October 17, 2008

A Czech Republic Food and Drink Report for Q4 2008

Research and Markets (http://www.researchandmarkets.com/research/b2402a/czech_republic_foo) has announced the addition of the "Czech Republic Food and Drink Report Q4 2008" report to their offering.

Czech Republic Food Drink Report provides independent forecasts and competitive intelligence on Czech Republic's food and drink industry.

In the Business Environment Ranking table for Central and East European (CEE)'s food and drink environment, the Czech Republic is found in a much improved second place - which is shared with Slovenia - out of 14 key markets surveyed in the region. The country enjoys stable political and economic environments, supported by a well-established foreign direct investment (FDI) climate and tourism. The Czech Republic also boasts excellent soft and alcoholic consumption per capita, with the levels of soft drinks consumption expected to continue rising strongly in the coming years.

However, in terms of individual segments, beer sales are expected to continue experiencing difficulties, under pressure from non-alcoholic varieties and wine in particular, with the Czech Republic's regional position likely to worsen in coming months. Additionally, the volume sales of non-alcoholic drinks declined by 1.4% in 2007, largely due to higher prices, which represents another threat to the country's regional position.

In fact, the competition and the pressures of price-sensitive consumers in the domestic market are pushing major domestic players to look abroad for growth. In August 2008, although it announced that its first half sales increased by 12% year-on-year (y-o-y) to reach CZK2.55bn (US$166.4mn), Czech food company Hame reported that most of this growth was achieved by its foreign subsidiaries. More significantly, exports to countries where Hame does not have a subsidiary shot up 80% y-o-y, indicating that the company will increasingly rely on foreign markets to achieve future growth.

Nevertheless, the country will remain an attractive destination for food and drinks industry activities. The latest entrant into the canned foods sector is Chinese Shanghai Maling Food Co Ltd, which in May 2008 commenced operations at its new factory. The location, chosen because of Czech tax breaks and the wide availability of meat as a raw ingredient locally, will enable Maling to bring its Chinese food products to numerous Chinese citizens living across Europe. The investment has attracted much attention as the usual direction of food and beverage investment is from west to east.

In other news, despite difficulties facing the beer segment in the country, major Czech brewer Budweiser Budvar announced that its 2007 sales outstripped the market average. In March 2008, the brewer reported a major boost in American exports, which soared by 37% from 8,000 hl in 2006 to 11,000 hl in 2007, due in large part to its distribution agreement with American rival Anheuser-Busch. Similarly, in May 2008, the Plzensky Prazdroj brewer posted a 8.8% growth of its 2007 sales. The brewer's foreign beer sales were 6% higher than in the previous period, and - although domestic volume sales recorded a modest 1% year-on-year growth - its premium and non-alcoholic brands performed well.

Key Topics Covered:

- Central And Eastern Europe Food & Drink Business Environment Ratings

- Czech Republic's Food And Drink Business Environment Rating

- Czech Republic Food & Drink Industry SWOT

- Czech Republic Mass Grocery Retail SWOT

- Macroeconomic Outlook

- Czech Republic - Economic Activity

- Industry Forecast Scenario

- Confectionery

- Canned Food

- Trade

- Industry Developments

- Market Overview

- Food Production

- Leading Players

- Food Consumption

- Agriculture

- Biofuels

- Drink

- Industry Forecast Scenario

- Alcoholic Drinks

- Hot Drinks

- Soft Drinks

- Beer

- Non-Alcoholic Beer

- Wine

- Agriculture At A Glance

- Agricultural Commodity Price

- Retail

- Competitive Landscape

- Key Players

- Deep US Recession Scenario

- Global Scenario

- CEE Food & Drink Scenario

Companies Mentioned:

- Tesco Stores

- Nestle

- Libl & Schwarz

- Rewe


For more information visit http://www.researchandmarkets.com/research/b2402a/czech_republic_foo