Anuga 2009: demand for organics continues to grow

6,522 companies from 97 countries took part in Anuga 2009. The number of exhibitors from Germany was 888, and another 130 companies sent their representatives. 5,307 exhibitors plus the representatives of 197 companies came from abroad. Thus 84 % of all the companies were from outside Germany, and the proportion of foreign visitors among the 153,000 from 180 countries was over 61 %. The number of visitors was slightly lower than at the last Anuga two years ago. 275 companies exhibited at Anuga Organic, and a quarter of all the companies present had organics in their product range. (Picture in middle: Canadian Minister of Agriculture in the organic sample shop)
Taking stock of the trade fair, the Federation of the German Food and Drink Industries (Bundesvereinigung der deutschen Ernährungsindustrie - BVE) stated that the conventional food trade has recognised that its inherent business practices are not sustainable. “Precisely in economically difficult times, we see the important function of the food and beverages industry, that both nationally and internationally remains a stable business with largely secure jobs. Despite this underlying positive assessment, the food industry in Germany is suffering because of robust predatory competition. German quality scores on the international stage, but at home it’s price competition that dominates. So in Germany competition has got to be about the best products and not the lowest prices. For this reason, the Federation has asked the government to collaborate with the industry to launch a “food quality offensive”. (Picture: Organic gourmet burger from Salomon)

Since 2001, organics have been successfully presented at various events held at Anuga. In 2003, a special show “Voll-Bio” was created. The introduction of over 80 brands with around 1,200 organic products for the conventional retail trade drew a great deal of attention to organics at a conventional food fair. This year the number of companies at the special show in the organics exhibition hall went up to 150. In total, 275 organic companies displayed their organic product ranges, but some companies included organic products in their displays in the other halls too. Thus, a total of 1,674 exhibitors presented a more or less extensive organic range at Anuga.

A survey of the companies revealed that their perception of market development differed considerably. The majority of big conventional players, who in recent years have been more or less compelled to include organics in their product ranges, reported weakening sales. They are not happy with the way the organic line has developed and are, therefore, not thinking of extending their involvement. Market analysts warned long ago that this half-hearted approach to organics – mostly copies of conventional best sellers – would not work. It has been clear for a number of years that success in organics calls for a high level of commitment.

There were many companies at Anuga that proved a different approach was possible. Companies who in their own interest have tackled the issue of organics and have shown creativity report quite different developments in their organic business. Despite the recession, demand is growing. Customers appreciate the quality and the fact that organic products come from safe sources, and not only are they prepared to pay higher prices, they have remained loyal even in times of crisis. It’s the so-called no-name organic products that are having a hard time, because people have little confidence in them. This underlines once again how important it is to make communication with customers better than it has been hitherto regarding where and how an article was produced, in order to create a basis of trust and to explain its added value. We are also seeing an increase in enquiries from abroad, and company buyers came from as far afield as Moscow and Saudi Arabia as well to place orders for organic premium products. Organic continues to be a powerful trend, and growth is undiminished.

For some months the demand for products of regional origin has been increasing. Retailers have reported double-digit growth rates provided the products are both of good quality and of assured regional provenance, and demand has outstripped supply. Conventionally produced regional goods are often preferred to imported organic items. This means there is new sales potential for local organic producers. Less organic fresh food is being imported and the sale of organic fresh food produced in Germany is continuing to rise, according to the companies in the survey. This means there is new potential for local organic growers. Here too there is no sign of people cutting down on their shopping.

At the Anuga fair Professor Ulrike Detmers invited Sarah Wiener (picture), one of the best known chefs, to work with children and their fathers to create their favourite lunchbox to take to school, and to tell them about healthy eating in general. Radio and television were present, and this became a much appreciated event. Since the company Mestemacher is going to support the Sarah Wiener Foundation in future, it may be that similar events will follow.

The events on the fair’s programme were not so well attended this year, even though they addressed the market situation and the problems companies are experiencing. Current trends like regionality, the human body and food and ethical consumption were the themes discussed by experts from science, market research and business. One statement concluded that the aim of bringing more authenticity to the supermarket was again making it into a proper store with which customers could identify. Also, the increase in child poverty in Germany and the lack of a kitchen table and regular mealtimes in more and more families were addressed. The statement: “Production must coincide with the expectations of consumers” – something that should be obvious to everybody – was once again a much discussed topic. It has been said that convenience is an image killer for organic, but now people agree that today we depend on it, and that’s the reason why this trend is becoming more important for organics.

