Market Information
Europe

The Nutraceuticals and Functional Foods Market in Denmark

November 2003

Prepared by the
Market Research Centre
and the
Canadian Trade Commissioner Service

The Market Research Centre produces a wide range of market reports by region and sector for Canadian exporters. For further information, contact:

Market Research Centre (TMR)
Department of Foreign Affairs and International Trade
E-mail: mrc@dfait-maeci.gc.ca
Internet: http://www.dfait-maeci.gc.ca

Trade Evaluation and Analysis Division (TEAD)
Agriculture and Agri-Food Canada
Contact: Andy Archibald
Tel.: (613) 759-7665
Fax: (613) 759-7505
E-mail: archibalda@agr.gc.ca
Internet: http://ats.agr.ca

The Government of Canada has prepared this report based on primary and secondary sources of information. Readers should take note that the Government of Canada does not guarantee the accuracy of any of the information contained in this report, nor does it necessarily endorse the organizations listed herein. Readers should independently verify the accuracy and reliability of the information. This report is intended as a concise overview of the market for those interested in its potential and is not intended to provide in-depth analysis which may be required by the individual exporter.

EXECUTIVE SUMMARY

High per-capita income levels supported by generous welfare benefits make Danes one of the richest populations in Europe. Moreover, narrowing income differentials in Denmark are broadening the market for private consumption. The demand for nutraceuticals⁽¹⁾ is projected to reach $139 million⁽²⁾ by 2006, up 4.5% annually from 2001. While the value of the functional foods market is more difficult to estimate, it is forecast to grow at annual rates of at least 6% over the next five years.

The Danish food market is in a state of change, driven by consumer preferences for healthier, higher-quality food. Increased health awareness is reflected in new preferences for functional, low-fat and organic foods. Demand is also growing for convenient, high-energy beverages and snacks.

In addition, new liberalized pharmacy laws have increased competition and shifted distribution patterns for nutraceuticals. Advertising and marketing campaigns will play a larger role in the market, as consumers have more outlets from which to choose. The self-medication trend is expected to increase, as the Internet becomes an ever more important source for health information and products.

While growth in this market is forecast to be strong, there will be significant variation at the product level. The markets for multivitamins, children's vitamins, vitamin C, calcium and mineral supplements are mature and growth is expected to be limited. However, the markets for vitamins E, D and A are still considered underdeveloped. The best growth prospects are forecast to be in functional beverages and tonics, herbal remedies (e.g. ginseng, gingko biloba, echinacea, garlic), fish oils and vitamin Q10. Private-label brands of vitamins and supplements are also considered to be good growth prospects.

EXECUTIVE SUMMARY

MARKET OVERVIEW

Key Factors Shaping Market Growth
Opportunities

COMPETITIVE ENVIRONMENT

Local Capabilities
International Competition
Canadian Position
Competitive Advantage Through Canadian Government Policies and Initiatives

PRIVATE-SECTOR CUSTOMERS

PUBLIC-SECTOR CUSTOMERS

Government Organizations
Government Procurement Regulations

MARKET LOGISTICS

Channels of Distribution

Direct Sales
Distributors and Wholesalers
Agents and Sales Representatives

Market-entry Considerations

PROMOTIONAL EVENTS

KEY CONTACTS AND SUPPORT SERVICES

APPENDIX

BIBLIOGRAPHY

OTHER REFERENCE MATERIAL

MARKET OVERVIEW

Denmark, the smallest of the Scandinavian countries, occupies a peninsula north of Germany that is bordered by the Baltic and North Seas. Offshore oil and natural gas reserves are Denmark's most important natural resources. With a population of 5.3 million and annual per-capita incomes approaching $43 000, the Danish enjoy one of the highest standards of living in the world.

Denmark is a member of the European Union⁽³⁾ and adheres to most EU economic policies. The Danish have, however, opted out of monetary union. Instead of the Euro, Danes still use the Krone as their currency. The Krone is firmly linked to the Euro within a very narrow band of 2.25%.

Denmark is a modern market economy featuring high-tech agriculture and small-scale industry. Denmark is a net exporter of food, with one of the most advanced food processing sectors in the world. In 2002, real gross domestic product (GDP) growth was 1.6%, down from previous years. A modest recovery is forecast, with GDP growth estimated to be 2.3% in 2003 and 2.5% in 2004.

In 2002, total Canadian agri-food exports to Denmark reached a value of $118 million. Exports of bulk vitamins and vitamin capsules were valued at $10.9 million. Several agri-food product categories demonstrated robust growth in 2002, including probiotic (digestive enhancing) yeasts, seaweed and algae products.

Nutraceuticals

The Danish demand for vitamins and dietary supplements is projected to reach an estimated value of $139 million by 2006, up 4.5% annually from 2001. While the value of the functional foods market is more difficult to estimate, it is forecast to grow at annual rates of at least 6% over the next five years. There will be large differences at the product level. Certain products are considered to be mature with limited, or in the case of children's vitamins, even negative growth potential.

In 2001, according to Euromonitor, the Danish nutraceuticals market was led by multivitamins, which held a 26.5% market share, followed by single vitamins (19%), fish oils (17%), mineral supplements (6.5%) and calcium supplements (5.5%). Two other subsectors of note are child-specific supplements, with a 2.5% market share, and tonic/bottled nutritive drinks, with 0.05%.

Herbals and Homeopathic Remedies

The Danish market for herbals is considered to be underdeveloped by Western European standards. Danes have only recently begun to show more interest in products based on herbal and organic ingredients. This is part of a larger trend toward environmental awareness and healthy lifestyle choices. Demand for products like ginseng, gingko biloba and echinacea are forecast to grow as a result of increased advertising and as consumers become more familiar with the products. Furthermore, Danish consumers are increasingly interested in homeopathic remedies.

