Europe is an attractive market for beverage companies
The 1,400 exhibitors and 34,000 visitors expected at BRAU Beviale 2008 from 12 to 14 November can look forward to a real event. At this year’s most important international exhibition for the beverage industry, the focus is naturally on market developments and the preparation of investment decisions in the product segments of beverage raw materials, technologies, logistics and marketing.
Europeans are difficult to figure out, their statistics, too. Studies show that the EU citizens’ trust in their institutions dropped distinctly in 2007. On the other hand, their support for EU membership has never been so great as in the past ten years with as many as 58 percent of Europeans supporting EU membership (Standard Eurobarometer 68, 18 December 2007). The significance of surveys that attempt to present the highly complex reality of life of 497 million people in 27 countries can certainly be mistrusted. One thing is beyond doubt, though: about 70 percent of all laws of EU member states meanwhile come from Brussels. Whether labour law, stock company law, patent law, declaration obligations, food or environmental laws: hardly any sector is left out in the keenness to control everything. The number of legislative projects by far exceeds other regions of the world. For example, the new accession countries had to implement 80,000 pages of law texts into their national laws.
It is often these national interpretations that lead to complications, like the use of herbal extracts in the food industry, for example. Ginseng and ginkgo extracts are in great demand among consumers because of their effect on promoting health. But how is food declared that contains these extracts? Is it still food or is it medicine? Whereas the German authorities would like to assign it to medicines, the British have no problem with declaring the same products as food.
The situation is more complicated and incomprehensible for flavourings, which frequently comprise different components. The producers of beverages can tell you a thing or two about these. What they are especially interested in is the classification of a certain flavouring as “natural”, “nature-identical” or “synthetic”. The classification can differ within the EU due to national interpretations. In the worst case, a flavouring is regarded as “natural” in one country and “synthetic” in another. This can lead to brands having to be produced differently from country to country and logically then also taste differently from country to country, if the brand producer wants to avoid the term “synthetic” on the label.
To give an impression of the confusing situation: Let’s suppose one of the flavouring ingredients is regarded as an additive in Germany. The flavouring could still be described as “natural” if all other components are “natural”. On the other hand, if the additive is not classified as an “additive” in Great Britain, but as a “flavouring component”, then the declaration there would have to show “synthetic”. If Italy is also added, which possibly has a maximum limit for this substance that doesn’t exist in other member states, the flavouring would be prohibited in this form in Italy if the limit was exceeded. Beverage producers have been fighting such paradoxical conditions since 1989. It is understandable that they are all relying on the harmonization negotiations in progress, as only a really EU-wide law can create clearer conditions.
For all the difficulties the beverage industry is fighting in the EU, it is important that politicians like the Slovenian Minister-President Janez Janša emphatically point out what has been achieved. The council presidency in the first half of 2008 is a historic moment for Slovenia. Slovenia is the first of the new member states, the first member state of the former states behind the Iron Curtain and the first Slavic state to head the European Council. The economic progress of the EU member states and the establishment of the single market are encouraging, says Janša. The enlargement has made growth in Europe more dynamic. Europe presented impressive growth and employment results in 2006 with 3.5 million new jobs. For the first time for ten years, productivity also rose with the number of jobs. Trade within the EU has grown by 30 percent since 1992. The abolishment of bureaucratic processes at the borders reduced delivery times and costs. Before the borders were removed, the tax system alone required 60 million customs clearance documents a year! The single market also makes Europe an attractive location for investors, which is shown by the appreciably increased flows of direct foreign investment into the EU. This increases Europe’s influence on determining international rules and standards. There was also activity outside the EU borders. In terms of markets outside the EU, the 25 EU member states were the largest exporter in 2004 with a 19 percent share of the world market, followed by the United States (14 %), China and Japan (9 %) and Canada (5 %), according to the European statistics agency Eurostat.
The European market has become more attractive – also for companies in the beverage industry and their suppliers. BRAU Beviale reflects this in aspects such as the increasing internationality of exhibitors and visitors. The share of international guests rose in percentage and absolute terms in 2007. 28 percent of the good 34,000 visitors came mainly from Austria, Switzerland, Belgium, Russia, the Netherlands, the Czech Republic, France, Great Britain, Italy and other growth markets in Central Eastern and Eastern Europe to source information about beverage raw materials, technologies, logistics and marketing from the more than 1,400 exhibitors – almost 40 percent of them from outside Germany.
The German Packaging Award shall be awarded at BRAU Beviale. Originally held to coincide with FachPack, the prestigious award is now scheduled for BRAU Beviale as FachPack takes a break in 2008. The Deutsches Verpackungsinstitut (dvi) decided to continue the successful partnership with NürnbergMesse in the FachPack-free years and for good reason: The optimisation of beverage packages has always been a major issue for the design specialists who enter their ideas for the German Packaging Award. There were 300 entries for this award in 2007, including a 10-litre beer keg with a patented pressure system that guarantees long-term freshness.
The presentation of the German Packaging Award 2008 takes place on the first day of BRAU Beviale, Wednesday, 12 November, at 4 p.m. in the St. Petersburg room of CCN Ost. The dvi special shows – the “German Packaging Award 2008” and “PackVision” – invite visitors to hall 4A.
