Spain Food and Drink Report Q1 2013
Report description
An economic contraction and a deflating housing bubble mean that consumer confidence in Spain has fallen sharply. This has had a significant impact on mass grocery retail, with sales from hypermarkets, supermarkets and convenience stores all falling sharply over the past few years. However, this economic environment has created ideal conditions for private labels to thrive and has also provided a sales boost at discount stores. One company that managed to do well in 2012 has been the discount food retailer Dia - a Carrefour spin-off. We believe that Dia is one of a select few Western Europe-based food retailers with good near-term growth prospects in the region.
Headline Industry Data (local currency)
?? 2013 per capita food consumption = +1.29%; forecast compound annual growth rate (CAGR) to 2017 = +1.89.
?? 2013 alcoholic drink value sales = +0.83%; forecast CAGR to 2017 = +1.48%.
?? 2013 soft drink value sales = +1.05%; forecast CAGR to 2017 = +2.14%.
?? 2013 mass grocery retail sales = +1.73%; forecast CAGR to 2017 = +2.58%.
Key Company Trends & Developments
Nestlé Boosting Its Condensed Milk Export Capacity: In June 2012, Switzerland-based food and nutrition company Nestlé invested US$7.46mn in its condensed milk plant in Pontecesures, Spain. The plant's production capacity has increased by 50% as a result of the expansion, with almost half of the milk products manufactured there being exported to Europe, Asia and Africa.
Fairtrade Rising in Popularity in Spain: A report by the Fairtrade industry found that sales of Fairtrade produce in Spain grew to EUR26mn (US$33.6mn) in 2011, an increase of 16.8% year-on-year (y-o-y). Fairtrade coffee led sales, with confectionery following. The report highlighted, however, that the rest of Europe saw higher sales of Fairtrade produce than Spain during the year.
Key Risk to Outlook
Combination of Economic and Political Risks: We continue to see major downside risks to our forecasts. The position of the already embattled Spanish consumer would be exacerbated by a worse-than-expected performance of the country's economy, predicated on the wider eurozone economic trends, and/or the further tightening of the fiscal measures. Moreover, the fiscal and economic crisis has opened up a rift between the central government and the 17 regions that have autonomous control over local budgets, which could heighten political and social tensions.
Table of contents
Chapter - BMI Industry View
Chapter - SWOT Analysis
Spain Food Industry SWOT
Spain Drink Industry SWOT
Spain Mass Grocery Retail Industry SWOT
Chapter - Business Environment
BMI's Core Global Industry Views
Table: Core Views
Western Europe Risk/Reward Ratings
Table: Western Europe Q113 Food & Drink Risk/Reward Sub-Factor Ratings (scores out of 10)
Table: Western Europe Q113 Food & Drink Risk/Reward Ratings
Spain's Food & Drink Risk/Reward Ratings
Macroeconomic Outlook
Table: Economic Activity
Chapter - Industry Forecast Scenario
Consumer Outlook
Food
Food Consumption
Table: Food Consumption Indicators – Historical Data & Forecasts, 2010-2017
Canned Food/Prepared Food
Table: Canned Food Value/Volume Sales – Historical Data & Forecasts, 2010-2017
Confectionery
Table: Confectionery Value/Volume Sales – Historical Data & Forecasts, 2010-2017
Snack Food
Table: Baked Goods & Jam Volume Sales, Production & Trade – Historical Data & Forecasts, 2010-2017
Pasta
Table: Pasta Volume Sales, Production & Trade – Historical Data & Forecasts, 2010-2017
Meat And Fish
Table: Meat Volume Sales, Production & Trade – Historical Data & Forecasts, 2010-2017
Table: Fish Volume Sales, Production & Trade – Historical Data & Forecasts, 2010-2017
Frozen Vegetables
Table: Frozen Vegetables Volume Sales, Production & Trade – Historical Data & Forecasts, 2010-2017
Oils And Fats
Table: Oils & Fats Volume Sales, Production & Trade – Historical Data & Forecasts, 2010-2017
Dairy
Table: Dairy Volume Sales, Production & Trade – Historical Data & Forecasts, 2010-2017
Drink
Hot Drinks
Table: Hot Drinks Value/Volume Sales – Historical Data & Forecasts, 2010-2017
Soft Drinks
Table: Soft Drink Value/Volume Sales – Historical Data & Forecasts, 2010-2017
Alcoholic Drinks
Table: Alcoholic Drinks Value/Volume Sales – Historical Data & Forecasts, 2010-2017
Mass Grocery Retail
Table: Mass Grocery Retail Sales By Format – Historical Data & Forecasts, 2010-2017
Table: Grocery Retail Sales By Format (%)
Trade
Table: Food & Drink Trade Balance – Historical Data & Forecasts, 2010-2017
Chapter - Food
Key Industry Trends And Developments
Ebro To Grow Via Geographic Expansion, M&A
Weak Spanish Market Pushes International Growth
Stevia's EU Approval Will Spur Product Development
Agro-Food Fund Established In Spain
Smithfield No Longer Looking To Raise Stake In Campofrio
Mixed Signs For Investment In Sector
Market Overview
Organic Agriculture
Chapter - Drink
Key Industry Trends And Developments
Henkell Positions For Sparkling Growth With Cava Acquisition
Mahou-San Miguel Moves Into India
Heineken To Cut Further In Europe; Spain Stagnant
Spirits Hit By New Taxes
Beverage Companies Add To Product Range
Market Overview
Soft Drinks
Alcoholic Drinks
Hot Drinks
Chapter - Mass Grocery Retail
Key Industry Trends And Developments
Dia's 2012 Results Impress Market
Tough Economic Conditions Take Toll On MGR Sales
Metro Reorganises Iberian Cash & Carry Operations
Eroski Focuses On Franchising
Lithuanian Maxima Moves Into Spain
Market Overview
Leading Retailers
Table: Structure Of Spain's Mass Grocery Retail Market By Estimated Number Of Outlets
Table: Structure Of Spain's Mass Grocery Retail Market By Value (US$mn)
Table: Structure Of Spain's Mass Grocery Retail Market By Value (EURmn)
Table: Estimated Annual Average Sales Per Outlet By Format – 2012
Chapter - Competitive Landscape
Table: Key Players In Spain's Food Sector
Table: Key Players In Spain's Drink Sector
Table: Key Players In Spain's Mass Grocery Retail Sector
Chapter - Company Monitor
Food
Grupo Ebro Puleva
Grupo Leche Pascual Alimentación
Campofrio Alimentación SA
Deoleo (SOS Corporación Alimentaria)
Drink
Mahou-San Miguel
Heineken España SA
Mass Grocery Retail
Auchan
Centros Comerciales Carrefour
Eroski Group (Including Caprabo)
Mercadona
Chapter - Demographic Outlook
Table: Spain's Population By Age Group, 1990-2020 ('000)
Table: Spain's Population By Age Group, 1990-2020 (% of total)
Table: Spain's Key Population Ratios, 1990-2020
Table: Spain's Rural And Urban Population, 1990-2020
Chapter - 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
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
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