Philippines Food & Drink Report

Published 30 December 2014

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Philippines Food & Drink Report

BMI View: While the Philippine economy continues to expand at a healthy rate and despite its expanding base of young consumers, we believe that the country offers limited potential in its grocery and food and drink markets. Multinational investment has been slow to penetrate the market, which in itself continues to present numerous challenges to players in the sectors. Issues such as widespread poverty, highly uneven income distribution, under - developed mass grocery retail networks and high levels of unemployment will continue to weigh on the consumer outlook.

Headline Industry Data (local currency)

  • 2014 per capita food consumption = +4.68%; compound annual growth rate (CAGR) forecast 2013 to 2018 = +4.46%

  • 2014 alcoholic drinks value sales = +7.97%; CAGR growth forecast 2013 to 2018 = +7.03%

  • 2014 soft drinks value sales = +7.89%; CAGR growth forecast 2013 to 2018 = +7.89%

  • 2014 mass grocery retail sales = +7.39%; CAGR growth forecast 2013 to 2018 = +7.03%

Industry Developments

Del Monte Pacific Enters New Joint Venture And Proposes Share Sale : Philippine food and beverage company Del Monte Pacific Limited (DMPL) disclosed in December 2014 that it was to enter into a joint venture (JV) with two Europe based companies. The JV will result in the construction of a facility in the Philippines that will preserve the quality and shelf life of fruit and vegetables. Spain based Nice Fruit SL will provide the technology that preserves the nutrients and integrity of the produce handled at the plant. Nice Fruit SL will be the majority stakeholder in the JV with 51% and DMPL will have a 35% stake. UK based Ferville Ltd, while being a minority financial investor, was instrumental to developing the JV and will hold a 14% interest.

Century Pacific Completes Successful IPO : The initial public offering (IPO) of Philippines-based food company Century Pacific was oversubscribed by 3.5 times the base offering and raised PHP3.2bn in fresh capital, reported the...

BMI Industry View
7
SWOT
9
Food
9
Drink
11
Mass Grocery Retail
13
Industry Forecast
15
Consumer Outlook
15
Food
18
Table: Food Consumption Indicators - Historical Data & Forecasts (Philippines 2011-2018)
19
Table: Confectionery Value/Volume Sales, Production & Trade - Historical Data & Forecasts (Philippines 2011-2018)
20
Table: Dairy Volume Sales, Production & Trade - Historical Data & Forecasts (Philippines 2011-2018)
21
Drink
22
Table: Hot Drink Value/Volume Sales, Production & Trade - Historical Data & Forecasts (Philippines 2011-2018)
22
Table: Soft Drinks Sales, Production & Trade - Historical Data & Forecasts (Philippines 2011-2018)
23
Table: Alcoholic Drinks Value/Volume Sales, Production & Trade - Historical Data & Forecasts (Philippines 2011-2018)
24
Mass Grocery Retail
26
Table: Mass Grocery Retail Sales By Format - Historical Data & Forecasts (Philippines 2011-2018)
27
Table: Sales Breakdown By Retail Format Type
28
Trade
29
Table: Trade Balance - Historical Data & Forecasts (Philippines 2011-2018)
30
Macroeconomic Forecasts
31
Economic Analysis
31
Table: Economic Activity (Philippines 2009-2018)
34
Industry Risk Reward Index
35
Asia Pacific - Risk/Reward Index
35
Table: Asia Pacific Food & Drink Risk/Reward Index Q115
36
Table: Asia Pacific Food & Drink Risk/Reward Sub-Factor Index Q115 - Selected Countries (scores out of 10)
40
Philippines Risk/Reward Index
41
Market Overview
42
Food
42
Food Processing
42
Agriculture
43
Drink
44
Hot Drinks
44
Soft Drinks
44
Alcoholic Drinks
45
Mass Grocery Retail
46
Table: Structure Of Mass Grocery Retail Market By Estimated Number of Outlets (Philippines 2005-2010)
47
Table: Mass Grocery Retail Sales By Format (Philippines 2005-2010)
47
Table: Mass Grocery Retail Sales By Format (Philippines 2005-2010)
48
Table: Table: Estimated Number Of Outlets In 2010
48
Industry Trends And Developments
49
Food
49
Key Industry Trends And Developments
49
Drink
56
Key Industry Trends And Developments
56
Mass Grocery Retail
63
Key Industry Trends And Developments
63
Competitive Landscape
67
Table: Key Players In The Philippine Food Industry
67
Table: Key Players In The Philippine Drink Industry
67
Table: Key Players In The Philippine Mass Grocery Retail Sector
68
Company Profile
70
LT Group
70
Alaska Milk Corporation
73
Universal Robina Corp
76
San Miguel Brewery
79
SM Investments
81
Philippine Seven Corp
83
Global Industry Overview
86
Table: Dollar General And Family Dollar Historic Quarterly Same-Store Sales Growth (% Change Y-O-Y)
90
Table: Selected US And Global Spirits Companies - Historical Financial Indicators
93
Table: Select US Beverage Companies - Historic Eva Spread
95
Table: Food and Drink Team's Core Views
96
Demographic Forecast
98
Table: Population Headline Indicators (Philippines 1990-2025)
99
Table: Key Population Ratios (Philippines 1990-2025)
99
Table: Urban/Rural Population & Life Expectancy (Philippines 1990-2025)
100
Table: Population By Age Group (Philippines 1990-2025)
100
Table: Population By Age Group % (Philippines 1990-2025)
101
Glossary
103
Food & Drink
103
Mass Grocery Retail
103
Methodology
105
Industry Forecast Methodology
105
Sector-Specific Methodology
106
Sources
106
Risk/Reward Index Methodology
107
Table: Food & Drink Risk/Reward Index Indicators
108
Table: Weighting
109

The Philippines Food & Drink Report features BMI Research's market assessment and independent forecasts for food and drink expenditure, consumption, sales, and imports/exports and forecasts for the mass grocery retail sector. The report also includes analyses of major regulatory developments, the background macroeconomic outlook and competitive landscape comparing national and multinational companies by leading products and services, sales, investments, partners and expansion strategies.

BMI's Philippines Food & Drink Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the food and drink industry and the mass grocery retail market in Philippines.

Key Benefits

  • Benchmark BMI's independent food and drink industry forecasts for Philippines to test other views - a key input for successful budgeting and strategic business planning in the Philippine food and drink market.
  • Target business opportunities and risks in Philippines through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
  • Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity) and Competitive Landscape Tables.

Coverage

BMI Industry View

Summary of BMI’s key industry forecasts and views, covering food and drink manufacturing and consumption and the mass grocery retail market.

Industry SWOT Analysis

Analysis of the major strengths, weaknesses, opportunities and threats within the food, drink and mass grocery retail sectors and within the broader political, economic and business environment.

BMI’s Food and Drink Risk Reward Index

BMI’s Risk Reward Index provides investors (food and drink manufacturers and mass grocery retailers) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic points. These provide indices of highest to lowest appeal to investors, with each position explained.

Food Forecasts

BMI’s food chapter is divided into sections such as meat, fish, confectionary, dairy and canned foods, and provides insight into each market’s food industry, centred on a forecast to end-2019 for the sector. The chapter includes the following elements:

  • Industry Forecast Scenario: Historical data series and a forecast to end-2019 for growth of key indicators within a market’s food industry. Indicators include food consumption, food consumption as % of GDP, canned food sales, confectionery sales and food and drink imports and exports, among others.
  • Industry Developments: A summary of corporate developments, including news on M&As, FDI, expansions, closures and financial results, in addition to analysis and explanation of the latest industry events and how these could influence further investment.
  • Market Overview: An overview of the structure of the market, introducing the key players and discussing underlying trends.

Drink Forecasts

Segmented the same way as BMI’s food chapter, the drink section provides insight into each market’s drink industry, centred on a forecast to end-2019 for the sector. Forecast indicators include alcoholic and soft drink sales by value, volume and sub-sector and tea and coffee sales, among others.

Mass Grocery Retail Forecasts

Segmented the same way as BMI’s food and drink chapters, the mass grocery retail section provides insight into each market’s grocery retail industry, centred on a forecast to end-2019 for the sector. Forecast indicators include mass grocery retail sales by format (including supermarkets, hypermarkets, convenience and discount stores) and a breakdown of the organised retail sector versus the traditional sector, among others.

Competitive Landscape

Illustration of the mass grocery retail and food and drink industries via rankings tables comparing revenues, number of outlets and number of employees. This chapter also includes data-rich, in-depth regional analysis of the market position, business strategies and investment potential of the region’s leading mass grocery retail and food and drink operators.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Sources

The Food & Drink reports draw on an extensive network primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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