international press conference (moscow, 30.05.2008)

ldquoThe spanish press distribution sector and the supermarket channelrdquo

Spain Main figures

Population 45200000 Spanish 407 million Foreign residents 43 million

(40 of them european)

Extension 504750 Km 17 Autonomy Communities 50 Province

GDP 2007 Growth 35

Spain second destiny for tourists worldwide 45 million tourists each year

The spanish press marketBuying habits

In 2005 488 of the spanish population buy newspapers and 288 magazines

317

142

105

321

167

121

1999 2005

Buy only magazines

Buy magazines and newspapers

Buy only newspapers

The spanish press market

Market Volume (2006)

MAGAZINES Sales 2799 Million copies (+089 than 2005) Medium price 190 euros (185 euros in 2005) Turnover 53046 Million euros (+341 than 2005)

NEWSPAPERS Sales 99704 Million copies (-567 than 2005) Medium price 118 euros (116 euros in 2005) Turnover 117518 Million euros (-390 than 2005)

The spanish press market

Main legal and commercial aspects

Publisher put the selling price in the cover of the newspapers and magazines The same price in the different selling points

Levels of margin applied to the newstands it sets a discount between 20 and 25 of the cover price Marked by an old regulation from 1972

New spanish law banning the sale of tobacco in press selling points

Press selling to the local distributor and to the kiosk with right of return

Geographical exclusivity given by the PublishersNational Distributor to the local distributor (only one exlusive provider in each area for the titles of the publisher who gives the exclusivity to the distributor)

But great competition between distributors

The spanish press market

Publishing Groups- Magazines

750 publishing groups in the magazine sector in Spain representing around 7000 titles

The biggest publishing groups with 116 main titles represent 72 of the market

Presence of international publishing houses Axel Springer Bauer G+J Edipresse Hachette Filipacchi Motorpress

Spanish groups Grupo Heres Hola RBA Grupo Zeta

The spanish press market

Publishing Groups- Magazines

TRENDS

Celebrity magazines and woman titles represent about the 40 of the total market

Other House and decoration (62) Automovil (47) TV (33) Science and culture (29)

Mergers and acquisitions of big groups G+J Motorpress - RBA Edipresse-Hymsa - Grupo Zeta is for sale

Selling pockets of magazines magazinesnewspapers promotions and gifts Different versions of the same magazine (standard and pocket) Reduction in the price for certain promotions Alternative of other products and channels mobile phones sms blogshellip

The spanish press market

Publishing Groups- Newspapers

90 dailies 7 national 76 regional 4 sport 4 business National daily newspapers ABC (Vocento) El Mundo (Unidad

Editorial) El Paiacutes (Prisa) El Perioacutedico (Zeta) Puacuteblico (Mediapro) La Razoacuten (Planeta) and La Vanguardia (Godoacute)

Daily sports As (Prisa) and Marca (Recoletos) from Madrid Sport (Zeta) and Mundo Deportivo (Godoacute) from Barcelona

The spanish press market

Publishing Groups- Newspapers

TRENDS

Appearance of free newspapers Metro and 20 Minutos (Schibsted)

Publishers of paid newspapers have started publishing free newspapersQueacuteiexcl (Vocento) and ADN (Planeta)

Mergers Unidad Editorial Recoletos Grupo Zeta is for sale

Promotional products with the daily papers (Books CD DVDhellip)

Big impact of Internet and new ways of information blogs smshellip

The press distribution sector

National distributors

Two levels of distribution National and Local distributors

National Distributors (8) Services to publishers (nationals and foreigners) distribution all over Spain ATHENEUM COEDIS DISPANtildeA DISPESA LOGINTEGRAL LOGISTA SGEL and TOYMER

Also publishers with distribution departmentG+J ESPANtildeA MOTORPRESS IBEacuteRICA HOLA HYMSA EDIPRESSE

The press distribution sector

Local distributors

LOCAL DISTRIBUTORS (100) deliver the publications they receive from their suppliers (national dist or publishers directly) to the retail

The local distributors work in set territories on an exclusivity basis for the publications they distribute (COMPETITION)

Three groups Independent distributors (15) Local delegations of national distributors (45) Distributors owned by the major newspaper

groups (40)

The press distribution sector

Selling points

27000 press selling points in Spain (2007) Influence very limited of newsstand chains

and supermarkets Hard decrease (-16 1995 around 32000)

PRESS KIOSKS 770 BOOKSHOPS 167HIPER amp SUPERMARKETS 54 OTHER CHANNELS 09

Promotions by the daily papers and the increase in sales of non-press products (phone cards recharging CDs DVDs etc) have partly compensated the loss in press products

The spanish press marketGeneral Structure

Publishers

8 National Distributors

100 Local Distributors

27000 Kiosks

The spanish press marketGeneral Structure

Geographical exclusivity given by the PublishersNational Distributor to

the local distributorhellip but with strong competition

4 local distributors in some areas

Asturias Maacutelaga

Maacutelaga 4 local distributors

Asturias 4 local distributors

The press distribution sectorData and statistics (FANDE profile study 2006)Turnover level by channels 2001-2006

08 12 09 0937

190

56

709

4935

741

141

34 38

752

157

41 51

753

136

52

770

118

5449

A quioscos y tiendasde revistas

A libreriacuteas A cadenas de libreriacuteas A hipers ysupermercados

A otros canales

2002 2003 2004 2005 2006

The press distribution sectorData and statistics (FANDE profile study 2006)Turnover level by channels 2001-2006

