THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Voluntary - Public Date: 6/27/2012 GAIN Report Number: BE2007 Belgium [without Luxembourg] Post: The Hague The Benelux Food Retail Market Report Categories: Retail Foods Approved By: Mary Ellen Smith Prepared By: Marcel Pinckaers Report Highlights: The turnover of the Benelux food retail industry for 2011 is estimated at € 56.3 billion. For 2012, turnover is expected to increase by 2.5 percent. The retail market is fairly consolidated. Top 3 food retailers in the Netherlands have a market share of 64 percent while in Belgium the leading 3 retailers have 72 percent of the market. Sustainable food (including organic products) is one of the most important growth markets in food retail. The market share for private label products continues to go up in both Belgium and the Netherlands. The demand for convenient, healthy and new innovative products continues to be strong. SECTION I. MARKET SUMMARY Benelux Food Retail Market Approximately 80 percent of the Dutch food retail outlets are full service supermarkets, operating on floor space between 500 and 1,500 square meters located downtown and in residential areas. Retailers with full service supermarkets have responded to the need of the Dutch to have these supermarkets close to their house. The remaining 20 percent includes mainly convenience stores (near office buildings and train/metro stations), some wholesalers and just a few superstores (convenient located alongside highways in shopping malls and industrial parks). The Belgians show a different shopping pattern. They prefer large supermarkets and superstores that are easy to access by car. In addition they increasingly appreciate having much smaller convenience stores, or superettes, close to their homes. In Belgium, full service supermarkets therefore account for an estimated 55 percent of the market. The share of convenience stores, superstores and wholesalers in Belgium is much higher than in the Netherlands, an estimated 45 percent. In all markets, independent food retail stores are increasingly leaving the scene. Shrinking margins and on-going consolidation in the retail market drive this trend. Top 3 food retailers in the Netherlands, Albert Heijn, Jumbo (C1000, Jumbo and Super de Boer) and Aldi, have a market share of 64 percent. The market for discounters like Aldi and Lidl has decreased to 13.5 percent. Dutch discounters like Bas van der Heijden, Dirk van den Heijden and Digros were able to maintain their share of the market. In Belgium, the leading 3 retailers have 72 percent of the market. The market share of the Belgium discounter Colruyt also grew at the expense of German based Aldi and Lidl. Table 1: Market Shares of Leading Food Retailers Netherlands Belgium Company: Market share, percentage: Company: Market share, percentage: Albert Heijn 33.6 Colruyt 27.1 C1000* (Jumbo) 11.5 Delhaize 22.8 Aldi 7.9 Carrefour 22.2 Plus 6.0 Aldi 11.1 Lidl 5.6 Louis Delhaize 5.4 Jumbo 5.5 Lidl 4.6 Super de Boer (Jumbo) 5.5 Makro 4.5 Other 24.4 Other 2.3 Total 100.0 Total 100.0 Source: Distrifood Retailplanner 2012, StoreCheck FoodGids 2012, FEVIA *Due to Jumbo‘s acquisition of C1000, the latter will gradually disappear and transform into Jumbo The turnover of the Benelux food retail industry is estimated at € 56.3 billion (€33.5 billion in the Netherlands and €22.8 billion in Belgium). For 2012, turnover is expected to increase by 2.5 percent since consumers are expected to spend more food euros at retailers than in the HRI industry. Growth is expected to be found in the full-service supermarkets and convenience stores. Table 2: Turnover Benelux food retail, billion Euros 2007 2008 2009 2010 2011 2012 * 47.7 50.5 52,7 54.5 56.3 57.8 Source: CBL, FEDIS, FEVIA * FAS/The Hague forecasts The Benelux food market is highly productive and export focused. In meeting its customers‘ needs it also heavily depends on imports. Last year, the Netherlands imported USD 29.3 billion of consumer-oriented products, about a third came from neighboring Germany and Belgium. After Brazil and South Africa, the U.S. is the third largest non-EU supplier of consumer-oriented products. Over 2011, U.S. exports totaled USD 840 million, dominated by food preparations, tree nuts and beef. In the same year Belgium imported USD 22.2 billion of consumer-oriented products, with 60 percent originating from Germany, France and the Netherlands. U.S. exports of consumer oriented products totaled USD 413 million, led by tree nuts and fruit juices. Table 3: Value of imports of Consumer Oriented and Fishery products, past 5 years, million