food retail in the philippines

7/24/2019 Food Retail in the Philippines

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Philippines - Food Retail 0115 - 2058 - 2014

MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 1

MarketLine Industry Profile

Food Retail inPhilippinesAugust 2015

Reference Code: 0115-2058

Publication Date: August 2015

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EXECUTIVE SUMMARY

Market valueThe Filipino food retail industry grew by 2.2% in 2014 to reach a value of $29.8 billion.

Market value forecastIn 2019, the Filipino food retail industry is forecast to have a value of $36.3 billion, an increase of 21.8% since 2014.

Geography segmentationPhilippines accounts for 1.3% of the Asia-Pacific food retail industry value.

Market rivalryCompetition between players is fierce due to the limited level of product differentiation and consumer's negligible

switching costs, combined with a challenging and volatile industry environment.


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TABLE OF CONTENTS

Executive Summary ................................................................................... ............................................................... ..... 2

Market value ........................................................... ................................................................. ................................... 2

Market value forecast ........................................................ ................................................................. ........................ 2

Geography segmentation ............................................................................................. .............................................. 2

Market rivalry .......................................................... ................................................................. ................................... 2

Market Overview .............................................................................. .............................................................. ................ 7

Market definition ........................................................................................................... .............................................. 7

Market analysis ....................................................................................... .............................................................. ..... 7

Market Data .................................................... ................................................................. .............................................. 8

Market value ........................................................... ................................................................. ................................... 8

Market Segmentation ................................................................................. ............................................................... ..... 9

Geography segmentation ............................................................................................. .............................................. 9

Market distribution ........................................................................................................ ............................................ 10

Market Outlook ........................................................... ................................................................. ................................. 11

Market value forecast ........................................................ ................................................................. ...................... 11

Five Forces Analysis .................................................................................. ............................................................... ... 12

Summary ..................................................... ................................................................. ............................................ 12

Buyer power ...................................................................................................... ....................................................... 13

Supplier power .................................................................................................. ....................................................... 14

New entrants ................................................................................................................ ............................................ 15

Threat of substitutes .......................................................... ................................................................. ...................... 16

Degree of rivalry ..................................................... ................................................................. ................................. 17

Leading Companies ........................................................................ ............................................................... .............. 18

Puregold Price Club, Inc. ......................................................................................................................................... 18

Robinsons Retail Holdings, Inc. ............................................................................................................................... 19

SM Food Retail Group ............................................................................................................................................. 22

Macroeconomic Indicators ............................................................... ................................................................. ........... 23

Country Data ................................................................................................................ ............................................ 23

Methodology................................................................................................................................................................. 25

Industry associations ......................................................... ................................................................. ...................... 26

Related MarketLine research ....................................................... .............................................................. .............. 26

Appendix ......................................................... ................................................................. ............................................ 27


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About MarketLine .............................................................. ................................................................. ...................... 27


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LIST OF TABLES

Table 1: Philippines food retail industry value: $ billion, 201014 .................................................................. ................ 8

Table 2: Philippines food retail industry geography segmentation: $ billion, 2014 .................................................... ..... 9

Table 3: Philippines food retail industry distribution: % share, by value, 2014 ............................................................. 10

Table 4: Philippines food retail industry value forecast: $ billion, 201419 ................................ .................................. 11

Table 5: Puregold Price Club, Inc.: key facts ............. ................................................................. ................................. 18

Table 6: Robinsons Retail Holdings, Inc.: key facts ............................................................................ ......................... 19

Table 7: Robinsons Retail Holdings, Inc.: key financials ($) ........................................................ ................................. 19

Table 8: Robinsons Retail Holdings, Inc.: key financials (PHP) ................................................................................... 20

Table 9: Robinsons Retail Holdings, Inc.: key financial ratios ...................................................................................... 20

Table 10: SM Food Retail Group: key facts ................................................................................................................. 22

