New Food research report from Business Monitor International is now available from Fast Market Research
Boston, MA -- (SBWIRE) -- 03/14/2014 -- The growth of the Chilean food and drink industry will continue to decelerate in 2014, affected by weak demand for the country's exports in the Asian markets. Recent increases in consumer prices, combined with stagnant wage growth, are set to weigh on consumer spending. This is reflected in our outlook for private consumption, which is forecast to grow at 4.0% in 2014 compared with 6.1% and 4.7% in 2012 and 2013 respectively. That said, we expect expansionary monetary policy and increased government spending to support economic activity and prevent a sharper decline in consumption.
Headline Industry Forecasts (local currency terms)
- Total food consumption (local currency) growth year-on-year (y-o-y) in 2014: +6.5%; compound annual growth rate (CAGR) to 2018: +6.6%
- Per capita food consumption (local currency) growth y-o-y in 2014: +5.6% ; CAGR to 2018: +5.8%
- Total soft drinks value (local currency) sales growth y-o-y in 2014: +7.1%; CAGR to 2018: +7.2%
- Alcoholic drinks value (local currency) sales growth y-o-y in 2014: +5.5%; CAGR to 2018: +5.8%
- Total mass grocery retail value (local currency) sales growth (y-o-y) in 2014: +5.6; CAGR to 2018: +5.9%
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Key Company Trends
Cencosud's Q3 2013 Revenue Up 14%: Chilean retailer Cencosud's revenue, in Chilean peso terms, increased 14% in Q3 2013 on the back of an improved performance in Chile and Argentina. However, the company's net profit declined 34% to MXN43.80bn (US$3.37bn) during the quarter due to higher debt levels related to its recent acquisitions and higher costs. Despite a 13% devaluation in Argentina's currency, the company reported a 4% revenue rise in the country. Argentina accounted for 26% of Cencosud's revenue in Q3 2013, down from 28% recorded in Q3 2012.
Andina's Net Profits Decline In FY12: In March 2013, Coca-Cola bottler and beverage company Embotelladora Andina posted a 9.7% y-o-y decline in net profits for FY12, reporting them at CPL87.64bn (US$185.4mn). The results released by Andina were consolidated to take into account Q4 2012 figures of Embotelladoras Coca-Cola Polar. The amalgamated company's sales went up by 19.3% y-o-y to CPL1.172trn (US$2.47bn). In April 2013, Andina announced that it plans to invest US$350mn for the year, which will go towards its Brazilian plant and maintenance work.
Concha y Toro 2013 Profits Hit: In April 2013, local wine major Concha y Toro reported that its full-year net profits for 2012 dropped 40.5% y-o-y to CLP30.02bn (US$63.5mn). Operating profits for the year were down 9.1% y-o-y to CLP53.68bn. That said, net sales increased by 6.6% for the year to CLP450.4bn, making up in part for weak domestic demand. Asian sales were particularly strong, up 21% y-o-y.
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