Savid The EU Fresh-cut Fruits and Vegetables Market

Transcription

1 Growing up Savid The EU Fresh-cut Fruits and Vegetables Market London, 15 June Cindy van Rijswick, Food & Agribusiness Research and Advisory Rabobank International

2 After a period of strong organic growth, clear decisions are needed to (re)position yourself 2

3 Rabobank Food & Agribusiness bank Rabobank is a cooperative Rabobank is the largest financial services corporation in the Netherlands Rabobank is an AAA rated financial institution Rabobank has an international food & agri focus Rabobank delivers financial solutions through a network of branches in 41 countries

4 Food & Agribusiness Research and advisory: Global network of research professionals Over 80 people in 12 countries Focus areas: Animal Protein Beverages Clean Tech Dairy New York London Utrecht New Delhi Beijing Shanghai Hong Kong Farm Inputs Mexico City Mumbai Food Retail Singapore Fruits & Vegetables Grains & Oilseeds Sugar & Sweeteners Santiago de Chile Sao Paulo Sydney Melbourne Christchurch Buenos Aires 4

5 Despite the health trend, fruits and vegetables consumption per capita is rather stable 5

6 in particular in western Europe 6 Source: Rabobank FAR based on Euromonitor, 2010

7 Fruit is predominantly bought fresh EU fruit market by segment (based on volume and excluding B2B, 2010) 7 Source: Rabobank estimate, 2010.

8 Vegetables are more often bought prepared or processed EU vegetables market by segment (based on volume and excluding B2B, 2010) 8 Source: Rabobank estimate, 2010.

9 Salads are the largest and earliest fresh-cut segment 9

10 Fresh-cut has been one of the most interesting fruit and vegetable segments in recent years 10 Source: Rabobank FAR estimates based on Amadeus and Euromonitor, 2010.

11 Wide differences in market growth pace among EU countries Growth index prepared chilled salads in selected markets Source: Rabobank based on Euromonitor,

12 Fresh-cut fruit market has left its childhood behind Source: Euromonitor,

13 Long term consumption trends still prevailing, but consumers have become more critical Value for money Well-being (healthy, ethically produced) Indulgence Convenience 13

14 Retail and foodservice environment has become more challenging Further growth opportunities for food retail: Multi-channel approach New locations Expansion abroad Assortments regularly revised Sensitivity to ethical issues to remain high Fresh produce is key Front of retail store High margins Differentiation Food retailers are reconsidering sourcing strategies Source: Rabobank FAR

15 Slow recovery of foodservice turnover Growth foodservice versus consumer confidence Source: Rabobank, CBS,

16 Sourcing will become more critical The fight for food, feed, fibres and fuel 16

17 Competitive playing field in fresh-cut fruits and vegetables still very fragmented and diverse... EU competitive playing field in fresh-cut fruit and vegetables Large dot = company with over EUR 100 mln turnover in Fresh-Cut 17 Source: Rabobank.

18 ...with large differences in profitability EBITDA levels and margins among EU fresh-cut fruits and vegetables producers Source: Rabobank based on Amadues,

19 Companies have to get ready for a new era of growth - Players (mainly Private Label) with close often long term relationships with retail and/or foodservice customers - USPs are product range, service level, innovation Product leadership Customer intimacy Cost leadership - Players with a cost focus, mainly providing discounters, B2B market, or varying buyers with limited product range. - USPs: low product price but good basic quality products - Branded players or players specialised in a niche - USPs are brand, marketing, unique product 19

20 There will be fewer but larger and stronger players in the future fresh-cut industry Branded private label Continuing market growth Various opportunities:, CSR, product portfolio, distribution, quality To gain opportunities: - Sourcing - Efficiency - Tailored products Scale and/or financial strength more important National market presence versus European 20

21 Thank you for your attention Rabobank Leading the pack in global F&A 21