Zimbabwe Food and Drink Report 2013
Report description
Zimbabwean economic growth in the first three years following the return of macroeconomic stability that came with dollarisation in 2009 was relatively robust at an estimated 5.8%, 8.1% and 9.3% year-onyear (y-o-y) respectively in 2009, 2010 and 2011. However, the prospects for growth to remain at these levels in 2012 and the years thereafter look somewhat dimmer. While we acknowledge that Zimbabwe, with its abundant natural resources, educated workforce and relatively developed physical infrastructure, possesses considerable potential, it will require the inflow of foreign capital to finance the harnessing of this potential.
Key Industry Trends
Delta Shining Post Dollarisation: Zimbabwe's Delta Corporation, which dominates the Zimbabwean beer and soft drinks landscape, has invested considerable sums in the country (believed to be in the vicinity of US$200mn) since 2009 with SABMiller, which owns about 36% of its equity, among its main backers. Given its size, its allegiance and how well it has done post 2009, Delta has been able to access credit internationally at affordable rates. Significantly, both beer and soft drinks have been performing very well with both units registering annual volume growth in excess of 20% in the year to March 2012. The company reported a 37.4% rise in net sales to US$479.9mn, with operating profits jumping by 44 %to US$98.3mn. In October 2012, Delta Corporation has become the first company in the country to achieve a market capitalisation of US$1bn.
Retail Attracting Interest in Zimbabwe: We estimate formal food retail stores account for about 25% of sales in Zimbabwe. To provide some context, this compares with about 5% in Kenya, which is considered to be among the region's most developed organised retail markets after South Africa, Botswana and Namibia. Mass grocery retailers such as South Africa's Pick n Pay are believed to be keen to increase their exposure to Zimbabwe. Given that Pick n Pay increased its stake in domestic retailer Meikles-owned TM to 49% during 2012, the retailer is now better positioned to expand in the country. In summer 2012 Pick n Pay opened its first store in Harare, Zimbabwe, after acquiring the stake in TM. The outlet includes a supermarket, a liquor store and a clothing store as part of the refurbished Kamfinsa shopping centre, and will devote at least 40% of its floor space to fresh produce and deli goods. Pick n Pay has said that the rebranding exercise of TM stores will take at least three years to complete.
Table of contents
Chapter - BMI Industry View
Chapter - SWOT Analysis
Zimbabwe Food Industry SWOT
Zimbabwe Drink Industry SWOT
Zimbabwe Mass Grocery Retail Industry SWOT
Chapter - Business Environment
BMI's Core Global Industry Views
Table: Core Views
Macroeconomic Outlook
Table: Zimbabwe – Economic Activity
Chapter - Industry Forecast Scenario
Consumer Outlook
Food
Food Consumption
Table: Total Food Consumption, 2010-2017
Drinks
Alcoholic Drinks
Beer
Table: Alcohol
Soft Drinks
Mass Grocery Retail
Chapter - Food
Key Industry Trends And Developments
Nestle Commits to Zimbabwe
Innscor Revenues Up, Looking To Beef Up Regional Presence
Much Needed Investments In Agriculture
Nestlé Shuts Down Production, But Not For Long
Making Up For The Lost Decade
Market Overview
Agriculture
Food Production
Table: Manufacturing Production Index By Sub-Sector, Base Year 1990 = 100
Chapter - Drink
Key Industry Trends and Developments
Delta Shining Light Post Dollarisation
Schweppes Eyeing IPO, Soft Drinks Looking Good
Signs of Recovery Starting To Take Hold
Zimbabwean Beer Is Different
Soft Drinks Sale Could Also Take Off
SABMiller's Africa Strategy
Market Overview
Alcoholic Drinks
Soft Drinks
Chapter - Mass Grocery Retail
Key Industry Trends and Developments
Retail Attracting Interest in Zimbabwe
Consumer Sector On The Mend
Zimbabwe Retail Different
High Overheads And Imports
South African Retailers Continue to Eye The Market
Market Overview
Chapter - Competitive Landscape
Key Players
Table: Key Players in Zimbabwe's Food & Drink Sector
Table: Key Players in Zimbabwe's Mass Grocery Retail Industry
Chapter - Company Monitor
Food
Dairibord Zimbabwe Ltd (DZL Holdings)
Cairns Foods Ltd
Drink
Delta Beverages
Mass Grocery Retail
Meikles (TM)
OK Zimbabwe
Chapter - BMI Food & Drink 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
BMI Food & Drink Industry Glossary
Food & Drink
Mass Grocery Retail
BMI Food & Drink Forecasting And Sources
How We Generate Our Industry Forecasts
Sources
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Current time at just-drinks headquarters: 12:10pm (Friday, 24 May 2013)
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