This Q4 2008 Pakistan Food and Drink Report Provides Independent Forecasts and Competitive Intelligence on the Industry
Posted on: Tuesday, 4 November 2008, 12:00 CST
Research and Markets (http://www.researchandmarkets.com/research/705316/pakistan_food_and) has announced the addition of the "Pakistan Food and Drink Report Q4 2008" report to their offering.
This Pakistan Food and Drink Report provides independent forecasts and competitive intelligence on Pakistan's food and drink industry.
Pakistan remained firmly rooted to the foot of our Asia Pacific Food & Drink Business Environment Ratings table for Q408, despite recent foreign direct investment (FDI). Pakistan's below-average composite limits score is primarily a product of a weak food and drink market, characterised by very low per capita food, soft drink and alcoholic drink consumption and the weak forecast for the country's food consumption growth. Widespread rural poverty, inadequate transport and labour infrastructure and acute consumer price sensitivity, in addition to an unsettled political situation, provide some of the barriers to investment. On the other hand, Pakistan does offer some commercial opportunities for companies willing to be exposed to higher risk, due to its vast population and the food and drink market immaturity.
One such foreign player is Turkish Coca-Cola bottler Coca-Cola Icecek (CCI), which in June 2008 agreed to acquire a 50% stake in Pakistani soft drinks firm Coca-Cola Beverages Pakistan Ltd (CCBPL) from a number of subsidiaries of US brand parent The Coca-Cola Company (TCCC). The US80mn acquisition is in keeping with CCI's overarching strategy of pursuing both organic and inorganic expansion throughout Central Asia, in a bid to maintain its recent highly impressive growth rates. CCI has been on a rapid expansion drive in recent years, moving into many regional markets. The purchase of a 50% stake in CCBPL - with TCCC holding the remaining 50% - will give CCI access to another 77mn unit cases of sales in 2008, leaving the Turkish firm well poised to exceed 2007 growth in both value and volume terms. CCBPL should also benefit from the Turkish company's expansionist strategy, with expected investment in a production increase.
Nevertheless, political issues continue to overshadow other aspects of Pakistan's development. The transition from military to civilian rule has not been smooth, with the civilian government facing daunting challenges in stabilising the wobbly economy. The economy has been buffeted by rising oil and food prices over the past year, resulting in a serious deterioration in the fiscal and current accounts. Unless these deficits are reined in, and rampant inflation brought under control, there is a risk of yet worse economic dislocations, which will have a major negative impact on consumer confidence. Rising global food prices have already raised questions over Pakistan's ability to feed its population, given that many products are imported.
Consequently, we expect a modest increase in food consumption to 2012. The rise of almost 35% in relation to 2007 levels (in US dollar terms) actually masks a bleaker picture, that of an increase in per capita consumption of just under 17% and an uneven distribution of wealth achieved through steady GDP growth. Nevertheless, the government remains committed to the development of the country's agricultural sector, which should gradually improve living standards in the countryside.
Key Topics Covered:
Business Environment
Food
Drink
Agriculture
At A Glance
Retail
Competitive Landscape
Mass Grocery Retail
Asia Pacific Food & Drink
Scenario
Appendix
Companies Mentioned:
- Hilal Confectionery
- Nestle Pakistan
- Unilever Pakistan
- Murree Brewery
- Coca-Cola Beverages Pakistan Limited (CCBPL)
- Tapal Tea
- Mass Grocery Retail
- Utility Stores Corporation (USC)
For more information visit http://www.researchandmarkets.com/research/705316/pakistan_food_and
Source: Business Wire
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