Functional Foods and Beverages

A functional food or beverage is a product that claims to give a positive health benefit. Examples of functional ingredients are probiotics (bacteria that aid digestion) and calcium (which can help prevent osteoporosis and is more commonly being added to popular beverages, such as orange juice). The European Food Authority is drafting a legislative proposal to regulate health claims that can be made on food packaging. In Denmark, food products are not allowed to advertise that they provide therapeutic health benefits.

Common Agriculture Policy

The EU Common Agricultural Policy (CAP) is a major factor determining the composition of Canadian agri-food exports to Denmark. Through the CAP, the European Union has established a system of common prices, marketing aids, production, storage arrangements, import controls, export restitutions and specialization of production. For information on the specific EU tariff or quota levied on a product, consult the Community Integrated Tariff (TARIC) database at http://europa.eu.int/comm/taxation_customs/dds/en/tarhome.htm

Genetically Modified Organisms

The moratorium on approving and importing genetically modified (GM) products was lifted throughout the European Union in October 2002. However, GM foods are very slow to find their way to the market due to the enforcement of labelling and traceability rules.

In November 2002, the Agriculture Council of the European Union agreed by a majority decision that food containing more than 0.9% GM material will have to be labelled as containing genetically modified organisms (GMOs). The Council also agreed that labelling of GM material in food should be extended to include food or ingredients produced with GM crops. The proposal calls for complete disclosure to the consumer and the ability to trace every GMO back to the farm on which it was grown. The agreement will have to go before European Parliament before any legislation can come into effect.

Key Factors Shaping Market Growth

Like many industrialized countries, the population of Denmark is ageing. The overall levels of health and life expectancy are very high, even by Western European standards. Yet, there is concern about the quality of life of older citizens and increasing levels of health-care expenditure. The Danish government has taken a leadership role in promoting preventative medicine, healthy lifestyle choices and self medication. Demographic trends and government initiatives have increased demand for functional foods, beverages and dietary supplements.

Growth is also fuelled by research and continuing media interest in the health benefits of specific foods, vitamins and mineral compounds. Danish consumers are well-informed and publicity--good and bad--affects sales. Furthermore, the Internet is becoming an increasingly popular source for health information due in part to Denmark's liberal Internet pharmacy regulations. Several health-care companies in Denmark have developed sophisticated Web sites, allowing consumers to access information and purchase products.

In the nutraceuticals sector, advertising and marketing are expected to play a more important role in product sales. In 2000, the Norwegian health-care company Pronova introduced a fish oil product called Triomega into the Danish marketplace. The product launch was supported with a $4-million advertising budget, a previously unheard-of amount for such an endeavour. Pronova was able to increase its total market share by 2% with the successful introduction of this product alone.

Presently, fish oil supplements are consumed in capsule form. However, research is being conducted around the world on how it can be incorporated into foods as an additive, providing consumers with an even more convenient way to obtain its nutritional benefits. European producers are leading their competitors in this area of research and development.

Opportunities

Many of the products in the functional category are considered underdeveloped and are forecasted to grow significantly in the next five years. Energy drinks and tonics are just being introduced to the Danish consumer. These lifestyle products target athletes and active people. They often contain forms of soy protein and probiotic ingredients like yeast or flax. Like elsewhere in Western Europe, growth in this area is forecast to be very dynamic. Analysts predict growth rates as high as 35%, albeit from a very low base.

In 2002, Danish imports of seaweed and other algae are estimated to be over $20 million, growing 5% from 2001 levels. In addition, the energy vitamin Q10 is still catching on in Denmark and represents a market that is considered underdeveloped.

Private-label brands are also considered to be an area with growth potential. Several supermarket chains and one drugstore retailer have private-label products that are performing quite well.

Actual and Planned Projects

In March 2003, Denmark won an important decision from the European Court of Justice. The Court ruled that Denmark may set stricter limits on cancer-causing substances in food than the European Commission allows.

In December 2002, Nestlé and L'Oréal, the Swiss and French food and cosmetics producers, respectively, launched a nutraceuticals joint venture. The partnership will concentrate on cosmetic foods, which enhance hair, skin and nails. This venture represents a potential trend in the food industry as global food giants attempt to partner with cosmetic and vitamin producers as a means of entering the lucrative functional foods market.

COMPETITIVE ENVIRONMENT

Local Capabilities

In 2002, Denmark imported over $130-million worth of vitamins in tablet and bulk forms. In the same year, they exported close to $168.7 million of the same products, leaving a trade surplus of $38.7 million. This trade surplus is up from $35 million in 2001. Vitamin sales are dominated by local manufacturers and local brands, despite the strength of multinational nutraceutical giants located in nearby European countries like Germany and Sweden.

Dansk Droge is the leading company and has strong grocery store distribution. Following Dansk Droge are Matas, Nycomed Danmark and Ferrosan. Matas is also a retail chain, focussed on cosmetics and health, and has over 250 outlets around Denmark as well as a sophisticated Web site.

Private-label brands are becoming increasingly popular with Danish consumers. Large supermarket retailers ISO and FDB have introduced private-label vitamins and supplements. Consumers are responding well to their competitive pricing.

International Competition

Location and preferential tariffs give EU countries a considerable advantage. Canadian functional food and vitamin exporters will primarily face competition from Switzerland, Norway and EU countries such as the Netherlands, Germany, France and Italy.

Pronova Biocare, a subsidiary of Norwegian Norsk Hydro, is a very important player in Denmark's supplement market. Their Triomega Pronova-brand fish oil currently holds 12.4% share in this lucrative market.

Canadian Position

Canada has a small position in the Danish market for nutraceuticals and functional foods. In 2002, Canadian exports of vitamins and vitamin derivatives in the form of organic chemicals reached a value of $10.4 million. This figure represents a 36% increase from 2001. This increase is due solely to the strength of derivatives of Vitamin A exports and may not indicate the beginning of a larger trend.

