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May/June 2007 INsight excerpts
Trading Company Uses MAP Branded to Increase Visibility, Sales
Trading Company Uses MAP Branded to Increase Visibility, Sales Transcon Trading Company, Inc. of Irmo, South Carolina has been exporting for more than 25 years. Already experienced exporters, Transcon representatives heard about SUSTA and the Market Access Program (MAP) Branded through an article about the agricultural industry in South Carolina. The company applied for matching funds through MAP Branded more than 10 years ago to promote a variety of products around the world, including health foods and supplements, animal feeds and supplements, personal care products, and other agricultural products. As an export trading company, Transcon represents many different brands and products in the various countries where the company conducts marketing activities. Many of the products promoted by Transcon are produced by small companies with minimal international experience. “As an exporting company, thanks to MAP, we are able to help small U.S. manufacturers grow internationally,” said Tony Fenik, Leads Manager of Transcon. “Many of the brands that we represent grow from very small or no international annual sales to multimillion dollar international sales.” Transcon has utilized MAP Branded funds to strengthen relationships with distributors, since Branded participants may receive 50% reimbursement for marketing campaigns conducted in other countries and share those reduced costs with their partners there. “Receiving 50% reimbursement is a tremendous help to any distributor. The end user learns about the product, the distributor receives financial assistance from the U.S. company, which in turn creates a positive business relationship,” said Fenik. He also cites the assistance provided by SUSTA’s Branded Department in understanding the MAP guidelines set forth by the Foreign Agricultural Service. “Make sure you understand the MAP guidelines properly and do not hesitate to contact [SUSTA] MAP representatives. They are very helpful and resourceful. They can make your claim process much easier,” he said. Double Exposure at Gulfood Show Benefits Suppliers Promotion of southern U.S. food products at the Gulf Food Show in Dubai, United Arab Emirates, was twofold this February as SUSTA showcased products from 11 suppliers in a regional pavilion and took part in a USA Kitchen Pavilion organized in cooperation with the other State Regional Trade Groups (SRTGs) and the U.S. Department of Agriculture’s Foreign Agricultural Service’s Agricultural Trade Office (ATO) in Dubai. Together, these activities resulted in nearly $8 million in projected sales for U.S. companies and excellent exposure to key players in the Middle Eastern market. For the third year in a row, SUSTA offered suppliers from the southern U.S. the opportunity to showcase products or send samples for the SUSTA pavilion at Gulfood. Five suppliers exhibited at the show for the first time as part of SUSTA’s pavilion, with six more companies sending samples to be promoted by SUSTA representatives at the show. As the largest event of its kind in the UAE, Gulfood presented an excellent venue for U.S. suppliers to educate buyers about the products from the SUSTA region. Participants sold $200,000 worth of products at the show, and project a total of $1.6 million in sales to follow as a result of the activity. Chefs in the USA Kitchen Pavilion demonstrated the use of 22 companies’ products from the four regions of the U.S. (South, Northeast, Midwest, and West) covered by the SRTGs. Two U.S. executive chefs, including Roy Lyons from Louisiana, and two UAE-based chefs conducted live cooking demonstrations highlighting U.S. food products. The USA Kitchen Pavilion received a great deal of publicity in the form of advertisements and press releases in advance of the show, generating interest in the pavilion and products. Four companies confirmed orders of $835,000 at the show, and 11 companies anticipated follow-up sales totaling $6.2 million over the next 12 months. In July, chefs from the UAE will cook southern U.S. food products during a promotion at the largest shopping center in the Middle East. U.S. suppliers are invited to send product samples for this event; register at www.susta.org/events.
