Serbia
Market Overview
Bord Bia, Frankfurt
November 27th 2008
Serbian Market Overview
•
Population: 8.03 million (excl.
Kosovo)
– Belgrade (Capital) 1,120,400
– Novi SAD 299,300
– Nis 173,800 and
– Burgas Kragujevac 146,300
•
Language: Serbian
•
Currency: Serbian Dinar €1 = 83.9
CSD (IGD, October 2008)
•
Looking to join the EU
Market Overview
•
GDP Growth - real growth rate 6.5% 2008(e) (IGD, 2008)
•
Inflation rate: 7.8% (2008(e)) (IGD, 2008)
•
Unemployment: 24% (2008(e)) (IGD, 2008)
•
Grocery Retail Spending per capita is increasing; up from €367 in 2004 to €623
in 2008 (e) (IGD, 2008)
•
VAT on goods and services: 18%
•
VAT on food, medicines and books: 8%
•
VAT on rent, donations and education: 0%
Irish Export Performance 2007
Total Value
of Exports:
Miscellaneous
edible products
90%
€3 mn
Coffee, tea
cocoa, spices &
manufactures
Vegetables &
0.4%
fruit
Source: CSO Trade Statistics 2008
Meat
2%
Key Consumer Trends
in the Market
•
Solid growth in retail sector
•
Per capita spending is increasing but is still significantly lower than in Western
Europe.
•
44% of retail sales in Serbia are generated through the food retail sector.
2006
(€)
2007
(€)
2008 (e)
(€)
Total Retail Market (billions)
8.44
11.89
14.58
Grocery Retail Market (billions)
4.98
5.78
6.33
Grocery Retail Spend/capita
461
569
623
Source: IGD Country Presentations, 2008
Retail Grocery Market
•
Grocery Retail Value: €6.33 billion (IGD, 2008)
•
Small grocery stores are the most populous of format with some 67%
share of trade. There are around 30,000 independent stores operating
around the country (IGD, 2008).
•
Discounters are not currently part of the retail format, although Serbians
are price sensitive.
•
The state retains discretionary authority over price changes of basic
goods such as milk, bread and cooking oil.
•
Modern retail developments are centred around Belgrade.
Retail Grocery Market
•
Cash & Carry sector: Tempo (part of Delta Maxi) was the first Cash &
Carry to open in 2004. They have 4 stores and offer up to 50,000
SKU’s. Metro entered in 2005 and have 5 stores. 2007 saw a 37.5%
increase in turnover for Metro.
•
Hypermarkets: account for 5% of market share. Tempo are the biggest
in terms of turnover despite only having 4 stores. But this market is a
high growth one for the Metro Group, as turnover rose 37.5% in 2007.
Other players include MercatorCentre / Rodic Megamarket, Idea, Vero,
and Supermaxi.
•
Supermarkets: account for 17% of market share. The biggest
supermarket chain is Maxi, who acquired the previously largest
supermarket chain - C Market - in 2005. Other big chains include Rodic
supermarket, Si Market, and Interex. Interex plan on using Serbia as
the base for their expansion into South East Europe.
Retail Market Share
Other 70%
Super Vero 1%
Metro 2%
Interex 2%
Univerexport 2%
Mercator & Rodic
6%
Delta 17%
Source: IGD Analysis Country Presentation Serbia 2008
Top Retailers 2007
Retailer
Total Sales
€m
Grocery Sales
€m
% Change
Grocery Sales
2007 v 2006
Grocery Retail
Market Share (%)
No. of
Stores
1,720
1,238
+13.4
16.78
325
Mercator/
Rodic
342
320
-
5.74
59
Metro
187
187
+20.0
-
5
Idea (Konzum)
164
164
+91.0
1.25
41
Simpo
156
156
+34.8
2.70
171
Interex
(Intermarche)
75
75
+56.6
1.30
6
Super Vero
(Veropoulos)
69
69
+11.1
1.19
3
Delta Holding
Source: IGD Analysis, Country Presentation Serbia, 2008
Facts about Serbia
•
Serbia is one of the poorest markets in Central and Eastern Europe,
and this is combined with political uncertainty which further hampers
economic advancement.
•
However, as the country hopes to join the EU this makes it a market
with growth opportunities. Presently the high unemployment and
inflation deters foreign investment.
•
Government corruption is common and the black market is still a major
problem despite new custom and tax laws which reduced illegal
imports.
•
Serbia has a free trade agreement with Russia.
Foodservice Trends
•
•
•
The Serbian diet is traditionally heavy on grilled meat,
sausages, local cheeses and bread. There are a
number of local dishes which highlight this. For
example: Rostilj (as seen in the picture on the right) is
made up of various unseasoned grilled meat and can
include chicken wrapped in bacon and stuffed with
cheese.
Pljeskavica: Traditional pljeskavica was made from a
mixture of lamb or pork and beef, grilled with onions
and served hot on fresh somun with a thick pita
bread. This can be up to 5 times bigger than an
American hamburger!
Bakeries can be found everywhere in Serbia and
cater to the food to go aspect of life. Pekara SUNCE
is one such bakery.
Adapted from Serbia Investment and Export Promotion Agency,, Travel Serbia and Serbia Tourist Guide.
Foodservice
Establishments
•
McDonald’s
– Entered the market in the late 1980’s
– Operates 13 outlets in Serbia
– Offers tailored menu options such as a Cordon Bleu in a burger
bun, Croquettes with meat and cheese.
– The Economist has named McDonald’s as one of the Top 300
companies in 1999, 2000, 2001 and 2002.
– In 2007 they were named as a “super brand”.
Source: McDonald’s website, Serbia,
November 2008.
Foodservice
Establishments
•
•
•
International restaurants are few in number in Serbia and as such there
are few chains. Here are a few of the better known restaurants in
Serbia.
Peking Restaurant
– The oldest Chinese restaurant in Belgrade
– Have won numerous awards over the years. For example the
“Champion of Quality” at the Novi Sad Fair 2003.
Zapata
– The only Mexican restaurant in Belgrade
– Offers traditional Mexican food
– Opened in 2005
Foodservice
Establishments
•
Pizza Hut and KFC
– Operate in the market under the American Restaurant
Company - Poland based.
– KFC opened its first outlet in November 2007.
– Both can be found in Belgrade.
Reasons for targeting Serbia
•
•
Currently seeking membership of EU (though not scheduled to join before
2012)
One of 3 fastest growing retail markets in Central and Eastern Europe,
behind Russia and Bosnia and followed by Turkey and Ukraine (IGD)
Barriers/challenges in supplying
Serbian market
•
•
•
Political unrest (Kosovo/Montenegro)
24% unemployment
Language barrier – adds to difficulty in making contacts and obtaining
market information.
Bord Bia services 2009
•
Bord Bia market mentor (Mr. Kieran Fahy) available for Eastern Europe market and
trade related queries:
•
Services include: Itinerary Development, Category Analysis, Media review and
translation services, Product Price auditing and tracking, Product retrieval, Buyer
networking, Distributor searches
Kieran Fahy
Sarospatak ut 32
1125 Budapest
Hungary
Tel: +36 706 144871
Email: Kieran.fahy@freemail.hu
Also: Liam MacHale
Bord Bia
Wöhler Str. 3-5
60323 Frankfurt, Germany
Tel +49 69 710 423 255
Email: liam.machale@bordbia.ie