Required Report - Public distribution

**Date:** 7/31/2008

**GAIN Report Number:** FR8013

FR8013

**France**

**HRI Food Service Sector**

**Annual Report**

**2008**

**Approved by:**

![](media/image1.wmf)Elizabeth B. Berry

U.S. Embassy

**Prepared by:**

Roselyne Gauthier

**Report Highlights:**

In 2007, the French hotel, restaurant and institution (HRI) food service
sector served over 9.5 million meals valued at \$107.2 billion.
Commercial catering dominated the sector with 78 percent of the market.
Traditional restaurants, including chains, were the leading segment
within commercial catering.

The HRI/food service sector is an open, highly competitive market in
France which is supplied primarily by domestic and EU producers. There
are opportunities for U.S. suppliers for reasonably-priced, high quality
and innovative products such as fish and seafood, fresh and frozen meat,
fruits and vegetables, frozen deserts, ready-to-eat meals and
ethnic/regional sides or meals, bison meat, as well as salad dressings,
tomato sauces and spices.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Paris \[FR1\]

\[FR\]

Table of Contents

[**SECTION I. MARKET SUMMARY 3**](#section-i.-market-summary)

[1. French Consumers Attitude and Expectations:
3](#french-consumers-attitude-and-expectations)

[2. France in Profile: 3](#france-in-profile)

[3. France\'s Food Service Sector Overview:
4](#frances-food-service-sector-overview)

[Fierce competition places enormous pressure on suppliers not only for
fish/seafood but also for all other foods.
6](#fierce-competition-places-enormous-pressure-on-suppliers-not-only-for-fishseafood-but-also-for-all-other-foods.)

[SECTION II. ROAD MAP FOR MARKET ENTRY
6](#section-ii.-road-map-for-market-entry)

[1. Commercial Catering: 6](#commercial-catering)

[1.2 Entry Strategy 11](#entry-strategy)

[1.3 Distribution Channels 11](#distribution-channels)

[2. Institutional Catering (including schools, universities, health &
elderly care, company catering, air and sea catering, and others,
including army and prison catering):
11](#institutional-catering-including-schools-universities-health-elderly-care-company-catering-air-and-sea-catering-and-others-including-army-and-prison-catering)

[2.1 Company Profiles 11](#company-profiles)

[2.2 Entry Strategy 11](#entry-strategy-1)

[3. Competition in the Commercial and Institutional Sectors
11](#competition-in-the-commercial-and-institutional-sectors)

[4. Best Product Prospects 11](#best-product-prospects)

[5. Key Contacts and Further Information
11](#key-contacts-and-further-information)

# 

# SECTION I. MARKET SUMMARY[^1]

## 1. French Consumers Attitude and Expectations:  {#french-consumers-attitude-and-expectations .unnumbered}

Several factors, such as the decline in number of working hours, growing
workforce participation rate among women, shrinking average household
size, greater urbanization, as well as an aging population, are driving
French demand in the food service market. In 2007, commercial catering
sales rose following increased consumer demand for ready-to-eat,
moderately priced meals. Institutional catering is expected to continue
its growth trend in the future.

Interesting trends in 2007, included:

-   Meals priced under 15 euros (\$20) continued to increase;

