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INsight
SUSTA's INsight newsletter is published every two months.

May/June 2008 INsight excerpts

Central America Trade Missions Result in Success
Suppliers Find Success at Gulfood
Opportunities in Korea's Food Service Market
Branded Reimbursement Travel Tips, Part 1: Make the Most of Your Marketing Dollars

March/April 2008 INsight excerpts

January/February 2008 INsight excerpts

Central America Trade Missions Result in Success

From September 23 to October 1, 2007, 13 suppliers of food and beverage products from the southern and western United States traveled to Central America for one-on-one meetings with prospective buyers from the region. During the trade mission to Costa Rica, Panama, El Salvador and Guatemala, over 300 introductions between buyers and sellers were made. Companies from the states of California, Florida, Georgia, Idaho, Texas and Virginia reported a combined total of $295,000 in sales resulting from their meetings with importers and distributors, and anticipate additional sales of more than $4.5 million as their business relationships from the mission develop further.

SUSTA and its sister organization, the Western United States Agricultural Trade Association (WUSATA), sponsored the mission in cooperation with the Foreign Agricultural Service’s (FAS) trade offices in the respective countries. A total of 136 buyers were recruited for the mission, meeting with companies in a tabletop display format in each target city. Before each set of meetings, market briefings were given by FAS in-country staff to educate participants about the respective country markets and the impact of the Dominican Republic-Central America-United States Free Trade Agreement.

Suppliers Find Success at Gulfood

This February, SUSTA sponsored a pavilion for southern U.S. companies to exhibit their products at the Gulfood 2008 show in Dubai, United Arab Emirates. Gulfood, the Middle East’s largest and most important show for agricultural products, has grown tremendously in popularity among southern U.S. companies, who have reported successes from their participation with SUSTA over the past four years.

This year, the SUSTA pavilion included ten company booths, and eight additional companies sent products to be displayed in the SUSTA booth. Participating company representatives reported $7 million in on-site sales with projected sales of over $11.5, an increase of 3,500 percent from last year’s on-site sales of $200,000.

Two SUSTA events in November 2008 offer southern U.S. suppliers more opportunities to meet with buyers from the Middle East, northern Africa and Europe: the GIDA show in Istanbul, Turkey, and HACE in Cairo, Egypt. For more information on these events, please visit www.susta.org/events.

Opportunities in Korea's Food Service Market

In the last ten years, the amount Koreans spend to eat outside the home per month has doubled, so that 46 percent of each Korean’s food expenditures went toward dining out in 2006. This trend is only expected to increase as more of Korea’s 50 million inhabitants face busier lifestyles. Large-scale restaurants under franchise management are growing, as well as the competition from retail outlets offering home meal replacement products.

Consumers’ evolving tastes have changed the recipes and products offered by many Korean restaurants, with more concerns arising about the quality and safety of products. Elevated competition, as well as demand for new and international tastes, has resulted in changes to store designs and recipe concepts for newer restaurants hoping to compete. Korea’s distribution service is also becoming more streamlined, although traditional channels still dominate the market.

On both the restaurant and supply chain levels, this growth of large-scale businesses in Korea translates to a rising demand for imported products. Not only do imported products allow for new recipe opportunities, they also offer capabilities for large volume and more stable pricing. U.S. products are already viewed as high quality and should maintain a strong market share. Ongoing efforts such as the pending Korea-United States Free Trade Agreement will also create opportunities for products that currently face import barriers such as tariffs, volume quotas and food safety regulations.

This June, SUSTA will bring a group of Korean buyers to Atlanta, Georgia, Annapolis, Maryland, and the New York Fancy Food Show to meet with southern U.S. food and beverage companies. For more details, visit www.susta.org/events. To learn more about the Korean food service market, go to www.fas.usda.gov and search Attaché Reports under “Market and Trade Data.” More information on the Korea-U.S. Free Trade Agreement is available at www.ustr.gov.

Branded Reimbursement Travel Tips, Part 1: Make the Most of Your Marketing Dollars

Ever wonder just how much you can do with those marketing dollars you plan to spend on international promotions? There are many ways to make sure your company receives the maximum benefit of participation in MAP Branded. Traveling to promote your products to international buyers is an important part of your Branded marketing efforts. Below are some tips on how your company can follow Branded program requirements and receive reimbursement for your international flights to promotional events. If a Branded company exhibits at an international trade show or participates in approved trade missions, travel expenses such as airfare, lodging, and meals are only eligible for two employees. Travel expenses are not eligible for consultants, importers/distributors, or sales agents. Travel expenses are also not eligible for trips within the United States.

When preparing for travel, keep these tips in mind:
~SUSTA is only able to reimburse Branded participants for lodging and per diem expenses for two days before the show and one day after the show, according to the documentation provided for travel.
~Travel expenses cannot be submitted independently. Expenses must accompany proof that you exhibited at the international trade show. Travel expenses must be accompanied by supporting documentation such as: invoices for booth fees or trade mission fees, photographs of the booth, etc.
~Notify the Agricultural Trade Office (ATO) in the country where you will be traveling at least 45 days prior to departure.

When booking your airfare for a trip for which you will request Branded reimbursement, ensure that your ticket will be eligible by following these guidelines:
~Buy full fare coach/economy class tickets.
~Fly coach/economy seat with a U.S. flag air carrier to and from the overseas destination, in accordance with the Fly America Act. Business or first class travelers must submit a quotation of the coach/economy class fare. The quote must be obtained around the same date the business or first class ticket was purchased. The quote cannot be submitted after the trip takes place.
~Travelers must fly directly to and from the approved trade show destination. If a traveler flies to other non-trade show related destinations or extends the trip before or after the show, a quote must be submitted showing the cost of a coach/economy class fare directly to and from the tradeshow. The quote must be obtained around the same date the ticket was purchased. The quote cannot be submitted after the trip takes place.
~Discounted or “bulk” tickets are not eligible for Branded reimbursement because the ticket cost is not printed on the receipt or does not match receipts submitted with claims.
~If a traveler flies in a class other than coach or to other destinations and a quote is obtained, as detailed above, SUSTA will only be able to pay the amount of the lesser fare.
~Airfare is the only transportation that is eligible for reimbursement. Other transportation, such as taxis, buses, and rental cars, do not qualify for Branded reimbursement.

Look for Part 2 of this article, with important tips for submitting reimbursements for lodging and meals, in our July/August issue of INsight. For more important information about MAP Branded, contact SUSTA’s Branded Department or visit www.susta.org/services/map.html.

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