Canadian exports of seaweeds/algae and inactive yeasts (probiotic ingredients) were small in 2002 but experienced growth rates of over 80% from 2001 levels. Canadian exports of active yeasts reached a value of $1.7 million in 2002, representing an 18% increase over 2001 exports.

Competitive Advantage Through Canadian Government Policies and Initiatives

Canadian Commercial Corporation

The Canadian Commercial Corporation (CCC) gives Canadian companies access to financing and better payment terms under the Progress Payment Program (PPP). The PPP concept was developed as a partnership between major Canadian financial institutions and the CCC. It enables the exporter's bank to open a project line of credit for the exporter's benefit, based on CCC approval of the project and the exporter's ability to perform. The CCC will also act as a prime contractor on behalf of Canadian small and medium-sized enterprises, giving those businesses increased credibility and competitive advantage.

Export Development Canada

Export Development Canada (EDC) offers export financing and insurance to Canadian exporters. Additionally, insurance can be provided for larger transactions that are subject to the terms and conditions established by the buyer. EDC prefers to work through letters of credit, bank credits or bank guarantees. Approval for financing is considered on a case-by-case basis. Further information is available from EDC's Internet site at http://www.edc.ca or by calling, toll-free, 1-866-283-2957 (for companies with annual export sales up to $1 million) or 1-866-278-2300 (for companies with annual export sales over $1 million).

International Business Opportunities Centre

The International Business Opportunities Centre (IBOC) is a partnership between the Department of Foreign Affairs and International Trade (DFAIT) and Industry Canada. The Centre matches business opportunities provided by Trade Commissioners abroad with capable Canadian firms, particularly small and medium-sized enterprises (SMEs). Opportunities are handled on a case-by-case basis, spanning all markets and all sectors. The Centre uses electronic databases, such as WIN Exports, the Trade Commissioner Service's database of Canadian exporters and their capabilities, and Strategis, Industry Canada's online directory of Canadian companies. The Centre also uses a broad range of contacts in federal and provincial governments and industry associations to identify potential Canadian suppliers of products and services.

In order to position companies to receive business opportunities, the Centre offers a free service for Canadian companies, called E-Leads. By subscribing to E-Leads, relevant business opportunities matched to individual export interests are delivered in a timely and efficient manner directly to Canadian companies' e-mail accounts. To subscribe, visit the Centre's Web site at http://www.iboc.gc.ca.

New Exporters to Overseas

The New Exporters to Overseas (NEXOS) program helps Canadian companies that have not yet exported to Europe. NEXOS introduces the essentials of exporting and provides practical information and first-hand exposure to European markets. The program emphasizes information in areas such as customs procedures, market access, shipping, labelling, distribution channels and currency regulations. Flexibility and fast turnaround times are the hallmarks of this program. Each mission includes thorough briefings on how to find an agent, a distributor or an associate. In other words, NEXOS shows Canadians how to do business in the destination country.

NEXOS missions are arranged for groups of companies in the same general sector. Accordingly, applications from individual firms cannot always be entertained. Individual companies are advised to work with a Canadian organization such as an industry association, chamber of commerce, international trade centre or provincial government to assemble a group of at least six companies on whose behalf a program can be arranged.

The mission is usually built around an event such as a national or international trade fair. Participants are responsible for their own transportation, accommodation and living expenses. NEXOS will cover associated program expenses such as meeting rooms, speakers and local transportation.

Canadian firms must be registered with the Trade Commissioner Service to be eligible to participate.

Contact DFAIT's European Business Development Section (REB) for more information about NEXOS.

Program for Export Market Development

The Program for Export Market Development (PEMD) helps Canadian companies enter new markets by sharing the costs of activities that companies normally could not or would not undertake alone, thereby reducing risks involved in entering a foreign market. Eligible costs and activities include market visits, trade fair participation abroad, incoming buyers, product testing for market certification, legal fees for international marketing agreements, air transportation costs of offshore company trainees, product demonstration costs and other costs necessary to execute a market development plan. Activity costs are shared on a pre-approved, 50/50 basis.

The PEMD refundable contribution ranges from $5000 to a maximum of $50 000. Preference is given to companies with fewer than 100 employees for a firm in the manufacturing sector and 50 in the service industry, or with annual sales between $250 000 and $10 million. Other components of the program include international bid preparation (Capital Projects Bidding) and, for trade associations, developing international marketing activities for their membership. For additional information, visit http://www.dfait-maeci.gc.ca/pemd or call 1-888-811-1119.

Virtual Trade Commissioner

The Virtual Trade Commissioner (vTC) is an on-line service offered by Canada's Trade Commissioner Service of the Department of Foreign Affairs and International Trade. Through a personalized and password-protected Web page, vTC-registered Canadian exporters will receive timely and relevant information on contacts and business opportunities in targeted foreign markets. The vTC offers registered users direct on-line access to market information, including market reports, business news, events and business leads related to the companies' industry sectors and markets of interest. Users can request services on line from a trade commissioner responsible for the industry sector in their target markets. They will also automatically receive new information as it becomes available. Canadian exporters can register for a Virtual Trade Commissioner at http://www.infoexport.gc.ca.

PRIVATE-SECTOR CUSTOMERS

Key customers for nutraceutical and functional food products include pharmacies, grocery stores and health food stores. Currently, there are 287 government authorized privately run pharmacies throughout the country. Furthermore, Danish pharmacies are organized in such a manner as to provide equal access to prescription and non-prescription drugs throughout all urban and rural areas. In October 2001, Denmark liberalized regulations regarding the distribution of over-the-counter (OTC) medicinal products, including nutraceuticals and functional foods, thereby permitting their sale at as many as 1700 different retail outlets (predominantly grocery stores) around the country.

Consumer preferences in Denmark vary according to demographic. Older citizens are more likely to purchase multivitamins, vitamins and fish oil products while younger generations are more apt to consume energy drinks and tonics.

