2014-01-05 02:04:46 - Fast Market Research recommends "Philippines Food & Drink Report 2014" from Business Monitor International, now available
While the Philippines' economy continues to expand at a healthy rate and despite its expanding base of young consumers, we believe that the country offers limited potential in its grocery and food and drink markets. Multinational investment has been slow to penetrate the market, which in itself continues to present numerous challenges to players in the sectors. Issues such as widespread poverty, highly uneven income distribution, under-developed mass grocery retail networks and high levels of unemployment will continue to weigh on the consumer outlook.
Headline Industry Data (local currency)
* 2014 per capita food consumption = +5.98%; compound annual growth rate (CAGR) forecast 2014 to 2017 = +4.54%
* 2014 alcoholic drinks value sales = +7.41%; CAGR growth forecast 2014 to
2017 = +4.99%
* 2014 soft drinks value sales = +7.76%; CAGR growth forecast 2014 to 2017 = +5.87%
* 2014 mass grocery retail sales = +6.94%; CAGR growth forecast 2014 to 2017 = +5.13%
LT Group Raises $912 Million in Philippines's Largest Equity Sale
Full Report Details at
- www.fastmr.com/prod/759121_philippines_food_drink_report_2014.as ..
Filipino billionaire Lucio Tan's LT Group Inc. raised PHP37.72 billion (US$912.2 million) in the country's largest ever equity sale, benefiting from a stock market that has boomed just weeks after the country received an investment-grade rating.
The conglomerate's private-placement sale, which was announced in 2012, followed other large share sales in the region in recent months. It attracted strong interest from beyond Asia, sole book runner and lead issue manager UBS AG said, demonstrating investors' appetite for Philippine assets. The offer was priced at the top end of an indicative range of PHP18 to PHP20.50 a share, and the company exercised an overallotment option to issue a total of 1.84bn shares, UBS said. The sale attracted 11 cornerstone investors and the order book totalled US$3.5bn. UBS said 23% of the funds came from Europe, 36% came from the US, and 41% came from Asia. It did not provide details on the cornerstone investors.
Coca-Cola FEMSA Continues Philippines Expansion
Coca-Cola FEMSA, the world's biggest bottler of Coca-Cola, is to invest PHP1.2bn (US$32.4mn) in the Philippines in order to boost its manufacturing capabilities within the country. The PHP1.2bn investment is the latest in Coca-Cola FEMSA's expansion drive into the Philippines, with the company acquiring a 51% stake in Coca-Cola Bottlers Philippines in January 2013 for US$688.5mn.
The company's latest investment includes the purchase of part of San Miguel Corp's production facility, which includes a bottling plant for non-alcoholic beverages, as well as a warehouse and additional realestate. Two years ago, Coca-Cola FEMSA completed the construction of a megaplant on the second largest Philippine island of Mindanao. This has since been expanded with the installation of a new bottling line, bringing the company's total number of lines in the region to three. Coca-Cola FEMSA is increasing its pace of expansion within the Philippines and is on track to build five new distribution centres across the country over the next two years.
Gokongwei unit set for record IPO
The Gokongwei group's retail unit Robinsons Retail Holdings Inc. has obtained the approval of the Securities and Exchange Commission (SEC) to raise as much as PHP42bn from what may be the largest initial public offering (IPO) seen by the local stock market. Robinsons Retail - the country's second largest multiformat retailer - may now offer as many as 484.75mn new primary shares at a maximum price of PHP86.64 a share. The offer consists of up to 461.9mn in base offer and 22.85mn for the overallotment option, according to SEC documents.
At its maximum IPO offer size and price, Robinsons Retail can make history at the local stock market. The largest IPOs (excluding follow-on offerings) completed in the country so far were those conducted by SM Investments Corp. (SMIC) and budget carrier operator Cebu Air Inc. SMIC raised PHP28.8bn in 2005, while Cebu Air saw PHP23.33bn in 2010. Resorts World Manila operator Travellers International Hotel Group Inc. earlier obtained approval from the Philippine Stock Exchange to pursue an IPO of about the same size of PHP42bn, but this has been put on hold in light of volatile global market conditions.
Alliance Acquires NZ Salmon Farmer
In December 2012, Alliance Select Foods International Inc. sealed the NZ$2.93 acquisition of an 80% of Akaroa Salmon NZ Ltd., a New Zealand-based salmon marine farmer and processor of fresh and smoked salmon. In a disclosure to the Philippine Stock Exchange, the firm said it has signed a share purchase agreement with Akaroa to buy the 80% stake for NZ$2.8 million. Alliance will also invest an additional NZ $0.13 million as working capital in Akaroa.
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