The British Chamber of Commerce for Italy Doing Business in Italy What you always wanted to know … and more Supported by AGENDA 14.00 -14.05 Welcome by Colin Jamieson, Vice President of the Italian British Chamber of Commerce 14.05 – 14.15 Welcome by Danielle Allen, Deputy Director of UKTI Part 1 – Italy – an overview of the food and drink market 14.15-14.30 AF 14.30 -14.50 MB 14.50-15.00 Question Time/Panel Discussion 15.00-15.20 Tea and Biscuits Part 2 – Exporting into Italy – legal and tax issues 15.20-16.00 T&C (DA, FF and GDT) 16.00-16.15 CJ 16.15-16.30 Question Time/Panel Discussion Fresh Thinking Andrew Fattorini Chief Financial Officer LINPAC Italy & INFIA Group LINPAC Packaging Verona S.r.l. www.linpacpackaging.com/ [email protected] Internationalising your products FMCG in Italy: a Scenario Features & Evolution Michele Bauli Vice President www.bauli.it/ Agenda 1 The Scenario 2 Italian retailers 3 Private label 4 Assortments and Promotions 5 Discount Retailers Agenda 1 The Scenario 2 Italian retailers 3 Private label 4 Assortments and Promotions 5 Discount Retailers Italian Scenario – Modern vs Traditional Traditional: Large Number of stores 48.470 46.232 45.633 44.540 43.642 42.301 41.165 28.028 27.946 27.907 27.855 27.900 27.583 27.663 2008 2009 2010 2011 2012 2013 # of PoS 2014 Tradizionale Moderno Moderno: Iper, Super, Superette, Mini Market, Discount, Specialisti Drug - Tradizionale: Misti, Alimentari, Micro Market Source IRI: Top Trade 1° Gennaio 2015 Italian Scenario – Modern vs Traditional Modern Trade: 94.4% value market share 94,4% 94,1% 93,8% 93,4% 92,8% 92,6% 92,4% 2008 2009 2010 2011 2012 2013 2014 Moderno Moderno: Iper, Super, Superette, Mini Market, Discount, Specialisti Drug - Tradizionale: Misti, Alimentari, Micro Market Source IRI: Top Trade 1° Jan 2015 Italian scenario (Market share of different channels - FMCG) Italy: Land of supermarkets … # of Stores Market Share -0,4 % Misti-Alimentari 4,1 3,7 2,2 1,9 3,1 3,8 -0,3 % Micro 11,1 11,4 37.796 3 2,7 35.624 +0,7 % Specialisti Drug 10,0 9,5 +0,3 % Discount Mini -0,3 % 39,6 5.846 5.541 39,7 2.571 2.657 Superette -0,5 % 4.464 4.581 4.936 4.690 Supermercati -0,1 % 10,8 12,3 6.535 6.341 Superstore +1,5 % 8.521 8.487 465 16,1 424 15,1 Ipermercati -1,0 % 449 442 2012 2014 2012 2014 Source IRI: Top Trade 1° Jan 2015 Hypermarkets and Supermarkets North West region > 1/3 of Italian Sales Pot. IS AREA REGIONE # PdV MQ Totali Grocery LIGURIA 195 212.434 2,7 LOMBARDIA 1.281 2.355.557 24,0 PIEMONTE 604 978.359 8,9 VALLE D' AOSTA 14 25.634 0,3 NORD- OVEST TOTALE 2.094 3.571.984 35,8 EMILIA ROMAGNA 674 894.307 9,7 FRIULI VENEZIA GIULIA 268 347.568 2,4 TRENTINO