New Report Available: Kuwait Food & Drink Report Q2 2013

Recently published research from Business Monitor International, "Kuwait Food & Drink Report Q2 2013", is now available at Fast Market Research

by Bill Thompson

(WireNews+Co) - Boston, MA - 08 March 2013

We remain broadly positive on Kuwait's consumer outlook, as the country's economic outlook heading into 2013 looks fairly bright. Robust domestic consumption has been strengthened by loose fiscal policy backed by elevated oil prices. We maintain our forecast for real GDP growth to expand by 3.7% in 2013, and we see household consumption continuing to power economic growth through to the end of 2013. Government current spending expanded at the beginning of 2012: A 25% wage rise to all government employees - of whom the majority are Kuwaiti nationals - was approved in March, as was a 15% increase to pension entitlements. The wage and benefit increases are expected to provide a strong boost to retailers and the consumer goods sector, and we are forecasting domestic consumption growth of 4.5% in 2013.

Headline Industry Data (local currency)

- 2013 food consumption growth = +3.7%; forecast compound annual growth rate (CAGR) to 2017 = +4.0%
- 2013 per capita food consumption growth = +1.3%; forecast CAGR to 2017 = +1.8%
- 2013 soft drinks value sales growth = +6.2%; forecast CAGR to 2017 = +6.3%
- 2013 mass grocery retail sales growth = +4.3%; forecast CAGR to 2017 = +4.3%

View Full Report Details and Table of Contents (http://www.fastmr.com/prod/541229_kuwait_food_drink_report_q2_2013.aspx?afid=201) (http://www.fastmr.com/prod/541229_kuwait_food_drink_report_q2_2013.aspx?afid=201)

Key Industry Trends:

Kuwait Tightens Energy Drinks Laws: In October 2012 Kuwait's Ministry of Commerce and Industry introduced new regulations on the sale of energy drinks, reported Arab Times Online. The new laws ban energy drink companies from making misleading advertising claims and impose a minimum age restriction of 16. Labels must also be placed on the products warning pregnant women, diabetics, children with behavioural problems and individuals with high blood pressure or caffeine allergies of the risks of consuming the product. Energy drinks are forecast to experience strong growth in the Kuwaiti market, but such legislation could potentially curtail this.

Vivartia to Enter JV with Exeed Industries: In late 2012 the Greece-based dairy group Vivartia announced that it will enter a joint venture (JV) with UAE-based Exeed Industries to expand its presence in the Middle East and North Africa. The new JV will construct a EUR70mn (US$90.0mn) production base in Abu Dhabi, which is set to start in early-2013. Through the JV, the companies aim to establish a business in the UAE with sales of more than EUR165mn (US$212.2mn) per year. Under the deal, Exeed will take over all of Vivartia's products, including Delta, Barba Stathis and Chrysi Zymi and foodservice brands, like Goody's and Everest.

Key Risks To Outlook:

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