Food Processing Ingredients

An Expert's View about Food , Beverages and Tobacco in Spain

Posted on: 12 Jan 2012

The food processing sector generates 16 percent of Spain’s total industrial production and is weathering the crisis compared to other sectors.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report - public distribution Date: 12/21/2011 GAIN Report Number: SP1127 Post: Madrid Spain Food Processing Ingredients 2011 Approved By: Robert Hanson, Agricultural Attaché Prepared By: Arantxa Medina, Agricultural Assistant Report Highlights: Spain’s economy continues to struggle, with high unemployment (over 20 percent) and low GDP growth. The economic recovery might still be some years away and consumer confidence and domestic demand are at low levels. In this gloomy scenario, the dynamic Spanish market still offers opportunities for U.S. food ingredients suppliers, and market niches exist for consumer-ready food products. The food processing sector generates 16 percent of Spain’s total industrial production and is weathering the crisis compared to other sectors. U.S. ingredient exporters not currently in the Spanish market may find trade opportunities by attending the major food show Alimentaria in 2012 in Barcelona, Spain. INDEX SECTION I MARKET SUMMARY Economic Trends SECTION II ROAD MAP FOR ENTRY A. Entry Strategy B. Market Structure C. Company Profiles D. Sector Trends SECTION III COMPETITION SECTION IV BEST PRODUCT PROSPECTS SECTION V. POST CONTACT AND FURTHER INFORMATION ANNEX 1. OTHER CONTACTS OF INTEREST Food Processing Ingredients 2011 2 SECTION I. MARKET SUMMARY Economic Trends AGRICULTURAL PRODUCTS IMPORTS ($ Million) (1) 2007 2008 2009 2010 2011* 2012** Total Agricultural, Fish and Forestry Products 36,926 40,500 33,005 33,999 38,000 40,000 Total U.S. Agricultural, Fish and Forestry Products 1,704 1,882 951 1,318 1,700 1,500 Total Food Products 26,157 30,522 25,378 25,845 27,000 30,000 Total U.S. Food Products 1,230 1,576 755 1,112 1,300 1,100 Total Fish and Seafood Products 7,037 7,042 5,873 6,378 7,000 7,500 Total U.S. Fish and Seafood Products 136 127 103 113 120 125 (1) Global Trade Atlas (GTA) *Estimate ** Forecast The Spanish food processing sector modernized and expanded significantly over the last couple of decades. With integration into the European Union in 1986, Spain’s food processing sector began a profound modernization in order to adapt to new EU requirements. Spain now has some of the most competitive food processing industries in Europe, which makes this sector an important target for U.S. food ingredient exporters. According to Euromonitor, in spite of the very difficult economic context, several sectors were able to maintain a positive growth. For example, sales of frozen processed food and soup increased by nearly 4 and 3 percent, respectively, in volume terms in 2010, driven in large part by value-for-money considerations in the case of the former and convenience features in the case of the latter. Ready meals also posted positive, albeit slower, growth in 2010 benefiting from their convenience and ease of use of these products, as a growing number of food preparers, especially in restaurants that cater to the afternoon work crowd prefer to save time on meal preparation. The volume sales of ready meals increased by 1 percent in 2010. In addition to the negative effects on spending of the current recession, sweet and savory snacks and sugar confectionery face an additional challenge due to the growing interest in dieting, fitness and health issues among Spanish consumers. Furthermore, the dramatic increase in recent years in childhood obesity in Spain, which affects close to 30 percent of Spain’s youth, has meant that parents are keeping a closer watch on the snacking habits of their children. Not surprisingly, sales in both categories were weak in 2010, falling by 1 and 2 percent in total volume terms. The food processing sector in Spain is modern, paying special attention to the quality, safety, and traceability of the food products it produces. This sector generates 16 percent of Spain’s total industrial