Top 10 Food and Drinks Companies

Emerging Opportunities, Growth Strategies and Innovation in The Leading Players

Publication Date	February 2009
Publisher	Business Insights
Product Type	Report
Pages	311
ISBN Number	not applicable
Product Code	RBI00128

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Summary

The Top 10 Food and Drinks Companies
Emerging opportunities, growth strategies and innovation in the leading players

Report Overview

The global food and drinks market was worth $3,498bn in 2007, up 3.1% over 2006. The global food and drinks market is anticipated to grow at a CAGR of 3.2% during 2007-10 to reach $3,843bn in 2010. Increasing demand for healthy products coupled with rising disposable incomes in emerging economies is fueling demand for food and drink products. However, the rising price of raw materials such as animal feed, energy, and other commodities such as aluminium used in packaging, will increase the operating costs of players.

'The Top 10 Food and Drinks Companies: Emerging opportunities, growth strategies and innovation in the leading players' is a new report published by Business Insights that analyzes the innovation and growth strategies of the top 10 players in the food and drinks industry. This report identifies the product areas that the top 10 players are seeking to develop. It also examines the comparative strengths, weaknesses, opportunities and threats facing the world's leading food and drinks companies.

Key Findings...

Rising consumption of food and drinks in emerging countries, elevated fuel prices, and climate change have contributed to the rise in raw material prices, which will adversely impact the operating margins of food and drinks companies.

The food and drinks industry is highly fragmented - the top 10 companies account for 12.9% of the global market share, based on 2007 sales.

Consolidation in the food and drinks industry will change its competitive landscape as JBS expected to appear in the top 10 players list in the industry.

Nestl is the global leader with 2.6% market share in 2007, followed by Cargill with 2.5%.

Use this report to...

Gain insight into the world's leading food and drinks companies with this report's ranking of the top 10 companies, detailing their financial performance and future prospects.
Identify and target future growth areas from this report's analysis of acquisitions and divestments made by leading food and drinks companies and their strategies for growth.
Understand the key trends in the food and drinks market and the impact that they are expected to have on the top 10 players.
Enhance your product development strategies by examing the leading food and drinks companies' innovation and NPD strategies and recent product launches.
Create more effective competitive strategies based on this report's SWOT analyses of the top food and drinks companies.

Key issues...

Food safety. Rising concerns over the safety of Chinese food products has led its government to draft a five year food safety plan to place new controls on food and drug imports and exports.

Price fixing. Rising raw-material prices and emergence of huge agricultural conglomerates have pushed players to collude and form cartels to co-ordinate pricing for mutual benefit at the expense of buyers.

Growth in Asia Pacific markets. A rising middle class population and an improving macroeconomic environment in the Asian economies of India and China has increased consumption of food and drinks in these countries.

Rising raw material costs. Prices of raw materials such as barley, sorghum, oats, maize (coarse grains) and wheat have been rising sharply due to extensive use of these products in biofuel production, elevated fuel prices and climate change. This has had a negative impact on the operating margins of the food and drinks companies.

Your questions answered...

What are the drivers and resistors of growth of food and drinks industry?
Which regions offer the leading food and drinks companies the greatest growth opportunities?
What are the key trends in the global food and drinks industry?
Who are the top 20 players in the food and drinks industry?
What is the market share of each of the global food and drinks leaders by company?
How do the leading food and drinks companies compare in terms of financial performance and coverage by country and category?
What are the key strategies of the leading food and drinks companies and how do these strategies drive revenue and market share?

