Three food and beverage export experts share their best tips for exporting.
Here are five export tips for food and beverage brands. They range from understanding each market’s characteristics to focusing on a specific product category.
1. Your USP is your USP
Jamie Douglas Hamilton, the founder and director at ACTIPH Alkaline Water (a functional water brand), says that a CEO or founder’s secret is to use a brand’s USP.
Douglas-Hamilton, who spoke at the IFE conference in London, explained that he founded his business after discovering for himself how alkaline waters can help with hydration as well as recovery.
He says it is a popular water in Japan but that in Europe, the product has been difficult to sell. The business educated their target customers on its USP, and as a consequence is now growing.
Jo Colman is the chief mint officer of Summerdown. The company produces peppermint products, from soaps to tea, and his USP lies in its heritage.
We’re either the only people doing it and are the best or crazy. “We’re not a tea, soap or confectionery company. We are a peppermint-brand that has been around for over 20 years,” says he.
We have a unique story, which begins at the farm and gives our products a memorable quality. “We focus only on the unique and avoid sidetracks.”
2. Avoid being too broad
The world may be smaller now, but it is still huge.
Mark Burkett is the advisor for Department for Business & Trade’s export academy. He says, “Don’t attack the whole world and diversify.” You have to know what you are doing and be focused. Do your due diligence. “Do your homework, as there are no more excuses.”
Douglas Hamilton targeted the States but at an enormous financial and time expense. He says that he spent a lot of time and money filling out the necessary forms.
We had to transport and deliver the product ourselves, and we were paid by the US after 90 days. The UK received a check for only a fraction what they should have.
Three experts all recommended looking to the Republic of Ireland for a starting point into the European Union. Douglas Hamilton says, “This was the right market to enter.”
If there is a problem you should be prepared to go there. Burkett says that the US is a long way from Europe.
He continues, “There are a lot of companies that want to expand to the US. It’s wonderful to be ambitious to export worldwide.” But the truth is that you have to be laser-focused and know exactly where to go.
He adds that markets like the US have “50 countries, and each has their own trading rules”.
3. How to turn a difficult problem into gold
According to Douglas-Hamilton the water market in Europe is linear. Germany, for instance, has the highest consumption per capita of bottled waters, yet it is still and sparkling, and its price dominates. There are few foreign brands available in France.
He says, “We sponsor 500 sporting events per year. Everyone gets a free bottle.” It’s the best form of marketing. “Getting the product into people’s hand.”
Colman uses the word “no”, as ammunition, to turn a rejection into an opportunity. Colman, for example, will try to figure out why a company or market doesn’t want his product and work to overcome the barrier through communication or innovation.
It’s a matter of finding the best stories for those markets. This can be challenging. It can be difficult to determine the customer’s profile. I use that pushback to determine where resources should be allocated and how we can develop new leads and customers,” says he.
Burkett says that turning around a negative can be challenging, but it is also rewarding if you succeed.
4. Take advantage of mistakes
There are many obstacles to overcome when you start a business and venture into a new market. You will likely make many mistakes.
Experts agree that it can be difficult to move past mistakes, particularly in places where rules are different from those of home markets.
Burkett says that the most important step to take when faced with a major business error is to admit it.
He explains, “We say that the first rule to exporting is not panic.” There’s gotta be a way and you only need to discover it.
The client was not able to use the product because the labels were overprinted from English into Arabic.
Burkett says, “I was forced to be honest and it was the best thing I ever did. It tripled my business as they now knew that they were working with an honest person.”
They all agreed that it was better to find a solution than throw away the entire project and all the costs associated with the effort.
5. Where do you want to be?
Colman says that understanding how to develop a brand in the market you choose is key. He has already operated in many countries.
Colman emphasizes that while many businesses may aim to reach out to large distributors or chains, it is also beneficial for them start small.
He explains that every state is home to a local grocery group.
These groups are based in 20-40 different locations and have a mentality of not caring about the price, but rather wanting to find something special.
He says that if a company can get their products into the supermarkets in each state, it can be a lucrative venture.