Germany Market Overview.pdf

GermanyMarket Overview

Bord Bia, Frankfurt

November 27th 2008

Contents

• Market Overview

• Key Consumer Trends

• Retail Market

• Foodservice

German MarketOverview

• Population: 82.34 million

– Berlin (Capital) 3,404,000

– Hamburg 1,754,00

– Munich 1,294,000

– Cologne 989,000

– Frankfurt am Main 652,000

– and Stuttgart 593,000.

• Currency: Euro

• Founding member of the EEC.

(Source: Destatis 2008)

Market Overview

• GDP Growth - real growth rate 1.8% 2008(e) (IGD, 2008)

• Inflation rate: 2.6% (2008(e)) (IGD, 2008)

• Unemployment: 12.6% (2008(e)) (IGD, 2008). However, the unemployment

is high due to the higher unemployment rate in former East Germany

(16.8% in East Germany v’s 8.4% in West Germany).

• Grocery Retail Spending per capita is increasing; up from €1,657 in 2004 to

€1,796 in 2008 (e) (IGD, 2008)

• VAT on Foods & Services: 19%

• VAT on Food: 7%

Demographics

•

• Household size

– 39.1 m households

– 65% are 1 or 2 person households (Bord Bia, 2008) and the average household size is: 2.11 people (Destatis, 2008)

• Population split by age:

– 0-14 13.9%

– 15-64 66.3%

– 65+ 19.8% (Destatis, 2008)

• Germany has the highest numbers of overweight persons in Europe

– 75.4% of men are overweight

– 58.9% of women are overweight (International Association for Study of Obesity, 2007)

German International Trade

• Global Exports €969 billion (Destatis, 2008)

• Imports €745 billion (Destatis, 2008)

• Import partners: EU (27) 57.7%, China 6.8%, US 6.7%, Russia

4.1%, Switzerland 3.5% (WTO, 2008)

• Food and Beverages made up 4.9% of total imports in 2005

(Destatis, 2008).

• Export growth in 2007 was responsible for strong growth in the

economy.

Irish Food Export Performance to Germany 2007

Source: CSO, Trade Statistics, 2008

Meat

9%

Dairy

43%

Sugars

5%

Other

1%

Fish

6%

Vegetables and

Fruit

3%

Miscellaneous

edible

17%

Beverages

16%

Total Exports:

€417.4mn

+3% v 2006

figures

Key Market Trends

• GDP per capita is growing year on year with an increase of over €4,330 per capita in the last 5 years (IGD, 2008).

• The grocery retail market is continuing to grow, despite the fact that it is a very developed market. The value of the grocery market is set to increase more than €3.7billion between 2007 and 2008 (IGD, 2008).

• The grocery retail market accounts for over 40% of the total retail market.

Source: IGD Country Presentations, 2008

1,796

147.9

365.84

2008 (e)

(€)

1,750

144.19

360.8

2007

(€)

1,708Grocery Retail Spend/capita

140.67Grocery Retail Market (billions)

357.7Total Retail Market (billions)

2006

(€)

KEY CONSUMER TRENDS

Profile of Sample:Household composition and work status

Source: PERIscope 2008

Eating Out of Home

• Germans are eating out more often during the week, with increases

likely to be male and younger adults (18-34 years).

• Just under 1 in 2 Germans have eaten meals or snacks on the

premises of the pub/restaurant/cafe in the last 7 days.

• 29% of Germans eat in the workplace several times a week or more

often, with the primary location for this being at their desk.


Attitude TowardsGrocery Shopping

• German consumers profile more as weekly rather than daily shoppers.

Shoppers tend to be female and slightly older (35+years).

• German shoppers are promotionally driven and are aware of price

when shopping however, unlike the Dutch, price is not their only focus.

• Younger Germans (18-34 yrs) are more price conscious and are more

likely to impulse buy if they think something is cheap.

• Private label products are seen as equal to branded products by two-

thirds of German consumers.

• Multipacks and products from the chill cabinet are appealing to

Germans.

• Awareness of Functional foods and ethical/Fair Trade products is

strong. Females show stronger awareness of the Glycemic Index than

males.

