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
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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
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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
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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
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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
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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: amsterdam@bordbia.ie
Web: www.irishbeef.nl
Growing the success of Irish food & horticulture