Required Report - public distribution

**Date:** 3/1/2005

**GAIN Report Number:** FR5016

FR5016

######## France

**Kosher Foods**

**French Kosher Report**

**2005**

**Approved by:**

![](media/image1.wmf)Besa L. Kotati

U.S. Embassy

**Prepared by:**

Laurent J. Journo & Roselyne Gauthier

**Report Highlights:**

The European kosher market is currently estimated to be valued at \$6
billion. France is a major market currently estimated at \$549 million
and an international trading center for kosher products. Both imported
and domestic products are distributed not only in specialized retail and
kosher stores, but also in kosher sections of the largest supermarkets
in France and across Europe. Many French consumers consider kosher food
products to be healthy, of high quality, natural, and good tasting. Best
prospects for kosher foods are gourmet-style products including wines,
matzos, sauces, snacks, soups, crackers, confectionery and vegetarian
dishes.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Paris \[FR1\]

\[FR\]

Note: Average Exchange Rate:

\- Calendar Year 2002: USD 1 = 1.05 Euros

\- Calendar Year 2003: USD 1 = 0.884 Euros

Source: European Central Bank

**SECTION I. SUMMARY**

Less than 30 years ago, France\'s kosher food market was considered a
niche-ethnic market. However, today, France is a major market and an
international trading center for kosher products, currently estimated at
\$6 billion for Europe (\$549 million for France). The French market has
been growing by an average of 16 percent per year since the late 1990s.
Kosher foods in France and Europe are consumed by a wide range of
consumers who consider kosher products to be healthy, high quality,
natural, and good tasting.

More than 80 percent of France\'s Jewish population is of Sephardic
origin, which is heavily influenced by Mediterranean-style food. The
Sephardic influence can be seen in the offerings of more than 300 kosher
restaurants, bakeries, and other eating establishments in Paris alone.
Imported and domestic kosher products are distributed not only by
specialized retailers and kosher shops, but they can also be found in
special kosher sections of major supermarkets throughout France. Best
prospects for kosher foods in France are gourmet-style products
including wines, sauces, snacks, vegetarian food products,
confectionery, matzos and Passover products.

  ----------------------------------- -----------------------------------
  **Advantages**                      **Challenges**

  U.S. suppliers are seen as reliable Increasing competition in dairy,
  with high quality, innovative       meat, grocery products including
  kosher products.                    confectionery and wine, especially
                                      from Israel and Europe.

  There is a large variety of U.S.    French manufacturers import kosher
  kosher food ingredients.            food products and ingredients
                                      mainly from other European
                                      countries and Israel.

  Kosher foods are not subject to     Educating French and European
  import quotas.                      consumers about the added
                                      reliability, traceability and
                                      safety of kosher products

  Kosher certification is used as a   U.S. manufacturers need to tailor
  marketing tool in France and the    their products to meet French
  major U.S. kosher certifications    consumer tastes and preferences.
  are well known in the market.       

  Best prospects are for kosher       Increasing demand for kosher food
  products that are not domestically  has encouraged many French food
  produced or not available in        manufacturers to obtain kosher
  sufficient quantities.              certification and resulted in
                                      increased competition for imports.

  In addition to the Jewish           Many consumers of kosher products
  community, many French consumers    prefer locally or regionally
  who are lactose-intolerant and/or   produced foods to imports, which
  vegetarian look for kosher pareve   are also more expensive.
  food products.                      
  ----------------------------------- -----------------------------------

**SECTION II. KOSHER CERTIFICATION ACCEPTANCE/PREFERENCE**

In order to be recognized as kosher, products must be certified by a
certifying agency with a rabbinical affiliation. In France, there are
several organizations that handle kosher supervision and certification.
The major organizations include:

-   Beth Din de Paris (under the supervision of the Grand Rabbi of
    Paris, Rabbi David Messas), which certifies over 60 percent of
    French kosher food establishments

-   Rabbinat Loubavitch de France (Rabbi Hillel Pewner)

-   Communauté Israélite de Paris CIOP (Rabbi Mordechai Rottenberg)

-   Rabbinat de Marseille

-   Beth Din de Lyon

-   Beth Din de Strasbourg (Rabbi Mordechai Seckbach)

-   Rabbinat de Moselle (Rabbi Bamberger)

Each organization has its own logo. Some rabbis who do not belong to any
of the organizations noted above certify kosher products under their own
name. In addition, rabbis who do belong to these supervision
organizations are permitted to certify kosher products under their own
name as well.

In France and other European countries, there is no equivalent of the
major U.S. kosher certifiers such as the OU or OK. Nevertheless, the
Consistoire de France is working on a new certification: ECK.f (European
Central Kashrus France), which it hopes will become a standard
throughout Europe. Given the great number of supervision agencies and
rabbis now certifying kosher products, it will be a challenge to develop
consumer awareness and recognition in Europe of any single kosher
certification.

