|
|
Malaysia Food and Drink Report Q3 2008Published by: Business Monitor International Published: Jul. 22, 2008 - 63 Pages Table of Contents
AbstractMalaysia remains an often confusing and contradictory market for food and drink investors. On the onehand, a small population and relative industry maturity pose real challenges to investors, on the other, finda niche for yourself and this increasingly consumer-oriented and resource rich market can providehandsome returns. The dual prospects - discussed at length in BMI’s newly-published Q308 MalaysiaFood & Drink Report - go some way to explaining Malaysia’s mid-table position in BMI’s Food &Drink Business Environment Ratings; strong opportunities do exist, they just are not necessarily as easyto find as in other, more attractive regional markets.A number of events from the past quarter highlight this trend. Leading brewers Carlsberg Malaysia andGuinness Anchor Berhad have continued to temper positivity surrounding their interim results withstatements about how challenging the future remains; repeated government excise increases, a thrivingblack market for alcoholic drinks and spiralling input costs the stated black clouds. Meanwhile food andbeverage producer Yeo Hiap Seng (YHS) has taken the opposite approach, stating positivity whenperformance points to the contrary; YHS has struggled with unsuccessful product launches and a lack ofpenetration in higher value, innovative channels and posted a loss of US$6.2mn in 2007 - a loss it plansto reserve in 2008. However, while fierce competition in the comparatively small food and beverage market might promptthe need for caution, the level of investment being poured into Malaysia’s mass grocery retail industrysuggests that consumerism is still alive and well. French giant Carrefour has recently pledgedUS$374mn towards doubling its hypermarket business and potentially entering the convenience sector,while multinational rival Tesco has confirmed a US$240mn investment in opening 11 new hypermarketsin the country; convenience major 7-Eleven Malaysia, meanwhile, plans to open a further 100 stores. Examining the expansion plans of these leading retailers in more detail, seems to reveal more about whatis at the crux of achieving success in this competitive market; simple expansion is not a viable growthpath in such a small market, expansion needs to be targeted and tailored closely to consumer needs. Tesco, Carrefour, Dairy Farm and AEON have all pledged significant investment towards thedevelopment of private label brands in Malaysia, such products representing the perfect balance betweenthe aspirational consumer’s desire to participate in modern retail and the inevitable price barriers thatexist in what is still an emerging market. The performance of Swiss giant Nestlé this quarter further illustrates the importance of targeted growth.The speed with which Nestlé spotted Malaysia’s potential as an important global hub for halal producehas allowed it to get a head-start on its rivals and it is product development in this category in particularthat is thought to have driven export sales growth of 32% to US$60.3mn in Q108. Get Full Details About This Report >> |
|
|||
|
About MarketResearch.com
|
||||