Report Published: "Netherlands Food & Drink Report Q3 2013"

We expect the Dutch economy to continue sliding further into recession, expecting a full-year of economic contraction in 2013 as a result of rising unemployment and falling property prices eating in to consumer spending. Therefore, we do not expect much dynamism in the country's food and drink market, as consumers increasingly turn their attentions to discounted goods. Indeed, we believe that stubbornly high inflation, weak wage growth, rising unemployment and falling property prices will further erode consumer confidence.

Headline Industry Data (local currency)

* 2013 per capita food consumption growth: +2.86%; forecast compound annual growth rate (CAGR) to 2017 = +3.45%.
* 2013 alcoholic drink value sales growth: +1.02%; forecast CAGR to 2017 = +1.56%.
* 2013 soft drink value sales growth: +1.43%; forecast CAGR to 2017 = +3.05%.
* 2013 mass grocery retail sales growth: +3.15%; forecast CAGR to 2017 = +4.22%.

Full Report Details at
- http://www.fastmr.com/prod/664917_netherlands_food_drink_report_q3_2013.aspx?afid=301

Key Company Trends

Healthier Alternatives Remain In Focus: In April 2013, UK-based Genius Foods expanded its overseas distribution with a listing in the Netherlands. Genius Foods has stated that expansion into international markets is its major focus, as demand for gluten-free products is on the rise. Around the same time, Netherlands-based food processing company Wessanen announced that it was to acquire France-based organic and Fairtrade food producer France Alter Eco (FAE). According to Wessanen, the main rationale for the acquisition was the view that FAE's products and ethos complement Wessanen's existing French business. We also note that CEO Piet Hein Merckens said the company's core categories have continued to grow strongly since the start of 2013.

Heineken Facing Uncertain 2013: Netherlands-based Heineken - the world's third largest brewer - has reported an unexpectedly discouraging start to 2013. With sales down across its regional operations with the exception of Asia, Q1 2013 group volumes declined 2.7% year-on-year. Overexposed to a sluggish Europe and a maturing US market, Heineken's emerging market presence has not been enough to counter stalling growth. With the brewer's results raising questions about the future of the European beer market and its increasingly shaky prospects for recovery, focus on developing markets is set to only sharpen over the coming quarters.

Key Risks To Outlook

Economic Risks Remain Elevated: In addition to the expectation of a year of recession, we see key risks to our medium-term economic forecasts that will further impact the potential for discretionary spending in the Netherlands. Moreover, we warn that the property market correction could yet prove more destabilising on the broader economy than we currently anticipate, while political turmoil in Italy provides a timely reminder of the crisis risks still lingering in the eurozone.

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