Abstract
The leading food and drink manufacturers are experiencing major pressure on
their brands, as factors such as consolidation, intense price competition and
private label development impact growth and success in the European food and
drinks market; published by Business Insights, 'The Future of European Food
and Drinks Retailing' is the definitive guide analysing retail market value,
future store formats, growth and future of private label brands across Europe
and the implications for brand owners. This report will enable you to discover
which retailers will be the most successful over the next five years and
assess the threat they pose to brand manufacturers; reinforced by the latest
industry opinion survey of executives from leading food and drinks companies,
identify the countries where retailers are pioneering in new formats and
expanding private label.
Table of Contents
Chapter 1 Market development 18
- Summary 18
- Introduction 19
- European food retail market value 19
- Consolidation of retailer market share in Europe 21
- Price pressures and regulatory action 24
- France 25
- Germany 26
- Italy 27
- Sweden 27
- UK 28
- Leading foreign players 29
- Leading food retailers 31
- Maturity of the European food retail market 33
Chapter 2 Future store formats 38
- Summary 38
- Introduction 39
- Food retail market segmentation 39
- Diversification into convenience stores 41
- Regulation and store opening hours 42
- The growth of discounters 44
- Expansion of product offering 49
- Fresh produce 49
- Branded products in store 50
- The impact on private label 52
- Changes in space allocation 54
- Growth of fresh produce in discounters 56
- Increase in non-food in supermarkets 56
- Expansion of online offering 58
- Online users in Europe 58
- Online offering by retailer 59
- Effect on in stores sales 61
- Case study: The Metro Group's future store 62
- Introduction 62
- The technology 62
- The personal shopping assistant 62
- Electronic pricing labels 63
- Information terminals 64
- Supply chain rationalization 65
- Conclusions 68
Chapter 3 Growth of private label 70
- Summary 70
- Introduction 70
- Private label development 71
- Belgium 72
- France 73
- Germany 74
- Italy 74
- Netherlands 75
- Spain 75
- UK 76
- Promotion and pricing activities 77
Chapter 4 Future private label brands 80
- Summary 80
- Introduction 81
- Discount private label 81
- Premium ranges 83
- Private label and ethical retailing 89
- Nutritional labeling 90
- Salt and fat reduction in private label products 92
- Locally sourced products 95
- Key innovators in local products 96
- Fair Trade 102
- The future of mainstream brands 105
Chapter 5 Conclusions 114
- Summary 114
- Introduction 115
- The future of the European grocery retail market 115
- Leading innovative retailers 115
- Key formats in Europe 117
- Convenience growth strategies for manufacturers 118
- Develop products for convenience stores 118
- Supply discount stores 121
- The private label threat 122
- Ethical retailing 123
- Innovate 124
- Be innovative in product formulation 124
- Develop innovative packaging 125
- Broaden brand portfolio to target more consumers 126
- Upgrade to super-premium 126
- Create value brands to compete with discount private labels 127
- Joint ventures for co-branding 128
- Index 129
List of Figures
- Figure 1.1: European regions that have experienced the most change in the
food and drink retail market in the last 5 years 21
- Figure 1.2: Market shares of the top 5 and top 10 retailers in Europe,
(%), 2004 22
- Figure 1.3: Forecast growth, (%), 2005-2010 vs. market share of the top 5
retailer, (%), 2004, by country 23
- Figure 1.4: Regulatory analysis by country 25
- Figure 1.5: Maturity and sophistication of the European food retail market
by country 34
- Figure 2.6: Food retail market segmentation: % share, by value, 2004 39
- Figure 2.7: The fastest growing formats in terms of market share across
Europe over the next 5 years 40
- Figure 2.8: Discounter presence vs. market consolidation 48
- Figure 2.9: The level of impact on sales of private label products with
branded products in hard discounters 53
- Figure 2.10: Internet user growth, %, 2000-2005 58
- Figure 2.11: How will the relationship between online and in store
retailing change for multiple grocers across Europe in the next 5 years? 61
- Figure 2.12: Technology in the Future Store 63
- Figure 2.13: The smart chip 65
- Figure 2.14: Potential benefits of RFID, from supply chain to after sales
67
- Figure 3.15: Private label sectors that will have the biggest impact on
brands across Europe in the next 5 years 71
- Figure 3.16: Private label shares by country, (% value), 2004 72
- Figure 3.17: The level of importance for various promotion/pricing
activities in food and drink retailing over the next 5 years 77
- Figure 4.18: Leading European retailer value private labels 81
- Figure 4.19: Factors driving premiumization 85
- Figure 4.20: Leading European retailers premium private labels 87
- Figure 4.21: Warburtons Cranberry Fruit Loaf 88
- Figure 4.22: How important are ethical/ responsible practices to the
future success of food and drink retailing? 89
- Figure 4.23: Tesco nutritional labeling 90
- Figure 4.24: Delhaize nutritional labeling 91
- Figure 4.25: Marks & Spencer gourmet additive free crisps 94
- Figure 4.26: Fili鑽e Qualit・Carrefour 96
- Figure 4.27: Reflets de France 97
- Figure 4.28: EU organic logo 100
- Figure 4.29: Organic private label ranges 101
- Figure 4.30: Fair Trade logo 103
- Figure 4.31: Nestle Fair Trade coffee 104
- Figure 4.32: Mainstream brands are being squeezed by premium and discount
labels 105
- Figure 4.33: Nativa White Tea 107
- Figure 4.34: % of innovative product launches in each category, 2000-2005
108
- Figure 4.35: Wellness Coca-Cola Functional Drink 109
- Figure 4.36: Gira & Gratta Cheese + Rotary Grinder 110
- Figure 4.37: Tyrrells, Kettle Chips and Walker's Sensations innovative
premium snacks 111
- Figure 5.38: Leading examples of products for convenience stores 119
- Figure 5.39: Types of private label products that will experience an
increase in sales over the next 5 years 122
- Figure 5.40: Brand manufacturers' labeling initiatives 123
- Figure 5.41: Ty Nant Still Water 125
- Figure 5.42: Varieties of beer under the Kronenbourg brand 126
- Figure 5.43: Nestle have a wide portfolio of brands 127
- Figure 5.44: M・ler have created joint ventures for added credibility 128
List of Tables
- Table 1.1: Food retail market value by country, $bn, 2005-2010 20
- Table 1.2: Leading foreign players by country, 2004 29
- Table 1.3: Leading grocery retailers, 2005 31
- Table 2.4: Value of convenience store food and drink sales by country,
2005-2010 (US$m) 41
- Table 2.5: European store opening hours 43
- Table 2.6: Discounter presence by country, (%), 2004 44
- Table 2.7: Leading multi-format retailers with discount operations 46
- Table 2.8: UK grocery space data, average (%), 2005 54
- Table 2.9: UK grocery space data, average (%), 2005 (Cont) 55
- Table 2.10: Online offering by retailer 59
- Table 4.11: The value (US$bn) of specialty food and drinks markets, by
country, 2005-2010 84
- Table 4.12: Wealth groups in Europe (m) 2000-2005 86
- Table 4.13: Value of the global (Europe and US) organic food and drink
markets by key product markets, $bn, 2005-2010 99
- Table 5.14: The leading innovative retailers in food and drinks retailing
over the next 5 years 115
- Table 5.15: European regions that will experience the most growth in terms
of market share in convenience and discount stores in the next 5 years 118