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INsight
SUSTA's INsight newsletter is published every two months.
July/August 2005 INsight excerpts
Forging Emerging Markets in Central America
Mardi Gras Event in Sweden Educates Market, Generates Sales
Director's Corner
Upcoming Events
Connecting with Canadian Buyers Just Got Easier
Proposed Generic Activities for FY-2005
CPMA Toronto: Drivers, Start Your Engines!
Sweet Onions at FruitLogistica
Branded Companies Achieve Success in New Markets
Are You Ready for the Next Fiscal Year?
May/June 2005 INsight excerpts
March/April
2005 INsight excerpts
Forging Emerging Markets in Central America
U.S. exports dominate the Central American market, accounting for 50% of imported foods in several countries, including Costa Rica, El Salvador and Guatemala. While this is good, the future looks even better. Fueled by solid growth in the tourism industry, economic reforms, and trade agreements with the U.S., Central America has emerged as a promising market for U.S. exports. An increase in U.S. chain hotels and restaurants, particularly in Costa Rica and El Salvador, has broadened the opportunity for U.S. exports of a wide range of foods, including fresh, frozen and value-added food products. In addition, over the last three years, Central American nations have outperformed other Latin American regional trade blocs in terms of growth in domestic product.
SUSTA has been working to increase exports from the southern U.S. to Central America through the Central America Foodservice Initiative (www.susta.org/services/gip_cafoodservice.html), a multi-tiered campaign of buyer-seller matching, publicity and promotions targeted at the foodservice and retail sectors. SUSTA has developed relationships with journalists of leading publications in Central America to increase awareness and demand for southern foods among not only consumers but also chefs and importers.
In April 2005, SUSTA introduced visiting journalists from Costa Rica and El Salvador to a sampling of flavors from the south. The journalists from Apetito magazine and the daily newspaper El Diario de Hoy visited San Antonio, TX, where they learned about Tex-Mex cuisine and met with the Texas Restaurant Association, local restaurateurs and culinary author Robb Walsh.
In Louisiana, the journalists attended the French Quarter Festival, where they became acquainted with a wide variety of regional cuisine including Cajun, Creole and Southern home-style. The journalists also visited the John Folse Culinary Institute in Thibodaux, Louisiana, where every year SUSTA trains professional chefs from all over the world in the preparation of authentic southern cuisine featuring ingredients from SUSTA region suppliers. In 2004, SUSTA invited leading chefs from Central America to participate in the 2-week program.
As a result of this educational tour of southern cuisine, a series of articles were published - with a promise of more to follow - in Apetito magazine about southern foods and SUSTA's upcoming trade mission and promotions in Central America. Some of these stories are posted online by the magazine at www.apetitoenlinea.com.
While publicity in the Central American media is an important element to increase awareness and demand for southern products, it is only one component of SUSTA's strategy. SUSTA also has created opportunities for U.S. suppliers to promote their products and meet with potential buyers.
2005 Events in Central America
Menu Promotion (July)
5-star hotels will feature southern products in their restaurants
Trade Mission (August)
U.S. suppliers will meet with buyers in Costa Rica and El Salvador
EXPHORE Trade Show (Sept.)
A SUSTA chef will prepare samples at this show, sponsored by Apetito
To participate in any of the Central America events, email activity manager Victoria Mejia at vmejia@neo.rr.com. Learn more about SUSTA's long-term initiatives at www.susta.org/services/gip_initiatives.html.
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Mardi Gras Event in Sweden Educates Market, Generates Sales
With help from SUSTA , seven southern companies brought a little bit of Mardi Gras to Stockholm in February in an effort to introduce southern foods to the Swedish market. SUSTA held a one-day event targeting leading importers, buyers and media at the Nordic Light Hotel in Stockholm. With the accompaniment of a Cajun band and Mardi Gras decorations, U.S. Ambassador M. Teel Bivens of Texas welcomed the guests and invited them to "take a real taste" of the southern foods prepared with products from the participating companies.
The menu included crawfish pies, oysters Rockefeller, shrimp remoulade, seafood filé gumbo and catfish in Creole sauce. Cajun chef Judith Bluysen, SUSTA Culinary Advisor, discussed the menu and methods of preparation with the participants.
