uk food research report[1]

8/6/2019 UK Food Research Report[1]

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Food Producers: UKResearch Report

Market StrategyApril 2008


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Table of contents1. Executive Summary ................................................................................... 31.1. Background and Objectives ......................................................................... 31.2. Research Findings ....................................................................................... 31.3. Project Plan .................................................................................................. 42. Introduction and Aims ............................................................................... 52.1. Background .................................................................................................. 52.2. Research Purpose........................................................................................ 52.3. Process......................................................................................................... 52.4. Agreed Outputs ............................................................................................ 62.5. Important Information ................................................................................... 73. Producer Backgrounds.............................................................................. 73.1. Annual Turnover........................................................................................... 73.2. Number of Employees.................................................................................. 83.3. Years of Operation ....................................................................................... 83.4.

Ownership .................................................................................................... 8

3.5. Quality and Technical Accreditations ........................................................... 83.6. Retail versus Foodservice Sales.................................................................. 83.7. Domestic versus Export Sales ..................................................................... 83.8. Domestic Sales Channels ............................................................................ 83.9. Key Export Markets / Priority Next Markets ................................................. 93.10. Factors influencing Current Business Growth.............................................. 93.11. Current Supply Chains Used........................................................................ 93.12. Target Customers......................................................................................... 94. UK Specific Research Findings................................................................ 94.1. Barriers to Export to UK ............................................................................... 95. Scoping Potential Project Options for UK............................................. 105.1. Introduction................................................................................................. 105.2. Individual Project Options........................................................................... 105.3. Project Activities ......................................................................................... 125.4. Commercially Successful Project............................................................... 136. Project Plan............................................................................................... 136.1. Project Objective ........................................................................................ 136.2. Project Scope ............................................................................................. 146.3. Description of Activities to Be Contained in Project ................................... 146.4. Project Plan Recommended Stages ....................................................... 176.4.1. Introduction................................................................................................. 176.4.2. Stage 1 Initial Market Research Complete........................................... 176.4.3. Stage 2 Initial Project Plan Current Work............................................. 186.4.4. Stage 3 Industry Group Session - UK Exporters Food Producers Network

Meeting....................................................................................................... 18

6.4.5. Stage 4 Capability Building and UK Preparation Visit............................. 196.4.6. Stage 5 Project Prospectus..................................................................... 206.4.7. Stage 6 Recruitment of Participants........................................................ 206.4.8. Stage 7 UK Market Visit 1....................................................................... 216.4.9. Stage 8 UK Market Visit 2....................................................................... 216.4.10. Stage 9 - Marketing Campaign .................................................................. 226.4.11. Stage 10 Project Consolidation............................................................... 236.5. Candidate Companies Open to Participation............................................. 23


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Prepared for Regional Development Victoria

April 2008

Market Strategy

Website: www.marketstrategy.com.au

Email: [email protected]

Mobile: +61414 382 738 Prepared by Market Strategy Ltd.


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1. Executive Summary

1.1. Background and Objectives

Regional Development Victoria (RDV) has identified an opportunity to leverage workdone by National Food Industry Strategy (NFIS), to gain advantage for Victorian

companies in the UK market.

This RDV UK Project was established to research and assess the current position of

Victorian food exporters to the UK; and prepare a project plan for assisting the

development of Victoria food trade with the UK retail market.

1.2. Research Findings41 producers were approached to participate in the research, of which 16 declined. In

summary the interviews with those that participated showed:

1. There are common challenges faced by Victorian producers wanting to export

to the UK. These challenges can be split into general barriers to export and

are defined as - finance (cash flow, marketing, supply chain); foreign

exchange (variations and current strength of dollar): accessing and assessing

appropriate distributors; developing customer relationships; and internal

resources (time, expertise, capital). There are specific challenges that were

identified for UK export - point of difference for products; premium pricing of

Australian product versus competition; tariff and import regulations; marketing

cost; and scale of doing business with a multiple food retailer in the UK.

2. A good portion of interviewed businesses are already undertaking trade with

the UK (9), or are preparing to undertake trade (5), or are at advanced stages

of market knowledge (3).

3. Victorian products do have points of difference in the UK. As in any market,

there are various challenges they face by product and category.

4. A substantial portion of businesses are at an advanced state of commercial

readiness, or can quickly be made ready, to make commercial presentations

in the UK.

5. RDV can put together certain activities which will benefit different businesses,

at different stages of preparedness for the UK. These activities should

concentrate on providing capability building programs, accessing supply

chain arrangements, providing access to retailers and providing cooperative

marketing activity.

6. Producers interested in this project can be grouped by state of preparednessto enter the UK market product currently sold in UK market (8); no current

sales but have appointed a distributor (2); negotiating with a distributor (3); no

sales but interested in market (10). Of this last group 3 can be described as in

a good position to quickly make ready to supply the UK, 4 are smaller

producers who would need some work done in order to generate this

capability and 2 are interested only in specific opportunities.