Quioscos y tiendas de revistas

12511325

1196

1000

1173

2002 2003 2004 2005 2006

Libreriacuteas y cadenas de libreriacuteas

842

1000

884 833

951

2002 2003 2004 2005 2006

Hipermercados y supermercados

1210

1760

10801000

1505

2002 2003 2004 2005 2006

Otros canales

1000

1711

1175

1625 1303

2002 2003 2004 2005 2006

The press distribution sectorThe supermarket channel

Kiosks in the near area of one that close only recover 50 - 70 of the preview selling level

The new selling points (supermarkets fuel stationshellip) are less profesionals thant the independent kiosks The press market is not is ldquocore businessrdquo

Limited the catalogue of publications Only the most profitable Difficulty for the publishers to reach the potential customer

Pay per scan amp pay per situation in the shop

The press distribution sectorThe supermarket channel

The press distribution sectorThe supermarket channel

Main supermarkets chains

Eroski Center 457 selling points

Opencor 156 selling points

Carrefour Express 87 selling points

Vips 72 selling points

The press distribution sectorThe supermarket channel

Main hipermarkets chains

Carrefour 161 hipermarkets

Eroski 97 hipermarkets

Alcampo 49 hipermarkets

Hipercor 36 hipermarkets

The press distribution sectorThe supermarket channel

The fuel stations

SPRINT (Repsol YPF) 178 selling points

Only the more profitable press titles (not morethan 50)

The press distribution sectorThe supermarket channel

Main press specialist chains

RELAY 100 selling points (airports rail stations metro stations)

BDP 82 selling points (presence in malls)

The press distribution sectorThe supermarket channel

Distributor example in a city ( Channel turnover)

Press Kiosks amp Booksellers 8770

Fuel stations 420

Travel retail (Airport Rail Metrohellip) 372

Hiper amp Supemarkets 438

The European Press Distribution Sector Some data GermanyItalyGreat BritainFrance

ldquoThe spanish press distribution sector Data anrdquo

International Press Distribution ConferenceMoscow 30 May 2008

J

The european press distribution sector Germany

Main characteristics

DISTRIBUTORS 76 wholesalers with exclusivity in one area (only one distributor per area) Except Berlin and Hamburg (2 distributors)

SELLING POINTS 119800 (in 2002 there was 125000)

LEGISLATION General agreement between the Publishers Associations (Magazines amp Newspapers) and the Distributors Association (Presse Grosso) for a press distribution frame

INITIATIVES Support from the publishers and distributors for develope merchandising improves in the kiosks

Great collaboration in technological and management projects

The european press distribution sector Italy

Main characteristics

DISTRIBUTORS 8 national distributors (De Agostini Mondadori and Rizzoli 60 of the market) Also 140 local distributors

SELLING POINTS 36000 (in 2000 there was 40000) Mainly independent kiosks The supermarkets at the moment donacutet have too much power

LEGISLATION Legal regulation from 2001 about the press distribution in Italy

INITIATIVES Great collaboration between the Publishers and Distributors Associations for improving the kiosks (computers internet merchandisinghellip)

The european press distribution sector Great Britain

Main characteristics

DISTRIBUTORS 3 national wholesalers (Smiths News Menzies and Dawson) and 16 small local distributors

SELLING POINTS The independent kiosks represent the 30 of the market (40 in 2000) Very fast growht from supermarkets (Tesco Sainsburyhellip) and press chains (WH Smith HS) (supermarkets+chain represent 50 of the market)

LEGISLATION Actually the Office for Fair Trade (OFT) is developing a inform for a probably elimination of the exclusivity from the distributor Big pression from the supermarkets for choose the distributor that they prefer as provider

INITIATIVES Collaboration between distributors and supermarkets for become non press products providers (electronic devices candies food)

The european press distribution sector France

Main characteristics

DISTRIBUTORS 2 national distributors (NMPP and MLP) and 187 local distributors In 1988 it was 2900 local distributors NMPP controls 50 of the local distributors

SELLING POINTS 29700 (in 2000 there was 33400) The press chains Maison de la Presse Mag Presse Relay and Agora represent 20 of the market

LEGISLATION Bichet Law from 1947 that rules the press distribution and the service to the publisher

INITIATIVES The French Parlament develope a paper about the need to protect the press distribution channel (Dossier Brossia October 2007)

Agreement between publishers national distributors and local distributors for give better commercial conditions to the independet kiosks (protection)

European Press Distribution Round Table

1ordm Round Table (Bilbao - Spain 5 July 2007) 2ordm Round Table (Vienna - Austria 25 September 2007) 3ordm Round Table (Istanbul - Turkey 27 October 2008)

Participants

ARPP (Russia) ADN and NDM (Italy) ANMW (Great Britain) PRESSE GROSSO (Germany) FANDE (Spain) SNDP (France) Invited

With the DISTRIPRESS support

European Press Distribution Round Table

European Survey with anual data from the different european markets

Market information (population number of retaliers national newspapers regional newspapers magazines distributors)

Sales data (Magazines newspapers partworks other products)

Unsolds (Magazines newspapers partworks other products)

Interchange of information about different common topics (supermarkets role distribution technology legislationhellip)

Promotion of the press distribution sector and his associations

Cooperation for improve the role of the press distributor at national and european level

Большое спасибо

Joseacute Manuel Anta jmantafandees

FANDEC Santiago Rusintildeol 828040 Madrid (SPAIN)wwwfandees