Business Monitor International


Latvia Food & Drink Report

Published 02 December 2014

  • 118 pages
  • Instant access to your report online and PDF format through your account library
  • Free related articles sent monthly
 
$1,295.00
Latvia Food & Drink Report

BMI View:   We expect that household consumption will remain stable over 2015, contributing 1. 7 percentage points to headline real GDP,. This will be supported by low inflation and an improving labour market. However, the deterioration in EU-Russia relations is adversely affecting Latvia's economic growth outlook. Western sanctions on Russia have led to capital flight and sharp depreciation of the rouble against the dollar, which has markedly worsened the growth outlook for Russia (which remains one of Latvia's most important trading partners). Russia's retaliatory embargo on EU agricultural goods will also leave Latvia among the worst affected, as Latvian agricultural exports to Russia account for almost 3% of total exports.

Headline Industry Data (local currency)

  • 2014 per capita food consumption: +2.8%; forecast compound annual growth rate (CAGR) 2013 to 2018: +4.0%

  • 2014 alcoholic drinks sales: -0.6%; forecast CAGR 2013 to 2018: 13.0%

  • 2014 soft drinks sales: +2.9%; forecast CAGR 2013 to 2018: +4.0%

  • 2014 mass grocery retail sales: +15.0%; forecast CAGR 2013 to 2018: +5.9%

Key Company Trends

Orkla Expands Baltic Operations Through NP Foods Acquisition : In summer 2014, Norwegian food company Orkla announced the acquisition of Latvia-based NP Foods Group, including the Laima confectionery brand, Staburadze cakes and Gutta soft drinks. The financial details of the transaction were not disclosed. Orkla said the acquisition will 'nearly double the scale' of its operations in the Baltic and make it 'one of the largest consumer goods companies in the region' Peter Ruzicka, CEO of Orkla, said: 'The acquisition of Laima and other well-established brands is strategically important to Orkla and will significantly strengthen our foothold in the region.'

SPI Group Creates Baltic Holding Company for Further Expansion : In autumn 2014, SPI Group announced plans to create a holding company to manage its 'ambitious development plans' in the Baltics. The...

Table of Contents

BMI Industry View
7
SWOT Analysis
8
Latvia Food Industry SWOT
8
Latvia Drink Industry SWOT
9
Latvia Mass Grocery Retail Industry SWOT
10
Business Environment
11
BMI-s Core Global Industry Views
11
Table: Core Views
19
CEE Food & Drink Risk/Reward Ratings
20
Table: Central & Eastern Europe Q113 Food & Drink Risk/Reward Ratings
21
Table: Central & Eastern Europe Q113 Food & Drink Risk/Reward Sub-Factor Ratings (scores out of 10)
24
Latvia-s Food & Drink Risk/Reward Rating
25
Macroeconomic Outlook
26
Table: Economic Activity
28
Industry Forecast Scenario
29
Consumer Outlook
29
Food
32
Food Consumption
32
Table: Food Consumption Indicators - Historical Data & Forecasts, 2010-2017
33
Confectionery
33
Table: Confectionery Value/Volume Sales - Historical Data & Forecasts, 2010-2017
34
Canned Food
35
Table: Canned Food Value/Volume Sales - Historical Data & Forecasts, 2010-2017
35
Meat
36
Table: Meat Volume Sales, Production & Trade - Historical Data & Forecasts, 2010-2017
36
Snack Food
37
Table: Snack Foods Volume Sales, Production & Trade - Historical Data & Forecasts, 2010-2017
38
Pasta
40
Table: Pasta Volume Sales, Production & Trade - Historical Data & Forecasts, 2010-2017
40
Dairy
41
Table: Dairy Volume Sales, Production & Trade - Historical Data & Forecasts, 2010-2017
42
Drink
45
Alcoholic Drinks
45
Table: Alcoholic Drinks Value/Volume Sales - Historical Data & Forecasts, 2010-2017
47
Soft Drinks
47
Table: Soft Drinks Value/Volume Sales - Historical Data & Forecasts, 2010-2017
48
Hot Drinks
49
Table: Hot Drinks Value/Volume Sales - Historical Data & Forecasts, 2010-2017
50
Mass Grocery Retail
50
Table: Mass Grocery Retail Sales - Historical Data & Forecasts, 2010-2017
51
Table: Grocery Retail Sales By Format
51
Trade
52
Table: Food & Drink Trade Indicators - Historical Data & Forecasts, 2010-2017
52
Food
53
Key Industry Trends And Developments
53
Latvian Company Starts Exporting Ice Cream To The US
53
Fazer Exits Restaurant Business In Latvia And Estonia
53
McDonald-s Expanding In Latvia
53
Market Overview
54
Food Consumption
54
Food Processing
54
Leading Food Producers
55
Confectionery
56
Trade
56
Agriculture
56
Drink
58
Key Industry Trends And Developments
58
Spirits Producer Posts Strong H112 Results
58
Market Overview
58
Alcoholic Drinks
58
Beer
59
Spirits
60
Wine
61
Soft Drinks
61
Hot Drinks
63
Mass Grocery Retail
64
Key Industry Trends And Developments
64
Prisma Latvia Expands In Riga
64
Discount Stores Boosted By Economic Situation
64
Market Overview
65
Leading Retailers
65
Table: Structure Of Mass Grocery Retail Market By Number Of Outlets
66
Table: Structure Of Mass Grocery Retail Market - Sales Value By Format
67
Table: Average Annual Sales Per Outlet By Format, 2012
67
Competitive Landscape
68
Key Players
68
Table: Key Players In Latvia's Food & Drink Sector
68
Table: Key Players In Latvia-s Mass Grocery Retail Sector
69
Company Monitor
71
Food
71
Paulig Baltic AS
71
Laima
72
Margota (Balbiino)
74
Rigas Piena Kombinats (RPK)
75
Drink
77
Livu Alus
77
Aldaris
78
Cesu Alus
80
Cido Grupa
81
Latvijas balzams
82
Mass Grocery Retail
84
Maxima LT (formerly Vilniaus Prekyba)
84
Rimi Baltic
85
Elvi
86
Demographic Outlook
87
Table: Latvia's Population By Age Group, 1990-2020 ('000)
88
Table: Latvia's Population By Age Group, 1990-2020 (% of total)
89
Table: Latvia's Key Population Ratios, 1990-2020
90
Table: Latvia's Rural And Urban Population, 1990-2020
90
Risk/Reward Ratings Methodology
91
Table: Rewards
91
Table: Risks
92
Weighting
92
Table: Weighting
92
BMI Food & Drink Industry Glossary
93
Food & Drink
93
Mass Grocery Retail
93
BMI Food & Drink Forecasting & Sourcing
95
How We Generate Our Industry Forecasts
95
Sourcing
96

The Latvia 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 Latvia 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 Latvia.

Key Benefits

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

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

The rankings 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.

secure
Benefit from discounts when you add multiple products to your basket
2 Products SAVE 10%
3 Products SAVE 15%
4 Products SAVE 20%
5 Products SAVE 25%
6 Products SAVE 30%
7 - 20 Products SAVE 35%
21 Products or more SAVE 40%

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