Hitting a BRIC wall

OC&C's annual review of the Top 50 global FMCG companies (2013)

Wednesday 06 February 2013

Report

With growth in Europe static and fmcg groups struggling to find their stride in emerging markets, they’re eyeing up opportunities in the dark continent.

There’s a new ‘big five’ to watch out for in Africa. These aren’t wild beasts like lions, elephants, buffalo, leopards and rhinos. They’re a completely different kind of animal altogether. They’re global fmcg behemoths Nestlé (1), Procter & Gamble (2), Unilever (3), PepsiCo (4) and Coca-Cola (5).  Of course, these multinational players, along with the likes of Diageo (22) and Cadbury – now owned by Mondelez (8) – have operated in Africa for a long time: over 100 years in the case of Unilever. According to this year’s Global 50 – a study carried out exclusively for The Grocer by OC&C Strategy Consultants – 29 of the 50 have already established an active presence in Sub- Saharan Africa beyond South Africa.  So what makes Africa attractive, what are the barriers to entry and where do the biggest opportunities lie?

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