BMI's Executive Summary

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An economic upturn in 2006 and 2007, which has been fuelled by strong demand for Germany's exports in both developed and emerging markets, is yet to filter through fully to wages and therefore to consumer confidence and consumer spending. However the country's strong GDP growth is finally starting to be registered by employees, with union wage demands notably higher than in previous years and salaries starting to increase. The country's prolonged period of economic stagnation means that many consumers remain wary, however, if Germany's strong economic performance continues BMI believes consumer spending will start to significantly rise – a development which could have a significant impact on the country's food and drink sector as discussed in BMI's newly-published Q108 Germany Food & Drink Report.

For the last 15 years, the country's economic problems and resulting high unemployment has played into the hands of the discount retail channel, which emphasises low prices and a no frills retailing environment. German discounters such as Lidl and Aldi, as well as conventional retailer's own discount formats, such as Edeka's Netto, have expanded rapidly over this period. The country's economic woes have also been partly responsible for the dramatic rise in private-label products, as price-sensitive German consumers spurn brands in favour of value. However, in BMI's opinion the economic upturn may well usher in a new set of trends that will govern Germany's food and drink sector over the next few years.

A move towards premium products, witnessed in many developed markets that have been recording strong economic growth such as the United Kingdom and the US, has yet to be full embraced by German consumers. However this is likely to be a result of the country's poor economic growth and a drop in unemployment and a rise in wages is likely to see more premium products find a market in Germany. A move towards premium products may also mean stronger growth for Germany's supermarket and hypermarket sector, which has suffered at the hands of the discount sector. There are already signs that retailers are looking to capitalise on this economic recovery with more upmarket store formats in prime locations; retailing giant Rewe has announced plans for a more up-market supermarket format and retailer Tengelmann has announced it will remodel 50 outlets into more up-market stores.

Contents

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Chapter 1 – Business Environment

SWOT

Germany Food, Drink & Tobacco Industry SWOT

Macroeconomic Outlook

Table: Germany - Macroeconomic Forecasts

Chapter 2 – Retail

Regional Overview

Discounting In Western Europe

Table: Types Of Discount Stores – Western Europe

Table: Leading Discount Store Operators – Europe* 2005

Industry Forecast Scenario

Table: Sales Value by Format in Germany's Mass Grocery Retail Sector - Historical Data & Forecasts (US$bn)

Company Developments

Market Overview

Table: Structure Of Germany’s MGR Market By Number Of Outlets

Table: Sales Format By Value In Germany’s MGR Market (US$bn)

Table: Structure of Germany's Mass Grocery Retail Market by Number of Outlets

Table: Average Sales Per Outlet By Format (US$mn) – 2005

Chapter 3 – Food & Drink

Regional Overview

Bottled Water In Western Europe

Table: Leading Bottled Water Manufacturers By Country – Western Europe

Industry Forecast Scenario

Table: Germany Alcoholic Drinks Indicators Historical Data & Forecasts

Table: Germany Food, Beverage & Tobacco Consumption: Historical Data & Forecasts

Industry Developments

Company Developments

Market Overview

Chapter 4 – Tobacco

Industry Forecast Scenario

Table: Germany Cigarette Consumption: Historical Data & Forecasts

Industry Developments

Company Developments

Market Overview

Chapter 5 – Competitive Landscape

Key Players

Table: Key Players In Germany’s MGR Sector

Table: Key Players In Germany’s Food & Drink Sector (2005)

Regional Company Case Studies

Metro Group In Western Europe

Table: Metro Group – Number Of Outlets By Country & Fascia 2004 & 2005

Table: Metro Group – Fascia Statistics

Unilever plc/Unilever NV In Western Europe

Table: Unilever Food & Beverage Main Brands By Country – Western Europe

Table: Unilever Sales By Geographical Area 2004 & 2005 – Continuing Operations

Table: Unilever – Principal Group Companies Western Europe

Nestlé In Western Europe

Table: Nestlé In Western Europe - The Figures

Carlsberg In Western Europe

Table: Carlsberg Sales (US$) & Growth (%) By Region – 2005

Table: Carlsberg Sales (US$) & Growth (%) by Region – Q106

Table: Carlsberg Regional Strategies

Table: Carlsberg Operations In Western Europe

Company Profiles

Oetker Group

Nordmilch Group

Radeberger Group

InBev Germany

Lidl

Rewe Group

BMI Forecast Modelling

How We Generate Our Industry Forecasts

Retail Industry

Sources

Competitive Landscape for Europe Food & Drink Reports: Sample of  
Companies Ranked

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At-a-glance perspective on the strengths, weaknesses, opportunities and threats facing each market’s food & drink industry. BMI also provides similar economic and business environment studies. Company SWOTs (Strengths, Weaknesses, Opportunities, Threats) covering all leading food and drink companies operating in each market, including competitive intelligence on geographic presence and competitive positioning of multinationals against local companies; leading products, services and brands; sales and local market share; foreign direct investment, projects, partners and acquisition strategy. Illustration of the industry via rankings tables comparing revenues, number of outlets, number of employees and registration dates. BMI analyses each company’s performance, market position, strategy and investment potential.

Network of European Food Sources

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BMI's European Food Reports are based on an extensive network of multilateral organisations, government departments, food industry associations, chambers of commerce and company reports. Information sources include: