United Kingdom The UK Food and Drink Market

Compiled by:

Hyatt Consulting

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Foreword
The UK Food and Drink Market is a report commissioned by the Swiss Business Hub UK as part of the continuous support of Swiss companies in their efforts to improve their export potential in a sector which is particularly important for Swiss SMEs. The report was researched and written by Hyatt Consulting. Hyatt Consulting is a UK based consulting business, specialising in the support for non-British companies intend on entering the UK market. The company is owned and managed by Alan Highet who has extensive experience in the food sector. Since 2008 Alan Highet is a member of the Pool of Experts and has successfully worked for other international trade promotion agencies (e.g. from Norway). Hyatt Consulting offers a tailor made and personalised service. In the context of this report the Swiss Business Hub UK encourages enquiries from Swiss SMEs who may be interested in making use of this service. For further information please contact Hyatt Consulting or any of the parties shown below.

Osec Business Network Switzerland Stampfenbachstrasse 85 8035 Zrich Switzerland Tel: +41 44 365 5151 Fax: +41 44 365 5221 Web: www.osec.ch / www.poolofexperts.ch Email: info@osec.ch

Swiss Business Hub United Kingdom c/o Embassy of Switzerland 16-18 Montagu Place London W1H 2BQ United Kingdom Tel: +44 20 7616 60 67 Fax: +44 20 7723 64 55 Web: www.eda.admin.ch/london Email: sbhuk@lon.rep.admin.ch

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Executive Summary
We live in the most challenging economic times in recent memory. Anyone reading this report should recognise the pace of change and fluctuations in buyer behaviour that we are currently experiencing, and make allowances when reflecting upon what is largely a review of secondary data that was collected many months ago. We refer, for example, to the UK Governments most recent Report on Food and Drink Purchases and Expenditure. It was published less than two months ago, but it refers to 2007 data. So much has happened since. That said, the purpose of this report is to provide an indication of opportunities for food producers in Switzerland to develop profitable business in the UK. It is designed to inform companies that might be considering entering the market for the first time, or who have made progress and now seek to consolidate the gains they have made, by providing a basic understanding of the UK markets size and its structure. Much has been written recently about the effects on food retailing of food price inflation, recession, supermarket price competition, the growing popularity of discount food retailers, and consumers move generally towards cheaper options. In foodservice, the difficulties facing many businesses are well documented with references to several pubs closing every day, for example, and restaurants struggling. Interest rates may be at their lowest since the Bank of England was founded, but fuel and energy costs for industry as well as consumers are still high. Yet the major supermarket chains have reported better trading recently than stores in other sectors; and while this report was being finalised two fast-food chains announced substantial expansion plans and job-creation. While some large food businesses are re-structuring, we know small producers who are seeking new manufacturing capacity. The UKs food market is recognised for being diverse, embracing many culinary cultures. Its variety provides a huge choice for consumers; and while many now prefer to buy budget lines instead of middle-positioned brands and the retailers own mid-priced options, markets do still exist for special products representing a reward for economising elsewhere. The media might report trends to home-cooking; but still the UK is a nation that is time-poor, and comprising more, smaller families so convenience continues to drive many purchases. Market data varies depending on the source, but with 70bn eat-at-home expenditure and 79bn foodservice (UK government figures), a population of 60m, around 90,000 retailers from hypermarkets to convenience stores, 260,000 catering establishments in 2006 including the profit and cost sectors, and 14,000 wholesalers, the market is substantial. Swiss food producers are already present in the UK, notably in the chocolate and confectionery sectors, and on the dairy counter; but the current market conditions mean that to achieve growth these existing, and new, Swiss exporters need to demonstrate uniqueness that will attract consumers in the first place, and a superior quality and flavour to bring them back for more, at prices that might not be cheap but that represent excellent value. Retail and foodservice buyers, presented with such genuine competitive advantage, will be interested. It is difficult and hazardous to generalise. Economic conditions in the UK, as elsewhere, are extremely difficult, but opportunities do exist for Swiss producers to explore. The outlook, for those with the product quality and a competitive attitude, is not all gloomy.
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The body of this report considers the key issues facing prospective exporters to the UK before summarising the key product sectors, the retail and foodservice structure, and some pointers about addressing the opportunities. It draws not only on historical data but largely on the authors experience of what is a competitive and challenging, but also an exciting, market.

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Page Executive Summary 3

Contents
1 Background and Key Issues Background Key Issues Economic Social Commercial Organic Production Market Size Key Sectors for Swiss Exporters Chocolate and Sugar Confectionery Dairy Products (notably Cheese) Coffee Biscuits Health Foods Soups, Sauces, Condiments Canned Products Meat Free Soft Drinks Drinks (Wine, Beer, Spirits) Retail and Foodservice Structure Retail Sector Foodservice Sector Strategy for Market Entry In-Market Research Product Target Distribution Price Packaging and Promotion Customer Management Conclusion 6 6 7 8 8 9 9 11 12 12 13 13 14 14 15 15 15 16 16 17 17 20 21 22 23 23 24 25 26 27 28

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Appendix References

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Background and Key Issues

This section considers why the report was commissioned and its focus; and key issues affecting the UK food market in general. [(n) indicates references in the Appendix].

Background
It is unlikely that anyone would challenge the view that we live in the most difficult economic times in recent memory. This report concludes that opportunities do exist for new business development in the UK food market, but conditions are extremely competitive. Consumers are cutting back their discretionary household expenditure, looking out for better value at cheaper prices; and suppliers have to work harder to meet their commercial objectives. Switzerland will be represented by a national pavilion at the international food exhibition IFE 2009 being held in London. With that in mind, and against the prevailing economic conditions, Swiss Business Hub UK commissioned Hyatt Consulting to review the UK Food and Drink Market, including whether opportunities exist for Swiss exporters. General comments that refer to the food sector are relevant also in the drinks sector. Many hundreds of pages have been written about the UK food market. We are aware however that most readers of this report are interested primarily in why they might consider the UK as a prospective market for profitable business development. For practical reasons therefore, we refer to the UKs broad food categories only very generally for context, and focus our attention instead on features of the market that are interesting for those Swiss food categories that either have already demonstrated export potential, or for which export markets generally represent a significant share of their total already. Figures (1) for Swiss processed food, fresh meat and meat products in 2006 suggest around 14% of the total value in that respect was exported. The main categories were: Product Category Total (CHFm) 1,629 328 2,559 326 514 249 626 139 8,934* Export (CHFm) 742 212 179 165 126 116 112 60 384* % Exported 45.5 64.6 7.0 50.6 24.5 46.6 17.9 43.1 4.3* % Of Total Food Exports 35.4 10.1 8.5 7.9 6.0 5.5 5.3 2.9 18.3*

Chocolate Confectionery Dairy products Coffee Biscuits, similar products Health foods, special foods Soups, sauces, condiments Fondue Fresh meat, meat products and all other processed foods * Total

15,304

2,096

13.7

100

* CHF 8,934 includes CHF 4,277m fresh meat and meat products (CHF 34m exported) and CHF 4,657m all other processed foods. CHF 350m (7.5%) of all other processed foods was exported, representing 18.3% of the total CHF 2,096m exported. Source: Fdration des Industries Alimentaires Suisses (FIAL)
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More than half of Switzerlands food exports comprise chocolate, confectionery and biscuits; dairy products are the third biggest export category. These are Swiss product categories already present in the UK. This report is not intended to measure Swiss presence in the UK, but we make the point simply to demonstrate Swiss strengths with products that are familiar to UK consumers, and where favourable awareness exists. Indeed, as Swiss products already in the UK tend to be respected as high quality and special, we conclude that prospective new suppliers of these and other products are likely to benefit from a positive association with that perception. The breakdown of total Swiss food exports also highlights the importance of exports for other product categories that are familiar products to UK consumers. Soups and sauces for example, and health foods. Other foods (excluding meat and meat products) combine to represent nearly a fifth of food exports; and we anticipate that while foods in this category might be less mainstream, their Swiss origin will make them interesting to UK consumers. The purpose, therefore, is to provide general information about the UK Food and Drink market that can help Swiss producers consider the extent to which it represents an opportunity worth exploring further.

Key Issues
It is difficult in a report based on secondary data, and in a market as diverse as the UK, to be definitive about opportunities. Suffice to say that they exist, even if they are more difficult to access in the current economic climate; anyone considering this market should contact the Swiss Business Hub UK for a more detailed assessment that can be focused to their particular product category and company objectives. We summarise the key characteristics of the UK market, before addressing some fundamental considerations when establishing a market development plan. [Caveat UK data tends to focus separately on Food (including non-alcoholic beverages) and Alcoholic Beverages (wines, beers and spirits). Much of the information aggregates data across several product categories, and data from various sources do not always agree, due to different parameters employed in the various data collections. This report should be considered therefore as indicative of the UK Food and Drink Market but not definitive, and any discrepancies in the data regarded in that context. Also, while every effort has been made to access data in the public domain that is as current as possible, it is likely to have been gathered before the intensifying market conditions we are now experiencing]. Key issues currently affecting the market for Food and Drink in the UK include economic issues generally; social issues including not only demographics but also lifestyle; and commercial issues. Another key issue, but one that is less significant in the current economic downturn, is the influence of organic production.

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Economic Issues The economic situation clearly is a major concern, and particularly for many consumers concerned about their income and employment prospects. For example, a Confederation of British Industry (CBI) survey in January 2009 reported in the UK media concluded that 38% of SMEs have reduced their workforce in the last three months. Sterlings weakness is another concern for companies exporting to the UK. Recent news reports describe how the general economic downturn has led consumers to trade down to economy brands and from the mainstream retailers to discounters whose market share has increased. One supermarket chain responded by introducing a new discounter brand and was criticised by leading suppliers for referring in its advertising to cheaper alternatives to the top selling brands. Another has recommended in the Grocer magazine (2) that its suppliers should focus on core value instead of pushing premiumisation. It is not a trend affecting everyone, however, and some premium product sales appear resilient as the same consumers allow themselves rewards for economising. A superstore manager interviewed by the reports author in December 2008 admitted his concern that he had been unable to reduce orders for some seasonal products from China, only to find he sold out well before Christmas. According to The Guild of Fine Food panel that reported in December 2008 (3), there is a mixed experience among its retail members, with some increasing turnover while others have flat or decreasing sales. One respondent commented that the key is to find new products others dont sell and that arent in the supermarkets. Social Issues According to data published by the Advertising Association in 2008 (4), there are around 22m households in the UK, and the trend is to smaller households with one- or two-person households representing 65% of the total in 2006 (compared with 63% in 2001). 10% of households in 2006 were lone-parent (9% in 2001). 66% of main shoppers in supermarkets in 2006 were female, and 34% male (67/33 in 2003). UK Government figures report that unemployment is now increasing (6.1% in the three months to November 2008, an annual increase of 0.9%). Job losses among large employers have a significant local effect on spending, but employment levels in the UK are still historically high. Nearly 75% of the working-age population was in full- or part-time employment during the same three months to November 2008, representing a very slight increase against 2007 (and compared with 73% in 2003, when the UKs employment ratio ranked 7th in the world). The working week in the UK is generally recognised to be longer than in other European economies, and this, along with growth in leisure activities and with the ratio of small households as well as more men as main shoppers and other influences, has fuelled demand for food products that are convenient. Retailers have responded with ever-broadening ranges of chilled and frozen recipe dishes, ready-to-eat dishes, sandwiches and salads (all produced predominantly in the UK), and other prepacked foods.

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As budget airline travel to Europe has grown in popularity, and long-haul holidays have become more common, consumers now seek foods in the UK that they have sampled abroad, so that many of these recipe dishes reflect international cuisine. Obesity is another social issue now influencing the UK food market, as the UK Government encourages consumers to reduce the amounts of salt and fat in their diets. Packaging of many foods now carries a traffic light indicator of nutritional values. Consumers awareness of animal welfare is increasingly an issue, due to campaigns by animal rights activists supported by several celebrity chefs. An Institute of Grocery Distribution (5) survey in 2007 found that it influences the choice of 20% of its respondents. It is not an issue likely to affect many Swiss exporters to the UK as virtually all meat products are for domestic consumption, but it is an issue worth bearing in mind in cheese production, where favourable husbandry of the supplying herds may be recognised as a differentiating feature of the process. The distance food travels before reaching the supermarket shelves (food miles) has become another issue among many consumers. Although a recent study suggests that country of origin (for fruit and vegetables) is a low priority for most, all the major retailers now take food miles into account when considering their supply policies. Distance from the UK per se does not mean that an overseas supplier will not be considered, but one that can demonstrate environmental awareness and a policy to minimise its carbon footprint might be perceived as having a competitive advantage. Commercial Issues Successful exporters of food products into the UK need to demonstrate very high manufacturing standards, usually equivalent at least to EFSIS (6) and British Retail Consortium (7) standards that are more demanding than EU regulations. As standards in Switzerland are high, we do not anticipate major issues in that respect, but prospective suppliers do need to recognise the need to demonstrate independent accreditation of their procedures. Imported foods need to be able to demonstrate high quality to succeed, as well as superior taste and flavour and other elements of differential advantage to attract attention and compete with locally produced equivalent products. Pricing is always an issue, and the market is very competitive even for the highest quality products. Sterlings present weakness is a disadvantage in this context but it affects all European suppliers; as many premium overseas products are by their nature less vulnerable to price sensitivity, those that demonstrate other competitive advantage will be protected to an extent by that. Having said that, and in the context of Switzerlands most common exports to the UK, there are many UK producers of continental-style chocolate, confectionery and biscuits for example, whose pricing will be more competitive than imports because of the exchange rate. The major grocery retailers are all reviewing their operating costs and buyers are having to focus on the immediate challenges that are about value before innovation. Organic Production Measurement of the UK organic foods market varies, depending on the information source. Keynote (8) reported in 2008 that the UK organic foods and drinks market grew by 10.4% in value in 2007, but
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that it accounted for only 1.6% of total UK grocery sales. The UKs lead organic accreditation body, the Soil Association (9), having reported 22% growth in 2006 retail sales to 1.937bn, reported further 22% growth in 2007. Current economic conditions are affecting the organic sector. The British Broadcasting Corporation (BBC) reported in January 2009 that organic food sales in the last three months declined by 13%, and trade reports (Grocer) suggest that farm shop sales (a significant segment of the organic market for fruit and vegetables) are down 20% year-on-year as consumers switch to cheaper options. Producers of organic meat have requested a relaxation of organic standards to reduce their costs. Keynote also notes that organically managed land peaked in 2002 and has fallen since then, and the BBC has reported that while 66% of the UKs demand is supplied by UK producers, only 1.6% of all farms in the UK are organic. It is recognised that the market is characterised by a large number of small producers and processors. Unprocessed vegetables and fruit account for the largest segment of the organic food market. Along with dairy products including milk, cheese and desserts, breakfast cereals, bread, flour and baked products, meat and meat products and organic seafood, these categories combine to represent more than 80% of the market. Another feature of the market, but one that is not addressed in the reports consulted for this review, is the extent to which consumers purchases of organic options in supermarkets is influenced by the equivalent conventional products not being available at the time they are shopping. It is likely, for example, if conventionally grown spring onions have sold out and those remaining on the shelf are organic, that shoppers might buy organic instead of doing without. Depending on the scale of organic purchases made on that basis, we should be careful when assessing consumers actual preferences. Having said all that, and based on recent years performance before the current economic downturn, the organic sector appears set for long-term growth. The availability of organic processed foods has been increasing notably through the major supermarket chains that are described later, and the success of the Green & Black chocolate brand in the supermarkets is a case in point. The BBC reported in 2008 that 70% of the baby food market is now organic; and the major supermarket chains have all pledged to increase their shares of organic products stocked. We conclude, therefore, that the growth of organic food is high profile and it represents a premium sector opportunity attractive to overseas producers of processed foods. We note also that organic sales still account for a very small share of the UK food market in total, but that the segment does represent a long term development opportunity particularly for speciality producers.

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Market Size

Estimates of the UK food industrys size vary widely, depending on the source. Keynote suggests around 55bn consumer expenditure in 2006 while the Institute of Grocery Distribution (IGD) refers to the grocery market in 2008 being 134.8bn. We refer here to the UK Governments report of purchases and expenditure on food and drink in 2007, published in December 2008, and to government figures published by the Advertising Association. The Consumer Trends Survey 2007 suggests expenditure in 2006 of 70.8bn on food for home consumption; nearly 79bn in restaurants, cafes etc and canteens; and 41.5bn in total for wine, beer and spirits. The Governments Family Spending Survey 2007 suggests expenditure of 2,355 per family on food and non-alcoholic drinks (10.2% of total family expenditure), and 1,180 on eating out including restaurants and takeaways (excluding alcoholic drinks). Family expenditure on wines, beers and spirits is recorded at 327 per family for home consumption, and 442 away from the home. Based on the UK Governments figures, food consumption between 2002 and 2006 grew by 7.7% at constant prices; and wines, beers and spirits by 1.2%. The report published in December 2008 suggests growth in 2006-07 for all food and alcohol expenditure for consumption at home at 2.7%; and for eating-out a decline of 1.5%. IGD, however, reports grocery market annual growth until May 2008 at 4.1%. Referring to the UK Governments Consumer Spending survey 2007, the main market categories are: Product Category Fruit and vegetables Meat and bacon Bread and cereals Milk, cheese and eggs Sugar and sweet products Soft drinks (inc mineral water) Fish Tea, coffee and cocoa Other food Oils and fats Total Food (home consumption) Wine, cider and perry Beer Spirits Total Wine, Beer and Spirits m 2006 15,463 14,178 10,310 8,441 7,243 7,129 2,987 1,983 1,672 1,403 70,809 14,557 19,128 7,876 41,561 CHFm (approx) 26,070 23,903 17,382 14,231 12,211 12,019 5,035 3,343 2,818 2,365 119,377 24,542 32,249 13,278 70,069 % of Total 21.8 20.0 14.6 11.9 10.2 10.1 4.2 2.8 2.4 2.0 100.0 35.0 46.0 19.0 100.0

Whatever the validity of these data, the UK population comprises around 60m consumers, and there are more than 90,000 food retailers. In addition to around 76,000 pubs and restaurants, there are another 184,000 outlets including fast-food restaurants, hotels, leisure outlets, staff catering, healthThe UK Food and Drinks Sector Hyatt Consulting for Swiss Business Hub UK, January 2009

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care and education catering. The size of the UK market therefore makes it a significant target for Swiss exports.

Key Sectors for Swiss Exporters

The general product categories of the UK food market are summarised in the previous section, Market Size. As the key purpose of this report is to inform prospective Swiss exporters of areas of opportunity, this section considers the categories likely to be of specific interest to Swiss producers in that context. References to market values are all based on estimates published in the Grocer Review of 2008, or Keynote estimates. All these markets are dynamic, and the data historical. Each of these commentaries is indicative therefore, designed to outline the recent UK market position so that prospective exporters can assess quickly whether to explore it further. The Swiss Business Hub UK is able to introduce UK experts in the food industry who can focus on segment detail based upon companies particular interests and objectives. A general comment worth noting is that while the national supermarket chains account for more than 85% of the UK grocery market (and the leading four for more than 68%), much opportunity exists nevertheless for small producers through national and regional wholesalers to the independent and speciality retail sectors, and foodservice. The biggest players are described later and noted in the Appendix.

Chocolate and Sugar Confectionery

Sales of chocolate confectionery, including countlines, blocks and moulded chocolate, boxed chocolates and other chocolate confectionery, increased by only 2.2% in 2008 to 2.987m, representing a decline in real terms. The market is dominated by Cadburys Dairy Milk, Galaxy, Maltesers, Mars, KitKat and retailers own-label whose combined sales represent nearly 38% of the sector. Key suppliers at the premium end of the market include Green & Black organic blocks and continental producers of boxed chocolates, truffles and blocks, including Guylian, Leonidas, Milka, and others including of course Lindt and Toblerone. There are substantial seasonal markets around Christmas and Easter when Lindt/Lindor and Toblerone products are particularly prominent in the major supermarkets and speciality food shops at Valentines Day; and Mothers Day for truffles and boxed chocolates. As there are now so many premium brands offered at these times, it is increasingly difficult to establish a clear competitive advantage. That is the challenge facing any new exporter, and the main opportunity initially might be the independent sector where differentiation with supermarket offerings is welcomed. The sugar confectionery sector, worth around 1,216m is static, and dominated by chewing gum that accounts for 20% of the market. Haribo, Rowntree, and Maynards fruit gums and jellies are the leading non-chewing gum brands, accounting in total for 15.8% of the market. Artificial additives have been replaced by natural options, enabling a more healthy or at least less unhealthy proposition.
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There is a seasonal market for boxed jellies and similar products, but it is much smaller than that for chocolate products. Keynote research noted that consumers are concerned with the amount of fat and sugar contained in chocolate and other confectionery, but most seem to continue to buy it primarily on impulse and regard chocolate as an allowable indulgence.

Dairy Products (Cheese)

The UK cheese market is dominated by Cheddar produced by various brands and in all the retailers own labels, in total representing more than 53% of the 2,219m UK market. French and Italian products lead the Continental sector with around 10% between them, and other Continental products (excluding blue) account for another 5% of the market. According to the Grocers review of the dairy sector in September 2008, Continental cheese is performing well in spite of the economic downturn, as consumers are more adventurous in their cooking and eating habits, including cooking at home more frequently and indulging in Continental cheeses instead of eating out. Sales of pre-packed continental cheeses increased by 4% in value and 4.5% in volume during the review period, and strong performers include goats cheese (+10%), Continental hard cheese (+7%), blue cheese (+7%, with St Agur up 19%) and Camembert (+3%). Swiss dairy specialist Emmi in the UK reported strong sales of Swiss cheeses such as Gruyere for use in home cooking. There are many specialist cheese distributors serving the mainstream retail sector and foodservice outlets with block and pre-packed Continental cheeses. As competition is fierce for shelf space in the supermarkets, an appropriate strategy for any new entrant to the UK might be to explore possibilities with one or more of these leading distributors, some with hundreds of client accounts in the retail and catering sectors.

Coffee
The UK hot beverages market in the grocery sector, including coffee, tea and chocolate, is worth 1,409m and is static. Consumers continue to move away from tea to coffee, but the established instant coffee brands are in decline (the brand leader Nescafe Original dropped nearly 12% in a year). Any perceived growth in the sector has been in premium products such as speciality teas (Twinings +2.7%) and the premium coffee brand Carte Noir (+11.4%). In foodservice, coffee shops continue to grow in number, and a report prepared in 2007 anticipated growth from 3,000 outlets in the UK with turnover around 1.3bn to 6,000 turning over around 2.5bn in 7-10 years. Allegra Strategies (10) identified that consumers are visiting coffee shops more frequently and estimated that 11m visit a coffee shop at least once weekly. A knock-on effect has been that the number of options available in conventional cafes, hotels and restaurants has expanded.

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Biscuits
Biscuits are worth 2,061m to the UK grocery sector, about 25% in the major retailers own labels. The sector includes cereal bars (with 6 cereal bars in the top 20 brands, representing 11% of the sector and 17% growth) and crackers as well as sweet biscuits and chocolate biscuits. The growth of cereal bars is regarded as consumers response to eating foods they perceive as healthier options. An established Continental segment within the premium sector is dominated by Bahlsen, Lotus, Jules Destrooper and retailers own-label options. Before the economic situation worsened in 2008, growth was anticipated from the premium sector; and while the downturn is now expected to impact on these products sales it is possible that the reward element of allowable treats will prevail. Pressure will bear on mainstream buyers to optimise their sales by devoting more space to value lines, therefore increasing the challenge for new listings in the Continental sector. Also, as suggested earlier, current exchange rates favour UK companies producing Continental style biscuits. As in other product categories, the answer for new exporters is to define a specific differential advantage and perhaps to enter the market initially via speciality distributors.

Health Foods
The definition of Health Foods tends to include supplements and vitamins as well as functional foods; cereals, nuts and pulses; speciality milks and fruit juices; sometimes vegetarian and organic products; and a wide range of options promoted as containing ingredients regarded as healthier than the conventional alternative. Consequently, it is difficult to define a market value; but the segment is significant because of its various elements. As the Government continues to promote healthier eating through its initiative Healthy Weight, Healthy Lives, the sector should grow. Keynote reported in 2008 about healthy eating that while there is much consumer scepticism about claims made by manufacturers, most were willing to spend more for healthy food and drink as long as it tastes good. The main specialist retailers are Holland + Barretts 500 stores; Julian Graves; GNC; pharmacy chains; and the independent sector notably in London and large urban areas. In the mainstream retailers, all promote good for you or healthier options in their ready meals ranges, for example with lower salt, low fat, sugar-free etc. Increasingly also they are stocking products that are, for example, gluten-free. Debate continues in the industry about how best to inform consumers about the nutritional values including levels of salt and fats etc in their prepared foods. As many health foods are more expensive than their conventional equivalents, the sector is anticipated to be affected by the economic downturn. The specialist sector is served by several wholesalers/distributors well placed to introduce new products.
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Soups, Sauces and Condiments

This is another product category that in the UK is fragmented. The soup category, worth 522m and 50% controlled by Heinz and retailers own labels, is a mature market that one industry insider referred to as recession-proof. Sauces and condiments are dominated by ketchup, mayonnaise, HP sauce and salad cream, that between Heinz, Hellmanns and retailers own-labels account for more than three-quarters of the 517m category. Opportunities exist in speciality retailers but it is likely to be in the foodservice sector or with prepared-meal suppliers that producers of bouillons and specialist soups and sauces are most likely to find interest. Chefs are always seeking new flavour possibilities, but the sector is fragmented and producers of Swiss sauces should seek opportunities in foodservice through specialist distributors

Canned Products
The canned foods market according to Keynote comprises vegetables, fish, soup, meat, fruit, pasta, desserts and cooking sauces. (We have addressed soups and sauces in the previous paragraphs, summarising the findings of another report). Baked beans, vegetables, fruit, fish and pasta amount to 1,645m, with canned vegetables representing 407m (nearly 25% of the total). Retailers private label represents 56% of canned vegetables, and Napolina tomatoes, Green Giant sweetcorn, and Batchelors products another 25%. The sector has been static in spite of expectations that it would do better due to the economic situation; volumes of vegetables have slipped by 1.1%. As in other product categories, opportunities are most likely for products that are different to those commodities that dominate the market, distributed via speciality retailers or perhaps in the foodservice sector.

Meat Free
The re-definition of vegetarian as meat-free has extended the market to include consumers who dont think of themselves as vegetarians but who simply wish to reduce their meat consumption. The market leader in the 260m sector is Premier Foods Quorn meat-substitute, followed by retailers own-labels. Other key players are Cauldron, Linda McCartney brand, Grassington, Tivall, Cranks, Redwood and recently Innocent with a range of Veg Pots. Sausages, grills and burgers account for nearly 40% of the sector; Ingredients another 23%; ready meals and meal centres 20%; and deli, pastries and snacks 17%. The format for meat-free meal solutions is predominantly frozen, and the leading retailers have tended to over-perform in the sector, notably Sainsburys and Waitrose. Tesco and Sainsburys account for 52% market share. The foodservice sector, however, is under-represented.

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Depending upon any new entrants product offer, and given the nature of the sector, it might be possible to negotiate a range extension with an existing business that has established distribution. Alternatively seeking a specialist distributor (including possibly in the health food sector) might be a way forward.

Soft Drinks
The UK soft drinks sector comprises carbonated drinks (2,009m), juice drinks and smoothies (1,804m), sports and energy drinks (683m), bottled water (580m), diluting drinks (squashes and cordials worth 442m), and adult soft drinks (111m). The carbonated drinks market is dominated by Coca-Cola, juice drinks by Pepsico, and the diluting drinks market by Robinsons (Britvic). The main UK producers, also including AG Barr, GlaxoSmithKline and Innocent, control virtually all of the UK market, bottling in the UK. The sports and energy drinks market is anticipated to continue developing in 2009, having grown 15% in value during 2008. The market that exists on the continent for syrups is not replicated in the UK, where squashes and cordials fulfil the demand for diluting drinks.

Drinks (Wine, Beer, Spirits)

The UK alcoholic drinks industry is dominated by international brewing and distilling groups including Anheuser-Busch InBev, Scottish & Newcastle and Diageo. Wine sales via the grocery trade grew by nearly 4% in 2008 to 4,754m, and New World wines have overtaken French. The sector is driven primarily on price and high volumes. Opportunities for local Swiss wine producers are likely to continue to be in the specialist sector. The grocery market for beer comprises lager (2,771m) and Ales (441m), and has been static in the last 12 months. Lager sales are dominated by Stella Artois, Carling , Fosters and Carlsberg with a combined 53% share, and Ales by John Smiths, Boddingtons, Old Speckled Hen and Newcastle Brown with a 34% combined share. Spirits increased through grocers by 6.5% in 2008 to 2,917m, with the three leading Scotch whiskies taking 13%, Smirnoff Red Label 8.3% and Gordons Gin 3.6%.

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Retail and Foodservice Structure

The UK retail and profit-foodservice structures are similar in principle, with multiple chains dominating, and independent operators supplied by distributors/wholesalers. Access to the mainstream retailers and foodservice providers is either direct (for large, established suppliers or where a particular advantage can be demonstrated) or more likely for new exporters to be via an importer/agent/wholesaler. As we explain later, however, approaches to leading buyers can be made directly even if supply ultimately will be channelled through a third party. Indeed, approaching buyers directly should be a key element of any new exporters market research to define the opportunity and establish an appropriate market entry strategy.

Retail Sector
The grocery retail structure in the UK is dominated by multiple supermarket chains, whose respective market shares are indicated in the table on the next page. According to Taylor Nelson Sofres who track the market monthly, the leading four chains account for around 68% of the grocery market. We also demonstrate in a graph the multiples relative demographic profiles. After the major multiples expansion of superstores and hypermarkets in out-of-town locations in the last 20 years, they are now growing their estates of smaller supermarkets and convenience stores in town centres and residential areas, often by acquisition of smaller chains of specialists. Tesco now own One-Stop for example, and have converted many branches to the Tesco Express facia. The biggest UK grocer is Tesco (11) with around 1,900 hypermarkets, supermarkets and convenience stores in the UK. Sainsburys (12) also operate hypermarkets, supermarkets and convenience stores, with around 770 stores. Asda (13) is the USA-based Wall-Marts UK business, operating solely in the hypermarket sector with around 315 stores; and Waitrose (14) with 200 stores and Co-op (15), who recently acquired Somerfield, both operate from supermarkets and convenience stores. Unlike all the others who sell manufacturers branded products as well as their own retailer-own label, Marks and Spencer (16) sell only the M&S brand that is made for them to the most rigorous manufacturing standards. The independent sector is dominated by Musgraves (17) Budgens symbol chain and NISA-Today; and the cash-and-carry sector is dominated by Makro (Metro) (18) who have 32 stores in the UK and Costco (19) who continue their current UK expansion, now with eight stores.

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The following chart shows how many retail outlet types and stores there are in each sector of the market in total, from convenience retailing to supermarkets and superstores. There are nearly 96,000 food retailers in the UK; however the majority of turnover is achieved in the 7,000 superstores and hypermarkets operated by the leading chains. Speciality food retailers are included in the numbers for Trad Ret & Dev Conv.

Source: Institute of Grocery Distribution The UK retailers shares of the UK grocery market, taken from two reports quoting TNS data in November and December 2008, are indicated in the following table: Retailer % of UK Grocery Market Nov/Dec 2008* Tesco 27.6-30.7 Asda 14.4-16.9 Sainsburys 15.2-16.2 Morrisons 11.1-11.9 Co-op/Somerfield 7.6-7.7 M&S 4.1 Waitrose 3.7-4.1 Aldi/Lidl/Netto 3.2/2.4/0.7 Iceland 2.0-2.2 Farmfoods 0.5-0.7 Total Independents 2.4 * varies according to the source data, TNS/Wm Reed/kamcity

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When considering the most appropriate target distribution, a key factor is consumers profiles and their likely interest in buying. All the major retailers stock Continental products and their ranges include offers at each end of the pricing spectrum. By observing their customer demographics however, we can approximate the leading retailers relative positions in that respect:
% Market Share
30

UK Grocery Retailer Map

Tesco Sainsburys ASDA Morrisons Somerfield Marks & Spencer Waitrose Co-op Iceland Budgens Aldi, Lidl, Netto etc

25

20

15

10

Discounters,

Less affluent customers

<-------- Spectrum of Price / Image Perception --------

Premium image, Affluent customers

Source: Hyatt Consulting

Recent developments in UK grocery retailing include Waitroses move into convenience retailing with a new store in Nottingham; M&Ss decision to close several of its Simply Food stores; and Tesco, Waitrose, Iceland (20) and Co-ops interest in taking over some of the sites occupied until recently by the failed Woolworths chain. The Speciality Foods (also known as the Fine Foods) segment of the retail sector is best recognised by the high-profile department store food halls at Harrods (21), Fortnum & Mason (22), Selfridges (23) and Harvey Nichols (24). There are also hundreds of independent stores selling imported fine foods including speciality shops (eg cheese), delicatessens and farm shops. Because of their focus on premium products (whether imported or organic, for example) the speciality or fine foods sector is considered mainly separate from traditional butchers, bakers and fruit/veg retailers. Around 1,300 speciality or fine foods shops are members of the Guild of Fine Food (3). These stores are serviced by local suppliers, or by specialist wholesalers (eg continental cheese specialists, or specialists importing exotic foods). By the nature of their offer, this sector is likely to be relevant to suppliers of premium products seeking to establish the extent to which UK consumers are interested.

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Foodservice Sector
The UK Foodservice sector is diverse, with 260,000 establishments covering the spectrum from coffee shops to pubs, hotels and restaurants, and from school kitchens to works canteens to fine dining establishments. UK Catering Outlets Restaurants Fast Food/Quick Service Restaurants Pubs Hotels Leisure Staff Catering Healthcare Education Services Total Source: Advertising Association/Horizons (4) Number of Outlets 2006 26,700 30,048 51,102 46,544 19,253 20,614 31,699 34,614 3,082 263,657

The economic downturn has impacted on the profit sector in particular (restaurants, pubs, cafes etc) at a time when it was still recovering from the effect of the introduction of the UKs smoking ban in enclosed public places. Opportunities for Swiss suppliers to the UK profit- and cost-sector foodservice market include the spectrum of food products as ingredients or meal solutions, distributed via specialised channels that are diverse but summarised in the following paragraphs. The profit-segment of the Foodservice sector is dominated by restaurant, hotel, coffee shop, sandwich bar and pub chains that either buy centrally or list centrally for its operators to buy from suppliers/distributors at a local level. Examples include Whitbread (25), Mitchell & Butler (26), Costa (27), Caf Nero (28), Subway (29), Eat (30), Punch Taverns (31), Greene King (32). Many independent hotels buy via the Beacon purchasing group (33) on behalf of Best Western. The independent catering sector also is supplied largely by market leaders Brakes (chilled and frozen) (34), 3663 (predominantly ambient) (35), and Caterforce (36) (comprising regional specialists in servicing independent foodservice locations). Fine dining restaurants tend to source most of their ingredients from local suppliers, and in London from specialist suppliers of meat, seafood etc. The cost-segment of the UKs food industry is a combination of specialist providers such as Compass (37) and Sodexo (38) providing services to industry and leisure venues, and distributors such as Case who specialise in supplying institutional kitchens in hospitals, schools and other public services. Many of these outlets also buy from the many local wholesalers around the UK. The Institute of Grocery Distribution (5) has recorded the details of more than 14,000 wholesalers, most of them local specialists.
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Strategy for Market Entry

Throughout this report we have commented that opportunities exist for Swiss companies whose products and business attitude might be appropriate to the UK market. Previous chapters have indicated market characteristics in general for product categories that are likely to interest producers of Swiss food products, including market sizes and a summary of the retail and foodservice sectors. The key conclusion made at the end of Chapter 2 is that the size of the UK market, with its 60m population and consumers interest in the kind of foods that are produced in Switzerland, makes the UK a significant target for Swiss exports. We suggest also that the image of Switzerland as producers of high quality is a favourable one, and an advantage for prospective new exporters to the UK. Market conditions currently are very challenging, but that doesnt mean there are no opportunities. Swiss export data being prepared at the time this report was being completed suggest that recent Swiss exports of food products are less than a year ago but that the sector is performing better than other product groups (Administration Fdrale des Douanes AFD). The challenge for any aspiring Swiss exporter of food and drink to the UK therefore is a combination of identifying the most appropriate target market segment; how to impress prospective distributors to offer the product; and how to attract their consumers to buy it. This chapter addresses how that challenge might be addressed in an integrated export marketing plan, considering the key issues of research into specific opportunities, product development or refinement for the UK, target distribution, pricing policy, packaging and promotion for the UK, and customer management. The Swiss Business Hub UK can help companies develop their export planning for the UK by introducing experts whose specific experience is in the UK food industry. In-Market Research Having decided that the UK is an interesting market in general, the next stage for a new exporter of a particular product is to explore in more detail the market segments that are most likely to be appropriate. That research will help to define a market entry strategy, and influence the search for an appropriate business partner. Exporters can refer to this report and to the web sites set out in the Appendix first of all, to identify in principle the market segments most likely to be appropriate: for example mainstream grocery, specialist fine food retailers, or foodservice. Perhaps with the assistance of the Swiss Business Hub and one of its panel of experts, the next stage is to visit the market personally and to witness the actual environment. A producer might conclude from desk research that mainstream retail is appropriate. Visiting branches of several retail chains will help consolidate that view, or maybe change it, by witnessing the presence of competitors and observing consumers buying behaviour, as well as stores ambience compared with successful outlets in the companys existing markets.
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Observation in-store provides valuable insight before approaching retailers buying offices for example in-store pricing and the relative significance of promotional activity and how it appears to be managed; logistics details including how the product is merchandised; and even outer case sizes supplied by competitors that might vary from the companys experience elsewhere. Not only is such information valuable for preparing an offer, but buyers expect prospective suppliers to be familiar with these and similar issues. In-market research, including visiting branches of prospective target retailers in particular, also provides knowledge of the range of products being stocked by different retailers and in different storetypes. The same principles apply to fine-food distribution, although the fragmented nature of the market means that individual store visits are less definitive. Having said that, it is often possible to engage with the store proprietor who can provide first-hand opinions and advice. When considering approaching any of the leading department store food halls in London, it is best if possible to visit them beforehand and to engage with the relevant department manager or at least an experienced sales assistant for insight. It is important also to recognise that buying patterns can vary in different regions of the UK; while London and the Home Counties around London is a hugely important regional market segment with a population around 15m, the majority of the UKs total population does live elsewhere. In foodservice, most but not all of the leading fine dining restaurants are in Central London; however there are many good, independent restaurants as well as all the major chains throughout the UK that might be equally interesting for the product. It can be expensive in time and resources, however, to carry out in-market research, and without the benefit of local knowledge it can be a challenge to draw the most appropriate conclusions. An approach to researching specific opportunities therefore is to commission a research programme from an expert in the UK. The programme, which the Swiss Business Hub UK can help to design, should be tailored to the Swiss companys aims and objectives and include a market visit to typical outlets to witness them at first hand. Depending upon the outcome of the in-market research, the next stage is to approach prospective retail or foodservice buyers/distributors to identify their potential interest. Product, distribution, pricing, packaging and promotion issues are key elements to be considered in that respect.

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Product
Ultimately, buyers and consumers interest will depend on the product itself, and new exporters need to be able to demonstrate competitive advantage early on. Why should the buyer stock or distribute the product, and how will doing so add value to the business? How is the product different and better than other products on the shelves, to justify the expensive administrative process of delisting another supplier to make way? Where else in Europe is it listed, and how successfully? How do consumers relate to it, in the context of the retailers consumer profiles? New exporters to the UK need to address these product issues even to reach the tasting/sampling stage. All suppliers profess their superior quality and value, and price is always a key issue. Buyers are likely to respond to a genuinely innovative approach, at least to wish to find out more. That competitive advantage might be taste and flavour, perhaps demonstrated by testimonials; or the use of particularly interesting or more natural or organic ingredients; or a more energy-efficient process. In a recent example, a UK buyer interested in a new product dictated that it should contain not only a particular ingredient, but that it should omit a particular additive that is commonly used in its production. Exporters need to consider therefore whether their product can be refined if necessary, to meet technical requirements that might be different in the UK. Manufacturing quality is assumed, including independent accreditation of manufacturing procedures that will meet, or can be developed to meet, the UK retailers specifications (all of which exceed the basic European regulations).

Target Distribution
A Swiss exporter new to the UK might conclude from this report that the companys product is appropriate in the mainstream retail sector, or for speciality/fine food distribution, or in the foodservice sector. Subsequent in-country research and assessment of the products competitive advantage should help to focus attention on the most encouraging approach to meet the companys objectives. The next strategic issue to address for market entry is to identify the most appropriate distribution channel, for example whether to approach the market directly or via a business partner that might be an agent or distributor. UK retail and foodservice buying structures are sophisticated. Buyers are under pressure not to increase administrative overheads by introducing new suppliers, therefore the first opportunity to supply is often via a third-party distributor or agent who supplies the buyer already. Very few distributors supply all the major customers, however; so we recommend the value in approaching buyers direct initially, with a view to seeking their suggestions in that respect. This applies equally to SME exporters as leading retailers might elect to distribute through a limited number of stores. There are two particular advantages to this approach.
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First, by approaching the buyer, the exporter has an opportunity to present its competitive advantage directly, and can respond quickly to detailed questions (for example with respect to possible product refinement for the UK). It is likely that the buyer, if interested, will insist on third-party distribution at least initially, and will signpost the exporter to a supplier or suppliers with whom the buyer already trades. In these circumstances, approaching the distributor with a warm prospect and referral from one of their customers, the distributor is likely to take the approach seriously. Buyers and distributors schedules are very busy and they receive many speculative approaches, so it is important to demonstrate credibility early on. Again assistance is available through the Swiss Business Hub UKs panel of experts who are skilled in approaching buyers on behalf of new market entrants. Also, being introduced in the context of a project facilitated by the Swiss Embassy is a powerful advantage as buyers are more likely to respond at least to the initial approach. Many suppliers are competing for buyers time to make sales presentations. A mistaken first impression can kill an otherwise potentially lucrative opportunity, therefore it is vitally important to prepare the case fully and professionally. When appointing either a distributor (typically defined as buying the product from the exporter, for distribution) or an agent (typically facilitating business with third parties in return for a negotiated commission based on sales achieved, with the exporter as principal responsible for delivery and invoicing to end customers), the exporter should conduct a due-diligence study and take specialist legal advice before entering into a contractual agreement. Swiss Business Hub UK can assist by listing specialist firms that claim to provide these services. We have already considered the importance of researching the market and establishing genuine competitive advantage. The following elements of market entry strategy are also important at this stage in preparing to contact target customers/distributors.

Price
Retailers and distributors profit margins vary, depending on the product and its market potential, therefore it is difficult to generalise on pricing policy. Likewise, pricing and payment in , or CHF is open to negotiation, although is likely to be preferred. In-store selling prices identified in the in-market research, when compared with prices charged for the exporters product in other markets, can provide an indicator in the early stages that will help prioritise the exporters potential. In speciality or fine-food retailing, rules of thumb exist for assessing ultimate selling prices in-store and whether they might be viable, but much depends on the route to market and the number of wholesalers that might be involved in the supply chain. It is dangerous therefore to generalise beyond recommending the significance of visiting the market before committing to approaching prospects. Payment terms vary, depending for example on whether distribution is via multiples, or wholesalers supplying independents. Currently there is institutional pressure to settle invoices faster and it is a
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changing situation. As it varies, it is not appropriate to make suggestions here. However it is worth noting that earlier payment can be achieved as an element of pricing negotiations generally; by avoiding rejects as much as possible; and ensuring that delivery and invoicing administration is always accurate.

Packaging and Promotion

As in other markets, UK packaging is subject to labelling regulations. These can be researched at the Food Standards Agency (39), although buyers/distributors will also have their own requirements that are specific to their organisation in terms of outer case size and markings, etc. Exporters can learn much from their domestic and continental competitors already in the market by examining their packaging during the in-market research programme. Anything already on the shelves can be assumed to represent at least acceptable practice. Nutritional values are encouraged for some foods using the traffic light system described in detail at www.food.gov.uk/foodlabelling, and various foods have different catch-weight regulations. Some labelling information including ingredients listings is dictated in terms of font-size and legibility. Exporters to the UK should include in their web-site an English-language version for prospective distributors and for consumers. In-store, promotional activity is a key element of UK mainstream retailing and it is important for exporters to budget for it; however it tends to be a feature more associated with volume products and leading brands. Again, visiting stores will indicate each retailers policy in that respect, in principle at least and particularly for products that are specialist or premium, simply by observation. Multiples all participate in price promotion with offers of buy-1-get-1-free, half-price and 3 for 2 etc particularly in the current economic climate, but nevertheless to varying degrees. Distributors will have agreed category-wide objectives with their main customers, and discounts related to overall sales might be included to encourage higher-profile merchandising and other activities to achieve them. Introductory pricing, sampling and leaflets are examples of a range of tools that might be used. Policies vary at different distributors about contributions to catalogue-entry. Some make a charge per entry; others factor the cost into the price they are willing to agree. Some distributors insist on initial marketing allowances, but they are not universal and should not put any exporters off exploring the UK. Buyers are being encouraged to support smaller brands where appropriate in the context of providing choice.

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Customer Management
The Swiss Business Hub UK and its panel of experts can assist companies seeking introductory meetings. As indicated elsewhere, we suggest that new exporters should meet buyers if possible and as early as possible following the in-market research visits, for their feedback direct and as they might take the opportunity to suggest a distribution partner in whom they have confidence already. That partner becomes the exporters customer, but in what will have become from the outset a tri-partite arrangement. Whatever the customer relationship, with distributor or buyer in retail or in foodservice, effective communications will be a key to success. A regular meetings schedule should be agreed, to facilitate development discussions (and to resolve any issues) more efficiently than is possible by telephone; supplemented by more frequent contact by phone, email etc. Throughout negotiations and on-going business development, mainstream buyers expect their suppliers to take the initiative in exploring possibilities to continuously improve the offer and its value, and to monitor market trends and competitor activity so that appropriate actions can be taken. Their in-house information systems and those of their category-leading suppliers provide comprehensive data, but successful suppliers are expected to be pro-active themselves in their knowledge and understanding of their business development, and are expected to be innovative in their approach to growing the business. For new exporters, this means working very closely with their distributers and any other UK business partners to ensure that on-going opportunities are continuously researched and identified for new business, whether in mainstream multiples or in the independent, speciality sector, or in foodservice where the same principles apply for new product and menu development. Whether the exporters direct relationship is with a distributor, agent or directly with a mainstream retail or foodservice supplier, efficient communications extend to accurate administration of scheduling, deliveries, food-technical issues, invoicing, credits and any other administrative issues.

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Conclusion

This reports purpose has been a general introduction to the UK Food and Drink Market for prospective exporters of Swiss food and drink. In describing the market, it has focused on the categories recognised already as the most significant to Swiss food exports, according to available figures. The report concludes that opportunities exist for Swiss exporters to the UK, in spite of the current economic climate, although it recognises that market entry is more challenging. The reasons for optimism include the resilience of the food sector compared with others, the international diversity of food products available in the UK and the growth of international foods, Swiss presence in the market already with products that are recognised as being high quality and value, and the tendency among consumers who are economising in other respects to reward themselves with premium food products. We have introduced issues that affect Swiss companies ability to trade successfully in the UK, but given the general characteristics and size of the UK market and depending on the products competitive advantage, we have concluded that opportunity exists even in these difficult economic conditions. The UK retail and foodservice sectors are both structured in such a way that new prospects can approach them either directly or via a distributor. We have recommended that new exporters should undertake an in-country market research project to familiarise themselves with the UK environment, before undertaking a market entry strategy appropriate to their priorities. We suggest approaching buyers direct at the outset, recognising however that supply is likely in practice to be via a distributor or agent. Key reasons for this approach include the benefit of receiving direct feedback if it is possible, and recognising that there are few distributors that supply all the retailers. This approach allows the buyer to suggest an appropriate distributor for further discussions. Key issues that should be addressed in the market entry plan are set out, including being clear about the products competitive advantage, pricing issues, addressing packaging and labelling requirements, considering promotional implications, and the significance of efficient communications. Further information about establishing a focused project to explore the opportunities in detail is available from the Swiss Business Hub UK.
Date: 30 January 2009 Author: Mr Alan Highet Authors address: Firways Hackford Road Wicklewood, Norfolk NR18 9QJ United Kingdom Tel: +44 (0)1953 600 525 Fax +44 (0)1953 600 889 Mobile: +44 (0)7767 782 191 Email: alan.highet@hyattconsulting.co.uk
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Appendix Sources and References

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39

www.fial.ch/de/statistics/2006/ www.thegrocer.co.uk www.finefoodworld.co.uk/downloads/FFD14_15_Dec.pdf www.adassoc.org.uk and www.warc.com www.igd.com www.efsis.com www.brc.org.uk www.keynote.co.uk www.soilassociation.org www.allegra.co.uk www.tesco.co.uk www.sainsburys.co.uk www.asda.co.uk www.waitrose,com www.co-operative.coop/food/ www.marksandspencer.com www.musgrave.ie www.makro.co.uk www.costco.co.uk www.iceland.co.uk www.harrods.com/HarrodsStore/find/c/foodhall www.fortnumandmason.com/Food-Hall,289.aspx www.selfridges.com www.harveynichols.com/output/Page30.asp www.whitbread.co.uk www.mbplc.com www.costa.co.uk www.cafenero.com www.subway.co.uk www.eat.co.uk www.punchtaverns.com www.greeneking.co.uk www.beaconpurchasing.co.uk www.brake.co.uk www.3663.co.uk www.caterforce.co.uk www.compass-group.com http://uk.sodexo.com/ www.food.gov.uk/foodlabelling

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