The German food market

T he German
food market
Helsinki, 12 March 2015
Agenda
1)  Introducing UMPR
2)  Specifics of the German food trade
3)  Suitable chains and HoReCa sales channels
4)  Logistics and importing
5)  Case study: Food From Sweden
1) Introducing UMPR
Introducing UMPR
UMPR
Strategic communications consulting agency
Key facts
§  Founded in 1989
§  25 permanent employees
§  In-house design studio
§  Proven freelance and network partners for graphics, copy, digital, media training
§  Clear sense of identification with customers à long-term client relationships (often more than 10 years)
§  Consultancy “on equal terms”
§  Network of specialised partners (digital, video & film, media training, installation art, crisis, event)
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Expertise
Strategy, positioning, corporate, brand & product
Creation “one step ahead“
Measuring concepts are based on strategic central themes
Strong food expertise
© UMPR GmbH
Introducing UMPR
Client portfolio
All-round food expertise
Current food-related briefs:
Selection of previous briefs:
SweetFamily-Logo 100 mm (Standard positive – blau auf weiss)
Farben (Vollton/4c):
Pantone 2748
(100c, 85m, 0y, 20k)
Pantone 144
(0c, 47m, 100y, 0k)
Other current briefs:
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© UMPR GmbH
2) Specifics of the German food
trade
Specifics of the German food trade
Structure
The German food trade can be divided up into the following areas:
§  Hypermarkets
§  Supermarkets
§  Discount stores
§  Department stores
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Population
80.8 million
5.4 million
No. of stores
33,000
4,066
No. of stores per inhabitant
2,400
1,300
© UMPR GmbH
Specifics of the German food trade
Special features of the German food trade
§  The sector is served by five major companies that have national coverage:
EDEKA Group– Edeka, Marktkauf REWE Group – Rewe, toom, Penny, Karstadt Schwarz Group – Lidl, Kaufland Aldi Group – Aldi Nord, Aldi Süd Metro Group – real, Metro C&C, KauAof Responsible for
65% of
turnover in the
food sector
§  Consideration given to various aspects
from initial contact to listing
§  In general, a listing in the Top 5 is a
costly business, e.g. participation in
marketing campaigns
§  Also many regional providers with high customer acceptance and a wide network of branches
(e.g. tegut)
-  perceived by consumers as on a par with large retail chains
§  Stiff competition = increasing importance of service, of attractively laid-out stores, of the
“right” range and online shops
§  Price is a major factor for consumers (as is quality)
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Specifics of the German food trade
Trends in the food industry
§  Taste is important
96% of consumers believe that food must taste good, otherwise it is not good quality (“Consumers’
Choice 2011” study)
§  Increase in consumers’ focus on quality
49% of Germans say that the quality of food they purchase is the most important thing
§  Increased interest in products with added health benefits
Sharp increase in lactose-free and gluten-free products
§  Curated food
The consumer of tomorrow – according to the trend forecast from Food Report 2014 – will value a
curated selection more than an infinite choice. Many providers are responding to this trend.
§  Locally sourced
Retailers are now offering a greater selection of local German products and have implemented
various concepts on this topic on the shop floor
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Specifics of the German food trade
Cultivating business relationships in Germany
§  The majority of food trade buyers do not make fast decisions
§  Trustworthiness and reliability as guarantees of good business relationships
§  Punctuality and compliance with deadlines are extremely important
§  Annual meetings between retailers and suppliers regarding product development,
potential new listings and advertising activities for the coming year
-  scheduled mainly for the fourth quarter
§  Product presentations and participation in the in-house fairs of German retail chains
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© UMPR GmbH
Specifics of the German food trade
Communication is paramount
§  One of the biggest differences between German and Finnish food trade is the level of
concentration
§  An attractive USP is the key to success in the saturated German market
§  Communication is paramount: it is not enough to know your own USPs, you also need to
communicate them
§  Potential communication measures include:
-  Media work (media mailings, media partnerships, maintaining close contacts, etc.), B2B & B2C, print &
online, social influencers (including food blogger relations)
-  One-voice communications: “Food From Finland”
à if applicable, publishing (magazine, website, video or film material such as explanatory films,
promotional films or similar)
-  Organising trips for journalists and bloggers to the production facilities
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3) Suitable chains and HoReCa
sales channels
Suitable chains and HoReCa channels
F innish providers – background
Characteristics of F innish food/communications potential
§  Innovative, safe and environmentally sustainable products
§  Small and medium-sized companies (SMEs) with regional ties develop and produce individual,
high-quality products
§  Primarily local raw materials
§  Authenticity and purity of products
§  Leaders in health-promoting and functional food
§  Products are very suitable for people with food intolerances
§  Expertise in food research
§  Modern production processes
Summary: “Finnish food is considered to be particularly healthy as it is free from pesticides
and the fattening animals are less contaminated by medications.”
