Required Report - public distribution

**Date:** 1/18/2007

**GAIN Report Number:** FR7005

FR7005

**France**

**HRI Food Service Sector**

**Annual**

**2007**

**Approved by:**

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

U.S. Embassy

**Prepared by:**

Roselyne Gauthier

**Report Highlights:**

In 2005, trade sources estimate the French hotel, restaurant and
institution (HRI) food service sector served over 9 billion meals valued
at \$90.7 billion. Commercial catering (restaurants, hotels and resorts,
cafeterias, brasseries, cafes and fast foods) dominated the sector with
77 percent of the market. Institutional catering (education, healthcare,
business catering, schools, hospitals, air and sea catering) represented
23 percent of the market.

The HRI/food service sector is an open, highly competitive market in
France which is supplied primarily by domestic and EU producers.
However, there are opportunities for U.S. suppliers for a variety of
reasonably-priced, high quality and innovative products.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Paris \[FR1\]

\[FR\]

Table of Contents

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

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

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

[3. Key Macro-Economic Factors Driving Demand in France\'s Food Service
Market:
5](#key-macro-economic-factors-driving-demand-in-frances-food-service-market)

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

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

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

[1.1 Company Profiles: 8](#company-profiles)

[1.2 Entry Strategy 10](#entry-strategy)

[1.3 Distribution Channels 10](#distribution-channels)

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

[2.1 Company Profiles 12](#company-profiles-1)

[2.2 Entry Strategy 16](#entry-strategy-1)

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

[4. Best Product Prospects 18](#best-product-prospects)

[5. Post Contacts and Further Information
18](#post-contacts-and-further-information)

# SECTION I. MARKET SUMMARY

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

Calendar Year 2002: USD 1 = 1.057 Euros

Calendar Year 2003: USD 1 = 1.13 Euros

Calendar Year 2004: USD 1 = 0.806 Euros

Calendar Year 2005: USD1 = 0.8038 Euros

(Source: Central Intelligence Agency Fact Book)

## 1. France in Profile:

# 

With a total area of 551,000 square kilometers, excluding its overseas
departments and territories, France is the largest western European
country. In 2005, France\'s population was estimated at 62.5 million
(French National Institute for Statistics (INSEE)) with a per capita
gross domestic product (GDP) of \$34,306*.* France has approximately
25.7 million households and this number is expected to increase, on
average, by 228,000 households per year until 2010. The average number
of persons per household has steadily decreased from 2.57 in 1991 to
2.39 in 2004.

France ranks first in Europe, and third worldwide, in overall
expenditures on food and related items behind the United States and
Japan. The table below shows French household consumption by sectors for
2004 and 2005.

**French Household Consumption by Sectors for 2004 and 2005**

**and Percentages**

2004 2005

+---------------------+--------+---------+-------+---------+---------+
| **Sector**          | *      | **%     | **    | **%     | **%     |
|                     | *Total | Total   | Total | Total** | Dif     |
|                     | Spent  | Ho      | Spent |         | ference |
|                     | in     | usehold | in    | **Ho    | Spent   |
|                     | 2004** | Expen   | 2     | usehold | 2005    |
|                     |        | ditures | 005** | Expen   | /2004** |
|                     | **in   | (in     |       | ditures |         |
|                     | b      | 2004)** | **in  | (in     |         |
|                     | illion |         | bi    | 2005)** |         |
|                     | \$**   |         | llion |         |         |
|                     |        |         | \$**  |         |         |
+---------------------+--------+---------+-------+---------+---------+
| Food and            | 161.0  | 14.4    | 165.2 | 10.7    | 2.6     |
| non-alcooholic      |        |         |       |         |         |
| beverages           |        |         |       |         |         |
+---------------------+--------+---------+-------+---------+---------+
| Alcoholic beverages | 37.1   | 3.3     | 36.8  | 2.4     | \- 0.8  |
| and tobacco         |        |         |       |         |         |
+---------------------+--------+---------+-------+---------+---------+
| Clothes and shoes   | 56.1   | 5.0     | 57.6  | 3.7     | 2.7     |
+---------------------+--------+---------+-------+---------+---------+
| Lodging, heating    | 273.3  | 24.4    | 293.0 | 19.0    | 7.2     |
| and lightling       |        |         |       |         |         |
+---------------------+--------+---------+-------+---------+---------+
| Health              | 37.5   | 3.3     | 41.8  | 2.7     | 11.5    |
+---------------------+--------+---------+-------+---------+---------+
| Transport and       | 79.4   | 7.1     | 209.5 | 13.6    | 63.8    |
| Communications      |        |         |       |         |         |
+---------------------+--------+---------+-------+---------+---------+
| Leisure and culture | 105.4  | 9.4     | 109.8 | 7.1     | 4.7     |
+---------------------+--------+---------+-------+---------+---------+
| Education           | 7.7    | 0.7     | 8.3   | 0.5     | 7.8     |
+---------------------+--------+---------+-------+---------+---------+
| Hotels, cafes and   | 69.5   | 6.2     | 73.3  | 4.7     | 5.5     |
| restaurants         |        |         |       |         |         |
+---------------------+--------+---------+-------+---------+---------+
| Other goods and     | 120.8  | 10.8    | 132.7 | 8.6     | 9.8     |
| services            |        |         |       |         |         |
+---------------------+--------+---------+-------+---------+---------+

Source: French National Institute for Statistics (INSEE)

## 

## 2. France\'s Food Service Sector Overview: 

France has a large and highly fragmented food service sector with many
small to medium-sized players. During calendar year 2005, the French
hotel, restaurant and institution (HRI) food service sector served
approximately 9.1 billion meals valued at nearly 72.9 billion Euros
(\$90.7 billion*)*, reflecting an increase in sales of 2.9 percent
compared to calendar year 2004. The French hotel, restaurant and
institution (HRI) food service sector is chiefly divided into two
sub-sectors:

-   Commercial catering - including restaurants, hotels and resorts,
    leisure parks, cafeterias, cafes, brasseries, and fast food outlets,
    including street vendors. In 2005, total sales in this sector were
    56.8 billion Euros (\$70.7 billion) with 4.9 billion meals served.

