Executive Summary 5

Business Environment ....6

Table: Western Europe Food & Drink Business Environment Ratings Q308 ..... 9

Italy Food & Drink Business Environment Rating . 9

Table: Regional Food & Drink Business Environment Ratings . 11

SWOT Analysis ......12

Food And Drink 12

Italy Food And Drink Industry SWOT 12

Mass Grocery Retail ...... 13

Italy Mass Grocery Retail Industry SWOT 13

Macroeconomic Outlook ..... 14

Table: Italy – Macroeconomic Forecasts .. 16

Food ......17

Industry Forecast Scenario . 17

Table: Italy Food Consumption Indicators – Historical Data & Forecasts ...... 17

Table: Food & Drink Trade Balance – Historical Data & Forecasts 18

Canned Food . 18

Table: Canned Food Value/Volume Sales – Historical Data & Forecasts 19

Confectionery . 20

Table: Confectionery Value/Volume Sales – Historical Data & Forecasts 20

Industry Developments . 21

Market Overview 23

Food 25

Drink .....26

Industry Forecast Scenario . 26

Table: Drinks Indicators 27

Industry Developments . 28

Market Overview 29

Agriculture At A Glance .31

Table: Italy Organic Agricultural Data .... 31

Table: Italy Agricultural Sub-Sector Production . 31

Table: Italy Dairy Industry Data ..... 31

Agricultural Commodity Price 32

Mass Grocery Retail 33

Industry Forecast Scenario . 33

Table: Sales Value By Format In Italy's Mass Grocery Retail Market (US$mn) 35

Table: Sales Breakdown By Retail Format Type 35

Industry Developments . 35

Market Overview 37

Table: Structure Of Italy's Mass Grocery Retail Market By Estimated Number Of Outlets 40

Table: Sales Value By Format In Italy's Mass Grocery Retail Market (US$mn) 40

Annual Average Sales Per Outlet By Format – 2007 (US$mn).. 40

Competitive Landscape .41

Key Players 41

Food And Drink 41

Table: Key Players In Italy's Food & Drink Sector – 2007 . 41

Mass Grocery Retail ...... 42
Table: Key Players In Italy's Mass Grocery Retail Sector – 2007 42
Table: Key Players In Italy's Mass Grocery Retail Sector – 2007 (continued) . 43
Company Analysis ...... 44
Food ... 44
Gruppo Galbani SpA ..... 44
Perfetti van Melle SpA ... 45
Gruppo Barilla ..... 46
Carapelli Firenze SE SpA 47
Drink ... 48
Davide Campari-Milano SpA .. 48
Mass Grocery Retail ...... 49
Conad . 49
Recession Scenario 50
Table: Impact Of Deep US Recession On Total Food Consumption In Selected Eurozone Markets – Cumulative Difference Between Core And
Recession Scenarios (EURbn) 50
Table: Impact Of Deep US Recession On Total Food Consumption In Selected Western European Markets – Cumulative Difference Between
Core And Recession Scenarios (%) .. 51
Appendix 54
Food & Drink Business Environment Ratings .54
Ratings Methodology . 54
Ratings Overview 54
Ratings System ...... 54
Indicators... 54
Limits Of Potential Returns ..... 55
Risks To Realisation Of Potential Returns 56
Weighting... 57
Weighting... 57
BMI Food & Drink Industry Glossary .58
Food & Drink . 58
Mass Grocery Retail .. 58
BMI Food & Drink Forecasting & Sourcing ......60
How We Generate Our Industry Forecasts .... 60
Sourcing ... 61