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Table of Contents
Food & Beverage in Greece: A growth industry sector
Advantages and key business drivers
Areas of potential growth and business expansion
Success stories in trade and investment
F&B is the most dynamic and high-growth sector of Greek manufacturing…
Number of companies in the Greek F&B sector
Source: Foundation for Economic and Industrial Research (IOBE) - F&B Sector Annual Report 2009, Eurostat
13,500
14,000
14,500
15,000
15,500
16,000
16,500
14,490
15,195
15,715
16.255
20042005
20062007
Key
Fig
ure
s
F&B enterprises represent 17.1% of total manufacturing enterprises
1,270 are industrial companies with prominent domestic and international
presence. The rest are SMEs
Sales account for 12 billion Euro covering 21% of total manufacturing
Employs 120,000 people covering 22% of total employment in manufacturing
Pastries, snacks, confectionery and pasta represent 2/3 of the enterprises, 1/3 of the
total turnover and absorb half of total employment
Almost 16,300 enterprises at industrial and artisanship level
…contributing decisively and steadily to the country’s exports and EU diet
Source: Foundation for Economic and Industrial Research (IOBE) - F&B Sector Annual Report 2009, Eurostat
Share of the F&B industry exports in Greece’s total foreign trade
74%
26%
EU-27
Rest of the world
EU is the major export destination for the Greek F&B products (2008)
12.00%
12.20%
12.40%
12.60%
12.80%
13.00%
2005 2006 2007 2008
12.30%12.20%
12.30%
12.10%
Outward looking by nature…High rating of Greek F&B investments abroad
and prominent presence in international markets
Source: Invest in Greece, Policy & Planning Unit: Latest version survey entitled “Greek Investors in Foreign Markets 2001-2007”
28%
28%8%
8%
5%
4%
4%
3%
2% 10%
Food & Beverage
Financial Services
Information & Communications Technology
Retail & Wholesale Trade
Construction & Real Estate
Pacaging Materials & Machinery
Mining
Building Materials
Tourism, Travel, Leisure & Entertainment
Other
Greek investments in developed regions by sector (2007)
55%
19%
9%
4%
2%2%
2%
2%1%
4%
Financial Services
Information & Communications Technology
Food & Beverage
Construction & Real Estate
Building Materials
Energy & Environment
Retail & Wholesale Trade
Basic Metals
Machinery & Equipment
Other
Greek investments in developing regions by sector (2007)
Strong receiver of FDI…Second strongest sector in Greek manufacturing
after chemicals
Source: Bank of Greece, 2010
Foreign Direct Investments in the Greek manufacturing sector (2003-2009) – Gross figures
17%
8%
29%15%
16%
2%13%
Food & beverage
Refineries
Chemicals
Metals
Machinery
Transport means
Rest
…resistant and adaptive to the current financial crisis
• 5.5% increase in workforce in the first half of 2009 contributing to the alleviation of the crisis’s consequences
Employment
• Despite the decrease in 2009 production (2.6% in food and 6.7% in drinks), F&B experienced milder losses than those of the total manufacturing sector (10.6%)
Industry Production
Source: Foundation for Economic and Industrial Research (IOBE) - F&B Sector Annual Report 2009
Bakery, snacks, confectionery and pasta is the largest subsector in terms of turnover
and employment
7.00%
1.60%
10.40%
8.60%
16.80%
4.30%2.70%
32.10%
16.50%
Meat Production & Processing
Fishery products
Vegetable & Fruit Processing
Vegetable & Animal Oils & Fats
Dairy Products
Flour Products
Prepared Animal Feed
Bakery, Snack, Confectionery & Pasta ProductsDrinks
Turnover by subsector (% classification)
6.90%
1.70%
10.00%
6.40%
12.10%
3.00%
1.60%
46.30%
11.80%
Meat Production & Processing
Fishery products
Vegetable & Fruit Processing
Vegetable & Animal Oils & Fats
Dairy Products
Flour Products
Prepared Animal Feed
Bakery, Snack, Confectionery & Pasta ProductsDrinks
Employment by subsector (% classification)
Source: Foundation for Economic and Industrial Research (IOBE) - F&B Sector Annual Report 2009, Eurostat
A privileged sector environment…
• Low operating costs
• Abundant raw materials of high quality
• Access to the emerging growth markets of Southeast Europe and Eastern Mediterranean through the established productionand sales network of Greek enterprises
• Shift towards a low calorie, cholesterol free and vitamin-rich dietthroughout the western world favoring the Greek Mediterraneandiet
• Highly experienced and well-educated labor force
…offering plenty of benefits to international entrepreneurs…
• A well-developed domestic retail / supermarket network thatguarantees timely distribution and has already attracted keyforeign players (Carrefour, Delhaize, Lidl)
• Strong focus on R&D. Innovative manufacturers and highly specialized research centers develop new up-market and highquality products.
