Research and Markets: Slovenia's Leading Brewer Pivovarna Laško Posted A 1% Year-On-Year (Y-O-Y) Volume Drop In Beverages Sales during 2008 Says This Q3 2009 Report

DUBLIN--(Business Wire)--
Research and
Markets(http://www.researchandmarkets.com/research/9cec06/slovenia_food_and) has
announced the addition of the "Slovenia Food and Drink Report Q3 2009" report to
their offering.

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

In the Q309 Business Environment Rating (BER) matrix, Slovenia slipped from
second to fifth position, due to the pressures exerted by the current economic
situation on the already small and saturated market. In fact, due to external
factors, in 2009, we expect Slovenia to fall into its first recession in 17
years, with a real GDP contraction of 1.7%. Private consumption overall is
expected to contract by 3.0% in 2009, with unemployment likely to rise
considerably, weighing down on real wage growth. A modest recovery is forecast
for 2010, with international companies likely to increase their involvement in
the country, which offers excellent infrastructure, open markets, a skilled
workforce and stable political institutions,

In terms of individual company developments, the current financial crisis is
having an impact. Slovenia's leading brewer Pivovarna Laško posted a 1%
year-on-year (y-o-y) volume drop in beverages sales during 2008, although it
plans to increase by 0.9% its sales for the current year. While the company
recorded a 9% y-o-y increase in its net sales revenue, its net profit was down
to EUR9.4mn (US$12.4mn), from EUR61.3mn (US$87mn) in 2007, due to an increase in
operating expenses. The future of Pivovarna Laško will also be closely tied to
the intention of its majority holder - financial concern Infond Holding - to
sell their share in Mercator, the leading Slovenian mass grocery retail (MGR)
operator.

In the meantime, other Slovenian companies are finding new ways of responding to
the financial crisis. To this end, leading Slovenian food conglomerate Droga
Kolinska recently sold its fruit spreads brand Belsad to major Croatian food
processor Podravka. The transaction is one of the latest acquisitions of Droga
Kolinska's non-core brands by foreign operators, as the Slovenian concern
attempts to focus on key products. The company is majority-owned by food, energy
and tourism holding Istrabenz, although the 95% stake is presently up for sale,
in the face of falling profits and mounting debts.

The country's MGR operators are also bracing for a challenging year, with
unemployment already on the rise. Mercator is aiming to increase its operations
in other regional markets, in a bid to reduce its revenue reliance on Slovenia.
In the meantime, Austrian Spar has announced plans to invest up to EUR35mn
(US$47.5mn) during 2009 in its Slovenian operations, if market conditions do not
deteriorate further.

Spar, as well as other MGR players, is likely to increase their private-label
offerings, in a bid to respond to the rising price-sensitivity among Slovenian
consumers. In fact, the economic situation has been judged so severe that
special stores targeting low-income consumers were recently inaugurated in the
Slovenian capital of Ljubljana. The stores will be operated by SOS Cooperative
organisation, in partnership with Slovenia's Bureau for Employment and Social
Protection, and offer groceries at substantially discounted prices.

Key Topics Covered:

* EXECUTIVE SUMMARY
* SWOT ANALYSIS
* FOOD
* DRINK
* MASS GROCERY RETAIL
* COMPETITIVE LANDSCAPE
* APPENDIX
* COMMODITY PRICE FORECASTS
* COUNTRY SNAPSHOT: SLOVENIA DEMOGRAPHIC DATA
* FOOD & DRINK BUSINESS ENVIRONMENT RATINGS
* FOOD & DRINK INDUSTRY GLOSSARY
* FOOD & DRINK FORECASTING AND SOURCING

Companies Mentioned:

* MIP
* Zito
* Panvita
* Perutnina Ptuj
* Droga Kolinska
* Ljubljanske mlekarne
* ETA Kamnik
* Fructal
* Coca-Cola HBC Slovenia
* Pivovarna Laško
* Engrotuš
* Mercator
* SPAR Slovenija

For more information visit
http://www.researchandmarkets.com/research/9cec06/slovenia_food_and

Research and Markets
Laura Wood
Senior Manager
press@researchandmarkets.com
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