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Estonia Food and Drink Report 2008Published by: Business Monitor International Published: Mar. 3, 2008 - 77 Pages Table of Contents
AbstractEstonia has been among the most attractive investment destinations in the Central and Eastern Europe(CEE) region. The country is ranked fifth in BMI’s revised Business Environment Ranking for the foodand drink sectors, given its strong annual GDP growth, rising disposable income and the inflow of foreigndirect investment (FDI). However, the small size of the market - Estonia has a population of only 1.3mn- is one of the main drawbacks to operating in the country. Indeed, Finnish retailer Kesko and GermanLidl recently made a decision to exit the country’s mass grocery retail (MGR) sector. While this leavesmore room for expansion for leading local players, primarily the Rimi Baltic and Maxima LT (formerlyVP Market) chains, this space is clearly limited. Consequently, large-scale market entries are unlikely inthe future.In the meantime, although the food and drink industries are still not as consolidated as elsewhere in theCEE region, the sectors are rapidly rallying around a few key players. One of the recent entrants isEstonia-based Alta Capital Partners, a venture capital firm, which is taking over a number of Balticfood and drink processing companies in a bid to reap benefits from a steady growth in food and drinkconsumption across the region. Nevertheless, international companies are still interested in localinvestment as the demand for higher quality and premium products, especially in the chocolate andalcoholic drink sectors, will spur value growth in the industry. However, the substantial number of price-sensitive consumers, especially in the east of the country willhamper value growth of the food sector. The expansion of discount operators forecast for the comingyears will also support the development of heavy competition in the retail sector in terms of price. All thesame, niche sectors are still available as points of entry and/or expansion, as consumers in the country canbe won over to a new product or wooed by a new retailer with an attractive price proposition. Get Full Details About This Report >> |
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