Romania Food and Drink Report Q3 2009
Published By: Business Monitor International
June 2009
R302-6634
Online Download $495.00
Description
In BMI’s Food and Drink Business Environment Ratings Romania continues to improve its position, nowbeing placed fourth, out of the 14 markets surveyed in the Central and Eastern European (CEE) region.Despite facing recession, Romania is expected to fare relatively better, economically speaking, than mostCEE countries, which have consequently received lower scores for the quarter. However, Romania’s foodand drinks market will continue to be hampered by low per capita incomes, large sections of rural population,and its negative food and drinks trade balance. Over the next five years, the value of food consumption atconsumer prices is expected to increase by 48.12% in local currency terms, to reach ROL83.2bn(US$35.9bn), although the remainder of 2009 and into 2010 are likely to be more challenging.
In fact, a number of Romanian companies, in both the food and drink and the mass grocery retail (MGR)markets, have started to feel the effects of economic downturn. Elit Cugir, the leading charcuterie producerin Transylvania and among the top ten nationally, announced that job cuts would be considered the lastmeasure of protection against a continued sales decline and rising prices of raw materials. President of PepsiAmericas Romania was quoted as saying that he expected the single-digit growth of its sales for 2009, asthe company moves into production of non-carbonates. Similarly, water bottler Apemin Tusnad is notexpecting the repeat of a 14% year-on-year (y-o-y) value sales increase posted in 2008.
The performance of the food and drink markets will also depend on the wider retail climate. Given that thecountry's MGR sector was hit by a sharper than expected fall in consumer confidence, supermarkets andhypermarkets will struggle to retain their customers, who are increasingly seeking cheaper alternatives fromthe discount sector. In fact, according to a survey conducted by newspaper Ziarul Financiar (ZF), sales ofEUR100 per square metre registered by hypermarkets in 2006 (second only to France) are history. Demandfor cheaper private-label goods has picked up markedly, while discounters are also benefiting from theirability to set up in urban areas (unlike hypermarkets) and residential neighbourhoods, which reducestransportation expenses. The MGR market is expected to experience additional changes in the course of2009. For example, existing supermarket operators will focus on smaller formats in order to address changingneeds of their consumers, while smaller and independent retailers are likely to fall prey to larger companies,all of which will affect the market penetration of foodstuffs and beverages.
Nevertheless, the longer-term potential of the Romanian market - in addition to the increasing saturation ofWestern European markets - is one of the key reasons for continued investment in the country. To this end,global food and beverage giant Unilever recently entered Romania's ice cream market, increasingcompetition to domestic and multinational players, which include Nestlé Romania. Still, both companieshave the financial clout to weather the competition as well as the economic storm, even if it requires that theyreduce their margins for the time being.
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Table of Contents
- Executive Summary
- SWOT Analysis
- Romania Food Industry SWOT
- Romania Drink Industry SWOT
- Romania Mass Grocery Retail Industry SWOT
- Business Environment
- CEE Food & Drink Business Environment Ratings
- Emerging Europe Food & Drink Business Environment Ratings Q3 2009
- Romania’s Food & Drink Business Environment Ratings
- Macroeconomic Outlook
- Q209 Economic Outlook
- Table: Romania - Economic Activity, 2005-2013
- Food
- Industry Forecast Scenario
- Food Consumption
- Table: Romania Food Consumption Indicators - Historical Data and Forecasts
- Confectionery
- Table: Romania Confectionery Value/Volume Sales (US$mn, unless otherwise stated) - Historical Data and Forecasts
- Canned Food
- Table: Romania Value/Volume Sales of Canned Food - Historical Data and Forecasts
- Trade
- Table: Romania Food, Drink & Tobacco Sectoral Trade Balance (US$mn) - Historical Data and Forecasts
- Industry Developments
- Market Overview
- Food Production
- Leading Players
- Food Consumption
- Confectionery
- Canned Food
- Trade
- Agriculture
- Dairy Industry
- Organic Farming
- Drink
- Industry Forecast Scenario
- Alcoholic Drinks
- Table: Romania Alcoholic Drinks Value/Volume Sales - Historical Data & Forecasts
- Soft Drinks
- Table: Romania Soft Drinks Value/Volume Sales - Historical Data & Forecasts
- Hot Drinks
- Table: Romania Hot Beverages Value Sales (US$mn) - Historical Data & Forecasts
- Industry Developments
- Market Overview
- Alcoholic Drinks
- Beer
- Wine
- Spirits
- Soft Drinks
- Table: Romania - Volume Consumption of Soft Drinks by Category (mn litres)
- Table: Romania - Value Consumption of Soft Drinks by Category (US$mn)
- Hot Drinks
- Mass Grocery Retail
- Industry Forecast Scenario
- Table: Romania Mass Grocery Retail Sales By Format (US$bn) - Historical Data and Forecasts
- Table: Romania Grocery Retail Sales By Format (%) - Historical Data And Forecasts
- Industry Developments
- Market Overview
- Main Players
- Table: Structure Of Romania’s Mass Grocery Retail Sector By Estimated Number Of Outlets
- Table: Structure of Romania's Mass Grocery Retail Sector - Estimated Sales Value By Format (US$bn)
- Competitive Landscape
- Key Players
- Food And Drink
- Table: Key Players in Romania's Food & Drinks Sector, 2008
- Mass Grocery Retail
- Table: Key Players in Romania's Mass Retail Grocery Sector (2008)
- Company Analysis
- Food
- Kandia-Excelent
- Vel Pitar
- Nestlé Romania
- Drink
- Quadrant Amroq Beverages SA (QAB)/Pepsi Americas Romania
- Brau Union Romania (Heineken)
- SABMiller Romania
- InBev Romania
- Mass Grocery Retail
- Rewe Romania
- Hyparlo/Carrefour
- Metro Cash & Carry Romania
- Appendix
- Commodity Price Forecasts
- Corn
- Table: Corn, 2005-2010
- Soybean
- Table: Soybean, 2005-2010
- Rice
- Table: Rice, 2005-2010
- Wheat
- Table: Wheat, 2005-2010
- Cocoa
- Table: Cocoa, 2005-2010
- Coffee
- Table: Coffee, 2005-2010
- Milk
- Table: Milk, 2005-2010
- Sugar
- Table: Sugar, 2005-2010
- Country Snapshot: Romania Demographic Data
- Section 1: Population
- Section 2: Education And Healthcare
- Table: Vital Statistics, 2005-2030
- Section 3: Labour Market And Spending Power
- Table: Employment Indicators, 2001-2006
- Table: Consumer Expenditure, 2005-2010 (US$)
- Table: Average Annual Wages, 2006-2010
- Food & Drink Business Environment Ratings
- Ratings Methodology
- Ratings Overview
- Ratings System
- Indicators
- Limits Of Potential Returns
- Risks To Realisation Of Potential Returns
- Weighting
- 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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