-   Institutional catering - including education, healthcare, business
    catering, schools, hospitals, factory restaurants, and air and sea
    catering. In 2005, this sector's total sales were 16.1 billion Euros
    (\$20 billion) with 4.2 billion meals served.

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

(estimated sales: \$90.7 billion)

+-----------------------------------------------------------+----------+
| Commercial catering:                                      | 27%      |
|                                                           |          |
| Fast food, cafeterias, cafes and brasseries               |          |
+-----------------------------------------------------------+----------+
| Traditional restaurants, including chains                 | 50%      |
+-----------------------------------------------------------+----------+
| Institutional catering                                    | 23%      |
+-----------------------------------------------------------+----------+
|                                                           |          |
+-----------------------------------------------------------+----------+
| Total                                                     | 100%     |
+-----------------------------------------------------------+----------+

The table below indicates estimated sales of the French food service
sector during the period 2000-2005.

**Value of the French Food Service Sector**

+----------------+-----------------------------------------------------+
|                | **Estimated Sales**                                 |
|                |                                                     |
|                | **(in billion dollars)**                            |
+----------------+-----------------------------------------------------+
| 2000           | 48.9                                                |
+----------------+-----------------------------------------------------+
| 2001           | 51.4                                                |
+----------------+-----------------------------------------------------+
| 2002           | 62.0                                                |
+----------------+-----------------------------------------------------+
| 2003           | N/A                                                 |
+----------------+-----------------------------------------------------+
| 2004           | 85.8                                                |
+----------------+-----------------------------------------------------+
| 2005           | 90.7                                                |
+----------------+-----------------------------------------------------+

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

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

**by Major Categories**

  ------------------------------------------- ---------- ---------- ----------
                                              **2005**   **2006     **2007
                                                         (F)**      (F)**

  Restaurants, including chains               *+2.2*     *+2.5*     *+2.7*

  Hotels and resorts                          +6.3       *+6.5*     +6.7

  Other (fast foods incl cafes, snacks,       *+*4.5     *+4.6*     *+4.6*
  brasseries)                                                       

  Institutional catering                      +6.5       *+*6.6     +6.7
  ------------------------------------------- ---------- ---------- ----------

\(F\) = Forecast

Source: Neo-Restauration and Trade estimates

In 2005, commercial catering sales increased mainly due to chain
restaurants, including grills and fast foods, where consumers were
attracted by moderately priced meals. From the 4.9 billion meals served
in this sector, 66 percent of the meals, by volume, cost 10 Euros
(\$12.4) or less, 13 percent cost between 10 and 15 Euros
(\$12.4-\$18.7), 11 percent cost 15-20 Euros (\$18.7-24.9) and
\"expensive\" meals, which cost between 20-30 Euros (\$24.9-37.3) fell
to 7 percent. For 2006 and 2007, expectations are for slowed growth in
the commercial catering sector reflecting generally slow
[(population/domestic spending??)]{.underline} growth in France and the
European Union.

Institutional catering (education, healthcare, business catering,
schools, hospitals, air and sea catering) is expected to continue its
growth trend in the future. For 2006, operators remain confident despite
a fiercely competitive environment where price negotiation is tough.
Professionals are exploring new ways to secure contracts
(multi-services, customized offers, adapting to new patterns of
consumption, such as new concepts of snacking to better compete with the
commercial catering). Education (schools, universities), as well as
business catering, are progressing slowly while the healthcare and
hospital sectors are increasing at a faster rate, focusing on
nutritional/health foods. Direct management contracts are expected to
increase, and direct management operators are tightening their
organizations by developing information and communication campaigns
aimed at consumers in an attempt to streamline their strategy and
highlight their differences.

## 3. Key Macro-Economic Factors Driving Demand in France\'s Food Service Market: 

## 

-   An aging population (20 percent over 60 years old) boosting the
    demand for institutional senior citizens centers/facilities.

-   Shrinking average household size fuels the demand for catering
    services.

-   Greater urbanization draws people to the cities, where they eat out
    more frequently.

-   Changing eating patterns: a growing number of people have a meal or
    snack outside the home several times a day, instead of the
    traditional three meals a day at home.

-   Growing workforce participation rate among women (40 percent of the
    working population) has raised the frequency of eating out and use
    of catering services.

-   Decline in the number of working hours has freed up more time for
    leisure and related activities.

-   Increasing independence of French teenagers to choose their foods,
    increasing interest in fast foods, including snacks and ethnic
    foods.