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This state of preparedness can be analysed against the target customer for the

producer. This analysis shows that multiple retailer, health/dietary, gifting and

gourmet are popular channels for these producers to target. The producers most

prepared to enter the market are targeting the multiple retailers.

1.3. Project PlanThe Project Plan suggests the following UK Retail Project for RDV:

Creation of a strategic RDV UK Retail Food Project designed to assist the

establishment and development of sustainable UK Retail Trade for existing or

prospective Victorian food producers.

Through investment in this project RDV could achieve an increase in sales,

employment and capital investment in the Victorian food industry. As a pilot project,

RDV seeks to demonstrate a new model for market development projects. Through

participation in arguably the worlds most sophisticated retail market, RDV would like

to build industry capability, knowledge and programs to benefit both UK and other

export trade development.

By participating in this project, Victorian producers aim to see a growth in sales to the

UK market and benefits from reduced risk capital expenditure to establish UK trade;

synergies created in marketing and distribution systems; and increased capability and

knowledge generated through gearing up to supply UK market.

RDV leadership is essential to creating a successful project. By creating capability

and knowledge for Victorian producers, RDV is improving the capacity of Victorian

producers to trade in the UK. In addition, by working strategically with industry, RDV

is creating new retail and distribution opportunities for trade development.

Participants in the project will be current or prospective Victorian food suppliers to the

UK Retail market. The project is designed to work with suppliers across the entire

demand chain. It aims to enhance commercial performance of Victorian suppliers

already in market, with a distinct pathway to market for those at various stages of

market entry development.

The project aims to undertake the following activities, which deal with different parts

of the demand chain. Many of these activities can be run concurrently to provide best

return on investment:

1. Establishment of Victorian Food Producers UK Network

2. Development of Capability Building Activities

a) Competitive Intelligenceb) UK Business Plan Production

c) Corporate Responsibility

d) Technical Requirements

3. Establishment of Relationship with UK Retailer

4. Development of UK Distribution Arrangements For Victorian Producers

5. Establishment of Cooperative Marketing Campaign


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6. Regulatory Assistance

7. Ad Hoc UK Assistance

2. Introduction and Aims

2.1. BackgroundRegional Development Victoria was a key project sponsor of the National Food

Industry Strategy (NFIS) UK Retail Project which ran from 2005 2007.

The NFIS project was designed to create an easier entry platform for Australian food

companies into the sophisticated UK retail market. The project resulted in the listing

of over 15 food companies in Sainsburys. Additional benefits included a rise in level

of awareness of existing Australian food suppliers to Sainsburys; promotional activity

generating over $4 million in sales; increased promotional opportunity for Australian

wine suppliers in Sainsburys; and capability building for Australian companies

looking to develop trade with UK market (a number of project participants actually gotaccess alternative UK retailers after being involved in certain elements of NFIS

project).

The main activity areas in the NFIS project were: market research and education on

consumer trends; business capability and feasibility advice; building presentation

skills (template) to present to Sainsburys buyers; introduction and promotion to UK

distributors; introduction, promotion and feedback from Sainsburys development

personnel; product presentation and participation in Sainsburys-internal trade show;

raising the UK as a real option for exporters; creating strong working relationships

with Sainsburys key staff at various levels; and implementing a cooperative

marketing campaign to promote Australian food products in UK.

2.2. Research PurposeRDV identified an opportunity to leverage the work done by NFIS, to gain advantage

for Victorian companies in the UK market. The RDV, UK project was established to

research and assess the current position of Victorian food exporters to the UK; and

prepare a project plan for assisting the development of Victoria food trade with the UK

retail market.

2.3. Process

Step 1

Project Set Up Activities

Market Strategy Ltd worked with RDV to set up the Project Audit Structure, agree

producer questionnaires and emails; and provide RDV with all information necessary

for the proposal.


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Step 2

Initial Contact to Companies

A list of food producers interested in the UK market was agreed between RDV andMarket Strategy. 41 producers were highlighted, based on the NFIS Retail Project

and input from RDV food team. An email from Market Strategy to each producer was

sent on RDVs behalf, informing the companies of the project and its aims.

Step 3

Telephone Interviews

Market Strategy undertook one-on-one discussions with 25 producers. 16 producers

declined to participate in the interview or had no interest in the UK market.

Step 4

Initial Verbal Report on findings to RDV

Step 5

Face to Face Interviews

7 In depth interviews with held with targeted companies, in order to find out more

detailed information and test project thinking. An informal project planning meeting

was held with RDV.

Step 6

Final Report

Final written report including interview results and detailed plan for UK Retail Project.

2.4. Agreed OutputsMarket Strategy and RDV agreed that this work would establish:

State of preparedness or capacity for individual companies to be ready to

export or expand exports to the UK.

Current or potential supply chain route to the UK.

Current obstacles to trade with UK.

How an RDV project may assist future UK export plans with individual

workshopping to guide the project plan creation.

Prioritise companies readiness or capacity to be ready. These results would

result in a short list of first priorities and a further list of the next set of

companies in the priority chain.


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Specifically the research would result in:

A grouped summary of the current state of export for each Victorian company

to the UK, current supply chain route to market and common obstacles to

trade.

Grouping of companies into prospective project participants (short / medium /

long term) based on company commitment and fit of products to market and

capacity to be made prepared.

Assessments for companies of product range fit to market (where required).

Overview of suggested project options for RDV to progress within the UK

market.

A project plan that:

o Summarises the project activities to be implemented

o Describes the processes needed to set up the activities

o Identifies candidate companies open to participation in the project

o Proposes timings for activities

o Proposes approximate costs for activities

o Identifies potential project partners

2.5. Important InformationThis project was undertaken as a qualitative survey in order to establish a detailed

understanding of the targeted Victorian food producers state of export to the UK.

By its nature, the data is not quantitative, definitive or absolute. Data includes the

thoughts, perceptions, judgements and opinions of food producers. All producers

have different methods of operating and views on the food industry.

It should also be noted that Industry is not always able to accurately assess its own

needs and the potential government programs that might be implemented to meet

these needs. The key to success is the ability for RDV to bring companies andGovernment to a conclusion.

Market Strategy Ltd does not take any responsibility for the accuracy and integrity of

information provided by food producers.

3. Producer BackgroundsThe interviews collected background information that is useful to help understand the

producers interested in the UK market.

A brief summary of this information is presented below. It is recommended to read the

detailed information provided in the Appendix. Please note that specific information

by individual businesses should be treated as confidential.

3.1. Annual Turnover3 producers have turnovers of over $10 million. 4 producers are $5 - $10 million. 6

producers are $1- $5 million. 6 producers are under $1million.

4 producers declined to answer 2 of whom are estimated to be over $10 million and 1

over $5 million.


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3.2. Number of Employees8 producers employ less than 10 people. 10 producers employ 10 50 people. 4

producers employ over 50 people.

1 large producer declined to answer.

3.3. Years of Operation2 producers have been operating for less than 5 years. 8 producers have been

operating for 5 10 years. 10 producers have been operating for 10 25 years. 3

have been operating for over 25 years.

3.4. OwnershipApproximately 25% of businesses are owned by another business.

3.5. Quality and Technical AccreditationsProducers identified their quality and technical accreditations as:

6 producers have an organic accreditation

16 producers are HACCP certified

2 producers have ISO certification

1 producer is SQF certified

4 producers identified Woolworth Vendor Quality Management Standard

1 producer identified McDonalds standards adherence

2 producers are Kosher certified

5 producers are Halal certified

2 producers are USDA accredited

2 producers are EU accredited

4.6 Product Category Supplied 6 producers supply the Biscuits and Snacks category; 1 supplies Cereals; 2

supply Confectionary; 4 supply the Deli; 3 supply Fruit and Nuts; 1 supplies

Herbs and Spices; 6 supply James, Honey and Preserves; 2 supply Meat and

Fish; 1 supplies Noodles; and 5 Supply Olive Oils and Sauces.

3.6. Retail versus Foodservice SalesApproximately 70% of respondents said that Retail accounted for greater than 50% of

their product sales.

3.7. Domestic versus Export Sales86% of respondents said that domestic sales were larger than export sales.

3.8. Domestic Sales Channels35% of respondents said that more than 50% of their domestic sales were through

Woolworths. 26% said that more than 50% of sales were through gourmet

independents.


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Foreign Exchange (variations and current strength of dollar)

Accessing and assessing appropriate distributors

Developing customer relationships

Internal resources (time, expertise, capital)

Specific Barriers to UK Export:

Point of difference for products

Premium pricing of Australian product versus competition

Tariff and import regulations

Marketing cost

Scale of doing business with a UK food multiple

5. Scoping Potential Project Options for UK

5.1. Introduction

The purpose of this section is to scope the types of projects that RDV might like to

pursue in the UK market, and the types of activities that companies might find useful.

This is a thinking section designed to show RDV the options considered when

generating the final Project Plan.

The project options and activities detailed in this section mainly concentrate on key

components and sub segments of the demand chain. The projects are stand alone

and do not involve the entirety of the demand chain. Each project deals with a distinct

group of current exporters.

Experience in the UK has shown that successful market development projects

consider the entire demand chain therefore Section 6 recommends that the project

options are brought together in order to provide an RDV UK Food Strategy. This willtake the synergies of the individual projects and ensure maximum impact and benefit

for the producers and RDVs contribution.

5.2. Individual Project OptionsThe purpose of this section is to outline summaries of distinct projects available for

RDV to implement. These projects focus on specific sections of the demand chain

and not the entirety of the chain.

