BMI View: Online grocery shopping and delivery or click-and-collect took a significant step forward thisquarter, with the launch of AmazonFresh in Germany. E-commerce in the Food & Drink industry has beenslow to catch on in Germany to date, with a well-developed retail sector containing many strong discountand convenience store options. We expect this will continue to grow at a slow pace but Amazon has alreadyinspired further online platform expansion and investment from REWE, so this marks a shift in the industryin our view. Premium products still show signs of outperforming in line with our strong consumer outlookfor Germany households, our top pick in Western Europe as incomes grow and demand for higher qualityproducts expands alongside this.
Latest Updates & Industry Developments
We forecast total food and non-alcoholic drinks spending in local currency to expand by 2.2% in 2017.Over the next five years, spending will average 2.2%, reaching EUR175bn in 2021.