A transition in the Swedish milk market took place in late 2011 when the dairy giant Arla acquired Milko, reaching an almost monopolistic state. The Swedish Competition Authority required Arla to sell one of its recently acquired dairy plants, purchased from the country’s largest grocery retailer Coop. The company pledged to use the plant to sell its own private label milk for 5 percent lower than competitors, starting a private label milk frenzy with companies trying to outdo each other in price points. Due to this competition, Euromonitor expects private label milk sales to increase by 20 percent by the end of 2013.
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As both McDonald’s and Panera prepare to take their restaurant brands to the coffee aisle in US grocery stores, Euromonitor Beverages Analyst Jonas Feliciano discusses whether chained foodservice players have any advantage in this fast growing category and the impact that these moves will have on the beverages industry as a whole.
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Part One - Analysis
Part Two - Taste Test
Virginia Lee, Senior Research Analyst and Chris Schmidt, Consumer Health Industry Analyst discuss the recent push by milk processors to consider chocolate milk as a post-workout beverage. With products like DYNAMOO The Mobile Milk by Agropur Inc. Division Natrel USA, milk manufacturers hope to tackle the category dominated by protein drinks such as Muscle Milk. The Milk Processor Education Program (MilkPEP) has been actively advertising chocolate milk with ads featuring athletes such as Carmelo Anthony, Dara Torres, and Hines Ward. Lee and Schmidt discuss the effectiveness of the push and try out DYNAMOO.Watch Part One on Youtube
Presentation Time: 13:10 - 14:20
Location: Tokyo, Japan
Title of Presentation: Global Trends in Mineral Water
Presentation Content: The session will educate the audience on global trends in mineral water and how the Japan is positioned in the global market. The session will also discuss the competitive environment and delve into growth prospects within the industry.
For more information: http://minekyo.net/
Comparative performance of low/non-alcoholic beer against total beer sales shows a mixed result amongst the top, mature markets. The relatively low base of the low/non-alcoholic beer category partially explains its performance, especially in countries such as Japan, UK, and Canada, where maturity of demand has only become evident in recent years. However, the underlying growth drivers, that stimulate demand, work in a different manner. In the context of the US and Germany, we see a level of company-driven demand stimulants that have revived the market, but in the past this had been temporary.
When it comes to beverages, particularly fizzy drinks such as beer and carbonates, the glass bottle is generally perceived as delivering a high-quality consumer experience. In 2013, metal packaging manufacturers seem to have taken this as their main challenge, coming up with various innovations which aim to not only enhance the experience of drinking from a metal beverage can but also generally improve the perception of this packaging format. Euromonitor International’s latest beverage packaging research, which has just been published, reveals how this has paid off, with beverage can volumes growing by 1.9% in 2012, three percentage points higher than forecast in our last edition.
New taxes were recently passed in Mexico in response to the country named as the world’s most obese nation. These taxes, which affect sodas and junk food, aim to curb the obesity rate. Soft drink manufactures are concerned with the tax as Mexico is Latin America’s largest market for soda, with diet soda having no strong foothold in the country. Jonas Feliciano, Beverages Industry Analyst at Euromonitor states that although US consumers may be concerned with a potential loss of Mexican-manufactured Coke, soft drink manufacturers have larger concerns with initial Euromonitor forecasts showing a 3 percent decline of soda sales in the country.
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Euromonitor International highlights that globally, low/non-alcoholic beer is the fastest growing category of the past five years, with a 7% volume CAGR, although off a low base. This category is driven by its key markets that are predominantly present in the MEA region, with a 35% volume share. Growth rates declined in 2013, but the category potential remains strong and two distinct strategies for development have emerged.
A Soft Drink Option: Saudi Arabia’s Case
When it comes to non-alcoholic beer in the Middle East and North Africa (MENA) region product positioning and consumer perception of this category have a uniquely dissimilar dynamic to the rest of the world. The cultural context in this region is the key determinant of product positioning and consumer perception of non-alcoholic beer. In predominantly Muslim countries such as Iran and Saudi Arabia, in order to avoid the alcohol connotation, ‘non-alcoholic beers’ are not positioned as such. Any reference to these products’ alcohol content, even if miniscule, can deter consumers from buying them and even retailers from selling them, as they would be considered non-halal, or non-abiding to Islamic law. So the actions of companies in the MENA region in recent years have pushed a promotional campaign that is changing the identity of this category.
The Mexican soft drinks industry has been reeling this week following the new budget proposed by the Peña Nieto administration, including, among other reforms, a US$0.08/litre (Mx$1/litre) tax on "sugary" drinks. While taxes on soft drinks have been proposed and rejected in the past, this resolution is expected to pass in mid-November due to strong backing from the administration.