Required Report - public distribution

**Date:** 12/20/2005

**GAIN Report Number:** GM5043

GM5043

**Germany**

**Retail Food Sector**

**Retail Guide**

**2005**

**Approved by:**

![](media/image1.wmf)William Westman

U.S. Embassy

**Prepared by:**

Christel Wagner

**Report Highlights:**

Germany, with its 82.5 million people (or 18 percent of the EU 25
population), is the leading market for food and beverages in the
European Union. In 2004 Germany imported US\$ 799 million worth of
consumer-oriented agricultural products from the U.S., substantially
more than a year earlier. Germany's consumers spent Euro 191 billion
(approximately US\$ 238 billion) on food and beverages in 2004. Of this
amount, about 19 percent was spent in restaurants, canteens, and other
places where food and beverages were served on-premise. The remaining
amount was spent in retail food and beverage outlets.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Berlin \[GM1\]

\[GM\]

# I. Market Summary

Germany, with its 82.5 million people (or 18 percent of the EU 25
population), has the world's third largest economy after the U.S. and
Japan, and is the leading market for food and beverages in the European
Union. Germany's consumers spent Euro 191 billion (approximately US\$
238 billion) in 2004 on food and beverages, or 15 percent of total
national expenditures. Of this amount, about 19 percent was spent in
restaurants, canteens, and other places where food and beverages were
served on-premise. The remaining amount was spent in retail food and
beverage outlets.

Germany's stagnant economy, however, has slowed retail sales, including
sales of food products. In 2004, total sales (turnover) by retailers of
food and beverage in Germany were approximately Euro 127 billion (or
US\$ 158 billion) compared to nearly Euro 124 billion (US\$ 140 billion)
in 2003. The Euro 127 billion generated in 2004 were primarily from the
sale of food products. These items are usually sold by organized food
retailers such as supermarkets, hypermarkets, discount stores, and small
traditional retail stores. Bakeries, butcher shops, farmer's markets,
drugstores, gas stations, and kiosks also play a key role in Germany's
retail food sector.

An additional Euro 36 billion in food and beverage sales were generated
by restaurants, canteens, and snack shops (imbiss) where food and
beverages are served on-premise. According to the German Federal
Statistics Office, Euro 129.2 billion (approximately US\$ 122 billion),
or about 11 percent of total expenditures by German consumers was spent
on food alone (excluding beverages). This correlates with the Euro 191
billion German consumers spent on food and beverage products (including
tobacco) in 2004. Monthly German household expenditures on food
(excluding beverages) averages about Euro 303. Despite slower growth in
the discount segment, this sector will remain an important driver in
future German food retailing.

In 2004 Germany imported US\$ 799 million worth of consumer-oriented
agricultural products from the U.S., substantially more than the US\$
656 million a year earlier. The increase in imports was mainly in fish
and fish products, snack foods, tree nuts, fresh fruits, and processed
fruits and vegetables. Approximately one-third of all U.S. agricultural
exports to Germany are in this category.

The major competitors in the consumer-oriented products market are from
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, after Turkey.

## Germany's Retail Profile

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

The most dynamic sector 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 price wars since 2002.
In terms of annual sales, discounters comprised 39.6 percent of the
retail market in 2004, up from 38.3 percent last year. Most of the items
marketed by discounters are private label products.

## ![](media/image2.wmf) Table: Composition of Germany's Food and Beverage Retail Trade: 

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.

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 more 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 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 the retail level
  U.S.-style foods are popular,       are very 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].

[Specialized Importers]{.underline}. In Germany, specialized importers
usually handle the import and distribution of food and beverage products
from countries primarily outside of the EU. German retail organizations
rarely import directly from countries outside the EU, except for items
that they purchase in large quantities. Traditional importers normally
specialize in products or product groups. As a result of frequent
contacts with their customers, traditional importers usually have an
in-depth knowledge of the individual retailers and the market conditions
in Germany. Because of their close relationships, importers usually
source products, handle import (customs) formalities, logistics, supply,
maintenance and often even pricing and labeling for their customers.
They also advise foreign exporters and ensure that imported products
meet food, labeling, packaging, packaging material disposal (including
\"Green Dot\" licenses and fees), and other market requirements.

