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Longevity in daily spending: how consumption is changing
Fermented products, microbiota, sugar and alcohol-free options, healthy fats, and high-protein foods: a YouGov research highlights how new health trends are shaping consumer choices. Retailers are called upon to evolve their product ranges, store layouts, and services. Health is no longer merely a matter of prevention or treatment; it is becoming a key driver of daily purchasing decisions, shaped by the concept of positive nutrition. Wellness is reshaping product assortments, store layouts, and strategies within modern retail. This picture emerged from the webinar “Longevity Enters the Shopping Cart – moderated by Cristina Lazzati, Editor-in-Chief of Mark Up, Gdoweek, and Fresh Point Magazine (prominent Italian business-to-business (B2B) trade publications focused on retail, marketing, consumer goods, and agribusiness) – which presented research by YouGov on the data and trends currently redefining the market. Health is now viewed as the third-ranked main concern for Italian consumers and has become the fifth key driver in regards to influencing consumer goods purchases following quality, promotions, budget considerations and local products. At the same time, attention to nutritional information on labels is growing. According to Andrea Corazzon, AST & Retailer Cluster Lead at YouGov, 46% of Italians pay close attention to healthy eating, and 34% engage in regular physical activity. Notably, 51% state that they often or always consider long-term health when making daily purchasing decisions—a mindset that spans all generations. Kefir, Greek yogurt, and nut-based spreads are reshaping the shopping cart. The increased focus on well-being is also reflected in purchasing behaviour. A comparison between March 2026 and March 2025 shows growth in the household penetration of vitamin supplements (+5.8%), non-alcoholic beer (+15.9%), soy-based cheeses (+17.9%), and fresh juices (+7.8%), as well as more traditional categories such as extra virgin olive oil (+3.3%) and canned tuna in water instead of oil (+2.1%). Kefir stands out as one of the most notable trends, having increased its market penetration by nearly 19 points since 2022. Greek yogurt has grown by over 15 points, while oats, avocados, and chia seeds are also gaining ground. Breakfast habits are shifting, too: kefir (+9.3 penetration points), 100% nut butters (+5.1), berries (+5.2), and lactose-free yogurt are on the rise, whereas snack cakes, traditional fruit juices, sugary jams, and conventional drinkable yogurts are losing ground. In Italy the expansion of ‘free-from’ products also continues: sugar-free, lactose-free, plant-based and gluten-free items are seeing steady growth in household penetration. This trend extends well beyond actual food intolerances, with private-label products growing faster than major manufacturer brands – achieving penetration gains of up to 10 percentage points in certain categories. Between 2022 and 2025, household penetration for high protein products rose from 41.9% to 56.2%. Alongside the high-protein segment, the role of fibre, probiotics and fermented foods is expanding, while the microbiota – specifically the gut-brain axis – is emerging as a key area for innovation. Other rising trends include functional waters, creatine supplements (which are increasingly moving beyond the sports world), collagen-based products focused on beauty and wellness and also magnesium-enriched products, which cater to increasing demands for products focused on energy, recovery and mental health support. Retail shelves are increasingly organized by needs rather than categories. 60% of consumers state that in-store support for healthy choices is a key factor when selecting a retailer, while price remains the primary barrier. For retailers, the challenge lies in doing more than simply expanding their healthy product offerings. The response must go beyond merely broadening the assortment. As Corazzon pointed out “retailers need to think in terms of needs rather than categories”. For example, by organizing dedicated lactose-free zones that bring together products from various departments. The goal is to create shopping journeys that address needs such as gut health, energy, immunity or mental well-being, using communication that is simple yet grounded in solid scientific evidence. Industry and retail rethink their selections. The growing demand for wellness-oriented products requires an evolution across the entire value chain from research and innovation to the way products are organized at the point of sale. For Nestlé Health Science, the goal in the supplements sector is to maintain a presence throughout the entire customer journey, not just in pharmacies, by leveraging patents, clinical studies and the expertise of healthcare professionals, who are key partners in conveying knowledge and credibility. This strategy aligns with the company’s Good Food, Good Life purpose. “Longevity is an area where we will continue to invest heavily. The trends we are tracking include cellular renewal and cognitive health. However, the challenge lies not merely in launching a new product, but in supporting that innovation with education, communication, and awareness-building.“ For Alessandra Corsi, Chief Category Officer at Conad, this shift will primarily impact the retail outlet itself. “The future of the store shelf must be organized around people and their needs rather than just products” she explained, emphasizing that retailers capable of creating simple, cross-category shopping journeys stand to gain a significant competitive advantage. This approach will be reflected in the new store Conad is set to open in Florence between mid- and late July, which will feature an assortment vastly different from current offerings. Corsi also highlighted the performance of the “Piacersi” private-label brand, which focuses on holistic well-being; it now spans over 40 categories and recorded 40% growth during its relaunch year. The product range will continue to expand through a collaboration with a nutritionist specializing in the development of new items focused on longevity. In the end, it is increasingly clear that developing emerging categories requires collaboration between manufacturers and technology partners. The greatest risk isn’t experimentation but rather entering a rapidly growing category too late. That is why it is essential to invest in expertise, start testing and learn from the market To get in touch with our Italy team Contact Us
Carrefour Belgium brings grocery shopping to ChatGPT
Artificial intelligence is increasingly becoming part of the shopping journey — from discovering products and comparing options to creating a shopping basket and completing a purchase. Carrefour’s recent launch in Belgium is a good example. Developed together with Mealz.ai, its AI-powered shopping assistant allows customers to ask for recipes, check product availability and create a shopping basket directly through ChatGPT. The assistant can take personal preferences and dietary requirements into account. For example, a family can ask for a weekly menu adapted to vegetarian and gluten-free needs, with a complete shopping basket and prices. Customers can adjust the list before being redirected to the Carrefour website to finalise their order. Orders can be collected through Carrefour Drive or delivered within 24 hours. The link with the Carrefour Bonus Card also means customers can continue to benefit from their usual promotions and advantages. Carrefour is also exploring AI in the physical store. The retailer is preparing to test Instacart’s Caper Cart in two stores in Waterloo: a Carrefour hypermarket and a franchised Carrefour Market. The AI-powered carts can recognise products as they are placed in the basket, while fresh products can be weighed directly in the cart. A screen keeps track of the running total, and customers can pay at a dedicated self-checkout. Beyond convenience, connected carts could become a new channel for personalised promotions, product recommendations and targeted offers — creating opportunities for retailers to increase both engagement and sales. With these initiatives, Carrefour Belgium is showing how AI is moving beyond answering questions and becoming an increasingly integrated part of the shopping experience. To get in touch with our Belgium team Contact Us
Healthy eating matters – but consumers remain price sensitive
According to the “Health on the Plate” study commissioned by German food manufacturer Heristo and conducted by Kantar, health continues to influence food purchasing decisions across Germany. The study surveyed 2,000 consumers aged 16 to 69 in May 2026 and explored attitudes towards nutrition, protein, longevity and willingness to pay for health-related benefits. Healthy eating is a growing priority Nearly three-quarters of respondents (74%) believe their diet has a significant impact on their health, while 75% say they pay more attention to their nutrition than they did a few years ago. However, healthy eating remains a challenge for many consumers. Only 45% find it easy to maintain a healthy diet in their daily lives, highlighting the importance of convenient and accessible food solutions. Protein remains highly relevant Protein continues to be an important topic, with 49% of consumers considering a protein-rich diet important. Rather than relying on supplements, most consumers prefer to obtain protein through everyday foods. Eggs, meat and dairy products are cited as the primary protein sources, followed by fish, nuts, seeds and legumes. Longevity extends beyond older consumers The study also points to growing interest in healthy ageing. Overall, 86% of respondents consider it important to stay healthy for as long as possible, and 55% say they would purchase products that support this goal. Interestingly, interest is even higher among consumers aged 16 to 29, where purchase intent rises to 60%. High expectations, limited willingness to pay While consumers place significant importance on health, most are only willing to pay a modest premium for additional health benefits. The majority would accept a price increase of up to 5%, while higher premiums are significantly less appealing. Natural ingredients are seen as the strongest justification for paying more. When it comes to trusted sources of information, doctors and pharmacists rank highest, while social media and influencers rank lowest. Implications for international food brands The findings suggest that German consumers continue to seek products that support health and wellbeing, but expect these benefits to be delivered through products that fit naturally into everyday life. For international food manufacturers, opportunities may lie in products that combine nutritional benefits with convenience, trusted ingredients and clear consumer relevance. At the same time, the study highlights the importance of value: consumers are interested in health-focused products, but they expect benefits that justify the price. To get in touch with our Germany team Contact Us
Expenditure on sustainable food is increasing in The Netherlands, while it’s share remains constant
Last year, Dutch consumers spent nearly 15.6 billion euros on food with a sustainability label. This represents a 6% increase compared to the previous year. The growth was attributed to both higher prices and an increase in the volume sold and especially organic products experienced a significant rise. Nevertheless, the share of sustainable food in total food expenditure remained unchanged at 22%. This information is provided by the Sustainable Food Monitor 2025 conducted by Wageningen University & Research. The monitor analyses spending in supermarkets, food service, and specialty stores for sustainable food. Sustainable food encompasses products with an independently verified sustainability label. Organic products show the most rapid growth. Spending on organic products increased by 13% to nearly 2.5 billion euros. In supermarkets, the growth was as much as 16%. Products with a Fairtrade and/or Rainforest Alliance label also showed a relatively strong increase, of 8% and 7% respectively. With nearly 5.7 billion euros, Beter Leven remained the label on which consumers spent the most. This was followed by Rainforest Alliance with almost 3.7 billion euros and Organic with almost 2.5 billion euros. It is important to note that products can carry multiple quality marks. Growth varies across sales channels. Supermarkets accounted for the largest share of spending on sustainable food: more than 13.3 billion euros. This represented a 6% increase compared to 2024. The share of sustainable food in total supermarket sales remained stable at 28%. In specialty stores for sustainable food, spending increased by 8% to 495 million euros. The volume sold there increased by approximately 4%. The foodservice sector showed a more modest development with a growth of 1%. As prices there rose by an average of 4%, the number of fish and seafood continued to lead the way. In nearly all product categories, spending on sustainable food increased by 5% to 11%, while the share remained relatively stable. The product categories with the highest share of turnover in product categories with quality labels are Eggs (63%), Fish (62%), and Coffee and tea (50%). The product category with the lowest share of certified products is Beverages (7%). To get in touch with our Netherlands team Contact Us
Made in Poland: A Manufacturing Opportunity for Western Brands
Beyond lower costs: why Poland’s manufacturing ecosystem, packaging capabilities and strategic location are creating new opportunities for Western food and beverage brands. Poland Is More Than a Low-Cost Manufacturing Destination For years, Poland was viewed primarily as a place where companies could manufacture products at a lower cost than in Western Europe. Competitive labour costs were certainly part of the equation. But today, that picture is incomplete. Poland has evolved into a mature manufacturing ecosystem, combining an experienced workforce with modern infrastructure, advanced technology, sophisticated packaging capabilities and strong logistics. For food and beverage brands, that means access to much more than lower production costs: it means the capabilities needed to manufacture, scale and distribute efficiently across Europe. The shift is already visible in the level of international investment flowing into the country. Global companies are not simply considering Poland; they are building and expanding their manufacturing operations there. The question for a growing brand is therefore no longer simply where production is cheapest. It is where cost efficiency, quality, flexibility and scale come together. A Manufacturing Base Built at Scale Poland’s manufacturing strength is built on scale. More than 3.2 million people were employed in manufacturing in Q1 2026, representing 18.5% of total employment — well above the 15.6% EU average. But the size of the workforce is only part of the story. Poland has developed a deep pool of technical, engineering and operational talent, supporting increasingly sophisticated production environments. At the same time, manufacturers are investing in automation, robotics and Industry 4.0 technologies, shifting the competitive advantage from labour cost toward expertise, productivity and efficiency. That distinction matters. Poland is no longer simply a source of lower-cost labour. It is a mature manufacturing base with the workforce, infrastructure and industrial depth to support production at scale. Western Companies Are Already Betting on Poland The strongest evidence of Poland’s manufacturing appeal is not what the country offers on paper, but where international companies are putting their capital. In 2025, the Polish Investment and Trade Agency (PAIH) supported 64 investment projects worth more than €4 billion. Of these, 42 were production projects, representing more than €3.6 billion in planned investment and expected to create over 6,600 new jobs. US investors participated in 15 of the projects, while Germany and the UK remain important sources of foreign investment in Poland. These figures reflect something bigger than a search for lower costs. International companies are continuing to build production capacity in Poland and deepen their role in European supply chains. Poland’s Packaging Advantage The country ranks fifth in the European Union by packaging production and second by packaging exports, reflecting the scale and international competitiveness of the sector. Just as important is the breadth of the ecosystem. Polish manufacturers work across plastic, paper, glass, metal and flexible packaging, supported by a domestic plastics industry producing materials such as PE, PP, PET, PVC and PS. For food and beverage companies, this is particularly relevant. A significant share of Poland’s packaging infrastructure is already built around the needs of food and beverage categories, making it easier to source packaging solutions close to production. The advantage is not simply access to packaging suppliers. It is access to an established network of partners capable of supporting different formats, materials and production requirements within the same market. An Ecosystem, Not Just a Factory Manufacturing is rarely just about finding a factory. Production needs to connect with packaging, quality control, logistics, warehousing, technology and, ultimately, distribution. The more fragmented that network becomes, the more complexity and cost a brand has to manage. Poland’s established industrial base brings together manufacturers, co-manufacturers, packaging suppliers, logistics providers and warehousing, supported by engineers, automation specialists and R&D capabilities. That ecosystem can give growing brands a more practical route into European production: access specialized partners, launch with less infrastructure of their own, and scale capacity as demand develops. The opportunity, in other words, is not just to find a factory. It is to build a connected supply chain around it. Location: POLAND a Gateway to the European Market Production location is also a distribution decision. Poland’s central location provides efficient access to major European markets through road, rail and maritime infrastructure. Key corridors such as the A1 and A2, together with ports including Gdańsk and Szczecin, connect Polish manufacturers with markets across Europe and beyond. For brands, this can translate into shorter supply routes, greater flexibility and a more efficient end-to-end supply chain. Competitive Industrial Real Estate Poland also offers a large and modern industrial real estate market, with more than 38 million sq m of warehouse space as of Q2 2026. A significant share of this stock is relatively new, giving manufacturers access to modern facilities without necessarily taking on the cost and lead time of building from scratch. For growing companies, that can mean lower upfront investment and greater flexibility as production and distribution requirements evolve. Investment Incentives Add to the Advantage The economics can become even more attractive when investment incentives are taken into account. Through the Polish Investment Zone, qualifying companies can benefit from CIT (corporate tax) exemptions, while EU programmes and R&D tax relief can support manufacturing, innovation and expansion. In 2025, the Polish Investment Zone supported projects representing PLN 22 billion in planned investment — a sign that companies continue to see Poland as an attractive base for expansion. For qualifying projects, these measures can complement Poland’s competitive cost base and improve the overall economics of establishing or expanding production. Why This Matters for Western Food & Beverage Brands For a Western food and beverage brand, the practical question is how to enter or expand in Europe without taking on unnecessary complexity and fixed costs. Poland can offer several routes: working with established manufacturers and co-packers instead of investing immediately in owned facilities; sourcing packaging within a mature local ecosystem; and using the country’s logistics and industrial infrastructure to serve European markets. The right manufacturing decision is therefore about more than unit cost. It is about the combined economics of production, packaging, logistics, capital and speed to market — and about finding partners who can support the business as it grows. From Cost Saving to Strategic Manufacturing The case for Poland is no longer simply about producing more cheaply. It is about producing smarter. Competitive costs still matter, but they are only one part of the equation. Manufacturing expertise, technology, packaging capabilities, infrastructure, logistics and access to European markets can work together to create a more efficient and scalable supply chain. Cost + Capability + Infrastructure + Access = The Poland Advantage. Rethinking Where Brands Manufacture For Western food and beverage brands, Poland offers an opportunity to rethink how and where products are made in Europe. The question is no longer simply, “Can Poland make it cheaper?” It is, “Can Poland help us build a more efficient, resilient and scalable business?” For companies exploring manufacturing, co-manufacturing or packaging opportunities in Europe, the right local partners can be just as important as the location itself. At Green Seed, we help brands identify the right opportunities, connect with the right partners and develop the commercial strategy needed to enter and scale in new markets. The future of manufacturing is not simply about finding the lowest-cost location. It is about building the smartest supply chain — and Poland is increasingly becoming part of that equation. Poland is no longer about “cheap manufacturing.” It is about getting more value from your manufacturing investment. To get in touch with our Poland team Contact Us
The Rise of Functional Beverages: Why Western Consumers Are Swapping Alcohol for Wellness and How to Navigate the Shift
Over the last five years, major Western markets have seen a consistent decline in the consumption of alcoholic beverages. Beer sales have dropped by 3%, wine by approximately 4.5%, and spirits by 3% to 5%, year-on-year, depending on the source. In contrast to this downward trend, functional drinks are booming and increasingly replacing both traditional soft drinks and alcoholic beverages. What is driving this fundamental shift in consumer behaviour? The primary factors behind the growth of functional beverages and the decline of traditional alcohol consumption are in our view: Prioritizing Health and Wellness: Consumers—particularly younger generations—are focusing more than ever on physical fitness, mental clarity, and overall well-being. This shift has reduced alcohol intake (frequently linked to hangovers, sleep disruption, and long-term health risks) in favor of drinks that offer active, positive benefits. Targeted Functional Benefits: Today’s functional beverages deliver tangible outcomes. Ingredients like electrolytes, adaptogens, nootropics, vitamins, and prebiotics/probiotics offer consumers enhanced energy, stress relief, digestive support, and superior hydration. The “Sober Curious” Movement: Mindful drinking and social trends such as “Dry January” have normalized lower alcohol consumption. Consumers now actively seek options that allow them to socialize without needing to consume alcohol. Innovation in No/Low-Alcohol Alternatives: The beverage industry has heavily invested in sophisticated non-alcoholic spirits, craft alcohol-free beers, and functional mocktails. These innovations match the complex flavour profiles and premium experience of traditional alcoholic drinks. Generational Shift (Gen Z and Millennials): Younger demographics consume significantly less alcohol than previous generations did at their age. They favor functional alternatives that align with active lifestyles, personal wellness goals, and social media transparency. Financial Value and Perception: Rising living costs have made consumers more selective with discretionary spending. Functional beverages are often viewed as a worthwhile investment in personal health, whereas alcohol is increasingly seen as an unnecessary expense with adverse health side effects. What This Means for Brand Owners, Retailers, and Distributors To build competitive leverage and successfully navigate this evolving environment, industry stakeholders should focus on the following strategies: Emphasize the Social Occasion: Align messaging with the idea of being an active participant in social moments, ensuring consumers never feel left out when opting for non-alcoholic choices. Capitalize on Ingredient Trends: Leverage consumer curiosity regarding trending functional ingredients, while ensuring product flavour profiles remain competitive. Build Credibility: Articulate the tangible benefits of your product while educating consumers to build trust and authority around your brand’s messaging. Enhance your presence in multiple channels: Mobilise penetration in emerging shopping points linked to new moments of consumption. Educate Stakeholders: Train internal teams, sales personnel, and distributors on product features and brand storytelling to ensure consistent execution across channels. Antonio Obieta Managing Director, Green Seed Spain
Emotional shopping is driving Italy’s e-commerce boom, with the market expected to reach $148 billion by 2030
For brands, the new competitive advantage is no longer price alone, but the ability to build trust, empathy and lasting emotional connections with consumers. Increasingly, purchases are driven by emotion rather than necessity. Italy’s e-commerce market is accelerating rapidly and is set to become one of the country’s most important drivers of consumer spending. Forecasts suggest the market will reach a value of $148.5 billion by 2030, supported by an average annual growth rate of 18.9%. These figures reflect a structural shift. Online shopping is no longer simply an alternative to physical stores; it has become a central part of how Italians shop. Italy’s growth mirrors an equally dynamic global trend. Worldwide, e-commerce is expected to exceed $5 trillion by the end of the decade, supported by around four billion digital consumers. Yet the real transformation is no longer being driven solely by technology or faster delivery. Consumer behaviour itself is changing. From rational purchasing to emotional commerce Until recently, competition between online platforms centred on price, promotions and logistics. Today, however, success increasingly depends on the customer experience. Consumers are choosing brands that create genuine connections, demonstrate authenticity and foster a sense of belonging. This shift has given rise to emotional commerce—a model in which purchasing decisions are influenced as much by emotion as by practical need. Engaging video content, compelling storytelling, online communities and personalised communication are becoming powerful tools for shaping consumer behaviour. As a result, companies are moving beyond a purely transactional approach to focus on building long-term customer relationships. Increasingly, success depends not only on the product itself, but on how the brand makes consumers feel throughout the purchasing journey. The new challenge for brands: earning trust These themes were central to discussions at the Spring Richmond E-Commerce Forum in Rimini, where retail leaders and digital professionals examined the future of the sector. Speakers agreed that storytelling has become an essential component of the relationship between brands and consumers. Industry experts argued that the future of e-commerce will be defined by a brand’s ability to create empathy and build trust. “It’s no longer enough to offer a good product or an efficient service,” said Claudio Honegger, Co-founder and CEO of Richmond Italia. “The brands that succeed are those capable of building relationships throughout the entire customer journey.” A market reshaping consumer behaviour The continued growth of e-commerce is expected to reshape the strategies of Italian businesses over the coming years. Marketing, customer service, social media and digital content will become increasingly integrated into a single ecosystem designed to generate both emotional engagement and commercial results. The result is a consumer landscape in which the boundaries between entertainment, communication and shopping continue to blur. In this environment, the most valuable competitive asset will no longer be price alone, but a brand’s ability to earn trust, build recognition and establish meaningful emotional connections with consumers. To get in touch with our Italy team Contact Us
German consumers mix food trends instead of following diets
A recent Shopper Insights study by YouGov (April 2026)* shows a clear shift in the German market: consumers no longer follow strict diet concepts, but instead selectively combine different nutrition trends. High awareness of key nutrition trends Nutrition remains a highly relevant topic for German consumers: – 47% actively and continuously follow nutrition topics, particularly among younger consumers (18–24) – Awareness is very high: only 5% are not familiar with any of the trends surveyed The most recognised and widely tried trends are: – Reduced / no sugar – High protein – Alcohol-free alternatives (each reaching awareness levels of up to 80%) Flexible consumption drives purchasing behaviour Consumers are increasingly pragmatic in their choices: – 48% adopt selected elements of nutrition trends that fit their lifestyle This is directly reflected in shopping behaviour: – 78% of milk buyers purchase both dairy milk and plant-based alternatives This highlights a key characteristic of the German FMCG market: different product concepts coexist within the same basket. Strong growth in key food categories The study identifies several categories with above-average sales growth: – High protein: +30% – Fermented / gut health: +27.1% – Alcohol-free alternatives: +11.7% Kefir is highlighted as an example of renewed demand driven by social media formats such as “Glow Drinks” and “Good Health” content. Shift in long-term consumer priorities The study also points to a structural change in consumer focus: – The former low-fat trend has been replaced by sugar reduction – 37% of German households actively monitor sugar intake The German food market is increasingly defined by flexibility rather than strict positioning. Consumers combine trends based on individual needs, making it essential for brands to address multiple purchase drivers within one product or range. * The study is based on an ad-hoc survey of 1,007 shoppers in Germany, combined with the YouGov CP+ 3.0 FMCG panel. To get in touch with our Germany team Contact Us
The tension between good intentions and affordability in the French market
The ambition to eat better and consume more responsibly is clear among French consumers, yet the contents of their shopping baskets tell a different story. Data presented at Worldpanel by Numerator’s annual Consumer Day reveals a market caught in a complex paradox that innovative food companies can no longer afford to ignore. Although French shoppers express a strong desire to make more positive choices, they remain constrained by economic pressure and a renewed demand for everyday convenience. For brands, this gap between intention and action is defining the new rules of engagement in France. Price and convenience: the two main barriers to sustainable choices The shift towards more responsible consumption is not being held back by a lack of willingness, but by practical barriers. Price remains the main obstacle for 58% of consumers, a challenge compounded by limited promotional support in retail. Although “Nutri+” products represent 33% of the average shopping basket, they account for only 29% of purchases made on a budget or through promotions. Consumer habits have also evolved rapidly since the pandemic. The period when people spent more time cooking from scratch has given way to a growing demand for convenience. The share of ready-made meals consumed in France rose from 18.8% in 2019 to 20.8% in 2025. Today, a lack of practicality and a lack of time prevent 30% and 15% of shoppers respectively from making more responsible choices. Dietary restraint and health concerns are reshaping demand Despite these pressures, French consumers are adopting a more restrained approach to eating. Snacking occasions have fallen by 7.2% compared with 2016, while consumption of sugary drinks and alcohol has declined by 4% over the past decade. In addition, 49% of consumers actively try to limit food waste when shopping and preparing meals. Health remains the strongest driver of behaviour, with 60% of the population believing that food can have a negative impact on their health. As a result, 62% of French shoppers pay close attention to ingredient lists, with PFAS emerging as their leading concern this year. This focus on health is also contributing to a renewed interest in organic and certified products. Following a difficult period, the share of labelled products in household expenditure has increased by 2.5%. Transparency and ethics as new drivers of growth One of the key lessons for the agri-food sector is the mismatch between what consumers want and what is currently available on supermarket shelves. For example, “Solidarity+” products, which guarantee fair remuneration for farmers or support the inclusion of people with disabilities, account for 2.6% of engaged purchases, an increase of 10%, but represent only 2% of the total retail offer. Clear labelling can have a direct impact on sales. Products displaying the Nutri-Score now account for 52% of purchases in France. When information is clear and credible, consumers respond positively. The fair-trade brand C’est qui le patron ?! has achieved 23% market penetration, while animal-welfare claims have recorded a 41% increase in recent months. A new paradigm for brands For international and innovative brands, success in the French market depends on resolving the consumer’s central dilemma. The winning strategy is no longer simply to position a product as sustainable. Brands must deliver clear health and social benefits without compromising affordability or everyday convenience. To get in touch with our France team Contact Us
The battle for the UK’s changing ‘share of stomach’
For decades, success in the UK grocery market was measured by one metric above all others: share of basket. Today, however, a more important battleground is emerging—share of stomach. While in Q1 2026 coffee and bakery chains are growing their share (+5%), grocery’s growth doesn’t quite equal inflation at +2.7%, while in the hospitality sector high end restaurants (-9%) and pubs and bars (-6.9%) have both declined sharply. Recent market analysis suggests that UK consumers are buying less food and drink overall than they were before the pandemic – with GLP-1 drugs part of the reason. The challenge for manufacturers and retailers is therefore no longer simply winning shoppers in-store, but securing a greater share of increasingly selective eating occasions. The implications are significant. As households continue to manage stretched budgets and changing lifestyles, consumers are making more deliberate choices about what they eat, when they eat and where they spend their food budget. Every meal, snack and drink has become a competitive opportunity. A smaller pie means fiercer competition Unlike previous periods of market growth, today’s food businesses are increasingly competing for a share of a market where consumption volumes are under pressure. While grocery inflation has moderated, households remain highly value-conscious after several years of rising food prices. Consumers are buying fewer items, reducing waste and becoming more selective about discretionary purchases. This means growth is becoming harder to achieve through traditional category expansion alone. Instead, brands must persuade consumers to switch occasions, substitute products or choose them more frequently throughout the day. The boundaries between channels are disappearing The competition is no longer confined to supermarket shelves. Convenience retailers, food-to-go operators, quick-service restaurants, coffee chains, meal delivery platforms and supermarkets are all competing for the same eating occasions. Breakfast purchased at a café, a supermarket meal deal, an afternoon protein snack or an evening takeaway all compete for the same consumer budget. Hybrid working has accelerated this trend by changing when and where people eat. Rather than following predictable shopping and meal routines, consumers increasingly make spontaneous purchasing decisions throughout the day. Winning occasions rather than categories For food manufacturers, this represents a strategic shift. Innovation can no longer focus solely on launching new products within existing categories. Instead, brands need to understand the role their products play across multiple consumption occasions. Products that successfully combine convenience, value, health and indulgence are particularly well placed to capture a greater share of everyday eating. At the same time, packaging formats, portion sizes and channel-specific innovation are becoming just as important as the product itself. A new measure of success As overall food consumption becomes more restrained, market share alone provides only part of the picture. The brands that outperform over the coming years will be those that increase their relevance across more eating occasions rather than simply winning more shelf space. In other words, success will increasingly be measured not by a larger share of basket, but by a larger share of stomach. For manufacturers, retailers and foodservice operators alike, the challenge is the same: understand changing consumer habits, identify new consumption occasions and deliver products that remain relevant in an increasingly competitive food landscape. To get in touch with our UK team Contact Us
Is Finland considering limits on private labels?
Finland is currently discussing proposed changes to its Food Market Act that could limit how retailers prioritise and expand their own private label brands. Private labels have become an essential part of modern retail. They provide consumers with affordable alternatives, strengthen price competition, and play an especially important role during periods of inflation and economic uncertainty. The debate is ultimately about finding the right balance. Like many European markets, Finland’s grocery sector is highly concentrated, with a relatively small number of retail groups controlling a significant share of consumer access. Similar market structures exist across much of Europe. What makes Finland particularly interesting is that it may become one of the first countries to openly examine how the long-term balance between retailer power, supplier innovation, private labels and consumer choice should evolve. Today, retailers are no longer simply distributors; they are also brand owners competing directly with branded manufacturers. As a result, they have considerable influence over product visibility, assortment and category development. Traditionally, supermarket shelves served as a platform for competing suppliers. While that platform was never entirely neutral—large brands have always enjoyed advantages in securing shelf space—the competitive landscape has evolved significantly. Part of the Finnish debate focuses on how retailers use category insights, consumer behaviour data and supplier know-how when developing competing private label products. Unlike many technology sectors, food innovation is often difficult to protect. This leaves branded suppliers particularly exposed when retailers simultaneously control shelf access, possess detailed category data and launch competing private label alternatives. Historically, trade barriers were created by governments through tariffs, protectionist measures or preferential treatment of domestic industries. Modern retail markets operate very differently, yet some of the underlying structural dynamics are beginning to resemble one another. While this is clearly not equivalent to government-imposed trade barriers, some suppliers increasingly report similar challenges around market access, visibility, dependency and competitive balance. None of this suggests that private labels are inherently problematic. On the contrary, strong private label portfolios have become a permanent and legitimate feature of modern retail strategy. However, Finland’s debate raises an important question for the industry’s future: How can retailers continue to develop successful private label brands while ensuring that supplier innovation, independent brands, category diversity and healthy market competition continue to thrive? Finland may not be alone in facing these questions. But it could become one of the first countries to define where that balance should lie. Jakob True Managing Director, Green Seed Nordic
Meat containing 40% plants: no clear labelling in Dutch supermarkets
How Hybrid Meat Products Are Reshaping Dutch Supermarkets A growing proportion of meat products in Dutch supermarkets contain significant amounts of plant-based ingredients — up to 40% — without this being clearly indicated on the packaging. Research by Wageningen’s Foodvalley shows that products such as minced meat, burgers and sausages are often enriched with plant components like chickpeas, broad beans, sugar beets, seaweed, potatoes and jackfruit. On average, enriched meat contains around 10.5% plant-based ingredients, though this percentage can sometimes be as high as 40%. These additives are usually only listed in the ingredients list on the back of the packaging and are considered ‘soft communication’. Dutch supermarkets like Jumbo, Albert Heijn and Lidl sell these products partly to compensate for higher meat prices and reduce costs. By adding more vegetables and pulses, meat products can be sold at a lower price: on average, a kilogram of enriched meat costs 4.4% less. Foodvalley expects the number of enriched meat products to increase rapidly, partly due to the environmentally friendly and healthy properties of plant-based ingredients. While this development is viewed positively, there is a call for clearer labelling so consumers can make more informed choices. To get in touch with our Netherlands team Contact Us
Plant-based slows, but retail holds clear growth potential
Why Retail Remains a Key Opportunity for Plant-Based Brands Despite Slowing Category Growth After several years of strong growth, the development of plant-based drinks has begun to level off in Sweden. Sales are stabilising and, in some cases, slightly declining. However, consumer interest has not disappeared. It has simply changed. What was once driven by trends and curiosity is now becoming more routine. Many consumers remain positive toward plant-based products, and a significant share of those who previously left the category are open to returning. This indicates that the long-term potential remains, but future growth will require a different approach. The main barriers are not lack of interest, but uncertainty around taste, price, and product relevance. Plant-based options are still often linked to specific lifestyles rather than everyday use. At the same time, many consumers remain curious but have not yet made the category part of their regular shopping habits—this gap represents the next growth opportunity. For retailers, this means shifting focus from assortment size to everyday relevance. Growth will depend on making plant-based products feel natural in daily routines such as in morning coffee, breakfast, or everyday cooking. When products perform as reliably as traditional alternatives, the likelihood of both trial and repeat purchase increases. For retailers, this means moving beyond simply offering a wide assortment. Growth will depend on how clearly products are connected to daily routines. Simple actions such as placing barista-style drinks next to coffee solutions, presenting plant-based yogurt as part of breakfast occasions, or highlighting cooking products in recipe-based displays could lower the barrier to trial and encourage repeat purchases.Foodservice also plays an important role. Many consumers first experience plant-based options in cafés or restaurants, where they try oat drinks in coffee or plant-based alternatives in prepared dishes. These experiences often influence later purchasing decisions in retail. Ultimately, the category is not losing relevance—it is entering a new phase. The retailers and operators who succeed will be those who make plant-based products simple, practical, and clearly useful in everyday life. To get in touch with our Nordic team Contact Us
What are the key benefits for EU exporters from the new Mercosur Trade Agreement?
The EU-Mercosur trade agreement, which began provisional application on May 1, 2026, offers significant advantages for European food and drink manufacturers. The deal focuses on opening a market of over 270 million consumers where European products have historically faced high protectionist barriers. The primary benefits are categorized below: 1. Significant Tariff Reductions From The Mercosur Trade Agreement Many high-value EU food exports previously faced tariffs as high as 35%. The agreement eliminates or reduces these duties over varying transition periods: Product CategoryNew Status / TransitionWine & SpiritsImmediate for high-end sparkling; 4–12 years for others.Olive OilGradual phase-out to zero (up to 15 years)ChocolatesPhased out over 9 years (14 years for white chocolate)Cheese30,000-tonne duty-free quota (phased over 10 years)Soft DrinksMost tariffs eliminated within a few years 2. Protection of Geographical Indications (GIs) One of the most valuable “wins” for EU manufacturers is the legal protection of 344 European Geographical Indications. This ends “unfair competition” from local imitations (often called “Italian-sounding” or “Euro-sounding” products). Examples: Only cheese from France can be labelled Roquefort; only ham from Italy can be sold as Prosciutto di Parma. Impact: This allows EU manufacturers to command premium prices and secure brand exclusivity in South America. 3. Streamlined Export Procedures The deal tackles “non-tariff barriers” that often make exporting more expensive than the duties themselves: Regionalisation: If an animal disease (like Swine Fever) breaks out in one specific EU region, Mercosur will now allow imports from the rest of the “clean” country, rather than banning the entire nation. Predictability: Common standards for labelling, conformity assessments, and technical requirements across all four Mercosur countries (Argentina, Brazil, Paraguay, and Uruguay). Customs: Simplified and more transparent audit rules to reduce delays at the border. 4. Strategic Sourcing of Raw Materials While food manufacturers are exporters, they also benefit from better access to high-quality ingredients and raw materials from the Mercosur region (such as soy, fruit juices, and vegetable oils) at more competitive prices, helping to diversify supply chains. To get in touch with our Italy team Contact Us
What role should Amazon play in the UK for food and drink brands’ strategies?
Many brands use Amazon as a D2C channel to signal availability to consumers and this can be an important early step for start-up brands. But what about the costs and ease of doing business? Are they worth the hard yards to get established for food and drink brands? The Role For Amazon For UK Food and Drink Brands’ Strategies While everyone knows that Amazon is a global giant of a business, its UK grocery market share is 1.9% (Worldpanel Numerator), a little behind Ocado at 2.2%, which has been the fastest growing retailer in the UK over recent months. Where Ocado acts much like a regular bricks and mortar retailer in many ways – buyers responsible for categories, personal contacts to manage listings and promotional activity – Amazon’s interface is very much a ‘tech’ one, and when things don’t happen as they should it can be a frustrating experience to get a resolution via their formal channels. Recent price cuts by Amazon are taking the challenge to the multiples, and according to analysis by Associa, they can now claim to match or better prices on nearly two-thirds of items stocked in common with one or more of the big chains. It typically takes brands some time to find the right way of managing their Amazon business to avoid a situation where high levels of cost take too large a chunk out of sales revenue. The same applies to their promotional strategy in support of their presence on the platform. And as Amazon changes, so must suppliers to ensure they are making the most of the way Amazon does business. Amazon seems to making more efforts to become a mainstream retail option for both consumers and suppliers, with a greater focus on lower prices and single skus, but feedback from the Grocery Code Adjudicator suggests that suppliers have many more gripes with Amazon than they do with the traditional multiples, so there is clearly a way to go here. Amazon are too big to be ignored, and their track record in other categories suggests they will learn and get bigger still. The challenge for brands will be to navigate the best way to do business with the platform over the short and longer term. To get in touch with our UK team Contact Us
Packaging – A Strategic Product Decision
For many brand owners and private label manufacturers, packaging has traditionally been treated as a supporting act – important, yes, but secondary to formulation, pricing, and positioning. That mindset is now changing. From August 2026, the EU’s Packaging and Packaging Waste Regulation (PPWR) will apply directly across all member states. Unlike earlier packaging rules, it leaves little room for interpretation and sets binding requirements for all packaging placed on the EU market. For food and drink manufacturers, this is not just another regulatory update. It marks the point where packaging becomes a strategic product decision. Packaging is no longer “just the pack” PPWR introduces clear obligations around recyclability, waste reduction, labelling, and substances of concern. In doing so, it effectively elevates packaging to the same level of scrutiny as ingredients or claims. What changes in practice is when packaging decisions are made. Until now, many products have reached an advanced development stage before packaging was fully locked in. Under PPWR, that approach becomes risky. Packaging must work not only for shelf appeal and logistics, but also for proven regulatory compliance across markets. For companies with broad ranges, multiple brands, or extensive private label activity, this shift is particularly relevant. The regulation applies uniformly across Europe, making inconsistencies harder to manage and last‑minute fixes more costly. The real challenge is operational, not creative While PPWR is often discussed in terms of material or design changes, the bigger challenge lies behind the scenes. The regulation requires clarity on roles in the supply chain and reliable information on packaging composition and compliance. In many organisations, that information is spread across functions, systems, and external partners. Under PPWR, such fragmentation can become a real bottleneck. For brand manufacturers, delays in packaging validation can slow relaunches or regional roll-outs. For private label manufacturers, unclear responsibilities or missing documentation can quickly affect retailer relationships and timelines. In both cases, packaging readiness directly influences speed to market. This implies that PPWR is less about redesigning packs and more about how well packaging decisions are managed internally. What this means for brands and private label manufacturers For brands, packaging increasingly carries reputational weight. Sustainability commitments, consumer expectations, and regulatory requirements are converging. Packaging choices now signal whether a brand is credible and future‑oriented – or simply reacting under pressure. For private label manufacturers, the stakes are equally high. Retailers are under growing regulatory scrutiny themselves and expect compliant, scalable solutions from their manufacturing partners. Those who can demonstrate control and consistency in packaging will be easier to work with and better positioned for long‑term cooperation. In both models, packaging is becoming part of the value proposition – not only a cost factor. From compliance burden to competitive advantage Viewed solely as a regulatory obligation, PPWR feels like additional complexity. But taken more strategically, it also creates an opportunity. With harmonised EU‑wide rules, companies that invest early in clear processes and reliable packaging data gain predictability. They can move faster, plan more confidently, and respond more smoothly to retailer and market requirements. In a sector where product cycles are shortening and expectations keep rising, that operational discipline becomes a competitive advantage. What forward-thinking companies are doing now Even though the regulation applies from August 2026, many manufacturers have or are already preparing by: – Identifying packaging formats most exposed to regulatory change – Clarifying internal and external responsibilities – Improving the way packaging data is collected and maintained – Bringing regulatory considerations earlier into product development These steps don’t require radical change – but they help reduce risk and pressure at a later stage. Stay agile – a new baseline for product development PPWR will not redefine the food and drink industry overnight. But it does reset the baseline for how products are developed and brought to market. In 2026 and beyond, packaging will no longer be the final decision before launch. It will be part of the strategic conversation from much earlier on. For brand and private label manufacturers, recognising this shift now is not just about staying compliant – it’s about staying agile, credible, and competitive in a more regulated European market. If you have any questions or want to obtain more insights, please get in touch with me: nguenther@greenseedgroup.de Nicole Guenther Managing Director, Green Seed Germany
The fight for the Belgian shopper: Delhaize is launching SuperPlus Families, a paid family subscription
Delhaize is expanding its loyalty ecosystem with SuperPlus Families, a paid omnichannel subscription tailored to the needs of modern families. Priced at €12 per year, the formula combines everyday savings with added convenience and access to family-oriented experiences. The free SuperPlus program remains unchanged at its core, offering promotions, personalized deals, loyalty points, and free click & collect. Recent updates include additional savings on plant-based private-label products and the removal of the minimum spending threshold, further enhancing accessibility. With SuperPlus Families, Delhaize builds on this foundation. Members benefit from extra discounts on healthier products (Nutri-Score A and B), volume discount on purchases of 3 or more identical Delhaize products, and reduced delivery fees. The offer also extends beyond grocery shopping, with discounts of up to 50% on outings such as theme parks Plopsaland and Walibi Belgium. A built-in savings calculator provides transparency, allowing customers to estimate potential benefits, while a refund mechanism ensures the subscription delivers tangible value. The former Delivery+ service has been reintroduced as SuperPlus Delivery, integrating additional advantages. The new formula is particularly relevant for larger households, supporting Delhaize’s ambition to strengthen its position within the family segment. By directly funding the discounts, the retailer aims to drive both loyalty and sustainable growth. CEO Alexandros Boussis underlines the broader objective: helping customers save time, make informed choices, and manage their household budgets more effectively. Increasing app usage and higher engagement with loyalty points reflect this evolving customer behaviour. Philip Horemans (GSB): “Delhaize has gained market share over the last 18 months thanks to their Sunday store openings. The competition is following, which implies that new initiatives are needed to safeguard and further grow this position. Now they launch another tool to further differentiate from the competition, especially attacking market leader Colruyt with its “family” position. It’s new, modern and innovative, but time will tell if the model is sufficiently easy to understand” To get in touch with our Belgium team Contact Us
The Connected Plate: How Social Media is Reshaping the French Food Market
A digital influence that has become essential The verdict is final: more than one in two French consumers now looks to their screen before heading to the table. A recent study by OpinionWay for SIAL Paris reveals the scale of a phenomenon that innovative food companies and consumer goods brands can no longer afford to ignore. In a French market traditionally renowned for its deep-rooted culinary heritage, digital influence is rewriting the rules. As of April 2026, 52% of French people report being influenced by social media in their food choices, marking a shift where the consumer journey from initial culinary inspiration to the final purchase is now inextricably linked to social platforms. Concrete behaviors reshaping consumption Beyond the mere like, this digital immersion is driving tangible commercial impact through concrete behaviors. Over the past twelve months, 38% of respondents prepared a recipe discovered online, while 28% experimented with entirely new foods and 23% purchased a product specifically because it had gone viral, such as the Dubai style trend. Among the 18-24 age group, these figures skyrocket, with 28% having already modified their eating habits following exposure to social content. For this generation, TikTok has effectively become the new gastronomic search engine. A market segmented by consumer profiles The study highlights a clear market segmentation where expectations vary significantly across demographics. Women appear generally more receptive to culinary accounts than men, with a 43% engagement rate compared to 31%. Age also dictates the type of content consumed, as those under 35 gravitate toward lifestyle influencers in search of identity and aspiration, whereas consumers aged 35 and over remain more attentive to official brand accounts and the advice of health experts. When virality turns into sales The boundaries between digital discovery and retail shelves are effectively dissolving. The meteoric success of products like Franui’s chocolate covered raspberries or the rapid growth of Inshape Nutrition, launched by the n°1 French YouTuber Tibo Inshape, demonstrates that digital virality creates immediate and real world demand in stores. Traditional retailers have been quick to adapt to this shift. A notable example is Leclerc’s collaboration with the influencer Totocuistot to promote its private label (Marque Repère), which generated an estimated 12 million impressions. The takeaway is undeniable: a product’s credibility is no longer solely determined by its packaging or price point, but by its ability to spark online engagement. A new paradigm for brands For international or innovative brands, the French market is no longer just a matter of securing retail listings. It has evolved into an ecosystem where social proof precedes the shelf. Success in France in 2026 requires a hybrid strategy by building a solid physical presence while simultaneously cultivating digital desirability capable of converting a user into a loyal buyer. To get in touch with us: sdelcroix@greenseedgroupe.com To get in touch with our France team Contact Us
From Fan Favorite to Grocery Shelf: Helping Restaurant Brands Win in Retail
We’ve seen restaurant brands try their luck in U.S. retail time and time again, but the jump from menu to grocery shelf is never as simple as slapping a logo on a jar. The grocery aisle plays by different rules — where design, distribution, pricing, and shelf performance matter more than awareness and popularity alone. Take many well-known restaurant brands. Even when consumers love the restaurant experience, that doesn’t automatically translate into retail success. The appeal is often tied to the in-store experience itself — the format, the occasion, the customization. That experience doesn’t translate neatly onto a shelf, where velocity, not brand recognition, determines survival. We’ve seen this restaurant brands to retail model work in the UK. A great example is Pizza Express which has nearly 400 restaurants, yet their retail brand — fresh pizza, dough balls, salad dressing — now appears in over 4,000 supermarket locations across the country and enjoys more than $150M in retail sales. Following this success Wagamama now offers meal kits and Leon sells waffle fries in supermarkets nationwide. The difference isn’t only love for the brand. It’s high quality strategic thinking and execution. The Restaurant brands that win understand one fundamental shift: retail consumers shop differently, they compare options, and decide in seconds. It’s not all about being loved, it’s about being chosen, again and again. Here are four ingredients for restaurant-to-retail success:• Offer a unique, differentiated product that captures the essence of your restaurant experience• Create a product with a clear role in the consumer’s frequent eating habits• Determine pricing and distribution that match your brand’s profile• Execute marketing flawlessly within your core audience before scaling 1. Offer a unique, highly differentiated product The brands that succeed don’t try to recreate their menu — they bottle what makes them special. If your product feels interchangeable with what’s already on the retail shelf, brand recognition alone won’t save you. Nando’s built its retail presence around peri-peri sauce — a flavor instantly recognizable and hard to replicate. It doesn’t just compete in hot sauce; it owns a distinct subcategory. In pasta sauce, New York Upscale restaurants Rao’s and Carbone win through specificity: Rao’s on consistency and taste, Carbone on bold identity. Different strategies, same successful outcome — clear differentiation. 2. Create a product with a clear role in the consumer’s life A strong product doesn’t just stand out — it makes sense. Retail consumers aren’t trying to recreate a restaurant experience; they want products that fit how they already cook, eat, and shop.Momofuku took its signature bold flavor and packaged it as chili crunch — a spicy, textured oil that integrates seamlessly into everyday cooking. Rather than replicating a dish, it created something people reach for regularly. Chick-fil-A did the same with its cult-favorite sauce, translating it into a versatile condiment that earns repeat use rather than one-time trial. 3. Pricing, premiumization, and focused distribution Scale doesn’t come from being everywhere — it comes from being in the right places, at the right price, for the right consumer. Carbone maintained a premium price point and expanded through retailers that reinforced its positioning, competing on quality rather than price. Gymkhana Michelin star Indian restaurants are following a similar model, using signature flavors, bold branding and premium pricing to signal an elevated experience. Both have avoided chasing mass distribution too early — and that discipline is a big part of why they have broken through. 4. Execute flawlessly within a core audience before scaling “An inch wide and a mile deep.” Focus on the customers who represent your best chance at scaling, and execute flawlessly before expanding. Brands that scale successfully already resonate deeply with a specific audience. They don’t try to appeal to everyone at once — they build credibility within a core group first, then grow from a position of strength. Zaro’s New York bakery is succeeding in retail because it delivers something specific: products that feel authentic, high-quality, and occasion-driven to consumers who already understand and value that New York experience. The brands that win don’t start broad. They start deep. Sanjay Panchal | Green Seed North America | sanjay.panchal@greenseedgroup.com
How AI is changing food purchase decisions in Germany
Artificial intelligence is already reshaping food purchase decisions as well as how consumers in Germany search for, select and buy products. A recent representative consumer study by EY Parthenon (2026), based on a survey of more than 1,000 consumers in Germany, shows that AI has moved from being a niche tool to becoming a relevant part of the purchase journey – including for food and drink. AI is becoming a relevant research channel for food According to the study, 70% of German consumers have already used AI tools such as ChatGPT, Microsoft Copilot or AI powered Google Search for product and price research. While categories such as electronics still lead, food and drink are no longer marginal: • More than 40% of AI users already research food & drinks using AIAI has therefore established itself as an additional research channel alongside classical search engines and online marketplaces. AI directly influences product selection AI is not only used to gather information – it already influences which products consumers consider: • 54% of respondents received product recommendations via AI that they otherwise would not have considered• Over 40% use AI for at least half of their product and price researchThis means AI increasingly shapes visibility and consideration, even before the consumer enters the store or online shop. What this means for international food brands The study highlights a structural shift: AI systems are becoming new gatekeepers in the purchase decision process. They influence which brands and products appear at all. For international food manufacturers entering or expanding in Germany, this has clear implications: • Product information must be clear, consistent and machine readable• AI visibility requires more than classic SEO• Brand and product positioning must work for both consumers and AI systems For success in the German grocery retail market, food brands need to think beyond listing and shelf placement. Digital visibility – including AI driven discovery – is becoming part of market readiness.At Green Seed Germany, we support international food brands in aligning product positioning, market storytelling and go to market strategy with the realities of the German retail and consumer landscape. To get in touch with our Germany team Contact Us
Italians are crazy about dried fruit: new food products made with walnuts and almonds are multiplying
Almond drink and peanut butter for breakfast. Single serving shelled mixes and protein bars as snacks. Walnut sauce on pasta and pine nuts in a salad for lunch. Cashews with an aperitif and finally pistachios in chocolate and desserts. There’s no denying it: dried fruit and nuts have managed to sneak into every moment of the day, with a multiplier effect on total consumption, which has increased from 627 million kg in 2020 to 756 million kg in 2024 (ISMEA data). Consumers are increasingly choosing imported products, as Italian-made dried fruit products are declining (-2.1% in five years) and represent only 42% of the market. However, the market share of walnuts has to 20% and pistachios to 12% that could lead to supply shortages and price increases, considering that Iran, affected by the war, is the world’s second-largest producer after the United States. Growth all year round in large-scale retail trade A third of dried fruit/nuts ends up on the domestic market, which in large-scale retail trade comprises around 130 products and is worth over €1.1 billion. This has grown steadily over the years (+13% in 2024 alone), bringing average annual per capita consumption to 4.5 kg, a 20% increase compared to 2020. This has also expanded the number and variety of nuts purchased. While almonds, walnuts, peanuts, pistachios and mixes account for approximately 67% of spending in large-scale retail outlets, cashews and pine nuts also enjoyed a surge in popularity in 2025, demonstrating the broad benefits of information campaigns on the nutritional value of nuts, which have transformed consumers’ perceptions of them as a key factor in daily well-being. Product innovation has also been crucial, expanding product offerings, increasing consumption opportunities, and successfully spreading sales throughout the year. Now, the three classic ‘peak season’ months, from September to November, account for only 27% of annual purchases of mixes, 29% of peanuts, and 31% of almonds and walnuts, all shelled because consumers seek greater convenience. Booming beneficial ingredient In addition to dried fruit consumed as is, its use as an ingredient, already widespread in Italian confectionery, has also expanded. This is becoming an increasingly significant business opportunity for the sector, as the processing industry accounts for 55% of available dried fruit and has increased its purchases by 5% in five years. And it’s no longer just used to make marzipan, confetti, creams, and sweets, but also innovative products such as beverages, vegan cheeses, purées, pesto and kefir which clearly Italians have embraced. To get in touch with our Italy team Contact Us
Private Label Manufacturers: Opportunities in the French Market
How French shoppers are turning store brands into a 1st choice within the French market Private labels are no longer a low-cost alternative but a structural pillar of French grocery retail. A late-2025 survey among 1,000 French consumers shows that store brands are now competing head-on with national brands across most FMCG categories. Price and value perception drive adoption Following the inflationary years of 2023 and 2024, private labels now account for 36% of FMCG sales in value and nearly 47% in volume, according to Circana. More than 80% of French shoppers regularly buy private label food products, 70% choose store brands in household care and 52% in beauty. Nearly one in four consumers say they buy only store brands, underlining their role as a default choice rather than a trade-down option. Legitimacy has strengthened significantly. One third of consumers perceive little difference between store brands and national brands, 16% prefer private labels and half declare greater loyalty to PL. While price remains important, quality perception has become equally decisive, with 72% of shoppers citing the balance between price and quality as their main reason for choosing store brands. Category contrasts remain strong In food, classic and premium private labels now enjoy high trust and purchase frequency, with perceived quality close to that of national brands. In household care, a lower-involvement category, price dominates purchasing decisions and private labels clearly outperform national brands, as their quality is considered equivalent. Switching does not require large price gaps, with differences of 5 to 20% generally sufficient. What this means for the French market Consumers are more price-sensitive than retail pricing suggests. While the average price gap between national brands and private labels is around 35%, most shoppers would switch for much smaller differences, and over 20% choose PL regardless of price. For retailers, private labels have become a strategic growth and loyalty lever. For national brands, differentiation and clear added value are now critical in a market where store brands are increasingly the default option. For manufacturers, these shifts signal a clear opportunity. If you have strong private label expertise, now is the right time to take a close look at the French market. Rising consumer trust, limited sensitivity to large price gaps and growing demand across food create favourable conditions for producers able to deliver quality, flexibility and value-added PL solutions. * Appinio for LSA trade magazine To get in touch with our France team Contact Us
From Social Media to Shelves: The Growing Demand for Probiotics in Poland
In today’s digital age, a scroll can decide your next snack. Social media isn’t just entertainment it’s rewriting the rules of what we eat and how we think about food. From Instagram reels to TikTok challenges, influencer-approved products and viral health hacks are shaping consumer choices, creating new opportunities for brands to meet the growing demand for wellness-focused foods. We like to think we have full control over what we eat. Opening the fridge or browsing supermarket shelves offers a multitude of options. But how free are our dietary decisions, really? What if, beyond our own hunger and conscious choice, subtle cues from the digital world are quietly guiding what ends up on our plates? Scroll through social media and you’ll encounter image after image of perfectly styled, irresistibly appealing dishes. These endless posts of glistening snacks and carefully plated meals do more than delight the eye they subtly shape our perceptions of what is desirable, trendy, and healthy, influencing our cravings and choices in ways we might not even notice. Probiotics and the New Wellness Era Gut health has rapidly evolved from a niche interest into a cornerstone of the $2 trillion global wellness industry. Once limited to probiotic capsules and yogurt ads, it now shapes how consumers eat, sleep, manage stress, and even approach aging. In Poland, 78% of adult consumers use dietary supplements, with nearly 48% using them regularly, reflecting a strong shift toward preventive health and wellness-focused products like probiotics, a trend that mirrors broader interest in gut health and functional nutrition. Millennials and Gen Z are driving this transformation, representing over 41% of wellness spending despite being only 36% of the adult population. These digital-first consumers experiment with fermented foods like kombucha, kimchi, and probiotic drinks, while seeking science-backed products that deliver measurable results. TikTok and Instagram play a crucial role here: hashtags like #GutTok have amassed billions of views, turning viral trends into real demand on store shelves. Science also confirms the broad impact of gut health. Beyond digestion, a well-nourished microbiome supports mood, sleep quality, immunity, metabolic function, and even healthy aging. Fibre remains a central pillar yet only 5% of adults meet daily intake recommendations and when combined with probiotics, it maximizes benefits for gut bacteria. Emerging evidence also links gut support to reduced risk of chronic conditions such as Type 2 diabetes, obesity, and high blood pressure, making probiotics a vital part of holistic wellness routines. Consumers today are not only seeking products that support gut health they are looking for solutions backed by science, with measurable results. This shift from extreme diets and fads to foundational, daily wellness habits creates a unique opportunity for brands. Products that combine probiotics with fibre-rich foods, are scientifically validated, and endorsed by credible experts can build trust and loyalty, especially among digitally savvy Millennials and Gen Z. In Poland, where nearly 78% of adults use dietary supplements, these insights translate into tangible market potential for functional foods and probiotic innovations. By positioning probiotics as a daily wellness essential, brands can meet both consumer demand and the growing trend toward preventive, holistic health. How Social Media Drives Probiotic Demand In Poland, social media isn’t just a scroll it’s a primary discovery engine for lifestyle and food trends. About 29 million Poles are active on social platforms – roughly 75.6 % of the population -and nearly 81.2 % of adults (18+) use social media regularly. This widespread usage makes platforms like TikTok, Instagram, and Facebook powerful tools for shaping consumer perceptions and behaviours. Short-form videos, Reels, and TikTok challenges have turned food content into a visual lifestyle statement. Social media is exploding with content about healthy eating, fitness meals, and aesthetic wellness routines, and many videos hit millions of views. Hashtags like #healthyfood, #zdrowejedzenie, and #GutHealthPL showcase gut-friendly recipes, probiotic snacks, and functional foods often presented as “eat your skincare”, where what’s good for your gut is also good for your glow. As the mantra goes: “If it’s healthy and aesthetic, it goes viral.” Turning Trends into Sales: Probiotic Demand in Poland The growing interest in gut health and functional nutrition is clearly reflected in Poland’s expanding wellness market. The broader nutraceuticals market which includes functional foods, probiotic yogurts, fortified drinks, and dietary supplements was valued at about USD 5.4 billion (€5.0 billion) in 2024 and is projected to reach USD 10.4 billion (€9.6 billion) by 2033, growing at a CAGR of 7.5% as consumers increasingly prioritise preventive health and daily wellness. Within this landscape, the dietary supplements segment including probiotic supplements continues to show strong demand. In 2024, the Polish dietary supplements market was estimated at USD 2.22 billion (€2.05 billion), with a projected CAGR of 10.9% from 2025 to 2030, driven by rising health awareness and wellness‑oriented consumption habits. Sales data also highlight how ingrained probiotic products have become in everyday routines. In 2023, pharmacies in Poland sold about 23 million packages of probiotic products, with total revenue reaching around 672 million PLN (€142 million), and both volumes and values have been steadily increasing over the past decade. This growth reflects deeper changes in consumer behaviour: Poles are not only using supplements more frequently, but are also incorporating functional foods with probiotics into their regular diets, from probiotic yogurts to fermented drinks like kombucha, which itself is a rapidly expanding niche in Poland (with the kombucha market projected to grow from USD 41.6 million (€38.5 million) in 2024 to USD 141.5 million (€131 million) by 2033). For brands, this means that the trend for gut health has graduated from online buzz to real purchasing power in Poland’s retail and e‑commerce channels, offering significant opportunities to meet the rising demand for probiotic and functional food products. Trendsetters to Trend Buyers: The Probiotics in Poland Market in Motion The rise of gut health and probiotics in Poland demonstrates how digital trends translate into real-world consumer behavior. Social media has sparked awareness and aspiration, making functional foods not just a health choice but a lifestyle statement. With Poland’s nutraceutical and probiotic markets growing steadily driven by Millennials, Gen Z, and health-conscious adults brands have a unique opportunity to meet this demand with science-backed, visually appealing products. Short-form content, influencer collaborations, and engaging educational campaigns can bridge the gap between online inspiration and offline sales, ensuring that gut-friendly products become an everyday part of Polish wellness routines. The scrolls of today are the sales of tomorrow — and probiotics are leading the way! To get in touch with our Poland team Contact Us
Food Trends In 2026
Functional, healthy and sensorial – with a touch of retro: For its annual outlook, the Lebensmittel Zeitung (LZ), Germany’s leading trade publication for retail and consumer goods, interviewed top food experts. The results show clear shifts in how consumers will eat with regards to food trends in 2026. 1. Food as an expression of identity Food increasingly reflects personal identity. Consumers choose products that not only support health or sustainability but also signal who they want to be. The former “Planetary Health Diet” mindset is giving way to a new question: “Is this product good for me?”Terms such as gut health, skin food and longevity are becoming mainstream. 2. Healthy speed: functionality made easy Fast‑paced lifestyles drive demand for simple, intuitive functional products. Consumers want health benefits without extra effort – while still seeking small moments of indulgence as emotional relief in their daily routine. 3. Protein matters – but the peak has been reached High‑protein products remain strong, but experts expect a shift away from “protein maxxing” towards more diverse functional ingredients, including collagen, biotin, zinc and creatine. 4. Gut health in focus Demand for pre‑ and probiotics is rising. Fermented foods and gut‑friendly soft drinks are moving from niche channels into the mainstream and becoming part of everyday consumption. 5. Alcohol‑free and plant‑based mature Alcohol‑free wines, sparkling wines and aperitifs are becoming independent beverage categories with distinct flavour profiles.Plant‑based foods, meanwhile, move beyond imitation and develop into confident, standalone plant categories, with mushrooms and microalgae playing a bigger role in product development. 6. Matcha Matcha remains a strong green‑food trend, with more snacks, drinks and cosmetic products entering the market and reinforcing its lifestyle appeal. 7. Food for all senses Consumers seek global flavours, new textures and surprising mouthfeel. The swicy trend (sweet + spicy) is growing across snacks and desserts. Visual appeal – colours, 3D effects, layered textures – is becoming more important across categories. 8. Nostalgia & retro Retro flavours and traditional preparation styles return as sources of comfort and familiarity, updated to meet modern expectations. 9. Social media accelerates food trends in 2026 Highly visual products – colourful drinks, unusual textures, global flavours – spread quickly online and influence especially younger audiences. These trends are shaping the future of food consumption in Germany and offer manufacturers strong opportunities for innovation, differentiation and growth. To get in touch with our Germany team Contact Us
Green Seed experts share export advice with Belgian food companies
On Wednesday 11th of February, Belgian food companies and Green Seed market experts from across Europe, the USA and the Middle East gathered in Brussels for the Food Export Forum. The event provided practical information, tips, and insights into international trends, helping companies capitalise on export opportunities. More than 85 professionals from the Belgian food industry attended and received tailor-made advice from Green Seed. In today’s fast-moving global economy, Belgian companies must constantly adapt. New import tariffs, geopolitical shifts and other challenges make export increasingly complex. During the Food Export Forum, organised by Fevia, the Federation for the Belgian Food Industry, companies received answers to their most pressing questions. Panel Discussion: Global Trends and Opportunities The event opened with a panel discussion featuring Green Seed Group experts from the United Kingdom and North America, Simon Waring and Sanjay Panchal, together with Audrey Ashworth, Event Director of SIAL. The panel explored global trends and how companies can respond effectively. A striking trend discussed was the impact of GLP-1 medication in the United States and how it is reshaping American eating habits. The panel also highlighted the increasingly blurred line between retail and foodservice channels, particularly in snacking. Once again, it was clear that having local expertise is essential for successful export. Keynote speaker Nicolas Colanbeen, Delhaize Director Fresh Sourcing & Strategic Partners, explained how Belgian food companies can drive international growth through the Ahold Delhaize organisation. Or on how a sound home market offers opportunities abroad. Tailor-Made Advice in One-on-One Meetings More than 100 one-to-one meetings between Green Seed Group offices and Belgian food companies provided bespoke advice on export strategies. Consultants from all offices worldwide travelled to the event specifically to assist both established exporters and start-ups with their international growth plans. For companies looking to expand beyond Belgian borders, the event offered concrete insights into challenges, pitfalls and opportunities. Philip Horemans, Chairman of Green Seed Group, reflects:“Beyond strategic insights, we provided participating companies with concrete and actionable advice. This hands-on approach allows food professionals to immediately apply the knowledge to their own export strategies.” To get in touch with our Belgium team Contact Us
GLP-1 Drugs Are Changing the Shape of Demand — Not Just the Size of the Basket
Move over Veganuary. For anyone working in food and drink at the beginning of 2026, the rise of GLP-1 drugs medication has dominated the news agenda, and its impact is already showing up in shopper data and category performance. The sector is beginning to adapt. The headline point is that adoption, while still relatively small, is growing quickly enough to affect purchasing behaviour in a visible way. Uptake: The US Leads, the UK Is Catching Up The United States provides the clearest early indication of potential impact. Surveys suggest 12–16% of American adults have tried a GLP-1 drug, with around 6–8% currently using one for diabetes or weight management. In absolute terms, that means tens of millions of consumers whose appetite and eating patterns have been biologically altered. The UK is several years behind on the adoption curve. Data cited by The Grocer from Kantar and IGD suggests around 4% of UK households now include a GLP-1 user, roughly double the level seen a year earlier. The base remains small, but the trajectory — and the US precedent — explains why retailers and suppliers are watching closely. What the Data Is Showing So Far The most consistent signal internationally is lower overall food consumption. Research from Cornell University and consumer analytics firm Numerator indicates U.S. households with a GLP-1 user reduce grocery spending by roughly 5–6% within six months of starting treatment. The impact is uneven across categories: Categories seeing declines confectionery and sweet snacks bakery products savoury snacks quick-service restaurant visits alcohol and sugary drinks Categories showing resilience or growth fresh fruit and vegetables yoghurt and fermented dairy lean protein foods functional or high-protein snacks The pattern is consistent with the pharmacology: the drugs suppress appetite and reduce reward signals from high-calorie foods. In the UK, the early data reported by the IGD (Institute of Grocery Distribution) show similar behaviour: 69% of users snack less frequently 35% eat out less often Around half say they eat fewer meals overall That combination translates into smaller baskets and fewer impulse purchases, which have obvious implications for categories historically driven by snacking occasions. How Retailers Are Responding Several retailers have already begun experimenting with range architecture. High-protein yoghurts, nutrient-dense ready meals, smaller portion formats (like the 100g steak from Ocado) and “mini-meal” concepts are appearing across private label. The thinking is straightforward: if consumers eat less, the opportunity lies in higher-quality, nutritionally efficient products rather than larger volumes. However, the industry is still testing the right positioning. Explicit “GLP-1 friendly” labelling risks being niche or short-lived if the drugs plateau or face regulatory pressure. The US Health Debate May Shape the Curve Another factor to watch is the safety conversation emerging in the US. Regulators, including the U.S. Food and Drug Administration, have warned about unapproved compounded versions of GLP-1 drugs, while clinicians continue to debate potential side effects ranging from gastrointestinal complications to muscle loss. None of these issues has fundamentally slowed adoption yet, but they may influence how long consumers stay on treatment and how widely the drugs are prescribed outside the US. The Overlooked Question: What Happens After Treatment? For the food industry, perhaps the most important unknown is post-treatment behaviour. Clinical studies show many patients regain weight after stopping GLP-1 therapy, implying that long term use may be necessary to maintain results. But even where weight returns, behavioural patterns often change. Users report smaller portion expectations, lower tolerance for heavy, high-fat foods and a greater focus on protein and nutrient density. In other words, habits formed during treatment may persist, even if appetite partially rebounds. Strategic Implications for Food & Drink Brands For brand owners, the key takeaway is not that demand will collapse — but that the composition of demand may shift. Three implications stand out: Snacking occasions are under pressure, particularly high-calorie impulse products. Protein, fibre, and nutrient density are becoming increasingly important commercial attributes. Portion architecture may matter as much as formulation. The US experience suggests the biggest risk is not falling consumption overall, but being over-indexed in the wrong types of calories. GLP-1 adoption in the UK is still early. But the trajectory, and the signals already visible in the US, suggest this is not just a healthcare innovation. For food manufacturers and retailers, it represents a structural shift in how consumers experience hunger — and therefore how they buy food. Simon WaringManaging Director, Green Seed UK To get in touch with our UK team Contact Us
Italian Families Increasingly Opt for Fresh Produce
ISMEA has reported a 5.2% increase in household food spending in the first half of 2025, driven by rising purchase frequency and a strengthening preference for products typical of the Mediterranean diet. Supermarkets remain the leading channel for these purchases. In the first half of 2025, Italian household food purchases gained momentum. According to the latest ISMEA report, household spending grew 5.2% year-on-year (after 2% in 2024), fueled not only by rising prices but also by a widespread increase in volumes. One clear indicator of renewed consumer confidence is a 10% increase in purchase frequency. A closer look at sales by category provides further insight. Fresh produce products lead the sector in volume growth: Vegetables: +4.9% Eggs: +7.5% Fish: +3.7% Bread: +4.9% Cheese: +5.3% Spending on fresh produce products is rising in parallel: Fresh vegetables: +5.6% Eggs: +13.2% Fresh fish: +10.2% Fresh bread: +6.1% Fresh cheeses: +8.6% Some categories, however, are losing ground. Fresh milk volumes declined by 3.9%, while wine volumes fell by 2.5%, despite a modest increase in spending (+1.9%). Among beverages, sparkling wines performed strongly (+8.8%), while bottled water (+3.9%) and non-alcoholic beverages (+3.2%) also saw growth. In the oils category, extra virgin olive oil is seeing a remarkable surge, with volumes up 15%, aided by sharply declining average prices (-18%). By contrast, seed oils experienced a volume decline of 6.4%. To get in touch with our Italy team Contact Us
Nutrition Report 2025
The Nutrition Report is an annual, representative study published by the German Federal Ministry of Food and Agriculture (BMEL, since 2023: BMLEH). Since 2016, it has provided an overview of the eating habits and attitudes of the German population and serves as a key guide for companies seeking to understand and enter the German market. BMLEH Nutrition Report 2025 – Key Findings & Market Opportunities 1. Taste remains the top priority98% of Germans state that taste is “very important” or “important” when it comes to food→ Products with a clear promise of enjoyment and authentic taste have a high potential 2. Health and conscious nutrition90% value healthy eating71% eat fruit and vegetables daily, 64% consume dairy products daily→ Products with health claims, functional ingredients or clean labels are highly accepted 3. Decline in meat consumptionOnly 24% eat meat or sausages daily (2015: 34%)→ Plant-based alternatives, flexitarian products and innovative protein sources are in demand 4. Convenience and quick preparation57% consider easy and quick preparation important (2015: 45%)→ High-quality, healthy convenience products and meal solutions are a growth area 5. Price awareness is rising again59% pay attention to price when shopping (2015: 58%, 2020: 46%)→ Value-for-money and price-performance communication are becoming more important 6. Regionality and sustainability77% pay attention to regional origin, especially for eggs, fruit/vegetables, bread65% look for animal welfare labels, 59% for organic labels (2015: 36% and 47% respectively)→ Storytelling about origin, regionality and sustainability, as well as organic and animal welfare certifications 7. Transparency and nutrition labelling90% notice the Nutri-Score when shopping (2021: 44%)→ Clear, understandable nutrition labelling and transparent communication are crucial 8. Reduced sugar, salt and fat consumption64% pay attention to less sugar (2019: 58%), 21% to less salt, 54% to less fat→ Reformulated products with reduced sugar, salt and fat are in demand Conclusion for international companies for the Nutrition Report 2025 The German market offers great opportunities for products that combine enjoyment, health, sustainability and convenience. Plant-based alternatives, regional and sustainable products, healthy snacks and transparent communication are particularly in demand. Price awareness and quick preparation are further success factors. To get in touch with our Germany team Contact Us
Private Label Continues Its Bullish Momentum in the Spanish Food Market
According to Circana’s latest survey of the Spanish retail food market, covering the period up to the end of November 2025, 70.9% of total food volume sold in modern retail is now purchased in private label (PL) products. This has occurred despite a context of more moderate overall inflationary pressures. Reaching the 70% volume threshold represents a significant shift, as private label accounted for around 60% of total volume just five years ago. This milestone has been achieved despite sustained relative price increases for private label products compared with manufacturers’ national brands. For example, in 2025 versus 2024, average private label prices increased by 2.1%, while prices of manufacturers’ products remained broadly stable (according to Circana). The main factors driving the continued momentum of private label include: – So-called limited-assortment retailers — Mercadona, Lidl, Aldi and Dia — continue to gain food market share while expanding their private label ranges. Private label now represents more than 80% of Lidl’s assortment, 74.5% at Mercadona, and 69.1% at Aldi (Worldpanel by Nielsen). – Carrefour, the second-largest retailer in Spain, appears to be increasing its private label presence and expects private label to account for 41% of its assortment by the end of 2026, compared with 32% just two years ago. – Other major retailers, such as Eroski and Consum, appear to be following the same path. Surveys published in Spain over the past two years consistently show that at least two-thirds of shoppers declare themselves satisfied with private label offerings in supermarkets. This satisfaction is driven primarily by perceptions of “intelligent shopping” and by the improving perceived quality of private label products. To get in touch with our Spain team Contact Us
Move over protein, it’s time for fibremaxxing!
Fibre is the word on everyone’s lips as the key trend to move into the limelight for 2026, even while protein enriched food and drink still drives a lot of volume. In terms of our diet, many people are consuming more than enough protein, while there is very low awareness of the importance of fibre and especially how much should be consumed on a daily basis to lower the risks of illness. According to ONS (UK government statistics) some 96% of consumers are not eating enough fibre. The NHS recommends adults should consume 30g of fibre per day – and most of us are only consuming 20g. Now is the time for this much overlooked macronutrient to grab some attention and become a more central part of the diet. In addition to supporting healthy digestion and the gut microbiome (which has been shown to have positive effects on the central nervous system in addition to the gut), fibre strengthens immunity, improves cardiovascular health and diminishes the chances of serious illness including colon cancer. Brand owners and retailers are picking up fast on this trend. New launches across multiple categories, from cereals and seeds to healthy snacking, are increasingly highlighting fibre content and using it as a selling message. Consumers are receptive as the ‘#fibremaxxing’ trend on social media is creating a real engagement, with this hashtag having 150m views and counting. How Have Retailers Taken This News About Fibre Consumption? Marks & Spencer has been taking a lead role in this too, citing barriers to increased fibre consumption as lack of awareness, unclear labelling and socio-economic factors. This is something they are lobbying the government about and aiming to address in their Eat Well fibre range. Retailers will be increasingly looking for brands that can make a source of, or high fibre claim to capitalise on increasing consumer interest. To get in touch with our UK team Contact Us
The existential question facing medium-sized brands
The growing concentration of retailers has changed the dynamics between multiples and food suppliers. In a market where private label continues to grow alongside A-brands, medium-sized producers are increasingly being squeezed. Should they survive as medium-sized brands or focus on private label? Are they ultimately doomed, or is there still a future for them? Private label products have gained substantial ground across all markets. This is not a new phenomenon, as own brands have been a core element of retail strategies for many years. However, the internationalisation of retail — with fascias operating in multiple countries and acquisitions leading to higher levels of concentration — has created larger volumes, higher service requirements, and a stronger negotiating position for retailers. This pressure can marginalise smaller producers, who often struggle to achieve the economies of scale needed to compete effectively. As retailers continue to consolidate their supply chains, the need for reliable, cost-effective suppliers becomes ever more critical. To remain relevant, medium-sized producers must build scale. Developing international supply partnerships therefore becomes essential, with mergers and acquisitions often the natural outcome. For every SKU, the question is straightforward: does this product deserve its shelf space? Medium-sized brands frequently face the classic “stuck in the middle” problem — neither cheap enough to compete with private label nor distinctive enough to challenge A-brands. They may be overly reliant on retail distribution, with limited direct consumer pull, or lack the resources to outspend A-brands on marketing and trade terms. As a result, medium-sized brands can only survive if they clearly add value to the category. They must differentiate and actively contribute to category growth. Our advice is clear: become a specialist brand. Claim and own a niche (for example, gluten-free products or premium crisps) and ensure the brand is genuinely meaningful. Bring shopper insights, propose exclusive launches, and even consider producing selected private label products without undermining the core brand. In doing so, the brand contributes to storytelling and category development for the retailer, helping to trade shoppers up from private label. The focus shifts from defensively protecting shelf space to actively building the category. The expertise a brand brings strengthens the trade relationship through credibility. Becoming a partner rather than simply a supplier offers longer-term protection. Ultimately, success depends on relevance to the multiples. This is what challenger brands demonstrate every day: the ability to be distinctive and innovative. Their success is often recognised by leading brands, which acquire them before they even reach medium-sized scale. Perhaps some medium-sized brands should reflect on those earlier days, when they themselves were the exciting challengers — and return to those roots. What Is The Alternative For Medium-Sized Brands? What is the alternative? Delisting by multiples and the resulting loss of distribution, reducing the market position to a local one, acquisition by an A-brand, or gradual disappearance driven by margin erosion. In a consolidating market, a clear strategic choice is essential to protect long-term market position. Philip HoremansManaging Director, Green Seed Belgium To get in touch with our Belgium team Contact Us
After Lidl and Colruyt, Now Delhaize Also Launches A Hybrid Meat Range. Are We Seeing The Start Of A Revolution?
There is clearly something happening on the Belgian meat shelf. Whilst the growth of pure vegetarian or vegan has slowed down, producers and retailers are exploring new ways of reducing meat and contributing to the protein shift. In June, Lidl launched a blended meat category with mince meat and a hybrid meat cheeseburger. The Colruyt Group is adding plant-enriched mince to its product range in two of its chains. Now Delhaize is offering a new range which includes both deli and fresh meat options: hybrid chicken fillet, salami, cooked ham, minced meat, chipolata sausages and burgers.Each recipe blends meat with plant-based ingredients like courgette and butter beans, to ensure the same rich taste and juicy texture. According to Delhaize its new hybrid meat range combines the rich taste of meat with the goodness of plants.By replacing part of the meat for veggies, the products have 30% less fat and a smaller footprint. They are targeting consumers who want to eat smarter without giving up flavour. It fits with Delhaize’s strategy on sustainability and health. As Belgium’s leader in plant-based food, Delhaize has always been ahead of the curve. But not everyone is ready to go fully plant based. That’s why Delhaize is introducing hybrid meat products that help you eat more sustainably without changing your habits overnight. “Our customers care deeply about sustainability, health and taste,” says Jonathan Hertog, VP Fresh and Sourcing at Delhaize. “With our hybrid range, we make it easier to choose better—for yourself and for the planet—without compromising on flavour.” This launch is part of Delhaize’s long-term commitment to sustainability: by 2030, at least half of all protein-rich products will be plant-based. It’s clear that all retailers are exploring ways on how to appeal to the flexitarians, those who want to eat less meat without compromising on taste. To get in touch with our Belgium team Contact Us
Organic Market in Germany: Growth, Trends, and Opportunities for International Companies
The German organic food market experienced impressive growth of 5.7% in 2024, reaching a turnover of approximately 17 billion euros. This growth reflects the increasing consumer interest in organically produced food. Although organically farmed land in Germany now accounts for 11.4% of total agricultural land, domestic production is insufficient to meet the growing demand. As a result, the German organic market may increasingly rely on imports—an opportunity for international suppliers to strategically position themselves. Consumers place great importance on aspects such as animal welfare, sustainable production, and supporting local agriculture when purchasing organic products. A recent study shows that 97% of all German households buy organic food at least occasionally. However, organic products currently account for only about 6.3% of total food sales, highlighting significant growth potential. Organic food is also gaining importance in the out-of-home catering sector. With the introduction of the Organic Out-of-Home Catering Ordinance (Bio-AHVV) in October 2023, a certification system with Bronze, Silver, and Gold labels was implemented to indicate the organic share in restaurants, canteens, and cafeterias. This initiative aims to provide transparency for customers and allow businesses to showcase their commitment to sustainable catering. For international companies in the food & drink sector, the German organic market offers attractive opportunities. The rising demand for sustainable and locally sourced products, combined with consumers’ increasing awareness of healthy nutrition, creates a favorable environment for market entry. However, it is essential to consider local preferences and quality standards to establish a successful foothold in both the German retail and foodservice markets. Sources: Lebensmittelpraxis „Bio-Markt wächst auf 17 Milliarden Euro Umsatz“, 11.2.2025BÖLW (German Organic Food Industry Association) „Kaufmotivation“, 11.2.2025BMEL (Federal Ministry of Food and Agriculture) „Mehr Bio in Restaurants, Kantinen und Mensen – so unterstützt das BMEL gute Außer-Haus-Verpflegung“; 9.12.25 Contact Us
Snacking: The Growing Appetite Of The French For A Freer Way Of Consuming
Snacking is no longer a passing trend. In mainstream French grocery retail the snacking universe recorded sales of €23.3B in the period to 18th May 2025, notching +22% growth over three years, reflecting lifestyle changes, consumer expectations, and food identity. It is no longer just about satisfying hunger : it’s a combination of convenience, pleasure, and self-expression in everyday life. Societal shifts fuel this rise: 81% of the population live in urban areas, households are smaller, daily life is faster, remote work is widespread, and consumers experience chronic time pressure. Over the 12 months ending May 2025, convenience has driven growth in ready-to-eat categories : fresh pasta +6.6%, pizzas +5%, boxed meals +18.4%, and delivery spending has multiplied 2.5 times since 2019. Snacking also fulfills emotional needs, offering “bubbles of pleasure” in a context of low morale, budget constraints, and social isolation. Consumption is increasingly polarized and individualized. In retail, meal snacking has grown +3% in value, aperitifs +1.8%, sweet treats +3%, and individual drinks +13%, while convenience formats dominate. Hypermarkets and drive-throughs lag behind, revealing growth opportunities. In commercial foodservice, snacking occasions are reshaping visits: 45% occur outside traditional mealtimes. Mornings are increasingly convenience-driven, with muffins, brownies, cookies, and soft drinks. Afternoons focus on indulgence: desserts, coffee, soft drinks, and savoury items like burgers and nuggets. Coffee shops visits have increased +14%, while independent bakeries emerge as key channels. Consumers seek intensity, energy, and identity. Protein products (Skyr +24%, high-protein yogurts +11%), energy drinks +14%, world cuisine (Asian sauces +12%, tortillas +12%, guacamole +8%), and spices (paprika +23%, hot sauces +14%) reflect diverse tastes. Plant-based, halal, and poultry alternatives express identity-driven choices. Snacking now spans healthy, indulgent, spicy, world-food, protein-rich, premium, and vegetarian options. Innovation is essential. Out-of-home trends, such as spicy products, vegetarian offerings, new fry formats, and coffee shop culture, often translate into retail success. SMEs can leverage agility, creativity, and variety to meet consumer demand, while large groups compete on scale. High purchase frequency, constant novelty, and cross-channel competition make speed and relevance key to success. Snacking 2025 is not the future of food: it’s already its dominant form. To get in touch with our France team Contact Us
The Consumer As An Algorithm: How AI Is Changing Perceptions and Purchase Decisions
Up until now brand awareness, strategy positioning and effective communication campaigns have shaped brand value and determined market success. But this is no longer valid. What you say about yourself is no longer how people perceive and value you. Building trust has become a key success factor. Transparency, consumer testimonials and experiences create digital reputation. And that becomes the source of the AI algorithms in analysing, processing and delivering information about you or your brand. When you ask on your internet browser if you can trust brand A, the outcome does not necessarily reflect your marketing campaign or company sources. It flows from the consumer perspectives rooted in experiences that are then digested by the AI bots such as the LLM’s (Large Language Models) whose outputs are becoming ever more credible in consumers’ eyes and in guiding their future decisions. And this entails risks because the feed data can be manipulated and this for sure will affect what the AI bots write about the brand. One can be critical about the future implications of the new reality which is shaking business model foundations. But it is there and you either cope with it or face becoming a dinosaur. When considering communication processes, its purpose needs to be double faced: emotional for consumers but also logical for machines. One needs to integrate AI bots in the communication targets. SEO strategies should deliver not only to search engines but also to GEO’s (Generative Engine Optimization) which are no more than conversational models. It also means that a poorly described product or one which shows inconsistent data is overlooked by AI agents. The perception of a brand’s value today is built into forums that the brand doesn’t control, such as Reddit, social networks such as TikTok – or portals such as DECO Consumers’ Association in Portugal where consumers feed in their own evaluations. These platforms are avidly read before the potential consumers or users take decisions. There are efficient tools for omnichannel ticketing / addressing costumer complaints such as Freshdesk or Zendesk that companies cannot ignore any longer. Auditing your brand’s digital presence and integrating AI tools for digital reputation analysis will become mandatory to design any future communication strategy. One needs to be prepared for new interfaces between the consumer and selling channels whether an e-commerce platform or even the supermarket shelves. These AI agents will interact with websites and ultimately can command purchases on behalf of the consumer. Luis GarciaManaging Director, Green Seed Portugal To get in touch with our Portugal team Contact Us
A New Model of Innovation: How Social Media Are Redefining Consumption
After years marked by health crises and inflation, 2025 signals a turning point. According to Nielsen data, FMCG sales are up +2% year-to-date (08 2025 vs 2024), while the number of SKUs has increased by +3.9%. These positive signs are not merely cyclical; they reveal a new model of value creation, shaped by connected, demanding consumers and the growing influence of social media as a driver of innovation. The way new products emerge has radically shifted. Nearly one in two innovations today originates from social media, whether through a viral TikTok challenge, an Instagram story, or the endorsement of a powerful creator. The traditional launch model, based on mass advertising and brand heritage, is being replaced by a bottom-up dynamic led by online communities. These “born-online” products create demand before supply, build scarcity before availability, and rely on virality to accelerate awareness. When successful, this model generates exponential visibility and rapid sales growth. Yet it remains fragile, with almost 50% of innovations still disappearing within four years due to weak in-store execution or a lack of long-term anchoring. In this new landscape, the product alone is no longer enough to ensure success. Growth is increasingly driven by the ecosystem that surrounds it. A loyal community built through authenticity and dialogue, coherence between the influencer’s persona and the product’s values, impactful packaging designed for both screen and shelf visibility, and flawless execution in stores all combine to sustain momentum beyond the initial buzz. In this landscape, the product alone is no longer enough to ensure success. Growth is increasingly driven by the ecosystem surrounding the product. A loyal community built through authenticity and dialogue, coherence between the influencer’s persona and the product’s values, compelling storytelling, impactful packaging, and flawless implementation in stores all sustain momentum beyond the initial buzz. Social-born brands demonstrate how creators can successfully convert online influence into tangible market performance. For instance, MrBeast’s Feastables (a line of creator-branded chocolate bars and snacks) leveraged his 430 million YouTube followers to turn content into commerce, achieving €2.4 million in revenue over just three months in France. Similarly, Franui (a frozen snack of chocolate-coated berries), a chocolate brand launched primarily through social media campaigns, generated €2.7 million in sales within 3 months according to Nielsen data. Meanwhile, Lindt Pistachio a limited-edition product following the “Dubaï chocolate” trend launched through a social-driven campaign, reached nearly €3 million in revenue in three months in 2025. These examples highlight that social-born products are not only viral phenomena but also significant revenue drivers, demonstrating the concrete market impact of creator-led and socially activated innovations. Nielsen insights reveal that consumers are changing faster than brands. They are moving from influence to functionality. Shoppers still seek inspiration, but they now demand proof over promise. Composition, origin, transparency, and sustainability have become decisive factors. Influence remains a powerful lever, but it must now be grounded in authenticity and credibility. The brands that succeed are those able to blend emotion with evidence, turning storytelling into a tangible experience. In this fast-moving environment, continuous monitoring of social and market data has become essential to spot weak signals, anticipate trends, and adapt quickly. Generations Z and Alpha embody this new paradigm. Hyper-connected and fluent across multiple platforms, they grant attention only to what aligns with their values. Their loyalty is short-term and tied to experiences rather than brands. They join a trend, drive it, and move on once it fades. For marketers, the risk is no longer missing the next big thing; it is becoming invisible in a world where visibility is measured in seconds of scrolling. According to Nielsen, 70% of Gen Z consumers discover products online first, and over half expect to see digital engagement before encountering a product in stores. Despite the acceleration of digital channels, traditional retail remains essential for scaling. Social-born brands still rely on supermarkets and hypermarkets to reach mass audiences, but the sequence has flipped: audience now precedes distribution. At the same time, established FMCG players are experimenting with influencer-driven collaborations to reignite consumer engagement. This hybridization reflects a deeper shift. The balance between digital and physical, between virality and longevity, is being reinvented. The FMCG market is entering an era where success requires listening before speaking, proving before promising, and co-creating before selling. Social media have not just redefined communication; they have rewritten the rules of innovation itself. In 2025, brands no longer lead the conversation. Consumers do. Sophie DelcroixManaging Director, Green Seed France To get in touch with our France team Contact Us
Latest Trends For Spanish Coffee Consumption
Coinciding with the 1st October celebration of the World Coffee Day, the AECafé (Spanish Coffee Association) has issued its annual Report with some interesting Highlights of 2024: · Coffee consumption keeps on growing in Spain to 4.2 kg per capita (3.5 kg per cap in 2019) or 562 cups a year per person. Coffee consumed is evenly spread among arabica and robusta varieties. 83%+ of the coffee sold to final consumer is caffeinated and mainly in 250g bags, though pods are increasing faster than other formats · This represents 75 million cups of coffee per day or 206 k tonnes consumed in the year backed by the strong Horeca pull with 70 k tonnes or 22.5 million cups of coffee per day which represent an increase of 2% versus prior year · Those figures are even more significant in the current context of general global coffee price increases where Spanish coffee imports have grown by 46% in value terms with a volume increase of 13% versus prior year giving a total of 345 k tonnes imported · The 3 main import countries are Vietnam, Brazil and Uganda · In production terms the Spanish coffee industry has reached a level of €2 billion with 6,300 direct employees in 100+ coffee roasters, with an additional around 100,000 employed indirectly in the sector The trade structure in Spain with 235,000 out-of-home outlets, 50,000 retailers shops and 335,000 plus vending machines support these strong trends going forward. Contact Us
How to respond to food trends highlighted by Anuga 2025
Anuga Food Trends 2025 provide a forward-looking perspective on the key drivers shaping consumer behaviour worldwide. These insights are not only relevant for global markets but also critical for companies targeting Germany, one of Europe’s most dynamic and competitive food retail landscapes. Top Food Trends For 2025 1. Sustainability as Standard Sustainability is no longer a niche topic – it is a core purchasing criterion. Consumers expect climate-friendly products, transparent supply chains, and eco-conscious packaging. ➡ Brands should integrate sustainability into product development and communication strategies. 2. Naturalness & Clean Label Consumers demand simple, recognisable ingredients and transparent labelling. Plant-based products remain strong, but with a focus on authenticity and minimal processing. ➡ Highlight natural ingredients and clear sourcing information. 3. Personalised Nutrition Health-conscious consumers seek tailored solutions for individual needs, supported by apps and smart devices. ➡ Functional ingredients and customised product concepts open new opportunities. 4. Convenience & Snacking Busy lifestyles drive demand for convenient, portion-controlled, and healthy snacks. ➡ Develop on-the-go formats that combine taste, health, and convenience. 5. Beauty from Within Nutrition meets beauty: products with added benefits for skin, hair, and nails are gaining traction. ➡ Position functional foods as part of a holistic wellness lifestyle. 6. Gut Health Digestive health remains a top priority, with growing interest in probiotics, prebiotics, and fibre-rich foods. ➡ Incorporate gut-friendly ingredients into existing and new product lines. 7. Alternative Proteins The shift towards plant-based and meat-reduced diets continues, with innovations in cultivated meat and microbial fermentation. ➡ Explore alternative protein sources to meet evolving consumer expectations. Adapting to these trends will help brands stay ahead in a rapidly evolving market. Whether it’s sustainability, convenience, or functional nutrition, companies that innovate in line with these expectations will be best positioned for success in Germany and beyond. Contact Us
The UK Food and Drink Market: Growth Opportunity for International Businesses
After a few years of post-Brexit adjustment, the UK food and drink market is finally finding its rhythm again. Despite wider economic challenges, there’s a sense of confidence returning across retail and foodservice. It feels like an exciting moment for international brands ready to enter a market that rewards genuine quality and innovation. The UK is still one of the largest food and drink markets, worth over £250 billion each year. British consumers are some of the most trend-aware in Europe, with a growing appetite for global flavours and sustainable products. Retailers are expanding their ranges too, looking for new ways to stand out through distinct, high-quality offerings. Premium and speciality products are leading the way, even as value ranges continue to feel pressure from discounters. According to NielsenIQ, half of global shoppers are now buying more private-label products than ever before. This mix of affordability and aspiration is opening doors for international brands that can tell a strong story and deliver on quality. UK shoppers are happy to trade up when a product feels authentic or genuinely good for them. The structure of UK retail also works in favour of focused exporters. Tesco and Sainsbury’s together make up over 40% of grocery sales, and both are putting more emphasis on innovation and supplier collaboration. Online grocery and convenience channels are growing too, giving overseas brands an easier way to test products and build recognition before going all in with major retailers. Online specialist Ocado has been the fastest growing supermarket retailer over the last year. On the trade side, things are gradually improving. New UK–EU cooperation measures will simplfy customs processes, and ongoing trade talks with the US and other countries point to a more open approach to global imports. For European producers the UK remains a valuable and well-connected export market. For US brands, the UK is often the first natural step into Europe. The shared language and similar consumer habits make it a manageable place to build awareness. Innovative American products from craft drinks to better-for-you snacks continue to do well here, especially among younger consumers looking for something different. Overall, while the past few years have had their ups and downs, the UK food and drink market still has a lot going for it. With shoppers more curious and open-minded than ever, this is a great time for European and US brands to take another look at their UK potential. If a brand has a clear story and something unique to offer, the market is ready to listen. Source: Glotech/Data sourced uktradeinfo.com Contact Us
Despite the increasing price of foodstuffs, Portuguese consumers are not sacrificing health for a lower priced basket
According to research commissioned by the Product of the Year, 44% of Portuguese shoppers said that “eating healthily” is a daily compromise. Supermarkets are the preferred channel for healthy purchasing 70%, with 15% going to markets and 7% to specialized stores. Nearly half of consumers (47%) said they do not change their basket mix because of price increases. But those who did, organic products (17%), healthy snacks (16%) or Meat (11%) were the ones to go. Of those who go for specific diets, 28% prefer Gluten and / or Lactose free, low carb (25%) or Plant based (19%). In terms of information collected to support food purchasing decisions and a quest for a balanced diet, the most relevant sources were seen as: nutritionists (34%), TikTok and You Tube (21%), friends and family (16%) and finally bloggers or health sites (13%). To get in touch with our Portugal team Contact Us
Price vs. Value: How to Win the Polish Plant-Based Market
The plant-based alternatives market in Poland is rapidly evolving, transforming from a niche segment into a significant player in consumers’ shopping baskets. Polish shoppers are increasingly choosing plant-based meat and dairy products, driven by concerns for health, the climate, and animal welfare. Nearly half of the population has already tried these products, and 43% purchase them regularly, noting their good taste and quality. However, behind this growth lies a serious challenge – the post-inflation reality where price has once again become king. After a period of high inflation, a significant portion of consumers has adopted a more frugal approach to spending. For 39% of Poles, price remains the main barrier to switching to plant-based alternatives. This is where the real battle begins. While some brands attempt to penetrate the market through aggressive pricing, others have come to understand that success doesn’t come to the cheapest player but to the most convincing one. In a time when every zloty counts, the ability to communicate the value of a product becomes the key to success. It’s not just about being tasty and affordable, but about being conscious and beneficial in the long term. To succeed in Poland – a country where environmental awareness is growing, but wallets still call the shots – plant-based brands must go beyond traditional marketing. They must not only feed but educate, explaining that price is not a barrier but an investment. An investment in health, in a cleaner planet, in innovation, and in the future. Polish consumers are price-sensitive – that’s a fact. But the winners are those who know how to turn price into value. Health remains the top priority for Polish shoppers, with 44% placing it first when choosing food products. This is followed by concern for the environment (25%) and only then by price considerations. Local sourcing is also gaining importance, especially among consumers aged 30 to 50, who value products with transparent origins and a minimal supply chain footprint. Prices as Both a Barrier and a Driving Force The post-inflation reality of 2024–2025 has reshaped Polish consumer behavior, putting a strong emphasis on saving. Price, now the primary decision-making factor, has driven a widespread shift toward promotions, private label goods, and local brands. For many shoppers, this has become a strategy to adapt to declining purchasing power. Today, smart shopping is the guiding principle. Polish consumers assess not just the price but the justification behind the expense. This is particularly relevant in the context of growing environmental awareness. While 83% of Poles acknowledge the importance of combating climate change, only 10% are willing to pay more for environmentally friendly products. This gap highlights that cost remains a decisive factor, even among those who recognize the value of sustainability. Plant-based alternatives, offering nutritional value and environmental benefits, still tend to be more expensive than traditional meat products – ranging from 4 to 7.5 PLN per 100 grams, compared to 2.5–4 PLN for conventional meat. However, the price gap is gradually narrowing, providing brands with an opportunity to reach a broader audience. This is why discount retailers such as Lidl and Biedronka are gaining popularity, offering affordable options for budget-conscious consumers. At the same time, premium stores remain attractive to those prioritizing health and sustainability. Online shopping is also emerging as a convenient space for exploration, combining a wide selection with the ability to find competitive deals. Consumer Segmentation: Who Pays for Value and Who Pays for Discounts? The plant-based product market in Poland is shaped by four main consumer groups, each driven by their own motivations and expectations. Price-focused: shoppers who care only about affordable prices. They seek cheap private label products at discount stores. Health-focused: those who choose products with clean ingredients and are willing to pay more for quality and health benefits. Conscious consumers: oriented toward ecology and ethics, willing to pay a premium, but making up a small share — less than 10%. Certifications and transparency are important to them. “Trendy” consumers: experimenters and flexitarians who quickly lose interest if the product doesn’t meet expectations. They value vibe, trendiness, visual appeal, and influencer support. Flexitarians hold a special place — flexible consumers who do not completely give up meat but consciously reduce their consumption. They currently form the main growth segment for the plant-based alternatives market. This group in Poland is steadily growing by 8–10% annually, making it a key driver of the sector’s development. Their choices are influenced by taste, price, convenience, and trust in social media recommendations. To win over this audience, brands need more than just affordability they must be convincing by offering real value, emotional engagement, and rational justification for every purchase. Value as a Strategy to Reduce Discounts and Increase Profitability Consumers do not buy products they buy value. Money flows to the brand only when the perceived benefit outweighs the price tag. In post inflation Poland discounts have long ceased to be a universal solution. They dull the perception of a product’s true worth and erode profitability in the long run. It is far more profitable to build a strategy around clear and tangible value something consumers are genuinely willing to pay for. Social media plays a special role in shaping this perception. Polish consumers especially young people and flexitarians todays main growth drivers of the market trust recommendations on Instagram TikTok and real stories far more than traditional advertising. Social networks allow brands not just to show a price but to tell a story about health benefits carbon footprint reduction local ingredients and taste pleasure. They help create the emotional connection for which people are willing to pay a little extra even when budgeting. The Polish market is ready for this approach. For most consumers health environmental responsibility and brand transparency matter more than another “20 percent off” banner. The winners will be the companies that can communicate this value honestly clearly and consistently. Price attracts. But consumers stay for the meaning To succeed in Poland plant based brands must go beyond price competition and focus on long term value strategies. This means using discounts as an entry point but building growth on transparency taste and trust. It is important to invest in storytelling through social media speak the language of the Polish consumer strengthen local identity and explain why the product is worth its price not only in calories but in meaning. To get in touch with our Poland team Contact Us
Lidl launches hybrid meat, a brand new product that is healthier than the original
Hybrid meat is on the rise; and the interest from producers and retailers is growing. What Is Hybrid Meat? Hybrid meat is minced meat that consists of 60% beef and 40% vegetable protein. The mix is intended to offer a sustainable alternative to traditional minced meat, with CO₂ emissions that are up to 40% lower. Lidl is one of the first retailers to launch it in Belgium. It fits within their corporate agenda on sustainability. ‘By replacing 40% of the meat with plant-based proteins, the CO2 emissions of this minced meat product are reduced by as much as 40%. Water and land consumption are also significantly reduced. To produce one kilogram of beef for your plate, you need about 12,000 litres of water. For a hybrid variant, that is about 40% less,’ according to Ines Verschaeve, sustainability expert at Lidl. Moreover, according to Lidl, the product looks and tastes the same as regular minced beef. The supermarket chain promises that the taste and appearance will remain the same as that of classic minced beef. ‘The development of this product took quite a long time, because we were determined to preserve the taste. I would even go so far as to say that even true meat lovers will hardly notice the difference,’ says Sam Van Lier, purchasing manager at Lidl Belgium & Luxembourg. The retailer sees it as its responsibility to make sustainable choices easier and more accessible. Recent research by Sciensano shows that the eating habits of Belgians are not yet sufficiently in line with the recommendations of the Superior Health Council. Only 54% of Belgians adhere to the advice to consume a maximum of 30 grams of red meat per day. Hybrid meat delivers on the health promise: more plant-based proteins and less fat. Philip Horemans of Green Seed Belgium adds: “The interest versus a hybrid meat offer is an interesting development, as the whole meat-free sector struggles. Yes, meat-free consumption is still increasing, but the growth figures are not as spectacular as forecast a few years ago. Green Seed is currently involved in a similar project, whereby a meat-free producer is open for a hybrid proposition, which years ago would never have been an option.” To get in touch with our Belgium team Contact Us
Private Label in Growth in Germany and across Europe
The Private Label Manufacturers Association (PLMA) hosted its largest-ever “World of Private Label” trade show a few months ago – a signal of the continued strength and innovation of the €352 bn sector. Key figures from NielsenIQ (2025 International Private Label Yearbook) reveal: Private label sales in Europe grew by €9.5bn vs 2023) Market share rose to 38.1% of the total grocery sector (+ 0.11 pp vs. 2023) Germany remains one of the largest private label markets in Europe. Unit sales in grocery increased by +1.27%, adding 5.24 bn units. Private labels drove over 75% of the total volume growth in the grocery sector. Strongest category growth: Ambient Food, Snacks, Perishables, Alcoholic Beverages. German Consumers Embrace Private Labels A December 2024 study by Simon-Kucher & Appinio confirms a long-term shift in German consumer behaviour: 52% of German shoppers now prefer private labels (up from 43% in 2023) 73% want to continue buying private labels. 13% plan to increase their use even further. Even if prices fall, more than half would stick to private labels. 14% would buy even more private labels if branded products became cheaper. Private labels are especially popular among lower-income households, but are increasingly seen as high-quality alternatives across all demographics. What Matters to German Consumers in 2025 Price remains the most important purchase driver, with 60% of consumers saying they are more price-conscious than in the previous year. However, other factors are gaining ground: 37% prioritise product quality. 30% value sustainability – particularly younger consumers, who are willing to pay more for high-quality, eco-friendly products. Shopping frequency is also changing: 55% of consumers now shop for groceries several times per week. The overall trend points to more frequent, value-driven, and conscious purchasing behaviour. Conclusion: A Market Full of Opportunity Germany’s grocery sector is evolving – and private labels are leading the way. For international producers, the opportunity lies in offering products that combine affordability, quality, and sustainability. To get in touch with our Germany team Contact Us
The traditional Dutch consumer no longer exists
For many Dutch consumers, price still remains the most important factor in making food purchases. In the supermarket, price plays a key role. A whopping 81% of Dutch consumers cite this as the most important factor in a purchase, followed by quality at 61%. This is one of the conclusions of the report “Balancing between spending and saving: the hybrid consumer in 2025” by ABN Amro, in collaboration with Q&A Retail. But today’s consumer is no longer predictable. Where once there were clearer boundaries between bargain hunters and luxury enthusiasts, in 2025 we see a consumer emerge who effortlessly switches between these worlds. Sometimes they purposefully search for the lowest price, but the next day they choose a premium brand or designer product with equal conviction. This “hybrid consumer” is not consistent—they are smart, strategic, and situationally aware, seeking a balance between price, quality, brand, and convenience. In the report, recent research was used to explore the preferences of this hybrid consumer, what drives them in different situations and across various product categories, and how factors such as age and income influence this behaviour. Loyalty is under pressure It is important for retailers and suppliers to incorporate these insights into purchasing behaviour when developing brands, product concepts, promotions, product ranges and customer approaches. Loyalty is under pressure. The hybrid consumer isn’t necessarily someone from a higher income bracket with many options, but someone who uses their budget strategically. This strategic use can vary by product category and stage of life. The research was conducted in consultation with Q&A Retail among over 2,100 respondents, divided into five age categories: ranging from 18 to 26 years old to 70 to 82 years old. The five involved product categories were: Supermarket products, Clothing and shoes, Cosmetics and beauty, Home and interior, and Electronics. The conclusions below will primarily focus on food related behaviour. The research results show that 51% of the households who were willing to share this information have a gross annual income between €42,000 and €84,000. This seems sufficient to make choices, but not generous enough to always opt for luxury. Furthermore, 32% have a modal income of €42,000 or less, and approximately 17% have more than twice the average income. Nearly one in ten households has a state. It is striking that almost one in five respondents refuses to share their income level, a possible sign that purchasing power and financial status remain sensitive issues. Price and quality are most important Price and quality are by far the most important aspects for consumers when purchasing food products. Women are slightly more likely to be price-conscious, while men are more likely to choose quality or brand in some categories. But other aspects also play a role in consumer choices within each product category. Retailers must also consider this. The hybrid consumer is price-conscious, but doesn’t always go for the lowest price or a discount. Consumers have a pragmatic and goal-oriented approach to shopping. For example, 40% say they are willing to pay more for some products and specific features, but not for others. Across all product groups surveyed, the balance between price and quality clearly dominates consumer choices. Consumers are also flexible and context-driven in their choices: they alternate between inexpensive brands or private labels with expensive and well-known brands from the same category, depending on what they consider important at the time. Consider, for example, a family with an average income. They choose to do their weekly grocery shopping at a discounter to save money, but for special occasions, they choose premium products from a supermarket or luxury specialty store. This flexibility typifies the hybrid consumer: they switch when a more attractive purchase presents itself. Of the types of stores and online shops surveyed in the retail landscape—discounters, mid-range, premium/luxury—the mid-range stores are the most frequently visited by respondents. This also reflects the desire for good value for money. Quality, store brands, and convenience Price is therefore the most important aspect for supermarket customers. It’s striking that quality scores slightly higher than price in the highest income group. Brand plays a limited role, which, according to the researchers, also explains the rise of store brands in supermarkets; name brands are less important. Product availability is considered important by 28% of respondents. Furthermore, more than one in five say convenience of purchase and use is important. This is especially true for the youngest demographic. According to the researchers, this also indicates that many consumers consider online grocery shopping to be important. Proximity of a supermarket is an important aspect. “Nearly half of respondents consider proximity to the store crucial when it comes to supermarkets. This has everything to do with convenience, routine, and frequency of purchases. In those cases, proximity is convenient, and price isn’t always the deciding factor,” the report states. Millennials find sustainability important Finally, an average of 11 percent say that sustainability plays an important role in their purchases. This percentage is higher among millennials (born between 1985 and 2000) and the oldest group. “In conclusion, behaviour appears to be primarily functional and routine-driven when it comes to supermarket products.” Pim HaasdijkManaging Director, Green Seed The Netherlands Contact Us
Grocery Retail in Transition: Discount on the Rise, Hypermarket Formats show mixed results
The grocery retail landscape in Sweden is undergoing a clear shift. Chains with a Discount profile like Willys are thriving, offering affordability and efficiency in line with increasingly price-sensitive consumers. Willys, owned by Axfood, continues to expand and gain market share, a proof that the discount model is aligned with current consumer priorities. However, large-format stores are seeing mixed results. ICA Maxi is a standout success, benefiting from a well-integrated mix between huge assortment and low prices aimed at matching the Willys chain, strong customer loyalty, and a clear brand. In contrast, Axfood’s hypermarket chain City Gross is underperforming. Despite now sharing ownership with Willys, City Gross has struggled to define its identity and compete effectively in a market where choice and price dominate. It will be interesting to see whether Axfood is able to turn City Gross around. Given their proven success with Willys, the capability is likely there, but it will require a bold strategic approach , possibly redefining the role of City Gross within the portfolio. Can it become a hybrid between discount and full-service, or does it need a completely new format, or will it be Willys-XL? The opportunity is there: a successful repositioning of City Gross could fill a gap between hypermarkets and discount. But standing still is not an option. To get in touch with our Nordic team Contact Us
E-commerce: scenario and critical issues
In Italy, e-commerce is worth more than 6 billion euros and the number of shoppers who buy online is growing, however, sites dedicated to grocery shopping are not taking off. How is e-commerce doing in the grocery sector in Italy? Pet products drive online sales growth The pandemic has strongly pushed the expansion of e-commerce and consumer goods are increasingly relevant in total purchases, making up 15.8% of total spending in Europe. In particular, in Italy the online channel generates a turnover of more than 6 billion euros, with strong growth rates for products intended for pets, home and personal care, while the share in food has slightly decreased (-0.6%). A NIQ research report highlights how shoppers are making online purchases in an increasing number of product categories and that, as regards food and beverages, preference is for retailers with an existing network of physical stores. Brands dominate the shopping cart, PL accounts for ‘only’ 7.2% of the turnover But how are purchases segmented? It is mostly men who shop online, and more than 70% of orders come from Generation X (38.3%) and Millennials (35.6%), however the habit is also spreading among older and younger users; the latter, obviously, will become increasingly relevant. In the virtual cart, branded industry products prevail, while private labels are worth only 7.2% of purchases (against 27.9% in the physical channel). As payment, 65% of Italian consumers prefer card, debit card or bank transfer, but other methods such as Amazon, Apple or Google Pay are growing. Promotional events, from Black Friday to Amazon Prime Days and Christmas, are crucial for e-commerce sales. Loyalty as a lever for growth Based on research by Statista, Italy is in third place in Europe for shoppers who have bought food online at least once (43%, compared to 64% in France and 51% in the United Kingdom). The penetration rate, however, stops at 6% and this means that users approach the online channel, but then abandon it. The main challenge, therefore, is loyalty, not the acquisition of new customers. Consumers turn to the online channel above all to order food items that they cannot find in physical stores, while the experience (not entirely positive) is summarized by the following data: 25% of users believe that buying online saves time (a very low percentage if we consider that the purpose of e-commerce is precisely to save time), 23% declare that the operation is simple while 21% believe that there is vast choice. Users also highlight various problems related to payments. All this shows that the Modern Retail is not yet able to offer a completely easy e-commerce service in the grocery. Strategies for improving the shopping experience What strategies should be implemented? Firstly, retailers online ranges should feature ‘exclusive’ products – private labels could be an optimal solution in this sense. Optimization itself is a crucial factor: for example, a delivery cost that decreases the longer the time slot could be a nice solution. The value of the user’s time must absolutely be rethought, providing for quick orders, shopping lists, one-click reordering (a function particularly appreciated in e-commerce in other sectors). Product sheets should also highlight the benefits for those who follow a particular diet or intend to prepare a certain recipe. Filters are therefore appropriate, so as to improve the choice. The use of WhatsApp should also be considered, for which strong investment is expected in the future. Finally, the implementation of well thought through loyalty programmes and communicating with consumers is essential. To get in touch with our Italy team Contact Us
Rethinking retail formats: How Auchan and Lidl are adapting to a changing market
Once the symbol of modern retail, the hypermarket model in France is being fundamentally rethought. With non-food sales in steady decline and shoppers adopting more purpose-driven, value-conscious behaviours, major players like Auchan and Lidl are redesigning their store formats, either by shrinking their assortments or adapting to new urban realities. For decades, hypermarkets thrived by offering food, apparel, appliances, and more in a single location. But that model is eroding. At Carrefour, non-food sales dropped by -6% in value in 2024, driven by category fragmentation and the rise of discount specialists such as Action and Normal. Auchan, facing structural difficulties, reported a -4.7% decline in like-for-like revenue in France the same year. Consumers are no longer treating the hypermarket as a one-stop destination. Instead, they’re shopping more selectively, often online or in discount chains. In response, Auchan has launched a bold transformation. The group plans to reduce the sales area of 77 of its 119 French hypermarkets by an average of 25% by 2027, without reducing the store footprint. The idea is to maintain the hypermarket format but reorganize the space to look and function more like a large-format supermarket. This means a smaller non-food section, an expanded food assortment, clearer signage, and a simplified shopping experience. Pilot stores in Mandelieu and Fréjus (south of France), inspired by Auchan’s model in Cascais, Portugal, are already testing this approach. For Auchan, this strategy is not only about shopper experience but also about efficiency, surface profitability, and relevance in a market where loyalty is increasingly hard-won. Lidl is also exploring how to adapt to more constrained urban spaces. In Versailles-Chantiers, near Paris, the retailer opened a 654 m² store (half the size of a standard Lidl) with a one-way shopping path and 100% self-checkout. The store is located inside a mixed-use building called “La Biosphère,” which also houses a Basic-Fit gym upstairs. However, the two operate independently. This atypical setup reflects Lidl’s ability to flex its format to fit high-traffic zones with space limitations. While this is not officially presented as a strategic shift, Lidl representatives describe it as “putting a foot in the door” of new urban models : an experiment that could inform future openings depending on performance. These two retailers are reacting to the same market shift: the end of the “everything, everywhere” retail promise. Instead, they’re betting on strategic focus, whether that’s a renewed commitment to food, more compact layouts, or collaborative spaces that add value beyond product. Hypermarkets may not disappear anytime soon, but they are being fundamentally redefined. The big question now: will these revised formats be enough to restore foot traffic and margins, or are we witnessing a transition toward an entirely new kind of retail? To get in touch with our France team Contact Us
Cannibalisation increases due to online stores and new stores.
Many consumers are experiencing “sticker shock”, says Rabobank analyst Schreijen. This term refers to the feeling of surprise or shock caused by the high prices of certain products compared to a few years ago. For example, consumers are still astonished by a jar of peanut butter costing more than €5, chocolate sprinkles costing over €3.50, and ready-made meals priced at €7.50, up from €5 in the past. Price awareness influences purchasing behaviour, mainly because consumers are aware of price developments and this may make them think twice before spending. In addition to price-conscious consumers, competition from other providers also poses a significant challenge for supermarkets. This includes meal delivery services, meal kit providers, online platforms, specialty stores and foodservice. As consumers once again have money to spend, especially now that their purchasing capacity has returned to 2019 levels, they find it easier to switch to more expensive channels such as foodservice and specialty shops. This poses a considerable risk to supermarkets. However, there are also opportunities. There are particularly good prospects for supermarkets among generations that value convenience, such as baby boomers, who have relatively higher discretionary income. Additionally, supermarkets can strengthen their position by utilising unmanned vending points and vending walls, which cater to the demand for convenience. Rabobank expects increased competition among supermarkets in the coming years. More new supermarkets will open and more store space will be created, which will lead to greater rivalry. This results in a ‘survival of the fittest’ situation, where only the strongest will endure. This could be more challenging for so-called service supermarkets, as growth is primarily occurring in higher segments and revenue from these segments may decline more rapidly in favour of discounters, who mainly compete on price. Furthermore, the bank predicts that the online share of the grocery market will grow to between 15 and 20 per cent. The market will be dominated by large players such as Albert Heijn, Picnic and Jumbo. Newcomers will find it hard to break into this market, since major players have logistics, fulfilment and technology advantages. The analyst advises supermarkets to view online shopping as an additional service rather than the main focus, because the required investments are very high and the market is rapidly becoming saturated, with the largest players ultimately benefiting the most. To get in touch with our Netherlands team Contact Us
UK’s Top Two in Grocery have got their mojo back!
Tesco and Sainsburys have a combined grocery market share of in excess of 40% and both are showing that they can successfully fight off challenges from the discounters. Tesco is on the march towards 30% market share. At least that’s their bold ambition as revealed by their new UK CEO Ashwin Prasad at a recent supplier event, intended to show brand owners that they cannot be beaten on value and quality, as well as service and availability. Having a comprehensive range of products is crucial to their strategy. Not only is this a very clear point of difference from the limited assortment discounters, it also helps to distinguish them from other supermarkets fighting them on price like Asda, whose performance has lagged consistently behind the No 1 retailer over some years now. Tesco’s current market share has been inching up for a while now (27.8% from recent Kantar figures). At its one time peak it was not far off 32% (some 18 years ago), but that was at a time when the two most important discounter competitors (combined share today 19%) were negligible players with a share of only 4% combined of grocery (it was the financial crisis which followed soon after which helped to turbo charge their growth rate). Sainsburys at end June 2025 report their highest market share in 9 years (The Times). Their ‘food first’ strategy appears to be paying dividends as recent like for like sales have increased +4.7% in the last 4 months. A combination of price matching Aldi across a number of products to prove their price credentials plus expansion of their Taste the Difference premium private label range (+18% in sales over the latest period), appears to be paying dividends. Not to mention being helped somewhat by the empty shelves following the cyber attack faced by competitor Marks & Spencer! To get in touch with our UK team Contact Us
Ready-to-Eat in Spain – a Rising Trend with Endless Development Potential
Significantly increased quality, healthy recipes, convenience, lack of preparation time, it’s “the trend to follow”, are some of the reasons we hear in surveys as to why Spanish consumers are so eagerly embracing ready-to-eat (RTE) meals. In the last ten years, Spaniards have passed from consuming 13 kilos per capita of RTE products to 18 kilos, a 38% increase, according to the consumption panel of the Ministry of Food. According to Kantar, the number of products available in mass supermarkets in Spain ready to eat and to consume at home or on the go (20% of the occasions and growing), has increased by 48% in the last 2 years with a significant penetration (1/5 of the population) already regularly consuming RTE meals. As regards availability of those products, not only the deli and gourmet shops are developing increased offers but importantly big supermarket chains as Mercadona or Carrefour are also devoting increased space to RTE products on the shelves of ambient, chilled and frozen sections. But the differentiator concept is to also have special zones with the RTE meals of the day to take out being cooked at the moment. Mercadona has 1,200 of these in 75 % of their shops (out of 1600 stores) and Carrefour does thes same in 200 of their big supermarket and hypermarket stores. Ambient, chilled and frozen solutions are being consumed across all Spanish households and quoting Grupo IAN (one of the main players in this league) a significant 95% of shoppers add a RTE product to their shopping basket. The big question is:Is the kitchen is starting to lose its central position of being the heart of the home? What are the strategic implications for other food and beverages offerings? Antonio Obieta Managing Director, Green Seed Spain
Brand-to-hand is thriving again
In a landscape saturated with digital messages, it’s the tactile, human experiences that are cutting through. Brand-to-hand marketing, and more specifically product sampling, is enjoying a renewed relevance, especially for FMCG brands looking to build genuine connections with consumers. It’s no surprise that sampling fell by the wayside during the pandemic, when face-to-face engagement was off the table. But now, the tide is turning. Sampling is back and it’s proving more effective than ever. While it may not suit every product or sector, there are countless brands, particularly in the fast-moving consumer goods arena, that can benefit from this hands-on approach. Consumers are craving authentic interactions. While they continue to shop, they are increasingly wary of being aggressively marketed to. Sampling allows them to feel like they’ve discovered a brand organically and, let’s face it, everyone enjoys a freebie! This form of marketing doesn’t just generate smiles; it generates results. According to Marketing Week, 63% of consumers say they’re likely to purchase a product they’ve tried via sampling, with 38% ready to buy immediately. Events and exhibitions remain prime environments for this approach. At Storm, we worked with our client Parmigiano Reggiano at the Spirit of Christmas fair at Olympia, London. Over the course of a week, we handed out more than 80kg of cheese samples. What might sound excessive on paper proved incredibly effective in practice. The stand drew in passersby, sparked countless conversations, and ultimately put Parmigiano Reggiano top of mind (and shopping lists). Of course, it’s not just about being in the right place. To maximise results, physical sampling should integrate with broader digital campaigns. Encouraging consumers to share their experiences online – whether through reviews, photos or social content – amplifies the moment and influences wider audiences. The revival of sampling offers an exciting opportunity for marketers. But it’s not just about giving something away — it’s about crafting an experience that stands out and sticks. When executed thoughtfully, product sampling becomes more than a promotion; it becomes a powerful tool for brand storytelling, awareness and loyalty. If you would like to speak to Storm about sampling or other marketing initiatives, drop us a line at hello@stormcom.co.uk. By Elinor Tyler, head of consumer at Storm Communications (Green Seed UK’s communications partner)
Latest trends for Spanish consumers at home
In the current context of uncertainty and recent price volatility, 2 out of 3 Spaniards have significantly altered their food and drink consumption habits, according to a very insightful survey conducted in March 2025 by AINIA, the leading food and drink research centre in Spain. More intake of fresh produce, eggs and legumes and less seafood, carbonated drinks and spirits are the main highlights. Though taste and quality are still main factors in decision making , prices have moved higher up in the ranking of purchasing criteria. Supermarkets continue to be the most competitive places for shoppers with an increase of baskets of own label products being bought in the discounters. There are even changes in cooking habits with clear signs of adaptation to an uncertain environment. Two-thirds of Spanish consumers are cooking less fried meals and increasing their intake of vegetables. In order to adapt to a trend for convenience the main winners are the ready-to-eat products prepared and sold freshly made at the supermarket special counter, where especially Mercadona and Carrefour are targeting in shoppers in an innovative way. Watch out for this new trend as you look at the Spanish market!! To get in touch with our Spain team Contact Us
German consumers are increasingly embracing convenience in cooking
In today’s fast-paced society, convenience and ease are becoming more important in everyday life – especially when it comes to food preparation.The latest YouGov report from April 2024 highlights how German consumers are increasingly embracing convenience in their cooking habits. Changing cooking habits 60% of Germans spend no more than 30 minutes preparing their evening meals. The Baby Boomer generation (71%) is most likely to prefer quick meal preparation. Younger generations, such as Millennials (45%) and Gen Z (47%), are more likely to spend over 30 minutes cooking – often turning meal preparation into a social event. Ready meals and frozen foods gaining popularity 49% of Germans purchase ready meals at least once a month. Among Millennials: 61% Among Gen Z: 69% 31% prepare complete meals from frozen products at least once a week. 26% heat and eat ready meals weekly. Men are generally more frequent users: 37% of men vs. 26% of women (frozen meals) 33% of men vs. 20% of women (ready meals) Market value of the ready-to-heat convenience food segment 2022/2023: EUR 3,072.8 million 2023/2024: EUR 3,212.2 million This reflects a 4.5% increase year-on-year. Key purchase drivers for ready meals The most important factors for consumers when purchasing ready meals are: Taste: 62% Price: 61% Ingredients: 35% Preparation time: 29% Conclusion The German market shows a growing preference for quick and easy meal solutions, particularly among younger consumers. For producers of high-quality convenience foods, this development offers exciting growth opportunities. Methodology:The data is based on a representative survey (n>1,000 participants) conducted between 18–30 October 2024 (YouGov Surveys). Market value and market share figures are based on YouGov Shopper Intelligence (Consumer Panel Services). To get in touch with our Germany team Contact Us
The Protein Shift: From Niche to Norm in Retail Food Innovation
In 2025, protein-enriched foods are no longer limited to fitness aisles or specialist stores. They’re gaining traction across mainstream categories (bakery, pasta, snacking) as both retailers and manufacturers respond to rising consumer expectations around health, performance, and satiety. What was once a functional niche is becoming a structural growth driver. Protein Gains Visibility Across Product Categories Retailers are increasingly positioning protein-rich products as everyday solutions for active, health-conscious consumers. Carrefour, for instance, has partnered with the European gym Basic-Fit to offer a dedicated range of protein supplements, including whey powders and ready-to-drink shakes, in their stores. This exclusive launch responds to the ongoing convergence between grocery retail and wellness culture. Meanwhile, in packaged bakery, Carrefour has introduced a high-protein sandwich bread under its CARREFOUR Sensation brand, delivering 13g of protein per 100g, with a Nutri-Score B. The protein trend is also reaching pantry staples. Barilla launched its “Protein+” pasta range, made from lentils, chickpeas, and even peas, offering 17g of plant-based protein per 100g. The brand positions this range not as a substitute but as an evolution of classic pasta for consumers seeking a higher-protein, plant-forward diet without sacrificing its texture. The snacking category is also embracing protein claims. In French supermarkets, brands like Gerblé and Isostar offer protein bars targeting health-conscious and sport-driven consumers. Retailers such as Lidl or Système U expanded their offer by launching high-protein-based snacks into their private labels, meeting the demand for convenient and affordable options. In contrast, Papa Chiche, a French start-up, brings a more lifestyle-oriented take to the segment. Its fully plant-based protein-enriched bars and granolas are positioned for flexitarian consumers seeking clean-label alternatives without performance-driven branding. The Blurring Line Between Everyday and Performance Foods Across the board, the narrative around protein is evolving. Rather than being limited into “sports nutrition,” protein is being repositioned as a marker of quality, satiation, and dietary balance. Retailers are experimenting with new shelf placement, placing protein-rich products closer to staples rather than isolating them in niche corners. Some manufacturers, like Barilla, are even avoiding overtly “sporty” messaging to speak to a broader public. Meanwhile, collaborations like the Carrefour x Basic-Fit initiative point to growing cross-sector synergies between retail, health, and fitness ecosystems. In conclusion, the rise of protein-enriched foods in mainstream retail marks a broader shift toward nutritional performance as a key purchase driver. While total category volumes remain modest, value growth is accelerating, and consumers are showing a clear willingness to invest in foods that offer functional benefits without compromising taste or convenience. To get in touch with our France team Contact Us
UK/EU ‘Re-set’ to boost food and drink opportunities in both directions
The EU and the UK have announced an important deal this week which will significantly ease trade for food and drink exporters targeting either market, by removing much of the documentation and physical checks in place since Brexit. This will save costs for exporters and may ultimately mean more competitively priced products on supermarket shelves. After 5 years of heat and drama leading up to Brexit, followed by 5 years of near silence since, as UK politicians of all persuasions hesitated to imply Brexit could be watered down in any way, it is now a vastly encouraging step forward to see all parties want to agree to simplify and encourage trade. Under the agreement it is understood that the need for vet checks will go, and that the UK will once again be able to export shellfish and products like sausages and burgers. While the UK government had continually postponed the implementation of physical checks on EU exporters into the country and ports had invested in infrastructure to manage new arrangements, it now looks like neither will be necessary. It also means that the EU will be able to fish in UK waters for a further 12 years, but the UK fishing sector should also find it easier to sell more to EU markets (70% of their catch is already exported). The timescales for the roll-out of these changes are not yet in the public domain, but it seems logical – and let’s hope business logic does work occasionally, it hasn’t much during the Brexit debate, let’s face it! – that two trading entities which work to the same food standards and have done business together smoothly and successfully over decades, can swiftly put things in place to the benefit of all concerned. The UK is a critically important market for many EU exporters. And let’s hope too that this signals to more of them that the UK is not a market to be avoided since Brexit (some had since put it lower down their priorities no doubt), but rather one worth looking at seriously again. While on the other side of the coin, UK exports to the EU have fallen by a third since 2019 and the EU is by far its most important export market, accounting for over 60% of total international sales. With trade deals with the US (defensive, but avoiding the worst), and India (more wide-ranging and impactful for food and drink) also announced in the last couple of weeks, it seems spring has sprung for international trade! To get in touch with our UK team Contact Us
Low Prices Are Not Enough
In Sweden, discount retail has long been a growing trend through good times and bad: consumers are drawn to chains like Lidl, Rusta, Normal, Dollarstore and Willys. The idea that discount retail equals “low-end” is long outdated. Modern consumers expect more than just low prices. They expect quality, convenience, and a shopping experience. Today’s successful discount chains are retailers that manage expectations while delivering value. Take Willys, a pioneer in this transformation, introducing Modern stores, wide and varied assortments with well known brands, and strong private labels. Lidl has followed a similar path. Once a European chain, it now boasts stores that rival traditional supermarkets in design, experience, and even loyalty. ÖB (Överskottsbolaget), once a powerhouse in Sweden’s discount space, now finds itself adrift. Its brand still resonates with consumers as a low-price leader, yet its turnover has remained flat for a decade. The issue is relevance. The same stores, the same assortment, the same positioning since its start – it’s as if the chain has frozen in time. Meanwhile, competitors have expanded their ranges, reimagined their formats, and repositioned themselves as more than just discount destinations. For ÖB, maintaining a strong price image hasn’t been enough to drive success. We see the same for Danish discounter Coop365 that has copied its competitors but not been able to make the concept relevant even though they have modern stores and a sustainable assortment. They miss out on bringing in major brands and their range is not varied enough in my view.. A good price image might get customers through the door, but it won’t keep them coming back. In today’s market consumers want their discount experience to be efficient, enjoyable, and aligned with their lifestyle. They want stores that understand them. Chains like Dollarstore have responded by broadening assortments and catering to a wider range of needs. Biltema has evolved from a specialist in car parts to a one-stop family destination. And Lidl is no longer just the place for bargain groceries- it’s becoming a reliable weekly staple, building loyalty in a space once dominated by impulse-driven visits. Retailers who fail to evolve will find themselves outpaced not because consumers no longer care about price, but because they care about much more. In the Nordic markets, the future belongs to those who understand that low prices are a must but not enough. Winning means staying relevant, agile, and attuned to a shopper whose expectations never stop changing. If you do not develop continuously the danger is that consumers will leave you for another alternative around the corner – and there are plenty of them. Jakob True Managing Director, Green Seed Nordic
Trust in organic label increased
According to research conducted by IPSOS, the European organic label has gained recognition and trust over the past year. In 2024, 62% of consumers were aware of the label, an increase from 53% in 2023. Trust in the label increased by 19% to 66%.When it comes to choosing organic products, price remains the most important factor for consumers. If organic products were cheaper, eight out of ten consumers would buy them more often. For those who buy organic regularly, health is key (82%), while for those buying organic less frequently, price is key (78%). Taste is the second most important factor for both groups. Despite the growth in organic purchases, the percentage of Dutch people who regularly buy organic products has remained stable at 66%. A tenth never buy organic food and a quarter do so only occasionally. Europe aims to increase the share of organic farmland to 15% by 2030. In the Netherlands, the figure is currently only 4.8%. Despite this, the area of organic farmland in the Netherlands has increased by 9% in the last five years and the organic sector has grown by 42%. Both the Dutch government and Bionext encourage consumers to choose organic products more often, including through the campaign ‘The most beautiful message is organic from Europe’. To get in touch with our Netherlands team Contact Us
Over 55: the real driving force of Italian mass consumption
They are responsible for purchasing in over half of families and spend more on average, stimulating 54% of the value of mass consumption. (YouGov) According to a global study by Bcg, women manage approximately 32,000 billion dollars of spending globally and according to Nielsen, in the next five years 75% of discretionary spending will depend on them. Furthermore, in 51% of Italian families, the person in charge of purchases is at least 55 years old. This data was revealed through a survey conducted on the Italian YouGov consumer panel. Over 55s also buy consumer goods for their grandchildren According to the research, the average expenditure per buyer over 55 per year is 4,700 euros, far higher than the 3,900 euros of the younger age groups. It should however also be noted that over 4 out of 10 people in this senior group support the non-cohabiting families of their adult children by purchasing consumer products for their grandchildren (42%) or for their children (13%). In this case they do so approximately five times a month for their grandchildren and four times for their non-cohabiting adult children. When purchasing, the characteristics that matter most are whether the grandchildren like them, the absence of additives or preservatives and the origin (Italian) of the ingredients. Following this, attention is paid to the brand, organic ingredients, quality flavour, and nutritional content. Here promotions and low prices are much less important than they are when purchasing for cohabiting family members. Among the most purchased categories for grandchildren are biscuits and industrial pastries, fruit juices, yogurt and fresh desserts, chocolate, packaged ice cream, while for non-cohabiting children the choices fall on fresh (cheese, cured meats, etc.), fruit and vegetables. More time to shop and bigger budgets lead to less impulsive buying Overall, in line with the evidence above, we are talking about a target that attributes an important role both to the home (91% of respondents declare themselves attentive to cleanliness and hygiene) and to the family, with 88% agreeing in indicating the time spent with the latter as their favourite activity. All combined with an active social life, where time is also spent outside the home: 85% meet friends, 57% eat out while 47% practice physical or sporting activity. In terms of spending, shoppers over 55 are more oriented towards quality, which prevails over price as a criterion of choice for 52% (while 59% of under 55s prefer to spend less). There is also room for the purchase of Italian products (81% favour them compared to 70% of younger people) and locally sourced products (73% vs 64%). Time available also influences choices: only 24% say they have little time to dedicate to daily shopping, compared to 38% of under 55s. All in all, this group presents a very good opportunity for the food industry. To get in touch with our Italy team Contact Us
Colruyt Group launches plant-based private label Boni Plan’t
A strong plant-based proposition is high on the agenda for many multiples. Delhaize was the first to roll out their ambitions some 3 years ago followed by Albert Heijn with their Terra range, also in Belgium. This time Colruyt is launching a new sub-brand within their private label Boni Selection. In addition to Boni Eco and Boni Bio, Boni Plan’t is now on the shelves: plant-based products, extra recognisable through a new packaging. The main goal is to make plant-based food accessible through an affordable, varied and tasty range. It involves some 100 products, from plant-based drinks and desserts to preserves, meat substitutes, spreads and dry foods. In the first half of this year, the retailer will add new references such as the 100% peanut butter crunchy and creamy variant, plant-based cream and some plant-based alternatives to yoghurt. The range will continue to grow thereafter, both in depth and breadth. During the launch period, shoppers can save points for free Boni Plan’t products in the Xtra app. With the new private label, Colruyt Group is not only targeting people who eat exclusively vegetarian or vegan, but also the ever-growing group of flexitarians, who are looking for a combination of animal and plant-based products in their weekly menu. ‘We find that it is often still a challenge for people to find their way around the plant-based offer in the supermarket. With our Boni Plan’t range and the communication around it, we want to inspire customers and show them that with small adjustments you can also eat plant-based food more easily,’ says Ilka Lannau, who is responsible for private labels at Colruyt Group. To make plant-based eating extra inspiring, Colruyt collaborated with recipe developers. They created accessible and inviting recipes that appear on Boni Plan’t packaging and in the Xtra app. To get in touch with our Belgium team Contact Us
Food trends for 2025: Fast flavour explosions, snacking and everyday fusion
ICA Sweden has publicized it´s annual Trend report 2025. The Swedes are ready to take their taste buds on a journey – and this is not only a culinary novelty, but also a signal to the grocery store about what will drive sales forward. Quick taste: Increased usage of for example, miso, crispy chili oil and furikake in everything from soups to salad dressings. And the love for quick sauces with a lot of umami and flavour continues. Some of the flavour enhancers have turned from being specialty foods into becoming commodities. Snacking: Healthy and creative snacking like hummus bars that are easy to take with you, creative toppings on egg halves and cottage cheese. It started in restaurants and is now in retail. Back to basic: Raw materials , fresh ingredients – especially vegetables – take the main role in our meals, this at the same time as we hopefully get a little more money to spend. Fusion with a twist: Mixing the food traditions of different countries to create new taste experiences. Pasta carbonara flavored with miso, banh mi tacos, or a tandoori pizza. Imperfection: After years of striving for perfection on social media and in the kitchen, we’re ready for a more relaxed approach. 2025 will be the year we embrace the personal and authentic. To invite the neighbours over for a pie with burnt edges, sloppily arranged pasta or an improvised recipe with what is in the fridge? But a key question is if the Swedes can afford the new trends as costs have exploded and overall, the biggest trend right now is “Low prices”! To get in touch with our Nordic team Contact Us
The boom in plant-based foods – What opportunities still exist?