Table 11: Philippines size of population (million), 201014 ......................................................... ................................. 23

Table 12: Philippines gdp (constant 2005 prices, $ billion), 201014................................................................ ........... 23

Table 13: Philippines gdp (current prices, $ billion), 201014 ...................................................................................... 23

Table 14: Philippines inflation, 201014 ................................................................ ....................................................... 24

Table 15: Philippines consumer price index (absolute), 201014 .................................................................. .............. 24

Table 16: Philippines exchange rate, 201014 ........................................................................... ................................. 24


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LIST OF FIGURES

Figure 1: Philippines food retail industry value: $ billion, 201014 ................................................................................. 8

Figure 2: Philippines food retail industry geography segmentation: % share, by value, 2014 ........................................ 9

Figure 3: Philippines food retail industry distribution: % share, by value, 2014 ............................................................ 10

Figure 4: Philippines food retail industry value forecast: $ billion, 201419 ................................................... .............. 11

Figure 5: Forces driving competition in the food retail industry in Philippines, 2014 .................................................... 12

Figure 6: Drivers of buyer power in the food retail industry in Philippines, 2014 .......................................................... 13

Figure 7: Drivers of supplier power in the food retail industry in Philippines, 2014 ..................... ................................. 14

Figure 8: Factors influencing the likelihood of new entrants in the food retail industry in Philippines, 2014 ................. 15

Figure 9: Factors influencing the threat of substitutes in the food retail industry in Philippines, 2014 .......................... 16

Figure 10: Drivers of degree of rivalry in the food retail industry in Philippines, 2014 .................................................. 17

Figure 11: Robinsons Retail Holdings, Inc.: revenues & profitability ............................................................................ 20

Figure 12: Robinsons Retail Holdings, Inc.: assets & liabilities .................................................................................... 21


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MARKET OVERVIEW

Market definitionThe food retail market includes the retail sales of all food products, both packaged and unpackaged, as well as

beverages (including retail sales of all alcoholic and non-alcoholic beverages). All on-trade sales of food and beverage

are excluded. All currency conversions are calculated at constant average 2014 exchange rates.

For the purposes of this report, North America consists of Canada, Mexico, and the United States.

South America comprises Argentina, Brazil, Colombia, and Venezuela.

Europe comprises Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy,

Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain, Sweden, Switzerland, Turkey, and the United

Kingdom.

Scandinavia comprises Denmark, Finland, Norway, and Sweden.

Asia-Pacific comprises Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines,Singapore, South Korea, Taiwan, Thailand, and Vietnam.

Middle East comprises Saudi Arabia and United Arab Emirates.

Market analysisFollowing a strong performance, growth in the Philippines food retail industry dropped to moderate in 2014. Some

deceleration in growth is expected in the forecast period.

Growth in this industry is largely being driven by the expansion of the modern retail sector in the country. What's more,

increasing urbanization and rising incomes are contributing to a growing industry.

The Philippines food retail industry had total revenues of $29.8bn in 2014, representing a compound annual growth rate

(CAGR) of 6.1% between 2010 and 2014. In comparison, the Indonesian and Chinese industries grew with CAGRs of

7.2% and 17.5% respectively, over the same period, to reach respective values of $61.6bn and $899.3bn in 2014.

Certain segments of this industry are performing particularly well. For example, the organic food market in the country

grew with a CAGR of 14% for the five year period 2010-2014.

Independent & specialist retailers accounted for the largest proportion of sales in the Philippines food retail industry in

2014. Sales through this channel generated $21.2bn, equivalent to 70.9% of the industry's overall value. Sales through

supermarkets / hypermarkets generated revenues of $8.0bn in 2014, equating to 26.8% of the industry's aggregate

revenues.

It is evident that modern trade in the Philippines is beginning to grow at the expense of traditional retail, with sales

through supermarkets and hypermarkets expected to increase in the coming years.

