...F A I R S M A N A G E M E N T R E P O R T THE MIDDLE EAST CONFECTIONERY MARKET: OPPORTUNITIES FOR U.S. CONFECTIONERY EXPORTS Prepared by Bryant Christie Inc. for the National Confectioners Association January 30, 2009 Seattle Telephone: 206 292 6340 Sacramento Telephone: 916 492 7062 TABLE OF CONTENTS EXECUTIVE SUMMARY…………………………………………………………… ……..1 INTRODUCTION…………………………………………………………………………4 BACKGROUND ……………………………………………………………………4 METHODOLOGY ……….…………………………………………………………4 REPORT FORMAT …………………………………………………………………4 GENERAL MARKET ENVIRONMENT…………………………………………………… 5 MARKET FOR CONFECTIONERY IN THE MIDDLE EAST……………………………….7 CONSUMPTION TRENDS…………………………..………..……………………. .8 COMPETITION ..……………………………..…………………………...……………..13 MULTINATIONAL PRODUCERS…………………………………………………...14 LOCAL PRODUCERS……………………………………………………………...14 CONFECTIONERY IMPORTS….…………………………………………………...16 DISTRIBUTION……………………………………………………………………… …18 RETAIL……..……….......…………………………………………….……….…19 CONVENIENCE STORES …....……………………………………………. ……...22 HOTEL, RESTAURANT AND CAFETERIA …..……….……………………………23 COLD STORAGE….. ....…………………………………………………….. ……24 MARKET ACCESS ..………………………………………………………….…………..24 LABELING …..…………………………………………………………………..26 CONCLUSIONS……………………………..………………………….……………. ….27 APPENDICES RETAIL PRICES FOR LEADING CONFECTIONERY BRANDS U.S. AND COMPETITOR CONFECTIONERY EXPORTS TO THE MIDDLE EAST CONTACTS Middle East Confectionery Market:: Opportunities for U.S. Confectionery Exports January 30, 2009, Page 1 of 28 EXECUTIVE SUMMARY...
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...Aug. 3--The Middle East is identified in the top ten markets for confectionery products in the world, with a high per capita consumption of chocolate in particular. According to a recent study by TNS Media Intelligence, the total Middle East confectionery market is valued at US$ 113 billion, and the market has grown by 15 percent over the last three years, with Saudi Arabia and Qatar experiencing the largest growth at around 24 percent. Such growth is attributed to greater disposable income per capita, the influence of the region's enormous population of young consumers, and the traditional role of sweets in Arab culture. Despite fluctuations in the region's economy, over the next decade confectionery sales are forecast to increase by 15-20 percent. To capitalise on these favourable market trends, the co-located exhibitions, Sweets Middle East and the inaugural Sweet & SnackTec Middle East, will take place from 2 -- 4 November 2009 at Dubai International Convention and Exhibition Centre (DICEC). Bringing business partners together, the events will create new trading opportunities and promote growth and development in the region, as well as serve producers, suppliers, importers and exporters of the sweets, confectionery and snack industry from across the MENA region. Both exhibitions are co-organised by Dubai World Trade Centre (DWTC), the region's leading exhibitions organiser which portfolio includes Gulfood, and Koelnmesse, organiser of the leading international...
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...and creation - High quality products that convey a traditional, natural and authentic image - Wide range of products: macarons, chocolate candy, chocolate cakes, chocolate snacks, waffles… - Strong communication - Loyalty system: l’Atelier de Formation à la Haute pâtisserie Pierre Hermé Weaknesses: - “Premium price” politic (high prices) PESTEL Saudi Arabia Economic environment We notice a growing attention among global confectionery manufacturers on the Middle East market and for good reason. For a number of years, confectionery sales in the region have experienced double digit annual growth, increasing by nearly 15% annually between 2005 and 2009. Annual chocolate sales exceed $4.2 billion in the Middle East. This trend is observable in many countries and especially in Saudi Arabia: the country represents the biggest market in the Middle East. Indeed it is valued at $544 million and registered a 5% annual growth during the last couple of years, which is a great opportunity for confectionery manufacturers looking to increase profits. Moreover, we notice that chocolate is king in Saudi Arabia: it accounts for 50% of total confectionary sales. The value of chocolate sales per unit is also rising, which offers many opportunities for profits. As the average income per capita increases, currently at $15,000, so does purchasing power and expenditure on luxury products, such as premium chocolate. This is good news for high quality chocolate manufacturers...
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...that is, gum, sugar and confectionary. But the world-wide economic recession which in the last few years hit the North American and European markets, adversely affected the confectionary sales. In addition, undue pressure affected the sales volumes as more people moved towards healthier lifestyles, in attempt to avoid what they termed as unhealthy foods. In these developed countries, there are growing concerns about obesity and its side effects. Confectionary makers are now making smaller packets so as to reduce the prices of the purchase which in a way is kind of addressing some of the concerns about unhealthy foods. This is done by improving the portion control even though it increases the sales volumes per kilo, but does not affect the profit margins adversely. Even though the confectionary may tend to be termed as a luxury food item, the sales value appears to be recovering steadily from adversity. In the quest of offering premium products which are more profitable than increasing the sales volumes, the confectionary makers are offering what is seen as low value confectionary. These new products include pro-biotic and antioxidant chocolate. However, the current depression is expected to limit the growth of confectionary, because it is seen as a non-essential food item. Nevertheless, chocolate appears to be picking up in the market and was expected to grow by 4 per cent in 2009. Hence due to the recent depression, the chocolate consumers are rewarding themselves in these...
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...International Markets Bureau MARKET INDICATOR REPORT | MAY 2011 Pathfinder Report Global Packaged Confectionery Trends Source: Shutterstock Pathfinder Report Global Packaged Confectionery Trends EXECUTIVE SUMMARY Australasia (Australia and New Zealand) and Western Europe were the two biggest regional confectionery markets in 2010, with Australasia‟s sales increasing by almost 25% over 2009 figures. North America, Asia Pacific and Latin America confectionery markets have also maintained increasing sales of these products despite the global economic downturn. The recession has caused many consumers to sacrifice volume rather than quality, and to use confectionery as a reward or as a means to help alleviate stress. However, sugarized gum, milk chocolate tablets and boiled sweets confectionery are all being adversely affected by mounting consumer health concerns. Obesity and diabetes are major health issues that are increasingly affecting both the young and aging populations. In particular, the United States (U.S.), United Kingdom (U.K.), and Japan will stand to benefit the most from reduced calorie and low/no/reduced sugar content. When it comes to “healthy” confectionery, consumers tend to look for products benefiting dental and cardiovascular health, as well as low-calorie products that help assuage guilt over indulgence. We see this trend playing out with sugar-free gum which has been performing well globally, and is predicted to continue, particularly in emerging...
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...4/14/2015 Umer Rizwan Umer Rizwan S.M.RAZA S.M.RAZA Faiq Mehfooz Faiq Mehfooz Arsalan Waseem Arsalan Waseem CONFECTIONERY IN PAKISTAN CONFECTIONERY IN PAKISTAN Table of Contents OVERIVEW 2 CONFECTIONERS 2 BAKERS 2 TRADE BODY 3 DEMAND: 3 SUPPLY 3 RAW MATERIAL AND ITS SUPPLY 4 MARKET ASSESSMENT: 5 MARKET SIZING AND LENDING POTENTIAL 5 OWNERS PROFILE 7 BUSINESS CYCLE 7 OVERIVEW Confectionery is the art of making confections, which are food items that are rich in sugar and carbohydrates. In general, though, confectionery is divided into two broad and somewhat overlapping categories, bakers' confections and sugar confections. Bakers' Confectionary, also called confectionery, includes principally sweet pastries, cakes, and similar baked goods. In the Middle East and Asia, flour-based confections are more dominant. At present, bakers and confectionery segment in Pakistan is relatively less organized. Pakistan’s confectionery industry has enjoyed an emerging and growing trend in the recent past yet its size and growth pattern has been far inconsequential compared to other countries of Asia-pacific region. The industry has grown with an average annual rate of 6.5 to 7.5 % during 2002-2008. Domestic brands dominate the market accounting for more than 85% of total value sales of the industry. The industry as a whole can be divided between...
