Retail Foods - Annual 2012

An Expert's View about Retail Sales in Singapore

Posted on: 28 Nov 2012

Singapore has a dynamic retail market, with several retailers carrying a diverse range of products.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report - public distribution Date: 11/1/2012 GAIN Report Number: Singapore Retail Foods Annual 2012 Approved By: Chris P. Rittgers Prepared By: Bernard Kong Report Highlights: Singapore has a dynamic retail market, with several retailers carrying a diverse range of products, from basic in-house labeled products to high end specialty and organic foods. Demand is underpinned by an affluent domestic population, and also one of the largest expatriate communities in East Asia. U.S. products have some market share, but competition is fierce in this relatively open market. Post: Singapore Table of Contents Executive Summary .................................................................................................................... 3 I. MARKET SUMMARY ............................................................................................................. 3 II. ROAD MAP FOR MARKET ENTRY ................................................................................ 10 III. COMPETITION IN THE RETAIL MARKET ................................................................ 20 IV. BEST PRODUCT PROSPECTS......................................................................................... 41 GAIN REPORT Page 2 Executive Summary: I. MARKET SUMMARY 1. Singapore in summary Singapore is an ASEAN member state that sits at the heart of the ASEAN (Southeast Asia) region, which is now coming together under the ASEAN Community. It is ASEAN’s most affluent nation with its GDP per capita reported at more than US$ 52,000 today. Its economic growth patterns now track that of the world economy because its export manufacturing sector has key targets in North America, Europe and Japan. Current estimates of economic growth are becoming increasingly cautious because of the problems in the EU, concerns over China’s apparent slowdown and also some worries over the USA after the Presidential Election is over. Because it is already a high income economy, analysts suggest that its medium term growth is likely to average between 3% and 5% per annum, which would be largely supported by its involvement with a dynamic Asian regional economy. Although its domestic population is small at around 5 million persons, it is one of Asia’s largest importers of agrifoods, processed foods and drinks. Its imports of such products were valued at US$ 12.1 billion in 2011. The high value of imports exists because Singapore does not produce much food and is a re-export base for many products that are ultimately consumed in other parts of Asia. In essence, it is a free port style showcase for products that can be marketed through its re-export channels. A multitude of products are re-exported, some of which are relevant to the USA, e.g. frozen meat and poultry, fresh fruits and vegetables, confectionery, cookies, canned foods, sauces, soft drinks, alcoholic drinks and pet food. Key re-export destinations exist across the region, with Indonesia becoming more important every year as a result of its economic boom. Singapore’s domestic population is quite well segmented and ranges from lower income to the super- rich, which is reflected in the strategies of the food and drink retailing industry. The bulk of the population is regarded as middle income consumers, who are gainfully employed and lead a relatively comfortable lifestyle, albeit in an environment of dramatically increasing living costs. Singaporeans represent the largest pool of active consumers who will continue to drive increased consumption of imported food and beverages into the future. In addition to this, one of Asia’s largest populations of expatriates, including a large American community, is a market for a wide range of products that do not have significant demand from Singaporeans. Trade sources comment that this market is also being impacted by higher costs (housing, especially) and scaled-down expatriate benefits, because Singapore is no longer a hardship location. Added to this are problems arising from being paid in foreign currencies, which have weakened significantly against the S$ in recent years, e.g. the US$, which has weakened by around 20% since 2009. GAIN REPORT Page 3 There are varying reports in Singapore about consumer confidence ranging from a neutral stance to one of growing pessimism. When considered in terms of longer term trends, consumer confidence in the broader population is reported by retailers to at a low level in 2012. This situation arises from the weaker economic conditions now being reported. Inflation is being reported at around 5%, which is very high on a historical basis for Singapore. While the government is controlling inflation of basic products, the costs of housing, transportation and power/water continue to increase at quite high rates. Trade sources comment that the lack of consumer confidence results in many consumers becoming involving in “bargain hunting/seeking” in retail channels. This “bargain seeking” trend is supported by a recent Neilsen survey of on-line shopping in Singapore, which revealed that close to 60% of Singapore’s on-line shoppers are seeking bargains, which is much higher than the Asia Pacific average at around 40%. This trait is confirmed by retailers in their comment that in some categories, the bulk of sales are now being made only when a price promotion is run and, that in many cases, only the brand being promoted sells in high volumes. Economic growth forecasts for 2012 now range from 0.8% to 1.5%, with the possibility of a technical recession arising within 2012. Forecasts for 2013 are reported by economic analysts to be a “bit hazy”, mainly because of the uncertainty situation over what is going to happen in the Euro-zone. Some analysts foresee growth at between 3% and 4% under the current status quo situation, but warn that a real recession could be on the horizon, if the Euro-zone crisis worsens and China’s apparent economic slowdown turns out to be worse than is currently being reported. Another factor is also coming into play in the future development of Singapore’s food and drink market, namely slower population growth than over the past 10 years. This arises because the Singapore government is limiting inward migration as a result of complaints from its electorate over the rapid pace of such migration between 2006 and 2010. 