a huge share of the market. Stark differences existed with regard to compe-
tition and consumer preferences across the European countries.
Buitoni’s share in Europe’s largest market, Italy, was 7 per cent in 1988.
The market leader by some margin was Barilla with, including subsidiaries
Voiello and Braibanti, a 31 per cent share, more than four times its nearest
rivals, Buitoni and BSN (6 per cent). The Italian market had nearly 200 pro-
ducers and over 600 different types of pasta shapes. Annual per capita con-
sumption of pasta was 25 kilograms. Other rivals of note were Agnesi (4
per cent), De Cecco (3.5 per cent), Amato (3.5 per cent), Divella (2.5 per
cent), Federici (2.5 per cent) and Corticella (2.5 per cent).
One of Nestlé’s first actions was to invest in the expansion of the plant
capacity in Sansepolcro. Nestlé planned to increase its market share. BSN
also had ambitions to increase its market shares, with a target of 10 to 15 per
cent over the coming years. BSN focused on a continued strategy of acqui-
sitions that included the purchase of the Tomadini, Spiga, Ponte, Ghigi and
Mantovano brands. It also owned at that time a 30 per cent stake in Agnesi.
Buitoni was market leader in France of precooked foods (ravioli, can-
nelloni, couscous, paella). Following the acquisition of the brand Davigel,
the company also had a strong presence supplying frozen food to the
restaurant and hotel trades in France. French consumers ate about six kilo-
grams of pasta per year.
In Germany, imports mainly from Italy accounted for around 33 per cent
of the market. The leading German companies were BSB Nahrungsmittel
GmbH (Birkel), Drei Glocken GmbH, and Aldi (the private brand of Aldi,
one of the leading discount retailers). BSB and Drei Glocken together
accounted for 45 per cent of the share of the pasta market. In total, there were
19 German pasta manufacturers. There were also certain types of pastas that
only sold in Germany, one of which was Spätzle, sold mostly in the south-
eastern part. Noodles accounted for over a third of sales in the pasta cate-
gory. On the average, Germans consumed five kilograms of pasta per year.
Since the late 1980s, the Italian market leader Barilla invested extensively
in a pan-European market development effort. The company had realized
that their dominant market position in Italy was threatened by cheap and
lower-quality pasta imports that did not meet the stringent quality stan-
dards of the Italian manufacturers. This was the consequence of the
progress towards the single European market. Barilla’s response was to
globalize and to build the brand across Europe and the US. The company
ventured on an extensive testimonial-type advertising campaign with local
adaptation. In Germany, Barilla advertised pasta featuring Steffi Graf as a
spokesperson; in France, the actor Gerard Depardieu gave a helping hand;
and in Sweden, the commercials starred tennis pro Stefan Edberg. In Spain,
Antonio Banderas and Sharon Stone (a big hit there since the movie Basic
Instinct) touted the pleasures and tastes of Barilla pasta shapes.
When Nestlé took over Buitoni, it was with a view to adding a signifi-
66 Relationship Marketing