Opportunities in France for New Zealand F&B sector

1. Opportunities in Francefor New Zealand F&B sector by Alice Bourrouet Market Development Manager - Paris 1 December 2008

2. 643,427 sq km (more than twice the size of New Zealand). border countries: Belgium, Germany, Italy, Luxembourg, Monaco, Spain, Switzerland. 62 million inhabitants (July 2008 estimation) GDP per capita: US$32,600 (2007 est.) the world’s 5th largest economy  the market is big and people have money (the world factbook www.cia.gov ) What is France ?

3. What do YOU think France is?

4. Think European …. • Customs Union: • EU is celebrating the 40 years of the customs union • Free trade between European Union Members • One member authorises product and the others follow • Ex: food supplement • EU directives:a « directive » has to be adapted in the local legislation by all members. • Ex: the 178/2002 for traceability • A big market for New Zealand Food export: • NZ F&B export to Europe: 3 billion euros • Equals USA, second market of the world for NZ • European regulations: http://eur-lex.europa.eu/fr/index.htm

5. … but act local! • Cultural differences: • Each European country has its own culinary habits • Ex: Australian Macadamia nuts • Local law: • A European directive can be applied by a EU member or changed to a stricter form. • Ex:Red Bull in France • Local business culture: • Relationships count • Timing is long • Competition is strong

6. A tradition of trade between France and New Zealand

7. A tradition of trade between France and New Zealand • France is New Zealand’s 11th largest trading partner (by New Zealand trade statistics). • New Zealand’s exports to France have steadily increased over the past decade to reach NZ$370 million (NZ statistics) • The main exports are food products (80%) – lamb, venison, seafood, dairy, apples, kiwifruit – but manufactured products such as marine products are also growing in importance. • There are 53 French companies that maintain a presence in New Zealand and 300 companies in neighbouring Australia. • New Zealand has had an export development and promotion office in Paris since 1963

8. New Zealand Export to France(World Trade Atlas – 2007) • Meat: 230 million NZD • Seafood: 24,2 million NZD • Edible fruits and nuts: 6,8 million NZD • Vegetables: 2,7 million NZD • Beverages: 5,4 million NZD • Prepared meat and fish etc: 300 000 NZD • Dairy, eggs, honey: 455 000 NZD

9. And French investments in New Zealand…

10. Key information to enter the French market • Distribution From importers to wholesalers, from wholesalers to food processors … or retailers… and HRI. • Labelling In French … ingredients content, fat, and other trends. • VAT and taxes 19.6% on all items (it may change for the restaurants) Import taxes information on www.europa.eu or www.douanes.gouv.fr • European quotas Dairy and meat

11. Import and wholesale: the Rungis International Market • A surface area of 232 hectares with more than 727,000 m2 under cover, including 470,000 m2 of buildings used for commercial purposes. • 18 million European consumers are supplied from here, including 12 million within a radius of 150 km around Paris, i.e. one fifth of the French population. • · For the Paris region alone Rungis Market represents: · 50% of sea and river produce· 45% of fruits and vegetables· 35% of meat produce · 50% of cut flowers and potted plants • The Market achieved sales of 7,3 billion Euros. • 1,500 000 metric tons of incoming food produce in 2006, 36,8 million bunches of cut flowers and 19.8 million units of potted plants • A group of 1,230 companies that represent overall 12, 200 jobs, 7,200 of which are at wholesalers. • 20,400 regular buyers come to Rungis: retailers, restaurateurs, wholesalers, import-export companies, GMS. .

12. The retail sector

13. The green retail sector:Casino and its carbon footprint measurement system

14. Challenges • Emphasize on sustainability, organic and fair trade products • Importance of traceability • Strong ‘buy local’ movement • Pressure on the prices • Need to be persistent and have a local presence • European and local regulations play major role in business • Tough competition especially from local actors

15. The right questions while looking for opportunities • Do I have the right profitable business structure? • Do I have access to the market? • How competitive am I on the market? • How is the market structured? • Who would be the ideal partner for my company?

16. What can NZTE offshore do to help you? • Help you identify the right strategy • Market research • Provide contacts • Open doors • Help on trade shows • Advise on marketing strategy • Provide lists of media, translators, legal advisers • Etc.

17. Help you put your products on show • talk to the B to B media • Organize functions • Let you participate to our events • Help you at trade shows

18. SiAL: the main F&B trade show in France and Europe. • It is an international trade only event: • 5500 exhibitors from 104 countries; 147 000 visitors from 91 countries • More than 45% of attendees are from the retail sector • It is the fair for innovation: • Trends and Innovation Stand, Sial d’Or • (in alternance with ANUGA) • Next edition: 17-21 October 2010

19. European specialised shows • European Seafood Exhibition, Brussels, 28-30 April 2008 • Fruit Logistica, Berlin, 4-6 February 2008 • Prowein (29-31 March 2008), Vinitaly (2-6 April 2009), Vinexpo (21-25 June 2009) • Etc

20. MERCI!Alice BourrouetMarket Development ManagerNew Zealand Trade and EnterpriseNew Zealand Embassy7 ter rue Leonard de Vinci75016 Paristel: 01 45 01 3 13alice.bourrouet@nzte.govt.nz