Importers can also arrange for consolidated shipments of products, such
as specialty foods to test the market and gain access to distribution
channels. Importers normally distribute nation-wide, either through
their own sales force or through a network of independent sales agents.

Direct sales to the central purchasing organizations of food retailers
may be the most desirable product-entry system for a foreign supplier.
Due to their wide range of distribution, central buyers are generally
flooded with offers from competing suppliers. Purchasing organizations
often have only a limited interest in working with new suppliers, unless
particular advantages in quality, price, or promotional support are
offered.

New products on the German market may require up to 12 to 18 months of
testing to gain market acceptance. Listing (slotting) fees equivalent to
several thousand dollars or more per product are common and do not
ensure shelf space if a profitable turnover is not achieved rather
quickly. The exception may be a retailer\'s desire to maintain a
competitive edge with a full-service assortment.

[Selling Direct]{.underline}. Each of Germany's leading retail groups
has a different business structure, purchasing, and distribution system.
Many of the leading retailers have multiple retail chains, often with
various types of retail formats such as 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.

Direct sales to the central purchasing department of Germany's leading
retailers is typically very difficult, as most German retail buyers are
usually not interested in taking on the added responsibility 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, 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, 2000-2004

  ----------------------- ---------- ---------- ---------- ---------- -------
  **Category**            **2000**   **2001**   **2002**   **2003**   2004

  Total Sales (billion    115.8      118        120.4      123.4      126.5
  Euros)                                                              

  Total Sales (billion    107        105.7      113.9      139.6      157.5
  U.S. Dollars)                                                       

  Share of top 5          63.5%      62.0%      61.2%      62.4%      62.4%
  retailers (% of total                                               
  sales)                                                              

  Share of top 10         84.0%      84.4%      84.9%      85.7%      85.2%
  retailers (% of total                                               
  sales)                                                              

  Share of top 20         94.0%      94.4%      94.8%      95.4%      95.1%
  retailers (% of total                                               
  sales)                                                              

  Retail outlets (1,000)  70.3       68.4       66.8       64.9       62.9
  ----------------------- ---------- ---------- ---------- ---------- -------

Note: Sales by the organized food retail industry.

Source: EuroHandels Institute (EHI), A.C. Nielsen.

In 2004, Germany's retailers registered annual food and beverage sales
(turnover) of Euro 127 billion (US\$ 158 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 (1999-2004) food/beverage sales grew about 9
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 2004, 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 2004, small
traditional shops comprised only 10.9 percent by turnover 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 2004, the top five food and beverage retailers
accounted for 62 percent of national sales and the top fifty accounted
for 99.5 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 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 2004: Metro (49 percent), Aldi (36 percent), Tengelmann (51
percent), Schwarz-Gruppe (42 percent) and Rewe (28 percent). Edeka
stands out with only 8 percent of sales outside Germany. However, in
2005 Edeka took over the Spar AG retail chain from the French owners.
This merger is expected to make the Edeka/AVA/Spar Group the largest
retailer in Germany.

Wal-Mart celebrated its 8-year anniversary in the German retail market
in September 2005. 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 12th 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 2004, Wal-Mart recorded
sales of US\$ 4.12 billion in Germany. Food products comprise about 55
percent of Wal-Mart's gross sales in Germany.

##  

## Table: Top ranked Retail Stores in Germany 2004

![](media/image3.wmf)

Retail Food/Beverage Sales, Number of Retail Outlets, 2000-2004

  ----------------------- ---------- ---------- ---------- ---------- -------
  **Category**            **2000**   **2001**   **2002**   **2003**   2004

  Total Sales (billion    115.8      118        120.4      123.4      126.5
  Euros)                                                              

  Total Sales (billion    107        105.7      113.9      139.6      157.5
  U.S. Dollars)                                                       

  Share of top 5          63.5%      62.0%      61.2%      62.4%      62.4%
  retailers (% of total                                               
  sales)                                                              

  Share of top 10         84.0%      84.4%      84.9%      85.7%      85.2%
  retailers (% of total                                               
  sales)                                                              

  Share of top 20         94.0%      94.4%      94.8%      95.4%      95.1%
  retailers (% of total                                               
  sales)                                                              

  Retail outlets (1,000)  70.3       68.4       66.8       64.9       62.9
  ----------------------- ---------- ---------- ---------- ---------- -------

Note: Sales by the organized food retail industry.

