Required Report - public distribution

**Date:** 11/9/2004

**GAIN Report Number:** GM4044

GM4044

**Germany**

**Retail Food Sector**

**Report**

**2004**

**Approved by:**

![](media/image1.wmf)Karina Ramos

U.S. Embassy

**Prepared by:**

Karina Ramos/Christel E. Wagner

**Report Highlights:**

Although Germany's stagnant economy has affected retail sales, including
sales of food products, retail sales data indicates that real food sales
may be recovering. In 2003, total sales (turnover) by retailers of food
and beverage in Germany was Euro 123.4 billion (or \$ 139.6 billion)
compared to Euro 120.5 billion (\$ 113.9 billion) in 2002. Combined with
the small price deflation for food, this represents an almost 2 percent
real increase in turnover after several years of relatively flat real
growth. Despite slower growth in the discount segment, it will remain an
important driver in future German food retail growth.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Berlin \[GM1\]

\[GM\]

[I. Market Summary 2](#i.-market-summary)

[Germany's Retail Profile 3](#germanys-retail-profile)

[Table: Composition of Germany's Food and Beverage Retail Trade:
3](#table-composition-of-germanys-food-and-beverage-retail-trade)

[Advantages/Opportunities and Challenges Facing U.S. Products in Germany
4](#advantagesopportunities-and-challenges-facing-u.s.-products-in-germany)

[II. Road Map for Market Entry 4](#ii.-road-map-for-market-entry)

[\"Traditional\" Retail Outlets- Supermarkets, Superstores, Hyper
Markets or Super Centers, Club and Warehouse Outlets
4](#traditional-retail-outlets--supermarkets-superstores-hyper-markets-or-super-centers-club-and-warehouse-outlets)

[Entry Strategy 4](#entry-strategy)

[Table: Food and Beverage Retailing Profile
6](#table-food-and-beverage-retailing-profile)

[Table: Top ranked Retail Stores in Germany 2003
8](#table-top-ranked-retail-stores-in-germany-2003)

[Chart: A Breakdown of the German Discount Market
9](#chart-a-breakdown-of-the-german-discount-market)

[Table: Gross Sales for the leading Discount Stores in Germany
9](#table-gross-sales-for-the-leading-discount-stores-in-germany)

[Convenience Stores, Gas Stations, Kiosks, Etc.
10](#convenience-stores-gas-stations-kiosks-etc.)

[Buying Associations (Groups) 10](#buying-associations-groups)

[Other Channels 11](#other-channels)

[III. Competition 11](#iii.-competition)

[Biotechnology 12](#biotechnology)

[IV. Best Product Prospects 12](#iv.-best-product-prospects)

[V. Upcoming Trade Shows 13](#v.-upcoming-trade-shows)

[VI. Contacts for Further Information
14](#vi.-contacts-for-further-information)

[VII. Currency Conversion Rates and Definitions
14](#vii.-currency-conversion-rates-and-definitions)

# I. Market Summary

Germany, with its 82.5 million people (or 18 percent of the EU 25
population) and the largest economy in Europe, is a leading European
market for foods and beverages. However, Germany's stagnant economy has
affected retail sales, including sales of food products. In 2003, total
sales (turnover) by retailers of food and beverage in Germany were Euro
123.4 billion (or \$ 139.6 billion) compared to Euro 120.5 billion (\$
113.9 billion) in 2002. Despite slower growth in the discount segment,
it will remain an important driver in future German food retailing.

In addition to the Euro 123 billion recorded by the organized food
retailers such as supermarkets, hypermarkets, discount stores, and small
traditional retail stores, food products are also sold by bakeries,
butcher shops, farmer's markets, drugstores, gas stations, kiosks, and
other retail venues. For example, an additional Euro 36 billion in food
and beverage sales was recorded by restaurants, canteens, and snack
shops (imbiss) where food and beverages are served on-premise. Bakeries
(bread stores), pastry shops and butcher shops also recorded Euro 27
billion in sales in 2003. This correlates with the Euro 193 billion
German consumers report spending on food and beverage products
(including tobacco) in 2003. According to the German Federal Statistics
Office, 129.2 billion (approx. \$122 billion) was spent by German
consumers on food alone (excluding beverages), or about 11 percent of
total expenditures. Monthly German household expenditures on food
(excluding beverages) averages about Euro 282.