• Despite the high levels of awareness of Functional foods, over one third

of consumers are unsure of whether they would purchase them.


Key Lifestyle Trends


Key Lifestyle Trends

• Desire for Healthy Eating– Germans aim for a healthy lifestyle. They try to eat lots of fruit and

vegetables, they look for low fat options and try to include wholegrain and hi fibre products in their diet. Just under one third have changed their diet to become more healthy in the past year. Increasing intake of fruit and vegetables along with hi fibre, low fat and wholegrain and dairy products are all seen as ways of becoming healthier. Reducing meat and fatty foods are seen as routes to a healthy lifestyle. Like the French, Germans are more likely to believe that it is not the type of food you eat but the amount you eat that has health consequences.

– Germans have a strong awareness of the impact that food has on both physical and mental well being.

• Germans Enjoy Cooking– Germans enjoy cooking and generally see it as fun. They like to make

an extra effort with special meals, however Germans are not as passionate about cooking and food as the French and Spanish. They cook from scratch on a daily basis. Taste is very important to Germans when they are cooking/preparing food.

– Local produce is important to them and they also like to know where their food comes from. Fresh food is also of great importance.


What they are looking for?

• Healthy Food

– Healthy options that are quick to prepare and cook are appealing to

Germans. Convenience meals that are in the chilled cabinet and that

contain fresh and healthy ingredients offer most potential.

– The younger market will be won over with value for money and multipack

offers while the older market may be more interested in more sophisticated

options (given their better cooking skills) and organic ingredients.

• Clear Labelling

– Germans report some difficulty with understanding labelling on food, in

particular nutritional labelling. They would like manufacturers to help them

eat healthily so would appreciate clearer / easier to understand labels.

Information on portion size may also be useful given Germans belief that

portion control is important to healthy eating. Men and older consumers

(45+ yrs) have most issues with clarity of labelling.

• Less Packaging on Food

– Environmental awareness is high among Germans but less in terms of

looking for recyclable packaging and more in terms of looking for food

products that use less packaging.


Opportunities

• Premium/Added Value Products

– Older Germans (45+yrs) are less price conscious and offer more

potential for luxury healthy foods. Low fat and organic products

appeal to them as do Fair trade. They have good cooking skills and

enjoy creating great meals – more specialised produce will appeal

more.

• Fast, Quick & Healthy

– Convenience products appeal to younger Germans (18-34 yrs).

Taste as well as value for money are important to them. Fresh

ready meals with healthy ingredients will have strong appeal.

Microwave cooking is seen as unhealthy in Germany, focusing on

other methods of preparation such as baking, boiling or grilling may

fit more with the health image.


Retail Market

Grocery Retail Market Sizes 2007(e)

24.2010. Sweden

123.804. Italy

34.586. Greece

32.297. Switzerland

30.688. Netherlands

30.039. Belgium

97.555. Spain

144.193. Germany

185.702. United Kingdom

208.031. France

Grocery Retail Market

(€bn)

Country

111.179. Italy

167.196. India

87.5910. Spain

129.487. Germany

186.84. France

167.255. United Kingdom

126.198. Russia

264.733. Japan

302.112. China

527.421. USA

Grocery Retail Market

(€bn)

Country

Source: IGD Datacentre estimates 2008

Top 10 Western European Markets Top 10 Global Markets

IGD Global Retail Index 2007

Delhaize Group1213

Costco1112

Groupe Casino 811

Aldi 910

Rewe Gruppe109

Lidl & Schwarz 138

Auchan 77

Seven & I66

Ahold 55

Metro Group44

Tesco33

Wal-Mart Stores22

Carrefour11

RetailerGRI06

GRI07 Retailer

GRI06

GRI07

Cora Louis Delhaize2425

Marks & Spencer2724

Coop Norden2223

Kroger2122

Woolworths Ltd2321

Safeway Inc.2020

Edeka Gruppe1919

Leclerc1718

Intermarché1817

Tengelmann1616

Aeon1515

Spar International1414

Leading

global

operators

Leading

international

retailers

(potential to

be global)

International

retailers

(less of a global

focus)

Leading domestic

retailers

(potential to

internationalise

their operations)

Source: IGD Retailer Presentations 2008

German retailers make up 6 of the top 25 global retailers.

