France Food and Drink Report Q3 2009
Published By: Business Monitor International
June 2009
R302-6631
Online Download $495.00
Description
France is home to four of the world’s largest drinks firms - Pernod Ricard, Belvedere, LVMH andRémy Cointreau. However, all four have been hit hard by the global economic downturn, and for severalthe downturn has come at a particularly inopportune time.
Rémy Cointreau reported an 11.6% decline in sales for the 12 months to the end of March 2009. Full yearsales fell to EUR714mn with the firm hit by a 41% slide in sales in the fourth quarter of the year. Thismassive fall in Q4 was partly attributed to the exiting of the Maxxium distribution partnership, which intotal led to a EUR50mn reduction in sales for the period. However, it was also hit by wholesalerdestocking and by a fall in demand for premium drink varieties.
Rémy Cointreau has established a numerous set of bilateral agreements to replicate its distribution profileunder Maxxium, including a deal with William Grant & Sons in the UK, a partnership with Roust inRussia, and an agreement with Suntory in Australia. However, there is a strong possibility that theseagreements will take time to bed in, and this may lead to a difficult transition period. These difficultiescould not have come at a worse time, having coincided with the economic downturn which has had aparticularly marked impact on the super- and ultra-premium sectors in which Rémy Cointreau is focused.
Meanwhile, in the first quarter of 2009 Pernod Ricard raised EUR1bn through a rights issue, and a furtherUS$575mn through the sale of its Wild Turkey Bourbon brand to Italy-based Gruppo Campari. Themoney is to be primarily used to pay down debts, which have ballooned following the EUR5.7bnacquisition of Absolut maker Vin & Spirit. This move pushed the firm’s net debt to EUR12.96bn, whichis larger than the firm’s market capitalisation and almost 80% higher than the net debt of rival drinks firmDiageo. Sales of Absolut have been disappointing since the onset of the downturn and it can be arguedthat this move was poorly timed, having led to a massive rise in debts shortly before global creditconditions worsened.
LVMH’s drinks business, which is centred on champagne and super-premium spirits, has also been hithard by the economic downturn. In the first quarter of 2009 the unit’s sales declined by a massive 22% inorganic terms. This is in line with the Comité Interprofessionnel du Vin de Champagne reporting thatchampagne sales fell by 34% in the first two months of 2009. During the quarter, rumours emerged thatthe world’s largest drinks firm Diageo is eyeing up a bid for LVMH’s wine and spirits arm, and with thiskind of sales contraction, LVMH must be wondering whether its drinks division is worth holding on to.
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Table of Contents
- Executive Summary
- SWOT Analysis
- France Food Industry SWOT
- France Drink Industry SWOT
- France Mass Grocery Retail Industry SWOT
- Business Environment
- Western Europe Food & Drink Business Environment Ratings
- Table: Western Europe Food & Drink Business Environment Ratings Q3 2009
- France’s Food & Drink Business Environment Ratings
- Macroeconomic Outlook
- Table: France - Economic Activity
- Food
- Industry Forecast Scenario
- Food Consumption
- Table: France Food Consumption Indicators - Historical Data & Forecasts
- Prepared Food / Canned Food
- Table: Canned Food Value/Volume Sales - Historical Data & Forecasts
- Confectionery
- Table: Confectionery Value/Volume Sales - Historical Data & Forecasts
- Private Label
- Functional Food
- Trade
- Table: Food & Drink Trade Balance - Historical Data & Forecasts
- Industry Developments
- Market Overview
- Food Production
- Leading Players
- Food Consumption
- Prepared Food/Canned Food
- Confectionery
- Trade
- Agriculture
- Sugar Production
- Organic Farming
- Drink
- Industry Forecast Scenario
- Hot Drinks
- Table: Hot Drink Value Sales - Historical Data & Forecasts
- Soft Drinks
- Table: Soft Drink Value Sales - Historical Data & Forecasts
- Alcoholic Drinks
- Table: Alcoholic Drink Value/Volume Sales - Historical Data & Forecasts
- Industry Developments
- Market Overview
- Soft Drinks
- Hot Drinks
- Alcoholic Drinks
- Beer
- Wine
- Spirits
- Mass Grocery Retail
- Industry Forecast Scenario
- Table: France Mass Grocery Retail Market, Sales By Format (US$bn) - Historical Data & Forecasts
- Table: Grocery Retail Sales By Format
- Industry Developments
- Market Overview
- Leading Players
- Table: Structure of France's MGR Market - Estimated Number of Outlets
- Table: Structure of France MGR Market - Sales Value by Format (US$bn)
- Table: Average Value of Sales per Outlet (US$mn) by Format
- Competitive Landscape
- Key Players
- Food
- Table: Key Players in France's Food Sector
- Drink
- Table: Key Players in France's Drink Sector
- Mass Grocery Retail
- Table: Key Players in France's Mass Grocery Retail Sector
- Company Analysis
- Food
- Groupe Danone
- Nestlé France
- Drink
- LVMH Group (Moët Hennessy Louis Vuitton)
- Pernod Ricard
- Mass Grocery Retail
- Carrefour
- Groupe Auchan
- Groupe Casino
- 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: France Demographic Data
- Section 1: Population
- Table: Demographic Indicators, 2005-2030
- Table: Rural/Urban Breakdown, 2005-2030
- Section 2: Education and Healthcare
- Table: Education, 2002-2005
- Table: Vital Statistics, 2005-2030
- Section 3: Labour Market and Spending Power
- Table: Employment Indicators, 2000-2005
- Table: Consumer Expenditure, 2000-2012 (US$)
- Table: Average Annual Wages, 2000-2012
- Food & Drink Business Environment Ratings
- Ratings Methodology
- Ratings Overview
- Ratings System
- Indicators
- Limits of Potential Returns
- Risks to Realisation of Potential Returns
- Weighting
- Table: Weighting
- BMI Food & Drink Industry Glossary
- Food & Drink
- Mass Grocery Retail
- BMI Food & Drink Forecasting & Sourcing
- How We Generate Our Industry Forecasts
- Sourcing
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