News
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
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
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
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
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
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.
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 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
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
Food & Beverage Sales & Marketing Services we offer at Green Seed
In the food and beverage industry, standing out requires more than just a great product. It necessitates a strategic approach that encompasses thorough market assessment, targeted planning, and seamless execution. At Green Seed, we pride ourselves on offering a comprehensive suite of marketing services designed to help businesses not just survive, but thrive in this dynamic landscape. Market Opportunity Assessment: Uncovering Hidden Gems Embarking on a successful international business journey begins with understanding the lay of the land. Our Market Opportunity Assessment service is the first step towards unlocking the potential of your products. With over three decades of experience in the food and beverage industry, we possess a wealth of insights and expertise to delve deep into market dynamics. From analysing market size, category trends, and competitor landscapes to conducting consumer taste tests and online forums, we leave no stone unturned. Armed with this comprehensive understanding, we identify key selling points and market gaps, laying the groundwork for a compelling market strategy tailored to your brand. Route to Market Strategy: Charting a Course for Success Navigating the intricate maze of market entry and sales requires a well-defined route to market strategy. Our seasoned experts at Green Seed specialise in crafting winning strategies that prioritise market segments, channels, and target customers. Whether it’s establishing direct sales channels, engaging with distributors, or forging strategic partnerships, we evaluate options meticulously to ensure optimal results. With a keen focus on supply chain optimisation, pricing strategies, and business planning, we equip your brand with a roadmap for sustainable growth and market penetration. Food Sales Execution: From Seed to Harvest The journey from ideation to market success is a multifaceted one, and our Food Sales Execution service is designed to guide you every step of the way. Our strategic planning process, aptly named ‘Seed, Incubate, Grow, and Harvest’, encapsulates the essence of our approach. We begin by nurturing your ideas, leveraging our international food marketing expertise to transform concepts into reality. Through meticulous incubation and growth strategies, we tailor plans to suit your brand’s unique proposition, ensuring alignment with market needs and consumer preferences. Finally, we reap the rewards of our collective efforts through meticulous execution, driving sales and fostering sustainable business growth in both domestic and international markets. The Three-Phase Sales Execution Process: Turning Strategy into Action Executing a successful sales strategy requires precision and finesse. Our three-phase sales execution process is meticulously crafted to translate strategic plans into tangible results. From prioritising customers and setting up crucial meetings with buyers to managing listings and fostering brand loyalty, we leave no stone unturned. Our focus extends beyond the sale itself, encompassing post-sales activities and robust customer relationship management to nurture long-term partnerships and drive continued growth. Food and Drink Marketing Services: Elevating Brands on the Global Stage Expanding your food brand overseas opens up a world of opportunities, but it also presents unique challenges. Our dedicated team of seasoned food and beverage marketing experts is here to guide you through every step of the journey. With a deep understanding of your products and global market dynamics, we craft targeted marketing strategies that resonate with consumers worldwide. Leveraging our local knowledge and global perspective, we navigate diverse markets with ease, ensuring seamless integration of marketing efforts for optimal brand exposure and growth. Brand Development: Building Identity and Recognition In the competitive landscape of food and beverage, a strong brand identity is paramount. Our brand development services are designed to help you carve out a distinctive niche in the market. Whether it’s naming, developing, or registering a new brand, our experts work closely with you to communicate your brand’s message and values effectively. With a keen eye on local nuances and consumer preferences, we ensure your brand resonates with audiences across different geographies, driving acceptance and loyalty. Packaging Development: Merging Form with Function Packaging plays a pivotal role in shaping consumer perceptions and driving purchase decisions. Our packaging development services combine aesthetic appeal with functional design, ensuring compliance with local regulations and market requirements. From conceptualisation to production, we guide you through every stage of the process, offering strategic recommendations and comprehensive support to create packaging solutions that captivate and engage consumers. Marketing Plan: A Roadmap for Success A comprehensive marketing plan is the cornerstone of any successful product launch. Our experts collaborate closely with your team to develop tailored marketing strategies that align with your business objectives. From detailed advertising and PR campaigns to trade promotion and social media engagement, we craft holistic marketing plans that drive brand awareness and consumer engagement, setting the stage for sustained growth and market success. Trade Promotion and Exhibitions: Maximising Exposure and Impact Trade promotion and exhibitions are invaluable opportunities to showcase your products and connect with key stakeholders. Our trade marketing strategies are tailored to individual accounts, optimising sales performance and driving business growth. From advising on relevant trade exhibitions to overseeing media communication and engagement, we ensure your brand stands out in a crowded marketplace, fostering meaningful connections and driving sales. Social Media and Consumer PR: Engaging Audiences in the Digital Age In today’s digital age, engaging with consumers on social media is essential for building brand awareness and driving trial. Our social media and consumer PR services encompass influencer campaigns, organic social media management, and digital advertising, creating buzz and excitement around your brand. Through strategic content creation and targeted outreach, we foster meaningful connections with your target audience, driving engagement and loyalty in an increasingly competitive landscape. In conclusion, at Green Seed, we are more than just a marketing agency – we are your partners in success. With our comprehensive suite of services, industry expertise, and unwavering commitment to excellence, we empower brands to thrive in the ever-evolving world of food and beverage. Let us help you unlock your brand’s full potential and take it to new heights of success, both domestically and internationally.