Retail Consumer Spend Per Capita

16,041.4

16,241.1

16,767.1

15,800

16,200

16,600

17,000

2006 2007 2008e

Consumer Spend/C

apita EUR

Source: IGD Datacentre 2008

1,707.8

1,750.3

1,796.2

1,680

1,700

1,720

1,740

1,760

1,780

1,800

1,820

2006 2007 2008e

Grocery R

etail M

arket/Capita EUR

Consumer Spend/Capita Grocery Retail Market//Capita

Grocery Retail Market Share by Format (%)

Source: IGD Analysis, Germany Country Presentation 2008

32.5

23.5

2625.926.125.725.325.8

25.7

41.940.639.4

38.337

34.633.5

23.7

22.52323.624.324.925.5

26

9.610.510.911.7

12.814.114.8

20.3

0

10

20

30

40

50

1990 2000 2001 2002 2003 2004 2005 2006

Hypermarkets / Superstores Discounters Supermarkets Others

Retail Grocery Market

Market Share of Top 5 German Retailers

26.3

44.7

62.269.2

77.2

0

10

20

30

40

50

60

70

80

90

1980 1990 2000 2007 2015(e)

Top 5

• Since the 1980’s the market share of the 5 retailers has progressively

increased. Despite a few minor changes the retailers in the top 5 have stayed

the same. In 2007 the top 5 were: Edeka Group 16.7%, Rewe Group 15%,

Metro Group 14.8%, Schwarz Group 11.5% and Aldi Group 11.2%.

Source: Trade Dimensions 2008

Top 10 German GroceryRetailers 2007

*Including cooperation partners, wholesaling activities, cash & carry stores and franchisees. (a) actuals; (e) estimates

Source: IGD Datacentre.

8,186(e)+4.0%26,313(e)32,501(e)Rewe Group

38(a)+2.0%2,916(e)3,820(e)Globus

3,350(e)+3.1%25,175(e)25,175(e)Lidl & Schwarz

1,200(e)+1.8%2,900(e)2,900(e)Norma

4,150(e)+2.0%22,500(e)22,500(e)Aldi Group

+18.2%

+4.0%

+0.4%

+6.5%

+2.0%

% Change Grocery Sales 2007 v 2006

10,800(e)6,000(e)6,000(e)Schlecker

-7,222(e)7,222(e)Lekkerland

3,662(e)8,575(e)11,698(e)Tengelmann

845(a)19,223(a)27,881(a)Metro Group

9,950(e)38,026(e)38,026(e)Edeka

No. of Stores

2007

Grocery Sales2007

(€m)*

Total Sales 2007

(€m)

Retailer

Retail Market Share

Lidl & Schwarz

18%

Aldi

15%

Edeka

14%Rewe

10%

Metro

8%

Netto

3%

Norma

1%

Wal-Mart

7%

Others

19%

Tengelmann

5%

Source: IGD Analysis Country Presentation 2008

Top Discounters 2007

1,200+2.0%2,800(e)2,900(e)Norma

1,300+2.5%12,000(e)12,300(e)Lidl

246+2.2%1,194(e)1,220(e)Netto (Dansk

Supermarked)*

12,847+3.2%53,884(e)55,603(e)Total

1,983+5.0%5,506(a)5,781(e)Penny (Rewe)

1,101+15.1%4,130(a)4,754(e)Netto (Edeka)

6,204(e)

22,050(e)

Net Sales

2006

€m

2,912+0.7%6,248(e)Plus (Tengelmann)

4,105+1.6%22,400(e)Aldi

Store No. (2006)

Sales Growth

07/06e

Net Sales

2007e

€m

Retailer

*Increased share of ownership. **Edeka is converting some of its existing discount formats to the Netto banner.

