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Market Survey the Lebanese Market of Wine Products

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Market Survey the Lebanese Market of Wine Products 1 Khoury Statistics and Studies EMBASSY OF ARGENTINA BEIRUT ‐ LEBANON MARKET SURVEY THE LEBANESE MARKET OF WINE PRODUCTS SEPTEMBER 2010 KHOURY STATISTICS AND STUDIES – 2ND FLOOR – BSABA – LEBANON – PHONE: 00961 5 436755 2 Khoury Statistics and Studies September 15, 2010 M/s Embassy of Argentina Economic and Commercial Section 2nd floor, Résidence des Jardins 161 Sursock Street Mar Nicolas sector Beirut – Lebanon Sirs, With reference to your request about the Lebanese market of wine products, please find enclosed a market survey, dated on September 15, 2010, prepared by KHOURY STATISTICS AND STUDIES. We have welcomed the privilege of working for the Commercial Section of the Embassy of Argentina in Lebanon, and we remain at your disposal for any additional research on this subject. Respectfully, Lic. Miguel Khoury KHOURY STATISTICS AND STUDIES – 2ND FLOOR – BSABA – LEBANON – PHONE: 00961 5 436755 3 I ‐ INTRODUCTION 1. BACKGROUND OF THE STUDY At the request of the Commercial Section in the Embassy of the Republic of Argentina in Beirut – Lebanon, KHOURY STATISTICS AND STUDIES has conducted a survey in relation with the Lebanese market of Wines and Sparkling wines. The main objectives of the study are: ‐ To provide a general overview of the prevailing demographic socio‐economic, and business environment in Lebanon. ‐ To describe the legal and regulatory framework governing the import and distribution of alcoholic products in Lebanon. ‐ To identify main manufacturers, importers and exporters of alcoholic products in Lebanon. ‐ To provide detailed quantitative data on the above‐mentioned market, including data on value of local production, imports, exports, and market size. The study starts with brief information and data on the general environment prevailing in Lebanon including essential demographic and socio‐economic figures. The study proceeds with a description of main laws and regulations related to the Lebanese market of alcoholic products. The study subsequently provides a comprehensive description of the above‐mentioned market, and this includes information on main manufacturers, importers, exporters and distributors. Finally, the study provides data on the value of local production, imports and exports, and on market size. KHOURY STATISTICS AND STUDIES – 2ND FLOOR – BSABA – LEBANON – PHONE: 00961 5 436755 4 2. METHODOLOGY For the purpose of the present study, KHOURY STATISTICS AND STUDIES has conducted a complete desk research in all available official public records, commercial records, reference documents, registries, publications, etc., for quantitative information on the Lebanese market of wine products. This includes the following sources: ‐ Lebanese customs ‐ Chamber of Commerce, Industry & Agriculture in different Mohafazats (Beirut & Mount Lebanon, North Lebanon, South Lebanon, Bekaa) ‐ Association of Lebanese Industrialists A complete research has been conducted also in all available legal references in order to verify main laws and regulations related to the import and distribution of the concerned products. KHOURY STATISTICS AND STUDIES has performed subsequently a comprehensive field research in order to identify main manufacturers, importers and exporters, in addition to main brands sold on the Lebanese market with their retail prices. All findings have been checked and validated with established enterprises operating on the Lebanese market of wine products, as well as with independent professional sources. 3. MARGIN OF ERROR All efforts have been made in the present study in order to provide, as much as possible, accurate and reliable quantitative and qualitative information on the Lebanese market of wine products. However, a margin of error of maximum 3% must be taken into consideration as far as value of local production; imports, exports and market size are concerned. KHOURY STATISTICS AND STUDIES – 2ND FLOOR – BSABA – LEBANON – PHONE: 00961 5 436755 5 4. PRODUCTS COVERED The present market study covers the following products: ‐ Trading of wines & Sparkling wines. ‐ Lebanese wines cultivation fabrication and distribution. KHOURY STATISTICS AND STUDIES – 2ND FLOOR – BSABA – LEBANON – PHONE: 00961 5 436755 6 II. GENERAL ENVIRONMENT 1. GENERAL INFORMATION All information, figures and data in this item correspond to the year 2008. Demographic and economic figures are estimates. General information Capital Beirut Area 10,452 km2 Official language Arabic Other languages English, French Currency Lebanese Pound (LBP) or (L.L.) Political status Independent Republic Political system Parliamentary democracy Legislative authority Elected parliament Executive authority President/Council of ministers Economic system Liberal