Slovakia Food and Drink Report Q4 2012

While we expect Slovakia to post robust real GDP growth in 2012, we emphasise that economic activity is resting on shaky foundations. Household consumption continues to suffer, contracting by 0.1% year-onyear (y-o-y) in Q112. Unemployment remains high by historical standards, growing to 14.1% in Q112, with long-term unemployment becoming increasingly problematic. Of particular issue for the performance of the food and drink market is the high level of youth unemployment, which removes the large base of aspirational consumers who would be receptive to marketing and advertising and who have also the disposable incomes to spend on premium items.

Headline Industry Data (local currency) ?? 2012 per capita food consumption = +1.89%; forecast compound annual growth rate (CAGR) to 2016 = +3.47% ?? 2012 alcoholic drinks sales = +3.33%; forecast CAGR to 2016 = +3. 64% ?? 2012 soft drinks sales = +3.66%; forecast CAGR to 2016 = +3.25% ?? 2012 mass grocery retail = +4.17%; forecast CAGR to 2016 = +5.42%

Key Company Trends Price and Quality of Foodstuffs More Important than Brands: According to a survey carried out in May 2012 by the European Commission’s Eurobarometer, Slovakians primarily seek price and quality when purchasing foodstuffs. Branding was seen as less important, with around 66% of Slovakians indicating its impact on the purchases.

UK’s Iceland Foods to Enter Slovakia: CEE Retail reported that UK’s Iceland Foods is considering entry into the Slovakian market. Iceland, a frozen foods specialist, is expecting to open its first outlet in Slovakia in the course of late 2013 or early 2014, with a potential seen for as many as 100 stores across the country, starting with larger cities.

Government Mulling over Introduction of Excise Tax on Wine: The government has recently indicated that financial support for the country’s viticulture is presently not possible, despite acknowledging the need for such assistance. The authorities have also tabled the introduction of an excise tax on wines, which would be potentially returned to the growers through some form of state aid.

Risks To Outlook Inflation Risks Slight: In addition to relatively strong rates of economic growth and a high degrees of political stability, we expect Slovak inflation to remain subdued over the long term. Despite slight upside risks posed by the adopted monetary policy from the European Central Bank in the medium term, Slovakia Food & Drink Report Q4 2012 © Business Monitor International Ltd Page 8 particularly as Slovak real GDP is expected to outpace the eurozone average, we nevertheless expect upside inflationary pressure to remain somewhat subdued through the end of our forecast period.

Table of contents

BMI Industry View
SWOT Analysis
Slovakia Food Industry SWOT
Slovakia Drink Industry SWOT
Slovakia Mass Grocery Retail Industry SWOT
Business Environment
BMI’s Core Global Industry Views
Table: Core Views CEE Food & Drink Risk/Reward Ratings
Table: Food & Drink Risk/Reward Sub-Factor Ratings, Q412 (scores out of 10)
Table: CEE Food & Drink Risk/Reward Ratings, Q412 Slovakia’s Food & Drink Business Environment Ratings Macroeconomic Outlook
Industry Forecast Scenario
Consumer Outlook
Food Food Consumption
Table: Food Consumption Indicators – Historical Data & Forecasts, 2009-2016 Confectionery
Table: Confectionery Value/Volume Sales – Historical Data & Forecasts, 2009-2016
Canned Food
Table: Canned Food Value/Volume Sales – Historical Data & Forecasts, 2009-2016 Meat
Table: Meat Volume Sales, Production & Trade – Historical Data & Forecasts, 2009-2016
Pasta
Table: Pasta Volume Sales, Production & Trade – Historical Data & Forecasts, 2009-2016 Other Processed Foods
Table: Jams & Jellies Volume Sales, Production & Trade – Historical Data & Forecasts, 2009-2016
Table: Baked Products Volume Sales, Production & Trade – Historical Data & Forecasts, 2009-2016
Dairy
Table: Dairy Volume Sales, Production & Trade – Historical Data & Forecasts, 2009-2016 Drink
Alcoholic Drinks
Table: Alcoholic Drinks Value/Volume Sales – Historical Data & Forecasts , 2009-2016
Soft Drinks
Table: Soft Drinks Value/Volume Sales – Historical Data & Forecasts, 2009-2016 Hot Drinks
Table: Hot Drinks Value/Volume Sales – Historical Data & Forecasts, 2009-2016 Trade
Table: Trade Indicators – Historical Data & Forecasts, 2009-2016 Mass Grocery Retail
Table: Mass Grocery Retail Sales By Format – Historical Data & Forecasts,2009-2016
Food Key Industry Trends And Developments
Price And Quality Of Foodstuffs More Important Than Brands
Slovakian Farmers Receive Financial Aid Slovakia Food & Drink Report Q4 2012
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
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
Mass Grocery Retail
Key Industry Trends And Developments
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 ,2001-2011
Table: Structure Of Slovakia’s Mass Grocery Retail Market – Sales Value By Format ,2001-2011
Table: Average Value Per Outlet, 2011
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 Company Monitor
Food Drink 82 Mass Grocery Retail
Demographic Outlook
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 Risk/Reward Ratings Methodology
Table: Rewards
Table: Risks
Weighting
Slovakia Food & Drink Report Q4 2012
Table: Weighting
BMI Food & Drink Industry Glossary
Food & Drink
Mass Grocery Retail
BMI Food & Drink Forecasting & Sourcing
How We Generate Our Industry Forecasts
Sourcing

Tweet

Related research categories

By sector: General drinks

By market: Slovakia (in Europe)