MINUTES OF THE MANAGEMENT COMMITTEE
MEETING
on 21 march 2003
The following Full or Deputy Members attended :
GERMANY : MMr. Peter BRAUN, Hans KOPSHITZ
AUSTRIA : Mr. Herbert HOFER
BELGIUM : MMr. Alphonse DUYCK, Marc GABRIELS
DENMARK : Mr. Jørgen DREYER
FRANCE : Mr. Pierre Devineau
IRELAND : Mrs Martina DUFFY MOTZ
Mr. Colin O’ CARROLL
ITALIE : Mrs Francesca RICCI, Mr. Mario GRAZIANI
United-Kingdom : Mr. Andrew LEACH
SWITZERLAND : Mr. Alois MÜLLER
These minutes were approved.
The Management Committee approved the 2002 accounts (see attached document).
Expenditure amounted to 10 081.80 € for a forecast of 10 300 €.
Income amounted to 9 538 € for a forecast of 10 300 €. One national association has not yet paid its subscription.
The Chairman presented the 2003 budget (see attached document), which is considerably more than the previous year, taking into account:
The 2003 budget, therefore, amounts to 22 600 €. This budget was approved by the Management Committee, with the exception of the representative of the Belgium association who abstained.
It was agreed that the functioning rules for the Technical Committee and the use of its specific budget should be specified during the Management Committee meeting of 13 June 2003.
The Management Committee proposed the renewal of the 2003 contribution system, that is to say 50 % of the budget covered by a fixed contribution of 753.33 € by association member and 50 % of the budget covered by a proportional contribution varying according to the volumes produced by the members of each national association.
Germany Overall, the year 2002 was satisfactory. In 2003 consumers’ interest in candles has remained steady, but distribution does not accept any increase in prices, which is leading to reduced margins. In fact, all raw material prices and various industrial costs are rising and cannot be passed on.
France As in Germany and the other European countries, the industry is confronted by an expansion in distribution with ever-greater pressure on prices and increased imports. In this context turnover is maintained but margins are being eroded.
Switzerland Consumption is stable with, however, a rise in sales of scented candles and rustic candles.
Distribution is concentrated with a single distributor representing 70 % of the market.
Austria The Austrian market is similar to the German market with comparable problems. Five distributors represent 70 % of the market.
In addition, German manufacturers are increasingly present on the Austrian market.
Ireland We also note a tightening of margins with imports of low-priced products, in particular from China. However, we observe the development of well-marketed quality products.
It should also be underlined that the Irish distribution system, unlike that of other European countries, has very high logistics costs.
Ireland’s rate of growth is 10% with inflation at 5%, which is translated by high interest levels.
Italy Italy is characterised by three different markets: religious, cemetery and home, with, up until now, manufacturers specialising in each of these specific markets.
The religious and cemetery market is marking a steady downward trend and specialised manufacturers on these markets are now becoming interested in the home candle market with products whose quality does not always correspond to this sector.
Consumers of novelty candles, who have become exacting, buy quality candles, which is leading to an increase in stocks of candles that are not adapted to demand.
This market trend towards greater demand for quality products justifies the considerable interest in the work of the European association in favour of quality standards.
Belgium Distribution is very strong in Belgium with, as a result, considerable pressure on manufacturers who are seeing greatly weakened profitability.
Among the problems encountered by firms, we note difficulties in the supply of packagings within time frames and increased insurance costs.
United Kingdom The year 2002 was marked by the disappearance of the Company PRICE Candle, which is now just a trademark.
The market is characterised by an increase in novelty candles and scented candles, and an increase in imports of low-price candles.
The industry is going through a difficult period with a decline in margins. In this context, the objective must be to develop and highlight quality.
Denmark The volumes sold have risen slightly, in particular for novelty candles and scented candles. Consumer interest in quality products is growing.
On 6 February 2003 the European Commission Scientific Committee on Toxicity, Ecotoxicity and the Environment (CSTEE) published a report on potential health risks linked to the use of lead in candle meshes.
The CSTEE underlines that the lead contained in candle meshes represents a health risk.
This information has been taken up by the media in some countries whilst, generally, lead is no longer used in candle meshes by manufacturers who are members of the European association.
The Management Committee recommends a positive reaction to this issue and proposes that the European association should broadcast a press release on its Web site indicating that the firms that belong to the European association have decided to no longer use meshes containing lead.
The Technical Committee is responsible for preparing this press release that will be submitted for the approval of the General Meeting in June 2003 and will be disseminated by the national associations. It will be specified that it is a voluntary decision by European candle-makers.
The Management Committee proposed that the Technical Committee should examine the timeliness and feasibility of anti-dumping action targeting low-price imports from China. However, it considers that it is a difficult issue that requires serious and on-going action by the World Trade Organisation.
On the other hand, it is highly probable that distribution will not support the industry’s action in respect to this issue.
The Management Committee read the guidelines relating to requirements regarding candle safety published by the Finnish Consumer Agency, applicable since 1 January 2003.
It judged this document to be particularly interesting for the entire profession.
It proposed that the Technical Committee should conduct a brainstorming session for the adoption of these guidelines at the level of the European association.
The Chairman reported to his colleagues on the latest progress in respect to this issue.
It emerges that it is proving difficult to set up an independent European association to manage the candle quality control system, mainly for budget reasons.
Taking into account the correct functioning of the RAL system, consideration is being given to the possibility of developing co-operation between the European association and the German association so that the German quality system can become European.
The Management Committee has given its agreement for the continuation of work in this direction with RAL.
The Management Committee wishes to thanks the Technical Committee members for their work during the past financial period, which has enabled the Management Committee to have at its disposal reports by major figures in the profession whose competence it underlined.
The Management Committee unanimously proposed to entrust the Association’s Chairmanship for the two next financial periods to Mr. Herbert Hofer.
Mr. Herbert Hofer thanked his colleagues for their expression of trust.
The Management Committee proposed that the three Vice-Chairmanships for the 2003/2005 financial period should be entrusted to Messrs. Colin O’Carrol, Mario Graziani and Aloïs Muller.
The national associations are invited to circulate the programme and registration file to their members.
The Technical Committee is requested to make proposals to the Management Committee on:
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