""

Required Report - public distribution

**Date:** 11/14/2003

**GAIN Report Number:** NL3044

NL3044

**Netherlands**

**Retail Food Sector**

**Report**

**2003**

**Approved by:**

![](media/image1.wmf)Roger Wentzel

U.S. Embassy, The Hague

**Prepared by:**

Marcel Pinckaers

**Report Highlights:**

This report in combination with the Netherlands Exporter Guide (NL3040),
provides an important road map for U.S. exporters who wish to enter the
Dutch retail market.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

The Hague \[NL1\]

\[NL\]

**Table of Contents**

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

[A. Food Retail in the Netherlands
3](#a.-food-retail-in-the-netherlands)

[B. Changes And Challenges Within Operating Companies and Formulas
4](#b.-changes-and-challenges-within-operating-companies-and-formulas)

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

[Entry Strategy 5](#entry-strategy)

[Market Structure 5](#market-structure)

[Section III. Competition 7](#section-iii.-competition)

[Section IV. Best Products Prospects
8](#section-iv.-best-products-prospects)

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

# Section I Market Summary

## A. Food Retail in the Netherlands

The majority of Dutch supermarkets are full-service stores operating on
floor space between 400 and 1,000 square meters. Approximately 80
percent of food retailers' turnover is generated in stores of 600 square
meters (m2) or more. In the Netherlands there are very few hypermarkets
or super stores and progressively fewer traditional convenience, or mom
and pop, stores.

In the Dutch food retail industry, the 5 biggest companies have a market
share of 75 percent (figure 1). Ahold and Laurus alone account for
almost 50 percent of the market. Some of these companies have several
retail models. Laurus, for instance, has three different supermarket
models. Sperwer is active in the Dutch market with two different models,
Plus and Spar. The remaining three companies have one model each.

Figure 1: Leading Food Retailers in the Netherlands, 2002

  ------ -------------------- ------------- -- ----------------------------
  Rank   Operating Companies  Market Share     Main Models

  1      Albert Heijn         27.4             Albert Heijn

  2      Laurus               20.5             Edah, Super de Boer, Konmar

  3      Schuitema            15.1             C1000

  4      Aldi                 7.0              Aldi

  5      Sperwer              4.6              Plus, Spar
  ------ -------------------- ------------- -- ----------------------------

Source: AC Nielsen / USDA

**Albert Heijn**

The Netherlands largest food retailer is Albert Heijn owned by the
Dutch-based Royal Ahold. Albert Heijn now has 4 variants on its
traditional Albert Heijn model. The traditional and most important
variant is the "wijkwinkel" (traditional neighborhood grocery store),
with close to 700 outlets throughout the Netherlands and an average
floor space of 950 M2. More recently Albert Heijn has introduced three
variants; \"AH XL\", "albert.nl" and \"AH To Go\". The \"Albert Heijn
XL\" is a super store of over 4.000 M2, with substantial non-food and
service sections. The \"AH To Go" is small and sells only ready-to-eat
and ready-to-cook products. Finally Albert Heijn introduced "albert.nl"
a few years ago, the home delivery service through on-line shopping.

**Laurus**

The second largest food retail company is Laurus. Laurus' most important
stores, in terms of sales, are the \"Super de Boer\" stores. This model
includes 355 stores and operates in stores of on average 800 M2. Laurus'
second largest formula is \"Edah\", a well known model used by 264
stores (900 M2) throughout the Netherlands. The last formula is
\"Konmar\", used in 123 big stores (1500 M2).

**Schuitema**

The third largest company is Schuitema, 73% owned by Royal Ahold.
Schuitema offers the C1000 formula to independent food retailers on a
franchise basis. In addition, Schuitema offers logistics and marketing
services. At the moment there are approximately 480 supermarkets
operating in stores of an average of 800 M2.

## B. Changes And Challenges Within Operating Companies and Formulas

**Price Competition Among Dutch Food Retailers**

One ongoing issue this year is the "price war" that was initiated
earlier this year by Albert Heijn and subsequently joined by C1000,
Super de Boer and Plus. Due to the growing market share of discounters
and the slowing economy, consumers are shedding retailer-loyalty and
visiting multiple retailers for different products.