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
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
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
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
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
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).
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.
Post Pandemic Renaissance for Horeca and Foodservice consumption in Spain
Out of home food and beverages consumption in Spain represents 10 % of national GDP and provides for more than 12% of employment. The hit inflicted by the pandemic is starting to be left behind according to a recent Kantar survey where we see that consumption in such an important channel in Spain has grown 23 % in 2021 and has almost reached the level of 2019. The average ticket spend per visit has recovered the 9 euro mark but there is still some recovery pending in terms of frequency and number of visits to Spain’s 250,000 outlets. Now that the pandemic is almost behind us we believe is worth taking a strategic look at the whole value chain so as to assess the impacts and adaptations needed in the main stakeholders groups: 1) the suppliers of food and beverages products, 2) the Route-to-Market and supply chain services, 3) the service providers for on-site machinery (cooking features, fountains, coffee machines…) and premise maintenance, 4) the employees and 5) the owners. 1)The suppliers of food and beverages products are rapidly adapting to both the consolidation of ownership of outlets and the new supply dynamics with restaurants joining forces in upstream shared kitchens delivering basic elaborated materials and primary meal components which then are used in different organisations. 2) Wholesalers and distributors together with cash & carries are swiftly adapting to these new levers and to increasingly direct relationship between the grower/producer and the outlet. A flexible oute-to-market assessment becomes as important as ever. 3) The service providers for premises and supplies are experiencing a totally new way of working where concentration is the name of the game. 4) If we focus on the employees and collaborators, the pressure on working hours and new dynamics of life/work balance could well be presenting new issues and opportunities not only in flexible appointments procedures, but also managing staff turnover and making training as efficient as possible. 5) From the perspective of the outlet owner, the main focus is now on trying to adapt to a more competitive landscape where competitors are rapidly concentrating (while at the same time the number of outlets remains very stable and new competitors appear in the retailers’ new sections of ready-to-eat/eat-it-here), and to be able to offer new premiumised propositions. The name of the game is to attract back more consumers into the outlet. A significant part of the impact has been softened by the new initiative (not only for fast food offerings) to increase home delivery services from food service outlets – obtaining a kealthy penetration of 45% of total out-of-home consumption after opening up to new services from the traditional on-premise direct intake. The new delivery services as Just Eat, Glovo etc. are playing a new significant part here helping changing the services and labour support landscape. This blurring of the channels and new players appearing in the value chain will necessitate new tools and measurements to be able to look at the full market value chain and the times and places of consumption in radically new ways.
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.