Director's Corner Taking Advantage of World-Class Exhibit Opportunity We’ve invested tens of thousands of dollars in our trade show pavilions to assure prime visibility for company exhibitors and each of the 16 southern states in the SUSTA region and some of the products they offer. Our “Southern Originals” pavilions are used at several key events in Europe and China and are truly world-class exhibits that rival many national pavilions. Being part of the pavilion is an excellent means of making new contacts and export sales, and the only way a company can get better visibility is by investing heavily in their own stand-alone exhibit. For example, at the recent IFE International Food and Drink trade show in London, the companies exhibiting with us could barely keep up with the hundreds of visitors to their booth – and these were quality visitors looking to buy or open new territory for distribution. On-the-spot sales for most companies at the SUSTA pavilion far exceeded the cost they incurred to be there. And the new distributor agreements they reached are already having a multiplier effect on long-term sales. But sometimes participants don’t take advantage of these opportunities, and booth spaces in the SUSTA pavilion go unused. It’s a pity to see open spaces, so we are beefing up our recruitment efforts and have slashed participation fees to further entice companies to exhibit with us. Please help us get the word out on a number of events later this year: later in May is the Private Label Show in Amsterdam, the Netherlands, and in November the Southern Originals pavilion will visit the China Fisheries Expo in Dalian, China and the Horeca trade show in Belgium. Companies can register for these events on our website, www.susta.org, or contact their state’s Department of Agriculture to learn more about how they can get involved. The heavy investment in our trade show pavilion has already paid off for many companies in our region. Last year companies from the SUSTA region exhibiting in our Southern Originals pavilion in Europe made over $400,000 in sales and participated in over 600 buyer-seller introductions; for some companies it was their first-ever sale in the market. With your help, we’re eager to see it prove its worth for others. Korea Food Service Reverse Trade Mission A group of Korean buyers will take part in one-on-one meetings with southern U.S. companies during an upcoming reverse trade mission sponsored by SUSTA. This is a great opportunity for suppliers of food and beverage products from the SUSTA region to showcase products to the Korean market without traveling out of the U.S. Korean buyers will visit Maryland and Georgia to meet with companies before attending the National Restaurant Association Show in Chicago to meet with additional southern U.S. companies exhibiting at the show. Suppliers can be part of these meetings for a participation fee of $50.00. For more information, contact David Bryant at dbryant@agr.state.ga.us or Laura Hayes at hayeslm@mda.state.md.us. Japan Pecan Promotion at IFIA Show IFIA (www.ejkrause.com/ifiajapan/) is Asia’s leading food additives and ingredients event and will include the Healthy Foods Expo, for dietary, organic and healthy foods, additives and ingredients. In 2006, more than 100 international manufacturers participated in the show. The market for pecans is growing in Japan as nuts are being added to cakes, breads, confectionery and bakery items, as well as Chinese-style cuisine. SUSTA is working with an in-country consultant to educate consumers and create activities that will allow southern pecans to become a major addition to Japanese cuisine. This year SUSTA will distribute promotional items labeled with the SUSTA web page at the IFIA show to heighten awareness of southern pecans. A SUSTA trained chef will also prepare Japanese dishes using pecans at the SUSTA booth. Companies are invited to send samples of pecans and products containing pecans to be used for demonstrations at the show. Attendance is not required, and registration is free. For more information, contact Ms. Beth Miller at bmiller@agr.state.ga.us or Ms. Terry Ovalle at terry.ovalle@agr.state.tx.us. U.S. Food Extravaganza Southern U.S. companies interested in the Mexican private label and ready-to-eat market are invited to participate in a trade mission to Mexico City and Monterrey, where they will learn about the Mexican market during a trade seminar and grocery store tours, as well as meet one-on-one with key buyers. A webinar before the event will further educate participants about the market and prepare them for the mission. Best prospects include private label products, snack foods, pet foods, dairy products, processed fruits and vegetables, ready-to-eat products, healthy foods and tree nuts. The $250 participation fee includes trade events as well as ground transportation in Mexico. For additional details, contact Ms. Beth