Global Beverage Players Keep The Faith In Bric Markets

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17th September 2009, 01:09am - Views: 629

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Global Beverage Players Keep the Faith in BRIC Markets

BASINGSTOKE,  Sept. 16 / PRNewswire-AsiaNet / --

    Once touted as a unique combination of high growth markets, the BRIC

nations of Brazil, Russia, India and China have enjoyed varying fortunes

during the great economic downturn of 2009. Projections after the first half

of the year from Canadean's new Quarterly Beverage Tracker, point to China

and to a lesser extent India already shrugging off any financial woes with

both countries set for healthy volume rises in 2009. Beverages in Brazil are

set to rise by a more modest 2% this year but demand in Russia is set to

contract by 2%.

    Latest Commercial Beverage Volume Forecasts for 2009

BRIC Market             % Change


    China                            + 8.4

    India                              + 3.7

    Brazil                             + 2.1

    Russia                           - 1.8

    In China, the leading soft drinks players have invested in new product

launches and extensive marketing campaigns and this is expected to be

rewarded with a 15% jump in soft drink sales by the end of the year. June has

highlighted the willingness of the global soft drink giants to invest in

China. During this month Coca-Cola and its bottling partner COFCO opened two

new bottling plants in the Jiangxi and Xinjiang provinces. The two facilities

are part of Coca-Cola's US$2 bn investment plan in China. Meanwhile PepsiCo

opened a new plant in Chongqing and plans to build another five beverage

plants in China over the next two years.

    In India, a long summer period in the north compared to 2008 boosted

sales of soft drinks in the second quarter. Considerable investments by

Coca-Cola and PepsiCo in their manufacturing operations have also contributed

to the first quarter forecasts being revised upwards by Canadean. PepsiCo

announced in June that it would double its investment in India in 2009. Local

Indian companies such as Bisleri and Parle Agro are also strong players in

the Indian market operating alongside the multinationals and all are looking

to capitalise on a future Indian boom.

    The performance in Russia contrasts with the two Asian markets and

Canadean expects all commercial beverage categories to shrink this year with

the exception of hot drinks. Traditionally in times of economic difficulty

consumers have often turned to the low cost tea segment and 2009 is no

exception. The 2% projected decline in commercial beverage includes a

dramatic 11% drop in soft drinks. However, the figures have not been a

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deterrent for soft drinks investment: PepsiCo announced that together with

its partner Pepsi Bottling Group, it is planning to invest US$1 bn in Russia

over the next three years.

    The more developed of the BRIC nations, Brazil, is riding the downturn

well - Brazil was relatively well insulated from financial crisis and

domestic demand has remained strong. As a result the South American market

should see a 2% rise in beverage sales this year. With the exception of dairy

drinks, which will remain stable, Brazil is predicted to see year on year

volume growth of 2% for soft and alcoholic drinks while hot drinks and bulk

water should grow by 4%.

    Despite the deterioration in the global economic environment there is

still plenty of optimism that the BRIC markets will realise their undoubted

potential in the longer term, even the worst affected of the four - Russia.

The evidence suggests that the downturn is seen by many as an opportunity and

that the beverage industry is prepared to live with uncertainty in the

shorter term, in order to reap the benefits in the long run.

    For further details on Canadean's Quarterly Beverage Tracker or any of

Canadean's other beverage reports, please contact Debra Richards on 

tel: +44(0)1256-394-224.

    Editor's Note:

    Canadean is the leading supplier of information, marketing research and

consultancy services to the global beverage and beverage packaging


    With headquarters in the UK but with offices around the world, Canadean

has built a reputation as the benchmark for global beverage market

intelligence. Local operations are now based in Madrid, Buenos Aires, Mexico

City, Hong Kong, Beijing, Shanghai and Sydney.

    Issued by the Corporate Marketing Department of Canadean Ltd, the leading

global beverage research company.

    Canadean Ltd

    12 Faraday Court

    Rankine Road


    RG24 8PF


    Tel: +44(0)1256-394210

    Fax: +44(0)1256-394201


    Source: Canadean Limited


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