(Source: ZEIT online, November 2006)
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© UMPR GmbH
Suitable chains and HoReCa channels
Selected sales channels
Examples of regional providers/chains
tegut
§  Largest regional provider with approx. 309 branches in Bavaria, Hesse, Lower Saxony,
Rhineland-Palatinate and Thuringia
K + K Märkte (Klass + Kock group of companies)
§  213 branches in Lower Saxony and North Rhine-Westphalia
§  Importing indirectly via an importer (e.g. Importhaus Wilms or Raul Rousso) or a distributor
(e.g. Transgourmet) can be a good option for entering the market – especially for SMEs
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Suitable chains and HoReCa channels
Selected sales channels
Examples of delicatessens
Dallmayr
§  More than 6,000 products
§  Also operates a catering service with outlets in Munich, Berlin and Düsseldorf
§  Foodies can order coffee & tea, wines & spirits, pralines & baked goods, delicatessen &
fine foods in the Dallmayr online shop www.dallmayr-versand.de
Käfer
§  The Käfer Group is based on 4 pillars: party service, catering, retail and franchising
§  Stores in the Munich area have a range of over 2,000 products
§  Many of their products are also available in their online shop:
http://shop.feinkost-kaefer.de/
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© UMPR GmbH
Suitable chains and HoReCa channels
Selected sales channels
Examples of delicatessens targeted at commercial customers
Rungis Express (CCG Cool Chain Group)
§  Target group: High-class hospitality sector (restaurants, hotels and delicatessens in
Germany, Europe and further afield); secondary target: cooking enthusiasts
§  More than 3,000 items in the range (fish, meat, seafood, poultry, spices, etc.)
§  Has its own forwarding company and offers customers an extensive distribution network
§  Many producers deliver their products to Rungis in Paris, from where they are shipped by
FrischeParadies’ logistics provider (Nagel Airfreight) to all FrischeParadies outlets
FrischeParadies (Dr. Oetker Group)
§  More than 5,000 items in the range (fish and seafood are the most important product
group, followed by meat)
§  8 FrischeParadies stores
§  Target group: Restaurateurs and private gourmets can buy there without having to have
a store card
§  Central purchasing in Hürth/Cologne
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Suitable chains and HoReCa channels
Selected sales channels
Examples of health food stores
§  Many small health food store operators and independent organic food stores
§  Health food stores have established themselves as a brand in the organic and health food sector:
Reformhaus
§  Approx. 1,450 in Germany
§  Range includes primarily products that have been processed in an environmentally friendly way
and have a high health value, natural foods, dietary foods, as well as natural cosmetics, natural
medicines and food supplements
§  Examples from the wholesale and retail sector:
Alnatura
§  More than 65 stores in Germany
§  Range includes more than 1,000 organic foods
Dennree
§  denn’s Biomarkt has more than 140 stores in Germany and more than 5,000 products
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Suitable chains and HoReCa channels
Selected sales channels
Examples of specialist online shops
§  The number of online shops selling organic products is exploding:
biomondo
§  Organically certified and a supporter of the Slow Food movement in Germany
§  Range covers more than 5,000 organic foods, including foodstuffs, wine and natural cosmetics
all bio
§  Organic foodstuffs are its core business; range includes more than 2,000 products
§  Preference for locally made products where possible
§  Certified Trusted Shop
FOODIST.de/FOODIST-HANDEL.de
§  Hamburg-based start-up
§  Curated food: Subscription box for gourmet food – a monthly selection of international
delicacies for EUR 24.00
§  FOODIST-HANDEL.de helps companies entering the market with market research tools and
marketing materials
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Suitable chains and HoReCa channels
HoReCa in Germany
Hotel/restaurant/café or catering
Opportunities:
§  Always searching for original and special products/ideas (e. g. Finland weeks in canteens,
unusual international ingredients for the hospitality sector)
§  Distributors who specialise in the hotel or hospitality sector
However:
§  Difficult to establish a brand aimed directly at consumers
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© UMPR GmbH
Suitable chains and HoReCa channels
Media landscape for HoReCa and food retail sector
Communication is key
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© UMPR GmbH
Suitable chains and HoReCa channels
Communication is key
Using the trend for curated food
Idea for an initial foray into the German market:
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Step 1:
Generate attention
Step 2:
Feel your way into the market
Focused PR campaign: “Food from
Finland”
§  Develop a concept with a
mission statement and core
messages
§  Aim: To create a basis for
entering the market and
increasing awareness of Finnish
products
Initiate contact with FOODIST.de
to place Finnish products in the
subscription box
§  Use the trend for curated food
§  Aim: To feel your way into the
German food market
Step 3:
Entering the
market
© UMPR GmbH
4) Logistics and importing
Logistics and importing
Logistics and distribution
§  Local distribution in some regions is more costly/more difficult to achieve, e.g. in eastern
Germany
§  Larger retailers are more decentralised than in neighbouring countries
à requires logistics solutions
§  Traditional logistics routes:
-  Direct (deliver to the central warehouse of the food retailer/delivery to the regional
warehouse of the food retailer/third-party delivery (directly to individual stores)
-  Indirect (via wholesalers/brokers/distributors/importers)
-  In the case of niche products, indirect delivery to the retailer is often the most
appropriate option
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Logistics and importing
Advantages of a German logistics partner
§  Even many German producers use logistics providers such as Dachser or Nagel to deliver
goods as a consolidated shipment to several warehouses throughout Germany.
