New Market Research Report: Russia Food & Drink Report Q1 2015

From: Fast Market Research, Inc.
Published: Thu Jan 29 2015

Most food & drink companies will suffer from an uncertain political and economic environment in the coming months in Russia. We are quite cautious about the outlook for private consumption in the country on the back of the ongoing conflict between Russia and Ukraine over the former Soviet power's influence on its neighbour. The recent sanctions adopted by the US and EU will only exaggerate already harsh credit conditions, which will potentially limit consumer purchasing power further . As a result, we have lowered our growth forecast for real private consumption to 0.8 % in 2014 from 2.8% previously and to -5.0 % in 2015. This follows average growth of more than 6% between 2010 and 2013.

Headline Industry Data

* 2014 per capita food consumption (local currency) = +9.4%; forecast compound annual growth rate (CAGR), 2013 to 2018 = +8.6%.
* 2014 beer volume sales = 2.0%; forecast CAGR to 2018 = 2.0%.
* 2014 fruit juice volume sales = +4.6%; forecast CAGR to 2018 = +5.0%.
* 2014 mass grocery retail sales (local currency) = +16.1%; forecast CAGR to 2018 = +16.4%.

Full Report Details at

Key Company Trends

Magnit View Playing Out; Inflation Propelling Same-Store Growth : Classified under the consumer staple banner, food retail is far less vulnerable to the ongoing inflationary surge in Russia caused by considerable weakening in the rouble through 2014. This trend has been further stocked by the restrictions imposed on food imports from the West since August. Discount store leader Magnit is flourishing in this environment and will continue to report strong same-store growth numbers over the coming months.

The discount leader's share price increased by nearly 30% in three months after Russia began banning food imports from Western countries in the second week of August 2014. Same-store sales grew at an average rate of nearly 13% over the first three quarters of 2014; in Q3 ended September 2014, the company had outstanding growth of 17.2% year-on-year (y-o-y). We argued...

The Russia Food & Drink Report features Business Monitor International (BMI)'s market assessment and independent forecasts for food and drink expenditure, consumption, sales, and imports/exports and forecasts for the mass grocery retail sector. The report also includes analyses of major regulatory developments, the background macroeconomic outlook and competitive landscape comparing national and multinational companies by leading products and services, sales, investments, partners and expansion strategies.

BMI's Russia Food & Drink Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the food and drink industry and the mass grocery retail market in Russia.

Key Benefits

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