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

+-----------------------------------+-----------------------------------+
| ###### Advantages/Opportunities   | ###### Challenges                 |
+-----------------------------------+-----------------------------------+
| The current French food service   | The French "food culture" is very |
| sector growth trend of six        | strong and dominates the French   |
| percent per year; this sector is  | food sector output. Domestic and  |
| forecast to reach 95 billion      | intra-EU products supply a high   |
| Euros within the next ten years.  | majority of French food and       |
|                                   | beverages. Therefore, U.S.        |
|                                   | suppliers face stiff challenges.  |
+-----------------------------------+-----------------------------------+
| Relative weakness of the U.S.     | Price competition is fierce.      |
| dollar vis-a-vis the Euro         |                                   |
| benefits U.S. products.           |                                   |
+-----------------------------------+-----------------------------------+
| Decreasing European and French    | ### Fierce competi                |
| fish/seafood catch while imports  | tion places enormous pressure on  |
| from all over the world are       | suppliers not only for fish/seafo |
| increasing.                       | od but also for all other foods.  |
+-----------------------------------+-----------------------------------+
| France is Europe\'s leading meat  | U.S. suppliers must comply with   |
| consumer, primarily for natural   | European and French regulations   |
| and lean meat.                    | such as food safety, logistical   |
|                                   | constraints, and labeling         |
|                                   | regulations.                      |
+-----------------------------------+-----------------------------------+
| French consumers demand quality,  | U.S. suppliers must adapt         |
| innovative, healthy products.     | products to French consumers\'    |
|                                   | tastes and expectations at        |
|                                   | moderate prices.                  |
+-----------------------------------+-----------------------------------+
| U.S. fast food chains, theme      | Certain food ingredients are      |
| restaurants, and the food         | banned or restricted from the     |
| processing industry are raising   | French market.                    |
| demand for American food          |                                   |
| ingredients.                      |                                   |
+-----------------------------------+-----------------------------------+

# SECTION II. ROAD MAP FOR MARKET ENTRY 

# 

## 1. Commercial Catering:

The commercial catering sector dominates the food service market in
France with 77 percent market share. Trade sources estimate the value of
commercial catering sector at 56.8 billion Euros (\$70.7 billion) with
about 4.9 billion meals served annually. The sector is made up of:

-   [Traditional restaurants, including chains]{.underline} - This
    sector includes individual proprietor restaurants, multi-restaurant
    companies and large corporations, and represents 51 percent of the
    total food service market. A large number of these restaurants in
    Paris, around Paris and in major French cities are medium/high end
    restaurants serving a large range of traditional food, although an
    increasing number specialize in serving exotic cuisine from Asia,
    Africa, India and America. Restaurant chains represent 12 percent of
    the commercial catering market and are growing at a faster rate than
    independent restaurants with approximately 150 new outlets opened in
    2005, for an increase of 3 percent, compared to 2004.

> Customers represent middle to high income families, business clients,
> tourists, and the affluent young French. Customers frequent this
> category of restaurant to dine in style and comfort and to have access
> to high quality cuisine.

-   [Hotels and resorts with restaurants]{.underline} -- These
    establishments are operated by individual proprietors, companies or
    large corporations and are estimated to account for around 5 percent
    of the total food service market with 17,120 restaurants. In
    general, the French do not frequent hotels for their restaurants,
    except for dinner when traveling with the exception of a small
    number of luxury hotels with well-known restaurants, classified by
    famous guides such as \"Michelin\" or \"Gault & Millau.\" These
    restaurants serve a large range of traditional or ethnic foods.

-   [Leisure parks]{.underline} - France has about 50 leisure parks,
    three world-class (Disneyland Resorts Paris, Futuroscope and Parc
    Asterix). Disneyland Resorts Paris has about 14 million visitors
    annually with food sales estimated at \$245 million. It is the
    leading leisure park in France serving approximately 29 million
    meals and snacks yearly. Disneyland Resorts Paris has its own
    central buying office, \"Convergence Achats\".

> The second largest leisure park in France is Futuroscope serving
> approximately 3 million meals per year. The third largest is Park
> Asterix serving about one million meals yearly. Asterix, a French
> history themed park, serves only traditional and neo-traditional
> French food. Futuroscope and Asterix have their own buying offices.

-   [Cafeterias, Cafes and Brasseries]{.underline} - Operated by
    individual proprietors, companies or large corporations, they are
    estimated to have around 19 percent of the total food service
    market. These outlets serve sandwiches or quick lunches at
    reasonable prices to customers who are mainly workers, young
    business people and students.

-   [Fast food outlets, including street vendors]{.underline} - Operated
    by companies and large corporations, these outlets represent 25
    percent of the total food service market. Food sales in U.S.-style
    fast food restaurants, led by McDonald\'s and followed by Quick, a
    distant second, continue to rise in France. French fast food outlets
    that offer typically French food such as baguette sandwiches,
    quiches and salads, are increasing as well. French fast food segment
    sales and the non-French fast food segment sales, are growing
    respectively at 6.12 percent and 1.83 percent. Most U.S.-style fast
    food restaurants and restaurant chains buy their food inputs in
    France and Europe. For example, 95 percent of McDonald\'s food
    purchases for its French restaurants are made in Europe.

> Customers that frequent fast food outlets in France are low to middle
> income workers, families, teenagers, young adults, students and
> grandparents with their grandchildren.

### 1.1 Company Profiles:

> The tables below provide information on the categories in the French
> commercial catering sector:
>
> ***Categories of Commercial Catering, number of outlets and total
> sales***
>
> In Calendar Year 2005

+--------------------+------------+----------------+-----------------+
| Category           | Number of  | Total sales    | Sales           |
|                    | outlets    | i(In Million   | Percentage      |
|                    |            | \$)            | Change          |
|                    |            |                |                 |
|                    |            |                | 2005/2004       |
+--------------------+------------+----------------+-----------------+
| Traditional        | 66,067     | 28,514         | +0.8            |
| restaurants        |            |                |                 |
+--------------------+------------+----------------+-----------------+
| Bistrot and cafes  | 43,103     | 6,239          | +0.8            |
| restaurants        |            |                |                 |
+--------------------+------------+----------------+-----------------+
| Fish/seafood type  | 94         | 185            | +0.05           |
| restaurants        |            |                |                 |
+--------------------+------------+----------------+-----------------+
| Theme restaurants  | 542        | 728            | +1.96           |
+--------------------+------------+----------------+-----------------+
| Pizzerias          | 202        | 287            | -0.49           |
+--------------------+------------+----------------+-----------------+
| Grills             | 571        | 1,058          | +7.22           |
+--------------------+------------+----------------+-----------------+
| US-style fast food | 1,412      | 3,969          | +8.66           |
+--------------------+------------+----------------+-----------------+
| French fast food   | 1,645      | 1,187          | +6.90           |
+--------------------+------------+----------------+-----------------+
| Cafeterias         | 553        | 966            | -0.09           |
+--------------------+------------+----------------+-----------------+

> Source: Neo Restauration/Gira Sic Conseil
>
> Leaders in the Commercial Catering sector in France in Calendar Year
> 2005

+-----+------------------+-----------+--------------+----------------+
| **  | **Groups**       | **2005    | **Sales %    | **Number of    |
| Ran |                  | Sales**   | Change**     | Outlets**      |
| k** |                  |           |              |                |
|     |                  | **(In     | *            |                |
|     |                  | Million   | *2005/2004** |                |
|     |                  | \$)**     |              |                |
+-----+------------------+-----------+--------------+----------------+
| 1   | McDonald\'s      | 3,110     | +8.70        | 1060           |
|     | France           |           |              |                |
+-----+------------------+-----------+--------------+----------------+
| 2   | France Quick     | 765       | +2.50        | 315            |
+-----+------------------+-----------+--------------+----------------+
| 3   | Agapes           | 715       | +1.87        | 325            |
|     | Restauration     |           |              |                |
+-----+------------------+-----------+--------------+----------------+
| 4   | Servair (Air     | 709       | +1.73        | N/A            |
|     | Catering)        |           |              |                |
+-----+------------------+-----------+--------------+----------------+
| 5   | Elior/Eliance    | 597       | +7.07        | 711            |
+-----+------------------+-----------+--------------+----------------+
| 6   | Buffalo Grill SA | 488       | +9.19        | 272            |
+-----+------------------+-----------+--------------+----------------+
| 7   | Groupe Flo (1)   | 447       | +5.46        | 145            |
+-----+------------------+-----------+--------------+----------------+
| 8   | Casino Cafeteria | 386       | -0.73        | 324            |
+-----+------------------+-----------+--------------+----------------+
| 9   | Groupe Le Duff   | 334       | +2.65        | 343            |
+-----+------------------+-----------+--------------+----------------+
| 10  | Groupe Holder    | 326       | +6.12        | 308            |
+-----+------------------+-----------+--------------+----------------+
| 11  | Autogrill        | 271       | +1.49        | N/A            |
+-----+------------------+-----------+--------------+----------------+
| 12  | EuroDisney SCA   | 245       | +1.23        | 68             |
+-----+------------------+-----------+--------------+----------------+
| 13  | Sesare SAS       | 208       | +11.26       | 167            |
+-----+------------------+-----------+--------------+----------------+
| 14  | SSP Compass (2)  | 208       | +3.09        | 190            |
+-----+------------------+-----------+--------------+----------------+
| 15  | Yum Brands       | 204       | +0.61        | 152            |
+-----+------------------+-----------+--------------+----------------+
| 16  | Brasseries       | 202       | +7.12        | 90             |
|     | Kronenbourg      |           |              |                |
+-----+------------------+-----------+--------------+----------------+
| 17  | Bar & Co.        | 199       | +12.68       | 185            |
+-----+------------------+-----------+--------------+----------------+
| 18  | Bertrand OB      | 172       | +0.14        | N/A            |
|     | Holding          |           |              |                |
+-----+------------------+-----------+--------------+----------------+
| 19  | Accor            | 152       | +2.00        | N/A            |
+-----+------------------+-----------+--------------+----------------+
| 20  | Cora             | 131       | +0.96        | N/A            |
+-----+------------------+-----------+--------------+----------------+

> N/A: Not Available
>
> Source: Neo-Restauration Magazine

(1) Groupe Flo bought Tablapizza in March 2006

(2) Compass stopped activity with their SSP (Selected Service Partner)
    branch in spring 2006

> ***Commercial Catering in France: Leading Groups and Brands***
>
> ***in Calendar Year 2005***

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

  McDonald\'s France  McDonald\'s

  France Quick SA     Quick

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

  Servair (air        Servair
  catering)           

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

  Buffalo Grill SA    Buffalo Grill

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

  Casino Cafeterias   Cafeterias Casino, Cœurs de ble

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

  Accor               Lenotre, Wagons Lits

  Groupe Holder       Paul, St Preux, Laduree

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

  Eurodisney SCA      Disneyland Paris

  Yum                 Pizza Hut, KFC

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

  Brasseries          Tavernes, Comptoirs de Maitre Kanter
  Kronenbourg         

  Serrare SAS         Courtepaille

  Bar & Co            Au Bureau, Irish Corner, Cafe Leffe, Brussel\'s
                      Cafe, Hoegaarden Cafe, etc.