1. Focus on building the sales of existing Victorian producers selling product

into the UK. The purpose of this would be to enhance existing trade with the

UK. The outcome would be increased sales and a good reputation forVictorian food suppliers. This can be capitalised by other Victorian

companies. Approx candidate companies: 8. Potential activities include:

Build a relationship(s) with a multiple food retailer for Victorian food

producers. Backed by:

Integrated food, wine and tourism promotion to drive consumer

awareness.


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Dedicated trip to market by Victorian producers to make sales

presentation.

NB. This project could also work with other retail channels health/dietary,

gifting and gourmet are lead candidates.

2. Focus on assisting those Victorian producers who have put together a supply

chain for the UK, but have yet to make any sales in the UK. The purpose

would be to assist Victorian companies with their final sell-in to UK

customers. The outcome would be increased sales into the UK. Approx

candidate companies: 3. Potential activities include:

Assist companies with accessing preferred retail channel using

contacts already established through NFIS UK Retail project and

contacts of existing Victorian UK suppliers.

Integrated food wine and tourism promotion to drive awareness of

products on launch.

3. Focus on assisting those Victorian producers who have an understanding ofthe UK market and their opportunity within it, but have yet to put together a

supply chain into the UK. The purpose would be to assist Victorian

companies with putting distribution arrangements in place. The outcome

would be distribution arrangements between Victorian companies and UK

representatives. Approx candidate companies 2. Potential activities include:

Preliminary distributor search by RDV. Outcome map of potential

distributors with genuine interest in buying product from prospective

Victorian customers.

Market mission to UK to visit prospective distributors. Could include

guided market tour and potential scoping meeting with retailers.

4. Focus on assisting those Victorian producers who are in the UK market but

are would like to change their distribution arrangements. The purpose would

be to assist Victorian companies with new distribution arrangements. The

outcome would be signed distribution arrangements between Victorian

companies and UK representatives. Approx candidate companies 4. Potential

activities include:

Preliminary distributor search by RDV. Outcome map of potential

distributors with genuine interest in buying product from prospective

Victorian customers.

Market mission to UK to visit prospective distributors. Could include

guided market tour and potential scoping meeting with retailers.

5. Focus on assisting Victorian producers that are interested in selling in the UK

market but do not currently have any understanding of the UK market. Thepurpose would be to build the Victorian producers understanding of the UK

market and make a business case for entry to the UK. The outcome would be

a business plan for entry into the UK market. Approx candidate companies 5.

Potential activities include:

Assistance in developing competitive positioning in UK for project

participants. Central resource sent to UK to collect specific

information requested.


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Translation of information into business plan for UK market with

action plan for implementation.

6. Alternatively, RDV could run a project with bespoke activities to assist

Victorian producers with ad hoc challenges they are currently facing in the

market. The approach for this would be to provide individual consultants to

assist individual businesses with challenges identified in previous sections.

Producers would be required to apply for assistance.

5.3. Project ActivitiesThe purpose of this section is to identify potential activities that would assist the

development of trade for Victorian producers within the UK market.

The activities can be grouped in the following areas (though there is some cross

over):

1. Capability building:

Set up a network for Victorian food producers currently supplying / or

interested to supply the UK.

Scoping corporate responsibility (including environmental) expectations of the

UK market, assistance in implementing where necessary.

Scoping technical accreditations (for competitive point of difference as well as

regulatory) needed for entry to UK market, assistance in implementing where

necessary.

Map and evaluation of available distributors in UK.

Map and evaluation of retail sales channels in the UK.

Guided visit to understand market in more detail.

Establishment of method and criteria for evaluating and qualifying potential

distribution partners

Assistance in generating business plan for UK market (competitive position,costs, forecasts, budgets etc). Establishment of template for future UK

exporters.

Assistance in understanding tariffs and regulatory demands of market and

accessing accurate information.

2. Relationship Building:

RDV to develop a relationship with a retailer a partnership that makes it

easier for Victorian food producers to access the UK market. This could be

multiples / gifting / gourmet / health / Asian etc.

RDV to develop relationships with UK distributors in order to more easily

introduce Victorian products to market.

Trade mission to the UK to meet with retail buyers.

Trade mission to UK to meet with prospective distributors.

Buyer visit from a UK retailer to Australia.

Buyer visit from a UK distributor to Australia.

Journalist visit from UK to Australia to meet with food suppliers.

3. Marketing:

Cooperative marketing campaign to raise profile of product, gain listings.

Marketing Victoria to trade buyers as a destination for to buy product from.

Targeted trade show assistance where appropriate.


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Shared UK based brand representative to drive market forward.

4. Supply chain:

Incubator style supply chain plan that can provide a Victorian specific

distributor. This would include consolidation in Australia; warehousing in UK;

distribution in UK; sales agency representation in UK.

Assistance with consolidation of smaller shipment with likeminded other

producers.

Joint merchandising agency to ensure store compliance.

5. Regulatory

Lobbying of government to change tariff barriers.

Lobbying of government to change quota barriers.

Lobbying of government to assist regulation compliance (eg organic, source

of origin etc).

5.4. Commercially Successful ProjectThe food producers interviewed have shown a willingness to participate in an RDV

led project.

There is emphatic support from Victorian food producers for a commercially

orientated project, facilitated by government, to develop trade with the UK.

To fully commit, producers have highlighted the need to see a detailed project

prospectus which should include:

Defined project objectives

Defined market opportunity

Defined project costs

Defined project timings

Defined project process

Defined project partners

Based on this information food producers will be able to make commercial business

decisions to participate or not based on time, cost, resources, expected outcomes

etc.

A commercially successful project will require co-investment from industry and

government. Both parties recognise that this is a fundamental necessity. Co-

investment from industry can include time, information, resource, and cash. There

would also need to be an understanding that RDV and companies are partners within

a commercially run project under a cost sharing agreement.

6. Project Plan

6.1. Project ObjectiveCreation of a strategic RDV UK Retail Food Project designed to assist the

establishment and development of sustainable UK Retail Trade for existing or

prospective Victorian food producers.


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Through investment in this project RDV could achieve an increase in sales,

employment and capital investment in the Victorian food industry. As a pilot project,

RDV seeks to demonstrate a new model for market development projects. Through

participation in arguably the worlds most sophisticated retail market, RDV would like

to build industry capability, knowledge and programs to benefit both UK and other

export trade development.

By participating in this project, Victorian producers aim to see a growth in sales to the

UK market and benefits from reduced risk capital expenditure to establish UK trade;

synergies created in marketing and distribution systems; and increased capability and

knowledge generated through gearing up to supply UK market.

RDV leadership is essential to creating a successful project. By creating capability

and knowledge for Victorian producers, RDV is improving the capacity of Victorian

producers to trade in the UK. In addition, by working strategically with industry, RDV

is creating new retail and distribution opportunities for trade development.

6.2. Project ScopeIt is important to note that:

1. Participants in the project will be current or prospective Victorian food

suppliers to the UK Retail market.

2. The project is designed to work with suppliers across the entire demand

chain and aims to enhance commercial performance of Victorian suppliers

already in market, with a distinct pathway to market for those at various

stages of market entry development.

6.3. Description of Activities to Be Contained in Project

The project aims to undertake the following activities, which deal with different partsof the demand chain. Undertaking activities along the demand chain gives RDV a

complete UK strategy, and Victorian producers a complete pathway to market without

having to be involved in every component of the project.

Many of these activities can be run concurrently which should provide best return on

RDV investment and a co-ordinated approach for companies. A process for running

the project activities in established in Section 6.4.

1. Establishment of Relationship with UK Retailer.

This would look to include the following activities where possible:

Formation of relationship with UK Multiple retailer. The project would hand toRDV a strong relationship with the retailer whereby RDV can act as an

ongoing single entity representing (not commercially) multiple Victorian

products. By acting as a trusted product conduit, RDV can more easily allow

access to the retailer for Victorian food producers.

RDV to provide category management to bring qualified, leading Victorian

food companies to the attention of the retailer. The purpose is for the retailer

to request commercial presentation of products from Victorian

representatives.


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Trade mission to be conducted to buyers head office with Australian feature

day and buyer presentations.

Potential visit to Victoria by retailer buying or business development team (in

the longer term).

RDV to look to establish a longer term relationship with the retailer to expand

the food categories.

Mapping of retail sales channels available in UK (working document for

continual update).

NB. It is important to note that this suggests a multiple UK food retailer. The grouped

summary of prospective UK suppliers indicates this should be the priority. RDV needs

to choose a retailer partner to work with on this project. After a visit to market the best

option for this project may be with health / dietary needs retailers/ gifting or gourmet

stores.

2. Establishment of Cooperative Marketing Campaign

This would look to include the following activities where possible and would occur

once the demand chains had been finalised:

Retailer relationship to be enhanced by a cooperative marketing campaign for

Victorian food and wine in store. Marketing campaign also to utilise Tourism.

Marketing campaign to support new product listings of suppliers. The plan

may include sales promotional activity; POS; leafleting; sampling; advertising;

radio; PR Journalist visits to Victoria.

NB. A marketing campaign is a milestone in the project process, as a component of a

complete demand chain process. It is not the main project purpose.

3. UK Distribution Arrangements

This would look to include the following activities where possible:

Assessment of potential distributor options in UK for Victorian producers..

This will result in a map of UK distributor options (intended as a working

document / database that can be continually updated).

Producers interested in supplying (or already supplying) the UK identified that

having a knowledge of who the main distributors are (by sector and category)

as critical information. This map would detail the distributors sizes,

categories of focus, strategies, main customers, main brands they

represented, any Australian representation etc. At present Australian industry

(and government) knowledge of UK producers is poor and this would be

critical information for both RDV and industry.

Establishment of method and criteria for evaluating and qualifying potential

distribution partners.

Match qualified prospective Victorian Suppliers with UK distributors activelyinterested in buying product.

Production of feasibility analysis for an RDV dedicated distribution centre in

UK. This will be the evaluation an incubator style supply chain including

consolidation in Victoria; warehousing in UK; distribution in UK; sales agency

representation in the UK.

Mission by prospective suppliers to meet with interested distributors.

Potential mission to Victoria by a UK distributor.


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Match consolidation needs of Victorian producers active, or looking to be

active in UK

4. Capability Building Activities

Many of the project activities will specifically build capability (examples include the UK

distributor map and assessment criteria). Additional to this, the following work should

be undertaken:

a) Competitive Intelligence

Mapping of retail sales channels available in UK (working document for

continual update). Producers expressed a huge interest in knowing the

strategies for each retailer across different retail channels. The retail map

would describe retailer size, positioning, strategies, technical accreditation

requirements etc.

In market confirmation of initial company assessment of UK competitive

position.

Guided trade mission to market for prospective suppliers.

b) UK Business Plan Production

Individual work with qualified prospective suppliers to produce business plans

for entry into UK market.

Establishment of template for future suppliers.

c) Corporate Responsibility

Corporate Responsibility is about working in a manner which respects the

many stakeholders affected by business activity. Elements of corporate

responsibility include food miles, carbon foot printing, ethical sourcing and

social issues (health, labour etc). This is a critical UK (food) trend and

Australian suppliers can expect this to become a mainstream (food) issue in

the Australian industry in the next 5 years.

An analysis of current state of corporate responsibility expectations for food

suppliers in the UK market is needed.

This analysis is to be used as a tool for Victorian food producers to assess

their business against. This tool will be useful to assist producers in gearing

up for UK supply, and preparing and positioning their business for the future.

Corporate responsibility is set to be a major international food trend of the

future.

This analysis can be used by RDV to help generate a positioning response

for Victorian food suppliers to UK (potentially with Federal bodies).

This work may highlight a spin off project for RDV to undertake in order to

grow capabilities of Victorian producers.

d) Technical Requirements Clear and easy access to regulations governing access to UK market (tariffs,

quotas etc).

Access to UK retailer expectations of supplier technical accreditations.

RDV should consider the establishment of a password protected website to store this

information.

5. Victorian Food Producers UK Network


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Establishment by RDV of a central network for Victorian food producers supplying the

UK. Facility is used to:

Establish RDV as credible UK market point of contact.

Bring together those interested in supplying or currently supplying UK market,

in order to share learnings.

Assist companies currently supplying the UK to develop further commercial

activities (synergies in supply chain, marketing etc).

Develop the capabilities and expectations of prospective suppliers to UK;

assist them in putting together a UK market plan.

6. Regulatory

The project should look to provide an information flow between industry and Federal

Government activities specifically focused on regulatory barriers to UK market (tariffs,

subsidies, labelling etc). This information should be communicated and discussed at

network meetings or via mailing lists. This activity should also allow industry to have a

coordinated voice on UK issues back to Federal government.

7. Ad Hoc UK Assistance

Through detailed involvement in UK, RDV will be able to perform some tasks for

Victorian suppliers that might not be part of the core project, but are identified as

beneficial for trade development with UK market and provide great benefit and cost

saving. Provision should be made to use synergies from UK activities to assist

Victorian companies entering the UK market outside of the core project.

6.4. Project Plan Recommended Stages

6.4.1. Introduction

Section 6.3 details the activities that RDV might carry out in order to benefit industry.

This section puts these activities into a recommended Project Plan, split into distinct

stages. For maximum benefit the project plan runs the activities identified above

concurrently.

Each stage should be treated as a milestone within the Project. On completion of

each milestone, the project plan needs to be reassessed to ensure project objectives

are met (section 6.1).

In term of the stages contained within this Project Plan. Stages 1 & 2 are completed.

Stages 3, 4 and 5 should be treated by RDV as up front risk capital to provide the

intelligence and planning to enlist companies. This is work that these companies

would not otherwise be able to undertake. RDV should seek to gain in principle

support from producers in order to progress with these stages. Stages 6 9 should

be undertaken in partnership with industry.

6.4.2. Stage 1 Initial Market Research Complete

Market Research is undertaken to confirm that a market opportunity exists. This work

has been completed previously. Key Findings:


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NFIS, Sainsburys and Tourism Australia UK consumer research showed

consumer opportunity for Australian food in UK.

Australian wine has successful track record of supply to UK market.

NFIS Retail Project demonstrated commercial success for Australian food

products in UK market.

Over 15 food producers are now in the UK market as a result of the NFIS

project.

It should be noted that the producers interviewed in the course of this discussion fully

supported RDVs initiative to develop further trade with UK.