§  A logistics partner like Dachser is usually used for warehousing and delivery in the food
trade.
Advantages:
§  Reduced costs
§  Shorter lead times
§  Smaller minimum order quantities, i.e. business relationships can be established with
smaller retail customers
§  Possibility to conduct tests or test listings
§  Know-how
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5) Case study: “Food From
Sweden”
Case study: “Food From Sweden”
Food From Sweden – background
§  Association of Swedish food producers and the Swedish Ministry of Agriculture
§  Objective of Food From Sweden:
§  To provide support for the export marketing activities of Swedish food producers in all
foreign markets
§  To initiate cooperation between Swedish food retailers, their representative
organisation “Livsmedelsföretagen” and the Swedish Trade Council represented in
Germany, the Baltic States, Finland, France, the Netherlands, Poland, Russia and
Ukraine
§  Representatives in Germany: Swedish Trade Council, Berlin and UMPR,
Hamburg
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© UMPR GmbH
Case study: “Food From Sweden”
How Food From Sweden works
Organised: A good network of Swedish companies and German distributors
Successfully: Eight contented retailers (“recidivists”)
Focused: At most one or two promotions a year in the German retail market
Swedish: “There are no problems, just opportunities”
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Case study: “Food From Sweden”
Our functioning in detail
§  FFS talked to interested retailers and wrote a project outline.
§  FFS attracted interesting Swedish companies and introduced them to the retailer’s buying
department.
§  FFS organised product samples, master data, pictures, logistics data, etc.
§  FFS coordinated the attendance at retailer fairs and presented the promotion to store
managers/division managers.
§  FFS provided communications support.
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© UMPR GmbH
T he core idea:
“Germans love food from Sweden –
they just don’t know it yet!”
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© UMPR GmbH
Case study: “Food From Sweden”
Germans love food from Sweden...
they just don’t know it yet!
Message 1 Sweden – there’s more to it than crispbread and cold fish! Message 2 Swedish food producers are compeIIve and competent trade partners – a kind of cooperaIon you can earn a lot of money with! The solution: The customer will be approached via two communication channels
ExciIng, lively media work to publicise Swedish food and Swedish cooking in Germany AcIve communicaIon measures and acIviIes for the retail trade 30
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© UMPR GmbH
Case study: “Food From Sweden”
Measures
Preparing and implementing Swedish promotion weeks in the retail market
Fair attendance
§  Support for all Swedish companies at German food fairs: press kits, arranging meetings
with journalists, trade partners and distributors
Media work
§  Press releases on Swedish products and Swedish cooking
§  Journalist trips to Sweden (with Elle Bistro, Vital, Für Sie, Lebensmittel Zeitung,
Lebensmittel Praxis, Men’s Health, Brigitte, Meine Familie & ich)
§  Media event: Celebration of midsummer’s night in Hamburg
§  Famous Swedish chefs prepare delicious meals for journalists
§  Market monitoring
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Case study: “Food From Sweden”
food — the magazine for “decision makers” in the German food retail industry
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Case study: “Food From Sweden”
Measures – strategy plus magazine
An innovative instrument for addressing the trade:
– Aesthetically appealing 16-page magazine that communicates with 2,000
decision makers and buyers in the German food retail trade and approx.
