2013-02-22 13:41:03 - New Food market report from Business Monitor International: "Bahrain Food & Drink Report Q2 2013"

BMI View: Our outlook on Bahrain's consumer sector remains broadly positive, as consumer confidence has been slowly regaining momentum over recent quarters. We expect household spending in Bahrain to hold up well into 2013, following an estimated expansion of 8.0% year-on-year in 2012. The 15% wage increase for all civil servants in 2011 certainly helped in this regard, as has the ongoing rise in total employment in the private sector. Looking at broader economic growth, the Bahraini economy is only slowly regaining its footing, and we are projecting real GDP growth of 3.2% in 2013, compared with an estimated 3.0% in 2012. Elevated government consumption could prove key to supporting activity throughout the non-hydrocarbon economy, as we expect fixed investment

to remain relatively anaemic due to the political crisis.

Headline Industry Data (local currency)


Full Report Details at
- www.fastmr.com/prod/536397_bahrain_food_drink_report_q2_2013.asp ..


* ¦ 2013 food consumption growth = +6.6%; compound annual growth rate (CAGR) to 2017 = +7.9%
* 2013 soft drink value sales growth = +5.7%; CAGR to 2017 = +6.8%
* 2013 mass grocery retail sales = +8.2%; CAGR to 2017 = +9.3%

Key Company Trends

Klassno Coffee Enters Bahraini Market: In January 2013, the Gulf Daily News reported that Singapore coffee company Klassno has entered Bahrain for the first time by signing a distribution deal with local food and drink firm Babasons. The move gives Klassno a presence in a potentially lucrative new territory, as its products are now sold in 110 stores across Bahrain at a time when it is seeking to pursue overseas ambitions.

Dairy Company Vivartia Enters Joint Venture: In late 2012, Greece-based dairy group Vivartia announced that it will enter a joint venture (JV) with UAE-based Exeed Industries to expand its presence in the Middle East and North Africa (MENA) region. The new JV will establish a EUR70mn (US$90.0mn) production base in Abu Dhabi, which is set to start in early 2013. Through the JV, the companies aim to establish a business in the UAE with sales of more than EUR165mn (US$212.2mn) per year. Under the deal, Exeed will take over all of Vivartia's brands, including Delta, Barba Stathis and Chrysi Zymi, as well as its foodservice brands, such as Goody's and Everest. Competition within the dairy industry is rife across the Gulf region, with a number of large companies in the market.

Key Risks To Outlook

Oil Prices Could Pose Risk: A marked drop in oil prices concomitant with a slowdown in growth in Europe, the US and China would pose a significant risk to the country's near-term growth outlook, and likely lead to a marked deterioration to the country's balance of payments and fiscal dynamics. In terms of the latter, Bahrain's break-even oil price is now between US$115/bbl and US$120/bbl, which is by far the highest in the Gulf. Meanwhile, a more pronounced regional crisis stemming from an uptick in tensions between Iran and the West could see risk premiums spike higher, particularly for Bahrain.

Report Table of Contents:

BMI Industry View
- Bahrain Q2 2013
SWOT
- Food
- Drink
- Mass Grocery Retail
Industry Forecast
- Food
- Consumer Outlook
- Food Consumption
- Table: Food Consumption Indicators, 2010-2017
- Drink
- Soft Drinks
- Table: Soft Drinks Value Sales - Historical Data & Forecasts, 2010-2017
- Mass Grocery Retail
- Table: Mass Grocery Retail Sales By Format - Historical Data & Forecasts, 2010-2017
- Trade
- Table: Trade Indicators - Historical Data & Forecasts, 2010-2017
Macroeconomic Forecasts
- Economic Analysis
- Table: Bahrain - Economic Activity
Industry Risk Reward Ratings
- Bahrain
- Middle East and North Africa
- Table: Middle East & North Africa Food & Drink Risk/Reward Ratings Q213
- Table: Middle East & North Africa Food & Drink Risk/Reward Ratings Sub-components Q213 (out of 10)
Market Overview
- Food
- Agriculture
- Key Food Processors
- Halal Food
- Drink
- Soft Drinks
- Alcoholic Drinks
- Hot Drinks
- Mass Grocery Retail
Industry Trends And Developments
- Food
- Drink
- Mass Grocery Retail
Competitive Landscape
- Food & Drink
- Table: Key Players In Bahrain's Food & Drink Sector
- Mass Grocery Retail
- Table: Key Players In Bahrain's Mass Grocery Retail Sector
Company Profile
- Bahrain Flour Mills Company
- TRAFCO
- Kraft Foods MEA
- Delmon Poultry Company
- Nestle Middle East
- Awal Dairy Company
- EMKE Group
- Fu-Com International/Geant
- Carrefour MAF
Global Industry Overview
- Table: Core Views
Demographic Forecast
- Demographic Outlook
- Table: Bahrain's Population By Age Group, 1990-2020 ('000)
- Table: Bahrain's Population By Age Group, 1990-2020 (% of total)
- Table: Bahrain's Key Population Ratios, 1990-2020
- Table: Bahrain's Rural And Urban Population, 1990-2020
Glossary
- Food & Drink
- Mass Grocery Retail
Methodology
- Risk/Reward Ratings Methodology
- Table: Rewards
- Table: Risks
- Table: Weighting

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