Germany Food and Drink Industry Update Quarter 4 2011

$ 1 088 - August 2012 - by Business Monitor International - 125

Summary

Table of Contents

View Report

Search Inside

Data Series

Germany’s economic outlook remains clouded by the continued risk of a eurozone break-up scenario,
which would lead to an immediate collapse in fixed investment and hit external demand for German
exports very hard. Indeed, we note that our latest economic growth projections for Germany show that we
do not see a meaningful economic rebalancing process towards higher household consumption (and
away from export-led growth) taking shape in Germany over the medium term. This will prevent a more
rapid rise in final household consumption expenditure, while leaving the economy highly vulnerable to
the very weak growth trajectory for the wider eurozone economy over the coming 10 years.
Headline Industry Data (local currency)
- 2012 per capita food consumption = +2.6%; forecast to 2016 = +15.2%
- 2012 alcoholic drink sales = +0.9%; forecast to 2016 = +4.2%
- 2012 soft drink sales = +2.8%; forecast to 2016 = +16.4%
- 2012 mass grocery retail sales = +4.7%; forecast to 2016 = +27.8%
Key Company Trends
Müller and PepsiCo Team Up for Push into US Yoghurt Market: Despite criticism that it has lost sight of
its traditional strengths, US giant PepsiCo continues to advance into healthier categories, with the firm
announcing in July 2012 its new yoghurt offering for the US market. Through a joint venture with
Germany’s Müller, the firm is to launch three new products: Müller Corner, Müller FrutuUp and Müller
Greek Corner. The operation is set to take advantage of PepsiCo’s existing chilled distribution network,
honed through its juice brand Tropicana, and the dairy expertise of Müller
Metro Offloads UK Cash & Carry Business: Germany-based retail giant Metro Group recently
announced the sale of its UK wholesale arm Makro UK to local rival Booker in a cash and shares deal..
The move is a response to weak performance at the unit, which has been hit by changing consumption
patterns and the incursion of supermarket groups into the convenience channel. Over the last four years,
Metro’s cash-and-carry unit (from which it generates 46% of its revenues) has suffered owing to poor
performance in the domestic market and slowing sales in other Western European markets. BMI believes
a trend away from cash-and-carry outlets is structural rather than cyclical, with leading grocery retailers
expanding their operations into the convenience channel and reducing the base of independent outlets
upon which Metro is reliant. This is likely to prompt consolidation within the sector, and the tie-up
between Booker and Metro may become part of a wider trend.



Key Risks To Outlook

Continuing Eurozone Uncertainty: The single-biggest risk to our outlook is an adverse outcome to the
eurozone sovereign debt crisis and the further collapse of euro area demand for German goods. In the
event of a eurozone ‘exit’ by a larger member state over the next 12 months, the resulting capital flight
from the periphery to the eurozone core would in all likelihood lead to sharp nominal currency
appreciation for Germany, eroding the country’s export competitiveness and leading to a sudden
downward correction to the trade in goods surplus.
In the absence of political cohesion and resolve to address the structural shortcomings of the European
Monetary Union, we believe that any short-term measures designed to address the crisis will prove little
more than temporary stopgaps, continuing to weigh on household and business sentiment, in turn, placing
downside pressure on Germany’s growth outlook.

BUY THIS REPORT

ASK INFO SPECIALIST 24/7
Alexandra - online now
(866) 682 9815
Send Message @Alexandra

Share

Food Retailing Industry in Germany : Latest Reports

Global Database of Specialty Food Stores

Global Database of Specialty Food Stores

  • $ 4 376
  • Industry report
  • April 2013
  • by Global Research & Data Services

This company database includes the details of more than 21600 specialty food stores in the world. The database contains the following information about the companies: Company name Contact details Contact ...

Global Database of Grocery Stores

Global Database of Grocery Stores

  • $ 3 312
  • Industry report
  • April 2013
  • by Global Research & Data Services

This company database includes the details of nearly 13000 grocery stores in the world. The database contains the following information about the companies: Company name Contact details Contact persons ...

Global Database of Supermarkets and Other Grocery Stores

Global Database of Supermarkets and Other Grocery Stores

  • $ 3 046
  • Industry report
  • April 2013
  • by Global Research & Data Services

This company database includes the details of nearly 11000 supermarkets and other grocery stores in the world. The database contains the following information about the companies: Company name Contact ...


Food Retailing Industry in Germany : Latest Downloads

Food Retailing Market Statistics

Food Retailing Market Statistics

  • Industry report
  • December 2012
  • 3 pages
  • by Market Research Publisher

Food Retailing Business Analysis

Food Retailing Business Analysis

  • Industry report
  • July 2012
  • 54 pages

... Spending promotion) 12 central food retail company limited 13 how to fulfill their needs Central food retail company limited vision of central food retail To be recognized as the innovative ...

Food Retailing Business Overview

Food Retailing Business Overview

  • Industry report
  • July 2012
  • 30 pages
  • by Governmental Agency

... Does the grocery store industry use huff modeling Most us grocers use huff models to measure potential viability of new store locations.^ Probabilistic modeling captures the Dispersion ...


Related Market Segments :

Grocery Retail
Grocery Retail

Privacy Policy by TRUSTe
ReportLinker is a professional search engine that provides an easy access to 1,2 million market research reports and industry statistics published by 200,000 authoritative sources.