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...THE CHOCOLATE CONFECTIONARY - WORLD MARKET OVERVIEW Chocolates began during the times of the Mayas and the Aztecs when they beat cocoa into a pulp and made bitter frothy chocolate out of it. They first became popular in Europe in a highly unrefined form. Then the Hershey Food Company was the first to bring out chocolates in the currently popular solid form. The main ingredients of chocolate is cocoa grown mainly on equatorial zones and of the consumers looks for variety he goes in for some of that company’s own sugar milk solids and permitted emulsifiers. Cocoa constitutes nearly 40% of the total raw material cost. The following report studies the chocolate industry in India and in particular the position of the chocolate premium brand & local brand. The brand name chosen is the umbrella brand as it was felt that the corporate name is recognized as a brand and not so much as an individual products. Asia, Africa and Latin America account for 75% of the world’s population, and yet consume just 20% of the world’s cocoa. The potential in Asia is undoubtedly great. Currently, some ___ billion consumers account for just 8% of global consumption. As a result, even a slight increase in per capita consumption would equate to a large expansion in demand for cocoa. The countries with the highest growth potential must be China and India. Between them, the two countries have a combined population in excess of 2.2 billion — and this is expected to reach almost 2.5 billion by 2005. With economic...
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...chocolate manufacturer, was one of the few Argentine entrepreneurs remaining whose company was still financially stable. However, the crisis was taking its toll on even the most successful and healthy corporations. The crisis happened to hit Arcor at a critical time in the unfolding of its long-term strategic plans. Pagani had worked hard to make Arcor a dominant player in the Latin American confectionery market and had recently laid out plans to increase its presence in other regions. By 1999, he was ready to implement his strategy and was eager to work toward competing on the level of other multinational manufacturers, such as Mars, Nestlé, Kraft, Hershey, and Cadbury Schweppes. However, Arcor’s response to the domestic crisis had drained his focus and resources and forced him to put all expansion efforts on pause. Surveying the ruin around him and looking at the business his family had built up over three generations, Pagani thought hard about what to do with Arcor, both at home and abroad. The Confectionery Industry The confectionery industry comprised sugar confectionery (candy) and chocolate...
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...Møller, the CEO of Toms Confectionery Group, was looking down at the frozen fountain in the courtyard by Toms’ headquarters outside Copenhagen. Designed in 1962 by the famous Danish architect Arne Jacobsen, the headquarters, like the company, was an iconic piece of Danish history. For decades, Toms had been a Danish household name and local market leader within the confectionery industry. Today, however, it was time to look ahead. Toms, like most other companies, had gone through the financial crisis with a solid focus on the cost base. However, as a small player in the global confectionery industry, the company could only go so far with cost cutting alone. Instead, Toms needed to make a thorough analysis to capture the opportunities that lay ahead. That morning, Møller had called together his management team to discuss Toms’ fiveyear strategy for the chocolate confectionery business under the following headline: In the spring of 2012, Toms took a significant step forward by acquiring the German chocolate company Hanseatische Chocolade GmbH. Overnight, Toms added sales of 360 million Danish kroner. However, the management team agreed that this was only the first step in Toms’ path. As Møller and the management team watched the day’s first truckload of cocoa beans approach the factory loading dock, they began reflecting on the past, present and future of Toms as a chocolate confectionery company. How should Toms profitably grow its chocolate confectionery business? Toms’ ambition...
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...Abbreviations 4 1 Executive Summary 5 2 Macro Analysis of the Confectionery Industry 7 3 PESTEL Analysis of the Confectionery Industry 9 3.1 Analysis 9 3.2 Conclusion 12 4 Porter Five Forces Analysis 15 5 Industry Life Cycle and Industry Dynamics 18 6 Lindt & Spruengli Company Overview 22 7 Business System 24 7.1 Resource Base of Lindt & Spruengli 24 7.2 Activity System (Value Chain) of Lindt & Spruengli 26 7.3 Product Offering 28 7.4 Lindt’s positioning in comparison to Competitors 33 8 Organizational Structure 34 8.1 Organisational Process 35 8.2 Organisational Culture 36 9 SWOT Analysis 37 10 Recommendations 38 10.1 Exposing the Corporate Social Responsibility 38 10.2 Product Development to meet upcoming consumption trends 38 10.3 Market penetration in Spain 40 10.4 Penetration of Emerging Markets 41 10.4.1 Asia Pacific 41 10.5 Entering new Segments 43 10.6 Pushing profitable Product Lines 45 11 Bibliography 47 11.1 Books 47 11.2 Documents from Databases 48 11.3 Journals 50 11.4 Websites 51 II List of Figures Figure 1: Confectionery industry segmentation 5 Figure 2: Market value of the confectionery market in the period 2004-2009 and the expected growth until 2013 6 Figure 3: Stage of industry life cycle mature markets (Western Europe, North America) and immature markets (Middle East and Africa, Eastern Europe, India, China, Russia) 10 Figure 4: Growth rate of the global confectionery sales by region in the period 11 2007/2008 and forecast...
