|
|
 |
|
Viewing report
|
|
|
|
Colombia Food and Drink Report Q1 2011
Business Monitor International, Nov 2010, Pages: 76
Business Monitor International's Colombia Food and Drink Report provides industry professionals and strategists, corporate analysts, food and drink associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Colombia's food and drink industry.
BMI View: Retail sales growth remained in negative territory throughout 2009, as low consumer confidence and rising unemployment encouraged consumers to save rather than spend, while at the same time the global credit crunch meant banks were less inclined to lend. A reduction in borrowing was sustained in the first few months of 2010, despite an easing of the global credit environment. However, over recent months credit growth has once again turned positive while unemployment has started to fall. Both of these factors add momentum to our more positive outlook for 2011 and beyond.
Headline Industry Data (in local currency)
- 2011 per capita food consumption = +9%; forecast to 2015 = +45%
- 2011 alcoholic drink sales = +2%; forecast to 2015 = +17%
- 2011 soft drink sales = +4.5% ; forecast to 2015 = +28%
- 2011 mass grocery retail sales = +9%; forecast to 2015 = +61%
Key Company Trends
International Expansion – Colombian food and drink companies are increasingly pursuing international expansion, attracted by the close proximity of markets that are larger and/or less mature than the domestic market. Opportunities abound across the Latin American region, and Colombian firms, with their local market knowledge and regional expertise, are well placed to take advantage. Colombian firms are also expanding into the US attracted by the size of the market and the country’s growing Hispanic population. In September 2010 Colombia’s largest processed food producer, Grupo Nacional de Chocolates, acquired US cookie producer Fehr Foods for US$84mn.
New Beer Taxes Continue To Bite – The first half results posted by beer major SABMiller were weighed down by a drop in volumes in Colombia, where volumes fell by 7%. The difficulties in Colombia can be traced to new sales taxes and a number of ‘dry days’ around the county’s elections. The significant slump in SABMiller’s sales during H110 suggest the impact of the new alcohol duties may be more far-reaching and longer lasting than we anticipated and our forecasts have therefore been amended to reflect this.
Key Risks to Outlook
Faster Credit Expansion – With consumer spending in Colombia tied closely to credit expansion, a key risk to our outlook is any change in this indicator, in turn a factor that is dependent on consumer propensity to borrow, bank's willingness to lend and on interest rates. Slower credit going forward is likely to cap private consumption growth, and this reinforces our view that Colombia's inflationary outlook is set to remain benign, as price pressures are held back over the medium term.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
Customers who bought this item also bought
Colombia Food and Drink Report Q4 2010
Colombia Food and Drink Report Q2 2012
Colombia Food and Drink Report Q4 2011
Colombia Food and Drink Report Q3 2011
Colombia Food and Drink Report Q2 2010
Colombia Food and Drink Report Q1 2009
Colombia Food and Drink Report Q4 2009
Colombia Food and Drink Report Q4 2008
Colombia Food and Drink Report Q3 2008
Colombia Food and Drink Report Q2 2008
|
|
|
|
