Newly released market study: Canada Food & Drink Report Q4 2015

Canada's economy is likely to have undergone a technical recession in the first half of 2015 (defined as two consecutive quarters of negative growth) as the repercussions from falling oil prices hit the resource industry, and leading indicators show that the manufacturing sector is struggling to regain strength. Despite continued growth in private consumption, deteriorating labour market dynamics mean this trend is likely to be unsustai nable over the coming quarters. The food market is set to be an underperformer in Canada over our forecast period, with stronger growth in drinks and mass grocery retail.

Headline Industry Forecasts (local currency)

2015 per capita food consumption growth = +1.5% y-o-y; forecast compound annual growth rate (CAGR) 2014 to 2019 = +1.5%;
2015 alcoholic drink sales growth = +3.8% y-o-y; forecast CAGR 2014 to 2019 = +4.2%;
2015 soft drink sales growth = +4.2% y-o-y; forecast CAGR 2014 to 2019 = +4.1%;
2015 mass grocery retail sales growth = +3.6% y-o-y; forecast CAGR 2014 to 2019 = +3.5%.

Full Report Details at
- http://www.fastmr.com/prod/1058364_canada_food_drink_report_q4.aspx?afid=301

Key Industry Trends And Developments

SunOpta Grows in Canada: In August 2015, Canadian natural health products company SunOpta entered a deal to buy Niagara Natural Fruit Snack for around CAD6.7mn (USD5.1mn). Niagara Natural claims to be an innovative producer of healthy non-genetically modified organisms and organic fruit snacks. The acquisition will allow SunOpta to extend its market presence in the fruit snacks segment, as it will now have manufacturing operations in both the east and west of Canada. Under the terms of the deal, Niagara Natural's 35 employees will join SunOpta. The transaction is expected to have an immediate positive impact on SunOpta's cash flows and be accretive in 2016 to earnings on a GAAP basis (FBR). This follows SunOpta's move to acquire frozen fruit business Sunrise Growers for USD450mn at the end of July.

The Canada Food & Drink Report features BMI Research's market assessment and independent forecasts for food and drink expenditure, consumption, sales, and imports/exports and forecasts for the mass grocery retail sector. The report also includes analyses of major regulatory developments, the background macroeconomic outlook and competitive landscape comparing national and multinational companies by leading products and services, sales, investments, partners and expansion strategies.

BMI's Canada Food & Drink Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the food and drink industry and the mass grocery retail market in Canada.

Key Benefits

* Benchmark BMI's independent food and drink industry forecasts for Canada

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