500 journalists
– Published quarterly, contains information about Swedish food, Swedish
food traditions and Swedish food producers
– Main communication platform and the heart of the CI
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Case study: “Food From Sweden”
Retail promotions overview
2000/2001
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2002/2004
2005/2009
EDEKA Nord
“Swedish weeks” in 786 supermarkets:
17 companies present more than 75
products
Otto Reichelt AG, Berlin
Promotions in 120 supermarkets with
products from Sweden and Finland for
three weeks
tegut 2005 & 2006
§  “Sweden tastes delicious!” in 300
tegut outlets
§  “Sweden week” in 21 outlets:
17 companies present more than
100 products
SPAR
„Swedish week“ at all Spar
“Schlemmermärkte” throughout
Hamburg
Coop Schleswig-Holstein
Two separate weeks of “Sweden
promotions” in all eight Plaza
supermarkets in northern Germany
Edeka Minden 2005 & 2006
§  “Sweden week” in 66 E-Center outlets:
23 companies present more than 56
products
§  “Sweden week” in 78 E-Center outlets:
10 companies present 10
products
Coop Mecklenburg-Western Pomerania
Promotion of 50 products from Sweden
in 48 SKY supermarkets for 14 days
Kaufhof
14 days of “Scandinavian weeks” with a
focus on Sweden in all 29 German
Kaufhof food departments
Reichelt Berlin
“Sweden week” in 54 Reichelt outlets in
Berlin: 8 companies present more than
25 products
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© UMPR GmbH
Case study: “Food From Sweden”
Satisfied? Absolutely!
§  More than 65 different companies exported their products to Germany over the course of
13 Sweden promotions.
§  Products with a total value of more than EUR 4 million were sold in 1,600 food markets
over the course of the promotions.
§  An evaluation of the assessments provided by the Swedish companies and retailers on
the activities conducted during trade fairs, PR and promotions showed that 95 percent of
them were satisfied or very satisfied.
§  Several products were established in the product ranges of retail outlets.
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© UMPR GmbH
Case study: “Food From Sweden”
Selection of participating companies
Abba // Absolut // Again // Åkes Hembageri Almondy // Anna`s // Arla // Bergströms //
Björnekulla // Boxholms // Bröderna Nilsson // Caj P's // Cloetta Fazer Sverige // Daim //
Delikatessbageriet // Deli Lapland // Dafgårds // Delicato // Direkt Chark // Druvan //
Estrella // Falbygdens Ost // Froosh // Frödinge // Gille // Göteborgs Kex // Gräddost //
Hägges // Jokk // Karamelpojkarna // Kopparbergs // L&S (Alböl) // Läkerol // Larsen //
Leksandsbröd /// Marabou // Nobel Lachs Import // NordSpezial Käse // Norrmejerier //
Oatly // Pagen // Polarica // Ramlösa // Raoul Russo // Royal Danish Seafood // Sannäs
Räkor // Scan Foods // Scandinavian Silver Eel // Stefan Palsson Laxrökeri // Stührk, Richter
und Greif // Svenska Frukt & Bär // Svenska Lantchips // Swedish Glace // Swit's Gebäck //
Tholstrup // Trendway/mi cider // Tulip // VOD //Västkustfilets // Vedum // Wanas // Wasa //
Wild Delights // Willy Viking
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Case study: “Food From Sweden”
Learnings
§  Establish Food From Finland as a brand and launch it on the market as a complete
offering
§  Start small/on a regional basis
§  Seek out partners for importing, distribution and logistics
§  Push the brand via a package of communication measures and generate attention for
Finnish food
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Communications support
B2B and B2C communications consultancy
How UMPR can help
§  Strategy, consultancy, project management
-  Workshop-based review and adaption of the marketing strategy for the German
market
§  Creating and implementing PR campaigns
§  Media work (B2B & B2C, print & digital)
§  Layout & design for B2B and B2C communication – from flyers or magazines to websites
and packaging redesign
UMPR network partner:
Christiane Dirkes Communications
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Support of the appearance of Finland on the World Expo 2000
Cooperation with/pr for Invest in Finland
PR for the outdoor-label „Reima“
Good relations with retail associations in Germany
© UMPR GmbH
Wir empfehlen uns.
UMPR – Mut zur Kommunikation.
Jennifer Bortchen
T +49. 40. 48 06 37 10
jennifer_bortchen@umpr.de
UMPR GmbH
Mittelweg 111 a
20149 Hamburg
umpr.de
t +49. 40. 48 06 37-0
info@umpr.de