Iran Post Sanctions: What will this Mean for the Food and Beverage Industry?
Article by FATEMAH SHERIF
LOOKING AHEAD…
The food and beverage landscape in Iran is expected to see drastic changes within categories led by domestic players; as existing multinational brands continue to import into the market with greater ease, their value share is expected to grow. Domestic manufacturers will face pressure from more imported brands, especially in categories where domestic manufacturers leverage the traditional channel landscape, such as juices and dairy. To succeed, multinationals will need to open up more local factories to remain price competitive, or create relationships with local players, for example the local production of Nestlé’s Maggi soup. Other manufactures are expected to form joint ventures, especially in categories that are dominated by domestic manufacturers. The threat of multinational penetration will also lead domestic players to adopt different management practices to reduce bureaucracy and maintain competition on a local and international basis.
