Analyst Insight by Elizabeth Friend - Senior Consumer Foodservice Analyst
Whenever an up-and-coming restaurant brand IPOs, the most important question to ask is whether the chain belongs to a true trend or simply a fad, one more flash-in-the-pan in a long line of cupcake shops, cereal cafés, and new takes on frozen yogurt. And in the case of Shake Shack, this question may be more important than ever: Not only is the chain part of a strong consumer movement that has already been booming for many years, but it is one of many chains looking to cash in on the same surge in demand. Fortunately, better burger competitors have history on their side, and there is plenty of reason to think that they are going to be around for many years to come.
Unlike cupcakes, which carved out an entirely new dining occasion based on giving adults permission to grab cupcakes on their way home from work, better burgers’ success hinges on a pastime that is about as traditional as it gets in American foodservice. Going out for burgers and fries is something consumers have been doing for decades, and better burger chains have given them a new—arguably better—way to experience a perennial favourite.
Continue reading "Three Questions to Ask About the Shake Shack IPO" »
Analyst Insight by Nicole Tyrimou - Beauty and Personal Care Analyst
While beauty devices have been part of the beauty market for some time – from hair dryers to straighteners and laser hair removal – it has only been in the past five years that the category has expanded into skin care. Increasing demand for more sophisticated offerings in skin care in mature markets as well as skin care’s great dependence on the gadget-loving Asia Pacific region has helped beauty devices garner more attention in skin care.
Facial cleansers – the entry-level category
The acquisition of Clarisonic by L’Oréal in 2011 cemented facial cleansing devices as the entry-level skin care category. With design based on the principle of the electric toothbrush, their popularity has grown for three key reasons. Their high-performance characteristics cater to consumers’ desire for greater efficacy and more specialised products in skin care. Their claims going beyond thorough cleansing to improving skin quality by reducing the appearance of pores and skin tone adds value for consumers. Lastly, the major media buzz and beauty bloggers’ endorsements of facial cleaners have elevated their image to a “fashionable” or even “cult” beauty product for beauty enthusiasts.
Continue reading "Are Beauty Devices Changing the Rules in Skin Care?" »
Analyst Insight by Hope Lee - Senior Beverages Analyst
For years, liquid concentrates, worth around US$9 billion by retail value in 2014, seemed a neglected small category in the vast soft drinks market, and analysts once wondered if there was any glimpse of life and thought further investments might be questionable. The fact that there is no single brand in liquid concentrates reaching the billion dollar sales mark means the interest of manufacturers is exceedingly lacklustre. However, the economic slowdown or outright recession in some developed markets and new product development seemed to revive the category – the expansion of SodaStream and Kraft’s MiO and the ongoing popularity of Robinsons and Teisseire has put liquid concentrates back in the spotlight again. Some consumers who traded down to liquid concentrates when they were short of cash may well stay within the category, even when their income bounces back. Euromonitor International’s latest data show that the global off-trade volume sales increased by around 3% in 2014, and the category is expected to generate net growth of over US$900 million in 2014-2019. This figure does not seem to offer massive business opportunities compared to juices and energy drinks, but it is still worth looking at where the growth areas are and the state of play of the major companies.
Continue reading "World’s Multi-million Dollar Liquid Concentrates Brands" »
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Target Corp has recently announced the closure of its stores in Canada, after less than 2 years in operation. Svetlana Uduslivaia, senior analyst at Euromonitor International, discusses reasons for the retailer's poor performance in Canada, from general macro-trends to the retailer's lack of clear strategies in a highly developed marketplace in the country.
Continue reading "Reasons Target to Close Canadian Operations" »
Analyst Insight by Audre Biciunaite - Contributing Analyst
High rents, combined with costly transportation and other must-haves, make life in many of the world’s major cities undeniably expensive. Certain expenditure categories, however, are significantly more important than others in their impact on consumer spending dynamics.
Consumer expenditure highest in European and American cities
Despite some minor variation that occurs from one year to another, the list of the world’s top 20 highest-spending cities tends to be fairly stable, dominated by the “usual suspects” from Europe and the US. In 2013, the highest per capita consumer expenditure was recorded in Zurich, followed by three American cities: Boston, San Francisco and Washington.
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2015 will see the global economy grow at its fastest-rate in three years. The acceleration is built on stronger growth in the USA. The low oil price looks likely to be a feature of the year as does the weak recovery in the eurozone which risks fizzling out all together with the spectre of deflation hanging over the region. Overall, the outlook for the global economy continues to be uncertain as risks remain pronounced.
Continue reading "Top 3 Trends in Economy, Finance and Trade for 2015" »
Event Name: International Production & Processing Expo
Date: January 27, 2015
Location: Atlanta, Georgia
Event Description: International Poultry Expo, International Feed Expo, and International Meat Expo integrated their trade shows in 2013, under the International Production and Processing Expo. The 2015 IPPE will bring together more than 1,000 exhibitors and 25,000 attendees in Atlanta from January 27, 2015. We look forward to seeing you there! Registration for IPPE includes entrance to the trade show exhibits and select education programs.
Speaker: Svetlana Uduslivaia - Research Analyst
Session: Pet food retail: update on current state and opportunities for future growth
Continue reading "Euromonitor to Speak at International Production & Processing Expo 2015" »
Analyst Insight by Shane MacGuill - Tobacco Analyst
The almost total thawing out of diplomatic relations between the US and Cuba, announced yesterday, 17th December by President Barack Obama, could lead to the smouldering of Cuban cigars from coast to coast in the US$8 billion dollar US cigar market. The biggest winners from the relaxing of the trade embargo with Cuba are likely to be Imperial Tobacco plc, the world’s 4th largest international tobacco company and part owner, with the Cuban government of the state cigar company Corporacion Habanos and the US tobacco specialist stores which currently supply around 40% of the country’s cigars and through which high price point Cuban offerings will largely be distributed.
Imperial Tobacco inherited a 50% holding in the Cuban state cigar company Corporacion Habanos through its purchase of the French-Spanish tobacco giant Altadis in 2007. It is thought that the company, which distributes the Cohiba and Montecristo premium cigar brands outside the US and non-Cuban brands such as Romeo y Julieta within it, has been anticipating the relaxation of the trade embargo for some time and has plans to ramp up production by 50% to meet increased demand. However, in an analyst briefing in November 2014, Imperial CEO Alison Cooper made reference to some supply issues in Cuba which may or may not impact this target:
Continue reading "Diplomatic Normalisation Promises Cuban Evolution for US Cigar Market" »