Dallas, TX: ReportsandReports announce it will carry Croatia Food and Drink Report Q4 2010 Market Research Report in its Store.
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Report Summary
BMI Industry View
Our expectations for Croatia’s short-term outlook for its food and
drinks market is relatively guarded, given the challenging economic
environment, including the high unemployment rate and weakened consumer
confidence. While some recovery of annual growth levels are expected in
the medium-to-longer term, they will fall short of those recorded
pre-recession, with the Croatian consumer increasingly becoming fond of
private label items. From the mass grocery retail (MGR) perspective,
the Croatian market will fail to attract major foreign direct
investment (FDI) programmes, which will further serve to hamper the
development of the country’s food and beverages consumption values.
Headline Industry Data
2010 per capita food consumption = +0.6%; forecast to 2014 = +8.4%
2010 alcoholic drinks sales = +1.4%; forecast to 2014 = +12.3%
2010 soft drinks sales = +0.5%; forecast to 2014 = +7.3%
2010 mass grocery retail = +3.2%; forecast to 2014 = +23.7%
Key Company Trends
Consolidation in Food and Drink – The key company event in the past
month was the acquisition agreement struck between Croatian functional
food and drink producer and distributor, Atlantic Grupa and Slovenian
food company Droga Kolinska. The former, which is poised to acquire the
latter for EUR382mn (subject to regulatory approval), would create one
of the region's largest food and drink firms by annual sales. Although
tactical product synergies with Atlantic's core functional food and
drink
products are probably lacking, acquiring Droga would open up
routes to the hot drinks and snack food industries in particular.
Atlantic is also poised to pursue promising organic growth projects in
2010, with the Czech Republic and Slovakia likely to be targeted.
Key Risks to Outlook
Croatia’s Flagging Investment Potential – Having been placed 24th in
2009, according to A.T.Kearney’s recently published Global Retail
Development Index (GRDI) for 2010, Croatia has been pushed out of the
top 30 most attractive retail investment destinations for global
chains. Additionally, private labels were reported by market research
agency GfK to account for a growing share of the total market (or for
19.4% of the food market). If this trend persists – despite the
benefits provided by the eventual EU membership – our forecasts will be
adjusted accordingly, as the above factors will have a negative impact
on the value of consumer spending.
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