DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/05090c/greece_food_and_dr) has announced the addition of the "Greece Food and Drink Report Q1 2012" report to their offering.
Greece Food and Drink Report provides industry professionals and strategists, corporate analysts, food and drink associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Greece's food and drink industry.
Very challenging economic conditions remain in place in Greece. The governments fiscal consolidation programme has many more years to run, while double-digit unemployment will become a lasting feature of Greeces post-crisis economic environment. In the consumer sector, the impact is compounded by rising taxes, including an increase in value-added tax from 13% to 23% in September 2011. Furthermore, the Greek economy will remain mired in depression through 2012 as deep fiscal retrenchment and internal devaluation take a damaging toll. All this will continue to impact on spending in the food and drink sector and inevitably change how Greek consumers shop and consume.
Headline Industry Data (local currency)
- 2011 per capita food consumption = -6.2%; forecast to 2016 = +2%
- 2011 alcoholic drink value sales = -2.8%; forecast to 2016 = +5.1%
- 2011 soft drink value sales = -2.9% ; forecast to 2016 = +1.6%
- 2011 mass grocery retail sales = -7.1%; forecast to 2016 = +6.2%
Key Company Trends
Greek Consumers Change Food Consumption Patterns: In response to the current economic crisis, retailers and manufacturers have noted that Greek consumers are spending less, sticking to their planned shopping lists, avoiding impulse purchases and increasingly turning towards private label items. Another trend to note is a tendency to purchase food products that are known to be made in Greece, a development which could bode well for those manufacturers able to market and promote locally sourced products.
Carrefour Scales Back Expansion: In an example of the ongoing difficulties faced by retailers in Greece, market leader Carrefour has recently announced that it will scale back its investment plans in the country. The retailer opened its first Carrefour Planet hypermarket format in Greece in September 2011 and had planned to convert 14 outlets to the new banner. This has now been revised downwards to 10 stores with the conversion decision to be based on very strict criteria. The retailer has also stated that it will not remodel any outlets; it had originally planned to make changes to 23 stores by 2013.
Key Risks To Outlook
Political Pressures Mounting: The prospect of further spending cuts and tax hikes will ensure that demonstrations and national strikes remain a key feature of the political landscape over the medium term. The severity of the fiscal consolidation programme and the public backlash means that the scope for slippage will remain pronounced over the medium term.
Eurozone Impact: Should the eurozone recovery begin to falter and demand for Greek exports weaken, there is a risk that the economy could contract more than BMI's current forecast.
Companies Mentioned:
- Unilever Greece
- Nireus
- Fage Dairy Industry
- Vivartia
- Coca-Cola Hellenic Beverages Company
- J. Boutari & Son Holding (Boutari Group)
- Athenian Brewery (Heineken)
- Carrefour Marinopoulos
- Alfa-Beta Vassilopoulos
For more information visit http://www.researchandmarkets.com/research/05090c/greece_food_and_dr