This event had two goals: (1) to educate key market contacts about southern food (Cajun/Creole in particular) and entice them to include the cuisine on their menus or in their stores; (2) to introduce and promote southern U.S. companies to channel partners in the market. Both goals were realized with tremendous success.
The participating companies received excellent exposure as a result of the event and together project sales of almost $900,000 in the coming year. Event participants included Ford's Gourmet Foods (new to market), Reily Foods, Woody's, Tony Chachere's, Chef Paul Prudhomme's Magic Seasoning Blends, McIlhenny, and Texas Longhorn Tortillas (new to market).
The main Swedish television station, TV4, will produce a short piece on Cajun foods using SUSTA-trained Chef Judith Bluysen for their morning program in the coming months.
This event was one part of SUSTA's E.U. Regional Foods Initiative (www.susta.org/services/gip_euregionalfoods.html), a multi-year program promoting southern regional foods in Sweden and other top European markets.
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Director's Corner
SUSTA's use of diverse resources accomplishes an integrated, comprehensive and effective program that services southern companies as well as encourages foreign buyers to utilize SUSTA resources when purchasing southern U.S. food and agriculture products.
We have placed considerable importance and effort on the integration of programs and activities that develop a basis for future promotion and marketing activities, programs and initiatives. Our GEMS and MAP Branded automation projects have allowed SUSTA to utilize state-of-the-art technology and business practices to more effectively identify and focus on industries, companies, product categories and markets that will drive agriculture exports both now and into the next decade.
The Emerging Market Programs (EMP) address our entry into new markets and include research, workshops, training, reverse trade missions, shows, and outreach for both U.S. suppliers and foreign buyers. SUSTA uses the EMP programs for long-term market development of potential emerging markets. SUSTA's MAP Generic program focuses on specific opportunities created by the Emerging Market Programs.
For the upcoming fiscal year (beginning October 1, 2005) we have submitted requests for funding for 55 MAP Generic trade activities, a $300,000 increase in MAP Branded funding, and a new EMP request for the Mexican food sector and diversified agricultural products markets.
The major emphases of our programs are in Europe, North America, Asia and Latin America. The weak dollar has opened opportunities for U.S. products in Europe and other areas that normally purchase goods and services from the European Union. In the September/October issue of INsight, we will be listing the trade and emerging markets activities funded for next year based on the proposals that are listed in this issue. Information about funded upcoming Generic promotions is always available at our website, www.susta.org, in the "Events" section.
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Upcoming Events
International Grocery Expanded Trade Mission
Miami, Florida
September 11-14, 2005
U.S. suppliers are invited to participate in this international grocery event in cooperation with USDA, SUSTA, and SUSTA's sister organizations. Decision makers representing 70 distributors/retailers from over 50 countries will attend the event for private one-on-one meetings with U.S. suppliers of dry grocery goods, specialty foods, snack foods, private label foods, confectionery, and beverages. The event will be hosted by ECRM, a company with over 11 years of experience with buyer/seller conferences. Buyers will be screened by ECRM before the event. SUSTA will co-sponsor a workshop to aid companies with questions pertaining to international business and its processes. Product images and information are loaded into a software program that allows foreign buyers to scan items of interest when they are presented by suppliers. After the conference, ECRM posts a Marketing Recap for each company at a secure online location so that company representatives may access the information and conduct follow-up. Companies may sign up for 20-minute Planning Sessions ($12,500 for two representatives) or 10-minute Power Hall Sessions ($7,500 for two representatives). Costs include meals, accommodations and evening social events. Additional company representatives may attend for $1,500 each. A portion of these expenses is eligible for Branded reimbursement for companies that are in the FY-04 program. Last year's participants shared positive feedback including, "I found the format refreshingly more productive compared to a typical trade show, it is a good forum to make a face-to-face contact between parties, and stands a better chance in materializing contacts into business." For more information on this event, contact John Allen of ECRM at jallen@ecrm-epps.com or (561) 218-3276. You may also contact Lisa Carrillo of ECRM at lisac@ecrm-epps.com or by phone at (909) 941-8228.