-   Falling rate of eating out;

```{=html}
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```
-   More meals consumed in less than 30 minutes;

-   A decrease in purchasing power;

-   Consumers distinguishing "fast food" from "junk food;"

-   Change in traditional restaurant meal: appetizer + main dish +
    dessert represented only 16 percent of meals consumed in
    restaurants;

-   Growth in microwaveable products.

##  2. France in Profile: {#france-in-profile .unnumbered}

# 

With a total area of 551,000 square kilometers, excluding its overseas
departments and territories, France is the largest western European
country. In 2007, France\'s population was estimated at 63.6 million
(French National Institute for Statistics (INSEE)) with a per capita
gross domestic product (GDP) of \$40,253*.* France has approximately
25.7 million households, an average increase of 1.24 percent over the
period 1975-2005, with this number expected to increase 25 percent by
2030. Household population has steadily decreased from 2.4 in 1999 to
2.3 in 2005; due to an aging population, this trend is expected to fall
to 2.0 by 2030.

France ranks first in Europe, and third worldwide, in overall
expenditures on food and related items behind the United States and
Japan. The table below shows French household consumption by sectors for
2006 and 2007.

Note: Exchange rates used in this report are as follows:

Calendar Year 2003: USD 1 = 0.883 Euros

Calendar Year 2004: USD 1 = 0.806 Euros

Calendar Year 2005: USD1 = 0.8038 Euros

Calendar Year 2006: USD1 = 0.796 Euros

Calendar Year 2007: USD1 = 0.7312 Euros

(Source: Central Intelligence Agency Fact Book)

**French Household Consumption by Sectors for 2005 and 2006**

**and Percentages**

2006 2007

+---------------------+--------+---------+-------+---------+---------+
| **Sector**          | *      | **%     | **    | **%     | **%     |
|                     | *Total | Total   | Total | Total** | Dif     |
|                     | Spent  | Ho      | Spent |         | ference |
|                     | in     | usehold | in    | **Ho    | Spent   |
|                     | 2006** | Expen   | 2     | usehold | 2007    |
|                     |        | ditures | 007** | Expen   | /2006** |
|                     | **in   | (in     |       | ditures |         |
|                     | b      | 2006)** | **in  | (in     |         |
|                     | illion |         | bi    | 2007)** |         |
|                     | \$**   |         | llion |         |         |
|                     |        |         | \$**  |         |         |
+---------------------+--------+---------+-------+---------+---------+
| Food and            | 171.1  | 13.7    | 191.5 | 13.4    | 11.9    |
| non-alcooholic      |        |         |       |         |         |
| beverages           |        |         |       |         |         |
+---------------------+--------+---------+-------+---------+---------+
| Alcoholic beverages | 38.1   | 3.0     | 41.7  | 2.9     | 9.4     |
| and tobacco         |        |         |       |         |         |
+---------------------+--------+---------+-------+---------+---------+
| Clothes and shoes   | 58.9   | 4.7     | 66.2  | 4.6     | 12.4    |
+---------------------+--------+---------+-------+---------+---------+
| Lodging, heating    | 314.3  | 25.2    | 363.9 | 25.4    | 15.8    |
| and lightling       |        |         |       |         |         |
+---------------------+--------+---------+-------+---------+---------+
| Health              | 42.6   | 3.4     | 49.4  | 3.5     | 16.0    |
+---------------------+--------+---------+-------+---------+---------+
| Transport and       | 218.8  | 8.7     | 248.6 | 8.5     | 13.6    |
| Communications      |        |         |       |         |         |
+---------------------+--------+---------+-------+---------+---------+
| Leisure and culture | 116.3  | 9.3     | 132.5 | 9.3     | 13.9    |
+---------------------+--------+---------+-------+---------+---------+
| Education           | 9.3    | 0.7     | 10.9  | 0.8     | 17.2    |
+---------------------+--------+---------+-------+---------+---------+
| Hotels, cafes and   | 77.9   | 6.2     | 89.2  | 6.2     | 14.5    |
| restaurants         |        |         |       |         |         |
+---------------------+--------+---------+-------+---------+---------+
| Other goods and     | 139.3  | 11.2    | 168.1 | 11.7    | 20.7    |
| services            |        |         |       |         |         |
+---------------------+--------+---------+-------+---------+---------+

Source: French National Institute for Statistics (INSEE)

## 3. France\'s Food Service Sector Overview:  {#frances-food-service-sector-overview .unnumbered}

France has a large and highly fragmented food service sector with many
small to medium-sized players. During calendar year 2007, the French
hotel, restaurant and institution (HRI) food service sector served
approximately 9.5 billion meals valued at nearly 78.4 billion Euros
(\$107.2 billion*)*, reflecting an increase in sales of 7.5 percent over
the period 2005-2007. The HRI sector is divided into two primary
sub-sectors:

-   Commercial catering - includes traditional restaurants, hotels and
    resorts, leisure parks, cafeterias, cafes, brasseries, and fast food
    outlets, including street vendors. In 2007, sales in this sector
    totaled 61.2 billion Euros (\$83.7 billion) with 5.3 billion meals
    served.

-   Institutional catering - includes education, healthcare, business
    catering, schools, hospitals, factory restaurants, and air and sea
    catering. In 2007, this sector's total sales were 17.2 billion Euros
    (\$23.5 billion) with 4.2 billion meals served.

**Current Structure of the Food Service Market:**

(estimated sales: \$107.2 billion)

+-----------------------------------------------------------+----------+
| Commercial catering:                                      | 21%      |
|                                                           |          |
| Fast food, cafeterias, cafes and brasseries               |          |
+-----------------------------------------------------------+----------+
| Traditional restaurants, including chains                 | 57%      |
+-----------------------------------------------------------+----------+
| Institutional catering                                    | 22%      |
+-----------------------------------------------------------+----------+
|                                                           |          |
+-----------------------------------------------------------+----------+
| Total                                                     | 100%     |
+-----------------------------------------------------------+----------+

Source: Estimates provided by trade sources

The table below indicates estimated sales of the French food service
sector during the period 2002-2007.

**Value of the French Food Service Sector**

+----------------+-----------------------------------------------------+
|                | **Estimated Sales**                                 |
|                |                                                     |
|                | **(in billion dollars)**                            |
+----------------+-----------------------------------------------------+
| 2002           | 62.0                                                |
+----------------+-----------------------------------------------------+
| 2003           | N/A                                                 |
+----------------+-----------------------------------------------------+
| 2004           | 85.8                                                |
+----------------+-----------------------------------------------------+
| 2005           | 90.7                                                |
+----------------+-----------------------------------------------------+
| 2006           | 91.2                                                |
+----------------+-----------------------------------------------------+
| 2007           | 107.2                                               |
+----------------+-----------------------------------------------------+

> N/A: Not Available
>
> Source: Estimates provided by trade sources

**Percentage Growth Rate of the HRI/Food Service Sales**

**by Major Categories**

  ----------------------------------------- ---------- ---------- ---------------
                                            **2006**   **2007**   **2008 (F)**

  Restaurants, including chains             *+2.5*     +9.0       +1.5

  Hotels and resorts                        *+2.6*     +6.7       +2.5

  Other (fast foods incl cafes, snacks,     *+2.6*     +4.5       +5.0
  brasseries)                                                     

  Institutional catering                    *+*6.6     +6.7       ^+3.0^
  ----------------------------------------- ---------- ---------- ---------------

\(F\) = Forecast

Source: [Neo-Restauration]{.underline} April 2008: p. 36 and trade
estimates

[Commercial Catering]{.underline}: In 2007, commercial catering sales
rose following increased consumer demand for ready-to-eat, moderately
priced meals. From the 5.3 billion meals served in this sector, 70
percent by volume, cost 10 Euros (\$14) or less, 12 percent cost between
11 and 15 Euros (\$15-21), 9 percent cost between 16-20 Euros (\$22-27)
and \"expensive\" meals, which cost between 21-50 Euros (\$29-68) fell
from 5 to 2 percent.

Despite slower growth expectations for 2008 and 2009,preliminary figures
for 2008 show a sales increase of 5 percent for fast food (including
cafes, snack vendors and brasseries), notably for McDonald\'s, with 23
new food outlets in 2008, and Quick, which opened 20 new food outlets in
France where consumers could choose refrigerated \"take away\" food
products.

[Institutional catering]{.underline}: Institutional catering includes
education, healthcare, business catering, schools, hospitals, air and
sea catering. This sector is expected to continue its growth trend in
the future. For 2008, operators remain confident despite a fiercely
competitive environment with vigorous price negotiation. The industry is
exploring new ways to secure contracts (multi-services, customized
offers, adaption to new patterns of consumption, such as new snacking
concepts to better compete with commercial catering establishments).
Education (schools, universities), and business catering, are growing
more slowly than the healthcare and hospital sectors which are focusing
on nutritional/health foods.

> **Advantages, Opportunities and Challenges Facing U.S. Products in
> France**

+-----------------------------------+-----------------------------------+
| ###### Advantages/Opportunities   | ###### Challenges                 |
+-----------------------------------+-----------------------------------+