2. Singapore’s food retail and wholesale market According to the government’s 2010 retail industry survey: Singapore’s food and drink retailing sector comprises about 3,000 supermarkets, hypermarkets, department stores, convenience stores and provisions shops that sell agrifoods, processed food and drinks. In addition to this, Singapore also has around 1,300 other specialty food and drinks outlets. The sector, which employs around 38,000 people, reported total sales of US$ 9.1 billion in 2010. Trade sources comment that this fragmented situation is correct, although it hides the fact that food and drink retailing is now concentrated within the supermarket, convenience store and chain store sub- sector, which reports total sales of around US$ 3 billion in 2010. These channels are the most important targets for agrifoods, processed food and drinks imported from the Developed World, and from the ASEAN and Asian based manufacturing plants of the multinational food and drink companies. GAIN REPORT Page 4 Modern retailers now control up to 60% of the retail sales of most retail packaged food and drinks. Such retailers control lower shares of sales of indulgence products such as confectionery, ice cream and soft drinks (between 60% and 70% share), which need broader based distribution channels. The balance of the industry comprises a large number of small family owned shops, which range from neighbourhood grocery (Mom and Pop-type) stores to high end specialty shops, e.g. retailing wines and spirits, and others such as butchers, bakeries and confectionery shops. The sector also includes traditional wet and dry markets, but these only carry limited products that are relevant to U.S. exporters, with such products including fresh produce, i.e. apples, oranges, grapes, plums, potatoes and celery. Due to the weaknesses in the mass market, this is now an area of the market where better quality produce imported from China is making competitive headway against the USA and other Developed World suppliers. These neighbourhood-based markets are still important because the older generation (over 45 years of age) and lower and middle income groups like to shop in them for fresh products, i.e. meats, poultry, fish, seafood and fresh produce. They are reported to have developed into an occasional shopping for more wealthy Singaporeans, many of whom only use them at weekends. Based on newly announced government investment policies for neighbourhood development across Singapore, these markets will not disappear from the retail industry in the foreseeable future. Singapore’s wholesaling industry involved in trading in food, drinks and tobacco is highly fragmented. The industry comprises 3,100 firms with total sales estimated at around US$ 7 billion in 2010. This situation is confirmed by industry sources, with many being family-owned businesses involved in commodity style exports, mainly re-exports of products from Singapore. These companies are handling imports from the Developed World. Some are also regional marketing operations of multinationals, e.g. those involved in the alcoholic drinks industry. As Singapore imports most of its foodstuffs, the global changes in commodity and freight prices have a direct impact on retail sales of agrifoods, food and drinks. In some cases, i.e. staple foods, this impact was delayed by retailers holding back on increasing prices for fear of damaging their markets. Singaporeans are generally price sensitive, and become even more so in times of economic uncertainty and actual economic downturn. The uncertainties that exist in the economy through 2012, and continuing high levels of inflation versus its normally very low level of less 2%, have resulted in Singapore having the lowest consumer confidence rating in ASEAN (Southeast Asia) according to MasterCard International’s recent studies on this matter. GAIN REPORT Page 5 A review of the financial statements of retailers and wholesalers as part of this study indicates that businesses that are focused on the high-end of the market are doing very well in terms of their growth in sales and profits. This exists because Singapore’s highest income groups are willing to spend on high quality and indulgent specialty foods and drinks, as well as products that have some other form of differentiation, e.g. organics or wellness products. In the other areas of the market, i.e. the mid-range and mass market, the situation is complex with: traders in staple foods and targeting the lower end market having problems due to higher product costs, higher business costs and pressure from major retailers to maintain low prices. This is also reflected in the retailers serving this area of the market, where a damaging price war occurred in the first quarter of 2012; and, distributors serving the mid-range market are only doing well if they are operating with a well differentiated brands that are being supported through advertising and promotions in retail. The tendency in this area of the market is now to drop imported brands that are not supported by their principals and so are deemed non-performing. In retail, this results in an expensive delisting of such products. 3. Singapore’s food imports Singapore’s imports of agrifoods, processed food and drinks increased in value to around US$ 12 billion in 2011, up from US$ 5.7 billion in 2006. The USA’s share of Singapore’s imports is small and ranged from 6% to 7% over the past 5 years (see chart below). Recent Trends in Singapore’s Imports of Agrifoods, Processed Food and Drinks – 2006 to 2011 GAIN REPORT Page 6 Source: Official Trade Statistics As can be seen from the Chart above, Singapore’s imports surged from their 2010 levels. This growth is driven by a complex range of factors, most related to the food service industry and to growth in re- exports driven by the boom in its neighbouring economies. The USA continues to be a minor supplier of agrifood commodities, processed food, drinks to Singapore. Singapore is not a major producer of agrifoods or processed food and drinks, consequently, its imports of these products are diverse and broad based (see chart below). Singapore Imports of Agrifoods, Processed Food and Drinks – US$ 11.6 Billion in 2011 GAIN REPORT Page 7 Source: Official trade statistics (Excludes animal feed and other non-food products) Its imports are diverse, largely because its domestic production is not broad based and, additionally, because its re-exporters are trading a wide range of products into the Asian region. Beverage imports lead the market because of the strategy of using Singapore as a hub for re-exporting alcoholic drinks. As an example, re-exports of spirits, i.e. whisky, cognac, vodka, etc., comprised around 90% of total imports in 2011. Re-exports also tend to be high in frozen meat, poultry and offal, certain fresh and dried fruits and vegetables, confectionery, canned products, beer and soft drinks and juices. The bulk of many other products categories are consumed in Singapore, e.g. chilled foods, e.g. dairy and meats, perishable fruits and vegetables, and some types of frozen foods. 4. Advantages and challenges for U.S. exporters in Singapore’s retail market GAIN REPORT Page 8 Advantages (Sector Strengths and Market Challenges (Sector Weaknesses and Opportunities) Competitive Threats) Singapore is reliant on imports for Singapore’s retail food market is now in virtually all of its food and drink a maturing state, i.e. still growing but not supplies. This situation will not change growing at the rapid rates seen in the past in future. 10 years or so (Note: The Singapore government now has a policy that will Singapore is one of the wealthiest reduce growth in emigration into markets in Southeast Asia, and it is a key Singapore and so much slower location for expatriate families to reside population growth rates than in the in East Asia. This situation will not past). change in future. It also has a very small lower income group, so virtually the Singapore’s now evident multi-track whole population is a target market. market is creating challenges for products that are commodities, poorly Singaporeans have a modernized diet differentiated or not well supported by that includes a wide range of foreign marketing activities in retail channels. concept foods, which has expanded on The market for staples is also weak and the back of demand from the younger mature under current weak economic generation (under 40s). conditions. Singaporeans are open to products from Singaporeans are generally price the Developed World that is high quality sensitive when it comes to buying and value-for-money. The population has everyday food items, e.g. meat and a large number of single adults who are poultry, fresh fruits and vegetables, very clearly indulgent in their spending breakfast cereals (a younger generation patterns when economic