The performance of the industry is forecast to decelerate, with an anticipated CAGR of 4% for the five-year period 2014 -

2019, which is expected to drive the industry to a value of $36.3bn by the end of 2019. Comparatively, the Indonesian

and Chinese industries will grow with CAGRs of 6.3% and 9.6% respectively, over the same period, to reach respective

values of $83.7bn and $1,424.8bn in 2019.


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MARKET DATA

Market valueThe Filipino food retail industry grew by 2.2% in 2014 to reach a value of $29.8 billion.

The compound annual growth rate of the industry in the period 201014 was 6.1%.

Table 1: Philippines food retail industry value: $ billion, 201014

Year $ billion PHP billion billion % Growth

2010 23.5 1,044.1 17.7

2011 24.8 1,101.3 18.7 5.5%

2012 27.3 1,210.8 20.6 9.9%

2013 29.2 1,296.1 2.0 7.0%

2014 29.8 1,324.3 22.5 2.2%

CAGR: 201014 6.1%

SOURCE: MARKETLINE M A R K E T L I N E

Figure 1: Philippines food retail industry value: $ billion, 201014



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MARKET SEGMENTATION

Geography segmentationPhilippines accounts for 1.3% of the Asia-Pacific food retail industry value.

China accounts for a further 38.9% of the Asia-Pacific industry.

Table 2: Philippines food retail industry geography segmentation: $ billion, 2014

Geography 2014 %

China 899.3 38.9

Japan 430.7 18.6

India 328.2 14.2

Indonesia 61.6 2.7

Philippines 29.8 1.3Rest of Asia-Pacific 563.6 24.4

Total 2,313.2 100.1%


Figure 2: Philippines food retail industry geography segmentation: % share, by value, 2014



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Market distributionIndependent & Specialist Retailers form the leading distribution channel in the Filipino food retail industry, accounting for

a 70.9% share of the total industry's value.

Supermarkets / hypermarkets accounts for a further 26.8% of the industry.

Table 3: Philippines food retail industry distribution: % share, by value, 2014

Channel % Share

Independent & Specialist Retailers 70.9%

Supermarkets / hypermarkets 26.8%

Convenience Stores 1.3%

0 0.0%

Other 0.9%

Total 100%


Figure 3: Philippines food retail industry distribution: % share, by value, 2014



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MARKET OUTLOOK

Market value forecastIn 2019, the Filipino food retail industry is forecast to have a value of $36.3 billion, an increase of 21.8% since 2014.

The compound annual growth rate of the industry in the period 201419 is predicted to be 4%.

Table 4: Philippines food retail industry value forecast: $ billion, 201419

Year $ billion PHP billion billion % Growth

2014 29.8 1,324.3 22.5 2.2%

2015 31.2 1,383.5 23.5 4.5%

2016 32.5 1,443.0 24.5 4.3%

2017 33.8 1,501.2 25.5 4.0%

2018 35.1 1,557.9 26.5 3.8%2019 36.3 1,613.0 27.4 3.5%

CAGR: 201419 4.0%


Figure 4: Philippines food retail industry value forecast: $ billion, 201419



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FIVE FORCES ANALYSIS

The food retail market will be analyzed taking supermarkets, hypermarkets and specialist retailers as players. The key

buyers will be taken as end-consumers, and food manufacturers, farmers, agricultural co-operatives as the key suppliers.

SummaryFigure 5: Forces driving competition in the food retail industry in Philippines, 2014


Competition between players is fierce due to the limited level of product differentiation and consumer's negligible

switching costs, combined with a challenging and volatile industry environment.

A lack of switching costs and the limitations in product differentiation lead to buyer mobility, which forces larger retailers

to maintain attractive pricing schemes. There is a rising pressure laid on players to adapt to fast changing consumer

needs and the winner should be able to position the desirable product at a price suitable for customers and

manufacturers. Whilst specialist, luxury or organic retailers do not feel the same price sensitivity, they are not able to

secure a large volume of customers, and may have no choice but to commit to long term supplier contracts in order to

secure a steady supply, quality, or specifically prepared products.

