Italy Food and Drink Report Q4 2012

Publisher Name :
Date: 10-Oct-2012
No. of pages: 96

The prognosis for Italian consumers remains relatively grim, as we forecast that private consumption will
contract by 2.3% in 2012, significantly worse than the 1.6% contraction in 2009. Further, we expect
private consumption to fall by a further 0.1% in 2013 as Italian households are hit by austerity measures.
In March, households paid the increased regional surtax on personal income and, in mid-June, they were
hit by a new property tax. A proposed VAT increase in October was put off, only to be replaced by
EUR26bn in spending cuts that will hit social transfers. Unemployment will also continue to weigh on
consumption, and overall Italian household purchasing power is being eroded. We also have revised our
real GDP forecast for Italy down from -2.1% to -2.3% in 2012 and from 0.1% to 0.0% in 2013 as the
result of new austerity measures implemented by the government.
Headline Industry Data (local currency)
2012 per capita food consumption = -0.2%; forecast to 2016 = +4.3%
2012 alcoholic drink value sales = +2.9%; forecast to 2016 = +13.3%
2012 soft drink value sales = -1.8% ; forecast to 2016 = +5.2%
2012 mass grocery retail sales = -0.2%; forecast to 2016 = +5.2%
Key Industry Trends And Developments
Barilla Announcements Fit Branded Focus: In summer 2012 Italian food group Barilla announced that
former Unilever executive Claudio Colzani is to be the company's new CEO. The move came shortly
after Barilla revealed it was looking to offload its German bakery business Lieken. Taken together, these
moves provide a signal of the firm's underlying strategy, with a focus on its core consumer brands likely
to take centre stage. Barilla is the world's largest pasta producer and therefore looks particularly
threatened by the growth in private labels, with pasta proving to be a sector for which the advantages of
branded products are harder to convey. However, with strong brands and a focus on its premium
positioning alongside innovation, we believe Barilla is likely to be able to keep this threat at bay over the
longer term.
Campari Acquires LdM and Enters Rum Sector: In September 2012, Italian drinks giant Campari made
the third largest acquisition in its history with the purchase of a majority stake in Lascelles deMercado &
Co, parent company of the Appleton Estate and Wray & Nephew rum brands. The move marks
Campari's entry into the rum sector. Campari has agreed to buy 81.4% of the company from CL
Financial, with a view to purchasing the company outright for US$414.8mn. The addition of the
Italy Food & Drink Report Q4 2012
© Business Monitor International Ltd Page 8
Appleton, Wray & Nephew and Coruba rum brands will help the company further build its presence in
key North American markets.
Key Risks To Outlook
Our outlook is conditional on developments both in the eurozone crisis and in Italian politics. Our core
view for the eurozone to ‘muddle through' is premised on robust German demand allowing the eurozone
economy to rebalance gradually. Also although the substantial fiscal adjustment implemented over the
last 18 months has put Italy on a sustainable fiscal trajectory, allowing credit conditions across the
economy to ease gradually in 2013, the country's large public debt load leaves it vulnerable to crises of
confidence.