times are good. product) and soft drinks. This is This benefits premium imported meats, underpinned by imported food price some dairy products, exotic fruits, inflation over the past 5 years. It has confectionery, wines and spirits, gift provided opportunities for ASEAN-made items and pet foods. and Chinese suppliers to increase their market shares at the expensive of Singaporeans generally perceive the exporters in the Developed World, e.g. USA and its brand-owners as quality the USA and Australia. suppliers of food and drink products. The Singapore market is well segmented U.S. brand-owners and some USDA with competition now coming for U.S. cooperators have good shares in some of exporters from the factories of Singapore’s mainstream market Asian/ASEAN based multinationals, segments (breakfast cereals and some China (upgrading supply bases) and the fresh fruits) and smaller niches “traditional” supply bases in Australia, (organics). the EU and New Zealand. U.S. exporter weaknesses in not always servicing Singaporean importers, retailers and end consumers in a way that GAIN REPORT Page 9 closely meets with their demand requirements and expectations, e.g. on order sizes, packaging sizes and formats, taste, pricing that “fits” the market (marking to market), and for promotional support. This trait is viewed negatively by importers. Some products that are exported from the USA are not understood by Singaporeans and are never explained to them, e.g. ready-to-consume prepared TV dinners. Such products do not have a “fit” in local food culture. The government is continuing to express concerns that the developing crisis in the Developed World, specifically the EU, will have negative impacts on Singapore’s economic prospects at some stage over the next 3 years. It also has some concerns over the slowdown in China and uncertainties over the situation in the U.S. economy after the election is over. Domestically, it is still concerned that a possible bubble, now in all areas of the housing market, could become a problem should the EU’s problems spin- off into a major global economic crisis. II. ROAD MAP FOR MARKET ENTRY 5. Entry strategy Singapore is a highly competitive market that operates in an environment where: there are very powerful retailers that control access to shoppers and have very strong bargaining power over suppliers of all forms of food and drinks, fresh, frozen and shelf stable retail packed. GAIN REPORT Page 10 The major supermarket and hypermarket operators control the whole retail market by actively segmenting it around different store concepts (and store brands/banners) and merchandising strategies that target the low income group through to the high income groups and expatriates; the mass “middle income group” market in Singapore, i.e. the bulk of Singaporeans, is price sensitive towards foreign food and drinks that are more expensive than local products; and, marketing and distribution costs are extremely high for new product launches and also high for the on-going maintenance of market shares and positions. Local products now include market leading ASEAN-made products imported from Malaysia, Indonesia, Philippines, Vietnam and Thailand. This supply scenario now includes the food and drink multinationals that now have factories in the ASEAN region that manufacture products that were originally imported from the Developed World, e.g. ice cream, tea, sugar confectionery, chocolate, cookies, breakfast cereals, snacks of various types, soups and soft drinks. This market scenario is evolving further because the retailers are very profit margin and “money” driven because of their very high overheads, especially store rentals, with: retailer labeled products become more evident on shelves; and, more direct buying by retailers’ taking place. This now involves specialty products from the Developed World, e.g. organics, and niche products that are specifically demanded by expatriates. In view of the challenges from “retailer power” that exist in the market, importers now have a high level focus and demand to work with exporters that: are fully committed to develop their markets in Singapore, in terms of a willingness to deal with local demands for promotional campaigns, products and packages that fit into demand conditions; have a product and brand that is unique enough to break into the market; and, are flexible into terms of their short term returns and profit goals, and, very importantly, have a medium to long term strategy and action plan to build their market in Singapore. This situation exists because suppliers in Singapore have very little power to deal with the demands of retailers when it comes to accessing retail space for their products. Trade sources comment that everything now revolves around the cost of accessing such space, maintaining a listing (avoid delisting) and so the ability to consistently access shoppers. GAIN REPORT Page 11 In view of this situation, it is very important that U.S. exporters do not assume anything about the Singapore market or its demand for their products. There is now a significant risk of high learning costs, actual costs (wasted listing fees, promotional costs, etc.) and the disappointment of failure to build any form of market. It is very important that exporters with an interest in developing a market in Singapore should perform research on their own specific opportunities to confirm and clarify exactly where in the market they are for their products. Very importantly under the conditions in the market in 2012-13, this should include what the product’s unique selling propositions are under Singapore market scenarios. In addition to this research, it is just as important to: study what successful U.S. exporters have done in practice to build their retail markets in Singapore, e.g. the benchmarks that have been set by U.S. origin dried fruits, breakfast cereals, certain fresh fruits, nuts and vegetables, and non-Asian sauces; develop a sound export business and marketing strategy under which their products are well targeted, well segmented, well distributed and well differentiated from the competition in a very competitive market. In view of the competitive challenges from Chinese and ASEAN-origin products in some markets, this should include a more proactive industry-level strategy; and, identify and appoint a knowledgeable and experienced and fully resourced importer-distributor as a strategic partner to activate the new export business and marketing strategy for the Singapore market. Some points that US exporters should consider questioning when planning to enter the Singapore retail market are as follows: where the product fits in the retail market, e.g. as a mass market item, high-end niche item, novelty/exotic item, seasonal festive/gift item, targeted at western expatriates, etc.; price competitiveness of the US products versus comparable brands already in the market; packaging size and quality that meets with customers’ expectations; U.S. products which can be readily accepted as alternatives/substitutes to competing products; U.S. products that can readily fit into local food culture; U.S. organic products and health food products that can meet retailer’s requirements; U.S. products which provide convenience to customers; The level of promotion, commitment to brand support and consumer education necessary for GAIN REPORT Page 12 successful launch and development of a new-to-market product; and, Ability to meet retailer purchasing requirements and specifications. 