Challenges For Euro Wholesalers

In Europe's 15 principal markets, drug wholesalers face increasingcompetition, says OTC Distribution in Europe, an Analysis of Structure, Changes and Trends, a new study from James Dudley International. Demands on levels of service they must offer to retailers are rising.

Actions being taken include: national and international mergers, acquisitions and cooperative groupings; vertical integration policies; and, where ownership of retail pharmacy chains is banned, formation of voluntary trading groups for which services provided include marketing, advice, training and private-label brands. To offer a competitive service, wholesalers must meet increasing capital investment demands, which is leading to consolidation and a decline in their numbers.

In France, the UK and Germany, over 70% of the market is controlled by three wholesalers, while in Belgium the top three have 40%. In Spain, with over 100 wholesalers, the share is 31%. Of Italy's 220 wholesalers, the top three hold 28%.