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
Opinion: New approaches to decision making for product portfolios
The year 2020 will be remembered as the one where almost all consumers have tried new ways of shopping. Do they intend to stick with them for the long term?. The health crisis has accelerated the ongoing move toward online shopping methods, but which will stay and which will revert? Shoppers have learned to navigate stores in a different way and perceptions of ‘experience’ are changing. How do we know what’s next? Marketers everywhere are asking these questions and the honest answer is simply, we don’t know. Effective marketing teams understand what matters to their customers and in that context, 2020 is showing there’s broad acknowledgment that companies need to rethink not only how they market their product offerings, but how they develop, distribute, and design them. Instead of trying to predict the next trend, the best marketers are rethinking how they can be ready for whatever comes next. They’re figuring out how to digitally transform their organisations responsibly. They’re using data and consumer signals to distil actionable insights in a privacy-safe way, deploying automated tools that can respond to dynamic behaviour in real time, and building a culture of agility and resilience in the face of change. “These adjustments don’t need to be radical, just radically responsive”, as Google puts it When used strategically and responsibly, the signals available to marketers can help fill in the gaps of traditional market intelligence or even in an organisation’s own supply chain. At the outset of COVID-19, Pepsico found pandemic-induced constraints on production capacity were worsened by unavailable or unreliable demand signals that normally came from shipment and consumption data. Eager for insights to inform not just its marketing but the entire business, the company partnered with Google to create a dashboard that helped it understand consumer demand for its top product categories, including terms such as “pantry loading” that indicated upcoming shopping behaviour. “The insights were so fresh and relevant that the company used them to drive production and distribution decisions across six separate, billion-dollar brands and scaled the approach globally”, according to Google. “Marketers who focus on surfacing powerful insights into what matters to consumers right now will build the organisational muscles to be ready for whatever tomorrow brings”. Increasingly using Artificial Intelligence tools and via digital transformation, the best marketers will drive growth not just in their own departments but across their entire organizations, including their partners in operations and finance. Antonio Obieta, Managing Director, Green Seed Spain
FMCG-Growing in Spain thanks to a connected and healthy consumer
According to the supplier of big data and predictive analytics for manufacturers and distributors of consumer goods, IRI, the Spanish consumption is in continuous growth, being the departments of perfumery and of the healthy foods the ones that grow more. By channels, the large supermarket continues to lead the market (growing market share to 49.8%), compared to medium supermarkets (22.9%), hypermarkets (15.3%) and small supermarkets (12%). The hypermarkets are seeing how their shoppers number decreases in favor of new formats of establishments, for example, proximity, points of sale open 24 hours, 365 days a year. Also noteworthy are the “hard discount” establishments that in 2017 maintained the growth they have maintained for years in Spain. In addition, the day-to-day purchase is in a process of conversion towards multi-channel and from which the specialized stores have been favored. In Spain, consumers visited an average of 5.8 different channels during the last twelve months to make the usual purchase. Among the specialized channels, drugstores, perfumeries and chemists were the most visited establishments. It is also appreciated that, in 2017, the increasingly frequent use of the Internet through smartphones has made it easier for buyers to find information on promotions and offers that help them reduce the cost of their purchase at the supermarket: 39% of Spaniards have searched the internet before carrying out their purchase (the European average is 34%), 38% have sought an economic advantage and up to 64% have managed to save thanks to the use of coupons or promotions in the network. Another trend that has been appreciated in 2017 is an evolution in the preferences of consumers, who now opt for a healthier and more balanced diet.
The Guilt-Free Consumption
It is a growing market trend that proposes environmentally friendly products, such as recyclables, fair trade and no substances harmful to health and responds to a growing need around the world, since it is based on a universal feeling: all We want to have our conscience clean, calm. “Consumers are eager for a type of consumption without worrying (or at least worry less) about a negative impact”. This is indicated in Trendwatching, a company specializing in global consumer trends. Guilt-free consumption also causes “clean brands” to achieve an advantage over their competition, according to Trendwatching experts. The companies that declare themselves respectful for the environment, that do not produce in countries with precarious labor, or that use healthy substances, put in the point of view of the citizens to the companies that grow without saying anything about it. In short, consumers are the basis of the production system and their purchasing decision can change market trends. Therefore, making a consumption free of guilt is an indirect way of claiming companies that include the environmental, solidarity and welfare variable in their products and services.
