Recently published research from Business Monitor International, "Germany Food & Drink Report Q1 2013", is now available at Fast Market Research

Boston, MA -- (SBWire) -- 02/05/2013 --The continued risk of a eurozone break-up scenario continues to cloud Germany's economic outlook. This would lead to an immediate collapse in fixed investment and hit external demand for German exports very hard. Even with this scenario remaining outside of our baseline view, uncertainty over the ongoing eurozone crisis will keep business and consumer confidence levels subdued, thus hurting investment. Certainly, German consumption will not come to the rescue of periphery eurozone states over the next few years, as households remain cautious and the government keeps focused on fiscal consolidation.

Headline Industry Data (local currency)

- 2013 per capita food consumption = +3.3%; forecast to 2017 = +16.0%.
- 2013 alcoholic drink sales = +1.0%; forecast to 2017 = +4.5%.
- 2013 soft drink sales = +3.8%; forecast to 2017 = +16.6%.
- 2013 mass grocery retail sales = +6.0%; forecast to 2017 = +28.9%.

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Key Company Trends

DMK Aims to Expand Through Sunval Acquisition: In summer 2012 German dairy giant DMK acquired organic baby food manufacturer Sunval from German private equity firm BWK for an undisclosed amount. Sunval's sales increased about 36% year-on-year to EUR37mn (US$45.6mn) in 2011. Sunval is currently only manufactured and sold in Germany and is the largest producer of organic private-label baby food, according to DMK, supplying both specialist retailers and a large number of drug store chains. DMK is now looking to grow the Sunval brand in Europe and other international markets.

Ahold Launches in Germany with C-store Concept: Dutch retail giant Ahold opened its first store in Germany in September 2012, a c-store under the AH To Go banner in Aachen. A second shop is to open in Essen later in the year. The move into Germany is part of Albert Heijn's strategy of extending its overseas operations having already opened six Albert Heijn supermarkets in Belgium. The retailer aims to have 150 AH To Go stores in the Netherlands, Belgium and Germany by 2017. Although Ahold acknowledges the difficulties of trying to launch in Germany with larger store formats which are already well established, the retailer strongly believes that its convenience store concept focusing on 'food to go' has not been seen in Germany to date and so the company is bringing something new to the market.

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