I started working here at Green Seed Germany 18 years ago. Ever since then, plant-based has been a focus category for our office, even if this food category did virtually not exist as such back then. Today, the German market for plant-based food products is worth over €2bn. A large amount of food start-ups – 1,987 to be precise – are in business in this segment. Meat alternatives (approx. € 1bn) and plant-based milk (approx. € 800m) are the most important and competitive sub-segments, but increasingly saturated. Many brands have come and gone. Nevertheless, international companies are still interested in entering the plant-based market – we are contacted for help on a regular basis. Apart from “how long does it take to get on shelf?”, most questions are centred around these topics: 1. Which are the current trends and drivers we can make use of? 2. Yes, we are late to the party, but is there still room to grow? 3. We know Germany is difficult, but how can we enter and develop this market successfully? A detailed answer to these questions would obviously go beyond the scope of this article, but let me at least share a few insights: Current trends and drivers The continuous growth of plant-based products in Germany can be attributed to several key factors: Health Consciousness: An increasing number of consumers are adopting plant-based diets due to the associated health benefits. This trend has started well before the pandemic. Environment: Germans have always been very environmentally conscious. Plant-based is seen as a way to reduce greenhouse gas emissions, conserve water and lower land use. Animal Welfare: Ethical concerns regarding the treatment of animals in industrial farming have driven a significant portion of the population to turn to plant-based alternatives. Innovative Products: The market has seen an influx of those. They cater to diverse taste preferences and dietary requirements, making it easier for consumers to make the switch. A restriction to the above is price. Overall, Germans are once again focussing stronger on price and are not open to expensive, new innovations. Room for growth in the plant-based food market As the plant-based food market is continuously evolving, there are several opportunities for growth and expansion. Although plant-based food products are becoming more mainstream, they are often priced higher than their animal-based counterparts. German consumers are very price sensitive, i.e. making these products more affordable and accessible is vital to achieve wider acceptance. Many players are focussing their efforts on economies of scale and continued innovation in production processes. Even in the largest sub-category, meat alternatives, there is still potential for expanding product variety, with improved taste, texture and a cleaner ingredient list. Within dairy, cheese alternatives are still underrepresented as well as plant-based spreads or desserts – getting the flavour right will open doors. In virtually every food category you can find a few blank spots to fill a gap, if you analyse the segment and examine the existing product ranges closely. However, wait a bit until you launch frozen meat alternatives. Recent listings and tests from Quorn and Like (Livekindly) have not been encouraging. It will be interesting to monitor the impact that new technologies and processes such as cell-cultured, 3D print and fermentation will have on the plant-based market. Practical advice We are all in agreement that Germany is a difficult market, but many companies have managed to succeed. Here some hands-on advice how to overcome a few barriers based on observation as well as experience: Carefully analyse your competitionYou might not be able to play on the same USPs like in your domestic or other export markets. Send only final versions of plant-based food samples If you are currently improving taste and texture, finish developing this 2.0 version. Only then send samples to buyers. Otherwise, you will risk that they reject your product based on taste and texture performance. It is difficult to get a second chance in the short-term. Financial muscle for the German market Ensure you have a solid financial strategy to be able to maintain the momentum once you achieve listings. You need a budget to support your products on shelf and to keep your listings, in particular with the Edeka and Rewe independents, which require a field sales force. If you are a brand, you need enough financial scope for substantial brand building. Timing is everything As in any other category, buyers and consumers alike need to be open for new concepts. Mycoprotein-based products have been around for decades in the UK. In Germany, this ingredient is becoming increasingly important as a sustainable source of protein, particularly in the area of meat alternatives. This advice is obviously valid beyond the plant-based food category. If you have any questions or want to obtain more insights, please get in touch with me: nguenther@greenseedgroup.de Nicole Guenther Managing Director, Green Seed Germany Source market data: Lebensmittel Zeitung January 17, 2025
Enthusiasm for a more plant-based diet
A new survey conducted by Kieskompas (Dutch Research company specialised in public opinion research and voter analysis) shows that 20% of young Dutch want to become vegetarian. It also shows that many Dutch people support a more plant-based diet. The research was commissioned by ProVeg Netherlands and involved over 9,000 people. The aim of the study was to map the ‘Dutch plant-based potential’. The analysis shows that the popularity of a plant-based diet is not limited to young people, but is widespread across the demographics of the study participants. The transition to a more plant-based diet is supported by two-thirds of the Dutch population. According to the report, more than half of the Dutch population has either reduced or completely eliminated meat consumption from thjeir diet. The group of flexitarians has grown to 45%, while 2% are vegans and 7% are vegetarians. Meat eaters (47%) make up the remaining group. Half of the Dutch population who do not identify themselves as vegans or vegetarians state that they would eat less meat. Of the same group, 16% say they would like to become a vegetarian. The main reasons given for the reduction or elimination of animal products are: reducing animal suffering, preventing deforestation, preserving wild animal and plant species and protecting fish populations. If people did switch to a more plant-based diet, meat consumption could fall by 30%. This would result in CO2 savings of 1.6 megatonnes per year. This is a third of the government’s target for Dutch livestock production by 2030. “The existing desire to eat more plant-based food is very significant. This shows that without forcing or convincing anyone, it is possible to make the Netherlands much more plant-based. It’s up to NGOs, governments and companies to help this group make what they want happen,” says Pablo Moleman, strategic director of ProVeg Netherlands. To get in touch with our Netherlands team Contact Us
Nutrition Trends 2025 – Key Insights for the German Market
We are pleased to share the key findings from the Nutrition Trends 2025 report by NUTRITION HUB, Germany’s largest network for nutrition experts, in collaboration with the Federal Center for Nutrition (BZfE), the Dr. Rainer-Wild Foundation, EIT FOOD, and the Baden-Wuerttemberg Cooperative State University (DHBW) Heilbronn. These insights highlight major consumer shifts and offer valuable guidance for international food & drink manufacturers looking to develop business in the German market. Top Nutrition Trends for 2025 1. Plant-Based and Flexitarian Diets Consumers are increasingly favouring plant-based foods while still allowing for occasional meat consumption. High-quality plant proteins, innovative meat alternatives, and natural ingredients are in high demand 2. Personalised Nutrition Individualised nutrition is gaining momentum, with apps and wearables enabling customised dietary solutions. – Functional ingredients tailored to specific health needs open up new market segments 3. Sustainable and Climate-Friendly Nutrition Consumers want food that benefits both their health and the environment. Sustainable packaging, regional sourcing, and transparent supply chains are key factors. – Position sustainability at the core of your brand messaging and develop eco-friendly products 4. Functional Nutrition Foods with added health benefits, such as enriched products and supplements, are on the rise. – Functional ingredients like probiotics, omega-3s, and plant-based proteins are seeing increased demand 5. Gut Health-Focused Nutrition Awareness of gut health is growing, leading to a surge in demand for fermented foods, probiotics, and fibre-rich options. – Incorporate gut-friendly ingredients into existing product lines 6. Blood Sugar-Friendly Nutrition Consumers are looking for products that help regulate blood sugar levels, favouring complex carbohydrates, natural sugar alternatives, and low-glycemic foods. – Sugar-reduced snacks, high-fiber foods, and low-GI alternatives are gaining traction 7. Alcohol-Free and Reduced-Alcohol Beverages Mindful consumption is reshaping the beverage industry, with a growing preference for premium alcohol-free wines, beers, and spirits. – Innovative recipes and natural ingredients can help international brands succeed in this space 8. “Terrapy” – A Return to Natural Food “Terrapy” refers to the shift towards minimally processed, artisanal, and naturally producedfoods. Consumers favor short ingredient lists, traditional production methods, and regional sourcing. – Highlighting craftsmanship and natural ingredients can be a key selling point 9. Snackification The traditional three-meal structure is giving way to multiple small meals throughout the day. Healthy, functional snacks are booming – from protein bars to plant-based mini-meals. – Brands that offer nutritious, convenient snacks will have a strong market advantage 10. Mindfulness and Food Education Consumers are becoming more informed about their food choices and expect clear, transparent labeling regarding ingredients and sourcing. – Clear communication, transparent labeling, and sustainable packaging are key factors for success These trends shape the future of food consumption in Germany, presenting opportunities for innovation and adaptation. To get in touch with our Germany team Contact Us
Breakdown of Portugese Retail Market as Mercadona continues to disrupt
The table highlights grocery retailer market shares in Portugal from 2023 to 2024. The major disruption factor has been the increase of Mercadona from 5.9% to 7% share with just 50 stores. The Spanish retailer plans to continue its expansion adding more 10 stores in 2025 and finally entering into Lisbon. It is assured that this trend will continue over the next few years. Jerónimo Martins group through their Pingo Doce shops was the other winner by increasing 0.6% to 21.7% and narrowing the gap to Sonae (Continente stores) whose market share slightly reduced to 26.6%. The table doesn’t reflect yet the acquisition of Minipreço by Auchan. Their combined share of 6.7% places them at the same level as Intermarché. Both groups are losers in this process. Also worth noting is that Aldi, despite its efforts and shop openings is still below the 3% mark, which means their progression in the Portuguese market is lagging behind expectations. Other retailers such as Leclerc or El Corte Inglês are also present in the market but their market shares are less than 1.5%. To get in touch with our Portugal team Contact Us
Gen Z may be the saviour of the UK Organic Market as volume and value sales increases outpace standard products
Value sales of organic food and drink have doubled over the last 10 years and were up 7.3% this year, according to the 26th Organic Market Report 2025 from Soil Association Certification. The market is now worth £3.7 billion and sales have increased across all major channels, with supermarket sales increasing 8%. Unit sales of organics have also grown more than four times more than those of standard products. In recent periods the organic market has suffered during the cost of living crisis, and has struggled to match the growth and relative importance the sector has in some other European markets, but recent performance is now painting a much more positive picture of future potential, according to Soil Association Certification commercial and marketing director Georgia Phillips: “The signs are strong that this growth is here to stay with increasing consumer demand, particularly from Gen Z shoppers who are increasingly motivated by healthy and sustainable choices and seeking out organic products.” Organic dairy and produce categories continue to have the highest share of organic sales – accounting for almost half (49%) of all organic sales made through major retail. These are viewed as the traditional entry points into the category. The online channel also continues to perform strongly, with organic twice as likely to be shopped digitally through the grocery multiples, and retailers like Ocado overindexing on organic. Home delivery, which has always been an important channel for organic sales – making up 15% of the market – is now back in growth, seeing a 3% uplift. To get in touch with our UK team Contact Us
America’s #1 Natural Products Trade Show: Expo West 2025: Key Themes and Insights
Expo West, the premier natural foods expo, took place from March 4-7, 2025, at the Anaheim Convention Center in California. This year’s event drew over 65,000 attendees and featured more than 3,200 exhibitors from around the globe. The expo served as a dynamic meeting ground for brands, retail buyers, investors, media, and industry leaders within the CPG ecosystem. The combination of new ideas, great food and beverages, emerging trends, and the Southern California sunshine made it an inspiring experience. Trade show attendance is a critical component of the trade marketing plan when launching in the US market. Our Green Seed sales and marketing team support our client brands exhibiting at the show, making introductions to important retail buyers and facilitating networking opportunities that help drive US business growth. Personally, having attended Expo West for 13 consecutive years (with the exception of 2021 due to COVID), I wanted to share key observations from this year’s event: 1. A New Era of Discipline A noticeable shift in industry dialogue defined this year’s show. Brands are increasingly focused on unit economics, retailer profitability, and strategic scaling. The once-prevalent “growth at all costs” mindset has been replaced by a more disciplined approach to expansion. With a sharper focus on differentiated value propositions, consumer engagement, and financial sustainability, this newfound discipline is setting the stage for a stronger generation of brands in the years ahead. 2. Navigating Uncertainty with Agility Economic uncertainty, influenced by shifting government policies, was a major talking point across the show. From tariff fluctuations to rising commodity costs, brands are no longer viewing these challenges as uncontrollable forces. Instead, they are actively scenario-planning, developing agile responses, and adjusting strategies in real time as new clarity emerges. This proactive approach underscores the industry’s resilience and adaptability in a rapidly evolving marketplace. 3. The Rise and Rise of Insurgent Brands One of the most inspiring aspects of this year’s Expo was the continued rise of insurgent brands—companies that have been quietly refining their craft and are now emerging as category leaders. Brands like Rip Van Wafel, Goodles, and Violife exemplify this trend, continuously innovating and strengthening their core offerings while strategically scaling through consumer engagement and selective distribution expansion. These brands are proving that sustained success comes from balancing innovation (on their core and new items) with disciplined execution. 4. Protein in Everything The demand for high-protein products has been growing for years, but the rise of GLP-1 drugs is pushing this trend into overdrive. From protein-dense desserts and yogurts to snacks and ready meals, Expo West was packed with new offerings in this space. A standout newcomer is David, the latest venture from RxBar founder Peter Rahal, which delivers 28g of high-quality protein with only 150 calories—a testament to the continued opportunity for innovation in this category. 5. A Thriving Community Beyond the product trends, one of the most valuable aspects of Expo West remains the connections forged at the event. The show continues to foster a dynamic community where brands, retailers, and industry veterans come together to exchange ideas, offer support, and provide alternative perspectives. The level of engagement from retail buyers this year was particularly notable, signaling that they, too, are prioritizing brands with strong fundamentals and compelling, differentiated offerings. Expo West 2025 reaffirmed that while the natural foods industry continues to evolve, its foundation remains rooted in innovation, discipline, and community. As brands refine their strategies in response to market dynamics, those who embrace financial discipline, strategic agility, and authentic consumer connections will be best positioned for long-term success. Looking forward to seeing how these themes unfold in the coming year! If you have interest in building you US business, exhibiting in any US trade show and would like some inside advice, please email me: sanjay.panchal@greenseedgroup.com Note: All data and observations are based on the Expo West 2025 event held in March 2025.
Opportunities and Challenges in ‘New Meat’ Development
Nicole Günther at Green Seed Germany speaks with Ulrich Strünck, Commercial Director DACH at Redefine Meat, about the opportunities and challenges in this sector. Founded in 2018, Redefine Meat is a food tech company that seeks to revolutionise the meat industry with advanced technologies and sustainable, plant-based ingredients. As a pioneer of the new-meat category, Redefine Meat unveiled the world’s first 3D-printed plant-based, premium-quality steak in 2020. Its technology and processes aim to replicate the texture, flavour and experience of eating animal meat, creating products that span whole cuts, minced and pulled products and even the beloved German Bratwurst! What state are we now at in terms of technology for “new meat”? Whilst there were already many different plant-based meat alternatives available, the big missing element was a plant-based version of a whole cut, something that delivers a true meat-eating experience comparable to a steak. Our founders used their knowledge from previous careers in 3D printing and 6 years ago began to develop a technology capable of replicating whole muscle cuts. We’ve since evolved our approach with several patented additive manufacturing processes, such as 3D layering, which allow us to achieve the scale of production necessary for retail distribution. Adopting a flexible approach to ingredient and technology allows for continuous innovation and responsiveness to market demands. What do you see as the opportunities? While the industry has experienced a shake-out and consolidation in brands and products in recent years, plant-based meat alternatives continue to grow in popularity in Germany. According to a 2024 study by Nielsen, sales of meat alternatives in Germany were on the rise by 5.6% in 2024. Falling retail prices also led to a 14.4% increase in sales in volume. As a food tech company, we invest heavily in R&D and have a strong focus on continuous product improvement and launches. Working with various technologies enables us to create a diverse product portfolio comprising various pork, beef and lamb products. Our business will focus on delivering more alternatives to different whole cuts to further penetrate that market and attract the most elusive target consumer – meat lovers. This product delivers a great ‘meaty’ experience and addresses a target audience that is, so far, not very well served by the plant-based meat alternative category. Convenience products are also a huge growth driver for plant-based meat alternatives, and we are partnering with several companies to deliver tasty meat alternatives. What are the challenges in getting permission to operate in different markets? As new-meat is made up of entirely plant-based ingredients, we haven’t faced issues in it passing regulations. We first launched our products through food service to build proof points and demonstrate versatility. Now it’s being served in over 7000 food service locations across Europe which include steakhouses, fine-dining and casual street food restaurants, hotels and catering facilities. Following the growing demand, we successfully launched into retail at the end of 2023. Which particular types of customers do you see as the main areas of opportunity? Whilst vegans and vegetarians are extremely important to us, it’s the flexitarians – people who are consciously reducing their animal meat intake – and meat lovers that offer huge potential. Tastier, meatier, and more in-demand products are now taking centre stage and attracting these consumers to the category. The success of products like the beef flank steak highlights the importance of continuous innovation and quality improvement to retain consumers, encourage repeat purchases and expand the market. Ultimately, we want to be where meat is being consumed – in food service, butchers, supermarkets and wholesalers. We are working with our partners to integrate change, for example, we recommend featuring our beef flank steak under the steak section of a menu, or in the meat section of a supermarket.
Who Wins, David or Goliath?
When the office of one of our smaller markets – Green Seed Nordic, based in Denmark – shared their outrage at Donald Trump demanding Greenland, the Green Seed Group WhatsApp group went into overdrive. As a close international network, we share clients and ideas, and support one another in many different ways. We even considered renaming ourselves the ‘Greenland Group’ for a day in solidarity! This made me think about how little v large operates in the food and drink industry and whether, and if so, how size matters. Markets Firstly in choice of export markets. If there’s one clear lesson we can draw from our experience it’s that size of market does not necessarily equal sales potential. A decade or more ago it was fashionable to chase BRIC markets and UK government initiatives and subsidies focused much more on markets like China than those nearer home. Yet our exports to markets like little old Belgium were still greater than the total shipped to Brazil, Russia, India and China. And trade focused smaller countries often punch above their weight with their own exports too – The Netherlands being an excellent example. Geographical proximity helps. One of the key arguments put forward against Brexit was that countries naturally tend to do much more business with closer markets (whatever the potential attractiveness Trans Pacific trade partnerships). It’s easier to understand markets and customers you can visit in hours, and easier for EU retailers looking for innovation to take a look at what’s new in in the UK to identify trends and source potential suppliers. Direct supply to end customers can also be possible, leading to stronger relationships and more competitive pricing. Better to take a laser-like focus on a niche opportunity and execute well, than be seduced by markets with much bigger populations, but a harder to reach target demographic. Brands Turning to brands, in the UK recent history for smaller challenger brands has been, appropriately, ‘challenging’. But their prospects might be improving. Pre pandemic, legacy players found organic real growth hard to come by. New brands began to pop up offering ranges with a greater emphasis on sustainability, clean ingredients, health and plant-based solutions, highlighting their credentials vs the less than ideal propositions of the Goliaths in their category. And they could fight on a more level playing field of social media and direct consumer engagement, which began to assume greater importance over traditional and costly advertising. Covid came, which boosted online sales for many. But more impactful was the real hit to hard won retail distribution gains as supermarkets delisted smaller companies while boosting order volumes of larger brands to ensure product availability. Since then inflation and cost of living pressures have been the dominant themes in grocery, putting more pressure on (often) higher priced products from challengers. But things are beginning to change: retailers have realised that fighting on price alone just plays into the hands of the discounters, that they need to show they offer something different and communicate that to their shoppers. This is where challenger brands can begin to help them to attract new shoppers to their stores with innovation or better for you solutions. What’s more, after some criticism of earlier versions producing very few permanent listings, there now seems to be some momentum behind incubator and accelerator schemes offered by the multiples to help brands develop and learn how to do business effectively, and retailers to test innovation, suggesting it’s more about longer term business development for all, than just a PR tool for big retail. 2025 will be the year of the challenger brand – or so believes YF, a consultancy previously called Young Foodies. Whether that’s a well calculated prediction or just an expression of determination, we’ll have to wait and see. For those that have something genuinely different, can demonstrate agility and powerful consumer connections – and with a strong financial base – it just could be. Size alone won’t be the deciding factor. Simon Waringswaring@greenseedgroup.co.uk
Producers of plant-based products: at the crossroads of 2 major opportunities
The French “Conseil d’Etat” recently annulled two decrees banning the use of butchery terms for plant-based protein products, marking a victory for plant-based alternatives suppliers. Companies and professional associations expressed relief at this decision, denouncing the injustice of the ban that targeted only French producers. On January 20, Carrefour unveiled its goal to double its revenue from “free-from” products (gluten, nitrites, lactose, alcohol) within three years. It aims to reach one billion euros by 2030 and plans to offer the widest range of “free-from” products. The retailer will rely on a coalition of dairy (Candia), grocery (Nutrition & Santé, Gerblé), charcuterie (Herta, Fleury Michon, Groupe Aoste, and Cooperl/Madrange), and wine and beer (Brasseries Kronenbourg, Cordier Bonne Nouvelle, and its own subsidiary Maison Johanès Boubée) manufacturers to develop sales of “free-from” products. Carrefour is also committed to a plan to develop plant-based alternatives in its aisles by 2026. Why this is good news? The Council of State’s decision is good news for Carrefour as it allows the continued use of butchery terms for plant-based protein products. This facilitates the marketing and understanding of products by consumers, which aligns with Carrefour’s goal of developing plant-based alternatives in its aisles. By annulling the decrees, the Council of State indirectly supports Carrefour’s initiatives to offer a wide range of plant-based and “free-from” products, meeting the growing consumer demand for healthier and more diverse food options. This decision also represents a great opportunity for all plant-based product manufacturers, allowing them to better market their products and reach a wider audience. To get in touch with our France team Contact Us
Sustainability and health in the food and drink industry: reality or lip service?
What Sustainability and Health is there in the Food and Drink Industry? Supermarkets, food manufacturers and fast food chains are making limited progress on health and sustainability, according to research by the Belgian health institute Sciensano as part of the European FEAST project. This process results in the development of scorecards for each company to enable comparison at a sector level both nationally and internationally. The project clearly highlights areas in which companies are demonstrating leadership in the prevention of obesity, and indicates specific areas for improvement at a company, sector and industry level. This scientific survey regularly evaluates the largest Belgian, French and European food companies. Unhealthy food environments are a major factor influencing obesity. Moreover, the food system in Belgium is responsible for about 20 % of total greenhouse gas emissions. Therefore, for the second time, Sciensano examined the commitments of 33 supermarket chains, fast food restaurants and food producers in terms of nutrition, health and sustainability. The first study took place in 2019, unfortunately the institute does not see much improvement since. ‘Progress usually remains limited,’ says researcher Stefanie Vandevijvere. ‘There are also companies doing worse. Overall, the food environment remains unhealthy, and we know this leads to unhealthy eating patterns. So it is up to the government to take the necessary measures to make the food environment healthier.’ At supermarkets, the study sees a steady improvement in the nutritional quality of private label products. However, unhealthy food still dominates the shelves. Information on labels has improved, but the composition of food products has not become healthier. Fast food chains communicate more about the nutritional information, however overall improvement is very limited. Commitments to reduce the marketing of unhealthy meals are lacking. On top of this the supply of fast food in Belgium has increased significantly. Some good news hence: on sustainability many companies do score better. That makes sense, says Vandevijvere: ‘For sustainability, there is an economic incentive: using less energy or packaging material also reduces the costs for the company.’ For health, that economic incentive is mostly missing. The study also concludes there is no relationship between scores for sustainability and scores for healthy eating. Which companies are showing the way? Among supermarkets, Delhaize leads the way, with a score of 65%, followed by Colruyt (53%) and Lidl (51%), whilst Aldi (42%) and Carrefour (41%) lag behind. The sector’s poor median score of 51% shows that substantial improvement is needed. Among manufacturers, Danone leads the rankings, with a score of 82%, followed by Nestlé, McCain and Coca-Cola. McDonald’s is the top student in the class of fast food restaurants – albeit only with a score of only 32%, while the recently declared bankrupt Lunch Garden is the straggler with barely 2%. Sciensano concludes that appropriate regulation by governments is needed to make progress on health, starting with the sectors and areas that are the worst performers, such as fast food restaurants. Also focussing on advertising which still promotes unhealthy food and often targets children, should be a attention point. Food and drink industry producers’ economic challenges of the last years have been tough, with inflation and increasing labour costs, high raw material prices and energy costs. Combining this with investments on health and sustainability remains the challenge, according to Philip Horemans of Green Seed Belgium. “Especially in health, companies need to see the USP, the retailers and consumers the added value. With an economic incentive via correct pricing the process of health improvement will be accelerated”. To get in touch with our Belgium team Contact Us
New “humanised” edible alternatives for Spanish pets
With pet snacks rocketing at a growth rate in 2024 of +35% vs 2023, while normal pet food is also growing at around +10% and new healthy alternatives (pre and probiotics, non GMO, even gluten free and sugarfree or added vitamins…) now appearing in the market, we now want to focus on new subcategories: dairy and ice cream alternatives. It’s amazing to see two different companies already in the Spanish trade with yogurts for dogs and cats. Dairy pet, a startup company born in 2022 has launched a pasteurised pet option of yoghourt, under the brand Yowup! in pouch packaging of 115g and 85g made from cow’s milk, seeds and cereals with an omnichannel strategy. As for pet ice creams, dogs can now enjoy cream, banana or sausage/cheese ice creams in handy pouches of 50g launched by Pampaspet. Healthy and indulgent pet food alternatives are here to stay and develop without boundaries. How could we help our pet owners to develop the appetite and find those alternatives on the shelves? To get in touch with our Spain team Contact Us
The impact of artificial intelligence on brands and how they communicate with consumers
A survey by Bain & Company highlights a country suspended between hope and fear. While AI promises to transform work and communication, consumers express concerns. The way brands communicate with consumers is changing rapidly, and data from the recent research by Bain & Company confirms this transformation. According to the survey, 96% of Italians are keen to continue communicating with their favourite brands however the channels used to do so are evolving. WhatsApp and social media are gaining more and more ground, with over 40% of Italians preferring to use these means to interact with brands. Despite this evolution, email remains the preferred means of communication for 80% of the population, highlighting how tradition and innovation are blending in the modern communications landscape. In this new context, Generative AI is playing a key role. Over 70% of Italians appreciate advertisements created through artificial intelligence, considering such content not only useful but also creative and bold. This shows how AI is becoming a fundamental ally for brands that want to stand out, responding in a more precise and personalised way to the needs of an increasingly demanding public. AI: Change is inevitable If communication evolves, the same goes for the world of work. Artificial intelligence is no longer a choice, but a reality that is rewriting the rules of work and daily interactions. According to the same survey, seven out of ten Italians believe that AI will have a significant impact on the world of work, with young people at the forefront: 82% of young Italians see artificial intelligence as a force for change. This is true not only in advanced technologies, but also in sectors such as gaming, telecommunications, logistics and education, which will undergo profound changes. While on the one hand, AI is seen as a powerful ally in environmental sustainability, with one in two Italians considering it capable of contributing to reducing ecological impact, on the other hand, there is still strong concern regarding ethical implications and privacy. In fact, 85% of Italians express fears related to the use of data and the management of personal information, a sign of how trust in new technologies is a challenge to be faced with care. Robotics: the evolution of human work Robotics, which until recently seemed to belong to the realm of science fiction, is now a reality that is being integrated into the most strategic sectors, such as technology, energy and manufacturing. One in two Italians is convinced that robots can improve their work, with an optimistic vision that especially concerns young people: 64% of the youngest look to the technological future with hope. Robotics not only helps to optimize processes, but also opens the way to new forms of “synthimacy”, or synthetic intimacy, which will see a 41% increase in interest in the coming months. In the end, 82% of young people believe in the AI revolution, 85% fear its implications. This is the contradiction that marks today’s Italy, suspended between extraordinary opportunities and risks that should not be underestimated. The future is already here: will Italy be a leader or a spectator? The answer depends on how we face this technological, ethical and social revolution. There is no longer time to wait. It is time to act. The future will not be a dichotomy between technology and people, but an invitation to build bridges. Seven out of ten people are aware that they are destined to be impacted by Artificial Intelligence. Companies that invest in reskilling their people, while embracing automation, will be able to maximize both technological power and human value. To get in touch with our Italy team Contact Us
Branded Products vs. Private Labels – Why Brands Still Matter!
The German grocery market is witnessing an exciting competition between branded products and private labels. While inflation has boosted private labels, recent developments show that brands remain essential – in fact, they continue to be powerful purchase drivers. Insights from the trade journal Lebensmittel Praxis highlight why brands still hold their ground despite the challenges: The power of brands remains strongBranded products inspire trust and reliability. Consumers are willing to pay for quality and familiar names – especially when the price gap to private labels is small. Private labels grow, but brands hold steadyIn 2023, private labels peaked at 42.2% market share in German grocery retail but have since stagnated, according to NielsenIQ. At the same time, brands are regaining traction through targeted promotions. Discounts and brands as customer magnetsData from Smhaggle, a German app that helps shoppers compare prices by scanning receipts, reveals that brand promotions attract consumers to stores. While private labels offer higher margins, promotions on branded products result in increased basket sizes for retailers. How the economy favours brandsDespite inflation, purchasing power remains stable, and savings rates are high. As consumer confidence grows, branded products could see increased demand. Despite inflation and the rise of private labels, the ‘pull of brands’ persists. Branded products remain powerful market drivers in Germany – after all, even private labels thrive on the reputation of established brands. To get in touch with our Germany team Contact Us
Food Retailing insights in Poland 2024
Leading retail chains in Poland from 2021 to 2023, by revenues (billion PLN) The value of the food sector in Poland should reach ca €70bln in 2024 with a CAGR growth forecast of 5.95% per annum until 2029.Food inflation slowed down over the year to around 3.7% from highs of 11.4% in 2003 and 14.4% in 2022. Although real wage growth reached the highest level during 2024, Poles did not allocate additional funds to consumption but focused on rebuilding savings depleted by previous price increases. With greater pressure on price and promotion, discounters’ share of grocery sales is continuously rising. By 2030, it is forecast to exceed 40% of all grocery sales. According to NIQ (household panel), in 2023 discounters already had 37% and local grocery stores 31% market share; with supermarkets trailing at 14%; drugstore chains, kiosks and petrol stations combined at 12%; and hypermarkets with only 7% share. On-line food retailing grew exponentially during Covid but then scaled back to less than 1% share of the market. This is forecast to triple, reaching nearly 3% in 2027. Consumers, especially Generation Z (and increasingly Generation Alpha) expect solutions that ensure speed and convenience of shopping. Therefore, convenience stores and the online sales channel are gaining in importance. There has been a dynamic development of non-food discounters, such as Pepco, Action or Dealz in recent years. Although their food offer focuses mainly on impulse products, such as sweets, snacks or beverages (including those often unavailable in Poland), during 2024 the impulse category generated over €235mln in sales for these retailers. Fastest-growing Retail chains• Biedronka, owned by Portuguese Jerónimo Martins, is a dominant grocery store with a revenue in 2023 of €20 billion and approximately 3,600 stores across the country 2023. Growth plans include c.150 new store openings per year, future expansion into Slovakia and investments in green energy and ESG solutions.• Lidl, a discounter with around 900 stores and an €8 billion revenue, has the second highest share of revenue in the grocery sector and opens approximately 50 stores per year.• Polish chain Dino has grown rapidly over a three-year period with 2,438 stores nationwide at the end of Q1 2024 and a further 250 openings planned during 2024/25. The company has four logistics centres under construction, adding to the eight already in operation.• Żabka has the largest number of stores, with over 11,000 units operating in Poland. Being a convenience chain, their stores are much smaller than other retailers, with a minimum unit size of 45 sqm. The network is developing through franchising (over 9,000 franchisees), with approximately 50 new stores opened each month. Żabka operates one of the largest autonomous store networks across Europe, Żabka Nano, which uses a camera system and technology based on AI to eliminate both cash registers and staff in stores. The chain is expanding abroad, with first stores already open in Romania. To get in touch with our Poland team Contact Us
Best performing categories in UK grocery and 2025 tips as adventurous home cooking takes off
The best performing category in terms of volume growth in UK grocery last year was herbs and spices. That’s according to The Grocer and NielsenIQ’s review of the year. With an increase of £2.5m kg, the category increased volume sales by 14% over 2024. UK consumers are taking to cooking more adventurous meals at home. East Asian spice mixes, meal kits and cooking sauces have grown strongly (Wagamama’s range of sauces increasing sales by over 100%). Ottolenghi’s sauces launch with Waitrose was also a big hit. And their next big thing we hear could be a Libyan paste called pilpelchuma – a blend of roasted peppers, garlic, cumin, and a fiery hit of chilli. Tipped as the next harissa, look out for that one. Meanwhile Japanese cuisine is rising in popularity, especially with younger consumers. Mintel’s analysis reveals that 18% of all UK consumers have eaten at (or ordered takeaway from) Japanese restaurants, while double that number (36%) of Gen Z consumers have done so. Mintel’s tips for new flavours we will be trying over 2025 include yuzu kosho – a fermented paste made from yuzu peel, chilli peppers and salt – and miso caramel, a savoury umami + sweet blend for adventurous palates! The covid pandemic may thankfully be well behind us, but it seems that the boost to home cooking in the earlier part of the decade has now taken hold, especially as consumers look to replicate quality eating out experiences with lower cost but still exciting flavours cooked at home while budgets remain tight. To get in touch with our UK team Contact Us
Don’t forget about us! Underexploited opportunities for food brands.
A recent GFK study in Belgium showed that 59% of all consumers are over 50 and responsible for 62% of total FMCG sales value, and they drive the value and volume growth. In the coming decades the population will age further making these older consumers even more important. Whilst this is a Belgian study, this trend is valid for many Western countries. But has this group become the key audience for food producers? New product launches are still aiming predominantly at Millennials or families with children. Product launches are supported on the latest social media channels, not exactly where the older generation is most active, and start-ups often focus on the newest and trendy product for the 18-35 year group. A growing consumer group combined with a buying power which is often higher should make these senior citizens an interesting target group. Obviously, over 50 is too large a group to capture as one consumer. The 50 – 75 bracket has different needs than a senior of 85+. The food and drink industry is witnessing a significant shift in consumer demographics, with the ageing population representing a growing and influential market segment. As the global population continues to age, there is an increasing demand for products that cater to the unique needs and preferences of older consumers. Product development in this sector is not only essential but also an opportunity to enhance the well-being, satisfaction, and convenience of older adults. Older consumers often face changes in their dietary requirements due to health conditions, reduced mobility, or altered taste perceptions. Nutritional needs may shift towards products that support bone health, heart health, cognitive function and digestion. Furthermore, many older adults have specific dietary restrictions due to medical conditions such as diabetes, hypertension or lactose intolerance. As a result, there is an increasing demand for food and drink products that are low in sodium, sugar or fat, and that are fortified with essential vitamins and minerals. Companies must innovate to create more user-friendly options, such as ready-to-eat meals, snack packs and liquid supplements. But don’t only focus on the functional part of food and drink. This age group wants to enjoy life, to eat quality and tasty products and is prepared to pay for it. For retailers these products can offer healthy cash margins. And why not premium indulgence products? All year round, not only at Xmas. Packaging and labelling will need to follow. Clear, easy-to-read labels with simple nutritional information and instructions can significantly enhance the shopping experience for older consumers. The need for product development aimed at older consumers is not merely a matter of addressing health concerns. It’s about improving their quality of life and ensuring they can continue to enjoy food and beverages without compromising their well-being. By investing in research and development, food and drink companies can better serve this growing demographic, create new market opportunities, and build a loyal customer base. So, to food and drink producers and their NPD team: the development of flavourful, yet healthy options, is welcomed. The mature consumer such as the undersigned will thank you. Happy New Year! Philip Horemans To get in touch with our Belgium team Contact Us
The latest sales trends and developments
Distrifood magazine provides a monthly overview of supermarket figures based on data from market research company GfK. This includes developments such as total supermarket sales, online sales, Sunday and evening sales and the share of private label. So far this year, supermarket sales have grown moderately. There have even been periods where sales have been lower than last year. This is problematic in the light of food inflation. Periods 6 and 7 have been the weakest so far for Dutch supermarkets and the impact of the tobacco ban, which came into effect on 1 July, is clearly reflected in the figures. However, a slight recovery in sales can be seen in period 8. Online sales as a proportion of supermarket sales have started to rise again, peaking at 8.7% in January. For the current year, this share has fluctuated between 7.9% and 8.7 %. The online share has increased from 7.7 % a year ago to 8.0 % now. With a revenue share of 7.9 % up to period 7 and several times above 8 %, Sunday shopping is becoming increasingly important in the sector. Conversely, the importance of promotions in supermarket sales has decreased compared to last year. Period 6 had the lowest share, while it increased slightly in periods 7 and 8. The share of private label continues to grow, exceeding 50 % in 2023. In addition, the importance of evening sales increases, reaching 8.3% in the current year to period 8 inclusive, and a peak of 8.7% last summer. To get in touch with our Netherlands team Contact Us
Colruyt Group acquires Delitraiteur from Louis Delhaize Group
Founded in 1990, Delitraiteur is the specialist in meal solutions with more than 200 freshly prepared dishes. Delitraiteur is open 7 days a week, from 7.30am to 10pm. In addition to its unique range of meals, Delitraiteur offers a wide range of food products, including more than 1.000 Belgian products and numerous exclusive items. Today there are 40 shops in Belgium and one in Luxembourg, all but three of which are operated by independent entrepreneurs. This acquisition allows Colruyt Group to grow further and focus more on an offer that provides convenience to the customer. This therefore fits within the group’s strategic objectives. Jo Willemyns, COO Food Retail Colruyt Group: “We see that customers have a greater need for convenience and are looking for easy and healthy meals. In the past few years, we have already put a lot of effort into this. We increased our presence in the cities, we opened Okay Direct where customers can do their shopping 24/7, we expanded the fresh range at Okay and we recently participated in BON – the gourmet bar offering high-quality, home-made on-the-go products. Acquisitions are also part of our growth strategy. The acquisition of Delitraiteur will allow Colruyt Group to focus even more on a convenience offer, with ready-to-heat and ready-to-eat meals.” Colruyt Group reached an agreement to acquire 100% of Delitraiteur’s shares. All shops will remain and the brand name will also be retained. The current management will remain on board to further pursue the unique and highly distinctive concept in the market together with Colruyt Group. “Delitraiteur is a nice retailer, driven by convenience and innovative products. As such it is an interesting outlet for new brands entering the market. However for international players dealing directly with the Belgian market, the volume is not always there, which often makes it logistically not viable. Hopefully an integration into the Colruyt Group could offer the scale and volume needed”, says Philip Horemans, MD of Green Seed Belgium. The acquisition has yet to be approved by the Belgian Competition Authority. Colruyt expects to complete the deal in the first quarter of 2025. To get in touch with our Belgium team Contact Us
Nutrition Report 2024 – Trends and Opportunities in the German Food Retail Market
The BMEL Nutrition Report 2024, conducted annually by the market research institute Forsa on behalf of the Federal Ministry of Food and Agriculture (BMEL) surveys around 1,000 citizens aged 14 and over to provide a current picture of eating and shopping habits in Germany. The findings clearly show that plant-based nutrition remains a stable trend. Alternatives to animal products have become well-established in German kitchens, offering significant opportunities for companies entering the German market.Here are the key insights from the report: Focus on animal welfare and organic products65% of Germans now pay attention to the animal welfare label when shopping, almost twice as many as in 2015. The EU organic label is also gaining importance, with 59% of consumers actively looking for it, compared to 47% in 2015. Growing acceptance of plant-based alternativesThe proportion of Germans regularly buying vegetarian or vegan alternatives has significantly increased. 39% of respondents now regularly choose these products, a 10 percentage point increase since 2020. Among 14- to 29-year-olds, 58% regularly purchase plant-based alternatives, and 18% consume these products daily. Flexitarians on the rise41% of the population identify as flexitarian, actively contributing to a more plant-based diet. Together with vegetarians and vegans, these groups now represent more than half of German consumers, creating a strong market for producers of meat alternatives. Health and taste remain central99% of respondents cited taste as the most important factor when choosing food. Health is also a top priority, especially among women: 97% of women emphasize healthy eating, compared to 85% of men. Decline in meat consumptionOnly 23% of Germans eat meat or sausage daily, an 11 percentage point decrease since 2015. At the same time, per capita consumption of meat and sausages has dropped to the lowest level since records began, now at 51.6 kg per year, which is 9.3 kg less than in 2018. Nutri-Score as a key guideThe Nutri-Score has become an important purchasing guide for German consumers. 88% of respondents have noticed it on packaging, and 37% say it directly influences their buying decisions. Increasing importance of regional and seasonal products77% of Germans pay closer attention to buying regional products, and 80% prioritize seasonal fruits and vegetables. Demand for plant-based options outside the homeThe plant-based trend extends to out-of-home dining: 37% of respondents want to see more vegetarian or vegan options in restaurants, canteens, and from delivery services. Consumer support for better animal welfare and organic farmingGermans expect more political commitment to improving animal welfare and sustainable agriculture. 88% support the expansion of organic farming, while 91% are willing to pay more for meat if the money goes directly to farmers. The Nutrition Report 2024 shows that the German food market is moving steadily towards plant-based and sustainable products. This creates tremendous opportunities for foreign companies in the food & drink sector to establish themselves in Germany with innovative and health-conscious offerings. To get in touch with our Germany team Contact Us
Revolutionising Food Retail: The Emergence of Aura Retail
The recent alliance between Intermarché, Auchan, and Casino under the name Aura Retail is creating significant ripples in the French food retail sector. By combining resources, this alliance brings an unprecedented strength to the market, setting a new benchmark with an impressive €62.5 billion in annual revenue. As it steps into the arena, Aura Retail promises transformative changes in both pricing and strategy across the French grocery landscape. Strength in Numbers: Market Control and Reach With a collective hold over 29% of the food retail market, Aura Retail has become the top purchasing group in France, even surpassing longstanding leaders such as E. Leclerc. The alliance now oversees 15,000 stores globally, with the majority—13,000 stores—located within France. This expansive reach not only increases their market influence but also positions Aura Retail as a major player in the shaping of food pricing and competitive strategies. Streamlining Purchases for Competitive Pricing Aura Retail’s food purchasing operations, led primarily by Intermarché, have introduced a system that centralizes purchasing across three dedicated centres, overseeing tenders for 215 major brands and private labels. This streamlined approach allows the alliance to negotiate better deals with suppliers, potentially reducing costs that can benefit consumers. The impact of such centralized purchasing could prove vital as inflation pressures continue to affect the retail market, making affordable food options a priority for French families. Elevating Private Labels to New Heights With the growing consumer interest in private labels, Aura Retail is focusing on this segment by centralizing store brand tenders. This shift not only enhances competitiveness but also boosts profitability within the private label sector. According to recent 2024 studies, private labels now represent over 35% of food sales in France, marking a significant increase from previous years. By harnessing this trend, Aura Retail aims to bring high-quality private label options to a broader audience, which can further strengthen customer loyalty. Expanding Influence Beyond Borders: Partnerships with Everest and Epic Aura Retail’s ambitions extend beyond French borders through partnerships with international alliances, such as Everest and Epic, adding leverage to its bargaining power. These partnerships bring Aura Retail in direct collaboration with 40 global FMCG giants, strengthening their position when negotiating international contracts and creating opportunities to expand the presence of French retail products abroad. To safeguard small and local producers, the alliance has pledged to negotiate through separate channels, ensuring that smaller suppliers maintain a foothold and remain competitive in this evolving environment. Looking Ahead: The Future of French Food Retail The Aura Retail alliance marks a pivotal moment in the French food retail sector, showcasing a new way to leverage cooperative strength in a highly competitive landscape. As they navigate new challenges and opportunities, the alliance’s impact on market dynamics could bring lasting changes for both consumers and suppliers. In conclusion, Aura Retail’s strategic moves reflect a broader trend within the industry toward collaboration and centralization, setting a precedent that may shape the future of French retail. Whether this approach will prove sustainable remains to be seen, but one thing is clear—Aura Retail has positioned itself as a key player to watch in the years ahead. To get in touch with our France team Contact Us
Frozen Foods, a category with a real future
The Frozen Food retail sector in Portugal increased by 13% in value to £1.57 billion over the last year, and by 6% in volume. Consumers recognize that frozen foods can last much longer if kept under correct conditions while also saving them time by reducing the frequency of shopping trips. Moreover, we have to add that they are now often more fresh, sustainable and packaged in an eco-friendly way. For example frozen fish certifications such as the MSC (Marine Stweardship Council) reassure consumers that catch practices are sustainable. And these combined with FAS practices (Frozen @ Sea) provide evidence that the fish they will eat is safe and as fresh as it gets. In terms of preservation, blast freezing processes retain the freshness of the foods from the collection point or production date. The growing concerns with eco-friendly packaging have driven manufacturers and retailers to demand FSC Certification. Another increasingly hot topic today has to do with food waste. Recent research demonstrates that it is possible to refreeze the product after thawing, provided adequate defrosting processes were used, which is particularly important for raw products. So, consumers have enough time to consume due to longer shelf lives and can refreeze part of the raw ingredients which have been thawed. A great advantage when compared to chilled foods as far as food waste is concerned. Other than the traditional categories such as raw foods, ice cream or vegetables, ready meals and meal components are increasing their share in the frozen aisle. The challenge for manufacturers is that the freezer cabinets are not easy to expand and new items will come at the expense of the space of existing ones. Other than a few leading powerful international companies, it is the retailer who is taking the lead in terms of innovation and assortment. That is why private label is almost a pre-condition to do business in the sector. And the PL sector is increasingly segmented allowing the development of specific niches that cater to consumer clusters. So, despite the above restrictions there could be opportunities for smaller players if they can cope with retailers’ demands and offer the required quality and differentiation at the right price. To sum up, frozen foods will continue to expand as a sector within the supermarkets and so will the space allocated to it. We will also see the development of shops that will only sell frozen products either generic or specific to a category. That will be the case with premium meat retailers, as is already taking place in the US. The major drawback is still the consumer’s journey back home which can affect the products’ condition due to the lack of suitable bags combined with weather conditions and longer journeys. This is something that retailers need to address – with home delivery being one solution. Or indeed by designing containers that provide safe transportation and can be returned to the shop once used. Luis Garcia, MD Green Seed Portugal To get in touch with our Portugal team Contact Us
Consumer demand is back! CPS GfK experts explain what has changed in consumer behaviour
The FMCG market has had a serious problem for a long time, which is the decline in consumption but the first half of 2024 has been much better for the industry. Is demand coming back? What changed and why did the consumer finally start buying more? The positive mood of Poles in the context of thinking about the future, their own finances and what the global and domestic economy will bring are the most important factors responsible for the increase in consumption. Since January 2024, these sentiments have improved significantly and are currently at the level of 3.5 on the scale set by CPS GfK. In comparison, the average in the European Union is -12.9. Polish consumers are most concerned about their own and their family’s safety. This concern is shared by 43 % of surveyed households, which marks a change compared to the end of 2023, because then the most important concern was the family budget (53%, but now only 40%). The third most important concern of consumers is the quality of the food they eat and whether they take care of their body. “It’s not about going from white to black, e.g. giving up sugar in one day. It’s about changes that make you feel that you don’t have to give up on certain qualities of the product, e.g. taste, but choose items that have less fat and less sugar, thanks to which you can control your calorie intake.” Fewer and fewer consumers look anxiously at prices on store shelves. In Spring 2024, 30 % of respondents voiced pricing concerns, which is an improvement compared to spring 2023, when it was 39% (and 55% at its recent peak in Spring 2022). Currently 37 % of households estimate that they are barely able to meet their financial needs, a 6% improvement, while a similar proportion assessing their finances as comfortable has increased. To get in touch with our Poland team Contact Us
No added sugars, protein and functional: which foods are winners
Light and sugar-free products are still among those most chosen by consumers Everyone is crazy about ‘light’ and ‘sugar-free’ products: whether it is the result of increasingly unscrupulous marketing or the umpteenth trend popularized by social networks, it is a fact that Italians are increasingly sensitive to the nutritional benefits – real or presumed – indicated on labels with the adverb ‘without’. Thus, from foods ‘without added sugars’ (and richer, from time to time, in proteins, ‘good fats’ or lactic ferments) to the now usual ‘lactose-free’ and ‘gluten-free’, up to ‘egg-free’ – the real surprise of the year – the market is growing rapidly and is increasingly segmented. The data has emerged from the latest edition of the Immagino Observatory of Gs1 Italy, a non-profit organization that brings together 40,000 companies and represents a point of reference in the mass consumption sector. In 2023, the best performance was recorded by the indication ‘no added sugars’ (+5.4% in volume and +18.5% in value compared to 2022). Of the 12 claims in the ‘rich-in’ world, all, except ‘iodine’, increased their turnover: in particular, the products with the claims ‘lactic ferments’ (+0.3%) and ‘proteins’ (+1.2%) are those that increased the volumes sold the most. Protein foods are not affected by the crisis, on the contrary: in recent years they have become real ‘superstars’ – much to the chagrin of nephrologists, who continue to warn of the risks deriving from an excessive and immoderate intake of proteins on the kidneys. On the other hand, products designed for food intolerances are suffering the weight of inflation (+6.2% sales in value, but -3.9% in volume); those holding up better are ‘lactose-free’ (-1.3% in volume and +8.9% in value) and, although still a minority, ‘egg-free’ (+3.6% in volume, +12.8% in value). The Gs1 Italy observatory – the only organization to monitor the average nutritional intake of packaged food products sold in large-scale retail trade – revealed that, out of 82,422 products purchased in a year, the average incidence of proteins increased and that of sugars decreased, while the share of fats and carbohydrates remained stable. The ‘gluten-free’ category continues to dominate this universe, with 8,581 products and 3.2 billion euros in sales (+5.2%), but with volumes down by -4.4%, mainly due to the downward trend of cold cuts, mayonnaise and Easter eggs. Among the labels that held up best is the ‘lactose-free’ category, which lost less volume than the average (-1.3%) and increased turnover (+8.9%), mainly thanks to ‘functional’ yogurts. The ‘egg-free’ niche is growing both in value (+12.8%) and volume (+3.6%), particularly in the world of pasta (fresh or dry) and healthy biscuits. To get in touch with our Italy team Contact Us
Developments in the E-Food Market: The Delivery Services Race
The online grocery market in Germany is experiencing a dynamic growth phase. While quick commerce services like Gorillas and Flink are declining, established providers like Rewe, Picnic, and Knuspr are focusing on sustainable expansion and optimized logistics solutions. Here are the key developments and numbers: Rewe: Stable Expansion and Innovative Solutions Rewe has established itself as a significant player in the E-Food market, with an estimated online revenue between 680 million and one billion euros. Rewe has covered large parts of Germany and works with external drivers and fleets to flexibly respond to demand fluctuations. Picnic: Aggressive Expansion and Market Leadership Picnic, in which Edeka holds a one-third stake, is expanding aggressively with weekly new hub openings. An automated high-bay warehouse in Oberhausen aims to enhance efficiency and achieve Ebitda profitability. Picnic targets young families and is continuously growing in North Rhine-Westphalia. Knuspr: High-Quality Products and Ambitious Goals Knuspr, a subsidiary of the Czech Rohlik Group, plans to go public in the medium term. With a broad product range and highly automated warehouses, Knuspr focuses on profitable growth. The Rohlik Group generated around 700 million euros in 2023, with a significant share coming from the German market. Flaschenpost: Largest Network, but Challenges in the Food Sector Flaschenpost, acquired by the Oetker Group, has the largest network of all providers and is represented nationwide. The beverage specialist faces challenges in the food sector and has introduced separate minimum order values for beverages and food. Wolt: International Presence and Local Partnerships Wolt, the only truly international delivery service in Germany, works with local partners such as Tegut and individual Edeka retailers. Despite partnerships, Wolt faces resistance from retailers reluctant to share their data. Wolt is also experimenting with delivering non-food items like Ikea products. Market Developments and Outlook The E-Food market in Germany is steadily growing. In 2023, the online share was about 3 percent, corresponding to 7.5 billion euros. The challenge lies in balancing expansion, innovation, and profitability. Significant changes could occur if discounters like Aldi and the Schwarz Group (Lidl, Kaufland) increase their market presence. To get in touch with our Germany team Contact Us
Consumer behaviour highly resilient in the face of changing market situations
Over the last few years we have seen turmoil in the international political and economic environment which has directly impacted the short- and mid-term behaviour of both consumers and trade. One only needs to think of the conflict in Ukraine and the dramatic influence on raw material prices leading to huge price inflation in and outside the food sector. Or more recently the very high impact of exploding worldwide cacao prices. Despite all of the above it is interesting to see how in time consumers seem to be highly flexible and strongly resilient in the way they adapt to the new situation. The Dutch branch of consultancy Deloitte have identified top trends among consumers in their latest annual consumer behaviour report with some interesting findings: Reducing concerns about increasing prices Where in 2023 89% of Dutch consumers claimed to be very worried about increasing food prices this percentage decreased for 2024 to 83%. While still high in absolute terms, shoppers explain their reduced worries due to changes in behaviour by their ability to buy cheaper products e.g. own label products and products more often on promotion. Increasing use of loyalty cards The percentage of people using loyalty cards is growing. Some 69% of consumers say they use a loyalty card at their primary food retailer, but even 49% now use a loyalty card at their secondary choice store (and even 39% at their third). Retailers are growing their insights into the buying needs and behaviour of their different consumer groups. High penetration of self-scan Self scanning has a high penetration in Dutch food retail but this penetration is growing further. 81% of consumers are using now self-scanning vs. only 74% 2 years ago. Already 9% are using their mobile phones to do so. Minimum order amount for online delivery is less of a barrier The online share of the Dutch Food retail sector keeps growing. This is caused by several reasons but an important one is that for more and more consumers the required minimum order amount for home delivery is less of a barrier allowing more consumers to star using this service. Reduction of meat consumption is losing popularity The percentage of Dutch consumers claiming to reduce their meat consumption has decreased from 38% (last year) to 33%. At the same time consumers are also buying fewer meat alternatives (from 40% last year to 34%). In an era where plant-based and Vegan are so strongly promoted this is quite an outcome. These trends in consumer behaviour show that consumer shopping and consumption habits change both in line (but sometimes contrary) to overall market and social developments. Let’s not underestimate their resilience. Pim Haasdijk, MD Green Seed The Netherlands To get in touch with our Netherlands team Contact Us
Paris 2024 Olympics: a boost for the grocery retail sector
The Paris 2024 Olympics significantly boosted sales in the grocery retail sector across France. According to NielsenIQ, sales of fast-moving consumer goods (FMCG) saw strong growth during the two-week competition. The Paris area, Île-de-France, the main host of the Olympic events, experienced notable growth with a +7.9% increase in value and +11% in units sold, accounting for over a third of national gains. Stores located near Olympic venues saw their revenue rise by 19%, while other regions, like Hauts-de-France (north of France), contributed 15% of the overall gains. Nationwide, FMCG sales rose by +4.4% in units sold and +2.8% in value, outperforming the London 2012 Olympics, which had only a +0.4% increase. Warm weather played a crucial role, with 81% of gains coming from categories sensitive to high temperatures. Sales of still water jumped by +50%, followed by non-alcoholic beverages and ice cream, with brands like Cristaline, Coca-Cola, and Evian leading the sales. The festive atmosphere of the event also contributed, with 12% of gains in Paris coming from “aperitif” products. Overall, the Olympics provided a significant boost to the grocery retail sector, demonstrating the potential of major sporting events to drive local economic growth. To get in touch with our France team Contact Us
Why Aldi is also testing a loyalty programme now
In Belgium, Aldi Nord is testing a savings programme in its app for the first time. Shoppers can save points to redeem them for free products. Of course, this is more than just a means of customer loyalty. The pilot project is being tested in some 70 Aldi shops in West Flanders and northern Hainaut, a representative region with both urban, rural and bilingual shops. The test is co-driven and followed up from Germany by Aldi Nord with a view to a possible international roll-out. Aldi must be just about the last retailer to launch a loyalty programme – rival Lidl has been offering discounts in its Plus app for some time. It appears a remarkable strategic change of direction for the discounter, which avoids complexity as much as possible. However, the initiative does not seem illogical: with more than 440 shops and a market penetration of over 80%, Aldi can hardly grow in Belgium by opening additional branches or attracting new customers. A savings programme could encourage occasional customers to come more often and buy more. “With the new functions in our app, we want to reward our loyal customers more on top of our low prices and weekly promotions. So a customer who frequently shops at Aldi will save extra in a smart and easy way,” says spokesman Jason Sevestre. But that may not be the full explanation. An app does more than redeem points and give discounts, it collects valuable data for Aldi: personalised data on customers’ buying behaviour. Such data has become crucial in competition: it allows to better tailor assortment and promotions to customers’ needs and to send customers targeted offers over time. Retailers can also market data by selling them to suppliers – an aspect that is less of an issue for Aldi with its limited range of branded products, but still: the discounter reaches a broad audience that can be of interest to a lot of advertisers. So let’s wait and see what Aldi intends to do with the data collected. To get in touch with our Belgium team Contact Us
The consumption of food supplements in Spain has already achieved a sales level of more than €2 billion with more than 300 companies selling mainly through pharmacies, the natural channel and on-line marketplaces
The food supplements market in Spain, according to a Euromonitor survey in 2023, could continue to grow at a rate of 5%+ per annum over the next 5 years. The main reasons behind that growth are demographic developments in Spain (more than 20% of population is aged 65 years+, and projected to be 25% in year 2028), the increase in allergies and intolerances and the overall concern for a healthy lifestyle. These developments present however some challenges due to the lack of common EU regulations and harmonization, the still pending clarification of levels of vitamins and minerals to be contained in a “food supplement” and the clarification of usage of herbs and medicinal plants. According to the AINIA Food Technology Institute survey on Consumers Opinion (November 2023) clearly the preferred compositions are multivitamins, minerals and plants, followed by probiotics. The current drivers for consumption of these products in Spain are energy and revitalising boosts, immune system facilitators, relaxation and sleep-aid products and then the hair/nail segment, according to AFEPADI (The Spanish association of Food Supplements companies) who also state in their annual report 2023 that more than 78% of Spanish consumers claim to use or have used food supplements in their normal diet. AFEPADI groups together more than 130 companies, with 11,000 employees fostering innovation in the sector and awareness of the quality and benefits of the Spanish food supplements. In this respect the important VITAFOODS Trade show will be celebrated in Barcelona in 2025 as testimony of the growing weight of the Spanish consumption in the European context after Germany and Italy. Food supplements together with sport nutrition and weight control complements open a significant window of opportunity for development in Spain. To get in touch with our Spain team Contact Us
Plant based sausages and burgers down in volume while less processed proteins are in strong growth
As Tofoo now claims to be the second biggest brand in chilled UK plant based meat alternatives (after Quorn), the swing away from ultra processed meat alternatives appears to be gaining pace. Kantar data quoted in The Grocer report meat alternative sausages down 11.1% and burgers 4.8% in volume (52 w/e 9 June 2024). Tofu, seitan (in its infancy) and tempeh are all benefiting from the trend and boast a very tight ingredients list and minimal processing, with tempeh as a fermented product also boasting attractive gut health credentials. Plant based meat alternatives are being purchased year round. The hype around Veganuary is fast disappearing as brands seek to win over consumers for regular purchasing. Bigger brands are responding to consumer behaviour with changes in recipe formulation: Beyond Meat has been expanding its range in the US with a cleaner ingredient line up, while its new sausage range Sun Sausage focuses on vegetables rather than seeking to replicate traditional meats. It’s also interesting to note that some smaller challenger brands are highlighting the sustainability message with local sourcing of plant based ingredients to win over consumers. Shicken sources peas for pea protein grown in East Anglia, while Hooba, a new mushroom based meat alternative, grows and produces all its products entirely on one site in the UK. To get in touch with our UK team Contact Us
Welcome to Adil Khan, Green Seed Group’s new MD for the Middle East region
Green Seed Group UK Managing Director Simon Waring asks Adil to share some insights on opportunities. Simon: Which markets should be the focus for companies wanting to start selling food & drink products in the Middle East (ME) region? Adil: First and foremost, companies should know about the size of the two biggest economies of the six countries that make up the Gulf Cooperation Council (GCC) countries within the Middle East region namely, Saudi Arabia and the UAE. The total population of these two countries is 46mn – nearly 78% of the total GCC population of 59mn. And the total GDP of these two countries is nearly $1,500bn – nearly 72% of the total GDP of the GCC. The total GDP of both the Saudi Arabia and the UAE is nearly twice the GDP of Poland; nearly equal to Spain’s and about half that of Italy. Simon: What would your key messages be for companies considering exporting to the region? Consumers in these ME countries are increasingly conscious about food quality and safety. It’s important your products meet the highest standards of quality and comply with local regulations. The trend towards online shopping has caught on in a big way in the ME.Establishing a strong online presence and partnering with local e-commerce platforms can help you reach a wider audience. There is a rising awareness of health and sustainability among ME consumers. Products that are healthy, organic, or sustainably sourced are gaining popularity. Networking and building relationships with local distributors, retailers, and stakeholders are crucial. In-person meetings by visiting the markets and at tradeshows are an important element of maintaining these relationships. Simon: It’s not a ‘one size fits all’ across the region in terms of regulations and labelling either, is it? Adil: Yes, that’s right, each ME country has its own set of regulations and standards for food and beverage products. It is therefore important to be well-versed with these requirements to comply with all necessary certifications and approvals. And finally Effective marketing and branding strategies are essential to stand out in a competitive market. Simon: Can you throw some light on the market size and growth trends of the key markets? Adil: The food & drink sector in the UAE is estimated to be worth around $16 billion. The market has been experiencing steady growth, with an annual growth rate of approximately 5%. Factors driving growth include a rising population, increasing urbanisation, and a growing tourism industry. But the sector in Saudi Arabia is significantly larger, with an estimated value of $70 billion. Growth in the market has been robust, averaging around 6% annually. The expansion is fuelled by a growing population, rising disposable income, and government initiativesto boost the hospitality and tourism sectors. Simon: How about consumer preferences and behaviour? Adil: Consumers in the UAE have diverse preferences, influenced by the multicultural nature of the population.There is a growing demand for healthy and organic food options, as well as international cuisines. Convenience is a key factor driving consumer choices, leading to the popularity of delivery services and grab-and-go options. The picture in Saudi Arabia is a little different. Traditional Saudi cuisine holds significant cultural importance, but there is also a growing interest in international cuisines, particularly among urban youth. Family dining is common, with a preference for large portions and shared meals. Halal certification is essential for many consumers, reflecting religious dietary preferences. Simon: Which food and drink categories have been growing most strongly in recent times in the ME region? Adil: There are a few I would particularly highlight: Health and Wellness Products: There is a significant rise in demand for organic, natural, and health-focused products. This includes plant-based foods, gluten-free items, and products with added health benefits like probiotics. Convenience and Ready-to-eat Foods: Ready-to-eat meals, snacks, and beverages that cater to busy lifestyles are increasingly popular. This trend is driven by the need for quick and easy meal solutions. Dairy and Dairy Alternatives: Traditional dairy products continue to be popular, but there is also growing interest in dairy alternatives such as almond milk, soy milk, and other plant-based options. Premium and Gourmet Foods: With rising disposable incomes, consumers are more willing to spend on high-quality, premium, and gourmet food products. This includes specialty cheeses, fine chocolates, and artisanal products. Functional Foods and Beverages: Products that offer additional health benefits, such as fortified foods and beverages with added vitamins, minerals, or antioxidants, are gaining traction. Sustainable and Ethically Sourced Products: There is a growing preference for products that are sustainably sourced and ethically produced. This includes items with eco-friendly packaging and those that support fair trade practices. Simon: How can Green Seed ME support food & drink companies wanting to do business in the GCC region? Adil: We can support food and drink companies looking to enter the ME market in several ways: Market Research and Insights: This information can help companies tailor their products and strategies to meet local demands effectively. Regulatory Guidance: GS ME offers guidance on compliance with local food safety standards, labelling requirements, and other regulatory aspects, ensuring that your products meet all necessary criteria. Networking and Partnerships: GS ME can facilitate connections with local distributors, retailers, and other key stakeholders. Building strong relationships in the region is crucial for successful market entry and expansion. Marketing and Branding Support: Effective marketing and branding are essential to stand out in the competitive ME market. GS ME can assist with developing and executing marketing strategies that resonate with local consumers, including digital marketing, social media campaigns, and traditional advertising. E-commerce Integration: With the growing trend of online shopping in the ME, we can help companies establish a strong online presence. This includes guidance, advice and connecting to local firms that can assist in setting up e-commerce platforms, optimising for search engines, and leveraging online marketplaces to reach a broader audience. Logistics and Distribution: We can provide support and advice in setting up supply chain operations, including introductions to warehousing, transportation, and inventory management organisations. Sustainability and Ethical Practices: We can advise companies on adopting sustainable and ethical practices, which are increasingly important to GCC consumers. This includes sourcing sustainable ingredients, reducing environmental impact, and promoting fair trade practices. Simon: Thanks Adil, it sounds like there is a lot of potential and we look forward to building a lot of business for food and beverage companies in the region together! To get in touch with Adil Khan, Managing Director Green Seed Middle East at akhan@greenseedgroup.ae Contact Us
Why a sizeable number of Italians will buy branded products only when they are on promotion
52% of Italians say they buy branded products only when they are on sale, on promotion or discounted, while private labels are gaining ground precisely because, for 55% of the population, they are better value. Furthermore consumers plan to buy more private label in the future, especially in the home care (50%) and packaged food (33%) segments. This trend is revealed by data from the EY Future Consumer Index, which surveyed the opinions of 23,000 citizens around the world on several topics. The reader should bear in mind that the sample in Italy totals 500 individuals and that therefore the results should be read in terms of the trend illustrated rather than the precise percentage. It is also confirmed by what we see on weekly basis in the negotiations with retailers where there is an increase in the demand for promotions (in store and on line) and for extensive price cuts. One of the trends that emerges from the survey and that is linked to the area of spending is the contribution of influencers, creators, bloggers or vloggers (now increasingly regulated by law) in purchasing decisions. These figures have a significant role in the decision-making process, so much so that 51% of respondents rely on products recommended or promoted by influencers, while 43% admitted to having made a purchase exclusively on the basis of such a recommendation or promotion. This is taken in considerations and included in the marketing budgets allocated on all brands we deal with at Green Seed Italy. Tools and technologies are also changing the spending scenario. Consumers’ preference – especially Millennials and Gen Z – for using shopping apps is transforming the retail landscape, also generating new opportunities for brands. Amongst the main reasons for using apps includes the desire to access exclusive discounts and offers (50%), greater convenience (45%), and attraction to promotions or offers reserved for app users (34%). This data highlights a significant change in consumer purchasing behaviour, as they feel increasingly comfortable sharing personal data in exchange for personalized experiences and recommendations on possible alternatives. However, despite the enthusiasm for new technologies, people remain cautious about the security of their personal information: 62% of respondents are concerned about how their data is managed while 63% fear a breach of their data and hacker attacks and 70% fear identity theft or fraud. Economic accessibility is the dominant priority, in line with the behaviour highlighted above. However, the survey also shows that sustainability remains a key area of interest for consumers, especially Italians. This leads 95% to make an effort not to waste food and 58% to regularly recycle or reuse products after use. 35% of consumers are increasingly oriented towards purchasing second-hand items (a growing market), and 74% will try to repair, and not replace, if possible to do so. As for attention to health and well-being, which is also on the podium of priorities, 73% expect to be more aware and attentive to this issue in the long term, for example by preferring the purchase of healthy products (42%), but also by reducing the purchase of alcoholic beverages (51%) or tobacco in the coming months (46%). Sauro Musiani, MD Green Seed Italy To get in touch with our Italy team Contact Us
Auchan Poland and Intermarché are starting a purchasing alliance.
Auchan Polska and Intermarche have formed a purchasing alliance and want to create joint purchasing structures for the next 10 years. Both chains applied to the President of the Office of Competition and Consumer Protection for consent to consolidation. The partners expect that their cooperation will translate into strengthening relationships with suppliers – by expanding their business prospects, as well as increasing the attractiveness of the prices of the products offered as a result of combining the purchasing power of both brands. The final beneficiaries of the established alliance will be Polish consumers, who will gain access to a wider range of products at prices that allow them to manage their household budgets more efficiently. Intermarché and Auchan Polska intend to become equal owners of newly established legal entities, which, as central purchasing units, will represent both chains in talks with suppliers. If the Office of Competition and Consumer Protection consents to the fusion, a binding agreement will be concluded between the networks by the end of Q3 this year. To get in touch with our Poland team Contact Us
S Group Finland consolidates its position as market leader
“We estimate that in the grocery trade, our sales grew better than the rest of the Finnish market in the first quarter. A diverse and affordable shopping basket is a key promise”. It is the S Group’s strategy established over 20 years ago that has resulted in the group becoming market leader with 50% market share in grocery retail. At an early stage the group sent out a clear message for the way it wanted to operate by asking suppliers simply to be suppliers and not be involved in trade promotions or have sales representatives visit stores – with a clear focus on pricing and simplicity. Decisions made over 20 years ago by a farsighted management team have created the base for today’s success. To get in touch with our Nordic team Contact Us
Hot-Chip: The viral spicy snack phenomenon from the Czech Republic
A spicy snack as a viral product? What seems impossible has been achieved by the Czech company Hot-Chip. Founded out of love for chili, it quickly gained fame by offering truly spicy chips. Today, after three turbulent years, during which the company’s products were available on 35 global markets, Hot-Chip is reaching a higher level in the production of high-quality spicy dishes. In 2019, chili pepper lovers in Ostrava, Czech Republic, were looking for a snack that would satisfy their need for spicy flavours. After many unsuccessful attempts, they decided to produce such a snack themselves. This is how the Hot-Chip company was created. Its main product was initially HOT-CHIP Challenge, tortilla chips made from the hottest peppers in the world – Carolina Reaper and Trinidad Moruga Scorpion. Thanks to the unique taste of the chips and the company’s unique promotion on social media, the company gained fame, which allowed it to quickly expand its operations outside the Czech Republic. Soon, Hot-Chip products hit the markets of Slovakia, Germany, Austria, France and Denmark, and then dozens of other global markets. The imagination and creativity of the company’s creators have placed chili in jams, sauces and honey and expanded beyond the culinary traditions of the Czech Republic and Europe, with variations on African, Mexican (of course!) and Indian cuisine. To get in touch with our Poland team Contact Us
Supermarket shoppers are happy to make healthier choices but don’t want to be patronised
Scientists at the University of Groningen (RUG), in collaboration with the Top Sector Agri & Food, Wageningen University & Research (WUR) and the Dutch supermarket industry, have studied consumer trends over the past five years. The research aimed to gain insight into the challenges supermarkets face in promoting healthy and sustainable choices, under the title ‘Transparent, Healthy and Sustainable’. The results of the research were recently presented. They show that consumers appreciate help in making responsible choices, but do not want to feel forced. Supermarkets benefit from empowering customers to make responsible choices and can take advantage of the research findings. Greater transparency about the health and sustainability of products, for example through the Nutri-Score label, can help consumers. However, other measures such as promotional activities are also needed to encourage consumers to buy healthy products. As consumers buy the majority of their food in supermarkets, it is essential that supermarkets play a role in promoting healthy habits. While there is still a demand for unhealthy products, it is not realistic to completely remove them from the shelves. Therefore, in order to encourage healthy choices, supermarkets need to try other ways. To get in touch with our Netherlands team Contact Us
Health-conscious consumers: What they expect from the retail grocery sector
A recent survey by the leading German grocery trade magazine Lebensmittel Zeitung has revealed what health-conscious consumers expect from the retail grocery sector. This summary shows the key findings as well as informative insights how to reach the health-conscious German target group. 1. Transparency and information Clear labelling: Consumers place great importance on detailed information about product origins and ingredients. Ingredient lists: Precise and easy to understand ingredient lists are essential. Green Seed’s recommendation: Ensure that your product labels are clear and understandable in German. Provide comprehensive information about origins and ingredients to build trust. 2. Quality and freshness High-quality products: Freshness and quality are paramount. Consumers expect a high standard of food products. Avoidance of additives: There is a clear preference for products without artificial additives. Green Seed’s recommendation: Focus on top-quality products and avoid artificial additives. Emphasise the freshness of your products to stand out from the competition. 3. Sustainability and environmental protection Eco-friendly packaging: Reducing plastic and using sustainable packaging materials are highly valued. Organic and regional products: There is strong demand for a wide range of organic and locally produced foods. Green Seed’s recommendation: Use eco-friendly packaging and highlight the sustainable aspects of your products. An organic certification can give you a competitive edge. 4. Ethics and fairness Fair production conditions: Consumers want products that are produced under fair working conditions. Animal welfare: Animal welfare is another significant factor in purchasing decisions. Green Seed’s recommendation: Communicate transparent information about fair production conditions and animal welfare measures. This can strengthen your brand in the German market. 5. Health and wellness Healthy alternatives: There is growing interest in healthy and nutrient-rich products, such as superfoods and vegan options. Free from: Products that are free from allergens and other problematic ingredients are preferred. Green Seed’s recommendation: Expand your range to include healthy and allergen-free alternatives. Products like superfoods and vegan options are particularly in demand. To reach health-conscious consumers in Germany, it is crucial to consider their needs and thereby also support the retail sector. Improved labelling, an expanded range of organic and regional products, sustainable packaging, and transparent communication about the origin and production of your products are essential steps. To get in touch with our Germany team Contact Us
The global decline in innovation: a threat to the attractiveness of retail markets?
Innovation has been a key driver of growth and diversity in global markets for many years. However, a significant decline in innovation in the food industry is now threatening the wealth of choice available to consumers and the economic vitality of SMEs. Last year in France, according to Circana, new products accounted for just 0.6% of food sales in retail, 4 times less than five years ago. Innovations, levers for development In 2023, according to ProtéinesXTC, despite a slight recovery, global food innovation grew by only 3.9% (VS -12.7% in 2022), well below expectations, while in France, it grew by 8.2% (VS -23.3% in 2022). In France, “pleasure” is by far the most important aspect of food innovation at 61% and continued to gain ground in 2023 with +3.8 pts whereas the rest of Europe is “only” at 54%. This means that bringing pleasure to consumers must be a key factor in the development of innovations. Health is in second place at 17% but lost interest with a drop of 4.1 pts. French people are not as much interested in the health aspects as the rest of the Europe (24.2%). Ethics and convenience round out the reasons for purchase, with an average of 7% each and a fairly stable trend in France, rates that are similar to the rest of Europe. The main barriers to innovation The barriers to innovation are numerous and often interdependent: Financial risks: Innovation is costly; commodity prices have risen sharply as a result of a number of crisis (Covid-19, geopolitical conflicts, climate change), making R&D investments riskier than ever. Whereas before 2022, the one-year mortality rate for food innovations was 80%, “non- essential” innovations are now simply no longer being launched. Consumer demands: Consumer expectations are increasingly high. They are indeed more concerned about the costs of their purchases with inflation, as they still want quality products at the lowest price possible. This increases the complexity and cost of developing new products, which are on average 30% more expensive. The impact on SMEs According to Circana, the ranges of national brands fell by 2.9% compared with the previous year, while the range of value line products rose by 7.7%. Small and medium-sized enterprises (SMEs) were particularly hard hit, with their shares of supply falling to 3.9%. Unlike large groups, they have limited resources to invest in long-term projects with no guaranteed return on investment. As a result, SMEs risk losing competitiveness and, in some cases, disappearing from the market. Consequences for the market and consumers The decline in innovation has a direct impact on the diversity of products available to consumers. Less innovation means less choice, which can lead to a uniformity of products on supermarket shelves. Manufacturers, on the other hand, tend to focus their innovations on those that have the best chance of success. Moreover, the gradual disappearance of mid-range products in favour of low-cost or premium ranges is further limiting consumers’ options. Products whose positioning is not clearly fixed at one end or the other might no longer emerge. Conclusion To revitalise the market and meet consumer expectations, it is crucial that brands and retailers return to innovation. This will require both incentive policies and a stable economic environment. Innovation is not only essential for economic growth, but also for maintaining a diversified and attractive offer for consumers. Without this revitalisation, markets are likely to decline, to the detriment of the entire value chain. The future of innovation will depend on how to overcome these challenges and create an ecosystem where innovation can once again flourish, ensuring renewed diversity and attractiveness in global markets. The impact on SMEs According to Circana, the ranges of national brands fell by 2.9% compared with the previous year, while the range of value line products rose by 7.7%. Small and medium-sized enterprises (SMEs) were particularly hard hit, with their shares of supply falling to 3.9%. Unlike large groups, they have limited resources to invest in long-term projects with no guaranteed return on investment. As a result, SMEs risk losing competitiveness and, in some cases, disappearing from the market. Consequences for the market and consumers The decline in innovation has a direct impact on the diversity of products available to consumers. Less innovation means less choice, which can lead to a uniformity of products on supermarket shelves. Manufacturers, on the other hand, tend to focus their innovations on those that have the best chance of success. Moreover, the gradual disappearance of mid-range products in favour of low-cost or premium ranges is further limiting consumers’ options. Products whose positioning is not clearly fixed at one end or the other might no longer emerge. Conclusion To revitalise the market and meet consumer expectations, it is crucial that brands and retailers return to innovation. This will require both incentive policies and a stable economic environment. Innovation is not only essential for economic growth, but also for maintaining a diversified and attractive offer for consumers. Without this revitalisation, markets are likely to decline, to the detriment of the entire value chain. The future of innovation will depend on how to overcome these challenges and create an ecosystem where innovation can once again flourish, ensuring renewed diversity and attractiveness in global markets. Sophie DelcroixManaging Director, Green Seed France To get in touch with our France team Contact Us
Top 5 keys to success in the French market
Developing a sustainable business in France requires a well-thought-out strategy and a deep understanding of the particular characteristics of the market. Here are 5 key steps to successful market introduction: Defining your objectives and assessing the risks & opportunities: Before trying your luck in France, you must clearly define your objectives and assess the risks and opportunities associated with market entry. Focusing on just one or two markets at a time helps avoid spreading your efforts too thinly. Knowing the French market: Understanding the cultural, economic, and commercial characteristics of the French market is essential. Extensive market research is necessary, but it is also crucial to work with local players to benefit from their expertise. Adapting your distribution strategy: Choosing the right distribution channel is crucial. The expertise of part-time key account managers, professionals who manage and develop relationships with the most strategic players, can be invaluable. Preserving brand identity: It is essential to maintain consistency in brand communication and presentation across all distribution channels. If you are a private label manufacturer, be aware of market standards and expectations before contacting retailers. Avoiding conflicts between distribution channels: It is important to avoid potential conflicts between different distribution channels, particularly in terms of pricing and competition. Keeping a good relationship with all players in the distribution network is essential to ensure the success of national expansion. In short, successfully establishing a presence in France requires careful preparation, in-depth knowledge of target markets, strong local relationships, strategic adaptation and effective management of distribution channels. Green Seed France offers comprehensive assistance throughout the set-up process: market analysis, local partnership development, account management, trade activities, communication and progressive expansion services. Don’t hesitate to contact us! To get in touch with our France team Contact Us
Lidl permanently lowers prices of plant-based products
Lidl is permanently lowering prices of plant-based protein products in Belgium down to the level of the meat equivalent. The retailer will also expand its range and aims to double sales by 2030. The retailer has implemented substantial price cuts for soy yoghurt, organic soy chocolate drink, soy cream and vegan cheese, among others. By eliminating the price difference between animal and plant-based proteins, the discounter aims to make plant-based choices more accessible. A study commissioned by Lidl showed that 4 in 10 Belgians (42%) say they would buy more vegetarian and/or vegan products if they were cheaper. Just under half (49%) are convinced that meat substitutes are also effectively more expensive than their animal protein-based variant. The supermarket chain aims to significantly increase the share of its plant-based protein sources to 20% by 2030. The expansion of its plant-based range includes a variety of pulses, seeds and vegan options to replace meat, eggs and fish. Lidl also plans to increase the share of alternative dairy products to 10%. Meanwhile, the offer of Vemondo, the private label that bundles Lidl’s vegetarian and vegan products includes some 23 items in its permanent range. In Germany, Lidl previously cut prices on plant-based products. Sales there increased by 30%. Will Belgium follow this trend? To get in touch with our Belgium team Contact Us
Nutrition trend: convenience food & food to go
In the current nutrition trend report, The Nutrition Hub highlights that convenience food & food to go has established itself as one of the top trends in the nutrition industry. A total of 170 German experts were consulted, identifying significant developments in family nutrition, product development, and content creation. Key Insights: Health and Sustainability: The trend is increasingly moving towards healthier, more sustainable, and plant-based options. This reflects a growing consumer demand and willingness to pay more for better quality but not necessarily in investing more time in preparation. Technological Support: Digital connections and smart technologies, such as apps and smart kitchen devices, make cooking more efficient and reduce the effort involved, thereby allowing more time for communal eating. Social Changes: Changes in the working world and increasing mobility mean that people are eating on the go more frequently. This promotes the demand for conveniently packaged, nutritious, and affordably priced products. Individualisation and Identity: Social media and cultural shifts are influencing eating habits and fostering an awareness of individual nutritional needs and preferences. What is strengthening the trend for convenience food & food to go? Changing gender roles in society: Advancing equality in society means that the responsibility for food provision and care work is more evenly distributed among the adults in a household. This enhances the demand for quick, easy-to-prepare meals that require little culinary knowledge. New Work and Flexibility: The world of work is changing, and meals are increasingly being consumed outside the traditional family setting. This requires flexible meal solutions that can be integrated into the fast-paced and mobile everyday life. Mobility: Increasing mobility demands ready-to-eat, conveniently packaged, and nutritious products that are healthy, sustainable, and fresh, yet also affordably priced. Individualisation: Eating is increasingly becoming a platform for identity and lifestyles, influenced by social media. This promotes the demand for diverse, adaptable meal options. Outlook and Solutions: The experts predict that the trend will continue, driven by a desire for flexibility in everyday life. It is expected that technological advances will continue to make everyday life easier and make healthier meals more accessible. The Nutrition Hub is a leading think tank and expert community specialising in the future of nutrition. Based in Germany, the Hub brings together nutrition experts, scientists, and industry leaders to collaborate on innovative solutions and strategies for the nutrition industry. Photo Credit: © Nutrition Hub To get in touch with our Germany team Contact Us
Waitrose tie-up with chef Ottolenghi a hit
Following their launch across Waitrose stores nationally in April, the range of 9 cooking pastes, spice mixes and marinades have exceeded sales expectations by 97% due to unprecedented demand, according to The Grocer magazine. Ottolenghi’s cuisine, with an emphasis on vegetables and pulses with a Mediterranean and Middle Eastern flavour, has become increasingly popular with UK consumers, especially foodies interested to try out new recipes at home. The range includes items such as shawarma marinade and Aleppo red chillies, along with Pomegranate Harissa, which has been the top-selling item in the first weeks following launch. This marks the first collaboration with a top chef since the retailer’s association with Heston Blumenthal which ended last year after a long period of partnership. Waitrose is steadily expanding its offer, keen to establish its points of difference especially in range and quality of authentic food and drink ingredients versus its competitors. The move is also indicative of the UK consumer’s undying curiosity for new tastes and flavours, something all suppliers of great tasting products with provenance, made to high ethical standards, if thinking about approaching the UK market. To get in touch with our UK team Contact Us
Brands driving consumer loyalty for retailers
A recent study organized by Kantar (KWP) in cooperation with Centromarca (the Association of Branded Suppliers) revealed that brands have the potential to maintain consumer loyalty in stores for all types of suppliers. This is the case for retailers of both narrow and large assortments. For the former, because this stops them being tempted to look to other stores for their favourite brands. And for the latter as they offer diversity of products that cannot be offered by limited assortment retailers. The retailer is willing to help the consumer to save time by offering an efficient assortment that prioritizes convenience and simplicity, and at the same time caters to consumers’ needs. It was also found that 85% of consumers alternate between narrow and large assortment shops. While 51% of consumers from large assortment retailers can shop at a different outlet if their preferred chocolate brand is cheaper, 53% are willing to pay more for a product which they feel is beneficial for their health. Finally, private label ralready accounts for 47% of total sales, but it has lost some share in categories such as juices and nectars, milk free lactose, cooked ham and butter, amongst others. To get in touch with our Portugal team Contact Us
The boost in market share gain by hard discounters in Spain directly correlated to a 24% increase of private label penetration over the last 5 years
The hard discounters Mercadona and Lidl are the retailers growing their market share at the fastest rate in Spain at the end of the 2023 year, increasing their share by 0.6 and 0.5 percentage points respectively to reach a total share of market of 26.2% and 6.4% according to Kantar data. The share of private label (PL) in both retailers’ portfolios accounts for as much as 75% and 82 % of their total value sales according to the same source (Kantar), and these percentages have not stopped increasing in the last 5 years. This fact would suggest that there is a direct correlation between promoting PL products and gradually increasing market share while – in the case of Mercadona and Lidl, keeping a very tight and similar strategy in store formats: homogeneous stores of around 1,500 sqm with uniform store layouts.If we focus on total food alone, private label in value terms at end 2023 jumped to 57.7% (with a 68.8% share by volume) of total modern retail sales according to Circana-IRI data, with all other retailers also increasing their share of PL as a % of total sales even if not quite as dramatically as Mercadona or Lidl. As a consequence of this trend, 60% of shoppers have reported that they can no longer find some of their preferred brands on the shelves of their chosen supermarket (Expansion article 14th April 2024) and 1 out of 5 shopping baskets ONLY contain private label products (Nielsen). Private label’s value share of the market at end 2023 was 10 percentage points more than 5 years ago and over this timescale has effectively resulted in the removal of a quarter of national brand products from the shelves as private label has increased its assortment by 13%. In this battlefield where retailers are trying to aggressively win market share, shouldn’t brand manufacturers innovate and communicate more intelligently rather than just focusing on price and promotional activities? Shouldn’t they also perhaps rethink their Route-to-Market models? Antonio ObietaManaging Director, Green Seed Spain To get in touch with our Spain team Contact Us
Global warming and heat extremes to threaten food price stability, availability and diversity
According to a new study published in Nature magazine-March ’24 undertaken by researchers of Postdam Institute, Postdam University and the European Central Bank, new evidence confirms how food security is at risk in the immediate future for a large part of our planet. Crop productivity and yields are clearly at risk and as a consequence so are food diversity and availability. The essence of the debate is the pace at which this deterioration will take place in parallel to the measures being undertaken to adapt land and crops’ resilience to climate change extremes. Western Africa and neighbouring territories will in the short term be specially threatened due to a concentration and dependence on no more than 100 food species. The researchers calculate that food price inflation could rise from 0.9% to 3.3% annually from 2035 as a consequence of two combined effects: the unpredictability of adverse and extreme meteorological events and the increase of plagues and pest infestations. At the COP28 held in November 2023, 134 countries signed up for the first time to agree the interrelation between food systems, agriculture and climate changes paving the way for general consciousness enhancement and initial action plans. Now is time for action and proactivity before it is too late. To get in touch with our Spain team Contact Us
Delhaize saves 86 tonnes of plastic with new cheese packaging
Delhaize has taken another step forward to reduce its carbon footprint by changing the packaging of a wide selection of cheeses into more environmentally friendly packaging. This important initiative is the result of ongoing work on a commitment to sustainability. The supermarket chain says it will soon be able to save 86 tonnes of plastic annually for the packaging of three cheese ranges under the Delhaize brand: Oudendijk, the freshly packed cheese specialities and, from June, Belgian Gouda. It involves 21 references of cheeses, reducing plastic use by 37 to 64% compared to the current packaging. The young Gouda in slices alone would account for a saving of 20 tonnes of plastic per year. The flexible, thinner packaging will also consist of only one type of material, making sorting and recycling easier. Delhaize faced a number of challenges during this transition. First, existing packaging on the market had to be found where plastic could be significantly reduced, but without compromising the shelf life of the cheese; a crucial aspect of minimising food waste. Moreover, suppliers had to invest in production lines adapted to the new packaging, which required specific technologies. “We extended the expiry dates for 16 references, as much as three-quarters of the range. In fact, for some references, the shelf life has not only been extended but doubled”, says Camille Broquet, cheese buyer. For other products or product ranges too, the intention is to gradually switch to more environmentally friendly packaging, says the supermarket chain. The Lion’s Footprint initiative, launched in 2019 as part of its environmental commitment, has already borne fruit. Since May 2019, it has resulted in impressive savings, including a reduction of more than 3,251 tonnes of plastic, 81,116 tonnes of carbon and 6,252 tonnes of waste. These results show Delhaize’s ongoing commitment to actively contribute to preserving the environment and promoting a sustainable lifestyle. To get in touch with our Belgium team Contact Us
Albert Heijn’s packaging-free initiative not yet a success
Albert Heijn is continuing its efforts to make the Albert Heijn packaging-free concept a success. This concept was launched for the first time in the spring of 2022 in three AH-XL stores, where customers were able to tap products such as muesli, pasta and nuts in reusable bags or jars. So far, however, customers have not made much use of this concept. Therefore, Albert Heijn adapted and improved the concept, including smaller tap walls and sample bags. Despite these improvements, results are not optimal. It is also important that customers are well informed about the concept and that the concept is clearly visible in the store. While Albert Heijn continues to work on making AH packaging-free a success, competitor Lidl has also started a test with refilling stations for detergent and fabric softener. This test is ongoing, but Lidl is already seeing positive results, such as repeat purchases by refill users. Ekoplaza has also been successful with self-dispensing dry products in stores. Ekoplaza’s award-winning Wisselwaar concept, with a deposit on the packaging, is seen as an important step in the reduction of the use of plastic. It is clear that the road to a packaging-free society is not easy and will take time and effort to change the behaviour of both consumers and businesses. Discussions on encouraging the reuse of packaging are also taking place between the government, supermarkets and manufacturers. It is important that supermarkets like Albert Heijn and Lidl continue to experiment and improve. This will ultimately lead to a successful system of reusable packaging. To get in touch with our Netherlands team Contact Us
The reasons behind Tesco’s strong performance, and the steps they are taking to maintain growth
Tesco’s UK grocery market share is 27.4% (Kantar 12 weeks to 14 April 2024), + 0.4% on the previous year, and has just announced a double digit jump in profits driven by easing price inflation and continued market share gains. The UK’s biggest retailers, whose market share had been under attack for some time from the discounters, are fighting back strongly, with Tesco and Sainsburys in particular performing well. Tesco’s deep understanding of its customers is one of its key strengths. With a staggering 21 million households enrolled in the Tesco Clubcard scheme, the supermarket giant has access to invaluable data on consumer purchasing habits. This wealth of information allows Tesco to tailor its offerings and promotions to meet the diverse needs of its customer base. Clubcard prices on leading brands offer significant discounts, catering to budget-conscious shoppers and enhancing customer loyalty. This strategy has proven particularly effective in retaining customers amidst the rise of discounters such as Aldi and Lidl. Sainsbury’s, on the other hand, has followed a similar path with its Nectar card, leveraging customer data to drive sales growth. Their recent ‘food first’ strategy has been instrumental in attracting and retaining customers, demonstrating the power of data-driven insights in shaping retail strategies. As Tesco continues to navigate the evolving economic landscape, questions arise about its ability to sustain its strong performance. The prospect of declining interest rates and improved consumer confidence may lead to shifting shopping behaviours. Will Tesco be able to retain its customers who may opt to trade up to premium offerings or potentially lose them to competitors? Tesco seems aware of these challenges and is proactively addressing them. The continued investment in the Tesco Finest premium own-label range indicates their commitment to catering to diverse consumer preferences. By offering high-quality, premium products, Tesco aims to capture a segment of the market that seeks value alongside quality. Moreover, Tesco’s emphasis on customer experience and convenience remains central to its strategy. The expansion of online shopping capabilities, coupled with efficient delivery services, ensures that Tesco remains accessible to customers across various channels. This omnichannel approach not only enhances convenience but also strengthens Tesco’s competitive edge in an increasingly digital marketplace. Another aspect of Tesco’s strategy lies in its focus on sustainability and corporate social responsibility (CSR). With growing consumer awareness and demand for ethically sourced products, Tesco has made strides in offering sustainable options and reducing its environmental footprint. This aligns with the values of many modern consumers and can further enhance Tesco’s appeal. Looking ahead, Tesco faces both challenges and opportunities. The emergence of new technologies, changing consumer preferences, and economic fluctuations will require Tesco to remain agile and innovative. By leveraging its vast data resources, investing in premium offerings, and staying aware of consumer trends, Tesco is well-positioned to maintain its strong performance and continue its legacy as a leader in the UK grocery market. To get in touch with our UK team Contact Us
Organic gaining momentum in German grocery retail
Following a dip in inflation, organic products are gradually gaining momentum, with grocery retail and drugstores continuing to benefit from the sustainability trend. The Organic Food Industry Association (BOELW) reported that German consumers spent € 16.08bn on organic food and drink in 2023, a 5% increase from 2022. The growth is attributed to a higher price level, with purchased quantities remaining relatively stable compared to the previous year. Interestingly, the inflation rate for conventional foods was more significant at 9%, compared to 5% for organic products. Two-thirds of organic sales, approximately € 10.8bn, flow through grocery retail and drugstores, marking a 7.2% increase from 2022. Discount stores, including Aldi and Lidl, have gained ground, constituting around 40% of the overall organic market.While organic specialists generate only about a fifth of organic sales, organic food stores saw a slight growth of 0.2% compared to 2022. Smaller providers such as bakeries, butchers, farm shops, and health food stores contribute to the rest of the organic market. Private label products in the organic segment are on the rise, constituting 56% of organic sales in 2023, up from 52% in 2022, according to BOELW. Major retailers are expanding their product ranges, and in the inflation-driven year of 2023, new entry-level labels like “Prima! Alnatura” or “Tegut Bio zum kleinen Preis” played a significant role. This trend is expected to persist. Market share of organic market by channel To get in touch with our Germany team Contact Us
Is private label the only answer?
One of the most pronounced trends in the past few years has been that consumption has shifted to cheaper private labels within most categories. In some categories own label has increased in just a few years from 45% to 55% share, and this is probably only the beginning; there is a certain reaction time from the decision to implementation in that new PL alternatives must first be developed as branded goods are correspondingly phased out. It is rarely a negotiation, but rather an irreversible decision. This is a shame because branded suppliers potentially could contribute with valuable input and solutions. Now some interesting perspectives come into play. A new survey that Norstat has carried out on behalf of the Retail Institute Scandinavia shows that the decisions that the chains make today can have long-term consequences for which customers will choose to shop in their stores in the future. According to the survey conducted among 2,000 Danish consumers, 56% say that they consciously choose branded goods when they shop. This applies especially to the very young, and among Gen Z (born after 2001) the share is as much as 76%, while the same applies to 63% of the slightly older Generation Y (born from 1983-2000). Young people are also the group that has the greatest confidence in quality when choosing branded goods. 70% of all consumers say that the quality of branded goods is good or very good, and again young people stand out significantly in this regard. Twice as many from Gen Z than the general population indicate that they think the quality of branded goods is “really good”. Once a year, Swedish supplier organization “Livsmedelsföretagen” asks its member companies which consumer trends affect their business the most. At the top of this year’s survey are Private Label (39%) and low-cost alternatives (27%). Private Label is at the same time the most difficult to manage for many producers. I hear that it is often felt like an uneven competition leaving no opportunities to make the argument for brands. Shelves are rebuilt without notice and the values of the products on the shelves are reduced by an average 10-15% . Brands fight back with deep cut promotions which are more popular than ever before. I notice that decisions are often made by retail management and not in combined efforts with branded suppliers. The focus on PL as the only answer gives rise to some considerations: It’s worth remembering that only a handful of suppliers do deliver most of the private labels across Europe Is there a risk that the same PL products supplied by the same suppliers to more chains could mean less consumer choice and could there be risks in terms of consumer quality and safety issues? Is the PL focus undermining value long term and turning the trade into a decline spiral where only a few will survive. What actions can suppliers take to change a threatening development? If value is decreasing suppliers will have lower margins and eventually there will be fewer suppliers. It seems like retailer strategy fundamentally conflicts with branded suppliers strategy – conflict rather than a joint effort. For branded suppliers I think it is critical to work on having the right assortment offer, to invest in developing new products, to rationalize production, to secure their ingredients at lower prices, and to focus on establishing the export markets. As for retailers, they should let suppliers into the discussion at management and buying levels to understand the full consequences of actions that are launched. The strategy to completely focus on low value private labels products has the potential to undermine the value found in offering a varied assortment, not least from a societal perspective. If the future is more private label and at the same time the younger consumes has a less positive view on private labels, then the above questions are even more relevant for keeping long term value. Jakob True Managing Director Greenseed Nordic To get in touch with our Nordic team Contact Us
Regenerative agriculture and functional foods among key trends at Expo West
This March saw the largest gathering of food manufacturers and retailers in the USA at Natural Products Expo West in California. 3,300 companies exhibited their products to roughly 72,000 attendees, with many companies revealing their latest innovations. A team from Green Seed USA attended to manage client booths, to observe trends and developments in the industry. There was a sense of optimism and energy at the show which bodes well for an industry moving on from the shadow of COVID, a reduction in available cash from investors, and concerns about consumers spending less as price increases take hold. This year’s show featured many more brands calling out/making claims about: – Regenerative agriculture (+ 1300% versus Expo West 2023 – thanks to Wietske Helle at EatQ for the analysis). This is clearly a pervasive trend with many potential benefits for planet and health, but there is not yet the evidence available to show that a large number of consumers are aware or driven to purchase by them. It will be interesting to see how the regenerative movement connects those dots. – Functional superfoods/adaptogens (+800%). Probiotics, mood-enhancers, antioxidants, and energy-givers were at the forefront here. This feels a little like the ‘CBD in everything’ fad from a few years ago, but there is more potential here for consumers to find things that work for them and become ‘superusers’ of a brand because of it. – Plant-based (+250%). There were of course some ‘meat alternative’ products at the show, but less than in previous years; what drove this was ‘plants being plants’ with beans, lentils, and vegetables in snacking or convenient ready to eat formats taking the lead. This one feels like it is here to stay. – Fiber (+210%). 95% of Americans do not get enough fiber, according to the US Department for Agriculture, and there has been a rise in awareness of the positive impact from increasing feelings of fullness due the popular weight loss drug Ozempic, which mimics these feelings. Brands were keen to position themselves as the natural alternative to the drug, or the right food to eat while taking it. Other interesting trends spotted were lower sugar and no sugar alcohols (eg erythritol, maltitol) claims alongside each other – consumers appear to be rejecting these types of sweetener – the use of animal products to create new protein-and-crunch forward snacks like crunchy beef jerky, chicken chips, salmon skin bites, and egg white puffs, and the continued rise in global food influences (eg Mexican, Korean, Indian). As ever the Green Seed team will pay close attention to which of these develop into long-term trends and which fizzle out as short-lived fads. To get in touch with our US team Contact Us
Casino stores takeovers: what are the economic and social stakes for other retail players?
The recent wave of Casino stores takeovers by French retail giants has raised a combination of both concern and optimism about the future of these stores. Indeed, these acquisitions have profound implications not only for the companies involved, but also for local communities and employees. Casino’s store sales package included 288 Casino supermarkets and hypermarkets. Intermarché had agreed to take over 190 and Auchan 98. But for competition reasons, Intermarché will have to sell 25 stores to Carrefour, and there are still 26 stores for sale. A worrying context In 2023, Auchan faced financial difficulties, looking for strategic solutions to relaunch itself in an increasingly competitive market. The purchase of Casino stores was part of the plan to revitalise the company. This underlines the challenges faced by the historical players in the retail sector in the face of the emergence of new consumption models and growing competition from online players. Social and economic issues The takeover of Casino stores by Auchan, Intermarché and Carrefour is also raising social and economic concerns, especially for the future of employees and suppliers. In Montmorillon (centre west of France), 106 employees of the Casino group’s Easydis logistics platform, threatened with bankruptcy, are worried about their jobs. Local authorities fear a “social tragedy” and warn of the potential repercussions for employment and economic stability. Future outlook With 26 Casino stores still to be sold the question of their takeover remains a subject of attention for retail industry experts. Speculation is at its peak as to the potential buyers and the strategies under consideration to ensure the long-term future of these establishments. To sum up, the takeover of Casino stores by Intermarché, Auchan and Carrefour represents a major turning point in the competitive landscape of French supermarkets. While these acquisitions offer opportunities for growth and consolidation for some, they also raise significant challenges in terms of integration, human resources management and the preservation of the local economic fabric. The future of these retailers will largely depend on the ability of the actors involved to meet these challenges and adapt to the constant changes in the market. To get in touch with our France team Contact Us
Belgian food companies see profit margins fall
Belgian food companies saw their profit fall from 3.7% of turnover to 2.8% last year, according to calculations by food federation Fevia. The reason lies mainly in more expensive raw materials. Fevia looked at the annual accounts submitted by the companies to the National Bank of Belgium and concludes that there is a marked decrease in profit margins. This is mainly because raw materials have become a lot more expensive in the past two years, costs which could not always be passed on to supermarkets or the catering industry. Supermarkets in particular are proving difficult customers in this respect, as they face fierce competition and a growing supply and therefore have little room to manoeuvre themselves. “The negotiations with supermarkets this year are just as difficult as last year,” says Bart Buysse, CEO of Fevia in the newspaper De Tijd. Given the decreasing inflation and serious price increases in the last 2 years, some supermarkets want to turn discussions on their head and request lower prices now. But the prices of many raw materials are still higher than before. Sugar and cocoa, among others, have become even more expensive.” The food sector does not think there will be a quick recovery, making reference to additional costs to achieve more sustainability, but also to the fact that people are buying less than before due to high inflation. Border purchases would also play a role in this. Some products are cheaper abroad, especially in France, where the government has capped the prices of some products. To get in touch with our Belgium team Contact Us
After much criticism Nutri-Score is here.
The Nutri-Score is a traffic light system that helps consumers to make healthier choices when buying products. Although the system has been known abroad for years, its introduction in the Netherlands was met with some criticism. Supermarkets were frustrated. They were not allowed to put the logo on their own packaging, while foreign companies could. But since this year, the Nutri-Score has appeared on more and more packaging in Dutch supermarkets.The Nutri-Score has been criticised because it does not necessarily mean that a green labelled product is healthy. It simply means that it is healthier within its category than competing products with an orange or red label. Nevertheless, manufacturers like PepsiCo have adjusted recipes to improve scores. This has led to discussions among consumers about taste changes, like the ‘Snackspert’. Despite the criticism, the Ministry of Health, Welfare and Sport points out that the Nutri-Score is intended to help consumers make healthier choices, especially for products not included in the Food Wheel. Research shows that the Nutri-Score works. It helps consumers make healthier choices. This is emphasised by the colour and letter codes. These give a clear signal and evoke associations with traffic lights or grades.The Dutch are mostly positive about the introduction of the Nutri-Score and the majority think it is a good idea. To make the logo even more visible to consumers, a campaign has been launched. This could be a contribution to a more conscious choice for healthier food. To get in touch with our Netherlands team Contact Us
Heightened Concerns over Ultra-processed Foods are shifting the Shopping Behaviour of millions of UK consumers
Ultra-processed foods (UPFs) are dominating the headlines in the food media and increasingly a concern for consumers as one survey reveals 3m UK consumers have started avoiding them in the last 3 months. In the UK Dr Chris van Tulleken’s book ‘Ultra-Processed People’ has become a bestseller and there has been a 60% increase in searches on Google for UPFs over the last year. Readers of that book will remember one of the stand-out – and deeply unappetising – quotes from Fernanda Rauber, a Brazilian scientist: ‘Most UPF is not food. It’s an industrially produced edible substance.’ UPFs are said to account for 56% of all calories consumed by UK consumers – second highest globally behind only the US at 57% – and way higher than 18% of longer living and less obese Italians. According to the EIT Food Consumer Observatory, 67% of Europeans blame UPFs for the prevalence of obesity, heart disease and Type 2 diabetes. And this is beginning to have a marked effect on shopper behaviour, according to a nationally representative survey on UK adults by Levercliff, which suggests that 12.8 million shoppers had changed their diets because of fears over UPFs in February 2024 – up from an already substantial 10.8 million in October 2023. ‘Ultra-processed foods’ have captured the imagination more than ‘HFSS ‘products – products high in fat, sugar or salt – and will doubtless power the trend towards clean label and understandable ingredients. Even if some UPFs might actually have some specific health claims – especially high in fibre bread and cereals for example – with associated gut, metabolic and brain health benefits. Photo Source: www.bbc.co.uk To get in touch with our UK team Contact Us
Is price finally becoming less important?
One of the main challenges of entering the German market is the notoriously low price level. Today, food prices in Germany have reached a new peak. Does this mean it has now become easier to get on shelf for international food & drink producers? The Federal Statistical Office of Germany Destatis recorded an inflation rate of 3.8% for January, which was lower than in previous months. However, measured against the starting point in 2020, the index now stands at 133.3, i.e. an impressive increase of 33.3%. That is a new record value. Prices are therefore stabilising at a high level. This is a good sign. It will hopefully lead to more appreciation for food and drink. Unfortunately, this increase does not apply to all product prices. We are observing an unhealthy gap between brand and own label products, and it keeps on growing. Aldi and Lidl are lowering prices of many own label products, while prices of branded products are increasing. This puts manufacturers of branded products under even more pressure. Negotiations on further price increases with trade customers are ongoing but manufacturers have little hope for understanding from retailers – no matter the reason for these necessary increases. What will be the effect? It will probably further increase the already large gap between brand and private label products. This significant gap is creating a special challenge: Many brands are offered with an unusually deep discount. The mistrustful German consumer perceives this as deception. Even retailers admit that the price difference is difficult to explain. If products are offered at a discount of over 60% (20% would be standard), the standard shelf price appears to be completely out of proportion. Consumers do not view them as a benchmark anymore and do not buy the products at the high standard price. This messes up retailers’ calculations, which require a stable standard business to sustain margins. How can this be solved? We have heard about the odd manufacturer of branded products that – of their own accord – has suggested a lower recommended retail sales price to reduce the price gap. Not such a good idea and certainly not feasible for many brands. A step in the right direction is taken by retailers that create awareness for products that are not on promotion by featuring them in the sales leaflets with “from our range”. Another positive occurrence is the usage of FSDUs or off-shelf placements, even if the product is not currently on promotion. These measures are a welcome change, as they do not focus on price. Something that more retailers should have done a long time ago: focus more on reasons for consumers to buy a product that are not based on a low price. The results from the shopper trend survey carried out with app users by Bring Labs show that German consumers are currently paying even more attention to quality and animal welfare than to the cost of products when shopping for food. Together with the mega trend of sustainability, as identified by consumer research institute Gfk, I would like to be cautiously optimistic that price is finally starting to lose some of its power and that consumers are shifting for good towards quality. No matter how all this will pan out, food & drink companies that want to enter the German market will still need patience, perseverance and a good plan after analysing the competitive set, fine-tuning USPs, adapting packaging weight and creating a bespoke German range. Nicole GüntherManaging Director, Green Seed Germany To get in touch with our German team Contact Us
Carrefour Italia and Just Eat collaborate to strengthen grocery delivery
A partnership between the retailer and the digital food delivery company has been confirmed. The objective: to further expand the home shopping delivery offer in Italy. Today Carrefour Italia and Just Eat announced a new partnership, with the aim of further expanding the offer of home shopping delivery in Italy. To use the service, consumers simply order groceries from their home, choosing from a wide range of products, from fresh products such as meat, fish and vegetables to products for daily care. Already active in the cities of Milan, Rome, Genoa, Turin and Bologna, the service already counts on a network of 30 online stores, thus offering a wide choice for customers who wish to receive food, groceries and other products in a simple and immediate manner. The goal within the first year is to expand the network to over 200 stores in more than 50 cities, making the home shopping service accessible to an ever-increasing number of consumers. “Carrefour continues on its path to becoming a digital retail company, focusing on omnichannel and the needs of the consumer, the true key player in our transformation. The partnership with Just Eat is an important step towards responding to the constantly changing needs of customers, who are increasingly moving closer to food delivery services. Thanks to Just Eat, Carrefour Italia has further strengthened its offer, thus making the selected stores not only a point of reference for customers, but also a support to guarantee an even simpler, more flexible and comfortable shopping experience for all consumers who will choose to receive their shopping at home through a quick and reliable service” says Alessandra Grendele, Director of e-commerce, marketing, data and digital transformation Carrefour Italia. A RELIABLE AND HIGH-QUALITY SERVICE The partnership involves the management of deliveries by Just Eat employee riders, thus guaranteeing a reliable and quality service. This choice not only contributes to improving the overall customer experience but also underlines the attention to the safety and professionalism of the riders employed in the delivery activity. “Our strategy is to invest in diversification and further expand Just Eat’s offering through the launch and development of our proposition in the grocery sector. This path is supported by our vision “Empowering everyday convenience”: we want to enable consumers to get what they want, when they need it while also enhancing the growth of our partners with new customers, new channels and new opportunities. For a few years, food delivery has become part of consumers’ daily lives, becoming a consolidated habit and Just Eat aims to increase the moments to share every day. The collaboration with Carrefour makes us very proud and represents a significant step in meeting the evolving needs of Italian consumers, offering a complete and convenient online delivery experience”, declared Daniele Contini, Country manager Just Eat Italia. To get in touch with our Italy team Contact Us
New reasons behind changing habits in relation to food waste
A recent survey by Kantar Sifo, on behalf of Matsmart, shows that 37 percent of Swedes are now actively working to reduce food waste, mainly for financial reasons. At a time when financial pressures on Swedish households are palpable, many Swedes have chosen to become more involved in reducing food waste. A recent survey by Kantar Sifo, commissioned by Matsmart, shows that 37 percent of participants actively strive to reduce the amount of food they throw away compared to previous years. The survey reveals that almost half (49 percent) of respondents are motivated by financial considerations to reduce their food waste. At a time when the cost of living is rising, more people are starting to review their spending and consider options to cut costs. The reduction in food waste is still also motivated by environmental considerations, with 47 percent stating this as the main reason. The survey also indicates that more people are willing to buy products with short best-before dates at reduced prices, a practice that can help reduce food waste in the trade. A breakdown between the sexes shows that women (43 percent) strive to reduce their food waste to a greater extent than men (32 percent). This suggests a gender-related difference in attitudes and actions towards the handling of food and the reduction of food waste. As with many other consumer choices in the current situation, economic reasons are the main reason for the reduction and not environmental reasons. In the same way, we see a clear opt-out of organic products throughout the Nordics, and it is clear because organic products are more expensive than their conventional alternatives. Research methodology The survey was conducted in Kantar Media’s web panel, the Sifo panel, and included 1184 respondents aged 18–79. The results provide an insight into how Swedish households adapt to reduce food waste and balance the economy, with a future hope for a more conscious and sustainable lifestyle. To get in touch with our Nordic team Contact Us
More money in consumers’ pockets to fuel spending boom
For several months, economists have been wondering when the Polish consumer will finally start making larger purchases. The January report by the Central Statistical Office suggests that this moment is fast approaching. The leading consumer confidence indicator is now fluctuating at around the level it was at the beginning of March 2020. Economists are quite unanimous that in 2024 consumption will be the driving force behind Poland’s GDP growth. After a year of “inflationary winter”, Polish consumers will be more eager to go shopping, which will be pushed by high salary increases (the minimum wage has just increased by 20%, and the public sector will receive 20-30% more) and higher social benefits. The issue is really just the scale of the expected consumption boom. Some analysts believe that Poles, instead of resetting their portfolios to zero, will decide to rebuild the level of savings damaged by the inflation crisis of 2021-23.That is why, for the first time in a long time, we looked with such interest at the January consumer survey prepared by the Central Statistical Office. These are the first macro data from 2024, although they probably cover only to a small extent the impact of higher wages, the results look promising. To get in touch with our Poland team Contact Us
Mercadona on the march!
Mercadona is shaking the whole retail scene in Portugal, challenging the position of all the established players. More recently it was Lidl doing that job and the German retailer reached a share of 13%, but since Mercadona started to operate in the market, Lidl’s growth has stalled. But those who were hit the most are Pingo Doce and Intermarché that were quite strong at regional level North and Centre, which is exactly where Mercadona started the challenge. Even Aldi, which is a new player with 3 times more shops, has now retreated to 2.5% market share while Mercadona with 49 shops only already reached a share of 6%. The only player that seems not to be much affected is Continente whose share remained flat at 27%. But if Mercadona reach 300 stores, they could become the market leader! For 2027, Mercadona plans to open another 11 shops in Guarda, Évora and the Setúbal district. The strategy is patient and indicative of thorough research before entering the market. They’ve cracked some categories like cosmetics and detergents bringing much cheaper options than the established players at a fraction of the cost. That became the hook to bring the female shoppers into the store. And once there, all the categories thrived. From charcuterie to chilled ready meals and frozen meal components, they are destroying the competition mostly through Private Label. The assortment is narrow but precise and the prices are unbeatable. They become market leaders on every sku they bring to the party and the current strategy of the challenged retailers is simple: if Mercadona has it…we need to have it too at the best possible price. Every new store opening of Mercadona is a local event bringing crowds into it and causing traffic chaos! To get in touch with our Portugal team Contact Us
The Nutrition Report – How Germans shop, cook and eat
The Nutrition Report reveals a notable shift in dietary habits in Germany. Fewer people are consuming meat and sausage products daily, with the proportion dropping from one in three in 2015 to one in five currently. This decline in meat consumption is accompanied by a rising interest in plant-based alternatives. One in ten Germans now eats plant-based products daily, a significant increase from 5% three years ago. This trend is particularly pronounced among younger generations, with 18% of 14-29 year-olds choosing plant-based options, compared to 5% of those over 60. Consumer interest in plant-based products is driven by various factors. Curiosity tops the list at 73%, followed by environmental and animal welfare concerns, and taste, each cited by 63% of consumers. Overall, taste remains the most crucial factor for 94% of shoppers. Health considerations also play a significant role, prompting nearly half of the consumers to buy plant-based foods. The report also highlights a growing demand for transparency in food production, including aspects like regionality and organic farming. 44% of respondents prefer purchasing products with certifications such as organic labels, animal welfare labels, Fairtrade labels, or regional labels. Additionally, awareness of the Nutri-Score, a nutritional rating system, has increased significantly, from 44% in 2021 to 84% in the latest survey. Agriculture Minister Özdemir announced plans to introduce a draft for the government’s nutrition strategy, aiming to promote diverse, healthy, and sustainable food options in various settings, including schools and canteens. He also reiterated his proposal for advertising restrictions on unhealthy foods targeted at children. Criticism from environmental groups like the WWF suggests that while consumers are eager to adopt more environmentally friendly diets, the government could do more to remove barriers to sustainable eating. The WWF recommends measures such as eliminating VAT on fruits, vegetables, and legumes, and encouraging retailers to promote plant-based products more actively. The Nutrition Report, conducted by the Forsa Institute, is based on a representative survey of about 1000 individuals aged 14 and above, conducted between May 15 and 26, 2023. This annual report, established in 2016, also indicates a strong consumer preference for animal welfare, regional products, and environmental and climate considerations in food production. To get in touch with our Germany team Contact Us
The United States of Easy
Developing a food business in the US has never been easier when operating from overseas. With online customer driven technological advances and online marketing, starting up and building a US food business has become more straightforward over the 25 years I have been living and working in the US. As the US is such a huge market and a physically large country, even back in 1999 when I first set up the Quorn foods US business, I noticed cultural differences with UK and European markets. Even back then, in the US people depended on fewer face to face meetings, relying on telephone conference calls to get things done. Remote located sales teams were commonplace allowing closer proximity to retail customers. Today this is even more so the case. It’s possible to start up your business by registering your US limited liability company located from overseas, no US citizens are required. Video conferencing with a retail buyer has become the norm since the pandemic, straightforward to join from overseas. Although you will need to have some local representation with a sales agent or broker to pick up day to day matters. Also, you’ll need to ensure samples are smoothly distributed state side, with tracking to manage timeliness. Supply chains importing and distributing products are very well established with online data and tracking that enables easy overseas management. US banking can be set up with online visibility, and in the past decade, finally most US customers are sending money transfers rather than an old-style paper check! Customers now provide online portals for suppliers, allowing visibility to sales, promotions, payment and deduction management. Trade and consumer marketing activities are almost completely online with websites, social media and digital couponing overtaking traditional physical media. So how do you start the process doing business in America? First, I would recommend you set up a video call with Green Seed North America to discuss the viability of your brand and the US specific trends in your category. Ask the locals if there is a gap for your product. Then I would arrange a market trip, to a bigger city like New York or Chicago and visit some supermarkets to look at your product within the context of the category. Do you have a point of difference and how does the pricing look? Then I would suggest buying market data to understand the national picture and determine the size of the prize, to help you develop a market entry plan. Also consider attending one of the bigger US trade shows like Expo West or Fancy Food, to get a closer look at the competition. The US market today is structured in a way that it can be overseen and managed remotely from your home market. You will need some local advice on planning and you will have to set up US based third party relationships covering key business processes. In short, a US retail food business can be managed with just one trip a year, and plenty of video calls and emails. David WilsonFounder and Partner, Green Seed North America To get in touch with our North America team Contact Us
Packaging Waste Fund rewards packaging made of recycled plastic
To encourage producers and importers to develop sustainable packaging solutions, the Packaging Waste Fund has introduced a renewed system called Tariff Differentiation Plastic 2.0. The aim is to further close the loop on plastic packaging. The ultimate goal is 100% fossil-free and circular packaging by 2050. Based on the sustainability characteristics of their packaging, producers and importers pay different rates to the Packaging Waste Fund. Packaging that is made of recycled plastic and/or that is easily recyclable will be charged a more favourable rate from 1 January 2024, while packaging with a lower sustainability performance will be charged a higher rate. The aim is to encourage producers and importers to choose more sustainable plastic packaging. The Netherlands is one of the first countries in the world where the use of recycled plastic is being rewarded. With Tariff Differentiation Plastic 2.0, the Packaging Waste Fund aims to create a future where plastic packaging remains a valuable resource and does not harm the environment. Reusable packaging is rewarded with the lowest tariff and plays a key role in this vision. The ultimate goal is for all plastic packaging to be 100% fossil-free and to be circular by the year 2050. The Packaging Waste Fund will be working closely with the industry to ensure that producers and importers are provided with the necessary information and support to make use of the new tariff differentiation. To get in touch with our Netherlands team Contact Us
Sales force a must in Sweden and across Nordics
Sales Support is the leading sales force across the Nordics with around 300 sales people and 100 suppliers of food and drink. Despite the tough economic climate the need for brands to be represented in each store is even stronger not least due to central focus on private label. Odd Strand the MD gives his view on the present situation across the Nordics. Green Seed has been working with several brand owners that over the years have been using their services. Odd Strand sees the key trends are – Quality products but which are easy to prepare, useful products, focus on low salt content, low sugar content, alongside added value such as added vitamins, probiotics and more.New clients in 2023 are brands like: Lavazza, GB Foods, Renée Voltaire, Enzymatica, Aprés, Åre Beverage Group, PQM, Sproud, Neoz, Good Gum, Eternal & Waterwipes “To be Visible” The key challenge is to be to be visible in stores and towards consumers and Odd believes there will be a big focus on increasing distribution on the shelf, exciting POS material to stop consumers in their tracks, attractive gondola end displays with good offers, demonstrations, sampling and more. “To be inspired” – We believe that the consumer will be inspired and that people will want to eat good food – so healthy, simple everyday food plus a little extra for the weekend is a good combo, believes Sales Support’s CEO. Despite a lot of focus on Private Label and promotions the stores appreciate strong brands that consumers recognize and appreciate and can provide a good retail margin. It is important for sellers to understand retailer commercials, to be able to offer a good margin in a sales presentation and to sell in with good product knowledge as well as to know a lot about the store’s consumer and trading behaviour. “Never forget the shelf, it is priority number one for us and for the stores. To get in touch with our Nordic team Contact Us
The inevitable concentration of the French retail landscape
The dynamic shifts in the French retail landscape, particularly the recent changes involving Casino, Intermarché, Auchan, Lidl, and Carrefour, reflect a rapidly evolving industry. Facing financial challenges, Casino’s decision to sell its stores has led to an unexpected alliance between Intermarché – who has already reached an agreement with Casino few months ago to buy 119 stores – and Auchan, aiming to collectively bid on the hypermarkets and supermarkets up for sale. At the same time, Lidl has expressed an interest in taking over around 300 Casino and 300 Monoprix stores, another of the group’s financially troubled brands. Adding some more context to these changes, Carrefour strategically acquired the Cora and Match banners, comprising 60 hypermarkets and 115 supermarkets, for a total of €1.05 billion. This acquisition will enable Carrefour (18.9% market share as of December 2023) to recover 2.5% of market share and move closer to the leader Leclerc (24.6% share), against a backdrop of increased competition from players such as Amazon. Carrefour’s discreet yet skilful approach, led by CEO Alexandre Bompard underlines its commitment to consolidate the sector, explore alternatives to German discounters Aldi and Lidl and monitor other acquisition opportunities, such as Cdiscount and Monoprix. The ongoing consolidation suggests further shifts, with Auchan and Système U potentially joining the trend. ➔ What are the consequences for suppliers and consumers? Those ongoing transformations in the French retail sector are likely to have notable consequences for both suppliers and consumers. On the one hand, suppliers will have to face huge shifts in buying power, as major retailers consolidate or change ownership, but also important changes in market share and adjustments in distribution channels. Indeed, they may need to adapt to new routes, storage facilities or delivery schedules. Moreover, the competition among retailers could lead to changing pricing strategies and increased pressure on suppliers to meet evolving consumer and retailer demands. On the other hand, for consumers, these changes may manifest in shifts in product availability, pricing structures, and overall shopping experiences. Also, consumers may change brand loyalty as a result of changes in the availability of products and services. New store ownership or alliances may influence perceptions of brands associated with these retailers. Additionally, the competitive dynamics among major retailers could lead to increased efforts to attract and retain customers, by improving services, or other consumer-focused initiatives. Eventually, as the industry continues to undergo consolidation, the full extent of these consequences will unfold. Overall, the consequences for both suppliers and consumers will depend on how the retail landscape evolves, the success of the various business strategies, and the ability of companies to adapt to changing market conditions. The ongoing consolidation in the supermarket sector suggests that these changes will continue to take place, impacting various stakeholders in the retail ecosystem. Ultimately, being aware of the potential changes to come, we can wonder: to what extent will the changing French retail landscape contribute to deeper changes in consumer and supplier behaviour and preferences? To get in touch with our France team Contact Us
EDEKA Clear No. 1 in German Food Retail
Lebensmittelzeitung and EHI recently published latest data on the German grocery market (to end December 2022). As expected, the No. 1 was again the Hamburg-based EDEKA. Due to inflation, total food retail increased by 8.6% in 2022 to €219.7 bn, still lower than actual food inflation which amounted to 13.4% over the year. Amongst the Top 4, Lidl was the winner with growth of +14.2%, making it a very successful year for the Schwarz Group (Lidl’s owner). In 2022, the Top 4 accounted for 80% of total food retail. The actual number of food retail outlets grew by 630 in 2022 to 36,928. This growth was accounted for entirely by the Top 4. A breakdown of the almost 37,000 food outlets in Germany is shown below: Type of stores No. of outlets Discount stores 15,977 Drugstores 5,145 Organic stores (”Bio-Märkte”) 1,575 Hypermarkets/ superstores 1,114 Classical supermarkets 13,116 To get in touch with our Germany team Contact Us
Have we now passed ‘peak purpose’ for food and drink brands?
For some years now, brands with a clear message about their purpose and commitment to meaningful change had something distinctive to lift them above the fray. But today being purpose-driven is the expectation, brands have to offer more to succeed. Pre pandemic, legacy brands were finding growth hard to come by, while startups began to carve out a role for themselves in the grocery arena. SMEs with a clear message about ethical ingredient sourcing, minimal processing and environmental responsibility exposed the sometimes less than optimal approaches taken by their bigger brand competitors. Their messaging chimed with consumers, and buyers took notice. Many invested a significant amount of their seed funding in branding and often skilfully took advantage of the rise of social media to engage with shoppers – often so much more authentically than the big beasts they were up against, whose traditional approach to big marketing investment to preserve and grow share had served them well to date. Retailers gave full listings to some and trial exposure to others, via initiatives such as Future Brands from Sainsbury’s, with brands ranged on a special fixture in a limited number of outlets. B Corp Many have gone through the B Corp certification process. Of the now 1400 B Corps in the UK, some 200 are food and drink businesses (The Grocer July 2023). The vast majority of these are SMEs and startups. While achieving this accolade is of course a source of pride and a great story for customers and suppliers, another key benefit is joining a close-knit community and advisory network. But many in the B Corp community were less than happy when Nespresso became accredited, citing parent company Nestle’s human rights record – and were also concerned that multinationals could now achieve the same recognition as purpose driven startups. Others (including in the B Corp community) would equally argue that the best way to effect global change and for business to be a power for good is to have big companies on board. Investment Climate The investment climate has also changed significantly since the heady days when DTC growth surged, low interest rates seemed like they might last forever and new food brands with a compelling growth story (never mind the non-existent profits) could readily find investors. Nowadays, however purpose driven brands may be, if they cannot demonstrate a resilient business model, combining strong sales growth with a clear route to profitability, they will not pass the test. Topline growth is all very well but without gross margin and a focus on EBITDA investors will look elsewhere. Challenger brands do not have it easy. There are few markets as competitive as UK grocery, so it’s hard enough in the first place to get the attention of buyers, assemble the right commercials and marketing mix to win limited space available away from established brands – and then to stay listed into the medium term with constant sales growth. Throw in a pandemic – when retailers paused or delisted many in favour of their bigger suppliers able to guarantee levels of stock – and a more discerning investment community, and things are harder still. Brands who realise that purpose and sustainability are table stakes and who have a clear-eyed plan for profitable growth will be the ones to attract buyers and investors – and likely still be on the shelves in the years to come. To get in touch with our UK team Contact Us
A cry for innovation
Retailers are rationalising their assortments and FMCG producers are launching fewer innovations. The result is an erosion of the consumer offer. According to the research company Circana in 2022 carried out in 6 major European markets (UK, Germany, France, Spain, Italy and the Netherlands), a drop of over 16.5% was noticed in new product launches – and in France the decrease was even over 30%. Both retailers and producers are concentrating on their core ranges to safeguard their market share. Cost price increases have dominated the retail debate for the last 24 months. The P&L has come under scrutiny especially on production costs, the retailers are wanting to safeguard their margins and the consumer has become even more price conscious due to a reduction of buying power.Bigger brands in particular launched fewer new products onto the market. Medium and small sized companies were the innovation drivers: 75% of new launches and 68% of innovation turnover was generated by SME’s. The tough retail stance vs low rotation products has made it even more difficult for newcomers to succeed. New product launches need time to be picked up by consumers, time which is no longer given by the multiples. This is proving to be short term thinking. Sustainable growth is only possible with a good degree of innovation. New products drive consumer demand. Brands need new product launches to grow and protect their market share. The alternative is a fight for market share on price. And in the end only those retailers which have price as a key cornerstone of their business, soft and hard discounters, are the winners. Mainstream retailers with a DNA of originality, quality and differentiation lose in the end. And with them the suppliers. Supermarkets become too much of the same and the curious consumer, often a food lover, feels abandoned. Medium and smaller companies are more flexible, more entrepreneurial and often more creative. But their inventions need to get the chance to get onto the shelf. With an overly conservative retailer attitude, these innovations simply don’t get the chance to prove themselves. It is a killer for the start-ups and puts medium sized food companies under serious pressure, jeopardizing future innovation. Companies with a drive for NPD should be supported. Retailers should shift their focus back to dynamizing their categories in store. Margins, healthy rotations and innovation can go hand in hand. It simply needs a bit of courage. To get in touch with our Belgium team Contact Us
Lidl simplifies its stores in Belgium
German supermarket chain Lidl wants to simplify its store concept in Belgium. All Belgian stores should have the same floor plan .This should increase recognisability for customers, but also efficiency for staff. In Germany, Lidl is reverting to its discount roots under pressure from major competitor Aldi: the shops are becoming more sober and will have a smaller assortment. ‘In Belgium, such a turnaround is not on the cards’, says spokesperson Isabelle Colbrandt, although it is planned that all 310 Belgian shops will have the same interior and floor plan. This should improve recognisability for customers, but also improve efficiency for staff. That way, it should also make it possible to save costs. “The aim is for customers to recognise a Lidl when they step inside. Specifically, you will encounter the bakery, fruit and vegetable department first when you enter the shop,” said Isabelle Colbrandt. ” “At the moment, there are lots of different variants between our stores, so there are lots of different operational tasks per store. By going to one clear store concept across all stores – also in terms of logistics, transport, deliveries, etc. – it will also be simpler and more efficient for our staff.” On the one hand Lidl has proven to be a fierce competitor to Delhaize and Colruyt, eating market share, whilst at the same time, being in troubled water with cumulative annual operational losses. The focus on chilled and fresh, a strategy of the last few years, will be scaled back again. To get in touch with our Belgium team Contact Us
CONAD opens the first checkout-free supermarket in Italy in Verona
Trentino cooperative Dao’s customers will be able to take products from the shelves and then leave without passing through a checkout. Plans are already in place for a second. Intelligent cameras and scales will recognize what is selected by each customer, who will then be able to view purchases on special displays once they reach the payment area. Here the payment will take place exclusively digitally: it will be possible to pay with credit and debit cards from all banks. For the technological development of this innovative store, Dao worked with Sensei, a Portuguese tech company that has already managed the opening of autonomous stores in Europe and South America. The new Prende&Vai in Verona promises a new way of shopping in the Tuday Conad format. Dao has in fact created a space where technology is conceived as a tool at the service of traditional shopping. On the one hand, AI helps to make shopping more convenient and faster, and on the other it helps the company to improve the understanding of purchasing habits in the specific store, allowing those who manage it to adapt the assortment to real needs. In any case, unlike the cashierless stores already open in the rest of the world, staff will always be present at the Conad Take&Go Tuday in Verona, trained to assist and accompany customers in this innovative experience To get in touch with our Italy team Contact Us
Protein is still the most sought after functional ingredient in food and drink for UK consumers
A recent survey by Vypr among 4,000 consumers demonstrates that the quest for health remains a powerful motivator for consumers seeking out foods high in protein, as well as those promoting gut health. No longer just the preserve of young males concerned about muscle mass, the importance of protein is increasingly recognised by those in middle age wanting to guard against weight gain and muscle loss and to promote strong bones. Protein is seen by 38% of consumers as the most important functional claim, followed closely by 36% for whom it is gut health. 53% of those surveyed claim to be aware that the microbiome influences brain function and emotion. Protein bars and other snacks are also benefiting from the new High Fat Sugar Salt (HFSS) regulations where less healthy products are unable to be sold in aisles near the checkout or other secondary locations, freeing up space for existing and new to market brands with a healthier ingredient spec where protein scores highly. To get in touch with our UK team Contact Us
Dutch supermarkets Albert Heijn and Jumbo joining international buying alliances
The recent news that Dutch supermarkets Jumbo and Ahold Delhaize are joining international purchasing alliances has major implications for the competitive landscape in the Netherlands. These new purchasing alliances, such as Everest, Epic Partners, Eurelec and AMS, provide a stronger bargaining position with manufacturers, similar to the bargaining power of the European Union compared to other trading blocs. This may lead to the elimination of cross-border price differentials and makes it easier for retailers to ask manufacturers to adapt product packaging so that the same products can be sold at comparable prices in different countries. While this is good news for supermarkets, consumers and policymakers, it also raises concerns for major food manufacturers. For the Netherlands, this means that Albert Heijn and Jumbo are strengthening their competitive position against other buyers, especially discounters Aldi and Lidl. Ahold Delhaize’s entry into Eurelec puts it on an equal footing with the Schwarz group (Lidl, Kaufland). This strong position of the price fighters is why German supermarket companies such as Edeka and Rewe are driving the new generation of cross-border purchasing clubs. Superunie, an old-fashioned cross-border purchasing club, will be concerned about the developments around the purchasing of Albert Heijn and Jumbo, as the individual members are smaller players on a European scale. What approach it might take is not yet clear. To get in touch with our Netherlands team Contact Us
The battle for the new shopper in Central Europe 2023
After speaking with a large numbers of consumers, interviewing leaders of CE retail and CPG (Consumer Packaged Goods) manufacturers, and combining those insights with additional research, a new report from McKinsey concludes that the grocery sector is experiencing a remarkable transition. This shift may alter the way consumers shop, the way grocers build their value propositions, and the way manufacturers build their brands.The main insights we are sharing in this report are as follows: Consumers trading down at scale, shifting to cheaper grocers, switching brands, and giving up on quality. After the severe inflationary shock of the past 18 months, consumers have become more sensitive to increasing price points and are looking for cheaper options. Although this means being cautious about how much they buy, it’s mostly about finding the best places to shop, identifying name-brand products they can replace with private-label brands, and reducing overall grocery spending to compensate for lower disposable income. All of this has resulted in a greater willingness to swap usual shopping destinations or favourite brands with acceptable replacements. The search for promotions and discounts. Promotions have always played an important role in driving traffic for the grocery business, when done properly. Bearing in mind the current all-time high interest in attractive promotions, retailers and suppliers need to increase their focus on crafting the right selections to lure shoppers and increase brand attractiveness. The commoditisation of health and locality. Inflation is cooling consumer sentiment towards healthier and more sustainable products. In our view, this shift is driven by an increasing penchant to purchase affordable products. Consumers are no longer willing to pay extra for products with already-inflated prices, which holds true for all age groups except Gen Z, who understand the value of organic and locally sourced products,and are willing to pay more. Local one-stop shopping reinvented. Consumers still require proximity to a shopping destination. Regardless of how price sensitive they become, some weekly shopping will always be carried out in a local store. More importantly, the better the value proposition of a local store, the more shopping will be done there. The search for a competitive edge in online. Online grocery shopping in Central Europe continued to gain share in 2022, building on pandemic-related gains from 2020–2021. This differs from Western Europe, which experienced a market correction last year. At the same time, CE consumers intend to spend less on online grocery in the coming year, with price being the key barrier to entry. Central Europe is also not a uniform market, since Czechs and Romanians shop online primarily for convenience, while Poles often hunt for deals. Adapting to the Gen Z-driven market shift going forward. One of the most important trends impacting the market in the next couple of years will be the increasing role of Gen Z consumers (born in 1995 -2012) as primary household spenders. The growing economic clout of Gen Z means networks will need to adjust their value propositions accordingly. This includes meeting the increased interest in specific types of products—which can be done by proper assortment management and building seamless experiences—to increase attraction and loyalty. Combining online and offline experiences into a seamless one will be crucial in convincing Gen Z shoppers to stick with specific retailers, despite their greater willingness to switch between players. Addressing cost and margin pressures are a paramount priority for grocery players. Recent inflationary pressures affected both retailers and CPG manufacturers, with 53 percent of CE companies reporting lower profitability in 2022. In order to maintain or recover profits moving forward, retailers and CPG manufacturers should focus on pulling all key levers to help them rebuild their fundamentals. To get in touch with our Poland team Contact Us
Shopping trolley still 14.7% more expensive than a year ago
Although food inflation in Belgian supermarkets is falling, it still remains very high. Testaankoop calls for the government to take measures and act against deceptive practices such as “shrinkflation”. While food inflation was still 15.4% in July, it fell to 14.7% in August. This is according to a new price survey by Testaankoop of 3,000 products in stores of supermarket chains Albert Heijn, Aldi, Carrefour, Colruyt, Cora, Delhaize and Lidl. An average family of two spent 533 euros in the supermarket last month, or 69 euros more than a year ago, according to the consumer organisation. For six months in a row already, it is vegetables that have risen the most in price: they were on average 31% more expensive in August than a year ago. Carrots became 70% more expensive, onions +55%. Ketchup (+49%), tomato puree (+41%) and frozen fries (+39%) also continued to rise sharply in price. Eggs rose 25% in price, ready-to-eat dishes 23%, and paper goods 20% – and this despite inflation for this category also reaching 33% last year. Testaankoop points out that falling commodity prices are not yet translating into lower prices on shop shelves. Although prices on international markets have been falling since March 2022 for vegetable oil (-48%), frying oil is now 36% more expensive on average in March last year. Dairy prices have been falling since June 2022, but more than 90% of semi-skimmed milk and young cheese are now more expensive than then. Cereals became 17% cheaper on average since October 2022, but flour and pasta are still mostly more expensive than in October last year. The consumer organisation points an accusing finger at the government: “We feel that the government has not addressed this crisis. Rising prices have changed the eating habits of the majority of Belgians: they have opted for lower-quality products. Besides the impact on their wallets, this also has an impact on consumers’ health,” spokeswoman Julie Frère told La Libre. She thinks the Economic Inspection should be more diligent in checking retailers’ promotional activities, and is surprised that the practice of shrinkflation, in which brands do not raise their prices but reduce the quantities sold, is considered legal. To get in touch with our Belgium team below Contact Us
Brussels wants to make international sourcing easier
The European Commission wants to make international purchasing easier for retailers, responding to complaints about international purchasing barriers. The EC is working on a plan for the extension of the geo-blocking regulation. This bans manufacturers from charging higher prices for products from countries other than their own. Retailers have long complained that manufacturers are trying to avoid international sourcing, which is often cheaper. For months now, Dutch online supermarket Picnic has been selling a range of products sourced in Germany. This is parallel importing and Picnic is breaking the rules, although Picnic denies it. In times of high inflation and shrinking purchasing power, the EC wants to remove barriers. It is expected that this process will take some time. In the meantime, new obstacles are emerging. For example, French retailers will have to sign contracts for delivery under French law. In addition, Belgium is working on a deposit system of its own. To get in touch with our Netherlands team below Contact Us
Insects: The protein of the future?
