""

Required Report - public distribution

**Date:** 12/23/2003

**GAIN Report Number:** SP3041

SP3041

**Spain**

**Retail Food Sector**

**Report**

**2003**

**Approved by:**

![](media/image1.wmf)Lloyd J. Fleck

U.S. Embassy

**Prepared by:**

Magdalena Escudero

**Report Highlights:**

The pace of consolidation of Spain's retail food sector seems to be
quickening. Medium- sized supermarkets in center city locations are
taking market share from both traditional shops and suburban
hypermarkets. The top three retail groups now account for just under
half of total sales. This competition, combined with the fall of the
dollar against the euro, is creating good conditions for U.S. food
exporters. Many supermarket chains are looking for new sources for their
private label brands and U.S. products are more price competitive than
at any time during the past five years.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Madrid \[SP1\]

\[SP\]

# Table of Contents

[I Market Summary 3](#i-market-summary)

[Types of outlets in Spain 4](#types-of-outlets-in-spain)

[SWOT for U.S. grocery products 7](#swot-for-u.s.-grocery-products)

[II. Road Map for Market Entry 8](#ii.-road-map-for-market-entry)

[Entry Strategy 8](#entry-strategy)

[Distribution Channels 8](#distribution-channels)

[III. Competition 9](#iii.-competition)

[IV Best Products Prospects 11](#iv-best-products-prospects)

[V. Post Contact and Further Information
11](#v.-post-contact-and-further-information)

# I Market Summary

The Spanish food distribution sector, like those in other EU countries,
has reached maturity and is becoming more concentrated and specialized.

The decline in the number of traditional outlets (which includes
neighborhood "Mom and Pop" food shops) seems to be accelerating; by
2005, only half of the traditional outlets currently operating are
expected to be in business. Spain's skyrocketing real estate prices are
forcing up rental costs in many city-center locations; only shops with
substantial sales can survive in this environment. Consequently,
traditional outlets, which currently make just under a third of food
sales, are likely to see further sharp declines in the next few years.
The shops best positioned to survive are those selling fresh products
(fruit, vegetables, meat and fish), which currently hold just under half
of all sales in this category.

At the other end of the retail sector, hypermarkets are also feeling
pressure; their market share of food sales continued to decline in 2002,
falling to 17.5 percent of the total. While sales in hypermarkets are
growing -- reaching €17.32 billion in 2002 -- they are not keeping up
with the pace of sales in supermarkets. This may reflect the continued
expansion of consumer income and employment during the past few years.
Many consumers are unwilling to fight traffic to reach suburban
hypermarkets, preferring to trade lower prices for the convenience of
shopping nearer to home. In addition, hypermarkets face government
restrictions on the number of new locations that can be opened.

The supermarkets, which hold the middle of the retail sector, are
currently best positioned to gain market share. In 2002, they took a
record 42 percent of total food sales; their total sales reached €36.30
billion, up eight percent from the previous year. Within the supermarket
categories, the medium-sized stores (those with an area of between 401
and 1,000 square meters) are doing particularly well. They are often
located in urban centers, where traditional markets are failing, yet are
large enough to offer a substantial variety of products on their
shelves. In addition, many of these medium-sized supermarkets are part
of integrated, nationwide retail chains that include a range of
locations, from large, full service supermarkets to food marts attached
to gas stations. As a part of these retail chains, the mid-sized
supermarkets enjoy centralized buying that permits them to be very price
competitive.

The concentration of market share into fewer hands is having
repercussions on the farm. Food producers claim that the increasing
buying power of the big retail groups allows them to exact lower prices
from farmers and manufacturers. To allow consumers to be aware of
sellers' margins, some farmers' organizations have called for a labeling
system that would show the farm price as well as the retail sale price
of any fresh product. The food retailers reply that they are facing
fierce competition, lower prices, and narrower profit margins. Since
October 2003, the Spanish Ministry of Agriculture has used its web page
to post the price evolution of some basic products: this includes the
price paid to farmers, price in the wholesale market and that paid by
consumers.

