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Research and Markets: Independent Forecasts and Competitive ...

http://www.forbes.com/businesswire/feeds/businessw [2008-8-12]

Tag : Food And Drink
Research and Markets(http://www.researchandmarkets.com/research/99b474/belarus_food_and_d)has announced the addition of the "Belarus Food and Drink Report Q32008" report to their offering.

Despite its reputation as a poor place to do business, theBelarusian food and drink sector has been catching the eye offoreign investors, as discussed in our brand new quarterly BelarusFood & Drink Report. The beer market in particular has beenattracting considerable attention, thanks to its strong growthpotential. Like almost all industries in Belarus, there isconsiderable state involvement in the beer sector, with thePresident having described its control as a matter of 'foodsecurity.' Nevertheless, some companies have been dipping theirtoes in. First, in January 2008, Baltic Beverages Holding (BBH)reported that it will invest around US$6mn throughout 2008 in theBelarusian brewery Olivaria, in which it holds a 30% stake.According to BBH these investments will primarily be indistribution, production development and staff training. BBH hassaid that its strategy for Belarus is to secure market leadership,as well as increasing exports, with Ukraine and Russia the maintarget countries.

Then, in May 2008, Dutch brewing giant Heineken announced itsacquisition of the Rechitsa brewery, which has now given it aproduction share of 24% in the local beer market. This dealrepresents a EUR6.4mn (US$9.9mn) investment by Heineken, which willeventually hold a 51% stake in the brewer. Located in the town ofRechitsa 280km from Minsk, the brewery has a technical capacity of525,000hl and last year sold 285,000hl, representing a nationalproduction share of 8%. Rechitsa also operates a maltery with a10,000- tonne capacity. This followed Heineken's acquisition ofSyabar brewery in December 2007.

The beer market is expected to experience the strongest growth interms of the alcoholic drinks sub-sector. According to ourforecasts, sales of alcoholic drinks are forecast to increase by37.5% in value terms between 2007 and 2012, reaching US$426.9mn bythe end of the forecast period. Per capita alcohol consumption willrise significantly by 41% to reach US$45.2, as disposable incomesrise and consumers switch over to higher value drinks. A move awayfrom homemade and illegally produced drinks will also play a majorrole in this increase. With disposable incomes rising and moreconsumers switching from traditional spirits to beer, this will bea major driver behind the growth of this sub-sector.

A major driver behind all growth in the food and drink sector willbe the country's positive economic outlook. Going forward, weanticipate that GDP growth will come in at 7.8% this year, downonly slightly from 8.2% in 2007. We see growth remaining robustthroughout our five-year forecast period, averaging 7.1%. Duringthis period foreign investment is expected to be a major driver ofgrowth, as the political leadership had adopted a more positiveattitude towards foreign investors, and there have been amendmentsto legislation allowing for the opening of previously heavilystate-controlled sectors. With international food and drinkoperators continuing to look for new emerging markets to invest inas a means of pursuing growth, the Belarusian market shouldcontinue to benefit from this trend.

Key Topics Covered:

-SWOT Analysis

--Belarus Food And Drink Industry SWOT

--Macroeconomic Outlook

--Food

--Industry Forecast Scenario

--Food Consumption

--Trade

-Industry Developments

--Market Overview

--Agriculture

--Dairy

--Food Processing

--Canned Food

--Confectionery

--Drink

--Regional Overview: The Beer Industry in the CIS Region

--Industry Forecast Scenario

--Industry Developments

--Market Overview

--Alcoholic Drinks

--Soft Drinks

--Hot Drinks

--Agriculture At A Glance

--Agricultural Commodity Price

--Retail

--Industry Forecast Scenario

--Industry Developments

--Market Overview

-Competitive Landscape

--Key Players

--Food and Drink

--Mass Grocery Retail

--Company Analysis

--Food

--Bellakt

--Drink

--Krinitsa

--PepsiCo

--Mass Grocery Retail

--Sedmoi Kontinent - Pro-Store

-Appendix

--Food & Drink

--Mass Grocery Retail

--BMI Food & Drink Forecasting & Sourcing

--How We Generate Our Industry Forecasts

--Sourcing

Companies Mentioned:

- Bellakt

- Krinitsa

- PepsiCo

- Sedmoi Kontinent - Pro-Store

For more information visithttp://www.researchandmarkets.com/research/99b474/belarus_food_and_d


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