More than 2 billion people in 80% of the countries of our planet are already eating insects in their basic diet. Insects are as good or better than meat in terms of nutrients, iron and protein and have a minimum impact in climate change factors unlike cattle breeding, according to the FAO. In 2018 the European Union through EFSA started allowing the human consumption of up to 3 species of insects and in Spain they are already being commercialised and new farms are being developed to raise insects and pack them to sell or convert them into flour. According to a recent survey from Nestle, up to 20% of Spaniards are willing to eat them but almost half of them declare that they will prefer to use them as an ingredient “hidden” in the recipe.Europeans are more than used to eating arthropods (if only of the aquatic variety), so the big question would be: when the cultural barriers to eat insects will break down as they did for raw fish when sushi entered into Western households? To get in touch with our Spain team below Contact Us
Nordic Markets among world’s most innovative
Nordic markets rank second, sixth and ninth in the world in the ranking of the world’s most innovative countries when the UN makes its annual ranking. It is the sixteenth year in a row that Sweden is ranked in the top three in the world. Switzerland is number one on the list in the Innovation Index measurement. The Global Innovation Index examines 132 countries’ innovation opportunities and results based on 80 indicators. In addition to criteria such as patents and trademark applications, the index measures indicators for high-tech exports, political climate, education, scientific publications, infrastructure and idea creation, among other things. Looking at the food and drink market within the Nordic region Sweden is clearly the leader. Well-known international brands are using Sweden as test market before launching into other markets as Swedish consumers are positive and open-minded. The mix of a strong tech scene, curious customers, forward-looking food and agricultural universities, as well as the growing interest for food in the investment sector makes up for a growing innovative food sector. The world’s 10 most innovative countries in 2023:1 Switzerland2 Sweden3 United States4 Great Britain5 Singapore6 Finland7 The Netherlands8 Germany9 Denmark10 South Korea To get in touch with our Nordic team below Contact Us
Food trends update for 2024
The German “ZukunftsInstitut (= Future Institute) hs updated its trend report for the coming 5 years. Food trends evolve, become stronger or weaker, or stagnate. They can develop new dynamics driven by technical innovation and social or cultural impulses. They reflect what consumers desire from agriculture, food producers, retail or foodservice. 1. Plant-based Food and Carneficonados New technology has given greater importance to plants, resulting in various forms of imitation meat and fish. This trend follows growing awareness of climate and the environment. It is also reinforced by growing awareness for animal welfare. Starting with substitutes for unstructured meat (eg.minced), avant garde plant-based suppliers have developed products resembling whole meat cuts such as fillet steaks (“Beyond Food”), chicken-breast (“planted”), or flank steaks (“Redefine Meat”). Consumers continue to trial purchase new non-meat items but manufacturers complain about low repeat purchase rates. Manufacturers are thus focusing on taste and shorter ingredient lists. It is easier for hybrid products to win on taste. They contain just a little meat. Competition in the future could come from precision fermentation cultivated from muscle or fat cells (cultivated meat or fish). The trend to meat alternatives has led also to an anti-trend. Carneficonados and Vegourmets avoid industrial production and plant-based food. Top chefs are more and more showing their skills by creating original meals with vegetables, fruit, cereals, pulses and herbs. 2. Female Connoisseurs Female connoisseurs have evolved strongly in the German F&B business since 2018. Top female chefs are no longer exotic exceptions and play a stronger role in driving change in the food business. Many new cooking and restaurant trends focused on vegetables show a female touch. Change is also apparent in leading food companies such as Nestlé, Unilever and Danone. Some successful start-ups are also driven by women. 3. From Zero-Waste to Circular Food In Germany, up to one third of grocery items end up as waste. It will be hard to reach the EU objective of cutting this waste rate in half, bearing in mind the side effects of the pandemic, the war in Ukraine and extreme drought in S. Europe. It is recognized that zero-waste will not just be achieved by end consumers. Big Food and Big Retail must also be integrated and involved. 4. Regenerative Food Regenerative food puts the focus on farmland as the decisive key to an effective eco-system. Regenerative agriculture uses organic instead of synthetic fertilisers, mixed fruit farming and deep-rooting. A variety of organisations and producers have joined the Regenerative Organic Alliance, which is also supported by Nestlé, General Mills and Unilever who all by 2050 fear a loss of 10% of plant production due to soil erosion To get in touch with our Germany team below Contact Us
Should we worry for the future of International A-brands?
It looks like leading International A-brands in particular are currently becoming more and more under siege. A development that is of potential concern given that the NPD power of these type of brands is highly important for the general future of the food sector (both for retailers and for suppliers). Should we therefore worry? In these times of high inflation and tight budgets, consumers are exchanging A-brands for Private Label products on a large scale. This is also influenced by the fact that more often independent product tests by local consumer organizations show private label products as the clear test winner which each time puts further pressure on the perceived intrinsic value of competing A-brands. The actual rise of new, modern, more intensive and effective, cross border, buying organizations is a further threat for suppliers of leading International A-brands. The main reason why leading Dutch retailers like Albert Heijn and no 2 Jumbo Supermarkets recently announced becoming members of different modern International buying groups (Albert Heijn in Eurelec, together with Rewe and E. Leclerc: and Jumbo in Everest, together with Edeka) is fundamentally to increase their commercial position vs. the leading A-brands. The fundamental answer that A-brands could give to these threats is to develop real innovations. However, A-brands are facing two main issues here. Firstly major innovations often take place in chilled and, apart from categories like dairy and meat replacers, often A-brands do play a more limited role in these categories as retailers increasingly claim these categories for private label. Secondly, once innovations are being launched they very soon get duplicated by a private label or budget brand. This has had a negative impact on the real NPD launches undertaken by A-brands in the last few years. Looking at innovations at the last Anuga most of these could be summarized as “more of the same”. Most of these could be clustered for a number of years under trends like “more healthy, clean label and plant-based” but nothing fundamentally beyond that. Real fundamental innovations like in the past Yakult and Becel Pro-Activ are missing in the current climate but would be vitally important for the food sector (retailers and Industry together) to drive the future volume growth in the food sector but also in order to safeguard the future profit contribution potential of the sector. It therefore is a very fine balance which international retailers are facing in dealing strategically with A-brands. On the one hand the increasing trading friction leading to further promotion of PL’s and stronger international negotiations vs. the need for A-brands to maintain substantial minimum volumes in order to finance the much needed core R&D investments.
The Dutch are willing to eat more sustainably, provided it doesn’t cost them too much money
Research conducted by consultancy and insights bureau Opinium shows that 82% of the Dutch consider it important to shop sustainably, but at the same time 61% of them mention that price plays a major role. Two thirds of the participants in this survey say they try to limit the environmental impact of the food they consume, 11% of whom report that the environment is their main concern in this respect. Nevertheless, 39% of those surveyed believe that supermarkets have to reduce their prices in order for consumers to be able to shop more cheaply. The fact that price has become a more important factor is related to the continuing rise in the cost of living. Weekly average groceries have increased by €29.60 on average per week and 39% of those questioned said they can barely survive financially. In order to afford their weekly groceries, consumers were forced to make drastic lifestyle changes. This includes buying fewer groceries, reducing their use of fuel and even consuming less food in order to be able to afford their purchases. Dutch consumers consider the environment important, but also expect supermarkets to adjust their prices to encourage consumers to buy more sustainably. To get in touch with our Netherlands team below Contact Us
Stark Choices being faced by the Polish Dairy Industry
Despite the war still raging in Ukraine, energy prices still unresolved and inflation still taking its toll, the reality in the dairy industry is very different according to Marcin Hydzik, president of the Association of Polish Milk Processors. According to data from the Ministry of Agriculture and Rural Development, the prices of all dairy products monitored under the Integrated Agricultural Market Information System have decreased since the beginning of the year: natural yoghurt by 4.73%, kefir by 4.53%, UHT drinking milk by 11.84%, cream and cream by 3.73%, packaged butter by 8.31%, gouda cheese by 12.85%, and Edam cheese by 26.23%. Not only retail chains, but also foreign competitors are encouraging a reduction in the prices of finished products – Polish skimmed milk powder is currently more expensive than German, French or Dutch, and Polish butter in blocks is more expensive than German. Therefore, the Polish dairy industry faces a choice – either to lower prices and costs, or to go out of business. The effects in the form of falling purchase prices are already visible. In the context of competition, it is also worth paying attention to the results of Polish foreign trade in dairy products. In the period from January to April 2023 compared to the same period of the previous year, the volume of exports of milk powders increased significantly by over 11%. Unfortunately, in terms of value, exports of milk powders denominated in EUR decreased by over 5%, and in PLN by over 2.5%. A similar situation took place in the case of butter – an increase in volume by over 8.5%, a decrease in value of 7.4%. In the case of cheese, a decrease in the volume of exports of less than 2% was recorded, however, the value of this turnover expressed in euro increased by approx. 9.7%, and in PLN by 12.6%. Exporters of fermented products were definitely in the best position, increasing the volume of transactions by approx. 3.5%, but in terms of value they managed to obtain over 25% more in the domestic currency and over 28% in euro. In the case of imports, a simultaneous increase in volume and value was recorded for SMP and cheese – says Marcin Hydzik. To get in touch with our Poland team below Contact Us
Innovation: the chilled food section focuses on plant-based products and practicality
In 2023, the chilled products sector, including dairy, butchery and charcuterie, will be swept along by the waves of plant-based products and convenience. According to the well-known French Trade magazine LSA, some of the following innovations are coming to market: • Cheese spray: We’ve already heard of aerosol cans of whipped cream, but now there is a cheese version to spray on your dishes, but for now, this innovation is reserved for the catering trade.• Birthday cake flavour: A Swedish quark, or low-fat milk-based fresh cheese, rich in protein and low in fat, comes in a festive and original limited edition, birthday cake flavour.• Cook in your bag: Delhaize’s marinated chicken strips are as practical and timesaving as ever. The cuts are sold in a special bag that you simply pop into the oven. One less washing-up chore!• Practical packaging: Convenience is still a key driver of innovation in every department. A high-fibre vanilla breakfast yoghurt comes in a re-sealable stand-up pouch, easy to use.• As close as you can get: Many players in the plant-based sector are still trying to come up with alternatives that are visually close to the original products. A meat substitute from Juicy Marbles for example, looks just like meat, with its marbled appearance. Innovations in food products are constantly on the increase. More plant-based, greater convenience, there’s no shortage of opportunities for innovation, and manufacturers are well aware of this. The question is, will these highly Americanized innovations appeal to consumers? To get in touch with our France team below Contact Us
The Upcycled Food Movement
In the United States, almost 38% of all food goes unsold or uneaten every year, leaving behind a climate footprint equivalent to the entire U.S. aviation industry (as estimated by the nonprofit ReFED.) An unfortunate truth of the food and beverage industry, food waste occurs at every level – from manufacturers to retailers to consumers. Over the last few years, a new upcycling food movement has emerged in response to this issue. EOS Intelligence forecasted that in 2022, the global market size for upcycled food products was $53 billion and is projected to reach $83 billion by 2032–with an expected CAGR of 4.6%. A report conducted by Allied Market Research on the global market disclosed that the leading segment utilizing upcycled food products is food and beverage, and the North American region is currently the largest market, making up nearly two-fifths of the market. Consumer interest in ESG-focused brands has driven the growth in the upcycled food market due to the social and environmental benefits associated with these types of products. The introduction of organizational structure in this once-niche space has helped legitimize the movement and create a foundation for future growth. Impact on CPG Deficiencies in current food production practices have diverted valuable nutrients away from the U.S. food system and created widespread food waste. Within those gaps lie opportunities for CPG innovation, rebranding waste streams into value streams as existing systems are accounted for and utilized to their full potential. Farm surplus, ugly produce and manufacturing by-products are some of the primary sources of ingredients for the upcycle food product market, leading brands include: ● EverGrain by Anheuser-Busch utilizes spent grain, a by-product of their beer brewing process.● Uglies (kettle chips) and Diana’s (chocolate-covered bananas) source their star ingredients from unattractive produce.● Blue Stripes utilizes the whole cacao – shell, fruit, and beans – to create water, granola, superfruit powder, and chocolate products. Beyond the scope of food and beverage, the application of upcycled food can also extend to personal care products, household products, and pet food. Opportunities for partnerships between brands, food producers, and manufacturers provide an entry into the space and mutual economic benefits. Similarly, working with nonprofits like the Upcycled Food Association (UFA), which focuses on preventing food waste by growing the upcycled food economy, may provide much-needed support to smaller start-ups through its initiatives. The Upcycled Food Association The UFA was founded in 2019 to build a food system that elevates food to its highest use. The UFA has worked to cultivate this mission by attracting more investment to the upcycled industry, improving the upcycled business network/supply chain, and increasing consumer demand for upcycled products through the coordination of hundreds of companies globally. Since its inception, the UFA has made fundamental contributions to the industry. In 2020, it gathered a team of experts from academic, governmental and nonprofit institutions to define the term upcycled foods for application in policy and research. Eventually, it developed the first third-party certification program and its corresponding label to empower consumers to support brands that reduce food waste and combat climate change. The UFA’s efforts push forward its vision for a more sustainable and equitable food system for all. Looking to the Future Upcycled food may seem like the latest trend to ride the sustainability wave, but the growth potential is tangible. Consumers are interested in products that better our planet/society, and businesses are looking to optimize their processes; the upcycled food product industry checks off these boxes. Participating in diminishing food waste would result in environmental, social, and economic benefits while creating a win-win scenario for brands, investors, producers, and consumers. To get in touch with our USA team below Contact Us
Establishing a foothold in the Low & No Drinks Category in the UK
While retail sales of alcohol have plateaued somewhat since the pandemic, the low & no drinks segment has performed strongly – sales up 13.9% (NIQ 15 July 2023) vs all alcohol down 1.3% over the same period. Beer is the largest component in low & no drinks and is now a £100m+ category, increasing value sales by 20% to £125.7m. While that all looks rosy, it can be tough for new brands to get a foothold. The number of skus in the Top 5 retailers has already tripled over the last 5 years and the brewing giants have strengthened their dominance of the category. Nevertheless the fact that penetration is still very low in the UK should mean there are opportunities. Low & no penetration is only 3% compared with 16% in Spain, 11% in the Netherlands, 10% in Spain and 7% in Germany. What’s more some UK supermarket chains like Waitrose are increasing the focus on this area – along with functional drinks – by creating a dedicated space to showcase the category. The key to success will be great branding and visibility but also of course taste. Consumers will not accept poor tasting versions of loved alcoholic versions, they need products they feel good about drinking and want to come back for more. To get in touch with our UK team below Contact Us
Clean labels on private-label – fewer additives and a clear competitive advantage
Leading German retailers are all looking critically at additives and ingredients, especially for their private label items. Clean label products are gaining ground and retailers are able to influence the composition of their own products. Clean labels are particularly visible in the Dairy, Muesli and Cereals categories. In a recent survey carried out by by POS Proficlub for LZ Direkt (a division of Lebensmittelzeitung) over 40% of retailers featured clean label in these 3 categories. Further areas of interest are Confectionery (29%), Bread/Baked Goods (28%) and Convenience/Snacks (22%). E-Number areas which can be eliminated are: artificial aromas, taste enhancers, shelf-life extenders and colouring agents. Not forgetting of course sugar, fats and salt which can all be reduced. The approach of each major retailer differs. Famila, a strong player in N.Germany, has changed recipes with its quality private label brands Hofgut, Biogreno and Vegan leben. Lidl started its Reduction Strategy 2025 in 2017, working continuously on its clean label private label brands since then. The Migros-owned Central German multiple Tegut sees its clean label products as a way to differentiate itself from competition. Tegut also communicates to its consumers when items have clean labels, as does ALDI South, eg. with its Speisezeit Veggie Bowl and private label bread. ALDI South also focuses on clean label with its own organic products which automatically have less additives than conventional brands. To get in touch with our German team below Contact Us
New food and drink concepts post Covid which are here to stay
Diversification of food sources and primitivism as opposed to mass supply Today, 75% of foodstuffs come from just 12 plants and 5 animal species. In the quest for differentiation, the food industry is bringing new species of plants and seeds to market and expanding the horizons and experiences of consumers, in addition to recovering old processes or varieties in traditional plants deemed healthier or tastier. An opportunity to bring back lost flavours that new systems and processes are able to recover. Saving the planet, speaking the truth More than ever, people realize things must be done to slow the destruction of the planet taking place. Environmental free solutions, regenerative agriculture, industrial processes, ingredients and offsetting carbon emissions are key communication elements to secure consumers’ trust. Brands need to be more transparent than never, straight and objective. Buying / eating local is just a reflection of this trend. Eating and drinking healthier Living longer and healthier goes hand in hand with having good food and leisure habits. Health and environmental concerns are boosting veganism. But to be successful for a wider population, foods must taste as close as possible to the replaced products. While plant based is perhaps the best example of this, not all vegetable origin alternatives are more environmentally friendly than the traditional food stuffs they intend to replace. Also, some categories like canned foods that were thought dead a while ago, are coming back due to their perceived benefits such as preserving ingredients for longer and because of their convenience and potential for sharing. Another examples are de-hydrated fruits richer in antioxidants, mushrooms of all kinds, seaweed, non-alcoholic drinks with hydration benefits or fermented drinks such as kefirs or kombuchas to go with foods. All traditional categories need to be reinvented to address trends. De-construction of traditional meals The traditional paradigm of breakfast, lunch and dinner is over. The food and drink industry needs to take into account the changing lifestyle of consumers to be there at the time they are needed. Hence the potential for development of the snacking / food to go. Food platters and communality After being shut at home for so long, people are coming together celebrating life and partying more than ever which means sharing platters and buying products which suit that purpose. This is driving a demand for more innovation to surprise friends through new formats, cuisines or proteins. Suppliers cannot overlook these trends when designing strategies for the years to come, while retailers are on top of the game, by being closer to consumers with the ability to amass significant purchase data, which will inspire an increasingly relevant private label offering. To get in touch with our Portugal team below Contact Us
Plant-based product sales in strong growth in Portugal
Plant based product sales reached €65M in 2022, an increase of 20% when compared to the previous year. But in the meat replacement segment, sales have increased by 67% over the last 2 years, with price inflation of only 6% when compared to 12% in meat. The Portuguese consumer is also replacing traditional milk with plant based varieties which grew at the same rate that regular milk declined, and now represent 10% of the whole milk market. Vegetable cheese was the most dynamic segment sky rocketing 114% since 2020, followed by yogurts which surged 51%. The price increases for these items were also far lower than for conventional products in these categories. To get in touch with our Portugal team Contact Us
Consumer confidence is rising as inflation slows down
According to a McKinsey study dedicated to food consumption, in 2022 the price race led to a drop in purchases and a contraction in operators’ margins. However, the situation is improving in 2023. Inflation was by far the most influential factor in the food sector throughout 2022. The race in prices has, on the one hand, put families in difficulty and have reduced purchases; on the other hand, it has put pressure on the margins of operators who have had to deal with declining sales in terms of volumes and more expensive supplies. However, the situation is improving: the drop in inflation has favored a recovery of consumer confidence. Confidence which, however, has not yet returned to pre-Covid levels. “The inflation rate in Italy went from 2.3% in 2021 to 9.7% in 2022, reaching a peak of 12.5% in October – write the experts of the consulting firm – Inflation was even higher. The economic situation of households has come under significant pressure as expenditures have increased much faster than disposable income and consumers have reacted by cutting back on spending. Overall food sales in Italy thus grew by only 2.6% in 2022 compared to 2021. An increase exclusively due to the price component (+10.3%). In fact, volumes fell by 2.9% and more was lost due to the switch from higher-end products to lower-end products (downtrading). The latter phenomenon has favored the sales of private labels. In twelve months, Mdd’s market share increased by 1.7 percentage points. However, only 0.8 percentage points are explained by downtrading within the same store. And the discounters were the real winners of 2022: they gained 1.6% in terms of market share. This performance was driven by the combination of several factors: an aggressive growth in new store openings in recent years, the post-pandemic recovery and consumers’ greater attention to prices. Discounters have thus grown at the expense of other channels. However, consumer confidence is recovering thanks to the cooling of inflation: there are five continuous months of progress. The February figure was the highest (-20.6) since the beginning of the war in Ukraine. For the rest of 2023, the key themes will remain rising costs and pressure on margins, downtrading and a greater focus on private labels. To get in touch with our Italian team Contact Us
International day of tapas
Last week millions of consumers celebrated with the International Day of the Tapa, this enjoyable piece of micro gastronomy. We need to go back to the XIII century to find out that the Spanish king Alfonso X “The Wise” was always concerned for the health of his citizens, imposing the need to eat something before having a glass of wine to avoid early drunkenness. The fact that in those days flies and mosquitos were abundant prompted the bartenders to put a slice of cheese or jam on top of the glass as a ‘cover’ or lid (the meaning of tapa) while at the same time the patron had to eat it removing it before drinking, following then in a natural way the recommendation of their King. Some centuries later, in the windy province of Cadiz, another king, Ferdinand the Catholic, when stopping at a bar for a break, was offered a glass of sherry with a piece of cheese on top of it to avoid the dust and sand dragged by the wind entering the glass and ruining the sherry. The fact is that tapas nowadays have evolved from a slice of cheese or jam to a glorious masterpiece of micro gastronomy with millions of different recipes from the classical slice of bread with a piece of jam (pincho if it’s fixed with a spike) to the most sophisticated of culinary preparations. According to a survey carried out last year by the Spanish Federation of Bars (CEHE), 74% of tourists visiting a bar in Spain ask for a tapa and 78% of bartenders describe the tapa as the most significant attraction of Spanish cuisine. To get in touch with our Spain team Contact Us
Belgian food retail turnover hits €30.72 billion
Last year, Belgian food retail market sales reached 30.72 billion euros. This is the sum of the annual results for Colruyt Group, Ahold Delhaize, Carrefour Belgium, Aldi, Lidl, Louis Delhaize Group, Intermarché, Alvo, Lambrechts, Jumbo, Action, Kruidvat, Trafic and Hema. The big drivers are clearly the “newcomers”, especially from the Netherlands. Like last year, the biggest growth came from Jumbo. They grew by 77.8% and now have a market share of 0.7% (up from 0.4% in 2021). This is the result of a growth in number of shop outlets from 17 to 27 and the average sales per shop have also increased by 12%. The second biggest grower in sales 2022 is Action – growing by 37%! This is the result of the opening of 8 stores, but it is mainly the sales per POS that have increased spectacularly by 39%. Last year’s second biggest riser is in third place this year. Albert Heijn grew by 20% thanks to a combination of more shop locations (from 65 to 74), and an increase in sales per store of around 5%. Next to the direct impact on market shares, these 3 retailers are putting pressure on the performance of their competitors, such as Delhaize and Colruyt. Strategies are being changed, promotional tactics amended and assortments being reviewed. The market has become far more competitive and price sensitive. The retail fight is fierce. To get in touch with our Belgian team Contact Us
Own label now accounts for 55% of value sales in the total UK grocery market
The pressure on household budgets driven by continuing high inflation and increasing interest rates is driving shoppers to switch more from brands to own label. Kantar data from w/e 16th April as reported in The Grocer magazine, reveal that own label now has a share of 55% of value and 63% of volume of total UK grocery. Total grocery volume sales have fallen 3% year on year, with brands down 8%. Within private label itself, the only tier to show any growth in volume over the year is value own label – up 25%, while standard own label volumes dropped 2% and premium own label declined by 4%. While value own labels have grown strongly, they account for only 3% of total UK grocery (and premium own label for just a little more at 4%). Standard own label ranges are more than 10 times as significant, with 45% value share, matching that of branded food and drink. Most UK retailers have increased their range of value own label products over the last year, with Asda’s and Morrisons’ portfolios increasing by more than 30%. Tesco slightly reduced their numbers but still offer more value products than their competitors. Meanwhile, standard own label sku numbers have reduced across UK multiples as they focus more on their value proposition. Now more than ever brands need to demonstrate they are responding to unmet shopper needs with a compelling proposition at an attractive price point. Inflation is beginning to ease now that input prices have dropped, but a tough economic environment will continue for some time as the effect of higher interest rates begin to bite. Time for brands to show how they make an affordable difference. To get in touch with our UK team Contact Us
How artificial intelligence is already changing grocery retail
The tools offered by artificial intelligence for supermarkets are transforming how these businesses are managed in many parts of the world. This technology is capable of providing detailed information about consumers. From age, gender, tastes, and mood when visiting the store. In addition, it automates all processes to reduce the time it takes to be served and make purchases. As a result, it has become a crucial part of retail strategy and a growing trend that adds value. Artificial intelligence-based technology for supermarkets offers many benefits for both the consumer and the retail sector. Here are some of them: Personalized offers Retailers can make personalized promotions by possessing relevant information about consumers walking through the grocery aisles. They know their food preferences, whether they have food allergies, and what motivates them to buy a particular item. In addition, analyzing user behaviour allows them to organize products more efficiently. Consumers learn through various channels what the offers are and when it is convenient for them to buy. This approach creates a pleasant experience and attracts shoppers to the store. Monitor of inventory Artificial intelligence can also help supermarkets to monitor their inventory in real time. Robots solve problems related to goods, preventing them from running out of stock. Reduced theft Another benefit of AI is reducing shoplifting in retail stores, as it can detect unusual and inappropriate behaviour -whether among people visiting the store or the employees themselves. As a result, more and more businesses are incorporating computers that help security managers identify theft attempts. People flow control Future supermarkets will also control the number of people inside the store, thanks to this technology. Through special tracking sensors, they monitor the flow of people to avoid crowds that might bother shoppers. Currently, some retailers use intelligent traffic lights to direct the passage to certain areas. For example, a red light goes on when the number of people exceeds the pre-established limit. This is a signal that there is no access until the area is cleared. The green light indicates that there is sufficient free space or clearance. And it opens the door for other consumers to enter to view products and make their purchases. Payment optimization Retailers equipped with these tools offer streamlined checkout processes for all customers. Artificial intelligence can identify products placed in the shopping cart and automatically calculate the amount to be paid (like Whole Foods in the US).It then charges it to the user’s bank card, thus avoiding the need for them to wait in line to be served by a cashier. This does not necessarily make shop workers redundant as they can be redeployed as for example, as a host or advisor, so that consumers feel better served. The supermarket of the future? Today, many businesses are trying to adapt to this new trend to become more efficient and improve sales. Although online shopping has become commonplace, most people still prefer to look at items and touch them personally. For this reason, they continue to visit physical grocery stores. Retail Managers are looking to satisfy both types of customers. And the best way to do that is to provide them with good service and convenience when shopping in person. But there are challenges for the sector Implementing this kind of solution is a massive challenge for the industry because of the costs involved. The cost varies depending on the type of software, amount of data it processes, quality, level of intelligence, and accuracy of predictions. On the other hand, you need to hire the right talent and demonstrate that the data collected by AI will not be compromised. Abuse or lack of transparency regarding the use of customer data could affect your relationship with customers. In addition, many employees still fear being replaced by machines. Conclusion Despite these challenges, it is a fact that artificial intelligence for supermarkets is here to stay. The supermarkets of the future will be more innovative. Well-known grocery stores and grocery chains have already successfully integrated this technology. In Italy, for example, Esselunga and Conad have already implemented some of the solutions indicated in the article
Demand for plant products is growing – forecasts in this food category for 2023
More plant-based innovations than ever are expected to hit the market in 2023. Last year was the year of vegan chicken, but in 2023, it is vegan fish and seafood that will prosper in the market. Sustainability will become increasingly important and food companies and chefs will look for new and creative ways to reduce waste. In addition, the plant-based options in the restaurant menu will be improved and expanded. Food waste is a big problem. Every year, 2.5 billion tons of food are wasted worldwide. This contributes to greenhouse gas emissions because rotting old food produces methane. In 2023, more brands will work to solve this problem. To get in touch with our Poland team Contact Us
The Legislative Future of the U.S. Food Landscape
As one of the richest countries in the world, the American struggle with nutrition and overall health is a paradoxical quandary. According to the FDA, approximately 80% of people in the U.S. are not eating enough vegetables, fruit, and dairy, with most overconsuming added sugars, saturated fat, and sodium. Increasing scrutiny of the American food system over the past few years has uncovered dated legislation and ineffective bureaucracy as contributing factors to Americans’ nutritional illiteracy. CPGs may soon need to adjust their business to better align with the changing U.S. food landscape. At the forefront of these legislative advancements is the Food and Drug Administration (FDA) which recently proposed to consolidate the Human Foods Program and redefine the “healthy” claim on product labels. Closely monitoring the details and timelines of these changes is essential for preparing CPG brands for the potential impact on their business and the industry. The New “Healthy” The new interpretation accounts for modern nutrition science, the updated Nutrition Facts label, and the current Dietary Guidelines for Americans. The “healthiness” of a product focuses on the equivalence of a serving of one of the food groups or subgroups (e.g., fruit, vegetable, dairy, etc.) and percentage limits for certain nutrients (e.g., saturated fat, sodium, and added sugars) it possesses. The primary goal is to simplify the nutrition experience for consumers, making the claim “healthy”, a more accurate, identifiable symbol to represent a product’s nutritional content. With the FDA entering an era of reorganization, as was proposed at the beginning of 2023, these adjustments are expected to be more successfully enforced. Potential Impact on CPGs The Consumer Brands Association (CBA), a trade association for manufacturers of consumer packaged goods, is just one of many voices that have spoken up against the impracticality of their rigid approach and recommended an alternative, flexible framework. The CBA stated that the FDA’s current proposal would result in a framework that would automatically disqualify a vast majority of packaged foods. Brands all across the industry are arguing against the strictness of the ruling, with reasons such as the unintentional exclusion of nutrient-rich foods as protested by Baby food company Happy Family Organics to the American Cheese Society’s response that “healthy”, as a claim, cannot be reduced to singular food interaction but should instead be utilized within a complete diet/lifestyle context, as reported by the Washington Post. Furthermore, many food brands find the limits on saturated fat and added sugars (less than 10% of calories per day for ages two and older), as well as sodium (less than 2,300mg per day (or even less if younger than 14)) the most challenging to conform to, with some brands specifically upset at the added sugars limits, which have not existed in past rulings. The Bigger Picture Making nutrition more comprehensive for consumers and regulatory oversight more efficient is foundational for a healthier American future. Yet, the reality of the food and beverage industry and where on the health spectrum many brands currently reside will prove to be an obstacle on the road to successfully bettering American health through legislative means. As the expectations of CPGs continue to change, brands must prepare themselves to meet them or pivot their current business models in response to consumer reactions. To get in touch with our North America team Contact Us
Germany is Europe’s largest market for plant-based food
The German market for plant-based foods grew by 11% to € 1.91 bn in 2022 (source: Good Food Institute [GFI] Europe). Turnover of plant-based meat alternatives in Germany was up 7% in 2022 and even up 13% in plant-based dairy. Data was compiled by this think tank using Nielsen figures from 13 leading European countries which in total amounted in value to € 5.8 bn, up from € 4.8 bn in 2020. In the segment plant-based meat/fish alternatives, turnover in Germany in 2022 amounted to €643m (+7% or +40% vs 2020). Interestingly, inflation was almost non-existent in this segment. Fish alternatives grew in 2022 to € 39m from only € 9m in 2020. Plant-based dairy alternatives grew by 13% to € 552m in 2022. Since 2020, growth has been +43%. Plant-based milk specifically was 48% up versus 2020 compared with a decline of -12% in cow’s milk. Comparing the various countries, Germany is Europe’s largest market for plant-based foods followed by UK, Italy, Spain and France. German growth was also the highest in Europe (+11% and +42% since 2020). Overall, the category remains relatively small, e.g. 13% of total milk, 5% of yoghurt and 1% of cheese. In a parallel representative study, GFI found that 41% of German consumers use a plant-based meat alternative product at least once per month and 25% plan to use more in the future. To get in touch with our Germany team Contact Us
The changes currently taking place in the Swedish grocery industry are historic. Where is this development going?
What is going on right now in Sweden is brutal. A couple of months ago, Lidl overtook ICA Sweden’s hypermarket chain Maxi in terms of customer numbers, and thus the chain is in second spot following another discount chain, Willy’s. At the same time, the new Coop discount concept Xtra is growing rapidly and now reaches 5% of all households with the chain’s 50 stores. Discount is on a roll and overtaking traditional retail markets. Two years ago the fastest growing segment was home-delivery of grocery products, and now this is in deep crisis. Inflation is still at a historically high level, even though the rate was slightly lower in March, and the grocery trade has had a negative sales trend since March 2022. Higher prices have clearly changed consumer buying behaviour. They buy cheaper or fewer goods, which means that the price-adjusted sales trend is strongly negative. The biggest trend right now is “low prices”.
Horeca and out-of-home consumption threatened by retailers in Spain
After the pandemic challenges faced by the 300,000 horeca outlets of Spain a new significant threat overcasts the out-of-home consumption industry. Four out of ten of out-of-home consumption occasions in Spain are no longer taking place in a food service establishment, bar or restaurant outlet. According to a newly issued Kantar survey, those occasions are taking place in the modern retail trade channel which was normally the one used to shop only for in-home consumption. Carrefour, El Corte Ingles or Mercadona supermarkets are the new competitors of the Spain’s 300,000 bars and cafeterias with their new “ready-to-eat” offerings booming in the last 4 years, representing already 3% of the total retail chains’ turnover. We have just learned (through Alimarket magazine in May 23) that Mercadona (the leader in retail with a 26% market share) already has 1,000 stores servicing ready cooked and ready to eat food. This business unit has achieved more than 1% of total Mercadona turnover at €323m in 2022. The ready-to-eat offer in supermarkets is increasing at a rate of 10% at the expense of decreasing sales mostly in the big fast-food chains, according again to the same Kantar survey. The paradox in this new pattern of consumption is the counterbalance in terms of sales switching from other out-of-home outlets which are not significantly being hurt by this trend, due to the appearance of home delivery operators (Glovo, Uber Eats, Just Eat, Deliveroo, etc.) who are dynamising the sector and have already reached a penetration of 3 million Spanish households in a short space of time. Quoting a survey recently conducted by Deloitte and other sources, the food-to-home delivery business could double in the next four years in Spain, helping the traditional food service outlets and restaurants to compensate for the decline in out-of-home consumption occasions produced by new social trends such as stricter drink drive enforcement, cable tv offers, increased average meal prices, etc. This transfer of locations and consumption occasions from one channel to the other and vice versa brings enormous challenges and has to clearly be tackled in order to benefit from all the opportunities arising. To get in touch with our Spain team Contact Us
Organic food consumption and production in Spain – 2022
Per capita consumption of organic products in Spain has gone up to 60 euros a year in 2022 – or +3% over the last 5 years. Steady progress but still some distance from the Danish 384 euros per head or the 187 euros per capita consumed in France, according to ECOVALIA survey in 2022 Annual Report. The Spanish consumer is still spending a modest 3 % of total food and beverage expenditure on organic products even though the total production capability is 10 % if we consider the UAA (useful agricultural area). The leading products in the organic shopping basket are fruits and vegetables which account for 30%, followed by meat with 15%. As for the points of sale it is worth noting that 48% of these products are bought in generalist retailers ,where private label brands are gaining traction with around 38% market share, while 35% are purchased in the specialist channel which is growing its number of stores to a significant 260 stores or a 4% of total stores in modern retail. According to ECOVALIA -the Sector Organisation- the aim is to achieve consumption levels of 200 euros per capita by 2030 which would represent jumping from 3% to 10% of total consumption or multiply by 3 the current per capita rate. To get in touch with our Spain team Contact Us
Bankruptcy looms for 576 supermarkets
Belgium has a very high store density. With 3.08 stores per 10000 inhabitants, the density is substantially higher than in neighbouring countries France (2.92) or The Netherlands (2.53). Obviously this puts pressure on rate of sale for suppliers, but the fact is that Belgium has simply too many food outlets. A study by Gondola and business data specialist Graydoncreditsafe shows that 1 in 6 supermarkets in food retail in our country have to fear bankruptcy. Almost half run into difficulties when an unexpected problem emerges. Covid-19, the energy crisis, high inflation and razor-sharp competition are weighing heavily on Belgian supermarkets. The study shows that 46.2% of POS are in financial trouble when unexpected problems arise. “They are through their reserves and have no way of coping with a possible next crisis,” says Eric Van Den Broele of GraydonCreditsafe. For 16.2% of supermarkets (576), the situation is even worse: they have to fear bankruptcy as their financial situation is structurally bad. With those figures, the retail sector is doing worse than the Belgian average. Moreover, supermarkets’ profit margin has fallen to an all-time low of 1.29%. The survey comes at a time when there is much turmoil surrounding Delhaize’s plans to spin off its 128 full-owned shops. The Belgian supermarket chain revealed that nearly 200 people are already interested in taking over the shops, but the question is whether interest in all 128 shops is equal. “The corporatisation of shops is perhaps understandable, but only a shifting of the problem,” Van Den Broele argues. “Two scenarios are possible: either we will get a lot of bankruptcies in the coming period, or there will be more takeovers and you will only get big players absorbing all the small ones.” To get in touch with our Belgium team Contact Us
A quick guide to how food brands can use digital marketing
Almost every consumer searches information on new products online, gets inspiration through social media or tries to find the best recipe for a vegan Sunday roast. But with plenty of different channels available, it can be overwhelming to know where to focus a food brand ́s efforts in the online world. And without a good understanding and strategy for the opportunities, marketing efforts can quickly become costly. In this article, we will therefore shed some light on the five most important channels to use in digital food marketing to reach your target audience and grow your business efficiently. 1. Social Media: They allow you to connect with consumers, share mouth-watering images of your food, and promote special offers and events. By creating engaging content, you can build a loyal following, build and strengthen your brand and drive sales. There are several platforms that are particularly important for our industry. Facebook is a great channel for connecting with consumers, sharing updates about your business, and promoting special offers, behind the scenes information and events to a slightly older, more classic audience. Instagram is a visual-heavy platform with high audience growth rates, perfect for sharing mouth-watering images and recipes. On this channel, pretty visual content is key, as it also offers the best opportunity to work with influencers. Pinterest is a slightly smaller platform that allows users to create pin boards to save and organize images and links and get great inspiration. It’s a great platform for food businesses as it allows you to create boards with your dishes and recipes, making it easy for customers to save and find your content. TikTok is still a relatively new platform, but it has quickly grown in popularity and is already highly important. It’s a great platform to reach the young audience and for creating short, engaging videos that showcase your food, your business, and some behind the scenes footage. 2. Influencer Marketing: By partnering with influencers on social media, you can reach a larger audience than your own by using the followers of the influencer. Your brand also gains credibility through the endorsement of a trusted figure, that users also buy from (positive word of mouth & sales recommendations). Influencer marketing works best on the platforms Instagram and TikTok, where they are mostly called (content) creators. A relatively new category are so-called adfluencers, who don ́t focus on building their own audience, but simply create great (ad) content for brands in their name. This can be a great way to outsource costly content production. 3. Website: the food & beverage industry is getting better at creating great brand hubs and online shops, that brands can use as their digital hub and go-to-place for users. A brand ́s website is often the first point of contact for potential customers, so it’s important to make a great impression in the first seconds and professionalism is key. 4. Digital ads: A very cost-effective way for food brands to reach a large audience (especially when compared to classic media like print or TV). Companies like Google (with Google display and search ads) and Meta (with online ads on Facebook, Instagram and other channels) allow businesses to target specific demographics and interests, ensuring that their ads reach exactly the right people without scattering losses. This is a great way to generate massive awareness, generate new followers, newsletter-signups or – if an online shop is in place – direct sales at low cost. 5. Email Marketing: When all other digital tools are in place, email marketing is a powerful tool for reaching existing customers over and over again. A newsletter allows you to stay in touch with customers and keep them engaged with your brand on a running basis. Sending out small “purchase reminders” every once in a while and letting them know your brand is available for them, can drive sales and allow long term brand engagement. In conclusion, digital food & beverage marketing might seem difficult to steer, but if these five channels are in place, a brand is prepared for long term success. At SPOONFUL food & beverage marketing, we are a team of specialized experts, focusing on exactly this digital customer journey, branding & online sales activities, that are crucial for the digital success of food & beverage brands in the current times.
The US Consumer Landscape and Strategies for Creating Brand Resilience
Consumer behavior will continue to evolve in response to the volatility of macro trends like inflation, economic downturn, climate change, and geopolitical instability. Consequently, CPGs will work to combat these challenges while adapting to impacted consumers. Implementing strategies that create resilience for their brands will take precedence. Changing Consumer Behavior Common themes in shifting consumer behavior include: ● Price-conscious consumers ○ In a 2022 survey conducted by Snipp, a company in the global loyalty and promotions sector, key insights revealed that 73% of U.S. consumers are buying products on promo more than a year ago, and 57% of them have switched to a new retailer to save money. Whether on-shelf promotions, third-party promotions apps, or trading down to private label brands, consumers are hunting for deals to combat the strain of inflation on their wallets. Without tangible differentiation, brands may struggle to maintain fragile consumer loyalty. ● Return to brick-and-mortar ○ With the COVID-19 pandemic three years removed, consumers are returning to physical stores. The 2022 Snipp survey reported that 60% of consumers mentioned they shopped more in physical stores nowadays than at the same time last year. Increased brick-and-mortar shopping demonstrates a consumer desire to make up for the time lost during the pandemic, seeking an experience when engaging with brands on-shelf. Furthermore, being physically present in a store simplifies comparison shopping for consumers as they can confirm in the aisle that they are receiving the best deal. This shift emphasizes the importance of traditional shopper marketing tactics such as point-of-sale signage and in store demos. ● Value tunnel vision ○ With low to middle-income consumers cutting back on discretionary goods (a majority of these consumers being Millennials and Gen Z), according to Mckinsey’s 2022 consumer survey, value has never been more important for premium-priced products. Even though the price of discretionary goods has not increased as much as consumers may perceive them to, diverting money away from pricier essentials is now a budgetary dilemma for consumers. Consumers are seeking products that, at the very least, are reliable and, at the most, continuously create value through their lifecycle. Strategies for Weathering Volatility The only constant across current macro and micro trends is volatility. Result-focused strategic planning will help armor CPGs as these changes persist. Strategies to consider implementing are: ● Focus on creating and communicating a differentiated value proposition that aligns with consumer wants/needs. ○ Consumer loyalty has little pull in an uncertain economic environment. CPGs must be realistic when evaluating their product and their position amongst competitors. Amplifying their efforts to differentiate themselves from the pack is crucial to sustaining market share in a trade-down economy. Going back to the basics about what consumers perceive as value while identifying opportunities to take advantage of consumer trends, such as sustainability, are a couple of ways to get started. For a more targeted approach consumer data has never been more valuable, so investing in attaining it will keep a brand’s finger on the pulse. ● Invest in improving the supply chain. ○ After years of supply chain headaches, CPGs are eager for reliability. Deloitte’s 2023 consumer products industry outlook stated, “More than nine in ten companies in our survey are investing in supply chain improvement and operational excellence.” Nearshoring is one of the investments that some CPGs have made to help mitigate the risks of dealing with volatile markets. With this increased oversight, brands can attain better data to utilize within the business. Using this data to create scenario-based plans to react quickly to changing market conditions can prove beneficial. All of these efforts can better position a brand to keep its items on the shelf so they may remain top-of-mind to fickle consumers. ● Strengthen an omnichannel consumer experience. ○ With consumers returning to brick-and-mortar and the rise of the Metaverse, there has never been a broader spectrum of places to interact with consumers. Meeting consumers where they are with an omnichannel experience is essential to increasing brand exposure, potential sales, and cross-marketing. Keeping a close eye on the performance of channels can also help brands decide where to invest or divest to better align with their business down the line. 2023: The Year of Action No one can accurately predict the future, yet we can learn from the past. As mentioned in the Mckinsey & Co report: “A look at past recessions makes one thing clear: companies cannot just sit and wait. Companies that outperformed their peers through and beyond the 2008 recession moved harder and faster on productivity, took action to preserve growth capacity, divested more heading into downturns, acquired more as the recovery started, and created operational and financial buffers.” Uncertainty will continue to obscure the way forward in these upcoming months, but action is necessary to remain competitive. To get in touch with our North American team Contact Us
Plant-based food and drink moving in different directions
Nestle have announced they are withdrawing their Garden Gourmet brand (for the second time), along with Wunda (pea based dairy alternative) from the UK market, yet plant-based start-ups continue to dominate food sector campaigns on crowdfunding platforms. Garden Gourmet has been successful elsewhere in Europe, but in signs that the meat-free market is becoming increasingly tough, is now being withdrawn as brand investment has not produced sales levels anticipated and Nestle want to focus resources on their core portfolio. Wunda was launched into the dairy-free fixture in mid 2021 as a more appealing alternative to soya based drinks in particular, but managed to achieve less than 1% of the turnover of Alpro and Oatly combined. Yet at the same time plant-based start-ups continue to attract interest and investment despite the cost of living crisis. Sustainability and health continue to capture the imagination of investors and consumers, with meat-free brand This raising over £8m, one of the biggest crowd rounds for a vegan brand. It seems we can expect further consolidation in meat and dairy free fixtures in particular over the coming months, as retailers and suppliers take decisions on the best use of shelf space allocation and marketing resources. Start-ups will have to demonstrate a clear and wanted, and commercially attractive point of difference to have a real chance of success. To get in touch with our UK team Contact Us
What are the Top 10 food trends for 2023?
In October 2022, NUTRITION HUB, Germany’s largest network of food experts, carried out an on-line survey with 170 experts regarding upcoming food trends. They summarized the results into 10 areas. 1) Sustainable food to protect climate and health This current trend is expected to extend into 2023. It means meat reduction, regional sourcing and eating according to seasonality. It also means transparency of the supply-chain. 2) Flexitarians on the move It was once the norm that meat/fish had to be on the table at least once per day. No longer. In parallel, a move towards rigid veggie/vegan is for some too radical. They see their occasional quality meat/seafood as a luxury, albeit not too often. Plant-based or flexitarian dishes are increasing in popularity. 3) “Snackable content” – a digital therapy on the increase Who would have thought that “silver agers” would make more use of on-line food offers, advice, food therapy and workshops. The Corona pandemic added to this. 4) Convenience food and healthy food to go The question of life-style changes and healthier eating are on the increase. Quickly-prepared meals must no longer appear a negative solution. More and more supermarkets offer better snacks, food in a bowl, salads, cut-fruit or soups. “Meal prepping” is experiencing a renaissance. 5) Personalised food now includes individuality “One size fits all” is passé, the reason being the new flexibility of the working world. Eating times are more individual and dependent on a person’s activity level. 6) Focus on gut health Gut health has become a much more openly-discussed subject since the success of Giulia Enders’ book on the topic. The focus has moved more to fermented products, even in Michelin-starred restaurants. 7) Awareness of healthy food is increasing wellbeing Ideally, more consumers want to link sustainable and climate-friendly food with healthy food. They are showing more interest in superfoods, look for motivation to reduce weight or change eating habits. 8) Protecting our resources by more mindful eating The subject of mindfulness is omnipresent in social media. In the food arena too with care in the choice of raw materials. Women are particularly interested. They want to cut back on what is forbidden in food and gain a more relaxed attitude. 9) Vegan food more popular than ever A Michelin-star for a vegan restaurant? No longer as strange as in the past. Vegan cookery classes are popular and give ideas and recipes. Even traditional meat dishes can be prepared in a vegan fashion. And supermarkets/discounters are creating more shelf-space for vegan items. 10) Non-alcoholic beer, wines and spirits getting more popular Young and old are clearly becoming more critical about the consumption of alcohol. Start-ups are offering more options. Research into the fermentation of fruit juices is improving their taste too. To get in touch with our Germany team Contact Us
Food innovations in freefall in France and around the world
The number of new food product launches has fallen by 12.7% across the world and by almost double this level (23% )in France, where the number has dropped from 3093 new products listed in 2021 to 2374 in 2022. This is according to the 26th Global Food Innovation Barometer conducted by ProtéinesXTC, after 18 months of the Covid crisis, followed by a considerable rise in inflation throughout 2022, in the context of the war in Ukraine causing supply difficulties. Furthermore over the last 6 years, the number of innovations has fallen by 33% worldwide. This decline is particularly marked in Europe, less so in the USA and Asia. Faced with the very uncertain context linked to Covid and then to inflation, manufacturers have been content to expand their ranges. We are now witnessing sharper sales decreases in national brands than in private labels. Nor have sales of new products performed strongly. According to Circana/IRI, in 2017 in France, the average turnover of an innovation was €503,000. In 2022, it fell to €363,000, a drop of 28% in 6 years. But what does the future hold for food innovations? At present, negotiations from both buyers and suppliers are almost exclusively focused on price. But what about the customer experience? In an inflationary context where innovation is blocked by price increases, national brands are focusing more on extending their ranges, a less costly process, rather than developing new products. However, if supermarket chains no longer offer innovations for all shoppers who are keen on new products, it is likely that they will seek them through other distribution channels. Offering new products at reasonable prices is therefore essential for retaining and developing customers. Moreover, we are aware that the last few years, a post-Covid context and the Ukrainian war period have left a strong and indelible mark on everyone’s mind. It is therefore important and necessary to ask ourselves how this context has had a deep impact on our way of life and what kind of new consumer trends will emerge. Today, the retail sector is being transformed by the rise of plant-based foods, food traceability and the adoption of advanced technologies to optimise the supply chain and reduce food waste. Importantly, a return to simple, healthy products seems essential so that these products are not just reserved for the highest social categories. The food industry has to strive to make the internal innovation process more efficient, to reduce production costs in order to be able to offer simple, healthy products at a reasonable price. And those retailers who are able to adapt to these trends will be in the best position to meet consumer expectations and thrive in an ever-changing and evolving market.
Market shares: Aldi, Lidl, Leclerc and Carrefour, the winning quartet
According to Kantar, Aldi, Lidl, Leclerc and the Carrefour group each showed an increase of +0.2 points in market share over January 2023. Intermarché is also doing well, up +0.1 point, while Système U remains stable despite a good increase in consumer traffic. Discount chains in full swing Thanks to its increase in customer acquisition and the strengthening of operations to build customer loyalty, Aldi has confirmed its momentum with a 3.1% market share. For its part, Lidl reached 8.1% by managing to both recruit and stabilise its level of loyalty. A good performance for Leclerc and Carrefour With a 22.4% market share, Leclerc has progressed thanks to its hypermarkets (+0.3pt) in which traffic has grown by +4.5%. The Carrefour group has a market share of almost 20% (19.9%), with traffic up +6% and the acquisition of new 320,000 customers. Traffic in Système U up by +6.9% The Les Mousquetaires group is slightly behind its competitors with a gain of +0.1pt to 15.9%, thanks in particular to its two food brands, Intermarché and Netto. Système U remains stable (11.4%) but their level of traffic has improved by +6.9%, i.e. a much higher increase than the market (+2%). On the other hand, the groups that are losing the most ground (data not quoted in the Kantar press release) are Casino (-0.5 pt) and Auchan (-0.3 pt). To get in touch with our France team Contact Us
Protein from grass as alternative to soy
Two Dutch companies (Schouten Europe and Grassa) will start developing grass-based meat substitutes. These companies believe grass protein is a suitable alternative to soy and has environmental benefits. They will conduct research into the application possibilities of grass protein over the coming years. Grassa currently processes grass into various products for dairy farmers. The idea is for the companies to start working with unlaid grass. While cows convert 30% of grass protein into milk and meat, the remaining 70% is converted into fertiliser. Grassa intends to extract some of the superfluous protein from the grass in advance. The residual product will be consumed by the cows. Grass protein has other benefits; it yields 50% more protein for each hectare of land. Also, cows emit less ammonia by eating unlaid grass. Engaged in developing, manufacturing and packaging of plant-based products, Schouten is very interested in grass-based proteins. However, before grass protein is suitable for human consumption, there are still some obstacles to overcome. Namely, it requires approval for human consumption by the European Food Safety Authority (EFSA). To get in touch with our Netherlands team Contact Us
Promotions to address falling volume
Campaigns can be a way to pick up failing volumes when prices rise, according to Clearon, backed up by NielsenIQ. Clearon is a Swedish supplier owned system that handles coupons for trade and suppliers that want to promote products. Rising prices lead to falling sales volumes. We see this everywhere in the grocery trade right now. When Nielsen IQ studied just campaign volumes during the past year, it turned out that, among other things, eggs, functional drinks and snacks are some of the categories which were able most to increase sales through promotions. An important reason for the increase is that these categories have had a great focus on price campaigns of various kinds, says Anna Ekström, commercial manager for the Nordics at Nielsen IQ. Because if there is one thing that consumers are looking for in times of inflation and price increases, then it is good offers. We see a clear trend right now where consumers are looking for cheaper alternatives to the goods they normally buy, either by looking for extra prices and coupon campaigns or by switching to cheaper alternatives and private labels. This is not surprising and we see a trend for “offers of the week” to gain more space in-store and that sales of goods on promotion are constantly increasing. To get in touch with our Nordic team Contact Us
Rise of Carbon Neutral Awareness for CPG Brands
As the effects of climate change impact communities globally, environmental consciousness continues to grow. A 2022 survey conducted by the IBM Institute for Business Value, found that 51% of respondents said that environmental sustainability was more important to them now than it was 12 months ago. Increased environmental education has motivated consumers to interact with greater discernment toward products. According to the University of Oxford, 26% of global greenhouse gas emissions come from food production, so the food and beverage industry is not immune to consumer scrutiny. Moreover, legislation calling for greater corporate transparency is becoming more common. Last year, the U.S. Securities and Exchange Commission (SEC) proposed the standardization of climate-related disclosures to create more reliable and comparable information for investors in the market. Companies will be expected to conduct climate-related scenario analysis to identify potential risks that could financially impact their business. The proposal also includes a disclosure rule about greenhouse gas (GHG) emissions created during business operations. Consequently, a growing number of CPG brands operating in the U.S. are already taking steps to satisfy these external demands. This strategy entails launching carbon-neutral products to offset the carbon emissions created in the supply chain. Brands Leading the Way Companies committing to offsetting their carbon footprint label their products as carbon-neutral or regenerative. Commonly, this labeling gets granted when companies purchase carbon offsets or credits that fund environmentally friendly projects. Anheuser-Busch, Neutral Foods, and Conagra are some brands that have launched products with these claims. Comparatively, Oatly, the dairy-alternative brand, launched climate footprint labels for its line of U.S. oatgurt products. These labels indicate the greenhouse gas emissions (carbon dioxide equivalents referred to as CO2e) per kilogram of packaged food product. This alternative strategy showcases the brand commitment to lowering carbon emissions, while empowering consumers to make more ethical choices. Regardless of the path taken, a proactive approach towards climate-focused efforts will set a strong foundation in a shifting consumer and legislative environment. Considering the American Consumer The Global Sustainability Study of 2021 revealed that American consumers fall short when making significant changes to their purchasing behavior or way of living to be more sustainable, than their European counterparts. Furthermore, age plays a role as younger generations of consumers (Gen Z and Millennials) display greater flexibility in editing their behavior than older generations (Gen X and Baby Boomers). Yet, when discussing moderate changes, 55% of U.S. consumers responded positively, meaning there is intent and willingness from Americans overall to live more sustainably. CPGs with corporate agility will be able to evolve alongside the American consumer. What does this mean for CPG Brands? Currently, environmental consciousness remains an optional selling point for brands operating in the U.S.; as the impact of climate change becomes more undeniable it may one day become a must-have. American consumers vary in their commitment to sustainability, but a general desire to engage more with environmentally conscious brands exists. Legislative change will help facilitate that engagement as corporations are challenged to consider and disclose their environmental impact. Consequently, retail buyer behavior will evolve to represent those changes; as brands with sustainable practices are prioritized. CPGs should take the current moment to prepare for the needs and regulations that will inevitably come. Analyzing your business model to see where environmental action can be integrated is essential to better position your brand for the evolving U.S. market. To get in touch with our US team Contact Us
On the go catering: the desire for well-being and attention to healthy eating is growing
As 2022 drew to a close we witnessed the recovery of travel after the pandemic crisis. Leading this recovery that involves all channels (from highways to railways and flights) are the younger generations and in particular Generation Z and the Millennials, with the former preferring trains while the latter focused on cars and planes. This recovery has led the Autogrill Group, the world leading operator in catering services for travellers, to enhance its food experience in all areas. At the same time, the desire for well-being and attention to a balanced and healthy diet is also growing. Italians are, in their purchasing decisions, showing a preference for those brands committed to sustainable initiatives and corporate social responsibility. These are some of the major findings of the Next Normal in Travel Research, conducted by NielsenIQ on behalf of Autogrill. This research aimed to analyse consumer behaviour following the pandemic with a sample of 26,841 adult travellers via motorways, airports and railways in Italy, the United States United States, Germany, France, United Kingdom, Netherlands, Switzerland and Belgium. Among the main factors that emerged from the survey is increased attention to well-being and a balanced diet, with growing demand for products that are not only tasty but also healthy. In indicating the factors that determine products chosen, travellers from the eight countries identified naturalness and freshness of food as key elements; the presence of natural ingredients, rich in nutrients and without preservatives; low sugar, fat and calorie content; the origin of the product consumed en route. In Italy, about half the travellers, especially the younger generations, were more inclined to choose healthy foods especially in airports (56%) and railway stations (45%), where longer waits for connections lead people to take more time for a quality break. On the other hand, on the motorway, where breaks are shorter, the choice of healthy products drops to 41%. For Italians and in particular for 73% of travellers at airports, 71% of those using trains and 65% using motorways when purchasing prefer brands committed to sustainable initiatives and corporate social responsibility. Among these, those considered most important are, in order, attention to food safety, the reduction of food waste, the reduction of carbon dioxide emissions, the adoption of plastic-free solutions and the use of zero km products. Autogrill for example has been adopting Initiatives that combine greater attention to ESG issues for some time, such as the processing of innovative green materials, from Wascoffee, developed starting from coffee waste, and Wasorange, deriving from orange juice waste. As well the first Wascoffee Lab concept entirely made with 100% natural and recyclable material, developed from using coffee grounds, opened in Milan Central Station recently. To get in touch with our Italy team Contact Us
Are UK consumers eating healthier products and less sugar?
Despite a major focus on reducing sugar consumption from the UK government, Kantar sales data between 2015 and 2020 shows that only 3 categories saw falls in total sugar consumed over the period – yogurts and fromage frais, puddings and breakfast cereals. A ‘sugar tax’ was introduced some years ago focused exclusively on soft drinks, and this has led to much product reformulation, cutting out a lot of sugar from the shelves. The category grew most strongly in products with less than 5g of sugar per 100ml (where no tax applies) and total sugar sales dropped by over one-third. But over the Kantar review period sugar tonnage in chocolate confectionery increased by 26.9%, and in sweet spreads and sauces by 24.5%. Admittedly some categories (like chocolate) are difficult to change given the nature of the products, but results across the industry fall some way short of the 20% reduction target set by the government in an effort to tackle the obesity crisis with mounting costs for the National Health Service to address. The latest initiatives against HFSS products (High in Fat, Sugar or Salt) have also reduced the opportunities for promotion and secondary placement in stores across a very broad range of products. Early signs are promising for healthier product lines to achieve more shelf space ,which may well support both new suppliers and reformulated products from industry giants. To get in touch with our United Kingdom team Contact Us
Closure stirs emotions
Last month Danish COOP decided to close Denmark’s oldest retailer: Irma. We saw consumers protesting, and the media reported that COOP had proved totally unable to run the Irma chain which it took over some 40 years ago. Two former Irma directors pointed out that COOP itself has driven Irma into a slump. On the other hand COOP´s own MD pointed out that quite frankly, there was no basis for continuing the Irma chain. His explanation for the decision appeared to be leadership. “Many mistakenly believe that Irma customers are just the kind of rich people who don’t care about prices and only shop in Irma. That is simply not the case. Irma shares the most customers with the discount stores, and the discount share among Irma’s customers has just grown and grown, so that an average good Irma customer now shops twice as much in discount stores as in Irma, which has become a supplementary store”. As someone who has written a thesis about Irma in particular, I can add some more personal views: Over the last 40 years there have only been a few profitable enough to build any reserves and Irma could not have survived this time period without COOP. When COOP bought Irma no other chains or groups wanted to take over Irma as discount was emerging. Various Irma managements since then have not been able to reformulate Irma into a long-lasting chain concept. Irma benefited from COOP’s economies of scale in logistics and purchasing volume but were not creative enough to set out a direction for a positioning that could lead to the chain’s survival. The iconic Irma director Børge Olsen, who developed the Irma chain to 160 stores (today 70 stores) instinctively understood “Mrs. Jensen´s ” shopping habits but. Irma has never tbeen he same since. Irma’s concept fits a different era, while consumers’ shopping habits have long since moved on. Perhaps because the business base was vanishingly small. Irma tried several times to open stores outside Copenhagen without success. if there are not enough customers for a given concept in an industry where margins are low and you are dependent on a large turnover, it unfortunately makes no sense to continue. And certainly not in a country that has among Europe’s largest coverage of grocery stores. A sad day, but an inevitable one too. To get in touch with our Nordic team Contact Us
Consumer interest in quick delivery of everyday products remains high
Roland Berger, a leading German consultancy, has just published results of a survey in the “Lebensmittelpraxis” trade magazine. It concerns Quick Commerce (QC) and is entitled “QC- a lasting revolution” 6,000 respondents were interviewed for the study in Germany, France and the UK. Consumer interest in quick delivery of everyday products remains high. Purchases of groceries and drugstore items are increasing in volume. According to Thorsten de Boer, partner at Roland Berger, QC can be seen as an improved level of service. But it really is more, indeed a new channel with its own unique business model. QC focuses on consumer goods with a high rate of sales. It is progressing in particular in urban areas. 46% want to switch their purchases to QC. The Top 5 categories are pharmaceuticals and groceries (each 10%), out of home food (7%), drugstore items (4%) and electronics (4%). 40 – 47% of respondents consider the choice of products available in QC to be too limited. They are however reluctant to pay more for their preferred brands or delivery charges. Consumers expect delivery times to be within 30-60 minutes. For spontaneous or urgent deliveries, 27% consider QC to be important. For goods like the weekly grocery shop, a further 27% think that on the next day or within 2-3 days is sufficient. Only the most efficient players will survive in such a competitive segment. Multi-channel retailers are seen to have 2 entry options: partnership with an existing company or build up their own capacity. Roland Berger consider the partnership option to be the more feasible. Whichever option, staring up is an expensive job in a large country such as Germany, where 11 depots nationally would be necessary to provide delivery within 2 hours and a further 30 shops would be needed in large conurbations for same-day delivery.
Crisps, chocolate and ice cream: no more TV advertising of unhealthy food aimed at children
As from 1 June 2023, the food sector will no longer carry television advertising targeting children under 13. On their own initiative, industry associations are tightening the rules on marketing to children “independently of any legislative obligation”. The Supreme Health Council recommended to stop broadcasting television commercials of unhealthy food aimed at children between 6 AM and 11 PM. Such a measure is intended to help reduce childhood obesity. The food sector decided not to wait for new regulations. Sector federation Fevia, together with Comeos (the sector federation of retailers) and UBA (the Union of Belgian Advertisers), announced their initiative to tackle the topic. “We are going to proactively impose more severe rules,” explains Bart Buysse, CEO of Fevia. “We are going to raise the age limit under which we want to protect young people from certain advertising from 12 to 13. But, and this is also very important, it will apply to all food companies. In addition, the industry will also apply stricter rules to determine which products food companies can still advertise. Any television programme where children make up at least 30% of the target audience will fall under the stricter rules. Ice cream, crisps and soft drinks, not coincidentally the food products which the High Health Council has in its sights, will be the sectors most affected.
Aldi closes in Denmark
The German discount giant, Aldi, is withdrawing from the Danish market. ‘After careful review of the activities in all markets, Aldi Nord has made a difficult but necessary strategic decision to leave the Danish market,’ according to the CEO of Aldi Denmark. This is indeed a paradox because Aldi’s concept seems more relevant than ever before. However, Aldi had faced fierce competition in Denmark with 4 other very strong competitors and has not been able to attract Danish consumers. Rema, the Norwegian discounter, has acquired the Aldi chain in Denmark. Thus, the circle is closed in a way. It was the Aldi founders who inspired the Norwegian Rema founders. The acquisition of Aldi Denmark has been “very emotional” for the Reitan family, “especially for my father Odd Reitan, who traveled to Germany in 1976 to study the business model of the Albrecht brothers. It became the inspiration for the whole low-price philosophy behind Rema 1000. They were great role models for us, so it is great to conclude such an agreement in such a good way”, says Ole Robert Reitan the son of Odd Reitan, referring to the fact that it was Aldi itself that contacted Rema 1000 last summer and presented the idea that the Norwegian chain should take over the Danish Aldi stores.
