Consumption around the globe today & predictions for the future - Europe

Prepared by: Larry McHugh

General Manager, Macadamia Marketing International

16 October 2014

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Total imports into Europe 2010-2014

0

0.5

1

0

2,000,000

4,000,000

6,000,000

2010 2011 2012 2013 2014

MAT JUNE

Vo

lum

e (k

g)

Macadamias kernel imports to Europe (volume): MAT to June

Australia South Africa Kenya Malawi Other

€0€2€4€6€8€10€12

0

2,000,000

4,000,000

6,000,000

2010 2011 2012 2013 2014

MAT JUNE

Vo

lum

e (k

g)

Macadamias kernel imports to Europe (volume): MAT to June

Europe volume imports Avg import price per kg

Sou

rce:

Eu

rost

at

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Major German snack products

Aldi SouthFarmer

macadamias roasted & salted

Aldi NorthTrader Joe’smacadamias

roasted & salted

Aldi SouthGourmet

macadamias honey roasted

Seebergermacadamias

roasted & salted

LidlDeluxe macadamias

honey roasted

EdekaEdeka macadamias

roasted & salted

EdekaEdeka macadamias

roasted & salted

ReweRewe macadamias

roasted & salted

LidlAlesto Macadamias

roasted & salted

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Germany share of retail sales

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Ger

man

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2014 AMS 40th Anniversary Industry Conference proudly presented by

Germany snack nut sales volume v’s price

€14.02 €17.56 €19.55 €20.72

0

10,000

20,000

30,000

40,000

0

500

1,000

1,500

2,000

2,500

3,000

2010 2011 2012 2013

Val

ue

(00

0s

Euro

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00

s kg

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Macadamia snack nut sales in Germany: MAT to December

Volume Avg price/kg Value

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Nie

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2014 AMS 40th Anniversary Industry Conference proudly presented by

Other European countries

• Netherlands – Multiple wholesalers distributing throughout Europe

• Spain – Strong domestic market approx. 300t• Eastern block growing• Italy (some for packing and redistribution)• France increasing• UK around 400t• Poland - for repacking • Supermarket distribution in many countries• Scandinavia growing. 200-300t

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Tree nut imports to Europe

Sou

rce:

Eu

rost

at

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TOP 5 TREE NUTS.RETAIL SALES. EURO/KG

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2014 AMS 40th Anniversary Industry Conference proudly presented by

Retail sourcing

• Retailers using countries such as Poland, Indonesia, Malaysia to make products

• We can supply Asian manufacturers competitively

• Many Macadamia sellers now dealing direct with retailers

• We can influence them to innovate

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The future for Europe

• Australia less market share

• Australia moving to Asia, Australia and high end of other markets

• South African share also decreased whilst NIS market thrives

• Other origins tonnage increasing

• Challenge will be maintaining quality

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The future for Europe

• Supply will be main issue

• When availability increases

– Sales increasing in other European countries

– Increase in Ingredient market, biscuits, chocolate, ice cream, health food bars etc

• We need more kernel