production, accounting for eight percent of the national gross domestic product and providing 445,475 Food Processing Ingredients 2011 3 jobs, representing 17 percent of total industrial workforce. The food industry in Spain comprises mostly small companies— in 2010, 96 percent of the 30,261 food processors were small or medium-size companies, employing 50 people or less. The industry as a whole produced an estimated $109.89 billion (€81.4 billion) in product in 2010, throwing a positive trade balance of $1.03 billion (€764 million). Table 1. The Food Sector in Spain Year 2010 Total Production (Million €) 81,369 Total No. Of Food Processors 30,261 Labor Force 445,475 Total Exports (Million €) 16,776 Total Imports (Million €) 16,012 Source: FIAB – Spanish Food Industry Federation Current market developments affecting the food processing sector include: Changes in demographics and working patterns are shifting demand to more convenient and ready-to-eat foods. Busier lifestyles increase the demand for fast food, convenience products and ready-made meals. New, demanding labeling and traceability requirements are forcing consolidation of all levels of the food chain, from farm to fork. Consumers have become more health conscious: problems concerning food safety are widely publicized and usually receive immediate attention from government agencies. Although consumers are seeking healthier food choices, organic processed food has made limited inroads into the Spanish market. Table 2. Spain Total Food Consumption Expenditures 2008 2009 2010 2008 2009 2010 Quantity (million kg/l/unit) Value (million €) Home 29,109 30,843 30,491 66,221 68,665 67,086 Hotel & Restaurants 8,215 7,438 7,197 21,550 19,342 18,505 Institutions 1,319 1,267 1,230 2,672 2,599 2,471 Total 38,643 39,548 38,918 90,443 90,596 88,062 Source: Ministry of the Environment and Rural and Marine Affairs (MARM) www.marm.es Food Processing Ingredients 2011 4 Table 3. Advantages and Challenges for US Products in the Spanish Market Advantages Challenges The food processing sector Food imported from third countries, including the U.S., must continues to demand food comply with EU food law, which varies considerably from ingredients. U.S. regulation and practice. Food products in the market are Competition from neighboring EU countries, where tastes becoming more diversified. and traditional products may be well known. Good network of agents and EU labeling, traceability, and packaging laws and a importers to help get product into reluctance to purchase products containing genetically the market. modified ingredients. Modern food distribution system. U.S. exports face higher transportation costs and difficulties in shipping mixed or smaller container loads. Consumers are more health High marketing costs (advertising, discounts, etc.) are conscious, and tastes are becoming necessary. more diversified. Favorable dollar exchange rate Sanitary issues and restrictions at EU level have been makes U.S. imports more limiting imports of products such as poultry and beef. competitive. SECTION II. ROAD MAP FOR ENTRY Food Processing Ingredients 2011 5 A. Entry Strategy Success in introducing products in the Spanish market requires local representation and personal contact. A local representative can provide up-to-date market intelligence, guidance on business practices and trade related laws, sales contact with existing and potential buyers, and market development expertise. The Office of Agricultural Affairs in Madrid maintains listings of potential importers and develops sector-specific information to help you introduce your product in the mentioned market. Spain generally applies EU rules and regulations. However, there are subtleties that you should learn about if you are thinking of exporting to Spain. For more information, we invite potential U.S. exporters to contact us for additional, unpublished sector-specific information. In general terms, U.S. exporters already exporting to other EU member states will likely be meeting most of the requirements for exporting to Spain. The U.S. exporter needs to make contact with a Spanish importer and/or distributor for his product. Typically, food processors buy their food ingredients from importers or wholesalers. Some large companies buy directly from foreign suppliers. Around 20 percent of the Spanish food production is sold to export markets, mainly to the EU. Some food-processing companies concentrate on the domestic or on export markets, but most of them will have mixed customers. Companies supplying mainly the domestic market frequently market their products directly and have their own logistics infrastructure. However, their customers will vary from wholesalers to buying groups and retailers. Companies producing for the export market may have their own marketing office overseas, local agents or may work with local importers. U.S. processed food exporters now face even greater challenges, because of the new EC labeling and traceability regulations. Any product that contains genetically modified ingredients must be labeled so that the consumer can distinguish the product. Since consumers are not familiar with genetically modified foods, food processors, retailers and the HRI sector are reluctant to purchase these processed products or food ingredients for processing. The following documents are required for ocean or air cargo shipments of foodstuffs to Spain: Bill of Lading and/or Airway Bill Commercial Invoice Phytosanitary Certificate and/or Health Certificate when applicable If your product is or contains plant or animal products, it will require a phytosanitary or health certificate issued by the competent U.S. authority. Also, if you are exporting animal products, your production plant has to be approved to export into the EU. Import Certificate Most food products require an Import Certificate issued by the competent Spanish authority. However, Food Processing Ingredients 2011 6 the Import Certificate is obtained by the Spanish importer and/or the agent involved in the business and is intended for tariff classification purposes. Trade Shows Trade shows in Spain offer excellent opportunities for U.S. exporters to make contact with potential clients or business partners from Spain, Portugal and other countries from the EU and other continents. The most important trade shows related to the food processing sector are: U.S. Exporter Alimentaria - International Food and Beverages Exhibition Alimentaria is the most important International Food and Beverages Exhibition in Spain. With 4,000 leading food and beverage manufacturers and distributors, and 140,000 professional buyers from five continents, the exhibition will serve again as an international economic stage for the food and beverage industry. Alimentaria takes place bi-annually in the month of March. The next edition will be 26-29 March 2012. For more details: http://www.alimentaria-bcn.com/en/Alimentaria B. Market Structure U.S. Rep for Europe Importer, Broker, Agent, Wholesaler, Distributor Food Processing Sector C. Company Profiles The Spanish food processing sector has a wide range of food processing sectors, many of them importing food ingredients. The Spanish food industry consists of 30,261 companies. Please see below how these companies are distributed among the main sectors: Table 4. Food Processing Industry - Number of industries by sector 2008 % 2009 % 2010 % Food Processing Ingredients 2011 7 Meat & Meat Products 4,437 14 4,433 14 4,383 14 Fishery Products 782 3 771 3 733 2 Fruits & Vegetables 1,395 4 1,373 4 1,417 5 Dairy Products 1,627 5 1,596 5 1,587 5 Milling Industry 665 2 621 2 616 2 Beverages 5,186 17 5,134 17 5,097 17 Fats & Oils 1,598 5 1,575 5 1,602 5 Animal Feed 909 3 903 3 917 3 Other Foods 14,507 47 14,244 46 13,909 46 TOTAL 31,106 100 30,650 100 30,261 100 Source: FIAB Exchange Rate for October 2011: 1 € = $ 1.35 Main Companies Operating in the Food Processing Industry – 2011 RED MEATS AND POULTRY PRODUCTS RED MEATS Company Sales End-User Procurement 2010 Channels Channels (Million $) Campofrío Alimentación, S.A.* Retail & HRI Local products/ 2,474 Imports Coorporación Alimentaria Guissona, Retail & HRI Local products/ S.A.* 1,555 Imports ElPozo Alimentación, S.A.