|
|
 |
|
Viewing report
|
|
|
|
Brazil Food and Drink Report Q4 2011
Business Monitor International, Aug 2011, Pages: 120
Business Monitor International's Brazil 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 Brazil's food and drink industry.
Brazil continues to top BMI's Latin America Risk/Reward rating thanks to its very high Reward rating. This reflects the fact that the country represents a particularly dynamic market for the food and drink sector, supported by rising affluence and the increasingly positive picture for Brazil's large low-income population. That said, the report has become more cautious about possible overheating, which could have negative implications for demand. This partly explains why Brazil's risk rating remains only average for the region, with inflationary and financial risks in the market higher than in some other parts of Latin America.
Headline Industry Data (local currency)
- 2011 per capita food consumption = +7.9%; forecast to 2015 = +47%.
- 2010 alcoholic drink sales = +9.5%; forecast to 2015 = +54%.
- 2011 soft drink sales = +10.7%; forecast to 2015= +65%.
- 2011 mass grocery retail (MGR) sales = +12.7%; forecast to 2015 = +63%.
Key Company Trends
Brazil Foods Shares Up As Merger Finally Approved – Shares in Brazil Foods surged by over 14% between July 12 and July 14 after the country's antitrust regulator, Cade, ruled that it would allow the merger that created the firm to go ahead. The ruling requires the firm to sell off a significant chunk of its manufacturing capacity and relinquish the use of several key brands. However, the deal is being greeted very positively by investors due to earlier signs that Cade was looking unfavourably on the merger. Brazil Foods now looks in a strong position to increase its revenue and earnings in one of the world's fastest growing consumer markets.
CBD/Carrefour Merger Falls Flat – In July 2011, the Brazilian government backed out from a proposed merger of local retailer CBD with French retailer Carrefour following strong opposition from the Brazilian company's existing partner Casino. Previously, the Brazilian National Development Bank had agreed to spend approximately US$3bn of public funds to finance the proposed deal on condition all players agreed to it amicably. However, Casino opposes the deal, considering it hostile and illegal.
Key Risks To Outlook
Overheating Risks Rise – Brazil's rapid recovery from the global financial crisis has reinforced its position at the forefront of the emerging market story, and reinforced investor interest in the country. That said, such a swift rebound has pushed the economy to the brink of overheating as still-strong credit growth pushes inflation to uncomfortably high levels. Tackling these challenges, alongside persistent concerns regarding the impact of high interest rates on the exchange rate – and in turn manufacturing competitiveness – is likely to form the administration's toughest task in the years to 2014.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
|
|
|
|