PUBLIC-SECTOR CUSTOMERS

Government Organizations

Announcements of public tenders are published in the Supplements to the Official Journal of the European Communities. Tender documents are normally published in Danish, with some commentary in English. The Tenders Electronic Daily Web site ( http://ted.publications.eu.int ) is an excellent resource for information on EU member government contracts.

Government Procurement Regulations

Denmark is a signatory to the World Trade Organization's Government Procurement Agreement. Canadian firms are eligible to bid on an equal basis with Danish and other firms for contracts over $200 000. Danish government procedures give consideration to environmental conservation. Denmark does not maintain lists of suppliers. Using a local agent is not necessary in order to make a bid, but it is advisable.

MARKET LOGISTICS

Channels of Distribution

In 2001, Denmark liberalized regulations regarding the distribution of OTC medicinal products. This opened up the market to other retail formats and gave consumers more choice.

Vitamins and dietary supplements are sold primarily in para-pharmacies/drugstores, which held a 36% market share in 2001, according to Euromonitor. Other retail outlets also held significant market shares: grocery stores, 29%; chemists/pharmacies, 22%; and health-food stores, 10%. Direct sales accounted for the remaining 3% of sales.

Drugstores and para-pharmacies are stores that sell OTC medicine but not state-regulated prescription drugs. These retailers led 2001 sales of vitamins and dietary supplements, according to Euromonitor. Matas has enjoyed solid growth in the last five years and its private-label products are performing quite well.

Supermarkets have only recently begun to allocate more shelf space to vitamins and dietary supplements, but are finding it to be profitable. Two supermarket retailers, FDB and ISO, have introduced lines of private-label products. Private-label sales are expected to increase as other large food retailers attempt to duplicate their success.

Pharmacies are hoping to meet the increased competition from other retailers with greater focus on educated personnel, providing health information and product knowledge. While they are losing ground to other retail formats, with their 22% market share in 2001 they remain strong. Pharmacists can be a very important channel for functional foods and innovative dietary supplements. Furthermore, pharmacists can provide consumers with important information about the health benefits of products, information that is not permitted on packaging or in advertising.

Health-food stores are another important channel for nutraceuticals and functional foods. They tend to stay away from other forms of OTC medicines, preferring to focus on natural and organic products. Their customer base tends to be well-informed, athletic and will buy value-added products. Health-food stores are always looking for innovative products that meet the needs of their demanding clientele.

Direct Sales

Nutraceuticals can be sold via the Internet by both pharmacies and other stores either in Denmark or abroad. Nutraceuticals sold via the Internet are normally sent via post. Danes are permitted to buy products abroad via the Internet, if the following requirements are met:

the product is for personal use and is used for prevention or treatment of an illness;
the product is sold by a pharmacy or another store that is legally able to sell medicinal products to consumers;
the product is sent from a land that is a member of the European Union or included in the EEA agreement (note, the address of the Internet retailer and the shipping address do not necessarily have to be the same); and
the medicinal product does not contain narcotic drugs, psychotropic substances or substances included in Danish doping legislation.

Distributors and Wholesalers

When introducing a product to the Danish market, exporters are advised to utilize the services of Danish wholesalers and distributors who are legally bound to ensure that all imported products adhere to Danish/EU food regulations.

When seeking the services of a distributor or wholesaler, exporters should consider the relationship that these individuals have with local governments, buyers and banks; the condition of their facilities; and their willingness and ability to keep inventory. Canadian producers are advised to review the provisions of Danish/EU law with a qualified lawyer before entering into an agreement with a prospective partner.

Agents and Sales Representatives

Agents are another effective means of introducing new products to the Danish market. While agents solicit business and enter into agreements on behalf of the exporter, they do not take ownership over the products they sell.

An exporter must weigh a number of factors when selecting an agent, including:

region(s) covered by the agent (some agents may also cover other Scandinavian countries, especially Sweden);
reputation;
product knowledge;
experience in handling the exported product;
commission to be paid;
what (if any) after-sales service is provided;
track record; and
size and quality of the agent's staff.

These attributes can best be assessed during a visit to Denmark. Manufacturers should also ensure that responsibilities are clearly defined before entering into a long-term relationship.

Market-entry Considerations

Suggested Business Practices

On first impression, Danish business culture can seem quite formal. Danes shake hands upon arrival and departure. Business appointments always need to be made well in advance and it is considered very rude to be late.

Danes work shorter business hours and take longer vacations than Canadians, hence, they place a greater emphasis on efficiency and punctuality. They value their leisure time and are very concerned with the balance between work and "life". In general, they tend not to appreciate certain business practices that can be quite common in Canada, such as breakfast meetings or weekend management retreats. Virtually all Danish business people have a good working knowledge of English. Interpreters are almost never needed in face to face meetings. Translation services may be necessary when preparing, signing or reading legal or technical papers.

Canadian producers are strongly advised to attend trade fairs in Denmark and other European countries (see Promotional Events). The trade fairs will give Canadian producers who are unfamiliar with Danish and European markets a sense of the business culture and the different ways in which products are presented and marketed.

Import Regulations

Duties and Taxes

As an EU member, Denmark follows the TARIC system, which applies duties to all imports from non-EU countries. EU/Danish import regulations, duties, and tariff rate quotas serve to limit the range of foreign products entering the market while protecting domestic industries.

According to EU regulation, a value-added tax (VAT) is levied in the country of final destination. The VAT rate is 25% for imports as well as domestically produced products. For imports, the VAT is collected at the time of customs clearance on the total value of the import including freight, insurance and duty.

Local Standards, Certificates or Registrations

The European Parliament approved legislation on March 13, 2002 to harmonize OTC vitamin regulations and to ensure that vitamins are properly tested for safety and labelled before they can be marketed in the European Union.