Christmas Tree Reverse Trade Mission
North Carolina & Virginia
September 2005
In September, Mexican retail buyers will visit North Carolina and Virginia during a reverse trade mission promoting southern U.S. Christmas trees. This is a follow-up to last year's reverse trade mission and in-store promotion, which educated Latin American nursery buyers and consumers about the growth, handling, shipping, and selling of Christmas trees in the U.S. This July, inspectors will visit U.S. nurseries in advance of the buyers to examine the quality of the trees. The buyers will travel to the SUSTA region in September to tour Christmas tree farms in Virginia and North Carolina and meet with area growers. The buyers, representing major retail chains such as Wal-Mex and Comercial Mexicana, will also attend a seminar in each location to learn about the species and availability of Christmas trees. For more information about this activity, contact Jeff Justice of the North Carolina Department of Agriculture at jeff.justice@ncmail.net. You may also contact Mr. Jim Green of the Virginia Department of Agriculture by email at jim.green@vdacs.state.va.us.
EXPHORE Trade Show
San José, Costa Rica
September 6-8, 2005
SUSTA will showcase products from the southern U.S. at the Expo Hoteles y Restaurantes (EXPHORE) Trade Show in San José, Costa Rica. This event is part of SUSTA's Central America Foodservice Initiative, which seeks to tap into export opportunities presented by the emergence of U.S. chain hotels and restaurants in the region. Information about the initiative is posted at www.susta.org/Services/gip_initiatives.html. EXPHORE is organized by Apetito, a magazine aimed at the Central American hospitality industry. The show promotes the commercial development of the HRI sector in Central America, and attracts owners, executives, chefs and suppliers. Attendees learn about the latest technological advances and the newest products and services available in the industry. Southern U.S. suppliers are invited to send samples to the show for free. A SUSTA chef will demonstrate the use and preparation of the products during cooking seminars at the show. Best prospects include fresh, frozen and value-added food products. Register for this event online at www.susta.org/events. For more information about shipping samples, contact Victoria Mejia at vmejia@neo.rr.com.
Chilean Expo Retail Show
Santiago, Chile
October 11-15, 2005
Chile's supermarket industry reported sales of $4.7 billion in 2003, and trade is expected to increase due to the signing of the Free Trade Agreement between Chile and the U.S. The Santiago metropolitan region, where incomes are higher and the population is more concentrated, provides the greatest demand for consumer-ready food products and imports. Companies are invited to send samples for display in SUSTA's booth for a participation fee of only $250. SUSTA activity managers will oversee the shipment of products to Chile for the show. Best prospects include jams and jellies, prepared frozen foods, snack foods, cookies, crackers, condiments, edible nuts, baked goods, and cereals. View the event flier and register online at www.susta.org/events. For more information, contact Carmen Arjona (ladeptag@sureste.com) of the Louisiana Department of Agriculture & Forestry Mexico Office. You may also contact Ms. Erica Skrine of the Georgia Department of Agriculture via email at eskrine@agr.state.ga.us.
International Business Forum
Beirut, Lebanon
Nov. 28-Dec. 1, 2005
The World Trade Center (WTC)-Beirut will offer a forum for international business leaders focusing on the Middle East and the business opportunities available in the region. As a regional trade hub, Lebanon acts as a gateway for foreign companies that wish to capitalize on the growing income of 300 million consumers in the Middle East. Agriculture, food and beverages have been identified as some sectors on which the forum will focus. Activities will include a conference on trade, briefing seminars on the target sectors, and workshops matching foreign business delegates with Middle Eastern delegates to initiate business contacts. A catalog containing business cooperation proposals and delegate profiles will be distributed to participants before the event. WTC Beirut will offer post-meeting support to companies that need assistance finalizing deals. Application forms are available online at www.wtcbeirut.com. The $500 registration fee will give one company representative access to the conference and seminars, an average of 5 qualified meetings, a listing in the catalog, and all social functions (lunch, dinner, etc.) that are part of the forum. Additional company delegates may attend for $200. Southern U.S. companies that wish to attend may do so under the auspices of the South Carolina World Trade Center for an additional $500. SCWTC will assist with travel arrangements, provide on-the-ground support, trade research and continued support after the event. Contact Anthony Russo at (843) 577-4080 for more information.
