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July/August 2006 INsight excerpts
Southern Originals in the EU: The Time Is Right
Southern Originals in the EU: The Time Is Right This year is the first time SUSTA has looked to the maturing European market to offer U.S. suppliers an opportunity to display products in an attractive pavilion that offers value-added services for participants, including a chef preparing product samples, lounge, interpreters, and pre-show seminar, to name a few. The first event where the pavilion made an appearance was Horecava in Amsterdam, the Netherlands, from January 9-12, 2006. This trade show celebrated its 50th anniversary with approximately 55,000 visitors from the restaurant and hospitality sector. The Netherlands foodservice market is valued at US$12 billion and serves the most densely populated country in the world. At Horecava, eight SUSTA region companies showcased products ranging from fried clams to bourbon and barbecue sauce. Companies contributed over $160,000 to participate in this Generic industry promotion, and were pleased with its results. Their investment paid off, with over $600,000 projected in sales by the companies participating in SUSTA's pavilion and over 150 solid trade leads generated from the event. One company picked up a major distributor in the Netherlands and hopes to sign a contract for their first shipment. This event will be followed up by a Buyers Meeting and Culinary Workshop in the Netherlands on September 18, 2006, where the major buyers from the country will have another opportunity to learn, taste and purchase southern U.S. products. The next show where suppliers may exhibit in the Southern Originals pavilion in Europe will be at InterCool in Dusseldorf, Germany this September. See "Upcoming Events" on page 5 to learn more about this exciting opportunity. SUSTA Welcomes New Executive Director This July, the Southern U.S. Trade Association welcomes new Executive Director Jerry Hingle to its staff. Jerry is a native of New Orleans and comes to SUSTA with extensive experience in international marketing and agriculture. Prior to joining SUSTA, Jerry spent 10 years with the Southern Forest Products Association, a trade association representing the U.S. lumber industry. He directed the association's $1 million international marketing and trade policy program in 22 countries. He also served as an appointee to the U.S. Commerce Department's Industry Trade Advisory Committee on Forest Products, where he advised U.S. government trade policy negotiators on issues affecting the industry. Jerry also worked previously with the American Forest & Paper Association in Washington, D.C., managing international marketing and research programs for wood products in Taiwan, Korea, China, Mexico, and the European Union. Before joining AF&PA, Jerry conducted market potential studies for U.S. agricultural products in Europe as account manager of public relations and research for A&MV Public Relations International in Brussels, Belgium. Jerry obtained a bachelor's degree in business administration from Loyola University, with a major in marketing. He also holds an MBA from the European University in Brussels, Belgium, specializing in international management.
This year, to make Ontario, Canada consumers more aware of the origin of the fruit, vegetables and seafood that they are purchasing from the SUSTA region, the Go South! team developed five comprehensive media packages. Themed "Journey to Great Taste," the media kits included delicious recipes developed by Go South! Chef Nicole Young, mouth-watering photography, and information that focused on the cuisine and commodities of the region. The journey took our audience from Tex-Mex cuisine to Cajun/Creole-inspired recipes and Southern-style picnic treats found from Texas to Maryland. The kits and the recipes they contained were a lip-smacking celebration of the fresh, quality produce and seafood that the southern U.S. shares with its northern neighbors. To date these kits have generated more than 8.3 million print impressions and have led to more than a half dozen TV appearances by our celebrated Go South! chef. These media kits are being repackaged for travel and tourism media this summer to keep the southern U.S. region in the news all year round.