While consumption patterns have changed along with the structure of the
retail industry, many consumers still prefer to make frequent purchases
at neighborhood supermarkets and traditional fresh product outlets
particularly for bread, fruit, seafood or meat products. They generally
venture to hypermarkets weekly or monthly to buy non-perishable
products. As a result of this purchase pattern, the number of
medium-sized supermarkets is growing. Large food distribution groups
continue to open more medium size supermarkets.

The hypermarkets are reacting to their loss of market share by offering
more \"personalized\" products and services, including areas offering
gourmet foods, snacks, high quality fruits and vegetables and
ready-to-eat products. The hypermarkets are also pushing \"home meal
replacement\" of high value-added products to pump up sales.

Total food production by the food processing industry in 2002 was valued
at €58.5 billion, an increase of 4.1 percent in value, and a three
percent in volume. Spanish consumers spent €66.2 billion on food, an
increase of 1.9 in volume and 7.8 in value. (The difference between
production and consumption can be explained by the fact that not all
fresh fruits and vegetables are processed and that imports and exports
of processed foods are also taken into account.) In 2002, total exports
of processed food products reached €11.9 billion, (a 2.4 percent
increase), while imports totaled €14 billion (four percent higher than a
year earlier).

Total grocery sales in 2002 through food distribution chains or groups
were €44.8 billion, a 7.9 percent increase from the previous year.
Another €16.5 billion, or about 27 percent of total food expenses, took
place through the HRI sector, a ten percent jump from 2001.

As noted before, market share is becoming more concentrated each year.
In 2001, the ten largest retail groups had a market share of 66.6
percent of the food market; in 2002, their share grew to 68.6 percent.
The three largest groups (Carrefour, Mercadona and Eroski) now account
for nearly 48 percent of total sales.

There is a Serengeti-like atmosphere in Spanish food retailing: the slow
and the weak become tomorrow's meal for the strong and aggressive.
During the past year, the Barcelona-based group Caprabo bought the
smaller retailer Alcosto, which is based in Central Spain. A more
noticeable casualty was Group Ahold, whose Dutch parent company has
suffered financial problems during the past year; the Group has just
announced its intention to leave the Spanish market. Although Ahold
expects to have a firm candidate in a few months, no potential buyer has
yet announced its intention to purchase either the whole group or parts
of it. The Spanish press has speculated that Alholt's sale would provide
a market entrée for the U.K's largest supermarket chain, TESCO or even
for the ultimate retail predator, Walmart.

Currently, the typical Spanish consumer can be characterized as more
health conscious, demanding more information about products and placing
a premium on quality and services. According to the Ministry of
Agriculture, in 2002, consumption of fruits, olive oil, seafood, meat,
quality wine, and ready-to-eat food increased, while dairy products,
pulses, eggs, vegetables and potatoes declined.

## Types of outlets in Spain

> **Discount:** These self-service outlets carry a limited range of
> products compared to supermarkets or hypermarkets, but at lower
> prices. Products displays are basic compared to other types of
> outlets. There are about 3,026 hard discount stores in Spain. DIA,
> owned by Carrefour, is the leader in this market sector; it increased
> its sales by 6.7 percent in 2002. Other main players in this sector
> are LIDL and ALDI.
>
> **Hypermarkets:** These are self-service stores with a minimum selling
> area of 2,500 square meters. They are usually located outside town
> centers. Like supermarkets, they sell a wide variety of food and
> non-food items. At the end of 2002 there were 343 hypermarket outlets.
> This market sector is constrained by laws approved by the Spanish
> government limiting the number of new hypermarkets. In 2002 total
> sales in hypermarkets went up by 7.4 percent, reaching €17.32 billion;
> of this amount, Carrefour holds about 35 percent of the total. Due to
> the restrictive laws regarding the opening of new hypermarkets during
> 2002, only 11 new hypermarkets were opened.
>
> **Supermarkets:** These are self-service stores with a minimum selling
> area between 400 and 2,499 square meters. They are usually located in
> city centers and sell a wide variety of foods and non-food items. At
> the end of 2002 there was total of 13,720 supermarkets -- a 17-percent
> gain over the previous year. Supermarkets are sub-divided into three
> categories depending the total sales area: small (100 to 400 sq.
> meters), medium (401 to 1,000 sq. meters) and large (1,001 to 2,499
> sq. meters). Medium-sized supermarkets seem to be the fastest growing
> sector in food retailing. The largest supermarket chain, Mercadona,
> alone inaugurated 100 new outlets in 2002. The other main players in
> this sector are Eroski and Caprabo.

**Number of supermarkets by size**

  ------------------- ---------- ---------- ---------- ---------- ------------------
  **Size sq meters**  **1999**   **2000**   **2001**   **2002**   **Increase 02/01**

  **100 -- 400        8,252      8,169      8,032      7,811      \- 3 %
  meters**                                                        

  **401 -- 1,000      3,332      3,574      3,801      4,027      \+ 6%
  meters**                                                        

  **1,000 -- 2,500    981        1,137      1,342      1,539      \+ 15%
  meters**                                                        
  ------------------- ---------- ---------- ---------- ---------- ------------------

**Convenience Stores:** Convenience stores are generally located in the
centers of small-to-medium-sized towns. Many are located in small areas
in gas stations. Spanish law defines a \"convenience store\" as the
outlet with a maximum area of 500 sq. meters, opened to the public every
day during 18 hours, offering a wide variety of products that includes
food, books, newspapers, presents and toys. There are about 5,600 of
these outlets.

Convenience stores can be divided in two types: those linked to gas
stations (where food and beverages account for nearly half of total
sales); and those located in urban areas, (where food and beverages make
up only about a quarter of the total). The El Corte Ingles group is
fueling growth in this sector. Its \"Opencor\" outlets in urban areas
are among the largest convenience stores, stocking up to 6,000 items. In
addition, its recent agreement with Grupo Repsol, Spain's largest
gasoline distributor, will give El Corte Ingles access to nearly 2,500
gasoline stations. According to the trade press, sales of food and
beverages in convenience stores located in gas stations are expected to
increase by 4.1 percent annually through 2007. Due to the lower margins
for fuels, owners of gas stations are looking to food sales to diversify
their sources of income.

**Cash & Carries**: These outlets generally supply the HRI sector,
although many smaller retailers can also be found among their customers.
There are around 800 outlets, with total sales in 2002 of about €4
billion. While the average is size is around 2,000 sq meters, there are
49 "mega" cash & carries with an area of at least 5,000 sq. meters. The
largest cash & carry is Makro, followed by Gros Mercat and Punto Cash.

**Traditional outlets:** Traditional outlets include several types of
shops, including corner grocery stores, bakeshops, neighborhood butcher
shops, fishmongers, open air markets and frozen and gourmet food stores.
Although the continuous expansion of mass distribution outlets threatens
these traditional outlets, there were about 43,193 stores at the end of
2002, with a market share of about a third of total retail food sales.

**Table I - Number of Retail Outlets**

  ------------------------------------------------------------------------------------------------
  *Type of Outlet/Year*                **1999**       **2000**       **2001**       **2002**
  ------------------------------------ -------------- -------------- -------------- --------------
  **Traditional + Self-Service \> 100  54,448         48,849         45,569         43,193
  sq. meters**                                                                      

  **- Supermarket: 100 to 400 sq.      8,252          8,169          8,032          7,811
  meters**                                                                          

  **- Supermarket: 400 to 1000 sq.     3,332          3,574          3,801          4,027
  meters**                                                                          

  **- Supermarkets: 1000 to 2500 sq.   981            1,137          1,342          1,539
  meter**                                                                           

  **Total Supermarkets 100 - 2,500 sq. ***12,565***   ***12,879***   ***13,175***   ***13,720***
  meters**                                                                          

  **Hypermarkets**                     306            318            332            343

  **Grand TOTAL**                      ***67,319***   ***62,046***   ***59,076***   ***57,256***
  ------------------------------------------------------------------------------------------------

