Germany Food and Drink Industry Update Quarter 4 2011
$ 1 088
- August 2012
- by Business Monitor International
- 125
Germany’s economic outlook remains clouded by the continued risk of a eurozone break-up scenario,
which would lead to an immediate collapse in fixed investment and hit external demand for German
exports very hard. Indeed, we note that our latest economic growth projections for Germany show that we
do not see a meaningful economic rebalancing process towards higher household consumption (and
away from export-led growth) taking shape in Germany over the medium term. This will prevent a more
rapid rise in final household consumption expenditure, while leaving the economy highly vulnerable to
the very weak growth trajectory for the wider eurozone economy over the coming 10 years.
Headline Industry Data (local currency)
- 2012 per capita food consumption = +2.6%; forecast to 2016 = +15.2%
- 2012 alcoholic drink sales = +0.9%; forecast to 2016 = +4.2%
- 2012 soft drink sales = +2.8%; forecast to 2016 = +16.4%
- 2012 mass grocery retail sales = +4.7%; forecast to 2016 = +27.8%
Key Company Trends
Müller and PepsiCo Team Up for Push into US Yoghurt Market: Despite criticism that it has lost sight of
its traditional strengths, US giant PepsiCo continues to advance into healthier categories, with the firm
announcing in July 2012 its new yoghurt offering for the US market. Through a joint venture with
Germany’s Müller, the firm is to launch three new products: Müller Corner, Müller FrutuUp and Müller
Greek Corner. The operation is set to take advantage of PepsiCo’s existing chilled distribution network,
honed through its juice brand Tropicana, and the dairy expertise of Müller
Metro Offloads UK Cash & Carry Business: Germany-based retail giant Metro Group recently
announced the sale of its UK wholesale arm Makro UK to local rival Booker in a cash and shares deal..
The move is a response to weak performance at the unit, which has been hit by changing consumption
patterns and the incursion of supermarket groups into the convenience channel. Over the last four years,
Metro’s cash-and-carry unit (from which it generates 46% of its revenues) has suffered owing to poor
performance in the domestic market and slowing sales in other Western European markets. BMI believes
a trend away from cash-and-carry outlets is structural rather than cyclical, with leading grocery retailers
expanding their operations into the convenience channel and reducing the base of independent outlets
upon which Metro is reliant. This is likely to prompt consolidation within the sector, and the tie-up
between Booker and Metro may become part of a wider trend.
Key Risks To Outlook
Continuing Eurozone Uncertainty: The single-biggest risk to our outlook is an adverse outcome to the
eurozone sovereign debt crisis and the further collapse of euro area demand for German goods. In the
event of a eurozone ‘exit’ by a larger member state over the next 12 months, the resulting capital flight
from the periphery to the eurozone core would in all likelihood lead to sharp nominal currency
appreciation for Germany, eroding the country’s export competitiveness and leading to a sudden
downward correction to the trade in goods surplus.
In the absence of political cohesion and resolve to address the structural shortcomings of the European
Monetary Union, we believe that any short-term measures designed to address the crisis will prove little
more than temporary stopgaps, continuing to weigh on household and business sentiment, in turn, placing
downside pressure on Germany’s growth outlook.
BMI Industry View . 7
SWOT Analysis 9
Germany Food Industry SWOT .. 9
Germany Drink Industry SWOT .. 10
Germany Mass Grocery Retail Industry SWOT .. 11
Business Environment 12
BMI’s Core Global Industry Views .. 12
Table: Core Views . 20
Western Europe Risk/Reward Ratings 21
Table: Western Europe Food & Drink Risk/Reward Ratings Subcategories, Q312 (scores out of 10) . 21
Table: Western Europe Food & Drink Risk/Reward Ratings, Q412 .. 24
Germany Food & Drink Business Environment Rating . 25
Macroeconomic Outlook 26
Table: Economic Activity 30
Industry Forecast Scenario 31
Consumer Outlook 31
Food. 34
Food Consumption . 34
Table: Food Consumption Indicators – Historical Data & Forecasts, 2009-2016 . 34
Confectionery 34
Table: Confectionery Value/Volume Sales – Historical Data & Forecasts, 2009-2016 35
Prepared Food . 35
Table: Frozen Fruit & Vegetables . 36
Table: Snack Foods .. 38
Table: Pasta .. 40
Table: Dairy . 42
Table: Meat .. 45
Table: Fish . 47
Table: Oils And Fats . 49
