MAGAZINE
Promoting U.S. food & agriculture in China
A Recipe For Success Own a dish and you obsolete your competition
By Leslie Lynn in tat menu category. You want your guests to say,
Hands down, the “When I want a steak, I only go to……” Don’t be the
most important element best at what you do, be the only one who does what
you do!
of any great restaurant is
the culinary experience it Drink Up
delivers to its guests. Whether your guests are try- A savvy beverage menu will boost sales and
ing new and exotic tastes or coming back for old create unique niches that will be hard for your com-
favorites, it’s your restaurant’s food that makes the petitors to duplicate. The repackaging of successful
experience memorable. traditional favorites through creative naming and
Your brand, and its promise, should come distinctive glassware can be combined with several
shining through your menu items. Your success in
accomplishing that will be the defining difference signature cocktails of your own creation to create a
between you and the competition. unique offering.
1
ATO speaks Dalian, Harbin and
Shenyang which
With the establish- have undergone tre-
ment of the Agricultural mendous change and
Trade Office (ATO) Beijing(美国使馆农业贸易处) economic growth.
in China and the U.S.’s most important market for The market is not simply “ripe” but at a “critical”
agricultural trade, the ATO opened its doors to the stage of development as the cost of our products
public on December 15, 2003. Our primary objec- become more accessible to urban consumers who
tive is to promote, expand and protect U.S. food have seen incomes continue to rise along with fall-
and agricultural product markets in North and ing prices for imports in real terms based on recent
Northeast China. We provide a link for American appreciation of the Chinese Yuan vis-à-vis the U.S.
and Chinese food and agricultural interests seeking Dollar.
regional, national and local market requirements The opportunities are enormous for suppliers,
and opportunities for food and agricultural product and purchasers of high quality, safe, and healthy
trade. food and agricultural products in this market. We
China’s accession to World Trade Organization very much welcome you to the services of the ATO
and resulting phenomenal growth continues to Beijing and the dynamic North China markets.
benefit and provide enormous market opportunities Please do contact us if your organization has an
for traders from both the U.S. and China. By 2020, interest in U.S. agricultural and food product trade
China will have an estimated 500 million house- in North China. Located in the heart of Beijing’s
holds with nearly 50% able to purchase many US CBD (Center Business District) and we look forward
food products exports. And, over the next 15 years, to your next visit here in Beijing at the Kerry Center...
China’s food consumption is expected to grow to Agricultural Trade Office (ATO) Beijing
$25 billion annually which makes it the world’s fast-
est growing market! Kerry Center South Tower (嘉里中心南楼)
e importantly the political capital of the nation 24th Floor, Suite #2425
has experienced rapid improvements in recent years. No.1 Guanghua Lu, Chaoyang District (朝阳区
Investment in improving existing infrastructure for 光华路1号)
the Olympics has helped push local GDP growth to Beijing, People’s Republic of China
nearly 10 % annually through 2008. More impor- Tel: (86-10) 8529-6418
tantly, North China Emerging City Markets are Fax: (86-10)8529-6692
growing at a pace more rapidly than other major Email: ATOBeijing@fas.usda.gov
urban areas including but not limited to Qingdao, Web site: www.usdachina.org
2
SPECIAL PREVIEW
Hugoson: Asia, both on Minnesota ing trade between Asian importers and 2007.
“Minnesota’s and NASDA business, and US producers for many years. DeWitt Ashby, director, trade shows
agricultural sales has a keen interest in Asia, “The 2008 US Food Export Show- for NASDA, notes that Chinese visitors
to China topped
especially China. case (USFES 2008), which will be an to NASDA’s Chicago events have pur-
US$363 million last
year, and we
“Minnesota’s agricul- integral part of the Global Food and chased more than US$50 million from
expect to double tural sales to China topped Style Expo, is another terrific opportu- American exhibitors at the National
that within four US$363 million last year, nity to bring these groups together. At Restaurants Association (NRA) Show
years.” and we expect to double this event, Food Export-Midwest and and the USFES over the past five years.
