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Dairy Products – France

John Gleave, Head Consumer & Creative Team

UK Trade & Investment, British Embassy Paris

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UKTI Services in France

Our services for UK companies

• Market research and Routes to market

• Putting UK companies in touch with

potential partners, distributors,

wholesalers, buyers and contacting them

on your behalf

• Helping companies publicise their

products/services by targeting key

publications

• Advice on trade fairs in France. Meeting

organisation at trade fairs. Networking

events and presentations on-site

• Webinars on culture and business,

tradeshows and specific sectors of activity

• Business opportunities in France (UK

companies need to be registered to the

UKTI website to receive alerts)

• UKTI events: Showcases, presentations

and networking events at the British

Embassy or Ambassador’s Residence

Hire of certain Embassy facilities

(eligibility criteria apply)

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British Embassy Paris

A unique venue in the heart of Paris for product Launches or Networking

Events

The 230m2 terrace - up to 250 people (covered by a marquee from May to October)

The Embassy Foyer – up to 100 people

The Conference Room – seats up to 80

people

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Market Structure

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Annual consumption kg per head of population

Liquid milk Butter Cheese

UK 105.4 7.9 11.6

France 54 3.3 25.9

Germany 53.8 6.2 24.3

USA 73.9 2.5 15.4

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French dairy products industry

Annual sales: € 27.7 billion

250 000 employees

Trade surplus: in 2014 €3.8 billion

2nd largest European milk producer (after Germany)

Major multinationals (Lactalis no 1, Danone no 4)

75% of milk collected used for foodstuffs (milk, cheese, butter, yoghurt

etc)

25% of milk used as ingredient for food, chemical or pharmaceutical

industries (concentrated butter, casein, milk powders)

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Foodstuffs

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Sales 2013 € million % Change 2013/2012

Hard rind cheeses 1 100 3.1

Soft cheeses 710.5 - 1.2

Goats/sheep cheeses 417.4 2.8

Soft rind cheeses 320.2 2.8

Speciality cheeses 309.1 0.3

Cheese in portions 320.1 - 0.8

Blue cheese 177.6 3.0

Total 4 500 2.0

Main cheeses sold through retail

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Distribution structure

Retail

- Fine foods (department stores, “traiteurs”, delis)

- Specialists

- Mass distribution (hyper/supermarkets, filling stations, etc)

Foodservice

- Restaurants (independent & chains)

- Institutional

Industry

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Grocery superstores/CBOs

Intermarché

Leclerc

Super U

Casino/Géant

Cora

Carrefour

Auchan

* Intermarché

* Galec

* Système U

* EMC

* Provera

* Carrefour

* Auchan

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Foodservice Turnover 2014 €50 billion (-2% on 2013)

Commercial chains:

• Hotels : Accor, RHM, Envergure, Choice Group

• Cafeterias : Flunch (Auchan), Casino, Cora, Crescendo

• Traditional foodservice: Groupes Flo, Coste,

• Pizzerias : Pizza Hut, Pizza Paï, Pizza Del Arte

• Steak Houses : Hippopotamus, Buffalo Grill

• Themed Restaurants: Léon de Bruxelles, El Rancho, Amarine, Flam’s, Bert’s, Coste group

• Fast food : Mc Donald France, Quick France, KFC, Class Croute, Brioche Dorée, Paul

• Coffee shops, pubs : Colombus, Interbrew

• Motorway services : Total (Crocade), Shell, Elior (l’Arche), Esso,

• Air and Rail catering: Servair, Relay H, Quai n°1

Hospitals, schools, prisons

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Routes to Market

Direct/via consolidator

Specialist retailers « affineurs » (eg Androuet,

Beaufils, Philippe Olivier)

Distributor (eg France Frais, Metro, Pomona etc)

Wholesaler (Rungis) www.rungisinternational.com

Own sales office/subsidiary

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Philippe Olivier

Retailer in Boulogne sur Mer www.philippeolivier.com

15 outlets in Northern France

Supplies local restaurants

Promotion on farmhouse cheddar and stilton in September

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France Frais group – regional distribution

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Opportunities in France

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Opportunities

Growing taste for dairy products and foods containing

dairy products (pizza, yoghurt drinks etc)

Increasing numbers of older working women – growing

demand for infant formulae

Increasing demand for dairy proteins for specific human

nutrition benefits – from sports performance to old age

nutrition

Drive towards convenience and on-the-go nutrition

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Strengths

An increasingly positive image of British food in France

20% increase in UK cheese exports in 2014

148% increase (£11 million) in UK butter exports in 2014

High-quality production and processing systems. Strong food

safety/hygiene credentials

Some recognition as the “home‟ of Cheddar and other regional cheese

varieties – Stilton, Wenslydale, etc

Industry experience/capability in supplying FMCG cheese and fresh

dairy products to some of the world’s most demanding

retail/foodservice customers

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Weaknesses

Fluctuating exchange rate

Very low levels of awareness as a potential supply source

Limited track record/history of supply

Few relationships with French buyers

Focus on Cheddar and Stilton (consumer ignorance)

Strong French brands

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Trade events

Food Ingredients Europe www.figlobal.com

Salon du Fromage www.salon-fromage.com (also

consumer)

Sandwich & Snack www.sandwichshows.com

SIAL www.sialparis.com

Mondial du Fromage www.mondialdufromage.com

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Trade media

Profession Fromager www.professionfromager.com

Linéaires www.lineaires.com

LSA www.lsa.fr

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What next?

Regional branding?

PR (consumer & trade)

POS material

In-store tastings

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Business Culture

Through the Looking Glass

Britain

> Windows open outwards

> Salt cellar has one hole

> Kms per litre

> Cheese after dessert

> Lost property

> School classes from 1 to 6

France

> Windows open inwards

> Salt cellar has many holes

> Litres per 100 kms

> Cheese before dessert

> Property found

> School classes from 6 to 1

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Business culture

• Learn key words/phrases in French. Professionally

translate product literature into French. Hire an interpreter

for business meetings.

If speaking in French use the formal ‘vous’

Avoid using first names

Show strong respect for hierarchy

Be well prepared. Know your product/service

Quote prices in Euros [€] and use metric measures

Use logical argunemts rather than a “sales” pitch

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Business culture (cont’d)

Take the time for a proper meal in a good restaurant when

welcoming French business contacts

Be patient – don’t expect decisions to be made immediately

Don’t expect instant answers to emails

Treat your French customers as you would your UK ones

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Essentials

Marketing support – pay for professional translation

Payment terms – customers may request extended terms

Currency - open a € account?

Communication with French partner or customer – how?

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Merci and good luck!

For more information, please contact:

John Gleave

Head Consumer & Creative Team

UKTI, British Embassy Paris

Email: john.gleave@fco.gov.uk

Tel: +33 (0)6 08 96 37 98