Prognosfruit Hamburg 2016

Apple juice in Trends in production and processing

Klaus Heitlinger, Association of the German fruit juice industry

Klaus Heitlinger VdF Prognosfruit Hamburg 2016 Facts about Germany I (2015)

 population: about 81,5 Mio. Habitants, Germany is the most populous member state in the European Union  average income: 32.000 EUR (Germany) 11.500 EUR () 71.000 EUR (Qatar)  gross national product: 3.091,5 billion EUR  import: 948 billion EUR  export: 1196 billion EUR

Klaus Heitlinger VdF Prognosfruit Hamburg 2016 Facts about Germany II

How Germans spend their money

Market size for fruit juices in Germany: 4 billion EUR

Klaus Heitlinger VdF Prognosfruit Hamburg 2016 German priorities

Porsche vs Fridge Volume of food sales 2015

Volume of Sales Food 2015 in %

Company Volume of food sales 2015 in -Group 48.274.000,00 Miscellaneous Edeka‐Group 25% 26% Rewe-Group 28.569.000,00 Schwarz-Group 28.048.000,00 -Group 22.794.000,00 Metro Group 10.270.000,00

Metro Group Miscellaneous 46.289.000,00 6%

Rewe‐Group 16% Aldi‐Group 12%

Schwarz‐Group 15% 2. If you want to deliver to German …

Welcome in the jungle! Retail know-how

 German retailers have own fruit juice companies (Edeka-ELRO) or own bottling facilities (-MEG)  Former fruit juice sellers from the industry are now buyers in retail  Raw material prices are very transparent  Internet auction for apple juice without seeing the buyer is one possibility of purchase

Klaus Heitlinger VdF Prognosfruit Hamburg 2016 What did Germans drink in the year 2015?

 Drinks without alcohol 300 l - Water (with minerals, carbonized) 148 l - Carbonated soft drinks 119 l - Fruit juices & nectars 33 l

 Alcoholic drinks 137 l - Beer 106 l - Wine 21 l - Champagne 4 l - Spirits 5 l - Fruit wine 1 l  House drinks 322 l - Milk 82 l - coffee 160 l - Tea 79 l Total: 758 l Klaus Heitlinger VdF Prognosfruit Hamburg 2016 Membership structure VdF

Klaus Heitlinger VdF Prognosfruit Hamburg 2016 Overview German fruit juice industry

Klaus Heitlinger VdF Prognosfruit Hamburg 2016 Klaus Heitlinger VdF Prognosfruit Hamburg 2016 We didn‘t win in the european tournament but:

Germany is world champion in fruit juice consumption

Klaus Heitlinger VdF Prognosfruit Hamburg 2016 Per capita consumption by country

35,0

30,0

25,0

20,0

15,0

10,0

5,0

0,0 Development of per-capita-consumption of fruit juices/ fruit nectars in Germany in l

Klaus Heitlinger VdF Prognosfruit Hamburg 2016 per capita consumption by juice types

14,00

12,00

10,00

8,00 apple juice orange juice 6,00 multivitamin juice grape juice 4,00

2,00

0,00 1995 2000 2005 2010 2011 2012 2013 2014 2015 Energy drinks as In-beverage young consumers

Klaus Heitlinger VdF Prognosfruit Hamburg 2016 Energy drinks – with fruit juice!

Klaus Heitlinger VdF Prognosfruit Hamburg 2016 Non-alcoholic wheat beer in competition with apple schorle

Klaus Heitlinger VdF Prognosfruit Hamburg 2016 Carton packaging loses in brands and private label, while PET grows on promotions.

Packaging structure FHG

GfK Consumer Panel + | FHG | Jan-Dez 12-15 | amount (%) Average prices of apple juice – individual months in 2014

Ø - Preis je Einzelmonat

0,91 0,89 0,90 0,90 0,88 0,89 0,88 0,86 0,87 0,87

0,80 0,79

VR Rate - Menge je Einzelmonat Vorjahr

Jan 14 Feb 14 Mrz 14 Apr 14 Mai 14 Jun 14 Jul 14 Aug 14 Sep 14 Okt 14 Nov 14 Dez 14

ConsumerScan | FS | Monate 2014 | Ø-Preis pro Liter (€) Juice turned cheaper in 2015 Turnover increased

Klaus Heitlinger VdF Prognosfruit Hamburg 2016 Apple juice 2016

Klaus Heitlinger VdF Prognosfruit Hamburg 2016 Cloudy apple juice 2016

Klaus Heitlinger VdF Prognosfruit Hamburg 2016 Organic apple juice cloudy 2016

Klaus Heitlinger VdF Prognosfruit Hamburg 2016 Organic is a small but growing sector in the AFG- segments. In vegetable juices 1/3 of the amount are generated about Organic. Bio-proportion within relevant AFG-segments VR abs. in %