M&A and Private Equity recent activity in Spain – Status in Good4U Food & Food Supplements
Wellbeing is one of the main trends that we are currently experiencing, also driven by the pandemic. Therefore, the growth of markets such as healthy food, supplements, sports nutrition or plant-based food will not surprise anyone. As we know, growth trends attract investment and this is reflected in a very dynamic M&A and Private Equity market, as we will see below. Spain in particular is a reference as far as food is concerned, as demonstrated by the major industry events that take place in our country. To maintain this leadership, it is essential to continue innovating, an aspect in which Spain also stands out in view of the large number of Foodtech startups in our country. So, how has this translated into deal activity? The healthy food & supplements industry has experienced significant movements in recent years. This trend seems to continue in 2023. Just a few days ago Nazca Capital acquired a minority stake in the shareholding of 226ERS, a company specialized in sports nutrition. Below we highlight our selection of operations from recent years: Abac Capital takes a majority interest in the leading manufacturer of natural antioxidants, BTSA. Nexxus Iberia has invested in Chef Sam, a company that supports brands with sustainable and healthy food concepts in their international expansion and innovation strategies and new product launches. Kensing, owned by One Rock Capital Partners, has acquired Vitae Naturals, previously owned by Oquendo Capital. Its main line of business uses natural derivatives of vitamin E that are mainly used in vitamin supplements and as natural antioxidants. Within baby food, DeA Capital, the manager of the Italian group De Agostini, acquired a majority of Alnut, a supplier to Mercadona. On the other hand, Smileat, manufacturer of healthy and ecological baby food products, has recently acquired a factory from Midsona in Andalusia. Smileat’s capital includes funds such as Quadia, Creas Fondo Social and Clave. In addition to the recent entry into the sports nutrition firm 226ERS, Nazca Capital has in its portfolio Nutris, specialized in functional gummies, or Laboratorios Almond, manufacturer and distributor of vegan and ecological food. It is worth noting also companies that are currently on the market. Frias Nutricion, a plant-based food manufacturer launched its sale process last year. Apparently the transaction has been put on hold after the binding offers received did not meet the expectations of the shareholders. Private Equity firm Alantra is the majority shareholder. All of these transactions have been backed by Food Experts in strategies and marketing working together with Financial advisors
Portuguese retailer market shares
The recent Lisbon Food Affair took place in Lisbon between the 12th and the 14th of Feb and it replaced the previous Alimentária, now taking place only in Barcelona. During the event, Kantar updated the most recent trends including the penetration and evolution of the retailers operating in the Portuguese market. We can see that CONTINENTE from Sonae continues to be the market leader with 27% of the market, followed closely by PINGO DOCE from Jerónimo Martins with 22%. Discounters and convenience retailers such as LIDL and MERCADONA are increasing their share.. The latter reached 3% market share , but with a penetration of only 34%, which means the potential to increase their share further is still high. The losers are INTERMARCHÉ and AUCHAN in particular when it comes to the mainstream market, as well as MINI PREÇO from DIA.
Western companies that have stayed in Russia. What are their risks and concerns?
Consumers in Russia can still buy Western brands, because not all companies have decided to leave the country. And even if they change their minds in the face of growing legal and reputational risks, they will face another challenge – the Kremlin wants to make leaving Russia more difficult and, above all, more expensive, according to Paulina Piwowarek on the Portal Spożywczy Poland. Companies responsible for workers at plants in Russia Large companies that have decided to stay in Russia, such as Procter & Gamble and Unilever, have a complicated balancing act to manage – they must protect their financial results and local staff and not be compromised, even if they pay taxes to the Kremlin. For example, outgoing Unilever CEO Alan Jope said he was responsible for 3,000 workers in Russia and that he did not want Unilever’s four domestic manufacturing plants to fall into the hands of pro-Kremlin tycoons or the Russian state. Last week, Carlsberg warned that its plants could be nationalised if production stopped. Kremlin spokesman Dmitry Peskov responded by stressing that there are the laws for the protection of workers. Companies suspend decisions to leave Russia Bloomberg gives more examples of companies that are changing their strategies for exiting the Russian market. Reckitt Benckiser, the owner of such brands as Strepsils, Nurofen, Enfamil, already in April 2022 announced that it intends to transfer its plants in Russia to another entity or local employees. However, it hasn’t done that yet. Danone announced its exit from Russia in October, but is still looking for a buyer for its assets. Philip Morris International announced a similar step at the end of last year. However, it is still trying to obtain the consent of the Russian authorities. Few companies have been as firm as McDonald’s, which sold its Russian restaurants to a local investor in May 2022. But such a move is no longer that simple. There are fewer potential buyers who are not subject to sanctions, and the Kremlin is increasingly reluctant to approve the sale of Western assets.
Bye bye low prices!
Discounters are on the rise. Once again. It’s always the same old story in Germany when you look back over the last decades: in a recession, discounters gain ground and manage to keep that level until the next slump, moving up yet again, and repeat. The novelty this time is the parallel growth in private label across all channels and significant price increases, of course. 20% inflation on food and drink in Germany – this is unheard of! Notoriously low price levels of food products have always been a challenge for most exporters, for which we develop a market entry strategy here at Green Seed Germany. Will this change now? In light of rapidly soaring cost of living and higher food prices, Germans spent their money more carefully in 2022 and purchased to an increasing degree products on promotion as well as private label value products. The discount store format profited from this in particular, as consumers traded down to premium private label such as Lidl Deluxe in the run up to Christmas. Now is the time for manufacturers to explore private label opportunities in the land of discounters! Discounters now account for 43.7% of grocery retail turnover (IRI) or 36.9% if you include e-commerce and specialist trade (GfK). While the discounters will certainly maintain their strength once again, full merchandise stores still remain relevant to consumers. Another opportunity here, for brands: get innovation on shelf. Easier said than done. Instead of retailers and suppliers working jointly to get new products on shelf, retailers are lost in price battles with suppliers and aggressive price promotions with consumers. How much innovation will this cost us? One of our clients told me they had pushed through no less than five price increases for their branded products in the last 14 months in their domestic market. With German buyers even a single price increase usually results in a fierce battle. Retailers view themselves as guardians of prices and noble advocates of consumer protection. They accuse some suppliers of passing on higher price increases than necessary. In the last half of 2022, negotiations on price and conditions led in a few cases to the delisting of renowned brands. The example of Kellogg’s shows what kind of effect this can have on an entire category: Movement of shoppers (Käuferabwanderung) but also reinforcement of private label. In Germany, Kellogg’s generates 25.6% of turnover with Rewe (retailer No. 3). An analysis of Smhaggle, a price transparency app, shows that in a certain period in 2022 the number of shoppers in Rewe’s entire cereal category decreased by 12.1%. The Kellogg’s brand lost 19.4% in volume, while Rewe’s private labels increased by 17.2% and competitor Nestlé gained 2.2%. This clearly shows even to grocery retailers that brands are needed, despite the steady rise of private label. However, brands need to be careful not to lose the momentum. Now is the time to review brand strategies and fine-tune propositions, and to communicate with the objective to maintain loyal consumers and convince more shoppers to buy their products. Brands need to be ahead of the game more than ever. Several recent studies show that German consumers are less willing to pay for environmentally friendly food. This is obviously a side effect of the current crisis and will surely be only a temporary phenomenon. Germany has always been advanced regarding sustainability topics and brands need to invest now, even if it hurts, in building credibility in this area while proving the general value of the brand itself remains an ongoing task. Yes, this will be reflected in a higher shelf price, but consumers will have to come to terms with price increases in general, driven by climate change, raw material, energy and labour costs. In the end it boils down to this: German consumers (as well as some retailers) should really stop complaining. We will never return to our former low price levels, and this is a good thing. Nicole Guenther Managing Director, Green Seed Germany nguenther@greenseedgroup.de
Spain still going ahead with a 0.45€/KG tax
Despite appeals from sectors across the trade to suspend the application of the new Plastic Tax, the Spanish Government has allowed this to go ahead, effective from 1st January 2023. After the decision some time ago of the Italian government to suspend the law, Spain would be the only European country to follow on with its implementation. The FIAB (Spanish Federation of Food and Beverages Association) pleaded with the Spanish Economy Ministry to suspend the law due to its inflationary effects. It has been calculated that the total new cost of the direct impact for the industry could be of around €1 billion euros and in addition a further €1 billion on manufacturer responsibility. An increase of 0,45 eur/kg in the packaging costs of food would contribute to a current level of inflation in food products of 15 to 20% as compared to the previous year, according to a consensus forecast of several institutions. The impact on lowering consumption could be significant as Spanish consumers are reluctant to accept an additional hit to their budget. To get in touch with our Spain team Contact Us
French retailer Carrefour tests Walmart-style home delivery to customers’ fridges in France
The French retailer Carrefour wants to go even further in home delivery and be one of the first retailers in France to offer a unique home delivery service to its customers. Carrefour is currently testing a home delivery service where the Carrefour delivery driver puts the fresh and frozen products in the fridge and freezer of the client. But in order to be eligible for this service, customers must be equipped with a special locking system for their front door. During the time slot chosen by the customer, the customer unblocks a temporary access to their door for the delivery driver and is warned when they enter their home. The delivery person pus away the fresh and frozen products in the refrigerator and freezer of the person being delivered. The dry goods are placed on the counter. The delivery driver then takes a photograph of the stored groceries and sends it to the Carrefour customer by SMS. This innovation aims to provide an additional service and to differentiate itself from traditional home delivery, a market that is worth almost 10 billion euros in France and is dominated by delivery platforms such as Uber Eats and Deliveroo. As far as retailers are concerned, the drive remains the dominant method of collecting goods online, but home delivery has made strong progress in France since Covid-19. But the necessary installation of a special locking system for the front door leaves one wondering about the complications that can arise and the costs which are associated with it. Nothing has yet been communicated about the cost of this delivery service and the amount that will have to be paid to have access to it. Which leaves one wondering how truly inclusive this service will be to customers. Although this service has already proved to be a success in the United States, retailer Walmart has already been offering this service, to its customers since 2019 but testing started in 2017. In addition to a door locking system that customers must also authorise, Walmart employees wear cameras to provide proof of their service and avoid possible suspicions of theft or damage to the customer’s home. The necessary installation of the secure lock does not seem to pose a problem for customers. In fact, in January 2022, Walmart announced that their home delivery to customers’ fridges called InHome would be available to 30 million households, compared to 6 million households previously. As a result of this expansion a further 3,000 employees are planned to be hired to support the expansion of the service. Despite scepticism, home delivery to customers’ fridges might soon be common to everyone. To get in touch with our France team Contact Us
A Supermarket Super Merger
The 12% increase in prices on American supermarket shelves is not the only grocery news grabbing consumer attention in 2022. In October, two North American grocery giants, Kroger and Albertsons, announced their intent to merge in a historic deal worth $24.6 billion. This combining of forces is a competitive response to giants like Walmart and Costco. Such a consolidation would provide the financial and operational benefits necessary to compete against those industry leaders. A merger of this size will not come easy, and a long road lies ahead for Kroger. Amongst the obstacles are: regulatory approval and a minefield of vocal stakeholders with varied optimism for the deal. Company Insight Kroger and Albertsons are two of the largest supermarket chains in the United States, owing their success to years of regional acquisitions. Grocery Dive reports that currently, Kroger holds the second largest grocery store market share in the U.S. at 9.9% with Albertsons at 5.7%, compared to Walmart and Costco’s, 20.9% and 7.0%, respectively. Combined, Kroger and Albertsons currently employ 710,000 associates and operate 4,996 stores, 66 distribution centers, and 52 manufacturing plants. Together, they will serve 85 million American households. The Arguments There is a lot of speculation about the true impact this merger will have on stakeholders. Kroger has defended the merger as essential in furthering their success in such a competitive market. In a statement, Kroger Chief Executive Officer Rodney McMullen said, “We are bringing together two purpose-driven organizations to deliver superior value to customers, associates, communities, and shareholders.” Kroger has stated that many benefits would result for those stakeholders, such as lower prices for consumers, further investment in their employees, fresher products for communities, and higher total shareholder returns. Yet, critics of the merger remain skeptical about who it will actually benefit. Amongst these critics are Kroger-Albertsons employees who fear divestitures will lead to store closures and layoffs. In addition, politicians have pushed back with their concerns about what a merger this size would mean to consumers and the industry. Many feel that continued consolidation of the grocery industry could increase the likelihood of coordinated pricing behavior, facilitate the creation of food desserts, and be anti-competitive. A U.S. Senate Judiciary hearing took place in November 2022 to directly question Kroger and Albertsons executive leadership about these concerns. In the upcoming year, Kroger will need to successfully navigate an intensive review by the United States Federal Trade Commission (FTC). The FTC will analyze the merger’s impact on competition and consumers. If approved, the deal is expected to close in early 2024. What This Means for CPG Brands While consolidation in the grocery industry presents significant opportunities for brands, it does require a degree of caution and planning before engaging with such a meaningful retailer. To be successful with the new Kroger-Albertsons group it will require a validated value proposition, a proven track record in the other retailers, a smoothly operated supply chain to service over 4000 stores, and significant investment in marketing, promotions, and team to unlock this opportunity. To get in touch with our North America team Contact Us
The role of PR in a social media dominated world
By Elinor Tyler, Head of Consumer Division, Storm Communications In today’s digital-first world, food and drink brands often question how public relations fits into the marketing mix. If they have a solid presence on social media, does that suffice? Is there any merit in courting the traditional media for editorial mentions if newspapers and magazines are increasingly taking a backseat when it comes to consumers’ media appetites? The answer isn’t straightforward and for every FMCG brand the answer differs because of many nuanced factors. However, there are some truths that can help food and drink brands navigate whether PR should be a key player in their comms strategy. Firstly, don’t forget that having a brand presence on social media is a form of PR. You may be the ‘journalist’, videographer, photographer, and publisher, but the content that you post is still working as a public relations tool. And journalists will often refer to social media channels when writing about your brand: there is a symbiosis in place that cannot be ignored. Read any article on an online media outlet about a food trend or product consumers are going crazy for, and you will see that journalists use quotes from the public that have posted on social media. The reality is that having a presence on social media is considered a hygiene factor nowadays for consumer-facing brands. And although it is a PR tool, there are many reasons that social media alone cannot fully maximise a brand’s PR potential. Be assured that traditional media is also very much alive and kicking! While readership of hard copies of newspapers and magazines is in decline, collectively they are still read by millions of consumers. Add to that the fact that their online editions are read by millions more readers still, they offer an excellent platform to get your story out there. And no brand is going to say no to PR coverage on a prime-time TV programme or radio show – they continue to be worth their weight in gold. It is also worth bearing in mind that off-page SEO, delivered via a compelling PR story placed in national digital news outlets, has the ability to rocket power traffic to a website and engage consumers in a way that advertising or a proprietary social media channel rarely does. When brands consider their audience, it may be that traditional PR – namely media relations to generate editorial mentions – remains the best route to PR the brand or product. A general rule of thumb is that the older the audience, the less valid social media is, and the more important media relations is. Again though, depending on the brand, there can be subtleties that can turn this rule on its head. The truth is that for most food and drink brands, to maximise their PR potential it is crucial to implement social media marketing and a more traditional PR strategy. The bias towards these disciplines will change depending on the products and audience, and the tactics employed for each will differ markedly because of these factors, but doing both will ensure a more robust and effective marketing approach. To speak with someone about the right PR strategy for your brand, contact hello@stormcom.co.uk.
The market for meat substitutes is no longer in growth
Within Europe, only the UK spends more money per head on meat substitutes than the Netherlands. On average, Dutch people spend three times more compared to other countries in the European Union. However recently this trend is showing a decrease. This not only the case for The Netherlands, but also Great Britain, Sweden, Norway and Belgium. According to research conducted in 2021, 26% of the Dutch were willing to swap meat and dairy for plant-based alternatives, however, this does not seem to have materialised in 2022. Turnover of plant-based products fell by 5.7% by week 24, while the volume of sales dropped by 6.4%. According to Nielsen, this is explained mainly by the fact that the assortment expansion of this range no longer contributes to category sales growth. Additionally, promotional activities caused an increase in the quantity of meat substitutes sold until 2020. Promotional pressure on the meat substitutes group is still increasing but is also reducing value. Where promotions were 30.8% in 2020, they are now around 37.9%. This is much higher compared to the 23.5% average per supermarket on the remaining range. Another factor making consumers buy fewer meat substitutes is price. Meat substitutes are on average still 25% more expensive than their traditional counterparts. Furthermore, Nielsen also examined the development of the various segments within meat substitutes. The meat substitutes that most closely resemble meat perform the best, with the remaining sales being achieved from processed plant-based meat, plant-based burgers and other alternatives. Today, meat substitutes represent 8% of turnover and 6% of the volume within the meat and meat substitutes category. To get in touch with our Netherlands team Contact Us
How are consumers responding to the cost of living crisis?
Switching to discounters, buying less alcohol and sacrificing some of their sustainable shopping habits are among the findings of a Lumina Intelligence survey which reveals how habits are changing and which product groups are most affected. Concern is growing about the increases in grocery shopping bills, with 61% of the 45-54 age group being the most anxious, while one-third of shoppers say they have started shopping at a discounter and a further 16% changing their regular ‘Big 4’ retailer. Alcohol is the category consumers are cutting down most on (47% of consumers), while cakes, biscuits and confectionery (45%) and bagged snacks (36%) are the next in line for saving in the household shop. Interestingly, although online shopping has been reducing as a share of overall grocery since the re-opening post pandemic, some 38% of younger age group 18-24 say they have started online shopping to reduce journeys, mindful of fuel costs. This age group is also the most likely to buy products with sustainable packaging whatever the cost (23%), while only 6% of the 45-54 age group claim to do so. The sustainability issue appears to be polarising. Across the UK 24% of shoppers believe that retailers should continue to prioritise sustainable options, but this falls to 10% in Wales. Consumers are calling out for keener prices on sustainable options, with better information, more promotions (56%) and more advice on how to be sustainable on a budget all being asked for. To get in touch with our UK team Contact Us
America is open for business
“America is open for business” With uncertain global economy and financial stress hitting households, a commonly asked question to Green Seed North America is “should we launch our retail brand in the US today?” The answer is YES – America is definitely open for business. Some businesses might think this is counterintuitive given the persistent talk of a recession, however, our view is that strong global brands, with differentiated, great tasting foods will succeed in this market. And if they can succeed now, then they will thrive once the economy gets back into stronger growth. For brands to realize success, they will require careful planning, patience and investment. So, why are we so bullish on the US? Premium Innovation is still relevant: Consumers continue to look for innovation in the marketplace and following the pandemic retailers are increasingly looking to brands to make the shopping experience more exciting. Premium food and beverage retail will strengthen as consumers shift spending from restaurant dining to in-home dining where the price of a high quality dinner and bottle of wine is significantly less than at a restaurant. We witnessed this in the 2008 downturn, and expect to see it again in 2023. Retailers need ideas (not just pricing) to fuel growth : While inflation is running at double digit in Europe and the UK, the US is seeing inflation cool off in recent months, and local economists are describing a “soft landing” for US investors and businesses. Newspaper headlines are no longer focussed on the cost of energy or grains as they were 8-12 months ago, and while certain consumer goods segments might see a continued uptick in pricing, we do not expect to see this continue broadly for retail food and beverage. Retailers are stocking brands that can growth their categories and consumers are spending on brands that are delivering genuine value to them. Brands can adopt a “test and learn” approach to the market : The US is a highly fragmented trade, with many large, medium and small retail chains, and many classes of trade like natural, specialty, club and mass. This allows brands to test and learn their value proposition on a regional basis, a in specific channels (i.e. Natural) or even with a specific customer. And importantly, test markets in the US represent material scale given the sheer size of the market. Many successful brands are using this tougher economic climate to fine-tune their offering with an eye towards scaling in 1-2 years. A US business can become a profit driver for international businesses : A strengthening US dollar means that the sales contribution from the US deliver stronger financial results to the international business. While the cost of trading in this market are higher, the returns are much greater. With a considered approach to planning, and a tight launch strategy, a US market launch can be extremely lucrative in both the medium and longer term. Our firm view is that to realize market success, brands require careful planning borne out of a deep understanding of the market. Businesses that understand the US retail and competitive landscape, US consumer needs and wants, and the financial and operational ways of working in the US and apply this thinking into a staged launch plan are set up to succeed. Green Seed North America is here to help you on your growth journey. Please feel free to reach out if you would like to discuss how your brand can launch into this market. To get in touch with our North America team Contact Us
Private label is booming in Germany
The effect of increasing inflation is reflected in recent consumer behaviour. Brand quality and sustainability are no longer as important in food purchases. And price is returning to its old major role with 62% of respondents stating it has become more important to them according to a survey commissioned by Bonn-based strategy consultants Simon-Kucher in September 2022. During lockdown, attitudes towards price amongst the 1,000 respondents remained unchanged and regarding product quality increased in importance. The 62% figure with regard to price is almost double that of pre-lockdown. This explains the increase in interest of consumers in private label, beyond a general trend towards purchasing less and spending less. 46% of respondents state they buy mainly or primarily private label products, rising to 66% amongst lower income households. This trend is particularly apparent in the categories fruit/vegetables, detergents/cleaning products and cosmetics. However, with snacks or confectionery the private label share remains relatively stable.
Plant-based consumption rocketing in Spain
Half of Spanish consumers have incorporated plant based food and drinks into their basic diet according to a recent survey issued by the “Observatory of Plant-based consumption in Spain 2022”. The survey took place in the first half of 2022 among 3,000 people and was organised by the newly created association Somos Vegetales (created by the main plant-based food and drink manufacturers such as Frias, Alpro, Liquats Vegetals and Iparlat). Almost one-third of respondents claim to consume plant-based products on a daily basis and another 35% report having such products 2-3 times a week. According to the survey the reasons for choosing plant-based products are mainly for health – 59% of participants (better for you or intolerance factors), or as part of a flexitarian diet for 29% of respondents. Some 25% state that their motivation based on a “better for the planet” option. Other interesting conclusions identified by the survey are: – 52 % believe that there are not enough available products in the retail offer – 26% avoid these products due to high pricing and 24% for taste reasons – Mainstream products in this segment are milk alternatives and yoghurt with penetrations of 97% and 46 % respectively, followed by meat alternatives with 45% Between 2019 and 2021, the value of plant-based sales increased by 48% reaching €448m, and analysts forecast an annual increase of 10% from now till 2025 (Alimarket magazine).
Good Values can be Good Value
Good Values can be Good Value Shoppers will be spending an extra £60 to buy the same items this December as last year, and all the leading retailers are now engaged in furious competition to claim the lowest price Christmas dinner. But while the short term battleground is focused on prices, there is a risk that some retailers may be risking the longer term loyalty of their shoppers, if that is the only differentiator. It may seem scant consolation but Kantar’s latest food survey shows that UK grocery inflation fell in November for the first time in 21 months – admittedly only down 0.1% and still at a very high level of 14.6%. Over the last year own label sales have grown 11.7%, while the cheapest foods are up 46.3%. We cannot say for certain that one small decline means inflation has yet reached its peak, but the balance of economic forecasts seem to suggest that the picture may look very different in 6-12 months’ time, with inflation perhaps into the low single digits. It doesn’t necessarily mean that just because inflation is more under control we would then be on a path of meaningful economic growth. But things may just feel better. How should retailers react? Clearly the discounters are in a strong position today in terms of messaging. Their entire proposition rests on having the lowest prices and their shoppers can be confident they will find good standard products and almost certainly spend less than they would elsewhere – even if their choice may be more limited. Meanwhile the remaining players in the grocery market – which, let’s not forget, account for 80%+ of total food and drink spend – are determined to show a focus on value. That’s not only retailers like Asda and Morrisons whose offer is targeted at budget conscious shoppers, but also those towards the other end of the price scale. Since launching its ‘Remarksable Value’ campaign, premium food retailer Marks & Spencer has reported that one in every four items per basket are items from this new value range. Its closest competitor in the market for the affluent shopper is Waitrose, whose recent performance has been less than stellar. Despite the inflationary environment its sales actually fell 3.1% in the last quarter, although Kantar data in the 12 weeks to 2 October show that it is losing less sales to Aldi than any of the other leading multiples. Pitching premium products to retailers At Green Seed UK’s recent pitch meeting with Waitrose for a new super-premium, organic food brand client, the question we were asked, before even managing to flip to the first slide in the deck, was ‘What are you going to do to help us with the cost of living crisis?’ The fact that we won a listing for 4 skus was not because we had a lowest priced branded option for their category (the opposite in fact), but that we were able to articulate the real value of the range and a pricing rationale which both retailer and consumer can understand. Retailers can also claim to offer good value for higher priced items if they replace other more expensive areas of spend for the shopper. Consumers cutting back on eating out – perhaps also trying to wean themselves off a financially ruinous pandemic-fuelled takeaway habit! – are being attracted to ‘dine in’ for less with interesting menu meal deals, for example. ‘Good values can be good value’ is the theme from Waitrose’s advertising campaign this autumn. It speaks to their ethical credentials, integrity of sourcing and fair payments to farmers. While all retailers do indeed need to show what they are doing for shoppers in a cost of living crisis, they also need to remain true to their own values to retain the long term loyalty of their shoppers, to maintain or grow their position in the market. Best wishes of the season!
Real Climate Impact – or Greenwashing?
With the COP27 summit now in play in Sharm-El-Sheikh, the spotlight is on the climate debate. Turning ambitious pledges into concrete actions is the official focus. It is positive that the topic is now brought up in board room discussions and that sustainability strategies are today an integral part of corporate decision-making. But we need to avoid greenwashing. Also retailers are struggling to know how best to address this challenge. This month Lidl Netherlands has decided not to sell any fruit & vegetables transported by plane. From a marketing perspective, one can say that this is a good message. Their customers are environmentally conscious and want to make a positive contribution which makes them feel good. Despite being a positive move, the real impact is however very limited. Only 0.2% of worldwide food is transported by air. Food transport accounts for 6% of the ecological footprint. What about local tomatoes grown in greenhouses in Northern Europe versus tomatoes grown in the open air in the southern hemisphere and which require transportation? Following the seasons obviously helps. According to the University of Leuven, the origin of the food is not that relevant, even if we use all kinds of labels. Whether an apple comes from Belgium or New Zealand, its origin does not have any real environmental impact. It is the food which ends on our plate and how it is produced which matters. The food industry is an important player in this debate. If we want to limit global warming, we will have to look at our food production, which is responsible for 25% of the greenhouse gas emissions. Agriculture and land usage are responsible for 75% of this. In particular meat production – especially beef – has the biggest negative impact. Measures to promote the consumption of fruit & vegetables do not serve the climate objectives. To save the planet, we need to focus on a healthy diet and promote a good balance between plant-based and animal protein. The current Western diet needs to evolve in that direction. It isn’t just a question of becoming vegetarian or vegan. Retailers can have an impact, but they often contradict themselves. Attacking over-consumption is far more effective for the environment. But this runs counter to their economic model. Pushing plant-based solutions whilst still heavily promoting (red) meat seems a real contradiction. Applying an everyday fair pricing model to meat creates a win-win for all parties in the food chain. It will take out the excesses in meat consumption and ultimately meat production, reduce the impact on land, offer a fair pricing model to the farmer and contribute to a more healthy lifestyle. Planet Earth will thank you. Philip Horemans Chairman Green Seed Group Data source: Tessa Avermaete, Bio-Economy University Leuven (B)
Organic food and drink sales in Denmark and Sweden carve out a significant share
Denmark and Sweden are often called pioneering countries in organic food and drink. They are among the top performing countries when it comes to the organic share of total sales of food and drink. Denmark has the largest share at around 13% and Sweden has a share of around 9%. Both countries have set goals to achieve a 60% organic share of all public procurement of food and drink by 2030. Over the last year Sweden has lost momentum and the share of organics has decreased whereas Denmark has continued the development albeit at a slightly lower pace. Swedish penetration has been influenced by the fact that the largest retailer ICA has withdrawn promotions on organic products. It is remarkable that Denmark so far is staying at a level of 13% organic products. Stakeholders in both countries are confident that the positive development of buying organic products will continue over the next decade despite this slowdown which is viewed as temporary. Total sales of organic reached €2.46 billion euro in Denmark and € 3.3 billion in Sweden in 2021.
Plant based meat alternatives drop in sales when merchandised next to meat
In a recent trial undertaken by Asda to ‘nudge’ consumers to try out plant-based alternatives when they are in the meat products aisle, sales of plant based products actually decreased in sales by 30%. Sales performance was much better when products were merchandised in a dedicated plant based fixture. When able to make direct price comparisons between meat and plant-based versions of similar products, shoppers were reluctant to buy meat alternatives. The results of this experiment also showed a worse sales performance in stores in more deprived areas, where price pressures are more keenly felt. In another concerning development for fresh vegetables, data from Veg Power, a not-for-profit alliance aiming to increase vegetable consumption, indicates that vegetable consumption has decreased in the UK by 7.5% over the last year. A YouGov survey reports that 26% of people are buying fewer fresh vegetables, increasing to 49% in lower income groups because of price increases, and concerns are rising on the health impacts of this trend.
Dutch Retailer Albert Heijn rolls out dynamic discounting
Products approaching their best-before dates are now being discounted via an electronic system at Albert Heijn. Discounts can extend up to 70% of the regular selling price. With this new initiative, Albert Heijn is saying goodbye to the 35% discount sticker. The exact discount will be shown on an electronic shelf tag. Albert Heijn aims to use dynamic discounting to reduce food waste and is hoping to avoid leaving unsellable products at the end of the day. Alongside dynamic discounting, Albert Heijn has also recently introduced leftover packs, an initiative which Albert Heijn believes will help it save around 4.5 million kilos of food waste annually. Albert Heijn is also reducing costs on other fronts: all chicken products are now packed in a bag instead of a tray. This will save 95,000 kg of plastic per year, a saving of 70%.
Food Industry taken hostage by energy cost increases
We are witnessing on a daily basis a continuous newsflow on disastrous increases in energy prices. Driven by the Ukrainian war, the pricing turmoil is not only impacting consumer households but is also having major impact on lots of Industry sectors including the international food sector. For example, in June 2022 energy prices were 300% higher than in January 2021. Prices of food raw materials went up in the same period by 36%. Experts expect that by 2022 energy costs will represent 7.5% of total costs for food products versus 1.5% in 2020. Due to the various factors increasing costs food products on average have become 20% to 30% more expensive in the last 12 months. When it comes to the coming end of year negotiations with international trade partners it is extremely difficult, almost impossible indeed, for many food companies to take a clear stance with regard to their future cost price development in relation to the future buying prices they need to negotiate. As a result of the explosion in costs and the fact that many suppliers won’t be able to fully pass on these costs in time to their trade partners, 2023 may be a year when many companies will cease trading, which will have major impact on the international and local food sector. In addition to the impact on costs, the crisis is also having many other side effects. For example, producers of industrial CO2 gas needed for production purposes halting production from one day to another due to too high gas prices, which is causing bread baking factories to come to a standstill for several weeks in order to find alternatives. So apart from higher prices this crisis also has an immediate impact on the continuity of the international supply chain. Structural storages in the supply chain in a number of food categories are already beginning to appear, affecting everyone in the supply chain including the end consumer. Governments in several European countries are already actively seeking (temporary) solutions to address the further development of these energy prices in order to stabilize their local food industry and supply chain. However, in many other countries governments are more hesitant in taking such decisions with the result that food suppliers of these countries may be faced with a structural international competitive disadvantage which may have a long-term effect on international food supply dynamics and could have a major negative impact on the future of the local food industry in these markets.
In France discounters Lidl and Aldi showed the strongest gains in August
According to Kantar, discounters Aldi and Lidl achieved the best performance in FMCG and fresh food between August 8th and September 4th 2022. In detail, this gain is explained for Lidl (now at 7.8% market share) by “more customers with larger baskets” and Lidl’s popularity continuing to rise, according to Kantar. At Aldi, it is the recruitment of 444,000 new customers that has enabled it to increase its market share to 2.7%. The number one French retailer Leclerc gained 0.2 points in share over the period and welcomed 725,000 new customers to their stores. Carrefour hypermarkets, together with its local stores, are driving the group’s growth. This was enough to widen the gap with the next largest groups (Les Mousquetaires group fell by 0.4 points – a decline entirely attributable to its flagship brand Intermarché) and Système U, a rare occurrence to be noted, fell by 0.1 points). More generally during the period, hypermarkets performed rather well, as is the case with Auchan’s hypermarkets, which have seen an increase of +0.2% in market share. This development corroborates the comments made at the end of August by the directors of Auchan Retail. They noted a significant improvement in their activities in France, due in particular to strong investments in prices. This positive dynamic is part of a period in which the French have increased their spending. Kantar reports that the French have increased their spending on FMCG and Fresh foods by +4.9% in August when compared to the same period in 2021. This trend is linked to “an increase in the frequency of purchases which compensates for the drop in basket size in an inflationary context”.
Shrinkflation in Spain
According to last IRI Infoscan survey in Spain (in their last 12 months rolling to June 22), the average price increase for food categories was 6.4 % higher than the same period in the previous year. One of the levers used by food companies not to appear to increase prices is shrinkflation which in Spain is already affecting to circa 10% of the products on offer according to the OCU (the Spanish Consumers and Users Organization, the most relevant private association in defence of consumer rights). This practice – which is rejected by 62% of consumers (Gartner survey in June 22) – may well affect the reputation of companies abusing it especially in a context of serious activist initiatives such as the one carried out by OCU in Spain. Looking more widely, Bloomberg has recently titled one article “Shrinkflation is Sparking Fury (in Germany).” Products from well known brands in the main categories of soft drinks ( a 2l bottle PET reduced to 1.75l and sold at same price), dairy (5gr. less in the same yoghurt pot at the same price), frozen fish, processed meats (1 slice less in the same pack at the same price), pasta, etc have been taken to the regulatory body CNMC ( the official safeguard of anti competitive practices) by OCU on the basis of lack of information and possible anticompetitive behaviour. OCU has also appealed to the Spanish Consumption Ministry to issue clear guidelines in terms of information on quantities and related prices where the price per kilo or per litre regulations are not clearly complied with or even displayed at all on shelf.
Santander and Green Seed Launch Partnership to Navigate International Markets
Banco Santander is the 4th largest banking group in Europe. Our geographical footprint, combined with that of our alliance partners, covers markets that account for 85% of world trade flows. These two facts have enabled us to create a unique offering in the Corporate & Commercial banking space. Like most banks we offer tailored financing options to support your needs, but what makes us different is our suite of non-financial services to support your company’s international journey every step of the way. For food and drink businesses expanding overseas we can offer introductions to local partners, provide multilingual support, link you to our team of country and sector specialists who can help facilitate new relationships with potential suppliers and customers and help you access our newly launched subscription offering; the Santander Navigator. Santander Navigator collates years of experience and knowledge into one online portal. The portal is a gateway to identifying growth opportunities, navigating bureaucratic challenges, optimising logistics and building connections internationally. As every food and drink business is different, your experience will be tailored based on your needs. You’ll be able to: Discover tools and solutions to help you grow and optimise your international trade Grow in confidence by learning new skills and connecting to global opportunities and events Stay on top of your market and/or product category with the latest insights at your fingertips Enhance your logistics options with exclusive discounts on Freightos Learn from others through a community of like-minded people and market experts Find a network of selected providers from across the globe Achieving your international ambitions can be complex and confusing and Santander Navigator aims to help you find your way and give you the confidence you need to take the next step. We are proud to announce the Greed Seed Group as one of our select Santander Navigator providers. Their expertise in the Food & Drink sector, their local presence across multiple markets and the successes they have been able to deliver for our clients are only a few of the reasons we are celebrating this collaboration. Together, Santander Navigator and Green Seed can open a world of opportunity for you and your business and support you in taking the next step on your journey towards international growth. Scott Reeves, Key Account Manager, Santander Navigator, International and Transactional Banking, Santander Corporate & Commercial Banking
Future growth trends in e-food
A recent study published by the PwC subsidiary Strategy& estimates that the German e-food market could treble by 2030. Other Western European countries could grow even faster. The study was based on interviews with 57 food experts in Germany, Great Britain, France, the Netherlands and Turkey. The study reveals that e-food could account in Germany for 11% of grocery sales by 2030 (currently 4%), in the UK for 26% (currently 8%) and in the Netherlands for 25% (currently 8%). The same respondents expect even more growth by 2050, when e-food could reach 35-50% of total grocery. For Germany, the expected figure considered possible is 43% by 2050. This market development reflects a current combination of high levels of consumer uncertainty with ever increasing high consumer expectations. In this situation, classical grocery groups such as REWE (No. 2 in Germany and also owns a share of FLINK) compete with new e-food groups such as GORILLAS or internationally with KNUSPR and ODA. Currently the start-ups whose concepts are based on speed of delivery are suffering from high cost and changes in consumer behaviour. In total, 90% of respondents think e-food can become a profitable business by 2030 and that on-line sales are destined to cannibalise regular in-store sales, which could experience a sales drop of around 35% by 2030.
New Post-pandemic Shopper types mark significant shift in purchasing behaviour
30% of respondents to a NielsenIQ Economic Divide survey say they have totally different priorities from 2019. Much has been said about changing priorities, mindsets and shopping habits of consumers as a consequence of the pandemic. Equally important now however, are the new economic pressures on households, which might in some instances reinforce changes in post Covid behaviour, or even work in the opposite direction. NielsenIQ identify 5 new consumer groups. The biggest of these are the ‘cautious’ – 39% of the total, who are cautious with spending even if they did not suffer materially during the pandemic. A further 27% make up the ‘unchanged’ who continue to spend normally and 8% (the ‘thrivers’) who actually prospered during the pandemic. But 15% of UK consumers identified as ‘strugglers’ (already experienced job loss or financial hardship), and 11% are ‘rebounders’, whose income suffered during the pandemic but has now recovered. Shopping habits have already changed markedly in the last few months, with a shift to own label and over 20% of strugglers avoiding buying certain products at all if their basket cost is getting too high. Even one third of thrivers are buying smaller packs of favoured brands and indeed are the most likely of all groups to buy on promotion. Brand owners will need to adapt their strategies faster than ever to adapt to new priorities and an uncertain future environment.
Must-Try Vegan Marketing Strategies
As we move toward a more eco-friendly way of life, and people try to make sure they embrace greener living, we are beginning to see a rise in the number of people swapping their diets. There are a lot of different diets that exist, but for the most part, we are seeing a rise in people going meat-free, and, more specifically, embracing vegan food. This has opened up veganism and vegan products to a completely new audience and has afforded businesses fresh opportunities. If you are trying to sell some of your vegan products, and you want to maximize your lead generation and sales potential, you’ll need to have a strong vegan marketing strategy. That means using a diverse range of options that can help attract more people to use your products. Check out these essential, must-try marketing strategies that can help you when looking to market your vegan products. Definition of Veganism Simply put, veganism is defined as the practice of observing a diet that is made up solely of food and drinks that are not wholly or partly derived from animals. This also expands to products outside of food and drink as well. Those looking to start a plant-based diet these days have more options than ever before when it comes to eating vegan. According to statistics around 4% of the population of the United Kingdom is vegan. It’s pretty clear these numbers are going to grow in the coming years, and we could well see a stark rise in veganism over the coming years. Showcase Your Vegan Dishes on Social Media Social media is one of the biggest weapons in your marketing arsenal. It is essential to try to utilize what social media has to offer you, and when looking to market your vegan products and dishes, there is no better platform than social media. Think about how delightful, succulent, colourful, and tasty your vegan products will look in amazing Instagram snaps and punchy Tweets. Being able to use social media and its power, combined with top-quality visual marketing, is one of the best options you can use to showcase your dishes and impress potential customers. Stand Out From The Crowd With Catchy Messages Customers need to be impressed. They tend to overlook the same old boring and generic marketing approaches that have been used for years. In such a competitive market, where audio, visual, and video are so commonplace, the need to make an impression by standing out is more important than ever. Catchy messages, slogans, or taglines are a vital part of being able to achieve this, and you need to understand the best ways of being able to improve and assess this moving forward. Standing out from the crowd is one of the key things you can do to make the most of this, and you have to consider the best ways of being able to achieve success here. Collaborate with Social Media Influencers We all know the power of social media these days, and more than half the world now uses social media sites. In fact, it is estimated that over 220 million new users have joined social media sites in the past 12 months. Because of this, you should be looking to take advantage of this global audience by teaming up with renowned and respected social media influencers. There is a lot to consider when you want to make the most of this, and you need to be sure you collaborate with the right ones. You can get them to endorse your products, or to make posts or videos reviewing your products in a positive light. It is estimated that close to 70% of teens trust the opinions of influencers over celebrities, and this illustrates how powerful such a collaboration could become for your brand. Define Your Brand Personality Defining brand personality is essential for generating success as a company, and for attracting more people to your company. You have to try to make sure you come up with some of the best options for helping you with this, and defining your brand personality is going to be integral to helping you sell more vegan products. Your brand personality is how people view your brand based on how it looks, the things you say and do, and the values you espouse as a company. This is why it is integral to make sure you have positive, vegan-friendly values, and a focus on cleaner eating and a healthier way of life moving forward. Vegan SEO Search engine optimization is one of the key things you can do to make sure you market your company and products more effectively. This means you need to try to make sure you utilize vegan-based SEO as much as possible. There are so many things that you need to come up with when you are trying to boost your vegan-based SEO, and this means utilizing some of the core phrases and keywords essential to veganism and making them a key part of your company’s marketing ethos. Google Ads for Vegan Searches Google Ads for vegan searches can make a massive difference to the way in which you are able to market your vegan products and recipes. So, you are going to need to come up with some of the key ideas that will allow you to improve your vegan marketing skills. Google Ads can be so effective when you are trying to come up with some of the best ideas that you can use to develop the best possible vegan marketing strategy. It’s clear that veganism is on the rise across the UK, as well as many places in Europe too. For instance, in Belgium, Delhaize has pledged to double its plant-based range by 2025, in anticipation of a growth in the number of people turning vegan, and a greater demand for products. A greater supply and range of vegan products make for more opportunities to sell them, and this is why you need a strong marketing strategy to generate more interest.
Fast Food Marketing Strategies
Fast food is big business these days, with the industry itself estimated to be valued at more than $930 billion by 2027. These days, there is more range than ever for fast food options, with many successfully accommodating healthy eating as well. For fast food companies, there has never been greater importance placed on the value of effective marketing for attracting customers and generating revenue. Coming up with strong fast food marketing strategies that are going to help you drum up more buzz and interest is so important. So, you need to make sure you do the best you can to improve this for your business. Here are some of the best and most effective fast food marketing techniques that companies are using to try to draw in more customers, and create a memorable and lasting experience. Take a look at our fast food marketing strategies that might be useful for your business! Food Bloggers Food bloggers are one of the key avenues that fast food companies need to be taking to generate traction for their products and their brand. This is something you need to try to make the most of as much as possible, and getting in touch with the perfect fast food blogger can make all the difference here especially for fast food marketing strategies. So, you need to think about some of the best ideas that you can use to help improve this process and try to come up with a list of some of the best fast food bloggers who you can approach. Work with them to try to produce the best quality content about your company, and help to improve and push a positive business profile at the same time as well. Food Delivery Apps Food delivery apps are all the rage these days, and whether it be Uber Eats, Just Eat, or Deliveroo, there are millions of people using food delivery apps worldwide to enjoy delicious fast food from the comfort of home. If you want to make sure your fast food business can thrive, you will need to be able to get yourself on one of the food delivery apps that is used across the nation. This is a great way of being able to market your company further, and attract a larger audience base. There are a lot of things that can play a part in this process, and improving your company’s status and marketing strategy is something that you need to focus on as much as possible. Social Media Coverage Social media coverage is one of the most important parts of running a successful fast food company. It is vital to be able to improve your company and come up with some of the best ways of utilizing social media in such a way that this can work well for you. There is no question that social media is the most powerful marketing tool modern brands can use, and, when showcasing and marketing fast food, a visual strategy is key, which is what makes social media vital. Now, there are a number of ways you can achieve this, such as hiring a social media expert to attend your restaurants and take pictures of your food. You might also like to consider hiring social media influencers and using influencer marketing to help you secure more success from this moving forward from these fast food marketing strategies. Maximize Your Demographic With Fast Food Marketing Strategies Maximizing your demographic is one of the best things you are going to need to focus on, and there are so many ideas that you need to think about when looking to maximize your demographic. You need to make sure you do your research and build the perfect customer profile so that you can gain a better understanding of your ideal customer. This is one of the best things you need to make sure you get right, and there are so many different elements you can use to help with this. Leading with the benefits is another key thing to think about – customers are always looking for what makes you stand out, and this is something you need to make sure you focus on. Offer Meal Combos and Bundles Offering meal combos and bundles can be one of the best ways of being able to improve your fast food marketing success. Combos and bundles can be essential for those looking to buy food for multiple people, and they are a great way of upselling additional products and recipes. It is vital to make sure you come up with some of the key ideas that will help you make the most of this, and you need to understand the benefits that come with using meal combos and bundles. Allow Customers To View The Menu Through QR Codes Allowing customers to access and view your menu in the best way you possibly can is so important. There are a lot of ideas that play a part in this, and one of the key factors that play a role in this is making sure you use QR codes. Everything is mobile these days, and cellular phones play such a massive role in everyone’s lives. By allowing your customers the opportunity to browse your menu by scanning a QR code, you give them easy access to your food without having to take them off their devices. Create a Loyalty Program One of the most important parts of any business is making sure your customers give you repeat business, and the best way of achieving this is to focus on rewarding loyalty. Setting up a customer loyalty program can be a game-changer for your fast food company, and is bound to ensure that your customers repeatedly come back. This can be done via some kind of reward scheme, vouchers, points, free courses, etc. You need to make sure you come up with some of the key ways of being able to create the ideal loyalty program, and this is something that makes a huge difference with fast food marketing. As you can see, there are a lot of things that you can do when it comes to improving your fast food marketing strategies. Being able to make your company stand out in a crowded marketplace is integral when you want to attract more customers and sell more fast food. So make sure you think about some of the best ideas that will help you when it comes to developing the ideal fast food marketing strategies.
Private label prices rising faster than A-brands
According to research bureau NielsenIQ, the prices of private labels have increased more rapidly than the prices of A-brands in the Dutch market. Nielsen’s research measured over more than 37,000 branded and own label products shows that prices have increased by an average of 5.9% compared to the same period last year. For private label, the increase is 6.3% while A-brands have become 5.7% more expensive. The price of fresh products increased by 6.9% compared to the same period last year. Other groceries like preserves, pasta, soup, rice and sauces showed the highest price increase of 7.8%, while price inflation to date this year has been lowest in non-food grocery.
Three technologies that will transform Carrefour’s shops
Technologies around checkout, picking and assortment are being developed or are about to be deployed to strengthen Carrefour’s physical stores. At its Bourget show (93), which brought together all of Carrefour’s partners in June, Carrefour presented their technological innovations that are being developed and will be soon deployed into their stores. These innovations are based in three areas of the stores cash collection, order preparation and assortment, which aim to make life easier and more efficient for shoppers. Data Optimised Assortment Using data from checkouts and loyalty cards, Carrefour began in June to provide assortment recommendations to its shops, both integrated and franchised. The Analytics Factory will use the shop’s sales history and that of other brands to suggest changes according to its size and location. Every month, Carrefour will recommend a hundred or so products that should be added as a priority or removed from the range. This solution will be of particular interest to small shops that have to make choices due to lack of space. This innovation will also suggest to each Carrefour shop which products to stock up on by forecasting consumer demand. This specific function has not yet been launched into stores because its functionality is still being tested in Carrefour bakeries, but it will soon be extended to other products. Carrefour is also working on creating a similar innovation for customers which will suggest healthier alternatives when the customer chooses a product with a bad Nutri-score (a front of pack label that classifies foods and beverages from A to E depending on their nutritional value). Smart PoS, the intelligent checkout For Carrefour the smart PoS is the most important innovation project underway. The retailer wants to free itself from its service providers and replace the software of its 67,000 checkouts with a new in-house programme, called Smart PoS. This intelligent checkout will be deployed during the year in France and Spain, and it should enable a much more dynamic operation, based on real-time data. To take an example, the intelligent checkout will be automatically applying current in store promotions as well as those linked to Carrefour loyalty cards to the total and displaying them on the customer’s screen. Another crucial innovation in these times of inflation is that prices are updated instantly, whereas previous systems could take a whole day to reflect the price changes in the store and on the customer’s receipt. Finally with Carrefour’s intelligent checkout if a barcode is not recognised at the checkout, the cashier will be able to look on Carrefour’s national database to find the product and its price, rather than the cashier having to go and look on the shelf which will save the cashier and the customer valuable time. U. Care, the picking ally In Carrefour shops, it is the shop employees who prepare online orders by picking up products directly from the shelves. Now in order to facilitate their jobs, Carrefour are launching an app called U.Care. This application shows employees the list of products they need to pick up in an optimised order. When they arrive at the product on the shelf, its electronic label will emit a light signal to help the employee find it. The application will also make it possible to declare a shortage of a product or an expired shelf life. Eventually, Carrefour would like to turn it into an all-in-one application that would also manage employee schedules and holidays, just like the American store Walmart with their Walmart One app.
Despite reduced purchases, Poles still value loyalty
62% of Poles say that the current economic situation has changed their shopping behaviour. Compared to last year, we look more closely at our expenditure, compare prices in different stores, succumb less often to cravings, and are buying less overall. Study results The quality, freshness and health benefits of the products we put in the basket are important to us. It is not surprising, therefore, that 32% of Poles declare that they now buy products from local producers more often than before, traditionally considered better and healthier. These and other current shopping trends of Poles are reported in a study conducted as part of the “I choose local” initiative of PSH Lewiatan Polish retail chain. Changes in our consumer behaviour are primarily about how we buy. And we buy with greater consideration – 17% of respondents are buyimng less than the previous year, 31% focus on essentials only and 32% say they shop to a specific list. Also, 32% of respondents are more likely to compare prices in different stores,, and 38% of respondents choose products at promotional prices. Quality, buying local and health Consumers see a number of advantages of buying from regional producers. According to 61% of respondents, local products are fresher and tastier (say 44%). This is important, because currently 28% of respondents report that they buy a lot of fresh products, and 44% that they often choose seasonal fruits and vegetables. Almost half also rate local products as healthier –and 30% choose them specifically because of the smaller amount of preservatives. The choice of products from local producers and suppliers also has a patriotic background for Poles – as many as half of the respondents acknowledge that among the greatest advantages of buying from regional producers is supporting the development of the local economy (51%). Selection of local values ‘Today, for consumers, a product is more than just an ingredient to prepare dishes. For Poles, the provenance that accompanies it is becoming more and more important – the methods of production, the family of the producer’s company, or the origin from a well-known local farm or production site. The choice of local products is also a choice of values that follow the decision.’ says Marcin Poniatowski, Member of the Management Board of Lewiatan Holding S.A.
Inflation impact on grocery sales and consumer behaviour
With inflation in the US at its highest rate since the 1980’s, the upward trend poses risks to spending as it puts a dent in real earnings. Unsurprisingly, how inflation will impact consumer spending relates to which income bracket they belong. The outlook for grocery sales overall remains strong: as consumers focus on purchasing essentials, on-premise restaurant dining will take more of a hit. With consumers eating out less frequently, mid- and high-income households are expected to still purchase “affordable indulgences” as they continue to seek premium foodie experiences at home. As a result categories like confections, desserts, quality cuts of meat, alcohol and snacks are expected to maintain momentum. Of course, food manufacturers are also feeling the inflationary pressures as input costs continue to rise. The key watchout for manufacturers will be to assess to what extent price increases can be passed along to the consumer versus compressing margins, as consumer confidence in the near term is filled with uncertainty. This will depend on the brand and their consumers’ price sensitivity, likely correlated with their income bracket. Manufacturers should seek to provide increased value where possible, either in the form of larger value-pack sizes or price discounts to ease the consumer burden and maintain topline sales during a difficult economic climate. What impact will this inflationary trend have on consumer behaviour? In general, consumers will tighten their purse strings and be more choiceful when it comes to expenses, as their real wages continue to fall. For many regularly purchased items such as household staples, personal care and beauty, consumers will seek value by either trading down to private label substitutes or seeking to purchase these items on deal. For lower income brackets, they will feel an increased strain as some essential items such as groceries are difficult to substitute – and with the prices of even cheaper substitutes going up, consumers will need to cut in other areas. Rising nominal value of purchases will weigh on personal savings and stretch credit card debt, according to Deloitte. Early in the post-pandemic recovery, consumer spending was strong across the board, up 12.1% in 2021 driven by a boost in consumer savings due to stimulus checks, rising stock markets and limited spending choices with much of the country on lockdowns. However, with inflation heating up through this summer up to a 40-year high of 9.1% in June and 8.5% in July, consumer sentiment is beginning to wane as the threat of a recession looms.
Delhaize to double plant-based range by 2025
Delhaize is planning to double its range of plant-based meat and dairy substitutes to 800 references within three years. The supermarket chain expects a massive shift to plant-based food. Plant-based food is on the rise and Delhaize wants to balance offer and demand. “By increasing the range and making it more clearly visible in the shop, we want to make that range more accessible, because we are well aware that there may still be some barriers. People are not always familiar with the taste and texture. Or they think it is very expensive” says spokesperson Roel Dekelver. In this way, Delhaize is also responding to the Green Deal. The Flemish government wants consumers to obtain 60% of their proteins from vegetable products by 2030. The strength of an innovative retailer is to launch new products just before its customer asks for it. Delhaize clearly wants to take the lead in Belgium in this category. It is a clear reaction on the growing group of flexitarians, consumers who want to reduce their animal protein intake.
Ukraine War has smashed Covid
While Covid was shaping consumption habits until recently because of its impact on health and generating different attitudes and behaviours, it has been now eclipsed by the Ukraine War, according to a McKinsey Pulse report which covered the biggest 5 European economies (Germany, Italy, UK, France and Spain). The biggest concern for consumers is price increases (44%), followed by the Ukraine War (24%) and Covid (8%). But price increases are to a great extent a consequence of the Ukraine War. The other implications for the universe of food and drink companies are: Groceries and the food for home in general perceived as having suffered the highest price increases by 94%. The implications on shopping behaviour are significant: 50% of consumers are trying out Private Labels or intend to do so shortly, 38% are willing to try a new brand for price reasons and 32% are shopping in different retailers (the gain share here is for discounters having increased 19% while all the other retailers have decreased). Switching to lower cost brands is a dominant trend in most food categories but in particular: Snacks / Confectionery (63%), Frozen Foods (61%), Dairy (56%), Non-Alcoholic Drinks (55%), Hot drinks (52%), Bread & Bakery (51%), Fresh Meat & Fish (49%). These are not easy times for FMCG businesses. They need to deal with higher raw material costs and tough logistic conditions while at the same time needing to pass on higher prices to retailers. Competitiveness has never been so key to success.
How Calorie Labelling Can Affect Your Businesses Food Sales
Most businesses will tell you that they were not exactly looking for ways that things could get more complicated than they already are right now. The new laws about calorie labelling have sent a lot of food business owners into a bit of a panic, and there have been a lot of concerns about to what extent this will impact sales. One of the main reasons why there have been so many of these questions is because, as ever, these things are not always explained in the simplest of terms. As a business, any kind of disruption to the way that you market your food to your customers is cause for concern. Calorie labelling has made a lot of businesses anxious about their PR and how it will affect their messaging. However, with the right preparation, consideration and advice, calorie labelling does not necessarily need to have too much of an impact. Let’s break down what you need to know. What Is Calorie Labelling? Calorie labelling requires businesses to list the number of calories that any given food product, beverage, or dish contains that they sell. As you may know, the higher the number of calories, the more energy the food or drink contains. Lower calorie meals, snacks and drinks are favoured by anyone to lose a bit of weight. What Is The Government Doing With Calorie Labelling? Calorie labelling has been introduced by the British government as part of its efforts to deal with obesity. A lot has been written about the rate of obesity diagnoses in adults and children in particular. The hope is that by tackling obesity, the government will be able to take some of the pressure off the national health service. One of the reasons why the government has taken the approach of calorie labelling is that they feel that can be difficult for consumers to make informed decisions about what they are buying. It is also the case that a lot of meals that are bought in restaurants and from takeaways will be higher in calorie content than food cooked at home. Market research has always been crucial in this sector, but it has been and will continue to be crucial when it comes to understanding the impact of giving this information on food businesses. Remember that a lot of customers may not want to see how many calories are in the products they are buying, for example. Does My Business Need To Label Calories? The government’s calorie labelling initiative is currently aimed at big businesses and chains. Right now, any food business that employs more than 250 people must have calorie labelling measures in place. That means that the calories and portion advice will not only be listed on the packaging of products in supermarkets, but menus will also have calorie and portion information. Whether you are a food and drink manufacturer, a company that exports food or drink overseas, or a store or restaurant, you will need to think carefully about your PR strategy if you are a large enough business to need to abide by these measures. We can help you think about the best way to move forward. Why Will Calorie Labelling Affect My Business? The major concern from the food industry around calorie labelling is that it is going to make a lot of work for food businesses. The food industry has been through an incredibly tough time during the recent pandemic and the focus is on what is going to entice customers to return. The worry is that customers will be less likely to order food if they can see the calorie content as it creates another choice at the point of purchase. Beverage companies may also have to abide by this ruling. It is important to remember that calorie labelling gives a narrow view of the food’s nutritional content, and that high calories are not the only reason why certain food and drinks and unhealthy. Great marketing is going to be crucial for any businesses that want to reassure their customers that they are still getting the same great food and drink. But we can also help you to continue to work on your sales strategies in a way that minimises the amount of extra work that you need to be doing to comply with this new law. What Can I Do To Lessen The Impact? The fact is that there are some good reasons to be worried about how calorie labelling will impact your business. Customers may be less likely to buy goods if they are confronted with a number that they may not fully understand but which looks incredibly high. You will need to think carefully about how you present this information to your customers. Branding is going to be very important. The government has given some examples of suggestions for how to incorporate calorie information into menus and so on, but you may want to think a little more carefully about how you plan to do so. We have worked with several amazing brands to help them grow, and our case studies speak for themselves. Why Do I Need To Get Professional Advice? Right now, so many food businesses are reeling from everything that has happened over the last couple of years that they are in a precarious position already. What’s more, things are tough for every business out there right now, regardless of industry. The impact of Brexit still means that a lot of places are going through some supply shortages and staff shortages. The rising cost of living means that customers are getting a lot pickier about where they are spending their money, and you will also be feeling the crunch when it comes to your operating costs. Getting professional advice on this issue will help you not only minimise the disruption caused by the introduction of calorie labelling but will help you to find the best way to present your brand and your marketing. At Green Seed Group, we help businesses identify new opportunities and work on their sales and marketing strategies. We have the local market expertise and experience that can make a real difference to food businesses in these challenging times. To learn more about how we can help your business continue to grow, take a look at the clients that we already work with, and get in touch to find out more about what we have to offer.
8 Marketing Strategies To Maximise Snack Sales
Snacks and snacking products have been steadily gaining popularity over the last few years. That does not necessarily mean that just having a brand that sells snacks is going to achieve sales. Your target customer base needs to know your brand and products are out there if they are going to spend money on them. Therefore, marketing, especially digital marketing is crucial. Understandably, you may know your product and brand inside out, but that doesn’t necessarily mean you will have the best marketing ideas. While hiring a professional marketing team is a good idea, in the interim, we have put together a list of some of the best marketing ideas for snack brands and products. Find Your Target Audience One of the first things you need to do when marketing your snack business and snack food in the food and beverage industry, as is the case in any industry is to identify your target audience. You need to know who your consumers and customer base is if you are going to market your snack foods effectively. Some questions you need to ask yourself about your potential snack food customers to successfully promote your products and increase sales include: What is their age group? Are they male or female and does that matter? Are they health conscious (crucial if you are trying to promote healthy snacks) What social media platforms do they use? This will help you to focus your digital marketing ideas and strategies more effectively and successfully. What are their favourite colours and what kind of emotions do they tend to feel when they see their favourite colours? This sounds a bit strange, but when you are promoting and developing marketing for the food products you need to take into consideration the things your consumers like and find appealing to entice them more. If your products have packaging in the colours your customers have positive associations with, they are likely to be more interested in your snack food compared to other snack brands in the food and beverage industry. Choose a social media platform based on your target market Once you know the consumers who will be buying your snacks, you need to market the food to those potential customers where they are. Nowadays, most people are active on some or all of the most popular social media platforms. If your target audience is not active on Facebook, there is no point in trying to increase snack purchases and overall sales by trying to market your snacks there. Analyse competitors A crucial part of any effective marketing strategy is competitor analysis. However, you need to be careful as the snacks industry is comprehensive with many products qualifying as snacks that are completely different from one another. Who are your main competitors? Are you looking to make waves in the healthy snacks section of the industry or are you going up against junk food brands? Start by assessing the marketing ideas incorporated by brands selling similar products with a similar production size. If you are only a new snack business, it’s not a good idea to go after the leading snack businesses that have been around for decades. Come up with subscription plans to keep your customers returning Food subscriptions are incredibly popular right now within the wider food and beverage industry. It’s not surprising as this is a great way to retain customers and continue to generate more sales. By offering a subscription, you are giving your customers the great advantage of convenience – they do not need to head to the store or even log in to make online purchases. This means they get their snacks when they need them, they don’t even need to lift a finger to get your snacks regularly. Become a known name in the local community If you are a relatively new company starting, it is best to target customers in your local market. However, rather than just marketing your products, make your company stand out as an integral part of the community. Speak to local retailers, and ask the owners if they will sell or promote your products in their store or shop. You should also consider putting on local events. You can make these events attractive to your local consumers by having special guests and several other food and drink products on display. While that may sound counterproductive, it can work to your benefit. Businesses can often enjoy more success when it does not feel as if they are being marketed to, which can result in more sales. Focus on healthy snacks Without a shadow of a doubt, healthy snacks are the way to go. Therefore if you have a healthy snack business you are trying to promote, you are already in a strong position to develop your brand and grow your business. It’s not enough to just say that the snacks your consumers can purchase from you are healthy, you need to show evidence. This means making sure you highlight aspects of your healthy snacks that make them stand out, such as: If it’s a new product Health benefits Natural, organic, Non-GMO ingredients The process involved in making your products (if this helps to make you stand out from the competition) Taste is Always Paramount Although food is eaten to provide nourishment and energy, most people eat specific food products because they enjoy them. You need to showcase in your marketing that your consumers will enjoy your food. So, make sure you highlight the taste. Talk about the ingredients and the flavour profile. If it’s a healthy snack or new product, make sure that is clear that they can still enjoy snacking without feeling bad. Promote allowing those ‘naughty’ snacks sometimes Even if your products are not healthy, you can use this to your advantage to make your snacks attractive. Consumers often find it appealing if they think their purchase is a little naughty or they are breaking the rules. So appeal to that side of things and you could increase your sales. Sell on marketplace sites (Amazon, eBay) This may be a bit of a leftfield marketing strategy but can create a lot of interest in your brand while generating sales if you make use of marketplace sites like eBay, Etsy and Amazon. People like the convenience of buying online and are likely to visit your pages on these websites rather than going elsewhere if they can get a good deal on your snacks. Decide what your main point of marketing will be (social media, email marketing, PPC) It’s all very well knowing the consumers you need to target and brands you are up against, and even a good idea of what marketing ideas you are going to use. However, if you don’t focus your efforts and determine the best ways rather than just using all ways, you could spend too much money without gaining consumers or generating sales. Summary If you have a new product you are wishing to promote or are looking to increase sales for existing products, marketing is important. We have shown you that it is not just enough to throw together any old marketing strategy, you need to think about your brand and business and your target audience. You need to create strategies that will make your business and its products stand out. While it is important to maintain your expectations, you should expect to see some positive results by ensuring that your marketing is directed at the right place.
The Top 4 grocery retailers continue to grow in Germany
The effects of the pandemic are diminishing in the German grocery trade. In 2021 the large groups became larger and the smaller ones became smaller. EDEKA, Rewe, Schwarz-Group and Aldi (incl.North and South) dominate and continue their growth, albeit at a slower rate. The Top 4 accounted domestically for over €205 bn and 74.8% market share. This is both food and non-food. Food in 2021 accounted for €175 bn or 85% of total. The Top 30 companies turned over €269.5 bn, an increase of 2.5% in 2021. Total food amongst the Top 30 was €228 bn, also an increase of 2.5%. This reflects a return to more normal growth rates after the high increases of 2020 due to the pandemic. Of particular interest is the drop of the Metro-Group to Nr 10 following the sale of their Real superstores to EDEKA, Globus and Kaufland (Schwarz). Of the Top 4, EDEKA dominates with a 25.2% market share (turnover +0.2%) followed by Rewe (-0.1%), Schwarz-Group (+0.9%) and Aldi (-0.5%). EDEKA turnover amounted to €68.8 bn, Rewe to €56.4 bn, Schwarz-Group to €48.6 bn and Aldi to €30.9 bn. Two of the 3 national drugstore chains grew faster than classical grocery. DM at Nr 5 grew by 5.8% (€9 bn), Rossmann at Nr 6 by 7.8% (€7.9 bn) and Müller at Nr 13 was down by 1% (€3.1bn).
Influencer marketing – the future of food marketing?
Influencer marketing is a strategy to significantly affect the visibility of a brand and closely linked to social media. At one time it was simply called ‘word of mouth’, as the claim of a well-known detergent suggested; today, with the advent of social media, a growing number of opinion leaders – bloggers, YouTubers, Twitter users, Instagrammers – exercise a real social influence by connecting and sharing messages with their own audience, significantly affecting the visibility of a brand, the actions of followers / fans and their purchasing decisions. For this reason, companies have totally redefined how they can influence and engage the target market, to the point that influencer marketing plans have taken on strategic relevance for many digital marketers. An investment of this type is even more justified, moreover, considering findings by Tomoson according to which 76% of marketers would recognize a clear correlation between influencer marketing and customer loyalty. What are the best practices for building an effective influencer marketing plan? First of all, a fundamental concept must be clarified: anyone can become an influencer, but not all influencers can really collaborate effectively with a certain company or brand. For this it is necessary to start from a correct identification of the archetypes of influencers, each of which is characterized by specific characteristics. The most recent literature on the subject identifies three main clusters of influencers. The first is that of the ‘identified’, made up of influencers considered relevant for a brand, based on the specially designed rankings, but also for the role and position held in the sector in which they operate and which is relevant for the company. A wide range of influencers can be inserted into this cluster, from celebrities who enjoy wide exposure and generate immediate action, to passionate, authoritative and independent publishers, to everyday advocates, who love to review products and services and enjoy a great reputation with their own community, to altruistic activators, generally considered impartial and therefore reliable. The second cluster is instead made up of the ‘engaged’, i.e. the number of influencers with whom an initial level of interaction has already been established, from sharing content on social networks to liking and following. This type of involvement represents the first substantial step towards building a stable and lasting relationship and is strictly connected to the relevance of the content published and promoted by a company and its attractiveness, as well as the reputation of the brand and its evocative power. Finally, the third cluster includes ‘active’ influencers: they are the influencers directly involved in influencer marketing programmes and who actively collaborate with brands and companies to promote their products or services, share their vision and embrace their causes, effectively becoming true ambassadors. However, one of the most recent trends is to close partnerships with micro-influencers. They are common users, with relatively small communities and who certainly do not have followers numerically comparable to those of long-time VIPs or influencers, but who instead have a great ability to actively involve the fanbase and become ambassadors of the product, service, brand: metrics that are much more important for a business person who wants to invest in influencer marketing. But, in a nutshell, does influencer marketing lead directly to sales conversion? It’s difficult to be absolutely sure about its influence. One sure thing, however, is that “transparent” posts are constantly increasing, that is with hashtags that denote the commercial nature of the post. In fact, in the last year, transparent posts have increased by + 69% on Instagram. This is what emerges from the analysis conducted by a series of European Observatories (and by the Observatory set up by Buzzoole, martech company for Italy) which analyzed all the posts published in Italian that use the transparency hashtags divided by sector, as well as to the most active brands on social networks. The annual study “Transparency in Influencer Marketing” covered all posts (except stories) published on Instagram, Youtube, Twitter and Facebook, containing the most used transparency hashtags: #ad, #adv, # sponsored, #sponsored, #sponsoredby, #gifted, #giftedby, #supplied and #advertising. TRANSPARENT FOOD Fashion and cosmetics were confirmed as the most transparent sectors. The third place is now occupied by food, with 9.8% of posts, gaining 3.3 percentage points. Behind food come technology (consumer electronics) with 9% of posts, entertainment (TV, gaming) with 8.7% of posts, accessories (bags, watches and jewelry) with 8, 6% and beverages with 4.4%. Over both 2020 and 2021 it emerged that the health care sector with 3.1% of transparent posts focused above all on personal hygiene and safety devices for consumer health protection. ESSENTIAL REQUIREMENT Transparency is not only an important value but also an essential requirement in the world of influencer marketing to preserve the relationship of trust between influencers, brands and users. In fact, transparency hashtags must be automatically added to all campaigns.