| The current French food service   | The French "food culture" is very |
| sector growth trend of six        | strong and dominates the French   |
| percent per year; this sector is  | food sector output. Domestic and  |
| forecast to reach 95 billion      | intra-EU products supply a high   |
| Euros within the next ten years.  | proportion of French food and     |
|                                   | beverages needs. Therefore, U.S.  |
|                                   | suppliers face stiff challenges.  |
+-----------------------------------+-----------------------------------+
| Weakness of the U.S. dollar       | Price competition is fierce.      |
| vis-a-vis the Euro benefits U.S.  |                                   |
| products.                         |                                   |
+-----------------------------------+-----------------------------------+
| Decreasing European and French    | ### Fierce competi                |
| fish/seafood catch while imports  | tion places enormous pressure on  |
| from all over the world are       | suppliers not only for fish/seafo |
| increasing.                       | od but also for all other foods.  |
+-----------------------------------+-----------------------------------+
| France is Europe\'s leading meat  | U.S. suppliers must comply with   |
| consumer, primarily for natural   | European and French regulations   |
| and lean meat.                    | such as food safety, logistical   |
|                                   | constraints, labeling regulations |
|                                   | and ban on beef produced with     |
|                                   | growth promoting hormones.        |
+-----------------------------------+-----------------------------------+
| French consumers demand quality,  | U.S. suppliers must adapt         |
| innovative, healthy products.     | products to French consumers\'    |
|                                   | tastes and expectations at        |
|                                   | moderate prices.                  |
+-----------------------------------+-----------------------------------+
| U.S. fast food chains, theme      | Certain food ingredients are      |
| restaurants, and the food         | banned or restricted from the     |
| processing industry are raising   | French market.                    |
| demand for American food          |                                   |
| ingredients.                      |                                   |
+-----------------------------------+-----------------------------------+
| Decreasing time for lunch favors  | Innovative, healthy U.S. foods    |
| snacking and VAE (ready-to eat)   | have opportunities provided they  |
| sales.                            | comply with European and French   |
|                                   | regulations                       |
+-----------------------------------+-----------------------------------+
| Decrease in food purchases favors | U.S. suppliers may find a niche   |
| liquid snack foods                | (soups, fruit juices, sodas,      |
|                                   | etc.)                             |
+-----------------------------------+-----------------------------------+

# SECTION II. ROAD MAP FOR MARKET ENTRY 

##  {#section-2 .unnumbered}

## 1. Commercial Catering:  {#commercial-catering .unnumbered}

With 78 percent of the food service market share, commercial catering
sector dominates this sector in France. Trade sources estimate the value
of commercial catering sector at 61.2 billion Euros (\$83.7 billion)
with about 5.3 billion meals served annually. This sector consists of:

-   [Traditional restaurants, including chains]{.underline} - This
    includes individual proprietor restaurants, multi-restaurant
    companies and large corporations, which represent 57 percent of the
    commercial catering sector. A large number of restaurants in and
    around Paris, and in other major French cities, are medium/high end
    restaurants serving a wide range of traditional food, although an
    increasing number specialize in cuisine from Asia, Africa, India and
    America. Restaurant chains represent 27 percent of the commercial
    catering market and are growing at a faster rate than independent
    restaurants with sales increasing by over 6 percent in 2007,
    compared to the previous year, and approximately 150 new outlets
    opened in 2007.

-   [Hotels and resorts with restaurants]{.underline} -- These
    establishments are operated by individual proprietors, companies or
    large corporations and account for around 6 percent of the
    commercial catering market with over 17,000 restaurants. In general,
    the French do not frequent hotels for their restaurants, except for
    dinner when traveling, with the exception of a small number of
    luxury hotels with well-known restaurants, classified by famous
    guides such as \"Michelin\" or \"Gault & Millau.\" These restaurants
    serve a wide range of traditional or ethnic foods.

-   [Leisure parks]{.underline} - France has about 50 leisure parks,
    three world-class (Disneyland Resorts Paris, Parc Asterix and
    Futuroscope). Disneyland Resorts Paris has about 15 million visitors
    annually with food sales estimated at \$270 million. It is the
    leading leisure park in France serving approximately 32 million
    meals and snacks yearly. Disneyland Resorts Paris has its own
    central buying office, \"Convergence Achats\".

> Asterix, a French history themed park, is the second largest leisure
> park in France and serves about two million meals yearly. Asterix
> serves only traditional and neo-traditional French food. The third
> largest is Futuroscope serving approximately one million meals per
> year.

-   [Cafeterias, Cafes and Brasseries]{.underline} - Operated by
    individual proprietors, companies or large corporations, they
    represent around 19 percent of the commercial catering sector. These
    outlets serve sandwiches or quick lunches at reasonable prices to
    customers.

-   [Fast food outlets, including street vendors]{.underline} - Operated
    by companies and large corporations, these outlets represent 25
    percent of the total food service market. Food sales in U.S.-style
    fast food restaurants, led by McDonald\'s and followed by Quick, a
    distant second, continue to rise in France. Most U.S.-style fast
    food restaurants procure food inputs in France and Europe. For
    example, 95 percent of McDonald\'s food purchases for its French
    restaurants are made in Europe.

> The French fast food outlets offering typically French food, such as
> baguette sandwiches, quiches and salads, have increased by 8 percent
> annually since 2001. This market segment, valued at 3.4 billion euros
> sales (\$4.6 billion), represents approximately 1.2 billion units sold
> in 2007 in 10,000 outlets including: bakery, gas-station and
> transportation locations, automatic distributors, cafes, bars,
> brasseries, retail food sector and exposition/leisure parks.

-   [Delivered catering, including ethnic (e.g. sushi)]{.underline} - A
    competitive sector operated by companies and large corporations,
    this growing segment of commercial catering is comprised generally
    of the meal delivery (mainly to companies) and pizza delivery
    (mainly to households). Estimated in 2007 at 3 million meals
    delivered, this sector increased by 25 percent, compared to 2006.

1.1 Company Profiles:

> The tables below provide information on the categories in the French
> commercial catering sector:
>
> ***Categories of Commercial Catering, Number of Outlets and Total
> Sales***
>
> ***in Calendar Year 2007***

+-----------------------------+----------+------------+--------------+
| Category                    | Number   | Total      | Sales        |
|                             | of       | sales i(In | Percentage   |
|                             | outlets  | Million    | Change       |
|                             |          | \$)        |              |
|                             |          |            | 2007/2006    |
+-----------------------------+----------+------------+--------------+
| Traditional restaurants,    | 66,100   | 25,208     | +2.0         |
| including ethnic            |          |            |              |
| restaurants                 |          |            |              |
+-----------------------------+----------+------------+--------------+
| Bistro, cafes, brasseries,  | 40,845   | 10,257     | +11.0        |
| snacks                      |          |            |              |
+-----------------------------+----------+------------+--------------+
| Fish/seafood type           | 500      | 438        | +4.8         |
| restaurants                 |          |            |              |
+-----------------------------+----------+------------+--------------+
| Theme restaurants           | 1,500    | 1,054      | ^+3.1^       |
+-----------------------------+----------+------------+--------------+
| Pizzerias                   | 13,000   | 6,798      | +1.9         |
+-----------------------------+----------+------------+--------------+
| Grills                      | 1,400    | 1,004      | +5.1         |
+-----------------------------+----------+------------+--------------+
| US-style fast food          | 140      | 390        | +1.2         |
+-----------------------------+----------+------------+--------------+
| French fast food            | 5,600    | 3,282      | +1.8         |
+-----------------------------+----------+------------+--------------+
| Cafeterias                  | 400      | 630        | +0.8         |
+-----------------------------+----------+------------+--------------+
| Alternative food channels   | 28,150   | 12,828     | +5.0         |
| (stores, movie-theater,     |          |            |              |
| gas-station, etc.)          |          |            |              |
+-----------------------------+----------+------------+--------------+

> Source : Gira-Sic Conseil (consultant report)
>
> ***Leaders in the Commercial Catering Sector in France in Calendar
> Year 2007***

+-----+------------------+-----------+--------------+----------------+
| **  | **Groups**       | **2007    | **Sales %    | **Number of    |
| Ran |                  | Sales**   | Change**     | Outlets**      |
| k** |                  |           |              |                |
|     |                  | **(In     | *            |                |
|     |                  | Million   | *2007/2006** |                |
|     |                  | \$)**     |              |                |
+-----+------------------+-----------+--------------+----------------+
| 1   | McDonald\'s      | 4,075     | +10.4        | 1109           |
|     | France           |           |              |                |
+-----+------------------+-----------+--------------+----------------+
| 2   | France Quick     | 976       | +7.4         | 337            |
+-----+------------------+-----------+--------------+----------------+
| 3   | Agapes           | 883       | +5.9         | 330            |
|     | Restauration     |           |              |                |
+-----+------------------+-----------+--------------+----------------+
| 4   | Elior/Eliance    | 744       | +4.0         | 688            |
+-----+------------------+-----------+--------------+----------------+
| 5   | Servair (Air     | 636       | +2.9         | 14             |
|     | Catering)        |           |              |                |
+-----+------------------+-----------+--------------+----------------+
| 6   | Buffalo Grill SA | 629       | +9.8         | 295            |
+-----+------------------+-----------+--------------+----------------+
| 7   | Groupe Flo       | 593       | +12.6        | 190            |
+-----+------------------+-----------+--------------+----------------+
| 8   | Groupe Le Duff   | 453       | +3.1         | 447            |
+-----+------------------+-----------+--------------+----------------+
| 9   | Groupe Holder    | 418       | +8.5         | 354            |
+-----+------------------+-----------+--------------+----------------+
| 10  | Casino Cafeteria | 416       | -3.2         | 323            |
+-----+------------------+-----------+--------------+----------------+
| 11  | EuroDisney SCA   | 328       | +15.4        | 68             |
+-----+------------------+-----------+--------------+----------------+
| 12  | Auto Grill       | 316       | +6.7         | 490            |
+-----+------------------+-----------+--------------+----------------+
| 13  | Sesare SAS       | 289       | +13.2        | 196            |
+-----+------------------+-----------+--------------+----------------+
| 14  | Yum Brands       | 260       | \--          | 164            |
+-----+------------------+-----------+--------------+----------------+
| 15  | SSP Compass      | 260       | +6.9         | 200            |
+-----+------------------+-----------+--------------+----------------+
| 16  | Sodexo Group     | 229       | +14.3        | N/A            |
+-----+------------------+-----------+--------------+----------------+
| 17  | Accor            | 205       | +7.0         | N/A            |
+-----+------------------+-----------+--------------+----------------+
| 18  | Bertrand OB      | 194       | +18.3        | N/A            |
|     | Holding          |           |              |                |
+-----+------------------+-----------+--------------+----------------+
| 19  | Brasseries       | 187       | -15.9        | 79             |
|     | Kronenbourg      |           |              |                |
+-----+------------------+-----------+--------------+----------------+
| 20  | PJB Holding      | 170       | +14.9        | 32             |
+-----+------------------+-----------+--------------+----------------+
| 21  | Cora             | 149       | +0.9         | N/A            |
+-----+------------------+-----------+--------------+----------------+

> N/A: Not Available
>
> Source: Gira-Sic Conseil (consultant report)
>
> ***Commercial Catering in France: Leading Groups and Brands in
> Calendar Year 2007***

  ----------------------- -----------------------------------------------
  **Groups**              **Brands**

  McDonald\'s France      McDonald\'s

  France Quick SA         Quick

  Agapes Restauration     Flunch, Pizza Pai, Amarine, Les 3 Brasseurs

  Servair (air catering)  Servair

  Elior/Eliance           Arche, Boeuf Jardinier, Jules Verne, Drouant,
                          Phileas, Pomme de Pain

  Buffalo Grill SA        Buffalo Grill

  Groupe Flo              Brasseries Flo, Petit Bofinger, Hippopotamus,
                          Flo Prestige, Bistro Romain

  Casino Cafeterias       Cafeterias Casino, Cœurs de ble

  Groupe Le Duff          Brioche Doree, Pizza Del Arte, Fournil de
                          Pierre

  Accor                   Lenotre, Wagons Lits

  Groupe Holder           Paul, St Preux, Laduree

  Autogrill               Autogrill Relais, Cote France, Spizzico, le
                          Petit Cafe

  Eurodisney SCA          Disneyland Paris

  Yum Brands              Pizza Hut, KFC

  SSP Compass             Salmon House, Cafe Select, Scappucci, Upper
                          Crust, Tarte Julie, Ritazza Caffe, Le Train
                          Bleu

  Group Bertrand OB       Restaurants a themes, sandwicheries Bert's,
  Holding Toastissimo     cafeterias Eris

  Brasseries Kronenbourg  Tavernes, Comptoirs de Maitre Kanter

  Serrare SAS             Courtepaille

  Cora                    Cafeterias Cora

  PJB Holding             Brasseries, Chez Clement
  ----------------------- -----------------------------------------------

> Source: [Neo-Restauration]{.underline} April 2008: Page 37
>
> ***Major Fast Food Segment in France in Calendar Year 2007***

+-------------------------------+---------------+--------+------------+
| **Groups**                    | **Number of   | *      | **% Sales  |
|                               | Restaurants** | *Sales | Increase** |
|                               |               | in     |            |
|                               |               | 2007** | **2        |
|                               |               |        | 006/2005** |
|                               |               | **(In  |            |
|                               |               | M      |            |
|                               |               | illion |            |
|                               |               | \$)**  |            |
+-------------------------------+---------------+--------+------------+
| McDonald\'s France            | 1109          | 4,075  | +10.4      |
+-------------------------------+---------------+--------+------------+
| France Quick                  | 337           | 976    | \+ 7.4     |
+-------------------------------+---------------+--------+------------+
| KFC France                    | 58            | 178    | +30.0      |
+-------------------------------+---------------+--------+------------+
| ***Major French Fast Food***  |               |        |            |
+-------------------------------+---------------+--------+------------+
| Paul, St Preux (Groupe        | 354           | 418    | \+ 8.5     |
| Holder)                       |               |        |            |
+-------------------------------+---------------+--------+------------+
| La Station Sandwich, Pomme de | 744           | 688    | \+ 4.0     |
| Pain, Aubepain, Cafe Route,   |               |        |            |
| Phileas, Paul (Groupe Elior)  |               |        |            |
+-------------------------------+---------------+--------+------------+
| Brioche Doree, Le Fournil de  | 447           | 453    | \+ 3.1     |
| Pierre Caffe Del Arte, Pizza  |               |        |            |
| Del Arte (Groupe Le Duff)     |               |        |            |
+-------------------------------+---------------+--------+------------+
| Bonne Journee, Cafe Ritazza,  | 200           | 260    | \+ 6.9     |
| Upper Crust, Café Select      |               |        |            |
| (SSP)                         |               |        |            |
+-------------------------------+---------------+--------+------------+
| La Mie Caline (La Mie Caline) | 165           | 153    | \+ 9.8     |
+-------------------------------+---------------+--------+------------+
| Ciao, Spizzico, Burger King,  | 490           | 316    | \+ 6.7     |
| La Galleria, Cote France,     |               |        |            |
| Relais, Pain a la ligne       |               |        |            |
| ...(Autogrill)                |               |        |            |
+-------------------------------+---------------+--------+------------+
| Relais H Café (Relais H SNC)  | 189           | 122    | \+ 6.0     |
+-------------------------------+---------------+--------+------------+
| La Croissanterie (La          | 146           | 92     | \+ 8.7     |
| Croissanterie SA)             |               |        |            |
+-------------------------------+---------------+--------+------------+

> ^Source :^ [Neo-Restauration]{.underline} April 2008: page 38, and
> Gira-Sic Conseil (consultant report)

***Leaders of Delivered Meals (1) in France, in Calendar Year 2006
(\*)***

+-------------+-------------------+------------+--------+------------+
| **Groups**  |                   | **Number   | *      | **% Sales  |
|             |                   | of         | *Sales | Increase** |
|             |                   | d          | in     |            |
|             |                   | elivered** | 2007** | **2        |
|             |                   |            |        | 006/2005** |
|             |                   | **meals**  | **(In  |            |
|             |                   |            | m      |            |
|             |                   |            | illion |            |
|             |                   |            | \$)**  |            |
+-------------+-------------------+------------+--------+------------+
| **Sogeres** | L\'Affiche        | 482,488    | 12     | +30        |
+-------------+-------------------+------------+--------+------------+
| **KB Sushi  | Sushi West        | 450,000    | 7      | +50        |
| (2)**       |                   |            |        |            |
+-------------+-------------------+------------+--------+------------+
| **Planet    | Planet Sushi      | 398,000    | 6      | +35        |
| Sushi (2)** |                   |            |        |            |
+-------------+-------------------+------------+--------+------------+
| **Pains et  | Class\'Croute     | 350,000    | 25     | +25        |
| Saveurs     |                   |            |        |            |
| (3)**       |                   |            |        |            |
+-------------+-------------------+------------+--------+------------+
| **Sushi     | Sushi Shop        | 350,000    | 7      | +133       |
| Shop (2)**  |                   |            |        |            |
+-------------+-------------------+------------+--------+------------+
| **Sélection | Fauchon/Flo       | 300,000    | 11     | -2         |
| Repas**     | P                 |            |        |            |
|             | restige/Sélection |            |        |            |
|             | Repars            |            |        |            |
+-------------+-------------------+------------+--------+------------+
| **Chaud     | Chaud Devant      | 256,000    | 9      | +14        |
| Devant**    |                   |            |        |            |
