BMI View : While the Philippines' 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 = +5.98%; compound annual growth rate (CAGR) forecast 2014 to 2017 = +4.54%
? 2014 alcoholic drinks value sales = +7.41%; CAGR growth forecast 2014 to 2017 = +4.99%
? 2014 soft drinks value sales = +7.76%; CAGR growth forecast 2014 to 2017 = +5.87%
? 2014 mass grocery retail sales = +6.94%; CAGR growth forecast 2014 to 2017 = +5.13%
LT Group Raises $912 Million in Philippines's Largest Equity Sale
Filipino billionaire Lucio Tan's LT Group Inc. raised PHP37.72 billion (US$912.2 million) in the country's largest ever equity sale, benefiting from a stock market that has boomed just weeks after the country received an investment-grade rating.
The conglomerate's private-placement sale, which was announced in 2012, followed other large share sales in the region in recent months. It attracted strong interest from beyond Asia, sole book runner and lead issue manager UBS AG said, demonstrating investors' appetite for Philippine assets.
The offer was priced at the top end of an indicative range of PHP18 to PHP20.50 a share, and the company exercised an overallotment option to issue a total of 1.84bn shares, UBS said. The sale attracted 11 cornerstone investors and the order book totalled US$3.5bn. UBS said 23% of the funds came from Europe, 36% came from the US, and 41% came from Asia. It did not...
The Philippines 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 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.
- 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.
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.
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.