Colruyt will no longer display where it has reduced prices in response to competitors
Colruyt is changing its price display policy: customers will now no longer be able to see when the price has been reduced in reaction to a promotion from one of its competitors. Only its own promotions are now shown in red. This is a major shift for the retailer. For over 40 years Colruyt has been indicating in red the lowest prices in the region. They check the prices and promotions of all national and regional competitors every day. For the retail stores with national coverage and which apply the same prices across the country, Colruyt follows their prices nationally, i.e. in all Colruyt shops in the country. For the other shops, Colruyt works regionally: if they find a lower price, they lower their prices in the surrounding Colruyt shops. But from now on, all prices – including reactions to prices and promotions from competitors – will simply be shown in black on the price label. Only their own promotions “on top of the lowest prices” will be marked in red. “We make it very simple for our customers: the lowest prices every day, in black and white. And our promotions which are definitely not to be missed will be marked in red,” says General Manager Chris Van Wettere. “We always promise the lowest prices” is Colruyt’s motto, the supermarket chain therefore no longer needs to say explicitly when it adjusts its prices to those of competitors. In the past, this was always indicated on the shelf labels, but this will no longer be the case from now on. It is easier for the customers” says Colruyt. Colruyt takes this opportunity to emphasise that the prices at the supermarket chain are not determined by the purchase price, but by the prices of the other supermarkets in the neighborhood. “The purchase price of our products is always separate from the selling price of our products”, it says. “Colruyt is a price follower and not a price setter. Our team of 120 employees takes care of that with 62,000 price surveys a day.” The Red Telephone does continue to exist.
FDF calls for complete overhaul of border checks and a digital approach
The UK government has postponed the imposition of border checks for food and drink products imported into the UK no less than four times since it left the EU. The latest announcement was a decision not to introduce checks until the end of 2023. In response, industry organisation FDF has called for a full digital overhaul of the process, scrapping all paper documents currently required. A substantial simplification of government bodies involved is necessary, they argue, along with a total rethink of currently excessive sanitary and phytosanitary measures. A risk-based approach makes more sense, the FDF suggests, with trusted businesses removed from customs requirements. The UK government should ‘strike a balance in its domestic regulatory regime between ensuring it has high standards that protect consumers and the simplest possible regime for moving food and drink in and out of the UK market.’ The net result would be a dramatic increase in trade efficiency, particularly in high volume UK/EU routes, they say.
Limited assortment retailers increasing share
Recent research from Kantar has highlighted that retailers with narrow assortments have increased their market share by 3%. Lidl, Mercadona and Aldi are the main players to have benefited. Lidl optimizes to the full its buying power and international assortment. While the range is limited at any moment in time, it varies a lot in particular with in-and-out strategies focusing on innovative and indulgent items, mostly frozen. Traditional mainstream retailers with their static ranges are unable to compete with this. Lidl also uses cookware items at very low prices which run out in a few hours to generate shop traffic. Mercadona has extended its mainstream offering into the Portuguese market and quite a number of skus appeal because they do not exist or have a much better value:price relationship as a consequence of Mercadona’s bargaining power in the Spanish market. Aldi is catching up Lidl but focusing more on competitive dairy and organic foodstuffs imported from the German market, which ar3e quite competitive in Portugal. The shops are brand new with a modern and dynamic shopping environment. They are fighting for the same target clientele on the neighbourhoods of medium-sized cities and often located quite close to one another.
Lidl outperformed French grocery market In May-June period
According to the latest data from Kantar, from the period 16th May to 16th June, Lidl was the best performing retailer in the French grocery market. The discounter reported a 0.4 percentage point gain in the period. Lidl now has 8.1% market share, and attracted 784,000 new households to its shops in one year, while maintaining a stable level of shop visits. An increase in media spend (+21%) has also helped lift the discounter’s presence, with increased numbers of shoppers demonstrating loyalty to the brand. Lidl is also benefiting from the inflationary context: +3.57% in May and +4.37% in June on FMCG according to NielsenIQ. This is because the French have placed it at the top of the list of retailers that improve their purchasing power according to an OpinionWay study for Bonial. Rival Aldi reported a 0.1 percentage point increase in the period, and now sits on 2.8% share – the discounter attracted an additional 430,000 customers in the period. Carrefour maintains performance Carrefour maintained its performance with a 0.1 percentage point increase in June, boasting a market share of 19.8%, with growth driven by the group’s convenience format, which gained an additional 200,000 customers. Carrefour’s hypermarket and supermarket estates are also gaining shoppers, Kantar noted, and have maintained their market share. Finally, market leader E.Leclerc gained 0.1 percentage points in the period, with a grocery share reaching 22.5%. Consumer Spend On The Rise Consumer spend in the period rose by 2.8% compared to the same period last year, with shoppers visiting stores more often (+0.4 additional visits), counteracting a slight drop in sales (€1 less per shop). The discount channel was the best performer in June, gaining 0.3 percentage points, while the convenience channel gained 0.1 percentage points. Online fell back, however, losing 0.4 percentage points.
Food inflation helping growth in German Private Label
Driven by the pandemic and more recently by the war in Ukraine, inflation has become once again an important issue. For retailers, this means change in the perception of Private Label (PL) by consumers. A recent study by IPSOS supported by the Lebensmittelzeitung has just been published and is entitled „PL Monitor 2022“. This quantitative study focuses on sustainability and the effect of inflation on purchasing behavior. First of all, consumers are very much aware of price increases in basic food articles with 83% noticing this. A similar 83% response is given to the question whether consumers that they are getting much less product for the money in their purses than a year ago. Many respondents do not really differentiate between Brand and PL. In both these segments, 79% have registered price increases. An additional worry (59% amongst Branded and 49% amongst PL respondents) is that manufacturers could be cutting back on product quality to combat the cost inflation and maintain prices at a low level. 70% of consumers are now paying more attention to price levels and 68% see PL as a good route to save cost when food shopping. 65% of respondents nowadays see PL and Branded to be of similar quality level, with 8% even seeing PL to be of superior quality. The most important argument in favour of PL remains price, mentioned in the 2022 study by 57% as the most important attribute. In the 2020 study, 64% of respondents found price to be of prime importance, in 2018 76%. What are consumers doing to reduce the effect of food inflation? 48% are reducing the number of shopping occasions and 64% are converting to shopping more in just one outlet. And 71% are reverting to the old method of using a shopping list and avoiding spontaneous, non-planned purchases. Also, special offers are becoming more important. 73% of respondents now check out promotional prices and 69% look specifically for promoted products. 64% of respondents buy special offer products to store at home and there as well save money. On-line has not really benefited from the current inflation in grocery items although overall, it grows in share and importance. 43% of respondents stated their usage of on-line had grown during the pandemic. On-line users seem to think PL is of less importance in their priorities, with 41% considering they buy less PL on-line (but 54% think the share to be similar to their purchases in supermarkets).
Contract Manufacturing in Central Europe
Hobsons is a mid-sized regional brewery based in Shropshire, UK. It produces award winning regional ale in casks and bottles. The company started selling on Amazon UK and with significant year on year growth the opportunity arose to supply Amazon EU. However, following Brexit it became impossible to supply EU from UK and also deliveries to other European customers suffered. A transport of pallets to a distributor in Germany took 3 months. The decision to look for a contract brewer in CEE was made end 2020 and with the profile of Hobsons beers we quickly honed in on Poland. Following the initial search, advanced discussions, on-line knowledge transfer and sample brews with 3 breweries we settled on one partner. The process took over a year due to covid/travel restrictions until the Hobsons brewing team could come to Poland to oversee the first brew of 4 products at the Polish craft brewery. There were challenges to overcome as this was the first time British beers had been brewed in Poland according to original recipes. However, the end result was a great success with Hobsons master brewer awarding 7.5 to 9.0 points across the range. Hobsons beers were brewed in Poland at the end of March and are already finding their way to Amazon Europe customers. New customers in Poland will be receiving first orders shortly and now we can plan Europe-wide distribution from Poland. The retail price of Hobsons produced in Poland is similar to local craft beers and over 20% less than Hobsons imported from UK.
UK grocery inflation hits 5.2% as own label grows share
While energy costs and the war in Ukraine are having a big effect on both prices of goods and availability of key ingredients in the supply chain across all markets, the UK is also wrestling with optimum timing to introduce restrictions on sales of HFSS (high in fat, sugar, salt) products. According to Kantar, inflation in grocery hit 5.2% in March 2022, its highest rate for 10 years. Consumers are already being squeezed by sky high energy and fuel costs and now increasingly turning to own label goods in their regular supermarket shop. Own label’s share of grocery sales has increased to 50.6% vs 49.9% for the same period last year. All major supermarkets are introducing initiatives to demonstrate their value credentials – even those at the premium end of the market like Marks & Spencer with a new ‘Remarksable Value’ campaign. Meanwhile some pandemic trends such as the shift to on-line are holding their own, with current share of grocery at 12.6% (Kantar) compared with levels of 7-8% before shopping patterns shifted dramatically because of Covid. Meanwhile the government has put on hold its plans to ban promotions of HFSS goods – a tool to tackle the obesity crisis. Now is not the time, it seems, to worsen the situation for hard up shoppers looking for deals.
Commerce in the Palm of Your Hand – The future of tech & retail in the US
Over the last decade, brick & mortar retail has been accelerating toward increasingly seamless shopper experiences. In the US, select Whole Foods Market stores have recently reached new level of frictionless – quite literally – with the ability to check out with a simple wave of the hand. Whole Foods Market is expanding its stores enabled with Amazon One technology, which debuted in the Seattle market last year into all seven stores in the retailer’s home Austin, TX market. The technology utilizes a biometric identifier (in this case, the shopper’s unique palm signature), and ties that information to their credit card. Sign up for the service takes less than a minute according to Amazon, and can be done at a special self-serve kiosk in participating stores. Shoppers simply insert their credit card and then follow the prompts to pair their card with their palm signature, and the Amazon One custom-built algorithms and hardware do the rest. “We are excited to introduce Amazon One as an option for our Austin-area Whole Foods Market customers,” Leandro Balbinot, senior vice president and chief technology officer at Whole Foods, said in a statement. “We are always looking for new ways to satisfy and delight our customers and offer convenient options to improve the shopping experience.” This technology will not only enable everyday activities such as checkout and payment at a store, but also streamline loyalty card usage, and could also serve as secure entry at sites like a store, stadium or workplace. With another recession looming on the horizon coupled with increased store labour costs and recent pandemic, this frictionless checkout future may well be the norm sooner rather than later.
Calorie Labelling Regulations: What Food Businesses Need to Know
If there is one thing that most food and hospitality businesses could probably do without, that’s red tape and different stipulations and criteria they are meant to comply with and meet to stay in business. The reason there needs to be red tape and different regulations in place, though, is because the country is facing an uphill battle against an increasingly prevalent obesity problem. With that in mind, the government has been trying to come up with a plan to tackle obesity. So far, many of its initiatives and the government’s obesity strategy overall has been effective to a certain extent. Health authorities and healthy eating watchdogs along with prominent members of the government and other members of parliament still believe more could be done. Whenever new regulations are brought in, it can be alarming and stressful for food businesses. That is why, if you run a food business, we want to make things easier for you by outlining everything you need to know about the new calorie information regulations. What are calorie labelling regulations? The brand new calorie information regulations mean all food businesses of a specific type and size need to, by law, show the full energy content of specific items of food and drink either on menu boards, menus or on their website. These new regulations will be assessed and enforced by local authorities. When were they made law? The new legislation came into effect on April 6th this year (2022). Although these new regulations were designed following extensive discussions and public consultations in both 2018 and 2020, as part of the UK government’s plan for tackling the obesity problem. Why have calorie labelling regulations been introduced? The new measures involving mandatory calorie information are part of a bigger strategy set out by the government and relevant health and food bodies to help people make better informed and ultimately healthier choices when they are eating out or ordering fast food and takeaways. In fact, leading up to the regulations taking effect, it was discovered that around 28% of adults living in England were overweight, while 36% were considered obese. Bureau Veritas, a renowned compliance specialist, was encouraging food businesses to hurry up and make sure they were fully compliant. It is not surprising that these regulations were brought into effect as adult and children’s health has been a serious discussion point in recent years with many different initiatives and strategies being put into place to reduce the bad habits surrounding food. Even television advertising has succumbed to stricter rules. As good as these new initiatives have been, there is still a staggering number of children and adults that are either obese or overweight. That is why the government felt the need to act against large food businesses in the hospitality sector: to ensure they are doing all they can to give people the information they need to make smarter and more informed healthy food choices. What does the law now require food businesses to do? Essentially, food businesses need to provide their customers with calorie information for most food and drink they have for sale that is for immediate consumption, so they can make their minds up and choose healthy options. What this means in more specific terms is that restaurants, pubs, cafes and takeaways will need to provide the full energy content of their products in kilocalories along with the size of one single portion, if it is for just one person. If it is for more than one person, they need to state how many people it is supposed to serve. Last, but by no means least and possibly most importantly, they will need to have the so-called intake statement on every page of their menus, that states “adults need around 2,000 kcals a day”. Do calorie labelling regulations apply to all food businesses? Fortunately for smaller food businesses, the mandatory calorie labelling regulations do not apply to them. The law at the moment is designed to target solely the establishments that are part of larger chains and therefore, it is only if a business has a minimum of 250 employees, such as food delivery platforms, franchisees, and large-scale caterers. It is also only applicable to food businesses based in England. It is important to note that the regulations for displaying calorie information do not apply to all of the food that businesses sell. There are many exemptions. Some notable exemptions include condiments that have been added by customers, any menu items or dishes that have been available for a shorter period of time than 30 days, and any food items or dishes that are customer requests but are not on the menu. How you can comply with the changes In addition to knowing why calorie information regulations are being introduced and what they require food businesses to do, they also need to think about where the information needs to be displayed. The regulations state that the portion size and calorie information of applicable food must be clearly displayed at what is known as “the point of choice for your customers”. That means the menu boards, menu or online menus on their website, or where the food options are chosen from displayed items on a food labels that identifies the food that the calorie information concerns. The regulations state that the calorie information and portion size information need to clearly legible, not obscured or hidden, easily visible and in a format or font that is similar to the food item or dish name or even the price. For businesses that offer food through distance selling, like takeaways that sell online or by phone, for example through third-party delivery apps, the calorie information and portion size for all applicable food items and dishes must be accessible for customers when they order and when they receive their order. How can businesses calculate calories? Although it may sound intimidating trying to figure out the figures to display calorie information to comply with the regulations, there are guidelines for how you can do this. The guidance for the implementation of these regulations states that food business owners and those the regulations apply to should use the three legally-acceptable methods of calculating the nutritional information and calorie content of their food. These methods are: Using the manufacturer of the food’s analysis of the product Calculating from the known or average values of all the ingredients used in the food Calculating using data that is generally accepted and established. What happens if you don’t comply? As you’d imagine, because the calorie information regulations are now a legal requirement for the food businesses they are applicable to, it is in your best interest to comply if necessary. If you don’t comply with the regulations about calorie information, there are some potentially very stiff penalties you could be expected to pay. Officers for the Trading Standards Industry have been given the power to give uncompliant businesses a warning and improvement notice. This gives businesses a chance to turn things around over a period of 2 weeks. If food businesses that the regulations are applicable to do not make the changes, they may need to pay a fine as much as £2,500. We hope the above information about the new calorie labelling regulations is helpful and ensures you stay compliant with the local food authorities. Contact us today for support on meeting the regulations and getting your food business compliant
How to Make a Marketing Plan for Your Food Delivery Business
If you’re thinking of launching a food delivery business, you need to come up with a strong marketing plan. In this post, we’re going to be covering all you need to know about how to put together a strong marketing plan to help your food delivery business get off to the best start. Keep reading to find out more. Build A Strong Team One of the first things you’ll need to do is build yourself a strong team of individuals who can help your business achieve the success you have in mind. When looking for employees, consider not just their professional abilities and knowledge of marketing but also their personalities. Look for qualities in potential employees that you think would work well with you and your existing team and help your business achieve its targets and goals. For example, some of the qualities you might want to look for include: An outgoing and friendly personality Great people skills Good communication skills Creative thinking A positive mindset Professional and passionate about the work These kinds of skills will mean that a new employee is more likely to not only be an asset to your team and help you meet targets but also gel well with others. Building a good working relationship between employees means that a business can function more effectively and create a more harmonious workplace. Once you have a strong team behind your business, you’re more likely to see targets being hit and progression happening for your business growth. Understand Your Audience Another thing you’ll need to do in order to create a successful marketing plan is to gain a clear understanding of your intended audience. This will allow you to better tailor your marketing in a way that targets your audience best. You may already have an idea in mind of the kind of audience you’re attempting to reach, but conducting market and consumer research can help you to get a better indication. Carrying out things such as surveys helps to give you insight into what your customers are looking for and how you can better tailor your products and services. It will also allow you to adapt your future marketing to help grab the attention of the intended audience, and will help with deciding which marketing methods to use. Research Your Competitors Researching your competitors is another way of helping to give your business a marketing advantage. You should make time to study your competitors, their marketing, website, and the kind of consumers they are reaching. Look into their reviews, feedback, and customer experiences to find out how you can improve your own business and give yourself a competitive edge. With a food delivery business, you could specifically investigate aspects such as the kind of food they do or don’t provide, as well as the delivery service they offer. Perhaps there are gaps in the market your business could fill, helping you to get more interest from consumers. Setting A Budget When launching your food delivery business, it’s important that you come up with a clear budgeting plan to help keep your finances on track. A budget plan should outline all the finances of the business, such as predicted costs, revenue, and areas for investment. This will help to make sure your business does not have to cut corners and risk producing a lower-quality marketing strategy because too much money has been spent elsewhere. Branding Your Business When launching a new business, good branding is essential. This will help to make your business more recognizable and build up an image for your business that people can become familiar with. When branding your business, you need to be consistent and make sure your branding is the same across all aspects of the business. For example, make sure your branding on your website matches with branding used for marketing campaigns and social media. You need to design a recognizable and unique logo for your business, using specific colours and fonts for your business name. You could also come up with a slogan or catchphrase for your business that people can associate with it. Your business slogan should help to sum up neatly what it is that your business does or what makes it stand out from your competitors, such as your USP. Create A Unique Selling Point USP stands for a unique selling point. This is an important aspect for businesses as it allows them to create an edge over their competitors. If your business can offer something that your competitors can’t, they will be more likely to want to use your business. With a food delivery business, for example, your USP could be that you are an organic or healthy food delivery business. This would be a USP that would help you to stand out, as most food delivery services are associated with junk food. Run Marketing Reports To Highlight Strengths And Weaknesses Running marketing reports is one of the best ways to gain insight into whether or not your marketing strategies are effective or whether you should adopt different marketing methods to see better business growth. Marketing reports can show you whether consumers are responding well to your marketing, whether they like different aspects of the business, and whether your strategies are helping you to reach the intended audience. It might also allow you to gain some insight into whether there are certain areas of the marketing department that are struggling to hit targets, as they may require more support or investment. Invest In Digital Marketing When it comes to marketing, digital marketing is by far becoming the most powerful tool you have at your disposal. More consumers than ever are using the online world to make purchases, and this is especially true for the food delivery business world. Giving your consumers the option to order online and make purchases easily not only encourages sales but is another opportunity to market your business. Social media is a great option when it comes to marketing, too, as it can largely be used with very little investment needing to be spent on it. You could even advertise your business for free just by ensuring your social media channels are active and engaging with customers. Whether you’re marketing your food delivery business locally or countrywide, social media can help you reach a wider audience of customers.
The Future for Cashless and Checkout Free Stores
Our daily lives have become shaped by digital technologies. From social media to virtual reality, even our supermarket shopping experiences have transformed over the years: self-checkouts, contactless payments and now checkout free stores. The idea of picking something up off the shelf and just walking out without physically paying seems crazy to some people, and that’s because it is. These checkout free stores rely on cameras and weight sensors to track what shoppers remove from the shelves, and what they put back. When they leave, they receive a virtual receipt to inform them that they have in fact paid for their items. The pioneer of this concept was Amazon, opening their first Amazon Go store in Seattle in 2018, then supermarkets such as Tesco in the UK, Auchan in France, Netto Marken Discount in Germany and Whole Foods in the US swiftly followed. But what is the final aim? To create a quicker, easier and more seamless shopping experience for the consumer? Or is it just a business model which allows supermarkets to maximise profits by saving on staffing costs and to collect more data from their customers? We can all agree that digital advancements in recent years have facilitated our daily lives but there are always disadvantages to such technologies. Some say that by removing the personnel from supermarkets we are damaging the economy due to the number of jobs lost. Furthermore, not everyone is ready for this next digital step forward, fearing that the future of consumption will be completely dehumanised. This type of store relies on consumers being technologically adept and owning a smartphone, leading to the exclusion of certain consumers who are technologically challenged. It is interesting to note that at the same time, some consumers prefer a more interactive shopping experience where they can ‘chit chat’ with the cashier. To meet this expectation, supermarkets such as Syteme U and Auchan have introduced ‘blabla’ tills, with Carrefour introducing this concept to 150 stores across France in January 2022. Customers, therefore, have the choice between going to a ‘blabla’ checkout or a regular one. Since COVID-19 people are now valuing human connections more than ever in their daily lives. It’s important for the social aspect of society and it creates a concrete link between supermarkets and their consumers which is preferential to some people over striving for increased digitalisation. The question remains: Will checkout free stores dramatically alter the future of bricks-and-mortar retail, or is it just a novelty to become obsolete in the next 5 years? For Amazon, it must be proving a success in the UK because after opening 15 stores London they are planning to open another 260 UK wide. However, for supermarkets such as Tesco and Sainsburys, they have decided to evaluate customer feedback before proceeding further after Sainsburys opened a checkout free store for 5 months in 2019 before reintroducing checkouts due to customer dissatisfaction. It seems ideal for the consumer prioritising speed and efficiency, but checkout free stores were not designed with all consumers in mind. Moving forward, a hybrid store with the option of using a checkout OR walking straight out seems the best way to respond to all consumers’ needs. In any case, the future of supermarket checkouts remains a major topic for retailers and is yet to be defined.
Latest trends for the out-of-home market
A lot has been happening in the German out-of-home market. The organisers of INTERNORGA (Germany’s largest and oldest food service trade show which has just taken place in Hamburg have recently summarised 4 main trends in the sector: 1. Taste unlimited Taste has been in demand since well before the onset of the pandemic. Consumers have become better informed and have developed much higher taste expectations. They expect more too – international dishes, regional ingredients, creative marinades, exotic spices. The rediscovery of fermentation has also led to more intensive taste, eg the pinsa, a successful pizza alternative. 2. Digiversion – the digital out-of-home world Digitalisation has become a standard constituent in the work of food-service, hotels, bakeries and cake-shops eg in the planning of take away and delivery, process optimisation in kitchens or compensation for staff shortages. 3. Health – And it can taste good Health oriented food remains popular for young and old and is relevant in the out-of-home market. Especially during the pandemic, meals which offered vitality and energy were in demand. Vegan and vegetarian have become a standard menu fixture. Chains offer even a meat-free burger alongside their standard meat burger. Fish alternatives are being launched, going as far as seaweed based products. 4. Sustainability – The battle of the profiles Sustainability is a megatrend which has developed around the world as awareness for climate-change grows. Consumers expect solutions from manufacturers for a complex, multi-layered problem area – waste management, recyclable packaging and efficient use of resources. Reusable cups and bowls for delivery and take away or coathangers, serviettes or cutlery from sustainable materials all show future potential as their popularity grows.
7 out of 10 Belgians are Buying Own Label More Often
A survey commissioned by Aldi shows that 7 out of 10 Belgians are buying more private label products in response to rising inflation. It doesn’t come as a surprise that inflation is leaving its mark on consumer purchasing behaviour. An Aldi survey shows how behaviour is changing. “Comparing prices has become a daily routine for more than 4 in 5 Belgians, according to a representative iVOX survey,” says Aldi. “Also what ends up in the shopping trolley is changing. Private labels are gaining considerably in popularity. More than 7 in 10 Belgians say they are buying private label products more often since the inflation spike.” The survey shows that household brands are more popular in Flanders (75%) than in Wallonia (69%) and that more young people report saving on their household budget as a reason for buying house brands. Among adults under 34, 77% cite this as a reason for buying more ‘white products’. Among people over 55, the figure is 66%. The popularity of private brands will also continue to grow over the long term, Aldi claims. The survey shows that no less than 3 out of 4 Belgians plan to continue buying private label products, even when inflation is less noticeable. Aldi wants to press the price argument of private brands further in the coming weeks. “Every week we will demonstrate the price difference between the same basket of A-brands on sale at Aldi and our own private labels. In this way we want to help all Belgians to make budget-friendly choices”, says Isabel Henderick, Managing Director Marketing and Communication at Aldi. “Consumers will soon notice that it is smart to choose private brands. More than 90% of the regular assortment at Aldi consists of house brands.”
Shoppers and manufacturers: How far do expectations with regard to packaging diverge?
You are a manufacturer and are currently looking for the best possible product name. You’ve come up with three product names internally, but now you don’t know which one will appeal to your target market best? That is just one of many market research challenges food & drink companies face with regard to packaging. By using three different packages with identical content and questions about the naming, market research specialists provide the best possible product name. Again and again, go2market is approached by manufacturers with questions far beyond “classic” questions about the product. That’s why we also carry out studies on specific topics, in addition to product tests – most recently on the packaging. What was particularly exciting was that we asked our product manufacturers and members more or less the same questions. This clarified what shoppers want/expect and what the industry thinks are often worlds apart. Perhaps this is one of the main reasons why most new listings at retail fail within a few months. Therefore, I would like to share some exciting findings from our packaging study 2021 with you. Approximately 66% of the 1,000 surveyed consumers said they would like to see recycling/disposal information directly on the packaging. Only about 51% of more than 80 surveyed manufacturers assumed this was important to consumers. More than half of the manufacturers thought consumers would like to see quality marks – on then consumers’ site. This was only slightly more than one-third of the respondents. Opinions differed, especially when it came to the sustainability label. Just under 54% of manufacturers believed that a sustainability label leads consumers to perceive a product as “sustainably/environmentally friendly packaged”. Only 23% of consumers shared the same opinion. The question “Can packaging alone be decisive for a purchase decision?” was answered by more than 80% of respondents with a yes – among manufacturers, only around 68%. Companies should, therefore, not only think about how their packaging should look but also whether it is designed in the way consumers want it to be. About go2market: go2market www.go2.marketshas developed a unique real-life market research tool that works with real supermarkets and real consumers who match the socio-demographics of the particular country where the test is being conducted. The member panel consists of 1,500 people in Austria and 3,000 people in Germany. go2market allows you to see your products through the eyes of consumers. The research and consulting offer refers to the entire product life cycle and includes shopper and consumer behaviour. Manufacturers receive cost-effectively valuable insights and quick feedback. Opportunities include product market opportunities, innovation and trends, packaging design, retail strategies, customer loyalty and brand positioning.
Energy drinks worth billions: The category has exploded in Sweden
Hyped up high-margin product, smartly marketed and nicely packaged. Energy drinks, sports drinks and other functional drinks are a fast-growing segment with sales of just over SEK 3 billion in the Swedish grocery trade. Sales development for functional beverages has been rocket-like. Last year, the functional drinks category had a staggering SEK 2.8 billion in the grocery trade alone, according to figures from Nielsen IQ.
Michelin Guide celebrates ‘resilient’ French cuisine, but wants more women
French chefs Arnaud Donckele and Dimitri Droisneau, celebrate after being awarded a third Michelin star. Launching its 2022 edition, the Michelin Guide celebrated an increasingly green and diverse French food scene, as well as its resilience after emerging from two difficult years of pandemic. Greeted each year with apprehension by chefs and gourmet food lovers, the famous red book revealed this year’s winners in Cognac in south-western France – the first time in its 122 years the ceremony has taken place outside Paris. Two restaurants were awarded its highest distinction of three stars. Arnaud Donckele, 44, known for his extraordinary sauces, shot straight to the top ranking for his new restaurant Plenitude in the Samaritaine department store in Paris. Husband-and-wife team Dimitri and Marielle Droisneau also joined the top rank for their Mediterranean restaurant, La Villa Madie, in Cassis, near Marseille, which judges praised for its “poetic home-style cuisine”. “With 49 restaurants promoted this year, included two three-star restaurants, we see that it is more than just resilience – that the French gastronomic scene is showing incredible vitality and creative power,” said the guide’s director Gwendal Poullennec. “2021 was another difficult year for restaurants. The impact of the pandemic continues to weigh on them. Prices for ingredients are rising enormously and recruiting and keeping staff is a challenge for everyone,” he added. “Despite everything, we have a great selection, but I see that we have too few women,” he said, calling on restaurants to continue the “profound changes” they have been making to improve the imbalance. Green star restaurants Much focus in recent years has been on more minimalist, sustainably sourced cooking, which the guide has been rewarding with “green stars” since 2020. There are now 87 green star restaurants in France, with six new additions in the new guide. Last year’s ceremony, in the midst of a months-long shutdown caused by the pandemic, was a low-key affair with only one chef – Alexandre Mazzia – promoted to three stars. But this year marked a rejuvenation, with a maskless crowd packing out the theatre in Cognac, a small town in western France, with a huge international reputation for its namesake spirit. Created in 1900 by tyre manufacturers Andre and Edouard Michelin as a guide for motorists, it now has editions across Europe, Asia, North and South America. In March, it announced it was suspending operations in Russia due to the war in Ukraine, just a few months after launching its first guide in Moscow.
Advertising Healthy Food: Marketing Strategies to Use
So, you are trying to establish yourself among the healthy food brands already operating in the food industry. You need to think carefully about your marketing strategy if you want to increase your chances of your products being sold to the top food retailers. Healthy products are a big business and there are many consumers making purchasing decisions about food based on the health benefits they offer. What are the best food marketing strategies to advertise healthy foods? It can be a challenge. To help you out in the following post we are going to discuss how to get the most out of any marketing strategy, as well as look at some of the different methods you can use, beyond traditional advertising. Determine your target audience This is important when marketing anything. You need to have a clear idea of who your target audience is for your healthy food products. What market segments are you trying to appeal to with your food items? Are you aiming it squarely at younger people or is it for busy workers who have little time to prepare healthy food? It is likely when you designed and worked on your food products, you had ideas of who you are aiming them for, so this should already be set in place. By extension, you should also identify the segment of the food industry where your healthy food options fit in. This will help with any overall marketing plan you use and get you those all-important sales. Share your story: why have you created your product? When creating a healthy food strategy you need to highlight the reasons why your food items were designed and produced in the first place. Was there an inspirational story behind its creation? Did you or someone you love have a personal struggle, or did you simply identify a pain point that your new healthy food addresses? For your healthier food items to appeal to your target audience, stand out from the crowd and secure sales, you need to make sure the story behind them is as relatable and personal as possible. Share the details: how is the healthy food product made? Consumers are becoming savvier and savvier. To meet the consumer demand for more information, it can put your healthy food product ahead of the crowd if you can show something that makes it unique about how it is made. Even if there is nothing unique in the process, incorporating how it is made into your story can help. Look at what other healthy food brands do and look out for any healthy food trend you can tie in with your healthy food marketing strategy. When talking about how it is made and discussing the ingredients and recipe, keep the following in mind: Highlight health and nutritional benefits – If you are trying to appeal to consumers who are looking to make healthier food choices, you need to highlight the different health benefits and your food’s nutritional content. Highlight any related benefits (organic, environmentally friendly) – It is very often the case that consumers who are interested in healthier foods are also interested in knowing if your food products are organic, gluten-free, dairy-free, and are more environmentally friendly than unhealthy food options. Highlight Any Performance Benefits – if you are interested in not just appealing to consumers looking for healthy eating options, and are suggesting that your products will help enhance their performance in some way, make this a focal point of any marketing. If it will help them to become more productive at work or study, give them greater endurance or just help them to sleep better at night, draw your consumers’ attention to these facts in the marketing. If possible, back up any claims with hard evidence. Back up any health claims with statistics and research – Following on nicely from the above point, if you are trying to suggest that your healthy foods are better for your customers than unhealthy food options, you need to back up your words with concrete evidence from research and statistics. The more evidence from health experts you can provide, the greater the success you will have with any health-related food marketing you use. Don’t forget to talk about flavour – This is rather obvious, but it’s worth noting because, in the excitement of discussing your health products and food’s nutritional and health benefits, you could forget to mention flavour. In any part of the food industry, whether you are marketing healthier foods or not, the flavour is always important. You want healthy food and healthy eating to be appealing to your target audience. Particularly if you are competing with sugary drinks and food. Team up with influencers Influencer marketing can be highly effective, especially for new brands that are looking to benefit from greater cultural awareness. However, you need to be cautious with this, but as long as you are not telling lies or it could look like the individuals or groups involved in your influencer marketing for money. Content marketing and sponsored content marketing are two ways to utilise the help of influencers. Get endorsed by relevant organisations Look for relevant food industry organisations that are involved in healthy eating and encouraging customers to make healthier options. It can help with public relations and gain a growing consumer base if you are aligned with a recognised, relevant and renowned organisation. Summary It can seem very intimidating at first when you are trying to make waves in the food industry and want consumers to take note of the healthier options you are offering. You need to get some perspective and realise that with any marketing strategy, you need to accept that there may be some degree of trial and error involved. A useful guide is to look at other companies food marketing strategies that offer the same kind of healthy foods and products that you offer. Whatever you do, try to hone in on and highlight the things that make your healthy foods stand out. If you need any assistance with how to market your healthy food products, or maybe just need a refresh on the strategies you might already have in place – then feel free to get in touch today and one of our expert team will be on hand to help you!
Veggie cheese sandwich available at Albert Heijn To Go stores.
Albert Heijn has extended its vegan range with a Vegan Cheese Sandwich to suit the ever-growing group of flexitarians and vegans. The cheese sandwich has been developed in a collaboration between Violife and De Graaf Bakeries. The vegan cheese is supplied by Violife and the sandwich is baked at De Graaf bakeries.The cheese sandwich has been introduced at all AH To Go stores and is priced at €2.
French supermarket tills where chit-chat is welcoming growth in popularity
Checkouts where people are encouraged to take their time and chat with the cashier are becoming more popular in France. French supermarket chain Carrefour has launched what it calls ‘Blabla’ checkouts, where customers can take their time to chat with the cashier and have a more meaningful interaction. The idea comes from the Netherlands but is increasing in popularity in France. Carrefour first trialled the service in 2019, with other retailers Système U and Auchan following suit after with their own versions. The initiative was put on hold by Carrefour due to the coronavirus pandemic, but in mid-January this year it relaunched it. The company is now aiming to have at least one Blabla till in each of its hypermarkets around France by the end of March. There are already around 150 shops in France that currently have this type of slow checkout. The checkout is signposted in the aisle and each customer can choose to go through it. The idea is to take the time to talk to people who want to. There is no time limit, and while the checkouts are noticeably slower than traditional tills, customers are reportedly also conscious not to linger too long if others are waiting. It humanises the process The Carrefour in Épinal in the Vosges (Grand Est) has one Blabla till out of a total of 23. Patrick, a local customer, told Franceinfo he liked the idea of it. “I think it’s good. It humanises things a bit more,” he said. “I think it’s probably more pleasant for the cashiers. It’s a difficult job where people are indifferent, they hardly say hello. They are never happy. So I’d say it’s more of a plus.” Corinne, who works behind the Blabla till in the shop in Épinal, confirms Patrick’s belief that it is more enjoyable for the staff. Going against the self-service takeover The launch of the slow checkouts comes at a time when there are increasingly more self-service checkouts in supermarkets in France. Between 2018 and 2021, the number of hypermarkets with self-service checkouts increased from 81% to 88%. This includes 99% of Auchan’s hypermarkets, 92% of Carrefour’s and 95% of Hyper U’s.
Protecting our unique red meat brands
The Welsh Lamb and Welsh Beef brands are renowned worldwide for quality, sustainable production and industry-leading traceability. The origin and unique qualities of both have been protected over the years by the Protected Geographical Indication (PGI) status, awarded by the European Commission nearly two decades ago, and more recently by the UK Government’s new Geographical Indication (GI) Scheme. This protection and recognition are of enormous economic importance to the Welsh red meat industry. It has guaranteed the authenticity and integrity of the brands and prevented unfair competition. In the early years, it led to us at Hybu Cig Cymru – Meat Promotion Wales (HCC), the red meat promotion and development agency, to implement a verification scheme for abattoirs and cutting plants. The scheme continues to provide for strict control and monitoring to ensure that only lamb and beef which meet the specifications is labelled as Welsh. These insist that an animal was born and reared in Wales, is fully traceable and is slaughtered and processed in an HCC approved abattoir or cutting plant. Using the PGI status to protect the unique qualities of Welsh Lamb and Welsh Beef, together with promoting the sustainability credentials of the products, is key to their success. It has led to greater sales and enhanced reputation in key markets, including many export destinations with 40% of Welsh Lamb being sold overseas. And then we had Brexit. There was nervousness in the industry regarding the future of PGI protection within the UK and EU; it was a protection that was too valuable to lose. A major relief was felt when all product names protected in the EU also became protected and mutually recognised under the new UK GI Scheme from 1 January 2021 – and this included Welsh Lamb and Welsh Beef. It now means that our red meat brands are protected by both EU and UK legislation. We at HCC are working with the industry to adopt a dual approach for Welsh Lamb and Welsh Beef branding where the PGI logo will continue to appear alongside the Welsh Lamb and Welsh Beef logos, with the EU logo used on products sold into the EU, and the UK logo used on products sold elsewhere. Similar to the EU Scheme, the UK’s GI Scheme guarantees a product’s characteristics or reputation, authenticity and origin. It protects the product name from misuse or imitation. With more and more consumers demanding that the food they buy can be traced back to its origin, HCC has taken things one step further by taking advantage of the latest traceability testing science to provide further guarantees to the public on the origin of lamb and beef. Forensic ‘origin fingerprint’ technology, undertaken by world leaders Oritain, has been used since 2018 to reinforce the PGI promise and deliver the ultimate in farm to fork traceability for Welsh Lamb and Welsh Beef. The use of such innovative technology is unique for a GI product and has won food industry awards. It cleverly analyses trace elements and isotopes, which animals absorb from their natural environment and the grass and water that they consume, to establish a distinctive Welsh ‘fingerprint of origin’. We collect samples for testing from anywhere in the supply chain, anywhere in the world to ensure consistency with the Welsh origin claim. The agreement with Oritain, in addition to the protection through the EU and the UK legislation, means that Welsh Lamb and Welsh Beef’s excellent reputation for traceability and quality is maintained among consumers in the UK and beyond.
Colruyt and Albert Heijn limit price increases
The price level at Colruyt and Albert Heijn remains significantly below the market average, despite a general increase in costs for raw materials and energy. Other supermarket chains have been increasing prices, according to Retail Detail. It was expected that at the beginning of this year prices of food would rise significantly in supermarkets: almost all manufacturers were forced to push up their prices to their customers because of the rising cost of energy, transport, wages and raw materials. However, not all supermarkets are passing on these price increases to consumers to the same extent, according to a new price survey by Daltix reported by De Standaard and Het Nieuwsblad. Market leader Colruyt and challenger Albert Heijn seem to be engaged in a price war: in the past three months, both chains remained significantly cheaper than their closest competitors. The difference has become even bigger: in one year, the prices for private labels and branded products together rose by 4% at Delhaize and Carrefour, at Colruyt and Albert Heijn this was only 2%. Albert Heijn is attacking Colruyt’s lowest price position with a limited number of low-priced items, according to the analysis. For other products, the chain is more expensive. Overall, Colruyt remains 8- 9% cheaper. It is worth noting that the price comparison does not take into account the personalised price discounts that for example Delhaize offers to customers with a SuperPlus account.
Vegetable alternatives appeal to Italians
From an analysis by the Gfk Consumer Panel, a growing interest in plant-based food products has emerged, in terms of both purchases and consumption. If possible to define as a category, that of plant-based foods are substitutes for meat, fish , milk and any other products of animal origin. Given the growing interest in these products, the GfK Consumer Panel conducted research on Italian households to investigate further trends in attitudes in consumption and purchasing. The analysis showed that over the last year the plant-based market has grown considerably with more than half of Italian families purchasing the category frequently ie around 10 times a year. Purchases of plant-based products, often driven by consumer health needs (rewarding above all organic and free from products) are no longer an exclusive choice for vegetarians, vegans or meat reducers in general but a real alternative to more traditional food for all family members. In fact, 40% of families surveyed do not have specific dietary needs yet they are nevertheless responsible for 27% of purchases in terms of volume of total plant based. In this category, the richness of the range is relevant for consumers who seek innovation, so much so that in the last 2 years purchases of these types of products have grown by 11%. The survey was conducted on almost 13,000 families and results indicate that whereas in 2019 48% of families bought such products, in 2021 this has risen to almost 55%. As for meat substitutes, over 850,000 families confirmed purchasing them in 2021, mainly families with a younger profile who tend to live in the north of Italy, in large cities and with a higher socio-economic profile. In plant-based gastronomy, the two main segments are represented by burgers and finger food, which in the last year alone have achieved 2% more penetration. The category certainly deserves more and better space in the stores, given the growth in penetration in all channels, especially in discount stores and online, which have greater growth potential.
The Food industry’s role during wartime
Although access to food is absolutely necessary for human survival, there seem to be no clear plans in at least Sweden and Denmark to secure food production in a crisis. Food production is widely based on foreign supply of even most essential products and for several retailers the whole distribution set-up and stock holding is based on only a few days of shelf stock. And most products have short shelf life. We at Green Seed Nordic actually have had requests in recent weeks to find long shelf life products and products that are efficient in terms of fulfilling basic nutritional needs .In several Nordic countries stockpiling is talking place as we speak, canned food is on the rise as one example, bottled water is another. In a new analysis Swedish firm Macklean outlines the challenges and opportunities in Sweden and Finland. Sweden’s crisis preparedness lacks a robust food supply whereas Finland already during the pandemic showed that it is well prepared. Being prepared means that state and private owned companies have an operational plan with a clear structure in place that both are committed to. It involves alternative access to energy supply to be able to maintain food production. A state-owned storage system and security of supply and a distribution set-up being able to deal with extreme crisis, or war. “The time for advance warnings in military crises has been shortened and the threshold for the use of force has been lowered. At the same time, society’s vulnerability has increased”, according to Finland’s security plan. State security warehousing to ensure domestic supply, so that the amount available in the country corresponds to the average consumption of human food for at least six months is in the plan. In addition, safety stocks of certified seeds, protein crops and other goods necessary for primary production can be maintained. Sufficient financial resources are reserved for plant breeding and maintenance of various varieties. There is a clear goal for Sweden’s total defence: the country must be self-sufficient for at least three months in case of crisis – but there is no concrete plan and structure for implementation. It lacks a robust food system that can secure food supply for more than three months, showing vulnerabilities in both primary production and industry, distribution and trade. A defence strategy not only involves a military strategy but also, amongst many other things, a clear food supply system. It also forces reflection to be given to which products are absolutely necessary and how can we in the food industry develop new products. The covid crisis opened our eyes. The Ukrainian war situation show that action is needed.
Germans Know The Advantages Of Vegan Diet, But…
A survey with a sample-size of 1,000 was recently carried out for Lieferando and reported in the trade magazine “Food-service”. Results indicated that 88% of Germans would consider one day cutting out animal-based products from their diet. Many are however still reluctant to take on completely the vegan way of life and remain somewhat sceptical. 68% consider that a vegan lifestyle is better for the environment, 60% consider it better for ethical reasons and 65% say it is healthier. Young consumers are more pro-vegan than older ones. 74% of 18–24 year-olds think that a vegan lifestyle is important in the fight for climate change. And 39% of 25–34 year-olds eat plant-based several times per week, but this reduces to only 13% amongst 56–65 year-olds. One half of this older segment never eats vegan. A half of 18–34 year-olds are ready to replace their meals with vegan alternatives, but this is reduced to 24% of 56–65 year-olds. Only 3% of Germans would consider converting completely to vegan food. This compares with 13% who would consider a vegetarian lifestyle and 21% who would explore a flexitarian way of eating. Not only one’s personal opinion matters to influence opinions about eating habits. 39% of Germans are influenced by people who are close to them, this increases to even 64% amongst 18-34 year-olds. The reason why so many Germans are not ready to switch completely to vegan food is that 50% state they would miss the taste of animal-based products and 35% consider vegan food to be expensive. Only 15% of consumers think that eating out or ordering vegan food is more complicated than for normal food and 9% do not exactly know which products contain animal-based products or not.
World Premiere In Oslo: New 7-Eleven Concept Combines Convenience & Discounted Pricing
Oslo was the venue for the world premiere when 7-Eleven Market opened the doors to the first store in its new concept. The store promises a wide selection of groceries – at prices that match discounters. Low prices for people on the go. 7-Eleven Market offers freshly baked, drinks, fruit and vegetables as well as simple ready-made meals. The price promise to customers is to match “big sister” discounter Rema 1000’s prices on the 100 best-selling products in the grocery category. Mariette Kristenson, former CEO of Reitan Sweden now with a similar position at Reitan Convenience, says that the company “challenges and explores the convenience concept of the future with 7-Eleven Market”. – Street food, organic cheeses, smoothies, juices and vegan alternatives are just some examples of what is offered.
France Launch Its First Entirely Vegan Butcher
Carrefour has launched the first-ever Vegan butcher. The collaboration with Dutch brand, ‘The Vegetarian Butcher’ promotes a plant-based diet for the meat-loving French. The retailer will have various alternatives on offer including Soy-based mince at €13.90 per kilo, Chicken-style chunks, Burger patties at €12.90 per kilo and ‘Chicken’ nuggets. Carrefour said on social media, “Bringing these two types of products together simplifies the shopping experience for our customers who want to go vegan. Carrefour is the first major retailer to market these delicious products that have already won over Burger King.” Vegan butcher shops are becoming increasingly popular, with shops opening in Chicago, Minneapolis, and the UK among other places. Most recently, France decided to get in on the trend and has opened its very first vegan butcher counter! The vegan butcher shop will be opened in a corner of the supermarket chain and will feature vegan options mechanized in a butcher shop-style manner. The news of the vegan butcher shop opening in France shows just how much the market is changing. France is notorious for consuming a lot of animal products and having low rates of veganism, but a report from the research institute Xerfi revealed that sales of vegan and vegetarian products are slowly increasing. Between 2019 and 2020 alone, sales of plant-based products rose by 17%. They expect the market value in the country to increase to around $700 million in the coming years. It’ll be interesting to see how the market continues to shift in favour of plant-based products.
How The Supermarket Must Reinvent Itself
Will the supermarket survive the twenty-first century? A somewhat provocative question, you may think, but it must be said that the corona pandemic has accelerated a lot of developments to an improbable degree. The final breakthrough of online grocery shopping was particularly remarkable: a few weeks of lockdown were enough to make a jump of about five years into the future. Suddenly, the market did seem ripe for new, digital business models: meal boxes, home delivery, direct-to-consumer models, ultra-fast bicycle delivery… they all want to make life as easy as possible for the pampered consumer. Digitalisation allows for personalised service at the beck and call of consumers. Via the smartphone, everyone now has access to an endless range of products and an infinite variety of services. But in a fragmented, colourful and digitised society, there is no longer any place for the uniformity of the hypermarket and supermarket. The rapid emergence of new, digital distribution platforms and channels is threatening the market dominance of the large traditional concerns. Food is becoming a service, controlled from the cloud. Meanwhile, in the background, there is a threatening battle for scarce raw materials. The combination of population growth and climate warming is putting enormous pressure on supply chains. The question explodes: how can we feed 10 billion mouths in a healthy and sustainable manner by 2050? Food production must double, but we only have one planet. Moreover, human life on that planet is in danger: climate disasters cause harvests to fail, global warming makes some areas unlivable in the long run and therefore also unusable for agriculture. The food system needs a radical overhaul. In short: food retail is in a perfect storm… These evolutions are forcing supermarket players to radically reinvent themselves. And rightly so, after fifty years of virtual standstill. Food retailers will optimise the use of their valuable square metres: less space for displaying products for routine repeat purchases – because those purchases will largely shift to online or even be automated – and more space for solutions, inspiration, entertainment and logistics. This requires a new shop layout, no longer based on logistical requirements but on consumer expectations and/or the time of purchase. The supermarket of tomorrow will not work without advanced data applications: personalised promotions, dynamic pricing, temporary flash sales or intelligent cross-selling will be the new normal. Instead of taking products from the shelves and putting them in the trolley themselves, shoppers can use their smartphone to scan and pay, and the groceries will be ready at the exit a little later or be delivered to their home in record time. Everything is possible. Online and offline are merging completely. In order to make this happen, part of the shop floorcan be transformed into a dark store: the logistic hub from where online orders are prepared in record time, both for customers who come to collect their shopping on site (Click & Collect) and for people who have it delivered to their homes in the region. So why would shoppers still come to the shop? The fresh food experience is (part of) the answer. A fresh market with local suppliers, inspiring cooking classes, tastings and workshops, live cooking, surprising themed events … In short: the market returns to the supermarket. In any case, supermarkets of the future can only exist if they are sustainable, stocked with new techniques and ingredients, built on circular principles and more efficient with packaging and food waste. If we want a future for food, we will have to open up to seaweed and fish from the same underground tank, in-vitro chicken nuggets from the 3D printer that no chicken died for, or a mealworm croquette. Above all, that supermarket will be part of a much larger ecosystem that serves the consumer at his beck and call through a multitude of advanced solutions and channels. The supermarket of tomorrow is a data-driven platform.
Flexitarians Looking For More Plant-Based Chicken When They Eat Out
Research conducted by Quorn has found that over half of flexitarians (52%) eat out at least once a week – and 40% of them eat plant based at least half the time when they select their meals. Plant-based burgers are the most popular item, but consumers would like more alternative chicken products to be available. Retail volumes of meat-fee products were up 15% in 2022 on the previous year’s Veganuary (this year’s Veganuary signed up 629,000 people worldwide). Meat alternatives now account for ca 2% of the total meat, fish and poultry category and are purchased by 9% of households, according to the AHDB, who add that growth of meat and dairy alternatives slowed in the first 3 weeks of the year.
Better For The Planet & Better For You – A Top Priority In 2022 For Spanish Food Companies-
Spanish companies have strongly started to deliver on their promises to improve sustainability strategies with 82% of them already putting in place measures against greenhouse gas effects. There has been a reduction of 25.8% of carbon emissions and there are 33% more projects now in place for carbon compensation. According to the recently issued «I Informe de Sostenibilidad en las Empresas del Gran Consumo y Sectores Afines», prepared by AECOC, the Spanish Association of Manufacturers and Distributors, 86 % of companies have started to implement sustainability actions in their production processes and 75 % are also acting upon logistics and transport. 72 % have applied improvements in their central services. Cinta Bosch, AECOC Sustainability Chief, declares: ‘reduction of environmental impact is already one of the main strategic pillars of Spanish food companies.” As regards circular economy and packaging strategies, 87.8% of the companies have reduced their plastic consumption, with a reduction of 22% of the plastic materials used in the production and packaging processes. In terms of renewable energies, according to the survey 58.2 % of the energy currently being used comes from renewable sources, and the companies have established as an objective to achieve a level of 70% in the years to come. According to the survey in the part related to “Better-4-you” 77% of the companies are also establishing measures to incentivise healthier lifestyle habits.
US Trade Shows – Is There A Right Time To Exhibit Or Attend?
Trade shows in the US are a critical part of launching in the market and are an essential investment for aspiring food and beverage brands. In a country so physically large and with a fragmented retail structure, trade events are an efficient way to meet customers, distributors, brokers, research companies, marketing agencies and investors, who are all focused on the food industry. Emerging from a two-year hiatus, many suppliers have benefited from the cost saving of no trade shows but now they are beginning to realize their importance and are missing the industry connections. I am frequently asked the question: when is the best time to attend and exhibit at US a trade show and which shows are the most effective? The answer is, it depends. It depends on a number of factors like: the category that your product competes in, the characteristics of your brand, your trade channels, whether you have a regional or national plan, and at what stage are you with market entry and US development. Finally, it depends also on your budget; as show entry, exhibiting, staff, accommodation, and travel in the US is expensive. My first rule of thumb is: if you’re not selling yet in the US, don’t exhibit yet. If you’re at pre-launch stage, consider just attending the show, it’s a great way to do some research on the competition and network for possible sales and marketing partners. Try to set up meetings with them in advance but remember it’s unrealistic to expect retail buyers to make appointments at shows with a new, speculative company that is maybe not ready for launch. Sometimes country pavilions at shows are a good start point to exhibiting early, to get feedback on your product and packaging but unless your set up to supply, many buyer leads can go unfulfilled. When you are at launch stage (i.e. when you have product and packaging adapted for the US consumer, US barcodes, have sales materials ready, a supply chain set up and have identified your appropriate customers, distributors and sales resource), then you could consider exhibiting. Even then, unless you have a big budget and are not concerned about revealing yourself to competitors too early, I would carefully consider waiting until year two, when you have product availability in distributor warehouses. While you may be dreaming of meeting an important buyer from one of the larger retail supermarket chains, the reality of starting up in the US market is that it often involves building brand strength in a series of smaller regional and local customers, who are serviced through national and regional distributors. An effective trade show will enable you to meet literally hundreds of retail buyers who will want to know which distributors you are available in, to place purchase orders to get your business going. There are the four big national shows that cover a wide range of food and beverage product categories: 1. Natural Products Expo West (Anaheim, CA in March) which is the largest of them all, and then the East coast sister show, 2. Natural Products Expo East (Philadelphia PA, in September), these cover natural and organic classes of trade plus the many larger mainstream retailers attend too. 3. The Summer Fancy Food Show (New York in July) and the smaller 4. Winter Fancy Food Show (usually on the West coast in San Francisco in January) targeting specialty channels but again attracts big supermarket chains. There are also category-specific shows like IDDBA (the deli and bakery show), and the All Snacks Show (Sweets and Snacks) that are very impactful for their more specific product areas. The most effective selling shows can be those run by the distributors like UNFI and KeHE. The smaller regional shows are less expensive and less busy, giving you time to build closer relationships with buyers and broker teams. If you need advice about US trade shows and how to enter the US food and beverage market, please feel free to get in touch. Green Seed North America has a team of 20 sales, marketing, research and operations consultants that have a track record of successfully launching brands to the US retail trade. David Wilson david.wilson@greenseedgroup.com
Functional Beverage Market: Size, Growth
Functional beverage is a term that is used to describe a multitude of different types of drinks from ready-to-drink beverages to herbal teas, sports drinks, energy drinks and more.
Aldi: New shop concept in Belgium
Aldi is launching a new shop concept in Belgium, in which the fresh food offer is given an even more prominent place. More attention is also being paid to the changing promotions: the retailer is bringing the logic of the brochure to the shop floor. Responding to customer needs The innovation fits in with the evolution Aldi has been undertaking for some years now: the retailer is investing heavily in fresh food, for example by adding its own range of pre-packed meat in all its shops and by developing a range of bulk fruit and vegetables. “People come to the shop more often to buy fresh products. So we link our layout to the needs of our customers,” says sales director Koen Piessens. “This way, the shopping trolley can be filled immediately with what is at the top of the shopping list.” At the entrance Aldi welcomes its shoppers with a real fresh market. All fresh products are displayed here: fruit and vegetables, fresh meat, fresh fish and chilled convenience products such as pre-packed salads, fresh fruit juices and other prepared meals and drinks.
Sweden the Food Valley
Sweden is one of the most innovative countries and a country in which it’s easy to start and run companies. Sweden was “early to digitalize,” citing a government-subsidized program for home computers in the 1990s that spread IT-competence to the whole population. Swedish consumers are demanding and open minded to new ideas and the composition of the population is globally representative. Often Sweden is used as test market for international food and beverage brands. Companies are characterized by having a flat organizational hierarchy combined with a high level of education and a system where company taxation first applies when gains are realized. Swedes invest almost half of their money in equities and other financial instruments. As a result, there are also considerably more stock market flotations, because young Swedish growth companies see the opportunities that the capital market offers, they do not shy away from the stock market. Sweden has a tradition for innovation and you see it today not only in the food and drink sector itself with a lot of new innovative food brands like Nicks, Oatly, Proteinella, Vitamin Well but also new ideas built around the food sector like Food waste companies Karma, Whywaste or even Food diet systems like Lifesum or Saveggy, a startup with a patent pending food-safe spray that extends the shelf-life of vegetables, or Epicdenter a rice-sized microchip that sits under the skin to take contactless payments, or Matsmart that saves perfectly good food from being thrown away. In fact the development is speeded up by even more capital going into the industry and potentially future global Nestlé´s and Unilevers are being built rapidly like the Humble Group a young, dynamic and innovative FMCG group. The group consists of +20 business companies that operate in fast-growing segments such as sugar reduction, functional food and sustainable beauty and health. The company is listed on NASDAQ First North based in Stockholm. The country has also been a frontrunner in the world when it comes to health and sustainability regulations in food and agriculture, which has led to one of the most sustainable food systems in the world. With the megatrend of sustainability accelerating, in combination with a highly technical skilled community, Sweden is well positioned to export food products, solutions and innovative techniques. The interesting question is how can a highly taxed and over regulated society with a large public sector and very expensive welfare state be the centre of food tech and innovative food and beverage brands. Could it be that it is not because of but due to this that Sweden has the third highest startup rate in the world, behind Turkey and Spain ? Stockholm is second only to Silicon Valley in terms of unicorns – startups valued at above $1 billion and Sweden ranks second in the global Innovation Index 2021 after Switzerland but before United States that is rated 3. Many small food startups are already in an early stage taking the big global view and are trying to attract external private capital for growth and you already see several so far unknown brands making their way into export. In a way brands like IKEA and H&M have already shown the way. Today there are not just a few but hundreds of ambitious Swedish companies: a lot of these are food and drink companies following the same pattern and it seems like the financial back-up is in place for further expansion.
The Food Retail 2022 Annual Report analyses the trends that mark the development of packaged consumer goods
The propensity to save is driving the distribution world, but it is not the only trend. This can be seen from the analysis of the dominant trends in consumer-packaged goods over the last year published in the 2022 edition of the annual report on Retail prepared by the magazine FOOD. THE PREMIUM TREND Based on IRI data for 2021, in fact, the search for value is the other prevalent trend. “Our monitoring – says Gianpaolo Costantino, economist and IRI consultant – reveals a strong premiumization of purchases, that is, they record a clear willingness of consumers to look for products characterized by high rates of quality and service or by specific and distinctive characteristics”. The proof comes from the numbers: healthcare has, for example, continued its run, as shown by the trends achieved by sports nutrition, with a 30% jump since the beginning of 2021, and by the now wide range of gluten free products, with sales increases ranging from +5% to +50%. The main trends that already emerged before the outbreak of the health emergency have not been affected by the Covid pandemic”. In packaged mass consumption, therefore, two opposing and at the same time complementary souls coexist: on the one hand, the search for convenience, which mostly benefits the discount stores; and on the other hand, the quest for value, where mainstream retail is the main beneficiary . A combination that promises to bear fruit in retailer accounts in the near future.
Introducing Green Seed Poland
Welcome to Marek Schejbal, Managing Director, Green Seed Poland, the latest addition to the Green Seed international office network. Marek has substantial food industry experience in the Polish market, having previously worked for advertising agencies and several UK exporters, as well as in association with the UK’s Department of International Trade and meat export sector. His expertise also spans other Eastern European markets. More from Marek on local export and manufacturing opportunities in our next edition!
Green Seed Group at IFE
Will you be attending the IFE Exhibition in London 21-23 March 2022? It would be great to see you in person. Key members of the team from across our entire office network will be there and we have our own meeting space at the show. If you would like to arrange a meeting, or just pop in for a chat, do let us know: swaring@greenseedgroup.co.uk
Can you keep up with a Gorilla?
Online groceries It was disappointing to see that Kaufland (Schwarz Group) could not get the online grocery model in Berlin to work. They stopped deliveries at the end of 2017. A lot has happened in the world of e-food since then. Not only in Germany. While established grocery retailers with bricks-and-mortar stores are fine-tuning their delivery services, others keep on experimenting and even more are just taking baby steps. The existing trend to shop online has been fuelled by the pandemic and is reflected in growing online grocery sales. Who would have thought that discounter Aldi would ever deliver groceries to your doorstep? Hofer (Aldi Sued) is currently carrying out a test in Vienna and the sector is excited about the outcome. Will Aldi be able to make it work? If they roll this service out in other countries, it would have a major impact on online grocery sales. But there is no time to be wasted. Even though the share of online groceries is small in comparison to bricks-and-mortar sales – Germany bringing up the rear with only around 2% – grocery retailers cannot afford to focus only on the development of their existing delivery systems. They are building alliances and even taking a share in new players that take the concept of delivered groceries to the next level. Q-commerce They are sprouting like mushrooms: “Q-commerce” or on-demand grocery delivery services with funny names such as Gorillas, Getir, Flink, Knuspr or Grovy. A new name pops up virtually every week, promising to deliver groceries to your door within 10 minutes. These new players have entered the market fighting hard for customers and market share. Quick-commerce is still a niche market within online groceries but investors see great potential. In 2021, € 6.7bn venture-capital was invested in these newcomers – a significant increase from € 400m in 2020. Germany, which is comparably underdeveloped in online grocery sales, plays a key role as the largest European market for the growth of Gorillas etc. Opportunities all around The latest format of on-demand grocery delivery creates new opportunities for retailers and industry alike. Q-player Knuspr (Rohlik) has recently started to offer Marks & Spencer products in Munich, bringing M&S food to Germany again after the closure of M&S department stores in 2001. Gorillas has expanded private label cooperation and works with Casino Group in France (focus on Monoprix and Franprix) and with Tesco in the UK. The level of opportunity to team up with fast moving Q-commerce certainly differs from country to country but potential exists everywhere. For example, several on-demand delivery services are currently still looking for exclusive brands or partners to further develop their private label portfolio, in particular regarding their drinks, vegetarian, vegan and fine food product ranges. Business with such an agile on-demand delivery player across various countries can rapidly become more important than with your domestic customer that you have developed over many years. If you have not yet established contact to Gorillas & Co, don’t wait too long. You may miss a business opportunity and definitely want to have a foot in the door before this market segment starts to inevitably consolidate. Shortly after the editorial deadline, this article may not be up to date anymore – the Q-commerce market will already have moved on… Nicole Guenther Managing Director, Green Seed Germany nguenther@greenseedgroup.de
Together with Sweden, the Netherlands leads the way in online shopping
Research by PayPal shows the Netherlands has the highest penetration score together with Sweden in terms of online purchases. More than 80% of the Dutch population has purchased online at some point. In Portugal, for example, this is only 65%. More than 64% of the Dutch population have ordered online meals from in-home delivery restaurants. Here Greece scores the highest with 65% and Sweden scores the lowest with only 33%. Saving time, being able to order all groceries at once or being able to find the best deal are all key motivations for online shopping. Reasons for not buying online include, amongst other factors, being able to see groceries first before buying them and online groceries being considered too expensive. Motivations for not purchasing meals online include the perception that offers are not healthy or a preference to buy directly from local restaurants.
New Regulations For Overseas Food Exporters To China
From 1 January 2022 new regulations have come into effect for overseas food exporters to China. Food companies and brands have to register their company at the General Administration of China Customs (GACC) and may also have to adjust their packaging. The new regulation was issued to implement provisions of the Food Safety Law on the registration of overseas food production enterprises importing food into China. It extends the registration scope of food production enterprises to all food manufacturers, processors and storage facilities. The product scope includes all food products, except food additives and food-related products, which are defined by the Food Safety Law of China as food packaging materials, detergents, disinfectants, and tools and equipment used in food production. The registration procedure depends on the product category: Group No.1: 18 categories of food for which registration is recommended by the competent authority of the country of origin, including: meat and meat products; casings; aquatic products; dairy products; bird’s nest and bird’s nest products; bee products; eggs and egg products; edible fat and oil; stuffed pasta; edible cereals; industrial grain milling products and malt; fresh and dehydrated vegetables and dried beans; seasonings; nuts and seeds; dried fruits; unroasted coffee beans and cocoa beans; special diet foods; and health foods. Group No.2: Other foods not covered by the above 18 categories. Factories manufacturing products covered by Group No.1 must first obtain recommendation from the competent authority (defined as the government agency responsible for food safety) of the local jurisdiction to register the factory. There are also detailed requirements for the registration dossier including, if required, food safety documents, facility design, and manufacturing process flow chart. Facilities manufacturing products covered by Group No.2 may apply directly for facility registration with less stringent document requirements. Once the new regulation is implemented, the GACC has more administrative enforcement tools regarding food import, for example when there is a major animal or plant disease outbreak or a significant change in the food safety situation in the exporting country. Or when the overseas production facility violates relevant Chinese laws and regulations. Foreign brands exporting to China should pay particular attention to the section in the new policy regarding packaging regulations for certain types of products. Compared to the previous regulations on imported food introduced in 2013, the range of products requiring printed Chinese labels on their sales packages has been extended to include sports nutrition, supplementary food for infants, supplementary food for pregnant women and nursing mothers, formula products for medical use, and imported health foods. Selling through cross-border e-commerce (CBEC) channels could be a worthwhile alternative, as the new regulation on imported food product packaging does not apply to CBEC. Brands which cannot take timely action to comply to the new regulation, may still sell the stock originally scheduled for general import through CBEC channels. In the meantime, overseas food exporters can prepare for future export under the general trade model.
