Food

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Food Beverage Markets
. . . . A world of opportunities
Literally!
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• Global Trends and Opportunities
• Wide ranging but common threads
• Differentiation, nutrition, convenience, quality,
  safety
• Focus
• Established and new markets
• Traditional and new products
• Domestic market , often forgotten
• Successful Market Entry must-haves
• Diversity, innovation, food safety
• Quality, reliable supply, competitive pricing,
  something new
• An export plan, invest in relationships, follow up

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North East Asian Market
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North East Asia - Regional Market Trends

• Japan - growing importer (mainly of Australian
  products for over 30 years)
• Korea - Dynamic, entrepreneurial business
  sector
• China Income is rising
• Hong Kong one-stop-shop superstore outlets
  emerging
• Taiwan - Large affluent population, heavy
  reliance on import
• Vietnam - Purchasing power is improving.

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North East Asia - Current Opportunities

• Dairy / cheese UHT milk, milk powder, value
  added dairy ingredients, both processed and fresh
  cheese
• Organic foods Strong demand in Japan and Korea
• Wine - Demand for low-end to medium wines in
  China and Vietnam Japan, Hong Kong, Taiwan
  looking for mid range to premium wines
• Meats strong demand good future potential.
• Fresh fruit vegetables especially for
  off-season supply
• Lobsters Must to have items in Chinese
  Japanese banquets
• Packaged food both price-competitive and
  premium products
• Health Food - Anything good for health

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North East Asia - Key Market Entry Factors

• Marketing materials and price information are
  essentials
• Packaging preferences/ language labelling
  requirements
• Understand the market cultural differences
  prior to visiting
• In-Market visit to build the relationships
• Competitors are getting noisier
• Trade shows useful, sampling events sometimes a
  less expensive route to market
• Participate in Austrade organised Australia
  theme promotion in major retail outlets

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South East Asian Market
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South East Asia - Regional Market Trends

• Big retailers are coming if not already there
• Private label demand from distributors
  retailers
• Top end food service has struggled but is
  returning
• Healthy eating /GMO /organic - increasing in
  awareness
• Functional foods / nutriceuticals and supplements
• Convenience / 24x7 shopping sweeping through
• Emerging coffee drinking culture
• Do not discount micro purchase market
• Stronger competitiveness promotion
• Local Chinese business communities influential
• Competition from China
• Smaller packs preferable

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North East Asia - Current Opportunities

• Constant demand for old favourites
• dairy - UHT milk/ milk powder/ cheese/ cream /
  butter /yoghurt
• meat - beef / lamb / small goods
• seafood - shellfish especially popular
• fruit vegetables
• Wine
• budget to medium end popular red outsells white
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• Snacks/comfort foods
• Soy based products
• Juice
• Cereals

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North East Asia - Key Market Entry Factors

• Product Sampling Promotion vs Tradeshow vs Full
  Immersion
• Do your homework
• Know you unique selling proposition
• Local partner selection crucial
• Know registration requirements
• Packaging essential
• Flexibility/Patience/Haggling mentality
• Export is not waving goodbye to your product when
  it leaves
• Other options - MUL/JVs/Franchise
• Relationships and networks paramount
• Who you know comes before what you know
• Favour system
• Repeat visits by same person

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Pacific Markets
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Pacific - Regional Market Trends

• Microcosm of the world from advanced to
  developing markets.
• Proximity and frequency of flights and cargo
  vessels
• Willingness to source regionally to reduce
  delivery time and costs
• Experimenting and adopting foreign cuisines and
  tastes.

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Pacific - Current Opportunities

• Fresh Fruit and Vegetables (seasonal)
• Wine and beer to tourism driven economies
• Grocery Lines cereal, pasta, condiments
• Dairy products (UHT Milk,Specialty Cheese)
• Meal solutions/meal replacements frozen prepared
  meals /ethnic foods
• Confectionery and Snacks
• Fruit Juice
• Beef and Lamb cuts to the tourism industry
• Processed tinned meat and fish

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Pacific - Key Market Entry Factors

• Identify most appropriate distribution channels
  for the product
• Be prepared to export small quantities at regular
  intervals
• Readily available export price list
• Price competitiveness
• Visit regularly develop personal relationships
  with customers
• Follow up enquiries promptly

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Europe
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Europe - Regional Market Trends

• Fruit veg - Counter-seasonal supply, 52 week
  availability, organics.
• Meat - Reducing red meat consumption (BSE!).
• Groceries - Supermarkets taking over
  distribution, changing lifestyles, new tastes.
• Wine - Accessible to all, no longer just for
  special occasions in non-Mediterranean countries.