Potential new entrants may struggle to compete with the aggressive marketing and pricing policies of the existing

players. Nonetheless, relatively low entry and exit costs, the emergence of thriving health and ethical niches which aresheltered from direct competition from current players, and strong historical growth, offer attractive prospects.

Food service (takeaways, vendors and restaurants) can be seen as a substitute to food retail products, however for the

vast majority of people it currently exists as an occasional accompaniment rather than a wholesale alternative.

Subsistence farming is a more direct substitute, sometimes replacing standard retail behavior outright, yet it is no longer

a common practice in many parts of the world.


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Buyer powerFigure 6: Drivers of buyer power in the food retail industry in Philippines, 2014


The buyers in this industry are end-consumers. This significantly weakens buyer power; the loss of any one buyers

custom is unlikely to have a significant effect on a players revenues. Additionally, the standing of any individual

customer is diminished because of the sheer volume of potential customers. Having said that, the food retail industry in

the Philippines is still dominated by traditional retailers, such as bazaars and open air markets, which account for around

70% of food retail sales. As such, the loss of one customer in these circumstances is likely to have much more of animpact than it would on a large retailer. Buyer power in this sense is increased.

In the Philippines, the food retail industry is vastly different from that of other countries, particularly Western markets.

Obesity is a significant issue in many Western countries, with governments and institutions introducing healthy eating

initiatives in an attempt to tackle the issue. However, in the Philippines the health issue surrounding food consumption

has tended to be malnutrition. It has been estimated that around 20% of children in the country are underweight, while

around 30% suffer stunting of growth. As such, while many Western markets have seen a culture of convenience

develop, with frozen and tinned food becoming the products of choice, this is not the case for the majority of the

population in the Philippines. The emphasis here has been on growing your own produce and shopping in open-air

markets. Furthermore, brand loyalty is likely to have very little influence here.

Overall, buyer power is assessed as moderate.


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Supplier powerFigure 7: Drivers of supplier power in the food retail industry in Philippines, 2014


Large retailers often maintain relationships with a wide range of suppliers, which ensures stability and helps to offset the

dangers of local sourcing problems or price fluctuations. This strengthens retailers standing in relation to their suppliers

as their dependency is reduced, meaning any risks to retailers are minimized.

Where possible, long term contractual obligations are avoided and switching costs are kept to a minimum. With a firm

hold on key distribution channels, the leading retailers can dominate negotiations with certain suppliers. Smaller retailers,

such as specialist, luxury or organic outlets may find such negotiations difficult. The limited number of suppliers in niche

areas and the centrality of product quality or preparation type restrict the available range of sourcing options. With

switching costs subsequently higher, the balance of power shifts somewhat from smaller retailers to specialist suppliers.

Backwards integration is possible, with some retailers growing their own produce and selling it on. This is particularly true

for small, independent retailers such as at open air market. In this case supplier power is reduced. On the other hand,

forward integration by suppliers is possible if a manufacturer/grower decides to establish retail operations.

Whilst the need to satisfy consumer demand for popular products bolsters manufacturers, many others face the problem

of a high degree of retailer mobility as they switch suppliers in accordance with pricing pressures. Supplier power has

been affected by the surge of many retailers offering own-brand products, which may sideline certain suppliers. Suppliers

who are able to differentiate their product can wield some power over retailers, should their product be popular with the

end consumer. However, for food retail a vast swathe of products are commodities (such as fruit and vegetables) and

homogenous, which diminishes supplier power.

Overall, supplier power is assessed as moderate.


