Business Monitor International


Australia Food & Drink Report

Published 27 February 2014

  • 119 pages
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$1,295.00
Australia Food & Drink Report

Since the September elections, the Australia economy has recorded an uptick in activity levels and business sentiment from the lows recorded earlier in 2013, supported by both domestic and external factors. Domestically, prospects of lower regulatory burden, ranging from taxes to various regulatory procedures, have helped lift the outlook for certain industries, such as oil and gas. Moreover, September's readings of the performance indices showed that deterioration in the services and construction sectors were moderating, while activity in the manufacturing sector posted expansion in both September and October. Still, we continue to see a shift of consumption habits towards private labels in Australia over the coming years as a growing number of consumers acknowledge private labels as a very compelling alternative to proprietary branded goods.

Headline Industry Data (local currency)

  • 2014 per capita food consumption = +0.7%; forecast to 2018 = +1.4% CAGR.

  • 2014 soft drinks sales = +2.1%; forecast to 2018 = +2.6% CAGR.

  • 2014 alcoholic drinks sales = +1.9%; forecast to 2018 = +2.4% CAGR.

  • 2014 mass grocery retail sales = +3.4%; forecast to 2018 = +4.3%.

Key Industry Trends And Developments

ADM To Face Challenges Amid Acquisition Collapse : Australian authorities recently rejected US-based Archer Daniels Midland (ADM)'s bid for Australian grain trader GrainCorp, dealing a blow to ADM's efforts to diversify away from its focus on the US corn and soybean industries. ADM, which already owns 19.9% of GrainCorp, was seeking to acquire the remaining 80.1%. Currently, ADM receives 52.0% of its revenues from these industries, and it was particularly vulnerable to the US drought in 2012. The company is also highly exposed to mature markets, where we see little potential for growth to pick up in the medium term. In order to increase its geographic diversification in recent years, ADM has already acquired stakes in Wilmar International, which operates in oilseeds in...

Table of Contents

BMI Industry View
7
SWOT
10
Food
10
Drink
12
Mass Grocery Retail
14
Industry Forecast
16
Consumer Outlook
16
Food
18
Food Consumption
18
Table: Food Consumption Indicators - Historical Data & Forecasts, 2013-2018
19
Confectionery
19
Table: Confectionery Value/Volume Sales - Historical Data & Forecasts, 2013-2018
20
Canned Food
21
Table: Canned Food Value/Volume Sales - Historical Data & Forecasts, 2013-2018
21
Drink
21
Alcoholic Drinks
21
Table: Alcoholic Drinks Value/Volume Sales - Historical Data & Forecasts, 2013-2018
23
Hot Drinks
23
Table: Hot Drinks Value Sales - Historical Data & Forecasts, 2013-2018
24
Soft Drinks
24
Table: Soft Drinks Value/Volume Sales - Historical Data & Forecasts, 2013-2018
25
Mass Grocery Retail
26
Table: Mass Grocery Retail Sales By Format - Historical Data & Forecasts, 2013-2018
27
Trade
27
Table: Food & Drink Trade Indicators - Historical Data & Forecasts, 2013-2018
28
Macroeconomic Forecast
29
Macroeconomic Forecasts
29
Ongoing Misallocation Of Capital Increases Risks
31
Increasing Pressures For Greater Macro-Prudential Rules
32
Table: Australia - Economic Activity
34
Industry Risk Reward Ratings
35
Asia Pacific Risk/Reward Ratings
35
Table: Asia Pacific Food & Drink Risk/Reward Ratings Q214
36
Table: Asia Pacific Food & Drink Risk/Reward Sub-Factor Ratings Q214 (scores out of 10)
39
Australia Risk/Reward Ratings
40
Market Overview
41
Food
41
Food Processing
41
Functional Foods
42
Confectionery
42
Canned Food
43
Trade
43
Agriculture
44
Organic Farming
45
Drink
46
Alcoholic Drinks
46
Hot Drinks
48
Soft Drinks
48
Mass Grocery Retail
49
Industry Trends And Developments
52
Food
52
Key Industry Trends And Developments
52
Drink
59
Key Industry Trends And Developments
59
Mass Grocery Retail
63
Key Industry Trends And Developments
63
Competitive Landscape
67
Competitive Landscape
67
Table: Key Players In Australia's Food & Drink Sector
67
Table: Key Players In Australia's Mass Grocery Retail Sector
68
Company Profile
69
Dairy Farmers
69
Heinz Australia
71
Cadbury
75
Lion Nathan
77
Foster's Group
80
Coopers Brewery
84
Coca-Cola Amatil
87
Aldi
90
Wesfarmers
92
FoodWorks
94
Woolworths
96
Global Industry Overview
99
Table: Food And Drink Core Views
108
Demographic Forecast
109
Demographic Outlook
109
Table: Australia's Population By Age Group, 1990-2020 ('000)
110
Table: Australia's Population By Age Group, 1990-2020 (% of total)
111
Table: Australia's Key Population Ratios, 1990-2020
112
Table: Australia's Rural And Urban Population, 1990-2020
112
Glossary
113
Food & Drink
113
Mass Grocery Retail
113
Methodology
115
Industry Forecast Methodology
115
Sector-Specific Methodology
116
Sources
116
Risk/Reward Rating Methodology
117
Table: Food & Drink Risk/Reward Rating Indicators
118
Table: Weighting
119

The Australia Food & Drink Report features Business Monitor International (BMI)'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 Australia 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 Australia.

Key Benefits

  • Benchmark BMI's independent food and drink industry forecasts for Australia to test other views - a key input for successful budgeting and strategic business planning in the Australian food and drink market.
  • Target business opportunities and risks in Australia 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 retail market.

Business Environment Ratings

BMI's Food & Drink Business Environment Ratings provide a country-comparative Risk-Reward Ratings index aimed at investors, food and drink manufacturers and mass grocery retailers.

The ratings methodology makes sophisticated use of over 40 industry, economic and demographic data points.

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.

Food Forecasts

BMI's food chapter is divided into sections such as Meat, Fish, Confectionary, Dairy and Canned Foods, and provides insight into a market's food industry, centred on a forecast to end-2018 for the sector. The chapter includes the following elements:

Industry Forecast Scenario - Historical data series and forecasts to end-2018 for growth of key indicators within a market's food industry. Including 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 the market's drink industry, centred on a forecast to end-2018 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 a market's grocery retail industry, centred on a forecast to end-201 for the sector. Forecast indicators include mass grocery retail sales by format (including supermarkets, hypermarkets, convenience and discount stores) and a breakdown for the organised retail sector versus the traditional sector, among others.

Competitive Landscape & Profiles

Illustration of the industry via rankings tables comparing revenues, number of outlets and number of employees. BMI analyses each company's market position, business strategies and investment potential.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc