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55 posts categorized "News from Euromonitor"

March 12, 2014

Chained Operators Finally Committing to Mobile Ordering

ElizabethFriendAnalyst Insight by Elizabeth Friend - Senior Consumer Foodservice Analyst

Proprietary restaurant apps have been gaining traction for years, as many brands have come to see them as yet another channel through which to engage with customers. Chains like McDonald’s have rushed to launch apps that allow customers to view nutrition information, play games, manage loyalty programs or otherwise engage with the brand, but beyond leading pizza chains, many have so far stopped short of offering a true online ordering service.

Still, mobile sales are increasing in popularity across all consumer products channels, and demand for the channel is growing fast. What might have been considered a novel luxury just a few years ago is now something customers are coming to expect, and the growth of online ordering hub GrubHub—which brings the ease of mobile app-based ordering to independent restaurants—has only furthered this sentiment.

As a result, chains are feeling more pressure to generate proprietary mobile ordering apps to better compete. McDonald’s announced this morning that it would be testing digital payment and ordering in select markets this year, and Starbucks is reportedly “actively working on mobile ordering,” according to Bloomberg News. Domino’s Pizza, always an early mover when it comes to technology, reported during the third quarter of 2013 that 40% of its global sales were now coming through digital channels, and that mobile sales were growing even faster than online. The company’s mobile ordering app has been available for years, but a new iteration released last year is more efficient and now compatible with 95% of the smartphone market. According to the company, pizzas can now be ordered in as little as five clicks or thirty seconds, catering to the convenience-based needs of the typical mobile customer. Mobile ordering is far from a US-only trend as well: Domino’s’ UK master franchisee reportedly saw mobile sales double year-over-year in 2013.

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Campari Boosts Whisky Portfolio with North America Centric Acquisition

Jeremy_Cunnington0Analyst Insight by Jeremy Cunnington - Senior Alcoholic Drinks Analyst

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Campari’s €121 million acquisition of Forty Creek Distillery is an attempt to boost its range of whiskies, primarily in North America by buying into the resurgent Canadian whisky category. The acquisition will have the immediate effect of boosting the company’s position in Canada, an increasingly important market following its acquisition of Appleton rum. More importantly though it will allow it to exploit its existing strong distribution in the US to boost the brand’s presence in the largest and fastest growing market for the category. Despite this, Campari still has gaps in its whiskies portfolio to fill.

Stronger in North America

Canadian whisky is sold predominantly in two markets, the US and Canada, accounting for 78%  and 16% of global volumes respectively. These two markets are also the key growth drivers of the category with provisional Euromonitor data indicating that North American volumes of Canadian whisky will increase by 2% CAGR (20 million litres) between 2013-2018, with the US accounting for 95% of that growth. As in bourbon/other US whiskies the category is being driven by flavoured variants as well as more premium offerings such as Forty Creek.

The region, and in particularly the US, is key to the prospects of international spirits companies due it is premium nature. It accounts for 9% of global volumes but 16% of global value sales. Campari’s primary strength in the US, which accounts for 90% of Campari’s regional volumes based on brands such as Skyy vodka. However, this is down from 95% prior to its 2012 acquisition of Appleton Rum which more than doubled Campari’s volume share of the Canadian market to 3%. This acquisition will boost that share in the short term, so much so that it has enough strength to set up its own distribution operations in Canada in 2015. More importantly with Campari’s increasing strength in the US, where it is the country’s ninth biggest player with a 2.5% volume share it should be able to exploit the dynamic growth of Canadian whisky in the US.

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March 4, 2014

GrubHub IPO is Yet Another Sign of Growing Global Demand for Restaurant Delivery

ElizabethFriendAnalyst Insight by Elizabeth Friend - Senior Consumer Foodservice Analyst

GrubHub, the largest online delivery service aggregator in the US, filed for an IPO on Friday morning with a valuation of US$1 billion. The company currently partners with 29,000 restaurants – mostly independents - in 600 cities, allowing consumers to place orders for food delivery directly through the online platform. The company’s US figures are impressive, at US$1.3 billion in reported sales in 2013 from a total of 3.4 million diners and an average of 135,000 orders per day.

GrubHub’s business is confined to the US, but this move speaks to growing interest and investment in delivery service from all restaurant types around the world. Growing sophistication and increasingly hectic lifestyles among global diners have bolstered the appeal of delivery, and it has grown particularly popular among busy office-workers who have a universal appreciation for quick lunches or dinners at home after a long day. Many fast food leaders such as McDonald’s, KFC, and Pizza Hut are thus taking steps to increase their delivery presence in key growth markets like China, India, Russia and parts of Southeast Asia, and independents are following suit as interest in the channel grows. This has made platforms like GrubHub all the more necessary, as they allow small independents to compete on a more level playing field and give consumers a one-stop-shop online delivery experience. It’s also notable that this boom is not confined to emerging growth markets: Japan, in particular, is seeing a boom in delivery demand driven by its ageing population. 7-Eleven’s home delivery service has been very successful for the brand, and McDonald’s added delivery service to Japanese outlets in 2013.

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Global Economic Shockwaves from Ukraine

Sarah-B-Banner

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As one of the world’s largest 25 emerging markets, with GDP of $333 billion (in PPP terms) in 2013, events in Ukraine are attracting worldwide attention.  Yet even more important in economic terms are the increasing strains between Russia and the West. The role of the two economies in commodity markets is of crucial concern.

 

Ukraine’s Weak Economic Performance Belies a Crucial Contribution to Global Commodities

Real GDP growth in Ukraine has been subdued since 2012 – with the economy actually contracting in 2013 – by 0.5%. This weak economic performance has been in part due to political instability and the difficult business environment:

  • Ukraine’s trade linkages with Europe are central to the economy: 62% of Ukraine’s exports and 74% of its imports are to and from Europe. Trade is split roughly equally between Russia and the EU-28. Russia is the destination for 36% of its exports and origin of 32% of its imports. The EU is the destination of 25% of its exports and origin of 31% of its imports. In trade alone the tussle between east and west is therefore apparent.
  • Ukraine has a crucial role in commodities globally. The agricultural sector is important - Ukraine has nearly a third of the arable land of the whole EU, and is the world’s 12th largest producer of cereals and within this its 11th largest producer of wheat. Prolonged unrest is likely therefore to have an impact on the price of wheat. Minerals are also crucial, Ukraine has the world’s largest supply of titanium, the third largest deposit of iron ore and 30% of the world’s manganese ore. Titanium is alloyed with steel and is widely used in the aerospace and industrial sectors; it is found in diverse products from paper to cement to plastics.

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February 26, 2014

Euromonitor Wins Business Intelligence Portal of the Year

We are proud to announce that Euromonitor has won the ‘BUSINESS INTELLIGENCE PORTAL OF THE YEAR’ for the second consecutive year at the Trade & Exports Middle East Excellence Awards 2014.  The award honors and recognizes the best in the field of trade and the region’s top performing companies.

Award Middle East Photo

 

February 21, 2014

Facebook and WhatsApp: Why the Expensive Purchase Makes Sense

Pavel_MarceuxAnalyst Insight by Pavel Marceux - Technology, Communications and Media Contributing Analyst

View Pavel Marceux's profile on LinkedIn

Despite the overwhelming price tag of US$19.0 billion, the agreed acquisition of mobile messaging service WhatsApp – confirmed this week by social media giant Facebook – is a logical step in the right direction. The move has already been criticised for being too expensive, too forceful and too desperate, with many seeing it as a panicky reaction by the world’s dominant social network to its rapidly stagnating brand. However, the WhatsApp purchase is essentially the ticket price for entry into a surging mobile market via a platform that has global, cross-cultural appeal and which has registered rapid uptake in developed economies as well as among emerging market consumers. With mobile telephony the most highly penetrated digital segment globally, Facebook has guaranteed itself a presence among mobile consumers.

Global Mobile Telephone Subscriptions: 2008-2030

  Mobile Telephony

Source: Euromonitor International from International Telecommunications Union/national statistics

Note: Figures over 2014-2030 are forecast

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February 6, 2014

Spirits Consumption: Absolute Volume vs. Shots

WhiskeyTots_sxCommentary from Euromonitor Alcoholic Beverages Team

Translating per capita consumption rates of spirits into the number of shots consumed, whilst offering an eye catching view of the market, tends to distort trends driving alcoholic drinks consumption. Therefore, we would like to add the following clarifications to the recent rash of articles ranking countries by alcohol consumption.

It should be noted that we track alcoholic volume in litres and that was the information provided to the original publication.  While that and resulting stories converted our data into to shots, they did not explain their measurements which could potentially confuse readers of the article for a number of reasons. With the rising momentum of both cocktail culture and the sipping trend alongside a vast array of diverse drinking rituals across the globe, it is worth nothing that abv (alcohol by volume) content of products such as soju (typically within the 21~30% range and the reason while South Korea secures the top slot) is much lower than that of vodka or bourbon, a fact with a wide range of implications when analysing levels of abuse, intoxication or health policy.

The real story here is not really about a host of Eastern European markets topping per capita rankings on the back of a long, rich and much vaunted history of vodka production and consumption but rather the fact that a combination of governmental measures and nascent health awareness trends are either contributing to stagnating spirits consumption or exerting downward pressures while shifting it towards lower abv categories and the aspirational consumption of higher end imported varietals.

Continue reading "Spirits Consumption: Absolute Volume vs. Shots" »

CVS Decision To Cease Tobacco Sales A Confirmation of Long Existing Trends

Shane_MacGuillAnalyst Insight by Shane McGuill - Tobacco Analyst

It’s the kind of disruption to the status quo which - rather than startle - makes you shrug and wonder how the status quo got away with it for so long. On the 5th February the US’s second-largest pharmacy, CVS Caremark announced that it was to stop selling tobacco products from October 2014. It is a development with resonance, as the availability of distinctly unhealthy products such as booze and fags in US drugstores conjured an America of Midnight Cowboy, where tobacco was ubiquitous, culturally vital. But those days are gone. The US tobacco market is in secular decline and CVS seem to have accepted that the shelves of a healthcare provider are a contrary place to find cigarettes.

In other global markets the concept of drugstores/pharmacies selling cigarettes seems utterly anomalous so CVS’s decision, if it is followed by other pharmacy chains (which is by no means certain) would simply bring the US into line with wider international tobacco distribution norms. In this respect, and given the US’s broader dwindling enthusiasm for tobacco, this announcement amounts to a confirmation of existing trends rather than an indication of unfolding ones.  

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February 5, 2014

Breaking News: Coca-Cola Purchases Stake in Green Mountain

Coca-Cola recently announced its plans to purchase a 10 percent stake in Green Mountain Coffee Roasters, creators of the Keurig brewing system. Jonas Feliciano, Beverages Industry analyst at Euromonitor responds to the news and explains how Coke and Green Mountain will benefit from the purchase. 

Watch on Youtube

Have a question or a thought to add? Leave us a comment below.

 

January 28, 2014

What Have We Learned from Davos 2014?

Hilary WalshAnalyst Insight by Hilary Walsh - Economy, Finance and Trade Manager

View Hilary Walsh's profile on LinkedIn

Policymakers, journalists, corporate highfliers, celebrities and academics alike attended the World Economic Forum (WEF) annual meeting in Davos from January 22nd to 25th 2014, where the general consensus was that the outlook for the year ahead was brighter and more promising than it had been for several years. Despite the fact that the currencies of several key emerging economies went into free-fall that same week, the summit ended on a similarly positive note with the key takeaway being that 2014 would be the year when the global economy would return to “normal”.  There were three lessons from Davos 2014, however, which highlighted significant challenges facing the global economy in 2014, namely, the eurozone is not out of the woods yet, Iran is ready to do business with the rest of the world again and long-term employment rates are being threatened by advancements in technology.

The theme of this year’s meeting was “The Reshaping of the World: Consequences for Society, Politics and Business”, acknowledging the recovery but also the need for structural adjustments across the global economy.

Continue reading "What Have We Learned from Davos 2014? " »

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