2010-01-30 20:15:20 - Fast Market Research recommends "Belarus Food & Drink Report Q1 2010" from Business Monitor International, now available

Interest in the Belarusian beer market appears to be heating up once again, with brewing giant SABMiller having stated in January that it is looking into acquiring a brewery in the country. As discussed in BMI's recently published Belarus Food & Drink Report for Q209, SABMiller confirmed that it has performed a preliminary survey of the Belarusian market as it looks to establish a foothold in this fast emerging beer market. The Belarusian beer industry is relatively fragmented, and currently there is fairly minimal multinational involvement. The beer sector is a money-maker for the Belarusian government, with President Alexander Lukashenko describing the sector as highly profitable and a matter of 'food security', However, recently the government has been taking a

more pro-market stance having announced that it will continue allowing international brewers to invest in its state-owned brewing sector. Per capita beer consumption in Belarus is around 30 litres, which is still low compared to neighbouring countries, indicating that there is unmet demand. SABMiller's likely entry into Belarus could provide a springboard for further multinational investment within the relatively unsaturated food and drink industries. Most international operators have steered clear of investing in Belarus due to the high level of political and economic risk, as reflected in the government intervention in the economy. However, SABMiller will be attracted by the pace at which disposable incomes are set to rise and the fact that the country's brewing sector is fragmented compared to most countries in the Central and Eastern European (CEE) region. Another recent development should also help drive the growth of the beer sector, and that is the government's new law which for the first time mandates tax obligations for home brewers of alcohol, as a part of the government's antiintoxication campaign. Under the new law, which came into effect in January 2009, all home manufacturers of alcoholic beverages are now obliged to pay tax on the value of their drinks, at 50% of the excise rates paid by the state-owned spirit factories. As incomes continue to rise, it is likely that consumers will shift from traditional spirits and homemade drinks to higher-value drinks. Given that the industry's development has been unusually slow and there is significant unmet demand, SABMiller's proposed investment may be less risky than it would appear. The company makes most of its money in emerging economies and many of these markets have held strong during the financial crisis. However, Belarus' economy is certainly not immune to the economic turmoil. There is mounting pressures in the Belarusian financial sector, and we see potential for further ruble devaluation and a broader financial sector crisis. Certainly, the near-freezing of both domestic and external credit lines will weigh severely on economic growth, and we now forecast a GDP contraction of 1.0% in 2009. This will elevate risks to social stability, as sudden currency weakness will drive up the price of imports even as wage growth stalls and unemployment rises, resulting in a downturn in consumer confidence and spending, which will have a direct negative impact the food and drink industry.

For more information or to purchase this report, go to:
- www.fastmr.com/prod/43832_belarus_food_drink_report_q1_2010.aspx

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at www.fastmr.com or call us at 1.800.844.8156.