An Appetite for Convenience

Planning and research will also help you identify financing options, market entry strategies, distribution channels, currency, tax and regulatory issues, and cultural considerations. Find solutions to potential problems. For example, arrange for letters of credit to ensure that you’ll get paid, and be prepared to familiarize yourself with differences in language, culture and business practices in the target market. Tap into the expertise of export consultants or take advantage of government resources such as those available through EDC, Agriculture and Agri-Food Canada, and the Canadian Trade Commissioner Service, which can advise on qualified importers, distributors and retailers. “At some point in the research, you have to visit the target country and get information first-hand,” adds Hart. “Go to international food shows. Learn who your competitors are. Talk to your end customers and find out what products they need and what you must do to become a supplier.”

While there’s still room for high-quality commodity products in Eastern Europe, processed, prepared and niche items also offer promise. In fact, consumers in the region’s stronger economies, such as Poland, the Czech Republic and Croatia, show substantial interest in these types of products.

Changing Consumption
Europe’s eighth largest market, Poland’s 38 million consumers, spend an average of 30 per cent of their household budget on food and non-alcoholic beverages and are eager to sample new products. According to a sector profile from Agriculture and Agri-Food Canada, Polish consumers are eating out more often and buying products that reflect the growing number of single households, time pressure, health focus and concern with quality. As a result, there are opportunities for Canadian companies with products such as processed foods, specialty and novelty foods, pre-cooked and ready-to-eat items, snacks, fish and seafood, and organic and functional foods.

Exporters considering the Polish market need to find strategies for dealing with strong competition from other EU countries and low awareness of Canadian products. Poland’s retail distribution network is well-developed but fragmented, with no one retailer having more than three per cent of the market, and the top 10 accounting for only 20 per cent. Foreign supermarket chains dominate but networks of Polish supermarkets and delis are increasing. As a result, consumers use all distribution channels with a preference for small-format and specialty stores.