Organic Private Labels in Europe by Økologisk Landsforening

ORGANIC PRIVATE LABELS IN EUROPE

PUBLISHED WITH SUPPORT FROM:

Organic Private Labels in Europe Introduction This report analyses private labels in the European market for organic foods. Prepared by Ecovia Intelligence for Organic Denmark, the purpose of the report is to give a better understanding of retailer private labels for business planning purposes. The base year is 2017 / 2018 for all data analysis that includes market size, private label ranges, and retailer information. The project scope includes organic private labels that are in mainstream and specialist retailers in Europe; they include Naturaplan, Duchy Originals, Alnatura and Dennree. Some of these private labels, such as Alnatura, have originated from an organic food retail chain but expanded to other retailers. Other, like Dennree, started off as a wholesale private label but became a retailer private label when the company built its retail network. Only organic food products in retailer private labels are considered, whilst non-foods are excluded. Years are calendar years, January to December. Revenues and market sizes are based on retail sales of organic foods. This report has been prepared by a combination of primary research and secondary research. Information has been gathered from magazine, trade journals, conference notes, and published reports. Primary research was in the form of store checks, and interviews with some leading retailers in Europe.

Confidential to Organic Denmark

ÂŠ 2019 Ecovia Intelligence (www.ecoviaint.com)

European Market for Organic Private Label The European organic food market was valued at EUR 38 billion in 2018. The European market comprises around 40 percent of global revenues. The market is considered the second largest and most sophisticated in the world, home to some of the leading organic food companies. It is also characterised by a high degree of competition. Germany has the largest market for organic foods, valued at EUR 10.9 billion in 2018. Along with France, Italy and the UK, this quartet comprises almost 70 percent of European revenues. However, the largest consumers of organic foods are in Alpine and Scandinavian countries. The French organic food market is the second largest in Europe, worth EUR 9 billion in 2018. Italy has 9 percent share with its EUR 3.6 billion market. The UK has the fourth largest organic food market, valued at EUR 2.6 billion.

Note: All figures are rounded

Source: Ecovia Intelligence

Figure 1 gives the estimated market size for organic private label sales in the leading eight European countries. It is shown that private labels have highest market share in Switzerland (almost 50 percent), Sweden (35 percent), and Denmark (32 percent). The lowest market shares are in the UK (14 percent) and the Netherlands (15 percent).

ÂŠ 2019 Ecovia Intelligence (www.ecoviaint.com)

Confidential to Organic Denmark

Figure 1

Organic Private Labels in Europe: Organic Food Market Size of Top Country Markets, 2017 Market (EUR bn)

PL (EUR bn)

Share (%)

Germany .................................................................................. 10.04

2.96

29%

France ........................................................................................ 8.37

1.80

21%

Italy ........................................................................................... 2.90

0.56

19%

The UK ...................................................................................... 2.47

0.36

14%

Switzerland ................................................................................ 2.43

1.19

49%

Denmark .................................................................................... 1.90

0.61

32%

Sweden ...................................................................................... 2.20

0.77

35%

The Netherlands......................................................................... 1.15

0.37

15%

TOTAL .................................................................................... 35.04

9.17

27%

Note: All figures are rounded

Confidential to Organic Denmark

Source: Industry estimates; Ecovia Intelligence

ÂŠ 2019 Ecovia Intelligence (www.ecoviaint.com)

Growth Rates Figure 2 and chart 2 show market growth rates for organic food sales from retailer private labels. The growth rates are based on the total European organic food and drink market. Although volumes of organic private label products are higher, prices of private label products are typically lower than branded products. Figure 2

Organic Private Labels in Europe: Growth in Organic Private Label Sales, 2008-2018 Revenues (EUR billion)

Year

Revenue Growth (%)

2008 ......................................................................................................................................................... 4.8

2009 ......................................................................................................................................................... 4.9

3.7

2010 ......................................................................................................................................................... 5.2

4.6

2011 ......................................................................................................................................................... 5.6

9.2

2012 ......................................................................................................................................................... 6.0

6.1

2013 ......................................................................................................................................................... 6.4

7.0

2014 ......................................................................................................................................................... 6.9

7.8

2015 ......................................................................................................................................................... 7.5

8.0

2016 ......................................................................................................................................................... 8.5

13.4

2017 .......................................................................................................................................................... 9.2

9.0

2018 ........................................................................................................................................................ 10.0

8.6

Note: All figures are rounded

Source: Ecovia Intelligence

Organic private label sales amounted to about EUR 4.8 billion in 2008. Sluggish growth of 3.7 percent was observed in 2009 because of the financial crisis. Although demand for organic foods remained high, consumer spending power was hit by the economic slowdown. Retailers in countries, such as the UK, Germany and Spain, rationalised their product ranges and focused on core organic products. Healthy growth rates resumed in 2011 with revenues increasing by about EUR 400 million per annum. The highest growth was observed in the Swiss, German and French markets. The major factors driving growth in private label products are: ď&#x201A;§

Competitive prices of organic products. Since organic foods are have a price premium, many consumers are not willing to pay extra for these products. Organic private label products have low prices and appeal to a wider consumer base.

