BMI's Executive Summary

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Sales of private label food and drink products have risen dramatically over the last 15 years and BMI expects this trend to continue with renewed vigour as consumers become increasingly price savvy as the Spanish economy cools down. Spain's retailers are currently bracing themselves for a drop in consumer spending on the back of a house price slump, rising unemployment and rocketing inflation. However these threats to consumer confidence create the ideal retail environment for private label products and the discount sector which specialises in them as discussed in BMI's newly-published Q108 Spain Food & Drink Report.

The market share of private label products in Spain has increased from around 8% in 1993 to 35% today and this upward trend shows no signs of abating. This dramatic rise has come about partly thanks to the rise of the discount sector and also to a dramatic improvement in the quality of private label products. Spanish cuisine is often centred around fresh and simple ingredients and for these type of products the benefits of branded products are often much less apparent than for more heavily processed food types. In December 2007, French retail giant Carrefour announced that it is looking to increase the market share of its private label products in an effort to capitalise on this trend and benefit from the higher margins that private label products offer.

Discount stores are perhaps the spiritual home of private label products however the discount sector in Spain is relatively unsaturated and is currently dominated by one company – Carrefour and its Dia branded stores. Carrefour is easily the biggest player in this sector of the retail market and in July spent EUR200mn (US$276mn) to acquire Tengelmann's Plus discount stores in Spain. This move expands Carrefour's discount operations in Spain to around 3000 stores, making it far and away the biggest discount operator. German discounter Lidl operates around 350 stores in the country and rival discounter operates Aldi around 140, having only entered the market in 2001. However both these companies are continuing to expand rapidly and with the countries current economic problems playing into the hands of discounters BMI predicts this retail format to grow strongly. However private label products are now so well established that no retailer can afford to neglect them. In 2008 BMI expects other retailers to follow Carrefour's lead and place more and more emphasis on their private label offerings.

Contents

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Chapter 1 – Business Environment

SWOTs

Spain Food, Drink & Tobacco Industry SWOT

Macroeconomic Outlook

Table: Spain – 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: Retail indicators

Company Developments

Market Overview

Table: Structure Of Spain’s MGR Market By Number of Outlets

Table: Structure Of Spain’s MGR Market By Value (US$mn)

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: Food Consumption Indicators

Table: Food Sub-Sector Indicators

Table: Alcoholic Drinks Indicators

Table: Drinks Indicators

Table: Sectoral Trade Indicators

Company Developments

Market Overview

Chapter 4 – Tobacco

Industry Forecast Scenario

Table: Tobacco Indicators

Company Developments

Market Overview

Chapter 5 – Competitive Landscape

Key Players

Table: Key Players In Spain’s MGR Sector – 2005

Regional Company Case Studies

Metro Group In Western Europe

Table: Metro Group – Number Of Outlets By Country And 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 Sales in Leading Western European Markets in 2005

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 Analysis

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: