Growing the success of Irish food & horticulture

AIDAN COTTER

CHIEF EXECUTIVE

BORD BIA

28 JANUARY 2009

Growing the success of Irish food & horticulture

Stephanie Moe

Bord Bia Amsterdam 13th November 2014

The Netherlands Market Overview

Growing the success of Irish food & horticulture

Market Facts 2nd largest agricultural exporter in the World

4th largest economy in EU

7th largest economy in the World

Rotterdam 2nd largest port in the World

#1 exporter of cut flowers in the World

Half the size of Ireland with over 3 times the

population

¼ of the Netherlands below sea level

Growing the success of Irish food & horticulture

Demographics

Population 16.8 million

Land Area 41,543 sq km; 405 people per sq Km

Highest population density: Ranstad: 50km catchment area

incorporating Amsterdam, The Hague & Rotterdam – 7m people

7.2 million households

Total Foreign Community 3.2 million

Percentage of population 18-64 : 63%

Head of State: King Willem; Prime Minister: Mark Rutte

Growing the success of Irish food & horticulture

Dutch Economy

GDP € 603bn (€164 bn Ireland)

GDP growth 2014 of 0.7%

Inflation 1.1%

Unemployment 8.0% -down from 8.3% in

2013

Percentage of income spent on food 11.4%

Ireland =7.5% same period (2010)

Agri-food industry contributes €48bn to Dutch

GDP

Growing the success of Irish food & horticulture

Basis: GfK Consumentenvertrouwen

-16 -17

-48

-51

-22

-12

-60

-50

-40

-30

-20

-10

0

10

Feb

-09

Apr-

09

Ju

n-0

9

Aug

-09

Oct-

09

De

c-0

9

Feb

-10

Apr-

10

Ju

n-1

0

Aug

-10

Oct-

10

De

c-1

0

Feb

-11

Apr-

11

Ju

n-1

1

Aug

-11

Oct-

11

De

c-1

1

Feb

-12

Apr-

12

Ju

n-1

2

Aug

-12

Oct-

12

De

c-1

2

Feb

-13

Apr-

13

Ju

n-1

3

Aug

-13

Okt-

13

De

c-1

3

Feb

-14

Eurocrisis

Consumer confidence has improved in 2014, return to 2010 levels

Growing the success of Irish food & horticulture

Key Irish Food & Drink Exports

Growing the success of Irish food & horticulture

Growing the success of Irish food & horticulture

Irish Beef in the Netherlands

Growing the success of Irish food & horticulture

Image of Ireland

Growing the success of Irish food & horticulture

Irish Suppliers to the Dutch Market

Growing the success of Irish food & horticulture

Dutch Food Market

Growing the success of Irish food & horticulture

Dutch Retail Landscape

• Small stores &

assortments

• Low # facings – high

order frequency

• JIT logistics

• Private label - c. 28% &

growing, tiered offering

• Price promos account for

18%

Source IGD

Growing the success of Irish food & horticulture

Store Numbers

Growing the success of Irish food & horticulture

Relatiefhoge

service-graad

Relatieflage

service-graad

Relatiefvoordelig

Relatiefonvoordelig

MiddenService

Discount / Prijs

Dutch Supermarket Positioning

Low

service

High

service

Low

pricing

High

pricing

Growing the success of Irish food & horticulture

Private Label Development in NL

1999 – 2011

Spain: 20% - 49%

Germany: 27% - 41%

France: 22% - 36%

Italy: 12% - 20%

Belgium: 35% - 40%

Netherlands: 21% - 28%

Source:PLMA

Growing the success of Irish food & horticulture

Foodservice

Four national players in the market which

represent 10%-15% of the marketplace:

-Deli XL

-Sligro

-Makro (Metro)

-Hanos

Accounts for 35% of household food spend

HoReCa Segmentation:

EUR15.1bn

22% 19% 16%20% 10% 13%

0% 100%

QSR FSR CAFÉS/BARS HOTELS “ON-THE-GO” “CATERING”

Growing the success of Irish food & horticulture

Value

Specialist

Broadline

Premium/Service

Foodservice

Source: Pro-Intal

Growing the success of Irish food & horticulture

Why the Netherlands? –Opportunities for

Ireland

Language

Dense Population

Open to International Trade (Ireland = positive)

Stepping Stone to rest of Europe

Similarities to UK/Ireland

Straight-forward attitude to doing business

Growing the success of Irish food & horticulture

Understanding the Dutch Consumer

Growing the success of Irish food & horticulture

Understanding the Country

• Large suburban middle class

• Population density / Space

• Calvinist influence

• Average Household size is 2.2 (Ireland 2.7).

• Smaller more frequent shopping (x3 week)

• Preference for convenience: pre-chopped veg,

prepared meat, sliced cheese.

• Strict Planning Restrictions (& hours)

Growing the success of Irish food & horticulture

Market Trends

Culy.nl

Growing the success of Irish food & horticulture

How to ‘Go Dutch’

Careful Planning: meeting times & agenda

Must be frank and open –no ‘maybe’

Possible to start small

Must deliver on promises/follow-up

Persistence can pay-off …..stay on their radar

Find a customer suited to your size (not all

about targeting the biggest players)

Growing the success of Irish food & horticulture

Product Suitability

Understand your Category and how usage

occasions may differ

Small pack sizes preferable

Convenience is key

Language requirements

Ethnic Communities

Growing the success of Irish food & horticulture

Challenges in the Dutch Market

Average selling space of 784 m2

• Small assortments

• (1 facing high order frequency)

• New listing means de-listing

• Small outer cases

• Just in time (JIT) logistics

• Short order lead time

Growing the success of Irish food & horticulture

Pricing and Logistics Customer will work from delivered cost

Need to factor in product costs, your margin, excise and logistics

costs –will vary depending on product type and service level

required

Strong logistics in place – regular deliveries expected. CDC

common. Single/multi-drop.

Distributor/direct? Retailers increasingly seeking direct supply

(price, access to innovation)

VAT (BTW): 6% on food, 21% non-food/luxury

No listing Fees (but marketing contribution expected for branded)

Retailer margins: Diff methods of calculation so vary per retailer,

also by category and branded v PL

Growing the success of Irish food & horticulture

Sustainability –the Dutch perspective

• Dutch spent €2.5 billion on

sustainable food in 2013 (+

€257 million / +10.8%)

• Retailer focus on sustainability

increased

• Focus on sustainability in

foodservice is growing with

consumers (Organic &

Fairtrade items)

• Recycling Prevalent

• Waste in general frowned upon

(thuisafgehaald.nl /

shareyourmeal.net)

Growing the success of Irish food & horticulture

Marketplace International Targets

• 14 Dutch buyers to include

retail/foodservice/distributors

• Across the following categories:

Sector Buyer Target

Alcoholic Drinks 2

Consumer Dairy 2

Seafood 2

Frozen 2

Confectionery/Snacks 1

Grocery 2

Bakery 2

Chilled 1

Growing the success of Irish food & horticulture

Bord Bia Amsterdam Services

Market Study Visit: 17th February 2015

Information on target companies

Local store audits and market data

Buyer contact lists

Note: Small office – advance notice preferable for

queries

Growing the success of Irish food & horticulture

For Further Information:

Stephanie Moe / Aonghus Ó Drisceoil

Bord Bia Amsterdam

World Trade Centre

Strawinskylaan 1351

1077 XX Amsterdam

Netherlands

Tel: +31 20 754 6969

Mail: amsterdam@bordbia.ie

Web: www.irishbeef.nl