Italy Food and Drink Report Q4 2012

BMI Industry View........................................................................................................................................... 7
SWOT Analysis ............................................................................................................................................... 9
Italy Food Industry SWOT .................................................................................................................................................................................... 9
Italy Drink Industry SWOT ................................................................................................................................................................................. 10
Italy Mass Grocery Retail Industry SWOT.......................................................................................................................................................... 11
Business Environment................................................................................................................................. 12
BMI's Core Global Industry Views .......................................................................................................................................................................... 12
Table: Core Views .............................................................................................................................................................................................. 20
Western Europe Risk/Reward Ratings...................................................................................................................................................................... 21
Table: Western Europe Food & Drink Risk/Reward Ratings Subcategories, Q412 (scores out of 10) ................................................................ 21
Table: Western Europe Food & Drink Risk/Reward Ratings, Q412 .................................................................................................................... 24
Italy's Food & Drink Risk/Reward Ratings ............................................................................................................................................................. 25
Macroeconomic Outlook.......................................................................................................................................................................................... 26
Table: GDP By Expenditure ............................................................................................................................................................................... 28
Industry Forecast Scenario .......................................................................................................................... 29
Consumer Outlook ................................................................................................................................................................................................... 29
Food......................................................................................................................................................................................................................... 31
Food Consumption.............................................................................................................................................................................................. 31
Table: Food Consumption Indicators - Historical Data & Forecasts, 2009-2016 .............................................................................................. 31
Confectionery...................................................................................................................................................................................................... 31
Table: Confectionery Value/Volume Sales - Historical Data & Forecasts, 2009-2016....................................................................................... 32
Canned/Prepared Food....................................................................................................................................................................................... 32
Table: Canned Food Value/Volume Sales - Historical Data & Forecasts, 2009-2016........................................................................................ 32
Table: Frozen Fruit & Vegetables Volume Sales, Production & Trade, 2009-2016 ............................................................................................ 33
Table: Snack Foods Volume Sales, Production & Trade, 2009-2016 .................................................................................................................. 34
Table: Pasta Volume Sales, Production & Trade, 2009-2016............................................................................................................................. 36
Meat, Fish And Dairy ......................................................................................................................................................................................... 37
Table: Meat Volume Sales, Production & Trade, 2009-2016 .............................................................................................................................. 38
Table: Fish Volume Sales, Production & Trade, 2009-2016............................................................................................................................... 39
Table: Oils & Fats Volume Sales, Production & Trade, 2009-2016.................................................................................................................... 41
Drink........................................................................................................................................................................................................................ 44
Soft Drinks .......................................................................................................................................................................................................... 44
Table: Soft Drink Value/Volume Sales - Historical Data & Forecasts, 2009-2016............................................................................................. 44
Alcoholic Drinks ................................................................................................................................................................................................. 45
Table: Alcoholic Drink Value/Volume Sales - Historical Data & Forecasts, 2009-2016.................................................................................... 46
Mass Grocery Retail ................................................................................................................................................................................................ 47
Table: Mass Grocery Retail Sales By Format , 2009-2016................................................................................................................................. 47
Table: Retail Sales Breakdown By Format Type................................................................................................................................................. 48
Trade........................................................................................................................................................................................................................ 48
Table: Trade Indicators - Historical Data & Forecasts, 2009-2016 ................................................................................................................... 49
Food ............................................................................................................................................................... 50
Key Industry Trends And Developments .................................................................................................................................................................. 50
Barilla Announcements Fit with Branded Focus................................................................................................................................................. 50
Parmalat Sales Grow At Home And Abroad ....................................................................................................................................................... 52
Barilla Posts Threefold Rise In 2011 Net Profit.................................................................................................................................................. 53
Princes To Acquire AR Industrie Alimentari....................................................................................................................................................... 53
Italy Food & Drink Report Q4 2012
© Business Monitor International Ltd Page 4
Ferrero Invests In Mexican Confectionery Sector............................................................................................................................................... 54
De Cecco Looks To Russia For Growth.............................................................................................................................................................. 55
Stevia's EU Approval Will Spur Product Development ...................................................................................................................................... 55
Market Overview...................................................................................................................................................................................................... 56
Food Processing ................................................................................................................................................................................................. 57
Consumption....................................................................................................................................................................................................... 57
Prepared Food.................................................................................................................................................................................................... 57
Confectionery...................................................................................................................................................................................................... 57
Drink............................................................................................................................................................... 59
Key Industry Trends And Developments .................................................................................................................................................................. 59
Campari Acquires LdM and Enters Rum Sector ................................................................................................................................................. 59