Vitamin and mineral supplements can be classified as either a food supplement or a drug, depending on the number and volume of nutrients contained in the product. If the maximum nutrient value is exceeded, the product will be classified as a drug. If one nutrient in a combined product is over this limit, the entire product is deemed to be a drug. A list of maximum values for each nutrient as a dietary supplement can be found at the Danish Medicines Agency Web site: http://www.laegemiddelstyrelsen.dk/en/products/herbal/
vitamins/vejledning5_eng.asp#.

Vitamin and mineral products classified as drugs must be authorized by the Danish Medicines Agency. Only recognized nutrients are allowed as active substances and it is not possible to mix them with herbals or other substances.

Vitamins and minerals that are not classified as drugs need to be approved by the Danish Veterinary and Food Administration. Products need to adhere to minimum nutrient values and be deemed nutritionally relevant. It is possible to mix this class of vitamin and mineral products with food ingredients and herbals. Probiotic bacteria cultures are not accepted as food supplements as they have a direct nutritional function.

Herbal products can also be classified as either drugs or food supplements, depending upon the safety and established use of the product, the veracity of documentation and claims made about the product. Health or functional claims are usually not allowed for food supplements.

Shipping Documents

All products that are exported to Denmark must be accompanied by a standard set of shipping documents. Additional documents may expedite the processing of goods at the Danish border, but due to the complexity of Danish/EU regulations, Canadian exporters should request any additional information from the importer prior to shipping. Canadian exporters are advised to use the services of a Danish customs broker, importer, agent or distributor to ensure that all essential documentation is prepared correctly and arrives with the shipment. All documents should be completed in both Danish and English to avoid unnecessary delay.

Commercial Invoice

The commercial invoice serves as a bill to the buyer from the exporter and must accompany every shipment to Denmark. Invoices should be thoroughly checked, since any error or omission can result in delays, fines or even confiscation. Invoices must include the following information:

place and date of issue;
names and addresses of importer and exporter;
detailed description of the merchandise, including identifying marks, quantities (in units customary to international trade), numbers and varieties;
method of shipment;
name, title and signature of responsible officer;
all insurance and freight charges;
shipper's invoice number; and
customer's order number.

Exporters should consult with their customs broker to determine how many copies of the commercial invoice should be sent with each shipment, since the number required varies according to the product being shipped. Any promotional information should also be included with the commercial invoice.

Export Declaration Form (Form B-13)

Export shipments valued at $2000 or greater must be accompanied by an Export Declaration Form. Although exporters are technically responsible, agents, brokers or carriers typically complete and submit the form on behalf of the exporter.

Packing List

A packing list is necessary when multiple packages are shipped, unless the commercial invoice provides the required information. This list should include:

the number of packages within one case;
the net, gross and legal weights of each case, and of the total shipment; and
the volume of individual packages, as well as of the shipment as a whole.

At least four copies of the packing list should be included in any shipment, depending on the product being shipped.

Bill of Lading

The bill of lading is the shipper's recognition of receipt of the shipment. Each shipment may contain a set of bills of lading, one copy of which should be kept on file, while other copies are sent to the importer and customs broker. The bill of lading should include:

description of the product(s);
weights and measurements of the packages and their types;
ports of origin and destination;
names and addresses of shipper, importer and customs broker;
any freight or other charge incurred;
number of bills of lading in the full set; and
carrier's acknowledgment of receipt "on board" of the goods for shipment.

Depending on the product, it may be necessary for exporters to include storage temperature and other storage requirements on the bill(s) of lading.

Certificate of Origin

A certificate of origin verifies that the goods originate in Canada, and are therefore subject to all duties or taxes that apply to Canadian products.

Packaging and Labelling

It is recommended that Canadian exporters examine both Danish and EU regulations regarding packaging and labelling standards. All imported food labels must include:

name and address (either of the producer, packaging establishment or sales company)
product name;
product description;
expiry date and any storage requirement;
product's country of origin;
alcohol content, by volume (when applicable);
manufacturer's lot or batch number;
nutritional information;
list of ingredients and weights in metric units; and
list of additives, preservatives or colouring used.

The labelling language must be Danish. Danish stick-on labels can be used, in addition to English or French labels, and must be applied prior to retail sale or sale to catering establishments.

Novel Foods

Novel foods are foods not previously consumed in significant quantities within the European Union. New combinations of ingredients may also be considered novel. Novel foods can be sold in Denmark after receiving EU certification. The novel food category includes genetically modified organisms.

Organic Products

The Danish Ministry of Agriculture, Food and Fisheries has developed the Ø logo as a guarantee to consumers that final processing and packaging of the organic product being sold was carried out by a Danish company and approved by the Danish government. Imported products are typically not allowed to display the Ø logo. As a result, organic food imports are shipped to Denmark in unprocessed or in bulk form and are then further processed and packaged in Denmark.

Authentication of Documents

Documents that need to be authenticated, such as certificates of sale and letters authorizing a local agent or importer to act on the exporter's behalf, must first be notarized in Canada. Exporters can have the notarized documents authenticated, at no cost, by sending them to the Department of Foreign Affairs and International Trade, Authentication and Service of Documents (JLAC).

Export Credit Risks, Restrictions on Letters of Credit, Currency Controls

Denmark implements no restrictions on letters of credit or currency controls. Generally, the method of payment is a matter for negotiation between the individual supplier and importer. Usual practice is for payment to be made by terms of a letter of credit for 30-60 days. In cases where distribution arrangements are concluded, exporters are advised to prepare a contract detailing all major points of agreement, rights and responsibilities. Foreign exchange bank delays are zero to one month.