In 2003, Germany imported consumer-oriented agricultural products valued
at \$656.1 million from the U.S., up from \$596.5 million a year
earlier. Approximately one-third of all U.S. agricultural exports to
Germany are in this category.

The major competitors in the consumer-oriented market are other EU
countries, particularly the Netherlands, France, Italy and Spain. The
U.S. is the second largest non-EU supplier of consumer-oriented products
to Germany, following Turkey.

## Germany's Retail Profile

Germany's retailing sector can be characterized as very competitive,
highly complex and intertwined, and currently in the process of
considerable consolidation. Margins are perhaps thinner than anywhere
else in Europe, which together with a well-developed distribution
system, results in a very competitive sector.

The most dynamic segment within Germany's retail trade is the discount
store segment, which is fiercely competitive with the largest two
discount companies -- Aldi and Lidl -- engaged in a price war since
2002. In 2003, Lidl recorded an astonishing 21 percent growth in sales
from 2002, compared to Aldi's 4.3 percent growth. In terms of annual
sales, discounters comprised 38.4 percent of the retail market in 2003,
up from 26 percent in 1993 and 37 percent last year. Most of the
products marketed by discounters are private label products.

##  Table: Composition of Germany's Food and Beverage Retail Trade: 

![](media/image2.wmf){width="5.9944444444444445in"
height="1.3881944444444445in"}

Due to the growth in the discount segment, the majority of traditional
retailers like Edeka, Rewe, Spar, and Tengelmann have started to develop
and further invest in their own discount store chains/niches. In direct
response to the threat by discount stores, many food retailers have also
increased the use of private labels in their stores in order to reduce
prices for consumers while maintaining quality.

In addition to quality and price, German consumer spending patterns are
also driven by convenience. Despite the consolidation of retailers and
the increasing popularity of discounters, German consumers continue to
frequent small convenience stores despite the higher prices, especially
if these stores are open longer hours (as is the case with stores in
train stations and gas stations) and carry ready to eat meals. In these
cases, sales are motivated by convenience rather than price.

Large retailers have applauded a new German law extending retail hours.
Under the new German law, retail stores can stay open Monday through
Saturday until 8 pm. Although Germany still lags behind France, UK,
Denmark and other European countries, which have much more liberal store
hours, these changes are making a moderate contribution to the slight
increase in retail sales.

Buying associations or buying groups also play an important role in
German retailing. These associations or groups are often operated by a
wholesale company, which may do the purchasing, marketing and provide
other services for independent retailers. Markant is the largest such
buying association in Germany.

## Advantages/Opportunities and Challenges Facing U.S. Products in Germany

  -----------------------------------------------------------------------
  **Advantages/Opportunities**        **Challenges**
  ----------------------------------- -----------------------------------
  Germany's 82.5 million inhabitants  Very competitive market combined
  have one of the highest income      with low growth in retail sales.
  levels in the world.                

  Germany is among the largest        German (EU) import tariffs on
  food/beverage importing nations in  certain products are high. EU
  the world.                          enlargement will give preferential
                                      access to products from accession
                                      countries.

  Fast growing market for organic     German buyers demand quality, but
  products.                           also low prices; discounters are
                                      fastest growing segment of retail
                                      market.

  Germany has many, well-established  Retailers often charge high listing
  importers. Distribution system is   fees for products.
  well developed.                     

  The "American-Way-of-Life" and      Margins on food at retail are very
  U.S.-style foods are popular,       thin.
  principally among the affluent      
  younger generation.                 

  Large non-German population and     Retailers seldom import products
  German's penchant to travel abroad  into Germany (EU) on their own.
  help fuel demand for a variety of   
  foreign products.                   

  Private label products are popular, It can be a challenge for U.S.
  not only in discount stores but are companies to promote a particular
  also being utilized by              brand.
  supermarkets.                       
  -----------------------------------------------------------------------

# II. Road Map for Market Entry

## \"Traditional\" Retail Outlets- Supermarkets, Superstores, Hyper Markets or Super Centers, Club and Warehouse Outlets

## Entry Strategy 

Success in introducing your product in the German market normally
depends on local representation and personal contact. The local
representative should be able to provide market information and guidance
on business practices and trade-related laws, sales contact with
existing and potential buyers, market development expertise, and the
distribution system. The local representative may or may not also be the
importer and distributor. The Agricultural Affairs Office in Berlin
maintains extensive listings of potential importers and maintains
information about ongoing activities that provide opportunities to meet
the German trade[^1].