New Tax on Soft Drinks ...................................................................................................................................................................................... 59
Lavazza Considers Franchising for Key Indian Business ................................................................................................................................... 60
Italian Wine Producers Look To Asian Market................................................................................................................................................... 61
Russian Standard Vodka Looking To Italy For Wine .......................................................................................................................................... 62
Market Overview...................................................................................................................................................................................................... 62
Hot Drinks .......................................................................................................................................................................................................... 62
Soft Drinks .......................................................................................................................................................................................................... 62
Alcoholic Drinks ................................................................................................................................................................................................. 63
Mass Grocery Retail ..................................................................................................................................... 64
Key Industry Trends And Developments .................................................................................................................................................................. 64
Conad Investing Following Resilient Performance............................................................................................................................................. 64
Auchan Continues Expansion ............................................................................................................................................................................. 64
Conad Buys Billa Stores As Local Operators Continue To Outperform............................................................................................................... 65
Difficulties In Italian Retailing Highlighted........................................................................................................................................................ 65
Esselunga Results Highlight Price Sensitivity Of Italian Retail ........................................................................................................................... 66
Private Labels Gaining Market Share................................................................................................................................................................. 67
Market Overview...................................................................................................................................................................................................... 68
Table: Structure Of Italy's Mass Grocery Retail Market By Estimated Number Of Outlets, 2003-2010.............................................................. 70
Table: Annual Average Sales Per Outlet By Format (US$mn)............................................................................................................................ 70
Competitive Landscape ............................................................................................................................... 71
Table: Key Players In Italy's Food Sector .......................................................................................................................................................... 71
Table: Key Players In Italy's Drink Sector ......................................................................................................................................................... 72
Table: Key Players In Italy's Mass Grocery Retail Sector.................................................................................................................................. 73
Company Monitor ......................................................................................................................................... 75
Food......................................................................................................................................................................................................................... 75
Gruppo Galbani (Lactalis).................................................................................................................................................................................. 75
Perfetti Van Melle............................................................................................................................................................................................... 76
Gruppo Barilla.................................................................................................................................................................................................... 77
Carapelli Firenze SE........................................................................................................................................................................................... 79
Drink........................................................................................................................................................................................................................ 80
Gruppo Campari................................................................................................................................................................................................. 80
Birra Peroni (SABMiller).................................................................................................................................................................................... 82
Mass Grocery Retail ................................................................................................................................................................................................ 84
Conad ................................................................................................................................................................................................................. 84
Country Snapshot......................................................................................................................................... 86
Italy's Population By Age Group, 1990-2020 (?000) .......................................................................................................................................... 87
Italy's Population By Age Group, 1990-2020 (% of total).................................................................................................................................. 88
Italy Food & Drink Report Q4 2012
© Business Monitor International Ltd Page 5
Italy's Key Population Ratios, 1990-2020 .......................................................................................................................................................... 89
Italy's Rural And Urban Population, 1990-2020 ................................................................................................................................................ 89
BMI Risk/Reward Ratings Methodology...................................................................................................... 90
Table: Rewards................................................................................................................................................................................................... 90
Table: Risks ........................................................................................................................................................................................................ 91
Weighting................................................................................................................................................................................................................. 91
Table: Weighting................................................................................................................................................................................................. 91
BMI Food & Drink Industry Glossary........................................................................................................... 92
Food & Drink........................................................................................................................................................................................................... 92
Mass Grocery Retail ................................................................................................................................................................................................ 92
BMI Food & Drink Forecasting & Sourcing................................................................................................. 94
How We Generate Our Industry Forecasts .............................................................................................................................................................. 94
Sourcing.............................................................................................................................................................................................................. 95Table: Core Views
Table: Western Europe Food & Drink Risk/Reward Ratings Subcategories, Q (scores out of )
Table: Western Europe Food & Drink Risk/Reward Ratings, Q
Table: GDP By Expenditure
Table: Food Consumption Indicators - Historical Data & Forecasts, -
Table: Confectionery Value/Volume Sales - Historical Data & Forecasts, -
Table: Canned Food Value/Volume Sales - Historical Data & Forecasts, -
Table: Frozen Fruit & Vegetables Volume Sales, Production & Trade, -
Table: Snack Foods Volume Sales, Production & Trade, -
Table: Pasta Volume Sales, Production & Trade, -
Table: Meat Volume Sales, Production & Trade, -
Table: Fish Volume Sales, Production & Trade, -
Table: Oils & Fats Volume Sales, Production & Trade, -
Table: Soft Drink Value/Volume Sales - Historical Data & Forecasts, -
Table: Alcoholic Drink Value/Volume Sales - Historical Data & Forecasts, -
Table: Mass Grocery Retail Sales By Format , -
Table: Retail Sales Breakdown By Format Type
Table: Trade Indicators - Historical Data & Forecasts, -
Table: Structure Of Italy's Mass Grocery Retail Market By Estimated Number Of Outlets, -
Table: Annual Average Sales Per Outlet By Format (US$mn)
Table: Key Players In Italy's Food Sector
Table: Key Players In Italy's Drink Sector
Table: Key Players In Italy's Mass Grocery Retail Sector
Table: Rewards
Table: Risks
Table: Weighting

