EXPO VIEW
bi-monthly Newsletter
June 2013 ISSUE No8
EXPO VIEW TOP STORY From WTCE Hamburg to PLMA Amsterdam
WTCE—Hamburg Messe April 2013
In this Issue:
TOP STORY : From WTCE to PLMA
1
BUSINESS ISSUES: Olive oil the big looser of continuous speculation
2
BUSINESS ISSUES: Endeavor Entrepreneurs Global movement
3
BUSINESS ISSUES: Exports on a more personal note
4
GREEN PLANET: Clean labels
5
What is New
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PLMA Amsterdam—May 2013
The second edition of the World Travel Catering & Onboard Services Expo (WTCE) confirmed its standing as the world’s largest travel catering event covering 5,000 sq m and attracting more than 1000 high calibre visitors 352 VIPs - Airlines & Rail Operators, amazingly 87% of visitors are very likely to revisit the show. The show presented in total 200 exhibiting companies, of which more than 50 made their first appearance at the Hamburg Messe from 9-11 April 2013.
The expanding popularity of private label has led to unprecedented market share worldwide. Record high market shares have been recorded in more than a dozen countries, and private label now accounts for 40% of all products sold in six European countries. PLMA’s 2013 “World of Private Label” International Trade Show presented more than 3,800 exhibit stands including 42 national and regional pavilions. The show received more than 5,000 buyers from over 75 countries who came to Expoaid presented at the exhibition the range of discover private label suppliers and products Papadimitriou Portion products which are alright for their operations and customers. ready distributed to Saudi Air, Aegean Air, Olym- Expoaid was there presenting Papadimitriou’s pic Air, Pizza Hut, Pizza Fan, Costa Navarino Ho- range of products including their balsamic vinetels and Grecotel Hotels among others. The ex- gars, balsamic creams and Mediterranean musposure has already brought prospective clients tards . Portion pack range draw the attention of and opened a new possibilities for Papadimitri- many as it packaging has versatile applications ou products in this significant industry.
Parthenonos 1,N. Erythraia Athens146 71Greece info@expoaid.gr / Tel: +30 210 6250365 / Fax: +30 210 6209905
EXPO VIEW
Olive oil—the big looser of continuous speculations
BUSINESS ISSUES
come out to buy small amounts at prices ranging between 2.752.80 EUR, hoping to manage to keep high prices at the level of the supplier (for as long as they can). This is a second speculation of the Italian producers which is estimated to have a relatively short duration.
In our previous newsletters (issues 5 & 6) we have referred to the speculation of Spanish producers for high olive oil prices, As a result of this effort of price manipulation: due to reduced production of olive oil in Spain. Unfortunately for the global olive oil market, our forecasts were The consumer purchases more expensive olive oil The producers will sell their production at the same market confirmed. price as they had in the previous year From the processing companies, some will win and some Prices increased on the shelves of the supermarkets and this will lose depending on the accumulated stocks of olive oil. combined with the global economic crisis, resulted in decrease The big looser will be the olive oil itself, as it will not be able in consumption by 10-30% in the first quarter of 2013 in the to increase its market share in the segment of oils &fats countries where the olive oil has market shares on the market of through a smooth prices course. oils & fats. Olive oil lost consumers and gained very few, considering its true potential . In the last 15 days of May the Spanish producers after having managed to push prices high in their contracts started to lower their sale prices to 2,50/ kg and 2,40 kg.
As for the Greek olive oil market the price has been set around 2,60EUR/kg in the first week of June. The rest of the month is The Italian producers reacted, depending on their accumulated expected to have fluctuations because of the speculation of stocks. Those who found themselves with low stocks were able Italian buyers. We expect that the prices will stay until the end of August in to follow the price level set by the Spanish producers. On the contrary those who have created stocks for the summer season, the area of 2.50-2.40 EUR per kg.
Olive tasting panels… process under way The Madrid headquarters of the International Olive Council was the venue for the first ever international IOC course for leaders of table olive tasting panels. Twenty technical officers from a long list of countries [Algeria, Argentina, Croatia, European Union (Greece, Italy, Portugal, Slovenia and Spain), Iran, Jordan, Lebanon, Morocco, Montenegro, Tunisia and Turkey] took part in the course, which lasted from 4 to 8 June 2012. This training event was designed to equip future panel leaders with the technical and practical grounding they need to set up and manage a table olive tasting laboratory and to select tasters. Participants went home with an understanding of many aspects:
How the human perceptive system works and how it is applied to sensory analysis
How to organise a tasting laboratory and to set up a tasting panel
How to optimise panel organisation through taster motivation and leadership Page 2
How to prepare the samples and handle the olives
How to prepare reference samples of the taste, kinaesthetic and negative attributes
How to classify table olives according to the IOC standard
How to apply the IOC sensory analysis method as well as the prevailing rules and regulations
The IOC is already a pioneer in drawing up standards and methods for this type of testing. Now, through this course, it means to be a trailblazer in organising training courses for leaders of table olive panels. In Greece the selection and training of panel members is under way. It is crucial to set up panels which will be trained to evaluate objectively based on the IOC standards the organoleptic qualities of table olives. This combined with the microbiological and chemical characteristics will provide and objective evaluation of olive quality.
Parthenonos 1,N. Erythraia Athens146 71Greece info@expoaid.gr / Tel: +30 210 6250365 / Fax: +30 210 6209905
EXPO VIEW
BUSINESS ISSUES
Papadimitriou s.a. joins the Endeavor international network Endeavor is leading the global movement to catalyze long term economic growth by selecting, mentoring and accelerating the best high impact entrepreneurs around the world. A fifth Greek company joined the international network of Endeavor, as announced on May 13. It is the company Papadimitriou from the food industry, the selection of which was made at the International Selection Panel (ISP) that took place in Buenos Aires, Argentina from May 6-8. Papadimitriou Company, represented by the CEO Christos Papadimitriou, is a family business founded in 1939 in the Greek city of Kalamata to export currants from the Pelopponese region of Greece. In the late 1990′s, Papadimitriou transformed to become a producer of all-natural balsamic vinegars and mustards in unique Mediterranean flavors, all derived from currants. Today it sells these value-added products in major supermarkets in Greece, where it is the balsamic vinegar market leader, as well as in 28 export markets, according to Endeavor Global’s website. Endeavor selected 17 High-Impact Entrepreneurs from 11 companies from Argentina, Brazil, Chile, Co-
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lombia, Greece, Mexico, South Africa and Uruguay at its 48th International Selection Panel. Endeavor now supports 801 High-Impact Entrepreneurs from 500 companies in 15 emerging and growth market countries, as reported in Endeavor’s website. The International Selection Panel (ISP) is the culmination of a rigorous multi-step selection process. At the ISP, top local and international business leaders interview candidates about their businesses and highimpact potential, and then vote on whether or not candidates become Endeavor Entrepreneurs. Post-selection, Endeavor provides entrepreneurs with customized services, including introductions to local and international business mentors and volunteers from Fortune 500 consulting firms. Endeavor Entrepreneurs have had a significant track record of creating thousands of jobs and building sustainable growth models in their home countries. Endeavor will host three additional International Selection Panels in 2013: Johannesburg, August 2013; Palo Alto, CA, October 2013 and Dubai, UAE, December 2013.