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Connecting with Canadian Buyers Just Got Easier
Go South! is making it easier than ever for Ontario and Quebec produce and seafood buyers to connect directly with export-ready suppliers from the southern U.S.
Working with each southern state Department of Agriculture, our in-country consultants for Go South! developed a list of produce and seafood suppliers interested in supplying the Canadian market. This database is now online and buyers can search for suppliers by state, by commodity or both.
To make sure this list is as accurate as possible, companies may go online and check it out. To search listings, visit www.gosouthfresh.com and click on "Trade" under the Fruits & Veggies or Seafood tabs. Enter your state or commodity to find your listing. Please email any changes, deletions or additions to Ms. Sabena Khan at skhan@fayeclack.com.
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Proposed Generic Activities for FY-2005
The activities listed below have been proposed under the Generic program for fiscal year 2005, which begins on October 1, 2005. These activities are managed by the southern state Departments of Agriculture and SUSTA. Dates for the events will be listed on our website at www.susta.org/events at the start of the fiscal year.
These low-cost Generic promotions bring together U.S. suppliers and foreign buyers to promote products from the southern U.S. Companies can participate in some of these activities by attending trade shows or meetings or sending product literature and samples. Some activities include a market research element to aid U.S. suppliers entering new markets.
Canadian Retail Promo.
Caribbean Retail & HRI Program
Chile-Argentina Staves Promo.
Chilean Foodservice Promo.
China Nursery Promo.
China Seafood Exposition
China Value-Added Promo.
Colombia Promo.
Eastern Europe Retail Promo.
European Biomass/Biofuel Initiative
European Horticulture Promo.
European Seafood Exposition (ESE)
Germany Promo.
Hong Kong Foodservice Promo.
Japan Horticulture Display Promo.
Japan Pecan Promo.
Korea Foodservice Promo.
Korean Seafood Initiative
Memphis in May Reverse Mission
Mexico Christmas Tree Promo.
Mexico Foodservice Promo.
Monterrey Business Encounter
Pecans in India
Pecans in Scandinavia
Portuguese HRI Promo.
Russian Federation Food Promo.
South Africa Floriculture Promo.
South Africa Food Promo.
Sweet Onion Promo.
UAE Foodservice Promo.
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CPMA Toronto: Drivers, Start Your Engines!
The 80th annual Canadian Produce Marketing Association (CPMA) Convention took place at the Metro Convention Centre in Toronto, Ontario from May 11-14, 2005. More than 325 exhibitors were on hand to mix and mingle with over 3,500 visitors, including the produce industry's key influencers.
The Go South! team was ready to promote the southern U.S. while engaging the buyers in a little fun. Equipped with two Daytona U.S.A. interactive video game racecars, the two-day trade show was all about NASCAR. Even the produce was a part of the theme as Go South! worked with local independent chain Longo's to build the winner's circle using all 22 Go South! commodities.
The highlight of the booth was our pit crew, which included a winning team of representatives from the south's Departments of Agriculture: John Heffernan from Maryland, Charles Hall from North Carolina, Donna Uptagrafft of Arkansas and Ingrid Rivas of Puerto Rico. Representatives from the Florida Department of Agriculture Bureau of Seafood and Aquaculture Marketing and the Virginia Marine Products Board attended with their own booths.
To see photos from the show, visit www.gosouthfresh.com. If you would like to find out about upcoming opportunities to work with the Go South! team, contact Ms. Sabena Khan by phone at (800) 743-6282 or via email at skhan@fayeclack.com. Go South! is an ongoing produce and seafood promotion in Canada.
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Sweet Onions at FruitLogistica
How sweet are sweet onions? Pretty sweet if they are from the southern United States! In the south, you may have had them diced, sliced or sautéed, with a flavor so sweet you may have mistaken them for something else. This year, SUSTA introduced southern U.S. sweet onions to buyers at FruitLogistica, one of the largest international trade fairs for fruits and vegetables. FruitLogistica, held annually in Berlin, Germany, took place February 2005. The show spanned 4 large halls and 2 floors. FruitLogistica 2005 drew over 1355 exhibitors from 64 countries, with 83% of exhibitors from outside Germany.
The SUSTA booth highlighted Vidalia onions and Texas sweet onions. Enthusiasm for sweet onions in Europe was extremely high. SUSTA representatives learned that educating the consumers about sweet onions is very important. SUSTA's goal at the show was to distribute information about taste, nutrient content, availability, etc. of U.S. sweet onions and to find new buyers interested in our region's product. Belgium, the Netherlands and Germany are important markets for sweet onions; in addition, Greece, Italy and Spain were enthusiastic about the product. The sweet onion made its mark in Berlin and certainly has a future in the marketplace in Europe. This project is expected to continue into SUSTA's next fiscal year.
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Branded Companies Achieve Success in New Markets
During fiscal year 2003, 70 companies used SUSTA's MAP Branded program to promote their products in new international markets. Over 500 new products were introduced in foreign markets using Branded funding. Twenty-one first-time exporters participated, collectively generating 837 new buyer contacts. Companies evaluate the program at the end of each fiscal year to help SUSTA and the USDA's Foreign Agriculture Service measure the success of MAP Branded.
Companies in the program can potentially double their international marketing budget, meaning that they can conduct more promotional activities while committing the same amount of company resources. One participating company representative feels that it is "helpful to get assistance so we [can] do the marketing." Program participants receive reimbursement for half the cost of certain eligible international marketing expenses, such as advertising, exhibiting at international trade shows, etc. Marwan Kabbani of Crystal International noted, "Advertising is very expensive and it is difficult to measure dollar for dollar the results of promotional spending. MAP [Branded] provides us with money that we do not have and reduces our risks."
Many companies work with foreign distributors or agents to conduct promotions overseas. "The program is fantastic," said Holly Newberry of Florida Bottling, Inc. "It has been helpful to offer promotional services to our distributors." Branded participants for the year reported that they established relationships with a total of 151 new distributors. "They [distributors] feel the program is a good solution to help increase sales/exports, because of the help with the advertising costs," said Tommi Jamison of Hearthstone, Inc. Others agree: "It has helped our distributors to advertise in magazines, newspapers and participate in local trade shows," said one representative for a pet food company. Randy Edler of Edler & Associates said that the foreign third parties he works with "have been very satisfied with the program because they know that thanks to the program, we can implement larger, more frequent, and therefore more effective, activities, that certainly help us increase export sales."
Companies also noted that the MAP Branded program aided their existing relationships with foreign agents. "This program allows our distributors to successfully compete with other companies, raise awareness about the brands, and as a result, increase sales," said Marina Plotnikova of Transcon Trading. Altogether, MAP Branded participants estimated that the program assisted their dealings with 137 overseas representatives. Andy Hewes of Coastal Rice works with a foreign third party to use Branded funds abroad. "The MAP program has helped him get a foothold in his local market, something which would have been much more expensive and difficult otherwise," he said. Sandra Luong of Chihade International said, "The MAP Branded program assists all parties in promoting USA-made products and that is very helpful." To read more about companies' success with the Branded program, go to www.susta.org/about/success.html.
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Are You Ready for the Next Fiscal Year?
Branded fiscal year 2005 is quickly approaching. The application season opened June 1. Companies will want to be sure that their application is complete soon, since there were more than 35 companies placed on a waitlist last fiscal year. Follow the steps below to assure that you'll receive funding and will be ready to participate during the upcoming program year.
- Complete and submit your pre-qualification form and application in SUSTA's online database.
- Remember to send your application fee of $200 and supporting documentation to SUSTA. The Branded Program Coordinators will begin to review your application only after these materials are received.
- If you are notified that your application needs to be edited or changed, make the necessary adjustments as quickly as possible.
- Once your application is approved, you will receive a contract with an invoice for the administration fee, which is equal to 6% of the amount of your total allocation.
- You must sign your contract and return it to SUSTA with a check for the administration fee within 30 days of the date it was received.
As a reminder, only activities that occur after your approved "start" date are eligible for reimbursement. For more details about the Branded program and the application process, visit www.susta.org/services/map.html.
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