  Groupe Bertrand     Restaurants a Themes, Sandwicheries Bert\'s,
  Toastissimo         Cafeterias Eris

  Cora                Cafeterias Cora

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

> Source: Neo-Restauration Magazine
>
> Fast Food Segment in France in Calendar Year 2005:

+-------------------------------+--------------+--------+------------+
| **Groups**                    | **Number of  | *      | **% Sales  |
|                               | r            | *Sales | Increase** |
|                               | estaurants** | in     |            |
|                               |              | 2005** | **2        |
|                               |              |        | 004/2003** |
|                               |              | **(In  |            |
|                               |              | M      |            |
|                               |              | illion |            |
|                               |              | \$)**  |            |
+-------------------------------+--------------+--------+------------+
| McDonald\'s France            | 1060         | 3,110  | +8.7       |
+-------------------------------+--------------+--------+------------+
| France Quick                  | 315          | 765    | +6.27      |
+-------------------------------+--------------+--------+------------+
| KFC France                    | 37           | 93     | +31.58     |
+-------------------------------+--------------+--------+------------+
| ***Major French Fast Food***  |              |        |            |
+-------------------------------+--------------+--------+------------+
| Paul, St Preux (Groupe        | 304          | 295    | +5.38      |
| Holder)                       |              |        |            |
+-------------------------------+--------------+--------+------------+
| La Station Sandwich, Pomme de | 352          | 259    | +4.99      |
| Pain, Aubepain, Cafe Route,   |              |        |            |
| Phileas, Paul (Groupe Elior)  |              |        |            |
+-------------------------------+--------------+--------+------------+
| Brioche Doree, Le Fournil de  | 256          | 208    | +1.83      |
| Pierre (Groupe Le Duff)       |              |        |            |
+-------------------------------+--------------+--------+------------+
| Bonne Journee, Cafe Ritazza,  | 147          | 124    | +10.85     |
| Upper Crust (SSP Compass)     |              |        |            |
+-------------------------------+--------------+--------+------------+
| Ciao, Spizzico, Burger King   | 200          | 112    | +5.88      |
| (Autogrill)                   |              |        |            |
+-------------------------------+--------------+--------+------------+
| La Mie Caline (La Mie Caline) | 144          | 108    | +9.03      |
+-------------------------------+--------------+--------+------------+
| Relais H SNC Relais H Cafe    | 185          | 98     | +10.35     |
+-------------------------------+--------------+--------+------------+
| La Croissanterie (La          | 129          | 71     | +13.49     |
| Croissanterie SA)             |              |        |            |
+-------------------------------+--------------+--------+------------+

> Source: Survey Neo-Restauration/gira Sic Conseil

### 1.2 Entry Strategy 

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

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

-   Check EU and French food safety requirements: As of January 1, 2006,
    France will reinforce and supplement the 178/2002 EU Food Law and
    the 852/2004 \"H1\" regulation on food safety.

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

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

### 

### 1.3 Distribution Channels

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

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

  Pomona (Privately Owned)          Fresh fruits and vegetables

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

  Prodirest (Group Carrefour)       Frozen food

  Davigel (Subsidiary of Nestle)    Frozen food and seafood

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

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

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

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

> (\*) Brake purchased Carigel in 2002.
>
> Source: Neo Restauration
>
> ***Top Four Hotel & Resort Chains in France & Europe with***
>
> ***Restaurant and Catering Services***

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

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

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

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

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

> Source: La Revue HRC (hotel, Restaurant, Cafe)

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

> The institutional catering sector represents 23 percent of the food
> service market. Trade sources value the institutional catering sector
> at 16.1 billion Euros (\$20 billion) with approximately 4.2 million
> meals served in 2005. This sector includes:

-   Contract Catering Businesses

> This catering segment includes company restaurants, schools and
> universities, hospitals, nursing and retirement homes and is dominated
> by specialized companies such as Sodexho, Compass and Elior. The
> contract catering business increased 6.5 percent in 2005, compared to
> 2004, and is expected to increase at about the same rate up to 2010.

-   Concession Catering

> Concession catering includes transportation (highways, railway
> stations and airports) catering, as well as in-town and leisure
> catering (museums, exhibition and sport centers). According to
> industry analysts, this segment increased at an annual rate of 3.6
> percent from 1996 to 2005 and is expected to grow at a rate of 4
> percent annually through 2010.
>
> The Sodexho group is the largest player in this segment, immediately
> followed by Elior group, the Compass group (mainly supplying
> airports), Autogrill (highways and railway stations) and Horeto (city
> sites and leisure sites).

