Research and Markets: Netherlands Food and Drink Report Q4 2009

DUBLIN--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/research/2336d5/netherlands_food_a) has
announced the addition of the "Netherlands Food and Drink Report Q4 2009" report
to their offering.

Netherlands Food and Drink Report provides industry professionals and
strategists, corporate analysts, food and drink associations, government
departments and regulatory bodies with independent forecasts and competitive
intelligence on the Netherlands' food and drink industry.

Despite the Netherlands falling in an attractive second place in the Business
Environment Ratings for the region, the impact of the global economic downturn
on the Dutch economy appears to have deterred investors at least in the short
term, and as such Q309 saw little industry activity within the country's food
and drink sector. With private consumption turning negative for the first time
in four years it is not surprising that food and drink producers are remaining
cautious.

The Dutch mass grocery retail (MGR) sector, given its essential nature, had been
holding up fairly well in light of the economic conditions. However, results
released this quarter from a number of the country's leading retailers suggest
that the grocery segment may just now be starting to feel the full effects of
the downturn. Netherlands-based supermarket chain Sligro Food Group announced
that for H109 profit fell 6% to EUR27mn while sales for the period fell 0.7% to
EUR1.08bn. While at first glance, Ahold's results for Q209 look relatively
strong; sales rose 11.5% and operating profit increased an impressive 26%, this
was largely due to the integration of 56 former Schuitema stores and identical
sales at Albert Heijn supermarkets actually increased by only 0.4% year-on-year
(y-o-y) representing a significant slowdown on Q109 sales. This slowdown implies
that things may get tougher for retailers in the second half of the year as
rising unemployment continues to impact on consumer spending. Unsurprisingly,
discount stores will be the main beneficiary of declining consumer confidence
and the report is forecasting that sales from such stores will increase 16% to
reach EUR2.88bn in 2013.

Meanwhile in the food and drink sector, this quarter has seen mixed financial
results from a number of the country's producers. Anglo-Dutch consumer goods
giant Unilever announced a 4.1% increase in underlying sales for Q209, however,
despite the rise in sales net profit fell 4% for the period. The dip in profit
is attributed to price cuts and increased marketing as the company attempts to
maintain sales growth to the detriment of its margins during this period of
recession. Elsewhere, Dutch brewer Heineken posted better than expected
financial results for the first half of the financial year. For the period net
profit climbed 20% y-o-y to EUR489mn while net sales rose 11% to EUR7bn.

Results released this quarter serve to highlight the pressures food and drink
manufacturers as well as retailers are under in the current financial climate,
and the environment is likely to remain tough until well into 2010.

Key Topics Covered:

* Executive Summary
* SWOT Analysis
* Business Environment
* Food
* Drink
* Mass Grocery Retail
* Annual Average Sales per Outlet by Format (EURmn)
* Competitive Landscape
* Appendix
* Country Snapshot: Netherlands Demographic Data
* Food & Drink Methodology

Companies Mentioned:

* Unilever
* FrieslandCampina
* Heineken International
* Ahold

For more information visit
http://www.researchandmarkets.com/research/2336d5/netherlands_food_a

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

Copyright Business Wire 2009