Slovenia Food and Drink Report Q4 2012

Slovenia's medium-term macroeconomic outlook has continued to deteriorate in recent months owing to a combination of weak domestic and external dynamics. Consumer confidence remains weak, with domestic demand problems continuing to hold back the wider economy. Ongoing deleveraging at the household and corporate level and stubbornly high unemployment mean operating conditions for a lot of food and drink companies are still very challenging, with higher-end sectors finding things particularly tough. Headline Industry Data (local currency) ?? 2012 per capita food consumption: +0.46%; forecast compound annual growth rate (CAGR) to 2016: +1.10%. ?? 2012 alcoholic drinks value sales: +1.82%; forecast CAGR to 2016: +3.24%. ?? 2012 soft drinks value sales: +1.27%; forecast CAGR to 2016: +1.85%. ?? 2012 mass grocery retail sales: +4.39%; forecast CAGR to 2016: +5.24%.

Key Company Trends Slovenian Alcohol Excise Duties Raised Further: The raise in excise duties on alcoholic drinks has been effective from the start of July 2012, having previously been raised in the course of 2010. The changes mean that the excise tax on beer is 10% higher than previously, while the levy on other alcoholic drinks is higher by 20%, with the exception of wine, which remains exempt. The government is planning to raise EUR11.1mn annually towards its budget with the alcohol tax increase, which will be supplemented by the increase in tobacco taxes.

Mercator Posts Disappointing Q112 Results: Major Slovenian retailer Mercator has posted a sharp decline in its Q112 profit due to the regional economic collapse, an increase in unemployment, and lower disposable income causing consumers to spend less. The company reported a net income of US$891,100 in Q112 as compared to US$12.983mn in the same period in 2011. Key Risks To Outlook

Downside Risks Prevail: We reiterate our views that downside risks to consumer confidence in Slovenia remain in force, which is based on the weak state of the domestic economy, weak domestic demand, the onset of greater fiscal austerity this year and the precarious nature of the eurozone economy. Inflationary pressures will continue to be largely benign, with inflation not topping 3% since the start of 2012, even though some producer prices began to increase in the first half of the year.

Table of contents

Chapter 1 - BMI Industry View

Chapter 2 - SWOT Analysis

Slovenia Food Industry SWOT

Slovenia Drink Industry SWOT

Slovenia Mass Grocery Retail Industry SWOT

Chapter 3 - Business Environment

BMI’s Core Global Industry Views

Table: Core Views

CEE Food & Drink Risk/Reward Ratings

Table: Food & Drink Risk/Reward SubFactor Ratings Q (scores out of )

Table: CEE Food & Drink Risk/Reward Ratings Q

Slovenia’s Food & Drink Business Environment Rating

Macroeconomic Outlook

Further Economic Contraction In

Table: Slovenia – Economic Activity

Chapter 4 - Industry Forecast Scenario

Consumer Outlook

Food

Food Consumption

Table: Slovenia Food Consumption Indicators – Historical Data & Forecasts

Confectionery

Table: Confectionery

Canned Food

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

Pasta

Table: Pasta Production Consumption Trade – Historical Data & Forecasts

Meat

Table: Meat

Dairy

Table: Dairy Production Consumption Trade – Historical Data & Forecasts

Drink

Alcoholic Drink

Table: Alcoholic Drinks Volume/Value Indicators – Historical Data & Forecasts

Soft Drinks

Table: Soft Drinks Volume/Value Indicators – Historical Data & Forecasts

Hot Drinks

Table: Hot Drinks Volume/Value Indicators – Historical Data & Forecasts

Trade

Table: Sectoral trade indicators – Export Import and Balance Value – Historical Data and Forecasts

Mass Grocery Retail

Table: Slovenia Mass Grocery Retail – Value Sales by Format – Historical Data & Forecasts

Table: Mass Grocery Retail Sales Breakdown By Retail Format Type (% of total)

Chapter 5 - Food

Key Industry Trends And Developments

Slovenia Food & Drink Report Q

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Israeli Frutarom Continues Europe Expansion

Regional and Domestic Consolidation Continues

Market Overview

Food Production

Food Consumption

Confectionery

Canned Food

Trade

Agriculture

Chapter 6 - Drink

Key Industry Trends And Developments

Leading Brewer Cutting Losses

Serbian Nectar Taking Over Slovenian Fructal

Increased Focus On Foreign Sales

Market Overview

Alcoholic Drinks

Beer

Wine

Spirits

Soft Drinks

Hot Drinks

Chapter 7 - Mass Grocery Retail

Key Industry Trends and Developments

Mercator Expanding Regionally

Croatian Agrokor Failing to Muscle In On Mercator

Tuš Holding Divesting Of Its Serbian Business To Pay Debts

Market Overview

Leading Retailers

Table: Slovenia Structure of the Mass Grocery Retail Market by Number of Outlets

Table: Slovenia Structure of the mass retail grocery market by value

Table: Slovenia Estimated value of sales per outlet format ()

Chapter 8 - Competitive Landscape

Table: Key Players – Slovenia's Food Market

Table: Key Players – Slovenia's Drink Market

Table: Key Players – Slovenia's Mass Retail Grocery Market

Chapter 9 - Company Monitor

Food

Panvita

Perutnina Ptuj

Droga Kolinska (Atlantic Grupa)

Ljubljanske mlekarne

ETA živilska industrija dd

Drink

Fructal

CocaCola HBC Slovenia

Pivovarna Laško

Mass Grocery Retail

Mercator

Slovenia Food & Drink Report Q

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SPAR Slovenija

Engrotuš

Chapter 10 - Demographic Outlook

Table: Slovenia's Population By Age Group (')

Table: Slovenia's Population By Age Group (% of total)

Table: Slovenia's Key Population Ratios

Table: Slovenia's Rural And Urban Population

Chapter 11 - BMI Risk/Reward Ratings Methodology

Table: Rewards

Table: Risks

Weighting

Table: Weighting

Chapter 12 - BMI Food & Drink Industry Glossary

Food & Drink

Mass Grocery Retail

Chapter 13 - BMI Food & Drink Forecasting & Sourcing

How We Generate Our Industry Forecasts

Sourcing

Related research categories

By sector: General drinks

By market: Slovenia (in Europe)