Drink 52
Soft Drinks And Bottled Water . 52
Table: Soft Drinks Value/Volume Sales – Historical Data & Forecasts .. 52
Alcoholic Drinks . 56
Table: Alcoholic Drinks Value/Volume Sales – Historical Data & Forecasts .. 57
Hot Drinks . 58
Table: Hot Drinks Value Sales – Historical Data & Forecasts 58
Mass Grocery Retail 59
Table: MGR Sales Value By Format – Historical Data & Forecasts, 2009-2016 59
Trade .. 60
Table: Food & Drink Trade Balance – Historical Data & Forecasts 60
Food . 61
Key Industry Trends And Developments 61
Muller Teams Up With Pepsico For Push Into US Yoghurt Market 61
Barilla Announcements Fit With Branded Focus 63
Germany Food & Drink Report Q4 2012
© Business Monitor International Ltd Page 4
UB Snack Unit Better Fit For Intersnack Than Kellogg . 65
Competition In Ice Cream Heating Up 67
Halloren Looking Outside Of Germany For Chocolate Growth .. 68
Convenience Hits The Spot 68
Organic Food Receives Boost After Dioxin Food Scandal 69
Arla’s International Ambitions Come To Fruition With Hansa-Milch .. 70
DMK Urges Further Dairy Sector Consolidation .. 71
Katjes Looking For Stronger International Growth .. 72
Market Overview .. 73
Food Sector .. 73
Organics . 74
Dairy . 75
Drink 77
Key Industry Trends And Developments 77
Henkell Positions For Sparkling Growth With Cava Acquisition 77
German Beer Exports Have Huge Potential . 78
Could Coca-Cola Enterprises Ignore Germany? 79
Wine Sector Needs To Consolidate To Compete . 81
Consolidation Moves In Soft Drinks . 83
Winemakers Eye Asian Markets .. 83
Market Overview .. 84
Soft Drinks . 84
Alcoholic Drinks . 84
Mass Grocery Retail .. 86
Key Industry Trends And Developments 86
Metro Sells UK Cash & Carry Operation .. 86
Metro CEO Bows To Pressure; More Radical Reorganisation Needed 87
Tengelmann Distances Itself From A&P In US 88
Grocery Retail Competition Probe Launched .. 88
Expansion Across Sectors To Hedge Bets .. 89
Market Overview .. 90
Table: Structure Of Germany’s Mass Grocery Retail Market – Estimated Number Of Outlets 92
Table: Structure Of Germany’s Mass Grocery Retail Market – Sales Format By Value (US$bn) .. 92
Table: Structure Of Germany’s Mass Grocery Retail Market – Sales Format By Value (EURmn) 92
Competitive Landscape .. 93
Table:
Key Players In Germany’s Food Sector 93
Table:
Key Players in Germany’s Drink Sector .. 95
Table:
Key Players In Germany’s Mass Grocery Retail Sector 96
Company Monitor 98
Food. 98
Oetker Group 98
DMK 100
Haribo 102
Lieken Group ..104
Drink ..106
Emig GmbH & Co KG (GerberEmig Group) ..106
Radeberger Group (Oetker Group)..107
Anheuser-Busch InBev Germany ..109
Germany Food & Drink Report Q4 2012
© Business Monitor International Ltd Page 5
Mass Grocery Retail ..111
Lidl Group 111
Rewe Group .113
Demographic Outlook 115
Table: Germany’s Population By Age Group, 1990-2020 (‘000) 116
Table: Germany’s Population By Age Group, 1990-2020 (% of total) 117
Table: Germany’s Key Population Ratios, 1990-2020 118
Table: Germany’s Rural And Urban Population, 1990-2020 ..118
Risk/Reward Ratings Methodology 119
Table: Rewards ..119
Table: Risks .120
Weighting .120
Table: Weighting ..120
BMI Food & Drink Industry Glossary 121
Food & Drink 121
Mass Grocery Retail ..121
BMI Food & Drink Forecasting & Sourcing .. 123
How We Generate Our Industry Forecasts .123
Sourcing .124
Food Retailing in Germany
- $ 250
- Industry data
- January 2013
Yearly, From 2002 To 2016
By Business Monitor International
Source: Federal Statistics Office, HDE, Federation of German Food and Drink Industries, BMI/BMI calculation
- Industries : Food Retailing
- Countries : Germany
- $ 250
- Industry data
- January 2013
Yearly, From 2002 To 2016
By Business Monitor International
Source: Federal Statistics Office, HDE, Federation of German Food and Drink Industries, BMI
- Industries : Food Retailing
- Countries : Germany
- $ 250
- Industry data
- January 2013
Yearly, From 2002 To 2016
By Business Monitor International
Source: Federal Statistics Office, HDE, Federation of German Food and Drink Industries, BMI
- Industries : Food Retailing
- Countries : Germany
- $ 250
- Industry data
- January 2013
Yearly, From 2009 To 2012
By Business Monitor International
Source: Federal Statistics Office, HDE, Federation of German Food and Drink Industries, BMI/BMI calculation
- Industries : Food Retailing
- Countries : Germany
- $ 250
- Industry data
- January 2013
Yearly, From 2002 To 2010
By Business Monitor International
Source: Federal Statistics Office, HDE, Federation of German Food and Drink Industries, BMI
- Industries : Food Retailing
- Countries : Germany