Report Published: “United Kingdom Agribusiness Report Q3 2013”
Davies will succeed Paul Drechsler who earlier in 2013 announced his plan to step down from the role following around 10 years. Andrew joins our company at a very exciting time as the construction industry begins to see some positive signs of recovery from this prolonged recession. The company is performing well and we are on track to deliver our projected turnover and objectives for 2013. We will also finish the year with a significantly improved order book providing strong prospects for growth in 2014, said James Wates, chairman of the group, which has offices in Leeds. Wates added: Paul Drechsler leaves Wates in excellent shape having built our business into a 1bn group. Andrew will develop our business further, and we are looking forward to welcoming him as our new chief executive in January. Mr Davies is currently managing director of BAE Systems maritime business and graduated in business studies from Sheffield University. (c) 2013 Euclid Infotech Pvt. Ltd. Provided by Syndigate.info an Albawaba.com company
United Kingdom high-strength premixes market: Worst performing sector of alcoholic drinks during 2012
– Beef consumption growth to 2016/17: 8.5% to 1.4mn tonnes. This will largely be a result of population growth, as well as economic recovery and the continued popularity of Sunday roasts. – Milk production growth to 2016/17: 6.9% to 14.1mn tonnes. We expect production to recover slightly; however, we note that EU CAP reforms could make UK farmers less competitive. – Real GDP growth: 1.1% year-on-year (y-o-y) in 2013 (from 0.2% y-o-y in 2012). – Consumer inflation: 2.0% y-o-y in 2013 (down from 2.9% y-o-y in 2012). – BMI universe agribusiness market value: 1.8% y-o-y decline to US$27.3bn in 2012/13, forecast to grow on average 1.8% annually between 2011/12 and 2016/17. View Full Report Details and Table of Contents Industry Outlook Wheat harvest declines in the UK look set to drag on overall EU estimates, as wet weather has reduced plantings and forced the EU’s third largest producer to import record amounts of milling wheat for the 2012/13 season. We already see downside risks to our outlook for UK wheat production to rebound to 15.2mn tonnes in 2013/14, and it appears that the crop could be facing steep declines, as 25% of winter wheat plantings were lost due to wet weather. The declines in UK production are likely to keep Paris wheat futures supported over the coming months. Dairy producers will be affected by lower production prospects and high costs depending on their product segmentation and geographies. We believe Dairy Crest has been particularly affected because of its focus on fresh milk in the UK. The company announced a GBP17.1m loss in FY2012 as the performance of its milk processing division, from which it gets most of its revenues, was particularly poor. The company also recently lost key supply agreements to Tesco and Starbucks, which exemplify the increasingly competitive environment faced by local dairy companies and the inability of most to cope with squeezing margins.
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The company’s volume sales decline was lower than that of Diageo and Fentimans, the majority of which sell ‘alcopops’. Beverage Brands capitalised on the premixed cocktail trend and launched WKD Remix. Although attempts were made with heavy investment in marketing, it did not help to strengthen its position. This included a viral advertisement involving men at a gym riding exercise bikes quickly to attract women but then slowing down as soon as the women turned away. In the UK, RTDs/high-strength premixes was one of the worst performing categories in alcoholic drinks in 2012. This was predominantly due to a continued poor performance from spirit-based RTDs, which accounts for a 77% volume share of the wider category. Spirit-based RTDs performed worse than expected, however, in 2012, registering a total volume decline of 9%. This was partly due to the growing popularity of flavoured ciders. RTDs and flavoured ciders appeal to the same demographic of young drinkers (aged 18-24) and women due to their bright colours and sweet taste. As the popularity of flavoured cider increases, RTDs will continue to contract, posting a total volume CAGR decline of 2% over 2012-2017. RTDs is the fastest moving category in alcoholic drinks and, as it lacks traditional roots, is very driven by fashion. Consumers with a declining disposable income are moving more upmarket when they do spend, away from RTDs.