Source: IGD Research and estimates, Company profiles 2008

Edeka: Corporate Strategy

• Edeka is Germany’s largest co-operative and the leading food retailer. Edeka’s main goal is to maintain its market leadership. It focuses on four key areas:

– Ensure better collaboration between the central function in Hamburg (Zentrale AG) and the regional co-operatives

– Privatise company-operated outlets to improve store profitability

– Expand a better defined multi-format strategy: Edeka supermarkets, convenience stores, and a discount network from the acquisitions of Netto & Plus

– Improve its price competitiveness through:

• Tougher negotiations with brand manufacturers

• Further development of its entry-price 'Gut & Günstig‘ private label range

• Building its buying power by integrating its German business, and forging international partnerships

Source: IGD Retailer Presentation 2008

Edeka: SWOT Analysis

Strengths Weaknesses

• Brand heritage

• Broad range of formats

• Increased buying power through Alidis

alliance

• Increased scale in Germany due to

entry into discount market

• Reliance on German market

• Complexity of structure

• Diversity of banners

Opportunities Threats

• Successfully develop private label

assortment

• Greater control over Edeka's portfolio

• Format development

• Increasing alliances with like-minded

organisations

• Becoming a major discount player

• Highly competitive domestic market.

• Increased strength of hard discounters

(Aldi, Lidl & Penny) in Germany

• Rewe – following same strategy


#2 Supermarket Rewe Group: Corporate Strategy

Short-term priorities:

• Continue on its path to greater competition for quality and trust, leaving pure price competition behind.

• Expanding the organic and Fair Trade product range.

• Continue establishing private label brands successively across all price levels.

• An additional increase in turnover to well over €900m is planned for Rewe-Grossverbraucher-Service.

• Expand performance in Eastern European markets.

• Launch cash & carry format in Russia in 2008.

• Expand Penny discount stores into Turkey.


Long-term priorities:

• Food businesses: develop a clear brand strategy in Germany for the full-range

stores in Germany.

• Top three position in every operating market.

• Increase the penetration of private label.

• Drive Penny's profitability.

• Structural reforms: streamlining and re-scaling of the sales regions in Germany.

• Focus on sustainability with the aim to reduce CO2 by another 50,000 tonnes.

• Build a strong central purchasing department.

• Leveraging scale through joining buying alliances, including Coopernic.

• Targeted international expansion.

• Maintaining strong sales at the Travel and Tourism division.

Rewe Group: Corporate Strategy


Rewe GroupSWOT Analysis

• New discount model, e.g. from Lidl, forcing review

of supermarket proposition.

• Increased competition in some foreign markets

(Romania, Russia, etc.).

• Slow economic growth in Italy.

• Single-brand strategy enabling more efficient

customer communication.

• Clear focus on discount in domestic and

international markets.

• Partnership model endorsed as one that

increases profitability.

• Building buying power through alliances, e.g.

with Dohle, Coopernic,dm and Adeg.

ThreatsOpportunities

• Reliance on the demanding German market, which

accounts for over 72 % of total turnover.

• Lack of central control over all stores due to the co-

operative structure.

• Leading position in key markets:

§ 2nd largest grocery retailer in Germany .

§ market leader in Austria.

• Strong presence in Central Eastern Europe.

• Discount expertise.

• Highly motivated store managers – nearly 50

% of supermarkets owned by independent

retailers.

• Wide range of products on private label.

WeaknessesStrengths


#3 RetailerLidl & SchwarzCorporate Strategy

Mission:

Providing simplicity to Lidl customers by offering top quality products at low prices.


• Continued organic growth of both discount and hypermarket businesses.

• New market entry into Cyprus anticipated in 2008.

• Entry into Switzerland in 2009.

• Broaden appeal by introducing new categories into stores.


• Possible entry into Russia and Turkey.

• Further development of operations in southern England


Lidl & Schwarz: SWOT Analysis

• Sole focus on low price.

• Retailer consolidation.

• Increased complexity of operating model.

• Price retaliation from other retailers.

• Local opposition to central buying.

• Competition from discount operators.

• Further domestic discount expansion.

• Further international expansion.

• Introduction of Kaufland to new markets.

• Improved customer service.

• Expanding product offering, especially fresh

foods.


• Niche player in most markets.

• Reliance on discount format.

