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Research and Markets: Carrefour Will Open 140 New Small Neighbourhood Supermarkets Over the Coming Years in France - France Food & Drink Report Q4 2006

Posted on: Friday, 15 June 2007, 09:18 CDT

Research and Markets (http://www.researchandmarkets.com/reports/c59881) has announced the addition of "France Food & Drink Report Q4 2006" to their offering.

The "France Food & Drink Report" provides independent forecasts and competitive intelligence on Frances food & drink industry.

The French mass grocery retail (MGR) sector continues to be characterised by operator's efforts to portray themselves as offering the cheapest prices for everyday goods. Carrefour has, for example, stated that price competitiveness will remain an essential and necessary condition for growth and the company aims to continue to be Frances cheapest retailer, despite fierce competition.

In order to maintain margins in the face of increasing price competition, MGRs increasingly focus on higher margin non-food products and sales formats, such as convenience and forecourt stores, which allow higher prices to be charged for everyday items. Carrefour is about to launch its Carrefour Home non-food private label range, and Auchan opened its second discount non-food store in September 2006. Both companies also plan to launch mobile phone offerings in co-operation with telecoms operators. Where store format developments are concerned, Casino announced that its portfolio will be re-centred around its more profitable activities which, in France, are its neighbourhood and discount formats. Similarly, Carrefour will open 140 new small neighbourhood supermarkets over the coming years.

The Q406 Food & Drink Report provides a background to the ongoing developments in pricing and outlet formats, and outlines leading MGRs actions, aimed at improving profit margins and growing market shares. In addition, our new regional overview of convenience retailing in Western Europe provides further background to the rediscovery of smaller store formats.

The price wars observable in the French MGR sector could well reshape the French grocery industry, which has long been distorted by government law and political interference designed to protect small shop-owners. Food and drink manufacturers are strongly affected by these developments and, in July 2006, ILEC, the association of brand manufacturers in France launched a collective advertising campaign of 22 brands with the aim to counter the growing popularity of private labels and discount chains in the country. Further pressure on manufacturer's brands is expected from January 2007 onwards, when a new law will allow retailers to advertise on TV, providing them with better opportunities to advertise private label brands. Frances leading retailers have already developed TV spots, with Systeme Us first advert scheduled to be aired on January 1 2007.

Although the outlook in the French food and drink industry has improved along with the recovery in the macroeconomic climate, manufacturers are concerned about the retail price wars and French consumers increasing price consciousness. The Q406 Food & Drink Report outlines how the leading manufacturers increasingly rely on their international operations to achieve growth, and also reports on the latest government initiatives to combat obesity, promote healthier eating, and reduce alcohol consumption among pregnant women.

Content Outline:

Executive Summary

Chapter 1 - Business Environment

Chapter 2 -- Retail

Chapter 3 -- Food & Drink

Chapter 4 -- Tobacco

Chapter 5 -- Competitive Landscape

BMI Forecast Modelling

How We Generate Our Industry Forecasts

Retail Industry

Sources

Companies Mentioned:

Carrefour

Groupe Auchan

Groupe Casino

Groupe Danone

LVMH Group (Moet Hennessy Louis Vuitton)

Nestlé France

Pernod Ricard

For more information visit http://www.researchandmarkets.com/reports/c59881

Source: Business Wire

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