Germany Market Overview - Bord Bia · German Market Overview • Population: 82.34 million –...
Transcript of Germany Market Overview - Bord Bia · German Market Overview • Population: 82.34 million –...
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.
Source: PERIscope 2008
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.
Source: PERIscope 2008
Key Lifestyle Trends
Source: PERIscope 2008
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.
Source: PERIscope 2008
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.
Source: PERIscope 2008
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.
Source: PERIscope 2008
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
Source: IGD Retailer Presentation 2008
#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.
Source: IGD Retailer Presentation 2008
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
Source: IGD Retailer Presentation 2008
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
Source: IGD Retailer Presentation 2008
#3 RetailerLidl & SchwarzCorporate Strategy
Mission:
Providing simplicity to Lidl customers by offering top quality products at low prices.
Short-term priorities:
• 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.
Long-term priorities:
• Possible entry into Russia and Turkey.
• Further development of operations in southern England
Source: IGD Retailer Presentation 2008
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.
ThreatsOpportunities
• 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
Source: IGD Retailer Presentation 2008
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.
Source: IGD Retailer Presentation 2008
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.
ThreatsOpportunities
• 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
Source: IGD Retailer Presentation 2008
#1 DiscounterAldi Corporate Strategy
Aldi’s philosophy:
The Aldi philosophy is based on providing high quality products at the lowest possible price.
Short-term priorities:
• 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.
Long-term priorities:
• 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.
Source: IGD Retailer Presentation 2008
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.
ThreatsOpportunities
• 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
Source: IGD Retailer Presentation 2008
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.
Source: Planet Retail, HoReCa Market, Germany, 2008
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
Source: Planet Retail, HoReCa Market, Germany, 2008
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
Source: Planet Retail, HoReCa Market, Germany, 2008
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
Source: Planet Retail, HoReCa Market, Germany, 2008
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
Source: Planet Retail, HoReCa Market, Germany, 2008
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]