Research and Markets: New Zimbabwe Food Drink Report Provides Independent Forecasts...

Research and Markets: New Zimbabwe Food Drink Report Provides Independent Forecasts and Competitive Intelligence on Zimbabwe's Food and Drink Industry

DUBLIN, Ireland--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/research/053968/zimbabwe_food_and)
has announced the addition of the "Zimbabwe Food and Drink Report
2008" report to their offering.

This Zimbabwe Food Drink Report provides independent forecasts and
competitive intelligence on Zimbabwe's food and drink industry.

Executive Summary

The situation in Zimbabwe continues to deteriorate, both for the
food and drink industry and for the country as a whole. In what could
be a major turning point for the industry, in September 2007 American
food company HJ Heinz sold its 49% stake in leading cooking oil
producer Olivine to Cotton Company

of Zimbabwe (Cottco) for US$6.8mn. Cottco was a state enterprise
until its privatisation in 1997, with the government still holding the
largest single stake in the company. The deal was facilitated by a
government-owned investment group, leading to speculation that this
could be the first major move by

President Robert Mugabe to take over foreign-owned firms in the
country.

Heinz was one of the first foreign investors in Zimbabwe following
the country's independence in 1980. Olivine first ran into problems
with the state in 2006 over charges that it had stopped producing
cooking oil after the US government barred it from buying from
formerly white-owned farms that had been seized by the Mugabe
government and redistributed to black farmers. The Heinz deal is the
first major takeover of a foreign firm since Mugabe vowed to gain
majority control of foreign assets, returning them to the Zimbabwean
people. Mugabe has blamed the country's financial woes on Western
sanctions, with a price freeze on basic goods ordered in June 2007
actually worsening the food shortages.

While Mugabe's official line is still that some businesses are
halting production in an effort to undermine the economy, the
situation is now so dire that even the government's chief statistician
admitted that he can no longer calculate the country's level of
hyper-inflation because there are not enough consumer goods left in
shops to count. When the last official rate was given, in October
2007, it was recorded at almost 8,000%, by far the highest in the
world. However, according to unofficial estimates, real inflation
based on the governments basket of goods is around 15,000%, and if a
broader range of goods is taken into account, this figure rises to an
unbelievable 40,000% for November 2007.

As Heinz's withdrawal illustrates, regardless of the size of the
enterprise, no business can survive in the country today without a
political connection. Zimbabwe continues to be plagued by chronic
unemployment, a breakdown in infrastructure and acute shortages across
the board. This has had a crippling effect on the food and drink
industry, with no relief in sight, and has had an equally devastating
impact on the MGR sector. Looking forward, we expect another year of
negative real GDP growth in 2008, as well as continued hyperinflation,
and a hand-to-mouth foreign exchange position. Domestic investment
will remain non-existent, shortages of basic goods will persist, and
the public services will further deteriorate to levels that make
normal life and commerce almost impossible. In order to sustain
itself, the regime will likely attempt more asset grabs with
foreign-owned businesses a probable target - more bad news for the
food and drink sector.

Key Topics Covered:

Executive Summary

Business Environment

SWOT Analysis

Mass Grocery Retail

Zimbabwe Mass Grocery Retail Industry SWOT

Food and Drink

Zimbabwe Food & Drink Industry SWOT

Macroeconomic outlook

Table: Zimbabwe - Economic Activity

Retail

Industry Forecast Scenario

Table: Zimbabwe Income Distribution by Wealth Tier

Industry Developments

Market Overview

Table: Structure Of Zimbabwe's MGR Sector By Estimated Number Of
Outlets

Food & Drink

Industry Forecast Scenario

Table: Zimbabwe Population by Age Demographic

Table: Zimbabwe Urban/Rural Population Demographics .

Industry Developments

Food

Drink

Market Overview

Table: Manufacturing Production Index by Sub-sector, Base year
1990 = 100

Tobacco

Market Overview

Competitive Landscape.

Key Players

Mass Grocery Retail

Table: Key Players In Zimbabwe's Mass Grocery Retail Sector, 2004

Food and Drink

Table: Key Players In Zimbabwe's Food & Drink Sector, 2005

Company Analysis

Mass Grocery Retail

Meikles/Pick 'n Pay

OK Zimbabwe

Food

Dairiboard Zimbabwe Ltd (DZL Holdings)

Cairns Foods Ltd

Our Forecast Modelling

How We Generate Our Industry Forecasts

Retail Industry

Sources

For more information visit
http://www.researchandmarkets.com/research/053968/zimbabwe_food_and

Research and Markets
Laura Wood, Senior Manager
Fax from USA: 646-607-1907
Fax from rest of the world: +353-1-481-1716
press@researchandmarkets.com

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