47 3
SSPPEECCI IAALL PRREEPVOI R
ETW
“We fully expect these trends to con- show and each time we attend, we bring ucts are out there.”
tinue,” says Ashby. “The success of back with us useful product information The Chinese market
NASDA’s trade-show programmes in and we expand our network of US sup- has evolved and contin-
China are both a reflection of, and a pliers. In just three years, we have estab- ues to evolve, Brabant
modest factor in, the rapidly growing lished trading relationships with many points out. “The number
trade between the US and China.” distributors in almost all provinces/big of importers, distributors
Lee’s Market Makers of Shanghai cities for different US food brands which and wholesalers is grow-
represents NASDA in China. Accord- we bring into China. ing fast. It is also struc-
ing to Barbara Lee, principal, Lee’s per- “We would like to enhance our busi- turally changing. In the FAS’ Beijing
forms several key functions for NASDA. ness with the US, and in the process we past, the distribution of Agricultural Trade
Office’s LaVerne
“We assist NASDA’s trade-show pro- will help to promote the agricultural imported products into Brabant: “The GFSE
gramme in China in several areas. products trade relationship between China would be via Hong will be more
“First, we help identify appropriate China and the US.” Kong. Then importers in specialised and
attendees for the NRA and GFSE shows. Li also attended a sponsored train- Shanghai and South more focused. The
We coordinate with the Foreign Agri- ing course in the US which gave him a China started to import show will be an
culture Service (FAS) Agricultural deeper understanding of the US food and distribute the prod- educational
opportunity for the
Trade Offices in China to help convince export industry and equipped him with ucts to the rest of the
Chinese trade.”
these people that attending [the events] guidelines on purchase policies for the country.”
would be profitable for their business — Chinese market. As a result of the suc-
this could be in knowledge and/or ac- GFSE is a show that will be better cess of trade shows like the USFES,
tual trade. And, if appropriate, we help able to meet the expectations of China’s more traders from China’s second-tier
with visa and travel logistics. increasingly sophisticated urban con- cities like Dalian and Chengdao (con-
“Finally, we conduct two detailed sumer, says LaVerne Brabant, director sidered medium-sized cities with popu-
surveys of the programme par- of FAS’ Agricultural Trade Of- lation sizes of about six million each) are
ticipants, the first soon after fice (ATO) in Beijing, China. importing directly.
the show(s) and the second six “We are very excited to “The Chinese market is expanding
months later. These surveys hear that NASDA is partnering for everyone, not just the US. The pie is
are a key tool for NASDA to the NASFT and the OTA in getting bigger and the US, being the
use in evaluating its promo- launching this new show,” says largest trading partner with China, is
tional programme in China.” Brabant. The ATO has been enjoying a larger share of the growth,”
Lee adds: “One of the most promoting the USFES (previ- says Brabant.
rewarding aspects of these ac- ously held in conjunction with Today, China’s booming Hotel Res-
tivities is the camaraderie and Nature Trade’s Li The FMI Show) and the taurant and Institutional (HRI) sector
knowledge shared by the Chi- Zhiqing: “We American Food Fair (part of generates revenues in excess of US$125
would like to
nese participants who form enhance our The NRA Show) in China for million. An FAS report notes: “Affluent
new friendships and alliances business with the many years. urban consumers are shaping the indus-
during their visits to the US.” US, and in the “We plan to brand this new try with demand for healthier, faster
One of the many Chinese process ... show. In the past, the Chinese and safer menus; terms like ‘organic’
companies that find it benefi- promote the buyers were looking for more and ‘free delivery’ have entered the lexi-
cial to participate in US trade agricultural generic, commodity type of con. Emerging city markets are home to
products trade
shows is Nature Trade Corpo- products but, today, China’s millions of people who are trying wine,
relationship
ration, a leading Beijing-based between China urban consumers are more so- pizza and steak for the very first time.”
F&B importer. Describing the and the US.” phisticated, with greater China’s retail-food market is also
USFES as his favourite trade spending power, and they are expanding rapidly and retail intelligence
show, Nature Trade’s founder and CEO, demanding more variety and better- provider Retail Forward ranks China as
Li Zhiqing, says he is looking forward to quality, higher-value F&B products. the world’s seventh-largest retail mar-
visiting the new GFSE, which will incor- “GFSE will be more specialised and ket, which is likely to move to the fifth
porate the USFES. more focused. The show will be an edu- position within the next five years.