  • China Commercial Vehicle Industry
    Commercial vehicle are usually large trucks, buses or vans used to transport people,  goods and material. China is one of the nations that contributes to over 50% of commercial vehicle production. The industry has grown in leaps and bounds over the couple of years. Even though the growth rates aren’t as impressive as two years [...]
  • The Prospective Market of Drug Eluting Stents
    Drug Eluting Stents are the recent development that’s are now being used frequently for curing narrowed coronary arteries. These stents help to keep the artery open and supply drugs at regular intervals preventing any further obstruction. The stents are usually small scaffolds of wire and are placed in the artery. This has been a welcome [...]
  • Anaesthesia Machine Industry is Flourishing due to an Extensive Customer Base with Therapeutic Needs
    The Anaesthesia Machine Industry comprises of the manufacturers and users of Anaesthesia Machines which are basically workstations or units that assist a person to administer Anaesthesia on the other. It includes plug & play Anaesthesia delivery units (ADUs). The industry also comprises of the various accessories like monitors and information systems and support services involved [...]
  • The Need for an Electric Cars Boosts The Lithium Sulfate Market
    Lithium is a highly demanded material. The popularity of this metal is primarily due to the characteristics of this metal and its compounds. Some of the characteristics of this material are that it has the highest electrochemical potential of all metals, a very high co-efficient of thermal expansion, acting as a viscosity modifier in melts, [...]
  • Tire Roller Industry
    Tire roller is one of the most popular equipment used in the construction industry. A tire roller offers multiple services from building highways, industrial sites, binder courses, wear courses and many more. Tire rollers come with different features like easy adjustment of tyres, flexible ballast, oscillating tires, etc. that facilitates in doing a particular work. [...]
    • The Oil Drilling Rig Industry
    • The Oil Drilling Rig Industry is characterized with a few typical work specific to this industry only. The work begins with the search for new oil basins or construction of wells. During this time the services of drilling contractors and se…