-   Air and Sea Catering

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

### 

### 2.1 Company Profiles

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

***Major Groups & Businesses in the Institutional Catering Sector***

+----+---------------+------+----------+----------+-------+----------+
| ** | *             | **T  | **Sales  | **Number | **Me  | **%      |
| Ra | *Group/Firm** | otal | %        | of       | als** | Change   |
| nk |               | S    | Change** | Resta    |       | Meals    |
| ** |               | ales |          | urants** | **S   | Served   |
|    |               | in   | **200    |          | erved | 200      |
|    |               | 20   | 5/2004** |          | in    | 5/2004** |
|    |               | 05** |          |          | 2005  |          |
|    |               |      |          |          | (In   |          |
|    |               | *    |          |          | Milli |          |
|    |               | *(In |          |          | on)** |          |
|    |               | Mil  |          |          |       |          |
|    |               | lion |          |          |       |          |
|    |               | \    |          |          |       |          |
|    |               | $)** |          |          |       |          |
+----+---------------+------+----------+----------+-------+----------+
| 1  | Group Sodexho | 2    | +2.7     | 5,491    | 314   | +1.3     |
|    | France (\*)   | ,029 |          |          |       |          |
+----+---------------+------+----------+----------+-------+----------+
| 2  | Group Elior   | 1    | +4.2     | 3,691    | 259   | +4.2     |
|    |               | ,518 |          |          |       |          |
+----+---------------+------+----------+----------+-------+----------+
| 3  | Compass Group | 1    | +10.5    | 2,900    | 200   | +2.5     |
|    | France        | ,449 |          |          |       |          |
+----+---------------+------+----------+----------+-------+----------+
| 4  | Group Score   | 186  | +22.5    | 551      | 23    | +27.5    |
+----+---------------+------+----------+----------+-------+----------+
| 5  | Group API     | 167  | +10.2    | 829      | 47    | +7.9     |
+----+---------------+------+----------+----------+-------+----------+
| 6  | Groupe Dupont | 113  | +11.6    | 390      | 27    | +11.5    |
|    | Restauration  |      |          |          |       |          |
+----+---------------+------+----------+----------+-------+----------+
| 7  | Groupe        | 101  | +14.6    | 365      | 23    | +14.8    |
|    | Ansamble      |      |          |          |       |          |
+----+---------------+------+----------+----------+-------+----------+
| 8  | L'Alsacienne  | 98   | +3.9     | 378      | 17    | +2.8     |
|    | de            |      |          |          |       |          |
|    | Resta         |      |          |          |       |          |
|    | uration/Vivae |      |          |          |       |          |
+----+---------------+------+----------+----------+-------+----------+
| 9  | Apetito       | 42   | +3.9     | 107      | 6     | -13.6    |
|    | France        |      |          |          |       |          |
+----+---------------+------+----------+----------+-------+----------+
| 10 | Multi         | 42   | +4.3     | 97       | 5     | +0.3     |
|    | Restauration  |      |          |          |       |          |
|    | ServiceS      |      |          |          |       |          |
|    | (Group MRS)   |      |          |          |       |          |
+----+---------------+------+----------+----------+-------+----------+
| 11 | Res           | 30   | +7.0     | 76       | N/A   | N/A      |
|    | teco-Bretagne |      |          |          |       |          |
|    | Restauration  |      |          |          |       |          |
+----+---------------+------+----------+----------+-------+----------+
| 12 | Ascoger       | 24   | +0.5     | 40       | 2     | +11.0    |
+----+---------------+------+----------+----------+-------+----------+

Source: Club Restauration

N/A = Not Available

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

***Top 10 Companies in the Health and Elderly Care Segment***

Sales in this sector totaled approximately \$7.6 billion in 2005, with
2.6 billion meals served, representing 38 percent, by value, of the
total institutional catering sector. Experts forecast that steady growth
in this segment will continue due to demand from an aging population.
Opportunities exist for U.S. suppliers of frozen foods, semi-prepared
foods or sides, and prepared meals.

+----+---------------+-------+-----------+---------+----------------+
| ** | ***           | ***   | ***Sales  | *       | ***% Changed   |
| *R | Group/Firm*** | Sales | %         | **Total | Meals Served   |
| an |               | in    | Change*** | Meals   | 2005/2004***   |
| k* |               | 20    |           | se      |                |
| ** |               | 05*** | ***200    | rved*** |                |
|    |               |       | 5/2004*** |         |                |
|    |               | *     |           | ***(In  |                |
|    |               | **(In |           | Mill    |                |
|    |               | Mi    |           | ion)*** |                |
|    |               | llion |           |         |                |
|    |               | \     |           |         |                |
|    |               | $)*** |           |         |                |
+----+---------------+-------+-----------+---------+----------------+
| 1  | Sodexho       | 554   | +7.0      | 89      | +3.3           |
|    | France        |       |           |         |                |
+----+---------------+-------+-----------+---------+----------------+
| 2  | Medirest      | N/A   | N/A       | 47      | +2.7           |
|    | (Compass      |       |           |         |                |
|    | Group France) |       |           |         |                |
+----+---------------+-------+-----------+---------+----------------+
| 3  | Avenance      | N/A   | N/A       | 50      | +4.0           |
|    | (Elior Group) |       |           |         |                |
+----+---------------+-------+-----------+---------+----------------+
| 4  | Sogeres       | 83    | -0.8      | 14      | -1.7           |
|    | (Sodexho)     |       |           |         |                |
+----+---------------+-------+-----------+---------+----------------+
| 5  | Groupe        | 68    | +11.9     | 19      | +10.0          |
|    | API/RDR       |       |           |         |                |
+----+---------------+-------+-----------+---------+----------------+
| 6  | Score Groupe  | 48    | +194.5    | 7       | +176           |
+----+---------------+-------+-----------+---------+----------------+
| 7  | Dupont        | 38    | +14.0     | 7       | +14.6          |
|    | Restauration  |       |           |         |                |
+----+---------------+-------+-----------+---------+----------------+
| 8  | Ansamble      | 30    | +29.9     | 6       | +26.6          |
+----+---------------+-------+-----------+---------+----------------+
| 9  | Alsacienne de | 24    | +0.5      | 5       | -1.7           |
|    | Restauration  |       |           |         |                |
+----+---------------+-------+-----------+---------+----------------+
| 10 | Apetito       | 12    | -1.4      | 18      | 0              |
+----+---------------+-------+-----------+---------+----------------+

Source: Neo-Restauration Magazine

N/A: Not Available

***Top 10 Companies of the Education (School and University) Segment***

The educational segment of the institutional catering sector had sales
of approximately \$6.2 billion in 2005, or 31 percent, by value, of the
institutional market sector with 1.6 billion meals served in 2005. This
segment showed overall growth of 9 percent in 2005. Few opportunities
exist for U.S. suppliers due to low per-meal costs.