Li attended his first USFES in Chi- cational opportunity for the Chinese The FAS has four ATOs in China,
cago at the 2005 FMI Show and re- trade — they will be able to see first- an indication of the great importance
turned for the next two shows. “We hand what’s available. What’s hot and that the US government and the agricul-
have benefited enormously from the what kind of prod- tural community in general place on the
Chinese market. The offices are located
in Beijing, Shanghai, Guangzhou and
Chengdu.
According to NASDA’s Ashby, the
Retail Asia September 2007
48
4
ines US-China trade in the food sector, the Office of Agricultural
up-to-date trends in the US food indus- Affairs at the US Embassy
try, consumptions trends among US con- in Kuala Lumpur, Malay-
sumers, and context about the GFSE — sia, participated in a
and how it may relate to their business SUSTA activity where they
and world perspective,” he adds. met Atlanta area export-
“NASDA also sponsors a group so- ers, toured stores and vis-
cial event for Chinese visitors to USFES ited a halal-certified poul-
and US business people with specific try processor.
interest and activity in China. This is According to David
useful for own-business networking with Bryant, director of market-
Chinese business people from other re- ing and international trade
Georgia Department of Agriculture’s David Bryant: “The visits we
gions and for an additional opportunity for the Georgia Depart- organised for the Malaysian delegation were the perfect
to meet with US business people.” ment of Agriculture: “The complement for their trade-show experience. They had more one-
The organisation will also provide visits we organised for the on-one meetings, but at a more leisurely pace.”
additional interpreters, free of charge, Malaysian delegation were
to Chinese visitors so that they can max- the perfect complement for their trade- was both valuable and efficient.
imise their time while visiting the exhib- show experience. They had more one- With all the related organisations
its, says Ashby. on-one meetings, but at a more leisurely pooling their resources and working to-
The USFES is tai- pace. This type of activity demon- gether to create productive programmes
lored for international strates how valuable it is to get for the international trade visi-
visitors and NASDA is international buying delegations tors, the new Global Food &
in the process of prepar- into the US.” Style Expo looks set to make its
ing a programme for As a result, the trip half-way mark as a ‘must-visit’ event on
these visitors that will ex- around the world from Kuala the international trade-show
amine trends and Lumpur to Chicago and Atlanta calendar. ra
changes in the interna-
DeWitt Ashby: “[The
tional food-retail busi- Get globally smart!
ness. “This forum, to be
USFES], to be held
on the morning of held on the morning of
Learning Programmes at GFSE 2008
April 28, will be April 28, will be espe- “The scope of Global Food & Style Expo (GFSE) is global, reflecting the marketplace in which
especially cially interesting to businesses operate today,” says John Kauke, principal of Global Market Linkage and special
interesting to Asians because Asia is at consultant to NASDA for trade education. “Keeping up with product and retail trends, trade
Asians because Asia and safety regulations and who’s doing what in our increasingly
the epicentre of change,”
is at the epicentre
says Ashby. complex and competitive world is a challenge every retailer and
of change.”
He points out that supplier face.”
NASDA’s events tie in nicely with events With this in mind, the three partners and sponsors of the GFSE have
sponsored by the organisation’s four designed a comprehensive programme of educational offerings to suit
affiliated state regional trade groups the needs of retailers and producers, importers and exporters from
around the world. In the line up are:
(SRTGs): the New Orleans-based
Southern US Trade Association Daily keynote presentations
(SUSTA); the Western US Agricultural Food Industry Superstar Appearance: The organisers are not Global Market
Trade Association (WUSATA), based revealing more just yet, but they are working to get a leading Linkage’s John
in Vancouver, Washington; Chicago- personality in the global food industry to be at the expo for inspiration Kauke: “The scope
based Food Export-Midwest; and Phila- and entertainment. of GFSE is global,
delphia-based Food Export-Northeast. The Global Retailer Forum will bring together senior executives reflecting the
The members of the SRTGs are also from several leading global retail players for a discussion of retail and marketplace in
members of NASDA. product trends and issues such as supplier relations and food safety. which businesses
“By leveraging the synergies avail- John Moore, former Starbucks and Whole Foods executive, has operate today.”