+-------------+-------------------+------------+--------+------------+
| **Matsuri   | Matsuri           | 225,203    | 4      | +100       |
| (2)**       |                   |            |        |            |
+-------------+-------------------+------------+--------+------------+
| **Accor**   | Lenotre           | 179,000    | 6      | 0          |
+-------------+-------------------+------------+--------+------------+
| **Casino**  | Repaburo          | 173,186    | 4      | +28        |
+-------------+-------------------+------------+--------+------------+
| *           | Dalloyau          | 120,000    | 5      | 0          |
| *Dalloyau** |                   |            |        |            |
+-------------+-------------------+------------+--------+------------+
| **Compass   | Train Bleu        | 86,000     | 3      | +6         |
| (5)**       |                   |            |        |            |
+-------------+-------------------+------------+--------+------------+
| **Raynier   | Déjeuner          | 73,102     | 2      | +294       |
| Marchetti   | Livré/Plumier     |            |        |            |
| (3, 4)**    |                   |            |        |            |
+-------------+-------------------+------------+--------+------------+
| *           | Passion           | 50,000     | 3      | +11        |
| *Valparaiso | Traiteur/Extreme  |            |        |            |
| (4)**       |                   |            |        |            |
+-------------+-------------------+------------+--------+------------+

> Source: [Neo-Restauration]{.underline} April 2008:page 39.
>
> (\*) Note: No update figures available for 2007
>
> \(1\) Sales are for delivery meals only, not including reception. (2)
> Not including supermarkets. (3) Just for delivery activity. (4)
> Excluding subcontractors. (5) Change of subcontractor and name: Train
> Bleu becomes Milessence.
>
> ***Leaders of Delivered Pizza (1) and Hamburgers in Calendar Year 2006
> (\*):***

+-------------------+-----------+-----------+---------+-------------+
| **Groups**        |           | **Number  | **Sales | **% Sales   |
|                   |           | of**      | in      | Increase**  |
|                   |           |           | 2005**  |             |
|                   |           | **Rest    |         | **          |
|                   |           | aurants** | **(in   | 2006/2005** |
|                   |           |           | million |             |
|                   |           |           | \$)**   |             |
+-------------------+-----------+-----------+---------+-------------+
| **Yum (2)**       | Pizza Hut | 89        | 82      | +1          |
+-------------------+-----------+-----------+---------+-------------+
| **Domino\'s Pizza | Domino\'s | 97        | 66      | +19.14      |
| France**          | Pizza     |           |         |             |
+-------------------+-----------+-----------+---------+-------------+
| **NSR**           | Speed     | 106       | 49      | +11.43      |
|                   | Rabbit    |           |         |             |
|                   | Pizza     |           |         |             |
+-------------------+-----------+-----------+---------+-------------+
| **Socorest**      | La Boite  | 77        | 33      | +18.18      |
|                   | a Pizza   |           |         |             |
+-------------------+-----------+-----------+---------+-------------+
| **Speed Burger    | Speed     | 23        | 9       | +65.12      |
| Diffusion (3)**   | Burger    |           |         |             |
+-------------------+-----------+-----------+---------+-------------+
| **Framapizz**     | Pizza     | 25        | 11      | +59.71      |
|                   | Sprint    |           |         |             |
+-------------------+-----------+-----------+---------+-------------+
| **DFTP**          | Tutti     | 22        | 6       | +22.22      |
|                   | Pizza     |           |         |             |
+-------------------+-----------+-----------+---------+-------------+
| **Mister Pizza**  | Mister    | 15        | 6       | +15.38      |
|                   | Pizza     |           |         |             |
+-------------------+-----------+-----------+---------+-------------+
| **Sagem           | Station   | 12        | 4       | +0.63       |
| Resto/Cuisine     | Pizza     |           |         |             |
| Fusion**          |           |           |         |             |
+-------------------+-----------+-----------+---------+-------------+
| **Scotter         | Scotter   | 12        | 4       | +20.00      |
| Pizz\'**          | Pizz\'    |           |         |             |
+-------------------+-----------+-----------+---------+-------------+

> Sources : [Neo-Restauration]{.underline} April 2008:page 39.
>
> (\*) Figures not available for 2007
>
> \(1\) Groups identified or having responded to the survey; (2)
> Excluding restaurants; (3) The important development of the delivered
> hamburger segment conducted to classify the operator in this table

### 1.2 Entry Strategy 

> Most large restaurant businesses, including chains, offer local
> cuisine and use imported products only if local alternatives cannot be
> found. However, niche opportunities for U.S. suppliers exist for a
> range of diverse products such as fish/seafood, exotic meats, sauces
> (prepared sauces or dehydrated sauce bases) and salad dressings, a
> variety of food ingredients, wine, and frozen ethnic/regional food
> service meals in any outlet where the clientele is looking for
> \"ethnic and/or regional\" cuisine, or non-traditional options.
>
> U.S. exporters should consider the financial strength, number and
> location of outlets, menu diversification, and purchasing policy of
> the business when targeting major restaurants or chains. In addition,
> U.S. exporters should also consider the following in formulating their
> entry strategy:

-   Check EU and French regulations, e.g., hormone-free meat, biotech
    regulations, and carefully verify the acceptability of each
    product\'s ingredients and additives. For information on EU
    regulations, visit the following website:
    [http://www.useu.be](http://www.useu.be/).

    -   Note that French consumers are not very receptive to GMOs. In
        addition, the allowable adventitious presence level for
        EU-approved varieties of GMO's is set at 0.9 percent. Above this
        level, all products must be labeled as containing biotech. Such
        products are generally not marketed at the retail level in
        France. The Fraud Control Office (DGCCRF) of the French Ministry
        of Economy, Finance and Industry is the French enforcing
        authority. For more details on EU regulations, see GAIN Report
        E47056, and on France's implementation, see Paris Annual
        Biotechnology report FR7072.

-   Check EU and French food safety requirements.

-   Verify the price competitiveness of the product compared to local
    and other imported products; check customs clearance requirements
    and any additional import charges based on sugar, milk, fat and
    starch content.

-   Identify local agents/distributors that can promote and distribute
    U.S. products to restaurants that order small volumes on a regular
    basis.

### 

### 1.3 Distribution Channels

> Some restaurant chains have their own central buying offices, but
> most, including traditional restaurants, as well as hotels and
> resorts, buy through cash & carry channels or specialized wholesalers.
>
> *[Cash & Carry]{.underline}* wholesalers display a wide selection of
> food and non- food products in large stores. They sell to food
> retailers, food-service sector restaurants and restaurant chains. Cash
> & carry offers competitive prices, a variety of products, extended
> operating hours and immediate product availability. Major cash & carry
> groups are Metro (French subsidiary of Metro/Germany) and Promocash (a
> subsidiary of Carrefour) together representing 75 percent of total
> sales in the wholesale sector.
>
> *[Specialized Distributors/Wholesalers]{.underline}* have, as their
> main activity, distribution of food products. They have dry and cold
> storage facilities with refrigerated/freezer trucks for deliveries.
> They buy from processing companies, foreign exporters or importers.
> Their largest clients are in the catering sector.
>
> ***Major Specialized Distributors/Wholesalers for the Food Service
> Sector***

  -------------------------------- --------------------------------------
  **Name of                        **Specialization**
  Wholesaler/Distributor**         

  Pomona (Privately Owned)         Fresh fruits and vegetables

  Aldis (Group Metro)              All fresh and frozen foods, including
                                   seafood and meat

  Prodirest (Group Carrefour)      Frozen food

  Davigel (Subsidiary of Nestle)   Frozen food and seafood

  Brake France (Subsidiary of      Frozen food and seafood
  Brake Bros, U.K.)                

  Demarne Freres (Privately Owned) Fresh/chilled and frozen fish and
                                   seafood

  PRF (Privately Owned)            Fresh/chilled and frozen fish and
                                   seafood

  Francap                          Buying office and wholesaler for small
                                   supermarkets and restaurants
  -------------------------------- --------------------------------------

> Source: [Neo-Restauration]{.underline} April 2008: page 40.
>
> ***Top Four Hotel & Resort Chains in France & Europe with***
>
> ***Restaurant and Catering Services***

  ------------ ----------------- ------------------- ------------------------------
  **Group      **Nationality**   **Hotel resort      **Purchasing Sources**
  Name**                         name**              

  Accor        French            (Etap Hotel,        Importers/wholesalers/direct
                                 Formule 1, Ibis,    or cash & carry
                                 Mercure, Novotel,   
                                 Sofitel)            

  Envergure    French            (Bleu Marine,       Importers/wholesalers/direct
                                 Campanile, Kyriad,  or cash & carry
                                 Premiere Classe)    

  Six          U.K.              (Crowne Plazza,     Importers/wholesalers/direct
  Continents                     Holiday Inn,        or cash & carry
                                 InterContinental)   

  Choice       U.S.              (Clarion, Comfort   Importers/wholesalers/direct
  Hotels                         Hotels, Quality)    or cash & carry
  ------------ ----------------- ------------------- ------------------------------

> Source : La Revue HRC (hotel, restaurant, cafe)