Miller at bmiller@agr.state.ga.us, Ms. Carmen Arjona de Rukos at ladeptag@sureste.com or Mr. Haidar Haidary at hhaidary@oda.state.ok.us. China Reverse Trade Mission Suppliers of food and beverage products from the SUSTA region will have the opportunity to meet buyers from China, the world’s largest market, at one of four locations during a reverse trade mission bringing key buyers to the U.S. The buyers will visit the New York Fancy Food Show, the world’s largest gathering of gourmet and specialty products, to meet with southern U.S. companies exhibiting at the show. Following the show, the buyers will also travel to the Washington, D.C. area, Columbia, South Carolina, and Dallas, Texas for more one-on-one meetings with suppliers. There is no participation fee for this activity, and SUSTA will provide interpreters to facilitate meetings between suppliers and buyers. To learn more about this activity, contact Mary Legg (mlegg@ag.state.wv.us). India Reverse Trade Mission SUSTA will bring key Indian buyers to the New York Fancy Food Show in July to meet with companies from the southern U.S. participating in the trade show. Following the show, the group of buyers will spend the duration of the reverse trade mission meeting one-on-one with companies in Alabama and Florida. This is a unique opportunity for any SUSTA region company that has their eye on the Indian market to showcase their product with a tabletop display and meet key buyers during pre-arranged one-on-ones for a low participation fee of $50. Suppliers participating in the mission will also receive a briefing on the Indian market. Interested companies should contact one of the following activity managers for more information: Mr. Srinivas “Java” Javangula of Alabama at Srinivas.Javangula@agi.alabama.gov, Ms. Corry de Wit of Georgia at georgiausagcdewit@arcadis.be, or Mr. Paul Davis of Florida at davisp@doacs.state.fl.us. Southern Originals Pavilion at World of Food China SUSTA invites southern U.S. suppliers of food and beverage products to exhibit in the Southern Originals Pavilion at World of Food China. World of Food China attracted 12,000 trade visitors in its inaugural year and is co-located this year with Sweets China and the International Sweet & SnackTec China, offering participants the benefits of three events for the food and beverage industry. Companies in the SUSTA pavilion will be provided with a wide range of value added services, including an open pavilion space situated in an ideal location, a 10 square meter space including shelves, chairs and a display counter, water, electricity, internet, transportation and logistics help, and assistance in decorating booths. Participants will also benefit from a SUSTA trained chef preparing their products in cooking demonstrations, a seminar and market briefing, translators at the booth and 100 lbs. of samples shipped to the show. The booth will contain information on the services offered by SUSTA and direct sourcing information for Chinese buyers of southern U.S. food and agriculture products. The participation fee is $1,500. For more information, contact Ms. Victoria Mejia (vmejia@neo.rr.com), Cindy Martel (cmartel@ag.state.wv.us), Aaron Wood (awood@scda.sc.gov) or John Jenkins (john.jenkins@ncmail.net). SUSTA Completes Independent Financial Audit SUSTA achieved great results on an independent financial audit, which includes a vigorous A-133 audit of our Market Access Program (MAP) Branded and Generic claims. The A-133 audit, newly required under MAP rules since 2005, covers much the same ground as the annual Compliance Review audit of SUSTA conducted by the Foreign Agricultural Service (FAS). SUSTA received the highest opinion, an unqualified opinion, on both the financial side and the program side of the independent audit. This is a tribute to the professionalism of the SUSTA staff as they continue to work to ensure that participants in SUSTA's Branded and Generic programs utilize funding properly and to their benefit. Southern Originals Pavilion at HORECA Expo SUSTA is sponsoring a 10 booth Southern Originals pavilion at the HORECA expo for southern U.S. companies to showcase food and beverage products to key players in the food service sector. The Belgium food market accounts for almost 10 million high-end consumers who spend a higher percentage of their income on food compared with the E.U. average. The HORECA Expo is Belgium’s largest food trade show with over 60,000 attendees including visitors from France and The Netherlands. Over 54% of attendees are decision makers for their business. The growing food industry in Belgium is the second largest industrial sector in the country. Belgium is an open market for foreign products and can be seen as a gateway to Europe. Belgian companies are accustomed to importing due to their large sea harbor and high demand for U.S. products, especially now due to the low Dollar/Euro rate. SUSTA