- Published: November 2008
The Future of European Food and Drinks Retailing: Implications of Fast Growth Formats and Private Label For Brand Manufacturers
- Published: February 2006
- Region: Europe
- 130 pages
- Scripp Business Insights
Explore why private label development and format diversification will occur in European food and drink retailing over the next five years with this new management report.
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.
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.
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.
Hot issues covered in the report
The food and drinks retail market has become polarized as many customers migrate to the value-led part of the market and premium goods are becoming more accessible for consumers, creating a squeeze on mainstream brands from discount and premium private labels.
To appeal to a wider range of consumers, discounters are making their offer more sophisticated by expanding fresh produce and introducing brands in store. Discounters are forecast to significantly increase market share in the UK, Poland and the Czech Republic over the next 5 years.
One of the least consolidated markets in Europe, Italy, presents considerable opportunity for retailers. However, there are barriers to market growth and acquisition of a market leader is likely to be the only feasible route to market.
This new report will provide you with...
- Exclusive in-depth industry executive surveys, outlining key opinions on the current and future trends affecting European food and drinks retailing. Understand how executives from manufacturers including Cargill, General Mills, Unilever, Kraft and Valio see retailer strategy and manufacturer response developing in the next five years.
- Analysis of new product development in private labels and leading brands using the latest Productscan data allowing specific identification and contemporary examples of the most innovative retailers (Tesco and Carrefour) and brand manufacturers (Nestle and Kronenbourg) in the European food and drinks market place.
- The latest in-house quantitative market data underpinning the key changes in European food and drinks retailing with specific focus on overall market value and share, private label share and changes in grocery shelf space.
- Country specific analysis on the development in convenience and discount food and drinks retailing over the next five years, highlighting growth opportunities in each European country.
Benefit from the expert insight and analysis enabling you to...
- Understand how format diversification is creating product opportunities by using our proprietary industry opinion survey and most recent in-house market data.
- Increase your market share by identifying major growth opportunities from our analysis of discounter pressure and private label development by country.
- Identify the most innovative food and drink manufacturers and discover how they are developing their strategies to combat the threat of discounting.
- Use our actionable recommendations to counter the threat from private label and safeguard your competitive position in the next five years.
Your questions answered...
- How will the diversification and growth of private label impact brand manufacturers?
- What countries will experience the biggest increase in market share of discounters and convenience stores?
- What is driving the increase in discount and premium private labels and what can manufacturers do in response to the growing threat of discounting and private label?
- What types of private label will drive the market forward over the next 5 years?
- Which European food and drink retailers are leading private label innovation and how can you adopt similar strategies for success? SHOW LESS READ MORE >
Chapter 1 Market development
European food retail market value
Consolidation of retailer market share in Europe
Price pressures and regulatory action
Leading foreign players
Leading food retailers
Maturity of the European food retail market
Chapter 2 Future store formats
Food retail market segmentation
Diversification into convenience stores
Regulation and store opening hours
The growth of discounters
Expansion of product offering
Branded products in store
The impact on private label
Changes in space allocation
Growth of fresh produce in discounters
Increase in non-food in supermarkets
Expansion of online offering
Online users in Europe
Online offering by retailer
Effect on in stores sales
Case study: The Metro Group's future store
The personal shopping assistant
Electronic pricing labels
Supply chain rationalization
Chapter 3 Growth of private label
Private label development
Promotion and pricing activities
Chapter 4 Future private label brands
Discount private label
Private label and ethical retailing
Salt and fat reduction in private label products
Locally sourced products
Key innovators in local products
The future of mainstream brands
Chapter 5 Conclusions
The future of the European grocery retail market
Leading innovative retailers
Key formats in Europe
Convenience growth strategies for manufacturers
Develop products for convenience stores
Supply discount stores
The private label threat
Be innovative in product formulation
Develop innovative packaging
Broaden brand portfolio to target more consumers
Upgrade to super-premium
Create value brands to compete with discount private labels
Joint ventures for co-branding
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
Figure 1.2: Market shares of the top 5 and top 10 retailers in Europe, (%), 2004
Figure 1.3: Forecast growth, (%), 2005-2010 vs. market share of the top 5 retailer, (%) 2004, by country
Figure 1.4: Regulatory analysis by country
Figure 1.5: Maturity and sophistication of the European food retail market by country
Figure 2.6: Food retail market segmentation: % share, by value, 2004
Figure 2.7: The fastest growing formats in terms of market share across Europe over the next 5 years
Figure 2.8: Discounter presence vs. market consolidation
Figure 2.9: The level of impact on sales of private label products with branded products in hard discounters
Figure 2.10: Internet user growth, %, 2000-2005
Figure 2.11: How will the relationship between online and in store retailing change for multiple grocers across Europe in the next 5 years?