6. Distribution channels As pointed out earlier in this report, Singapore’s distribution channels for consumer ready foods are now concentrated around supermarkets and hypermarkets. Added to this scenario are two leading convenience store chains, which are also controlled by the market leading supermarket operators. While there are alternative channels, e.g. the wet and dry markets, small “mom and pop” type shops, mini-marts and some specialty food and drinks shops, trade sources comment that these channels can no longer support imported products from USA under a strategy of building a sizeable market and share into the long term. The broad message to U.S. exporters is that their brands and products have to be in Singapore’s main retailing channels, i.e. supermarkets, hypermarkets and convenience stores, if they want to have a successful and sustained future in the Singapore retail channels. As the major supermarket operators are heavily into seasonal gift retailing, premium and specialty products, organics and expatriate-targeted products due to their market segmentation strategies, this position is broadly true for both niche and mass market type products. Distribution of Consumer Ready Food and Drinks in Singapore U.S. Exporter GAIN REPORT Page 13 Importer Importer Distributor Singapore Retail Channels The strategies of the retailers in segmenting the market means that it is possible for a shopper to buy a huge range of different products from across the world, including many products that are in the supermarkets or other large format stores in the USA. This arises because of consolidated shipments imported either by the retailer, a part of its group, or an independent importer-distributor. 7. The retail industry and market structure 7.1 Large format stores The Table below provides information on the major retailers involved in the operation of supermarkets, hypermarkets and department stores. Retailer Outlet Types Annual No of Outlets Locations Procurement Name and Sales in Method Ownership US$ Fairprice Supermarkets 2,134 Operates with 230 Island- Direct sourcing (Local and million outlets including wide preferred with GAIN REPORT Page 14 cooperative) hypermarkets hypermarkets under some agents the Fairprice Xtra used for smaller banner (4 outlets), volume supplies high end supermarkets under the FairPrice Finest banner (7) and FairPrice supermarkets (100), plus mini- supermarkets and a chain of convenience stores. Cold Storage Supermarkets 1,510 44 Cold Storage Island- Direct sourcing group * and and million. supermarkets. wide preferred, Giant (Owned hypermarket 6 The Market Place together with a by DFI, a high end number of local Hong Kong supermarkets and 9 preferred agents based listed hypermarkets under used. company) the Giant banner. Shop n Save Supermarkets 264 60 supermarkets. Island Direct sourcing (Owned by million wide preferred, DFI, a Hong together with a Kong based number of local listed preferred agents company) used. Sheng Siong Supermarkets 462 25 stores, mainly Island Local agents are Supermarket and million supermarkets. wide important, but hypermarkets this company is increasingly sourcing on a direct basis from overseas suppliers. Carrefour Hypermarkets Around 2 hypermarkets. According to Carrefour’s HQ, 100 this operation will close on or million before 31 December 2012. *: The Cold Storage group of supermarkets also includes Jason’s and The Market Place banners. Singapore also has some smaller chains of supermarkets, the biggest of which is reported to be Prime GAIN REPORT Page 15 Supermarkets, which reported annual sales of about US$ 15 million in 2011. In addition to this chain, it also has some other single site stores that carry imported products: two sizeable and high profile Japanese retail stores, which import Japanese products direct from Japan and source most other products locally from Singapore based importers: Meidi-ya Singapore, which is an overseas branch of Meidi-ya Co Ltd, one of Japan’s food companies and a premium supermarket operator in Japan; and, Isetan Supermarket, which operates as part of Isetan (Singapore) Limited, a Singapore listed department store operator that is majority owned by Isetan Japan. the Mustafa Department Store that operates a supermarket within its department store, which has a single location in the Little India area of Singapore. Trade sources comment that this store is often used by importers to sell products that they are having difficulty selling through other more mainstream retail channels in Singapore. It has a wide range of products, which include products sourced from all over the world, and a strategic focus on products of Indian origin. The key channels to target for U.S. products are the following, which are used by higher income Singaporean shoppers and expatriates: DFI/Cold Storage group, in particular The Market Place and Cold Storage supermarkets; and, FairPrice, especially the FairPrice Finest supermarkets; Carrefour. (Note: At the time of the research, i.e. August 2012, Carrefour’s head office announced that it plans to close both of its hypermarket outlets in Singapore by 31 December 2012, due to its inability to develop any form of market leadership in the retail industry in the medium to long term); Meidi-ya Singapore and Isetan Supermarket, both of which carry U.S. products as part of their merchandising policies, e.g. meats, fresh produce and wines. These channels accept a much wider range of Developed World products than any others existing in Singapore today. As mentioned earlier, it is possible to buy a wide range of U.S. and other Developed World food and drink products in Singapore, with the main channels being the above stores. Certain U.S. origin products, e.g. fresh and dried fruits, fresh vegetables of certain types, snacks, breakfast cereals, wine, ice cream, processed meats and confectionery, will also have market opportunities in Shop n Save, Giant hypermarkets, some of the larger second-tier FairPrice stores and Sheng Siong that are frequented by expatriates. GAIN REPORT Page 16 7.2 Convenience stores and other small format stores Although having a smaller share of the food and drink retailing industry than the supermarkets and hypermarkets, Singapore’s convenience and other small format stores are very important channels for certain types of products. This sector of Singapore’s industry comprises: chains with a broad based focus in terms of the products that they carry: chains of convenience stores; and, small format supermarkets, known as minimarts, some of which are operated by the supermarket operators. The market leaders in this sector are: 7-Eleven, which operates around 560 outlets across the island, with about 25% of them run by the earlier mentioned Cold Storage group, whose owner Dairy Farm International (DFI) is the Singapore strategic partner for 7-Eleven Incorporated; Cheers (another FairPrice group banner), which 123 outlets are operate on all across the island, including on site at Esso gas (petrol) stations in Singapore; and, FairPrice Xpress, of which there are 24 stores operating on an island wide basis with many also located at Esso gas stations. Another player in this area of the market is the i-Econ group of value-for-money franchised neighbourhood grocery stores, which operates under Hanwell Holdings (formerly known as PSC Corporation Ltd) group, a diversified group of companies listed on the Singapore Stock Exchange. Although this group claims to have the largest chain of minimarts in Singapore, it is not likely to be a major channel for food and drink products exported from the USA because its focus is on lower and middle income consumers who live in Singapore’s heartlands and who are seeking value for money products. Accessing the main chains of convenience stores and mini-markets can be very difficult for imported products. The merchandising policies