PROMOTIONAL EVENTS

BioFach: World Organic Trade Fair
February 19-22, 2004 (Annual)
Nuremberg, Germany

Organizer:
BioFach
NürnbergMesse GmbH
Messezentrum
D-90471 Nürnberg, Germany
Tel.: (49-0-911) 8606-8648
Fax: (49-0-911) 8606-8645
E- mail: besucherinfo@nuernbergmesse.de
Internet: http://www.biofach.de

Natural Products Europe and Organic Products Europe
April 4-5, 2004 (Annual)
London, England

Organizer:
Full Moon Communications
58 High Street
Steyning, West Sussex BN44 3RD
United Kingdom
Tel.: (44-0-1903) 817300
Fax: (44-0-1903) 817310
E-mail: rbines@naturalproducts.co.uk
Internet: http://www.naturalproducts.co.uk

Natural Products Expo-Europe
June 16-17, 2004 (Annual)
Amsterdam, The Netherlands
Associated conference June 15-17, 2004

Organizer:
Penton Media Europe
Worton Road 288-290
Isleworth TW7 6EL
United Kingdom
Contact: Katharine Toohy, Sales
Tel.: (44-0-208) 232-1600
Fax: (44-0-208) 232-1625
E-mail: katharine.toohy@pentoneurope.co
Internet: http://www.expoeurope.com

Hi Europe 2004
November 16-18, 2004 (Biennial)
Amsterdam, The Netherlands
Health ingredients and dietary supplements show

Organizer:
CMP Information
PO Box 200
3600 AE Maarssen, Netherlands
Tel.: (31-346) 559-444
Fax: (31-346) 573-811
E-mail: Fi@cmpinformation.com
Internet: http://www.hi-events.com

KEY CONTACTS AND SUPPORT SERVICES

Canadian Government Contacts

Canadian Embassy in Denmark Kirsten Bernikowsgade 1
1105 Copenhagen K, Denmark
Contact: Bernadette Luscombe-Thomson
Tel.: (45-33) 48 32 00
Fax: (45-33) 48 32 21
E-mail: bernadette.luscombe-thomson@dfait-maeci.gc.ca
Internet: http://www.canada.dk

Agriculture and Agri-Food Canada
930 Carling Ave., 10th Floor
Ottawa, ON K1A 0C5
Contact: Sylvain Wilson, Senior International Market Development Officer
Tel.: (613) 759-7726
Fax: (613) 759-7506
E-mail: wilsons@agr.gc.ca
Internet: http://www.agr.gc.ca

Canadian Commercial Corporation
50 O'Connor St., 11th Floor
Ottawa, ON K1A 0S6
Tel.: (800) 748-8191 or (613) 996-0034
Fax: (613) 995-2121
E-mail: info@ccc.ca
Internet: http://www.ccc.ca

Canadian Food Inspection Agency (CFIA)
59 Camelot Dr.
Nepean, ON K1A 0Y9
Tel.: (613) 225-2342
Fax: (613) 228-6653
E-mail: cfiamaster@agr.gc.ca
Internet: http://www.cfia-acia.agr.ca

Department of Foreign Affairs and International Trade (DFAIT)
125 Sussex Dr.
Ottawa, ON K1A 0G2
Internet: http://www.dfait-maeci.gc.ca

Authentication and Service of Documents (JLAC)
Tel.: (613) 992-6602
Fax: (613) 992-2467

European Business Development and Connectivity Initiatives (REB)
Contact: Bob Rutherford, Deputy Director, European Business Development
Tel.: (613) 995-6439
Fax: (613) 944-1008
E-mail: robert.rutherford@dfait-maeci.gc.ca

Market Research Centre (TMR -- formerly TCM)
Contact: Sean McLean, International Market Analyst
Tel.: (613) 996-0688
Fax: (613) 943-1103
E-mail: sean.mclean@dfait-maeci.gc.ca

Market Support Division (TMM -- formerly TCM)
Contact: Rick Winter, Trade Commissioner
Tel.: (613) 995-1773
Fax: (613) 943-1103
E-mail: rick.winter@dfait-maeci.gc.ca

Northern Europe Division (REN)
Contact: Norma Mickleburgh, Desk Officer
Tel.: (613) 992-7001
Fax: (613) 995-6319
E-mail: norma.mickleburgh@dfait-maeci.gc.ca

Tariffs and Market Access Division (EAT)
Tel.: (613) 992-2177
Fax: (613) 992-6002 or (613) 944-4840

Export Development Corporation (EDC)
151 O'Connor St.
Ottawa, ON K1A 1K3
Tel.: (800) 850-9626 or (613) 598-2500
Fax: (613) 598-6697
E-mail: export@edc4.edc.ca
Internet: http://www.edc.ca

Agriculture and Agri-Food Canada Regional Trade Contacts

Al McIsaac
St. John's, Nfld.
Tel.: (709) 772-0330
E-mail: mcisaaca@agr.gc.ca

Rollin Andrew
Charlottetown, P.E.I.
Tel.: (902) 566-7315
E-mail: andrewr@agr.gc.ca

Fay Abizadeh
Winnipeg, Man.
Tel.: (204) 983-8622
E-mail: abizadehf@agr.gc.ca

Margaret Bancroft
New Westminster, B.C.
Tel.: (604) 666-3054
E-mail: bancroftm@agr.gc.ca

Janet Steele Halifax, N.S.
Tel.: (902) 426-7171
E-mail: steelej@agr.gc.ca

Sandra Gagné
Montreal, Que.
Tel.: (514) 283-3815 ext. 523
E-mail: gagnes@agr.gc.ca

Jim Atcheson
Regina, Sask.
Tel.: (306) 780-5545
E-mail: atchesonj@agr.gc.ca

Bernard Mallet Moncton, N.B.
Tel.: (506) 452-3706
E-mail: malletb@agr.gc.ca

Wayne Parlee
Guelph, Ont.
Tel.: (519) 837-5824
E-mail: parleew@agr.gc.ca

Lorrie McFadden
Edmonton, Alta.
Tel.: (780) 495-2119
E-mail: mcfaddenl@agr.gc.ca

Canadian Industry Contacts

British Columbia Functional Food and Nutraceutical Network (BCFN)
c/o Faculty of Agricultural Sciences
University of British Columbia
Food, Nutrition and Health Bldg.
2205 East Mall, Room 218
Vancouver, BC V6T 1Z4
Tel.: (604) 822-6920
Fax: (604) 822-5143
E-mail: info@bcfn2.com
Internet: http://www.bcfn2.com

