|
|
 |
|
Viewing report
|
|
|
|
Croatia Food and Drink Report Q1 2012
Business Monitor International, Nov 2011, Pages: 100
Business Monitor International's Croatia 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 Croatia's food and drink industry.
Croatian consumer confidence has been severely impacted by two years of economic contraction, with real GDP having declining by 6.0% year-on-year (y-o-y) in 2009 and by 1.2% in 2010. In our view, 2011 and 2012 are shaping to be only marginally more promising in terms of economic growth. Additional issues include the fact that unemployment remains stubbornly high and the pending introduction of fiscal austerity measures, all of which will continue to weigh down on consumer spending, with premiumisation firmly on hold for the time being.
Headline Industry Data (local currency)
- 2011 per capita food consumption = +0.68%; forecast compound growth rate to 2016 = +1.27%
- 2011 alcoholic drinks value sales = +1.23%; forecast compound growth rate to 2016 = +2.63%
- 2011 soft drinks value sales = +0.82%; forecast compound growth rate to 2016 = +1.73%
- 2011 mass grocery retail = +3.66%; forecast compound growth rate to 2016 = +5.05%
Key Company Trends
Croatian Vintner Expands Production
In September 2011, leading Croatian vintner Belje opened a new winery stretching across 3 acres at a cost of EUR20mn (US$28mn). With 247 stainless steel tanks installed by Italian firm Gortana, the site’s total capacity for wine production will stand at 8mn litres. Belje will likely target export markets given the subdued consumer outlook domestically. A number of wines produced by the vintner, including its merlot and its Golberg Graševina white wine, have received international awards over the past years.
Agrokor Targets Exports
Leading diversified Croatian conglomerate Agrokor continues to expand its export business. To this end, in October 2010, the company opened a new storage and distribution centre in Macedonia. The EUR15mn facility has capacity for 60,000 tonnes of fruit and vegetables, which will mostly be used to supply the EU markets and the Russian Federation. The unit employs around 250 staff.
Key Risks To Outlook
Downside Risks to Economic Recovery
While BMI expects fiscal austerity to begin in earnest in 2012, the severity of the measures are as of yet unclear. Indeed, owing to a lack of details on the 2012 budget, BMI cannot fully assess the impact of cuts on government or consumer spending. That said, should growth slow more than BMI is expecting, it could see scope for government expenditures to rise. However, BMI notes that the extent of further governmental outlays would be limited due to the government’s aim to enter the EU by 2013. In the meantime, a more prolonged or deeper slowdown in eurozone growth would impact heavily on Croatia’s export growth.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
|
|
|
|
