Germany's food and beverages sector has been an unlikely benefactor of the coronavirus crisis - with the organic food and online food retail markets enjoying record turnover.
January 20, 2021
Demand for organic food grows during Covid-19 crisis
Demand for organic foods is growing in Germany according to market research company Nielsen. The company has observed a long-term increase in demand for organic produce, with the Covid-19 crisis creating even greater demand. Around 17 percent more organic products were bought at the end of 2020 as were for the same period in 2019. The Alnatura organic chain recorded turnover of more than EUR 1 billion for the first time during the business year 2019/2020. Corona lockdown restrictions, stockpiling and increased disposable income for foodstuffs are cited as significant factors in the upturn in demand.
Online food retail sales ring in the changes
Historical hesitancy among German consumers to purchase foodstuffs online has fallen as a result of the ongoing coronavirus pandemic. The food retailing sector has recorded the highest growth rates of all e-commerce sectors, with turnover up more than 50 percent on previous year’s levels according to the bevh industry association. Domestic shopping behavior has been transformed by fear of infection and the rise of home working.
Online supermarket chain Knuspr to challenge domestic giants
A new supermarket chain that promises delivery within three hours is set to compete with domestic giants Rewe and Edeka, targeting turnover of several billion euros in the German market. According to the behv industry association, online business is booming, with online grocery sales hitting a sales record – 90 percent growth compared to the same period in the previous year – in the second half of 2020. Launched by Czech supplier Rohlik, Knuspr will roll out activities in Q2/2021 in Munich, followed by Cologne, Hamburg, Frankfurt, Stuttgart and other cities.
Finnish food delivery service WOLT expands German business operations
Finnish food delivery service WOLT has moved into the German market, beginning operations in Berlin in August of last year. The company, already active in 23 countries and more than 120 cities in Asia and Europe, has since expanded its food delivery operations to Frankfurt and Munich.
Bon Culina enters German catering market
Food service provider Bon Culina has launched its ready meal services in Germany. The international menu supplier, already active in five countries, is targeting hospitals, nursing homes and retirement homes as its most important target markets. Other potential client markets include companies in the public and private sectors as well as educational establishments including schools and universities.
Scottish whisky giant establishes own sales company
William Grant & Sons, owner of the Balvenie and Glenfiddich whisky brands among others, started its own sales company in Germany on January 1. The development marks an end to the relationship with Campari Deutschland, previously responsible for William Grant & Sons distribution in Germany. According to the company, the new national subsidiary is part of its ongoing strategy to be closer to customers in key markets.