Hungary Food and Drink Report Q3 2009

Hungary Food and Drink Report Q3 2009

Published By: Business Monitor International
June 2009
R302-6632
Online Download $495.00

Description

In BMI’s Food and Drink Ratings for Q309, Hungary no longer occupies pole position, having lostthe top spot to Russia. The key reasons behind this change are the declining (and ageing) populationnumbers and the rapidly deteriorating economic outlook. Nevertheless, the country continues to offeran attractive regulatory environment, while its per capita food and beverage consumption levels arealso among the highest in the region. Therefore, those factors will serve to uphold Hungary’s matrixstanding, albeit in the longer term, although more favourable conditions and market growth potentialof other Central and Eastern Europe (CEE) countries will mean increasing challenges for Hungariancompanies and foreign direct investment (FDI).

In order to protect themselves from such factors, larger local companies are increasingly lookingabroad for expansion. To this end, in April 2009, Fornetti - the leading bakery firm in Hungary -revealed that its Bulgarian franchise will open in autumn 2009. The EUR6mn (US$7.96mn) plant isexpected to increase Bulgarian sales to 600 tonnes per month, up by around one-third of the currentdistribution capacity, and - more importantly - eliminate its reliance on imports from the parentcompany. Similarly, UK beverages conglomerate Diageo revealed that the Hungarian premiumliqueur Zwack is to be launched in the US, as the company attempts to penetrate new markets.

On the domestic front, retail volumes are falling, although - in January 2009 - the Central StatisticalOffice (KSH) announced the first marginal increase in six months. On a year-on-year (y-o-y) basis,sales of food, tobacco and beverages were 1.5% down in January 2009, although unchanged inrelation to the previous month. BMI estimates that mass grocery retail (MGR) sales in Hungary in thecurrent year will be lower than in the previous 12-month period, as adverse economic conditions resultin higher levels of purchases within the discount and private-label sectors.

In terms of the wider operating environment, the recently appointed Prime Minister of Hungary (whopreviously served as the Minister of Economy) is planning a range of fiscal reform measures, whichare likely to be publically unpopular, but are necessary to respond to the economic crisis. Hungary isheading for a deep recession in 2009, with BMI subsequently revising our GDP growth forecast downto -3.4%, which will result in lower purchases of non-essential food and beverages. A key factornegatively impacting the Hungarian economy in 2009 will be the recession in all key external tradingpartners, which will have a marked effect on Hungary’s highly export-oriented agricultural sector.

Table of Contents

Executive Summary: SWOT Analysis; Hungary Food Industry SWOT; Hungary Drink Industry SWOT; Hungary Mass Grocery Retail Industry SWOT; Business Environment Ratings; CEE Food & Drink Business Environment Ratings
Table: Regional Food & Drink Business Environment Ratings: Hungary’s Food & Drink Business Environment Rating; Macroeconomic Outlook
Table: Hungary - Economic Activity: Food; Industry Forecast Scenario; Food Consumption
Table: Food Consumption Indicators - Historical Data & Forecasts: Confectionery
Table: Confectionery Consumption Indicators - Historical Data & Forecasts: Canned Food
Table: Canned Food Value/Volume Sales - Historical Data & Forecasts: Trade
Table: Food, Drink & Tobacco Trade Indicators (US$mn) - Historical Data & Forecasts: Industry Developments; Market Overview; Food Production; Leading Players; Food Consumption; Confectionery; Canned Food; Trade
Table: Trade Of Food, Beverages & Tobacco As % Of Total Trade: Agriculture; Sugar Production; Drink; Industry Forecast Scenario; Alcoholic Drinks
Table: Alcoholic Drinks Consumption Indicators - Historical Data & Forecasts: Soft Drinks
Table: Soft Drinks Consumption Indicators - Historical Data & Forecasts: Hot Drinks
Table: Hot Drinks Consumption Indicators (US$mn) - Historical Data & Forecasts: Industry Developments; Market Overview; Alcoholic Drinks; Beer; Wine; Spirits; Soft Drinks
Table: Volume Consumption Of Soft Drinks By Category (mn litres)
Table: Value Consumption Of Soft Drinks By Category (US$mn): Hot Drinks; Mass Grocery Retail; Industry Forecast Scenario
Table: Mass Grocery Retail Value Sales By Format (US$bn) - Historical Data & Forecasts
Table: Grocery Retail Sales By Format (%) - Historical Data And Forecasts: Industry Developments; Market Overview
Table: Private-Label Market Share By Mass Grocery Retail Operator As % Of Total: Leading Retailers
Table: Structure Of The Mass Retail Grocery Market By Estimated Number Of Outlets
Table: Structure Of The Mass Retail Grocery Market By Value (US$bn)
Table: Average Annual Sales Per Outlet By Format (US$mn): Competitive Landscape; Key Players; Food & Drink
Table: Leading Companies in Hungary's Food & Drink Sector 2008 (estimates): Mass Grocery Retail
Table: Key Players - Hungary's Mass Grocery Retail Sector (2008): Company Analysis; Food; Nestle Hungary Kft; Fornetti Group; Cerbona; Drink; Sió-Eckes; Heineken Hungária Breweries; Dreher Breweries; Borsod Breweries; Coca-Cola Beverages Magyaroszág Kft; Mass Grocery Retail; Tesco; CBA Kereskedelmi; SPAR; 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: Hungary 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, 2001-2006
Table: Consumer Expenditure, 2000-2012 (US$)
Table: Average Annual Wages, 2000-2012: Food & Drink Business Environment Ratings; Ratings Methodology; Ratings Overview; Ratings System; Indicators
Table: Limits Of Potential Returns
Table: Risks To Realisation Of Potential Returns: Weighting
Table: Weighting: BMI Food & Drink Industry Glossary; Food & Drink; Mass Grocery Retail; BMI Food & Drink Forecasting And Sourcing; How We Generate Our Industry Forecasts; Sourcing

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