British Columbia Herb Growers Association (BCHGA)
4607 23rd St.
Vernon, BC V1T 4K7
E-mail: membership@bcherbgrowers.com
Internet: http://www.bcherbgrowers.com

Canadian Association of Importers and Exporters
438 University Ave., Suite 1618
Toronto, ON M5G 2K8
Tel.: (416) 595-5333
Fax: (416) 595-8226
E-mail: info@caie.ca
Internet: http://www.importers.ca

Canadian Food Exporters Association
885 Don Mills Rd., Suite 301
Don Mills, ON M3C 1V9
Tel.: (888) 227-8848 or (416) 445-3747
Fax: (416) 510-8044
E-mail: info@cfea.com
Internet: http://www.cfea.com

Canadian Manufacturers & Exporters Association
1 Nicholas St., Suite 1500
Ottawa, ON K1N 7B7
Tel.: (613) 238-8888
Fax: (613) 563-9218
E-mail: deborah.turnbull@cme-mec.ca
Internet: http://www.cme-mec.ca

Canadian Health Food Association 550 Alden Rd., Suite 205
Markham, ON L3R 6A8
Tel.: (905) 479-6939
Fax: (905) 479-1516
E-mail: mdawood@chfa.ca
Internet: http://www.chfa.ca

Food Processors of Canada (formerly Food Institute of Canada)
1600 Scott St., Suite 415
Ottawa, ON K1Y 4N7
Tel.: (613) 722-1000
Fax: (613) 722-1404
E-mail: fpc@foodprocessors.ca
Internet: http://www.foodprocessors.ca

Quebec Agri-Food Export Club
668 Montée Montarville
PO Box 10
Saint Bruno, QC J3V 6B1
Tel.: (450) 461-6266
Fax: (450) 461-6255
E-mail: clubexport@clubexport.ca
Internet: http://www.clubexport.ca

Saskatchewan Nutraceutical Network
105 North Rd.
Saskatoon, SK S7N 4L5
Tel.: (306) 652-2783
Fax: (306) 933-7208
E-mail: info@nutranet.org
Internet: http://www.nutranet.org

Danish Government and Industry Contacts Danish Embassy in Ottawa
47 Clarence St., Suite 450
Ottawa, ON K1N 9K1
Tel.: (613) 562-1811
Fax: (613) 562-1812
E-mail: ottamb@um.dk
Internet: http://www.danish-embassy-canada.com

Danish Consulate in Toronto
151 Bloor St. W, Suite 310
Toronto, ON M5S 1S4
Tel.: (416) 962-5661
Fax: (416) 962-3668
E-mail: danish@tradecomm.com
Internet: http://www.tradecomm.com

Danish Medicines Agency (Læægemiddelstyrelsen)
Axel Heides Gade 1
2300 Copenhagen, Denmark
Tel.: (45-44) 88 95 95
Fax: (45-44) 88 95 99
E-mail: dkma@dkma.dk
Internet: http://www.laegemiddelstyrelsen.dk/

Danish Organic Trade Association (Dansk Økologileverandørforening [Øgruppen])
Udgarden 30, Lading
8471 Sabro, Denmark
Tel.: (45-86) 12 77 66
Fax: (45-86) 12 77 41
E-mail: gruppen@ecoweb.dk
Internet: http://www.ecoweb.dk/gruppen

Danish Veterinary and Food Administration
Mørkhøj Bygade 19
2860 Søborg, Denmark
Tel.: (45-33) 95 60 00
Fax: (45-33) 95 60 01
E-mail: info@vfd.dk
Internet: http://www.vfd.dk

Danish Importers
Coop Danmark A/S
Roskildevej 65
2620 Albertslund, Denmark
Tel.: (45-43) 86 43 86
Fax: (45-43) 86 33 86
E-mail: coop@coop.dk
Internet: http://www.coop.dk

Dansk Cater A/S
Vidalsvej 6
9230 Svenstrup, Denmark
Tel.: (45-96) 37 20 20
Fax: (45-96) 37 20 21
E-mail: info@cater.dk
Internet: http://www.cater.dk

Dansk Droge A/S
Industrigrenen 10
2635 Ishøøj, Denmark
Tel.: (45-43) 56 56 56
Fax: (45-43) 56 56 00
E-mail: info@danskdroge.dk

MATAS A/S Røørmosevej 1
3450 Allerøød, Denmark
Tel.: (45-48) 16 55 55
Fax: (45-48) 16 55 00
E-mail: info@matas.dk
Internet: http://www.matas.dk

Nycomed Denmark A/S
Langebjerg 1
P.O. Box 88
4000 Roskilde, Denmark
Tel.: (45-46) 77 11 11
Fax: (45-46) 75 66 40
E-mail: nycomed@nycomed.dk
Internet: http://www.nycomed.com

Procudan
Bronzevej 1
6000 Kolding, Denmark
Tel.: (45-75) 50 80 00
Fax: (45-75) 50 51 51
E-mail: pro@procudan.dk
Internet: http://www.procudan.dk

APPENDIX

European Community Regulations and Directives

Directive 2000/13/EC lays out the main rules on labelling, presentation and advertising of foodstuffs marketed in the European Union.
Annex II to the labelling directive lists the categories of additives that must be designated by the name of their category, followed by their specific EEC number.
Annex III describes the way of designating flavourings in the list of ingredients.
Directive 95/2/EC: authorization of food additives other than colours and sweeteners
Directive 50/2000/EC: GM additives
Directive 89/107/EEC: general harmonized additives
Directive 94/35/EC: sweeteners
Directive 94/36/EC: colours
Directive 2202/46/EC: dietary supplements

