Boston, MA -- (ReleaseWire) -- 01/07/2014 -- We expect growth to slow in the Chilean economy over the next year as increases in annual GDP per capita reach their lowest rate for four years at 3.4%. This will have an impact on the spending patterns of consumers, an effect common across much of Latin America. Private consumption is therefore forecast to grow at 4.0% in 2014 compared with 6.1% and 4.7% in 2012 and 2013 respectively. However, we expect to see per capita food consumption increase to US$1,706 in 2014, up 5.6% on 2013. With inflation at around 3.2% for the period, this represents real growth in food consumption as the market continues to develop and offers new products to the consumer class.
Headline Industry Forecasts (local currency terms)
- 2014 per capita food consumption growth = +5.6% year-on-year (y-o-y); compound annual growth rate (CAGR) to 2017 = +5.7%.
- 2014 alcoholic drinks value sales = +5.5%; forecast CAGR to 2017 = +5.7%.
- 2014 soft drinks value sales = +7.1%; forecast CAGR to 2017 = +7.0%.
- 2014 mass grocery retail value sales = +5.6%; forecast CAGR to 2017 = +5.8%.
View Full Report Details and Table of Contents
Key Company Trends
Cencosud Sacrificing Short-Term Profitability: Chile-based Latin American food retail giant Cencosud has been working hard to diversify its business over recent years, with the most recent high-profile example coming in October 2012 as the company reached an agreement to acquire Carrefour's assets in Colombia for US$2.6bn. This move was largely debt-financed (JP Morgan loaned the retailer about US$2.5bn) and inevitably had a negative effect on the company's short-term profitability given increased financing costs. Indeed, in the first quarter to March 2013, excluding a one-time provision expense, Cencosud's net income was down 26% y-o-y.
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 Q412 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.
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Food research reports at Fast Market Research
You may also be interested in these related reports:
- Colombia Food & Drink Report Q1 2014
- Singapore Food & Drink Report Q1 2014
- United Arab Emirates Food & Drink Report Q1 2014
- Brazil Food & Drink Report Q1 2014
- United Kingdom Food & Drink Report Q1 2014
- Croatia Food & Drink Report Q1 2014
- Germany Food & Drink Report Q1 2014
- Czech Republic Food & Drink Report Q1 2014
- Australia Food & Drink Report Q1 2014
- Bahrain Food & Drink Report Q1 2014