Source: AC Nielsen

**Table II - Percentage of Total Food Sales**

**by Type of Outlet and Product sold**

+---------------+-------------------+-----------------+----------------+
| Type of       | Fresh Products    | Dry Products    | Total          |
| outlet        |                   |                 |                |
|               | 2002 (2001)       | 2002 (2001)     | 2002 (2001)    |
+===============+===================+=================+================+
| Hypermarkets  | 10.9 % (11.4%)    | 23.9 % (24.8 %) | 17.5 % (18.3   |
|               |                   |                 | %)             |
+---------------+-------------------+-----------------+----------------+
| Supermarkets  | 30.1 % (30.3 %)   | 54.2 % (53.6 %) | 42.3 % (42.2   |
|               |                   |                 | %)             |
+---------------+-------------------+-----------------+----------------+
| Traditional   | 47.7 % (48.8 %)   | 14.5 % (14.8 %) | 30.9 % (31.3   |
|               |                   |                 | %)             |
+---------------+-------------------+-----------------+----------------+
| Other         | 11.3 % (9.5 %)    | 7.4 % (6.8 %)   | 9.3 % (8.1 %)  |
+---------------+-------------------+-----------------+----------------+

Source: Spanish Ministry of Agriculture

**Table III - Market Share of Supermarkets/Hypermarkets, by Product**

> **(Percent)**

+---------------------+----------+-------------+-----------+----------+
| *Product*/Outlet    | **Hyperm | **S         | **Sup     | **Supe   |
|                     | arkets** | upermarkets | ermarkets | rmarkets |
|                     |          | 1,001-2,500 | 401-1,000 | 100-400  |
|                     |          | sq.m**      | sq.m**    | sq.m**   |
+=====================+==========+=============+===========+==========+
| **Food &            | **29.5** | **20.3**    | **28.0**  | **22.2** |
| Beverages**         |          |             |           |          |
|                     | 27.6     | 20.3        | 28.4      | 23.7     |
| **- Dry Products**  |          |             |           |          |
|                     | 33.4     | 20.6        | 26.3      | 19.7     |
| **- Beverages**     |          |             |           |          |
|                     | 29.8     | 21.1        | 27.6      | 21.5     |
| **- Canned Prod.**  |          |             |           |          |
|                     | 26.9     | 19.0        | 30.1      | 24.0     |
| **- Milk & flavored |          |             |           |          |
| milks**             |          |             |           |          |
+---------------------+----------+-------------+-----------+----------+
| **Fresh Products**  | **25.0** | **21.7**    | **28.7**  | **24.6** |
|                     |          |             |           |          |
| **- Dairy           | 22.7     | 19.3        | 30.1      | 28.0     |
| Products**          |          |             |           |          |
|                     | 27.2     | 22.6        | 26.4      | 23.9     |
| **- Frozen          |          |             |           |          |
| Products**          | 18.8     | 21.2        | 32.2      | 27.7     |
|                     |          |             |           |          |
| **- Meat & Eggs**   | 25.3     | 20.7        | 28.7      | 25.3     |
|                     |          |             |           |          |
| **- Cheeses**       | 27.5     | 25.8        | 27.9      | 18.8     |
|                     |          |             |           |          |
| **- Ready-to-eat    | 27.8     | 25.2        | 28.2      | 18.9     |
| Products**          |          |             |           |          |
|                     |          |             |           |          |
| **- Cured meats**   |          |             |           |          |
+---------------------+----------+-------------+-----------+----------+