ALTO ADIGE 246 203.052 1,9 VENETO 871 1.217.003 8,4 NORD- EST TOTALE 2.059 2.661.930 22,4 LAZIO 892 1.021.894 8,6 MARCHE 333 371.393 2,9 SARDEGNA 354 343.132 2,4 TOSCANA 420 570.050 9,2 UMBRIA 201 206.519 1,8 CENTRO+SARDEGNA TOTALE 2.200 2.512.988 24,9 ABRUZZO 256 290.633 1,9 Av Sq Meters BASILICAT A 96 86.528 0,5 CALABRIA 387 389.369 2,1 North West 1.706 CAMPANIA 730 659.272 4,1 MOLISE 44 47.025 0,3 North East 1.293 PUGLIA 710 614.674 3,4 Centre 1.142 SICILIA 818 802.412 4,6 SUD TOTALE 3.041 2.889.913 16,8 South 950 ITALIA TOTALE 9.394 11.636.815 100,0 ITALY 1.239 Source IRI: Top Trade 1° Jan 2015 Growth rate of Italian GDO – (Sales) Decreasing Scenario As Is With new Openings 2012 -1.1% 0.4% 2013 -2.4% -1.0% 2014 -2.2% -1.0% As of Feb ‘15 -0.2% 1.8% Source: Infoscan Census -Totale Iper +Super +LSP – Feb 2015 Agenda 1 The Scenario 2 Italian retailers 3 Private label 4 Assortments and Promotions 5 Discount Retailers Top 5 Retailers in Europe Italy: Lower Concentration -0,2 Edeka Tesco Intermarchè Albert Heijn Mercadona Carrefour Coop Italia ALDI & LIDL Rewe Asda Carrefour Carrefour AB Vasilopoulos Conad (combined) Aldi Sainsbury’s Systeme U Jumbo Grupo Eroski Masoutis Esselunga Markant Morrison Casino Plus Dia% Veropoulos Selex Metro The Co-Operative Leclerq C1000 Auchan Galaxias Auchan Source: IRI, IGD, 2014 vs 2013 % FMCG Turnover Modern Distribution – Market Share of Retailers Italian retailers merge together in larger Central Purchasing Organizations IS Centrale Centrale Centrale Gruppo Catene ESD Italia Esselunga Aicube Bennet Grido Coop Italia Conad-Finiper Auchan Carrefour 12,4% Indipendenti 21,2% 18,6% 17,0% 12,6% 7,0% 5,2% 2,9% 2,6% 0,2% Coop Gruppo Carrefour Gruppo S&C Cons. Selex Conad C3 Italia Auchan Italia Pam Distributori 11,2% 13,7% 17,9% 6,3% 2,0% 0,1% 9,2% 2,7% Gruppo Gruppo Sigma Agorà Finiper Sisa Gulliver Gruppo Briò 2,8% Ve’ Ge’ Rewe 0,1% 3,3% 3,2% 1,8% 0,4% 1,6% 0,4% Catone Disco Verde S.U.N. Crai Despar GDA Group Servizi 1,4% 0,1% 2,4% 0,1% 1,0% 0,2% La Nuova Aspiag Coralis Superconti 0,3% Nave 2,2% 0,1% 0,2% Centrale C.D.S. Gruppo AZ Gruppo 0,1% 0,2% Source IRI: Top Trade 1° Jan 2015 Market shares of retailers and purchasing centrals Total market Retailers COOP ITALIA 17,9 CONAD 13,7 ESSELUNGA 12,4 SELEX 11,2 GRUPPO AUCHAN 9,2 CARREFOUR ITALIA 6,3 SIGMA 3,3 FINIPER 3,2 AGORA' 2,8 GRUPPO PAM 2,7 Purchasing Centrals BENNET 2,6 S.U.N. 2,4 CENTRALE COOP ITALIA 21,2 ASPIAG 2,2 C3 2,0 ESD ITALIA 18,6 SISA 1,8 CENTRALE CONAD-FINIPER 17,0 81.8% GRUPPO VE'GE' 1,6 CENTRALE AUCHAN 12,6 CRAI 1,4 ESSELUNGA 12,4 DESPAR SERVIZI 1,0 GRUPPO REWE ITALIA 0,4 GRUPPO CARREFOUR 7,0 GULLIVER 0,4 AICUBE 5,2 CORALIS 