    • HER2-Negative Breast Cancer’s Therapeutic Market
    • HER2-Negative Breast Cancer is the most common form of cancer occurring in women. The long term survival of patients diagnosed with HER2-Negative Breast Cancer depends solely on its early detection as till now there is no medicine that can …

    • The Market of Plate Heat Exchanger
    • Plate heat exchanger is not only very useful but its also easy to maintain, its compact design makes it more efficient, the product is highly cost-efficient and also the materials of this product are easily available. There are some limitat…

    • The Industry of Binding Machines
    • Binding of books and papers is one of the most important aspect of buying and selling books and thus the demand of binding machines. There are different kinds of binding machines available in the market. The binding type determines the bind…

    • The Boom In Women Infertility Market
    • Infertility is an abnormality in the regular functioning of the human reproductive system. Anyone of male or female might be suffering from this issue. Infertility in woman is caused by either a genetical factor or factors such as aging or …

  • Qatar Food and Drink Report Q2 2012
    Published: 01-May-2012        Price: US 1295 Onwards        Pages: 64
    Our outlook for Qatar’s consumer sector – the food and drink sector in particular – remains positive in line with the rosy outlook for the country’s economy. We are currently forecasting GDP growth of 7.9% and 6.9% in 2012 and 2013 respectively and believe that political instability is unlikely to emerge in Qatar, as people are generally satisfied with their quality of life. Apart from some conservative circles which disapprove of recent changes, such as the availability of alcohol or th......
  • South Africa Food and Drink Report Q2 2012
    Published: 01-May-2012        Price: US 1295 Onwards        Pages: 104
    We are relatively positive on private consumption in South Africa, forecasting real growth of 3.3% in 2012, following an estimated 4.8% expansion in 2011. Although our figures suggest a notable slowdown, we highlight that given the bleak outlook for the global economic environment, the numbers are relatively decent. In our view, a number of factors bode well for consumer spending: high nominal wage growth, declining unemployment (albeit slowly, and driven by public sector job creation) and the l......
  • Bahrain Food and Drink Report Q3 2012
    Published: 08-May-2012        Price: US 1295 Onwards        Pages: 74
    Our current outlook on Bahrain’s consumer sector is cautiously optimistic, as consumer confidence looks like it is beginning to regain some strength. Bahrain’s economy will continue gathering steam through 2012, supported by high oil prices, an influx of aid from Saudi Arabia and a gradual recovery in the tourism industry. We forecast real GDP growth of 3.4% in 2012, following an estimated 1.9% in 2011. However, the political crisis will continue to weigh on the economic and consumer outloo......
  • Angola Food and Drink Report Q3 2012
    Published: 15-May-2012        Price: US 1295 Onwards        Pages: 34
    BMI View: Angola has one of the strongest economic growth outlooks in Sub-Saharan Africa, and we are unsurprisingly bullish on the prospects for food, beverage and mass grocery retail sales growth in the country over our forecast period. The continued expansion of the domestic oil industry will be the chief driver of strong economic expansion, with investment in infrastructure (to support the development of the oil sector) also a major contributor. Oil- and export-led economic growth will feed i......
  • Botswana Food and Drink Report Q3 2012
    Published: 15-May-2012        Price: US 1295 Onwards        Pages: 34
    BMI View: Amid solid but unspectacular mining-led economic growth, we expect to see below-trend private consumption growth of 5.5% in 2012 and 2013. In comparison, private consumption growth expanded by an annual average of 7.4% over 2006-2011. There are a number of reasons for the moderation, including base effects, unemployment levels and muted wage growth, and this has fed through into our outlook for Botswana’s food, drink and mass grocery retail sectors. In general, we hold a less positiv......
  • Brazil Food and Drink Report Q3 2012
    Published: 15-May-2012        Price: US 1295 Onwards        Pages: 116
    Although Brazil has plenty to offer to foreign investors, we highlight that the country remains a challenging market in which to invest. High entry barriers are manifested through often conflicting regulatory frameworks across different states, high taxes and local companies aided by state subsidies. Moreover, some of Brazil’s largest and most successful businesses remain firmly in state hands, further raising entry barriers for foreign companies looking to set up shop in the country. Neverth......
  • Mozambique Food and Drink Report Q3 2012
    Published: 15-May-2012        Price: US 1295 Onwards        Pages: 40
    BMI View: We expect robust private consumption growth in Mozambique over the course of our fiveyear forecast period to 2016. As the country’s export sector expands, largely as a result of the ongoing development of its mining sector, private consumption’s overall contribution to GDP will decline. That said, the country’s favourable demographic profile, coupled with rising disposable incomes as the exploitation of natural resource wealth feeds down into the wider economy, mean that we have ......
  • Namibia Food and Drink Report Q3 2012
    Published: 15-May-2012        Price: US 1295 Onwards        Pages: 31
    BMI View: Strong private consumption growth from an already reasonably high base (Namibia is one of the wealthiest countries in Sub-Saharan Africa) is behind our positive outlook for the food, beverage and retail sector in Namibia. We stress that the market does not enjoy the favourable population demographics of some of its regional neighbours, and we are forecasting fairly slow population growth. However, rising incomes will support the continued development of the country’s consumer indust......
  • Vietnam Food and Drink Report Q3 2012
    Published: 15-May-2012        Price: US 1295 Onwards        Pages: 109
    We hold a sanguine outlook on the near-term demand prospects in Vietnam. Tight labour market conditions and waning inflationary pressures will help bolster domestic demand in the coming quarters. On the downside, the Vietnamese consumer is unlikely to be completely sheltered from the external headwinds in the US, UK and China. Demographic shifts and rapid economic growth will fuel a wave of consumer spending across Vietnam, and it is not surprising that the market’s potential is firmly in the ......
  • SERVICES
    Value for Money
    We believe in "optimum utilization of available budget and resources". While servicing our clients' (your) market research requirements, we keep the same approach in focus to help you get the best value for your $$s.
    Ever Growing Inventory
    Ranging from the smallest feasible / required data (datasheets, data facts, SWOT analysis, company profiles, etc) to full research reports that help you make decisions, our inventory is updated almost on a daily basis with the latest industry reports from domain experts that track more than 5000 niche sectors.
    One Stop Solution
    Need a custom research report on medical devices market? Require all available business intelligence on 3D printing industry? Exploring F&B sector of a particular country/region? RnRMarketResearch.com is your one-stop-solution to all market intelligence needs. We not only offer custom research and consulting services, we also "bundle" reports to meet your needs and help you fetch the data analysis you require for your business.
    Dedicated Client Engagement
    Not limited to only "finding" relevant reports for you, our client engagement team dedicates its efforts to understand your "business need" and accordingly maps available research data to help you move forward. Call "your" client engagement executive any time of your day and get your questions answered in order to make the correct business decision.
    Saving Time and Efforts
    Simply share your research requirement details with us and let us do all the hard work to find required intelligence for you. When you add up our "one stop solution" and "dedicated client engagement" services mentioned above, you obviously know the time and effort saving you do by working with us.
    Payment Flexibility
    Working with Fortune 500 organizations, we understand the importance of being flexible for payments. Share your payment terms with us and we will surely match up to them to ensure you get access to required business intelligence data without having to wait for the payment to be done.
    Post-Purchase Research Support
    Have questions after reading a report / datasheet bought through us? Not sure about the methodology used for data available in the research? Talk to us / Share your questions with us and if required, we will connect you with the analyst(s)/author(s) of the report(s) and ensure you get satisfactory answers for the same. Need more data / analysis / report(s) on the topic of your research/project? The RnRMarketResearch.com team is here for you 24X7 to support you with your post-purchase requirements. Subscription Offers & Packages (Get in touch with us for more details - [email protected] / +1 888 391 5441 )
    • Ad Hoc
    • Pay - as - you - go / Bucket Subscriptions
    • Fixed Cost for #of reports
    • Customize / Personalize as per your needs