"Spain Food & Drink Report Q2 2011" is now available at Fast Market Research

March 21, 2011 - PRLog -- In recent months there have been some signs of improvement within the grocery sector, with food retail sales growth back in positive territory during the latter half of 2010.However, Spain's very high level of unemployment and further fiscal austerity is likely to dampen any recovery, and BMI is relatively pessimistic about the country's economic prospects for the short term. A weak domestic demand outlook and the necessary rebalancing of the economy also shapes our view on Spain's economy over the medium term, with growth expected to be constrained in the five years to 2015. A number of factors are expected to weigh on demand over this period, including broad fiscal expenditure cuts, which include a 5% decline in public sector wages, private sector deleveraging, a deflating real estate bubble and a lack of competitiveness relative to other eurozone countries.

Headline Industry Data

* 2011 per capita food consumption = -0.05%; forecast to 2015 = +11.9%
 * 2011 alcoholic drink sales = +0.3%; forecast to 2015 = 2.1%
 * 2011 soft drink sales = +2.3% ; forecast to 2015 = +16.6%
 * 2011 mass grocery retail sales = +2.3%; forecast to 2015 = +16.5%


Key Company Trends & Developments

Ebro Share Price Affirms Strategy; SOS Investors Not Yet Convinced By Restructuring - In November 2010, Spain's largest food group, Ebro Puleva announced it is to buy the rice division of fellow Spanish firm SOS Corporacion Alimentaria for EUR195mn (US$161mn). The deal has long been anticipated, with SOS looking to pay down its significant debts and Ebro keen to expand its fast-growing rice unit. The sale will leave SOS in a stronger financial position but has done little to ignite the appetite of investors, with the firm's share price continuing to trend lower. In contrast Ebro's recent spate of acquisitions and divestitures has been well received, with its share price in a steady upward trend over the last two years.

Mercadona's Low Priced Business Model Likely To Have International Appeal - In November 2010, Spain's largest supermarket operator Mercadona revealed that it is planning to expand internationally from 2012 via acquisitions. The firm has said it will look at the opportunities available in Portugal, France and Italy, and local reports suggest it would look to buy small chains operating between 25 and 30 stores. The firm's defensive positioning has seen it continue to expand throughout the downturn and this ambitious plan for international growth suggests it is confident that its low-priced business model would cater well to consumers throughout Western Europe.

Key Risk to Outlook

Eurozone debt crisis - the risks to our outlook are currently weighted to the downside. An important risk to our forecasts is the prospect of further instability in the eurozone as a result of the unsustainable debt levels built up by some member countries - including Spain.

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Partial Table of Contents:

SWOT Analysis
- Spain Food Industry SWOT
- Spain Drink Industry SWOT
- Spain Mass Grocery Retail Industry SWOT
Business Environment Ratings
- BMI's Core Global Industry Views
- BMI Food & Drink Core Views
- Western Europe Food & Drink Business Environment Ratings
- Table: Western Europe Food & Drink Risk/Reward Ratings Q2 2011
- Spain's Food & Drink Risk/Reward Ratings
- Macroeconomic Outlook
- Table: Spain - Economic Activity
Industry Forecast Scenario
- Consumer Outlook
- Food
- Total Food Consumption
- Table: Spain Food Consumption Indicators - Historical Data & Forecasts
- Canned Food/Prepared Food
- Table: Canned Food Value/Volume Sales - Historical Data & Forecasts
- Confectionery
- Table: Confectionery Value/Volume Sales - Historical Data & Forecasts
- Drink
- Hot Drinks
- Table: Coffee Value Sales - Historical Data & Forecasts
- Soft Drinks
- Alcoholic Drinks
- Mass Grocery Retail
- Table: Grocery Retail Sales By Format - Historical Data And Forecasts
- Trade
Food
- Key Industry Trends & Developments
- Ebro Share Price Affirms Strategy; SOS Investors Not Yet Convinced By Restructuring
- Private-Labels Gaining Market Share
- Market Overview
- Prepared Food
- Organic
- Meat and Fish
- Eggs and Dairy
Drink
- Key Industry Trends & Developments
- Spirits Hit By New Taxes
- Wine Exports Exposed To Currency Fluctuations
- Energy Drinks Launching
- Market Overview
- Soft Drinks
- Alcoholic Drinks
Mass Grocery Retail
- Key Industry Trends & Developments
- Bearish Spanish Outlook Means Eroski May Need To Sell More Assets
- Mercadona's Low-Priced Business Model Likely To Have International Appeal
- Retailers Adapting Their Offering
- Retailers Continue To Invest
- Market Overview
- Table: Structure Of Spain's Mass Grocery Retail Market By Estimated Number of Outlets
- Table: Structure Of Spain's Mass Grocery Retail Market By Value (US$mn)
- Table: Structure Of Spain's Mass Grocery Retail Market By Value (EURmn)
- Table: Annual Average Sales Per Outlet By Format - 2009
- Table: Grocery Retail Sales by Format - Historical Data And Forecasts
Competitive Landscape
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Full Table of Contents is available at:
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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.