The Netherlands Market Overview

Stephanie Moe Bord Bia Amsterdam Growing the success of Irish food & horticulture AIDAN COTTER

Growing the success CHIEF EXECUTIVE

BORD BIA

of Irish food & horticulture 28 JANUARY 2009

13th November 2014

Market Facts 2nd largest agricultural exporter in the World 4th largest economy in EU 7th largest economy in the World Rotterdam 2nd largest port in the World #1 exporter of cut flowers in the World Half the size of Ireland with over 3 times the population ¼ of the Netherlands below sea level Growing the success of Irish food & horticulture

Demographics Population 16.8 million Land Area 41,543 sq km; 405 people per sq Km Highest population density: Ranstad: 50km catchment area incorporating Amsterdam, The Hague & Rotterdam – 7m people

7.2 million households Total Foreign Community 3.2 million

Percentage of population 18-64 : 63% Head of State: King Willem; Prime Minister: Mark Rutte Growing the success of Irish food & horticulture

Dutch Economy GDP € 603bn (€164 bn Ireland)

GDP growth 2014 of 0.7% Inflation 1.1% Unemployment 8.0% -down from 8.3% in 2013 Percentage of income spent on food 11.4% Ireland =7.5% same period (2010) Agri-food industry contributes €48bn to Dutch GDP Growing the success of Irish food & horticulture

Consumer confidence has improved in 2014, return to 2010 levels

Feb-14

Dec-13

Okt-13

Aug-13

Jun-13

Apr-13

Feb-13

Dec-12

Oct-12

Aug-12

Jun-12

Apr-12

Feb-12

Dec-11

Oct-11

Aug-11

Jun-11

Apr-11

Feb-11

Dec-10

Oct-10

Aug-10

Jun-10

Apr-10

Feb-10

Dec-09

Oct-09

Aug-09

Jun-09

Apr-09

0

Feb-09

10

-12

-10 -16

-17

-20 -22

-30

-40

-50

Eurocrisis

-48 -51

-60 Basis: GfK Consumentenvertrouwen

Growing the success of Irish food & horticulture

Key Irish Food & Drink Exports

Growing the success of Irish food & horticulture

Growing the success of Irish food & horticulture

Irish Beef in the Netherlands

Growing the success of Irish food & horticulture

Image of Ireland

Growing the success of Irish food & horticulture

Irish Suppliers to the Dutch Market

Growing the success of Irish food & horticulture

Dutch Food Market

Growing the success of Irish food & horticulture

Dutch Retail Landscape • • • • • Source IGD

Growing the success of Irish food & horticulture

Small stores & assortments Low # facings – high order frequency JIT logistics

Private label - c. 28% & growing, tiered offering Price promos account for 18%

Store Numbers

Growing the success of Irish food & horticulture

Dutch Supermarket Positioning Low Relatief pricing voordelig Discount / Prijs

Relatief Low lage serviceservice

High service Relatief hoge servicegraad

graad

Midden

Service

High Relatief pricing Growing the success of Irish food & horticulture onvoordelig

Private Label Development in NL 1999 – 2011 Spain: 20% - 49%

Germany: 27% - 41% France: 22% - 36% Italy: 12% - 20% Belgium: 35% - 40% Netherlands: 21% - 28% Source:PLMA

Growing the success of Irish food & horticulture

Foodservice Four national players in the market which represent 10%-15% of the marketplace: -Deli XL -Sligro -Makro (Metro) -Hanos Accounts for 35% of household food spend HoReCa Segmentation:

0%

QSR

FSR

CAFÉS/BARS

HOTELS

20%

22%

19%

10%

EUR15.1bn

Growing the success of Irish food & horticulture

“ON-THE-GO” 13%

“CATERING” 16%

100%

Foodservice

Broadline

Premium/ Service

Value

Specialist Growing the success of Irish food & horticulture

Source: Pro-Intal

Why the Netherlands? –Opportunities for Ireland Language Dense Population Open to International Trade (Ireland = positive)

Stepping Stone to rest of Europe Similarities to UK/Ireland Straight-forward attitude to doing business

Growing the success of Irish food & horticulture

Understanding the Dutch Consumer

Growing the success of Irish food & horticulture

Understanding the Country

• • • • • • •

Large suburban middle class

Population density / Space Calvinist influence

Average Household size is 2.2 (Ireland 2.7). Smaller more frequent shopping (x3 week)

Preference for convenience: pre-chopped veg, prepared meat, sliced cheese. Strict Planning Restrictions (& hours) Growing the success of Irish food & horticulture

Market Trends

Culy.nl

Growing the success of Irish food & horticulture

How to ‘Go Dutch’ Careful Planning: meeting times & agenda Must be frank and open –no ‘maybe’ Possible to start small

Must deliver on promises/follow-up Persistence can pay-off …..stay on their radar Find a customer suited to your size (not all about targeting the biggest players)

Growing the success of Irish food & horticulture

Product Suitability Understand your Category and how usage occasions may differ Small pack sizes preferable Convenience is key Language requirements Ethnic Communities

Growing the success of Irish food & horticulture

Challenges in the Dutch Market Average selling space of 784 m2

• • • • • •

Small assortments (1 facing  high order frequency) New listing means de-listing

Small outer cases Just in time (JIT) logistics Short order lead time

Growing the success of Irish food & horticulture

Pricing and Logistics Customer will work from delivered cost Need to factor in product costs, your margin, excise and logistics costs –will vary depending on product type and service level required Strong logistics in place – regular deliveries expected. CDC common. Single/multi-drop. Distributor/direct? Retailers increasingly seeking direct supply (price, access to innovation) VAT (BTW): 6% on food, 21% non-food/luxury

No listing Fees (but marketing contribution expected for branded) Retailer margins: Diff methods of calculation so vary per retailer, also by category and branded v PL Growing the success of Irish food & horticulture

Sustainability –the Dutch perspective

•

• • • •

Dutch spent €2.5 billion on sustainable food in 2013 (+ €257 million / +10.8%) Retailer focus on sustainability increased Focus on sustainability in foodservice is growing with consumers (Organic & Fairtrade items) Recycling Prevalent Waste in general frowned upon (thuisafgehaald.nl / shareyourmeal.net) Growing the success of Irish food & horticulture

Marketplace International Targets

• •

14 Dutch buyers to include retail/foodservice/distributors Across the following categories: Sector

Buyer Target

Alcoholic Drinks

2

Consumer Dairy

2

Seafood

2

Frozen

2

Confectionery/Snacks

1

Grocery

2

Bakery

2

Chilled

1

Growing the success of Irish food & horticulture

Bord Bia Amsterdam Services Market Study Visit: 17th February 2015

Information on target companies Local store audits and market data Buyer contact lists

Note: Small office – advance notice preferable for queries Growing the success of Irish food & horticulture

For Further Information: Stephanie Moe / Aonghus Ó Drisceoil Bord Bia Amsterdam World Trade Centre Strawinskylaan 1351 1077 XX Amsterdam Netherlands Tel: +31 20 754 6969 Mail: [email protected] Web: www.irishbeef.nl Growing the success of Irish food & horticulture