**SECTION III. CONSUMPTION AND MARKET SECTORS**

**A. Consumption**

France\'s Jewish community is comprised of two main groups: the
Sephardim from Mediterranean basin countries including Algeria, Lebanon,
Morocco, Syria and Tunisia, and the Ashkenazim from Northern and Eastern
European countries. Among the Jewish community, the religious calendar
drives kosher food consumption in France. Consumption increases during
religious holidays, especially Passover, Shavuot, Rosh Hashanah, Yom
Kippur, and Sukkoth. In addition, personal and family celebrations
(birthdays, births, weddings, bar/bat mitzvahs, etc) and professional
events contribute to increased household and institutional consumption
of kosher foods. However, in the mainstream market, consumption of
kosher products takes place throughout the year and is not subject to
seasonal influences.

It is estimated that the mainstream market accounts for about 60 percent
of kosher food consumption. The consumers primarily include:

-   Muslims and other ethnic or religious groups

-   Vegetarians and lactose intolerants, who purchase a significant
    amount of kosher pareve products due to the assurance that pareve
    foods contain neither meat nor dairy ingredients

-   Many mainstream consumers select kosher products for different
    reasons; taste, cultural traditions, a reputation for high quality,
    and/or a perception of sanitary and quality assurance provided by
    the kosher certification.

French consumer preferences for kosher products are mainly:

-   Grocery products

-   Beverages

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-   Dairy products

-   Fish

-   Frozen foods

-   Fresh catering products

Leading criteria for consumer choice of kosher products:

-   The certification logo

-   The list of ingredients

-   The taste of the product

-   Attractive packaging

**B. Market Sectors**

***1. Retail Foods***

*A. Entry Strategy*

Wholesalers are key to the kosher sector in France. They buy directly in
large quantities from producers and manufacturers and then resell to a
wide variety of distributors, supermarket chains, other retail stores,
specialty stores and small outlets in neighborhoods with large Jewish
populations. The limited number of wholesalers in the kosher food sector
has empowered them as market gatekeepers. As a result, most distributors
must work with them to be able to offer a full array of certified
products.

According to a recent study, several distributors, including Kineret
(under the name of Cash-Cacher Naouri), Emeth, Eldaï, Yarden and
Zouagui, handle approximately 90 percent of the available kosher
products in the market.

The majority of the wholesalers import about 50 percent of their
products from Israel. Other products are manufactured in France or
imported from other countries (including frozen meat from Argentina).

U.S. suppliers who want to penetrate the French kosher market need to
approach these wholesalers. FAS Paris maintains a list of the
wholesalers, which is available to U.S. food and beverage suppliers upon
request.

U.S. kosher certification is a strong marketing advantage and the major
U.S. kosher certifications are recognized in France (OU, OK, Star-K,
Kof-K). The OU and OK are the most recognized in the French market; they
have participated in important French trade shows and have opened branch
offices in Europe. Over the last few years, a number of French suppliers
and wholesalers have attempted to have their food products approved by a
U.S. kosher certifier as part of an effort to export to the United
States.

###### B. Market Summary

In term of sales, the wholesalers account for 31 percent of the market,
supermarket chains and retail stores for about 49 percent, and the
foodservice sector for about 20 percent. According to a recent study,
over the past ten years, 71 percent of French supermarket chains
developed a kosher strategy that features the establishment of a
dedicated in-store kosher section and the introduction of new
kosher-certified products. This strategy illustrates the dynamism and
growing interest among mainstream retailers in kosher food marketing.

Leading French brands are also considering the growing kosher market.
Several companies, including Yoplait, Flodor, Andros, Epi, Daregal and
Ancora-Maille, now offer a range of kosher food products. In addition, a
number of French manufacturers have begun to modify the taste attributes
of some kosher products to appeal to the mainstream market.

The distribution network for kosher products has expanded and kosher
products are more widely available in France. Many retailers have added
kosher products to their mainstream lines in order to offer a greater
variety of products in their large format stores. Other marketing
opportunities have emerged, as new hypermarket centers have opened in
many areas of the country, including the western and southeastern
regions of France and the Paris metropolitan area.

*C. Company Profiles*

The first retail stores to open in the kosher sector were
small-specialized outlets in neighborhoods with large Jewish
populations. Subsequently, kosher retail chains began opening in the
Paris and Lyons areas as well as southeastern France. Cash Cacher Naouri
has 17 stores (16 in the Paris area and one in Nice); its main
competitor is Hypercacher with six stores in the Paris area. Casher
Price has four outlets in the Paris area and one in Lyons. Super Cash
has several outlets in Paris, Toulouse and Nice. A specialized kosher
butcher chain, Bucher Chain André Krief, has developed a new e-business
concept, and has begun to deliver kosher products nationwide to meet the
demand of communities that lack access to kosher stores or supermarkets
with kosher products.

