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THE FUTURE OF FRESH “An approach to retailing in SE Europe” Belgrade. November 2018 Global process Traceability TASTE! Food safety Labour legislaon Social Audits Sustainibility Planning Loyalty of service and… Operaons on a daily basis Freshness and shelf life Quick response Few losses Innovaon Organic and/or ‘0 residue’

Fresh-cut and prepared Regulaons & audits Specific cerficaons for F&V Tradional

¿? Integrated crop management

Fair Trade

‘zero residue’

Organic End to end blockchain-enabled supply chain

Source: Oliver Wyman PRODUCER PROCESSOR LOGISTICS RETAILER STORE CUSTOMER

!Collects and !Gets !Is informed !Runs !Has full !Scans QR updates data informaon on about products’ machine transparency code via App. harvest: sorts for on harvest origin and learning- on delivery quality grade, details and cold calibre and colour. desnaon. based me. !Gets insights chain iniaon. forecasng. into origin, !Cuts and packs ! Reviews ! Reviews harvest date, !Data on field accordingly. instrucons on !Adds handling etc. as well as locaon, how to handle potenal guidelines. inspiraonal !Analyses growing type, and store the recipes to the recipes. expected shelf weather, soil life. products. data record. !Can adapt and ferliser is orders, !Earns points automacally !Adds QR code to !Adds sensory !Provides promoons, in cross- amended. packaging. data. app for end etc. company customer. accordingly. loyalty programme.

Retail and the primary sector: a complicated and contradictory relaonship ! Simplicity: direct relaon ! Complex with technical producon… interlocuon structure ! … which involves logiscs ! Confusing and price communicaon management trends problems DISCOUNT CONVENIENCE

SUPERMARKET

CASH & CARRY

HIPERMARKET CASH & CARRY DISCOUNT CONVENIENCE SUPERMARKET

SUPERMARKET

CASH & CARRY

HIPERMARKET CASH & CARRY DISCOUNT CONVENIENCE SUPERMARKET

SUPERMARKET

CASH & CARRY

HIPERMARKET CASH & CARRY DISCOUNT CONVENIENCE SUPERMARKET

SUPERMARKET

CASH & CARRY

HIPERMARKET CASH & CARRY DISCOUNT CONVENIENCE SUPERMARKET

SUPERMARKET

CASH & CARRY

HIPERMARKET CASH & CARRY DISCOUNT CONVENIENCE SUPERMARKET

SUPERMARKET

CASH & CARRY

HIPERMARKET CASH & CARRY DISCOUNT CONVENIENCE SUPERMARKET

SUPERMARKET

CASH & CARRY

HIPERMARKET CASH & CARRY DISCOUNT CONVENIENCE SUPERMARKET

SUPERMARKET

CASH & CARRY

HIPERMARKET CASH & CARRY DISCOUNT CONVENIENCE SUPERMARKET

SUPERMARKET

CASH & CARRY

HIPERMARKET CASH & CARRY DISCOUNT CONVENIENCE SUPERMARKET

SUPERMARKET

CASH & CARRY

HIPERMARKET CASH & CARRY 100% ORGANIC RETAILERS Shops Chain Country number

Italy & 276

France 530

France(Belg/Swiz/Italy) 110

Germany 107

Germany & Austria 260

United Kingdon

Spain 32 TRADITIONAL RETAILERS WITH 100% ORGANIC SHOPS Chain Organic Shop The constant growth of discounts ….. Convergence trend SUPERDISCOUNT Hard Discount has arrived!!! So Discount

Supermarket

Hipermarket

Convenience and proximity. 20 FOOD EUROPEAN MARKET SHARE 2011 2017

Turn Europ Turn Europ Incr. Chaine Chaine Europe Mk/Sha Europe Mk/Sha 17/16 1 79.082 5,00% 106.375 6,70% 6,00% 2 Schwarz Gruppe 62.933 4,00% Carrefour 64.097 4,10% -0,70% 3 61.853 3,90% 61.711 3,90% 6,40% 4 Rewe 47.972 3,00% Tesco 56.810 3,60% -3,90% 5 45.059 2,80% 56.715 3,50% 5,40% 6 Edeka 42.913 2,70% Rewe 54.744 3,40% 6,90% 7 Aldi 42.308 2,70% Auchan 43.266 2,70% -1,50% 8 Metro 42.012 2,60% Leclerc 38.133 2,40% 2,00% 9 Leclerc 35.825 2,30% Metro 34.165 2,20% 10 ITM 29.228 1,80% Sainsbury's 31.341 2,00% 2,90% 11 Casino 28.388 1,80% ITM 29.503 1,90% 3,20% 12 28.334 1,80% 26.888 1,70% 17,60% 13 Sainsbury's 26.269 1,70% Ahold-Delhaize 26.500 1,70% 14 Asda () 24.992 1,60% Asda (Walmart) 24.402 1,50% -6,00% 15 20.663 1,30% 22.920 1,40% 6,00% 16 System U 19.364 1,20% X-5 Retailer 22.888 1,40% 40,80% 17 Mercadona 16.485 1,00% Schweitz 22.706 1,40% 0,30% 18 Coop Italia 13.974 0,90% Casino 21.789 1,40% 0,80% 19 Migros Bund 13.093 0,80% Magnit 20.169 1,30% 19,00% 20 Louis Delhaize 11.568 0,70% Migros Bund 19.551 1,20% -1,40% 2011 Turnover Europ Chaine Europe Mk/Sha First 10 Chaines 489.185 30,80% Second 10 Chaines 203.130 12,80% First 20 Chaines 692.315 43,60%