+----+--------------+---------+-----------+----------+---------------+
| ** | **           | **Total | **%       | **Meals  | **% Change    |
| Ra | Group/Firm** | Sales   | Change    | Served   | Meals Served  |
| nk |              | in      | Sales**   | in       | 2005/2004**   |
| ** |              | 2005**  |           | 2005**   |               |
|    |              |         | **20      |          |               |
|    |              | **(In   | 05/2004** | **(In    |               |
|    |              | Million |           | Mi       |               |
|    |              | \$)**   |           | llion)** |               |
+----+--------------+---------+-----------+----------+---------------+
| 1  | Avenance     | N/A     | N/A       | 122      | +4.1          |
|    | (Elior       |         |           |          |               |
|    | Group)       |         |           |          |               |
+----+--------------+---------+-----------+----------+---------------+
| 2  | Sodexho      | 314     | -3.5      | 81       | +0.1          |
|    | France       |         |           |          |               |
+----+--------------+---------+-----------+----------+---------------+
| 3  | Scolarest    | N/A     | N/A       | 62       | +2.2          |
|    | (Compass     |         |           |          |               |
|    | Group        |         |           |          |               |
|    | France)      |         |           |          |               |
+----+--------------+---------+-----------+----------+---------------+
| 4  | Sogeres      | 144     | +3.5      | 29       | +4.5          |
|    | (Sodexho)    |         |           |          |               |
+----+--------------+---------+-----------+----------+---------------+
| 5  | Group        | 64      | +8.0      | 23       | +6.0          |
|    | API/RDR      |         |           |          |               |
+----+--------------+---------+-----------+----------+---------------+
| 6  | Ansamble     | 36      | +12.9     | 12       | +12.9         |
+----+--------------+---------+-----------+----------+---------------+
| 7  | Dupont       | 25      | +10.0     | 8        | +10.0         |
|    | Restauration |         |           |          |               |
+----+--------------+---------+-----------+----------+---------------+
| 8  | Resteco      | 17      | +13.7     | N/A      | N/A           |
|    | Bretagne     |         |           |          |               |
|    | Restauration |         |           |          |               |
+----+--------------+---------+-----------+----------+---------------+
| 9  | Apetito      | 12      | -0.9      | 3        | -11.7         |
+----+--------------+---------+-----------+----------+---------------+
| 10 | Alsacienne   | 12      | +5.3      | 3        | +5.3          |
|    | de           |         |           |          |               |
|    | Restauration |         |           |          |               |
+----+--------------+---------+-----------+----------+---------------+

Source: Neo-Restauration Magazine

N/A: Not Available

***Top 10 Groups/Firms of the Company Catering Segment***

Sales in this segment of the institutional catering sector totaled
approximately \$6 billion, or 30 percent of the institutional market
sector, with 0.7 billion meals served in 2005. This sector showed
overall growth in number of meals served, and offers opportunities for
U.S. suppliers of sophisticated, innovative and quality semi-prepared
meals, including meat, fish and seafood.

+----+--------------+---------+-----------+--------+----------------+
| ** | **           | **Total | **%       | *      | **% Changed    |
| Ra | Group/Firm** | Sales   | Change    | *Total | Meals served   |
| nk |              | in      | Sales**   | M      | 2005/2004**    |
| ** |              | 2005**  |           | eals** |                |
|    |              |         | **20      |        |                |
|    |              | **(In   | 05/2004** | **     |                |
|    |              | Million |           | Served |                |
|    |              | \$)**   |           | in     |                |
|    |              |         |           | 2005** |                |
|    |              |         |           |        |                |
|    |              |         |           | **(In  |                |
|    |              |         |           | Mill   |                |
|    |              |         |           | ion)** |                |
+----+--------------+---------+-----------+--------+----------------+
| 1  | Avenance     | N/A     | N/A       | 87     | +4.3           |
|    | (Group       |         |           |        |                |
|    | Elior)       |         |           |        |                |
+----+--------------+---------+-----------+--------+----------------+
| 2  | Eurest       | N/A     | N/A       | 85     | +2.4           |
|    | (Compass     |         |           |        |                |
|    | Group        |         |           |        |                |
|    | France)      |         |           |        |                |
+----+--------------+---------+-----------+--------+----------------+
| 3  | Sodexho      | 646     | -0.5      | 74     | -2.8           |
|    | France       |         |           |        |                |
+----+--------------+---------+-----------+--------+----------------+
| 4  | Sogeres      | 192     | +10.4     | 20     | +8.1           |
|    | (Sodexho)    |         |           |        |                |
+----+--------------+---------+-----------+--------+----------------+
| 5  | Group SCORE  | 124     | +3.6      | 15     | +5.3           |
+----+--------------+---------+-----------+--------+----------------+
| 6  | L            | 57      | +5.1      | 9      | +4.7           |
|    | \'Alsacienne |         |           |        |                |
|    | de           |         |           |        |                |
|    | Restauration |         |           |        |                |
+----+--------------+---------+-----------+--------+----------------+
| 7  | Ansamble     | 36      | +5.8      | 6      | +8.4           |
+----+--------------+---------+-----------+--------+----------------+
| 8  | Multi        | 35      | +3.1      | 4      | +0.4           |
|    | Restauration |         |           |        |                |
|    | Services     |         |           |        |                |
+----+--------------+---------+-----------+--------+----------------+
| 9  | Group        | 34      | +12.8     | 5      | +8.4           |
|    | API/RDR      |         |           |        |                |
+----+--------------+---------+-----------+--------+----------------+
| 10 | Dupont       | 29      | +11.8     | 5      | +9.0           |
|    | Restauration |         |           |        |                |
+----+--------------+---------+-----------+--------+----------------+

Source: Neo-Restauration Magazine

N/A: Not Available

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

Sales in this segment of the institutional catering sector totaled \$0.2
billion, or one percent, of the institutional market sector. Lack of
available data makes it difficult to project annual growth, but
opportunities for U.S. suppliers in this segment are likely very
limited.

### 2.2 Entry Strategy 

The diagram below indicates product flow in this market segment.

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

## 3. Competition in the Commercial and Institutional Sectors

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

+-------------+--------+---------------+------------------------------+
| **Product** | **     | **Major       | **Market Summary**           |
|             | Import | Supply        |                              |
|             | Ma     | Countries**   |                              |
|             | rket** |               |                              |
|             |        | **in 2005**   |                              |
|             | **Size |               |                              |
|             | in     |               |                              |
|             | 2005   |               |                              |
|             | (in    |               |                              |
|             | B      |               |                              |
|             | illion |               |                              |
|             | \$)**  |               |                              |
+-------------+--------+---------------+------------------------------+
| Fish and    | 3.6    | U.K., Norway, | U.K. and Norway are both     |
| seafood     |        | Spain,        | very price competitive and   |
|             |        | Denmark,      | able to supply the fish and  |
|             |        | Netherlands,  | seafood varieties demanded   |
|             |        | USA           | by local consumers.          |
+-------------+--------+---------------+------------------------------+
| Sauces,     | 0.3    | EU countries  | Price competitive and no     |
| salad       |        |               | custom duties. However, the  |
| dressings   |        | USA           | U.S. is able to supply a     |
| and         |        |               | variety of ethnic/regional   |
| seasonings  |        |               | sauces.                      |
+-------------+--------+---------------+------------------------------+
| Canned      | 0.7    | West and      | Price competitive. No duties |
| fruits and  |        | Eastern       | for EU imports.              |
| vegetables  |        | Europe and    |                              |
|             |        | Morocco       |                              |
+-------------+--------+---------------+------------------------------+
| Bison meat  | N/A    | Canada        | Although France is beginning |
|             |        |               | to produce bison meat,       |
|             |        | USA           | Canada remains the major     |
|             |        |               | supplier. U.S. bison meat is |
|             |        |               | less price competitive than  |
|             |        |               | the Canadian meat.           |
+-------------+--------+---------------+------------------------------+
| Wine        | 1.4    | Italy, Spain, | Price competitive since no   |
|             |        | Portugal and  | duties inside the EU.        |
|             |        | New World     | However, \"exoticism\" and   |
|             |        | wines,        | quality create opportunities |
|             |        | including     | for U.S. wines.              |
|             |        | USA.          |                              |
+-------------+--------+---------------+------------------------------+
| Fruit       | 0.1    | Brazil,       | Lower prices from Brazil and |
| juices      |        | Spain, USA    | Spain. However, Florida      |
|             |        |               | juices have a good image.    |
+-------------+--------+---------------+------------------------------+
| Ethnic      | N/A    | China, Japan, | Given the growth of exotic   |
| Foods       |        | India,        | cuisine, Tex-Mex products    |
|             |        | Africa, USA   | are growing, however,        |
|             |        |               | opportunities exist for      |
|             |        |               | other US/regional cuisine    |
|             |        |               | such as cajun.               |
+-------------+--------+---------------+------------------------------+
| R           | 0.1    | EU countries. | France is a large            |
| eady-to-eat |        | China, Japan, | manufacturer of ready-to-eat |
| meals       |        | India, Africa | meals. Imports from other    |
|             |        |               | countries offer competitive  |
|             |        |               | prices.                      |
+-------------+--------+---------------+------------------------------+
| Dried       | 3.7    | USA, Turkey,  | Lower prices from key supply |
| fruits and  |        | Israel, Iran  | countries. However, U.S.     |
| nuts        |        |               | products dominate in almonds |
|             |        |               | and pistachios.              |
+-------------+--------+---------------+------------------------------+
| Fresh       | 3.7    | Spain, Italy, | Preference is given to EU    |
| fruits      |        | Morocco,      | suppliers and neighborhood   |
| (including  |        | Israel, South | countries having special     |
| grapefruits |        | Africa and    | tariff rates. However,       |
| & exotic    |        | USA.          | Florida grapefruit is a      |
| fruits      |        |               | market favorite.             |
+-------------+--------+---------------+------------------------------+
| Rice        | 0.3    | Thailand,     | France is a producing        |
|             |        | China, India, | country. Thailand, China and |
|             |        | USA           | India offer quality and low  |
|             |        |               | price products. USA mostly   |
|             |        |               | exports brown rice. Biotech  |
|             |        |               | testing is a constraint.     |
+-------------+--------+---------------+------------------------------+
| Dry legumes | 0.1    | China,        | France grows lentils but     |
| (peas,      |        | Canada,       | imports most all other dry   |
| lentils and |        | Turkey,       | legumes (beans, and peas).   |
| beans)      |        | Argentina,    | USA competitors in the       |
|             |        | USA           | sector offer lower prices.   |
|             |        |               | The US advantage is quality  |
|             |        |               | and variety.                 |
+-------------+--------+---------------+------------------------------+

Sources: Various trade reports

## 4. Best Product Prospects

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

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

## 5. Post Contacts and Further Information 

The Office of Agricultural Affairs of the American Embassy in Paris can
supply any U.S. company with the complete list, addresses, telephone/fax
numbers, Emails and contact names of the major players in the HRI/Food
Service sector.

Office of Agricultural Affairs

American Embassy

2, avenue Gabriel - 75382 Paris Cedex 08, France

Tel: (33-1) 43 12 2264

Fax: (33-1) 43 12 2662

Email: agparis@usda.gov

Internet: www.amb-usa.fr/fas/fas.htm

For more information on exporting U.S. food products to France, visit
our homepage. The Office of Agricultural Affairs homepage includes
information on the Retail Food and Food Processing Sectors, U.S.
Exporters Guide information, Food Agricultural Import Regulations and
Standards, product briefs on the market potential for U.S. products, and
upcoming promotional trade shows and fairs in France.

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

www.fas.usda.gov

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