Through lowering prices for selected products, retailers try to position
themselves better (price/product ratio) and attract the "floating
consumer".

It is not yet clear what the effect of this development will be on the
margins of different participants in the retail chain and who will
shoulder this burden for lower retail prices. In addition it is not yet
clear if AH and others will successfully be able to fully compensate for
lower margins on these select products by increasing prices for other
products.

**More Expensive Stores Losing To Cheaper Ones**

Expensive full service supermarkets like Konmar, Albert Heijn and Super
de Boer have lost 2.6% market share, while cheaper supermarkets that
also focus on quality products (like Edah, C1000, Jumbo and Plus) are
filling the gap. The hard discounters Aldi and Lidl saw their market
share increase as well.

**Figure 2: Changing Market Shares Of Dutch Leading Retailers**

  ----------------------- ------------- ------------- ---------------------
  **Supermarket**         **2002**      **2003\***    **% Change**

  Konmar                  5.7           4.5           -21

  Super de Boer           9.5           8.8           -7

  Albert Heijn            27.4          26.7          -3

                          42.6          40            

  Edah                    5.1           5.5           +8

  Jumbo                   1.8           2.4           +33

  Plus                    3.7           4.5           +22

  C1000                   14.6          15.5          +6

                          25.2          27.9          
  ----------------------- ------------- ------------- ---------------------

**\* first 6 months figures**

**Source: AC Nielsen/USDA**

**The Need for Convenience Increases**

In addition to the fact that consumers are shedding retailer-loyalty,
they shop at different times and locations. During lunch breaks or
shopping, people buy their lunch and the food products they need for
preparing the evening dinner. Small convenience stores, like "AH To Go"
are opened at locations near heavy traffic like train stations, schools,
and shopping malls to satisfy these consumers' needs.

The traditional neighborhood grocery stores are also expanding offerings
of fresh and convenient prepared-foods with tailor made sandwiches,
wraps and drinks to satisfy the consumers' need for "food for now". The
ready-to-cook segment is also expanding.

# Section II. Road Map for Market Entry

## Entry Strategy

Success in introducing your product in the Dutch market depends, in
large part, on knowledge of the market and personal contacts with
knowledgeable importers. The importer, in combination with the Office of
Agricultural Affairs (OAA) can provide detailed market information and
insight. In addition, the OAA offers guidelines on business practices
and import regulations ([www.fas.usda.gov](http://www.fas.usda.gov/)
Exporter Guide and FAIRS Report). Dutch importers often serve as
distributors as well. FAS/Washington and the OAA maintains listings of
importers.

## Market Structure

In the Netherlands, several large groups purchase products for the
supermarkets chains. In most cases they are divisions of the operating
companies in food retail like Albert Heijn, Laurus and Schuitema.
However, the second largest purchase group in the Netherlands,
Superunie, is not a food retail company. Superunie buys food products
from national or international suppliers for its affiliated members.

Figure 3: Leading Purchase Groups in The Netherlands

+---------------------------+------------------------------------------+
| Purchase Group            | Formula                                  |
+---------------------------+------------------------------------------+
| Albert Heijn              | Albert Heijn                             |
|                           |                                          |
| Provincialeweg 11         |                                          |
|                           |                                          |
| 1506 MA Zaandam           |                                          |
|                           |                                          |
| [www.                     |                                          |
| ah.nl](http://www.ah.nl/) |                                          |
+---------------------------+------------------------------------------+
| Superunie                 | Jumbo, PLUS, Jan Linders, Vomar, Spar,   |
|                           | DeKamarkt, Coop, Hoogvliet, Golff, etc.  |
| Industrieweg 22B          |                                          |
|                           |                                          |
| 4153 BW Beesd             |                                          |
|                           |                                          |
| [www.superunie.nl](       |                                          |
| http://www.superunie.nl/) |                                          |
+---------------------------+------------------------------------------+
| Laurus                    | Edah, Super de Boer, Konmar              |
|                           |                                          |
| Parrallelweg 64           |                                          |
|                           |                                          |
| 5223 AL Den Bosch         |                                          |
|                           |                                          |
| [www.laurus.n             |                                          |
| l](http://www.laurus.nl/) |                                          |
+---------------------------+------------------------------------------+
| Trade Service Netherlands | C1000                                    |
| (Schuitema)               |                                          |
|                           |                                          |
| Databankweg 26            |                                          |
|                           |                                          |
| 3821 AL Amersfoort        |                                          |
|                           |                                          |
| [www.schuitema.nl](       |                                          |
| http://www.schuitema.nl/) |                                          |
+---------------------------+------------------------------------------+
| Koop Consult              | Dirk van de Broek, Bas van der heijden,  |
|                           | Digros, Jan Bruijns, Drogisterij & Dirx, |
| Edisonstraat 11\          | Slijterijen DrikIII, etc.                |
| 2171TV Sassenheim         |                                          |
|                           |                                          |
| [www.superjob.nl]         |                                          |
| (http://www.superjob.nl/) |                                          |
+---------------------------+------------------------------------------+