in these stores and small retail display space mean that products being carried by them are rapidly selling products that are in high demand by Singaporeans. For this reason, the products that are carried are generally locally/ASEAN produced and branded, or are multinational branded products, which are heavily supported by A&P (advertising and promotional) campaigns on a year- round basis in the broader Singapore market. GAIN REPORT Page 17 chains that have a more specialised focus in terms of the products that they carry: chains of personal care / pharmacy type stores that carry certain food and drinks; and, chains of stores that retail healthy foods and nutrition supplements. These chains include: Watsons Personal Care, which has around 95 stores located in major shopping centre or shopping streets across the whole of Singapore island. While this chain is focused on personal care, beauty and pharmaceuticals and nutraceuticals, it also carries a range of food and drinks targeted at the convenience seeking shopper and also gifts, e.g. chocolates and cookies. It tends to boost its range of gift food products during festive seasons. Guardian, which is part of the Cold Storage/DFI group, has about 140 stores located all over the island. Its main focus is on pharmacy operations and health and beauty products. Its range of food products is linked very closely to its core focus, e.g. dietetic-type / special needs products. Unity Pharmacy, which is owned by the NTUC Healthcare Cooperative, and operates around 50 stores located all over the island. Like Guardian, Unity is very focused on its core business, so the food and drink products carried are usually dietetic-type / special needs in nature. Nature’s Farm, a health food and supplements retail chain with 23 outlets located all across the island. There are also some smaller professionally managed chains involved this sub-sector, e.g. SuperNature (2 outlets), an organic food specialist owned by the Club 21 high fashion retail group. Trade sources comment that these chains generally demand well known or good quality products that have a strategic fit in the demand traits of Singaporeans, and are supported by the importers and foreign brand owners. The demands that underpin demand for these products are linked to a range of different factors including: health and wellness; indulgence in terms of personal treats and gifts; and, value-for-money in terms of shopper judgments on price, quality and functionality. Added to this matter are the demands of the retailers for discounts, listing fees (in some cases) and promotional support, because they are also under significant competitive threat from the major retailers. GAIN REPORT Page 18 7.3 The traditional channels As mentioned earlier in this report, the traditional channels are no longer a strategic or, in most cases, a viable target for products that are exported from the Developed World. When such products do enter these channels they do so because: there is a “must have” requirement in some channels, e.g. U.S. apples, oranges, celery and potatoes in the wet markets; or, the importer-distributor has a problem selling the product, e.g. these channels are then used in the same way as the earlier mentioned Mustafa Department Store. Singapore’s mom and pop grocery stores now mainly carry locally made food and drinks and products that are imported from the ASEAN region and China. The only segment within traditional retailing where U.S. products have opportunities involve specialist niche shops that need a range of products that they procure from a local importer or are imported in very small quantities by the shops themselves. These outlets which are a very small niche sector, include small shops that specialize in: wines and spirits, usually wines; organics and healthy foods; and, confectionery and food gift type products. This sector of Singapore retailing includes a sizeable number of shops that would be classified as “hobby shops” rather than an aggressive commercial operation. 7.4 The other channels Internet shopping linked to deliver services is offered by the major retailers, e.g. FairPrice and Cold Storage, and the niche players, e.g. SuperNature and Nature’s Glory. No readily available information exists on the total annual value of internet transactions involving food and drinks in Singapore. In its last survey PayPal released a report in 2011 that estimated that total on- line shopping by Singaporeans had reached US$ 1.1 billion in 2010. Food and drinks purchases were not listed in the top shopping categories cited by PayPal. The main categories included travel services, fashion, entertainment, insurance, IT/electronics products and gifts/collectables, which comprised around 80% of total on-line spending in that year. GAIN REPORT Page 19 Trade sources comment that there is a sizeable amount of on-line shopping taking place in Singapore. According a Neilsen’s study conducted in 2010, the number of Singaporeans shopping for grocery items on-line grew by over 70% in 2010, with around 40% of those surveyed confirming that they had purchased food or drink on-line in the past month. While this is reported, sources in the food industry believe that the only shoppers who buy their groceries on-line are those that want their groceries delivered because they have very little time to shop, or have a specific problem in visiting a retail outlet. As Singaporean’s “love to shop”, on-line shopping is not the same as visiting a supermarket and looking at the fresh produce, other products and, very importantly, the “bargains” that are available. From this standpoint, while on-line shopping, linked to home delivery services, is growing quite rapidly, it is just one of the services that retailers (both mainstream and niche) are now supplying to their clientele, and not yet a mainstream channel. III. COMPETITION IN THE RETAIL MARKET 8.1 Overview of the nature of competition Competition for U.S origin products now comes from: local suppliers and brand-owners who operate in the dairy, beer, soft drinks and processed meat industries, with some of the companies in these industries manufacturing some of their market leading products in other ASEAN countries, e.g. Malaysia and Thailand; other Developed World supply countries, in particular Australia (wide range of products), New Zealand and some EU countries, e.g. Netherlands, Denmark, France, Italy and the UK; alternatives in some markets, e.g. Brazil (meats and poultry), South Africa (wines), China (fresh fruits and vegetables), Chile (wines and fresh fruits), and South Korea (berries); and, the multinational food and drink companies operating in Singapore, the other ASEAN countries GAIN REPORT Page 20 and China (which includes some U.S. companies). U.S. exporters and their products face a complex range of challenges if they are not well differentiated in the eyes of the consumers. One key factor is price competition from products that look similar, and that originate from China, Brazil, South Africa and the ASEAN countries, all of which have real competitive impacts on products from the Developed World as a whole. 8.2 Competition matrix The Table below provides an overview of competition in the market segments that are covered by this report. Market and Its Major Supply Strengths of Key Supply Advantages and Size Countries Countries Disadvantages of Local Suppliers Beef, Australia – 42%. Australia and New Beef is not produced fresh/chilled and New Zealand – Zealand (mainly food in Singapore. frozen 23%. service, with a low level Brazil – 20%. presence in retail) have Net imports: Uruguay – 7%. full access for all of their 20,026 tonnes. USA – 6%. products, which local buyers consider as good quality and price competitive. Brazil price-competes in GAIN REPORT Page 21 the frozen beef segment, which now has an expanded presence in supermarkets. It is gradually expanding its market share due to weak market conditions. Trends in gross imports Product group 2009 Tonnes 2010 Tonnes 2011 Tonnes Beef, fresh/chilled 3,617 4,030 4,173 Beef, frozen 19,347 20,040 22,884 Source: Singapore Government official import trade data Pork, Brazil – 34%. Brazil dominates the Indonesian live pigs fresh/chilled and Australia – 17%. frozen segment with are imported and frozen Netherlands – 14%. value-for-money pork of slaughtered in USA – 11%. a quality acceptable to Singapore, and the Net imports: local users, some in retail pork is sold through 64,461 tonnes. channels. wet markets (chilled Australia (Australian retail stalls) and Pork and AIRPORK supermarkets. It is brands) dominates the acceptable to fresh/chilled market on Singaporeans and is the back of its proximity part of the country’s and ability to export high food security for volumes to Singapore. staple foods. Netherlands frozen pork is in retail channels packed under private or retailer labels. While there is still consumer resistance to frozen pork, Australia has been gradually losing market share to Brazil due to increased price sensitivity and weaker consumer confidence since 2008 and Brazilian access to the major retailers under their brands, e.g. in FairPrice. Brazilian frozen pork pricing is GAIN REPORT Page 22 about 30% less than Australian fresh pork. Trends in gross imports Product group 2009 Tonnes 2010 Tonnes 2011 Tonnes Pork, fresh/chilled and frozen 67,244 72,361 65,994 Source: Singapore Government official import trade data Poultry, frozen Brazil – 56%. Brazil (e.g. Borella, Malaysian live USA – 32%. Sadia, Frangosul and chickens are imported Net imports: Argentina – 9%. Seara) competes on price and slaughtered in 102,476 tonnes. and its products are Singapore. This fresh acceptable to users in chicken is the (Note: Chicken Singapore. The USA is dominant product in accounts for 99% now a niche player in the market and is in of imports. retail channels. high demand based on Turkey and duck traditional demand imports (net of traits. re-exports) are niche markets comprising 641 and 388 tonnes respectively). Trends in gross imports Product group 2009 Tonnes 2010 Tonnes 2011 Tonnes Poultry in all forms 100,411 105,963 112,863 Source: Singapore Government official import trade data Offal, frozen (not Australia – 26%. Private or retailer label Offal from pigs poultry). New Zealand – packed frozen halal slaughtered in 26%. certified bovine offal, Singapore dominates Net imports: Netherlands – mainly imported from the market for such 11,232 tonnes. 11%. Australia, is readily products. No Denmark – 10%. available in substantial quantities supermarkets. of bovine offal are USA – 2%. produced in Singapore. Cheese in all Australia – 42%. Fonterra’s brands from Singapore does not forms. New Zealand – Australia and New produce any retail GAIN REPORT Page 23 15%. Zealand are leading packed cheeses. Net imports: USA – 12%. players, along with some 10,582 tonnes. France – 7%. other Australian brands, Italy – 4%. e.g. Lactos, Dairy Farmers and Bega. President (France) and Arla (Denmark) also have a strong retail presence, with President making a big marketing push for new share in the processed cheese segment. Butter and dairy Australia – 27%. Australia has a number of No retail packed butter spreads. Netherlands – brands in the market, e.g. is produced in 26%. Golden Churn, including Singapore. Net imports: New Zealand – some private label 15,867 tonnes. 20%. products. Anchor (New France – 11%. Zealand), President USA – 4%. (France) and some other EU brands (Lurpak) have a strong presence in retail. Yogurt. Malaysia – 38%. The strongest imported Malaysia Dairy Australia – 23%. brands are Alive (Fraser Industries produces Net imports: Thailand – 15%. & Neave Malaysia), Marigold yoghurt, 8,182 tonnes. Switzerland – which is the leading which has been 9%. imported brand, Yoplait tailored to Germany – 7%. and Bulla (Australia), Singaporean local Meiji (Thailand) and tastes. It leads the USA – 6%. Emmi (Switzerland). yogurt market and is an aggressive U.S. yogurts are niche competitor for all players in high end imported brands in the retailers. chilled dairy sections of supermarkets and hypermarkets. Liquid milk. Australia – 42%. The strongest imported The local dairy Thailand – 31%. products in the market are companies are very Net imports: 61.6 Indonesia – 11%. Farmhouse (local brand), strong competitors million litres. New Zealand – Marigold (local brand) with good brands and 5%. and Pura, all of which are some imported liquid India – 2%. from Australia, and Meiji milks in their GAIN REPORT Page 24 (Thailand) and portfolios. The local USA – 0.3%. Greenfields (Indonesia). brands include The retailer in-house Magnolia, Farmhouse, brands of milk are also Daisy (Fraser & imported from Australia. Neave), and the brands of Malaysian Dairy Industries, namely HL (the market leader) and Marigold. Ice cream. Malaysia – 52%. Wall’s (Unilever), Nestlé Local supply is Thailand – 19%. and Fraser & Neave are negligible when Net imports: France – 5%. fighting each other for compared to imports. 12,218 tonnes. USA – 4%. market share in the mass Indonesia – 3%. market from their Australia – 3%. production bases in Malaysia and Thailand. This activity now includes a much larger selection of novelty ice creams than in the past. They are also involved in an expansion into the premium area of the market, where they now compete with Haagen Dazs (France) and Ben & Jerry’s (USA). Apples and China – 49%. The market is generally Singapore does not pears. South Africa – price competitive due to produce apples and 20%. retailer strategies and pears. Net imports: New Zealand – preference for lower cost 57,001 tonnes. 9%. products, e.g. from China USA – 9%. and South Africa. In France – 7%. addition to apples (Fuji Argentina – 3%. variety only), China also supplies highly popular Chinese pears. New Zealand and France (EU financed) are supported by strong branded advertising campaigns, promotions and good GAIN REPORT Page 25 physical distribution. Trends in gross imports Product group 2009 Tonnes 2010 Tonnes 2011 Tonnes Apples 45,828 47,749 44,274 Pears 21,917 23,573 22,077 Source: Singapore Government official import trade data Citrus fruits, not USA – 32%. This market is generally Singapore does not tropical. China – 28%. price sensitive due to produce these fruits. Australia – 14%. retailer strategies, which Net imports: South Africa – supports the position of 56,791 tonnes. 13%. China (dominant in Egypt – 4%. Mandarins, which have high level demand at Chinese New Year), South Africa and Egypt in the market. Trends in gross imports Product group 2009 Tonnes 2010 Tonnes 2011 Tonnes Oranges 40,942 41,744 43,138 Mandarins 16,838 19,468 19,805 Grapefruits 1,317 1,484 1,571 Source: Singapore Government official import trade data Grapes and USA – 45%. The USA dominates in its Not produced in raisins. South Africa – season because of its Singapore. 23%. competitiveness on Net imports: Australia – 12%. quality, saleability, 13,205 tonnes. Chile – 7%. profitability for channel Egypt – 5%. members, promotional support and branding (including in raisins) and supply capacity. In the other season, South Africa and Australia (close to year round supply capability in green grapes) compete, with South Africa winning due GAIN REPORT Page 26 to its more competitive pricing. Trends in gross imports Product group 2009 Tonnes 2010 Tonnes 2011 Tonnes Grapes, fresh or dried 16,627 16,392 17,350 Source: Singapore Government official import trade data Soft fruits, USA – 54%. High quality chilled Not produced in temperate South Korea – distribution channels into Singapore. varieties. 26%. Singapore, ability to Australia – 8%. deliver quality, and Net imports: New Zealand – seasonal promotional 3,699 tonnes. 5%. activities support all Egypt – 2%. activity in this market. Stone fruits, USA – 46%. High quality chilled Not produced in including Australia – 23%. distribution channels into Singapore. avocado. South Africa – Singapore and seasonal 9%. promotional activities Net imports: China – 5%. support the USA and 9,043 tonnes. New Zealand – Australian positions in 5%. this market. Chile – 4%. Trends in gross imports Product group 2009 Tonnes 2010 Tonnes 2011 Tonnes Plums 3,492 3,322 4,218 Peaches and nectarines 1,813 1,877 2,122 Avocado 978 1,285 1,497 Source: Singapore Government official import trade data Middle Eastern- Iran – 23%. These products are Not produced in type dates. Egypt – 17%. imported to meet Singapore. Israel – 19%. seasonal demand, mainly Net imports: 620 UAE – 9%. related to Muslim tonnes. Tunisia – 8%. festivals. The Middle East dominates because USA – 4%. the retail market is generally price sensitive. GAIN REPORT Page 27 Edible nuts, USA – 55%. Competition revolves Not produced in temperate China – 23%. around traditionally Singapore. climate products. Australia – 9%. commodities from China Iran – 7%. and Iran, and branded Net imports: Italy – 3%. snacks (USA mainly 2,085 tonnes. under local brands, which are well distributed) and some level of seasonal demand. Potatoes, fresh China – 35%. This market is generally Not produced in table. Bangladesh – price competitive, with Singapore. 22%. the USA and, to a lesser Net imports: USA – 13%. extent, Australia involved 41,925 tonnes Indonesia – 9%. in marketing higher Australia – 7%. quality potatoes in supermarkets. Broccoli and China – 85%. China now dominates this Not produced in cauliflower, Australia – 10%. market and is increasing Singapore. fresh. Malaysia – 3%. its share of a growing market. This situation Net imports: USA – 1%. exists because of its price 16,158 tonnes. competitiveness and quality versus Australia. Chinese product quality is now similar in the “eyes of consumers” and its export pricing is between 40% and 50% of Australia’s pricing, a situation that is now reported to be linked to GAIN REPORT Page 28 significant subsidies being paid to Chinese farmers. Some concerns are reported to be developing in the consumer market over the safety of Chinese fresh produce in the light of some news that is circulating locally about the contamination of Chinese fresh produce with various types of chemicals, including banned pesticides, found in the Hong Kong market. Lettuce head- China – 34%. China took leadership in Singapore does not type, fresh. USA – 27%. this market from the USA produce products that Malaysia – 24%. for the first time in recent compete with U.S. Net imports: history in 2011. This imported products. 9,939 tonnes. resulted from a major B2B sales push to expand exports, China’s price remaining at around 75% of the U.S. price and a B2B (mainly retailer industry) perception that Chinese lettuce has now started to match that of the USA’s lettuce, at a time when Singapore’s market has become more price sensitive. Malaysia is mainly supplying hydroponic products which are marketed differently to U.S. products. Asparagus, fresh. Thailand – 44%. Thailand, which supplies Not produced in USA – 29%. younger (thinner) Singapore. Net imports: Australia – 15%. asparagus, operates in a 1,075 tonnes. Peru – 8%. different segment to asparagus imported from GAIN REPORT Page 29 the USA. Thai products have a mass market target. The USA leads the seasonal premium market. Celery, fresh USA – 67%. The USA leads this Not produced in China – 22%. market because of its Singapore. Net imports: Malaysia – 7%. competitiveness in terms 5,163 tonnes. Australia – 3%. of price, quality and supply, distribution and marketing capabilities. China has continued to build its market share (up from 15% in 2010), largely at the expense of the USA’s share. It has reached more than 20% for the first time since 2007. GAIN REPORT Page 30 Coffee, ground USA – 56% *. The strong local brands Singapore has a strong roasted Indonesia – 15%. marginalise imported coffee producing Malaysia – 8%. brands to niches or the industry, with the Net imports: 424 Italy – 3%. food service market (a dominant players in tonnes. Germany – 2% key U.S. target due to the premium segment corporate demand-pull). being Boncafe, the *: Mainly includes The highest profile market leader, and imports for use in food premium brands in Sarika (Suzuki brand). service outlets including retailers are all from the major modern coffee EU, e.g. Illy, Melitta, shop chains. Lavazza, Eduscho and Cafe Direct. The highest profile U.S. retail brand is Folger. Nestlé has just started to play in this market. Tea leaf and Indonesia – 25%. The brands in this market Singapore is not a bags, green and China – 17% are supported by strong major player in the black retail Sri Lanka – 12%. advertising and market for retail packed. USA – 6%. promotions and packed leaf teas and India – 6%. distribution capabilities, tea bags. Net imports: Malaysia – 6%. including Lipton 1,216 tonnes. UK – 3%. (Unilever), the market leader, which supplies most of its products from Indonesia, Dilmah (Sri Lanka) and Boh (Malaysia). The UK (Twinings, an important premium brand) is the leader in the premium and super premium niches. Processed meats Thailand – 47%. This market is dominated Growing stronger on and poultry, not China – 22%. by a range of frozen, pre- the new investments chilled. Malaysia – 15%. cooked chicken, and in production facilities USA – 6%. Asian-style canned for processed meats, Net imports: Brazil – 3%. products from Thailand both chilled and 26,050 tonnes. (including Chareon canned, underpinned Pokphand frozen by a strategy that the products) and Malaysia products are better (various brands), and quality than imported canned products from alternatives. China. The key non- GAIN REPORT Page 31 Asian brands in this market are mainly canned beef and pork-based products, i.e. Spam (USA), Libby’s (Brazil) and Tulip (EU produced). Sausages, not Brazil – 34%. This is a price-driven The local sausage fresh chilled. France – 30%. commodity-type market, industry has a focus USA – 17%. which is underpinned by on producing premium Net imports: Denmark – 12%. strong physical fresh/chilled sausages 6,321 tonnes. Malaysia – 4%. distribution, gaining good and traditional dried access to retail display Chinese-style space and, importantly, sausages. Although a periodic price competitive industry, promotions. The highest it does not compete profile supplies in frozen directly with imported sausages are Perdix products, which tend (Brazil), Doux (France) to be either and Rockingham and commodity products Valley Chef, with Tulip (frozen or canned (Denmark) being the frankfurters) or leader in canned branded better quality sausages. Retailer in- “more authentic” house labelled frozen chilled products. sausages (produced in Brazil and Malaysia) are taking market share from imported brands. The USA lost market share to France in 2011 because of its higher pricing than French products. Processed fish Malaysia – 26%. This market is dominated Singapore has a frozen and seafood, Thailand – 17%. by price competitive fish and seafood higher processed Vietnam – 13%. ASEAN- made and industry that competes products only. China – 11%. branded canned and with products from the Chile – 11%. frozen products, which other ASEAN Net imports: includes a large segment countries. 