Each of Germany's leading retail groups has a different business
structure and purchasing and distribution system. Many of the leading
retailers have multiple retail chains, often with various types of
retail formats, i.e., large hypermarkets, discount and small
neighborhood stores, or perhaps beverage and/or delicatessen outlets.
The purchasing departments for the large retailers may also be divided
by retail format and, sometimes, by region of the country.

[Specialized Importers]{.underline}. Specialized importers normally
handle the importation and marketing of food and beverages sold in
German retail establishments. These importers often specialize in
products or product groups (including from a particular country) and
frequently distribute products nationwide, either through their own
sales force or through a distribution network of independent sales
agents.

[Selling Direct]{.underline}. Direct sales to the central purchasing
department of one of Germany's leading retailers is typically very
difficult, as most German retail buyers are usually not interested in
taking on the added responsibility or the time and resources necessary
to import products directly.

This is especially true for new-to-market products, which may not comply
with German/EU import requirements, food laws and packaging and labeling
requirements. Retail buyers may only be interested in importing products
directly if they are unique or possess some specific attribute or offer
significant advantages in terms of quality, price or financial
promotional support.

## Table: Food and Beverage Retailing Profile

Retail Food/Beverage Sales, Number of Retail Outlets, 2000-2003

  -------------- ----------- ----------- ----------- ----------- -----------
                                                                 **5-yr
                                                                 Growth
                                                                 Rate**

  **Category**   **2000**    **2001**    **2002**    **2003**    

  Total Sales    115.8       118         120.4       123.4       8.15%
  (billion                                                       
  Euros)                                                         

  Total Sales    107         105.7       113.9       139.6       10.09%
  (billion U.S.                                                  
  Dollars)                                                       

  Share of top 5 63.50%      68.00%      68.00%      73.00%      14.96%
  retailers (%                                                   
  of total                                                       
  sales)                                                         

  Share of top   84.00%      90.00%      90.00%      90.00%      7.66%
  10 retailers                                                   
  (% of total                                                    
  sales)                                                         

  Retail outlets 70.3        68.4        66.8        64.9        -11.58%
  (1,000)                                                        
  -------------- ----------- ----------- ----------- ----------- -----------

> Note: Sales by the organized food retail industry.
>
> Source: EuroHandels Institute (EHI), A.C. Nielsen.

In 2003, Germany's retailers registered annual food and beverage sales
(turnover) of Euro 123.4 billion (\$139.6 billion). Combined with the
small price deflation for food, this represents an almost 2 percent real
increase in turnover after several years of relatively flat real growth.
In the past 5 years (1998-2003) food/beverage sales grew about 8
percent. Once food price inflation was taken into account, real retail
sales for food and beverages during this period grew by 5 percent. Most
of this growth was over the last two years where according to official
statistics, food sales not only grew but the growth also outpaced food
price inflation. For 2003, official statistics record a small price
deflation for food and beverages. Despite a resumption in real sales
growth, the food industry remains cautious and concerned about future
growth as thin margins, fierce competition, and reported weak consumer
demand continue to make Germany a tough market for food retailers. News
reports about the state of the German food retail sector are thus still
quite somber.

Despite efforts by the German government to protect small retailers, the
market share of small retailers continues to drop. In 2003, small
traditional shops comprised only 11.7 percent of the food retail market.
At the same time, the concentration of giant retail organizations in
Germany has increased dramatically and is expected to continue in the
near future as competition laws continue to be loosened. In particular,
large hypermarkets and discount chains are dominating the German market.
In 2003, the top five food and beverage retailers accounted for 73
percent of national sales and the top ten accounted for 90 percent of
national sales. Per current trends, the five largest food and beverage
retailers are well on their way towards accounting for 75 percent of
national food and beverage retail sales by 2010. The top five largest
German retailers of food and beverages (Rewe, Edeka, Aldi, Metro,
Schwarz/Lidl) also rank among the top ten retailers in Europe.

