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Italy Food and Drink Report Q2 2008

Published by: Business Monitor International

Published: Apr. 30, 2008 - 75 Pages


Table of Contents


Executive Summary
Business Environment
Table: Regional Food & Drink Business Environment Ratings
Italy Food & Drink Business Environment Rating
Table: Global Food & Drink Business Environment Ratings
SWOT Analysis
Mass Grocery Retail
Italy Mass Grocery Retail Industry SWOT
Food And Drink
Italy Mass Grocery Retail Industry SWOT
Macroeconomic Outlook
Table: Italy - Macroeconomic Forecasts
Retail
Regional Overview: The ‘Greening’ Of MGR In Western Europe
Table: MGR Eco-Friendly Strategies In Western Europe
Industry Forecast Scenario
Sales Value By Format In Italy's Mass Grocery Retail Market (US$mn)
Table: Sales Breakdown By Retail Format Type
Industry Developments
Market Overview
Table: Structure Of Italy's Mass Grocery Retail Market By Estimated Number Of Outlets
Sales Value By Format In Italy's Mass Grocery Retail Market (US$mn)
Annual Average Sales Per Outlet By Format - 2007
Food And Drink
Regional Overview: Confectionery in Western Europe
Table: 2006 Western Europe Market Share (%)
Table: Western Europe Confectionery Market Share By Category (%), 2005
Industry Forecast Scenario
Food
Table: Italy Food Consumption Indicators
Table: Food Sub-Sector Indicators
Drink
Table: Drinks Indicators
Industry Developments
Agriculture
Food
Drink
Market Overview
Agriculture
Table: Italy Organic Agricultural Data
Table: Italy Agricultural Sub-Sector Production
Table: Italy Dairy Industry Data
Food
Drink
Tobacco
Industry Forecast Scenario
Table: Tobacco indicators
Industry Developments
Market Overview
Competitive Landscape
Key Players
Mass Grocery Retail
Key Players In Italy's Mass Grocery Retail Sector - 2007
Food and Drink
Key Players In Italy's Food & Drink Sector - 2007
Regional Company Case Studies
Drink: The Coca-Cola Company In Western Europe
Table: Unit Case Volume Growth (%)
Table: Revenue And Income For EU (US$mn)
Drink: Diageo In Western Europe
Table: Diageo’s Strongest Brands And Future Strategy For Western Europe
Mass Grocery Retail: Ahold In Western Europe
Table: Ahold Financial Results, 2003-2006 (EURmn)
Company Analysis
Mass Grocery Retail
Conad
Food
Gruppo Galbani SpA
Perfetti van Melle SpA
Gruppo Barilla
Carapelli Firenze SE SpA
Drink
Davide Campari-Milano SpA
Food & Drink Ratings Appendix
Introduction: Revised Methodology
Ratings Overview
Ratings System
Indicators
Table: Limits Of Potential Returns
Table: Risks To Realisation Of Returns
Weighting
Table: Weighting
BMI Forecast Modelling
How We Generate Our Industry Forecasts
Retail Industry
Sources


Abstract

Italy has a track record of implementing extremely zealous labelling requirements for food and drinkproducts sold in the country, as discussed in BMI's newly-published Q208 Italy Food & Drink Report. In2008 this has continued with additional labelling requirements introduced for olive oil. Often theserequirements are presented as necessary to ensure food safety or to prevent fraud, however they often gobeyond what is legally allowed under European Union (EU) legislation and it could be suggested that therestrictions are simply a way of battering foreign competition and assisting local producers. Thisobsession with the safety of foreign produce makes it ironic that in March 2008 the producers of one ofItaly’s most famous food products - buffalo mozzarella - were hit by a significant safety scare when themilk from 66 buffalo herds was found to contain unsafe levels of the cancer-causing substance dioxin.The discovery led to mozzarella imports being banned in Japan and South Korea imports and promptedthe EU to ask Italy for urgent safety assurances. Notably, this revelation came after a report in July 2007from the EU commission issued a damning verdict on Italy’s compliance with the Hazard Analysis andCritical Control Point (HACCP) requirements, which were devised to harmonise EU food safetyrequirements. The report highlighted that across all regions Italy’s Factories and plants in do not complywith regulations that govern the post-mortem examination of animals, safety checks on raw milk andgeneral operational practices. Italy’s lack of safety regulations are likely to come under much greaterscrutiny after the dioxin scare and the negative publicity surrounding buffalo mozzarella couldconceivably spill over into Italy’s other food categories.

Italian regulations are far more zealously applied to products produced outside of Italy. In 2006, thesafety of two separate shipments of durum wheat from the USA and Canada was called into question in aregion where local durum producers are known to be unhappy about the importing of foreign agriculturalproducts. Following the avian flu scare in 2005 Laws were passed that required farm, slaughter houseand country to be tagged onto all poultry products - legislation which favoured Italian producers and thatwas judged to breach EU single market rules. Similar country of origin legislation was implemented fortomatoes in 2006 along with a more stringent definition of what could be called ‘passata’ (uncookedtomato pulp) to try to limit Chinese tomato imports after concerns were raised from Italian tomatogrowers and processors. Most recently, in 2008 new rules where implemented to force olive oil producersto mark labels with the origin of the olives - a rule which is likely to encourage discrimination againstolive oils produced outside of Italy and has again been judged to be illegal by the European Commission.


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