BMI View: We maintain a positive outlook for the Kuwaiti food and drink industry, as rapid wage growth, easy access to consumer credit and supportive fiscal policies are expected to spur household spending over 2014. That said, we note that limited market size and already high per capita consumer spending for food and drinks will limit sales growth to relatively moderate figures.
Headline Industry Data (local currency)
Total food consumption (local currency) growth (y-o-y) in 2014: +2.3%; compound annual growth rate (CAGR) to 2018: +3.1%
Per capita food consumption (local currency) growth (y-o-y) in 2014:-0.9%; CAGR to 2018:+0.2%
Bottled water volume (litres) sales growth (y-o-y) in 2014: +4.2%; CAGR to 2018: +4.0%
Total mass grocery retail (MGR) sales (local currency) growth (y-o-y) in 2014: +3.1%; compound annual growth rate (CAGR) to 2018: +3.3%
Key Industry Developments
Mezzan To Ac?uire Unitra Mets Group: In late 2013, Kuwait-based conglomerate Mezzan Holding Company said it was planning to acquire the distributor of Red Bull energy drink in the UAE Unitra Mets Group from Invest AD and its other shareholders. The move underlines Mezzan's interest in consumer-related investments in the Gulf Arab region. NBK Capital and Gibson, Dunn & Crutcher advised Mezzan on the transaction, while deNovo Corporate Advisors and Clifford Chance advised Invest AD. However, the financial details of the transaction have not been revealed.
Kout Acquires Little Chef In T he UK : In summer 2013, Kuwait-based Kout Food Group acquired the UK-based Little Chef chain of roadside eateries from private equity firm RCapital in a deal estimated to be worth about GBP15mn. Kout already runs more than 40 Burger King and KFC outlets in the UK, as well as the Maison Blanc patisserie chain.
Carrefour Sells Stake In JV T o Majid Al-Futtaim: In a surprise move in May 2013, Carrefour sold its 25% stake in its Middle East and North Africa (MENA) joint venture to its partner Majid...
The Kuwait 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 Kuwait 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 Kuwait.
- Benchmark BMI's independent food and drink industry forecasts for Kuwait to test other views - a key input for successful budgeting and strategic business planning in the Kuwaiti food and drink market.
- Target business opportunities and risks in Kuwait 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.
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.
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.
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.