Chile Food and Drink Report Q1 2011
Business Monitor International, November 2010, Pages: 72
Chile 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 Chile's food and drink industry.
Domestic food consumption has increased rapidly over the last five years. This growth came to an abrupt halt in 2009, with lower consumer confidence and increased price sensitivity meaning that per capita consumption stagnated. However, growth has returned in 2010 and food consumption is expected to increase steadily over the next five-year period. Consumption is expected to be driven by increased purchasing power, as income levels continue to catch up with those in developed markets. This makes the purchase of processed food products an option for a growing proportion of the population and offers food and drink manufacturers’ opportunities to launch new, innovative value-added products.
Headline Industry Data
- 2011 per capita food consumption = +8%; forecast to 2015 = +36%
- 2011 alcoholic drink sales = +6%; forecast to 2015 = +27%
- 2011 soft drink sales = +9% ; forecast to 2015 = +43%
- 2011 mass grocery retail sales = +5%; forecast to 2015 = +21%
Key Company Trends
Low growth in domestic wine demand requires focus on exports – The reputation of Chilean wine is among the best of all New World producers, with a history of quality that started with wine industry reforms in the 1980s. Paradoxically, despite the growing export demand, consumption of wine on the domestic front has stagnated for several years and is expected to grow only slightly over the five-year forecast period. This has seen major Chilean producers focus on exports and with an emphasis on branding coupled with value Chile has proven to be in a strong position to make progress on the export front during the economic downturn.
International retail expansion – With the local retail market fairly mature, it is logical that major Chilean retailers have started investing heavily outside Chile. This has continued into the latest quarter with Cencosud announcing in October 2010 the acquisition of Brazilian supermarket operator Supermercado Bretas for BRL1.35bn (US$814mn). Bretas operates 62 supermarkets and three distribution centres and the acquisition will significantly expand Cencosud’s Brazilian operations. Bretas represents Cencosud’s largest acquisition since 2005 and will cement the firm’s position as the country’s fourth largest grocery retailer.
Key Risks to Outlook Market maturity – A limiting factor on our growth forecasts is the growing maturity of the food, drink and retail sectors; for example, Chileans are already among the highest consumers of soft drinks in the world. Secondary Chinese slowdown – Along with market maturity the key risk to our consumption forecasts is the prospect of a secondary slowdown in China. Chinese demand for strategic raw materials such as copper helped prop up Chilean growth during 2009 and the country has now overtaken the US as Chile's main export destination. However, overly accommodative fiscal and monetary stimuli in China have led to an overheating that could result in a sharp withdrawal in 2011.
BMI Industry View
SWOT Analysis
Chile Food Industry SWOT
Chile Drink Industry SWOT
Chile Mass Grocery Retail Industry SWOT
Business Environment
BMI’s Core Global Industry Views
BMI Food & Drink Core Views
Latin America Risk/Reward Ratings
Table: Latin America Food & Drink Risk/Reward Ratings Q111
Chile’s Risk/Reward Rating
Macroeconomic Outlook
Table: Chile – Economic Activity
Industry Forecast Scenario
Consumer Outlook
Food
Total Food Consumption
Table: Chile Food Consumption Indicators - Historical Data & Forecasts
Canned Food
Table: Canned Food Value/Volume Sales - Historical Data & Forecasts
Confectionery
Table: Confectionery Value/Volume Sales – Historical Data & Forecasts
Drink
Hot Drinks
Table: Hot Drink Value Sales – Historical Data & Forecasts
Soft Drinks
Table: Soft Drink Value/Volume Sales – Historical Data & Forecasts
Alcoholic Drinks
Table: Alcoholic Drink Value/Volume Sales – Historical Data & Forecasts
Trade
Table: Food & Drink Trade Balance – Historical Data & Forecasts
Mass Grocery Retail
Table: Chile Mass Grocery Retail – Value Sales by Format – Historical Data & Forecasts
Food
Key Company Developments
Chile Positioned As Regional Hub
Salmon Industry Hit By Disease
Foreign Direct Investment
Focus On Healthy Food
Market Overview
Overview of Food Sector
Canned Food/Prepared Food
Confectionery
Dairy
Meat
Aquaculture
Drink
Key Company Developments
Growth Of Private Labels
Wine Exports Growing
Investment In Soft Drinks
Market Overview
Soft Drinks
Alcoholic Drinks
Mass Grocery Retail
Key Company Developments
International Expansion
Wal-Mart’s Entry
Market Overview
Table: Structure of Chile's Mass Grocery Retail Market by Estimated Number of Outlets
Table: Structure of Chile's Mass Grocery Retail Market – Sales by Format (US$bn)
Table: Structure of Chile's Mass Grocery Retail Market – Sales by Format (CHLbn)
Table: Average Annual Sales Value by Format – 2009
Competitive Landscape
Table: Key Players in Chile's Food Sector
Table: Key Players in Chile's Drink Sector
Table: Key Players in Chile's Mass Grocery Retail Sector
Company Profiles
Food
Empresas Carozzi
Nestlé Chile SA
Soprole
Drink
Concha y Toro
Embotelladora Andina
Compañia Cervecerias Unidas (CCU)
Mass Grocery Retail
Distribución y Servicio (D&S)
Cencosud SA
BMI Food & Drink Methodology
Food & Drink Business Environment Ratings
Table: Rewards
Table: Risks
Weighting
Table: Weighting
BMI Food & Drink Industry Glossary
Food & Drink
Mass Grocery Retail
BMI Food & Drink Forecasting & Sourcing
How We Generate Our Industry Forecasts
Sourcing
- Empresas Carozzi
- Nestlé Chile SA
- Soprole
- Concha y Toro
- Embotelladora Andina
- Compañia Cervecerias Unidas (CCU)
- Distribución y Servicio (D&S)
- Cencosud SA
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