2017 Turnover Europ Chaine Europe Mk/Sha First 10 Chaines 547.357 34,50% Second 10 Chaines 237.316 14,90% First 20 Chaines 784.673 49,40% 2011 2017 Chain Europ Chain Europ Origin Origin number Mk/Sha number Mk/Sha Germany 5 15,00% Germany 5 19,70% France 6 14,90% France 5 12,50% United Kingdom 4 8,50% United Kingdom 3 7,10% Benelux 2 2,50% Russia 2 2,70% Spain 1 1,00% Switzerland 2 2,60% Italy 1 0,90% Benelux 1 1,70% Switzerland 1 0,80% EEUU 1 1,70% Spain 1 1,40% SOUTH WEST EUROPE RETAIL CHAINS SOUTH WEST EUROPE (Million Euros)

FRANCE (64,7 M.pop.) SPAIN (45,5 M.pop.) ITALY (60,7 M.pop) (10,3 M.pop) Carrefour 40.240 Mercadona 22.920 Coop Italia 12.800 Jeronimo Martins 4.466 Leclerc 36.734 Carrefour 9.609 Conad 12.400 Sonae 3.687 Intermarche 25.980 Eroski 6.051 Esselunga 7.700 Intermarche 1.900 Casino 21.707 4.570 Auchan 6.700 Auchan 1.900 Systeme U 19.490 Auchan 4.641 Crai 5.900 1.430 Auchan 19.208 Lidl 3.335 Eurospin 5.400 Dia 848 Lidl 11.292 El Corte Ingles 3.100 Carrefour 5.300 Leclerc 510 Louis Delhaize 7.245 Consum 2.344 Lidl 4.300 Metro 350 Metro 4.659 Ahorramas 1.670 Finiper 2.800 Aldi 130 Aldi 4.000 Metro 1.228 Pam 2.600 CENTRAL EUROPE RETAIL CHAINS CENTRAL EUROPE (Million Euros)

GERMANY (82,6 M. pop) SWITZERLAND (8,4 M. pop) AUSTRIA (8,8 M.pop) Edeka 55.896 Migros 14.958 Rewe 8.281 Lidl/ 39.827 Coop Schweiz 10.875 Austria 6.225 Rewe 38.512 Aldi 1.490 Aldi 4.322 Aldi 30.453 Volg 1.337 Lidl 1.344 Metro 13.142 Lidl 1.084 Metro 891 Globus 5.116 Spar South Africa 568 M Presi 805 Bartels-Langness 5.000 Müller 251 Unimarkt 681 3.502 Fresnapf 132 Müller 511 Transgourmet 3.450 Crai 50 Wedl 384 Dohle(Hit) 1.491 Ainatura 36 EAST EUROPE RETAIL CHAINS EAST EUROPE (Million Euros)

POLAND (38,4 M.pop.) Czech Rep. (10,6 M. pop) HUNGARY (9,8 M.pop.) ROMANIA (19,7 M.pop) 11.200 Kaufland 2.200 Tesco 2.559 Kaufland 2.195 Eurocash 5.300 Coop Hunga 1.871 Rewe 2.200 Carrefour 1.477 Lidl 3.400 Spar 1.660 1.700 Lidl 1.130 Metro Group 2.800 Metro 1.255 Tesco 1.531 Metro 1.075 Auchan 2.600 Auchan 1.125 Tesco 2.500 Lidl 1.200 Auchan 1.063 Lidl 1.144 Rewe 997 Kaufland 2.400 Globus 900 Rewe 705 Ahold Delhaize 853 Carrefour 2.100 Aldi 431 GK Special 2.000 Transgourmet 702 Intermarche 1.400 SLOVAKIA (5,4 M.pop.) BULGARIA (7,1 M.pop.) Coop Slovaq 1.500 Kaufland 845 Tesco 1.338 Metro 396 Kaufland 900 Lidl 370 Lidl 900 Rewe 430 Rewe 500 Fantastico 230 SOUTH EAST EUROPE RETAIL CHAINS SOUTH EAST EUROPE (% Turnover)

SERBIA (7,7 M.pop.) CROACIA (7,7 M. pop.) BOSNIA-HERZEG. (3,4 M.pop.) ESLOVENIA (2,1 M.pop) Ahold Delhaize 20,60% AGRO KOR (Konzum) 21,00% BINGO 19,00% AGRO KOR (Mercator) 34,20% AGRO KOR (Mercator) 15,98% LIDL 12,00% DIS 3,56% AGRO KOR (Konzum) 12,00% SPAR AUSTRIA 18,80% PLODINE 6,00% AMAMN 3,48% FIS 7,00% ENGROTUS 12,50% KAUFLAND 5,20% UNIVEREXPORT 3,20% TROPIK 5,00% ALDI 10,90% Gomex 2,17% SPAR AUSTRIA 5,00% ROBOT 4,00% LIDL 8,30% METRO 1,54% TOMMY 4,10% EUROSPIN 3,00% Quattro 1,12% TISAK 3,20% Resto 53,00% Resto 13,00% Persu 1,07% Resto 38,00% VEROPOULOS 0,98% Resto 46,00%

GREECE (10,8 M.pop.) Ahold Delhaize 10,20% MONTENEGRO (0,64 M. pop.) ALBANIA (2,9 M.pop.) MACEDONIA (2,1 M.pop.) Sklavenitis 7,70% VOLI BIG MARKET KAM Lidl 7,40% AGRO KOR TINEX BELFIN GROUP Diamantis 4,70% HDL Lakovic CONAD RAMCTORE Marinopoulus 4,40% Ahold Delhaize ECONOMARKET VEROPOULOS Veropoulus 4,00% Resto 61,60% What will happen in the next 5 years?

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