Philippines Food and Drink Report 2009

In keeping with its size and multi-category presence, South East Asian food and drink giant San Miguel Corporation (SMC) continues to dominate developments in BMI's latest Philippines Food & Drink Report for 2009. Most notable has been the company's independent listing of its domestic beer business, San Miguel Brewery (SMB). Among several interests being spun-off or disposed of in order to raise capital, the beer unit performed strongly on its stock market debut, despite local trading uncertainty which saw SMC slash the price and volume of shares on offer.

Using funds raised via its restructuring, SMC intends to pursue its long sought after diversification into heavy industries and telecommunications. Far from reflecting a search for higher growth opportunities, SMC's latest actions belie the potential of the dynamic local beverage sector. Thanks in part to SMC's presence, the Philippines has a developed alcoholic drinks sector, SMC having helped establish the sort of industry best practices that drive consumption growth. To 2013, BMI is forecasting value sales of alcoholic drinks to increase by 51.8%, while value sales in the similarly dynamic soft drinks industry will climb by 29.2%.

These forecasts explain the ongoing interest in the country's drinks sector among both local and international investors. November 2008 saw China's Hangzhou Wahaha enter the local soft drinks sector, while Japanese beer giant Kirin's PHP59bn (US$1.26bn) bid for a 43.25% stake in newlyindependent SMB further underlines the potential of the local beer sector.

Of course, the opportunity the country's beverage sector represents must be viewed against the backdrop of corresponding risks, chief among these being a forecast slowdown in the local economy. BMI expects Philippines' GDP growth to slow in 2009. While the country is expected to avoid the economic contraction forecast for many Asian states, declining consumer spending, hurt by slowing remittances from international workers and shaken consumer confidence, will hit the domestic demand-driven economy hard. Rising unemployment, from an already high level, is an additional risk.

A shaky 2009 must, however, be viewed within the context of a favourable medium-term picture and investors should continue to target the market in anticipation of the long-term rewards on offer in 2010 and beyond.

• Executive Summary
• Business Environment
• Asia Pacific Food & Drink Business Environment Ratings
• Philippines' Food & Drink Business Environment Rating
• SWOT Analysis
• Food
• Philippines Food Industry SWOT
• Drink
• Philippines Drink Industry SWOT
• Mass Grocery Retail
• Philippines Mass Grocery Retail Industry SWOT
• Macroeconomic Outlook
• Food
• Industry Forecast Scenario
• Food Consumption
• Trade
• Canned Food
• Confectionery
• Industry Developments
• Market Overview
• Agriculture
• Organics
• Food Processing
• Drink
• Industry Forecast Scenario
• Hot Drinks
• Soft Drinks
• Alcoholic Drinks
• Industry Developments
• Market Overview
• Soft Drinks
• Alcoholic Drinks
• Retail
• Industry Forecast Scenario
• Sales Breakdown by Retail Format Type
• Industry Developments
• Market Overview
• Competitive Landscape
• Key Players
• Food and Drink
• Mass Grocery Retail
• Company Analysis
• Food
• Alaska Milk Corporation
• Universal Robina Corp (URC)
• Drink
• Tanduay Holdings
• San Miguel Brewery (SMB)
• Mass Grocery Retail
• SM Investments - Retail Business (SM)
• Philippine Seven Corp
  • Appendix: Agricultural Commodity Prices
• Country Snapshot: Philippines Demographic Data
• Section 1: Population
• Section 2: Education And Healthcare
• Section 3: Labour Market And Spending Power
• Food & Drink Business Environment Ratings
• Ratings Methodology
• Ratings Overview
• Ratings System
• Indicators
• Limits Of Potential Returns
• Risks To Realisation Of Potential Returns
• Weighting
• BMI Food & Drink Industry Glossary
• Food & Drink
• Mass Grocery Retail
• BMI Food & Drink Forecasting & Sourcing
• How We Generate Our Industry Forecasts
• Sourcing
• List of Tables
  • Table: Regional Food & Drink Business Environment Ratings, Q109
  • Table: Philippines - Economic Activity
  • Table: Food Consumption Indicators - Historical Data & Forecasts
  • Table: Philippines Food & Drink Trade Indicators - Historical Data & Forecasts
  • Table: Value/Volume Sales of Selected Food Sub-Sectors - Historical Data & Forecasts
  • Table: Philippines Beverage Sub-Sector Indicators - Value Sales - Historical Data & Forecasts
  • Table: Philippines Mass Grocery Retail Indicators - Historical Data & Forecasts by Format
  • Table: Structure of the Philippines Mass Grocery Retail Market by Estimated Number of Outlets
  • Table: Structure of the Philippines Mass Grocery Retail Market - Sales by Format (US$bn)
  • Table: Average Sales per Outlet by Format (US$mn) - 2007
  • Table: Key Players in the Philippines Food & Drink Industry
  • Table: Key Players in the Philippines Mass Grocery Retail Sector
  • Table: Demographic Indicators, 2005-2030
  • Table: Rural/Urban Breakdown, 2005-2030
  • Table: Education, 2002-2005
  • Table: Vital Statistics, 2005-2030
  • Table: Employment Indicators, 2001-2006
  • Table: Consumer Expenditure, 2007-2012 (US$)
  • Table: Average Annual Manufacturing Wages, 2004-2006
  • Table: Weighting