Bahrain Food and Drink Report Q1 2012
Business Monitor International, November 2011, Pages: 66
Business Monitor International's Bahrain 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 Bahrain's food and drink industry.
The combination of ongoing political tensions and a weak economic outlook is taking its toll on consumer confidence in Bahrain, and on the country’s food and drink sector. The latest data from Bahrain’s statistical agency has confirmed BMI's view that growth would slow sharply in 2011, with real GDP expanding only 0.7% y-o-y in Q2.
This marked the sixth consecutive quarter that growth has slowed in year-on-year terms, and real GDP is expected to expand by only 0.5% and 1.2% in 2011 and 2012 respectively. Heading into 2012, the deteriorating outlook for the global economy will also weigh on Bahrain’s growth prospects. In the near term, growth will be supported by a combination of fiscal stimulus and external assistance from key regional allies such as Saudi Arabia.
Due to the above factors, BMI's outlook on household spending heading into 2012 remains downbeat. With credit growth having already showed signs of slowing through the first half of 2011 as risk aversion spiked amidst unprecedented anti-government demonstrations, the Bahraini consumer is likely to retrench over the coming months, with major purchasing decisions delayed until more clarity on the political crisis emerges.
Meanwhile, public expenditure is set to increase significantly in 2011 and 2012, as Manama attempts to quell the possibility of further anti-government demonstrations with pledges of new spending measures. Since the start of the year there has been a drastic increase in promises of cash handouts, increased subsidies, and new employment opportunities.
Headline Industry Data:
- 2011 food consumption growth= +15.9%; forecast to 2016= +16.7%
- 2011 soft drink value sales = +12.0%; forecast to 2016 = +13.2%
- 2011 mass grocery retail sales = +21.1%; forecast to 2016 = +25.0%
Key Company Trends:
Géant Plans Regional Expansions: In September 2011 French hypermarket chain Géant, operated by the retail giant Casino, announced plans for a major expansion throughout the Middle East. According to Arif Shaikh, managing director of Géant’s operations in the Middle East, the company plans to open five hypermarkets and 30 smaller stores over the next three years in Bahrain, Kuwait and the UAE, its key Gulf markets.
Within two years, the company is also planning on entering Qatar and Oman. He went on to say that Géant has embarked on an aggressive expansion plan since the financial crisis brought down real estate prices throughout the region.
Al Rawabi Moving Into Bahrain: In September 2011 it was reported that UAE-based dairy producer Al Rawabi Dairy Company has plans for a US$200mn expansion programme to widen operations in the Gulf. According to AME Info, the firm wants to replicate its successful business model in Bahrain and Kuwait.
Al Rawabi has experienced significant growth over the past two decades and is now one of the leading dairy companies in the region, with over a third of its domestic market. The company is known for the strength of its brand name and reputation for quality, and could pose major competition to domestic dairy companies in Bahrain.
Key Risks To Outlook:
Long-term Impact Of Current Crisis: Should the government fail to address some of the protestors’ main grievances, Bahrain’s political crisis could rumble on for longer than expected, with risks of the opposition becoming radicalised increasing by the day. It also remains unclear what impact this current political crisis will have on Bahrain’s long-term economic outlook. Should investors begin to reassess the costs of doing business in the country and begin relocating to Dubai or Doha, Bahrain’s growth outlook would suffer accordingly.
BMI Industry View
SWOT Analysis
Bahrain Food Industry SWOT
Bahrain Drinks Industry SWOT
Bahrain Mass Grocery Retail SWOT
Business Environment
BMI’s Core Global Industry Views
Table: Food Prices, 2010 And 2011
Table: BMI’s Core Views For The Food & Drink Industry
Middle East Food & Drink Risk/Reward Ratings
Table: Saudi Arabia Food & Drink Risk/Reward Ratings – Q112
Table: Middle East & North Africa Food & Drink Risk/Reward Ratings – Q112
Bahrain’s Food & Drink Risk/Reward Ratings
Macroeconomic Outlook
Table: Economic Activity
Industry Forecast Scenario
Consumer Outlook
Food
Food Consumption
Table: Food Consumption Indicators – Historical Data & Forecasts
Drink
Soft Drinks
Table: Soft Drinks Value Sales – Historical Data & Forecasts
Mass Grocery Retail
Table: Mass Grocery Retail Sales Value by Format – Historical Data & Forecasts
Trade
Table: Trade Balance – Historical Data & Forecasts
Food
Key Industry Trends And Developments
Increasing Interest In Processed Foods
Growing Popularity Of Eating Out
Continued Government Investment
Interest From Non-Regional Multinational Corporations
Market Overview
Agriculture
Key Food Processors
Halal Food
Table: Muslim Population In Select Countries
Drink
Key Industry Trends And Developments
Alcohol Piggybacking Off Aviation Boom
Tang Proving Very Popular
Carbonates Still Strong
Diversifying Towards New Product Categories
Market Overview
Soft Drinks
Alcoholic Drinks
Hot Drinks
Mass Grocery Retail
Key Industry Trends And Developments
Catching The Eye Of Foreign Investors
Duty-Free Booming Across Gulf
Growing Investment In Convenience Retailing
Market Overview
Competitive Landscape
Table: Key Players In Bahrain’s Food & Drink Sector
Table: Key Players In Bahrain’s Mass Grocery Retail Sector
Company Monitor
Food
Bahrain Flour Mills Company
General Trading And Food Processing Company (TRAFCO)
Kraft Foods MEA
Delmon Poultry Company
Drink
Awal Dairy Company
Mass Grocery Retail
EMKE Group
Fu-Com International/Géant
Carrefour MAF
BMI 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
- Fu-Com Internat Bahrain Flour Mills Company
- General Trading And Food Processing Company (TRAFCO)
- Kraft Foods MEA
- Delmon Poultry Company
- Awal Dairy Company
- EMKE Group
- Fu-Com International/Géant
- Carrefour MAFional/Géant
- Carrefour MAF
Product Samples
A sample for this product is available. Please Login/Register to download this sample.
Customers who bought this item also bought
All rights reserved. © Copyright 2013 Research and Markets WWW5
Terms and Conditions Privacy Policy Publishers Employment Opportunities Site Map Link to us Webmaster Affiliate Network