Content

The Top 10 Food and Drinks Companies
Executive Summary
- Industry overview
- Nestl
- Cargill
- Unilever
- PepsiCo
- Kraft Foods
- InBev
- Mars
- Coca-Cola
- Tyson
- SABMiller
Chapter 1 Introduction
- What is this report about?
- Methodology
Chapter 2 Industry overview
- Summary
- Introduction
- Market overview
- Market size and growth
- Positioning and performance of top 10 companies
- Consolidation in the food and drinks industry
- Trends
- Rising prices of raw materials
- Shift to healthy food
- Functional food and drinks
- Organic foods
- Expansion into Asian markets
- India
- China
Chapter 3 Nestl
- Summary
- Company overview
- Recent financial performance
- Performance by business segments
- Growth strategies
- Aligning product portfolio towards healthier nutrition
- Growth in emerging markets
- Acquisitions and divestments
- Innovation and NPD
- SWOT analysis
- Strengths
- Global leader in infant nutrition
- Strong R&D platform
- Strong brand portfolio
- Weaknesses
- Product recall
- Complex supply chain in India
- Opportunities
- Extending foodservice to out of home customers
- Growing bottled water market in Turkey
- Expansion in Russia
- Premiumization
- Threats
- Rising milk prices
- Growing consumption of private label products
Chapter 4 Cargill
- Summary
- Company overview
- Recent financial performance
- Growth strategies
- Focus on Asian markets
- Focus on innovation
- Acquisitions and divestments
- Innovation and NPD
- SWOT analysis
- Strengths
- Strong brand offerings in meat food category
- Backward integration
- Weaknesses
- Weak performance in beef business
- Operating as a private company
- Opportunities
- New product launches in the functional food category
- Investment in innovation
- Joint venture with Coca-Cola
- Threats
- Rising commodity prices
Chapter 5 Unilever
- Summary
- Company overview
- Recent financial performance
- Performance by business segments
- Growth strategies
- Attaining operational efficiency through restructuring
- Focusing resources on high growth areas
- Acquisitions and divestments
- Innovation and NPD
- SWOT analysis
- Strengths
- Strong portfolio of brands
- Strong R&D platform
- Global scale and reach
- Weaknesses
- Declining cash from operations
- Opportunities
- Growth in developed and emerging markets
- Extending partnership with PepsiCo
- Agreement with Starbucks
- Threats
- Rising commodity prices
- Competition from private label
Chapter 6 PepsiCo
- Summary
- Company overview
- Recent financial performance
- Performance by business segments
- Growth strategies
- Transforming its beverage portfolio
- Growth through partnerships
- Acquisitions and divestments
- Innovation and NPD
- SWOT analysis
- Strengths
- Strong brand portfolio
- Larger product range
- Strong liquidity position
- Weaknesses
- Dependence on North American operations
- Rising debt burden
- Opportunities
- Focus on healthy offerings
- Expanding presence in emerging markets
- Threats
- Intense competition
- Decline in demand for carbonated drinks in the US market
Chapter 7 Kraft Foods
- Summary
- Company overview
- Recent financial performance
- Performance by business segments
- Growth strategies
- Restructuring program
- Reframing food product categories
- Aligning product portfolio to consumer trends across markets
- Shift to direct sales model in developed markets
- Re-engineer cost structure
- Acquisitions and divestments
- Innovation and NPD
- SWOT analysis
- Strengths
- Strong brand portfolio
- Significant international presence
- Weaknesses
- Declining profitability
- Rising debt obligations
- Opportunities
- Agreement with Probi
- Investment in coffee business
- Acquisition of Groupe Danone
- Threats
- Private Label
- Legal proceedings
Chapter 8 InBev
- Summary
- Company overview
- Recent financial performance
- Performance by business segments
- Growth strategies
- Attain operational efficiency through cost management
- Investing in capabilities development
- Acquisitions and divestments
- Innovation and NPD
- SWOT analysis
- Strengths
- Strong brand portfolio
- Geographically diversified operations
- Improved financial performance
- Weaknesses
- Weak performance in Western Europe
- Opportunities
- Expansion in emerging markets
- Acquisition of Anheuser-Busch
- Threats
- Rising raw material costs
- Competition from wine
Chapter 9 Mars
- Summary
- Company overview
- Recent financial performance
- Performance by business segments
- Growth strategies
- Focus on Eastern Europe emerging markets
- Acquisitions and divestments
- Innovation and NPD
- SWOT analysis
- Strengths
