U.K.: competition is keen in this mature market

AgExporter, August, 1995

This has become more prevalent as many top U.K. food processing companies have developed alliances with U.S. firms.

AgExporter: Based on your observations, how can U.S. consumer-oriented product exporters continue to succeed in this highly developed and mature market?

Harbert: U.S. exporters need to focus on products not produced in Northern Europe and in which the United States is very competitive. U.S. exporters also need to find new ways to enter the market and seek out niches.

For example, U.S. exporters can take advantage of differences in tastes and preferences between England, Scotland, Wales and Northern Ireland. While not dramatic, this difference accounts for why McIntosh apples do better in the north of England and Scotland than in other parts of the United Kingdom.

Another option, if you're a small exporter, is to look at smaller, but more up-market chain specialty stores like Europa. These stores are located in major metropolitan areas and cater to the international community. They tend to have high profit margins and relatively high prices, but they take smaller shipments and would be willing to stock U.S. potato chips, cookies or crackers.

U.S. exporters also need to watch for trends and be ready to learn what's coming next. For example, there's a big movement right now toward chilled microwaveable prepared meals. These meals are convenient for working mothers, singles and two-income families who pick up the food on the way home from work and pop it in the microwave.

These chilled meals have been successful because the major multiples are national chains that can easily distribute food products throughout this relatively small country.

Another area with good potential, as I said earlier, is for U.S. manufacturers to produce store-brand labeled products for one of the U.K.'s major multiples through affiliate supermarkets in the United States.

Finally, the U.S. agricultural affairs office in London can help U.S. exporters identify potential importers and anticipate trends through buyer's guides, market briefs, commodity reports, an annual American Food Directory that lists U.K. importers handling U.S. foods and beverages, a USA Wine Directory and a computerized importer list by product and commodity.

For more information about the U.K. market, contact:

U.S. Agricultural Affairs Office

American Embassy, London

PSC 801, Box 48

FPO AE 09498-4048

Tel. (011-44-171) 408-8063

Fax (011-44-171) 409-2019