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New entrantsFigure 8: Factors influencing the likelihood of new entrants in the food retail industry inPhilippines, 2014


The food retail industry in the Philippines is fragmented, with 70.9% of food retail being carried out through independent

and specialist retailers. As such, there are very differing retail landscapes within the country. On the one hand, there are

the traditional stores and market stalls, where market entry would be relatively easy. In these circumstances, scale

economies are of little importance, with many selling products that they grow themselves. Furthermore, fixed costs areunlikely to be high, particularly with regard to market stalls.

On the other hand, there has been a huge growth in modern food retailing in the Philippines. Supermarkets and

hypermarkets account for over a quarter of all food retail sales in the country. As such, entry to the modern food retail

segment of the industry is problematic. Large-scale, established retailers, with operating businesses that benefit

significantly from economies of scale and the ability to employ aggressive pricing schemes, which cannot be matched by

smaller retailers, enjoy a significant advantage. Strong branding exercises and fast paced expansion deepens this

market control.

It is evident that modern trade in the Philippines is growing at the expense of traditional retail, which should theoretically

mean that there is room for more retail players to enter the industry. Industry growth has been good in recent years,

spurred on by strong economic growth and a growth in consumer spending. Such factors may appeal to potential newentrants.

Overall, the likelihood of new entrants is assessed as moderate.


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Threat of substitutesFigure 9: Factors influencing the threat of substitutes in the food retail industry in Philippines,2014


There are few substitutes to food retail. The dominant alternative to food retail is food service. Strong marketing

campaigns in the case of fast food companies, and cultural traditions with respect to sit-down restaurants, mean both

types may represent a relative alternative for many consumers. However, for the vast majority of people, these

accompany food retail rather than replace it.

A more direct substitute is found in subsistence agriculture, in which individuals or families farm food to provide for their

own personal needs. However, the emergence of market capitalism, machinery that enables growing on a large scale,

and increased population density mean subsistence agriculture is no longer common. The impact of this substitute is

fractional. Environmental concerns, increasing health consciousness, and fears over political or economic instability may,

in the long term, give this substitute a more significant role. However, it is unlikely to threaten food retailers in the

foreseeable future being both labor intensive and often involving considerable start-up capital. The threat from

substitutes is assessed as weak.


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Degree of rivalryFigure 10: Drivers of degree of rivalry in the food retail industry in Philippines, 2014


Competition is often fierce within the food retail industry. There are a number of large competitors in this market, which

face stiff competition with each other. In addition, there exists a large number of independent or specialty retailers

operating alongside these large incumbents.

Consumers face negligible switching costs, meaning retailers fight increased pressure to secure consumer's custom and

loyalty by attempting to cut prices. Larger retailers are pushed into competitive pricing policies due to the limited level of

differentiation across the basic product range. Rivalry is also increased by the close similarity of players, although they

may attempt to differentiate through products and price.

Following the recent global financial crisis customers generally tend to look for the same product in different retailers and

compare prices, due to higher levels of price sensitivity. The similarity of products means that customers are not so loyal

to the retailers and choose to shop elsewhere should the price be better.

Some companies operate in other industries as well offering electronics, home ware, apparel, pharmaceuticals and

more. This can help to absorb the temporary impact of declining food sales, or high supply price; however, food retail lies

at the heart of the business for many. This basic dependency gives rise to aggressive competition.

Rivalry is assessed as strong overall in this industry.


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LEADING COMPANIES

Puregold Price Club, Inc.Table 5: Puregold Price Club, Inc.: key facts

Head office:Tabacalera Building, Ground Floor, No. 900 Romualdez Street, Ermita,Manila, PHL

Website: www.puregold.com.ph

Financial year-end: December

Ticker: PGOLD

Stock exchange: Philippines

SOURCE: COMPANY WEBSITE M A R K E T L I N E

Puregold Price Club (Puregold) is engaged in the business of trading goods such as consumer products, including

canned goods, housewares, toiletries, dry goods and food products on a wholesale and retail basis. It operates

hypermarkets under the name Puregold Price Club; a supermarket chain under the Puregold Junior name; discounters

under the Puregold Extra name; and supermarkets under the Company E name. The company sells its products to retail

consumers, and resellers and small to medium-sized stores, as well as canteens, restaurants, bakeries, convenience

and drug stores. The company operates in Philippines where it is headquartered in Manila and employs around 4,723

people.