USD 2007 2008 2009 2010 2011 Netherlands: Consumer Oriented Products Total imports: 25,033 28,800 25,690 26,462 29,298 Imports from U.S.: 655 732 704 735 840 Fishery Products Total imports: 2,575 2,843 2,646 2,654 3,055 Imports from U.S.: 70 98 92 88 98 Belgium: Consumer Oriented Products Total imports: 19,662 22,043 19,824 19,431 22,244 Imports from U.S.: 270 319 274 287 413 Fishery Products Total imports: 2,046 2,197 1,907 1,945 2,236 Imports from U.S.: 30 27 32 39 54 Source: www.gtis.com For fishery products the Benelux market also depends on imports. Last year, the Netherlands imported USD 3.1 billion of fishery products. Iceland is the largest supplier; the U.S. is the 7th largest non-EU supplier of fishery products. Over 2011, U.S. fish exports totaled 98 million, dominated by frozen fish fillets for further processing, cod, scallops and salmon. In the same year Belgium imported USD 2.2. U.S. fish exports totaled USD 54 million, led by scallops and salmon. Table 4: The number and type of retail outlets in the Netherlands Type of outlet: Number of Stores: Average floor space (M2): Supermarkets 3,545 500 – 1,500 Superstores 30 1,500 – 5,000 Wholesalers 112 >5,000 Convenience Stores 718 <500 Source: Distrifood Retailplanner 2012 Table 5: The number and type of retail outlets in Belgium: Type of outlet: Number of Stores: Average floor space (M2): Supermarkets 2,853 500 – 1,500 Superstores 995 1,500 – 5,000 Wholesalers 410 >5,000 Convenience Stores 1,216 <500 Source: StoreCheck FoodGids 2012 More Sustainable Food Products in the Netherlands During the last decade, especially Dutch retailers have increasingly sourced food products which are either produced sustainably or obtained in a sustainable manner. The Dutch Ministry of Economic Affairs, Agriculture and Innovation recently published a report, Monitor Duurzaam Voedsel 2011, which gives an overview of consumer spending on sustainable food in the Netherlands. Sustainable food is one of the most important growth markets in food retail and foodservice markets. The turnover of sustainable food rose in 2011 by 30.5 percent while total spending on food in the same year only grew by 3.1 percent. As a result, the market share of sustainable food increased from 3.5 percent in 2010 to 4.5 percent last year. But how is sustainable food being defined and measured? The MinAg defines as food whereby during production and processing, more than what is legally required, environmental, animal welfare and social aspects or criteria have been taking into account. In the report, two criteria have been used to measure the sustainability claim: 1) at consumer level the sustainability efforts are visible by a label or mark and 2) the control of this mark must be independent. In addition, it is more correct to actually speak of more sustainable food rather than sustainable food in order to indicate that it is a proportionally sustainable product. The emphasis is on the process towards sustainable. Below labels or marks are examples of sustainable food products, recognized by MinAg: Beter Leven: Organic: FAIRTRADE/Ma Label Rouge: MSC: x Havelaar: Milieukeur: Rainforest Scharrelvlees: UTZ Certified: Vrije Uitloop: Alliance: In the Netherlands, spending on sustainable food in 2011 totaled 1.75 billion Euros, up by 410 million Euros compared to 2010. Total spending on food, including sustainable food, amounted 38.9 billion Euros in 2011. Table 6: Spending on sustainable food products, per label/mark, million Euros Label/Mark: 2010: 2011: Change in percentage: Beter Leven 153.6 295.3 92.3 Organic 668.5 802.9 20.1 FAIRTRADE/Max Havelaar 155.9 188.3 20.8 Label Rouge 0.8 1.2 50.0 MSC 111.3 130.5 17.3 Milieukeur 31.4 30.1 -4.1 Rainforest Alliance 98.0 97.8 -0.2 Scharrelvlees 0.2 1.7 750.0 UTZ Certified 214.5 328.0 52.9 Vrije Uitloop 8.0 4.3 -46.3 Total 1,442.2 1,880.1 30.4 Products with more than 1 label or mark 102.3 131.5 28.5 Total 1,339.9 1,748.6 30.5 Source: Ministry of Economic Affairs, Agriculture and Innovation What are the most recent developments per label/mark? Beter Leven: The Beter Leven (or Better Life) is a system by the Dutch Society for the Protection of the Animals (or Dierenbescherming) which is widely accepted in the market. The amount of stars indicates the level of animal welfare friendly, http://beterleven.dierenbescherming.nl/ Organic: On July 1, 2010, the use of the EU organic logo became mandatory for prepackaged organic food produced in the EU. It may be accompanied by national (EKO) or private logos, http://www.eko-keurmerk.nl/. FAIRTRADE/Max Havelaar: This mark continues to demonstrate growth.