+-----------------------------------+-----------------------------------+
| #                                 |                                   |
| ## SWOT for U.S. grocery products |                                   |
+===================================+===================================+
| **Strengths**                     | **Weaknesses**                    |
+-----------------------------------+-----------------------------------+
| U.S. food products are            | The product has to be labeled in  |
| appreciated for their novelty     | Spanish                           |
+-----------------------------------+-----------------------------------+
| Many U.S. products have a         | Not all the products are in line  |
| reputation for quality            | with the Spanish taste            |
+-----------------------------------+-----------------------------------+
| Attractive packaging              | Need large investment to promote  |
|                                   | new products                      |
+-----------------------------------+-----------------------------------+
| Many niche markets for some U.S.  | Lack of knowledge of many U.S.    |
| products                          | brands                            |
+-----------------------------------+-----------------------------------+
|                                   |                                   |
+-----------------------------------+-----------------------------------+
| **Opportunities**                 | **Threats**                       |
+-----------------------------------+-----------------------------------+
| The American life style is        | Stiff competition from similar    |
| popular among the younger         | food products produced in other   |
| generation.                       | EU countries.                     |
+-----------------------------------+-----------------------------------+
| Many TV shows and films show U.S. | Import duties increase U.S.       |
| food products.                    | product final price.              |
+-----------------------------------+-----------------------------------+
| Spanish consumers want to try new | EU GMO labeling regulations.      |
| and quality products.             |                                   |
+-----------------------------------+-----------------------------------+
| Decline of US\$ against the euro  | Transportation costs.             |
+-----------------------------------+-----------------------------------+

# II. Road Map for Market Entry

## Entry Strategy

As stated above, the retail market in Spain is very concentrated. It is
very difficult for an individual exporter to establish direct relations
with the firms that control most of the business as they prefer to deal
with their customary importers/distributors. Furthermore, in general,
they do not import the products directly, so it is essential that U.S.
exporters wishing to crack this market establish relationships with
their distributors. The new-to- market exporter should find an importer,
agent or wholesaler that will do customs clearances and will advise on
compliance with labeling, packaging, and sanitary regulations. Some
supermarket chains, however, are directly importing certain products,
such as bulk walnuts or pulses, to be repacked in their warehouses.

An important method for finding an importer, agent or distributor for
U.S. products is to exhibit at trade shows. Alimentaria, held every
other year in early March in Barcelona (and in Lisbon in the alternating
years), is the leading food show in Iberia and an excellent venue for
introducing a new product and for meeting potential clients and
establishing relationships. The next Alimentaria will be held in
Barcelona during March 8 -- 12, 2004. As in past years, there will be a
U.S. pavilion at the show. For further details, contact the FAS office
in Madrid.

A show devoted to organic products, Biocultura, is held every year in
Madrid during the first week of November.

## Distribution Channels

Most fresh products, especially seafood, fruits and vegetables, are
distributed through 22 public wholesale markets located around Spain. In
the larger cities, the big grocery retail chains have their own buyers
in these markets, which buy and receive fresh product from wholesale
companies for delivery directly to supermarkets.

Purchases of grocery products are managed directly by each group.
Distribution companies or chains request that the products they purchase
be delivered to their platforms or warehouses and then are distributed
to each outlet.

**Table IV - Company Profile - Main Food Distribution Companies - 2002**

+------------------+-------------+----------------+--------------------+
| **Name of        | **          | **Sales in**   | **Purchasing       |
| Outlet**         | Ownership** |                | Type**             |
|                  |             | **Billion      |                    |
|                  |             | Euros**        |                    |
+==================+=============+================+====================+
| Euromadi Iberica | Spanish     | 10.14          | Im                 |
|                  |             |                | porter/Distributor |
+------------------+-------------+----------------+--------------------+
| IFA Española     | Spanish     | 9.34           | Im                 |
|                  |             |                | porter/Distributor |
+------------------+-------------+----------------+--------------------+