- Strong presence in the confectionery industry
- Larger product portfolio than competitors
- Weaknesses
- Negative publicity
- Opportunities
- Shift towards healthy and nutritious snack food in Europe
- Wrigley's acquisition boosting presence in China
- Investment in Uncle Ben's plant
- Threats
- Growth of private label confectionery brands in the US
Chapter 10 Coca-Cola
- Summary
- Company overview
- Recent financial performance
- Performance by business segments
- Growth strategies
- Gaining leadership in sparkling beverages
- Expanding still beverages portfolio
- Focus on innovation
- Acquisitions and divestments
- Innovation and NPD
- Innovation in packaging:
- Innovation in formulation:
- SWOT analysis
- Strengths
- Strong growth in unit case volume
- Large scale of operations
- Weaknesses
- Declining performance in North America
- Less diversified product portfolio
- Opportunities
- Extending geographic presence of products
- Expansion in Chinese beverage market
- Threats
- Dependence on bottling partners
Chapter 11 Tyson
- Summary
- Company overview
- Recent financial performance
- Performance by business segments
- Growth strategies
- Focus on creating innovative and value-added products
- Maximize margins through operational efficiency
- Build multinational enterprise
- Acquisitions and divestments
- Innovation and NPD
- SWOT analysis
- Strengths
- Significant market share in the US
- Strong R&D platform
- Weaknesses
- Legal proceedings
- Weak international presence
- Opportunities
- Commercializing poultry litter and animal by-products
- Expanding poultry operations in international markets
- Threats
- Rising costs of feed grains
- Slowdown in the US poultry industry
Chapter 12 SABMiller
- Summary
- Company overview
- Recent financial performance
- Performance by business segments
- Growth strategies
- Developing strong, relevant brand portfolios in the local market
- Attaining operational efficiency
- Acquisitions and divestments
- Innovation and NPD
- SWOT analysis
- Strengths
- Significant market share across geographies
- Depth in product portfolio
- Weaknesses
- Declining performance in South Africa
- Weaker presence in markets outside North America
- Opportunities
- Expansion in emerging markets
- Joint venture with Molson Coors Brewing
- Threats
- Consolidation in the beer industry
Chapter 13 1120 companies
- Groupe Danone
- Company overview
- Recent financial performance
- Innovation and NPD
- Heineken
- Company overview
- Recent financial performance
- Innovation and NPD
- JBS
- Company overview
- Recent financial performance
- Innovation and NPD
- Kirin Brewery
- Company overview
- Recent financial performance
- Innovation and NPD
- Diageo
- Company overview
- Recent financial performance
- Innovation and NPD
- Associated British Foods (ABF)
- Company overview
- Recent financial performance
- Innovation and NPD
- Groupe Lactalis
- Company overview
- Recent financial performance
- Innovation and NPD
- Asahi Breweries
- Company overview
- Recent financial performance
- Innovation and NPD
- General Mills
- Company overview
- Recent financial performance
- Innovation and NPD
- Sara Lee
- Company overview
- Recent financial performance
- Innovation and NPD
Chapter 14 Appendix
- Glossary
- Index
List of Figures
- Figure 2.1: Global food and drinks market size ($bn), 2006-10
- Figure 2.2: Top 10 food and drinks companies market share, 2007
- Figure 2.3: Top 10 food and drinks companies growth, 2007
- Figure 3.4: Nestl financial performance ($m), 200307
- Figure 3.5: Nestl's recent product launches, by category, 200508
- Figure 3.6: Nestl's innovative product launches, 2008
- Figure 3.7: Nestl SWOT analysis
- Figure 4.8: Cargill financial performance ($m), 2004-08
- Figure 4.9: Cargill's recent product launches, by category, 200508
- Figure 4.10: Simply Done Ready-to-Cook Turkey
- Figure 4.11: Cargill SWOT analysis
- Figure 5.12: Unilever financial performance ($m), 200407
- Figure 5.13 Unilever's recent product launches, by category, 200508
- Figure 5.14 Unilever's innovative product launches, 2008
- Figure 5.15: Unilever SWOT analysis
- Figure 6.16: PepsiCo financial performance ($m), 200307
- Figure 6.17: PepsiCo's recent product launches, by category, 200508
- Figure 6.18: PepsiCo's innovative product launches, 2008
- Figure 6.19: PepsiCo SWOT analysis
- Figure 7.20: Kraft Foods financial performance ($m), 200307
- Figure 7.21: Kraft Foods' recent product launches, by category, 2005-08
- Figure 7.22: Kraft Foods' innovative product launches, 2008
- Figure 7.23: Kraft Foods SWOT analysis
