SUBSCRIBE

Breaking News on Food & Beverage Development - EuropeUS edition | APAC edition

News > Market Trends

Read more breaking news

 

 

Katjes International CFO: Sugar confectionery consumption in Europe may have reached its limits

Post a comment

By Oliver Nieburg+

15-Mar-2017
Last updated on 15-Mar-2017 at 16:30 GMT2017-03-15T16:30:17Z

Katjes International explores candy acquisitions in Italy and Spain, but expects annual sugar confectionery consumption in Western Europe to remain at 2.7 kg per capita

Katjes International explores candy acquisitions in Italy and Spain, but expects annual sugar confectionery consumption in Western Europe to remain at 2.7 kg per capita

Sugar confectionery consumption in Europe may have peaked, but a spike in Germany’s birthrate signals hope for the future, says Katjes International’s CFO.

The company - which is on the hunt for sugar confectionery acquisitions in Spain and Italy – expects sugar confectionery volume growth to remain static in Western Europe.

Per capita consumption peaks

Speaking to ConfectioneryNews at the trade fair ISM Cologne last month, Stephan Milde, CFO at Katjes International, said: “A lot of the markets in Europe are already mature, which means that if your population isn’t growing then the only other way to grow is if you increase the per capita consumption…

“Most of [the markets] have found a level where you’re seeing that per capita consumption doesn’t grow that much.

“And hence, if [the] population isn’t growing and per capita consumption isn’t growing, then markets are stable.”

Sugar confectionery consumption per capita in Western Europe was at 2.7 kg in 2016, having stood at 2.8 kg in 2012, according to Euromonitor International.

It is projected to remain at 2.7 kg per capita every year until 2021.

Germany: Highest birth rate in 33 years

Milde said the German sugar confectionery market was mature and poised for limited volume growth in the near future.

However, he said Germany’s recent birth rate spike would eventually help the sugar confectionery market pick up in the longer term.

The fertility rate in Germany rose to a 33-year high in 2015 (1.5 children per woman) after years of decline, according to the country’s statistics office.

Germany is Katjes' home market, where it is present mainly with its namesake brand in the gummies segment.

Milde expects some manufacturers in Germany’s sugar confectionery will up wholesale prices in response to rising raw material costs, which would help the segment’s sales by value to increase.

Retail value sales per capita in Western Europe’s sugar confectionery market are forecast for a 0.8% compound annual growth rate (CAGR) decline from 2012 to 2020, according to Euromonitor.

France: Katjes sees growth, but birth rate slows

France is another core market for Katjes International.

The company owns French business Lutti, which specializes in sour confectionery. “That’s also a growing segment,” said Milde.

He continued: “France is a market that, in our experience, has been growing in single digits. Last year maybe a little bit slower, but in general, it’s growing and the main reason is the population in France is growing a little bit faster than it is Germany.”

The French population increased 0.8% year-on-year in 2014, but slowed to 0.5% last year, according to World Bank data.

France’s birth rate fell to its lowest level in 40 years in 2016 - 1.93 children per woman - as the population’s average age hit 41.2, data from the country’s statistical office (INSEE) and the CIA World Factbook shows.

Katjes acquisition shopping in Spain and Italy

The Katjes International CFO said the company was eyeing acquisitions to expand its reach in Europe.

“Clearly, white spaces for us are Italy and Spain,” said Milde.

“Hopefully, there will be one in the next couple of years, hopefully sooner, so we can also enter those markets.”

The CFO added: “We don’t want to stray away from our focus and that’s sugar confectionery. Those companies don’t need to be 100% sugar [confectionery]…but they should have at least a focus, let’s say 50% of the business on sugar confectionery.”

Katjes International secured a €60m ($67m) investment from a corporate bond in 2015, partly to help bankroll acquisitions.

It later snapped up Netherlands licorice maker Festivaldi – owner of the Harlekijntjes brand – and secured perpetual rights from Proctor & Gamble to sell and distribute Vicks cough drops in Europe and Russia.

