India Food and Drink Report Q3
2011

India Food and Drink Report Q3 2011

The lagged impact of the central bank's aggressive monetary tightening is expected to take the steam out of domestic demand over the coming quarters. Looking ahead, we maintain our view that the Indian consumer-facing sectors provide very exciting opportunities for consumer goods manufacturers, thanks to the country's favourable demographics, rising disposable incomes and strong macroeconomic fundamentals. As such, big multinationals such as Carrefour, Wal-Mart, The Coca-Cola Company and Starbucks are likely to continue inching their way into the Indian consumer-facing sectors to take advantage of the sectors' enormous growth potential.

Headline Industry Data

• 2011 Food Consumption Growth = +5.9%; Compound Annual Average Growth to 2015= +7.2%
• 2011 Alcoholic Drink Value Sales Growth = +11.6%; Compound Annual Average Growth to 2015= +12.4%
• 2011 Soft Drink Value Sales Growth = +11.9%; Compound Annual Average Growth to 2015= +9.6%
• 2011 Mass Grocery Retail Sales= +19.7%; Compound Annual Average Growth to 2015= +17.6%

Key Company Trends

Indians Craving For More Confectionery - A month after US coffee giant Starbucks made its Indian debut, Dunkin' Donuts announced that it will be bringing its sugary treats to India as it looks to capitalise on the country's increasing out-of-home food consumption and rising affluence. Dunkin' is setting up its stores in the country through a franchise with Jubilant Foodworks (JFL) and is aiming to set up 25 to 30 stores within the first three years of its partnership with JFL. Meanwhile, Kraft Foods is reaping the fruits of its Cadbury acquisition. Cadbury India recorded revenue growth of 27% for the year ending December 2010, underlining growing confectionery demand among Indians.

Huge Scope For Premium Growth In Alcohol - SABMiller India has witnessed a drop in its domestic market share from 35% to around 20% within a span of three years. Rather than bruising a market share battle through price competition, SABMiller India is looking to build a strong foothold in the more profitable Indian states of Maharashtra, Karnataka, Haryana and Rajasthan. SABMiller's motive can be linked to the long-term outlook for the country's beer sector. By entrenching its premium brands among Indian consumers and targeting the higher-end markets, the brewer could see little headwind when building up its market share as consumer affluence increases.

• BMI Industry View
• SWOT Analysis
• India Food Industry SWOT
• India Drink Industry SWOT
• India Mass Grocery Retail Industry SWOT
• Business Environment
• BMI's Core Global Industry Views
  • Table: BMI Food & Drink Core Views
• Asia Pacific Risk/Reward Ratings
  • Table: Asia Pacific Food & Drink Risk/Reward Ratings -Q3 2011
• India's Food And Drink Business Environment Rating
• Macroeconomic Outlook
• India - Economic Activity
• Industry Forecast Scenario
• Consumer Outlook
• Food
• Food Consumption
  • Table: Food Consumption Indicators - Historical Data & Forecasts
• Confectionery
  • Table: Confectionery Value/Volume Sales - Historical Data & Forecasts
• Processed Food
  • Table: Processed Food Industry Indicators - Historical Data & Forecasts
• Trade
  • Table: India Food & Drink Trade Indicators - Historical Data & Forecasts
• Drink
• Hot Drinks
  • Table: India Beverage Sub-Sectors - Value/Volume Sales Historical & Forecasts
• Alcoholic Drinks
  • Table: India Beverage Sub-Sectors - Value/Volume Sales Historical & Forecasts
• Soft Drinks
  • Table: India Beverage Sub-Sectors - Value/Volume Sales Historical & Forecasts
• Mass Grocery Retail
  • Table: India MGR Sales by Format - Historical Data & Forecasts
  • Table: Grocery Retail Sales by Format (%) - Historical Data & Forecasts
• Food
• Key Industry Trends and Developments
• Western Fast Food Restaurants Not Having It All Their Own Way
• Indians Craving For More Confectionery
• Investments Intensifying In The Other Food Sub-Sectors As Well
• Market Overview
• Food Processing
• Food Consumption
• Confectionery
• Canned Food
• Trade
• Agriculture
• Rice
• Dairy
• Drink
• Key Industry Trends and Developments
• Global Soft Drinks Players Looking to Capitalise on India's Growing Thirst
• Huge Scope For Premium Growth
• Coffee Players Step Up Expansion Efforts As Indians Guzzle More Coffee
• Market Overview
• Soft Drinks
• Hot Drinks
• Alcoholic Drinks
• Spirits
• Beer
• Wine
• Mass Grocery Retail
• Key Industry Trends And Developments
• Metro Eyeing A Stronger Indian Foothold
• India A Strong Retail Magnet
• Market Overview
• Leading MGR Players
  • Table: Structure of India's Mass Grocery Retail Market by Estimated Number of Outlets
  • Table: Structure of India's Mass Grocery Retail Market - Sales by Format (US$mn)
  • Table: Structure of India's Mass Grocery Retail Market - Sales by Format (INRmn)
  • Table: Average Outlet Sales by Format - 2010
• Competitive Landscape
• Consumer Share Price Analysis
  • Table: Key Players in India's Food and Drink Sector, 2011
  • Table: Key Players in India's Mass Grocery Retail Sector - 2011
• Company Analysis
• Food
• Hindustan Unilever Limited (HUL)
• Gujarat Co-operative Milk Marketing Federation (Amul Dairy)
• Britannia
• Drink
• PepsiCo India
• United Breweries (UB)
• Coca-Cola India
• SABMiller India
• Mass Grocery Retail
• RPG Retail
• Pantaloon Retail India
• BMI Methodology
• Food & Drink Business Environment Ratings
  • Table: Rewards
  • Table: Risks
• Weighting
  • Table: Weighting
• BMI Food & Drink Industry Glossary
• Food & Drink
• Mass Grocery Retail
• BMI Food & Drink Forecasting & Sourcing
• How We Generate Our Industry Forecasts
• Sourcing