- Figure 8.24: InBev financial performance ($m), 200307
- Figure 8.25: InBev's innovative product launches, 2008
- Figure 8.26: InBev SWOT analysis
- Figure 9.27: Mars's recent product launches, by category, 200508
- Figure 9.28: Mars's innovative product launches, 2008
- Figure 9.29: Mars SWOT analysis
- Figure 10.30: Coca-Cola financial performance ($m), 200307
- Figure 10.31: Coca-Cola's recent product launches, by category, 200508
- Figure 10.32: Coca-Cola's innovative product launches, 2008
- Figure 10.33: Coca-Cola SWOT analysis
- Figure 11.34: Tyson financial performance ($m), 200307
- Figure 11.35: Tyson's recent product launches, by category, 200508
- Figure 11.36: Tyson's innovative product launches, 2008
- Figure 11.37: Tyson SWOT analysis
- Figure 12.38: SABMiller financial performance ($m), 200408
- Figure 12.39: SABMiller's innovative product launches, 2007
- Figure 12.40: SABMiller SWOT analysis
- Figure 13.41: Groupe Danone financial performance ($m), 200307
- Figure 13.42: Groupe Danone's innovative product launches, 2008
- Figure 13.43: Heineken financial performance ($m), 200407
- Figure 13.44: Heineken's innovative product launches, 2008
- Figure 13.45: Kirin Brewery financial performance ($m), 200307
- Figure 13.46: Kirin Brewery's innovative product launches, 2008
- Figure 13.47: Diageo financial performance ($m), 200508
- Figure 13.48: Diageo's innovative product launches, 2008
- Figure 13.49: ABF financial performance ($m), 200307
- Figure 13.50: Asahi financial performance ($m), 200307
- Figure 13.51: Asahi's innovative product launches, 2008
- Figure 13.52: General Mills financial performance ($m), 200408
- Figure 13.53: General Mills' innovative product launches, 2008
- Figure 13.54: Sara Lee financial performance ($m), 200408
- Figure 13.55: Sara Lee innovative product launches, 2008
- Table 2.1: Global food and drinks market size ($bn), 2006-10
- Table 2.2: Top 10 food and drinks companies turnover ($m), 200307
- Table 2.3: Major M&A deals 200708
- Table 3.4: Nestl snapshot
- Table 3.5: Nestl financial performance ($m), 200307
- Table 3.6: Nestl business segment performance ($m), 2007
- Table 3.7: Nestl's key brands
- Table 4.8: Cargill snapshot
- Table 4.9: Cargill financial performance ($m), 200408
- Table 4.10: Cargill's key brands
- Table 5.11: Unilever snapshot
- Table 5.12: Unilever financial performance ($m), 200407
- Table 5.13: Unilever business segment performance ($m), 2007
- Table 5.14: Unilever's key brands
- Table 6.15: PepsiCo snapshot
- Table 6.16: PepsiCo financial performance ($m), 200307
- Table 6.17: PepsiCo business segment performance ($m), 2007
- Table 6.18: PepsiCo's key brands
- Table 7.19: Kraft Foods snapshot
- Table 7.20: Kraft Foods financial performance ($m), 200307
- Table 7.21: Kraft Foods business segment performance ($m), 2007
- Table 7.22: Kraft Foods' key brands
- Table 8.23: InBev snapshot
- Table 8.24: InBev financial performance ($m), 200307
- Table 8.25: InBev business segment performance ($m), 2007
- Table 8.26: InBev's key brands
- Table 9.27: Mars snapshot
- Table 9.28: Mars business segment performance ($m), 2007
- Table 9.29: Mars's key brands
- Table 10.30: Coca-Cola snapshot
- Table 10.31: Coca-Cola financial performance ($m), 200307
- Table 10.32: Coca-Cola business segment performance ($m), 2007
- Table 10.33: Coca-Cola's key brands
- Table 11.34: Tyson snapshot
- Table 11.35: Tyson financial performance ($m), 200307
- Table 11.36: Tyson business segment performance ($m), 2007
- Table 11.37: Tyson's key brands
- Table 12.38: SABMiller snapshot
- Table 12.39: SABMiller financial performance ($m), 200408
- Table 12.40: SABMiller business segment performance ($m), 2008
- Table 12.41: SABMiller's key brands
- Table 13.42: Groupe Danone snapshot
- Table 13.43: Groupe Danone financial performance ($m), 200307
- Table 13.44: Heineken snapshot
- Table 13.45: Heineken financial performance ($m), 200407
- Table 13.46: JBS snapshot
- Table 13.47: JBS financial performance ($m), 200607
- Table 13.48: Kirin Brewery snapshot
- Table 13.49: Kirin Brewery financial performance ($m), 200307
- Table 13.50: Diageo snapshot
- Table 13.51: Diageo financial performance ($m), 200508
- Table 13.52: ABF snapshot
- Table 13.53: ABF financial performance ($m), 200307
- Table 13.54: Groupe Lactalis snapshot
- Table 13.55: Asahi snapshot
- Table 13.56: Asahi financial performance ($m), 200307
- Table 13.57: General Mills snapshot
- Table 13.58: General Mills financial performance ($m), 200408
- Table 13.59: Sara Lee snapshot
- Table 13.60: Sara Lee financial performance ($m), 200408