Source: EuroHandels Institute (EHI), A.C. Nielsen.

In 2004, Germany's retailers registered annual food and beverage sales
(turnover) of Euro 127 billion (US\$ 158 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 (1999-2004) food/beverage sales grew about 9
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 2004, 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 2004, small
traditional shops comprised only 10.9 percent by turnover 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 2004, the top five food and beverage retailers
accounted for 62 percent of national sales and the top fifty accounted
for 99.5 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 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 2004: Metro (49 percent), Aldi (36 percent), Tengelmann (51
percent), Schwarz-Gruppe (42 percent) and Rewe (28 percent). Edeka
stands out with only 8 percent of sales outside Germany. However, in
2005 Edeka took over the Spar AG retail chain from the French owners.
This merger is expected to make the Edeka/AVA/Spar Group the largest
retailer in Germany.

Wal-Mart celebrated its 8-year anniversary in the German retail market
in September 2005. 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 12th 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 2004, Wal-Mart recorded
sales of US\$ 4.12 billion in Germany. Food products comprise about 55
percent of Wal-Mart's gross sales in Germany.

##  

## Table: Top ranked Retail Stores in Germany 2004

![](media/image4.wmf)

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. Aldi is
the leading operator of discount markets followed closely by the Schwarz
Group (Lidl).

##  

## Chart: A Breakdown of the German Discount Market

![](media/image5.wmf)

The discount segment has been the most dynamic retail segment in
Germany. Discounters have prospered in recent years, as German consumers
have become increasingly price conscious. In addition, discount stores,
which generally tend to be small in size, have benefited from German
laws favoring small retailers. In 2004, growth in the discount segment
slowed down after a decade of strong growth. In terms of sales, discount
stores comprise 39.6 percent of the retail food market, up 38.3 percent
from a year ago. In the past 5 years, the number of discounter outlets
grew from 12,970 in 2000 to 14,610 in 2005, whereas the total number of
German food retail outlets decreased from 70,263 to 61,460 during the
same time frame. On a sales basis, Aldi is the largest discounter with
about 43 percent of the discount market, however, in 2004, Lidl recorded
stronger sales growth than Aldi.

## Table: Gross Sales for the leading Discount Stores in Germany

![](media/image6.wmf)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 US\$ 21 per
visit to Aldi compared to US\$ 23 in hypermarkets, US\$ 15 in other
discount stores, and US\$ 13 in supermarkets.

## Convenience Stores, Gas Stations, and Kiosks

####### 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
2004, the turnover for Lekkerland was Euro 8.500 billion, of which food
products accounted for Euro 6.120 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, 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
Bartels-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.

#### 

## Other Channels

Home food delivery, mail order, and internet sales are alternatives to
the traditional German retailing sector. Germany's leading retailers
have become increasingly involved in e-commerce with an estimated US\$ 8
billion in business attributed to consumer sales 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 internal EU market structure gives member states 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. Moreover, 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.

Besides 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, 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 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 biotech and biotech-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 biotech 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 biotech-containing feedstuffs. Food manufacturers are
still wary that European consumers will not purchase products with a
biotech label. So far, the major German food retailers have avoided
stocking their shelves with labeled biotech products. Instead EU food
processors have substituted other raw materials not derived from biotech
products for biotech ingredients - primarily soybean oil. At the moment
FAS Berlin is not aware of any biotech 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 US\$ 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 US\$ 4.2
                     billion in 2004.

  **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

## German Trade Shows for Consumer-Oriented Products

Participating or simply attending a trade show can be a very
cost-effective means to test the German market, to introduce a product,
or to expand sales. Germany offers a wide variety of trade show venues
for food and beverage products. The following table provides details on
major trade shows for food, beverages, and other agricultural and
related industries taking place in Germany.

+-------------------------------+-----------+-------------------------+
| **Important German Trade      |           |                         |
| Shows -- 2006/2007**          |           |                         |
+===============================+===========+=========================+
| **ISM (International Sweets   | January   | U.S. Pavilion           |
| and Biscuit Show)**           | 29 --     | Organizer: National     |
|                               | February  | Confectioners           |
| Cologne, Germany (Interval:   | 1, 2006   | Association (NCA)       |
| yearly)                       |           |                         |
|                               |           | Tel: (703) 790‑5750     |
| Target Market:                |           |                         |
| Europe/International          |           | Fax: (703) 790‑5752     |
|                               |           |                         |
| World's largest show for      |           | [www.ko                 |
| snacks and confectionery      |           | elnmesse.de/ism](http:/ |
| products.                     |           | /www.koelnmesse.de/ism) |
|                               |           |                         |
|                               |           | [www                    |
|                               |           | .ism-cologne.de](http:/ |
|                               |           | /www.koelnmesse.de/ism) |
+-------------------------------+-----------+-------------------------+
| **Fruit Logistica**           | February  | U.S. Pavilion           |
|                               | 2 -- 4,   | Organizer:              |
| Berlin, Germany (Interval:    | 2006      |                         |
| yearly)                       |           | B\*FOR International:   |
|                               |           |                         |
| Target Market:                |           | Tel: (540) 373-9935     |
| Germany/Central & Eastern     |           |                         |
| Europe                        |           | Fax: (540) 372-1411     |
|                               |           |                         |
| Good venue for exhibiting     |           | [www.fruit              |
| fresh and dried fruit, nuts   |           | logistica.com](http://w |
| and related products.         |           | ww.fruitlogistica.com/) |
|                               |           |                         |
|                               |           | [www.exhibitpro.com/se  |
|                               |           | rvices/pavilion.htm](ht |
|                               |           | tp://www.exhibitpro.com |
|                               |           | /services/pavilion.htm) |
+-------------------------------+-----------+-------------------------+
| **Bio Fach**                  | February  | U.S. Pavilion           |
|                               | 16 -- 19, | Organizer:              |
| Nuremberg, Germany (Interval: | 2006      |                         |
| yearly)                       |           | B\*FOR International:   |
|                               |           |                         |
| Target Market: Germany/Europe |           | Tel: (540) 373-9935     |
|                               |           |                         |
| The leading European          |           | Fax: (540) 372-1411     |
| tradeshow for organic food    |           |                         |
| and non-food products.        |           | [www.biofach.de](       |
|                               |           | http://www.biofach.de/) |
|                               |           |                         |
|                               |           | [www.exhibitpro.com/se  |
|                               |           | rvices/pavilion.htm](ht |
|                               |           | tp://www.exhibitpro.com |
|                               |           | /services/pavilion.htm) |
+-------------------------------+-----------+-------------------------+
| **ProWein**                   | March 26  | Show Organizer:         |
|                               | -- 28,    |                         |
| Duesseldorf, Germany,         | 2006      | 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.             |           |                         |
|                               |           | [www.prowein.de](       |
|                               |           | http://www.prowein.de/) |
|                               |           |                         |
|                               |           | <inf                    |
|                               |           | o@messe-duesseldorf.de> |
+-------------------------------+-----------+-------------------------+
| **Intercool**                 | September | Show Organizer:         |
|                               | 24 -- 27, |                         |
| Duesseldorf, Germany,         | 2006      | Duesseldorf Messe       |
| (Interval: 2 years)           |           | Authorities             |
|                               |           |                         |
| Target Market: International  |           | Tel: (49-211) 4560 01   |
| Trade Fair for Frozen Foods,  |           |                         |
| Ice Cream, and Refrigeration  |           | Fax: (49-211) 4560 668  |
| Technology.                   |           |                         |
|                               |           | [www.intercool.de](ht   |
|                               |           | tp://www.intercool.de/) |
|                               |           |                         |
|                               |           | <inf                    |
|                               |           | o@messe-duesseldorf.de> |
+-------------------------------+-----------+-------------------------+