Figure 2.12: Technology in the Future Store
Figure 2.13: The smart chip
Figure 2.14: Potential benefits of RFID, from supply chain to after sales
Figure 3.15: Private label sectors that will have the biggest impact on brands across Europe in the next 5 years
Figure 3.16: Private label shares by country, (% value), 2004
Figure 3.17: The level of importance for various promotion/pricing activities in food and drink retailing over the next 5 years
Figure 4.18: Leading European retailer value private labels
Figure 4.19: Factors driving premiumization
Figure 4.20: Leading European retailers premium private labels
Figure 4.21: Warburtons Cranberry Fruit Loaf
Figure 4.22: How important are ethical/ responsible practices to the future success of food and drink retailing?
Figure 4.23: Tesco nutritional labeling
Figure 4.24: Delhaize nutritional labeling
Figure 4.25: Marks & Spencer gourmet additive free crisps
Figure 4.26: Filière Qualité Carrefour
Figure 4.27: Reflets de France
Figure 4.28: EU organic logo
Figure 4.29: Organic private label ranges
Figure 4.30: Fair Trade logo
Figure 4.31: Nestlé Fair Trade coffee
Figure 4.32: Mainstream brands are being squeezed by premium and discount labels
Figure 4.33: Nativa White Tea
Figure 4.34: % of innovative product launches in each category, 2000-2005
Figure 4.35: Wellness Coca-Cola Functional Drink
Figure 4.36: Gira & Gratta Cheese + Rotary Grinder
Figure 4.37: Tyrrells, Kettle Chips and Walker's Sensations innovative premium snacks
Figure 5.38: Leading examples of products for convenience stores
Figure 5.39: Types of private label products that will experience an increase in sales over the next 5 years
Figure 5.40: Brand manufacturers' labeling initiatives
Figure 5.41: Ty Nant Still Water
Figure 5.42: Varieties of beer under the Kronenbourg brand
Figure 5.43: Nestlé have a wide portfolio of brands
Figure 5.44: Müller have created joint ventures for added credibility
List of Tables
Table 1.1: Food retail market value by country, $bn, 2005-2010
Table 1.2: Leading foreign players by country, 2004
Table 1.3: Leading grocery retailers, 2005
Table 2.4: Value of convenience store food and drink sales by country, 2005-2010 (US$m)
Table 2.5: European store opening hours
Table 2.6: Discounter presence by country, (%), 2004
Table 2.7: Leading multi-format retailers with discount operations
Table 2.8: UK grocery space data, average (%), 2005
Table 2.9: UK grocery space data, average (%), 2005 (Cont)
Table 2.10: Online offering by retailer
Table 4.11: The value (US$bn) of specialty food and drinks markets, by country, 2005-2010
Table 4.12: Wealth groups in Europe (m) 2000-2005
Table 4.13: Value of the global (Europe and US) organic food and drink markets by key product markets, $bn, 2005-2010
Table 5.14: The leading innovative retailers in food and drinks retailing over the next 5 years
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
Key findings from the report...
- Industry executives believe Tesco will be the leading innovative retailer in Europe over the next 5 years with Carrefour and Aldi rated in second and third place. Aldi's rating indicates the changing shape of the European food and drinks retail market as discounters change their proposition to compete more directly with supermarkets.
- In UK supermarkets, the average shelf space of groceries has decreased since 2002. Tesco's share decreased by 1% to 24%, Asda's decreased by 2.1% to 19.6%, Sainsbury's 1.2% to 31.2% and Morrison by 2.4% to 30.4%. But shelf space in non-food has increased in all but Tesco as retailers diversify their product offering to increase profits in a competitive market place.
- 43.5% of industry executives rated Western Europe the region that will experience the most growth in the convenience sector in terms of market share. The sector is expected to grow the fastest in the Netherlands and Italy with growth rates of 4.9% and 5.0% respectively.
- There are 4 key trends in ethical retailing in Europe driving diversification in premium private labels; nutritional labeling, reduced salt and fat, Fair Trade and locally sourced/organic labels. Nutritional labelling will be the most important trend.
- General Mills
- The Metro Group
- Marks & Spencer
- Nativa White Tea
- Gira & Gratta
- Kettle Chips