2012-02-17 17:09:27 - New Food market report from Business Monitor International: "Qatar Food & Drink Report Q1 2012"

We continue to retain our bullish outlook for Qatar owing to its enviable hydrocarbon-based economy. We are pencilling in a 28.0% year-on-year (y-o-y) increase in hydrocarbon revenues through FY2011/12 and, while we acknowledge that oil and gas prices are likely to moderate, we nevertheless expect an expansion of production capacity to translate into continued growth in the value of the country's exports over the coming years. This surge in hydrocarbon income has been accompanied by an aggressive ramping up of current expenditure. In early September 2011, the government announced a 60% hike in the wages and social benefits it pays to public-sector employees, as well as an increase in state pensions for civilian and military retirees by the same proportion.

Qatar's biggest weakness continues to be the size of its population - an expected 1.9mn in 2011. Nevertheless, given that this population is high-spending, there are still opportunities for highmargin, ultra-luxury investors. Developing tastes and preferences, combined with high incomes, will continue to provide an ideal platform for food retailing growth. In addition, the country is expecting continued spending as it prepares to host the FIFA World Cup in 2022.


Full Report Details at
- www.fastmr.com/prod/329545_qatar_food_drink_report_q1_2012.aspx


Headline Industry Data

* 2011 food consumption growth = +11.2%; forecast to 2016 = +28.7%.
* 2011 soft drinks value sales = +14.3%; forecast to 2016 = +33.7%.
* 2011 mass grocery retail sales = +7.6%; forecast to 2016 = +31.4%.
* 2011 supermarket sales = +4.2%; forecast to 2016 = +15.7%.

Key Industry Trends And Developments

Coca-Cola Makes Major Investment: In December 2011 it was reported Coca-Cola has acquired a 50% stake in Saudi Arabian beverage manufacturer Aujan Industries. The deal is worth US$980mn and will allow Aujan to pursue its international expansion plans for brands including Barbican and Rani, as well as building upon the regional success of its Vimto brand. The deal is expected to be completed during H112, and will help Coca-Cola make headway in one of the few markets in which its rival PepsiCo leads. The deal represents the largest-ever investment by a multinational firm in the Middle's East's fast-moving consumer goods sector.

Casino Pens Franchise Deal: French retailer Casino in December 2011 signed a franchise arrangement with the domestic company Al Meera. Al Meera will open and operate three hypermarkets in Qatar under the Geant and Geant Easy brands, with the first store opening in Oman in the next 12-18 months. Al Meera is already a major player in the domestic market and currently operates 23 supermarkets in Qatar.

Risks To Outlook

Oil Price Stability: Despite the political upheaval throughout the region, the main threat for Qatar remains the fluctuations in global oil prices. Despite the government's efforts to diversify its economy away from the energy sector, non-hydrocarbon sector growth will still not be sufficient to sustain the economy should oil prices collapse. Another major risk comes from the social and political upheaval in the region. Should this turmoil be prolonged, it would likely pose downside risks to our growth outlook and could weigh on consumer spending.

Partial Table of Contents:

SWOT Analysis
- Qatar Food Industry SWOT
- Qatar Drink Industry SWOT
- Qatar Mass Grocery Retail Industry SWOT
Business Environment
- BMI's Core Global Industry Views
- Table: Agricultural Commodity Prices
- Table: Core Views Q112
- Middle East Food & Drink Risk/Reward Ratings
- Table: Saudi Arabia Food & Drink Risk/Reward Ratings - Q112
- Table: Middle East & North Africa Food & Drink Risk/Reward Ratings - Q112
- Qatar Food & Drink Risk/Reward Ratings
- Macroeconomic Outlook
- Table: Economic Activity
Industry Forecast Scenario
- Consumer Outlook
- Food
- Consumption
- Table: Food Consumption Indicators - Historical Data & Forecasts
- Drink
- Soft Drinks
- Table: Soft Drinks Value Sales - Historical Data & Forecasts
- Hot Drinks
- Mass Grocery Retail
- Table: Mass Grocery Retail Sales - Historical Data & Forecasts
- Table: Grocery Retail Sales By Format, 2010 And 2020
- Trade
- Table: Food & Drink Trade Indicators - Historical Data & Forecasts
Food
- Key Gulf Region Industry Trends
- Premiumisation Key To Growth
- Shift In Food Security Strategy
- Potential Cooperation With Belarus?
- Growing Popularity Of Eating Out And Snack Foods
- Diversification Into New Products And Frontier Markets
- Growing Investment Interest From Non-Regional MNCs
- Market Overview
- Food Production
- Halal Food
- Table: Muslim Populations In Selected Countries
Drink
- Key Gulf Region Industry Trends
- Coca-Cola Makes An Aggressive Investment
- Frontier Market Investment Strengthening
- Carbonate Prices Moving Up
- Diversifying Away From Carbonates
- Tang Proving Very Popular
- Market Overview
- Hot Drinks
- Soft Drinks
Mass Grocery Retail
- Key Gulf Region Industry Trends
- Geant Pursuing Region Wide Expansion
- Frontier Market Investment
- Consolidation
- Growing Investment Into Modern Convenience Retailing
- Multinational Presence Growing?
- Market Overview
- Table: Structure Of Qatar's Mass Grocery Retail Market - Sales Value By Format (US$bn)
Competitive Landscape
- Table: Key Players In Qatar's Food & Drink Sector
- Table: Key Players in Qatar's Mass Grocery Retail Sector

Full Table of Contents is available at:
-- www.fastmr.com/catalog/product.aspx?productid=329545&dt=t

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