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Food retail specifics CEE & the Baltic States

Food Retail Specifics CEE

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Page 1: Food Retail Specifics CEE

Food retail specificsCEE & the Baltic States

Page 2: Food Retail Specifics CEE

Quick Facts about the CEE region PopulationThe largest countries:

Russia: 143.6 mil.

Turkey: 75.62 mil.Ukraine: 45.48 mil.Poland: 38.53 mil.Romania: 20 mil.Czech Republic: 10.5 mil.

total population of the region

404.7 M∼

Page 3: Food Retail Specifics CEE

Food Supply Chain in CEE markets

In different countries the supply chain can have its local specifics:

● In large markets major retailers work through a number of local distributors located in different regions

● Some large retailers order certain products from producers directly, especially in small markets● Importers/ distributors deliver to retailers avoiding a wholesaler● Some retail networks work through their preferred distributor/s ONLY● Many large retailers and also distributors have very strict requirements for product suppliers

(special forms to be completed, quality tests run etc., before they decide whether to accept your product)

Page 4: Food Retail Specifics CEE

Food retail specifics and market trends in CEE

• While in Western Europe the majority of foods is distributed to the end customer through modern retail formats, in some CEE countries (e.g. Russia, Ukraine, Belarus), the major distribution channel for some products is still open markets, kiosks etc.

• At the same time, from year to year modern retail formats capture a bigger market share

• In Poland, the Czech Republic, Slovenia, Slovakia, Baltics and some other CEE countries modern retail formats prevail but open markets can not be ignored as they still account for a considerable share in food distribution

Page 5: Food Retail Specifics CEE

What to expect from buyers in CEE• In some countries getting your product to retail chains

can be a challenge for various reasons

• Negotiation experience with major retail chains is often not very pleasant for suppliers

• Payment terms vary from country to country but as a rule, payments are made in 30-45 days. However, some retail chains can delay payments for up to 120 days

• Delivery terms. Products are usually delivered to Retailer’s Central Warehouse. In some cases, it is the supplier’s obligation to organise product deliveries to every single store. In such case, deliveries are made to the Distributor’s Central Warehouse.

• Well-established personal contact is important. At the same time, Purchasing Managers get replaced quite frequently

• Price is often the main decisive factor