44,776 tonnes. USA – 1%. involving tuna based products and sardines/mackerel. Competition tends to revolve around access retailers’ shelves and GAIN REPORT Page 32 price. Sugar Malaysia – 28%. This market is dominated Singapore is not a confectionery, China – 18% by products from major producer of not chewing USA – 9%. Malaysia (several brands) sugar confectionery, gum. Indonesia – 7%. and multinational brands although it has a Thailand – 6%. with operations in strong position in the Net imports: Taiwan – 5%. ASEAN and China, medicated sweets 10,754 tonnes. Germany – 4%. including Mars, Wrigley segment. (also supplying its U.S. products, but not chewing gum due to a regulatory restriction), Nestlé, Kraft (Cadbury Adams), Perfetti Van Mella. Some high profile brands are also imported from Germany (Werther’s and Haribo) and Japan. These businesses all support their brands through wide spread distribution and periodic advertising and promotions. Chocolate Malaysia – 13%. High levels of Singapore is a confectionery. USA – 12%. competition for retail chocolate producer but Australia – 11%. shelf space between does not operate as a Net imports: Italy – 10%. Cadbury (Australia and major player in the 11,447 tonnes. Switzerland – New Zealand), Mars mass retail market. 6%. (Australia and China), New Zealand – Hershey (USA and 4%. China), Ferrero (Italy), Nestlé (Malaysia, UK Australia and USA), Lindt and Frey (Switzerland) and others from Malaysia. Europe also has high profile and very active brands from Germany, Belgium, France, Switzerland and the UK, which tend to operate in the premium food gift market. GAIN REPORT Page 33 Cookies (Sweet Malaysia – 42%. Malaysia is very strong Singapore has a Biscuits). Indonesia – 13%. with the branded and sizeable biscuit China – 7%. wide product portfolios if producer, Khong Net imports: Thailand – 6%. Kraft (also supply from Guan, which is 16,412 tonnes. UK – 6%. Indonesia, China and the involved in this USA), Munchy’s and segment, although its USA – 4%. Perfect Foods dominating clientele are reported the retailers’ shelves and to be older brand shares. A range of Singaporeans. Another EU brands also have a key producer, Meiji solid presence with the Seika, operates in the UK having the largest children’s area of the share with McVities, biscuit market. Burtons, Fox’s and Walkers being its most prominent players. Breakfast China – 40%. A market with strong and Singapore does not cereals, including USA – 16%. well supported brands produce breakfast oats. Philippines – dominated cereals. 13%. by Quaker (China), Net imports: Malaysia – 11%. Nestlé (Philippines), 5,447 tonnes. Thailand – 6%. Kellogg’s (Thailand and UK – 3%. the USA) and Post (USA). Snack foods, Malaysia – 65%. A market with brands Most snacks marketed extruded types USA - 15%. supported by very strong under Singapore and potato based. Thailand – 13%. distribution capabilities. owned brands are now Extruded snacks produced in Net imports: dominate the market with neighbouring 7,500 tonnes. well over 75% of sales. Malaysia. The companies/ brands involved include Kraft Foods (Malaysia), Mamee Double Decker (Malaysia), URC (Malaysia), Pringles (Malaysia), Calbee (Thailand and Malaysia) and Frito-Lay (USA and GAIN REPORT Page 34 Mexico). Frozen potatoes. USA – 77%. French fries and hash Not produced in Canada – 15%. browns are marketed Singapore. Net imports: under Singapore private 22,655 tonnes. labels, e.g. Farmland (U.S. origin), with Ore Ida (USA) and McCain (Canada) also have quite strong distribution access to retailers. Frozen USA – 41%. The highest profile Singapore is not vegetables. Thailand – 28%. brands in supermarkets producing any frozen China – 9%. and hypermarkets today vegetables. Net imports: Japan – 3%. are now retailer in-house 1,431 tonnes. Belgium – 3%. branded products. Thailand is a niche player in frozen green soybeans. Simplot (various origins), Emborg (Belgium/EU), and Watties (NZ) are the highest profile independent brands. Fruit juices. Malaysia – 27%. Asian sourced fruit juices Singapore has a strong Indonesia – 16%. tend to be food service industry involved in Net imports: USA – 14%. products or juice drinks. the production of fruit 37,288 China – 7%. The USA is the leader in juices, including tonnes. South Korea – chilled retail-packed fruit Fraser & Neave, 4%. juices, due to high quality Malaysia Dairy products, strong brands Industries and Pokka and very good Singapore, which distribution coverage. aggressively compete with each other for market share. Canned and China – 26%. China and Thailand have Although Singapore bottled USA – 19%. a focus on canned does have a canning vegetables. Thailand – 16%. indigenous vegetables. industry, it is not Malaysia – 14%. The USA has a strong involved in this Net imports: Italy – 8%. niche due to good market. 18,561 tonnes. Spain – 4%. relationships with strong importer-distributors. Malaysia is mainly supplying baked beans. GAIN REPORT Page 35 Italy and Spain are mainly supplying canned or bottled olives. Sauces, non- USA – 72%. Heinz (USA) has a Singapore’s industry Asian types. Australia – 9%. sizeable portfolio of non- only produces Asian- UK – 5%. Asian sauces on the type sauces. Net imports: Netherlands – shelves, along with strong 3,100 tonnes. 4%. presence from a range of Italy – 2%. Australian made sauces (including Unilever and Masterfoods), the UK (Lea & Perrins) and Netherlands (HP). Soups Malaysia – 55%. Campbell Soups No retail packed soups Australia – 16%. (Malaysia and USA) are produced in Net imports: USA – 11%. dominate this market, Singapore. 6,795 tonnes. with some competition from Heinz, mainly from Australia. Soft drinks. Malaysia – 59%. Malaysia dominates the Singapore has a very Thailand – 9%. market for imports with strong soft drink Net imports: 176 Taiwan – 6%. supplies of good quality industry, which million litres. China – 3%. cordials, fruit juices, includes Coca-Cola, New Zealand – sports drinks and Asian Pepsico (Yeo Hiap 2%. soft drinks at very Seng as the bottler) competitive prices, with and Pokka. The USA – 1%. Fraser & Neave a major products of these importer from Malaysia. producers lead the Taiwan has a focus on market. supplying niche Asian- type products, with Yeo Hiap Seng contract packing some of these products there. Imports from the USA and other non-Asian countries operate in very small niches. Beer. Malaysia – 33%. Carlsberg (Malaysia) Asia Pacific Breweries GAIN REPORT Page 36 Germany – 10%. holds second place in the (APB) leads the Net imports: 61 Netherlands – market to the local Singapore market with million litres. 10%. brewery. The other its high profile and India – 9%. brands play around the very well distributed South Korea – brands of APB and brands, which include 9%. Carlsberg and tend to Tiger, Heineken, Other ASEAN – compete on price or on Guinness, Anchor, 5% premium niche status, ABC Extra Stout, plus because they do not have some niche brands. It USA – 1%. the marketing budgets or competes very the very strong aggressively for distribution channels of market share with the market leaders. Carlsberg Malaysia, Germany and which also views Netherlands maintain a Singapore as its home sizeable presence due to market territory. good relationships with strong importer- distributors. South Korea and India are niche players, with India now making a “big play” in the budget and strong beer areas of the market. Wine, not Australia – 31%. Australia dominates the Singapore does not sparkling. France – 26%. retail market with a range produce any grape- Chile – 9%. of prod
Posted: 28 November 2012

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