Source: AC Nielsen/USDA

### Super Stores, Supermarket, Hyper Markets or Super Centers, Club & Warehouse Outlets

Figure 4: Super Stores and Supermarkets

  ------------------- ------------------ ---------------- ----------------
  **Name**            **Format**         **Ownership**    **Locations**

  Albert Heijn        Supermarket        Royal Ahold      Nation wide

  Jan Linders         Supermarket        Jan Linders      Regional

  C1000               Supermarket        Royal Ahold      Nation wide

  Edah                Supermarket        Laurus           Nation wide

  Konmar              Supermarket        Laurus           Regional

  Super de Boer       Supermarket        Laurus           Nation wide

  Coop                Supermarket        CoopCodis        Nation wide

  Jumbo               Super Stores       Jumbo            Regional

  C1000               Super Stores       Royal Ahold      Nation wide

  Konmar              Super Stores       Laurus           Regional

  AH XL               Super Stores       Royal Ahold      Regional

  C1000               Super Stores       Royal Ahold      Nation wide
  ------------------- ------------------ ---------------- ----------------

Supermarket - retail surface 400 -- 1,000 m2

Super Stores -- retail surface 1,000 -- 2,500 m2

### Discounters

Figure 5: Discounters\*

  -------------------------- -------------------------- -----------------
  **Name**                   **Ownership**              **Locations**

  Aldi                       Aldi-Gruppe                Nation wide

  Lidl                       Lidl & Schwarz             Nation wide

  Dirk van de Broek          Dirk van de Broek          Regional

  Bas van der Heijden        Bas van der Heijden        Regional

  Digros                     Digros                     Regional

  Jan Bruijns                Jan Bruijns                Regional
  -------------------------- -------------------------- -----------------

\* retailers which price their product lower than the national average

### Department Stores

Figure 6: Department Stores

+-------------------------+--------------------------+----------------+
| **Name**                | **Ownership**            | **Locations**  |
+-------------------------+--------------------------+----------------+
| Bijenkorf               | Vendex/KBB               | Nation wide    |
|                         |                          |                |
| products sold in        |                          |                |
| Kitchenware Department  |                          |                |
+-------------------------+--------------------------+----------------+
| HEMA                    | Vendex/KBB               | Nation wide    |
|                         |                          |                |
| private Label           |                          |                |
+-------------------------+--------------------------+----------------+
| V&D                     | Vendex/KBB               | Nation wide    |
+-------------------------+--------------------------+----------------+

**Convenience Stores, Gas Marts and Kiosks**

**Convenience Stores**

Figure 7: Convenience Stores

  ----------------------- ------------------------- ----------------------
  **Name**                **Ownership**             **Locations**

  AH To Go                Royal Ahold               Regional
  ----------------------- ------------------------- ----------------------

"AH to go" are situated at train stations, busy shopping streets and
business districts, products sold are ready to eat meals, and other meal
components or snacks.

**Gas Marts**

Figure 8: Gas Marts

  ----------------------- ------------------------- ----------------------
  Name                    Ownership                 Locations

  AH To Go                Royal Ahold               Regional
  ----------------------- ------------------------- ----------------------

Shell - AH To Go

**Kiosks**

Independent small shops dominate food outlets at train stations.