The Long Green Road to Success: Nursery Buyers & Suppliers Connect at IPM Trade Show In support of the notion that it takes years to tackle a foreign market, SUSTA, with the support of the Southern Nurserymen's Association (SNA), organized the U.S. pavilion at the Internationale Pflanzen Messe (IPM) in Essen, Germany for the 12th consecutive year this February. IPM, the largest horticulture trade show in the world, includes about 1,350 exhibitors from 37 countries in 19 halls totaling more than 1 million square meters of exhibit space. The four-day event attracts nearly 60,000 visitors from around the world looking for plant material, technology, and related goods. Participants from eight different U.S. nursery companies, including five first-time exhibitors, took advantage of the institutional knowledge SUSTA has gained over the last 12 years. In this promotion, a first-time exhibitor has a leg up on the competition because of the groundwork laid at the past promotions. Many new exhibitors find a "built-in" relationship exists with many buyers because of past exhibits and nursery tours. European buyers return each year to the U.S Pavilion because it introduces them to a wide range of U.S. products and producers. In their experience, the exhibitors have found that repeated participation is one of the keys to success in the European market. For example, an exhibitor the first year may garner interest and a few small orders. The second-year and third-year exhibitor shows a buyer that the company is committed to the European market and the relationship is solidified. This relationship brings about larger and repeated orders. As in the past, most interest is in young plant material, mostly large quantities of "bare-root" stock of ornamental trees and shrubs. At the 2006 show, exhibitors reported $380,000 in sales and anticipated sales. There are also long term results; many past exhibitors have moved into growing agreements with European nurseries. In this arrangement, an EU grower either purchases the rights to grow a licensed plant variety or actually exclusively purchases young plant material to be grown out in-country. This partnership allows a U.S. supplier to gain a larger margin of profit than marketing the product themselves, due to many issues with trying to sell and ship "finished" nursery products to Europe. Exhibitors and participants also point out that gaining new customers and making sales are not the only reason they attend IPM or go on the nursery tours. Several participants use the time at the show to seek out trends that can give them an advantage over their competition or products that can make their business more efficient. As with most industries, the nursery industry is constantly evolving. IPM gives SUSTA participants a chance to stay one step ahead in the market. Part of the reason this promotion has been consistently successful is its multi-layered aspect. Nurserymen are given multiple opportunities to deal with the market each year. For example, this year's promotion includes: exhibition at the tradeshow, post-show nursery tours in a selected country (Italy) and then a follow-up reverse trade mission to the U.S. the following summer. An exhibitor has the potential to be introduced to a customer, visit the customer's business and then have the customer visit his business - all in one year! Another reason of continued success is the cooperation of state, federal and private organizations. A list of this year's cooperators reads like a who's who: the Southern Nursery Association, North Carolina Association of Nurserymen, Ohio Florist's Association, Tennessee Department of Agriculture, North Carolina Department of Agriculture, Rome Foreign Agricultural Service (FAS) office, and Berlin FAS office. In the past SUSTA has had participation from the Animal and Plant Health Inspection Service (APHIS) and multiple grower organizations. For more information about buyers missions to the Southern Nursery Association (SNA) Show in Atlanta this August, visit our Events page at www.susta.org/events_2005.html.
Southern Originals Pavilion at World of Food China With nearly 300 million middle-class consumers, demand for food and beverage products is growing in China. China's food and drink market is expected to grow to an estimated $460 billion over the next 5 years, ultimately making it the world's 2nd largest food retail market. SUSTA offers U.S. suppliers an opportunity to access this expanding market by exhibiting in the Southern Originals pavilion at World of Food China, the country's only professional trade show for the food and hospitality industries. For a participation fee of $1,500, exhibitors in the pavilion will receive an individual, fully furnished 100 square foot booth space, booth customization with company logo, on-site interpreter assistance, access to a central lounge with a hostess to distribute samples of products, and free shipment for up to 100 lbs. of product samples and literature. Participants will receive support for buyer meetings and follow-up after the show. The fee is 50% reimbursable for MAP Branded program members. Contact Roy Copelan (rcopelan@scda.sc.gov) at (803) 734-2211 or Victoria Mejia (vmejia@neo.rr.com) at (330) 622-7722 to register for this event. SUSTA Pavilion at EXPHORE The United States is the single most important agricultural partner of Costa Rica due to its geographical proximity and to its high quality, wide selection of competitively priced products. With the highest per capita income in Central America, Costa Rica has a significant customer base that is able and willing to pay for U.S. food and agricultural products, which account for 50% of all imported foods in the country. Costa Rica's location also offers opportunities to supply to other countries in the region. SUSTA invites U.S. suppliers interested in this market to exhibit in the SUSTA pavilion at EXPHORE, the country's premier event for the food service industry, and meet Central American buyers, importers, hospitality and retail professionals. Participants will receive booth space, sample shipment, chef demonstrations, interpreter support, and assistance with buyers