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EXPO VIEW

bi-monthly Newsletter

November 2012 ISSUE No 5

EXPO VIEW TOP STORY

SIAL exhibitors with Expoaid

EXPOAID at the SIAL Exhibition The Sial exhibition is considered one of the largest food and beverage events held in Europe. With 40,000 professional visitors from the food industry and 5,900 French and international exhibitors from 100 countries presented in 19 exhibiting sections the bound to make an impact to those participating or visiting.

In this Issue:

TOP STORY: Expoaid at the Sial Exhibition

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BUSINESS ISSUES: Olive Oil prices riding high – fact or fiction?

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BUSINESS ISSUES: Practicing country segmentation

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GREEN PLANET: The Sustainability Forum

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SUCCESS STORIES: Papadimitriou

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PRODUCT NEWS: Karpea

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PRODUCT NEWS: FOS

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Positioned in the busiest segments of Hall 5a our stand presented a concise and comprehensive coverage of Greek products under one roof, with olives, olive oils, balsamic vinegars, condiments, mustards, olive oil, sun dried tomatoes and pure sea salt.

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


EXPO VIEW

BUSINESS ISSUES

Olive Oil prices riding high – fact or fiction? The turmoil in the olive oil market has started. Expectations and speculations are pushing prices high with the excuse of a drop in the production of Spain, which has been affected by poor weather conditions. What is the reality in figures behind this pressure? Is it hoax or is it a fact that we should be all prepared for? The current figures forecasted by Italians are the following: 10% reduction in Production of Italy estimated to reach the 340.000 tns Stocks of Italy are estimated in September 2012 at6.000 – 7.000 tns

The Italians believe that Greece will have an increase of +10%,

With the current surplus of Spain, and a respective increase of +19% and 20% for the olive oil production of Greece and Tunisia, how can the upward price trend be justified, let alone kept for the whole next season?

The Italians believe that Greece will have an increase of 10%,reaching the levels of 280.000tns. At the same time Tunisia may reach 110.000 tns, while Morocco faces adrop in production at60.000 tns. Syria will drop to 15.000 tns and Turkey should remain stable at 90.000tns. The estimation of AGENCIA PARA EL ACEITE DE OLIVA for 2011 – 2012 The production of Spain :1.611.300tns Spanish stocks by the end of September :700.000tns With an average Sales :120.000tns Spanish exports :1.140.000 tns Internal consumption :300.000tns And the respective estimations of IOOA(International Olive Oil Association) Expected drop in global production :19% 2011 /2012 : 3.389.000tns 2012 / 2013 : 2.756.000 (projection) This means that the in absolute figures the global production would drop by 633.000tns. Apart from the drop coming from production of Spain they forecast the following for some of the key players in the field - Italy-10%, Greece +19%, Tunisia +20%

Think… think…. Think.. Even if the complete reduction in global production originates from Spain(-633.000 tns's), its production will be limited to mere 1.000.000 tns!! Let us take the worst case scenario: Production of Spain 900.000 Tns Stocks 2011-2012 700.000 tns Total available :1.600.000 tns Export and domestic consumption: 1.440.000 tns Even with an upward trend in exports of 6% and domestic consumption stable (it was declining by 3% this year), and predicted total sales of 1.508.400 tns, we will end up with stocks of 100.000tnsin Spain. With the current surplus of Spain, and a respective increase of +19% and 20% for the olive oil production of Greece and Tunisia, how can the upward price trend be justified, let alone kept for the whole next season?

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


EXPO VIEW

BUSINESS ISSUES

What about Edible OLIVES? In the same way let us have a look into the figures of the edible olive production. AGENCIA PARA EL ACEITE DE OLIVA Before harvest 2011/2012 stocks were 367.590tns. The production of 2011-2012 is estimated to about 520.560 tns. Sales in the first 9 months 464.420 Tns. So the new yearwill start again with stock 350.000 tns. ASASA Estimates a fall of the Spanish production of olives to 426.000 Tns, the lowest in the last 6 years. Stocks are estimated to be 280.000Tns. Sales year on year :620.000tns covering both domestic and export markets. This would result in a new years opening stocks of80.000 tns

Olives

As for the other main producers the predictions are the following: Greek production : 100.000 tns reduction -9% Italian production : 58.000 tns reduction -3,3% Portuguese production : 10.000 tns increase +10% French production : 2.000 tns increase +50%

Considering the situation with the olives and comparing it to olive oil, why with the same reasoning don’t we see pressure to increase prices?

