DUBLIN, Ireland--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/reports/c87377) has announced the
addition of Singapore Food & Drink Report Q1 2008 to their offering.
The Singapore Food & Drink Report provides independent forecasts
and competitive intelligence on Singapore's food and drink industry.
As third quarter and full-year financial results for Singapore's
leading food and beverage companies begin to drift in, the paradox of
the local marketplace is again made clear. The opportunity to make
handsome returns on food and beverage investments in Singapore is
there; however, the size of the market and its late stage of
development mean that only the smallest number of strategically
focused firms can reap these rewards.
Singapore falls in sixth place in our new Food and Drink Business
Environment Ratings and this placing again highlights the frustration
of the market to investors. Economic and political stability, as well
as high levels of per-capita GDP and high consumption rates in some
major food and beverage categories, all work in Singapore's favour.
However, the tiny size of the population - just 4.4mn people - and an
absence of medium- and long-term growth opportunities because of
market maturity all work against it.
To investors interested in the region, Singapore is certainly
attractive, with high spending levels and established consumption
habits typically providing a satisfactory return on investments.
However, with so little market share to go round, few companies can
now enter Singapore and hope to harness sufficient consumer interest
to warrant the required investment. Even those already established are
finding the market tough and are having to operate at the height of
their business activity levels in order to remain competitive and
protect their market share.
One key development discussed in this quarter's report is the
rumoured break-up of beverage major Fraser & Neave (F&N). F&N has
refused to comment on rumours that it is to split its business into
separate food and beverage, property and publishing companies, and yet
the persistence of these rumours is indicative of how difficult it is
to successfully operate in Singapore's food and drink sector, let
alone while balancing non-core property and publishing interests.
Meanwhile, F&N-backed APB, despite committing huge sums to expansion
across emerging Indochina, has had to continue to invest in domestic
brand building to avoid a renewed assault on its market share from
close rival Carlsberg, which last quarter snared APB's Corona
distribution agreement.
The challenges of trying to maximise growth opportunities within
such a small market mean that market leaders require a strong
strategic focus, substantial financial resources and the capacity for
innovation; when all come together, Singapore can prove highly
lucrative. Singapore Food Industries (SFI) announced its Q307 results
in November and the figures make encouraging reading. Despite years of
trying to reduce its dependency on Singapore, the country remains
SFI's primary growth driver, with sales here increasing by 23.7% over
the three-month period to contribute to group Q307 sales growth of
13.4% to US$111.3mn.
For more information visit
http://www.researchandmarkets.com/reports/c87377
Source: Business Monitor International
Research and Markets
Laura Wood
Senior Manager
Fax: +353 1 4100 980
press@researchandmarkets.com
Copyright Business Wire 2008