## 2. Institutional Catering (including schools, universities, health & elderly care, company catering, air and sea catering, and others, including army and prison catering): {#institutional-catering-including-schools-universities-health-elderly-care-company-catering-air-and-sea-catering-and-others-including-army-and-prison-catering .unnumbered}

> The institutional catering sector represents 22 percent of the food
> service market. Trade sources value the institutional catering sector
> at 17.2 billion Euros (\$23.5 billion) with approximately 4.2 million
> meals served in 2007. This sector includes:

-   Contract Catering Businesses

> This includes company restaurants, schools and universities,
> hospitals, nursing and retirement homes and is dominated by
> specialized companies such as Sodexho, Compass and Elior. The contract
> catering business increased 4.4 percent in 2007, compared to 2006, and
> is expected to grow at this rate through 2010.

-   Concession Catering

> Concession catering includes transportation catering (highways,
> railway stations and airports), as well as in-town and leisure
> catering (museums, exhibition and sport centers). According to
> industry analysts, this segment increased at an annual rate of 3.6
> percent from 1996 to 2007 and is expected to grow at a rate of 4
> percent annually through 2010.
>
> The Sodexho group is the largest player in this segment, immediately
> followed by Elior group, the Compass group (mainly supplying
> airports), Autogrill (highways and railway stations) and Horeto (city
> sites and leisure sites).

-   Air and Sea Catering

> In France, the major supplier in this segment is Servair (subsidiary
> of Air France). Most of the food purchased by Servair is of French
> origin. Second, but far behind, is Catair, a subsidiary of Eurest
> (Compass Group).
>
> The leader in France for sea catering is Cofrapex (subsidiary of
> Metro/Cash and Carry). The major competitor of Cofrapex is SHRM
> (Societe Hoteliere de Restauration Maritime), which was bought in 1998
> by the Compass Group.

### 

### 2.1 Company Profiles

The institutional catering sector in France has three major players
(representing 82 percent market share), 12 medium-sized regional
companies and 29 small companies. This sector has grown at a rate of 5
percent annually since 2000. The tables below provide information on the
major groups and businesses involved in the various segments of the
institutional catering sector.

***Major Groups & Businesses in the Institutional Catering Sector During
Calendar Year 2007***

<table>
<colgroup>
<col style="width: 5%" />
<col style="width: 15%" />
<col style="width: 9%" />
<col style="width: 11%" />
<col style="width: 13%" />
<col style="width: 11%" />
<col style="width: 15%" />
<col style="width: 1%" />
<col style="width: 1%" />
<col style="width: 4%" />
<col style="width: 3%" />
<col style="width: 5%" />
</colgroup>
<tbody>
<tr class="odd">
<td><strong>Rank</strong></td>
<td><strong>Group/Firm</strong></td>
<td><p><strong>Total Sales in 2007</strong></p>
<p><strong>(In Million $)</strong></p></td>
<td><p><strong>Sales % Change</strong></p>
<p><strong>2007/2006</strong></p></td>
<td><strong>Number of Restaurants</strong></td>
<td><p><strong>Meals</strong></p>
<p><strong>Served in 2007 (In Million)</strong></p></td>
<td><strong>% Change Meals Served 2007/2006</strong></td>
<td colspan="5"></td>
</tr>
<tr class="even">
<td>1</td>
<td>Group Sodexho France (*)</td>
<td>2,452</td>
<td>+3.8</td>
<td>5,479</td>
<td>326</td>
<td>+1.8</td>
<td colspan="5"></td>
</tr>
<tr class="odd">
<td>2</td>
<td>Group Elior</td>
<td>1,886</td>
<td>+7.4</td>
<td>4,167</td>
<td>282</td>
<td>+3.2</td>
<td colspan="5"></td>
</tr>
<tr class="even">
<td>3</td>
<td>Compass Group France</td>
<td>1,454</td>
<td>+0.3</td>
<td>2,496</td>
<td>189</td>
<td><sup>+1.0</sup></td>
<td colspan="5"></td>
</tr>
<tr class="odd">
<td>4</td>
<td>Group Score</td>
<td>302</td>
<td>+22.7</td>
<td>798</td>
<td>33</td>
<td>+28.6</td>
<td colspan="5"></td>
</tr>
<tr class="even">
<td>5</td>
<td>Group API</td>
<td>247</td>
<td>+16.5</td>
<td>1,073</td>
<td>60</td>
<td>+13.2</td>
<td></td>
<td></td>
<td>378</td>
<td>17</td>
<td>+2.8</td>
</tr>
<tr class="odd">
<td>6</td>
<td>Groupe Ansamble</td>
<td>164</td>
<td>+34.8</td>
<td>590</td>
<td>33</td>
<td>+29.4</td>
<td colspan="5"></td>
</tr>
<tr class="even">
<td>7</td>
<td>Groupe Dupont Restauration</td>
<td>137</td>
<td>+6.8</td>
<td>429</td>
<td>30</td>
<td>+4.1</td>
<td colspan="5"></td>
</tr>
<tr class="odd">
<td>8</td>
<td>Multi Restauration ServiceS (Group MRS)</td>
<td>60</td>
<td>--</td>
<td>N/A</td>
<td>N/A</td>
<td>--</td>
<td colspan="5"></td>
</tr>
<tr class="even">
<td>9</td>
<td>Apetito France</td>
<td>46</td>
<td>+8.5</td>
<td>126</td>
<td>6</td>
<td>+8.9</td>
<td colspan="5"></td>
</tr>
<tr class="odd">
<td>10</td>
<td>R2C (Casino Cafeteria)</td>
<td>45</td>
<td>+39.5</td>
<td>53</td>
<td>4,576</td>
<td>+31.5</td>
<td colspan="5"></td>
</tr>
<tr class="even">
<td>11</td>
<td>Resteco-Bretagne Restauration</td>
<td>45</td>
<td>+13.0</td>
<td>86</td>
<td>N/A</td>
<td>--</td>
<td colspan="5"></td>
</tr>
</tbody>
</table>

Source: [Neo-Restauration]{.underline} April 2008: page 40.

N/A = Not Available

(\*) Includes Sodexho, Sogeres, RGC, La Normande, Siges.

***Major Companies in the Health and Elderly Care Segment***

The leader in the segment is Sodexho with increased sales of 12 percent
and 91 million meals served in 2007, an increase of 6.5 percent,
compared to 2006. Experts forecast that steady growth in this segment
will continue due to demands from an aging population. According to the
French Institute for Statistics (INSEE), France should have 14 million
people over 60 years old in 2010, and 17 million in 2020. Opportunities
exist for U.S. suppliers of frozen foods, semi-prepared foods or sides,
and prepared meals.

+----+---------------+--------+-----------+---------+----------------+
| ** | ***           | **     | ***Sales  | *       | ***% Changed   |
| *R | Group/Firm*** | *Sales | %         | **Total | Meals Served   |
| an |               | in     | Change*** | Meals   | 2006/2005***   |
| k* |               | 2      |           | se      |                |
| ** |               | 006*** | ***200    | rved*** |                |
|    |               |        | 6/2005*** |         |                |
|    |               | ***(In |           | ***(In  |                |
|    |               | M      |           | Mill    |                |
|    |               | illion |           | ion)*** |                |
|    |               | \$)    |           |         |                |
|    |               | (      |           |         |                |
|    |               | \*)*** |           |         |                |
+----+---------------+--------+-----------+---------+----------------+
| 1  | Sodexho       | 605    | +11.9     | 91      | +6.5           |
|    | France        |        |           |         |                |
+----+---------------+--------+-----------+---------+----------------+
| 2  | Medirest      | N/A    | \--       | 48      | +4.0           |
|    | (Compass      |        |           |         |                |
|    | Group France) |        |           |         |                |
+----+---------------+--------+-----------+---------+----------------+
| 3  | Avenance      | N/A    | \--       | 53      | +7.4           |
|    | (Elior Group) |        |           |         |                |
+----+---------------+--------+-----------+---------+----------------+
| 4  | Sogeres       | 85     | +1.8      | 14      | 0              |
|    | (Sodexho)     |        |           |         |                |
+----+---------------+--------+-----------+---------+----------------+
| 5  | Groupe        | 83     | +19.8     | 22      | +17.4          |
|    | API/RDR       |        |           |         |                |
+----+---------------+--------+-----------+---------+----------------+
| 6  | Score Groupe  | 67     | +36.9     | 10      | +47            |
+----+---------------+--------+-----------+---------+----------------+
| 7  | Ansamble      | 44     | +45       | 7       | +26.6          |
|    | Groupe        |        |           |         |                |
+----+---------------+--------+-----------+---------+----------------+
| 8  | Dupont        | 41     | +7.9      | 8       | +8.0           |
|    | Restauration  |        |           |         |                |
+----+---------------+--------+-----------+---------+----------------+
| 9  | Groupe Vilvae | 20     | +4.7      | 3       | -4.6           |
+----+---------------+--------+-----------+---------+----------------+

Source[: Neo-Restauration]{.underline} April 2008: Page 41.

N/A: Not Available

(\*) Figures for 2007 not known at time of report.

***Top Companies in the Education (School and University) Segment***

This segment showed overall growth of about 4 percent in 2006. Few
opportunities exist for U.S. suppliers due to low per-meal costs.

+----+--------------+---------+-----------+----------+---------------+
| ** | **           | **Total | **%       | **Meals  | **% Change    |
| Ra | Group/Firm** | Sales   | Change    | Served   | Meals Served  |
| nk |              | in      | Sales**   | in       | 2006/2005**   |
| ** |              | 2006**  |           | 2006**   |               |
|    |              |         | **20      |          |               |
|    |              | **(In   | 06/2005** | **(In    |               |
|    |              | Million |           | Mi       |               |
|    |              | \$)     |           | llion)** |               |
|    |              | (\*)**  |           |          |               |
+----+--------------+---------+-----------+----------+---------------+
| 1  | Avenance     | N/A     | \--       | 124      | +1.6          |
|    | (Elior       |         |           |          |               |
|    | Group)       |         |           |          |               |
+----+--------------+---------+-----------+----------+---------------+
| 2  | Sodexho      | 327     | +4.2      | 81       | +1.3          |
|    | France       |         |           |          |               |
+----+--------------+---------+-----------+----------+---------------+
| 3  | Scolarest    | N/A     | \--       | 63       | +0.2          |
|    | (Compass     |         |           |          |               |
|    | Group        |         |           |          |               |
|    | France)      |         |           |          |               |
+----+--------------+---------+-----------+----------+---------------+
| 4  | Sogeres      | 133     | -8.2      | 28       | -5.8          |
|    | (Sodexho)    |         |           |          |               |
+----+--------------+---------+-----------+----------+---------------+
| 5  | Group        | 72      | +10.0     | 24       | +8.1          |
