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Baby Nutrition Insights-Issue 29

Baby Nutrition Insights-Issue 29


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Executive Summary

This quarterly issue provides a review of news and analysis for the infant nutrition industry, covering the July-September 2016 period. Market News includes: the Brazilian health ministry has launched a campaign to boost breastfeeding; import tariffs have made baby milk in Ecuador more expensive than elsewhere in South America; in Mexico Aspen has gained a contract to supply infant formula to the social security institute; (Hero) rolls out Beech-Nut Organic Coldpuree in the US; a2 Platinum is Australia's fastest-growing formula brand; sales of infant formula in China are growing in the B2C online and baby store channels, but declining in the C2C online channel and the modern retail trade. In Company News, this issue provides financial results for multinational and local players, reports on production expansion in the infant formula sector, and an insight into new joint ventures and partnerships, as well as merger and acquisition activity.

Key Findings

In China, all the main infant formula manufacturers have reported that demand is clearly slowing, with this particularly pronounced in the mid-priced and premium sectors.

Aspen's results for the full year to June 30, 2016 show a 9.5% increase in net revenue, where commercial nutritional sales account for 12.7% of total revenue and performed particularly strongly, rising by over 12.6%.

In Indonesia, the local food and drugs authority, BPOM, has confiscated products sold under the Bebiluck brand because they are do not meet safety standards.

Abbott Laboratories' Nutritional business reported an increase of 4.3% excluding the impact of foreign exchange in the first half of 2016.

In Nigeria, prices of baby food, including infant formula, are reported to have increased by 50% in the last year, pushing them beyond the reach of many women.

Synopsis

This quarterly issue provides a review of news and analysis for the infant nutrition industry, covering the July-September 2016 period. Market News includes: the Brazilian health ministry has launched a campaign to boost breastfeeding; import tariffs have made baby milk in Ecuador more expensive than elsewhere in South America; in Mexico Aspen has gained a contract to supply infant formula to the social security institute; (Hero) rolls out Beech-Nut Organic Coldpuree in the US; a2 Platinum is Australia's fastest-growing formula brand; sales of infant formula in China are growing in the B2C online and baby store channels, but declining in the C2C online channel and the modern retail trade. In Company News, this issue provides financial results for multinational and local players, reports on production expansion in the infant formula sector, and an insight into new joint ventures and partnerships, as well as merger and acquisition activity.

Reasons To Buy

Evaluate important changes in consumer behavior to identify profitable markets and areas for product innovation

Analyse the current and forecast market position of the brands to identify the best opportunities to exploit

Detailed understanding of consumption by individual product categories to align your sales and marketing efforts with the latest trends in the market.

Market News

International

Americas

Argentina

Brazil

Canada

Chile

Colombia

Ecuador

Mexico

United States of America

Venezuela

Asia

Australia

China

Hong Kong

India

Indonesia

Japan

Malaysia

Pakistan

Philippines

Singapore

South Korea

Taiwan

Thailand

Vietnam

Europe

European Union

France

Germany

Greece

Ireland

Italy

Kazakhstan

Malta

Netherlands

Poland

Portugal

Russia

Spain

Sweden

Ukraine

United Kingdom

Africa & Middle East

Algeria

Bahrain

Cameroon

Egypt

Israel

Kenya

Nigeria

Saudi Arabia

South Africa

Turkey

UAE

Company News

The a2 Milk Company, AAK AB

Abbott Laboratories

Advantage Capital Agribusiness Partners, LP Alimentacion y Nutricion Familial

Alter Farmacia SA

Aspen Pharmacare Holdings Limited

Atlantic Grupa DD

Ausnutria Holding Co Limited

BWK GmbH Unternehmungsbeteiligungsgesellschaft

Bega Cheese Limited

Beingmate Baby & Child Food Co

Bellamy's Organic

Biostime International Holdings Limited

Blackmores Limited, Bright Food (Group) Co Ltd

Campbell Soup Company

Camperdown Dairy International Pty Limited

China Animal Husbandry Group

Koninklijke DSM NV, Danone

Desert Farms

For AishaFonterra Co-Operative Group Limited

Formula Leta

Royal FrieslandCampina NV

PT Hassana Boga Sejahtera

Chr Hansen Holding A/S

Heavenly Tasty Organics

Hero Group

Hipp GmbH & Co Vertrieb KG

Hochdorf Holding Limited

Kalbe Farma Tbk PT

Khorolskiy Molochno-Konservniy Kombinat Detskikh Produktov (KMKKDP)

Lactalis

Little Dish

Mataura Valley Milk

Mead Johnson Nutrition Company

Meiji Holdings Co Limited

China Mengniu Dairy Company Limited

Morinaga Milk Industry Co Limited

Murray Goulburn Co-operative Co Limited

Nestle SA

NurturMe

Nutribio

Nutrico Optimum Nutrition

Laboratorios Ordesa

PepsiCo Inc

Perrigo Company plc

Pharmalys Laboratories

Pigeon Corporation

Podravka dd, Sodiaal Group

SILL Entreprises

Synutra International Inc

Valio Oy

Vinamilk (Vietnam Dairy Products Joint Stock Company)

Waitrose

Want Want Holdings Limited,

Westland Milk Products

Appendix

About Canadean

Disclaimer

Figure 1: China: Trends in Infant Formula sales by Channel, 2015 & 2016

Figure 2: France: Consumption of Milk by Non-Breastfed Infants, By Type and Age, 2015

Figure 3: Russia: Changes in Baby Food Consumption and Expenditure, 2016

Figure 4: Israel: Infant Formula Manufacturer Shares, 2015

Figure 5: Yashili: Sales by Product, First Half 2016

v

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The a2 Milk Company, AAK AB, Abbott Laboratories, Advantage Capital Agribusiness Partners, LP, Alimentacion y Nutricion Familial, Alter Farmacia SA, Aspen Pharmacare Holdings Limited, Atlantic Grupa DD, Ausnutria Holding Co Limited, BWK GmbH Unternehmungsbeteiligungsgesellschaft, Bega Cheese Limited, Beingmate Baby & Child Food Co, Bellamy's Organic, Biostime International Holdings Limited, Blackmores Limited, Bright Food (Group) Co Ltd, Campbell Soup Company, Camperdown Dairy International Pty Limited, China Animal Husbandry Group, Koninklijke DSM NV, Danone, Desert Farms, For AishaFonterra Co-Operative Group Limited, Formula Leta, Royal FrieslandCampina NV, PT Hassana Boga Sejahtera, Chr Hansen Holding A/S, Heavenly Tasty Organics, Hero Group, Hipp GmbH & Co Vertrieb KG, Hochdorf Holding Limited, Kalbe Farma Tbk PT, Khorolskiy Molochno-Konservniy Kombinat Detskikh Produktov (KMKKDP), Lactalis, Little Dish, Mataura Valley Milk, Mead Johnson Nutrition Company, Meiji Holdings Co Limited, China Mengniu Dairy Company Limited, Morinaga Milk Industry Co Limited, Murray Goulburn Co-operative Co Limited, Nestle SA, NurturMe, Nutribio, Nutrico Optimum Nutrition, Laboratorios Ordesa, PepsiCo Inc, Perrigo Company plc, Pharmalys Laboratories, Pigeon Corporation, Podravka dd, Sodiaal Group, SILL Entreprises, Synutra International Inc, Valio Oy, Vinamilk (Vietnam Dairy Products Joint Stock Company), Waitrose, Want Want Holdings Limited, Westland Milk Products


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