CHANGING HABITS OF SOFT DRINKS CONSUMPTION IN SPAIN
Soft drinks are part of social relationships and leisure time, all over the world. According to the study on “Drinking Habits of Soft Drinks in Spain”, which is periodically elaborated by ANFABRA, the National Association of Soft Drink Manufacturers, 75% of Spaniards prefer to drink soft drinks with friends and away from home, in bars, restaurants or cafes and preferably during the weekend. The Spanish people declare to prefer light or without gas soft drinks and thirdly, the sports drinks. Although during the weekend the refreshments preferred by the Spaniards are those that contain gas. The flavor of cola is still the preferred choice for 50% of the interviewees, although it also highlights the taste for other flavours with less tradition such as pineapple, apple or peach, which agglutinate 18% of preferences, and other new soft drinks such as ready-to-drink- tea (10%). Another trend in recent years is the increase in the demand for light/sugar free carbonated soft drinks. So, 10% affirm to drink light refreshments on a normal way and another 25% drink them occasionally. On the other hand, non-carbonated drinks are usually consumed by 16% of the interviewees, and another 39% do so on an occasional way. Preferences also vary with age. The younger ones choose to try different flavors, and stand out as the most appreciated feature when it comes to sipping their flavor. Between the ages of 24 and 34, they choose more light and non-carbon refreshing drinks. Those over 55 emphasize the healthy properties of soft drinks and more traditional flavors. In Spain, unlike other European countries or the United States, soft drinks are more part of leisure activities than meals accompaniment. This trend towards social consumption is favored by good climatic conditions and by ingrained habits of shared leisure.
The Snacks Market in Spain
The snacks market in Spain is experiencing accelerated growth as compared to other food categories on the back of several factors: innovation in new seasonings, new products for new types consumption and new brands and operators coming into play. The total market including snacks and nuts has achieved in 2016 a record size of 300.000 tones with a total value of €2,000 million growing 3% in volume and 1.5% in value. If we focus on the snacks category (125.000 tonnes and €850 million of sales in all channels), a significant growth can be seen in premium presentation of crisps with new seasonings, crisps with healthy attributes, corn based products for dipping and tubes of crisps. The balance of branded products versus Private Label remains stable with a 51 vs. 49 % ratio in the modern trade channel, which accounts for 73% of total sales in volume and 68% in value, with the balance being sold in the strong food service and traditional channels. The key levers in the developments of this snacks category are: 1. New types of consumption driving extraordinary growth of corn based nacho/tortillas and preformed chips for dipping a. The Nielsen panel has just issued a report showing the importance of dipping as a vector in socialisation of consumption normally in the afternoons/evenings b. The so called “aperitif” moment is driving growth specifically in artisanal style crisps 2. The dichotomy of the pleasure versus health driving developments to their extremes: a. Innovative products based in “pleasure” factor developing new seasonings, BBQ style, cheese based, etc. and packaging as for example crisps in tubes which are growing particularly at a rate of 20%+ according to IRI agency data b. Innovation based in the “healthy” factor using natural ingredients and fewer preservatives and artificial flavourings. In this sub-segment the “veg crisps” are arriving on the shelves with a significant growth rate 3. The operators are investing again in production and packaging facilities after some years of low levels of innovation. Local companies as APEX, Tosfrit or Grefusa are investing amounts circa the mark of €5 million according to a latest report issued by Alimarket magazine. Also worth noting the introduction of Japanese and South African companies with new snacking concepts based in peas, dried fruit and dried meat or fish.
