(MENAFNEditorial)
We believe Spain's government will relax austerity as the 2015 parliamentary elections approach (see 'Reform Momentum On Hold Until March 27) damaging perceptions of sovereign credit risk. This view appears to playing out with the government recently agreeing to cut income taxes by an average of 12.5% by 2016 and corporate taxes from 30% to 25%. This could help relieve constrains over households' purse strings but our view remains that deleveraging still has some way to run meaning that consumer spending (and demand-pull price pressures) is likely to remain subdued for some time to come. This means more sluggish growth for the food and drink sector while the lower end of the sector will continue to outperform the rest. In line with this we believe that Dia is one of a select few Western Europe-based food retailers with good near-term growth prospects in the region.
Full Report Details at
- http://www.fastmr.com/prod/888052_spain_food_drink_report_q4_2014.aspx?afid=101
Headline Industry Data (local currency)
* 2014 per capita food consumption = +1.9%; forecast compound annual growth rate (CAGR) to 2018 = +2.0%.
* 2014 alcoholic drink value sales = +0.8%; forecast CAGR to 2018 = +1.5%.
* 2014 soft drink value sales = +0%; forecast CAGR to 2018 = +1.9%.
* 2014 mass grocery retail sales = +1.8%; forecast CAGR to 2018 = +2.5%.
Key Company Trends & Developments
Strong Export Potential For Deoleo Under Private Equity Backing: We believe the final offer made by British private equity fund CVC Capital Partners for Spanish olive oil producer Deoleo reflects the private equity industry's renewed interest in acquiring cheap food assets with strong potential. Deoleo encountered problems in 2009 after years of debt-fuelled acquisitions. Pressured by creditors the food company eventually sold its cookie and rice businesses to pay down some of its debt and refocused on olive oil. It also cut its workforce and has taken other steps to improve profit margins such as selling less oil in bulk and increasing sales of higher-margin branded bottles....
The Spain Food & Drink Report features Business Monitor International (BMI)'s market assessment and independent forecasts for food and drink expenditure consumption sales and imports/exports and forecasts for the mass grocery retail sector. The report also includes analyses of major regulatory developments the background macroeconomic outlook and competitive landscape comparing national and multinational companies by leading products and services sales investments partners and expansion strategies.
BMI's Spain Food & Drink Report provides industry professionals and strategists sector analysts business investors trade associations and regulatory bodies with independent forecasts and competitive intelligence on the food and drink industry and the mass grocery retail market in Spain.
Key Benefits
* Benchmark BMI's independent food and drink industry forecasts for Spain to test other views - a key input for successful budgeting and strategic business planning in the Spanish food and drink market.
* Target business opportunities and risks in Spain through our reviews of latest industry trends regulatory changes and major deals projects and investments.
* Exploit latest competitive intelligence on your competitors partners and clients via our Company Profiles (inc. SWOTs KPIs and latest activity) and Competitive Landscape Tables.
Coverage
BMI Industry View
Summary of BMI's key industry forecasts and views covering food and drink manufacturing and consumption and the retail market.
Business Environment Rankings
BMI's Food & Drink Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors food and drink manufacturers and mass grocery retailers.
The rankings methodology makes sophisticated use of over 40 industry economic and demographic data points.
Industry SWOT Analysis
Analysis of the major Strengths Weaknesses Opportunities and Threats within the food drink and mass grocery retail sectors and within the broader political economic and business environment.
Food Forecasts
BMI's food chapter is divided into sections such as Meat Fish Confectionary Dairy and Canned Foods and provides insight into a market's food industry centred on a forecast to end-2018 for the sector. The chapter includes the following elements:
Industry Forecast Scenario - Historical data series and forecasts to end-2018 for growth of key indicators within a market's food industry. Including consumption food consumption as % of GDP canned food sales confectionery sales and food and drink imports and exports among others.
Industry Developments - A summary of corporate developments including news on M&As FDI expansions closures and financial results in addition to analysis and explanation of the latest industry events and how these could influence further investment.
Market Overview - An overview of the structure of the market introducing the key players and discussing underlying trends.
Drink Forecasts
Segmented the same way as BMI's food chapter the drink section provides insight into the market's drink industry centred on a forecast to end-2018 for the sector. Forecast indicators include alcoholic and soft drink sales by value volume and sub-sector and tea and coffee sales among others.
Mass Grocery Retail Forecasts
Segmented the same way as BMI's food and drink chapters the mass grocery retail section provides insight into a market's grocery retail industry centred on a forecast to end-201 for the sector. Forecast indicators include mass grocery retail sales by format (including supermarkets hypermarkets convenience and discount stores) and a breakdown for the organised retail sector versus the traditional sector among others.
Competitive Landscape & Profiles
Illustration of the industry via rankings tables comparing revenues number of outlets and number of employees. BMI analyses each company's market position business strategies and investment potential.
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