+-------------------------------+-----------+-------------------------+
| **ANUGA**                     | October   | U.S. Pavilion           |
|                               | 13 -- 17, | Organizer:              |
| Cologne, Germany, (Interval:  | 2007      |                         |
| 2 years)                      |           | Koelnmesse, Inc.        |
|                               |           | Chicago                 |
| Target Market:                |           |                         |
| Europe/International          |           | Tel: (773) 326-9920     |
|                               |           |                         |
| One of the leading            |           | Fax: (773) 714-0063     |
| international trade shows for |           |                         |
| food and beverages, and the   |           | [www.koelnme            |
| premier show of its kind held |           | ssenafta.com](http://ww |
| in Germany. Traditionally     |           | w.koelnmessenafta.com/) |
| there is a large U.S.         |           |                         |
| Pavilion at this show         |           | [www.anuga.com]         |
| featuring about 150-200 U.S.  |           | (http://www.anuga.com/) |
| companies and associations.   |           |                         |
| USDA-endorsed show.           |           |                         |
+-------------------------------+-----------+-------------------------+

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

# SECTION VI. KEY CONTACTS AND FURTHER INFORMATION

## 

## Internet Home Pages

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

AUMA [www.auma-messen.de](http://www.auma-messen.de/)

U.S. Mission to the European Union
[www.useu.be/agri/usda.html](http://www.useu.be/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/Berlin [www.usembassy.de](http://www.usembassy.de/)

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, Germany

Tel: (49) (30) 8305 - 1150

Fax: (49) (30) 8431 - 1935

Email: <AgBerlin@usda.gov>

Home Page: [www.usembassy.de](http://www.usembassy.de/)

Please view our Home Page for more information on exporting U.S. food
and beverage products to Germany, 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 German Market include:

Report Title Report Number Month Report was written

  ----------------------- ----------------------- -----------------------
  Exporter Guide          GM 5037                 September 2005

  Fish Products Report    GM 5036                 September 2005

  FAIRS Report            GM 5030                 August 2005

  Fruit Market Brief      GM 5002                 January 2005

  Wine Report             GM 4047                 November 2004

  HRI Food Service Sector GM 4028                 August 2004
  ----------------------- ----------------------- -----------------------

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/)

## Currency Conversion Rates

The value of the dollar has been decreasing against the Euro since 2002.
This report includes the dollar equivalents for the reader's
convenience, based on the average annual exchange rates. All percentage
changes mentioned in this report are based on the Euro levels.

Average Annual Currency Conversion Rates:

2002 1 U.S. US\$ = 1.0575 Euro

2003 1 U.S. US\$ = 0.8840 Euro

2004 1 U.S. US\$ = 0.8030 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.

## Attachment I

KEY GERMAN CONTACTS FOR THE FOOD RETAIL TRADE

Note: While it is impractical to provide a complete list, this partial
list is for your information only with the understanding that no
discrimination is intended and no guarantee of reliability implied.

**Aldi Einkauf GmbH & Co. oHG** **- Sued**

Burgstrasse 37

45476 Muelheim/Ruhr, Germany

Tel: (49-208) 992 70

Fax: (49-208) 992 72 50 Homepage:
[www.aldisued.de](http://www.aldisued.de/)

**Aldi Einkauf GmbH & Co. oHG - Nord**

Eckenbergstrasse 16

45307 Essen, Germany

Tel: (49-201) 859 30

Fax: (49-201) 859 33 18 Homepage:
[www.aldi-essen.de](http://www.aldi-essen.de/)

**Dohle Handelsgruppe Service GmbH & Co. KG**

Alte Lohmarerstrasse 59

53721 Siegburg, Germany

Tel: (49-2241) 12 20

Fax: (49-2241) 12 24 44 Homepage: [www.hit.de](http://www.hit.de/)

**EDEKA Zentrale AG & Co. KG**

New-York-Ring 6

22297 Hamburg, Germany

Tel: (49-40) 63 770

Fax: (49-40) 63 77 22 31 Homepage: [www.edeka.de](http://www.edeka.de/)

**EuroHandelsinstitut e.V.**

Spichernstrasse 55

50672 Koeln, Germany

Tel: (49-221) 57 99 30

Fax: (49-221) 57 99 345 Homepage: [www.ehi.org](http://www.ehi.org/)

Organization representing the retail sectors.

