The American food market: The American food market Presentation of French positioning within the marketplace


French food industry: leader in Europe: French food industry: leader in Europe France: 1st European food producer France: 2d worldwide food producer behind the US France: 1st worldwide processed food exporter Food sector: leading French industrial sector ahead of the automobile and electronic industries France 18.4% Italy 14.9% Spain 10.7% Germany 17.6% Netherlands 6.3% UK 15.6% Other EU 15 16.5% European food production in 2004 in value 626 billion Euros


French food industryStrategic and very diversified sector: French food industry Strategic and very diversified sector 2005 turnover: 140 billion Euros (+2% vs. 2004) Exports: 28.7 billion Euros (+2%) 420.000 employees 10.841 companies of which 3.200 have more than 20 employees 3.156 'Iso 9000' certified sites 160 'Iso 14001' certified sites Key 2005 statistics of the French food industry Meat 24.0% Fish 2.3% European food production in 2004 in value 626 billion Euros Fr/Veg 5.0% Grocery 21.3% Dairy 19.4% Oil/ oil-based 2.8% Animal feed 6.7% Grains 3.6% Beverages 14.8%


Slide4: Flattering statistics for French food and agricultural sales Food sales = 10,5% of total French exports to the US Leading surplus sector for French exports within the US: 1,5 billion Euros (or the total surplus of consumer goods, automobile and energy products) French food sales: 2,1 billions Euros in 2005 6% of French food exports 7th client of France France: 4th supplier (4,2% of share) behind Canada, Mexico and China France: leading European supplier with 20,5% share


Wine and spirits: leading sector within French food export to the US: Wine and spirits: leading sector within French food export to the US Food sales to US: 2,1 billion USD in 2005 United States: 7th client of France. 1st client out of Europe France: leading European supplier of the United States with 20.5% of EU exports France: 4th supplier of the US behind Canada, Mexico and China Other 13.0% Wines 38.9% French food export to US in 2005 in value Cheese: 5.3% of French food sales in the US : Strategic sector with a positive image and sales trend Spirits 35.6% Grocery 5.8% Dairy 5.6%


Slide6: Lack of visibility despite enormous potential France 20,5% France: leading European food supplier Of the US… (Import market: 11 billion Euros) UK 12,3% Italy 17,0% Germany 7,8% Netherlands 17,9% Spain 7,2% Other UE 17,3% France 9,0% Netherlands 17,8% Italy 21,3% UK 10,4% Germany 10,2% Spain 12,4% Other UE 11,2% Denmark 7,7% …but 6th without wines and spirits (Market: 5,1 billion Euros)


Main French grocery products exports: Main French grocery products exports Main French grocery export in volume 2005 French grocery product exports (% on volumes) (*): 7 months 2006


2006: an excellent year for French food exports: 2006: an excellent year for French food exports French food exports 6 months 2006 (% on value)


French cheese productionTradition and modernity: French cheese production Tradition and modernity French dairy industry: 24 billion Euros or 19% of the French food sector Cheese production: 1,8 million tons 10% of world production 25% of EU production 600 cheese factories of which 44 produce more than 10.000 tons/year 5 leading dairy companies represent 62% of sector sales 193.000 tons of raw milk cheese: 11% of French production 39 AOC cheeses, 4 butter and 1 cream Fresh 34% Goat 4% Sheep 3% PPC 18% Blue 2% Soft ripened 25% Mozzarella 2% PPNC 12%


France: 2d supplier in value and 3d in volume of the American market: France: 2d supplier in value and 3d in volume of the American market France 12.3% New Zealand 9.3% Denmark 7.3% Other 38.8% Italy 23.7% Netherlands 5.8% Australia 2.8% American cheese imports (in 1,000 t.) Main suppliers in value in 2005 US: 8th French client behind Germany, UK, Italy, Belgium, Spain, Netherland and Luxemburg


Cheeses: most dynamic sector of French food exports to the US: Cheeses: most dynamic sector of French food exports to the US French cheese sales To the US (in 1,000 tons) +85% volume between 1999 and 2005 Blue 2,0% 433 t Processed 2.0% 311 t Fresh cheese 6.4% 1,368 t Soft ripened 31.3% 6,690 t Hard and ½ hard 39.0% 8,348 t Feta 9.3% 1.998 t Type of French cheese sold to the US


A dynamic production within a growing marketFrench cheeses as segmentation opportunity for US retailers?: A dynamic production within a growing market French cheeses as segmentation opportunity for US retailers? Lactalis, Bongrain, Bel, Eurial, Laita, Isigny, MS Selection, Interval: established subsidiaries in the US. Long term relationships with importers. Strong growth in volume: hard cheese, fresh, processed and blue. Soft ripened cheese market in the process of revitalization Sector goals master the growth increase store presence increase the frequency of consumer sales +7% within the 7 months 2006


Slide13: For all information concerning the French supply Embassy of France Trade Office in New York 810 Seventh Avenue – 38th Floor NEW YORK 10019 Tel: 1 (212) 400-21 78 or 71 Fax: 1 (212) 315-1017