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The North America Food and Beverage Sectors : A Company and Industry Analysis (April 2006)

  • ID: 656105
  • Report
  • April 2006
  • Region: America, North America, United States
  • 32 pages
  • Mergent
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This report looks at the food and beverage industry in the United States and Canada
Current Environment - Key Points
- In the second half of 2005, the US F&B sector sustained sales and profitability growth despite the heightened competition, a fall in the value of the US dollar and an increase in raw materials prices
- The Canadian F&B industry performed well over the last six months, thanks to high consumer spending and strong domestic and international demand for Canadian products
- Merger and acquisition activity in both the US and Canadian markets was brisk over the last six months, with several leading companies consolidating their market share
- A funds injection by private equity firms in the industry enabled F&B companies to finance their R&D and gain better access to science and technology to create innovative and value- added products
- Sector indices in the US and Canada did not perform well over the last six months, largely as a result of weak investor sentiment
- Several food companies plan to go public this year to raise cash to expand despite market volatility

Industry Profile - Key Points
- The value of US F&B exports and imports rose in 2005 as a result of growing consumer demand; this was driven by rising incomes, population growth and greater ethnic diversity
- The F&B industry is the second largest manufacturing industry in Canada, with total shipments reaching C$68.4 billion ($58.6 billion) in 2005 and a workforce of more than 238,000
- The North America Free Trade Agreement (NAFTA) has created a continent-wide economic market in which about 60% of Canada's F&B exports are sent to the US
- Several laws and regulations were introduced in the US and Canada in 2005 to enhance food safety and quality
Market Trends and Outlook - Key Points
- With growing concerns over health and obesity, whole grain and non-alcoholic beverages such as juices, energy drinks and bottled water are gaining in popularity in the US
- Canadian F&B companies are expanding into new markets to consolidate their market position and achieve higher business growth
- Since nutrition labeling is becoming compulsory, US and Canada food producers have been reformulating their products by replacing trans-fat with healthy substitutes and introducing new trans-fat-free foods
- The outlook for the North American F&B industry appears promising for the rest of 2006, with rising corporate profits, improved economic conditions and high business confidence - However, a possible outbreak of bird flu in the US some time this year could negatively affect poultry industry
- Factors such as currency and interest rate fluctuations, persistent high oil and energy prices and food scares will remain the major threats to the industry

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Current Environment - US
- Sector Overview
- Leading Companies
- Sector Performance
- Mergers and Acquisitions
- Initial Public Offerings
Current Environment - Canada
- Sector Overview
- Leading Companies
- Sector Performance
- Mergers and Acquisitions
Industry Profile - US
- Industry Size and Value
- Industry Segments
- Sector Investment
- Policy and Regulatory
Environment
Industry Profile - Canada
- Industry Size and Value
- Industry Segments
- Sector Investment
- Policy and Regulatory
Environment
Market Trends and Outlook -
US
- Soft Drinks Lose their Shine
- Food Industry's Infatuation with
Whole Grain
- Food Companies Cut Trans-Fat
Content
- Food Manufacturers Reaching
Out to Baby Boomers
- Market Outlook
Market Trends and Outlook -
Canada
- Brewers Introduce Even More
Innovative Packaging
- Canadian Health Consciousness
Grows
- Market Outlook
Currency Conversion Table
The Scope of this Report
Key References
Comparative Data
Regional Reports Coverage

Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown
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