• Relations with some branded manufacturers.

• Sales performance per store.

• Domestic customer loyalty.

• Exit from Baltic States in 2006 without opening

a single store.

• Leading global discounter.

• Rapid expansion in existing markets.

• Low cost operating model.

• Unique ownership model.

• Varied portfolio.

• Centralised buying operation.

• Discount range adaptation.

WeaknessesStrengths


MetroCorporate Strategy

Mission Statement:

“…dedicated to making a contribution to the further development of the retail industry on the national and international levels, while at the same time influencing innovations in

the trade sector on a worldwide scale.”

Priorities:Western Europe/Germany:

• Establish retail brands through concept enhancements and aggressive marketing.

• Bundling of upstream functions to reduce cost structures.

• Focus on the reduction of personnel costs.

• Utilisation of new technologies to optimise processes.

• Maintaining its leading position in Germany’s consumer electronics sector.


MetroCorporate Strategy

Eastern Europe

• Targeted expansion of Real and Media Markt.

• Adaptation of formats to local market requirements.

• Increased buying synergies between the cash & carry foreign subsidiaries.

• Focus on Human Resources to secure growth quality.

• Stepping up expansion in Russia, Ukraine and Romania.

International Expansion Strategy

• By year-end 2007, foreign sales accounted for 59.1% of Metro's total sales.

• Organic growth is the preferred market entry. Partnerships are used where they provide clear added value.

• Cash & Carry format generally used to enter a new market.

• Global ambitions for its Cash & Carry division; aims to capitalise on the growth opportunities in the emerging markets of Central Europe and Asia.

• Focus on Asia with store openings in China, Vietnam, India and Pakistan.

• Egypt is the next market Metro will enter – this is expected in late 2009.

MetroSWOT Analysis

• Macro-economic pressure in Germany.

• Highly competitive domestic market.

• Competition from discounters.

• Political and economic instability in emerging

markets.

• Pace of competition from international

hypermarket operators.

• Increased retail legislation in key global markets.

• Continued expansion in emerging markets.

• Implementation of a global-sourcing strategy.

• Increasing private-label assortment.

• Continued process optimisation using internet-

based solutions.


• Challenging market for hypermarkets in Germany.

• Low level of domestic investment.

• Organic growth resulting in slower expansion.

• International Cash & Carry market leader.

• Successful consumer electronics division.

• Efficient management model offering cross-

country support.

• Process optimisation through maximising the

use of technology.

• ‘Payback’ – most popular loyalty card in

Germany.

WeaknessesStrengths


#1 DiscounterAldi Corporate Strategy

Aldi’s philosophy:

The Aldi philosophy is based on providing high quality products at the lowest possible price.


• Continued reliance on discount format.

• Organic growth in mature European markets.

• Market entry expected into Greece in 2008.

• Seeking to incorporate further ‘iconic’ manufacturers’ brands into its range.


• Aldi is reportedly investigating entry into China and could also be looking at Russia.

• Potential development of business in New Zealand to complement Australian

operations.

• Vast US market presents a long-term growth opportunity.


Aldi SWOT Analysis

• Lost international first-mover advantage to Lidl.

• Price competition.

• Other global retailers’ discount formats.

• Soft discounters.

• Retailer consolidation.

• Changing demographics.

• Global sourcing.

• US expansion.

• European expansion and new market entries.

• Range adaptation.

• Relationships with branded manufacturers.

• Develop town centre offering.


• Remains niche player in many overseas markets.

• Domestic performance.

• Adaptability of Aldi Nord vs. that of Aldi Süd.

• Reliance on one format in majority of markets.

• Excess non-food stock.

• Limited range of SKUs.

• Customer service.

• Simple consumer proposition based on price.

• Procurement, range management and logistics.

• Low cost base.

• In-store availability.

• Strong domestic position.

• Decentralised structure.

• Portfolio modernisation.