6.4.3. Stage 2 Initial Project Plan Current Work

This report gives an initial project plan for developing further trade with the UK retail

market. The output of this report is:

Grouped summary of the export business for Victorian producers into market

(including current supply chain and obstacles to trade.

Grouped summary of producers into project participants. Assessment of producers product range fit to market.

Overview of suggested project options for RDV in UK market.

A project plan that includes summary of project activities to be

implemented; description of processes needed to set up activity; candidate

producers for participation; potential timings, costs and partners.

The output is a project plan and map of potential participants.

6.4.4. Stage 3 Industry Group Session - UK Exporters FoodProducers Network Meeting

This stage brings industry together to gather in principle support for the project, andcommence a UK Export Network.

The objectives of this meeting are to:

Inform industry of the results of the initial project plan work (and conclude that

stage of the project).

Galvanise in principle support from industry for an RDV UK Retail Project

Plan.

Gain commitment from industry to provide information necessary for Stage 4.

Bring together current suppliers to UK and prospective suppliers to UK for

inaugural Victorian Food Producers UK Network meeting.

Key activities undertaken at the meeting are:

Welcome address from senior a RDV manager Gary Gaffneyrecommended.

Presentation on RDV project plan.

Short presentations by various Victorian food producers who have been

active in UK market with positive and negative successes. A wine producer

should also present.

Provision to each company of project plan document, including bespoke letter

with RDV assessment of how this project might benefit each companys trade

development with UK.


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Each producer to be asked to sign a letter of in principle support for RDV UK

Retail Project. This letter would acknowledge a commitment to providing RDV

with information necessary to conduct Stage 4 of the project.

An undertaking of confidentiality by RDV to protect each companys

information.

The outputs from the meeting are expected to be:

Networking by Victorian food producers who are active, or would like to be

active in the UK market.

Shared learnings by experienced UK exporters with other Victorian

producers.

Feedback on RDV UK Retail Project Plan. This will be used to amend and

update the Project Plan where necessary.

Direct feedback from RDV to individual producers on how this project may

benefit their plans in UK market.

Determine the number of producers with in principle commitment to

supporting an RDV UK Retail Project.

Establish a need to set up a regular UK Exporters Network.

6.4.5. Stage 4 Capability Building and UK Preparation Visit

This stage is crucial in setting up the capability for RDV (and Victorian Producers) to

participate fully in the project. It will bring tangible benefits to producers (and project),

as well as establishing credibility for RDV and beginning to build relationships in the

market.

The objectives for this stage:

Satisfy RDV that producers own assessment of UK market position is viable.

RDV can add direct value to companies by conducting further base

competitive analysis, or feeding back individual information as requested.

Develop relationship with the London VGBO and in market representative. Scope potential relationships with retailers; complete UK part of retail

mapping work.

Scope potential relationships with distributors; assess how a specific

Victorian incubator may occur if required; meet with identified distributors to

assist mapping work.

Scope corporate responsibility requirements of supplying to UK.

Scope potential relationships with marketing service providers and partners.

Produce business planning and distributor evaluation tool for companies

looking at engaging in UK market.

Key Activities to be undertaken in this phase will be:

Two week market visit in order to meet with potential candidate retailers;

meet with potential distributors; meet with London VGBO; meet with in marketservice providers; complete competitive intelligence check work needed

Request to project participants for completion of business background

template. Project participants will also be able to request certain competitive

information to be confirmed.

Mapping of UK Retailers (multiples, health, gourmet, regional, department

store etc). This will include desk research; purchase of latest AC Nielsen

report; personal contacts; UK meetings.


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Mapping of distributor options in UK. This will include desk research, personal

contacts, potential trade shows; UK meetings; purchase of distributor report.

Research (benchmarking) of corporate responsibility models in the UK. This

will include desk research prior to UK meetings.

Production of business planning and distributor evaluation tool.

The outputs expected at this stage are:

Satisfaction from RDV that company analysis of market place positioning is

correct.

Map / Database of UK Retailers.

Assessment of retailers with which RDV might form a partnership

arrangement.

Map / Database of potential UK Distributors. Building of relationships with

candidate distributors.

Corporate responsibility requirements of supplying UK market (this may spin

off into separate major project).

Business planning and distributor evaluation tool for UK market.

Bespoke competitive intelligence by Producer where required. Commencement of relationship with London VGBO and any in market service

provider.

6.4.6. Stage 5 Project Prospectus

This stage develops the tool to officially recruit producers into the project.

The objectives for this stage are:

Development of a detailed project prospectus. The project prospectus would set out

definitive arrangements and costs for each individual project activity. This project

prospectus is to be used to recruit producers to project. Specifically the project

prospectus would detail for each activity: Defined objectives

Defined opportunity

Defined costs

Defined timings

Defined process

Defined partners

Production of project prospectus. Prospectus should be put into a format which can

be easily distributed to potential participants.

The activity required at this stage is the writing of the prospectus based on the

information found to date.

