Vicky Kell Director Trade Invest NI

1. SEIZING EXPORT OPPORTUNITIES Vicky KellDirector Trade Invest NI

2. Food and Drink Sector in Northern Ireland • One of the relatively few sectors in the UK to exhibit growth in 2009 - output grew by 10% - employment grew by 2.9% • NI now amongst biggest suppliers of food & drink to GB & ROI • More than 60% food & drink produced in NI is exported – 15% of all manufactured goods • £600 million of product is sold to markets outside the UK • £1.5 billion of product is sold to GB • Sector is worth almost £3 billion and employs 19,220 people

3. Internationalisation trends • Developed markets - global opportunities were historically centred around– established markets • USA, UK, France, Germany • BRIC opportunities – emerging markets (high level of economic growth with sustainable rate of activity) • Brazil – 9th highest GDP • Russia – 7th highest GDP • India - 4th highest GDP • China- 2nd highest GDP • New markets emerging CIVETS • Columbia, Indonesia, Vietnam, Egypt, Turkey & South Africa • Large & young populations • Politically stable • Decent financial systems • Financially rich markets • KSA • Kurdistan

4. Increase the number of companies exporting Develop company export capability Trade Increase business export performance Identify & present appropriate opportunities

5. Invest Northern Ireland Trade Programme 2011/12 Invest NI offices Sector Mission Multi Sector Mission Exhibitions

6. Food Events: January 2011 to March 2012

7. Issues and ChallengesFacing Food & Drink Businesses Peter McArdle Food Division 3rd March 2011

8. Why the Food & Drink Industry Matters • The No.1 for sales, external sales & employment in NI manufacturing. • Worth £3.2 billion to NI’s economy. • 92,000 employed - c.20% of private sector employment. • 400 food businesses & centralised resources in Invest NI. • Focus on Food Strategy. Manufacturing Sales External Sales Export Sales 28% 67.2% 45%

9. Size and Importance of the Industry Sales (x), External Sales (y) and Employment by Manufacturing Industry

11. Issues & Challenges • Reduced Income • Reduced Spending • Looking for discounts • Consumer trading down • Less eating out • Increase Profile in the International Marketplace • Increase Productivity • Increase Sustainability • Increase Competitiveness

12. Other Challenges • Reduced consumer spending will be a major challenge. • This reduced consumer spending is bad in NI but much worse in the ROI which may affect exports to that region. • Consumers “still need to eat” but will face higher food prices. • Retailers will drive more cost efficiency which will pressurise margins. • Growth opportunity for home cooking products. • Companies need to be more innovative in securing market share. • To seize the opportunities both in the UK and Europe, and to penetrate markets further afield.

13. NI FOOD & DRINK - ACROSS THE WORLD Far East Europe Canada USA

14. N USA W E S

15. N W E EUROPE S

16. N CHINA Zoom W E S

17. N AFRICA W E S

18. Elsewhere • Hong Kong • Japan • Far East • New Zealand • Canada • Middle East

19. HOW INVEST NI ASSISTS COMPANIES TO EXPORT ELAINE CURRAN INVEST NI TRADE TEAM

20. KEY TRADE SERVICES TO SUPPORT EXPORT Invest NI has a range of Trade Services to support companies keen to export and those already exporting: Key Trade Services include: • Multi-Sector & Sector Missions and Group Stands at Exhibitions • Sales & Marketing Workshops • Programmes – Going Dutch • Export Development Service • Business Information Centre – Market Intelligence Resource • Trade’s Services provide access to exporting companies across a range of markets for relatively low risk

22. MULTI-SECTOR & SECTOR TRADE MISSIONS Why participate ? • Enables access to new markets to increase customer base • Permits companies to experience first hand the market for products • Structured support provided to assist you to: • Research the market • Identify distributors/agents/partners • Organise meetings with screened partners • Organised networking events to reinforce NI capability in market • Access to markets at a limited risk to your business • Financial support available to qualifying companies towards, travel accommodation and research

23. Group Stands - Exhibitions Invest NI supports and manages Group Stands at a range of International Exhibitions Why Participate? • Dedicated and internationally experienced team in exhibition design, build and management • NI companies sub-Let space on an INI Group Stand • Advice and Guidance on Stand Design, Layout and Graphics • Support and advice on exhibition logistics • Assistance on pre-show preparation ie customer targeting • Broad support from INI staff and other NI exhibiting companies during show • Organised networking events • Financial support to qualifying companies • Overall a complete exhibition solution

25. Workshops – Sales and Marketing Trade’s Passport to Export Workshop Programme provides practical advice and guidance across a diverse range of sales and marketing functions. Key workshops that support companies developing export markets include: How to research and Export Market Managing Agents and Distributors Winning Sales Selling Successfully at Exhibitions Over 14 workshop titles developed specifically to support exporters strengthen their skills to exploit new export market opportunities. Financially supported by Invest NI with a one day workshop costing companies £75/per person

26. Programmes – Going Dutch • Specific programme developed to help companies exporting for the first time outside GB and ROI • Exporting to Netherlands used as “stepping stone” into rest of Europe Benefits of Programme • Short Programme – 12 to 14 weeks duration • Structured format providing companies with: • Delivered by experienced provider based in the market with established experience in sales and marketing • Low Risk entry point to an export market

27. EXPORT DEVELOPMENT SERVICE • Trade provides specialists to work companies on a 1:1 basis to assist in the development of export growth • The Advisory Service is targeted specifically at companies who are both not yet trading internationally or those that have the potential to expand further through new export markets Key outputs of using the Service:

28. Business Information Centre – Market Intelligence • The Information Centre is provides access to market research and business information to help you find new customers and markets and to support you in making decisions based on commercial intelligence • Information Available: • Excellent source of information – but requires a focused approach to maximise return!