With relatively flat domestic retail food sales, German retailers have
sought to expand their sales \-- and gain market share \-- by buying-out
their competitors, opening new stores, and by focusing on markets
outside of Germany. Many of the major German retailers already generate
a significant portion of their total sales from non-German operations.
For example, the following German retailers had significant sales
outside of Germany in 2002: Metro (46 percent), Aldi (38 percent),
Tengelmann (56 percent), Schwarz-Gruppe (31 percent) and Rewe (23
percent). Edeka stands out with only 8 percent of sales outside Germany.

In September 2004, Wal-Mart celebrated its 7-year anniversary on the
German retail market. In 1997, Wal-Mart purchased 21 hypermarket outlets
previously owned by the Wertkauf Group, followed by the purchase of 74
hypermarket outlets from Spar AG in late 1998. New super centers were
built in Guettersdorf (2001), Pattensen (2001), and Bergkamen (2002).
Although Wal-Mart is the 13th largest retailer in Germany, the chain
continues to struggle to attract customers and establish itself as a
dominant player in the German market. In summer 2004, Wal-Mart announced
the closure of one of its stores in Germany. In 2003, Wal-Mart recorded
sales of \$3.19 billion in Germany. Food products comprise about 50
percent of Wal-Mart's gross sales in Germany.

## 

##  

## Table: Top ranked Retail Stores in Germany 2003

![](media/image3.wmf){width="5.829861111111111in"
height="5.701388888888889in"}

There are also major changes occurring in how food and beverages are
being marketed in Germany. Small local shops and supermarkets still
comprise the bulk of outlets but they are increasingly being replaced by
large hypermarkets and discount food stores. Hypermarkets and
discounters now account for about 60 percent of all retail food and
beverage sales, despite accounting for less than one-quarter of all the
outlets. Metro AG is Germany's largest operator of hypermarkets and Aldi
the leading operator of discount markets, followed closely by the
Schwarz Group (Lidl).

## 

## 

## Chart: A Breakdown of the German Discount Market

![](media/image4.wmf)

The discount segment has been the most dynamic retail segment in
Germany. Discounters have prospered in recent years, as German consumers
have become more and more price conscious. In addition, discount stores,
which generally tend to be small in size, have benefited from German
laws favoring small retailers. In 2003, growth in the discount segment
has slowed down after a decade of strong growth. Currently, in terms of
sales, discount stores comprise 38.4 percent of the retail food market
up from 26.3 percent a decade ago and 37 percent a year ago. The number
of discount stores also grew during this time period from 9,300 to
14,200. Aldi is the largest discounter with about 46 percent of the
discount market, on a sales basis but in 2003 Lidl recorded stronger
sales growth than Aldi.

## ![](media/image5.wmf){width="4.472916666666666in" height="2.665277777777778in"}Table: Gross Sales for the leading Discount Stores in Germany

Most of the German consumers perceive the quality of discount products,
particularly Aldi's, to be as good as branded products found in
supermarkets and other retail-type stores. High quality products,
convenient locations, combined with lower prices make discount stores a
favorite shopping option for Germans. According to a poll conducted by
AC Nielsen, German consumers spend about \$21 per visit to Aldi compared
to \$23 in hypermarkets, \$15 in other discount stores, and \$13 in
supermarkets.

## Convenience Stores, Gas Stations, Kiosks, Etc.

####### Entry Strategy

Convenience outlets \-- small shops, often located at gasoline and train
stations, highway rest stops, kiosks and bakeries \-- were among the
fastest growing retail formats in Germany. In the last couple of years
growth has leveled off. There are currently 48,000 snack stands and
kiosks in Germany. Although in terms of turnover, over half the
convenience stores in Germany are kiosks or snack stands, convenience
stores in gas stations reported roughly the same amount of turnover with
a much smaller number of outlets. In addition to non-food items, the
most popular items at these outlets include: fruit juice and fruit
drinks, soft drinks, beer, wine, other beverages, confectionery
products, snacks and convenience-type foods. Products sold in these
outlets typically are priced 30-70% higher than in more conventional
outlets. However, sales are motivated by convenience -- especially the
longer store hours -- rather than price.