* Retail & HRI Local products/ 899 Imports Casa Tarradellas, S.A.* Retail & HRI Local products/ 825 Imports Martínez Loriente, S.A.* Retail & HRI Local products/ 639 Imports INCARLOPSA* Retail & HRI Local products/ 527 Imports Jorge, S.L.* Retail & HRI Local products/ 439 Imports COVAP* Retail & HRI Local products/ 381 Imports Food Processing Ingredients 2011 8 Carniques de Juia, S.A. Retail & HRI Local products/ 302 Imports Frigoríficos Costa Brava, S.A. Retail & HRI Local products/ 292 Imports POULTRY PRODUCTS Coorporación Alimentaria Guissona, Retail & HRI Local products/ 1,556 S.A.* Imports Cooperativa Orensanas (COREN)* Retail & HRI Local products/ 1,284 Imports Grupo Sada P.A., S.A.* Retail & HRI Local products/ 766 Imports Uve, S.A. *(Grupo) Retail & HRI Local products/ 258 Imports Pavo y Derivados, S.A. (Grupo Retail & HRI Local products/ 216 Padesa) Imports Procavi, S.L. Retail & HRI Local products/ 135 Imports Aragonesa de Piensos, S.A. Retail & HRI Local products/ (ARPISA) 121 * Imports An Avicola Melida, S.A. Retail & HRI Local products/ 119 Imports Juan José Sola Ricca, S.A. * Retail & HRI Local products/ 92 Imports Coop. Avícola y Ganadera de Burgos* Retail & HRI Local products/ 86 Imports Source: Alimarket CANNED FISH Company Sales 2010 End-User Channels Procurement Channels (Million $) Luis Calvo Sanz, S.A. (Grupo)* 664 Retail & HRI Local products/ Imports Grupo Jealsa Rianxeira* 568 Retail & HRI Local products/ Imports Frinsa del Noroeste, S.A. 425 Retail & HRI Local products/ Imports Conservas Garavilla, S.A.* 324 Retail & HRI Local products/ Imports Ricardo Fuentes e Hijo, S.A.* 223 Retail & HRI Local products/ Imports Ubago Group Mare, S.L.* 144 Retail & HRI Local products/ Imports Compre y Compare, S.A.* 111 Retail & HRI Local products/ Imports Food Processing Ingredients 2011 9 Hijos de Carlos Albo, S.L.* 108 Retail & HRI Local products/ Imports Salica, Industria Alimentaria, S.A. 105 Retail & HRI Local products/ Imports Ignacio González Montes, S.A. 74 Retail & HRI Local products/ Imports Source: Alimarket DAIRY PRODUCTS Company Sales End-User Procurement 2010 Channels Channels (Million $) Grupo Lactalis Iberia* 1,622 Danone, S.A.* 1,487 Retail & HRI Local products/ Imports Grupo Leche Pascual, S.A.* 996 Retail & HRI Local products/ Imports Corportativa Alimentaria Peñasanta, S.A. 1,020 Retail & HRI Local products/ (CAPSA)* Imports Unilever Foods España, S.A.* 880 Retail & HRI Local products/ Imports Kraft Foods* 811 Retail & HRI Local products/ Imports Grupo TGT* 730 Retail & HRI Local products/ Imports Industrias Lácteas Asturianas, S.A. 654 Retail & HRI Local products/ (ILAS) Imports Puleva Food, S.L. 608 Retail & HRI Local products/ Imports Lactiber Corporación Alimentaria, S.L. 527 Retail & HRI Local products/ Imports Source: Alimarket PREPARED FRUITS & VEGETABLES Company Sales End-User Procurement 2010 Channels Channels (Million Food Processing Ingredients 2011 10 $) Hero España, S.A.* 288 Retail & HRI Local products/ Imports Grupo Angel Camacho, S.L.* 225 Retail & HRI Local products/ Imports Conservas El Cidacos, S.A.* 214 Retail & HRI Local products/ Imports Heinz Ibérica, S.A. 181 Retail & HRI Local products/ Imports Coop. Alimentos de Mediterráneo* 173 Retail & HRI Local products/ Imports Juver Alimentación, S.L. 162 Retail & HRI Local products/ Imports Carnes y Conservas Españolas, S.A.* 144 Retail & HRI Local products/ Imports Grupo Riberebro* 144 Retail & HRI Local products/ Imports Industrias Alimentarias de Navarra, 128 Retail & HRI Local products/ S.A.U.* Imports Compre y Compare, S.A.* 111 Retail & HRI Local products/ Imports Source: Alimarket CONFECTIONARY (CHOCOLATE AND SUGAR) PRODUCTS Company Sales End-User Procurement 2010 Channels Channels (Million $) Kraft Foods * 810 Retail & HRI Local products/ Imports Nutrexpa, S.L.* 509 Retail & HRI Local products/ Imports Kraft Foods España, S.L. 250 Retail & HRI Local products/ (Confectionary Div.)* Imports Chupa Chups, S.A.U. 155 Retail & HRI Local products/ Imports Food Processing Ingredients 2011 11 Wrigley Co., S.L. 154 Retail & HRI Local products/ Imports Vidal Golosinas, S.A. 115 Retail & HRI Local products/ Imports Haribo España, S.A. 108 Retail & HRI Local products/ Imports Cantalou, S.A.