Research and Markets: Indonesia Food and Drink Report Q2 2009

* Reuters is not responsible for the content in this press release.

Wed Apr 29, 2009 2:38pm EDT

DUBLIN--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/research/812c50/indonesia_food_and) has
announced the addition of the "Indonesia Food and Drink Report Q2 2009" report
to their offering. 

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

There has been little merger and acquisition (M&A) activity in the past quarter,
mainly owing to a slowdown in the economy. GDP growth is expected to fall from
an estimated 6.1% in 2008 to a projected 5.0% in 2009. However, Indonesia should
be better insulated than its regional peers against the global economic crisis,
owing to strong domestic consumption and, according to the central bank, Bank
Indonesia, consumer confidence is actually up slightly from September 2008.
Despite the shaky economic conditions, the last quarter has seen some expansion
within the mass grocery retail (MGR) sector, as discussed in the body of this
report. 

Newcomer Lotte Shopping announced an ambitious INR9trn (US$806mn) four-year
expansion plan for the Indonesian MGR market. The plans include opening 26 new
Lotte Mart hypermarkets, which will render Lotte the market leader. Retail giant
Carrefour Indonesia also remained committed to its expansion plans, opening a
further two hypermarkets in Q109. It is perhaps not surprising that retailers
are keen to expand, and to battle fiercely for market leadership, since
per-capita food consumption is expected to rise by 57.9% over our five-year
forecast period to reach US$393.9 in 2013, and value sales through mass grocery
retail outlets are expected to grow by an impressive 87% to reach US$9.3bn by
2013. 

In the drinks industry, the local subsidiary of Australia's Coca Cola Amatil
(CCA) seems unfazed by the current economic conditions, announcing plans to
double its earnings from Indonesia in five years. Given that BMI predicts
enormous growth in the soft drinks industry, with value sales expected to
increase by 53.5% to US$6,181.5mn by 2013, this would not appear to be an
unrealistic target. 

The past quarter has seen little significant activity within the food-processing
sector; however, the government has announced that it expects Indonesia to be
able to start exporting rice and sugar in 2009. Good news for Indonesia's
agricultural industry, this will serve to strengthen the country's already
positive food and drink trade balance. 

The actions of Lotte, Carrefour and CCA highlight the ongoing appeal of the
Indonesian market, even as prevailing economic conditions blunt short-term
opportunities. Nonetheless, despite an increase in consumer confidence, the
environment for food and drink companies is likely to remain tough throughout
2009. 

Key Topics Covered:

* Business Environment 
* Food 
* Trade 
* Market Overview 
* Industry Developments 
* Market Overview 
* Competitive Landscape 
* Appendix

Companies Mentioned:

* Indofood Sukses Makmur Terbuka 
* Coca-Cola Amatil (CCA) 
* Aqua Golden Mississippi (Aqua) 
* Matahari Putra Prima 
* Carrefour

For more information visit
http://www.researchandmarkets.com/research/812c50/indonesia_food_and. 



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

Copyright Business Wire 2009

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