Opportunities NB Webinar Series - Iberian Market Overview - Agri-food/Seafood

Opportunities NB Webinar Series

Iberian Market Overview - Agrifood/Seafood

June 14, 2016

Hosting: Suzanne Turmel

Director Export Development

Opportunities NB

Client-focused, proactive, professional and accountable, Opportunities NB is the first point of contact for local and foreign businesses looking to grow, expand or locate. We are focused on performance, high growth opportunities and growing New Brunswick. Opportunities NB is poised to:

• Support business development inside New Brunswick, including business support services for small, medium-sized and large businesses;

• Proactively pursue high growth opportunities through exports and foreign investment; and

• Work with industry partners, economic development stakeholders and public sector partners to identify, build and support a portfolio of significant high growth opportunities both within and outside the province!

We will offer you the ideal operational expansion and labour solution tailored to your needs to grow in

New Brunswick. We will go above and beyond to ensure your success in the province.

New Brunswick is built for business. We look forward to working with you to grow your business.

Our guests today

Maximo Hurtado (Spain)

Fatima Carvalho

(Portugal)

AGENDA • What is IBERIA? (Hint: It’s not an airline)

• Spanish Market Overview

• What do Spaniards like to eat and drink?

• Consumer Trends

• Spain and Canada

• Exporting to Spain: Opportunities and challenges

• How? (Our TCS pitch!)

• Portugal – A Snapshot

WHAT IS IBERIA?

• Third largest European peninsula.

• Divided among: Spain, Portugal, Andorra, and Gibraltar

• Languages: Basque, Catalan, Valencian, Portuguese, Galician and Spanish.

• Spain and Portugal are closely linked through economic (and geographic!) relations.

SPANISH MARKET OVERVIEW

• 4th largest market in the Eurozone

• 5th largest in the EU, the world’s most integrated market

• 17 Autonomous Communities and Regions (like our Provinces)

SPANISH MARKET OVERVIEW World’s 11th largest importer of agri-food and seafood

Spain’s Top Suppliers of Agri-Food and Seafood Products, C$ Millions

Country 2013 2014 CAGR% 2010-2014

World 40,144.58 42,920.97 4.83

1. France 6,448.86 6,851.69 5.69

2. Germany 3,332.67 3,574.61 3.01

3. Netherlands 2,702.34 3,011.96 1.54

4. Portugal 2,484.52 2,634.37 5.32

5. USA 1,922.81 2,246.56 11.74

23. Canada 227.24 346.77 18.23

SPANISH MARKET OVERVIEW

• Key import commodities include fish and crustaceans (14.9% of total imports), cereals (7.8%), and oilseeds (7.2%).

• The top three supplying countries of overall agri-food and seafood imports are…

France, Germany, and the Netherlands.

SPANISH MARKET OVERVIEW

• Population of 46.7 million

• And many MANY MANY TOURISTS

68 million!!!

WHAT DO SPANIARDS EAT?

THEY SIMPLY LOVE FISH!

AND SEAFOOD! “MARISCADA”

AND THEY LIKE IT… A LOT!!!

42kg of Fish and Seafood per person per year!

Spain is the largest importer of fish and seafood in the European Union!

Canada represented just 0.3% in 2014… we can do better!

WHAT DO SPANIARDS DRINK?

WINE?

NOT REALLY… CERVEZA!!!

CONSUMER TRENDS

- Health and wellness

- Organic

- Health Food/Functional ingredients

- "All-free“

- Unique and innovative products

- Consumers are positively receptive to Canadian products (though need some education/info)

CANADA BRAND

FROM TRADITIONAL “PAELLA”…

TO INNOVATIVE RICE W/ LOBSTER!

THE COMPARISONS ARE ODIOUS… OR YUMMY?!?

BEER (including craft beer)

SPAIN & CANADA

• Strong bilateral relations…yet so much room for improvement!

SPAIN & CANADA

• Canada ranked twenty-third among supplying countries to Spain, registering a 52.6% increase in 2014 over 2013.