|    | API/RDR      |         |           |          |               |
+----+--------------+---------+-----------+----------+---------------+
| 6  | Ansamble     | 46      | +29.9     | 16       | +15.8         |
+----+--------------+---------+-----------+----------+---------------+
| 7  | Dupont       | 26      | +4.5      | 8        | +2.0          |
|    | Restauration |         |           |          |               |
+----+--------------+---------+-----------+----------+---------------+
| 8  | Resteco      | 23      | +27.1     | N/A      | \--           |
|    | Bretagne     |         |           |          |               |
|    | Restauration |         |           |          |               |
+----+--------------+---------+-----------+----------+---------------+
| 9  | Score Group  | 13      | +111.9    | 3        | +78.6         |
+----+--------------+---------+-----------+----------+---------------+
| 10 | 56           | 11      | +5.3      | 4        | +6.6          |
|    | Restauration |         |           |          |               |
+----+--------------+---------+-----------+----------+---------------+

Source: [Neo-Restauration]{.underline} April 2008: page 41.

N/A: Not Available

(\*) Figures for 2007 not available at time of report.

***Top Groups/Firms in the Company Catering Segment***

Major players in company catering saw sales increase by 12 percent in
2006. The sector showed overall growth in number of meals served and
offers opportunities for U.S. suppliers of sophisticated, innovative and
quality semi-prepared meals, including meat, fish and seafood.

+----+--------------+---------+-----------+--------+----------------+
| ** | **           | **Total | **%       | *      | **% Changed    |
| Ra | Group/Firm** | Sales   | Change    | *Total | Meals served   |
| nk |              | in      | Sales**   | M      | 2006/2005**    |
| ** |              | 2006**  |           | eals** |                |
|    |              |         | **20      |        |                |
|    |              | **(In   | 06/2005** | **     |                |
|    |              | Million |           | Served |                |
|    |              | \$)     |           | in     |                |
|    |              | (\*)**  |           | 2006** |                |
|    |              |         |           |        |                |
|    |              |         |           | **(In  |                |
|    |              |         |           | Mill   |                |
|    |              |         |           | ion)** |                |
+----+--------------+---------+-----------+--------+----------------+
| 1  | Avenance     | N/A     | \--       | 90     | +3.3           |
|    | (Group       |         |           |        |                |
|    | Elior)       |         |           |        |                |
+----+--------------+---------+-----------+--------+----------------+
| 2  | Eurest       | N/A     | \--       | 82     | -0.2           |
|    | (Compass     |         |           |        |                |
|    | Group        |         |           |        |                |
|    | France)      |         |           |        |                |
+----+--------------+---------+-----------+--------+----------------+
| 3  | Sodexho      | 692     | +2.8      | 78     | +0.1           |
|    | France       |         |           |        |                |
+----+--------------+---------+-----------+--------+----------------+
| 4  | Sogeres      | 211     | +8.9      | 20     | +1.3           |
|    | (Sodexho)    |         |           |        |                |
+----+--------------+---------+-----------+--------+----------------+
| 5  | Group SCORE  | 138     | +9.7      | 16     | +5.0           |
+----+--------------+---------+-----------+--------+----------------+
| 6  | Groupe Vivae | 59      | -0.4      | 6      | -11.9          |
+----+--------------+---------+-----------+--------+----------------+
| 7  | Ansamble     | 48      | +31.3     | 6      | +4.4           |
+----+--------------+---------+-----------+--------+----------------+
| 8  | API RDR      | 43      | +22       | 6      | +19.6          |
+----+--------------+---------+-----------+--------+----------------+
| 9  | Multi        | 39      | \--       | N/A    | \--            |
|    | Restauration |         |           |        |                |
|    | Services     |         |           |        |                |
+----+--------------+---------+-----------+--------+----------------+
| 10 | Dupont       | 33      | +9.9      | 5      | +6.0           |
|    | Restauration |         |           |        |                |
+----+--------------+---------+-----------+--------+----------------+

Source: [Neo-Restauration]{.underline} April 2008: Page 42.

N/A: Not Available

(\*) Figures for 2007 not available at time of report.

***Other Institutional Catering Sector: Army and Prisons***

Sales in army and prison institution catering were rather insignificant
and represented only one percent of the institutional market sector.
Lack of available data makes it difficult to project annual growth.
Opportunities for U.S. suppliers in this segment are limited.

###  

### 

### 

### 2.2 Entry Strategy 

The diagram below indicates product flow in this market segment.

Major operators from the institutional catering sector often buy through
central buying offices to ensure that all sanitary and health
requirements are met. These central buying offices negotiate with
potential suppliers based on specific requirements. Suppliers are
selected primarily on the basis of price and quality.

## 3. Competition in the Commercial and Institutional Sectors {#competition-in-the-commercial-and-institutional-sectors .unnumbered}

Domestic food and beverage products dominate the French food service
market. Of imported products, 75 percent originate from EU member
countries, which have several advantages in terms of reduced tariffs and
transportation costs relative to third country imported products. The
table below shows the major supply sources of imported food and
beverages.

+-------------+--------+---------------+------------------------------+
| **Product** | **     | **Major       | **Market Summary**           |
|             | Import | Suppliers**   |                              |
|             | Ma     |               |                              |
|             | rket** | **in 2007**   |                              |
|             |        |               |                              |
|             | *      |               |                              |
|             | *Size, |               |                              |
|             | 2007   |               |                              |
|             | (in    |               |                              |
|             | B      |               |                              |
|             | illion |               |                              |
|             | \$)**  |               |                              |
+-------------+--------+---------------+------------------------------+
| Fish and    | 4.1    | U.K., Norway, | U.K. and Norway are both     |
| seafood     |        | Spain,        | very price competitive and   |
|             |        | Denmark,      | able to supply the fish and  |
|             |        | Netherlands,  | seafood varieties demanded   |
|             |        | USA           | by local consumers.          |
+-------------+--------+---------------+------------------------------+
| Sauces,     | 1.2    | EU countries  | Price competitive and no     |
| salad       |        |               | custom duties. However, the  |
| dressings   |        | USA           | U.S. is able to supply a     |
| and         |        |               | variety of ethnic/regional   |
| seasonings  |        |               | sauces.                      |
+-------------+--------+---------------+------------------------------+
| Canned      | 1.6    | West and      | Price competitive. No duties |
| fruits and  |        | Eastern       | for EU imports.              |
| vegetables  |        | Europe and    |                              |
|             |        | Morocco       |                              |
+-------------+--------+---------------+------------------------------+
| Bison meat  | N/A    | Canada        | Although France is beginning |
|             |        |               | to produce bison meat,       |
|             |        | USA           | Canada remains the major     |
|             |        |               | supplier. U.S. bison meat is |
|             |        |               | less price competitive than  |
|             |        |               | the Canadian meat.           |
+-------------+--------+---------------+------------------------------+
| Wine        | 0.8    | Italy, Spain, | Price competitive since no   |
|             |        | Portugal and  | duties inside the EU.        |
|             |        | New World     | However, \"exoticism\" and   |
|             |        | wines,        | quality create opportunities |
|             |        | including     | for U.S. wines.              |
|             |        | USA.          |                              |
+-------------+--------+---------------+------------------------------+
| Fruit       | 1.0    | Brazil,       | Lower prices from Brazil and |
| juices      |        | Spain, USA    | Spain. However, Florida      |
|             |        |               | juices have a good           |
|             |        |               | reputation.                  |
+-------------+--------+---------------+------------------------------+
| Ethnic      | N/A    | China, Japan, | Given the growth of exotic   |
| Foods       |        | India,        | cuisine, Tex-Mex products    |
|             |        | Africa, USA   | are growing, however,        |
|             |        |               | opportunities exist for      |
|             |        |               | other US/regional cuisine    |
|             |        |               | such as cajun.               |
+-------------+--------+---------------+------------------------------+
| R           | 0.8    | EU countries. | France is a large            |
| eady-to-eat |        | China, Japan, | manufacturer of ready-to-eat |
| meals       |        | India, Africa | meals. Imports from other    |
|             |        |               | countries offer competitive  |
|             |        |               | prices.                      |
+-------------+--------+---------------+------------------------------+
| Dried       | 0.6    | USA, Turkey,  | Lower prices from key supply |
| fruits and  |        | Israel, Iran  | countries. However, U.S.     |
| nuts        |        |               | products dominate in almonds |
|             |        |               | and pistachios.              |