The eCommerce Imperative in the US
It’s no secret that the pandemic has caused many paradigm shifts in human behaviour, including the digital revolution that saw a seismic acceleration of ecommerce grocery purchases. According to one McKinsey study, the US leapt forward an entire decade in the span of 8 weeks with many shoppers opting for curbside pickup or grocery delivery for the first time. These new behaviours are expected to stay and will require a change in the way brands think about their ecommerce activity from merely ‘checking a box’ to a fully integrated component of their business strategy. What does this mean for brands? The number one question received from consumer inquiries in the US is “Where do I find the product?” Until a brand has significant brick & mortar retail penetration, this question can be difficult to answer and result in inefficient marketing spends and missed sales opportunities. Therefore, for new brands entering the US, having ecommerce placement with your product available to ship nationally is crucial to take advantage of early consumer interest in your brand while waiting for traditional brick & mortar call cycles and planogram resets to take place. A well-integrated ecommerce strategy should not only complement a brand’s brick & mortar strategy but work synergistically. It is first necessary to understand the landscape and the main ecommerce channels: (1) brand-owned direct-to-consumer website (D2C); (2) online marketplaces such as Amazon and Thrive Market; and (3) online retailers such as Walmart.com. Each channel certainly plays a part in overall strategy, but each comes with its own set of challenges – especially early on in a brand’s lifecycle. Online retailers are often gated until a brand has brick & mortar acceptance, as is the case with Ahold Delhaize-owned Peapod. Online marketplaces like Amazon are also more nuanced in the US, with the ability to sell via Amazon Seller Central (fulfilled by Amazon) gated until brands reach a certain size and can build the business case to earn space in Amazon warehouses. Instead, brands must begin with Amazon Vendor Central, which requires fulfilling their own orders either inhouse or via a 3rd party fulfillment provider and generating demand in hopes of one day being able to go direct with Amazon and realizing greater profits. Given these challenges, it can be beneficial for brands to focus on a direct-to-consumer website to start. D2C can serve to validate brand fit in the US market and leverage more robust 1st party data to A/B test and optimize every part of the brand proposition before distorting greater resources against a brick & mortar rollout. It can also serve as a brand’s innovation playground to test different innovation items with greater speed to market and quick reads on what’s working (or not). And, once the brand generates initial traction, this success story and consumer insights can be used to sell back into brick & mortar retail. Generating demand to build a D2C site into a meaningful sales channel requires willingness to test & learn and adequate marketing investment in tactics such as social media and influencer partnerships, but this strategy of “co-developing” the brand with the consumer can yield significant returns. The best ecommerce strategy is not one-size-fits-all and can vary depending on product category and brand positioning. If you have any specific ecommerce questions or would like to discuss how your brand might enter the US market, email jenny.thielen@greenseedgroup.com.
A small step for retail, a big leap for mankind: why we should stop deep-cut promotions on meat
The world faces many challenges with climate change being one of the major ones. At the COP 26 Summit last November, it was reconfirmed that the food industry represents over a third of global greenhouse gas emissions. Knowing that 1.3 billion tonnes or one third of all food is wasted implies that 8–10 per cent of greenhouse gas emissions are associated with food that is not consumed. If we want to manage the 1.5°C objective, changes in how we produce and consume food will have to be made. Farmers, producers and retailers are all considering different options for how they can contribute to the food offering of the future. The EU is taking a leading role and has launched its campaign from Farm to Fork as part of its Green Deal. Sometimes, simple solutions are close to hand. Where ethics meet economics, small but efficient steps can be made. It seems that several key drivers have come together over the past few years. Sustainability, the fight against food waste, healthy eating, fair trade, animal welfare and local food are key topics for every serious player in the food ecosystem. Other challenges such as margin erosion for retailers and suppliers, farmers struggling to survive or over-fishing of several species are not new and are unlikely to go away either. These challenges are adding another layer of complexity. Everybody is talking about them, but actions are needed in order to achieve the necessary results. Food needs to be fair. Fair for the planet, fair for the producer, fair for the consumer. Retailers write ambitious sustainability charters and embrace their social responsibility. They have a leading and motivating role as guides to their shoppers. In the healthy eating debate, initiatives such as “5 a day”, Nutriscore or other traffic light systems on pack and in store are to be welcomed. However, retailers’ commercial policies do not always their stated ambitions. Consumers are asked to avoid food waste. Consumers are advised to eat less red meat. It is better for the climate and healthier for the body. Farmers are asked to reduce their livestock, whilst their income is under pressure. Not to mention concerns about animal welfare. Why then heavily promote meat in store? Why discount meat prices? Buy 1 kg of minced beef and get ½ kg free; 3+3 sausages for free or a fresh chicken at €2.5/kg are common promotions. Is this ethically correct? Meat products are still used by retailers to entice consumers and as a promotional tactic versus their direct competitors. Being a central part of many diets, meat products generate volume and therefore a high turnover. Should this spiral not be broken? Which retailers will dare to stand up and be the first to ban deep-cut promotions on meat or any other live species? This would increase consumers’ understanding of the real value of food. It would increase respect for the role of farmers behind the products brought to our plates. Quality above quantity. Less food waste, less greenhouse gas emissions, more planet. It seems so simple and logical. Which retailer will rise to the challenge?
Opinion: Just Saying ‘Plant-Based’ Isn’t Enough
Perhaps the most dramatic change in grocery over the last few years – whether in the US, the UK or other European markets – has been the explosion of plant-based foods. Meat alternatives, dairy alternative drinks, vegan snacks and convenience products had all been growing strongly before the pandemic struck, only then to get a turbo boost as more and more consumers have sought out new options to meet increasingly flexitarian eating habits. But can annual growth rates of 16%+ (Kantar UK meat-free sales Aug 2021) really be sustained? And are we seeing clear enough messaging from individual brands about real product points of difference (not just ‘we’re not meat’)? The surge of challenger brands announcing new plant-based solutions just keeps on coming. It’s a wonderful thing that new ways to combat climate change (among other motivations) have driven so much innovation. But whilst there is clear evidence that many of us are seeking to reduce our meat intake, it doesn’t follow that all plant-based propositions are seen as compelling alternatives. A point of difference A key question for producers to ask themselves: is my product really distinctive from those already on the shelf? Retailers are well aware that plant-based categories have been hot, and they have responded . They have allocated more space to them in frozen – great to bring more higher spending shoppers into those aisles with some attractive innovation – and in chilled, often alongside conventional meat (or dairy) lines, as well as in ambient grocery. They have listed both new brands and presented own label variants too. But this doesn’t mean the floodgates will remain open. Buyers and consumers are struggling to understand the relative merits of one product over another. Is it important to distinguish between soy and pea protein in meat alternatives? Which tastes and performs best of oat/soy/almond/cashew/hazelnut/coconut (and many more) options in alt dairy drinks (let alone which has the least environmental impact)? Beyond Meat’s share price has tumbled and the US plant-based market has been cooling for some months now. Who knows whether we are due some form of reset as the market adjusts to changing buying behaviours. Clean label Plant based may be a key trend, but so is clean label. While consumers may be looking to avoid meat products, it should not have to be at the expense of product composition. Shoppers want to see ingredients they both recognise and appreciate are necessary for the product’s recipe. Let’s face it, meat contains meat (and often nothing else). Meat alternatives contain a mix of ingredients designed to offer a similar eating experience – and criticisms of highly processed, high salt content products appear to be getting louder. All the more so when they result in a higher priced product than that of the protein they are replacing! After COP 26, climate change is even more firmly on the agenda. This plays to the messaging of plant-based brands for sure, but by no means all are doing as much as they can to ensure that their packaging is as sustainable as their products claim to be. Not all plants are equal The Guardian recently published the results of a US University of Illinois study showing that meat accounts for 60% of all greenhouse gases emitted by the entire production cycle of the food industry. Beef was highlighted as the worst offender: 1kg of beef creates 70kg of emissions. Which is quite something. But the same study also showed that rice production accounts for about the same greenhouse gas emissions as pork and chicken combined. Something which hasn’t yet made the headlines and suggests opportunities for quinoa and other grains with significantly lower climate impacts. As we approach the 8th edition of Veganuary, and enter the next phase in the evolution of plant-based foods, now is the time to educate consumers and buyers, highlight real points of difference and demonstrate a holistic approach to sustainability. A very happy Christmas to all our readers. Simon Waring Managing Director, Green Seed UK swaring@greenseedgroup.co.uk
REWE now one step ahead in store design
The latest design of a 1,500 sqm supermarket has just been opened by Germany’s No. 2 food retailer REWE in Wiesbaden-Erbenheim, 30 km west of Frankfurt. Its architecture is meant to inspire with fresh fish tanks, herb gardens on the roof and more chilled food than normal. Great use is made of wood, high ceilings and daylight. This style, which took 4 years to develop, will be a future model with REWE planning to open 25-30 new stores per year on fully owned sites. The preceding design model was the REWE Green Building of which there are now 200. REWE estimates store turnover of € 8,000 per sqm, i.e. annually about € 12m. This is calculated on the basis of a 10 km catchment area and about 10,000 customers per week, each spending about € 23. The store employs 65 people. REWE collaborated on this project with the London-based architects ACME.
Carrefour’s digital-first expansion brings cashierless tech to French shoppers
French retail giant Carrefour announced this month the launch of the first artificial intelligence (AI)-powered store in Paris, dubbed Flash 10/10 (10 seconds to shop and 10 seconds to pay). The concept of the technology store was first tested at the company’s head office in France for more than a year. According to the company, it has been designed to ensure a fast and accessible shopping experience for customers who can enter and exit the store without having to pass through a gateway. Powered by U.S.-based retail technology company AiFi, the store is equipped with 2,000 integrated AiFi sensors built into the shelves and 60 AI-powered cameras placed in the ceiling to help track customers anonymously to protect consumer privacy. The products picked up are automatically added to a virtual shopping cart, and once customers are ready to leave the store, their virtual baskets are validated at a checkout terminal where they can make a contactless payment without having to scan items or install an application. The launch of Carrefour Flash comes on the heels of the company’s first-ever Digital Day held this month, during which the French retailer announced plans to increase its digital investments by about 50% between 2022 and 2026, the equivalent of 3 billion euros. In a statement, Chairman and CEO Alexandre Bompard said the goal is “to transform Carrefour, a traditional retailer with e-commerce capabilities, into a digital retail company, which places digital and data at the heart of all its operations and its value creation model.” And by doing so, it “will unleash the full potential of omnichannel, which is today the DNA of Carrefour and a unique asset in the industry.” The key drivers of this 2026 digital strategy, which will be based on a “data-centric, digital first” approach, include the ramp-up of data and retail media activities, as well as the digitization of financial services and traditional retail operations, according to the statement.. Carrefour’s mobile app has been downloaded 33 million times, and with 800 million annual visits to its digital platforms, the firm’s goal to make digital expansion a pillar of its future strategy plan may well be within reach.
New study: Shoppersmiss 99.7% of the range in the supermarket
Shoppers are spending less and less time in grocery stores and looking for more and more inspiration. This is according to the results of the world’s largest in store behaviour study carried out by Retail Academics on behalf of DLF, Sweden. Using eye tracking glasses which film and follow the eye’s movements in detail, Retail Academics has coded shoppers’ behaviour in stores. The results show that consumers are spending less and less time in grocery stores – just 7.5 minutes in a supermarket, some 2.5 minutes or 25% less time than in 2017. The study also shows that in a hypermarket with 30,000 items, the shopper pays attention to only 76 unique items. This means that they are effectively ignoring 99.7 percent of the store’s total range. Of these 76 items, in the end only 14 are bought on average – down two items compared with 2017. Consumers are extremely habit-driven and have a perceptual filter when walking through the store. All the store’s brand suppliers should take this into account in order to be able to sell their products effectively. One way to break the customer’s autopilot mode is by providing inspiration, which in the shopper’s eye is something very much lacking at present, despite the fact that products offering some form of inspiration sell almost twice as well, the study claims.
In September, large-scale online sales beat expectations
Italians continue to drive online sales in mainstream grocery retail. In September, the turnover of the online channel was equal to 148 million euros, +27% compared to the same period the previous year, surpassing expectations. The cumulative result for the first nine months of 2021 reached 1.25 billion euros, only 80 million less than total turnover in 2020, with the trend for the same period reflecting + 40% growth. These numbers confirm that even during the period of the so-called “controlled return to normality” in terms of travel and access to commercial establishments, the growth trend of the online channel has remained sustained. It is clearly not in line with the most difficult period of the health emergency, but at the same levels as in 2019, with the huge difference that in these two years the market has practically tripled. A recent survey by IRI also confirms that Click & Collect is growing twice as fast as home delivery. Regarding individual categories, the lion’s share in September was made up of products from the dietary/health and oral hygiene categories, pet food and frozen foods. IRI estimates see growth levels to the year end similar to that of the month just ended and therefore of about 20 percentage points, with turnover close to 140 million euros. The balance of power between delivery services (Click & Collect and home delivery) is stable, with spirits expected to be an addtional category to perform strongly in online sales in the final quarter.
Opinion: Digital Consumer Data Insights – Growing strategic importance for leading food retailers
Big data is of big value. The importance of being able to acquire and analyse data to be strategically competitive and create value is growing strongly. The international food retailing world is no different in this regard. Leading food retailers that have a growing insight into the shopping behaviour of their customers have a powerful strategic advantage over their competitors and are much better able to manage across categories, but also to create added value and build stronger loyalty with their consumers. Where initially the existence of a loyalty card was crucial in building these capabilities, today a sizeable online sales base and even more important the existence of a “shopping” app that people either use for online purchases or just as a shopping list for the traditional trip into store, are instrumental in fine-tuning the art of gaining crucial consumer insights. In this continuous battle to stay the number one Dutch food retailer, Albert Heijn announced last week the launch of My Albert Heijn Premium, a paid subscription service linked to their AH mobile app. Based on an annual subscription rate of € 12, subscribers get many benefits compared to non-subscribing users of the app. And additional services aside, subscribers get an annual financial benefit many times the value of the subscription fee. The big objective behind this latest app addition is to secure higher consumer loyalty in general, stimulate the penetration and usage frequency of the app and build buying behaviour data. Many might be sceptical about this growing level of consumer behaviour monitoring. However from the perspective of the business model of leading retailers who still want to be leading in 10 years time, it is crucial for them to gain these insights. Albert Heijn’s example is just the next step in the strategic digital data collection rat race and will doubtless be followed by many new initiatives. Big Brother will keep watching us!!
Insights into the Spanish Biscuit Market
Antonio Obieta, MD Green Seed Spain speaks with Felix Gullon, CEO and Founder of FAMILY BISCUITS So we can put things into some context, could you describe latest developments in the biscuit category in Spain? The category is certainly showing its maturity if we observe how now after the peak of the pandemic we are back in the range of 240/245 Million kgs a year in terms of household consumption and with a stagnant price per kilo at around 3.8 €/kg. The balance between brand manufacturers and Private Label (PL) has remained relatively stable with the 3 leading branded manufacturers holding a 34% of market share and PL at 59%, according to IRI figures. What actions are key players taking in this aggressive competitive environment? The strong competitive environment is prompting manufacturers to develop innovative propositions together with a particular focus on export strategies – as a country we have achieved a level in excess of 200 million kgs in 2020. What are the main megatrends in the category? We are seeing that the category is following other basic food trends skewing towards healthy recipes and propositions while also offering products for indulgence consumption occasions. Could you be more specific in terms of the healthy and innovation developments you are seeing in the trade and developing yourselves? The main trends here are: watching sugar content and trans fat reduction, portion intake control, the usage of “new” ingredients such as different seeds, multigrain cereals or spelt, or increased fortification with vitamins and minerals. Finally also in packaging we are observing interesting developments focused on higher sustainability and formats for new snacking occasions. A new biscuit company in this scenario? After 17th years in the company, I really believe that there are good opportunities for a new player with a new biscuits proposal. The Family Biscuits strategy is focussed on: New healthy ingredients such as extra virgin olive oil, multigrain cereals, natural sweeteners and fruit fibres. “Clean label biscuits” and “zero mile ingredients” make the family biscuits products more natural and sustainable. Tailor made biscuits for customers or retailers is an approach that we are also considering.
More flexitarians, but growth stagnates
More and more Flemish people eat no meat or fish at least three times a week, according to a ten-year study by the VUB. After a peak in 2016, the growth of flexitarians is slowing down. A small but stable group is vegan or vegetarian. In the past decade, the eating pattern in Flanders has clearly shifted from omnivorous eating habits, with meat or fish on the plate every day, to more flexitarianism, with at least three days a week without meat or fish. Stricter plant-based diets such as veganism and vegetarianism have a relatively small but stable number of adherents: less than 5% of the population. “This trend is mainly visible among young, highly educated females who live in urban areas,” says researcher Tom Deliens of VUB. “While most of the population is omnivorous, we see a spike in the consumption of plant-based products in 2016, and more respondents (10% compared to 5% in 2011) consider themselves flexitarians. Veganism or vegetarianism may still be too big a step for some, where flexitarianism seems a viable compromise for reduced meat/fish consumption.” What is remarkable is that the growing number of flexitarians has stagnated since 2016. The sudden peak may have been due to awareness-raising campaigns such as Days Without Meat, Thursday Veggieday and Try Vegan. Deliens suggests that new campaigns could target older and less educated men from rural areas to raise awareness and promote plant-based eating habits there too. After all, a plant-based diet is both healthier and more sustainable: “Integrating more plant-based food into our diet could even play a key role in the fight against climate change.”
Opinion: Understanding consumer shopping types and responding in product design and communication
Recent research from Tiendeo has clustered consumers in 7 different groups in terms of their attitude to shopping: The Omnichannel buyer is a bargain hunter, spending their time hovering between digital and printed media to spot the best deals For the Practical buyer, the shopping act is just to satisfy basic needs. Only going to shops when necessary, not wasting money on non-essential goods. While they may respond to promotions, they prefer basic and simple communication about offers The Virtual buyer views everything through the lens of their smartphone. Having rejected all print communication, these people are curious, lured by technology, well informed and forward looking The Fashion buyer is obsessed with the latest trends in style and sophistication, regardless of practical use. These people are easily influenced and feel a need to impress others. The Sustainability buyer is obsessed with their ecological foot-print. They will examine supply chains to investigate the impact on the environment of products they are considering, pay attention to certification and packaging sustainability. These are well informed people, eco-minded and care about health. Vegans and vegetarians are part of this group The Compulsive buyer makes purchases to feel good, is emotionally driven and acts on impulse, making many unplanned purchases. They may often regret past purchases as a consequence of putting pressure on their spending budgets Last but not the least come the Traditional buyers. They act based on routine behaviours, are brand loyalists, tend to buy local and prefer direct contact with the retailer and happy to be influenced by advice. But let’s not forget that buying behaviour is not always consistent in every circumstance: one can act like a compulsive buyer for some categories and an omnichannel buyer for others. Analysing consumer clusters should influence everything from product design to packaging, promotion or communication. How do these clusters constrain your product and how can you influence consumer perceptions through the marketing mix? And how can you appeal simultaneously to different clusters, from the ingredients used to packaging, communication or promotions? Proper research is key: from positioning to implementation strategies and tactics. Also bear in mind these clusters are influenced by today’s contexts, namely The huge implications from the exiting pandemic situation Post pandemic surge in consumption combined with raw material shortages and disruptions are likely to push inflation to levels we have not been used to Both will determine future consumers’ perceptions, attitudes and behaviour towards shopping and consumption criteria.
How attractive is the UK market to international suppliers and buyers?
While there are so many uncertainties about the UK market right now, it seems that international businesses remain keen to invest in high growth UK food and drink businesses – with plant based the leading category of interest. UK supply chain challenges – shortages of lorry drivers, farm labourers, factory workers especially – are certainly an issue, combined with rising raw material costs and inflation coming into the market. Nor do we yet have a clear picture of the impact on spending patterns (what working environments will be the new normal and how will this affect on-the-go and near office shopping habits? Will spending reduce as inflation bites?). But many categories and companies are thriving and proving attractive both to suppliers wanting to enter the market with their own brands, as well as trade and private equity purchasers. According to recent research by Grant Thornton, 43.8% of investments made in UK food and drink businesses over Q3 were from overseas investors (up from 30% in Q2). Plant based food accounted for 22% of deal volume, with spirits being the second most popular category. Post-Brexit (and -pandemic) Britain is a different place to what it was in 2019. but there are clearly many big opportunities out there.
Is beef the new champagne ?
“Beef is becoming a luxury product”, according to Europe’s largest slaughterhouse group (Danish Crown). The CEO of Danish Crown appeared in all Danish media with this statement. Their prediction is that beef could be eaten only on special occasions because of the climate. And while they may be able to reduce the climate footprint of pork, it is difficult with beef. According to a food researcher at the University College Copenhagen, you could even consider beef being the new foie gras due to its climate impact. Previously, the debate has been about pork in relation to whether it should be served in day care institutions, and it has become a symbol of Danishness. Now it is especially beef that divides people and to some degree generations in relation to the climate agenda. Nevertheless beef still remains the key ingredient in several of Denmark’s most popular dishes.
Sustainability important for shopping habits
60% of Germans say that the thought of sustainability influences their eating and shopping habits. This is the result of a YouGov study that investigated attitudes towards environmentally friendly and sustainable food shopping as well as general shopping behaviour of consumers in nine European countries. Turkish and Italian consumers make this statement most frequently (77% each), Norwegians least frequently (31%). For half of the Germans (52%), the offer of sustainably produced products plays an important role in their choice of shopping venue. Turks and Italians also make this statement most often (72% each), Norwegians least often (29%). This is shown by data from the new study “Sustainability matters” by the international data & analytics group YouGov, for which more than 10,000 people in nine European countries were surveyed. The analysis looks at the willingness to act sustainably when buying food, certain consumption patterns, possible changes in eating habits for sustainability reasons and other aspects. When asked about their willingness to pay more for products whose packaging is particularly environmentally friendly, Italians are the most likely to agree (65%). 63% of Spaniards agree too. Norwegians and Finns are the least likely to agree (44 % each). In Germany, half of all respondents (49%) say they are willing to pay more for products whose packaging is particularly environmentally friendly. Almost three out of five Germans (57%) say they pay attention to whether food has been sustainably produced when they buy it. This group is predominantly older and female: 45% are over 55 years old (vs. 41% of the total population), 56% are female. Among those who look for sustainable production when buying food, 85% say they prefer products made in Germany (vs. 73% of the total population). 61% try to buy only products from companies that are environmentally-conscious and take responsibility for society (vs. 43% of all respondents in Germany).
America’s First Major Food Trade Show since the Pandemic – Expo East
Natural Products Expo East took place in Philadelphia between September 22-25. For the majority of attendees, this was the first in-person trade show since the onset of the COVID-19 pandemic. Expo East and Expo West are seen as the biggest in the US food and beverage industry and are extremely important to brands and buyers alike to facilitate meaningful in-person connections. Whilst numbers were down from 2019, Expo East 2021 still had approximately 1,000 exhibitors and 12,000 attendees. Green Seed owners David Wilson and Sanjay Panchal attended in person to meet the industry and monitor post-pandemic trends. David commented “It was clear that attendees were energized by the event, which gave great exposure to the brands that attended. It was a great opportunity to meet with buyers and brand owners on a quieter show floor than in previous years.” While some large established brands decided not to exhibit, many start-up brands felt they couldn’t afford not to attend. With fewer attendees and exhibitors this was a chance to have greater visibility and have more intimate one-to-one meetings that could significantly impact business. “The plant-based trend continues to impress, with high profile booths from early-stage non-dairy cheese, meat-free burger, and non-dairy liquid beverage brands” Green Seed owner Sanjay Panchal observed. The next major industry show date was recently announced for the Winter Specialty Fancy Food to be held on February 6-8 2022. The show is relocating from San Francisco to Las Vegas. We expect there to be an even stronger turnout given the success of Expo East and the relocation of Winter Fancy Food to a fun travel destination.
Food Tech Start-ups Stepping on the Accellerator in Spain
With 5 projects selected, Spain is the third leading country after the UK (9 projects) and Israel (7 projects) ranking in the recent selection for the EIT Food Acceleration Network (EIT FAN) 2021 from EIT Food (www:eitfood.eu), The European Institute for Technology & Innovation. The EIT FAN 2021 will be deployed by 60 start-ups (out of 600 candidates) in the 6 centres of Bilbao, Munich, Haifa, Cambridge, Lausanne and Helsinki. The 60 startups selected for EIT FAN 2021 offer solutions to address challenges in the food chain Systems, including: sustainable agriculture (47%), alternative proteins (17%), personalised nutrition (13%), circular processes (7%), digital traceability (7%), aquaculture (5%) and other (5%). The companies selected for Spain are: ColorSensing, Activa Proyectos Tech (‘Plantae’), Earth Rover Europe, Genbioma Aplicaciones and Oscillum. At the same time, the CNTA (Centro Nacional de Tecnología y Seguridad Alimentaria) or Spanish official Centre for Food Technology and Safety, belonging to the Ministry of Food and Agriculture, is being very active in the promotion of a more sustainable and efficient food chain. They have just launched the ‘Food (Tech)² Challengers’ Program to select 4 projects/companies with genuinely transformative ideas. Up to 42 candidates presented their projects and MOA, Ingredalia, Sonicat Systems y Rethink Foods Company were finally selected. The projects selected run from obtaining new origins of mycrobiologic protein to the usage of vegetal subproducts for fermentation processes leading to new food and ingredient types. We are keeping a close eye on these important developments and in close contact with the main players in Spain
Moves to display environmental scores on food packs could be coming very soon
Foundation Earth, a recently established non profit organisation, has united both big brands (Nestle, Danone, Tyson Foods, Pepsico) and leading retailers (Tesco, Sainsburys, Morrisons and more) behind an initiative to launch eco-score labels to applied to all food products across Europe. An eco-score is a font of pack indicator of a product’s environmental impact, involving a grading system and colour coding to show degree of impact by certain criteria. The indicator will look similar to labels already used for nutritional content, similar to both UK traffic light labels and the increasingly popular Nutriscore labelling system used more and more in European markets. The Foundation Earth system analyses a product’s life cycle weighted 49% carbon, 17% water usage, 17% water pollution and 17% biodiversity. The Eco Score system which has been trialled by Colruyt in Belgium and Lidl in a number of regions, uses French database Agribalyse for its analysis. Eco score labelling is already beginning to happen, even if there is not yet one single common tool that all brands and supermarkets are following. Sustainability has never been higher on the agenda, so it’s a good bet that all brands will soon need to select one system or another to communicate to consumers ever more demanding of clear information on the planetary impact of the products they choose to buy.
Opinion: CSR as a creative call to action that brings you closer to the brand – advanced marketing in practice
Smoothie and juice brand Innocent is inviting Italian consumers to knit wool hats that will “dress” the bottles. Sticking to just few (but good) ingredients is an approach that works as much for the world of food recipes as for that of social marketing and CSR initiatives, where involving consumers personally, and encouraging their own creativity, is always a winning strategy. The initiative is a call to action, or rather a “call to knit”, because it invites people to knit and create wool hats to dress the bottles of the product available at the refrigerated counters of some supermarkets and horeca stores. For each item sold with its hat, €0.20 will be donated to charity to the Auser Lombardia association, which with its volunteers is dedicated to comforting the elderly, offering them warmth and support. A project with implications of social inclusion which has Bettaknit as its technical partner for 2021. Consumers’ creations will be sent directly to Innocent, which has prepared a support manual for beginners, although no particular technical skills are required. This is a way to encourage creative participation, contribute to a worthy cause and thus deepen the relationship with the brand: a mix of simple but effective ingredients to satisfy the needs of today’s consumer and their growing sense of social responsibility – all via the medium of packaging. During the pandemic, a number of similar company initiatives have flourished and packaging innovations have created a certain buzz on Facebook, Instagram and beyond. An example that marries both trends is the recent case history of Mulino Bianco and Abbracci shortbread biscuits, which have been transformed into a very special limited edition. The package is a 360-degree dedication to nurses, both visually and verbally: the blue gown, the stethoscope, the claim “these hugs are for them” and the hashtag #noicongliinfermieri are all elements that pay homage to the incredible support of key health workers during the pandemic. Once again, packaging reveals its face as a true medium of brand positioning, aligned with the growing collective sensitivity on social and environmental issues. Good examples of advanced marketing. Sauro Musiani Green Seed Italy
Sonae sells 25% stake to drive growth
Sonae Group, the holding group of the leading retailer in Portugal, Sonae Modelo Continente, has sold a stake of 24.99% of the retail division to CVC Capital Partners, for near €600M. CVC Capital Partners is a leading private equity group with $115bn of assets under management. The apparent rationale for the transaction as disclosed was that Sonae would benefit from the know-how and experience of the CVC group to support Sonae MC’s growth strategy. CVC Capital Partners has currently 100 investments, 24 of them in the retail sector. One of those investments is in Zabka Polska, one of the fastest growing (convenience) retailers in Poland with a country wide network of 7,000 franchised stores. Sonae MC’s main competitor in Portugal is the Jerónimo Martins group who owns the Biedronka retail chain in Poland as well.
European Commission intends to allow minimum prices from manufacturers
The European Union has published plans to allow manufacturers to set a minimum price for their products. This is currently still forbidden. This has been published as a draft guideline called the Vertical Block Exemption Regulation. In the Netherlands, vertical price fixing has been a reality for many years. All supermarkets sold the same articles at the same price. This phenomenon ceased to exist in the 1970s. Consumer price rules are regulated on a European level in cartel law and are due for renewal next year. A draft is now ready for public consultation. The definitive rules on vertical price fixing may still change as this is still at draft stage from the European Union.
Opinion: Favouring more sustainable practices and products
While the climate crisis has been a topic high on the agenda for a while, the UN has now declared the situation as code red for humanity. The promotion of responsible consumption is essential and requires transparent agro-ecological practices and the introduction of more ethically sourced products within the food manufacturing and retail sectors. When looking at the progress made by some of the giants within the agri-food industry it is evident that ecological approaches are increasingly encouraged by the sector’s actors. For example, Nestlé has partnered with the Earthworm Foundation to train 250 of its farmers in regenerative agriculture and is committed to agroforestry programs across several brands with the aim of reducing its greenhouse gas emissions by 50% to achieve net zero emissions by 2050. Unilever has made a similar promise and plans to achieve zero emissions on all its products by 2023. Other brands such as Lavazza are committed to achieving carbon neutrality by 2030 and the chocolatier Cémoi has put in place a “transparency plan” which helps train producers in more sustainable practices that provide higher yields while avoiding deforestation. Manufacturers are also listening to consumers’ demands and expectations and are switching to products with less packaging or recyclable packaging. Confectionary brands such as Mars and M&M’s have partnered with companies to develop biodegradables packaging made from natural ingredients. Companies are investing millions into these projects with ambitious targets which shows an industry-wide push towards saving the planet and creating new sustainable practices. But will these goals truly be achieved? All this can only work if everyone in the value chain is willing to make an effort: retailers to accept the inevitable cost implications, and consumers to understand the reasons behind price increases and investments made by producers. Only a collective effort can lead to a successful outcome.
New German Food Trends that are here to stay
FTI-Andersch is a consultancy focussed on corporate restructuring. One of its partners recently wrote an article which appeared in the Lebensmittelzeitung on what he considers to be the 5 most important recent food trends. The first 3 trends (snackification, ghost locations and immediate delivery) were all accelerated by both the recent lockdowns and fast reaction by more enterprising elements of the foodservice industry. Snackification – Many people spent the lockdown in home-office. The traditional classical split of breakfast/lunch/dinner has merged into smaller portions of snackfood, to be consumed whenever time was available. Food experts see this as healthier than eating at 3 larger eating events. Snackfood is moving rapidly from an unhealthy to a more healthy basis (smaller portions, higher quality) indeed similar to Spanish tapas or Asian food. Like home-office, this trend is here to stay and is a big opportunity for food retail and foodservice. Ghost kitchens – Some restaurant owners managed within a few weeks to reinvent their business and convert to high-quality home delivery or pick-up, competing with already established pizza or döner delivery services. Consumers quickly took on the concept of eating Michelin-star dishes in their own home environment and without having to cook themselves. From Organic to Organic & Regional – Traval over the last 18 months has been either difficult or impossible. This has led many people to look in more detail at their local environment, local food stores and farmers‘ markets. Similarly, more and more restaurants name the source of their raw materials, eg their meat and vegetables during the asparagus season. One-stop shopping – The demise of Germany’s department stores did not come about overnight. Purchasing behavior has been evolving over the years, moving into boutiques, specialist outlets etc. Some operators understood these trends and opened shop-in-shop concepts, ran special brand promotions or even opened a fine-dining outlet within their premises. During lockdown, people developed a need for one-stop shopping. In the longterm we will continue to see food retailers that just copy discounters. But also those that develop speciality sections with unique product ranges, promote regional produce, have experienced personnel such as EDEKA Zurheide in Düsseldorf. Immediate Delivery – Home delivery of groceries before lockdown was a more or less underdeveloped business which post lockdown could not cope with the unexpected demand. Nowadays, deliveries normally work within 2 or 3 days of ordering. However, may people are not prepared to plan so far ahead and want to live a more spontaneous life. Recent start-ups like the Oetker-owned Flaschenpost or Gorillas promote delivery within hours, not days. Such companies are still at an early stage, but judging by their success in Asian markets, they too are a reality and here to stay. And food retailers who do not react could potentially be about to lose a business sector to third-parties.
Convenience is still king
Sales of groceries to Danes have marked record high growth over the first 5 months of 2021. The otherwise apparently unstoppable discount sector is losing actual market share for the first time in years. There is still significant growth in discount, as the market in general has grown significantly. Based on market shares, however, we have seen a clear trend this year, where all supermarkets, from the smallest grocery store to the largest department stores, are gaining ground in relation to discounters. The 2 largest Danish retail groups believe that this trend is temporary and that consumers will revert to normal routines. When everything reopens and stabilizes, they expect a normalization of the market, and that consumers will also prefer shopping at discounters again as they will have less time. Another interesting question is whether online retailers can retain the many new customers they have attracted in the past year. According to the leading online retailers across the Nordic region, once customers shop for groceries online, they appreciate the convenience and are likely to continue using the service. What could drive consumers to go back to classic retail from online and go back to discounters from supermarket? Probably price and convenience. But which one will be decisive in the end? Time is money considerations may win out. We do not have any past experience – at least not in the Nordics for this. Using South Korea as an example, in 2014-15, it was hit by the MERS pandemic, which was more severe locally at that time compared with COVID-19 in the Nordics now. Then online sales of groceries had an extreme upswing in 2015 and continued to increase in the following years. It became a snowball effect and not just a temporary increase that later declined. Instead, it continued to grow. It is critical for retailers understand the nature of the online shop and how shopper needs change over time. And It is critical for online grocery to adjust their structures and develop their buying power to meet changing consumer demands. For the classic retailers their existing structure is under threat. Online retailers need to develop a new structure with robotics and efficiency that can meet changing consumer demands. Several other factors will also be important for the development. Sustainability and Climate. Is it more efficient to deliver from one place to 100 households or is more sustainable to have 100 households to go to a shop? Is it better for the climate to have 1000 shops filled with products or is it more efficient to have one fully automated warehouse and deliver to 500,000 households? All these questions will become relevant. At the end of the day consumers will no doubt change behaviour, they have done so through history and “self-collection shopping” started in the 1960’s and is now being challenged for real. I believe the online retailers who are not bound into existing structures have an advantage. I believe we will see a similar development in grocery retail as we have seen in clothing and non-food and the future winners are not necessarily today’s leaders. Consumers’ perception of convenience will decide the winner.
Tesco and Carrefour Buying Alliance is Over
The UK’s biggest retailer and Europe’s biggest retailer have called time on a buying alliance they first announced in 2018. At the time Tesco’s then CEO David Lewis hailed the ‘collective product expertise and sourcing capability’ the alliance with Carrefour would bring, and said this would ‘improve choice, quality and value’ for consumers. The deal looked strategically attractive 3 years ago. The rise of discounters Aldi and Lidl were putting increased pressure on the attractiveness of own label ranges and an alliance was seen as a way to pool expertise and buying power, to be able to offer better deals to shoppers and make the supermarkets look more attractive vs their price-based rivals. But it seems clear that the benefits of the alliance over the last period of time have not been compelling enough in practice to justify extending the arrangement. And, of course, the environment has changed too. The pandemic has shifted the focus onto other priorities, not least online, Tesco has a new CEO and Carrefour have themselves been embroiled in a potential takeover by Canadian group Couche-Tard. The UK has also left the EU (a decision known at the time of the alliance), although Tesco deny that Brexit is the reason for the decision taken. It still remains the case that Tesco and Carrefour are very complementary businesses in terms of categories and geographies – and some commentators would argue that the merits of a merger perhaps might one day not be unthinkable. But for now each retailer will focus on its own business.
Mere, an uncompromising Russian low-end retailer will launch in Belgium
The Belgian expansion of the Russian price fighter retailer Mere is about to take place. The first three locations are now known and the timing is also fixed: in September, the discounter will open in Opwijk. Mere is a Russian low-end retailer that sells a limited number of food lines and essential products at absolute rock-bottom prices, often from leftover batches. The chain claims to be up to 20% cheaper than Aldi. Mere wants to open ten shops in Belgium before the end of the year. At the same time, the chain also plans a considerable expansion in other Western European countries: the chain has been active in Germany for two years now and recently opened its first Spanish shops. In addition, France, the United Kingdom, Italy and Austria, among others, are said to be on the agenda. The ambitions of the Russian chain seem surprising, but perhaps the timing is no coincidence. In recent years, discount chains Aldi and Lidl have moved into the mid-market segment. Meanwhile, it is becoming clear that a recession is looming after the corona crisis and, at the same time, food prices are rising. The combination of these elements may provide an ideal breeding ground for an uncompromising price fighter.
Food and Drink Sales performance 2022- drinks the star performer
Italians, confined to their homes due to Covid, have found comfort in food but also in drinks. Mostly alcoholic. This was recently revealed by Nielsen’s analysis of the evolution of the shopping cart (online and offline) recorded between January and March of this year, which shows that beverages are the best performer across the board grossing 315 million euros more than in 2020, posting growth of 13.6% for the quarter. Not only was the increase in expenditure of beverages about four times greater than that of consumer goods in general (+ 3.5%, equal to 5 billion euros), but this was spread over various categories of products. In fact, seven of the top 15 categories with the greatest growth in sales were of beverages – six of them involving alcoholic products. Beers took first place in the rankings in 2021 with 70 million euros of additional sales made between January and March. In second place were the Italian Doc and Docg wines, increasing sales value by 60 million euros, and in fifth place are the dry Charmat sparkling wines (38 million euros). The only soft drinks in the top 15 categories were colas, which increased sales by € 16 million in the same period. The space that beverages are conquering in household spending budgets is also confirmed by their absence among the top down categories, i.e. those that have been most affected by the new spending trends. Another sector to grow was fish-based second courses which grew by almost 50 million euros and fish specialities such as sushi which grew 35 million euros. Furthermore natural frozen fish products grossed 21 million euros more than the previous year while the fishmonger sector grew by a third in sales. Overall Italians increased their budget for the purchase of fish, molluscs and crustaceans by 120 million euros. Apart from increases in sales of vitamins and supplements, other categories also returned large increases year on year such as cold cuts (with over 35 million euros sales increase), ground coffee (+ €20 million) and sweet snacks (+ €16 million).
Opinion: Taking a closer look at what nature has to offer – time for seaweed to take its place in the sun
Sometimes we just don’t see what we have all around us. Despite the increasing preoccupation, over the last decade or more, with nutrition, natural food and how various ingredients in combination with others affect our bodies, it seems we have occasionally overlooked some of the best of what nature can offer us. Having been a basic food in Asia for centuries, it is only recently that seaweed is beginning to be considered in Europe as a potentially fundamental part of the diet. The nutritional interest of seaweed derives from the scientific evidence of its added value for protein generation, texture and organoleptic improvement, and as a good natural food preservation method. The additional benefits seaweed brings in terms of added minerals such as zinc, potassium, iron and iodine and vitamins – especially B12 which nicely supplements a vegan diet – make them highly attractive for their incorporation into Europeans’ basic diet. Moreover they offer further beneficial properties as antioxidants, as anti-inflammatory agents and in improving cholesterol levels. Algae in general are increasingly being used in the food industry not only as a direct ingredient in a side dish or a salad, but also as an alternative to artificial additives and processed food. For example, we now find ice cream makers and beverage producers using them as an added value ingredient. Seaweed farming – which as of 2014 accounted for circa 30% of all aquaculture production and was predominantly seen in AsiaPacific countries – is starting to be developed in some European countries as part of general aquaculture programmes, using both intensive methods, but also in an artisanal way through marine orchards in estuary waters. Seaweed is just one of nature’s bountiful ingredients that we haven’t made the most of till now. Doubtless you will have views on others too.
Opinion: A major task
Our food and our eating habits have come more and more under scrutiny. How we eat and what we consume has a direct impact on the climate and influences earth health. Red meat and sugar are often the focus of criticism in sustainability campaigns. Studies show that our planet can benefit from a change in our diets. Vegan, vegetarian and flexitarian diets would significantly reduce CO2 emissions – we would thus be able to protect biological resources, the climate and ensure sustainable and varied use of farmland: we need to change the way we eat. In order to succeed in accomplishing this mammoth task, food and drink companies need to work harder than ever before to develop sustainable products and concepts that will help consumers to make the right choice. Although plant-based is gaining momentum, it is just not realistic to assume that everyone will adopt a vegan lifestyle or a flexitarian diet in time to help save the planet. For companies operating solely in the plant-based field, being sustainable is easier per se, and others have added vegan SKUs or even whole product ranges to their portfolios. But other food and drink companies can make the sustainability proposition fit too, e.g. by using environmentally friendly packaging and taking on (more) social responsibility – just to point out two of of the many areas where changes can be made. Recent developments in the food and drink industry and in the trade alike give hope that sustainability efforts are on the right track. But will they be in time to protect the world’s resources? The implementation of plastic reduction strategies for packaging was a milestone. In an effort to develop packaging material from renewable, recyclable raw material, many food and drink companies have been working relentlessly to create innovations, introducing paper-based packaging for chocolate or even spirit bottles. They are also trying to reduce packaging, e.g. by giving up additional lids (e.g. pots and drinks), changing to flowpacks (less material, recyclable), making bags smaller in size, or reducing material strength. Or in another positive development, we are seeing more and more product concepts that create awareness for sustainability and allow consumers to contribute and support those in need – sourcing cocoa responsibly or providing a meal with the purchase of a snack. Admittedly, while sustainability is high on consumers’ agendas, there is a gap between preference and willingness to pay, which will most likely remain, at least in part. However, no matter which product category a food and drink company plays in, or which markets they target, sustainability should be part of their strategy, never ceasing to educate consumers, driving this topic home and contributing their part to a healthier planet for future generations to enjoy. Nicole Günther Managing Director Green Seed Germany
Food To Go Market Poised for Comeback
The UK food to go market took a big hit in 2020, with sales plummeting 45.5% over the year, from £21.2bn in 2019 to £11.6bn, according to a recent report from Lumina Intelligence. But there are signs that the market could rebound in the coming months as suppliers and operators plan new ways to cater for consumers In a different working and leisure environment. Lumina forecast that 72% of sales levels seen in 2019 will be recovered over 2021 and report that 34% of consumers plan to work from home over the next 12 months, while some 38% are dissatisfied by their own efforts to make lunch! One third of them have sought out food to go options during the working day while away from the office. Coffee shops, retailers and sandwich outlets have responded already with more heat at home options. And as days at the office become less of a daily routine for many, this could be a great opportunity for food to go operators to premiumise ranges as office workers look for something a little more special on the rarer occasions they work in the city or town centre. Making more of outside space will also be a priority – not just because the weather is (or should be) improving steadily now, but also because outside hospitality is finally open in the UK. Outdoor spaces for picnicking can also offer consumers opportunities to enjoy food and drink they purchase on the go. All of which could mean that once the pandemic is firmly behind us, the food to go channel could resume a very healthy position in the overall market, inspired by new learnings in response to adversity.
National Food Strategy puts health and climate change action centre stage
Henry Dimbleby is one of the founders of the Leon restaurant chain, a healthy fast food business which has grown to over 70 outlets in the UK and Europe. This week the Issa brothers, who are also acquiring supermarket chain Asda, announced they would be purchasing Leon for ca £100m. Dimbleby is also responsible for developing the government’s National Food Strategy and is proposing a radical overhaul of the food and drink system, with plans to tackle obesity and an attack on ultra-processed food and intensive farming. What could this mean for suppliers? The first plan already in place is to ban promotions and advertising for products high in fat, salt or sugar, which is due to come into force in April 2022. This is leading many snack manufacturers to consider the formulation of their products. Some also fear that an extension to the levy on soft drinks high in sugar already in place could be extended to other products. Action re climate change and meat production in particular, is also on the agenda, as he has publicly commented on excessive consumption of animal products. He will make recommendations in his full report due to be published in July 2021, and it will then be up to the government to take decisions. But it’s clear that many parts of the supply chain are already taking action. Tesco, for example, has announced that it plans for 65% of its sales to come from healthy products by 2025 and has set a target to increase sales of plant-based meat alternatives by 300% by 2025, as it steps up its work to halve the environmental impact of food production.
Opinion: Brexit and Global Britain
Brexit is no longer a debate about philosophical or practical pros and cons. The UK has left the EU, surrendering the benefits of club membership for freedom to strike out alone. It is now keen to draw exporters’ attention to opportunities elsewhere, while enticing the US, Australia and others to come to the table to discuss new free trade arrangements. This is to be a new era of ‘Global Britain’, to use Boris Johnson’s expression. What could this mean for UK food exports on the one hand, and those targeting the UK market on the other? The short term impact on trade has been dramatic. Data released by the Food and Drink Federation show that food and drink exports to EU markets in January 2021 slumped by 65%. UK imports were also down, but much less starkly. While some of the drop in exports could be accounted for by both stockpiling ahead of the Brexit deadline and the impact of Covid movement restrictions, it’s notable that UK exports to non-EU markets did not show anything like a similar rate of decline. The reality is that – despite the euphoria at the announcement of an EU/UK Free Trade Deal on Christmas Eve last year – it’s actually the non-tariff barriers in place 8 days later that have done most to snarl up the movement of goods. SMEs have particularly suffered as many logistics providers halted the groupage arrangements on which so many rely to get their smaller loads onto the Continent. Many food products now need to get their goods signed off by a vet to obtain an Export Health Certificate, including many composite foods containing meat or dairy. While on the import side, new UK requirements on EU producers due to come in this month have been postponed, so the full effect of new challenges here is yet to be felt. It’s clear that the consequences of leaving a trading bloc are going to cause additional friction for all parties. But it’s also probably the case that things may get a little easier in time. Exporters (and customs officials) will get better at handling the bureaucracy. And the EU and UK may find ‘clarifications’ which smooth out some of the worst troublespots. Looking beyond the EU, what does ‘Global Britain’ really mean? To some there are echoes of colonial Britain of yesteryear. To others it implies taking a bigger role on the geopolitical stage, as much as a change in trading focus. In some ways the term seems an accurate descriptor of UK food tastes and orientation. UK consumers are cosmopolitan and eager for new experiences. Early adopters of ethnic cuisine many decades ago, Brits not only seek out new, challenging and exciting flavours when they eat out (or, nowadays, get food in!), they also expect to find them on supermarket shelves. A skilled food manufacturing sector adapts recipes for UK tastes, and exports them very successfully too. The UK has always been and will remain open to both authentic specialities and new product concepts from other markets – whether from the EU or elsewhere. Seeking out innovation (brand, product formulation, convenience, sustainability) is in our DNA. As for exports, the EU still dominates, accounting for 61% of total UK food and drink exports. Strip out commodities and it’s a full two-thirds of the total. On the other hand China is the fastest growing destination. But to put that in some perspective, exports to China are not quite half those to The Netherlands. There is some way to go. The UK government is bent on demonstrating the benefits of Brexit by striking free trade deals with major markets, to prove it has the clout to achieve ‘better’ or quicker results on its own, than it could by being part of a trading bloc. Not an easy task. Plenty of bumps in the road and awkward compromises to come. If Global Britain means anything from a food and drink perspective, then it’s not about favouring the rest of the world over the EU – or indeed proving it can punch above its weight on the world stage. It’s much more about finding markets, both near and far, for UK food innovation, and a genuine openness to source the best the world has to offer for its curious and demanding consumers. Simon Waring Managing Director, Green Seed UK swaring@greenseedgroup.co.uk
Opinion: Europe First?
Market isolation or any form of economic nationalism has never been successful. Great civilisations grew on the basis of strong communication, logistics and world trade. Brexit is once again proving that folding back on your own does not automatically mean everything runs better. It takes two to do international business. Supply and demand need to find each other. The fewer the barriers, the smoother the process. This is especially relevant in the world of food and drink where the just-in-time principle is crucial. Above all in fresh products, administrative and logistical bottlenecks are to be avoided. It’s often the case that people only realize what the value of a strong relationship is once it is broken. What was taken for granted has now left a big hole. Growing exports to the other side of the world is tempting. For European companies it sounds exotic and prestigious when you supply markets like Brazil, China or the United Arab Emirates. But does it sufficiently supply growth and profit? Is your brand being noticed, can you achieve a decent market share? Often the business is limited to simply being present and shifting boxes. International development is a process. A step by step approach delivers the best results. The phase in which your international business sits should define the next export market. Too often companies opt for quantity of markets instead of quality of sales. Sustainability is high on the agenda. The Covid pandemic and the climate debate are the new catalysts in this. The golden era of globalisation is clearly over. Local has become the new normal. The consumer reflex towards local buying is less of a patriotic motivation, more the result of a growing consciousness of a shorter supply chain. Do we need to source chicken from Brazil or mineral water from Japan? How far does food need to travel? Taking this all into account, now is the right moment to explore export opportunities nearer to home. Identify a large economic region with limited administration and barriers. It happens to exist already. Food and drink companies should make maximum use of what the European Market was initially created for. The mission should be to find clients within Europe, to get closer to the European consumer and to develop your brand carefully. Simply spoken, to take a more focused approach. The EU is one large economic environment with a level playing field, albeit a patchwork of eating cultures and markets. What has happened in 2020, what we have learnt from Brexit and Covid 19, should be a kick-start for the EU. European food and drink companies should explore opportunities far more in markets on their doorstep. And yes, British companies should still be part of this journey, as should the UK market. Great Britain remains one of the most interesting export markets for European producers. The UK food and drink industry is known for its innovation and highly skilled manufacturers. Everything should be done to make sure that European consumers can still enjoy British products and that the UK keeps on sourcing from mainland Europe. Once those first steps have been taken and export foundations built, then perhaps the reach can be extended and continents further away can be in your sights. Europe the new local? Philip Horemans Chairman Green Seed Group
I want it, and I want it now! A new spin on online delivery
Do you remember the day, seemingly such a long time ago, when an online delivery service called Amazon announced that you could order and guarantee a next day delivery (+ movies thrown in too)? And how impressive that seemed? Well now Prime seems perhaps a little sluggish and, if you live in the right location, you can now almost see the delivery driver approaching your house when you click ‘Submit order’, as a raft of companies are now emerging offering food deliveries in a 10 minute delivery timeslot to demanding shoppers. Germany start-up delivery operator Gorillas has launched in London and promises your groceries in 10 minutes. It claims to be ‘faster than you’ and that it is going to redefine convenience retail. Another named Dija has been set up by ex Deliveroo employees and claims it will be able to reach 3 million consumers by the summer. A new entrant from Turkey, Getir conveniently sounds like ‘Get here’ although according to The Grocer it is in fact the Turkish word for ‘bring’. The interesting twist in model they bring is the fact that they run their own mini food hubs (rather than supplying direct from stores like Deliveroo and Uber Eats), and buy from wholesalers or even direct from suppliers to preserve margins. They recognise that time is everything and for Dija an 11 minute delivery is not good enough and will give the shopper 3 months’ worth of free future deliveries . According to Kantar, online grocery market share reached 15.4% in the 4 weeks to end February 2021. Those who shop online complete 65% of their total grocery spend online.
Organic Food Sales notch their highest level of growth
Organic foods have achieved their highest level of growth in the UK for 15 years in 2020. After 10 consecutive years of growth, sales surged last year as demand from shoppers in lockdown drove an increase of +12.6% and total sales of £2.7 billion, according to the official body, Soil Association Certification in their Organic Market Report 2021. Organic sales outgrew total food (+8%) over the year. Online was a major factor, where sales grew +36%. Some 18% of all organic food sales made by supermarkets are made online rather than in store. The best performing categories in organic over the year were canned and packaged foods (+19.8%), meat, fish and poultry (+16.8%) and fresh produce (+15.5%). Concerns over health, animal welfare and product sustainability have deepened since the advent of the pandemic, and these attitudes seem likely to continue to favour opportunities for organic suppliers, who are now able to reach out to more customers – via online channels in particular – than ever before.
Opinion: Is there light at the end of the tunnel?
As we are now coming close to Spring 2021 it is fair to say that in many countries the fight against COVID is in full swing. The general opinion in many countries is that when the vaccination programme is fully up and running it is a matter of months rather than longer until we reach minimum required levels of group immunity so restrictions can start to be loosened. Which means a step back into a normal life. This expectation is fuelled by the fact that fortunately more and more pharmaceutical companies are seeing their vaccines gain approval and production is being scaled up and distribution simplified. This therefore seems the right time to reflect and fully prepare for the period after Covid. Where did you want to go with your business longer term before and how has this been influenced by COVID in the last year? What are the lasting changes / influences that COVID will have longer term on the category in which you operate and what impacs on fundamental consumer behaviour are here to stay? It is obvious that Covid in different ways will have a permanent impact mid- and long term but history also shows that people do have a short memory and often fall back quickly in line with former behaviour. The trick is to find the answers related to (former) longer term developments and mid- and long-term permanent changes due to Covid. A good example is the impulse driven snack bar category which has suffered immensely due to COVID across international markets. Retailers and their suppliers world-wide are still facing declines today but does this mean that retailers in future will, or should reduce available shelf space? Or that suppliers should refocus on other categories or should cut back on NPD efforts? The answer is most probably ‘no’ as relatively soon “after” Covid, the retailers and suppliers that are best equipped to deal with the needs of the “post-COVID” consumer will be the category winners of the next few years. From that perspective I sincerely hope that sooner rather than later we all can say… Yes, there is light at the end of the tunnel. Good luck to you all!! Pim Haasdijk Managing Director Green Seed The Netherlands
Opinion: Some trends are new, some are familiar. Which are here to stay?
However much we might like to, it is still not possible to ignore Covid and the impact it will have in our perceptions, choices, behaviours and constraints. Creating new trends, reviving old ones, reinforcing others: 1. Shopping Lists are back The times when people were lured into the shop by eye-catching demonstrations and appealing offers to trigger impulse buying are gone. Consumers have been willing to reduce their shopping trips, and moved to different shopping environments, such as on-line or convenience. But also their income has been reduced and they have gone back to basics, armed with shopping lists focusing on fundamentals. That also explains the growth of discounters, shelf assortment rationalization strengthening leading brands and retailer private labels. 2. Less global, more local Travel bans affected the migration of workers to harvest fresh produce crops, while transport and logistics has become harder to manage with more border controls and restrictions reinforced by Brexit. Environmental concerns due to carbon footprint will penalize goods that travel long distances. And above all the economic considerations to support local / national producers instead of foreigners. All those factors are impacting on global trade in favour of national / local supply chains. Fresh produce and Meat / Dairy are the most influenced by this trend and these products are being flagged by all retailers with a message to support domestic suppliers and therefore the national economy. 3. More and more sustainable The EU’s engagement with the “Green Deal” towards a carbon neutral society gained renewed strength with the recent political changes in the USA. Retailers’ willingness to show they are ahead of the game is fuelling the process: sustainable energy sources, ISO 14001 environment rules on shops, bans on non-recycable plastic, promoting a circular economy by fighting food waste. And on their own private labgel products from FSC labels on packaging to MSC requirements on aquaculture. 4. Health, more than ever in general people are now much more concerned about their food consumption habits and strive for a balanced diet. Covid raised health concerns more than ever and in particular trends such as self-immunization have fuelled the consumption of high vitamin C foodstuffs, while hunting out “negative” ingredients such as preservatives, colourings or sweeteners has never been so high. The health issues’ impacts on retailers are very wide. It is not only the shopping environment that needs to be clean and safe, it is the whole supply chain tracking and compliance that deserves the utmost attention. Again, the implications for own label are higher than ever: from the traceability of the key ingredients, to forbidding trans or palm oils or even with the obsession of salt levels. In the end, this is good news for consumers: they will be buying sustainable, safer, healthier and more local products. But, if they are impoverished…can they afford to pay the price? And if not, who is going to pay? Luis Garcia Managing Director Green Seed Portugal
Opinion: Grocery in the year of Covid: the 6 key trends that we will bring into 2021
2020 has just ended and it’s time to analyze the consequences of the Covid 19 pandemic in primary consumer goods sold in retail. While the focus here is on Italy, many similar lessons have played out across European markets. The year produced a historic result for sales, but it has also unhinged pre-existing structures and balances, accelerating current trends in purchasing behaviour. The pandemic has affected the sector in a number of ways: 1. The size and composition of consumer baskets 2. Purchase channels 3. Price management 4. Competitive structures 5. The offer on the shelves 6. The renewal of the offer 1. Changes in the size and composition of consumer baskets 2020 saw two periods of strong sales acceleration. The first occurred at the beginning of the health emergency, with the surge in demand aimed at increasing stocks of essential products and to cater for the need to consume meals at home to replace restaurant consumption. Following the ease of restrictions, during the so-called «phase 2», sales increases slowed down, a trend which continued throughout the summer. The second period of strong (but less dramatic) sales acceleration took place from the beginning of October, with the emergence of the second wave of the epidemic. 2. Changing purchasing channels chosen by consumers Strict restrictions during the first lockdown had marked a significant shift to neighbourhood stores, especially the superettes and small supermarkets. Following the relaxation of restrictions there was a marked acceleration of the discount sector, especially in the second half of 2020, coinciding with the worsening economic hardship felt by families. This trend was amplified over the course of the year. 3. Ups and downs in price management The increase in average prices in the first wave of the pandemic was driven almost totally by the lack of promotions. Price levels reduced once availability was restored, and became more competitive still as the discounters grew in importance over the year. 4. Competitive structures are changing Another strong trend theme in 2020 was the development of private label. Own label products gained share compared to 2019, a trend which has continued, while their increased strength also undoubtedly had an impact on the price positioning of brands who sought greater distinctiveness on shelf. 5. Rationalized shelf offer Range assortments have also reduced, affecting both own label and brand owner strategies as they fight for space on shelf. 6. Lack of innovation The number of new launches decreased significantly in 2020 as limited shelf space makes it increasingly difficult to introduce innovation. But those who did manage to launch new products performed significantly higher than the previous year. Key future issues to be faced by all those operating in the world of Grocery will be: 1. Weak deflation in a context of growing economic difficulty for consumers 2. The success of the discount channel 3. The strategies of retailers weaponising their private label capability 4. A return of the promotional activity seeking to redefine its role within the overall marketing mix 5. Range rationalisations in modern distribution 6. The need to relaunch innovation 7. The great opportunity represented by online shopping Sauro Musiani, MD Green Seed Italy
Veganism On the Rise During Coronavirus Pandemic in the UK
Research has discovered that the ongoing Covid-19 health crisis the world is suffering from could be increasing the number of people converting to a vegan lifestyle. According to Mintel, a record number of Brits have been showing greater interest in the dietary choice. In the report, 12% of Brits polled said a vegan diet was more attractive following the pandemic. With 22% of Londoners and 25% of British Millennials responding similarly. How Many Brits Are Trying Vegan-Friendly Options Since the Pandemic? The predictions that Mintel have made are substantiated by similar data reported by Flora, who have noted that the number of Brits who changed how and what they ate because of Covid-19 could be in the millions. In a poll by the brand of 2,000 British adults, 17% stated they were now eating less animal protein and meat, while 30% stated they had added more fruit and veg to their diet, and a further 12% said they had been opting for more plant-based food choices. Breaking the numbers right down to the 1 in 8 who said they were eating more plant-based foods, half said that they were now buying dairy-free milk, while 35% bought margarine instead of butter and 54% chose alternatives to meat. The interesting part was when they were asked their reasons for making the changes. 37% were looking to have a more sustainable lifestyle, 27% wanted to save money, whereas more than HALF wanted to improve their health Brits Consuming Less Animal Protein and Meat Since Coronavirus The Vegan Society has noted that Brits have been changing what they eat and cutting down on the amount of meat they have been consuming throughout the outbreak. A survey found that 1 in 5, that’s over 13 million made dramatic changes. It wasn’t just meat that the respondents cut down on, with 15% stating they had greatly decreased the number of eggs and dairy they intake during lockdown. The Society suggested that this was evidence that buying habits were being changed for the better based on the pressures both supermarkets and consumers were facing. What’s the Motivation For Going Eating Less Meat During Coronavirus? What is motivating the above changes? 41% suggested they reduced the amount of dairy or meat because they were unable to get the product they preferred at the supermarket. However, 43% did say that their reason for reducing meat consumption was due to either animal rights, their concerns for the environment or their health and wellbeing. Around 50% of the people who chose to spend on meat alternatives like vegan sausages and burgers, noted they would keep buying them once lockdown had ended. With regards to dairy alternatives, 42% and 54% who chose almond or soy milk respectively, noted that they would likely switch to these options even after lockdown. Why People Are Going Vegan – An Ongoing Trend of Compassion? It is thought that because of the outbreak people are genuinely interested in changing the world and are keen to show some degree of compassion where they can. When they are at a loss of what they can do to make any impactful changes on the world around them, eliminating animal meat, protein and other by-products may appear to be a great way of improving their nutrient intake while showing compassion for the natural world and fighting the other ongoing issue of climate change. Mintel noted an increase in the interest of veganism even before Coronavirus across all markets. However, there may be evidence that pandemic increased the trend. Take China for instance, where there was a definite increase in the sales of Pizza Hut and KFC’s vegan-friendly menu. Vegans Unsurprised The Vegan Society, represented by Matt Turner, does not find it very surprising at all, thanks to how popular Veguanuary was this year and the multitude of new vegan-friendly products available over the last few months. It may be that it is due to concern for animal welfare and rights, the environment and climate change, cost or convenience. Either way, Brits, and the world seem to be thinking outside their normal box and choosing alternatives. What’s more, because they are finding them agreeable and enjoying them, they are continuing to buy them even beyond what could be loosely referred to as a “novelty period”. Keep an eye out after the pandemic to see whether this trend continues. If you have a vegan food product you want to introduce to new markets, either local or international, our food marketing agency can help. Contact Us today to see how we can bring your food or beverage product to more customers
French Agriculture Minister Tweets France Will Not Support Cell-Based Meat Despite Rising Consumer Acceptance
French agricultural minister Julien Denormandie has made a controversial comment suggesting that France will not agree to the commercialisation of cultivated meat. There has been rising consumer acceptance driven by greater awareness of the health, sustainability, and food security advantages of cell-based proteins. Alternative protein experts have criticised the minister’s remarks, emphasising the need to transform the protein supply chain and shift away from traditional animal agriculture to tackle the climate crisis and threats of future zoonotic pandemics. In a tweet published on December 3, Denormandie responded to the authorisation for cell-based food products by the Singapore government, suggesting that France would not be open to cultivated proteins. “Is this what we want for our children, as a society? Me, no! I will clearly state it: meat comes from the living, not laboratories,” wrote Denormandie. “You can rely on me, in France, meat will remain natural and never artificial!” The comment followed the breaking announcement from San Francisco-based food tech Eat Just that it has received regulatory approval from Singapore to begin selling its cultured chicken, in what is the world’s first-ever commercial cell-based meat product. The minister’s tweet has already attracted criticism from alternative protein experts, many of whom have pointed out the many advantages that cultivated proteins will bring. These innovations will revolutionise the broken meat supply chain, which is contributing an estimated 18% of global greenhouse gas emissions each year and driving unsustainable practices such as deforestation. E.U. Green Deal supporters have also emphasised the need for novel ways to produce protein to reduce our carbon footprint. Responding to Denormandie on Twitter, Agriculture Cellulaire France, a French association whose mission is to inform and educate the public about cellular agriculture, wrote: “It would be a shame to reject an innovative production method that would allow France to be competitive in the fast-growing field of alternative proteins. Instead, we are promoting the development of a French sector that guarantees quality!” Matthew Vincent, founder of DigitalFoodLab and a food tech expert in France, said that the minister’s outright rejection of cell-based meat was “quite upsetting as it ideologically dismisses the technology without looking at its potential benefits. This kind of easy political reaction [that] look[s] after the votes of farmers…is also dismissive of all the efforts of French and European entrepreneurs working on cellular agriculture”. Many have further highlighted evidence that French consumers are no longer as dismissive of cell-based proteins as they have traditionally been. Cultivated meat has increased support in the wake of the coronavirus, which has highlighted the safety and health advantages of alternative meats. In September, research into cell-based meat acceptance revealed nearly half (44%) of French consumers were willing to try cultured meat. Source : https://www.greenqueen.com.hk/julien-denormandie-france-minister-tweet-cellular-agriculture-not-for-french-people/
For the 25th Year, Carrefour is Hosting the Largest Ever Staged Food Banks for the Nationwide Donation Campaign –During This Health Crisis
This year, more than ever, the Food Banks need help and donations to tackle the economic and social crisis that the COVID-19 pandemic has created. Carrefour has been one of the campaign’s major partners since 1995 and is one of the biggest private donors to the Food Banks. They are getting involved once again for the 36th edition, calling upon its employees, highlighting essential products and collecting donations in more than 1500 stores. In 2019, The Nationwide Donation campaign was held in November and helped distribute the equivalent of several million meals to the poorest people (2000 tonnes of donations or some 4 million meals). With the pandemic, demand for food aid has exploded by between 20 and 25%, depending on the region. The result is that the Food Banks network has suffered a 23% fall in its stocks. This donation campaign is therefore essential for mitigating this situation. For this year’s edition, Carrefour will be hosting the donation campaign throughout France with the help of consumer awareness-raising volunteers grouped together in smaller teams. They will be following strict protocols to protect both themselves and the donors. Carrefour is donating €300,000 to the campaign. Source : https://www.carrefour.com/en/actuality/25th-year-carrefour-hosting-food-banks-nationwide-donation-campaign-largest-ever-staged
Product ranges back to usual levels at UK supermarkets – but a change in the mix
At the start of the pandemic there was a lot of concern in the industry about the number of brands delisted as a consequence of supermarkets focusing on optimising supply chain efficiencies and striving to keep essentials on the shelf. By June the total sku count had fallen by 9% across the multiples and many feared these ‘temporary delistings’ might just be a permanent culling. But according to Assosia research there are now just 2,223 fewer product lines listed – a fall of only 1%. Tesco’s sku count is flat and both Ocado (+1%) and Morrisons (+2%) have actually increased their ranges. Asda is the one retailer with significantly lower sku count (-11%) compared with the pre pandemic period. There has also been a big change in the mix of products. Fresh food ranges are down across most retailers (only Ocado have increased ranges here), while frozen food lines have increased – plant based lines among many growing areas. Supermarkets have coped well with supply chain challenges and there are no real issues of availability during England’s second lockdown currently in place. And they are all aware that range and choice are important if they are to differentiate themselves effectively from the discounters.
M&S launches Innovation Hub
Premium food retailer Marks & Spencer is to launch an Innovation Hub in January 2021, marking a further move in its transformation strategy which saw the successful introduction of its online retail partnership with Ocado in September 2020. M&S built its reputation on bringing innovation into UK retail, especially in areas like chilled convenience, and in developing meals and accompaniments for specific meal occasions, since emulated by other retailers. Its partnership with Ocado may help to give it an additional boost in competing against arch rival in the premium quality food arena Waitrose, as it restructures internal teams to focus on developing points of difference. The new team will focus on innovation in areas like reducing plastic packaging and making use of alternative proteins, ‘The Innovation Hub will enable us to track emerging trends and insights, so we’re one step ahead in responding to our customers’ needs in the future’ says Stuart Machin, MD of M&S Food. In the 6 months to September 2020 M&S food division increased sales despite a heavy reliance on food to go and many travel and city centre for offices locations. Simply Food store sales increased +19% over the period.