for a participation fee of $1,500. (Companies in the MAP Branded program may receive 50% reimbursement.) Best prospects for this show include dairy products, bakery products, snack foods, sauces, wine and spirits, candy and confections, pasta, and fresh fruit. For details, contact Victoria Mejia (vmejia@neo.rr.com) at (330) 622-7722. Interested companies may also contact Ms. Marisol Rodriguez (rodrigm2@doacs.state.fl.us) at (850) 488-4132 or Ms. Crystal Collier (crystal.collier@agi.alabama.gov) at (334) 240-7232. UAE Chef Seminar The United Arab Emirates and other members of the Gulf Cooperation Council (GCC) depend heavily on the import of various food products, importing a total of about $10 billion in food and agricultural products. The UAE is a growing market for high-value food products, as well as a trade hub for the region, with an estimated 60% of food products re-exported to neighboring countries. With a high per capita income level and tastes for novel products and quality foods, the GCC countries offer great potential for U.S. exporters. SUSTA will continue promoting U.S. products in this market with a chef seminar in Dubai, UAE, in cooperation with the Foreign Agricultural Service's Agricultural Trade Office, the Emirates Culinary Guild in Dubai, and the U.S. Meat Export Federation. The seminar will educate junior and executive chefs and food and beverage managers on the quality and diversity of food products from the SUSTA region. Suppliers are invited to send product samples for preparation by a U.S. chef using traditional southern recipes. There is no participation fee for this event. Best prospects include fresh fruits and vegetables, beef and poultry, dried fruits and nuts, juices and juice concentrates, sauces and condiments, honey, snack foods, and other products. For more information, contact Corry de Wit (georgiausagcdewit@arcadis.be) at 32-2-6471815. More information is also available online at www.susta.org/eventdetails.html#dubaipromo. Southern Originals Pavilion at InterCool With the world's 3rd largest economy, Germany is the leading market for food and beverages in the European Union. In 2004, Germany imported $799 million worth of consumer-oriented agricultural products from the U.S. InterCool, a biannual trade show for chilled and frozen foods, attracts wholesalers, importers, retailers and food service buyers, 81% of whom are decision makers. Frozen food consumption in Germany has increased by 50% in the last 10 years, which makes this fair a significant opportunity for U.S. suppliers to showcase chilled and frozen products. Suppliers from the SUSTA region may exhibit in the Southern Originals pavilion and receive a comprehensive package of trade show services for $4,500, which is 50% reimbursable for members of the MAP Branded program. In addition to a 100 square foot booth within the pavilion, participants will benefit from assistance with buyer meetings and follow-up, interpreter services, an on-site chef to prepare samples, a central lounge and meeting area with a hostess and refreshments, and shipment of up to 300 lbs. of product samples and literature. Best prospects for this show include snack foods, fresh fruits and vegetables, dried fruits and nuts, alcoholic beverages, fitness foods and beverages, and frozen fish. For details on this promotion, contact Mr. Roy Johnson (roy_j@ldaf.state.la.us) at (225) 922-1280. World Food Moscow In the past four years, retail food sales in Russia have doubled as the number of western-style supermarkets has increased. In 2004, U.S. exports of consumer-oriented food products amounted to over $500 million. With more than 145 million consumers, the Russian Federation is a large and dynamic market with significant opportunities for U.S. suppliers in the retail, food service and food processing sectors. For the third time, SUSTA will exhibit at World Food Moscow from September 26-29, 2006. SUSTA is offering free booth space, with a dedicated translator/booth assistant, to suppliers wishing to showcase products at the show. The Foreign Agricultural Service's Moscow office will assist participants with reservations at centrally located hotels, and all exhibitors in the USA Pavilion will receive a special pre-show supermarket tour, access to the USDA lounge, and assistance with logistics for the show. Last year's show attracted over 50,000 importers, retailers, wholesalers, and processors from around Russia and from many neighboring countries. The 15th Jubilee International Exhibition will feature two new sections: Catering & Tech and Health Food. To learn more about SUSTA's activity at World Food Moscow, contact Theresa Brophy (brophyt@mda.state.md.us) at (410) 841-5881. For more information, you may also contact Corry de Wit (georgiausagcdewit@arcadis.be) at 32-2-6471815. Southern U.S. Food Festival The food service industry in the Czech Republic reached over $3.4 billion in 2003 and is expected to grow 4% to 5% over the next five years. In the mid and upper market, the percentage of imported food products is sizeable and increasing. Increasingly, Czech consumers eat in restaurants - since 1990, expenditures on food service grew 11 times faster than overall food expenditures. The capital city of Prague has a high number of luxury and ethnic cuisine restaurants, frequented by locals as well as tourists. In cooperation with the U.S. Embassy in Prague, SUSTA will hold a Southern U.S. Food Festival at a restaurant in Prague in September to educate importers and buyers about the diverse food products available from SUSTA region companies. Suppliers interested in the Czech market are invited to send product samples which a U.S. chef will prepare in a demonstration of southern cuisine. Best prospects for this activity include fresh fruits and vegetables, beverages, dried fruits and nuts, juices and juice concentrates, sauces and condiments, honey, snack foods, and seafood. There is no participation fee for suppliers who wish to send samples for the event. For more information, contact Ms. Yolanda Roundtree (roundty@doacs.state.fl.us) at (850) 487-2779 or Ms. Corry de Wit (georgiausagcdewit@arcadis.be) at 32-2-6471815.
SUSTA Reverse Trade Mission Brings Chilean Food Buyers to Louisiana, FMI Trade Show A SUSTA-sponsored reverse trade mission brought Chilean buyers to Louisiana in early May to educate them about the variety of high-quality food products available in the state and the rest of the SUSTA region. During their visit, the buyers met with 10 Louisiana companies and traveled to the Food Marketing Institute (FMI) trade show in Chicago to meet with more suppliers of agricultural products from the southern United States. The buyers, from Mercado Global Market, Inversiones SMS Ltd., Velarde HNOS, Comertex and Anson Trading Ltd., represented importers, supermarket chains, convenience stores, hotels and restaurants. Chile's modern and competitive supermarket sector reported sales of $5.1 billion in 2004, and the U.S.-Chile Free Trade Agreement has increased interest in U.S. products as well as opened opportunities for previously prohibited products such as red meat, dairy products and certain fresh fruits. Imports of specific products are especially in demand, including snack foods, frozen prepared dinner entrees, frozen bread products, fresh and frozen dairy products, processed meats, sardines, and tuna, baked goods and mixes, sweets, gums and chocolates, and specialty pet foods. The group of buyers visited the facilities of several Louisiana companies, including Louisiana Fish Fry Products, Prejean's seafood restaurant, and McIlhenny Co., on the first day of their visit. The following day, after meeting with Louisiana Department of Agriculture and Forestry Commissioner Bob Odom, the Chilean buyers met one-on-one with more suppliers and sampled products showcased in a tabletop display. Each participating company had a private table where they could display and offer samples of products and make a presentation to buyers. Participants included Manda Fine Meats, Panola Pepper Co., Tony Chachere's, New Orleans Nectar Soda Co., Louisiana Seafood Promotion Board, Bayou Blends seasonings, Winkey's Delites and Louisiana Gourmet Enterprises. "I enjoyed it and thought the cost was very economical to be able to introduce our product to five buyers from Chile," Bobby Yarbrough, CEO of Manda Fine Meats, said. "They are big into product demonstrations and displays in their stores and they have an eager work force in Chile. This was a good way to get our foot in the door. I enjoyed it and I'd like to see more events like this one." Following their visit to Louisiana, the Chilean buyers continued on to the FMI trade show to meet with more southern U.S. suppliers exhibiting there.
Getting the Most out of MAP Branded Reimbursement Claims You completed the Market Access Program Branded application. You received your approval letter and MAP Branded contract stating your allocation, and paid your administrative fee to SUSTA. Now you are preparing to conduct the first international marketing activity for which you will request reimbursement. Use this checklist to ensure that you comply with MAP rules and submit the necessary documentation to SUSTA to get the reimbursement you deserve. Pre-Approval Timing U.S. Origin Ensure Activity Eligibility Review and Copy Invoice
Pay for Activity and Keep a Record
Document Activity Reimbursement requests and supporting documentation should be mailed to SUSTA. Requests should be submitted within 60 days of the completion of the activity. All reimbursement requests for the program year must be submitted within 60 days of the completion of the program year. Companies should keep copies of all reimbursement request materials, including original copies of vendor invoices. Copies of all material should be submitted to SUSTA; in some cases, SUSTA may request original documentation. Participants are required to retain MAP Branded files for 5 years following the end of the program year. Files are subject to audit by the Foreign Agricultural Service. For more information about MAP Branded reimbursements, visit www.susta.org/services/map_reimbursement.html, or check the MAP Branded Participant Manual at www.susta.org/downloads/branded_manual.pdf. To request a copy of the manual, contact the SUSTA office at (504) 568-5986.
Attention all Market Access Program (MAP) Branded participants and applicants! The Foreign Agricultural Service (FAS) has announced the following changes to the MAP Branded program year: FY-2005 (the current program year) will continue through the end of calendar year 2006. Participants planning to conduct activities between October 1, 2006 and December 31, 2006 should contact Deneen Wiltz, SUSTA Branded Program Manager, to submit an amendment to your FY-2005 application. Companies not already participating in MAP Branded may complete the online application for FY-2005 by signing in to their online profile at www.susta.org and selecting "Branded Links" in the main menu. FY-2006 will begin on January 1, 2007 and conclude December 31, 2007. SUSTA is now accepting applications for FY-2006. Due to ongoing upgrades to SUSTA's online system, this year applicants will complete a paper application to ensure that the process goes as smoothly as possible. The Branded application for FY-2006 can be downloaded in Microsoft Word format from the SUSTA site: www.susta.org/services/map_application.html. If you have questions about these changes, visit www.susta.org/services/map_news.html or contact the SUSTA office at (504) 568-5986.
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