Practicing country segmentation Strategic segmentation of export opportunities is the ‘’primary task” for export managers. We divide countries into three groups: Country profile Strategic (focus)

Large (population +50mm) Global retailers High complexity

Priority (manage)

Mid size (population 10mm) High GDP Mid complexity High Category BDI

Opportunistic (profit)

Profitable Opportunities Low GDP Low complexity

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Investment required Significant investment in brand Market research Management visibility Moderate investment in brand Managed by Export Manager

Business model

Examples

Local office Distributor or joint venture

Japan USA Mexico China Germany

Distributor

Minimal investment in brand

Distributor or direct to the retail

Argentina Australia Canada Korea Taiwan S. Africa Saudi Arabia Caribbean Central America Middle East Africa

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


EXPO VIEW

BUSINESS ISSUES

Segmentation factors The choice of segmentation factors and criteria may vary from a company to a company. The choice may be as simple as population, size of the category, proximity to your producing plant, per capita spending. For example some Greek brand owners place a strategic focus on Balkan countries and process only occasional opportunistic shipments to complex countries such as China.

Leader

Mix of Countries Most companies can dedicate focus on a strategic launch into only one or two strategic countries at a time. It is appropriate to create a growth plan aimed at a mix of strategic, priority and opportunistic countries.

‘’Everyone wants

Market Share expectations Your export read map should also be adjusted based upon your market share expectations. Generally, here are 3 scenarios for a brand to pursue. Leader: Brand investment and innovation to become No1 in category Player: Brand plans to complete effectively, obtaining a market share of 5% - 20% Participant: Niche brand objective in incremental shipments with little or no investment.

to be a category leader or player.’’

Lessons learned Adjust expectations to:  Investments in brand support  Management oversight

Everyone wants to be a category leader or player. To achieve this, you need local market research, innovate, maintain competitive pricing, invest in marketing, strong sales team, as you do in your home market. Project fail as brands want category leadership but invest only to ‘’niche’’ levels.

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


EXPO VIEW

GREEN PLANET

ATHENS, Oct. 11 /CSRwire/ - The Sustainability Forum A training, networking and professional development event, co-organised by EuroCharity and

AIT (Athens Information Technology), was an overwhelming success. This one-day event took place on Friday, October 5 at the AIT's state-of-the-art venue in Peania, located close to the Athens International Airport. It was attended by over 60 corporate executives from different lines of business, including the financial, banking, pharmaceutical, communication, construction, telecommunications, energy, IT and retail sectors. Several NGO leaders, professionals and students from Greece and Switzerland also attended the Forum. The one-day Forum had an educational aim and focused on specific practical aspects of sustainability. International speakers shared their hands-on expertise with the delegates of the Sustainability Forum 2012, through 12 parallel expert workshops. These workshops focused on issues such as the future of sustainability reporting, core principles of sustainability, CSR communications, green ICT, the value of life cycle assessment in understanding sustainability at the product level, economic impacts of sustainability, the sustainability strategy, sustainability reporting assurance, calculating and offsetting CO2 emissions, leadership, waste management, sustainability and social media, and environmental impairment liability. During the plenary session, Ms. Elina Sviklina, Manager Report Services, Global Reporting Initiative (GRI), presented "The Future of Sustainability Reporting". Her presentation focused on the developments of the GRI G4 Guidelines, integrated reporting and A training, networking tools that can help companies in the reporting process (software, Sustainability Disclosure and professional Database, data collection and analyses, etc.). Other workshop tutors included Mr. Derwin Johnson, a U.S.-based independent senior development event, co communication consultant with more than 30 years of experience as a journalist, -organised by communication executive and educator, and Dr. Annie Pearce, an Associate EuroCharity and AIT Professor in the Myers-Lawson School of Construction at Virginia Tech. (Athens Information EuroCharity held a workshop entitled "Core principles of sustainability". In this course, Mr. Technology), was an Michael Spanos, Managing Partner, Mr. George Tsiakalakis, Business Development overwhelming success. Manager and Ms. Ilektra Liberopoulou, Marketing & Communications Manager, EuroCharity, provided a sustainability overview focusing on the green economy, sustainability strategy and marketing trends. The Forum came to a close with the distribution of attendance certificates and a cocktail reception.  Supporters: MBA International, Technical University of Crete, Panteion University of Social and Political Sciences, RICS Hellas, Hellenic Bank Association and the Hellenic Network for Corporate Social Responsibility  Airline Partner: Air France-KLM  Accommodation Sponsor: Athens Ledra Marriott Hotel  Carbon Neutral Partner: Green Evolution S.A.  Social Media Partner: Think Plus  Printing Sponsor: PressiousArvanitidis  Cocktail Partner: Stoli (STOLICHNAYA® premium vodka) Coffee Partner: Illy Communication Partners: "Kerdos", "Kathimerini English Edition" and "Athens News" newspapers, "Re:CSR", "Energy World", "EPILOGI" and "PERIVALLON 21" magazines, "CSRweek" weekly e-newsletter, the csrnews.gr and energyonline.gr portals, Boussias Communications, Think Plus and -- internationally -- CSRwire and Ethical Performance. Page 5

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


EXPO VIEW

SUCCESS STORIES

For the second time in 8 years, original Greek products of PAPADIMITRIOU SA were selected by the Sial Innovation event, which took place during the International Food & Beverage Sial 2012 exhibition, in Paris .

Original Greek products of PAPADIMITRIOU SA were selected by the Sial Innovation event

More specifically, the two new naturally infused Balsamic Kalamata Vinegars, with Greek Honey and Fig managed to join the prestigious list "Sial Innovation 2012: Global Food Trends and Innovation". The products caught the eye of the jury for their physical characteristics and nutritional character as they produced directly from currants with natural extracts, no preservatives and no artificial colors or other additives. Both products were presented in a specially designed space at the "heart" of the exhibition center Parc des Expositions in Paris, offering an exceptional exposure to thousands of international visitors.

Setting a foot in Central Europe In the past 8 months Czech and Slovak consumers have become acquainted with Papadimitriou Kalamata Balsamic Cream and Kalamata Balsamic Vinegar. Both products have achieved strong presence in the international retail chains. Their original flavor and the absence of preservatives have been appreciated by consumers who with their choice have made our balsamic cream their favorite item. The sales of the products indicate that consumers are interested in natural and original products that fit well in the concept of healthy diet without any taste compromise. The products have been supported by series of PR activities which aim to familiarize the consumer with the many culinary uses the products offer.

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


EXPO VIEW

PRODUCT NEWS

Olive oils with a buzz

What happens when you combine the naturally infused Extra Virgin Olive Oils with the convenience and success of Karpea’s Extra Virgin olive oil in a spray?

The combination is explosive, natural character, taste and convenience all in one spray which accounts for one calorie. You do not really need any more reasons to try this product? Available in 3 flavors – 100% natural with wild oregano, chilli peppers and garlic. The product was presented at our stand at Sial exhibition along with the already established spray and the glass variants of 250ml of the infused olive oils.

Athinolia Variety Karpea Extra Virgin Olive Oil of Athinolia variety has been awarded a two star Superior Taste Award by the jury of iTQi . The Superior Taste award is well known and respected as the process includes a blind test by 120 top Chefs, followed by a strict sensory analysis process. Apart from the imminent recognition of quality this process provides a reliable feedback from a neutral party commenting on organoleptic criteria such as first gustatory impression, aspect, smell, texture, taste, after-taste and retro-olfaction. This is just a verification of what we already know about the unparalleled quality of the Extra virgin olive oils Karpea offers in its range.

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


EXPO VIEW

PRODUCT NEWS

Fos range has a brand new addition. We have gone wild and gone local. Our special selection of wild herbs and natural sea salt flakes comes directly from the hands of the locals who know where to get the best. The crispy thin flakes of salt are hand collected from natural salt ponds that dry out during the hot and windy summer days on the rocky coast of Mani South Peloponnese. These flakes are unrefined keeping the iodine of the sea, without any additives or anticaking agents. From the vast variety of wild herbs we have selected wild Oregano and wild Thyme. Collected on the mountain slopes of Mani Greece, rich in essential oils and very fragrant they are rightfully considered the most flavorful, herbs the world. These robust and distinctive herbs have unique medicinal properties, FOS NEW PRODUCT RANGE while their taste enhances your salads, sauces and marinades. Handled with care, collected during their season, we protect the environment by allowing the herbs and the salt ponds to replenish in their natural cycle.

This year FOS will bring all presents. Perfect idea for Christmas, but at the same time a gift with character that is suitable for all year round for business and personal occasions. The gift box contains a selection of our finest products .

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


Expo View Issue 05