Parthenonos 1,N. Erythraia Athens146 71Greece info@expoaid.gr / Tel: +30 210 6250365 / Fax: +30 210 6209905
EXPO VIEW
Exports on a more personal note… I have always been fascinated by export markets. As a student I focused on international marketing and export trade. I moved to international trade very early in my career, seduced by the exotic aura of other cultures, rapid growth prospects, career and travelling opportunities. Through the years, experience matured my outlook and perspective. Being an exporter is challenging, difficult, rewarding and fulfilling. In ideal conditions it would be a very pleasing and rewarding job. Reality bites…. ideal conditions do not exist. Today, in the situation of economic mayhem, exporters in Greece face one of the most challenging situations of the past 20 years. They struggle against the complete lack of national export strategy, tight cash flows and recession in many global markets. They also struggle against a new threat, a mass of ignorant and desperate professionals who have decided to export a product or a group of products without any background knowledge or a sense of potential and direction. This eagerness and amateurism is not a new characteristic of exporting in Greece. For many years even large companies viewed exports as an opportunistic sale. In many cases they exported because of pure chance a customer appeared (in many cases a Greek immigrant), or because it was a good way to close a gap in their sales plans and targets. At that time the lack of professionalism was covered by the size of the company itself. The success or failure of the whole export venue was always based on chance, and
Invitation to European Business Awards This year both Expoaid and Papadimitriou s.a. have been invited to joint the process of European Business awards for 2014. This invitation itself constitutes a recognition of the effort and the positive results the companies experienced in the past 2 years. Since 2007, the European Business Awards has been shining a light on the most innovative businesses on the conti Page 4
BUSINESS ISSUES
that chance was the export department of each company. The lack of processes and strategy was most of the times compensated by the people manning those departments. Today the mass of people attempting to export from Greece is a number so volatile and large that it cannot be estimated. Everyday people come with a new design of their own label, most of the time for olive oil packed in a fancy bottle. They are eager to sell a value added product. The problem is they do not think about the processes needed to check and substantiate the quality or the product, as well as all things needed to export, sell and establish the product in a competitive foreign market. Most of them will not even reach the export stage. Some of them will invest into packaging and admire their products while they accumulate dust on the shelves. Few will open their eyes and ears and will reach some degree of success. In the meantime these people will create expectations, messing up the market, creating a climate of distrust among potential international customers, as well as local suppliers and producers. What can be done? We have to keep striving against all adverse factors, providing professional service based on knowledge and experience. This is the way to minimize the damage done by the random opportunists, and the only way to keep our head and reputation up in the international markets. We need to avoid, making the “Greek exporter” synonym to “amateur”, “risky” and “temporary”.
nent by promoting success, innovation and ethics in the European business community. In 2011, the EBAs engaged with over 15,000 organisations in over 30 countries from a diverse range of industries including cosmetics, engineering, fashion, online businesses, manufacturing and transport . Participants represented a combined turnover of over €1 trillion Euros (8.23% of EU GDP)*, employing over 2.7 million people. Parthenonos 1,N. Erythraia Athens146 71Greece info@expoaid.gr / Tel: +30 210 6250365 / Fax: +30 210 6209905
EXPO VIEW
GREEN PLANET
Clean Labels— consumers want them but do they understand them? Food companies are cleaning up their labels as consumers say they are looking for “natural” foods and beverages – but how do food companies know they are providing what the consumer wants, and what are the regulatory boundaries? We have repeatedly referred to the danger of using natural claims as the legislation fails to specify what is considered natural. But there is another pitfall of the natural claim…despite widespread demand for all things natural, some “natural ingredients” still aren’t acceptable to consumers. Take carmine, for example. It is a natural red coloring made from crushed cochineal insects, which has been used for hundreds of years. This coloring has become popular replacing synthetic dyes. Yet consumer outrage that this natural ingredient was in their foods and drinks led to many high profile re-formulations, including from Starbucks last year. Carmine is often hid on labels as E20 or simply natural color, but had it been referred to in a clean way as carmine, how many consumers would recognize it? It is evident that there is a lot of education needed to make consumer understand clean labels, but if this is not done and the ingredients will keep coming up in deliberately obfuscating terms we will not reach a mutual point of understanding and trust. As long as the terms natural remain obscure in legislation, opportunities arise for those who will serve the demand creating a relationship of trust with their customers.
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Parthenonos 1,N. Erythraia Athens146 71Greece info@expoaid.gr / Tel: +30 210 6250365 / Fax: +30 210 6209905
EXPO VIEW
WHAT IS NEW
New flavors in the FOS olives product range There are 3 new additions to the range of FOS olives.
Green olives filled with the just right, nottoo-hot bite hot jalapeño pepper. Served to add sophistication and medium spice to appetizers and cocktails. Green olives filled with mouthwatering Feta cheese mix. Perfect in salads, on pizzas or on their own, as a meze- finger food to share with friends. Green olives filled with creamy blue cheese mix. Perfect martini garnish, but also delicious to eat right out of the jar.
In our previous issue we referred to the rebranding process of Kalamata Papadimitriou products. The range has now a fresh look combined with a modern appearance.
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Parthenonos 1,N. Erythraia Athens146 71Greece info@expoaid.gr / Tel: +30 210 6250365 / Fax: +30 210 6209905