**Table V - Company Profile - Main Grocery Retail Chains - 2002**

+-------------------+-----------+--------+--------+-------------------+
| **Retailer Name** | **Ow      | *      | **     | **Purchasing      |
|                   | nership** | *Sales | Number | Agent Type**      |
|                   |           | in     | of**   |                   |
|                   |           | B      |        |                   |
|                   |           | illion | **Out  |                   |
|                   |           | E      | lets** |                   |
|                   |           | uros** |        |                   |
+-------------------+-----------+--------+--------+-------------------+
| Grupo Carrefour   | French    | 10.32  | 1,838  | Impor             |
|                   |           |        |        | ter/Distributor - |
|                   |           |        |        | Direct            |
+-------------------+-----------+--------+--------+-------------------+
| Mercadona         | Spanish   | 5.38   | 681    | Importer - Direct |
+-------------------+-----------+--------+--------+-------------------+
| Eroski            | Spanish   | 4.68   | 1,403  | Impor             |
|                   |           |        |        | ter/Distributor - |
|                   |           |        |        | Direct            |
+-------------------+-----------+--------+--------+-------------------+
| El Corte Ingles   | Spanish   | 3.78   | 188    | Impor             |
| (Grupo)           |           |        |        | ter/Distributor - |
|                   |           |        |        | Direct            |
+-------------------+-----------+--------+--------+-------------------+
| Auchan (Alcampo)  | French    | 3.48   | 151    | Imp               |
|                   |           |        |        | orter/Distributor |
|                   |           |        |        | -Direct           |
+-------------------+-----------+--------+--------+-------------------+
| Ahold             | Dutch     | 2.06   | 588    | Imp               |
|                   |           |        |        | orter/Distributor |
+-------------------+-----------+--------+--------+-------------------+
| Caprabo           | Spanish   | 1.84   | 549    | Imp               |
|                   |           |        |        | orter/Distributor |
|                   |           |        |        | -Direct           |
+-------------------+-----------+--------+--------+-------------------+
| Lidl              | German    | 1.05   | 354    | Impo              |
|                   |           |        |        | rter/Distributor- |
|                   |           |        |        | Direct            |
+-------------------+-----------+--------+--------+-------------------+
| MAKRO             | Dutch     | 1.05   | 25     | Impor             |
|                   |           |        |        | ter/Distributor - |
|                   |           |        |        | Direct            |
+-------------------+-----------+--------+--------+-------------------+
| Grupo El Arbol    | Spanish   | 0.79   | 589    | Impor             |
|                   |           |        |        | ter/Distributor - |
|                   |           |        |        | Direct            |
+-------------------+-----------+--------+--------+-------------------+

# III. Competition

The Spanish food industry is highly developed and competitive. Spain is
a major food producer, offering an increasing range of processed
products. Large distribution chains and supermarkets have their own
private label brands and offer good quality products at lower prices
than traditional brands. In addition to the domestic sector, neighboring
EU countries, the source of most food imports, offer a generous supply
of competitive products. In addition to these price and logistical
advantages, food distributors generally source their products from
Spanish producers or from other EU markets, because they are also
familiar with EU regulations.

U.S. exports of consumer-oriented products to Spain totaled \$174.8
million in 2002. Some 80 percent the category consists of one group of
products \-- tree nuts -- virtually all of which are imported in bulk
and further processed. During the period January-October 2003 sales of
treenuts to Spain have increased by 38.6 percent. Another category with
strong prospects is seafood products. Although sales were off slightly
in 2002, reaching only \$68.9 million, sales during the period
January-October 2003 have increased by 29.7 percent; sales for the
entire year should be at a record level. The recent increase of U.S.
product sales to Spain has been enhanced by the decline of the U.S.
dollar against Spain's currency, the euro. In the entire year of 2002,
the dollar was worth €1.05. At the end of 2003, the dollar is worth only
€0.81. From the perspective of Spanish buyers, U.S. products are now
about 25 percent cheaper than they were in 2002. So long as the dollar
remains weak against the euro, U.S. exporters have an excellent
opportunity to sell into the Spanish market.

**- Private Label**

Sales of products under a retail distributor's label have had robust
growth recently. In 2001, private label sales reached €4.9 billion, or
about a fifth of total grocery sales. Private labels will likely
continue to grow as distributors try to capture higher sales margins in
a tough competitive environment. On average, private label products are
around 36 percent cheaper than branded products.

The focus of private label marketing has also been evolving. When first
introduced, private label products were designed to be highly price
competitive with established brands. As they gained consumer acceptance,
however, retailers began to upgrade quality and packaging. This concept
has now evolved the so-called \"fourth generation\" of private label
\"premium quality\" products that can compete with market leading
brands. Distribution chains very often work with small companies that
can provide a good product at a competitive price. However, as they
upgrade their products, they also work with producers of high quality
goods.