Leaders in R&D, innovation and food technology are:
The Food Industrial Research & Technological DevelopmentCompany (ETAT)The Institute of AgrobiotechnologyThe Institute of AquacultureThe University of Thessaly
…and a promising future as will continue to bethe steam-engine of Greek manufacturing
• Further development of small local production and reinforcementof competitiveness
• Further reinforcement of R&D and innovation at industry level tocover new consumer needs and preferences (i.e. demand forconvenience and specialized products based on safe, healthy andhigh quality ingredients)
• Increasing demand and new consumer habits lead the way for branded products
• Strategic alliances and further human resource exploitation arekey industry priorities in the immediate future
Source: Foundation for Economic and Industrial Research (IOBE) - F&B Sector Annual Report 2009, The Greek Economy in 2008 – Taseis Journal
The Greek F&B industry is supported by a potent agricultural sector
• Agriculture accounts for 5-6% of GDP in Greece as compared to1.5% of EU-15. Although the share of agriculture in total economydiminished in the previous decade, continues to be at muchhigher levels in comparison with other EU members
• Greek agriculture continues to provide jobs to a considerableamount of people in Greece. Its share in total employment (17%)is much higher than that of EU-15 (4.3%)
• 35 to 40% of the total agricultural land is cultivated with arablecrops, 20% with olive trees, 11% with cotton, 8% with fruits andvegetables, 3.5% with vines and 1.5% with tobacco
Source: “A Brief Overview of Agriculture in Greece”, Pavlos D. Pezaros, Director of Agricultural Policy, Ministry of Rural Development & Food
The Greek F&B industry is supported by a potent agricultural sector (2)…
• Fertile semi-mountainous and mountainous areas: 50-55% of thecereals, 60-65% of olive trees, 70% of sheep and goat herds and40-50% of bovine animals are cultivated or raised in these areas
• A big size of holdings: Statistically, about 800,000 of family-typeholdings appear to still be active in Greece
Source: “A Brief Overview of Agriculture in Greece”, Pavlos D. Pezaros, Director of Agricultural Policy, Ministry of Rural Development & Food
… characterized by a developing and very promising organic segment
• The sector of organic products mainlyconsists of small, family-owned businesses
• Producers and processors of organicproducts in Greece account approximatelyfor 7,810
• Latest available figures suggest that cerealscome first (38.3%) in organic cultivationfollowed by olive trees (38.2%) and vines (3.8%)
Source: ICAP Organic Farming & Products sector study (April 2009), ΔΗΩ (Organization for the Inspection and Certification of Organic Products)
35%
65%
Production of organic foodstuffs
Imports of organic foodstuffs
Reliance on organic food imports offers space for business expansion to cultivators, producers and processors
Fish farming holds a discrete position in Greece’s F&B industry
• Greece is the largest producer of sea bream and sea bass in the Mediterranean(370,000,000 fry & 150,000 tons of fish) and akey supplier of European markets (85% of theproduced fish is exported
• Greek farmed sea bream & sea bass constituteone of the four most important agricultureproducts of Greece (together with oliveoil, tobacco and cotton), occupying thesecond place in the Greek agricultural exports
• Approximately 100 companies, are engaged inthe Mediterranean Aquaculture in Greece, thevast majority of which are small family businesses
Source: Sector data and statistics presented by Dias, Nireus and Selonda Aquaculture Groups
Fish farming holds a discrete position in Greece’s F&B industry (2)
48%
23.80%
12.40%
6.30%
3.20% 1.80% 4.40%Greece
Turkey
Spain
Italy
France
Egypt, Morocco, Tunis
Other
Key European Producers (2009)
193175 167
12598
70
229
260
302315 318
330
0
50
100
150
200
250
300
350
1997 2000 2003 2006 2008 2010
Companies
Licenses
Consolidation Over Time
• 5 listed groups in the Athens Stock Exchange control over 70% ofdomestic production
• Strong consolidation through mergers and acquisitions into largergroups opting to become more powerful in the market
Source: Sector data and statistics presented by Dias, Nireus and Selonda Aquaculture Groups
*
* Estimate
Abundant niche markets…
There is abundant opportunity to create value added in many product categories in the Greek F&B sector, especially as the global interest in healthful foods continues to expand:
Honey and nut based snacks
Macaroni products
Marmalades and pickled goods
Ready made meals and frozen food
Seafood
…offer great potential…
Meat and delicatessen products based on olive oil and otherhealthy Mediterranean ingredients
Boutique and niche market goods including:
sprirulina and saffron, both widely known for their therapeutic attributes
mastiha and other herb products
unique sauces
baby foods
…for investment and business expansion
chocolates and confectionery
cheeses
specialty herb mixes
traditional spoon sweets
Liqueurs and fruit juices
herbal beverage products
organic products
Simple steps to Establish a F&B manufacturing activity in Greece
Decide on geographical area, focusing on target market, availability of raw materials, transportation and infrastructure
Explore space availability within Industrial Areas where set-up is easier and faster
Issue licenses if the investment is to be located outside an Industrial Area
Use our free support services for guidance and assistance, saving valuable time
Greece is the base of famous F&B brands
Your Investment Partner in the region
3 Mitropoleos St.105 57 Athens, Greece
t. +30 210 3355700f. +30 210 3242079