ď&#x201A;§

Marketing campaigns. Retailers are more active in marketing private label products than branded products. Some also undertake advertising campaigns for their private labels. For

ÂŠ 2019 Ecovia Intelligence (www.ecoviaint.com)

Confidential to Organic Denmark

instance, the German discount store Penny launched a television campaign with the German pop singer Nena to promote its Naturgut private label in 2019. Organic private label sales increased by 8.6 percent to EUR 10 billion in 2018.

Note: All figures are rounded

Confidential to Organic Denmark

Source: Ecovia Intelligence

ÂŠ 2019 Ecovia Intelligence (www.ecoviaint.com)

Retailer Profiles This section gives profiles of the retailers with private labels for organic foods in leading country markets. Mainstream Retailers Figure 3

Organic Private Labels in Europe: List of Leading Supermarkets with Organic Foods, 2018 Supermarket

Country

Organic

Private Labels

Products Tegut

Germany

100

Tegut…Bio

Edeka

Germany

190

Edeka Bio, Edeka Bio+Vegan

Rewe

Germany

550

Rewe Bio

Aldi

Germany

130

Aldi Bio

Tesco

100

Tesco Organic

Sainsbury’s

250

So Organic (SO)

Waitrose

300

Waitrose Duchy Organic

Coop Italia

Italy

320

Vivi Verde and others

Esselunga

Italy

200

Esselunga Bio, Esselunga Equilibrio

Carrefour

France

630

Carrefour Bio and others

Auchan

France

311

Auchan Bio and others

Leclerc

France

600

Bio Village

Albert Heijn

The Netherlands

Delhaize

Belgium

370

Delhaize Bio

Billa

Austria

1,000

Ja, Naturlich!

Coop Schweiz

Switzerland

2,500

Naturaplan

Coop Danmark

Denmark

1,200

Änglamark

Kooperativa Forbundet (KF)

Sweden

600

Änglamark

Kesko

Finland

120

Pirkka Organic

Coop Norge

Norway

110

Änglamark

Eroski

Spain

500

Eroski Natur

1,500

AH Biologisch

Source: Ecovia Intelligence

Confidential to Organic Denmark

Most organic food sales are from mainstream retailers in Europe. Figure 3 lists the leading supermarkets for organic foods in Western Europe. Details are given of their private labels for organic foods and the approximate number of organic items in the private label ranges. With about 11,430 outlets, the Edeka Group is the largest retail corporation in Germany. It operates retailers under several banner, such as Edeka Nah und Gut, Edeka Aktiv Markt, Edeka Center and Edeka Neukauf (+ Edeka C&C Großmarkt, Edeka Großverbraucherservice, Edeka NP-Markt). Edeka also operates Spar, Netto discount stores and Marktkauf hypermarkets. The retailer has two private labels for organic products: Edeka Bio and Edeka Bio+ Vegan. The private labels house about 190 products, such as fresh fruits & vegetables, meats, dairy products, drinks, bakery products, as well as spreads, dried fruit, condiments and plant-based drinks. In 2008, Edeka private labels had about 230 products. Owned by Edeka, the Netto discount chain markets organic foods under the BioBio private label. The range has grown from 100 organic products in 2010 to 230 products in 2018. Rewe operates about 3,300 outlets in Germany. The retailer markets organic products under its Rewe Bio private label. In 2010 there were about 300 products marketed under Rewe Bio, compared to over 500 in 2018. Its product range includes organic fruits vegetables, meats, dairy products, bakery products, snacks and drinks. The Penny discount store chain, owned by Rewe, markets organic products under its NaturGut private label. The product range grew from about 80 in 2010 to 110 in 2018. Tegut has been one of the most successful mainstream retailers with organic foods in Europe. The retailer has just over 270 supermarkets, mainly in the states of Hessen and Thuringia. It has over 3,800 organic products of which about 100 are marketed under the Tegut…Bio private label. The range of Tegut…Bio private label products has been reduced from 500 products in 2010. The product range includes organic fruits, vegetables, meats, dairy products, eggs, bakery products and canned products. Organic foods comprise about 26 percent of its total food sales. Other German supermarkets and discount stores are also actively marketing organic foods. Metro markets organic products under the Fine Life Bio private label. Metro also owns the Real supermarket chain which offers organic products under its real- Bio private label. It has about 200 products, such as fruits, vegetables, meats, dairy products, drinks, bakery products, pasta and canned products. Real operates about 280 outlets in Germany. Discount stores have a strong presence in the German retail market. All leading discount retailers, such as Lidl, Aldi, Netto and Penny are offering organic products in their outlets. Aldi sells organic products under its Aldi Bio private label, which has about 140 products. Aldi operates almost 4,200 stores across the country. Lidl has a range of organic products, including dairy products, snacks, pasta, beverages and eggs. Its organic products are housed under their conventional private labels, such as Freshona, Crownfield,