market economy Geography Surface 10,452 km2 Coast length 210 km Maximum altitude 3,083 m Average temperature 20.7 °C Rainfall 688 mm Humidity rate 68% Demography Population 4,100,000 Annual growth rate 3% Number of households 910,000 Average household size 4.50 Life expectancy at birth 73 years Working population 1,230,000 Urban population 80% KHOURY STATISTICS AND STUDIES – 2ND FLOOR – BSABA – LEBANON – PHONE: 00961 5 436755 7 Education Literacy rate 93% (Male), 85% (Female) Land use Arable land 207,060 ha o.w irrigated 60,047 ha Grazing 360,000 ha Forest & woodland 79,560 ha Other land 301,580 ha Total 1,045,200 ha Infrastructure Roads (paved) 7,200 km Railways Non functional, old, obsolete Airport (civil) Rafic Hariri International Airport Ports (commercial) Beirut, Tripoli, Saida Electricity 1,350 MW Economy Inflation rate 10% Exchange rate (LBP/$) 1,507.5 (year average) GDP $28,020 m GDP per capita $7,185 Real GDP growth rate 4.4% Exports $3,478,000,000 Imports $16,137,000,000 Trade balance ‐$12,659,000,000 (40.7% more than 2007) Balance of payments $3,461m (surplus) Budget deficit LBP 3,502bn Gross domestic debt LBP39,007 bn Net domestic debt LBP30,681 bn Net total debt (public) LBP62,562 bn External debt $21,148 m KHOURY STATISTICS AND STUDIES – 2ND FLOOR – BSABA – LEBANON – PHONE: 00961 5 436755 8 Central Bank reserves $17,062 m Central Bank gold reserves $8,032 m Customer deposits in comm. banks LBP 99,908 bn Customer loans by commercial banks LBP 55,352 bn Beirut Stock Exchange market $9,323 m capitalization 1 year T‐bill yield 7.58% Overnight rate 3.5% KHOURY STATISTICS AND STUDIES – 2ND FLOOR – BSABA – LEBANON – PHONE: 00961 5 436755 9 2. GEOGRAPHICAL ENVIRONMENT Lebanon is situated on the eastern side of the Mediterranean basin, between the 33°‐ 35° parallel (north) and the 35°‐37° parallel (east). Its frontiers (borders) are: ‐ Syria (with which it has a 375‐km long border) to the north and east ‐ Israel (with which it has an 80 – km. long border) to the south; ‐ The Mediterranean Sea (on which it has a 250‐km long coast) to the west. Lebanon has a surface of 10,452 sq. meters. It has a diversified geography, which is spread on: ‐ 2 large plains: The coastal plain and the famous Bekaa plain. ‐ 2 long mountain chains: Mount Lebanon (highest summit 3,083 m) and the Anti Liban chain (highest summit 2,814 m). Lebanon is rich in water. There are more than 15 rivers, the biggest of which, the Litani river, is 160 km. long. The climate is pleasant and moderate, characterized by relatively smaller variations of temperature, long periods of sunshine (approx. 300 days/year) and relatively abundant rainfall in a short period of the year (from November to March). In winter season, snow falls in mountain areas, and skiing is practiced in several resorts. In summer season, hot temperatures in coastal areas are ideal for swimming and beach sports, while moderate temperatures in mountain areas favour summering activities. KHOURY STATISTICS AND STUDIES – 2ND FLOOR – BSABA – LEBANON – PHONE: 00961 5 436755 10 3. POLITICAL ENVIRONMENT Lebanon is an independent and sovereign State. Lebanon is also a democratic, parliamentary, multi‐party, Republic. The Lebanese Constitution (established in 1926, amended in 1989) guarantees, among other fundamental rights, individual liberty, liberty of thought, liberty of religion, as well as propriety. Legislative power belongs to an elected 128‐member parliament, with new elections held every four years. Executive power belongs to the President of the Republic, elected by the Lebanese parliament for a period of six years, and to the Council of Ministers. Judiciary power belongs to the different tribunals and courts. The Lebanese Constitution was amended by the Taif Agreement, a new national charter voted by the Parliament on 30 September 1989, which sealed national reconciliation, and which put an end to the state of war prevailing from 1975 in the country. The Taif Agreement has provided for a large number of changes in the way Lebanon is administered, in the framework of a reform plan destined to correct social imbalances in the country and secure political stability. KHOURY STATISTICS AND STUDIES – 2ND FLOOR – BSABA – LEBANON – PHONE: 00961 5 436755 11 4. DEMOGRAPHIC ENVIRONMENT Distribution of the Lebanese population by Mohafaza (Province) Year 2008 Mohafaza Population Percentage Mount Lebanon 1,476,000 36% North Lebanon 820,000 20% Bekaa 574,000 14% Beirut 533,000 13% South Lebanon 480,000 12% Nabatieh 217,000 5% Total 4,100,000 100% Distribution of the Lebanese population by age group Year 2008 Age group Population Percentage 0‐4 526,850 12.85% 5‐9 483,800 11.80% 10‐14 502,660 12.26% 15‐19 404,670 9.87% 20‐24 404,670 9.87% 25‐29 314,470 7.67% 30‐34 252,150 6.15% 35‐39 194,340 4.74% 40‐44 155,800 3.80% 45‐49 150,880 3.68% 50‐54 155,800 3.80% 55‐59 142,270
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