Some of the large mainstream supermarkets that feature kosher food
sections and have expanded their kosher sections and diversified their
kosher product inventory include Carrefour, Auchan, Géant, Monoprix,
Leclerc and Super U. Although these chains represent about ten percent
of the kosher food retail sales, their share is growing. Despite the
mainstream retailers' growing interest in kosher, supermarket buyers in
France do not procure kosher food products at the large national
wholesale food markets. The retail chains that are able to procure large
volumes and varieties of kosher products work with a small network of
kosher food wholesalers to supply their stores.

*D. Sector Trends*

In general, there are three different ways that French retailers display
kosher products.

1)  Kosher food products often share shelf space with ethnic products.
    Some supermarket chains treat kosher foods like ethnic products, and
    they might display kosher products next to Asian or Italian food
    products. Carrefour Bercy 2, Carrefour Créteil, Super U, and Casino
    Marseille feature this type of display. They offer a wide variety of
    products, including grocery products, beverages, fresh products and
    sometimes frozen products.

2)  Some stores stock kosher food products with conventional products of
    the same category (grocery, catering-fresh products, etc.), although
    the kosher products may be specifically designated by shelf panels
    and displayed on their own shelves. The chains featuring this type
    of display include Auchan and Leclerc.

3)  Other supermarkets, usually small store formats (such as Franprix),
    feature a limited display of kosher foods that could include some
    fresh products (e.g. tarama, humus and variety meats).

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***2. Food Ingredients***

*A. Entry Strategy*

All kosher products and ingredients must meet the following
requirements:

-   All ingredients must be kosher-certified.

-   Product manufacturing processes must conform to kashrus regulations.

The best way for U.S. kosher ingredient suppliers to target the French
kosher food processing industry is either to work directly with the food
processors or through wholesalers. In fact, kosher wholesalers in France
who supply both the retail and

foodservice sectors contact food processors directly as per their needs
to meet customer demand (regarding new products, etc.).

*B. Market Summary*

Sources indicate that there are approximately 120 kosher manufacturers
and processors in France mainly processing meat and dairy products. No
figures are available as to the size and growth rate of the overall
kosher foods/food-processing industry. Imported raw
materials/ingredients represent about 34 percent of the total domestic
supply; they are sourced mainly from other European countries, but also
from Israel and the United States. The amount of raw
materials/ingredients imported from the United States is not known.
However, surveys indicate that France needs a large and varied supply of
imported food ingredients and intermediate products to meet the current
large demand and to accommodate market expansion in the future.
Opportunities exist for U.S. suppliers of additives, preservatives,
flavorings, spices, condiments, sauces, citrus-related products and
nuts. There are also opportunities for any ingredient that could be used
to manufacture a number of high value products, such as gourmet-style
products, snacks, soups, crackers, confectionery and vegetarian dishes.

###### C. Company Profiles

In France, there are between 500 and 600 companies exclusively handling
kosher products, of which:

-   18 percent are meat and dairy processors, with annual sales
    estimated at \$62 million.

-   26 percent are wholesalers, distributors and seasonal manufacturers.
    40 percent of these companies sell to supermarkets and 60 percent to
    specialized retail stores.

-   40 percent are retailers.

-   16 percent are hotels/restaurants and foodservice providers.

*Sector Trends*

The ten largest French kosher food manufacturers produce and distribute
kosher foods throughout Europe. In general, locally manufactured kosher
products are more price-competitive than imported kosher products.
Producers of kosher foods are now launching new products on the market,
such as biscuits, dairy foods, candies and even organic/health and
specialty-ethnic foods.

***3. Foodservice Products***

In France, the foodservice sector is booming and kosher catering in some
large establishments in Paris comprises as much as 10-12 percent of the
sector's overall business. Also, airline caterers, such as Servair, the
number one airline caterer in France, have developed facilities to
produce kosher meals. In 2002, the company expanded its offerings to
include kosher vegetarian meals. The variety of kosher meals produced
for airlines now meets a wide range of customer needs, from breakfast to
cold and hot meals for all passenger categories (first-class, business
and economy menus).

Sales to the Servip company represent about 20 percent of the kosher
catering sector's sales. Servip, which was created in 1993, specializes
in long shelf-life meals for international catering. The company
supplies airlines, sea and rail companies, as well as hospitals.
Servip's clients include large international companies that account for
about 70 percent of the international airline market.

Servip buys food and ingredients in bulk from Israeli and French
manufacturers and packages meals according to specific customer needs
(under the authority/control of the Madrid rabbinate). Servip's product
line includes 80 different kosher meals.

