The German market for cold-meats is just beginning to recover after a period in the doldrums and this reactivation is being felt in both increased sales and home production.
Total turnover for the German cold-meats industry in 2014 was € 18,160 million which was an increase of 3’38% over the previous year. On of the contributing factors to explain this rise was a lowering of pro prices of 1% respect to 2013, thanks to a reduction in costs due, largely, to lower raw material and energy costs.
Total production in Germany reached almost 1,470 tonnes in 2014 an increase of 0’7% over the previous year. This small, but significant increase, breaks a tendency seen over the previous years of decreasing production. German production had also suffered at the hands of imported cold-meats when foreign firms made concerted efforts to increase imports into the German market.
Distribution and Sales
Cold-meats are generally sold through the chains of discount supermarkets in Germany which represent about 44% of the total market. Their golden age started at the beginning of this century when huge growth in those years led them to attain the present position of close to 50% of the market.
The traditional cold-meat shops, butchers and delis traditionally played a very important role in the market, but pressure from the hard discounters has led to a significant loss of market share. Currently, less than 20% of sales go tough the traditional outlets of cold-cuts, butchers and delis.
When taking into consideration the nature of distribution in Germany, any company wishing to enter the market must contact specialised distributors familiar with set-up in the country. Depending on our target market we will want to contact those distributors with strong links to the discounters if we are looking for mainly volume, with distributors to more traditional supermarkets and chains for the mid-market and specialised distributors to the gourmet butchers and delis.
These gourmet shops are looking for something different and, very possibly, those distributors aiming at the middle may also have departments concentrating on a more up-market product.
Taking into account that the German market has, to all intents and purposes, stabilised, any product we wish to introduce should offer an incentive to the consumer as this situation means that anything you sell will be one sales less for your competition. Your quality/price relationship will be of paramount importance.
Once we have these factors in out favour, the next move is to carry out the search for possible partners, filtering the contacts unearthed and contacting those short-listed in the process.
Verband der Fleischwirtschafte.V.
Bundesverband der DeutschenFleischwarenindustriee.V.