West & Central Africa Food and Drink Report Q4 2012

BMI View: We hold a positive view towards Cameroon’s food, drink and mass grocery retail industries over our forecast period, in line with our broadly positive view on the country’s consumer sector, which is already one of the region’s most established. We expect consumer spending power to grow in line with the country’s strong medium-term growth outlook, with growth in economic activity driven by the ongoing expansion of the country’s oil industry and the subsequent inflow of investment into the market. This will feed through into falling unemployment, growing consumer confidence and increased spending.

Key Forecasts .. Total food consumption growth in 2012: 7.9 % year-on-year (y-o-y); compound annual growth to 2016: 9.5%. .. Mass grocery retail sales growth in 2012:9.5%; compound annual growth to 2016: 15.7%. .. Beer sales growth in 2012: 4.3%; compound annual growth to 2016: 3.6%.

Key Trends Population Growth: In line with the wider Sub-Saharan African region, a major factor in West and Central Africa’s appeal to investors is its favourable population dynamics. Nigeria, with its massive population, leads the pack in this regard. However, Cameroon’s population dynamics are also a major plus point for investors. The country’s 20.0mn-strong population (as of 2011) will grow to 24.1mn by 2020 and by an enormous 88% to 38.5mn in 2050. Most notable is the age profile of the population; in 2012, 51% of Cameroon’s population is forecast to be younger than 20, and this provides immense longterm growth opportunities for regional investors.

Formalisation of Retailing: Throughout the region, our forecasts for mass grocery retail sales growth outstrip our forecasts for food consumption growth, although it should be noted that both are broadly impressive. The outperformance of retail will be a result of the ongoing formalisation of the sector and the fact that it is, in most cases, coming from an exceptionally low base. The addition of just a few modern retail outlets, which cause shoppers to trade up and away from traditional independent stores and marketplaces, will have a massive impact on growth in the sector. In Cameroon, we estimate that only around 2% of grocery retail sales are accounted for by the organised sector, providing tremendous room for growth.

Risk/Reward Ratings: Cameroon is in 10th place out of the 13 regional markets that are ranked for Sub- Saharan Africa within BMI’s Food & Drink Risk/Reward Ratings. The country scores above the regional average in terms of rewards – an illustration of the massive growth opportunities available in the region. West & Central Africa Food & Drink Q4 2012 © Business Monitor International Ltd Page 6 However, it scores below average in terms of risk, highlighting the challenge that investors face in fully realising this potential opportunity. Overall, Cameroon ranks just below the Sub-Saharan Africa average in our regional ratings. Côte d’Ivoire

BMI View: We have a very positive medium-term outlook for the Ivorian food, beverage and retail sectors. Our positive view hinges on our Country Risk team’s expectations for economic growth in the country over our five-year forecast period, an impressive domestic demographic picture and the currently highly underdeveloped nature of the local market, which if nothing else leaves tremendous room for growth.

Key Forecasts .. Total food consumption growth in 2012: 9.9%. Compound annual growth to 2016: 10.3%. .. Mass grocery retail sales growth in 2012: 14.0%. Compound annual growth to 2016: 14.0%. .. Beer sales growth in 2012: 8.0%. Compound annual growth to 2016:6%.

Key Trends Population Growth: In line with the wider Sub-Saharan African region, a major factor in West and Central Africa’s appeal to investors is its favourable population dynamics. Nigeria, with its massive population, leads the pack in this regard. However, Côte d’Ivoire’s population dynamics are also a major plus point for investors. The country’s already attractive 20.2mn-strong population base (as of 2011) will grow to 24.5mn by 2020 and by a massive 98% to a very healthy 40.7mn in 2050. Most notable is the age profile of the population – in 2012, 51% of Côte d’Ivoire’s population is forecast to be younger than 20, and this provides immense long-term growth opportunities for regional investors.

Formalisation of Retailing: Throughout the region, our forecasts for mass grocery retail sales growth outstrip our forecasts for food consumption growth, although it should be noted that both are broadly impressive. The outperformance of retail will be a result of the ongoing formalisation of the sector and the fact that it is, in most cases, coming from an exceptionally low base. The addition of just a few modern retail outlets, which cause shoppers to trade up and away from traditional independent stores and marketplaces, will have a massive impact on growth in the sector. In Côte d’Ivoire, we estimate that only around 3% to 4% of grocery retail sales are accounted for by the organised sector and this provides tremendous room for growth.

Risk/Reward Ratings: Côte d’Ivoire is tied for 11th place out of 13 regional markets that are ranked for Sub-Saharan Africa within BMI’s Food & Drink Risk/Reward Ratings. The country scores above the regional average in terms of rewards – an illustration of the massive growth opportunities available in the region. However, it scores well below the regional average in terms of risk, highlighting the major West & Central Africa Food & Drink Q4 2012 © Business Monitor International Ltd Page 7 challenge that investors face in fully realising this potential opportunity. Overall, Côte d’Ivoire ranks below the Sub-Saharan Africa average in our regional ratings. Gabon

BMI View: Relative to a number of other Central and West African economies, our outlook for growth in Gabon’s food, drink and retail sectors is fairly modest. That said, this is modest growth by regional standards, and our forecasts for food consumption and soft drink sales growth for 2012 is still pretty appealing and largely in tune with our positive views on the Sub-Saharan African consumer growth story. However, there are some macroeconomic risks that must be considered. Oil production in Gabon is in decline, and despite ambitious government diversification plans, there is still an overreliance on this sector for growth and employment.