Key Metrics

The company recorded revenue for the financial year (FY) ending in December 2013 of PHP73.2bn (about $1.7bn), an

increase of 27.3% over FY 2012. The net income accounted for PHP4bn (about $93.3m) an increase of 45.6% over

previous year.


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Robinsons Retail Holdings, Inc.Table 6: Robinsons Retail Holdings, Inc.: key facts

Head office: 110 East Rodriguez Jr. Avenue, Bagumbayan, Quezon City, PHP

Telephone: 63 2 635 0751

Fax: 63 2 395 5160

Website: www.robinsonsretailholdings.com.ph


Ticker: RRHI



Robinsons Retail Holdings, Inc. operates as a retail company in the Philippines. It operates in six segments:Supermarkets, Department Stores, DIY Stores, Convenience Stores, Drug Stores, and Specialty Stores.

The company operates supermarkets under the Robinsons Supermarket brand. Its stores offer health and wellness

products, as well as fresh food items, such as meat and poultry products, seafood, dairy products, fruit, and vegetables.

It also operates department stores under the Robinsons Department Store brand, which provide menswear,

womenswear, and childrenswear, shoes, bags and accessories, as well as household items.

The company operates consumer electronics and appliances stores under the Robinsons Appliances name. Robinsons

Appliances offers televisions, audio visual equipment, home and kitchen appliances, mobile phones, computers, and

photographic equipment. There are currently 61 Robinsons Appliances stores in the Philippines.

Robinsons has a portfolio of 1,064 stores, which includes 91 supermarkets, 38 department stores, 126 DIY stores, 386

convenience stores, 239 drug stores, and 184 specialty stores.

Key Metrics

The company recorded revenues of $1,843 million in the fiscal year ending December 2014, an increase of 19.3%

compared to fiscal 2013. Its net income was $80 million in fiscal 2014, compared to a net income of $62 million in the

preceding year.

Table 7: Robinsons Retail Holdings, Inc.: key financials ($)

$ million 2010 2011 2012 2013 2014

Revenues 1,025.1 1,107.3 1,323.2 1,544.7 1,843.4

Net income (loss) 9.1 10.9 27.0 61.8 80.2

Total assets 334.2 382.4 545.8 1,178.1 1,295.1

Total liabilities 208.2 236.2 364.3 322.5 366.2

SOURCE: COMPANY FILINGS M A R K E T L I N E


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Table 8: Robinsons Retail Holdings, Inc.: key financials (PHP)

PHP million 2010 2011 2012 2013 2014

Revenues 45,508.6 49,157.3 58,741.8 68,574.9 81,834.2

Net income (loss) 402.1 483.1 1,199.6 2,745.0 3,560.6

Total assets 14,835.5 16,977.0 24,231.9 52,300.8 57,494.0Total liabilities 9,241.1 10,487.8 16,174.5 14,318.4 16,257.8


Table 9: Robinsons Retail Holdings, Inc.: key financial ratios

Ratio 2010 2011 2012 2013 2014

Profit margin 0.9% 1.0% 2.0% 4.0% 4.4%

Debt/asset ratio 62.3% 61.8% 66.7% 27.4% 28.3%

Return on assets 5.4% 3.0% 5.8% 7.2% 6.5%


Figure 11: Robinsons Retail Holdings, Inc.: revenues & profitability



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Figure 12: Robinsons Retail Holdings, Inc.: assets & liabilities



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SM Food Retail GroupTable 10: SM Food Retail Group: key facts

Head office:One E-com Center, 10th Floor, Harbor Drive, Mall of Asia Complex CBP-1A, Pasay City 1300, PHL