+-------------+--------+---------------+------------------------------+
| Fresh       | 5.7    | Spain, Italy, | Preference is given to EU    |
| fruits      |        | Morocco,      | suppliers and neighborhood   |
| (including  |        | Israel, South | countries having special     |
| grapefruits |        | Africa and    | tariff rates. However,       |
| & exotic    |        | USA.          | Florida grapefruit is a      |
| fruits      |        |               | market favorite.             |
+-------------+--------+---------------+------------------------------+
| Rice        | 0.4    | Thailand,     | France is a producing        |
|             |        | China, India, | country. Thailand, China and |
|             |        | USA           | India offer quality and low  |
|             |        |               | price products. USA mostly   |
|             |        |               | exports brown rice**.**      |
|             |        |               | Biotech testing is a         |
|             |        |               | constraint.                  |
+-------------+--------+---------------+------------------------------+
| Dry legumes | 0.2    | China,        | France grows lentils but     |
| (peas,      |        | Canada,       | imports most all other dry   |
| lentils and |        | Turkey,       | legumes (beans, and peas).   |
| beans)      |        | Argentina,    | USA competitors in the       |
|             |        | USA           | sector offer lower prices.   |
|             |        |               | The US advantage is quality  |
|             |        |               | and variety.                 |
+-------------+--------+---------------+------------------------------+

##  {#section-8 .unnumbered}

## 4. Best Product Prospects {#best-product-prospects .unnumbered}

Frozen foods represent 20 percent of the products used in the food
service industry. Best opportunities for U.S. frozen foods in the food
service sector are for fish and seafood, meat, fruits and vegetables,
frozen deserts (such as cakes and ice creams), ready-to-eat meals and
ethnic/regional sides or meals and bison meat. There is also demand for
salad dressings, tomato sauces and spices.

Other opportunities for U.S. suppliers include: salad dressings, fruit
juices and soft drinks (including flavored spring waters), dried fruits
and nuts, fresh fruits including grapefruits and exotic fruits,
vegetables, frozen foods (ready-to-eat meals and specialty products),
snack foods, tree nuts, ethnic products, seafood, soups, breakfast
cereals, bison meat, and pulses.

## Key Contacts and Further Information 

**Internet Home Pages**

Internet home pages of potential interest to U.S. food and beverage
exporters are listed below:

U.S. Mission to the European Union
<http://useu.usmission.gov/agri/usda.html>

FAS/Washington [www.fas.usda.gov](http://www.fas.usda.gov/)

European Importer Directory
[www.american-foods.org](http://www.american-foods.org/)

FAS/Paris <http://amb-usa.fr/fas/fas.htm>

Web site for Professional Trade Shows and Events
[http://www.salons-online.com](http://www.salons-online.com/)

If you have any questions or comments regarding this report, or need
assistance exporting to France, please contact the U.S. Agricultural
Affairs Office in Paris at:

Foreign Agricultural Service

U.S. Department of Agriculture

Embassy of the United States of America

2, avenue Gabriel

75382 Paris, Cedex 08, France

Phone: (33-1).43.12.2264

Fax: (33-1).43.12.2662

Email: [agparis@fas.usda.gov \<mailto:agparis@usda.gov\>]{.underline}

Home page: [\<http://www.amb-usa.fr/fas/fas.htm\>]{.underline}

Please view our Home Page for more information on exporting U.S. food
and beverage products to France, including market and product "briefs"
available on specific topics of interest to U.S. exporters.

Importer listings are available from the Agricultural Affairs Office for
use by U.S. exporters of U.S. food and beverage products. Recent reports
of interests to U.S. exporters interested in the French market include:

+-----------------------------------------------------------------------+
| +-------+--------------+------------------------------------------+   |
| | **R   | **Name**     | **Hot link**                             |   |
| | eport |              |                                          |   |
| | Num   |              |                                          |   |
| | ber** |              |                                          |   |
| +-------+--------------+------------------------------------------+   |
| | F     | Kosher Foods | <http://www.fas.                         |   |
| | R5016 | in France    | usda.gov/gainfiles/200505/146119632.pdf> |   |
| +-------+--------------+------------------------------------------+   |
| | F     | Organic Food | <http://www.fas.                         |   |
| | R5090 |              | usda.gov/gainfiles/200607/146208245.pdf> |   |
| +-------+--------------+------------------------------------------+   |
| | F     | Dried Fruit  | <http://www.fas.                         |   |
| | R6023 | Annual       | usda.gov/gainfiles/200604/146187422.pdf> |   |
| +-------+--------------+------------------------------------------+   |
| | F     | Fishery      | <http://www.fas.                         |   |
| | R6054 | Products     | usda.gov/gainfiles/200610/146249202.pdf> |   |
| |       | Annual       |                                          |   |
| +-------+--------------+------------------------------------------+   |
| | F     | Product      | <http://www.fas.                         |   |
| | R6055 | Brief: Dried | usda.gov/gainfiles/200702/146280094.pdf> |   |
| |       | Fruits       |                                          |   |
| +-------+--------------+------------------------------------------+   |
| | F     | Product      | <http://www.fas.                         |   |
| | R6056 | Brief:       | usda.gov/gainfiles/200702/146280095.pdf> |   |
| |       | Sweet,       |                                          |   |
| |       | Savory       |                                          |   |
| |       | Snacks &     |                                          |   |
| |       | Snack Bars   |                                          |   |
| |       | in France    |                                          |   |
| +-------+--------------+------------------------------------------+   |
| | F     | Product      | <http://www.fas.                         |   |
| | R6057 | Brief:       | usda.gov/gainfiles/200702/146280096.pdf> |   |
| |       | Sauces       |                                          |   |
| +-------+--------------+------------------------------------------+   |
| | F     | Product      | <http://www.fas.                         |   |
| | R6058 | Brief:       | usda.gov/gainfiles/200702/146280097.pdf> |   |
| |       | French       |                                          |   |
| |       | Market for   |                                          |   |
| |       | Co           |                                          |   |
| |       | nfectionary, |                                          |   |
| |       | Chocolate &  |                                          |   |
| |       | Cocoa        |                                          |   |
| |       | Products     |                                          |   |
| +-------+--------------+------------------------------------------+   |
| | F     | Product      | <http://www.fas.                         |   |
| | R6059 | Brief:       | usda.gov/gainfiles/200702/146280098.pdf> |   |
| |       | N            |                                          |   |
| |       | on-Alcoholic |                                          |   |
| |       | Beverages    |                                          |   |
| +-------+--------------+------------------------------------------+   |
| | F     | Product      | <http://www.fas.                         |   |
| | R6060 | Brief: Tea   | usda.gov/gainfiles/200610/146249284.pdf> |   |
| +-------+--------------+------------------------------------------+   |
| | F     | Product      | <http://www.fas.                         |   |
| | R6065 | Brief: Nuts  | usda.gov/gainfiles/200702/146280103.pdf> |   |
| +-------+--------------+------------------------------------------+   |
| | F     | Wine Annual  | <http://www.fas.                         |   |
| | R7006 |              | usda.gov/gainfiles/200702/146280108.pdf> |   |
| +-------+--------------+------------------------------------------+   |
| | F     | B            | <http://www.fas.                         |   |
| | R7022 | iotechnology | usda.gov/gainfiles/200707/146291890.pdf> |   |
| |       | Annual       |                                          |   |
| |       | Report       |                                          |   |
| +-------+--------------+------------------------------------------+   |
| | F     | Food &       | <http://www.fas.                         |   |
| | R7023 | Agricultural | usda.gov/gainfiles/200708/146291922.pdf> |   |
| |       | Import       |                                          |   |
| |       | Regulations  |                                          |   |
| |       | and          |                                          |   |
| |       | Standards    |                                          |   |
| |       | Annual       |                                          |   |
| +-------+--------------+------------------------------------------+   |
| | F     | Ready to eat | <http://www.fas.                         |   |
| | R7041 | and Snack    | usda.gov/gainfiles/200712/146293360.pdf> |   |
| |       | Market       |                                          |   |
| +-------+--------------+------------------------------------------+   |
| | F     | Halal Food   | <http://www.fas.                         |   |
| | R7042 | Market       | usda.gov/gainfiles/200801/146293395.pdf> |   |
| +-------+--------------+------------------------------------------+   |
| | F     | GOF Action   | <http://www.fas.                         |   |
| | R8008 | on Biotech   | usda.gov/gainfiles/200806/146294857.pdf> |   |
| |       | -- One Year  |                                          |   |
| |       | Overview     |                                          |   |
| +-------+--------------+------------------------------------------+   |
| | F     | Retail Food  | <http://www.fas.                         |   |
| | R8009 | Sector       | usda.gov/gainfiles/200806/146294851.pdf> |   |
| +-------+--------------+------------------------------------------+   |
+-----------------------------------------------------------------------+

For more information on exporting U.S. agricultural products to other
countries, please visit the Foreign Agricultural Service home page at:
[www.fas.usda.gov](http://www.fas.usda.gov/)

[^1]: