Australia Food and Drink Report Q3 2009

Australia Food and Drink Report Q3 2009

Published By: Business Monitor International
June 2009
R302-6476
Online Download $495.00

Description

Australia's economic prospects have continued to deteriorate as a result of the global slump, with thishaving a marked effect on the country’s food and drink sector, as discussed in BMI’s recently publishedAustralia Food & Drink Report for Q309. While the economy will receive a boost from the wide rangeof policy measures unveiled in the first months of 2009, these are unlikely to prevent it from slipping intoa more prolonged period of downturn - with the slowdown led by falling rates of private consumptiongrowth and investment.

As discussed in the report, Australian retail sales rose by a seasonally-adjusted 0.2% month-on-month (mo-m) in January. Sales were supported by the lag from an AUD10.4bn (US$7.2bn) fiscal stimulusmeasure, in the form of cash handouts, distributed in December. The second round of cash payments,AUD12.3bn (US$8.5bn) - distributed in mid-March - is expected to have a similar impact on salesgrowth in March and April. However, it is widely believed that the retail sector will not report the sort ofgrowth that the package was designed to trigger, as most consumers have not spent the majority of thepayment. In fact, according to local estimate, only 25% of the December handout was spent, even as thegovernment ramps up measures to encourage this course of action as a means of helping lift the localeconomy. As Australian retailers wait to see what impact a second cash handout will have on consumerspending, the sector continues to brace itself for what looks set to be a challenging 2009, as consumerspending begins to track plummeting consumer confidence and the economic slowdown continues toweigh on private consumption. In another bad sign, unemployment reached 5.2% in February, Australia'shighest level in four years.

Despite this poor state of the economy and the retail sector, in March US wholesale retail giant Costcoconfirmed that it is on course for Australian retail market entry in 2009, revealing that a Melbourne storeis due to open its doors in July. Many expected Costco to delay its plans for the Australian market, asAustralia's unique population demographics had already hampered the company in terms of competitivereal estate procurement. Further risks were present in terms of the already fiercely competitive nature ofthe market, both consumer and wholesale, and the weakness of Costco's brand in the country relative toits peers. Exacerbating these existing concerns, weak consumer confidence was viewed by many as a dealbreaker. Costco, however, has argued that weak trading conditions could be conducive to the growth of itsformat.

Another retailer seeing an opportunity in the downturn is market leader Woolworth’s. The retailer hassaid that it hopes to benefit from the current crisis by increasing its property portfolio as a number ofsmaller retail chains collapse. According to the report in the Australian Financial Review, Woolworthshas said that it could also take advantage of its relative economic strength by purchasing property it wouldthen try to sell at a later date, highlighting the fact that there will always be winners and losers duringsuch downturns.

Table of Contents

Executive Summary: Executive Summary
SWOT Analysis: Australia Food SWOT; Australia Drink SWOT; Australia Mass Grocery Retail SWOT; Business Environment; Asia Pacific Food & Drink Business Environment Ratings
Table: Asia Pacific Food & Drink Business Environment Ratings Q3 2009: Australia Food & Drink Business Environment Rating; Macroeconomic Outlook
Table: Australia - Economic Activity: Food; Industry Forecast Scenario; Food Consumption
Table: Food consumption indicators - Historical Data & Forecasts: Confectionery
Table: Confectionery Indicators - Historical Data & Forecasts: Canned Food
Table: Canned Food Indicators - Historical Data & Forecasts: Trade
Table: Australia Food & Drink Trade Indicators - Historical Data & Forecasts: Industry Developments; Market Overview; Food Processing; Functional Foods; Confectionery; Canned Food; Trade; Agriculture; Organic Farming; Drink; Industry Forecast Scenario; Alcoholic Drinks
Table: Australian Drinks Indicators - Historical Data & Forecasts: Hot Drinks
Table: Australia Hot Drinks Sector Value Sales (US$mn) - Historical Data & Forecasts: Soft Drinks
Table: Australian Drinks Indicators - Historical Data & Forecasts: Industry Developments; Market Overview; Alcoholic Drinks
Table: Recorded Per-Capita Alcoholic Drink Consumption (Litres)
Table: Alcoholic Drinks Sales Breakdown in Australia: Beer
Table: Australian Beer Market - Market Share By Company (%): Wine; Hot Drinks; Soft Drinks
Table: Soft Drinks Sales Breakdown in Australia: Mass Grocery Retail; Industry Forecast Scenario
Table: Australia MGR Sales by Format (US$bn) - Historical Data & Forecasts
Table: Grocery Retail Sales By Format (%) - Historical Data And Forecasts: Industry Developments; Market Overview; Leading MGR Players
Table: Australia MGR Market Share (%) by Retailer - 2008 Estimates
Table: Structure Of Australia’s Mass Grocery Retail Market By Estimated Number Of Outlets
Table: Structure Of Australia’s Mass Grocery Retail Sector - Value By Format (US$bn)
Table: Estimated Value Of Sales Per Outlet Type (US$mn): Competitive Landscape; Key Players; Food and Drink
Table: Key Players in Australia's Food & Drink Sector: Mass Grocery Retail
Table: Key Players in Australia's Mass Grocery Retail Sector: Company Analysis; Mass Grocery Retail; Aldi; Woolworths; Coles; FoodWorks; Food; National Foods; Dairy Farmers; Heinz Australia; Cadbury; Drink; Foster’s Group; Lion Nathan; Coopers Brewery; Coca-Cola Amatil (CCA); Appendix; Commodity Price Forecasts; Corn
Table: Corn, 2005-2010: Soybean
Table: Soybean, 2005-2010: Rice
Table: Rice, 2005-2010: Wheat
Table: Wheat, 2005-2010: Cocoa
Table: Cocoa, 2005-2010: Coffee
Table: Coffee, 2005-2010: Milk
Table: Milk, 2005-2010: Sugar
Table: Sugar, 2005-2010: Country Snapshot: Australia Demographic Data
Section 1: Population
Table: Demographic Indicators, 2005-2030
Table: Rural/Urban Breakdown, 2005-2012
Section 2: Education and Healthcare
Table: Education, 2002-2005
Table: Vital Statistics, 2005-2030
Section 3: Labour Market and Spending Power
Table: Employment Indicators, 2001-2006
Table: Consumer Expenditure, 2000-2012 (US$)
Table: Average Annual Wages, 2000-2012: Food and Drink Business Environment Ratings; Ratings Methodology; Ratings Overview; Limits Of Potential Returns; Risks To Realisation Of Potential Returns; Weighting; BMI Food and Drink Industry Glossary; Food and Drink; Mass Grocery Retail; BMI Food and Drink Forecasting And Sourcing; How We Generate Our Industry Forecasts; Sourcing

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