wholesale

This development is boosting wholesale demand from the food service segment by 4 to 5 percent a year across Europe, compared with growth in retail demand of 1 to 2 percent.

Retailers that master the intricacies of wholesaling in Europe may well expect to rake in substantial profits thereby.

Overall, Europe’s wholesale market for food and drink is growing at the same sluggish pace as the retail market, but the figures, when added together, mask two opposing trends.

Moreover, average overall margins are higher in wholesale than in retail; wholesale demand from the food service sector is growing quickly as more Europeans eat out more often; and changes in the competitive dynamics of this fragmented industry are at last making it feasible for wholesalers to consolidate.

However, none of these requirements should deter large retailers from trying their hand, for those that master the intricacies of wholesaling in Europe stand to reap considerable gains.

For example, wholesale food and drink sales came to $268 billion in France, Germany, Italy, Spain and the United Kingdom in 2000—more than 40 percent of retail sales.

Despite variations in detail, wholesale markets in the countries that have been closely examined— France, Germany, Italy and Spain—are made out of the same building blocks.

Closer inspection reveals important differences among the biggest national markets, especially in their customer segments and wholesale structures, as well as the competitive dynamics of individual food and drink categories.

But almost all have ignored the big, profitable opportunity in their own backyard: the wholesale food and drink trade, which appears to be just the kind of market retailers need.

Big retailers must understand these differences before they can identify the segments of European wholesaling in which their particular abilities might unseat smaller but entrenched competitors.

Despite variations in detail, wholesale markets in the countries that have been closely examined—France, Germany, Italy and Spain—are made out of the same building blocks.

For example, wholesale food and drink sales came to $268 billion in France, Germany, Italy, Spain and the United Kingdom in 2000— more than 40 percent of retail sales.

Moreover, average overall margins are higher in wholesale than in retail; wholesale demand from the food service sector is growing quickly as more Europeans eat out more often; and changes in the competitive dynamics of this fragmented industry are at las

overall, Europe's wholesale market for food and drink is growing at the same sluggish pace as the retail market, but the figures, when added together, mask two opposing trends.