able between the international market- been there, done that. While helping to build these two retail stalwarts, Moore wrestled
ing staff at state departments of agricul- with the challenges associated with company culture and growth. He will share with us what
ture and within FAS, the SRTGs are he learned about retaining small culture as you get bigger.
able to assist US and international trad- In addition, there will be more than 35 concurrent sessions to choose from. Here are just
ing entities by facilitating effective com- a few topics that have been confirmed:
munications,” Ashby adds. Organic 101: A comprehensive introduction to what is going on in this booming sector
in the North American market. This session will present a range of perspectives on how to
For example, in 2005, the Georgia
September 2007 Retail Asia
market organic, speciality and imported products — what works and what does not.
Department of Agriculture hosted a
Food Safety is on everyone’s mind these days. Industry experts will discuss current
group of 10 Malaysian importers and regulations and best practices to keep participants up to speed on this dynamic topic.
retailers who had attended the USFES How does the North American Specialty Food Industry work? Are there product
in Chicago as part of an activity spon- trends or retail practices you could use? Attendees will find out more.
sored by NASDA and FAS. After the Everyone in the food industry seeks to build and maintain Consumer Loyalty.
show, the group, led by Leepin Loh, Participants will hear how it is being done in the North American market in key growth
agricultural marketing assistant from sectors. ra
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5
News &
Views News and Views in 2008, an increase of 4.3% over 2007, while quick
service restaurants sales are projected at $156.8 bil-
lion in 2008, a gain of 4.4% over 2007.
Retail
Retailers are introducing new ethnic food sec- McDonald’s Corp. plans to sell lattes, cappuc-
tions and international aisles, in response to the cinos and other specialty drinks in all of its 14,000
growing U.S. minority population, which reached U.S. restaurants next year. The company believes the
100.7 million this year, up from 98.3 million in 2006, U.S. beverage market is “one of the largest growth
according to the U.S. Census Bureau. However, such opportunities” for the company and predicts that
initiatives are not only an effort to cater to ethnic the new drinks will add more than $1 billion per
populations, supermarkets are also looking to reach year to sales, according to company planning docu-
mainstream shoppers who are searching for differ- ments.
ent tastes and textures and are seeking out retailers
that meet their needs. Flavorings for coffee and flavored coffee rep-
resent almost 30% of coffee sales, according to
Whole Foods Market Inc. launched its Local Technomic. Colorado-based Le Peep’s customers
Producer Loan Program to expand the availability prefer hazelnut, French vanilla, Irish cream and
of locally made products, strengthen business part- French caramel creme coffees along with seasonal
nerships between Whole Foods and local producers, offerings such as Autumn Spice and Eggnog, while
and reinforce environmentally sustainable practices. the 494-unit Caribou Coffee chain offers flavored
During the past nine months, the company gave out shots ranging from chocolate to pumpkin pie.
loans ranging from $1,000 to $100,000 to more than
20 small-scale food producers in the U.S. An increasing number of specialty restaurants
are finding success through marketing one basic
Fully automated convenience stores, fresh- item, focusing on singular products from Belgian
cooked vending machine hot dogs, and clear-packed fries to cereal. S’Mac in New York City hooks cus-
lunches were among the innovations at the National tomers through word-of-mouth about its maca-
Automatic Merchandising Association Expo. Kraft roni and cheese, Chedd’s Gourmet Grilled Cheese
debuted several new or upcoming vending machine in Colorado pleases grilled cheese fanatics with 25
offerings such as cream-cheese-stuffed bagel bars, specialty melts, and Joe Vento, founder of Geno’s
which will hit grocery stores in early March and Steaks, stands out from the crowd because he sells
vending machines later that month. Philadelphia cheesesteaks -- and nothing else.
