European Bakery Scene Stéphanie Brillouet Head of Marketing - Délifrance UK

Agenda Introduction to Délifrance Macro economic trends EU distribution channels evolution Trends

Introduction to Délifrance

International Network Part of the Délifrance Group  NutriXo  Expertise in milling (Grands Moulins de Paris)  Expertise in French style bakery products

2 technologies 3 sizes Small bread Sandwich bread Bread to share Bread range

French style viennoiserie Indulgent viennoiserie French filled viennoiserie Different technologies depending on the desired quality, price and convenience Viennoiserie range

A large range of French pâtisserie Eclairs, religieuses, Paris-Brest… Entremets Mille-feuilles Tartes, tartelettes Mignardises Verrines Macaroons

Puff pastries: baskets, croissants and specialities Ready to bake technology Growing savoury range

Macro economic trends

Impact of the economic crisis  Growth of more basic /staple categories  Slow down of more luxurious categories but regaining momentum  Growth of snacking lead categories Raw material prices & cost pressures  European manufacturers looking for more efficiency leading to continuing consolidation of the bakery industry Health and nutrition concern  Salt intake, low carb, Free-from Overall bakery structure is changing  Decreasing number of artisan bakeries  Development of the retail sector offer  Discounters growth  Bakery chains and coffee shops development

EU distribution channels evolution

EU bakery products distribution Ireland, Netherlands, Denmark, Finland, Sweden, UK Greece, Turkey, France, Italy, Belgium, Spain Germany, UK, Spain, Austria, Sweden, Ireland Germany, Austria, Netherlands UK, Sweden, Denmark

Retailers

Retail landscape is constantly evolving Refreshing of larger store formats (supermarkets & hypermarkets) Growth of discounters Regained growth of premium offering Growth of online sales and click & collect Convenience channel evolution

Making larger store formats working harder Creating destinations, either stores or categories to drive footfall Make the store space work harder for promotions and for specific customer needs Use of technologies to help customers once in store

European examples of ISB

Growth of discounters’ bakery offer Discounters are growing fast across Europe with more and more stores adding a strong bakery offer  Looking for quality at a value for money price point  Looking at introducing more depth in range

Artisanal Bakery

Artisanal bakery evolution

Joseph – Brot vom Pheinsten, Vienna, Austria Lagkagehuset Bakery, Copenhagen, Denmark Modern ways of displaying bakery products

Praktik Bakery, Barcelona, Spain Blé, Thessaloniki, Greece VyTA Boulangerie, Turin, Italy Princi, Milan, Italy (also in London)

Bakery Chains

Growth of bakery chains – Success Factors Positioned as “artisanal bakeries” whilst driving high volumes  Bread is made on site or at a central industrial bakery  Viennoiserie, pâtisserie and savoury products often outsourced or produced industrially Aggressive promotions Targeted prices Targeted range and quality Location – retail parks, high traffic roads, urban areas

Examples Marie Blachère Over 200 shops mainly in France c. 500 bakeries mainly in Germany One of the original bakery chain present in 29 countries

Trends

Premiumisation / Indulgence Rustic Artisanal Bread Classics Revisited Dessert Trends Levain Sourdough Mother dough Big sharing breads Fermentation Wild yeasts Natural burst Darker colour Hot dog rolls New burger buns Sandwich breads Cup cakes  Macaroons  Eclairs What’s next? Japanese influence Mini selection

Éclairs trendy in France, growing around Europe Great British Bake Off

Shops dedicated to one single product

Premiumisation / Indulgence Rustic Artisanal Bread Classics Revisited Dessert Trends Hybrid Levain Sourdough Mother dough Big sharing breads Fermentation Wild yeasts Natural burst Darker colour Hot dog rolls New burger buns Sandwich breads Cup cakes  Macarrons  Eclairs What’s next? Japanese influence Mini selection Cronut Dosant Duffin Crookie Townie Muffle Macanut What’s next?

Cronut Macanut Crookie TownieMuffle Duffin The new Hybrid Products…

Wellthy Free form Reduce Natural World Wild ingredients Natural flavours Vegs inclusion Sugar reduction Reduce salt Gluten free Balanced carbs Healthy Perceived Cuisine Scandinavian Mediterranean

Convenience Packaging for on-the- go food Sandwiches in bakery outlets Hand held products Bake at home bakery products New retail access points

Adding extra convenience… New retail access points

Ingredients Ancient Grains & Seeds Revival Farro AmaranthSpelt Quinoa Teff Kamut Chia Provenance Heritage vegs Ingredients Linked to health benefit Wild flowers Rose / Violet Forgotten herbs Flavours Lemon BBQ Natural Smoked

Cuisine Big Influencers Middle Eastern JapanScandinavia New Kids On The Block Hybrid cuisines Brazilian Peruvian Mash Up Savoury desserts Sweet & savoury

Thank you for your attention