New Market Developer, July-August 2017

Issue 4: July - August 2017

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In this Issue:


Export Rising Star Award Winner

Rising Star Award Presentation

Pictured (left to right): Elliott Rader, The GFB Vice President; Marshall Rader, The GFB President; Jamie Clover Adams, MDARD Director; Jamie Zmitko-Somers, MDARD International Marketing Program Manager.

The Michigan Department of Agriculture and Rural Development (MDARD) has selected The Gluten Free Bar (GFB) of Grand Rapids, Michigan, as the first recipient of the 2017 Michigan export “Rising Star Award.” The award was presented by MDARD Director Jamie Clover Adams to company officials.

The company was started in 2010 during an attempt to create a protein bar that tasted good, maintained its health benefits, and was accessible to everyone. Ben Wahl of The GFB said, “our mission is to make great tasting nutritious snacks that everyone can enjoy, and that certainly applies across borders.”

After creating the perfect bar, they realized that this was something that other people around the world could use, so exporting was a logical next step. “We’ve had a lot of help since we started exporting in 2015, and we’re excited to continue our momentum in the years to come that will ultimately add more jobs and positively impact our community here in West Michigan,” Wahl stated. Due to their efforts, the company now operates in four new markets and has employed several new workers from the local community in the Grand Rapids area.

The demand for gluten-free goods has been growing around the world. In the United States, the market for these products has more than doubled since 2011. Similar trends are being seen in Canada, the United Kingdom, Italy, and Australia, among other markets.

The award review committee consisted of representatives from Foster, Swift, Collins & Smith P.C., Van Andel Global Trade Center, Comerica Bank, Michigan Farm Bureau and Michigan State University’s International Business Center.  The decision was based upon several factors including marketing plans, ability to expand into new markets, alliances with other organizations, and exports sales growth over the last three years. To be eligible, the products must be more than 50 percent grown, processed or manufactured in Michigan.

For more information, www.michigan.gov/agexport or contact Jamie Zmitko-Somers at 517-284-5738.


NRA and BAR Shows Bring Success to Michigan Companies

The annual National Restaurant Association (NRA) Show, which took place May 20-23 at McCormick Place in Chicago, proved even more eventful than years prior, with more suppliers and buyers attending than ever before. Thirteen Michigan companies exhibited in the Michigan Pavilion hosted by the International Marketing Program, including:

nra

Eastern Market, Mrs. Pruitt’s Cha Cha Salsa, Wolf Moon Mixers, High Five Salts, Detroit Friends Potato Chips, HoneyTree, Safie Specialty Foods, Zeeland Food Services, Michigan Potato Industry Commission, Great Lakes Potato Chips, Michigan Bean Commission, and Herkner Farms. 

The show was a huge success, with participating companies reporting an expected $3.85 million in total sales and over 300+ new contacts made during the show.

The annual Beverage Alcohol for Restaurants (BAR) Show also took place May 21-22 at McCormick Place in Chicago! With craft beverages on the rise, this show brought industry professionals from around the world together for a truly spectacular show. This was the first time that the International Marketing Program hosted a Michigan Pavilion at the BAR show, which showcased the following Michigan companies: Bell’s Brewery, Blake’s Hard Cider Co., Saugatuck Brewing Co., Michigan Brewers Guild and Craft Distillers Association, and Grand Traverse Distillery.

bar

During the NRA and BAR shows, the International Marketing Program also worked in partnership with Food Export to host Buyers Mission in conjunction with each show. Eleven international buyers traveled from around the world for the Food Service Buyers Mission at NRA where five Michigan companies promoted their products. At the Beer, Wine, and Spirits Buyers Mission at BAR17, five Michigan companies met with buyers from four different countries to showcase their craft beverages.


Market Focus: Gluten-Free Foods

As Generations Y and Z become the dominant consumer groups, new market trends are beginning to appear in the food industry. One of the major market shifts is in the healthy and natural products sector, where gluten-free products are growing rapidly and becoming common place in countries around the world. The view that gluten is unhealthy is a driving force for this trend, and it will keep the market viable even to those who do not have an intolerance to gluten.

The U.S. is one of the fastest growing markets for gluten-free foods, with the total domestic market size increasing by 129% from 2011 to 2016. Other Western countries have also seen this upward trend. Countries that have an emphasis on bread and pasta in their diets, such as Italy, Germany, Australia, and the U.K., have seen large market growth in gluten-free options, while the gluten-included versions have seen recent market stagnation or decline in year-on-year growth. While most of the market growth is reserved to North America and Western Europe, developing areas are starting to see an increase in the gluten-free and healthy foods markets. By 2016, the gluten-free markets in the Middle East and Africa combined saw an increase of about 1700% since 2011 with a good portion of the growth being generated by the United Arab Emirates (UAE).

While much of the gluten-free popularity can be attributed to the consumers’ desire for healthier foods, the technological advancement of gluten-free products has significantly aided to its growth as well. In the age of mobility, snack and ready-to-eat foods have become more common place in households. Many consumers who wish to buy healthier versions of their favorite snack foods opt for these quick gluten-free options. As demand continues to rise for these goods, it will become increasingly important for specialty food companies to innovate and supply consumers with quicker, healthier, and better tasting food varieties around the world.

For more information on MDARD’s International Marketing Program and assistance in marketing gluten-free products internationally, visit www.michigan.gov/agexport

(Sources: Euromonitor, Food Business News)


eCommerce: A Whole New World?

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The emergence of the internet and the growing reliance on technology has spurred the growth in demand of foreign products. eCommerce, which are transactions that take place electronically over the internet, has risen to fill the gap in demand for these foreign goods that domestic suppliers cannot meet. China has quickly become the largest and fastest growing eCommerce country in the world, and this trend is expected to continue as the Chinese government continues to support its growth.

As the Chinese middle class grows and incomes continue to rise, consumers are looking for more luxury products that are hard to find and more expensive when sold by domestic suppliers. In fact, foreign eCommerce in China has grown 86% since 2015 due primarily to the convenience that shopping online brings to consumers.

According to a reporting done by the consulting firm McKinsey, U.S. agriculture products such as milk powder, baby formula, organic foods, and pet food are becoming increasingly important in the Chinese eCommerce market because consumers see them as more reliable than domestic goods. Trends also show an increase in purchases of value-added food and agriculture products, which is good news for companies looking to enter the market while it is still developing.

To facilitate the immersion of U.S. businesses into the Chinese eCommerce world, Alibaba hosted for the first time Gateway ’17 at the Cobo Center in Detroit June 20-21. The conference invited guests to learn about the ins and outs of global eCommerce and the importance of the Chinese market. With more than 460 million online shoppers in China, spending more than $750 billion annually, Alibaba is a vital link between companies and consumers. Alibaba is the world’s largest retail commerce company connecting nearly half a billion Chinese consumers with products from around the world. Alibaba founder and keynote speaker Jack Ma presented on his commitment to promote U.S. business growth in China through eCommerce at Gateway ’17.

(Sources: McKinsey, Forbes, Euromonitor)

Export Success Story: Cherry Central

cherry

Cherry Central Cooperative, Inc., located in Traverse City, Michigan, in the 1st Congressional District, attended the 2016 Michigan Department of Agriculture and Rural Development (MDARD) China Trade Mission with the help of Food Export Midwest’s Branded Program. While in China, they met with buyers in multiple cities throughout the country and learned more about the Chinese market.

Click here to view the rest of the story.


Rep Finder Service

Food Export-Midwest has fostered strong relationships with 19 overseas In-Market Representatives. These Representatives are available to assist your company with finding opportunities in the market, assessing which of your products fit the market, coordinating meetings with buyers, promoting your products, and more! Click here for more information on this invaluable service. 


Upcoming Events

Natural Products Buyers Mission at 2017 Natural Products Expo East
Sept. 13-14 I Baltimore, MD
Early reg. ends July 12
Reg. ends Aug. 2

Michigan Pavilion at Americas Food and Beverage Show
Sept. 25-26 I Miami, FL

Value-Added Feed Ingredients Buyers Mission at the 2017 World Dairy Expo
Oct. 2-5 I Madison, WI
Early reg. ends July 31
Reg. ends August 21

Michigan Specialty Crops Booth at Anuga 
Oct. 7-11 I Cologne, Germany
One space left! For more information or to register, contact Allie Fox VanDriel at foxa1@michigan.gov or 517-284-5737.

Convenience Store Buyers Mission at the 2017 NACS Show
Oct. 17 I Chicago, IL
Early reg. ends August 15
Reg. ends Sept. 7

Focused Trade Mission to Korea on "Evolution of U.S. Foods"
Nov. 9-10 I Seoul, South Korea
Early reg. ends July 12
Reg. ends Aug. 23

Private Label Buyers Mission 2017
Nov. 9 I Philadelphia, PA
Early reg. ends Sept. 7
Reg. ends Sept. 28

Private Label Buyers Mission at the 2017 Private Label Manufacturers Association Show
Nov. 12 I Rosemont, IL
Early reg. ends Sept. 11
Reg. ends Oct. 2

Focused Trade Mission to Dubai
Dec. 3-4 I Dubai, UAE
Early reg. ends Aug. 1
Reg. ends Sept. 12

Focused Trade Mission to Kuwait
Dec. 5-7 I Kuwait
Early reg. ends Aug. 1
Reg. ends Sept. 12


China Trade Mission 2017

Join Michigan Department of Agriculture and Rural Development Director Jamie Clover Adams for a Food and Agriculture Trade Mission to China. 

Location: Hangzhou and Shanghai
Dates: November 6-8, 2017
Expenses
Participation fee: $1,000.
Companies are responsible for covering their hotels, flights, incidentals, and meal costs.
Included:
Market briefing by USDA in China, retail tours, pre-scheduled one-on-one meetings with qualified buyers, in-country ground transportation, translation of company information to Chinese.
Registration Deadline: August 23
Registration is limited to 12 Michigan companies!

To learn more or to register, visit www.michigan.gov/ChinaTM.


Get in Touch with the International Marketing Program

Jamie

Jamie Zmitko-Somers
zmitkoj@michigan.gov
517-284-5738

Allie Headshot

Allie Fox VanDriel
foxa1@michigan.gov
517-284-5737


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