We are in the last days of 2010...let me share with you my evaluations for 2010 and my expectations for 2011:
  • In 2010 commodity prices continued to increase due to speculative transactions from futures markets and due to political problems in supplying countries. We may expect this to continue to be a problem in 2011. Overall food prices may increase in 2011 due to the rising raw material costs.
  • Kraft's take-over of Cadbury was the most important M&A action in 2010. Many analysists were expecting this to trigger the consolidation trend in confectionery industry. However the reality was not like that,there were no other serious acquision or merge in 2010. Should we expect more M&As in 2011? I think the answer is yes, especially after having the recession period over, we may expect the consolidation trend to continue in 2011. As we have said at the end of 2009, the relatively smaller players in confectionery will be the targets. On the other hand those companies which are owned by private equity funds (like United Biscuits, Leaf...) may have new owners in 2011.
  • The trend for functional and healthy food was again rising in 2010 while the recession slows down. In 2011 definitely this trend will be dominant especially in developed markets.
  • Obesity issue will continue to effect the food industry also in 2011. We may expect new regulations in formulations, labelling and advertising.
  • China, India, Turkey will continue to be interesting emerging markets for food industry.

Have a happy 2011...