0,3 CATENE INDIPENDENTI 2,9 GDA 0,2 INDIPENDENTI 0,2 BENNET 2,6 SUPERCONTI 0,2 - 0,2 S&C CONS. DISTRIBUTORI ITALIA 0,1 GRIDO 0,2 ALTRI 0,5 Source IRI: Top Trade 1° Gennaio 2015 Market Shares of Retailers Hypermarkets COOP ITALIA 27,9 GRUPPO AUCHAN 15,7 CARREFOUR ITALIA 12,2 BENNET 11,0 FINIPER 9,1 SELEX 8,3 CONAD 7,1 GRUPPO PAM 3,3 AGORA' 1,9 ASPIAG 0,9 C3 0,7 S.U.N. 0,7 DESPAR SERVIZI 0,4 GRUPPO VE'GE' 0,3 GDA 0,2 LA NUOVA NAVE 0,2 CRAI 0,1 Fonte IRI: Top Trade 1° Gennaio 2015 Hypermarkets Slight decrease in number of stores and in market share # OF STORES % MARKET SHARE ON FMCG SALES Source: Universi Grocery IRI 1° Jan 2015 Market Shares of Retailers Supermarkets ESSELUNGA 16,0 CONAD 15,7 COOP ITALIA 15,0 SELEX 12,0 GRUPPO AUCHAN 7,3 CARREFOUR ITALIA 4,6 SIGMA 4,3 AGORA' 3,0 S.U.N. 2,9 GRUPPO PAM 2,5 ASPIAG 2,5 SISA 2,4 C3 2,3 GRUPPO VE'GE' 1,9 CRAI 1,7 FINIPER 1,5 DESPAR SERVIZI 1,1 GRUPPO REWE ITALIA 0,5 GULLIVER 0,5 CORALIS 0,4 INDIPENDENTI 0,3 SUPERCONTI 0,3 GDA 0,3 S&C CONS. DISTRIBUTORI ITALIA 0,2 BENNET 0,2 ALTRI 0,6 Fonte IRI: Top Trade 1° Gennaio 2015 Supermarkets High number of stores and decreasing market share # OF STORES % MARKET SHARE ON FMCG SALES Source: Universi Grocery IRI 1° Jan 2015 Agenda 1 The Scenario 2 Italian retailers 3 Private label 4 Assortments and Promotions 5 Discount Retailers Private Label: a Comparison Market share of PL is lower in Italy than in other EU countries PL Market Share in Euro and vs previous year +0.2 pt - 0.7 pt - 0.5 pt -0.2 pt +0.7 pt 0.0 pt +0.6 pt Sources: Hypermarkets and supermarkets for Spain, Greece, the Netherlands, France and Italy; Kantar Worldpanel Total Market UK 52 w/c September 14 for the UK; hypermarkets, supermarkets and drugstores for Germany. PL is increasing in premium products LCC - PERFORMANCE DEI SEGMENTI DI OFFERTA (GRIGLIA PREZZI) - YTD Dicembre 2014 Mkt Sh Sales TOTAL FMCG: -1,0% Value Value Premium Products 17,5 -0,8 Industrial PL (>130) 15,4 -1,7 Retailer PL (Premium+Bio) 2,0 +6,1 Mainstream Products 77,8 -0,9 High Industrial PL (100-130) 33,7 -6,0 Medium Industrial PL (65-99) 29,1 +6,7 Retailer PL (Linea Insegna) 15,1 -2,2 Premium Price 4,7 -3,1 Industrial PL (<65) 3,4 +3,4 Retailer PL (Premium Price + Other) 1,3 -16,7 Source: IRI InfoScan Census®. Ipermercati + Supermercati + Libero Servizio Piccolo. YTD Dec 2014: 52 weeks ending Dec 28 2014 Agenda 1 The Scenario 2 Italian retailers 3 Private label 4 Assortments and Promotions 5 Discount Retailers # of Sku: increasing in Supermarkets FMCG – AVERAGE NUMBER OF SKU PER STORE Dec 14 vs 13 Dec 13 vs 12 0,6% 2,0% 4,0% 4,6% 2,1% 1,8% 0,4% 2,9% 3,9% 9,3% 3,3% 4,8% Source: IRI InfoScan Census®.