Export experience of Lithuanian food and beverages...
Transcript of Export experience of Lithuanian food and beverages...
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Export experience of Lithuanian food and beverages companies
Lithuanian food exporters association (LitMEA)
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Giedrius Bagušinskas,
Executive director of LitMEA association
The coordinator of SMART food cluster (Lithuania)
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Export promotion
Lithuanian food exporters association (LitMEA)
www.litmea.lt
Innovations for food sector
Smart food cluster
www.smartfoodcluster.com
Clusterization
Lithuanian cluster network (www.klaster.lt)
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Content
•Who we are
•What we do and our recommendations for export promotion
•Conclusion
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Lithuanian food exporters association(LitMEA)
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Established in: 2011
Number of members: 20
Overall turnover of companies in 2018: ~ 700 mln. €
Export: ~ 320 mln. €
Export destinations: more than 50 countries
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Participation in the exhibition
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B2B matchmaking events
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SMART food cluster
Registered in: 2013
Inception: 2015
Number of members: 28
International partners: Food Products Quality cluster (Latvia),UNIMOS alliance (Poland),On Granada (Spain);Foodservice cluster (Spain);Packaging cluster (Spain);Upper Austrian Food cluster (Austria),Paper Province (Sweden),Merinova (Finland).
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International projects (1)
• Establishing of Eastern European food clusternetwork (www.eefood.net)
• COSME: European Strategic Cluster Partnership forsmart specialization investments. Project title: ESCPS3 for speeding up industrial modernization ofAgrofood packaging sectors towards Industry 4.0and digital transformation by Cluster-Facilitated X-Industry Hackathons — DIGICLUSTERS
• BSR Innovation express. Project title: Packaginginnovation for the food industry
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International projects (2)
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• Erasmus+ KA2 Cooperation and Innovation forGood Practices (KA202: Strategic Partnerships forvocational education and training). Projecttitle: BSR Cluster Manager Education programme.
• COSME: European Cluster ExcellenceProgramme. Project title: SAFE SMART FOOD. Theproject aims to strengthen cluster managementexcellence and facilitate exchanges and strategicpartnering between clusters and specialised eco-systems across Europe-SAFE SMART FOOD
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LitMEA members (1)
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LitMEA members (2)
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Lithuanian food and beverages sector
Number of companies in sector: 979 (2017)
Part of SME‘s: 98,8 % (2017)
Number of employees: 42076 (2017)
Total export: 2 142 mln euro (number 3 comparing with all sectors). It is 42 % of total volume.
Part of GDP: 4,3 percent (2017)
Export destinations: more than 130 countries
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Lithuanian food sector advantages
• We are not big but fast and flexible;
• Big choice of interesting niche products which can be produced in small quantities.
• High quality standards: BRC, IFS, Kosher and other.
• Good logistic to Nordic and European countries
• Modern packaging and design.
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Potencial for Lithuanian food SMEs
High added value productsas eco, gluten free;
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Personalized products
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Lithuanian food sector challenges
• Small quantities and wide range is good for client, but problem for productivity;
• If company starts to make small assortiment it can lose competitive advantage;
• Salaries are rising and level of costs make big pressure.
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How to represent a company to partners abroad
• Visit main exhibitions abroad
• Participate in main exhibitions with your own stand or with a national stand.
• Trade missions abroad
• Incoming trade missions
• Participation in innovation shows and conferences
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What is the World trade show? Anuga (food and beverages sector)
• Anuga (Germany)
- 7300 stands from 100 countries;
- 150000 visitors from 180 countries
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Why is it beneficial to visit exhibitions?
• Meeting your partners;
• Seeing your competitors and understanding what whey do;
• Understanding new trends in your sector and thinking what you are ready to propose for export markets;
• Understanding the nature of exhibition and planning your participation next year
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What are the benefits of participation with a stand?
• Meeting your partners. The exhibition is the cheapest place to meet your partners from all over the world;
• Meeting potential partners who are looking for new products;
• Showing your innovations;
• If you are not a participant in the main exhibition of the year, you are not in the export market
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Find your nicheBiggest food exhibitions:
• Retail: Anuga (Germany),Sial Paris, SialChina,Gulfood (UAE) .
• Eco products: Biofach (Germany)
• HoReCa sector: Internorga (Germany)
• Private Label: PLMA (Netherlands)
• Food ingredients: HI Europe (Germany)
• Gluten free, vegan products: Free From Europe (Netherlands)
• Duty free and travel retail: TFWA (France)
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What are the benefits of trade missions
• Research of the market;
• Database of potential partners;
• Direct contacts with people who are interesting for you;
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Who is our client now
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Where we want to be
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Challenges of transition
• Decrease in emigration;
• Imigrants consume more local food;
• The number of ethnic Eastern European food stores is decreasing because of decreasing number of consumers
• The main player in food market – Poland. Eastern European food is considered to be Polish food.
• Main retailers create Eastern European food sections where Polish products dominate.
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Changes of market
• Private Label (PL) manufacturing grows. 30-40 percent of assortment is PL. Other major part of assortment is world famous brands (e.g. Nestle)
• Discounters (e.g. Lidl, Aldi) are getting stronger
• E-retailers (e.g. Amazon) grow
• ‘‘ Food nationalism‘‘ is getting stronger,consumer loyality for national food products and producers is growing.
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Conclusion for export
• Be active in the export market;
• Don’t expect a fast result;
• Learn and improve every year and show your progress
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Innovations are future of SME‘s
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Conclusion for innovations and internationalization
• Ability to create and offer innovative products can make the company exceptional in the market
• When creating products for international market, try to collaborate with foreign experts-technologists
• Try to attract new minds (e.g. lithuanian/foreign students studying in Lithuania/abroad, lithuanian and foreign scientists, experts from abroad) ;
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Thank you for your attention!www.litmea.lt
www.smartfoodcluster.com