**KaDeWe Kaufhaus des Westens**

Tauentzienstrasse 21-24

10789 Berlin, Germany

Tel: (49-30) 212 10

Fax: (49-30) 211 01 90 Homepage: [www.kadewe.de](http://www.kadewe.de/)

KaDeWe is the flagship of the Karstadt department store chain. It is
comparable to Harrods in London and claims to have the biggest food &
delicatessen department in Europe.

**Karstadt Warenhaus AG**

Hauptverwaltung

Theodor-Althoff-Strasse 2

45133 Essen, Germany

Tel: (49-201) 727-1

Fax: (49-201) 727 52 16 Homepage:
[www.karstadt.de](http://www.karstadt.de/)

**Kaufhof Warenhaus AG**

Hauptverwaltung

Leonhard-Tietz-Strasse 1

50676 Koeln, Germany

Tel: (49-221) 22 30

Fax: (49-221) 22 32 800 Homepage:
[www.galeria-kaufhof.de](http://www.galeria-kaufhof.de/)

Kaufhof is part of the METRO Group.

**Lekkerland GmbH & Co. KG**

Europaallee 57

50226 Frechen, Germany

Tel: (49-2234) 182 10

Fax: (49-2234) 182 14 45 Homepage:
[www.lekkerland.com](http://www.lekkerland.com/)

**Markant Handels und Service GmbH**

ZHG Ware

Hanns-Martin-Schleyer-Strasse 2

77656 Offenburg, Germany

Tel: (49-781) 61 60

Fax: (49-781) 61 81 83 Homepage:
[www.markant.com](http://www.markant.com/)

**METRO MGE Einkauf GmbH**

Schlueterstrasse 1

40235 Duesseldorf, Germany

Tel: (49-211) 68860

Fax: (49-211) 6886-2000 Homepage:
[www.metrogroup.de](http://www.metrogroup.de/)

MGE Metro handles buying for the entire Metro group.

**Norma Lebensmittelfilialbetrieb GmbH & Co. KG**

Wuerzburger Strasse 196

90766 Fuerth, Germany

Tel: (49-911) 973 90

Fax: (49-911) 97 39 370 Homepage:
[www.norma-online.de](http://www.norma-online.de/)

**REWE-Zentral AG**

Foreign Trade Dept. - HWA -

Domstrasse 20

50668 Koeln, Germany

Tel: (49-221) 1490

Fax: (49-221) 149 93 71 Homepage: [www.rewe.de](http://www.rewe.de/)

**Anton Schlecker**

Talstrasse 12

89579 Ehingen/Donau, Germany

Tel: (49-7391) 58 40

Fax: (49-7391) 58 43 00 Homepage:
[www.schlecker.de](http://www.schlecker.de/)

**Schwarz Gruppe** (Lidl und Kaufland)

Roetelstrasse 30-35

74172 Neckarsulm, Germany

Tel: (49-7132) 94 00

Fax: (49-7132) 94 03 00 Homepage: [www.lidl.de](http://www.lidl.de/)
[www.kaufland.de](http://www.kaufland.de/)

**SPAR Handels-AG**

(taken over by Edeka)

Zentraleinkauf

Osterbrooksweg 35-45

22867 Schenefeld, Germany

Tel: (49-40) 83 940

Fax: (49-40) 83 94 19 22 Homepage: [www.spar.de](http://www.spar.de/)

**Tengelmann Warenhandelsgesellschaft**

Unternehmenszentrale

Wissollstrasse 5-43

45478 Muelheim/Ruhr, Germany

Tel: (49-208) 580 60

Fax: (49-208) 5806-6401 Homepage:
[www.tengelmann.de](http://www.tengelmann.de/)

**Wal-Mart Germany GmbH & Co. KG**

Friedrich-Engels-Allee 28

42103 Wuppertal, Germany

Tel: (49-202) 282 90

Fax: (49-202) 2829 1724 Homepage:
[www.walmartgermany.de](http://www.walmartgermany.de/)

[^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.