BRICs and beyond
Coverage and analysis of the world's fastest-growing emerging markets
Dairy producers in Mexico have turned to product diversification to boost sales in the face of rising costs, weak purchasing power within lower income consumer groups and growing competition for the favour of more affluent consumers. Elizabeth Machuca reports.
The move from General Mills and Sodiaal to expand Yoplait into China is a significant step for the yoghurt brand. The potential of the Chinese yoghurt market and its growth profile makes it a tempting prize for any yoghurt manufacturer. But, Katy Askew asks, have General Mills and Sodiaal taken the best route to expansion in the market?
French cheese giant Bel Group has made a rare acquisition in an emerging market with a deal to buy a majority stake in Safilait, the third-largest dairy company in Morocco. Bel has not been as active as some rivals in expanding in the world's faster-growing dairy markets through M&A and Dean Best looks at whether the business should be doing more.
Arla Foods has entered a joint venture with Egypt's leading dairy processor, Juhayna Food Industries, that leaves the European dairy co-operative poised for expansion in a promising emerging market. Expanding via a tie-up with a local company is a smart move from Arla as it works to grow in a market where competition is on the up and M&A valuations are high. Katy Askew reports.
Dairy and energy sector experts are optimistic about effective cold chain solutions they say are being developed for India’s dairy sector. Speakers at a two-day seminar on New Technologies for Milk Processing, staged in Mumbai at the India International Dairy Expo last week, were upbeat on the technological advances being made in the field. However, some experts argue that India's dairy needs would be better met through an increased focus on less perishable, long-life products such as UHT. Mini Pant Zachariah reports.
Mars Inc plans to step up investment in the Indian chocolate sector by investing in local production. The Indian chocolate market is dominated by Mondelez International-owned Cadbury, with Nestle becoming a somewhat distant second. With strong growth in demand and a growing tendency for consumers to trade up to higher-margin products, could Mars' push in India challenge the established players in the market?
High demand for home grocery deliveries in large Russian cities and the success of such services in Western countries are helping create a buzz around online grocery retailing in Russia. But complexity and high cost of operating this model in Russia means few retailers have so far launched online sales channels. Online grocery stores that do exist tend to limit their deliveries to Moscow or St Petersburg, and emphasise their offline locations.
The - relatively speaking - sluggishness of the Chinese economy has been a subject of debate in recent months and the country looks set to see GDP growth slow in 2015, which will only intensify competition in an already tough market. However, the prospects for India look brighter and a number of countries in south-east Asia offer opportunities. Dean Best reports.
Britannia Industries last week claimed to be the first biscuit company in India to launch an online-exclusive product before it hit retail stores. With India's e-commerce market predicted to be worth US$70bn by 2020, none can fault Britannia for testing the online waters. It's also a great PR move. But there are some dangers the food industry might want to consider before it jumps online. Hannah Abdulla explores.
Mondelez International this week announced it was acquiring a majority stake in the snacks business of Vietnamese food group Kinh Do. Hannah Abdulla reveals why this deal is likely to be a game-changer for both Mondelez and the Vietnamese snacks sector.
State-backed Chinese food giant Bright Food Co. continued to make progress with its "go global, bring in" ambition when it acquired a majority stake in Italian olive oil manufacturer Salov Group last week. The move is typical of Bright's international strategy as the group continues to further its agenda to grow globally and bring overseas brands to Chinese consumers. Katy Askew reports.
Alibaba Group's massive IPO has underlined that the e-commerce trade in China is booming. Significantly for packaged food manufacturers, online retailers offer a way to circumvent some of the challenges of distribution in this massive market, enabling them to reach out directly to China's population base. However, the soaring popularity of such enterprises also means competition is intense. Food makers must battle to stand out in the crowded online marketplace. Katy Askew reports.
The proposed sale of BRF's Brazilian dairies unit to Lactalis-owned Parmalat looks set to be a win-win for both companies. BRF is focusing on improving the performance of its core meat operations and the group would leave the transaction better positioned to step up its expansion into international protein markets. Meanwhile, Lactalis will strengthen its hand in the promising Brazilian dairy sector, leaving the company well-placed as a global dairy powerhouse. Katy Askew reports.
New Zealand dairy giant Fonterra and Chinese baby food maker Beingmate are to form a joint venture to try to capitalise on the exponential growth of the Chinese infant formula sector. With each partner bringing something very different to the table, Katy Askew suggests the new entity is well-placed to leverage the strengths of both.
Mexico is a country battling diet-related health problems. The nation's diabetes right is the highest among the members of the OECD. Last year, legislation was passed for a tax on high-calorie foods. Now, food manufacturers operating in Mexico have had restrictions placed on their advertising. Paula Krizanovic reports.
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- just-food's pick: Top trends at Fancy Food Show
- ConAgra confirms private-label exit
- Kraft Heinz unveils management structure
- Kellogg eyes trends with product launches
- Kraft faces lawsuit over 'natural' claims
- US performance weighs on General Mills