WeaknessesStrengths


23.432.1 33.4 35.1 36.1

47.938.7 36.8 34.8 33.6

28.7 29.2 29.8 30.1 30.3

1999 2003 2004 2005 2006

Premium Brands

Other Brands

Private Label

Quelle: 20.000er GfK ConsumerScan; 25.000er GfK ConsumerScan Individual * Durchschnittspreis≥Preis Marktführer (Marken,)

Basis: Durchschnittliche wertmäßige Marktanteile in 150 FMCG Warengruppen inkl. Marktführer, wenn Premiumanteil kleiner als 5%, inkl. Marktzweiten, wenn teurer als Marktführer

3.9 4.3 5.2 5.4

Inc. % growth

Polarisation of segmentsin German Retail Market

%

Quelle: GfK ConsumerScan, Nov.2005–Okt.2006

% of purchases In Discounter

65,1% % of purchases in Discounter

24,0%

51% of all consumers buy primarily at discounters

98% of all households purchased at Discounters in 2006

51% purchase regularly

at discounters

47% purchase periodically

at discounters

97% of trips 37% of trips

FOODSERVICE

Foodservice Sales Growth in Germany2006 - 2008 USD ($)

102,81695,98485,152Horeca universe total

sales USD mn

1,2521,1681,035Horeca universe, total

sales/capita USD

1,0701,000888Horeca universe food

sales/capita USD mn

87,87882,20373,072Horeca universe, food

sales USD mn

899840765Foodservice Sales

net/capita USD

73,84769,07862,993Foodservice Sales

Net USD mn

200820072006

Source: Planet Retail, HoReCa Market, Germany, 2008

Foodservice Trends

• The German foodservice market is very fragmented with the top 10 generating less than

10% of the total market.

• McDonald’s is a clear market leader with 4% market share.

• Ethnic restaurants and international fast food brands have done well. The most

predominant ethnic restaurants are: Turkish, Greek, Italian, Far Eastern and Asian.

• The fast food market is dominated by hamburgers - McDonald’s and Burger King are the

market leaders - however due to obesity pressure both have healthy menu options.

• Coffee shops are gaining ground in Germany and Starbucks is the market leader (Planet

Retail, 2008)

• Retailers continue to enter the segment with the growing trend towards healthy food/on

the go.


Foodservice Sectors

• Restaurants

- In 1970 traditional German restaurants held 90% market share. Since then International brands and ethnic restaurants have grown extensively.

eg Mosch Mosch (Asian), Sushi Circle (Japanese), Sausalitos (Mexican), Café and Bar Celona which is owned by Extrablatt

• Fast Food

- McDonald’s is expanding its McCafe brand and particularly expansion (up to 500 outlets by 2010) in the travel sector

- Kochlöffel (120 outlets) by 2009 is targeting 2nd tier cities

• Traditional outlets

- Two forms: snacks eaten or taken away from the premises of butchers and bakers.

- There are 23,000 bakery and pastry shops in Germany (1. Kamps 2. Ditsch 3. Le Crobag)

- BackWerk is a self service bakery chain

- There are 1,400 Doner kebab shops predominantly of Turkish origin

- Majority of fast food pizza outlets focus on home delivery


Foodservice Sectors

• Ice Cream Parlours

- 9,000 traditional ice cream parlours in Germany predominantly of Italian origin

- Market leader is Janny’s Eis (Nestle Scholler Group) which has 160 franchised outlets in N. and E. Germany

- New entrants include: Häagen Daz and Dutch Australian homemade

• Coffee Shops

- Growth sector in Germany: Black Bean (1998), Aran (1999), San Francisco Cafécompany, Café Einstein, Balzac, World Coffee, Segafredo

- Starbucks strong in Frankfurt and Berlin areas

- National chains tend to operate in a single geographic region with 30 outlets or less

• Retail Catering

- Liberalisation of store opening hours has impacted positively on department store catering

- 25% of IKEA’s turnover is from food sales

- Karstadt runs restaurants in about 170 stores

- Tenglemann has opened a convenience store at Berlin’s main train station with take-out options


Foodservice Sectors

• Accomodation

- Spa and city hotels popular while business hotels suffering from reduced business travel

- Three star hotels lose out as customers show hybrid behaviour:economy hotel on one trip

with luxury on the next

- Guests like niche concept eg Individual hotel with award winning restaurant

- Short term bookings increase with an average shorter length of stay.

• Contract Catering

- Compass is the largest caterer followed by LSG, Dussmann, Aramark and Sodexho

- Most companies are present in at least 3 of the sectors: Business and Industry, Education,

Healthcare and Seniors, Event catering and Airlines.

Business & Industry: Very competitive sector. Opportunity - only 1/3 of offices have

outsourced catering

Event catering: Germany is world leader in exhibitions and trade fairs. Large hotel chains

now competing eg. Intercontinental’s Catering Best


Foodservice Sectors

• Education: Sodexho the leader. Products / concepts growing include Asian snacks and sandwich bars

• Healthcare: Contract catering increasing, specialised caterers doing best.

Includes: Schubert, Klüh, Compass, Victor’s Healthcare. Changing demographics

favour this sector particularly

• Airline catering: Differentiation needed with rise of discount airlines eg Air Berlin

LSG is main player but sector suffers from reduction in airline travel

• Rail catering: DB Gastronomy growing through partnerships with top brands.

DB operates 200 Bord Restaurants and 380 Bord Bistros in addition to carriage service

• Concession catering:Airports - LSG, Wöllhaf, Mövenpick and Stockheim are the main players

Rail: Growth area for convenience outlets

Road: Tank & Rast is the main operator with 400 roadside restaurants. International

brands locating in key travel locations eg McDonalds in Petrol Station, Barilla Pasta

Counter, Nordsee and Burger King


Foodservice Establishments

• Vapiano’s– This is an Italian style foodservice outlet with counter service, with a

bar and an open plan layout.

– They reacted to growing health food awareness with the launch of

their organic, wholemeal spelt pasta in 2007 and it is believed that

this accounts for 10% of all pasta selections.

Vapiano’s Muenster Vapiano’s Frankfurt

Foodservice Establishments

• Maredo’s

– This is a South American

inspired steak house.

– It began expansion in 2005

when it was sold by

Whitbreads.

– Menu now offers more than

steaks and salads and includes

snacks and sandwiches.

– They opened their first airport

restaurant in Cologne/Bonn

airport in 2007.

FoodserviceEstablishments

• Blockhouse

– Steakhouse with 34 outlets

in Germany, 3 in Spain, 2 in

Greece and 1 in Portugal.

– Family owned enterprise.

– Retail steak packs and

sauces also available.

Reasons for targeting Germany

• One of Europe’s top retail food markets (Retail Grocery = €148bn 2008e)

• Emerging niche of premium brand food connoisseurs

• Large Organic market – Retail Turnover €5.3bn (2007)

• Positive disposition of consumers towards Ireland “Die Grüne Insel“

• Success of iconic brands eg. Kerrygold Butter, Baileys Irish Cream Liqueur,

Tullamore Dew Irish Whiskey

• Growing demographic of older consumers with higher disposable income

Barriers/challenges in supplying German market

• Food category is very price competitive - discounters make up 42% market

(2006)

• Convenience sector is still in its infancy

• Engagement with key retailers is challenging without product USP

• Decentralised distribution within Germany adds to logistical costs

Bord Bia Services 2009

ACTIVITIES

• Biofach Organic Show: Bord Bia stand with 5-7 Irish Organic companies exhibiting and 8 companies visiting (Feb 2009)

• Dairy Market Study including report and innovation update (May 2009)

• German Butcher Master Class (8 butchers) including visit to Ireland (June 2009)

• ANUGA: Bord Bia stand with Irish Meat and Dairy companies (Oct 2009)

• Bakery Market Study visit including Bakery Show (Oct 2009)

• Bord Bia office in Frankfurt staffed by Liam MacHale & Fiona O’Toole

• Services include: Itinerary Development, Category Analysis, Media review and translation services, Product Price auditing and tracking, Product retrieval, Buyer networking, Distributor searches

Bord Bia

Wöhler str. 3-5

60323 Frankfurt

Germany

Tel: +49 69 710 423 255

Fax: +49 69 710 423 200

Email: [email protected]

Germany Market Overview.pdf

Documents

Transcript of Germany Market Overview.pdf