Bio-proportion (amount)…

AFG 0,4 0,3 +26,2

Gemüsesaft 33,2 35,8 -5,7

Fruchtsaft 3,0 2,6 +19,0

FS-Direktsaft 6,4 6,0 +15,9

FS-Konzentratsaft 1,3 1,0 +27,4

Schorle/ Nektar CO2 1,7 1,1 +52,3

Limonade 1,1 +25,0 0,9

Jan-Dez 15 Eistee 1,1 +30,3 0,8 Jan-Dez 14

GfK Consumer Panel + | AFG + Gemüsesaft | Jan-Dez 14/15 | amount in % | VR abs. (%) Smoothies strong increase

Klaus Heitlinger VdF Prognosfruit Hamburg 2016 Apple juice market in Germany

 8 Liters apple juice per capita equals 650 Mio. Liters  50% NFC equals 320 Mio. Liters  Apple juice from concentrate 320 Mio. Liters or approx. 60.000 tons of apple juice concentrate mainly from Poland and  import from AJC 2015 total 200.000 tons also for use in other products like e.g. multivitamin juice

Klaus Heitlinger VdF Prognosfruit Hamburg 2016 Multivitamin juice

Zutatenliste: 46% Apfelsaft*, 24% Orangensaft*, 6,5% Ananassaft*, 5% Apfelmark, Mangomark, Bananenmark, Pfirsichmark, 2,5% Karottensaft aus Karottensaftkonzentrat mit Pulpe, 1,5% Passionsfruchtsaft*, Kiwimark, Vitamin C, Niacin, Vitamin E, Pantothensäure, Vitamin B6, Vitamin B1 (Thiamin), Biotin, Vitamin B12. *aus Fruchtsaftkonzentrat

Klaus Heitlinger VdF Prognosfruit Hamburg 2016 Import D apple juice concentrate

Total approx. 200.000 tons

Klaus Heitlinger VdF Prognosfruit Hamburg 2016 Apple juice production Germany

Apfelsaftproduktion in D 2002 ‐ 2015 in Mio. l 600

558 556 550 543 525 529 522 500 477 450

400 405 400 400 370 350 360 330 300

250

200 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Klaus Heitlinger VdF Prognosfruit Hamburg 2016 Apple prices in Germany free factory

Frei Silopreise für Äpfel in Deutschland €/100 kg 2002 – 2015 in €/100 kg 25

21 20 18 17 17 15 15 15 15 14 13

10 10 9 9 9

5

0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Klaus Heitlinger VdF Prognosfruit Hamburg 2016 Growth of NFC orange and apple. For concentrate the classic varieties apple and orange loses Direkt-/Konzentratsaft-Anteil innerhalb der Fruchtsaftsorten

FruchtsaftJan-Dez 14 Jan-Dez 15 VR abs. in % Orangensaft Jan-Dez 14 Jan-Dez 15 VR abs. in % ApfelsaftJan-Dez 14 Jan-Dez 15 VR abs. in %

1,3 Konzentratsaft -2,9 -7,0

51,3 55,4 67,9 66,4

85,8 83,7

8,3 13,9 9,4

Direktsaft 48,7 44,6 32,1 33,6 3,5 -0,5 0,4

14,2 16,3

Total VR abs in %

GfK Consumer Panel + | FS | Jan-Dez 14/15 | Menge (%) Wild apples have a good image in Germany

Klaus Heitlinger VdF Prognosfruit Hamburg 2016 Wild apples in good condition

Klaus Heitlinger VdF Prognosfruit Hamburg 2016 Crop estimation on wild apple trees

700.000 tons in 2016

Klaus Heitlinger VdF Prognosfruit Hamburg 2016 Crop estimation 2016

---- Table apples ___ Wild trees 1,10

1,00

Marktanbau; 1,05 Mio. t 0,90

0,80

0,70 In Mio. Tonnen In Mio. 0,60

0,50

Streu-/Gartenobst; 0,7 Mio. t 0,40

0,30 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Klaus Heitlinger VdF Prognosfruit Hamburg 2016 Wild apple tree ruins

Klaus Heitlinger VdF Prognosfruit Hamburg 2016 Wild trees profit and table apples

model calculation

Yield per hectare 100 trees x 100 kg = 10.000 kg ≙ 10 t ≙ 100 dt Producer price per dt € 5,00 - € 10,00 per ha € 500,00 - € 1.000,00 50 % due to alternate bearing € 250,00 – € 500,00

For comparison: Yield 1 ha table apples: 500 dt producer price: € 20,00 per ha € 10.000,00

Klaus Heitlinger VdF Prognosfruit Hamburg 2016 Future trend: Industry plantations for acid apple

Klaus Heitlinger VdF Prognosfruit Hamburg 2016 Thank you very much for your attention! Please come back! Don‘t leave the EU!

Auf Wiedersehen!

Klaus Heitlinger VdF Prognosfruit Hamburg 2016