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Fruit juice: German market in top shape, despite crop damages

June 7, 2018 at 1:01 PM , Der AUDITOR

Per captia conumption of apple juice reached 7.6 liters in Germany in 2017.

Per captia conumption of apple juice reached 7.6 liters in Germany in 2017.

COLOGNE. The Association for the Germany Fruit Juice Industry (VdF) considers the German market in top shape at its annual meeting. One in two producers throughout the EU are based in Germany.

Stable turnover

Chairman Klaus-Jürgen Philip is highly satisfied with sales in 2017 in stating that, “although adverse weather conditions caused a minor decline in production to 3.98 billion liters, the industry’s annual sales remained relatively stable at EUR 3.54 billion”. Germany is the world leader in consuming fruit juice and nectar. With per capita consumption ranging at 32 liters in 2017, the market has, however, witnessed a marginal decline to 2016 and 2015 (33 liters in both years). Germany has been the world’s largest consumer for years, Norway (24.8 liters) ranks second and the Netherlands (22.9 liters) third, followed by Austria and the USA (both 22.6 liters).

Classical fruit juices are losing ground

Due to increasing prices the market has witnessed a nominal decline for classical fruit juices and nectar. Contrary to this, smoothies and direct juices are gaining in market shares. Apple juice is the most popular fruit juice in Germany with per capita consumption ranging at 7.6 liters. Orange juice ranks second with 7.4 liters, followed by multivitamin juice at much lower 4.1 liters and pineapple juice at 0.4 liters. Vegetable juices and nectars have also become increasingly popular over the last few years with per capita consumption currently ranging at 1.8 liters.

Apples, however, posed a problem in 2017. According to Phillip, “night frosts in April 2017 negatively impacted the crop and caused pressing to drop by 65%.” As little as 310,000 mt of apples were pressed to 243 million liters of apple juice in 2017.

What are incoterms?

Incoterms are internationally recognized trade clauses that facilitate the trade in goods with the help of standardized contract formulas. They regulate the distribution of costs and obligations and thus prevent misunderstandings and disputes. They must always be agreed by both contracting parties and confirmed by signing the contract.

Overview of the incoterms

Please note that this is only a rough overview of the Incoterms. For a comprehensive description of the Incoterms, please visit the website of the International Chamber of Commerce.

EXW - Ex-Works (ex works)
The seller must ensure access to the goods at another named location (e.g. factory, factory, warehouse, etc.). The buyer organizes the loading and the transport and bears the costs and risks.

FCA – Free Carrier (free carrier)
The seller must deliver the goods to the buyer's carrier at a location specified by the buyer (for shipping or collection). The seller also undertakes the export customs declaration. The buyer assumes the risk from the moment the goods are handed over to the carrier.

FOB – Free on Board (free on board)
The seller assumes all costs and risks until the goods have been loaded onto the ship. The seller is also responsible for export clearance. The buyer takes responsibility as soon as the goods are on board.

CIF – Cost, Insurance And Freight (Costs, insurance and freight to the port of destination)
The seller assumes all costs and risks until the goods have been loaded onto the ship. The seller bears the costs for packaging and postage for export. The seller also takes out insurance against the buyer's risk of losing or damaging the goods during carriage.

DAP – Delivered At Place (delivered named place)
The seller assumes the costs and risks for the transport of goods to an agreed address.

DAT - Delivered at Terminal (delivered terminal)
The seller must make the goods cleared for import available to the buyer at the terminal of the named port of destination at the agreed time.

CPT – Carriage Paid To (freight paid by)
The seller must make the goods cleared for import available to the buyer at the terminal of the named port of destination at the agreed time.

DDP – Delivered Duty Paid (duty paid free)
The seller delivers the goods to a destination at his own risk and expense. He takes care of all the formalities and bears all costs and import duties.

CFR – Cost and Freight (cost and freight)
The seller assumes all costs and risks until the goods have been loaded onto the ship. The seller has to conclude the transport contract and bears the costs and freight for transporting the goods to the named port of destination or import terminal

CIP – Carriage And Insurance Paid To (freight and insurance paid by)
The seller delivers the goods to the carrier or another person named by the seller to an agreed location. The seller bears the costs and risks for the transport to the specified destination, as well as for the freight insurance. The buyer regulates the import handling and import taxation.

FAS – Free Alongside Ship (free alongside ship)
The seller delivers the goods to the carrier or another person named by the seller to an agreed location. The seller bears the costs and risks for the transport to the specified destination, as well as for the freight insurance. The buyer regulates the import handling and import taxation.