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Europe - Current Opportunities

• Fruit Premium apples, stone fruit (cherries
  nectarines), late navels
• Meat Quality cuts, venison, game meat
• Groceries Snack, gourmet, health, private label,
  confectionery, functional foods, olive oil
• Wine Entry level to premium, pallet to container

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Europe - Key Market Entry Factors

• Select a European market
• Each is different analyse benefits and issues
• Research the market dynamics
• Visit the country, attend a European trade fair
• Decide how your product will be positioned
• Mass or niche market, high or low end?
• Identify suitable partners
• Talk to lots of companies, get referrals from
  retailers, consider consolidation with other
  producer.
• Use export facilitation services/agencies

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Middle East
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Middle East - Regional Market Trends

• Food service retail in ME (Egypt and AGCC) worth
  US 20 bn expected to ? over next 2 years
• Per head annual spending 1,143 (UAE), 383 (KSA)
  699 (Others), driven by expanding tourism
  sector ? hotels opening in UAE
• Semi ready meals airline catering
• Dairy products (yoghurts, ice-creams)
• Ingredients for food manufacturing
• Saudi Arabia has recently lifted bans on imports
  of offal and whole carcass lamb with spinal cord
• UAE - 85 food items still imported 70 imports
  into Dubai re-exported (considered regional
  gateway)

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Middle East - Current Opportunities

• Meat - Chilled and frozen lamb, mutton, beef,
  offal, meat processing equipment technology,
  abattoir.
• Dairy - Milk powder, butter (bulk), cheeses
  (canned and powdered), ghee, technology and know
  how in cows milking and cheese industries.
• Honey Bees - Bulk and retail pack honey, bees,
  bee breeding technology and know how.
• Processed Foods - canned food, juices, pastas,
  technology and know how in food processing
  industry
• Bulk food materials - Barley, Faba beans, chick
  peas, corn, etc.

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Middle East - Key Market Entry Factors

• Understand bargaining mentality
• Relatively stable product shelf life
• Flexibility in labelling Arabic and English
  requirements vary. Labelling requirements are the
  most exhaustive and detailed.
• Halal certification
• No alcohol or pork derivatives as ingredients
• Obtaining customs approval through potential
  local agent/distributor prior to shipment
• Willingness to undertake initial investment
  cost of product listing, cost of creating shelf
  space, cost of creating brand awareness, etc
• Work hard at building relationships very
  important to get the right local partner

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Americas
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Americas - Regional Market Trends
of World Retail Sales 2002
Source AC Nielsen
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Americas - Current Opportunities

• Natural Products
• Fresh Fruit Vegetables
• Meat Fish
• Specialty Foods
• Ethnic Foods

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Americas - Key Market Entry Factors

• Customs and FDA requirements
• Trademark registration and product liability
  insurance
• UPC barcodes
• Distribution model
• Marketing and promotion
• Research opportunities to understand the market
  be prepared

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YOUR Market - CARICOM
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Your Market - Trends

• Food service retail growing, notable increase in
  local franchises still dominated by foreign MNCs
• Convenience, Semi-ready, home replacement meals
  on the rise
• Meats and dairy products (yoghurts, ice-creams)
• Ingredients for food processing, especially
  non-alcoholic beverages and fruit juices
• Recent moves around the region to reduce food
  prices (milk, chicken etc) will stimulate
  consumption and tendency towards more imports
• Very high existing food import bill but a
  significant portion goes into processing for
  domestic consumption and re-exports (TT, JA
  Bdos considered to be leading actors)

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Your Market - Current Opportunities

• Meat Fish
• Novelty Specialty Foods Beverages
• Processed foods
• Snacks
• Natural Products

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Your Market - Key Entry Factors

• NONE ! ! ! YOU ARE ALREADY HERE. That is your
  advantage.

• BUT. . . . . do not underestimate
• your own consumers!
• your competitors determination to get into YOUR
  MARKET!
• the POWER OF CONTINUOUS PRESENCE and PROACTIVE
  MARKETING
• Your competitors are not!

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Food Beverage Exporters
. . . . Assistance you will require and should
request
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Assistance you will require and should request

• Services Overseas
• Initial assessment of client prospects
• Market Research
• Identification of Contacts
• Appointment programs
• Trade promotions
• Services at home
• Advice on exporting and market selection
• Seminars and Visits by post staff and buyers
• Linking clients to overseas posts and markets

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. . . . Do all you can to . . . expand your
possibilities - - the world is waiting!