Consuming with awareness is on the increase, because consumers have learnt a lot in recent years. The only snag is putting it into everyday practice. But at least people’s awareness has been raised, and that was the first step in the opinion of a number of speakers. The point was emphasised that we should not only produce organic goods but must also have a definite philosophy of quality. Companies that have not done their homework will not survive for long. That, at least, is what is happening to some companies who are experiencing falling sales of their unattractively designed organic products in the conventional retail trade.

Organic companies presented innovations and new creative initiatives at Anuga this year. For example, Gepa has completely revised its chocolates (picture). New flavours have been introduced and they have changed the design. Flat chocolate slabs with a premium look are now on sale. The 100 g slab is and will remain standard and it will not come in the various weights favoured by some competitors. The fair trade manager Peter R. Bierhance stressed the social aspects of Gepa products that are different from those of competitors in a number of respects. The company does not tolerate child labour, the workers’ families receive medical care and the children are sent to school.

Klaus Freidler, the managing director of Alb-Gold, also insists on top quality for both conventional products and the organic products that now account for 40 % of his company’s turnover. Far from seeing a decline in the sale of his premium organic articles, his business is growing apace. A new product range has been introduced for the specialist wholefood trade under the brand “Alb-Natur” (picture). The company has specialised in using ancient grain varieties and noodles made from spelt, einkorn and emmer are all the rage. It is interesting to note that allergy sufferers can eat these noodles without any reaction. In contrast to the original varieties of cereal, the composition of nutrients in highly bred varieties seems to have been changed to such an extent that more and more health problems are arising. The firm prices offered to suppliers mean that producers, manufacturers and retailers can all plan longer term in an increasingly volatile cereals market.

In order to raise children’s awareness of food with a high roughage content, Mestemacher GmbH, a bakery specialising in natural rye breads in Gütersloh, has developed an organic lunch bread specifically to meet the needs of school children, containing organic sweet cheese whey that provides growing youngsters with valuable calcium, organic sunflower seeds and wholemeal rye freshly ground in the company’s own mill.

The message from the cheese specialist Anderlbauer in Chiemgau is similarly one of loyal organic customers and continuing growth. The cheeses with wax rosemary rind and wax blossom rind are new (picture). At Anuga this year, Demeter Felderzeugnisse GmbH concentrated on the catering market. New products are apricot-quark dumplings for dessert and fine bread dumplings.

The premium organic eggs supplied by Hephata under the brand “Ei.Q” are selling like hot cakes. The company can only meet 40 % of demand. The particularly good taste is attributable to the selected feed and the guaranteed animal welfare conditions. They don’t cut corners, and they clearly state the production guidelines, the source of the eggs and the company philosophy. The customers show their appreciation by staying loyal in difficult times. The 4-egg pack “Ei.Q ForYou” for singles is new and proving a great success.

Salomon Food World GmbH has also come up with some organic innovations. Organic quality beef from 14-month-old Limousin cattle raised on the Alpine meadows of Styria is processed under the brand Styria Beef into organic gourmet burgers destined mainly for high-end gastronomy. 900 organic farmers are now involved in this programme.

Companies are now being compelled to use substitute ingredients in order to survive. This is causing outrage, but what is to blame is the downward pressure on prices by competitors. Klaus Löhner’s company Ehrlich Trinken GmbH may well benefit from the current debate, because he produces “honest drinks” in both conventional and organic quality (picture) that consist of pure juice and not fruit juice concentrate from anywhere and everywhere that is commonplace today. The names given to the various juices could, however, be counterproductive – if you think “Honest Frog” might contain bits of frog, you are likely to be put off the drink. Other companies too are concentrating on honesty and are advertising, for example, “true fruits – 100 % fruit – no tricks”. We shall have to wait and see whether this gains the trust of savvy customers. For the time being, consumer confidence in the integrity and honesty of the food industry has taken a knock.

A French company has brought out eye-catching bottled drinks under the brand “Elixia” (picture). The lemonades from the Jura have a long tradition – Elixia lemonades have been produced without colorants, artificial aromas or preservatives since1856.

150 companies were represented on the Biopress stand and at the special show “Voll- Bio”. The Canadian Minister of Agriculture and Finance and the Danish Minister of Agriculture visited the stand to see for themselves the full variety of organic products on display (photo above).

Fish and More managing director Jürg Knoll (picture) is in the process of rolling out his organic fish products for the conventional retail trade. Demand is buoyant and represents the early benefits of two years of preparatory work, during which 300 ha of water surface have been managed organically in a biosphere reserve in the Oberlausitz heath and lake region. In many aspects of this work the company has exceeded the EU guidelines in order to protect nature and to maintain water quality at as high a standard as possible. The organic carp raised in this water are given only the best feed, and people say you’ll not find better quality or taste anywhere. So far, only people in the region have been able to enjoy this speciality, but the roll-out to wholefood stores and the conventional retail trade is now in full swing.