Colombia Food and Drink Report Q2 2008

Publication Date	April 2008
Publisher	Business Monitor
Product Type	Report
Pages	67
ISBN Number	not applicable
Product Code	BMI01629

Price

£425.00
approximately: $734 | €540

PDF immediate delivery

Order above formats by FAX

Summary

In the past 12 months, several food producers have been investing in Colombia to tap the growing demand for 'indulgence' products that are not generally regarded as essential, such as chocolate, ice cream, yoghurt and coffee. This demand has been generated by steady economic growth and falling unemployment which has pushed up disposable incomes. This, along with the improving security situation, has made Colombia an increasingly attractive place for international investors such as Danone and Nestl. Local firms such as Grupo Nacional de Chocolates and Alpina are also keen to capitalise on this rising demand and investing significant funds to increase capacity.

The Colombian economy is growing steadily, thanks to sound fiscal policies that do not pursue short-term growth at the expense of stability. BMI is expecting this growth to continue, albeit at a slightly more modest rate, with GDP growth of 4.78% forecast for 2008 and 4.41% for 2009. Thanks to improvements in the security situation and a drop in guerrilla-related violence, the country is also becoming a less risky place to invest. However, the bombing of a Nestl owned dairy plant by leftist rebels in January 2007 highlights the fact that significant risks remain when operating in certain parts of the country.

French firm Danone entered Colombia in March 2007, launching a joint venture with local dairy firm Alqueria. The two firms have already invested US$20mn in a yoghurt factory on the outskirts of Bogota and recently announced they will invest EUR100mn in Colombia in the next 10 years. Danone's branded dairy products, which gnerally sell at a premium price, may have struggled to find a market just a few years ago when consumer confidence was low. With this significant investment, Danone is signalling that it believes many Colombians are now willing to pay for premium branded products and that this demand is only likely to increase in the future.

Another firm benefiting from this trend is Colombia based Grupo Nacional de Chocolates, whose products include confectionery, coffee, biscuits and ice cream. The rise in demand for indulgence products has seen the firm's profits increase by 150% in the last five years, and the firm estimates that total consumption of its products increased by 13% in the first seven months of 2007. To keep up with this rising demand, the firm has announced plans to invest a further US$250mn by 2009 to raise production capacity with the majority of this investment going towards expanding the firm's meat, biscuits, chocolate and ice cream plants.

Content

Executive Summary
Business Environment
Regional Food & Drink Business Environment Ratings
- Table: Latin America Food & Drink Business Environment Ratings - Q208
Colombia's Food & Drink Business Environment Rating
- Table: Colombia's Global Food & Drink Business Environment Ratings Peer Group
SWOT Analysis
Mass Grocery Retail
Colombia Mass Grocery Retail Industry SWOT
Food And Drink
Colombia Food And Drink Industry SWOT
Macroeconomic Outlook
- Table: Economic Activity
Retail
Industry Forecast Scenario
- Table: Colombia Mass Grocery Retail - Value Sales By Format (US$bn) - Historical Data & Forecasts
- Table: Sales Breakdown By Retail Format Type
Industry Developments
Market Overview
- Table: Structure Of Colombia's Mass Grocery Retail Market By Estimated Number Of Outlets
- Table: Structure Of Colombia's Mass Grocery Retail Market - Sales By Format (US$bn)
- Table: Average Annual Sales Value By Format - 2006
Food And Drink
Regional Overview: Confectionery In Latin America
- Table: Latin American Confectionery Producers Ranked Among The World's 100, 2006
Industry Forecast Scenario
Food
- Table: Colombia Food Consumption Indicators - Historical Data & Forecasts
- Table: Value/Volume Sales Of Selected Food Sub-Sectors - Historical Data & Forecasts
- Table: Food, Drink And Tobacco Trade Indicators (US$m
Drink
- Table: Colombia Beverage Sectors - Value/Volume Sales, Historical Data & Forecasts
Industry Developments
Food
Drink
Market Overview
Food
Agriculture
- Table: Colombia Dairy Industry Data ('000 Tonnes, Unless Stated)
- Table: Colombia Agricultural Sub-Sector Production Data
Drink
Tobacco
Industry Forecast Scenario
- Table: Cigarette Value/Volume Sales - Historical Data & Forecasts
Market Overview
Competitive Landscape
Key Players
Mass Grocery Retail
- Table: Key Players In Colombia's Mass Grocery Retail Market
Food And Drink
- Table: Key Players In Colombia's Food & Drink Sector
Regional Company Case Studies
Food: Grupo Bimbo In Latin America
- Table: Grupo Bimbo - Net Sales 2005 vs. 2006 (US$ mn)
- Table: Grupo Bimbo - Divisions
- Table: Grupo Bimbo - Plants & Brands In Latin America
Food: Bunge Ltd In Latin America
- Table: Bunge Ltd, Net Sales To External Customers By Operating Segment, 2004-2006 (US$ mn)
- Table: Bunge Ltd, Latin American Operations
Company Analysis
Agriculture
C.I. Union de Bananeros de Uraba, SA (Uniban)
Food
Alianza Team (Tecnologia Empresarial de Alimentos SA)
Nacional de Chocolates
Drink
Postbon
Grupo Empresarial Bavaria
Mass Grocery Retail
Almacenes Exito
Olmpica
Food & Drink Ratings Appendix
Introduction: Revised Methodology
Ratings Overview
Ratings System
Indicators
Limits Of Potential Returns
Risks To Realisation Of Potential Returns
Weighting
Weighting
BMI Forecast Modelling
How We Generate Our Industry Forecasts
Retail Industry
Sources