MADE TO TRADE. METRO AG 2011

Transcription

1 MADE TO TRADE. FRUIT IMPORTS IN INDIA - Apples & Beyond Rajesh K Prasad METRO Cash & Carry India Head - Offer Management MADE TO TRADE. METRO AG

2 METRO Cash & Carry The International Leader in Self-service Wholesale Sales of 32 billion in 2012 Over 100,000 employees 700 wholesale centres 29 countries... Source: Annual Report 2012 MADE TO TRADE. Over 5.5. million sq. m. of sales area METRO AG

3 Metro India Presence. Wholesale Centre Year Bangalore 1 & Hyderabad Mumbai Kolkata Hyderabad Ludhiana Mumbai Jalandhar Delhi Jaipur Zirakpur Vijayawada Amritsar Indore Status Feb 2013, Source: Annual Report 2012 MADE TO TRADE. Page 3 15 centres and growing... METRO AG

4 FRUIT IMPORTS IN INDIA Growing at 25% but slowest among Food & Wine import category. US$ 464 million: ,000 metric tonnes 50% duty on Apples 33% (Approx) for most other fruits. India is also the second-largest producer of fruits. Fruit bowl of the world Strongly influencing on global fruit production Aggregate consumer spending will quadruple to $1.4 trillion by 2025 (Mckinsey Global Institute) Imported fruit consumption at about 10% of population (Market feedbacks) 4

5 CONSUMING MORE & MORE Population: 70% below 35 years. Average median age: 24 years High awareness on health Made in XX: Still considered premium. Affordable Premium Food is like religion Imported fruits better in taste, quality & variety Availability & retail infrastructure Imports shelf space: Nil to 10 to 15% Retail penetration in smaller towns/ cities 80% of imports under Food & Wine is Fruits, Vegetables & Nuts Aggressive campaign: Cricket/ Festivals/ Marriages 5

6 APPLE IMPORTS YOY Apples/ Pears/ Quinces > 50% of Imports Third largest importer of American apples Citrus < 8% of imports 6

7 7

8 PREVIOUS STORIES.. AZADPUR MANDI: US EXPORT DOCK: 8

9 PREVIOUS STORIES STORAGE & LOGISTICS IMPORTED STORAGE & LOGISTICS 9

10 PREVIOUS STORIES.. INDIAN APPLES HANDLING IMPORTED APPLES HANDLING 10

11 STORIES CHANGED 11

12 CITRUS OPPORTUNITY OPPORTUNITY: 18% of Oranges Imported (Valencia & Navel) Seasonality & availability of domestic production Improving health awareness Assortment: Mandarins, Tangerines, Small citrus, Grape fruit, Jumbo limes Increasing modern retail chains High demand fruits Risk vs profitability CHALLENGES: Taste requirement - High Sweetness Seasonality at the same time Price & promotions Improving domestic production capability Differentiation: Learning of Apples Storage Infrastructure Hot chain impact Modern Trade vs. Traditional trade 12

13 VARIETY WISE PRODUCTION Oranges Brazil, United States, Mexico, India, Spain, China, Iran, Italy, Egypt, Indonesia. Small Citrus Nigeria, China, Syria, Guinea, Japan, Saudi Arabia, India, Sierra Leone, Angola, Tunisia. Lemons & Limes Mexico, India, Iran, Spain, Argentina, Brazil, United States, China, Italy, Turkey. Grapefruit United States, China, South Africa, Mexico, Israel, Cuba, Argentina, India, Turkey, Tunisia. MADE TO TRADE. METRO AG 2010

14 PEARS: High import potential. Right season impact YOY increase in consumption. Advantage similar to apples. GRAPES: California fresh grapes season starts almost along with the Indian grapes season Availability throughout the year. High HoReCa consumption Future opportunity 14

15 PEACHES, PLUMS & NECTARINS: Strongly associated with health Premium perception Yellow & White flesh Peaches most popular Plums variety adding up: Flavours, Colours & Shapes BERRIES: Wide range of berries: Raspberry, strawberry, blue berry, cranberry gaining popularity Smaller Pack Sizes: 250 Gms are being promoted Frozen berries having one year shelf life offering sustainable solution due to high perishability of fresh. 15

16 KIWI FRUIT: Niche market in India, high on health benefits Sales peaks during marriage season Quantity has doubled since 2010 Italian kiwifruit available during March & April, Chile arrivals from August to September. Sampling & school contracting programs are giving good build up. THAI FRUITS: Mixed fruit container opportunity Rambutan, mangosteen, longan are new trends Tangerine & Dragon fruit gaining popularity Packing solution very crucial Being the tropical fruit, suits the Indian climatic conditions fairly well Newest trends but limited support/ investments. 16

17 METRO CASH & CARRY INDIA: Direct Imports from China, USA, Canada, France. Partners with major importers of India. Working with agencies like SCS, USDA, WAC, CTO, CAC, First international company to operate modern trade in India. 15 Cash & Carry stores, fastest growing International modern trade company. Registered base of 1 Million + customers. Very strong connect with HoReCa customers. Presence among the largest cities & regions in India. 17

18 Thank You! 18