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bi-monthly Newsletter

March 2013 ISSUE No7

EXPO VIEW TOP STORY Greek Exports Awards 2013

Awarding Greek Exporters... Expoaid received the second prize in the category "export enabling companies", in the context of «Greek Exports Awards 2013». This constitutes a significant recognition and reward of the innovative approaches the company uses to develop the export activities of its partner producers in the 3 years of its operation.

In this Issue:

TOP STORY : Greek Exports Awards 2013


BUSINESS ISSUES: High price impact on exports of olive oil


BUSINESS ISSUES: The effective use market research for Exports


BUSINESS ISSUES: Corporate communication in times of crisis


The Greek Exports Awards 2013 were held at the Divani Apollon Palace & Spa in Kavouri, in the context of the organization of Greek Exports Forum 2013, by the Union of Employees of Diplomatic Economic & Commercial Affairs, in partnership with the Ethos Media SA . In the category "export enabling companies", Expoaid achieved the second place after the National Bank of Greece, while the third place was awarded the EULER HERMES EMPORIKI. The fundamental philosophy of Expoaid has always been based on two key factors. the take-over of the export depart-



ON THE ROAD Gulfood 2013


ment of the partner producer with the form of outsourcing The creation of synergies between

the producers that create a multiplication factor in terms of cost reduction and sales increase. Mr. Dimitris Dousmanis Export Manager, who received the award for Expoaid made the following statement: «Today's award constitutes a significant recognition which is based on the trust and faith our clients and partners show to us on everyday basis, enabling our work and our expansion in the international markets. Parthenonos 1,N. Erythraia Athens146 71Greece / Tel: +30 210 6250365 / Fax: +30 210 6209905


High prices lead to lower exports and pressure on supermarket suppliers


bility. Every day the market is fed with news that nurtures price volatility.

On the other hand the large S/ M chains continue to resist acceptance of the new increased prices. They From August 2012 the prices of ex- refuse to pass them on their shelves, tra virgin olive oil follow a constant as they justifiably fear a potential upward trend, showing a total sig- adverse consumer reaction. nificant increase. Higher olive oil prices combined We experienced a minor decrease in the price levels in November, but as from December to date (end of March) there is a constant growth trend which has led to the levels of 3050 € per Metric ton.

with global economic crisis has already begun to affect exports of the major olive oil producing countries. In the first quarter of 2013 Italy recorded export cuts of 21% followed by Italy with 21%.

The market is currently characterized by a prolonged upward trend in prices combined with the lack of sta-

Edible olives price trends and updates. The prices of Kalamata Olives are within the last year’s levels, exhibiting stabilizing trends. This year's crop is considered as better due to increased availability of large sizes. Green Chalkidiki olives exhibit lower price levels than last year with the exception of the very large sizes (S.S Mammoth) in which there is limited availability. The prices for Natural green olives of Amfissa are set at Page 2

lower levels vs last year. There is an imminent need to pay attention to their processing at the collection points, as every year the quantities treated naturally decrease due to lower demand for this product. This trend will lead the producers to use this olive type for CONFIT (oxidation) processing. As a result of this a highly palatable natural green olive will disappear from the international markets. The delay in maturation of Natural black Amfissa’s olives, resulted in limited quantities and increased price for the whole category.

Gap in set limits of pesticide residue 98 containers of Italian olive oil and some Spanish have been blocked in the ports of N.Y and SIATL. Evidently, the analyses on the samples retained at the customs, revealed residues of "Chlorpyrifos Ethyl” insecticide, in concentration up to 0.020mg/ kg. (According to EU legislation the maximum limit 0.25mg/kg). This particular insecticide is used against olive fruit flies in all the olive oil producing countries. In the USA, while its use is allowed in a number of cultivations, it is specifically prohibited in olive farming.

Parthenonos 1,N. Erythraia Athens146 71Greece / Tel: +30 210 6250365 / Fax: +30 210 6209905



Expoaid is sharing the thoughts of professionals on Market research, communication and identity. In collaboration with them we are able to offer you further insight into consumer needs, market views and your image. Along with the sharing of our ideas we have established a cooperation through which we are able to offer innovative services, for those who are willing to learn and take that extra step towards successful export marketing.

The Effective Use of Market Research for Exports Most food and beverage companies have always considered both desk and field market research as a fundamental part of their business development procedure. Desk research is that which is already available for analysis or purchase e.g. existing market data or reports, whereas field research is when data is collected at source from the user e.g. from the consumer, and has specific, predetermined objectives. Exporting companies invariably fall into three broad categories: Those that use both desk and field research for their foreign markets 2) Those that would like to undertake field research but need to limit costs & use desk research only 3) Those that don’t see the need to research their new markets because they ‘believe’ in their product and their chosen local distributor The majority of exporters fall into categories 2 and 3. That is, those who either cannot allocate resources for the large cost of field research and those that don’t believe they even need to. To these exporters I would ask the question – doesn’t the lack

of insightful research cost more money and time than the very cost of research itself? Furthermore, is it reasonable to expect your distributors to know the full potential of your product in that country without the use of research? Exporters who look beyond the sales statistics and attempt to fully understand the habits and attitudes of their target markets reap the benefits of effective research. Some, but not all discover a ‘world of untapped potential’ for their product whilst others at the very least are better guided towards more efficiently located promotional budgets. Any exporter that believes that their presence at trade exhibitions alone is enough, will soon realise that the competition – particularly among Greek exporters – is increasing by the month! During an economic crisis the priority for most businesses is justifiably ‘cost cutting’. It is therefore difficult to justify an additional cost. However, field market research should not be considered a ‘cost increasing factor’ but rather a tool that contributes to the reduction of risk and a long term investment in the success of your product. By: Demetra Pallis

In a list of “Top 10 Export Errors: Common Mistakes & Pitfalls” where thought is given to the common mistakes of unsuccessful and struggling exporters, the number one on the list reads…

No Market Research Page 3

Parthenonos 1,N. Erythraia Athens146 71Greece / Tel: +30 210 6250365 / Fax: +30 210 6209905



By: Anastasia Doukakis,

The survival of a company in the globalized market or otherwise managing corporate communications in times of crisis ... The consumer purchases along with the product , the values and the image the company has in the marketplace Corporate Communication consists of two equally important axis. The corporate image, i.e. the point of view of society for the company, and corporate reputation, that is, the values attributed to the people of the company; if we sum the strength of corporate image and reputation we are securing the "building" of a powerful brand, in other words the image of a company that consumers trust in purchasing, investment and at a social level. If you steal my money, you’re just stealing trash. But if you steal my reputation, you’re robbing me of something that doesn’t make you reacher, but makes me much poorer. Οthello, Shakespeare Undoubtedly, the corporate image is one of the most important "Assets" of each company, the greater the vision of the company, the further away it plans to travel, the more it must ensure that "fragile" and "variable" competitive advantage of a good reputation and image. In order to survive and secure a successful route in today’s globalized marketplace, a company has no other alternative but to invest in the Corporate communication, in other words, the image and reputation. Today more than ever, Business Communication is one of the key ingredients in the recipe of a successful course of the company’s products. It takes 20 years to build your reputation , and just five minutes to destroy it, Warren Buffett or otherwise "the most successful investor of the 20th century" A major blow to the reputation of the company may undermine the confidence of the consumers, and also its "stakeholders", ranging from improper communication and malicious attacks on social media, to environmental accidents and defective products. It is more than certain that a company today cannot remain out of public sight as Internet has the power to rapidly spread positive and even more rapidly negative information. Business Communication is intended to cover the "vulnerable" point, to handle any negative publicity in four stages: prediction and prevention of the problem, early communicative positioning, strategic planning to minimize the damage and the restoration of confidence in the company.

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Modern consumers are looking for socially responsible companies In younger generations, the consumer expectations for socially responsible companies have increased. The younger consumers, along with the increased power of “non governmental organizations” are more sensitive to environmental and communications issues, forcing businesses to be held accountable for their actions, by adopting practices of responsible activity. Everything has to do with trust The prerequisite for the success of any communications program is trust. Trust is inspired by the company to the employees, the consumers, "stakeholders", through active dialog. In practical terms, this means that moving from the model of corporate inertia to the field of social responsibility and commitment, to costs and prices of their products, to corporate activities that reflect their corporate values and business ethics of the company. Good reputation starts in our homes Corporate reputation must be managed as an investment that aims to yield long-term profits. This investment must start from our own home, our business, and people from each hierarchy level. The executives of the company constitute the key axis, the cornerstone, for the diffusion of its good reputation, from the level of the local community to national and international level. Established trust brings reliability. The entrusted company learns from its mistakes, assumes its responsibilities, commits to realistic promises for their corrections, while maintaining the communication with the "stakeholders", at all stages. Parthenonos 1,N. Erythraia Athens146 71Greece / Tel: +30 210 6250365 / Fax: +30 210 6209905



LCA analysis a tool that evolved into a standardization process

We aim to make our planet greener… our products sustainable and our margins improved. Composite tasks require reliable tools for examination and planning. One such tool is LCA. This concept considers the entire life cycle of a product. The term “life cycle” refers to the major activities in the course of the product’s life-span from its manufacture, use, and maintenance, to its final disposal, including the raw material acquisition required to manufacture the product. LCA is a technique to assess the environmental aspects and potential impacts associated with a product, process, or service, by:  Compiling an inventory of relevant energy and material inputs and environmental releases  Evaluating the potential environmental impacts associated with identified inputs and releases  Interpreting the results to help decision-makers make a more informed decision. The assessment is carried out when specific impact categories are selected, inventory parameters are sorted and assigned to specific impact categories and finally the impact is measured in common equivalence units, which are then summed to point out the final impact on the environment. These are the compulsory steps in the ISO 14044:2006. One can add more steps depending on scope of the assessment. By performing an LCA, analysts can:  Develop a systematic evaluation of the environmental consequences associated with a given product.  Analyze the environmental trade-offs associated with one or more specific products/processes to help gain stakeholder (state, community, etc.) acceptance for a planned action.  Quantify environmental releases to air, water, and land in relation to each life cycle stage and/or major contributing process.

   

Assist in identifying significant shifts in environmental impacts between life cycle stages and environmental media. Assess the human and ecological effects of material consumption and environmental releases to the local community, region, and world. Compare the health and ecological impacts between two or more rival products/processes or identify the impacts of a specific product or process. Identify impacts to one or more specific environmental areas of concern.

Timeline of LCA 1960-The beginning : Concerns over the limitations of raw materials and energy resources sparked interest in finding ways to cumulatively account for energy use and to project future resource supplies and use. Later in the 1960’s - The predictions for rapid depletion of fossil fuels and climatological changes resulting from excess waste heat stimulated more detailed calculations of energy use and output in industrial processes. 1969- Researchers initiated an internal study for The Coca-Cola Company that laid the foundation for the current methods of life cycle inventory analysis 1970-1975-The process of quantifying the resource use and environmental releases of products became known as a Resource and Environmental Profile Analysis (REPA), as practiced in the United States. In Europe, it was called an Ecobalance. 1975-1980- Life cycle inventory analysis continued to be conducted and the methodology improved through. European interest grew with the establishment of an Environment Directorate (DG X1) by the European Commission. 1988- The need to move beyond the inventory to impact assessment has brought LCA methodology to another point of evolution . 1997-2002- The pressure from environmental organizations to standardize LCA methodology, led to the development of the LCA standards in the International Standards Organization (ISO) 14000 series. Page 5

Parthenonos 1,N. Erythraia Athens146 71Greece / Tel: +30 210 6250365 / Fax: +30 210 6209905



GULFOOD 2013 DUBAI a global meeting by far... Gulfood exhibition bigger than ever attracted 4200 exhibitors from 110 countries. With rumors that a waiting list of about 1000 exhibitors was left behind an expansion of 13% versus last year, Gulfood pointed the desire to enter and gain a share from what remains a promising target market for many. There is no doubt that the international food industry

is looking to the Middle East region as a promising market, and Dubai in particular with consolidated wealth and large foreign population. The market however has taken hits by the economic upturns in the recent years, and although opportunities exist, severe cultural boundaries remain strongly in place. Dubai may be the gateway into the region but the largest food importer remains the relatively closed market of Saudi Arabia. Expoaid presented at the exhibition the olive oils of Karpea and the full range of FOS products with a main focus on olives. The initial feeling from the exhibition is positive as the overall interest for the presented products was heightened. Was this a hype, or a true interest from a market that is standing up to the increased expectations? This yet remains to be seen‌.

Papadimitriou is currently re-vamping its brand. The company has been following a successful route of expansion and growth, increasing the product distribution along with the product range itself. The new brand appearance is applied at both corporate and product level.

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Parthenonos 1,N. Erythraia Athens146 71Greece / Tel: +30 210 6250365 / Fax: +30 210 6209905