HEALTHY FOOD DEVELOPMENTS IN SPAIN
The nowadays consumer increasingly seeks to find pleasure in food. Therefore it gives priority to healthy and pleasurable products, which cover certain dietetic needs or provoke specific sensations linked to taste, texture and pleasure without compromising enjoyment. Heathy food which tastes great: “Food to feel good about”, is what the consumer seeks. Food enjoyment without guilt is the claim of the new brands that are trying to conquer two new types of consumer groups: 1) the hedonist consumer. This consumer looks for food, which will not necessarily satisfy its hunger -a need- but instead calm its appetite -a desire- that will unleash a unique experience. And 2) the conscious consumer. Aware both of his health and of the sustainability of his environment. This consumer cares about what he eats in his diet and the impact he produces in his environment. But without compromising taste and enjoyment/pleasure. They claim for a balanced lifestyle. Beatriz Pérez, from the department of New Products of AINIA, the Spanish leading technology centre for food development, points out that the food industry seeks to find new technologic options to compensate the sensory impairments from certain products. This industry is also constantly working in the combination of textures that will make the food more pleasant. Moreover, according to Perez, nowadays consumers are more aware that the consequences of a healthy diet directly affect to their wellbeing and to the appearance of illnesses. Therefore, the consumer looks for products that contain natural or functional ingredients, which are “healthier and have a hedonic component”. Biscuits containing natural antioxidants coming from grapes, natural sweeteners from fruit extracts or chocolate manufactured out of fruit pellets and natural aromas are some of the innovative concepts presented in the workshop organised by AINIA “New uses of natural ingredients in the food industry: hedonism and health”. The consumer panel made by Consumolab last summer points out that 97,3% of the surveyed people consider taste as one of the decisive elements to have in mind at the time of choosing the food they consume. In fact, according to those sources, only nine percent of the food consumed doesn’t entail a pleasure or convenience connotation. It isn’t even related to the way in how we feel when we eat it. The concepts “food hedonism” and “health” are progressively being linked. Consumers have a bigger preference for products that are labelled as “…free from…” or “…reduced on..” on salt, gluten, fat, lactose or sugar. Between these consumers trends we can also find concepts such as “Indulgence and Health” that have led to the development of new ingredients that offer healthier alternatives at the same time as they work as an excuse to indulge a whim. According to AINIA we can find some of these examples in functional candies; sweets with vitamin C; chocolate with fat-free cocoa, which are purer and are rich in calcium, and the appearance of flavoured waters. Furthermore, the interest on natural things and in “going back to basics” has led to a preference for “flexitarian” or “part time vegetarian” diets, due to the discovery of new sources of protein such as seaweeds, funghi, peas and soybeans. A pragmatic example of these tendencies for the Industry has just taken place in the big Food Fair of Alimentaria in Barcelona at the end of april, where for the first time in its 40 years of celebration, a special section of the pabillions was dedicated to “Healthy Food”. In this special area the 150.000 visitors have been able to get in contact with the above mentioned concepts and tendencies deployed in more than 200 stands where innovative companies have show tested their new products and ingredients. As to the availability for shopping these kind of products, we are observing the impressively quick development of Healthy Food Chains such as Herbolario Navarro, Natura Si, Super Sano, etc. with more than 100 shops spread across the main cities. Not to forget about the reorganization of the big retailers main stores to accommodate new aisles with these offerings.
Wine from Spain-Impact of Brexit
Even though a 15% more british tourists have arrived to the Spanish coasts this month of july ’16, the wine industry in Spain through its Industry body The Federación Española del Vino (FEV) fears that BREXIT will have a negative impact in its developments. The FEV has said that it considers the decision of the UK to leave the EU to be “bad news” for the Spanish wine sector. As reported on GranConsumo.tv, a spokesperson from the organisation, which gathers people from the different areas of the Spanish wine industry, feels that the Brexit “will have repercussions in the medium and long term for the Spanish market”, which has historically seen the UK as one of its biggest customers. Actually number 2 after Germany. In 2015, Spanish wine exports to the UK reached €356.1 million, placing the country as the second destination for Spanish wines, surpassed only by Germany. The first negative effects, due to the fall of sterling, will likely “have direct consequences on our sector, such as the increase on the price of our wines in that market”, expressed the organisation.
DIA- The number 2 retailer in Spain
The Spanish “soft discounter” DIA has just (according to KANTAR -july 2016-) reached number 2 position in the retail trade in Spain overpassing Carrefour. On top of increased sales coming from new stores format, DIA has bought 150 stores previously owned by EROSKI and some 400 stores coming from the acquisition of the regional retailer EL ARBOL. DIA has achieved a turnover of over 4.000 million euros in the first semester ‘16 and is trading in the Madrid stock exchange market at a stock price of 5,55 eur per share coming from around 7,50 eur per share (max score in a 5 year period in may 2015).
BEER COMSUMPTION IN SPAIN-back to growth
The beer category delivers a healthy growth of 4% in 2015 versus previous year achieving 88 liters per head comsumption. That trend continues in 2016 and is based in three main factors: The growth in out of home comsumption due to the increased intake of both nationals and more tourists accessing the Spanish 260.000 bars, the accelerated innovation of artisanal beers and the push of new imported brands. The national company Mahou-San Miguel is clearly the leader in branded beers, followed by Heineken ,the dutch group and Damm, also a national Company in number 3 position. The private labels hold a 37 % market share in the modern retail trade.