Thursday, 11 October 2012

Wake up and smell the Coffee – whilst you can


 

The rise of the developing world is really just a return to business as usual.

 

After all, until the 18th Century, India and China were the richest countries on the planet. For 18 of the past 20 centuries China had the largest economy in the world until the 19thcentury and the industrial revolution.

 

Chinese companies will continue to make international acquisitions such as the purchase by Bright Food of the controlling stake in Weetabix, which owns the breakfast cereal brand as well as Alpen and Ready Brek.

Bright Food acquired a 60% stake in Weetabix in a deal that valued the company at £1.2bn.

 

Meantime as evidenced by the recent purchases of US Corn, China will continue to be a major buyer in the international agri markets in response to demand from its burgeoning middle classes.

 

By 2020 China’s consumers will be spending an annual £ £3,830 billion and their Indian counterparts £2,200 billion contrast this with British consumers who spent £937 billion last year.

A Chinese person born in 20009 will consume 38 times as much over his lifetime compared to one born in 1960.

 

With a population in excess of 1.3 billion (approximately 20% of the world’s population) imagine the implication for Western consumers should an early morning cup of coffee become the beverage of choice!

 

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