Research and Markets: United Arab Emirates Food and Drink Report Q3 2009

DUBLIN--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/research/487545/united_arab_emirat) has
announced the addition of the "United Arab Emirates Food and Drink Report Q3
2009" report to their offering.

The United Arab Emirates Food Drink Report provides independent forecasts and
competitive intelligence on the United Arab Emirates' food and drink industry.

The UAE has moved to the top of the regional Food & Drink Business Environment
Ratings table for Q309. However, a sustained decline in crude oil and property
prices, coupled with a marked decline in private investment, has forced us to
revise down the UAE's GDP forecast to reflect a 1.7% contraction in 2009.
Despite this, the country's standing as an attractive market for investors in
search of near-term returns with premiumisation potential remains largely
intact. One of the world's highest per capita GDP's and a lack of market
saturation are among the main attractions pulling food and drink investors to
the UAE. Its soft drinks industry continues to be the subject of much attention,
as discussed in this recently published UAE Food & Drink Report for Q309.

Earlier this quarter, Abu Dhabi-based food and drink giant Emirates Foodstuff
and Mineral Water Company (Agthia) reported turnover of AED854mn (US$232.5mn)
and net income of AED72.2mn (US$19.66mn) for FY08. The posting represented
stellar year-on-year (y-o-y) growth of 48% and 89% respectively. Largely through
its subsidiary Al Ain Mineral Water, Agthia's water and beverage business grew
40% y-o-y to AED138.6mn (US$37.74mn).

Continued revenue uptick should continue in FY09, not least because water is an
essential household good and the UAE's standing as the world's highest per
capita bottled water consumer. Unsurprisingly, the bottled water subsector is
fiercely competitive with a number of UAE-based companies jostling for market
share. Agthia shares the market with a band of manufacturers including Masafi,
Oasis and Gulfa. Meanwhile, DöhlerGroup, a high profile Germany-based producer
of beverage ingredients, has launched a centre of expertise in Dubai. Targeting
unmet demand, particularly within the health and functional drinks segments as
demand for lower-sugar soft drinks pushes up rapidly, the company will look to
supply domestic beverage companies. A growing number of consumers are likely to
experiment with innovative drinks such as natural energy drinks and juices with
lower sugar content.

Despite an uptick in demand for healthier soft drinks, led initially by the
UAE's expatriate-heavy population and now picking up among Emirati citizens,
demand for traditional carbonates and high-sugar juices is unlikely to fall by
the wayside and will continue to represent the bulk of soft drinks sales minus
the bottled water segment.

We has forecast soft drinks value sales to grow by 52.77% through to 2013, while
per capita soft drinks consumption is set to grow by 26.75% over the same period
- reflecting the opportunities that remain despite the UAE's small population.
Investors seeking entry are likely to seize their opportunity (provided they can
secure capital) before market saturation becomes a more pressing concern.

Companies Mentioned:

* Al Ain Mineral Water Company
* Unilever Arabia
* Abu Dhabi National Foodstuff
* Company (Foodco)
* Al Ain Dairy
* Almarai Dairy
* Masafi
* EMKE Group - LuLu Hypermarket
* Carrefour MAF
* Spinneys

For more information visit
http://www.researchandmarkets.com/research/487545/united_arab_emirat

Research and Markets
Laura Wood, Senior Manager, press@researchandmarkets.com
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716

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