All EC regulations can be downloaded from http://europa.eu.int/eur-lex/en/search/search_lif.html

Exporters might also find the following standards guides useful:

"Traditional Herbal Medicinal Products Directive": http://europa.eu.int/eur-lex/en/com/pdf/2002/
en_502PC0001.pdf
"Restricted or Prohibited Herbal Ingredients": http://www.mca.gov.uk/ourwork/licensingmeds/
herbalmeds/prohibit.pdf
"Guide to What is a Medicinal Product": http://www.mca.gov.uk/inforesources/publications/gn8.pdf

BIBLIOGRAPHY

Print

Commission of European Communities. White Paper on Food Safety. January 2000.

Dun & Bradstreet. Exporters' Encyclopaedia. "Denmark," 2002.

Espicom Business Intelligence. World Pharmaceutical Markets-Denmark. July 2002.

Euromonitor. The Market for Over The Counter Healthcare in Denmark. June 2002.

Freedonia Group. World Nutraceuticals to 2006. June 2002.

Natural Food Merchandiser. "Boomers Buying Nutraceuticals," February 2002.

Stat-USA. Denmark Country Commercial Guide FY 2003. July 19, 2002.

Electronic

Canada. Agriculture and Agri-Food Canada. "Functional Foods and Nutraceuticals," December 14, 2001. Downloaded from http://www.agr.gc.ca/food/nff/enutrace.html on October 18, 2002.

------. "At a Glance: Denmark," May 2002. Downloaded from http://ats.agr.ca/stats/factsheets/denmark-e.htm on February 25, 2003.

Just-food.com. "EU: Committee calls for food additive safety review." Downloaded from http://just-food.com/news_print.asp?art=53304 on February 22, 2003.

------. "WORLD: Functional food continues to dominate producers' strategies," February 26, 2002. Downloaded from http://just-food.com/news_print.asp?art=50478 on March 3, 2003.

------. "EU: Ministers reach agreement on GM labelling," November 29, 2002. Downloaded from http://just-food.com/news_print.asp?art=52487 on March 3, 2003.

------. "EU: Byrne GM move blocked by EU Member States," February 23, 2003. Downloaded from http://just-food.com/news_print.asp?art=53304 on March 3, 2003.

Nutraingredients.com. "Victory for Supplements Industry in European Parliament," October 25, 2002. Downloaded from http://www.nutraingredients.com/news/news.asp?id=5754 on October 25, 2002.

------. "Tesco Makes Move in Healthcare Market," November 12, 2002. Downloaded from http://www.nutraingredients.com/news/news.asp?id=5851# on November 12, 2002.

------. "European Sports Nutrition Enters Mainstream Market," November 13, 2002. Downloaded from http://www.nutraingredients.com/news/news.asp?id=5858# on November 13, 2002.

United States. Department of Agriculture. "Denmark: Food and Agricultural Import Regulations and Standards Country Report 2001." Downloaded from http://www.fas.usda.gov/gainfiles/200109/125681814.pdf on February 25, 2003.

------. "Denmark Exporter Guide Annual 2002." Downloaded from http://www.fas.usda.gov/gainfiles/200210/145784090.pdf on February 25, 2003.

United States. International Trade Administration. "Supplements Go International," 2002. Downloaded from http://www.ita.doc.gov/exportamerica/Volume%202/
April%202001/nfc_DietarySupp.htm on October 31, 2002.

World Health Organization. Regional Office for Europe."Country Profiles: Denmark," 2003. Downloaded from http://www.who.dk/pharmaceuticals/Topics/
Overview/20020430_1 on October 10, 2003.

OTHER REFERENCE MATERIAL

Useful Internet Sites

Agriculture and Agri-Food Canada. Agri-Food Trade Service: http://ats.agr.ca

Functional Foods and Nutraceuticals: http://www.agr.gc.ca/food/nff/enutrace.html

Biotechnology Regulatory Atlas: http://www.dti.gov.uk/bioguide

Canadian Food Inspection Agency: http://www.cfia-acia.agr.ca

Danish Organic Links: http://www.ecoweb.dk

Danish Plant Directorate: http://www.plantedir.dk

Danish Veterinary and Food Administration: http://www.vfd.dk

Department of Foreign Affairs and International Trade: http://www.dfait-maeci.gc.ca

EU Council Regulations: http://europa.eu.int/eur-lex

Europa. The European Union On-Line: http://europa.eu.int/index_en.htm

European Network for Scientific Research Co-ordination in Organic Farming: http://www.cid.csic.es/enof/index.html

ExportSource: http://exportsource.gc.ca

Facts on Danish Organic Farming: http://ecoweb.dk/english/tal/2ba.htm

InfoExport: http://www.infoexport.gc.ca

1. There is no consensus as to what constitutes the nutraceutical product portfolio. As a result, estimates of market size vary according to the source. For the purpose of this report, the term nutraceutical refers to vitamins, dietary supplements, minerals and herbal extracts. Functional foods (e.g. probiotic yogurt drinks, sea plants) are treated separately. Estimated values are stated so that the reader may have a general sense of the market size in relation to other food and beverage products. These values should not be construed as exact measurements.

2. All monetary amounts are expressed in Canadian dollars, unless otherwise indicated. The conversion rate to Canadian dollars is based on IDD Information Services, Tradeline, March 2003.

3. The European Union is built on an institutional system that is the only one of its kind in the world. EU member states delegate sovereignty for certain matters, including international trade and commerce, to independent institutions representing the interests of the Union as a whole, its member countries and its citizens.

Date Modified: 2003-12-06

Important Notices

Market Information Europe