Supplier shares tips on delivering food abroad
GFSI’s Nicole Young-Chu
Global Foodsolutions, Inc. (GFSI) is engaged in the manufacturing and processing of various food products for distribution in over 35 countries.
The company produces nata de coco, tropical fruit preserves, frozen fruits and vegetables, smoked and dried fish as well as sauteed shrimp paste and salted shrimp fry. It also distributes frozen desserts under the Dani’s brand both here and abroad.
It is also known as a food service supplier for customized products, including those being distributed in US military bases.
GFSI marketing and sales head Nicole Young-Chu, a recipient of the Agora Awards for export marketing in 2016, shares her insights on how to penetrate and succeed in the international market.
Q1: GFSI products are currently distributed to over 35 countries. How long does it take to make a deal with an export client and what do you do to penetrate these export markets?
A: Developing export accounts is complex not only [because of the] differences in geographic location and time, but one must also study the working style, culture, taste preferences and most especially regulations of export customers.
[Our] first export account took us about two years to penetrate [before they made] their first order. In our initial operation, the challenge was how we can differentiate ourselves as new players of the industry compared to companies who have been there for decades.
A strategic move is [getting] food safety and quality certifications. At a time when these certifications were not [yet] given much importance in the country, we were already forward looking in terms of global regulatory requirements. Thus, we have already incorporated a food safety system into our daily operations [to satisfy our clients] and it also gives us competitive advantage in the market place.
Aside from the above, we participated in international exhibits and also made personalized business trips to [visit] prospective clients. The customers felt our business purpose and we were able to develop these customers faster.
Q2: What are the differences in your selling strategies when you distribute in the retail and food service/institutional markets vis-a-vis US military bases all over the world?
A: GFSI has a multipronged marketing approach in market penetration and business expansion. For the retail market, we currently have various distributors locally and globally. We [maintain] constant communication [with them] in terms of [getting] information for new food trends, competitor analysis and benchmarking.
We carefully study the lifestyle, buying behavior as well as culture of these countries. We support the launch of these products through promos and incentives [for] our distributors/importers… We also maximize technology and social media in promoting our products.
On the other hand, we have a business-to-business approach for our institutional markets. [We] develop a product where various departments (e.g. marketing, research and development, purchasing and quality assurance) are involved. In the development process of a food service product, our proactive and innovative R&D team is very much involved.
For the US military bases, the key is the food safety certifications. [Our representatives] also conduct quarterly visits in order to ensure that our processes are in place.
We continuously upgrade and improve [our] world-class production facility.
Q3: What criteria do you use in appointing distributors in other countries?
A: It is a very careful study since we value long term partnerships with our distributors. First and foremost, we assess the current target population in that country since this information serves as our primary market opportunity. We then scan the market players and study the active distributors. We analyze their organizational setup, work culture and business ethics.
There must be synergy between [and among] prospective distributors. The distributor should not carry our competitors’ products [to be able] to focus and aggressively promote our products. The vast experience, market reach and customer universe are also vital criteria in appointing distributors.
Q4: Food safety is a top concern of health authorities. What do you do to assure your clients?
A: We have regular internal audits in order to validate if the quality assurance systems and processes are followed. Hazard Analysis and Critical Control Point (HACCP) studies are being done to assess and control food safety risks. —CONTRIBUTED
