a sweet journey - ise project...uk buyers that fudge could sit alongside premium chocolate • 6...
TRANSCRIPT
A Sweet Journey
Our Heritage – Who We Were Born 30+ years ago Retail theatre concept Hand producing in front of
customers at each shop USPs of product quality, freshness
& amazing staff Began to develop new ranges for
wholesale market 6 years ago Even 3 years ago had not
considered that exporting could form a key part of our growth strategy
A Strategic Decision to Grow
Demand from other Retailers Trends in the speciality food market Gap in the UK market for a gourmet fudge
We decided to create a new arm to the business with a clear objective:
Aim: to establish Fudge Kitchen as the primary gourmet fudge brand within the Speciality Food and Gift Food Markets
• Although established on the High Street it took time to convince
UK buyers that fudge could sit alongside premium chocolate
• 6 years later, we have carved a unique niche in the UK premium
confectionery market; known for our innovative approach and
high product quality (11 GTA Awards)
• Have listings with over 250 UK stockists across many markets –
from independent retailers, food service (e.g. Claridges,
Radisson, Hilton & Wembley stadium), garden centres and
foodhalls, dept stores (Fenwicks, Adnams), Selfridges, Harrods,
corporate events & gifts & more
• In the last five years, our year on year growth has increased by
an average of 40% & capacity 10 fold
First Step : Conquering the UK
In the last 6 years we have created over 70 new lines split across 6 Complimentary Groups:
Gourmet Butter Fudge
Home Kits
Liquid Fudge Sauces
Drinking Fudge
Whipping Cream Fudge
Who Are We Now?
Caramels & Brittles
We sought help wherever we could:
Knowledge Transfer Partnership: product shelf-life extension
MAS: grants, mentoring, courses
Design Leadership Programme: branding
Local IoD/Food Groups: market & business info
Growth Accelerator: mentoring and training finance
UKTI: export advice & training
2Seas: introductions to export through visits
Enterprise Europe Network: export advice & assistance
Pressing the HELP Buttons
• Considered the possibility of export early on
• Had assistance through the EEN to a market visit to SIAL Paris
and then the 2 Seas program to Tavola some 4 years ago
• From these early visits we began to understand:
– The growth in speciality food and desire for hand made, premium
products extends outside of the UK
– British confectionery is well thought of in some regions
– Not all nations mirror the UK’s love for sugar – some have sugar taxes
– Outside of the other English-speaking countries ‘fudge’ essentially
doesn’t exist
– Flavour preferences vary enormously
First Steps into the Wider World
Accessing New Markets
• There are many routes to potential new markets – where to start?
• Membership of Trade Associations, Organisations & Agencies
– A great place to start gathering info
– EG: 2 Seas (or the new equivalent!)/ EEN/ FDEA/DIT (UKTI) with Passport to Export
– Published Data and Advice
• Organised Trade visits to trade shows or Meet the Buyer Events
– The next step
– Enables direct and relevant market info gathering
– First hand experience with overseas buyers
– Product sampling for direct feedback
– networking with other exporters is invaluable
Our Routes to New Markets
• After initial researches we decided that exhibiting at specialised Trade Shows would be our principle route to market
• We have generally secured some grant support through UKTI (DIT)
• We now undertake 2 principle overseas shows each year in addition to supporting distributors at 2 other events
• It takes time to be accepted by foreign buyers – this is not a quick fix, but with tenacious follow up it is now proving to be fruitful in our 3rd year
What Have We Learned?
• You have to be prepared to adapt your offering - be Flexible. 1 size does not fit all
• For us this has meant learning that: – Portion sizes – the Dutch & Germans prefer 100g
pieces, the French & Belgians much smaller
– The Spanish & Italians don’t like fudge but love brittles and caramels and things covered in chocolate
– The Far East love our packaging, but our products are too sweet for them!
– Flavours – Scandinavia loves liquorice, the Middle East prefer cardamom, rose & cumin
Doing the Deal – Our Experience
• Export is no different to any other business – if it doesn’t feel right, don’t do it. Build relationships.
• Start easy – direct supply to customer - in sterling – you can play with currency when you have confidence
• Learn the acronyms but in truth understand what each deal involves, mostly when title transfers from you to the customer
• Get appropriate insurance
• If in doubt operate Proforma.
• Use distributors rather than agents and don’t offer exclusive without time frames and targets
• In pricing, understand that export will require tight margins to allow for all potential over - labelling, transport and middlemen costs
• Do not under price
In Summary
• Exporting can be a great way to grow
• It now represents 10%+ of our growing business and is set to double in the coming year
• It takes time, tenacity & a flexible approach
• There is lots of help – connect and use it &
• Do some homework & create a simple strategy