29. Summary • Trade has a range of tools and services to support Food companies to explore new markets • Participating on Missions or Exhibitions can be a low risk route to establishing new customers/new markets • Programmes, including Going Dutch may offer a structured plan to assist with market entry into Europe for first time exporters • The Export Advisory Service, Business Information Centre and Workshops can provide you with the knowledge, skills and commercial intelligence to develop and grow your markets globally

30. Mark GowdySales & Marketing Manager

31. Background • Processing and marketing innovative oat based breakfast cereals • One of Ireland’s oldest brands – original site - since 1841 • Farmer owned co-operative (Fane Valley) – close grower links • Accreditations • BRC Grade A (version 5) • Soil Association - Organic Certification, • Kosher • Recent awards; • Members of the Guild of Fine Food - Winners of Great Taste Gold Awards for three consecutive years within the luxury breakfast cereal category • 2008, 2009 & 2010 (including a best in category Double Gold) • Awarded “Breakfast Champion” title by the Home Grown Cereal Authority for “commitment to the promotion of delicious and healthy breakfasts”

32. Branded Markets • International • Spain – El Corte Ingles, Carrefour, Super Sol (since 2005) • Malaysia, Singapore, Indonesia – inc. Tesco, Carrefour (since 2005) • UAE – Lu Lu, Choitrams, Al Maya ( Since 2007) • Hong Kong - Great Food Store, Park n’Shop, Wellcome group (Since 2005) • United States (2011)

33. Exporting – “Go out of the umbrella - be prepared to get wet!”

34. Branded: Undifferentiated Marketing

35. Branded: Differentiated Marketing

36. INI Support • Desk Research • Meet the buyer events • Trade Missions • In market specialists/Food Sector team • Trade Exhibitions

37. “Commitment – like Eggs & Bacon”

38. “The Hen’s involved but the Pig’s committed”

39. The Food Event 2011Thursday 3 MarchSeagoe Hotel, Portadown BRIEF OVERVIEW OF THE BRIBERY ACT 2010

40. Speaker John McMahon Partner Johnsons Solicitors John has 19 years experience in advising companies on all aspects of their corporate and commercial agreements. He trained with Eversheds in England and was subsequently a Partner with Halliwells and Counsel to Appelby (the world’s largest offshore law firm) before returning to Northern Ireland to join Johnsons. John’s team at Johnsons is very much Partner led and has been noted in the Legal 500 2010 for its “excellent service” and “attentive and practical advice”.

41. The Bribery Act 2010 Briefing Overview • Offences and penalties under the Act • Implementing “Adequate Procedures”

42. Transparency International Corruption Perceptions Index 2010

43. The Bribery Act 2010 The four offences under the Act: • Offering, promising or giving a bribe; • Requesting, agreeing to receive or accepting a bribe; • Bribery of a foreign official; • Failure of a commercial organisation to prevent bribery.

44. The Bribery Act 2010 Penalties on Conviction under the Act Organisations – unlimited fines Individuals – unlimited fines, 10 years imprisonment, or both.

45. The Bribery Act 2010 Principle 1: Proportionate procedures A commercial organisation’s procedures to prevent bribery by persons associated with it are proportionate to the bribery risks it faces and to the nature, scale and complexity of the commercial organisation’s activities. They are also clear, practical, accessible, effectively implemented and enforced. Principle 2: Top level commitment The top-level management of a commercial organisation (be it a board of directors, the owners or any other equivalent body or person) are committed to preventing bribery by persons associated with it. They foster a culture within the organisation in which bribery is never acceptable.

46. The Bribery Act 2010 Principle 3: Risk Assessment The commercial organisation assesses the nature and extent of its exposure to potential external and internal risks of bribery on its behalf by persons associated with it. The assessment is periodic, informed and documented. Principle 4: Due Diligence The commercial organisation applies due diligence procedures, taking a proportionate and risk based approach, in respect of persons who perform or will perform services for or on behalf of the organisation, in order to mitigate identified bribery risks.

47. The Bribery Act 2010 Principle 5: Communication including training The commercial organisation seeks to ensure that its bribery prevention policies and procedures are embedded and understood throughout the organisation through internal and external communication, including training, that is proportionate to the risks it faces. Principle 6: Monitoring and review The commercial organisation monitors and reviews procedures designed to prevent bribery by persons associated with it and makes improvements where necessary.

48. The Bribery Act 2010 What can Johnsons do for you? • Explain the scope of the new offences; • Advise on how to interpret the Government guidance and formulate an effective and workable anti-bribery policy; • Provide guidance on carrying out a bribery risk assessment; • Review of policies and procedures; • Provide specimen questions for due diligence on counter-parties; • Drafting and review of employment and consultancy contracts; • Drafting and review of commercial contracts-agency, distribution, out-sourcing etc; • Presentations and training to management and employees; • Guidance on how to deal with reported incidents of bribery.

50. The Bribery Act 2010 – Contact Details John McMahon Partner, Johnsons Johnson House 50/56 Wellington Place Belfast BT1 6GF Tel +44(0) 28 9024 0183 Mob +44 (0) 7525 235 708 john.mcmahon@johnsonslaw.co.uk www.johnsonslaw.co.uk Archie McAvoy Non Executive Chairman Marsh Limited Bedford House Bedford Street Belfast BT2 7DX Tel +44(0)289055611 Mob +44(0)7584491713 archie.mcavoy@marsh.com