6
adults’ increased demand for richer- and bolder-fla- paid enhanced listings.
vored products continues to shape the food industry
and has driven manufacturers to innovate product Several web-based subscription services are now
lines by creating aromatic and spicier foods. offering their own version of quick and easy meal
planning by providing a week’s worth of recipes and
Connoisseurs craving gourmet, specialty and shopping list for minimal monthly fees. These web-
premium foods and beverages consumed mass quan- sites are targeting time-starved parents who want to
tities in 2007 valued at $59 billion, a growth of 10.9% serve a variety of satisfying and nutritional dinners
over 2006, according to Packaged Facts’ Gourmet, every week. Initially several of these sites were cre-
Specialty and Premium Foods and Beverages in the ated by parents and entrepreneurs, however, larger
U.S. report. By 2012 the gourmet/premium foods organizations are beginning to offer weekly meal
and beverages industry should rise to $96 billion, planning services as well.
with the cheese and dairy sector expected to post the
highest growth rate at 13%. Food Safety
The White House is expected to propose a 14-
Energy drinks are expected to grow at an annu- point plan that would expand the authority of the
al rate of 12%, surpassing $9 billion in sales by 2011, government’s drug and consumer product safety
according to Packaged Facts’ Energy Drinks in the agencies to inspect and certify imports in response
U.S. report. Since 2002, when total retail sales were to increased concern over recent food and product
just $1.2 billion, the market for energy drinks has recalls. The plan would involve stationing inspectors
increased nearly 440% overall to an estimated $6.6 internationally who would examine food, drugs and
billion in 2007. other products before they were shipped to the U.S.,
and would include measures to list certified prod-
Snacking continues to remain an important ucts online so the information would be available to
component of consumers daily eating and drinking consumers.
behaviors; however, the majority (61%) of U.S. and
European consumers have sought to improve the The Produce Marketing Association (PMA),
healthiness of their snacking in 2007. Specifically, Canadian Produce Marketing Association (CPMA),
healthy options have emerged as the leading choice and United Fresh Produce Association (UFPA) have
to satisfy hunger between meals, yet taste is by far the formed a joint Produce Traceability Initiative to
most important factor in determining snack choice drive broad adoption of consistent traceability best
for consumers, while brand was least important. practices throughout the produce supply chain.
PMA, CPMA and UFPA are combining forces to
Technology/Internet focus on the urgent need to use existing standards
Touch-screen computer menus are making for the most effective trace back and trace forward
their way into restaurants, letting diners place orders practices between supply chain partners -- from field
directly to the kitchen without a wait. The National to fork. Representatives of more than 30 companies
Restaurant Association says self-service technology from a broad cross section of the produce supply
will emerge as a top new trend in restaurants -- from chain including retailers, foodservice buyers and
quickservice to gourmet. produce suppliers have been appointed to serve on
the steering committee.
The state of Louisiana is developing a Web
site that will allow tourists to navigate the state’s
cultural and culinary heritage, as well as map their
own food routes for everything from neighbor-
hood sandwich shops to top-rated restaurants. The
Louisiana Culinary Trails Web site, enabled by the
state’s recognition as one of the top 15 global des-
tinations for food-related travel, plans to offer free
basic listings to all Louisiana-owned restaurants and
7
Superfruits- So far, Coca-Cola’s Minute Maid, Pepsi’s
The latest food health trend. Tropicana, Apple & Eve, Blue Bunny and
POM have released products based on the
In 2006, 8,000 food and fruits. Even Anheuser-Busch moved into
beverage products contain- the category last year with 180 Red and
ing such fruits were launched globally, 180 Blue energy drinks with açai and gogi
per Mintel Global Solutions, Chicago. berry flavoring. Last month A-B intro-
duced Bacardi Silver Pomegranate Mojito.
Superfruits are billed as being high in anti-
oxidants and other nutrients such as phyto- What’s next? “We’re seeing superfruits—
nutrients. The category includes cranber- particularly pomegranates and açai—mov-
ries, blueberries, pomegranates and tart ing into nonfood categories such as skin-
cherries, açai berries, black currants, ling- care, haircare and cosmetics,” said Lynn
onberries, mangosteen and gogi berries. Dornblaser, director, Mintel Custom
Experts say their popularity is being driven Solutions. “It shows consumers are aware of
by baby boomers seeking healthy options. superfruits and their benefits.”