Key Forecasts .. Per capita food consumption growth in 2012: 3.8%. Compound annual growth to 2016: 2.9%. .. Mass grocery retail sales growth in 2012: 12.5%. Compound annual growth to 2016: 13.1%. .. Beer volume sales growth in 2012: 3.1%. Compound annual growth to 2016: 4.4%.

Key Trends Population Growth: In line with the wider Sub-Saharan African region, a major factor in West and Central Africa’s appeal to investors is its favourable population dynamics. Nigeria, with its massive population, leads the pack in this regard. Gabon is at the opposite end of the scale. Similar to most of its regional peers, it will enjoy very strong population growth – the size of the country’s population forecast to increase by 75% out to 2050. Also in keeping with broader regional dynamics, Gabon has a very positive age profile, with 46% of the country’s population expected to be younger than 20 in 2012. However, growth is coming from a very low base. Gabon’s population is forecast to reach 1.6mn in 2012, and this marks it out as significantly less attractive than many of its neighbours.

Formalisation of Retailing: Throughout the region, our forecasts for mass grocery retail sales growth outstrip our forecasts for food consumption growth, although it should be noted that both are broadly impressive. The outperformance of retail will be a result of the ongoing formalisation of the sector and the fact that it is, in most cases, coming from an exceptionally low base. The addition of just a few modern retail outlets, which cause shoppers to trade up and away from traditional independent stores and marketplaces, will have a massive impact on growth in the sector. In Gabon, we estimate that only around 3% to 4% of grocery retail sales are accounted for by the organised sector, and this provides strong prospects for growth in spite of the limited size of the potential audience.

Risk/Reward Ratings: Gabon falls in 13th place out of the 13 regional markets that are ranked for Sub- Saharan Africa within BMI’s Food & Drink Risk/Reward Ratings. The country’s rewards score is low by West & Central Africa Food & Drink Q4 2012

Table of contents

Chapter 1 - BMI Industry View

Cameroon

Côte d’Ivoire

Gabon

Chapter 2 - Business Environment

Sub-Saharan Africa Food & Drink Ratings

Table: Risk/Reward Sub-Factor Ratings Q (scores out of )

Table: Sub-Saharan Africa Food & Drink Risk/Reward Ratings Q

Chapter 3 - Macroeconomic Forecast

Cameroon

Table: Cameroon – Economic Activity

Côte d’Ivoire

Table: Côte d’Ivoire – Economic Activity

Gabon

Chapter 4 - Industry Forecast

Cameroon

Food

Table: Cameroon – Food Consumption

Table: Cameroon – Confectionery

Drink

Table: Cameroon – Alcoholic Drinks

Table: Cameroon – Soft Drinks

Mass Grocery Retail

Table: Cameroon – Mass Grocery Retail Sales

Côte d’Ivoire

Food

Table: Côte d’Ivoire – Food Consumption, -

Drink

Table: Côte d’Ivoire – Alcoholic Drinks, -

Mass Grocery Retail

Table: Côte d’Ivoire – Mass Grocery Retail, -

Gabon

Food

Table: Gabon – Food Consumption

Drink

Table: Gabon – Soft Drinks

Table: Gabon – Alcoholic Drinks

Mass Grocery Retail

Table: Gabon – Mass Grocery Retail Sales

Chapter 5 - Market Overview

Looking Beyond Ghana And Nigeria For Opportunities In West Africa

SABMiller’s Sechaba Breweries: SSA’s Most Efficient Beer Company?

Chapter 6 - Demographic Forecast

Cameroon

Table: Cameroon – Population By Age Group,-

West & Central Africa Food & Drink Q

© Business Monitor International Ltd Page

Table: Cameroon – Population By Age Group,-

Table: Cameroon – Key Population Ratios,-

Table: Cameroon – Rural & Urban Population,-

Côte d’Ivoire

Table: Côte d’Ivoire – Population By Age Group, -

Table: Côte d’Ivoire – Population By Age Group, -

Table: Côte d’Ivoire – Key Population Ratios, -

Table: Côte d’Ivoire – Rural & Urban Population, -

Gabon

Table: Gabon – Population By Age Group, -

Table: Gabon – Population By Age Group, -

Table: Gabon’s Key Population Ratios, -

Table: Gabon’s Rural And Urban Population, -

Chapter 7 - Risk/Reward Ratings Methodology

Table: Rewards

Table: Risks

Weighting

Table: Weighting

Chapter 8 - BMI Food & Drink Industry Glossary

Food & Drink

Mass Grocery Retail

Chapter 9 - BMI Food & Drink Forecasting & Sourcing

How We Generate Our Industry Forecasts

Sourcing

Related research categories

By sector: General drinks

By market: Africa