will pay for shipping product samples to the show. Southern U.S. suppliers can exhibit and receive these valuable trade show services for a $1,500 participation fee. For more information contact Terry Ovalle at Terry.Ovalle@tda.state.tx.us or Victoria Mejia at vmejia@neo.rr.com. Colombian Reverse Trade Mission Results A group of pre-qualified buyers and importers/distributors from Colombia visited the southern U.S. from August 27-September 1, 2006 as part of a Market Access Program (MAP) Generic promotion conducted by SUSTA. MAP Generic promotions represent more than one product or commodity, and allow suppliers to participate in trade shows, in-store promotions and other activities for a reduced cost. The Colombia reverse trade mission was organized by state marketing representatives from Kentucky and Oklahoma, who also recruited companies from both states to participate in a mini-trade show, meetings with buyers, and site visits. Representatives from two major Colombian supermarket chains and four key importers/distributors for retail and foodservice establishments participated in the reverse trade mission, traveling to Kentucky and Oklahoma to meet suppliers. Five companies from Kentucky displayed their products to the Colombian buyers, and two bourbon companies held on-site visits at their facilities. A total of 29 buyer-seller introductions were made in Kentucky, and projected total sales for the activity were estimated at over $600,000. Florida Beauty Products Company Increases Sales with MAP Branded Monica Richardson of Palladio Beauty Group realizes that there is a large market for her company’s personal care products outside of the U.S. “U.S. products have reached their all-time peak in international demand and we must not ignore this trend,” she said. The Hollywood, Florida company exported for four years before applying for Market Access Program (MAP) Branded funds from the Southern U.S. Trade Association (SUSTA) three years ago. The company’s export sales have increased from $1.5 million in 2004 to $2 million in 2005, going up to $2.8 million in 2006, for a 40% increase in one year. Richardson first learned about MAP Branded from the U.S. Commercial Service in Ft. Lauderdale, which honored the company with its Exporter of the Year award in 2007. Palladio qualified MAP Branded under the pilot program for Diversified Agricultural Products (DAP), which included personal care items, alternative energy products, and building materials made from U.S. agricultural sources. Using matching funds from MAP Branded, Palladio has been able to increase their international visibility by exhibiting at trade shows, advertising and adding other promotional activities to their international marketing plans. “We’ve been able to increase our export sales tremendously by entering unexplored markets and make our relations stronger with our current customers by allowing them to have a better budget to promote the line in their countries,” Richardson said. She points out that the additional marketing Palladio has done with MAP Branded funds has had a ripple effect on the company’s export capabilities. “By increasing export sales, our cash flow has become more constant. [Exports have been] our main source of inventory increase in our warehouse. We’re able to hold more stock and ship more efficiently and promptly.” Join the Go South! Team at CPMA: May 9-11, 2007 Go South! Fresh from the Southern U.S. will represent states from the SUSTA region at this year’s Canadian Produce Marketing Association’s convention and tradeshow in Montreal, Quebec, and we’d love for you to join us! Reflecting the theme “Behind Go South! Excellence in Produce,” we are going to celebrate the region and those who produce the many quality fruits, vegetables and pecans available from the southern U.S SUSTA’s Canadian consultants have secured a 20’ x 20’ booth and are looking to fill it with those people who know their produce offerings better than anyone else – the growers/shippers themselves. Retailers come to this event to see what’s new – product, variety, and packaging. They are looking for innovative ideas that will spur them to procure. This is an excellent opportunity to showcase the best that southern U.S. exporters of fruits and vegetables have to offer. Quebec is Canada’s second largest market, next to Ontario, and provides a natural shipping corridor for southern U.S. suppliers. Also, as it neighbors Ontario, you will see most of the Ontario buyers in attendance, therefore providing exhibitors with more opportunities for networking and selling. For more information or to participate in the Go South! event at CPMA, contact SUSTA’s Generic Department at (504) 568-5986. You may also get in touch with your state’s Department of Agriculture using the contact information for each state found at www.susta.org/staff/index.html. |
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