slovakia Food and Drink Report Q1 2013
Report description
While the short- to medium-term outlook for Slovakia remains poor due to elevated unemployment and unfavourable wider economic trends, our longer-term view is positive. Indeed, as household income in Slovakia steadily increases, we expect to see a concomitant rise in domestic consumption, which should support the country's food and drink market development. We expect Slovakia to gradually move away from an export-led model of growth to one driven primarily by private consumption. Indeed, as Bratislava increasingly integrates with the eurozone, we believe there will be a considerable uptick in credit expansion, providing a significant boon to consumer spending.
Headline Industry Data (local currency)
?? 2013 per capita food consumption +3.36%; forecast compound annual growth rate (CAGR) to 2017 +3.93
%?? 2013 alcoholic drinks sales +3.14%; forecast CAGR to 2017 +3.91
%?? 2013 soft drinks sales +2.27%; forecast CAGR to 2017 +3.49
%?? 2013 mass grocery retail +4.60%; forecast CAGR to 2017 +5.41
%Key Company Trends
Retail Sales Decline in the First Nine Months of 2012: The Slovak Statistical Office figures show that the country's retail sales decreased 1.7% year-on-year (y-o-y) to EUR1.52bn (US$1.94bn) in September 2012, having already fallen 0.9% y-o-y in constant prices in August. The country's retail sales dropped 0.3% y-o-y to EUR13.12bn (US$16.72bn) in 9M12. Discretionary spending remains subdued in light of high unemployment and difficult credit conditions.
Tesco Extends Online Grocery Shopping to Slovakia: In October 2012, the leading retail operator in Slovakia, UK-owned Tesco, launched an online grocery shopping site. The site will allow customers in the capital and select towns to place orders online and have the groceries delivered to their door. Tesco already operates online shopping schemes in the Czech Republic, Poland, the UK, Ireland and South Korea.
Risks To Outlook
Revised Labour Code Posing Downside Risks to the Economy: The adoption of several revisions to Slovakia's labour market code, designed to improve workers' rights, poses both near- and long-term risks to the economy. From a short-term perspective, increasing labour market rigidity at time of slowing economic growth and rising payroll levies could prompt companies to begin laying off employees early to avoid additional costs. From a long-term viewpoint, the reforms could reduce Slovakia's competitiveness by driving foreign investors to seek new bases for manufacturing operations.
Table of contents
Chapter - BMI Industry View
Chapter - SWOT Analysis
Slovakia Food Industry SWOT
Slovakia Drink Industry SWOT
Slovakia Mass Grocery Retail Industry SWOT
Chapter - 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)
Slovakia's Food & Drink Business Environment Ratings
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
Canned Food
Table: Canned Food Value/Volume Sales – Historical Data & Forecasts
Meat
Table: Meat Volume Sales, Production & Trade – Historical Data & Forecasts
Pasta
Table: Pasta Volume Sales, Production & Trade – Historical Data & Forecasts
Other Processed Foods
Table: Jams & Jellies Volume Sales, Production & Trade – Historical Data & Forecasts
Table: Baked Products Volume Sales, Production & Trade – Historical Data & Forecasts
Dairy
Table: Dairy Volume Sales, Production & Trade – Historical Data & Forecasts
Drink
Alcoholic Drinks
Table: Alcoholic Drinks Value/Volume Sales – Historical Data & Forecasts
Soft Drinks
Table: Soft Drinks Value/Volume Sales – Historical Data & Forecasts
Hot Drinks
Table: Hot Drinks Value/Volume Sales – Historical Data & Forecasts
Trade
Table: Trade Indicators – Historical Data & Forecasts
Mass Grocery Retail
Table: Mass Grocery Retail Sales By Format – Historical Data & Forecasts
Table: Grocery Retail Sales By Format – Historical Data and Forecasts
Chapter - Food
Key Industry Trends And Developments
Agrofert's Bid For United Bakeries Fails Over Competition Office's Delay
Price And Quality Of Foodstuffs More Important Than Brands
Slovakian Farmers Receive Financial Aid
Expansion of Fast-Food Chains Continues
Consolidation In The Food Production Industry
Companies Looking To Lower Production Costs
Companies Targeting Niche Segments
Market Overview
Food Consumption
Food Production
Main Players
Confectionery
Canned Food
Trade
Agriculture
Chapter - Drink
Key Industry Trends And Developments
Wine Industry Targets Expansion
Consolidation In Bottled Water Industry
Foreign Players Remain Interested In Slovakia's Soft Drinks Market
Market Overview
Beer
Hot Drinks
Chapter - Mass Grocery Retail
Key Industry Trends And Developments
Tesco Extends Online Grocery Shopping To Slovakia
Retail Sales Decline In The First Nine Months Of 2012
Legislation Reversal To Potentially Attract More Foreign Players
Expansion Of Convenience-Type Stores As Diversification Strategy
Slovakian Retailers Looking To Expand In The Czech Republic
Market Overview
Table: Private Label Purchases In Slovakia, By Retail Outlet
Leading Retailers
Table: Structure of Slovakia's Mass Grocery Retail Market by Number of Outlets – estimates
Table: Structure Of Slovakia's Mass Grocery Retail Market – Sales Value By Format
Table: Average Value Per Outlet, 2012
Chapter - Competitive Landscape
Table: Key Players In Slovakia's Food Sector
Table: Key Players In Slovakia's Drink Sector
Table: Key Players In Slovakia's Mass Grocery Retail Sector*
Chapter - Company Monitor
Food
Drink
Mass Grocery Retail
Table: Slovakia's Population By Age Group, 1990-2020 ('000)
Table: Slovakia's Population By Age Group, 1990-2020 (% of total)
Table: Slovakia's Key Population Ratios, 1990-2020
Table: Slovakia's Rural And Urban Population, 1990-2020
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 & Sourcing
How We Generate Our Industry Forecasts
Sourcing
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Current time at just-drinks headquarters: 2:57pm (Monday, 20 May 2013)
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