New Market Developer, September-October 2017

Issue 5: September - October 2017

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In this Issue:


Michigan Companies Embrace Innovation at United Fresh

United Fresh

For the first time ever, the International Marketing Program hosted a Michigan Specialty Crops Pavilion at the United Fresh MKT Expo at McCormick Place in Chicago, June 13-15. The United Fresh show was a combination of four shows: The International Floriculture Expo, the United Fresh MKT Expo, the United Fresh Tec Expo, and the Global Cold Chain Expo. The shows took place simultaneously, allowing attendees and exhibitors a unique opportunity to experience four different aspects of the food service industry.

Exhibiting with the International Marketing Program in the Michigan Specialty Crops Pavilion were the Michigan Apple Committee, the Michigan Potato Industry Commission, All Fresh GPS and Safie’s Specialty Foods. During the show, 49 new contacts/leads were made, and the companies in the Michigan Pavilion gained $500,000 in projected domestic and international sales! Each of the companies made valuable contacts with domestic and international buyers and other food service professionals.

Stay tuned for information on the 2018 show!

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


Export Help at Your Fingertips

Exports on Tablet

The International Business Center (IBC) at Michigan State University recently launched ExportMI, a website that helps Michigan companies begin exporting, or expand upon their current international markets.

The new website features several helpful tools for companies of all sizes including an export services directory, upcoming export events calendar, target market reports, and online export resources to guide novice and advanced exporters.

Companies can explore the website at www.exportmi.org. For more information on this website, please contact Jade Sims at MSU's International Business Center at (517) 884-1660, or sims@broad.msu.edu.

Market Focus: Private Label

Private-labelling, which is a process by which a retailer sells products under their name that are manufactured by another company, is a unique way for companies to gain shelf space and product recognition without the risk of low consumer interest due to lack of brand recognition.  

There are manufacturing benefits for companies that use private labeling, including lower costs and ease of business for large, medium, and small sized enterprises. Between 2015 and 2016, the dollar value of the market increased by over $2 billion to $49.6 billion, according to the Private Label Manufacturers Association (PLMA). Similarly, the total units of private label goods sold increased by 4.4%, compared to traditional brands collectively increasing by approximately 0.2%. Many privately labeled goods are now trending up quicker than well-known brands with few signs of stopping.

Countries in Western Europe, including Switzerland, the Netherlands, Germany, and Spain, have large private label markets and are viable markets for US exports. Modern grocery retailing is an important component of a strong private label market. Convenience stores, however, are also large buyers of private label products. Packaged and staple food items are the most sought-after private label products with dairy ranking first in private label sales. Other products gaining popularity in private labeling are snack food and pet food. Products with the least private label potential include niche products such as baby food, confectionery, baked goods, and impulse products due to the high brand recognition and quality standards that already exist.

Check out the "Upcoming Events" side panel for more information on upcoming private label missions hosted by Food Export-Midwest!

(Sources: Private Label Manufacturers Association, Euromonitor)


Online Sales, Export Opportunities, and Due Diligence... Oh My

By Jean G. Schtokal
Foster Swift Business & Corporate Law News

Exporting via laptop

Businesses receive online orders from international entities through their websites all of the time. It is important to have your team in place to investigate these offers and make sure they are legitimate requests and that you can legally fulfill the order, before too much time and too many resources are expended.

We were recently brought in by an international banker to help a newly formed US company that was selling its product online.  The product was a very unique, niche product that outperformed all current solutions. The internet sales of this product in the US were starting to take off. A growing number of individuals were buying a piece at a time for personal use, and some retail outlets were occasionally ordering a few at a time. And then, via the email listed on the US company website, a request for pricing of 60,000 pieces came from China.

To continue reading this story, click here.

MI Food & Ag Exporter Directory Updates

The International Marketing Team has been working on updating all of the contact information for our Exporter Database. This is important for ensuring international buyers are able to contact you for your export services. 

If you have received an email on this matter, or want to learn more about this database, please contact Jamie Zmitko-Somers at zmitkoj@michigan.gov or call (517) 284-5738.

If you would like to visit the database, click here.


Upcoming Events

Convenience Store Buyers Mission at the 2017 NACS Show

Oct. 17 I Chicago, IL
Reg. ends Sept. 7

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

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

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

Trade Mission to Vietnam and Thailand for Feed Ingredients and Additives
Jan 15-19, 2018 | Vietnam, Thailand
Early reg. end Sep. 29, 2017


Get in Touch with the International Marketing Program

Jamie Zmitko-Somers headshot

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

Allie Headshot

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


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