There are a couple of reasons private labels offer opportunities for
U.S. exporters of grocery products. First, private labels are the
fastest growing segment of the Spanish food distribution sector and
retailers are looking for new sources for their branded products.
Second, it takes a considerable marketing budget to introduce a new
brand into this market, which restricts many small-to-medium sized U.S.
exporters. By producing for a private label, U.S. exporters avoid
marketing costs and distribution problems, which are both handled by the
retail chain.

Private labels still have room for growth in Spain, given that their
market share is still below that of private labels in other European
countries. For example, Grupo Carrefour's private label products
represent only 18 percent of its total sales; those of EROSKI, 25
percent; Caprabo, 10 percent; and 35 percent for Mercadona. Private
labels have a larger share in the discount distributors, reaching 60
percent at DIA and even higher at Lidl and Tengelmann.

Products with higher sales under private labels include dairy products,
vegetable oil, canned seafood, canned vegetables, bread and pastry,
breakfast cereal, nougat, fresh products, snacks and nuts.

**Sales of \"Private Label\" products by type of outlet**

  -----------------------------------------------------------------------
  *Type of Outlet*                                     *Percentage*
  ---------------------------------------------------- ------------------
  Supermarket: 100 to 400 sq. meters                   29.7

  Supermarket: 401 to 1000 sq. meters                  28.7

  Supermarket: 1,000 to 2,500 sq. meter                29.0

  Hypermarket                                          15.7
  -----------------------------------------------------------------------

# IV Best Products Prospects

A. U.S. products present in the market that have good sales potential
are as follows:

Seafood in general, and lobster, whiting, squid, cod, tuna, salmon, in
particular

> Treenuts: almonds and walnuts Pet foods
>
> Tex-Mex products Bourbon
>
> Ready-to-eat products Cake mixes & pancake flour

B. U.S. products not present in significant quantities but which have
good sales potential are as follows:

> Quality fresh fruit: pink grapefruit, apples Surimi
>
> Processed fruit & vegetables and juices Premium beer
>
> Snacks

C. U.S. products not present because they face significant barriers:

All poultry and red meat products.

# V. Post Contact and Further Information

American Embassy Madrid

Foreign Agricultural Service

PCS 61 - (Box 20)

APO AE 09642

Phone: 34 91 411 89 31

Fax: 34 91 564 9644

E-mail: [AgMadrid@fas.usda.gov]{.underline}

For further information, check the \"Agricultural Affairs\" home page on
the U.S. Embassy Madrid web site: [http://www.embusa.es]{.underline} or
[http://www.fas.usda.gov]{.underline} then look under countries -- Spain

Euromadi Iberica: [www.euromadi.es](http://www.euromadi.es/)

IFA Española, S.A.: wwwgrupoifa.com

Ahold: [www.ahold.com](http://www.ahold.com/)

Alcampo, S.A.: [www.alcampo.es](http://www.alcampo.es/)

Caprabo (Grupo): [www.caprabo.com](http://www.caprabo.com/)

Carrefour (Grupo): [www.carrefour.com](http://www.carrefour.com/)

DIA, S.A.: [www.dia.es](http://www.dia.es/)

El Corte Inglés, S.A.:
[www.elcorteingles.es](http://www.elcorteingles.es/)

Grupo Eroski: [www.eroski.es](http://www.eroski.es/)

Lidl Supermercados, S.A.: [www.lidl.es](http://www.lidl.es/)

Makro, S.A.: [www.makro.es](http://www.makro.es/)

Mercadona, S.A.: [www.merecadona.es](http://www.merecadona.es/)

NOTE: Average exchange rate: 2001 - \$US 0.89 = € 1.00

2002 - \$US 0.95 = € 1.00

Average expected for 2003 - \$US 1.08 = € 1.00

Current exchange rate: - \$US 1.24 = €1.00