There are several large wholesalers that supply food and non-food
products to these convenience outlets. The leading supplier to the
convenience sector is Lekkerland-Tobaccoland (L-T), which carries about
10,000 different items and services more than 70,000 customers,
including gas station shops, kiosks, beverage stores and bakeries. In
2003, the turnover of Lekkerland was Euro 7.374 billion, of which food
products accounted for Euro 1.519 billion. Metro, Spar, and Tengelmann
compete with Lekkerland in supplying these convenience outlets in
Germany.

Organizations like Lekkerland, as well as other suppliers to convenience
stores, normally source most if not all of their imported products from
specialized importers. Most U.S. companies interested in exporting to
Germany and in developing a position in the German market are advised to
work with an importer(s) or with an agent/broker that services these
sectors.

## Buying Associations (Groups)

####### Entry Strategy

Buying associations or buying groups play an important role in German
food and beverage retailing. Buying associations are generally operated
by a wholesale company that provides services for a group of independent
retailers.

The largest and last remaining true buying association in Germany is
Markant. Markant members have a total annual turnover valued at about
44.8 billion Euros. Markant is an association of more than one hundred
independent enterprises, selling both food and non-food products. The
goal of the company is to provide a cooperative platform for purchasing
and marketing and providing of services for medium-sized merchants
throughout Germany (and Europe). In Germany, Markant members include a
number of major food retailers, including market leaders
Bartel-Langness, Schlecker, Dohle and Wal-Mart. Markant is part of the
European-wide buying association EMD, whose members have a total annual
turnover valued at over 110 billion Euros.

+-------------------------+----------------------+---------------------+
| Markant                 | Edeka -Gruppe        | Rewe/Fuer Sie       |
|                         |                      |                     |
| Hans                    | New‑York‑Ring 6      | Domstraße 20        |
| ‑Martin‑Schleyer‑Straße |                      |                     |
| 2                       | 22297 Hamburg        | 50666 Köln          |
|                         |                      |                     |
| 77656 Offenburg         | Tel:49-40‑63 77‑0    | Tel:49-221‑1 49‑0   |
|                         |                      |                     |
| Tel:49-781‑61 6‑0       | Fax:49-40‑63 77 22   | Fax:49-221‑1 49 90  |
|                         | 31                   | 00                  |
| Fax:49-781‑61 6‑494     |                      |                     |
+-------------------------+----------------------+---------------------+

#### 

## Other Channels

Home food delivery, mail order, and selling foods and beverages over the
Internet are alternatives to the traditional German retailing sector.
Germany's leading retailers have become more and more involved in
e-commerce with an estimated \$8 billion in business to consumer sales
being conducted on-line. However, the value of food and beverages sold
over the Internet is still very small and is not growing. Home food
delivery is not a new phenomenon in Germany, especially for frozen food.

# III. Competition 

As the world's largest importer of agricultural products, Germany is an
attractive and very sought-after market for exporters throughout the
world. The EU internal market results in food products from the other EU
member states having a competitive advantage in the German market; an
advantage, which cannot be easily overcome by competing third countries.
Approximately two-thirds of Germany's agricultural imports are sourced
from other EU countries, many of which target the German market through
the use of promotional programs. The enlargement of the EU in 2004 will
give products from the accession countries preferential access to the EU
market and will further disadvantage U.S. products in the German market.

In addition to the United States, Germany also imports significant
quantities of agricultural products from other non-EU countries. Much of
the third-country imports are sourced from Eastern Europe, North Africa
and Israel, South Africa, and Latin America and the Caribbean. Germany's
major consumer-oriented product imports from these countries include:
meat and poultry, fresh fruit (particularly bananas), processed fruit
and vegetables, and pistachios.

Third-country promotions for food products in Germany strongly focus on
generic aspects. Examples of these types of promotions are: in-store
promotions, special combined editorial and advertising sections in trade
magazines, and national exhibits at trade and consumer fairs. In
department stores a country may be featured with a full line of food and
non-food products as well as other economic segments, such as tourism.

Consumer-ready processed food products are imported and distributed by a
large number of German importers and import agents. In addition to
cooperative advertisement with importers and suppliers, individual
country promotions in the German retail trade are organized to increase
visibility and awareness of those products and, consequently, increase
distribution. Such promotions in Germany are normally organized and
sponsored (often also financed) by the foreign country\'s Embassy or
other government representation, in close cooperation and coordination
with local importers and the retail organization.

