The Caribbean soft drinks market is relatively well developed when compared to the local food market. Multinational brands have a strong position but beverages form local producers also continue to hold significant market share. The market has become increasingly difficult in line with the economic downturn, which has resulted in a drop in discretionary spending and tourist numbers. Local producers may also come under further pressure following the news that US-based bottler PepsiAmericas is to establish a joint venture with Central America Beverage Corporation (CABCORP) to serve the Caribbean and Central American soft drinks markets. PepsiAmericas is combining most of its Caribbean business (excluding the Bahamas) with CABCORP and taking an 18% stake in the venture, leaving CABCORP with an 82% ownership interest. The deal is expected to close in the third quarter of 2009. CABCORP is a Guatemala-based business and bills itself as the 12th largest company in Central America. As Central America’s predominant Pepsi bottler it covers four countries – Guatemala, Honduras, Nicaragua and El Salvador. Demand for soft drinks in these countries has increased rapidly over the last five years, in line with increased affluence and between 2003 and 2008 CABCORP’s sales increased by 60%, representing a compound annual growth rate of 10%.

Meanwhile, PepsiAmericas is the world’s second largest Pepsi bottler and will throw its Caribbean business into the pot. Here the company operates in five countries – Puerto Rico, Jamaica, Trinidad, Barbados and the Bahamas. The Bahamas is currently serviced from the US and given these existing synergies PepsiAmericas has decided not to include the territory in the deal.

The tie-up will boost the negotiating power of the new entity when plotting expansion in the region. Although PepsiAmericas will be the smaller party in this particular venture it is actually much larger and has very strong ties with PepsiCo (and may soon actually be part of PepsiCo if a recently agreed takeover gets approval from US antitrust authorities). CABCORP will see this as an advantage as it looks to expand across the Caribbean region. Here the soft drinks market is still fairly fragmented and CABCORP will be looking to put itself in the best possible position to take advantage of the inevitable consolidation process. The size and strength of the combined operation will dwarf most other soft drink operators in the region and we expect the business to eventually mop up the remaining Pepsi bottlers operating in the Caribbean. In addition, as the business looks to build market share, the joint venture could move to acquire other Caribbean soft drink firms that are not associated with Pepsi but that have developed strong brands in their own right.

Chapter 1 - Executive Summary

SWOT Analysis

Caribbean Food Industry SWOT

Caribbean Drink Industry SWOT

Caribbean Mass Grocery Retail Industry SWOT

Chapter 2 - Macroeconomic Forecasts

Barbados

Table: Barbados – Economic Activity, 2006-2013

Dominican Republic

Table: Dominican Republic – Economic Activity, 2006-2013

Jamaica

Table: Jamaica – Economic Activity, 2006-2013

Puerto Rico

Table: Puerto Rico – Economic Activity, 2006-2013

Trinidad and Tobago

Table: Trinidad & Tobago – Economic Activity, 2006-2013

Chapter 3 - Food

Regional Overview

Table: Food Spending Breakdown by Product Category in Selected Caribbean Markets (US$mn), 2006

Table: Caribbean Imports (US$mn) of Agri-food Goods from the US – 2006

Industry Forecast Scenario

Food Consumption

Table: Food Consumption in Selected Caribbean Markets

Trade

Table: Food & Drink Trade Balance - Historical Data & Forecasts, 2005-2013

Tourism

Table: Caribbean Tourism (stop-over) Arrivals, 2009 to date

Industry Developments

Chapter 4 - Drink

Regional Overview

Industry Forecast Scenario

Soft Drinks

Beer

Rum

Table: Trinidad & Tobago Beverage Production by Category – Historical Data & Forecasts

Table: Jamaica Beverage Production by Category – Historical Data & Forecasts

Industry Developments

Chapter 5 - Mass Grocery Retail

Regional Overview

Table: Total Sales via Grocery Retail Outlets in Selected Caribbean Markets* (US$mn), 2005-2013

Bahamas

Market Overview

Industry Forecast Scenario

Barbados

Market Overview

Industry Forecast Scenario

Dominican Republic

Market Overview

Industry Forecast Scenario

Jamaica

Market Overview

Industry Forecast Scenario

Puerto Rico

Market Overview

Industry Forecast Scenario

Trinidad & Tobago

Market Overview

Industry Forecast Scenario

Industry Developments

Chapter 6 - Competitive Landscape

Key Players

Food

Table: Key Players in the Caribbean Food Market, 2007

Drink

Key Players in the Caribbean Drinks Market, 2007

Mass Grocery Retail

Key Players - Caribbean Mass Grocery Retail Operators

Company Analysis

Food

Seprod (Jamaica)

Drink

The Jamaica Drink Company (Wisynco Group) (Jamaica)

D&G/Red Stripe (Jamaica)

Mass Grocery Retail

Wal-Mart (Puerto Rico)

Supermercados Nacional (Dominican Republic)

Chapter 7 - Appendix

Country Snapshot: Dominican Rep Demographic Data

Section 1: Population

Table: Demographic Indicators, 2005-2030

Table: Rural/Urban Breakdown, 2005-2030

Section 2: Education And Healthcare

Table: Education, 2002-2005

Table: Vital Statistics, 2005-2030

Section 3: Labour Market And Spending Power

Table: Employment Indicators, 2000-2005

Table: Consumer Expenditure, 2000-2012 (US$)

Table: Average Annual Manufacturing Wages, 2000-2012

Chapter 8 - Country Snapshot: Puerto Rico Demographic Data

Section 1: Population

Table: Demographic Indicators, 2005-2030

Table: Rural/Urban Breakdown, 2005-2030

Section 2: Education And Healthcare

Table: Vital Statistics, 2005-2030

Section 3: Labour Market And Spending Power

Table: Employment Indicators, 1999-2004

Table: Average Annual Manufacturing Wages, 2000-2012

Chapter 9 - Country Snapshot: Trinidad & Tobago Demographic Data

Section 1: Population

Table: Demographic Indicators, 2005-2030

Table: Rural/Urban Breakdown, 2005-2030

Section 2: Education And Healthcare

Table: Education, 2002-2005

Table: Vital Statistics, 2005-2030

Section 3: Labour Market And Spending Power

Table: Employment Indicators, 2000-2005

Table: Consumer Expenditure, 2000-2012 (US$)

Table: Average Annual Manufacturing Wages, 2000-2012

Chapter 10 - BMI Food & Drink Methodology

BMI Food & Drink Industry Glossary

Food & Drink

Mass Grocery Retail

BMI Food & Drink Forecasting & Sourcing

How We Generate Our Industry Forecasts

Sourcing