The estimated value of sales to the kosher hotel/restaurant/foodservice
sector in France is approximately \$22 million.

# 

# SECTION IV. PRODUCTION AND PROMOTION 

####### A. Production

France is the leading European market for kosher foods due to the large
number of kosher consumers and to the size of its kosher food industry.
The Jewish community in France is the largest on the continent and there
are about 5,000 institutions that buy kosher products. The ten leading
French kosher suppliers manufacture and distribute their products
throughout Europe. As noted previously, kosher products manufactured in
France are usually less expensive than imported products.

Retailers, including supermarket chains (Auchan, Franprix, Carrefour and
Leclerc) and specialized retail stores (Cash Cacher Naouri and
Hypercasher) -- carry both imported and local products.

There are over 160 kosher wines produced in France. The French-Jewish
community consumes a significant amount of wine, not only for the
Sabbath and holidays, but also at regular meals. In addition, wine is
imported mainly from Israel. However, some American wines have been
introduced in the French market, including Baron Herzog (California),
and various others from New York State.

**B. Promotion**

Some French manufacturers/wholesalers of kosher food products are now
focusing on the U.S. market and looking for new sales opportunities. In
recent years, there has been an increase in the number of French
products certified by the Orthodox Union (OU) and other kosher U.S.
certifiers (French wine in particular). Trade shows, such as Kosherfest,
have attracted an increasing number of French buyers as well as
exhibitors. Due to the lack of data, it is difficult to measure French
exports to the United States.

**SECTION V. PROMOTIONAL ACTIVITIES**

French wine wholesaler Sieva and Royal Wine Europe often organize wine
tastings to increase their sales in the kosher and non-kosher markets.
Wines from France, Israel, the United States and other countries are
displayed and tasted at these events.

Although, a number of U.S. products interest French wholesalers, there
are several market constraints including:

-   High freight costs

-   Customs taxes

-   EU regulations on color agents, GMOs, hormones, and translation into
    French of nutritional information for labels

The flavors and packaging of some traditional Jewish foods manufactured
in the United States, which are kosher, do not suit the tastes or meet
the requirements of the French market.

Per FAS/Paris' recommendation, a few years ago, the USDA endorsed
Eurokosher, the French kosher trade show, and the Office of Agricultural
affairs in Paris organized a USA Pavilion in 2001. However, the show has
not continued due to security and other issues. In response, FAS/Paris
organized French buyers missions to the Kosherfest show, held annually
in the United States, during 2002, 2003 and 2004 (with French buyers'
purchases valued at nearly \$1.5 million in 2003). In 2006, FAS/Paris
plans to organize a trade mission in France for U.S. kosher food
manufacturers and distributors to meet members of the French kosher
industry. U.S. suppliers interested in this activity may contact the
Office of Agricultural Affairs at the address shown below.

**SECTION VI. POST CONTACTS AND FURTHER INFORMATION**

-   **Trade Shows in France:**

###### World Specialty Ethnic Food Show (including Halal and Kosher)

Paris -- Porte de Versailles

June 7-8, 2005

###### Organizer: Algodoal & Cie

###### Tel: (33-1) 45 23 81 10 or 81 11

###### Email:ethnicfoodmail@aol.com

Web: www.ethnicfoodshow.com

###### 

###### International Food Show (SIAL)

###### Parc des Expositions -- Paris-Nord Villepinte 

###### October 22-26, 2006

###### Organizer: IMEX Management, Inc.

###### Tel: (704) 365 0041

###### Email: sial@imexmgt.com

###### Web: www.sial.fr 

###### 

-   **Kashrus Certification:**

*Consistoire de Paris :*

[***www.consistoire.org***](http://www.consistoire.org/)

*Rabbinat de Loubavitch:*

***<http://www.loubavitch.fr/pages/intro.asp>***

-   **For lists of Kosher food importers/distributors and wholesalers in
    France, please contact:**

*American Embassy*

*Office of Agricultural Affairs*

*2, avenue Gabriel -- 75382 Paris, Cedex 08*

###### Tel: (33-1) 43 12 2264/2245

*Fax: (33-1) 43 12 2662*

*Email: <agparis@usda.gov>*

*Internet:
[www.amb-usa.fr/fas/fas.htm](http://www.amb-usa.fr/fas/fas.htm)*

For more information on exporting U.S. food products to France, visit
our homepage. The Office of Agricultural Affairs homepage includes
information on the hotel, restaurant and foodservice sector, and the
retail food sector; as well as Food and Agricultural Import Regulations
and Standards, product briefs on the market potential for U.S. products,
and upcoming promotional trade shows and fairs in France.

For more information on exporting U.S. agricultural products to other
countries, please visit the Foreign Agricultural Service home page:

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