**Traditional Outlets**

Grocery Stores, butcher Stores, bakeshops etc are still very popular in
the Netherlands. Through extra service, sales of high-quality added
value products and the serving of niche markets, they try to survive.

# Section III. Competition

Knowledgeable traders, re-export to other countries, good distribution
systems, professional supermarkets and affluent consumers make the
Netherlands an attractive export market. The Dutch processing industry
is very competitive, but the position for primary producers is somewhat
different. Due to high prices for farmland, high labor costs, high
standards for food safety and animal welfare and multiple rules and
regulations, the cost of producing raw materials is often high. As a
result, the Netherlands increasingly sources from nearby countries.
Trade with EU countries is fairly easy and inexpensive because of the
free trade agreement and proximity.

However for some products, the Netherlands has to look outside the
borders of the EU, e.g. for year-round availability of fresh fruit and
vegetable. The Netherlands sources fresh produce from Southern
Hemisphere Countries like Chile, Brazil and New Zealand. In addition to
availability, cost is another important reason to source
internationally. As a result, poultry is sourced from Thailand and
Brazil.

Another reason why the food industry and retailers turn to foreign
markets is to look for unique products. This can be either a new product
or well-known products that are produced or packed in a different way
and therefore appeal to Dutch consumers. However, keep in mind that,
profit margins for the food industry and retail are under strong
pressure at the moment.

**Figure 9: U.S. Market Share Versus Competitors For The Wine**

and Seafood Market

+-------------+--------------+---------------------+-----------------+
| **Product   | **Major      | **Strengths of      | **Adv. &        |
| Category**  | Supply       | Key**               | Disadv. of      |
|             | Sources**    |                     | Local           |
|             |              | **Supply            | Suppliers**     |
|             |              | Countries**         |                 |
+-------------+--------------+---------------------+-----------------+
| **Wine**:   | France: 43%  | Good quality        | No real         |
|             |              |                     | commercial      |
| Total       | Spain: 10%   | Export              | availability    |
| imports:    |              | t                   |                 |
| 689 million | Portugal:    | radition/experience |                 |
| EURO        | 10%          |                     |                 |
|             |              | Proximity           |                 |
|             | United       |                     |                 |
|             | States: 3%   | Famous holiday      |                 |
|             |              | destination         |                 |
+-------------+--------------+---------------------+-----------------+
| *           | Germany: 13% | Unique products     | EU regulations  |
| *Seafood**: |              |                     | limit           |
|             | Denmark: 11% | TAC / Country's     | additional      |
| Total       |              | Quota               | catch           |
| imports:    | UK: 10%      |                     |                 |
| 1.4 billion |              | Natural             | The domestic    |
| EURO        | United       | circumstance        | market is a     |
|             | States: 2%   |                     | fresh market    |
+-------------+--------------+---------------------+-----------------+

Source: Product Board of Wine, Product Board of Fish, USDA

# Section IV. Best Products Prospects

**A. Products Present In The Market That Have Good Sales Potential**

-   Wine

-   Nuts

-   Citrus Fruit Juice

-   Processed Fruit and Vegetables

-   Innovative Sauces and Condiments

**B. Products Not Present In Significant Quantities But Which Have Good
Sales Potential**

-   Dried Fruits

-   Functional Foods

**C. Products Not Present Because They Face Significant Barriers**

-   Red Meat and Meat Preparations (hormone ban)

-   Poultry (sanitary procedures)

# Section V. Post Contact and Further Information

United States Department of Agriculture's Foreign Agricultural Service

Agriculture Export Service

<http://www.fas.usda.gov/agexport/exporter.html>

Office of Agricultural Affairs at the American Embassy

Postal Address: U.S. Embassy-AGR, PC71, Box 038, APO AE 09715

Visitor Address: Lange Voorhout 102, 2514 EJ The Hague, the Netherlands

Phone: 31-70-3109299,

Fax: 31-70-3657681,

E-mail: <agthehague@fas.usda.gov>

For more information on exporting U.S. Products to the Netherlands,
please visit the FAS website at
[www.fas.usda.gov](http://www.fas.usda.gov/)