Confidential to Organic Denmark

Sondey, Kania, Grafschafter, Combino, Solevita, Milbona and Ocean Sea. Lidl has about 3,300 outlets in Germany. It has about 140 organic products under its private labels. In October 2018, Lidl entered an agreement with Bioland to market its organic products in its stores. The first Bioland products, such as fruit and vegetables, were introduced in autumn 2018. In January 2019, Bioland organic dairy products, including cheese, milk, butter and yoghurt were added. Illustration 1: Bioland Organic Products in Lidl Discounters, Germany

Source: topagrar.com

German drugstores are also selling organic foods under their private labels. The leading ones are DM Drogeriemarkt (DM Bio), MĂźller (Bio Primo) and Budnikowski (Cantina Verde). Carrefour is the dominant retailer of organic foods in France. The retailer markets organic products under its Carrefour Bio private label. Its product range grew from 450 in 2010 to about 620 in 2018. The product range includes organic fruits, vegetables, meats, dairy products, drinks, grains, cereals, bakery products, snacks and condiments. Carrefour announced in spring 2018 that it aims to reach EUR 5 billion in organic food sales by 2022. Auchan is the second leading retail group in France. In 2010, about 250 products were marketed under its Mieux Vivre Bio private label. In 2018, around 300 products were marketed under the Auchan Bio, as well as Auchan Rick et Rock Bio and Auchan Baby Bio banners. The Auchan Bio product range includes organic fruits, vegetables, meats, dairy products, drinks, grains, cereals, bakery products, pasta, snacks and canned products. Auchan operates around 430 outlets in the country. Illustration 2 shows how the retailer is selling many organic products for less than EUR 1. The Casino Group is another leading retailer in France. It operates about 553 Geant Casino hypermarkets and Casino supermarkets, 780 Leader Price discounters, and 9,200 small supermark ets and city centre stores that operate under various names. Casino sells more than 400 organic products

ÂŠ 2019 Ecovia Intelligence (www.ecoviaint.com)

Confidential to Organic Denmark

under its Casino Bio and Les Tilapins Bio private labels. The product range includes organic fruits, vegetables, meats, dairy products, drinks, grains, cereals, bakery products, pasta, snacks and condiments. Illustration 2: Auchan Bio Products under EUR 1

Source: lineaires.com

Owned by the Casino Group, Monoprix is the most active retailer of organic products in France. Its Monoprix Bio private label has about 380 organic products, compared to 300 in 2010. The product range includes organic fruits, vegetables, meats, dairy products, grains, cereals, pasta, condiments and snacks. E. Leclerc is a retail co-operative that has over 630 stores. E. Leclerc markets organic food under the Bio Village private label. The product range has around 600 products, including organic fruits, vegetables, meats, dairy products, grains, cereals, bakery products, snacks and condiments. ITM Enterprises / Les Mousquetaires is a consortium of independent merchants, called musketeers, which buy and distribute groceries to about 8,000 member outlets in eight European countries. ITM's 4,000 retail outlets include supermarket chains Intermarché and Ecomarché, plus Relais des Mousquetaires. Intermarché is the flagship supermarket of the retail group, with more than 2,300 Intermarché stores in Europe, including 1,836 in France. Intermarché markets about 650 organic products under various private labels, such as Bio Pommette, Bio Bouton D'or, Bio Captain Cook, Bio