* 101 Retail & HRI Local products/ Imports Sánchez Cano, S.A. 90 Retail & HRI Local products/ Imports Lacasa, S.A.* 87 Retail & HRI Local products/ Imports Source: Alimarket BAKED GOODS Company Sales 2010 End-Use Procurement (Million Channels Channels $) Grupo Panrico* 715 Retail & HRI Local products/ Imports Grupo Siro* 554 Retail & HRI Local products/ Imports Nutrexpa, S.L.* 509 Retail & HRI Local products/ Imports Grupo Bimbo (Sara Lee Bakery 427 Retail & HRI Local products/ Group)* Imports Dulcesa, S.L.* 115 Retail & HRI Local products/ Imports Juan y Juan, S.A.* 108 Retail & HRI Local products/ Imports Brioche Pasquier Recondo, S.L.* 77 Retail & HRI Local products/ Imports Codan, S.A. 34 Retail & HRI Local products/ Imports El Pequeño Molino, S.A.* 26 Retail & HRI Local products/ Imports El Quinteriano, S.A. 22 Retail & HRI Local products/ Imports Source: Alimarket SNACK FOODS: SNACKS AND NUTS Food Processing Ingredients 2011 12 Company Sales 2010 End-Use Procurement (Million Channels Channels $) Pepsico Foods, A.I.E.* 568 Retail & HRI Local products/ Imports Grupo Siro* 554 Retail & HRI Local products/ Imports Grupo Bimbo (Sara Lee Bakery 428 Retail & HRI Local products/ Group)* Imports Borges, S.A. 342 Retail & HRI Local products/ Imports Importaco, S.A. (Grupo) 277 Retail & HRI Local products/ Imports Frit Ravich, S.L. 165 Retail & HRI Local products/ Imports Grefusa, S.L.* 115 Retail & HRI Local products/ Imports Almendras Llopis, S.A. 92 Retail & HRI Local products/ Imports Emicela, S.A.* 77 Retail & HRI Local products/ Imports Prolesa Promotora de Levante, S.A. 74 Retail & HRI Local products/ Imports Source: Alimarket DRY GOODS: RICE, PASTA AND PULSES RICE Company Sales End-Use Procurement 2010 Channels Channels (Million $) Deoleo, S.A.* 1,729 Retail & HRI Local products/ Imports Ebro Foods, S.A. – Rice Division 1,096 Retail & HRI Local products/ Imports Maicerias Españolas, S.A. (DACSA)* 285 Retail & HRI Local products/ Imports Alimentos Naturales, S.A.* 66 Retail & HRI Local products/ Imports Mars España Inc. y Cia Foods, SRC* 60 Retail & HRI Local products/ Imports Arrocerias Pons, S.A. 51 Retail & HRI Local products Coop. Camara Arrossera del Montsia I 42 Retail & HRI Local products Seccio de Credit, SCCL Food Processing Ingredients 2011 13 Arrossaires del Delta de L’Ebre, SCCL 39 Retail & HRI Local products Legumbres Luengo, S.A.* 38 Retail & HRI Local products/ Imports Arroces y Cereales, S.A. (ARCESA) 38 Retail & HRI Local products/ Imports PASTA Nestle España, S.A.* 1,663 Retail & HRI Local products/ Imports Gallina Blanca, S.A.U.* 884 Retail & HRI Local products/ Imports Unilever España, S.A.* 880 Retail & HRI Local products/ Imports Grupo Siro 554 Retail & HRI Local products/ Imports Comercial Gallo, S.A.* 257 Retail & HRI Local products/ Imports Pastas Alimenticias Romero, S.A. 43 Retail & HRI Local products Oromás, S.A. 40 Retail & HRI Local products Rana Hispania, S.A.* 30 Retail & HRI Local products Barilla España, S.A. 13 Retail & HRI Local products/ Imports Andrés Megías Mendoza, S.A.* 11 Retail & HRI Local products/ Imports PULSES Hermanos Ayala Sousa, S.L.* 272 Retail & HRI Local products/ Imports Conservas El Cidacos, S.A.* 215 Retail & HRI Local products/ Imports Industrias Alimentarias de Navarra, S.A.* 129 Retail & HRI Local products/ Imports Conservas Terramar, S.A.* 89 Retail & HRI Local products/ Imports Alimentos Naturales, S.A.* 66 Retail & HRI Local products Selección de Productos Leoneses, S.A.* 60 Retail & HRI Local products Legumbres Luengo, S.A.* 38 Retail & HRI Local products Ferrer Segarra, S.A.* 25 Retail & HRI Local products/ Imports Lozano, S.A.* 24 Retail & HRI Local products/ Imports Taboada Grupo Alimentario, S.L.* 23 Retail & HRI Local products/ Imports Source: Alimarket Food Processing Ingredients 2011 14 CONDIMENTS AND SEASONINGS Company Sales 2010 End-Use Channels Procurement Channels (Million $) Nutrexpa, S.L.* 510 Retail & HRI Local products/ Imports Aceites Borges Pont, S.A. * 304 Retail & HRI Local products/ Imports Bolton Cile España, S.A.* 112 Retail & HRI Local products/ Imports Jesús Navarro, S.A.* 70 Retail & HRI Local products/ Imports Conservas Dani, S.A.* 69 Retail & HRI Local products/ Imports Coop. Coato 54 Retail & HRI Local products/ Imports Unión Salinera de España, S.A. 49 Retail & HRI Local products/ Imports Ramón Sabater, S.A. 45 Retail & HRI Local products/ Imports Grupo Ybarra Alimentación, S.L.* 40 Retail & HRI Local products/ Imports Pimursa, S.L.* 26 Retail & HRI Local products/ Imports Source: Alimarket SAUCES Company Sales End-Use Procurement 2010 Channels Channels (Million $) Deoleo, S.A.* 1,726 Retail & HRI Local products/ Imports Nestle España, S.A.* 1,660 Retail & HRI Local products/ Imports Unilever España, S.A.* 879 Retail & HRI Local products/ Imports Kraft Foods* 810 Retail & HRI Local products/ Imports Aceites del Sur-Coosur, S.A.* 486 Retail & HRI Local products/ Imports Hero España, S.A.* 288 Retail & HRI Local products/ Imports Heinz Iberica, S.A.* 181 Retail & HRI Local products/ Imports Carnes y Conservas Españolas, S.A.* 162 Retail & HRI Local products/ Imports Industrias Alimentarias de Navarra, 129 Retail & HRI Local products/ S.A. * Imports Bolton Cile España, S.A.* 112 Retail & HRI Local products/ Imports Source: Alimarket Food Processing Ingredients 2011 15 SPECIALIZED FOOD INGREDIENTS Company Sales End-Use Channels Procurement 2010 Channels (Million $) Cargill España (Grupo)* 1,620 Food Manufacturers & Local products/ Producers Imports Viscofan, S.A. 855 Food Manufacturers & Local products/ Producers Imports Quimidroga, S.A.* 682 Food Manufacturers & Local products/ Producers Imports Lipidos Santiga, S.A. 405 Food Manufacturers & Local products/ Producers Imports Cognis Iberia, S.A.U.* 270 Food Manufacturers & Local products/ Producers Imports Indukern, S.A. 267 Food Manufacturers & Local products/ Producers Imports Brenntag Quimica, S.A.* 256 Food Manufacturers & Local products/ Producers Imports Roquette Laisa España, 216 Food Manufacturers & Local products/ S.A. Producers Imports Iff Benicarlo, S.A.* 210 Food Manufacturers & Local products/ Producers Imports Grupo Tolsa* 203 Food Manufacturers & Local products/ Producers Imports Source: Alimarket BEVERAGES: Alcoholic and Non-Alcoholic Company Sales 2010 End-Use Channels Procurement Channels (Million $) Coca-Cola España 3,968 Retail & HRI Local products/ Imports Grupo Mahou-San Miguel 1,538 Retail & HRI Local products/ Imports Heineken España 1,448 Retail & HRI Local products/ Imports S.A. Damm (Grupo) 1,066 Retail & HRI Local products/ Imports J. García Carrión, S.A. 877 Retail & HRI Local products/ Imports Pernord Ricard España 559 Retail & HRI Local products/ Imports Pepsico Bebidas Iberia 540 Retail & HRI Local products/ Imports Diageo España, S.A. 521 Retail & HRI Local products/ Imports Maxxium España, S.L. 499 Retail & HRI Local products/ Imports Schweppes, S.A. 466 Retail & HRI Local products/ Imports Source: Alimarket * Data includes activities in other sectors. D. Sector Trends Food Processing Ingredients 2011 16 According to ―Invest in Spain‖ (www.investinspain.org), a public owned corporation dependent on the Spanish Ministry of Industry, Tourism and Commerce, in 2009 Spain was the seventh largest recipient of foreign direct investment in the world. Spain’s appeal for foreign investors lies not only in its domestic market, but in the possibility of operating in third country markets thanks to its geostrategic position: it belongs to the European Union and is the gateway to North Africa and Latin America. Agricultural, Fish and Forest Products imports from the United States have recovered since 2009 when they considerably decreased, partly due to the strong Euro and the dependence of Spain to import certain bulk commodities (grains, almonds). Many U.S. companies are present in Spain and the major U.S. companies (either through joint ventures, acquisitions, etc.) in the Spanish Food and Beverage Industry are: (in alphabetical order) o Bunge: Fats and Oils o Cargill: Fats, Oils, additives, pet food o Coca Cola: Beverages, snacks o Heinz Iberica: Prepared vegetables o Kraft Foods: Cheese o Mars España: Chocolates, confectionary o Pepsico: Beverages, juices, snacks o Sara Lee Bakery Group: Confectionary, baked goods o Smithfield: Meats Major consumption trends: One of the developments that drives changing consumer buying habits is the on-going trend towards smaller households. Single and two person households are growing and households of 4 or more persons declining. Not only does this trend demand smaller portions, industry contacts also claim that consumers tend to buy more expensive, value-added products or meal components when cooking for only one or two persons. Private labels are gaining market share, both due to the economic difficulties and the aggressive promotions carried out by retailers. Within the trend towards staying active, fit and healthy, consumers are increasingly buying healthy and functional foods. In line with healthy food, the organic food market, still seen as a small niche market, is now moving into the mainstream of the food industry. Apart from the shops that specialize on this type of products, they can also be sold in many supermarkets and hypermarkets. SECTION III. COMPETITION Food Processing Ingredients 2011 17 Other EU member states are the main competitors of U.S. products intended for the food processing industry. The lack of trade tariffs, trade barriers and other restrictions inside the European Union make European goods more attractive and competitive, particularly to price sensitive goods. Table 6. Competitive Situation Facing U.S. Suppliers from Domestically Produces Goods and Imported Goods Product Major Supply Strengths of Key Supply Advantages and Disadvantages Category Sources in Countries of Local Suppliers (thousand 2010 metric tons; (in value) million USD) Frozen Fish 1. Portugal- Other major suppliers offer high Large competition from local Imports: 337 9% quality fish products at suppliers and producers. Value:$770.6 2. competitive prices. Netherlands- 9% 3. Chile-7% 5. USA-5% Almonds 1.USA-90% Competition of other supply Spain produces almonds, mostly Imports:60.2 2.Germany- countries is limited, as Spanish used roasted as a snack, due to its Value:$223.4 2% demand for almonds is very high organoleptic properties. U.S. 3.Australia-1% and production in other EU almonds are used in the confection countries is not enough to satisfy industry, mainly for Christmas demand. traditional nougat. Walnuts 1.USA-62% France is a traditional supplier of Spain has a significant production Imports:23.0 2.France-21% walnuts. Chile is increasing its of high quality walnuts. Value:$111.7 3.Chile-8% presence in the Spanish market Pistachios 1.Germany- Germany is the main entry point Pistachio production in Spain is Imports:9.8 35% for U.S. and Iranian pistachios. very limited. Value:$77.6 2.Iran-28% Pistachios are then re-exported 3.USA-23% to other EU countries. Sunflower 1.France-46% Growing competition from Spain production of sunflower seeds 2.USA-19% China, Argentina and Israel for seeds for confectionary is not Imports:242 3.China- 10% confectionary. sufficient to meet demand. Value:$169.7 Possible implementation of lower cadmium levels. Pulses 1.Argentina- Strong competition from Spain is a traditional consumer of Imports:308 23% Argentina, who largely increased pulses and its local production is Value:$211.0 2.USA-18% their presence in recent years and not sufficient to fulfill internal 3.Mexico-17% Canada, a traditional supplier to demand. Imports recovered in 4.Canada-11% Spain. 2010 compared to 2009. Food Processing Ingredients 2011 18 SECTION IV. BEST PRODUCT PROSPECTS Table 7. Products Present in the Spanish Market Which Have Good Sales Potential HS Product 2010 2010 5-Year Key Constraints Attraction for Code Category Market Spanish Average U.S. Exporters Size Imports Import (Volume) ($ Growth Million) (% Food Processing Ingredients 2011 19 Volume) 0303 Frozen Fish 132 TMT $769 6% Heavy competition Good reputation and from other EU reliability of U.S. Member States and producers. domestic suppliers. High per capita Spanish bad consumption of fish. economic situation. 0304 Fish Fillets 584 TMT $731 3% Heavy competition Good reputation and and Other Fish from other EU reliability of U.S. Meat (Minced, Member States and producers. Fresh, Chilled domestic suppliers. or Frozen) High per capita Spanish bad consumption of fish. economic situation. 080212 Almonds 71 TMT $223 4% Aflatoxin issues. Domestic consumption of tree nuts is Spanish economic increasing due to their situation. utilization in the confection industry. Signs of recovery of US exports of almonds to Spain in 2011. 080231 Walnuts 34 TMT $111 4% Competition from US walnuts, both 080232 other EU countries. shelled and in-shell, are making inroads in Spain due to increased awareness of the health benefits of tree nuts. 080250 Pistachios 9 TMT $77 -5% Competition from Domestic consumption Iran and EU of tree nuts continues importers, such as to increase. U.S. Germany, who re- pistachios have a export this product higher quality image to Spain. than Iranian, the major competitor. Despite the total negative growth figure, imports from the US have increased in the last 5 years (average growth for the US was 14 percent). 120100 Soybeans 3,119 TM $1,385 11% Price sensitivity and Spain is a net importer volatility. of grains and oilseeds for feed consumption. Competition from Brazil. Food Processing Ingredients 2011 20 SECTION V. POST CONTACT AND FURTHER INFORMATION If you have any questions or comments regarding this report or need assistance exporting to Spain, please contact the Office of Agricultural Affairs in Madrid at the following address: Local Address: Foreign Agricultural Service Office of Agricultural Affairs U.S. Embassy Madrid Serrano, 75 – Box 2000 28006 Madrid Spain U.S. Mailing Address: Office of Agricultural Affairs U.S. Embassy Madrid PSC 61, Box 2000 APO, AE 09642 Tel.: +34-91-587 2555 Fax: +34-91-587 2556 Website: http://madrid.usembassy.gov/about-us/fas.html Email: AgMadrid@fas.usda.gov Importer listings are available from the Agricultural Affairs Office for use by U.S. exporters of U.S. food and beverage products. Recent reports of interests to U.S. exporters interested in the Spanish market include: Report Number Title Date Released SP1124 The Exporter Guide 11/21/2011 SP1021 The Retail Food Sector 12/21/2010 SP8003 The HRI Sector 02/19/2008 These reports can be accessed through the FAS website http://www.fas.usda.gov/scriptsw/attacherep/default.asp Food Processing Ingredients 2011 21 ANNEX 1. OTHER CONTACTS OF INTEREST Trade Associations FIAB- Federación de Industrias de Alimentación y Bebidas (Spanish Federation of Food and Beverage Industries) http://www.fiab.es fiab@fiab.es FEHR – Federación Española de Hostelería (Spanish Federation for HRI Sector) http://www.fehr.es fehr@fehr.es ASEDAS – Asociación Española de Distribuidores, Autoservicios y Supermercados (Spanish Association for Distributors and Supermarkets) http://www.asedas.es info@asedas.org ANGED – Asociación Nacional de Grandes y Medianas Empresas de Distribución (National Association of Midsize and Large Distributors) http://www.anged.es anged@anged.es Government Agencies Subdirección General de Sanidad Exterior Ministerio de Sanidad, Política Social e Igualdad (Ministry of Health, Social Policy and Equality) (Responsible for: Imported Foodstuffs, Contaminants and Compound Residues, Health Certification, Port Inspection and EU Alerts) http://www.mspsi.gob.es saniext@msc.es Food Processing Ingredients 2011 22 Agencia Española de Seguridad Alimentaria y Nutrición (AESAN) (Spanish Food Safety and Nutrition Agency) http://www.aesan.msc.es informacionaesan@mspsi.es Dirección General de Industria y Mercados Alimentarios Ministerio de Medio Ambiente, Medio Rural y Marino (Ministry of the Environment, and Rural and Marine Affairs) http://www.marm.es informac@marm.es For more information on exporting U.S. agricultural products to other countries, please visit the Foreign Agricultural Service home page at www.fas.usda.gov Food Processing Ingredients 2011 23
Posted: 12 January 2012

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