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...outline shows how Nestlé has provided an outstanding quality in all of its brands which encouraged people to choose from its products. But sometimes when market profits seem to be more important than anything else, then this is when those companies fall in the danger zone; providing with products which are dangerous or detrimental to physical health. History: Food is the core element of our daily lives for it enables us to survive. When you balance and eat good quality food, you will insure a better standard of living. Here comes the role of Nestlé, appearing to be the largest food and beverage company in the world. Nestlé is often referred to as "the most multinational of the multinationals" due to its manufacturing facility. Nestlé has been applying its nutrition expertise in the development of products that contribute to the health and wellness of consumers, evolving into the world’s foremost Nutrition, Health and Wellness company. "Good Food, Good Life" is the foundational philosophy upon which Nestlé continues to build an ever-increasing portfolio of quality brands that not only deliver on great taste, but on nutritional value as well. Nestlé showed a very huge success and heritage for nearly 70 years since its first Middle East operation in Lebanon in the early 1930s. Currently, Nestlé in the Middle East owns and operates 14 factories and 16 offices in the region. These multimillion dollar investments have created job opportunities, enhanced technological and...
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...CONSUMER MARKETS – JUNE 2014 A taste of the future The trends that could transform the chocolate industry kpmg.com T he outlook for the world’s chocolate industry is brighter than it has been for eight years. Euromonitor predicts the industry will enjoy a 6% rise in revenues in 2014, delivering record global revenues of US$117bn. This robust performance is driven by a 2.1% increase in volume, reflecting growing appetite for chocolate in emerging markets. The challenge for the industry’s major players is how to make best use of this boom to profitably grow their volumes faster than the markets, achieve sustainable improvements in core operating margins and make the right investments – be they in capacity, acquisitions, the supply chain, marketing or R&D – to seize the significant opportunities ahead. The single biggest factor improving the industry’s performance is the fact that, at long last, the global economy is showing signs of sustained recovery. Growth in many major markets is accelerating. The stellar performers are India (expected to grow by 22% this year), Brazil (13%) and China (11%). The potential long-term growth in emerging economies – many of which have growing middle classes – is vast. To give just one example: the per capita consumption of chocolate in China is only a tenth of that in Switzerland. Yet, as this global tour of the chocolate industry suggests, the future is not without challenges. The immediate concern is the balance between supply of cocoa...
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...International Markets Bureau MARKET INDICATOR REPORT | JANUARY 2011 Packaged Food Sales In India Packaged Food In India EXECUTIVE SUMMARY With a vast population base, growing middle class and strong macroeconomic growth, India has become one of the fastest-growing markets for packaged food in the world. India’s packaged food retail sales grew an average of 11.5% annually during the past five years, with a compound annual growth rate (CAGR) of 12.93% between 2004 and 2009. While only 30% of the population resides in urban areas, urbanization has become a trend in recent years and has changed how and when consumers eat their meals. This migration of consumers has resulted in new products boasting ethnic and or region-specific flavours, appearing on store shelves. The search for functional food items paired with the desire for instant gratification has caused solid growth in ready-meals, noodles and soup sales. With the growth of modern retailing and the shopping revolution in India, there has been a radical shift in the Indian food industry. In addition, with the arrival of international fast food outlets in India, the food industry has experienced steady growth. It is difficult for most regional packaged food companies in India to expand nationally, due to the country’s underdeveloped infrastructure. Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) was the leader in the packaged food market, with an 8% share in 2009. INSIDE THIS ISSUE Executive Summary...
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...In the year 2006, the organization presented Maamoul Biscuits in its current scope of Biscuit items. The market has reacted extremely well towards the Maamoul Biscuits. Then again, the sweet shop manufacturing plant represents considerable authority in the creation of Hard confections in different flavors; Gums and Chewy confections; Toffees; and Lollipops, all in different flavorsis new production line was gone for fulfilling the enhanced request from the market The Company is consistently dynamic in statistical surveying and item improvement to stay aware of the market slant and fulfill it's regularly developing business sector base. Plans are as of now under approach to present new items, for example, potato chips, tidbits, juices and other foodstuff which have demonstrated mainstream in the territorial market and past. The Company is additionally dedicated to enhancing the nature of its current items and in addition in acquainting new items accordingly with the changing tastes and market...
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...age. Adi, of course, will paint the scene And tell us why the times are lean." Mr. Nadir Godrej Executive summary The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a well-established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labor costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2012, India needs around US$ 28 billion of investment in the food-processing industry....
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