Gulfood Dubai February 2018
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1 Gulfood Dubai February 2018
2 2 3 Contents Market Overview... 3 Statistics... 4 Market Insights & Retail Tour Testimonials... 8 Market Overview A lack of agriculture production in the Gulf region means that food imports are significant, forming 70% of all food requirements. This is a huge market, and it is estimated that by 2020 the United Arab Emirates (UAE) will spend US$16.7 billon on food products (Source: Business Monitor International, UAE Food and Drink Report Q1 2017). The UAE is also a major re-exporting hub due to its strategic location. This high dependence on imports, coupled with rising incomes, presents enormous opportunity for Australian food and beverage exporters. Indeed, food and agriculture exports to the Middle East and North Africa region are worth A$3.9 billion annually, bolstered by the 130 passenger flights each week between Australia and Dubai that are loaded with fresh produce, dairy and meat (Source: Austrade). Due to the diverse population, taste preferences vary widely in the UAE. However, in recent years the growing expatriate population has led to a shift in food habits from traditional to Western-style convenience foods. functional food and beverage items due to increasing health awareness. Although the UAE s open trade policies mean that the market is highly competitive, Australian products are very popular as Australia is considered a source for premium, clean and green whole and organic food with product traceability. Key sector opportunities exist in the following categories: Health food Organic food Convenient food, such as ready-to-eat, chilled, bakery goods and dairy products Processed food, such as canned/preserved and frozen food Fresh, ready-to-cook products such as pre-cut vegetables and pre-marinated meats Soft drinks and flavoured water Opportunities for Australian food and beverage exporters exist predominantly in the high-value processed food sector, as well as whole, organic and
3 4 5 Statistics At Gulfood 2018, the FIAL stand had over 1300 connection requests. Over 1200 connections made in person, with over 150 being considered as hot leads by suppliers. The FIAL stand was 63 square metres, which is 17% bigger than in For the first time, FIAL and Food SA aligned their marketing efforts to use similar overhead graphics, to create greater impact for the Australian brands. This year, the FIAL stand had more sampling pods than showcases, with 16 pods and 12 showcases. This indicates that there is a stronger interest from companies to attend the show in person. Of the 16 companies that attended the show and had sampling pod s, 10 were from NSW, 2 were from QLD, 2 were from VIC, and 2 were from WA. Of the 12 companies that sampled there products, 5 from WA, 2 were from NSW, 1 from SA, and 4 were from VIC. 47% of the buyers that made connection requests with companies on the FIAL stand came from the UAE, 9% came from Kuwait, 7% came from Jordan, 5% came from India, 5% came from Australia, and the remaining 27% came from a range of countries scattered throughout the Middle East. From within these buyers, 36% were importers, 30% were distributors, 26% were buyers from supermarkets, and 7% were brokers. The categories of interest for these buyers, in order of demand, were: 1. Spreads, sauces, condiments, herbs, spices and dips 2. Cereal, pasta, rice, flour, sugar, baking and grains 3. Dairy 4. Soft drinks and mineral water 5. Chocolate and confectionary 6. Lamb, beef, pork (fresh/processed) 7. Seafood (fresh/processed) 8. Poultry and eggs 1300 connection requests 1200 made in person 150 hot leads GULFOOD % bigger than % Buyers from UAE 36% Importers FIAL stand was 63 square metres 30% Distributors 26% Supermarket Buyers
4 6 7 Market Insights & Retail Tour 30 participants attended the market insights and retail tour led by FIAL. Four key supermarkets were visited: Spinneys, Lulu s, Choithrams, and Al-Maya. The Australian food and beverage brands/suppliers that attended were able to scope out the competition, have a look at store layouts, product positioning, and promotional tactics, as well as gaining a deeper understanding of pricing. At Choirthams and Al-Maya, companies were introduced to the supermarket s buyers and given the unique opportunity to directly pitch their products while in-store. A representative from SA Austrade Trade Start, Margaret Howie, also attended the market insight tour with FIAL. For Margaret, Visiting the supermarkets is good, but having the opportunity to meet the buyers directly is fantastic. This is how suppliers will be able to start real discussions regarding export, and having their range stocked in store. Well done on setting up these meetings, this is the most valuable part of the tour.
5 8 9 FIAL stand at Gulfood Testimonials Brookfarm Brookfarm was started by Pam and Martin Brook in 2000, after they turned a run-down dairy farm in the Byron Bay hinterland into a working macadamia farm. They began selling toasted and natural muesli, loaded with macadamias, at their local market. They now sell a range of products including muesli, granola, health bars, macadamia oil and nuts throughout Australia. I really like being part of a premium Australian food stand it good for all our brands (non-competing) to be represented together. We would definitely do it again especially for new markets Jackie Barnes, Export Sales Manager Products displayed on the FIAL stand at Gulfood While they have previously shown products at a trade show in Singapore, this is the first trade show they have attended. They connected with many buyers and distributors, and collected 40 business cards, with around 10 of these looking like excellent leads. They had a lot of enquiries about their organic products and free-from products, and their gluten free muesli range was incredible popular. I m 100% certain we ll get a sale out of the show Jackie Barnes, Export Sales Manager This is a perfect stepping stone for small to medium businesses to enter new markets Jackie Barnes,Export Sales Manager The Taste Australia stand being prepared for visitors
6 10 11 Testimonials Bee farm Morlife Bee Farm is the product of a partnership between Roger Masters and Mariano Jenik, who combined have over 50 years of experience supplying high quality honey to international customers. Gulfood is the first trade show Bee Farm has attended with FIAL. They were very pleased with their results they collected 36 business cards, with about half being high-quality leads that they are excited to follow up on. I had zero expectations of the show, but was surprised by the level of interest. The market likes our product it s a good match Peter Masters, business owner Choose your show according to your product. Do your research. We know that the Middle East is a big consumer of honey and Saudi makes up 70% of that market. We came to Gulfood to find an entry point Peter Masters, business owner Founded in 2000 by Dr Warren Stewart, Morlife s simple mission is to give you more out of life through nutrition. Based on the Gold Coast, they sell their wide range of products Australia-wide and internationally through major supermarket chains and health stores. They have attended several trade shows with FIAL. At Gulfood 2018, they made around 60 connections, of which 6 are hot leads. For Cheryl Stewart, Export Manager at Morlife, the UAE region is a great market to start out, and they have put a lot of effort into creating relationships in the region. For Cheryl, success in the UAE will probably take a few trips, but there is a much higher need for safe Australian products than there was five years ago. It s nice to be working with other Australian companies, and jointly representing Australia. - Cheryl Stewart, Export Manager I ve spent time building the relationships I already have, and now they are going to take on extra lines. As soon as product registration is finalised we will have around 20 new lines stocked in supermarkets in the UAE. Cheryl Stewart, Export Manager This show is one of the better shows I ve seen or been involved with. We met our goals we were introduced to relevant Austrade commissions, and distributors across the Gulf and collected a reasonable number of qualified leads Roger Masters, business I am truly grateful to be part of the FIAL stand. I know we ve had a really successful show which we will definitely get sales out of, but I expect it to take 6-months to finalise some deals. - Cheryl Stewart, Export Manager owner
7 For further information on this report please contact: Ron Choong General Manager, International
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