Blog: Nestlé hails Russia; whither Tesco?
Dean Best | 27 March 2008
When Nestlé speaks, the rest of the food industry sits up and takes notice.
As the world’s largest food group, and a company that is seemingly impervious to the cost pressure affecting the industry, Nestlé is at the forefront of many of the emerging trends in our business – by both category and geography.
This week, Nestlé has signalled its confidence in the potential of Russia. Rising inflation has caused some economic commentators to question how long the Russian market will prove a lucrative one for consumer goods companies.
But, according to Nestlé, the rising purchasing power of consumers in the oil-rich country is offsetting concerns over inflation.
Moreover, Russia’s retailers are also showing signs of confidence in the spending power of the country’s citizens.
Last week, X5 Retail Group, the country’s largest retailer by sales, signalled it will continue to expand in 2008 with plans to buy out a key licensee of its discount stores. X5 spent much of 2007 in expansionist mode and there seems to be no let-up this year.
And yesterday, rival retailer Magnit set the ball rolling for its own expansion with plans to raise funds by listing on the London Stock Exchange.
Investing in emerging markets is fraught with challenges. But, right now, it seems leading players in food manufacturing and retailing see Russia as a lucrative growth market.
One pertinent questions remains, however. Just how long will it buy until the likes of Carrefour and Tesco plant their flags outside a Russian store?
Danone completed its US$12.5bn acquisition of WhiteWave Foods this week. The move will roughly double Danone's presence in North America, where WhiteWave is a top four dairy player. ...
Premier Foods plc revealed today (28 March) it has secured a deal with its pension scheme trustees that will see the UK food maker reduce its pension burden....
Hain Celestial, under the scrutiny of the investment community in recent months and facing some challenges in its domestic market, has announced another shuffling of its management pack....
FrieslandCampina, which today served up higher profits but lower sales for 2016, is ready to offload the last non-dairy business owned by the Dutch cooperative giant....
- Analysis: Post discusses rationale for Weetabix
- Who will buy Danone's Stonyfield business?
- Interview: Sir Kensington's on sale to Unilever
- US food next wave on display at Winter Fancy Food
- Column: Why snacking is the new meal
- Unilever buys US condiments maker Sir Kensington's
- Ice cream helps Unilever sales, food flat
- Post: Weetabix "opens up M&A opportunities"
- Suntory to offload Australia, New Zealand foods
- Nestle organic growth slows but beats expectations