Confidential to Organic Denmark

Chabrior, Bio Jean Rozé, Bio Monique Ranou, Bio Odysée, Bio Paquito, Bio Paturages, Bio Saint Eloi, Bio Volaé, Notre Selection, Bio Adélie, Bio Cigalou, Bio Fiorini, Bio Cotterley, Bio Elodie, Bio Planteur des Tropiques, Bio Ivoria and Bio Regain. The Belgian retailer Delhaize Group is active in the French market. It operates a chain of 60 hypermarkets under the Cora banner. The retailer has about 40 organic products under its Nature Bio private label. Esselunga, the leading food retailer in Italy, markets about 180 organic foods under its Esselunga Bio private label. The product range has decreased from 280 in 2010. The retailer also offers about 20 organic products under its Esselunga Equilibrio private label. Esselunga Bio has a comprehensive range of products, such as organic fruits, vegetables, meats, dairy products, drinks, grains and cereals, as well as snacks, condiments and pasta. Esselunga Equilibrio includes plant -based organic products, such as milk alternatives, pasta and snacks. Co-op Italia is the second largest food retailer, with more than 1,600 outlets. The retailer markets organic products under the Vivi Verde private label, launched in 2009. The product range has decreased from 340 in 2010 to about 250 in 2018. The product range includes organic meats, dairy products, drinks, bakery products, gains and cereals, pasta, condiments and snacks. Co-op Italia also sells organic products under other private labels, such as D’Osa, Crescendo, Fior Fiore, Solidal and Bene sÌ. Altogether, the retailer sells about 300 products under these private labels. Conad (Consorzio Nazionale Dettaglianti) is one of the leading retailers in Italy, operating more than 3,000 stores. Conad is a co-operative system of entrepreneurs who are involved in large-scale distribution: retailers, large shopping and distribution centers, and the national consortium. Its retail network comprises Margherita stores, Conad supermarkets & superstores and E.Leclerc-Conad hypermarkets. Conad offers about 230 organic products under its private labels, such as Verso Natura Bio, Verso Natura Equo, Verso Natura Veg and Conad Baby. Verso Natura Bio has the widest product range, including organic fruits, vegetables, meats, dairy products, drinks, grains, as well as snacks and condiments. Carrefour Italy operates about 1,000 stores. The French retail group operates supermarkets under the Ipermercati Carrefour and GS banners, convenience stores under the DiPerDi name, as well as DocksMarket and GrossIper cash-and-carry stores. Carrefour sells about 140 products under the Carrefour Bio label. The product range includes organic fruits, vegetables, meats, dairy products, drinks, grains and cereals, snacks and condiments. Auchan, another French retail group, also has a presence in Italy with its 114 outlets. The supermarkets are owned and franchised, operating under the SMA, Cityper and Simply Market banners. Auchan sells about 90 organic products under its Auchan Bio private label. Tesco is the leading supermarket chain in the UK and the third largest in the world. It operates 6,920 stores worldwide with about 3,453 in its home country. Its Tesco Organic private label has about 100

Confidential to Organic Denmark

products, down from 400 in 2008. Its product range includes organic fruits, vegetables, meats, dairy products, juices, bakery products, canned products and snacks. Sainsbury’s is a leading retailer of organic products in the UK. The retailer operates about 1,400 outlets in the country. It offers more than 250 products under its So Organic private label. The product range includes fruits, vegetables, meats, dairy products, eggs, juices, bakery products, canned products, snacks and dried fruit. ASDA is the third largest food retailer in the UK, operating more than 615 stores. The retailer operates stores under the ASDA Supercentres, ASDA Superstores, ASDA Supermarkets, and ASDA Living banners. ASDA has been part of the American retail giant Wal-Mart since 1999. ASDA has about 80 organic products under its private labels, such as ASDA, ASDA Grower’s Selection and ASDA Little Angels private label. ASDA and Sainsbury’s announced a merger in April 2018. The deal is currently on hold, awaiting approval from the anti-monopoly authorities. Morrisons is the fourth largest supermarket chain, operating about 500 stores in the UK. The retailer sells more than 60 organic products under its Morrisons private label. The product range includes fruits, vegetables, meats, dairy products, drinks, snacks and canned products. Waitrose is the supermarket chain of the John Lewis Group. The chain comprises over 350 supermarkets and convenience stores, mostly located in the south of England. Its stores focus on high quality foods, appealing to middle-class consumers. The retailer sells organic products under its Duchy Organic private label. The product range has around 300 products, such as organic fruits, vegetables, meats, dairy products, grains and cereals, bakery products and snacks. Illustration 3: AH Biologisch Private Label of Albert Heijn

Source: ah.nl

Albert Heijn, part of the Ahold Delhaize group, is the leading food retailer in the Netherlands. It has been actively marketing organic foods since it launched the AH Biologisch private label in 1996. Albert Heijn operates about 890 outlets in the country. Its AH Biologisch private label has about 1,500

Confidential to Organic Denmark

products, such as organic fruits, vegetables, meats, dairy products, bakery products, drinks, shacks, canned products, and ready-meals. Established in 1921, Jumbo is another supermarket chain in the Netherlands. It is privately owned by the Van Eerd Group. The retailer markets about 290 products under its Jumbo Biologisch private label. Jumbo has around 580 outlets in the country. Delhaize is the premier food retailer in Belgium. It markets organic foods under its Delhaize Bio private label, which was launched in 1998. The product range comprises 370 products, such as organic fruits, vegetables, meats, dairy products, drinks, grains, cereals, bakery products, ready-meals, condiments and snacks. The product range has declined from 600 products in 2010. Colruyt is the second leading retailer of organic foods in Belgium. The supermarket also operates Bio-Planet organic supermarkets in Benelux. Colruyt markets about 250 organic products under its Boni Selection Bio private label. Billa supermarkets account for most organic food sales in Austria. Its Ja Naturlich! private label has over 1,000 organic items. The product range includes organic fruits, vegetables, meats, dairy products, drinks, grains, cereals, bakery products, snacks and canned products. The private label is heavily supported by marketing campaigns, including television advertising. Illustration 4: Naturaplan Private Label of Coop Switzerland

Source: coop.ch

ÂŠ 2019 Ecovia Intelligence (www.ecoviaint.com)

Confidential to Organic Denmark

Spar is the second leading retailer in Austria. Its Natur*Pur private label for organic foods has increased from 500 items in 2010 to about 1,000 in 2018. Co-op Switzerland operates about 2,295 outlets under banners such as Coop, Coop to Go, Coop City, Coop Vitality and Coop Bau and Hobby in Switzerland. The retail co-operative also operates Import Perfumeries, The Body Shop Switzerland, Interdiscount and Coop Restaurants. Co-op stores have a comprehensive range of organic foods. The retailer has around 25 private labels, including Naturaplan, Naturafarm, Max Havelaar, Delicorn and Freefrom. There are about 2,500 organic products in its Naturaplan private label, an increase from about 1,600 in 2010. The product range includes organic fruits, vegetables, meats, dairy products, bakery products, snacks, condiments, canned products and pasta. Migros is a leading retail chain in Switzerland with 1,150 outlets. It operates supermarkets under Migros banner and department stores under the Globus name. In February 2012, Migros entered a joint-venture with the leading German organic food supermarket chain Alnatura to open retailers in Switzerland. Migros markets a wide range of organic products under its Migros Bio private label. The range had 1,300 items in 2018, up from 1,000 in 2010. Coop Danmark is a Danish retail cooperative that belongs to Coop Amba. (formerly FDB). It operates retailers under the banners of Kvickly, Brugsen, SuperBrugsen, Dagli'Brugsen, LokalBrugsen, Fakta, and Irma supermarkets, as well as Coop Mad online delivery scheme. It has about 1,200 outlets. Organic foods are marketed under the Änglamark private label. The range has expanded from 800 products in 2010 to about 1,200 in 2018. The product range includes organic fruits, vegetables, meats, dairy products, drinks, grains, cereals, bakery products, baby food, pasta and condiments. Salling Group, formerly known as Dansk Supermarked, changed its name in June 2018. The company runs several retail banners, such as Netto, Føtex, Bilka and Salling. Apart from Denmark, Netto is also present in Germany, Sweden and Poland. Netto offers organic products under the Ogo private label, which has about 180 products. The product range includes organic fruits, vegetables, meats, dairy products, pasta and condiments. Føtex sells organic products under the Levevis private label, which has about 1,300 products. The Norwegian supermarket chain REMA 1000 is also present in Denmark. Part of the Reitan Group, it operates around 500 stores in Denmark. It has about 40 organic products under its Rema1000 private label. The ICA Group is the largest Swedish food retailer with about 1,300 stores. ICA Sweden has several retail banners, such as ICA Nära, ICA Supermarket, ICA Kvantum and MAXI ICA Stormarknad. Organic foods were introduced on a large-scale in ICA stores in the mid-1990s. The retailer offers organic products under its ‘I Love Eco’ private label. The range has about 970 products, such as organic fruits, vegetables, meats, dairy products, drinks, grains, cereals, bakery products, condiments, canned products, pasta and snacks.

Confidential to Organic Denmark

The Kooperativa Förbundet (KF) Group, also known as the Swedish Cooperative Union, is the second largest food retailer in Sweden. KF owns Coop Group, which represents the cooperative movement in Sweden. Its retail division Coop Sverige AB operates several chains such as Coop Forum, Coop Extra, Coop Konsum, Coop Nära and Coop Online. Coop Group operates around 665 outlets in Sweden. Coop markets organic and eco-friendly products under the Änglamark private label. It comprises mainly food and beverages, as well as cleaning products and personal care products. It has about 600 organic products, including fruits, vegetables, meats, dairy products, dairy products, drinks, bakery products, condiments, snacks, and ready-meal products. Axfood is the third largest food retailer in Sweden with 294 stores. In addition, it collaborates with about 840 proprietor-run stores tied to Axfood through agreements. It operates several retail banners, such as Hemköp, Willys, and Axfood Snabbgross. Axfood launched the Garant Ekologiska Varor private label for organic foods in November 2008. About 300 products are marketed under this private label. The product range includes organic fruits, vegetables, meats, dairy products, drinks, grains, cereals and bakery products. Norges Gruppen is the largest Norwegian retailer with over 1,800 stores. Its retailers operate under various banners that include KIWI, Joker, Spar, Eurospar, Meny and Ultra. The retail group offers about 30 organic products under its Go Eco private label. The product range includes organic fruits, vegetables, dairy products, grains, cereals, bakery products, pasta, snacks and condiments. It also offers some organic products under its Eldorado private label. Coop Norge SA, former Norges Kooperative Landsforening (NKL) is a Norwegian association of cooperative societies. It is owned by about 87 local co-operative associations in Norway, and operates over 1,250 outlets. Retailers include Coop, Coop Prix, Coop Obs!, Coop Mega, Coop Marked and Extra. Coop Norge sells more than 100 products under its Änglamark private label. The product range includes organic fruits, vegetables, meats, dairy products, bakery products, snacks and condiments. Kesko is the leading wholesale-based organisation in Finland. It operates roughly 1,640 stores under the K-citymarket, K-supermarket and K-market. Kesko has subsidiaries in Sweden, Norway, Estonia, Latvia, Lithuania, Russia and Belarus. Kesko markets organic foods under its Pirkka private label which has about 123 products. The range includes organic fruits, vegetables, meats, dairy products, drinks, bakery products, snacks and condiments. Carrefour is the leading organic food retailer in Spain, with about 1,000 outlets. The retailer markets about 190 organic products under its Carrefour Bio private label. Eroski is another supermarket chain in Spain, operating as a worker -consumer co-operative within the Mondragón Corporation Group. The retailer operates about 1,150 outlets. The retailer markets about 500 organic product under its Eroski Natur private label. The product range includes organic fruits, vegetables, meats, dairy products, baby food, and snacks.

Confidential to Organic Denmark

Illustration 5: Pirrka Organic Private Label of Kesko

Source: maaseuduntulevaisuus.fi

In Spain, Auchan operates about 360 outlets under the Alcampo and Simply banners. Organic foods are marketed under its Auchan Bio and Auchan Baby Bio private labels. The range includes about 70 items. In Portugal, Continente operates about 300 stores. The retailer has the Continente Bio private label for organic foods, which has about 50 products. Auchan also sells about 50 products under its Auchan Bio label. Froiz has only about 4 items under its Bio Froiz brand.

Confidential to Organic Denmark

ÂŠ 2019 Ecovia Intelligence (www.ecoviaint.com)

Organic Food Retailers

Figure 4 lists the leading chains of organic food shops in Europe. Germany has the largest number of organic food shops and chained outlets in Europe. Southern European countries tend to have more dedicated organic food retailers than northern European countries, especially the Nordic region which has no major chains. Figure 4

Organic Private Labels in Europe: Leading Organic Food Retail Chains, 2018 Supermarket

Country

No. of

Details

Shops Super Natur Markt

Germany

133

Owned by Alnatura organic food company

Denn's Bio

Germany

250

Subsidiary of the leading wholesaler Dennree

Basic AG

Germany

Large supermarket format stores

Bio Company

Germany

Berlin-based organic food supermarket chain

Ebl

Germany

Nuremberg-based organic food retail chain

SuperBioMarkt AG

Germany

Based in the North Rhein Westphalia region

Erdkorn

Germany

Stores are located in Northern Germany

Biocoop

France

572

Fast growing organic food retailer

La Vie Claire

France

353

Long established natural food chain

Biomonde

France

200

Stores located in south of France

Naturalia

France

168

Paris-based organic food shop chain

Les Comptoirs de la Bio

France

142

Specialist retailers chain in France

Bio c’ Bon

France

126

Growing network of outlets across France

CuoreB’io

Italy

225

Franchised stores set up by Ecor wholesaler

NaturaSi

Italy

262

Chain of organic supermarkets in major cities

Isole Almaverde Bio

Italy

The third leading organic retail chain in Italy

Whole Food Markets

Operated by large American retail outfit

Planet Organic

Chain of organic food supermarkets

As Nature Intended

London-based organic food retailer

Ekoplaza

The Netherlands

Organic food chain that owns Natuurwinkel

Bioshop

Belgium

Leading organic food retailer in Belgium

Denn’s Bio

Austria

Leading organic supermarket chain

Terra Verda

Spain

Mainly in the Valencia area

Ecoveritas

Spain

Organic supermarkets mainly in Barcelona Source: Ecovia Intelligence

Confidential to Organic Denmark

Super Natur Market is the leading chain in Germany with 133 organic supermarkets; they are relatively large stores with average size of 589 square meters. The chain is owned by Alnatura, one of Germany’s leading organic food companies. Alnatura is involved in organic food production, wholesale, as well as retailing. Over 1,400 products are marketed under the Alnatura brand; the organic products are in supermarkets, discount stores, drugstores, health food shops and organic food retailers. Its product range includes organic fruits, vegetables, meats, dairy products, drinks, bakery products, condiments, and snacks. Alnatura’s initial business was distribution and it remains one of the leading wholesalers of organic & natural products in Germany and Central Europe. Dennree, the leading wholesaler of organic and health foods in Germany, is also active in retailing with its Denn’s Bio chain. It operates over 250 organic supermarkets. Denn’s Bio stores are descr ibed as organic discounters, since a wide range of organic products are marketed at competitive prices. Over 6,000 organic products are in its stores. Dennree also has a private label for organic foods. Basic is the third leading organic food supermarket chain, with 32 stores in Germany and 2 in Austria. The average size of a Basic supermarket is 739 square meters. The stores have about 12 ,000 organic products. Bio Company has 58 organic supermarkets in Berlin, Brandenburg and Hamburg. ebl operates 29 organic food supermarkets in Germany. ebl has organic meat products under its private label. SuperBioMarkt is a chain of 25 organic discount stores in North Rhein Westphalia (NRW) and Lower Saxony (Niedersachsen). Erdkorn operates 11 organic supermarkets that have oriental characteristics. France has many organic food shop chains. With 431 stores, Biocoop is the leading chain of organic food shops. It has a wide range of organic food products, nutritional supplements and personal care products. The organic food retailer has set up a charter that governs all its activities. For example, development of organic farming sustainable, transparency, fairness and traceability and commercial cooperation and respecting demanding social and ecological principles. Founded in 1948, La Vie Claire operates 265 stores across France. The retailer offers around 4500 organic and natural products, including foods, personal care and home care products. The retailer sells organic products under its La Vie Claire private label. La Vie Saine is a chain of 13 organic food shops and 3 restaurants in France. The retailer was founded in 1952. Its portfolio includes organic and non-food products. Another French specialist retailer L`Eau Vive operates 70 stores across the country. The retailer was founded in 1979. It has a wide range of organic products, including fruits, vegetables, bakery products, meats, as well as personal care products. Satoriz operates 36 organic food shops, 4 restaurants and 1 bakery. Satoriz has a wide range of organic foods, as well as personal care products, cleaning products, and textiles. Bio c’ Bon operates more than 120 organic food shops. The retailer is also present in Italy, Spain, Belgium, as well as Japan. Bio c’ Bon opened its first stores in 2008.

Confidential to Organic Denmark

Carrefour opened its first Carrefour Bio store in 2016. Carrefour Bio is a chain of organic food shops. In 2018, there were 15 outlets in the country. Founded in 2012, Les Comptoirs de la Bio operates about 130 outlets in Fance. The retailer belongs to the Les Mousquetaires group. Les Comptoirs de la Bio also runs shops in Portugal and Belgium. The retaler sells about 80 products under it Les Selection des Comptoires private label. The leading organic food shops in Italy are owned by wholesalers. NaturaSi organic food supermarkets belong to the EcorNaturasi group. There are more than 250 NaturaSi stores in Italy and Spain. NaturaSi sells organic products under the Ecor private label. Isole Bio di Almaverde and Cuorebio are other organic food shop chains in Italy. Isole Bio di Almaverde have about 30 outlets, while Cuorebio is an umbrella organisation of more than 200 specialist retailers in Italy. Whole Foods Market is the largest natural & organic food shop chain with 7 stores. The American retailer has been active in the UK since it acquired the Fresh & Wild chain in January 2004. The retailer offers organic products under the Whole Foods Market and Fresh & Wild private labels. Its product range includes organic meats, grains, cereals, bakery products, as well as condiments and snacks. Established in 1995, Planet Organic has grown into a chain of 7 organic food shops, all located in London. The stores have over 9,000 products, with a significant portion of sales from organic products. The retailer offers about 200 products under its Planet Organic private label. The range includes organic snacks, drinks, grains and cereals. Illustration 6: Planet Organic Private Label Products

Source: welltodoglobal.com

As Nature Intended is another leading chain of organic food shops. It operates 7 organic food supermarkets in London. Apart from organic foods, its stores have nutrition supplements, natural remedies and personal care products.

ÂŠ 2019 Ecovia Intelligence (www.ecoviaint.com)

Confidential to Organic Denmark

Holland & Barrett is the largest health food chain with over 1,300 stores in the UK. It also operates stores in South Africa, Malta, Singapore, China and the United Arab Emirates. The retail chain was acquired by the investment fund L1 Retail for GBP 1.8 billion (EUR 2.1 billion) in June 2017. The retailer sells about 33 organic products under its Holland & Barrett private label. Ekoplaza is a Dutch organic supermarket chain that has more than 70 outlets. The retailer sells about 320 products under its Ekpolaza private label. Natuurwinkel is a leading health food retailer in the Netherlands. The retailer is an umbrella organisation of 25 health food stores in the Netherlands. It has a wide range of organic foods, green home care products and related items. The retailer has several private labels, such as Ekoland and LunaeTerra. Natuurwinkel was acquired by the owner of Ekoplaza, Udea, in September 2018. Odin is an umbrella organisation of 24 organic food shops in the Netherlands. It sells organic foods, natural personal care products and green home care products. Odin has about 130 products under its private label. Illustration 7: Ekoplaza Store in the Netherlands

Source: ethicalmarketingnews.com

Bioshop is an association of 18 organic food stores across Belgium. The retailer offers organic food products under its Bioshop private label. A number of German organic food retailers are opening stores in Austria. Dennâ&#x20AC;&#x2122;s Bio, owned by the German organic food wholesaler Dennree, operates 28 organic supermarkets. Basic also operates some organic supermarkets.

Confidential to Organic Denmark

ÂŠ 2019 Ecovia Intelligence (www.ecoviaint.com)

Ecoveritas is the leading organic food retailer in Spain, with 63 supermarkets. The retailer has about 4,500 items in its outlets. It has about 100 organic products in its Veritas private label. Its product range includes organic fruits, vegetables, dairy products, grains, cereals, and condiments. Terra Verde has 14 organic food shops, with over half in the Valencia region. Other organic food retailers in Spain include Herbolario Navaro and Biocop. Biocop offers about 260 products under its Biocop private label. There are many other organic food shops in Europe, however few belong to chains.

ÂŠ 2019 Ecovia Intelligence (www.ecoviaint.com)

Confidential to Organic Denmark

Predictions This section gives some predictions for organic private labels in Europe. In general, growth in organic private labels has followed the same trajectory as organic food sales in Europe. In countries which have experienced sluggish growth rates, private labels have not fared well. For instance, the UK and Italian markets for organic foods experienced difficulty after the financial crisis in 2009. Leading retailers curtailed their organic food ranges in 2009 and 2010. Private label sales tend to follow the general trend in organic food sales. In Germany and France, positive growth has continued over the last decade. Retailer private labels have done well, both in leading conventional supermarkets and organic food shops. Discounters have done exceptionally well in Germany, largely because they are selling organic foods at low prices. Discounters are expected to continue to do well with private label ranges of organic foods. Retailer commitment is important to the success of private labels. Coop Switzerland is the leading retailer with organic private label, with sales of over EUR 1 billion. Its success is because of a major commitment by the retailer. It is marketing 2,500 organic products under the Naturaplan private label, an increase from 1,600 in 2010. Carrefour is also expected to take up high market share. In spring 2018, it announced its â&#x20AC;&#x2DC;Carrefour 2022â&#x20AC;&#x2122; transformation plan, stating it plans to generate EUR 5 billion sales from organic products by 2022. It also plans to expand its network of Carrefour Bio stores to 120 by 2022. The Carrefour Bio private label is a key part of this strategy. The lines between private labels of retailers and wholesalers are expected to become increasingly nebulous. The Alnatura private label is owned by an organic food company that is involved in production, wholesale and retail. As well as its own retail network, Alnatura products are in organic food shops, supermarkets, and drugstores. Similarly, Dennree wholesaler markets organic foods under its private label; it is now considered a retailer private label since it operates almost 300 organic supermarkets. Another example is Duchy Originals, which was an established British brand of organic foods; since acquired by Waitrose supermarkets in 2009, it has now become a private label of the retailer.

Confidential to Organic Denmark

ÂŠ 2019 Ecovia Intelligence (www.ecoviaint.com)

Business Opportunities This section provides recommendations to Danish companies looking to realise business opportunities with private labels in the European market for organic foods. Chart 3 shows how the assortment of leading private labels has changed between 2010 and 2018. Not shown in the chart is Naturaplan; the private label of Coop Switzerland has grown from 1,600 items in 2010 to 2,500 in 2018. The private label generates over EUR 1 billion sales from organic foods, making it the clear leader in Europe. Chart 3 Organic Private Labels in Europe: Growth in Leading Private Labels, 2010 to 2018

Source: Ecovia Intelligence

Coop Switzerland also does co-branding for organic products, whereby products are marketed under a brand and its private label. This is shown in illustration 8, showing established brands like Ricola and Thomy co-branded with Naturaplan. This is highly unusual, but shows the level of commitment Coop Switzerland is giving to its private label.

ÂŠ 2019 Ecovia Intelligence (www.ecoviaint.com)

Confidential to Organic Denmark

Illustration 8: Naturaplan Private Label of Coop Switzerland

Source: coop.ch

The most prospective mainstream retailers for Danish producers are deemed to be Coop Switzerland, Carrefour, Migros, Rewe, Leclerc, Casino, and Albert Heijn. Discounters, such as Lidl and Aldi are also prospective. Although the German market is the largest in Europe, there is a trend whereby organic food companies and retailers prefer to source domestically. However, the close proximity of Denmark would make some German retailers consider Danish organic products. In terms of organic food shop chains, the most prospective are the ones with established brands and strong retail networks; these are Dennâ&#x20AC;&#x2122;s Bio (Dennree), Alnatura, and NaturaSi (EcorNaturaSi). A major advantage for these private labels is that they are diversified i.e. sales are not reliant on just their retailers. For instance, Dennree products are in a large number of organic food shops in Germany.

Confidential to Organic Denmark

ÂŠ 2019 Ecovia Intelligence (www.ecoviaint.com)