Katjes’ namesake brand had a 1.2% brand share in Western Europe’s sugar confectionery market last year, while its Lutti brand held a 0.6% share, according to Euromonitor.

Katjes other main brands include Happy Mix, Granini and Gletschereis.

Post a comment

Comment title *
Your comment *
Your name *
Your email *

We will not publish your email on the site

I agree to Terms and Conditions

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.

Related products

Manning Impex ups Asian offering for UK market with seaweed snacks

Manning Impex ups Asian offering for UK market with seaweed snacks

UK-based importer and distributor Manning Impex has added Tao Kae Noi seaweed snacks to...

UK cricket flour energy bar wins ife 2017 Sustainable Packaging Award

UK cricket flour energy bar wins ife 2017 Sustainable Packaging Award

Yumpa, a range of energy bars made with cricket flour, is the first of...

Augmented reality: The ultimate hack in flavour perception?

Augmented reality: The ultimate hack in flavour perception?

Dr Katsunori Okajima

Professor, Yokohama National University

Tate & Lyle unveils upgraded innovation center

Tate & Lyle unveils upgraded innovation center

Tate & Lyle PLC, a global provider of speciality food ingredients and solutions, has...

FOODVISION: Trust and ethics key to reaching consumer hearts and minds

FOODVISION: Trust and ethics key to reaching consumer hearts and minds

Erin Boyd Kappelhof

Managing Partner, Eat Well Global

FOODVISION: DNA testing just ‘one part of the jigsaw’

FOODVISION: DNA testing just ‘one part of the jigsaw’

Andrew Steele

Head of Product Development, DNAFit

Verdiujns extends portfolio of BRC-certified  wafers

Verdiujns extends portfolio of BRC-certified wafers

Verduijns Fine Biscuits launched three savory variants to its portfolio of organic wafers at...

UK sugar tax: The big questions

UK sugar tax: The big questions

The UK has announced a tax on sugar-sweetened beverages. But how hard will it...

FiE 2015: Our best bits

FiE 2015: Our best bits

Our teams of journalists were out in force at Food Ingredients Europe (FiE) last...

New tech on EFSA’s horizon: Crowdsourcing and cyber assistants

New tech on EFSA’s horizon: Crowdsourcing and cyber assistants

New technology like crowdsourcing and artificial intelligence computers is the future of risk assessment,...

Lab meat, plant proteins and insects: Which alternative proteins will feed the world?

Lab meat, plant proteins and insects: Which alternative proteins will feed the world?

The quest for alternatives to animal-derived proteins has led to a huge amount of...

Food firms should prepare for pre-recession spending

Prepare for pre-recession spend – top economist

Food manufacturers should prepare for a positive three years ahead, as the changing economy...

Creepy proteins will be hot

New proteins are creeping on trend

Alternative proteins are a “hot area” of interest and products such as sandwich spreads...

Salt reduction not a priority for UK consumers: LoSalt survey

Salt reduction not a priority for UK consumers, finds LoSalt survey

Caroline Klinge

sales and marketing manager, LoSalt

‘Nice wine, no corkscrew?’ Mirabeau En Provence wins 8m+ YouTube views

‘Nice wine, no corkscrew?’ Mirabeau En Provence solution strikes YouTube gold with 8 million+ views

Mirabeau En Provence owner Stephen Cronk says the desire for a direct consumer connection...

DSM claims craft brewer interest in gluten-free beer enzyme

DSM claims craft brewer interest in gluten-free beer enzyme

DSM Food Specialities claims that, far from being cautious, craft brewers are embracing the...

Smoothie brand Froosh warns of ‘social washing’ within supply chain

Smoothie brand Froosh warns of ‘social washing’ on supply chain sustainability

Scandinavia’s top-selling smoothie manufacturer Froosh has called for ‘trade not aid’ in developing countries...

Key Industry Events

 

Access all events listing

Our events, Shows & Conferences...