######## 

## Biotechnology

As of April 2004, new EU regulations concerning the labeling and
traceability of GMO and GMO-containing products were put in place. These
regulations require that all products, including processed foods,
produced from approved biotech ingredients must be labeled if
adventitious or intended GMO presence exceeds a threshold level of more
than 0.9 percent of one single ingredient. However, this labeling
requirement does not apply to livestock products even if the animals
have been fed with GMO-containing feedstuffs. Food manufacturers are
still wary that European consumers will not purchase products with a GMO
label. So far, the major German food retailers have avoided stocking
their shelves with labeled GMO products. Instead EU food processors have
substituted other raw materials not derived from genetech products for
GMO ingredients - primarily soybean oil. At the moment FAS Berlin is not
aware of any GMO labeled products being sold on German retail shelves.

#### 

# IV. Best Product Prospects

Below is a list of products identified as having a strong market
potential in Germany and some helpful tips for interested exporters.

  -----------------------------------------------------------------------
  **Best Product     **Tips/Facts**
  Prospects**        
  ------------------ ----------------------------------------------------
  **Snack Foods**    The \$15 billion German snack food market consists
                     mainly of chips and other salty items, followed by
                     specialty snacks and nuts. Growth primarily driven
                     by product innovation, like flavored snacks.

  **Fresh Fruit &    Good opportunities exist for supplying fresh
  Vegetables**       produce, particularly citrus, pears, table grapes
                     and green asparagus, during the winter months
                     (Nov.-Feb.).

  **Dried Fruits &   The market for most nuts and dried fruit is fairly
  Nuts**             stable throughout the year but sales generally peak
                     in anticipation of the Christmas season. Imports are
                     generally in-bulk.

  **Organic          Germany is Europe's largest market for organic
  Products**         products, with sales roughly estimated at \$ 3
                     billion in 2002.

  **Alcoholic        Although overall alcohol consumption is declining,
  Beverages**        the market for imported beer, wine and spirits is
                     stable or growing.

  **Pet Food**       Sales of cat food have the biggest market share,
                     followed by dog food. Market potential exists for
                     premium pet food.

  **Fitness foods    Good prospects for \"functional\" products with
  and beverages**    added nutritional properties such as vitamins and
                     minerals.

  **Frozen Fish**    Good prospects exist for frozen Alaska Pollack and
                     other frozen fish with Marine Stewardship
                     certification (sustainable fishing certification).
  -----------------------------------------------------------------------

For more information on the German market please refer to Germany's
Exporter Guide and the Food and Agriculture Import Regulations (FAIRS)
report.