SPAIN & CANADA

• … but large supply gap

SPAIN & CANADA SUCCESS STORIES

ADVANTAGES

• Interest in high-quality products (gourmet food).

• High consumer interest in new products.

• Modern food processing sector and distribution system.

• Reduced fish and seafood catches. High consumption.

• Relative weakness of Canadian dollar.

CHALLENGES

• Transport costs from Canada.

• High marketing costs (advertising, discounts, need to educate consumers, etc.)

• Competition with similar food products that enter tariff- free or with lower tariffs (ex. salmon, oats).

• Expensive shelf space in supermarkets and hypermarkets.

• EU Regulations: labelling, packaging, languages, new products.

• Short time frame to respond to Spanish demand.

RECOMMENDATIONS

Do not make any assumptions…

…adapt, adapt, adapt.

Some examples: Different language(s).

Different consumer behaviour.

Different business practices.

Different tastes… lobster with butter.

CETA

On the day CETA enters into force, 98 percent of all EU tariff lines will be duty-free for Canada, providing our exporters with a clear advantage over their competitors.

EVENTS

SEAFOOD EXHIBITION GLOBAL (Brussels)

SIAL (Paris)

ANUGA (Cologne)

• TRADE SHOWS – Salón de Gourmets (Madrid)

– Alimentaria (Barcelona)

– Conxemar (Vigo)

• PROMOTIONS

• TASTING EVENTS

OPPORTUNITIES IN SPAIN

SOME EXAMPLES…

DOING BUSINESS IN SPAIN?

Contact the TCS!

Our Services:

• Prepare for International Markets

• Assess your Market Potential

• Find Qualified Contacts

• Resolve Business Problems

DOING BUSINESS IN SPAIN?

• Companies that use the TCS export 18 percent more than those that don’t, and they access 36 percent more markets. Our clients say that they save time and money and reduce risks.

• TCS services are offered free of charge to client companies and organizations.

CONSIDER IBERIA!

Examples of importers for both countries (ES & PT):

– Gourpass: Canadian Beer

– Premium Shellfish: Canadian lobster, scallops

• Europe's largest and the world's third biggest fish and seafood consumers

• Portugal is increasingly relying on imports to meet domestic demand

• Canadian fish and seafood exports to Portugal have increased rapidly over the past several years

PORTUGAL – A SNAPSHOT FISH AND SEAFOOD

PORTUGAL – POPULAR FISH & SEAFOOD PRODUCTS

• Live lobster

• Fresh and frozen hake and Monkfish

• Fresh American plaice

• Atlantic Cod (Gadus Morhua)

• Frozen Redfish (V cut), Mackerel

• Scallops

KEEP IN MIND

Exporting Fish and Seafood to Portugal

• Canada and Portugal are connected by direct regular air routes with Air Transat and SATA Airlines

• One stopover without major difficulties

• Canadian exporters are encouraged to develop market entry strategies

THE PORTUGUESE MARKET

• 10.6 million consumers

• Demand for high quality convenience food products healthy, chilled processed food and ready-made meals

• Tourism destination

• CETA also offers notable opportunities for Canadians

THE PORTUGUESE MARKET

• Home to one of the most advanced highway networks in Europe

• Strengthened transportation infrastructures to rural and less-developed regions

• Logistics infrastructure is efficient and well- positioned

LISBON, MADRID and BARCELONA TCS work together:

• SEG, Brussels

• Conxemar, Vigo

HOW WE CAN HELP

EXAMPLES OF SUCCESSFUL PRODUCTS

QUESTIONS?

Connect with the TCS

Restez branchés avec le

SDC tradecommissioner.gc.ca

deleguescommerciaux.gc.ca

Maximo.Hurtado@international.gc.ca

Fatima.Carvalho@international.gc.ca

Michael.Wylie@international.gc.ca

Opportunities NB Webinar Series

Thank you for attending

Tel: 1.506.453.5471 Toll free: 1.855.746.4662

Email: info@onbcanada.ca