Bulgaria Food & Drink Report Provides Independent Forecasts And Competitive Intelligence On Bulgaria's Food & Drink Industry.

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c60570) has announced the addition of "Bulgaria Food & Drink Report Q4 2006" to their offering.

Although few doubted that European Union (EU) accession would get the go-ahead in September 2006, with the presentation of the European Commissions final report on the country, the official green light adds to a sense of security for the food retailers and food processors that have piled into the country in the last few years. In some ways, Bulgaria is not truly ready and organised crime, the ability and willingness of the police and courts to fight criminality and corruption remain serious worries. In other ways, the country has made major strides over 2006 and is, perhaps, ready enough.

In late November, an EU scientific advisory body approved Bulgarias contingency plans for dealing with disease outbreaks in its meat industry. This means that the country is certified to deal with outbreaks of avian influenza - a major issue in South-Eastern Europe after outbreaks in Romania - swine fever and foot and mouth. The body also approved transitional measures for imports of animal origin entering Bulgaria before the end of the year. Crucially, transitional measures for a large number of Bulgarian milk suppliers that do not yet comply with EU food safety laws were also approved. These crucial approvals mean, in essence, that Bulgarian meat and dairy products will have considerably wider access to existing EU member markets after accession.

The mass grocery retail (MGR) sector also remains buoyant at the end of 2006. Major mall building projects in both Sofia and the regions should see significant amounts of retail space enter the market in 2007 and 2008, although players such as hypermarket Billa and local supermarket group Piccadilly have already bought up the spaces for an anchor supermarket. Other players hope this added capacity will cool the real estate market somewhat. Cities such as Varna, a resort on the Black Sea, have seen a flood of MGR players, as stores aim to penetrate the countrys most attractive regional markets. Piccadilly is the major player here, but another Varna-based operator, Burlex 1004, has opened a number of outlets in and around the city. Hungarian-Bulgarian joint-venture CBA has 17 stores in the city. Germanys Metro already operates a number of its fast-expanding Aro retail mini-supermarket format in the area.

Amid growth and optimism, our updated Business Environment Rankings (BER) suggests a certain caution looking forward. Bulgaria has risen from 12th place to seventh, a reflection of strong economic growth and stability. However, the post-accession future will almost inevitably bring a certain hangover, as there will be losers in the process. A certain political reaction, as seen in many Central European countries in 2005 and 2006, could see populist measures that aim to curtail the growth of foreign MGR operators and food companies. The BER also takes into account that Bulgaria remains a very poor country by EU standards and any economic downturn could see vulnerable consumers drastically curtail spending. None of these factors should cause undue pessimism, but rather serve as a reminder that Bulgarias market economy, along with its democracy, remain very young indeed.

Companies Mentioned:

Metro Cash & Carry Bulgaria

Unilever Bulgaria

Billa Bulgaria

Kraft Bulgaria

Nestle Sofia AD

Piccadilly

Bulgartabac Holding Group

CBA Bulgaria

For more information, visit http://www.researchandmarkets.com/reports/c60570