# V. Upcoming Trade Shows

+-------------------------------+------------+-------------------------+
| **Important German Trade      |            |                         |
| Shows - 2005**                |            |                         |
+===============================+============+=========================+
| **ISM (International Sweets   | January    | U.S. Pavilion           |
| and Biscuit Show)**           | 30-        | Organizer: National     |
|                               | February   | Confectioners           |
| Cologne, Germany (Interval:   | 2, 2005    | Association (NCA)       |
| yearly)                       |            |                         |
|                               |            | Tel: (703) 790‑5750     |
| Target Market:                |            |                         |
| Europe/International          |            | Fax: (703) 790‑5752     |
|                               |            |                         |
| World's largest show for      |            | <http:/                 |
| snacks and confectionery      |            | /www.koelnmesse.de/ism> |
| products.                     |            |                         |
+-------------------------------+------------+-------------------------+
| **Fruit Logistica**           | February   | U.S. Pavilion           |
|                               | 10-12,     | Organizer:              |
| Berlin, Germany (Interval:    | 2005       |                         |
| yearly)                       |            | B\*FOR International:   |
|                               |            |                         |
| Target Market:                |            | Tel: (540) 373-9935     |
| Germany/Central & Eastern     |            |                         |
| Europe                        |            | Fax: (540) 372-1414.    |
|                               |            |                         |
| Good venue for exhibiting     |            | [http://www.fru         |
| fresh and dried fruit, nuts   |            | itlogistica.de](http:// |
| and related products.         |            | www.fruitlogistica.de/) |
+-------------------------------+------------+-------------------------+
| **Bio Fach**                  | February   | U.S. Pavilion           |
|                               | 24-27,     | Organizer:              |
| Nuremberg, Germany (Interval: | 2005       |                         |
| yearly)                       |            | B\*FOR International:   |
|                               |            |                         |
| Target Market: Germany/Europe |            | Tel: (540) 373-9935     |
|                               |            |                         |
| The leading European trade    |            | Fax: (540) 372-1411.    |
| show for organic food and     |            |                         |
| non-food products.            |            | [                       |
|                               |            | http://www.biofach.de]( |
|                               |            | http://www.biofach.de/) |
+-------------------------------+------------+-------------------------+
| ProWein                       | March 6-8, | Show Organizer:         |
|                               | 2005       |                         |
| Duesseldorf, Germany,         |            | Duesseldorf Messe       |
| (Interval: yearly)            |            | Authorities             |
|                               |            |                         |
| Target Market: International  |            | Tel: (49-211) 4560 01   |
|                               |            |                         |
| International Trade Show for  |            | Fax: (49-211) 4560 668  |
| wine and spirits.             |            |                         |
|                               |            | [                       |
|                               |            | http://www.prowein.de]( |
|                               |            | http://www.prowein.de/) |
|                               |            |                         |
|                               |            | <inf                    |
|                               |            | o@messe-duesseldorf.de> |
+-------------------------------+------------+-------------------------+
| **ANUGA**                     | October    | Show Organizer:         |
|                               | 8-12, 2005 |                         |
| Cologne, Germany, (Interval:  |            | Köln Messe              |
| 2 years)                      |            |                         |
|                               |            | Tel: (49-221) 821-0     |
| Target Market: International  |            |                         |
|                               |            | Fax: (49-221) 821-2574  |
| International Trade Show for  |            |                         |
| food and beverages.           |            | [http:/                 |
|                               |            | /www.koelnmesse.de](htt |
|                               |            | p://www.koelnmesse.de/) |
|                               |            |                         |
|                               |            | <info@koelnmesse.de>    |
+-------------------------------+------------+-------------------------+

Note: More information about these and other German exhibitions and
trade shows can be found under the following Internet address:
http://www.auma-messen.de.

# VI. Contacts for Further Information

If you have questions or comments regarding this report, or need
assistance exporting to Germany, please contact the U.S. Agricultural
Affairs Office in Berlin at the following address:

Agricultural Affairs Office

American Embassy

Clayallee 170

14195 Berlin

tel: (49) (30) 8305 - 1150

fax: (49) (30) 8431 - 1935

email: AgBerlin@usda.gov

Home Page: http://www.usembassy.de/

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 German Market include:

Report Title Report Number Month Report was written

  ----------------------- ----------------------- -----------------------
  Wine Report             not yet available       December 2004

  Fish Products Report    GM 4035                 October 2004

  Exporter Guide          GM 4041                 October 2004

  HRI Food Service Sector GM 4028                 August 2004

  FAIRS Report            GM 4027                 July 2004
  ----------------------- ----------------------- -----------------------

For more information on exporting U.S. agricultural products to other
countries, please visit the Foreign Agricultural Service Home Page at
http://www.fas.usda.gov

######## 

# VII. Currency Conversion Rates and Definitions

Yearly Currency Conversion Rates:

> Euro

1999 1 U.S.\$ = 0.93827

2000 1 U.S.\$ = 1.08271

2001 1 U.S.\$ = 1.11656

2002 1 U.S. \$ = 1.0575

2003 1 U.S. \$ = 0.8840 Euro

Store Definitions:

**Hypermarkets** are defined as large retail stores with between 1,500
square meters and 5,000 square meters of sales space, with an emphasis
on self-service. They carry a significant amount of non-food items.

**Supermarket**s are defined as a self-service food stores with sales
space of between 400 to 800 square meters. The share of non-food items
comprises less than 25 percent of store sales.

**Discounters** are defined as a no frills, self-service food store that
concentrate on a limited range of products with a high turnover rate.
Their main attraction is through their low prices.

**Cash & Carry** are membership style retail/wholesale stores with a
varied selection of products sold under a warehouse style format. These
stores have a broad product range in the food and non-food area.

[^1]: A directory of European Importers see \"American Foods in Europe -
    Your Guide to European Importers of U.S. Food & Beverage Products\"
    is available online at
    [www.american-foods.org](http://www.american-foods.org/) or in hard
    copy. Please contact the Agricultural Affairs Office in Berlin for a
    printed copy.