Telephone: 63 2 857 0100

Fax: 63 2 857 0132

Website: www.sminvestments.com


Ticker: SM



SM Food Group is the food retail arm of SM Investments. As of Q1 2015, it operated 40 supermarkets, 43 hypermarkets,

23 WalterMart stores, and 120 SaveMore branches across the Philippines.

SM Supermarkets are located in SM Malls and offer a wide range of food and non-food products. SM Hypermarkets offer

a large range of non-food items, alongside food products. The hypermarkets tend to be located in larger SM Malls or in

standalone locations. The company's SaveMore branded stores operate as smaller-format supermarket in neighborhood

locations.

Key Metrics

SM Food Retail Group generated revenues of PHP118.4bn ($2.7bn) in 2014, an increase of 10.3% since 2013. Net

income totaled PHP3.7bn ($83.3m) in 2014, an increase of 4.4% since 2013.


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MACROECONOMIC INDICATORS

Country Data

Table 11: Philippines size of population (million), 201014

Year Population (million) % Growth

2010 94.0 1.9%

2011 95.6 1.7%

2012 97.3 1.7%

2013 99.0 1.7%

2014 100.7 1.7%


Table 12: Philippines gdp (constant 2005 prices, $ billion), 201014

Year Constant 2005 Prices, $ billion % Growth

2010 131.1 7.6%

2011 135.9 3.6%

2012 145.2 6.8%

2013 155.6 7.2%

2014 165.1 6.1%


Table 13: Philippines gdp (current prices, $ billion), 201014

Year Current Prices, $ billion % Growth

2010 199.6 18.5%

2011 224.8 12.6%

2012 250.2 11.3%

2013 272.1 8.7%

2014 289.3 6.3%



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Table 14: Philippines inflation, 201014

Year Inflation Rate (%)

2010 3.8%

2011 4.7%

2012 3.2%

2013 3.0%

2014 4.3%


Table 15: Philippines consumer price index (absolute), 201014

Year Consumer Price Index (2005 = 100)

2010 129.1

2011 135.2

2012 139.5

2013 143.7

2014 149.8


Table 16: Philippines exchange rate, 201014

Year Exchange rate ($/PHP) Exchange rate (/PHP)

2010 45.2400 60.0785

2011 43.1844 60.1167

2012 42.2213 54.1180

2013 42.4393 56.3963

2014 44.3939 58.8841



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METHODOLOGY

MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-

checked and presented in a consistent and accessible style.

Review of in-house databases Created using 250,000+ industry interviews and consumer surveys and supported byanalysis from industry experts using highly complex modeling & forecasting tools, MarketLines in-house databases

provide the foundation for all related industry profiles

Preparatory research We also maintain extensive in-house databases of news, analyst commentary, company

profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market

overview

DefinitionsMarket definitions are standardized to allow comparison from country to country. The parameters of each

definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the

market and our clients

Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and

trends

MarketLine aggregates and analyzes a number of secondary information sources, including:

- National/Governmental statistics

- International data (official international sources)

- National and International trade associations

- Broker and analyst reports

- Company Annual Reports

- Business information libraries and databases

Modeling & forecasting tools MarketLine has developed powerful tools that allow quantitative and qualitative data to

be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can

then be refined according to specific competitive, regulatory and demand-related factors

Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date


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Industry associations

Global Food Marketing Institute

655 15th Street, NW, Washington DC, 20005, USA

Tel.: 1 202 452 8444

Fax: 1202 429 4519www.fmi.org

CIES The Food Business Forum7, rue de Madrid 75008 Paris, FRA

Tel.: 33 1 4469 8484

Fax: 33 1 4469 9939

www.ciesnet.com

Related MarketLine research

Industry ProfileFood Retail in Western Europe

Food Retail in Europe

Food Retail in Asia-Pacific

Food Retail in the US


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APPENDIX

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