NB Should producers require specific assistance to make themselves ready for the

UK, or to participate in the project, they will be expected to invest in getting

themselves to that position.

6.4.7. Stage 6 Recruitment of Participants

The objective of this stage is to recruit participants to the project based on the project

prospectus.


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The activities required will be:

Meeting of Victorian Food Producers UK Network to present prospectus and

other work completed to date. This network meeting will be a useful tool to

raise any technical market issues that producer have, and further share their

UK learning with each other.

Individual follow up meetings with potential participants will be required.

The outcome of this stage will be a core group of producers who are willing to co

invest in various activities in order to develop trade with the UK.

6.4.8. Stage 7 UK Market Visit 1

This stage aims to confirm partnership arrangements with a retailer and providing

quick win producers with a distribution chain that allows them able to start doing

trade with UK immediately.

The objectives of this stage are to:

Confirm partnership arrangements with UK retailer.

Take those producers at an advanced stage of readiness to UK in order tomeet with prospective distributors identified in Stage 4.

The activities required will be:

Visit to UK to discuss partnership arrangements with UK retailer. This might

need some samples from producers.

Guided store visit day for producers to confirm competitive position.

Individual meetings between producer and UK distributor (arranged by RDV).

If possible, RDV to be present at meetings in viewing (and learning) capacity,

but not to take a part in commercial negotiations.

Potential to research any competitive positioning work required by companies

researching UK business plan.

The outcomes of this stage will be:

Partnership agreement between RDV and the UK retailer. This is long term

strategic relationship that will outlast the duration of this project and form a

legacy for Victorian food and wine producers to benefit from over a an extend

period of time.

Distribution agreements signed by producers on visit to UK.

6.4.9. Stage 8 UK Market Visit 2

This stage is a larger trip to UK market and takes a number of producers all at varying

stages of development. Now retailer relationships are signed off, this trip is the first

opportunity for qualified, producers to present to a retailer. At this stage it might also

be appropriate for a senior RDV representative to visit the market with this group.

The objectives of this stage are to:

Take a group of producers (potentially at various stages of development) to

market to develop an additional retailer relationship; develop a distribution

system in UK; and / or complete a fact f inding assessment of their

competitive position in UK market.

Develop in market relationships for RDV with retailers and distributors.


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Begin to assess and recruit marketing service providers and partners for a

UK marketing promotion.

The activities in this stage are:

Presentation at UK retailers head office. This would include direct buyer

presentations and a food show for producers not yet able to present to

buyers, but seeking product feedback. This will require some set up work

prior to market visit.

Presentations by suppliers to preselected distributors interested in buying

product. Various distributors may also take the opportunity meet those

looking at the UK market, while not expecting a commercial outcome from

that meeting. This will require some set up work prior to market visit.

Guided store visit day to assess competitive position for products within

market.

Meeting between RDV and marketing service providers and potential

partners.

Its worth noting that producers will be able to benefit from different aspects of amarket visit dependent on their stage of development in UK. Those producers with

least market knowledge will be able to participate in all activities in order to scope

their opportunity. Those producers integrally involved in the UK market may only have

minimal involvement, but would service existing customers during visit also.

The outcomes of this stage are expected to be:

Establishment of listings for Victorian suppliers with a UK retailer

Establishment of distributors for prospective Victorian suppliers to market.

Generation of competitive intelligence and market information for prospective

suppliers to market.

6.4.10. Stage 9 - Marketing Campaign

The aim of the marketing campaign is to increase brand exposure and drive product

sales. Marketing activity in the UK is expensive. Joint activity will make marketing

more affordable for brands that are established in the market and brands that are

launching in the market. It is highly likely that food, wine and tourism would need to

be involved in the marketing campaign.

The objective of this stage is to put together a cooperative marketing campaign for

Victorian producers focused on one UK retailer.

The potential activities required in this stage are:

Development of a cooperative marketing campaign.

Identification of marketing service providers.

Identification and recruitment of Tourism and Wine partners. Identification and recruitment of interested producers.

Sales process to retailer.

Management and evaluation of the campaign.

The outcome of this stage is expected to be a marketing campaign for a group of

Victorian food producers in the UK market.


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6.4.11. Stage 10 Project Consolidation

The objective for this stage is to consolidate the work achieved to date in the project.

It is recommended that this stage would run in parallel to Stage 8.

The activities contained within the review should be:

Activities to date should be reviewed for effectiveness. Relationships developed should be reviewed for further opportunities (extend

to other categories?).

Participants should be reviewed for further actions.

The outcome of this stage would be a revised plan for further UK market development

activities.

6.5. Candidate Companies Open to ParticipationFollowing the interview process it is possible to split candidate producers into 3

sections those who have specific interest in participating in an RDV led project into

the UK; those whose involvement is highly contingent on the project plan and targetchannel; and a producer active in UK but not currently open to this project.

uk food research report[1]

Documents