Export experience of Lithuanian food and beverages companies

Lithuanian food exporters association (LitMEA)

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Giedrius Bagušinskas,

Executive director of LitMEA association

The coordinator of SMART food cluster (Lithuania)

Export promotion

Lithuanian food exporters association (LitMEA)

www.litmea.lt

Innovations for food sector

Smart food cluster

www.smartfoodcluster.com

Clusterization

Lithuanian cluster network (www.klaster.lt)

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Content

•Who we are

•What we do and our recommendations for export promotion

•Conclusion

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Lithuanian food exporters association(LitMEA)

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Established in: 2011

Number of members: 20

Overall turnover of companies in 2018: ~ 700 mln. €

Export: ~ 320 mln. €

Export destinations: more than 50 countries

Participation in the exhibition

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B2B matchmaking events

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SMART food cluster

Registered in: 2013

Inception: 2015

Number of members: 28

International partners: Food Products Quality cluster (Latvia),UNIMOS alliance (Poland),On Granada (Spain);Foodservice cluster (Spain);Packaging cluster (Spain);Upper Austrian Food cluster (Austria),Paper Province (Sweden),Merinova (Finland).

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International projects (1)

• Establishing of Eastern European food clusternetwork (www.eefood.net)

• COSME: European Strategic Cluster Partnership forsmart specialization investments. Project title: ESCPS3 for speeding up industrial modernization ofAgrofood packaging sectors towards Industry 4.0and digital transformation by Cluster-Facilitated X-Industry Hackathons — DIGICLUSTERS

• BSR Innovation express. Project title: Packaginginnovation for the food industry

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International projects (2)

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• Erasmus+ KA2 Cooperation and Innovation forGood Practices (KA202: Strategic Partnerships forvocational education and training). Projecttitle: BSR Cluster Manager Education programme.

• COSME: European Cluster ExcellenceProgramme. Project title: SAFE SMART FOOD. Theproject aims to strengthen cluster managementexcellence and facilitate exchanges and strategicpartnering between clusters and specialised eco-systems across Europe-SAFE SMART FOOD

LitMEA members (1)

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LitMEA members (2)

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Lithuanian food and beverages sector

Number of companies in sector: 979 (2017)

Part of SME‘s: 98,8 % (2017)

Number of employees: 42076 (2017)

Total export: 2 142 mln euro (number 3 comparing with all sectors). It is 42 % of total volume.

Part of GDP: 4,3 percent (2017)

Export destinations: more than 130 countries

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Lithuanian food sector advantages

• We are not big but fast and flexible;

• Big choice of interesting niche products which can be produced in small quantities.

• High quality standards: BRC, IFS, Kosher and other.

• Good logistic to Nordic and European countries

• Modern packaging and design.

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Potencial for Lithuanian food SMEs

High added value productsas eco, gluten free;

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Personalized products

Lithuanian food sector challenges

• Small quantities and wide range is good for client, but problem for productivity;

• If company starts to make small assortiment it can lose competitive advantage;

• Salaries are rising and level of costs make big pressure.

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How to represent a company to partners abroad

• Visit main exhibitions abroad

• Participate in main exhibitions with your own stand or with a national stand.

• Trade missions abroad

• Incoming trade missions

• Participation in innovation shows and conferences

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What is the World trade show? Anuga (food and beverages sector)

• Anuga (Germany)

- 7300 stands from 100 countries;

- 150000 visitors from 180 countries

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Why is it beneficial to visit exhibitions?

• Meeting your partners;

• Seeing your competitors and understanding what whey do;

• Understanding new trends in your sector and thinking what you are ready to propose for export markets;

• Understanding the nature of exhibition and planning your participation next year

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What are the benefits of participation with a stand?

• Meeting your partners. The exhibition is the cheapest place to meet your partners from all over the world;

• Meeting potential partners who are looking for new products;

• Showing your innovations;

• If you are not a participant in the main exhibition of the year, you are not in the export market

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Find your nicheBiggest food exhibitions:

• Retail: Anuga (Germany),Sial Paris, SialChina,Gulfood (UAE) .

• Eco products: Biofach (Germany)

• HoReCa sector: Internorga (Germany)

• Private Label: PLMA (Netherlands)

• Food ingredients: HI Europe (Germany)

• Gluten free, vegan products: Free From Europe (Netherlands)

• Duty free and travel retail: TFWA (France)

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What are the benefits of trade missions

• Research of the market;

• Database of potential partners;

• Direct contacts with people who are interesting for you;

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Who is our client now

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Where we want to be

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Challenges of transition

• Decrease in emigration;

• Imigrants consume more local food;

• The number of ethnic Eastern European food stores is decreasing because of decreasing number of consumers

• The main player in food market – Poland. Eastern European food is considered to be Polish food.

• Main retailers create Eastern European food sections where Polish products dominate.

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Changes of market

• Private Label (PL) manufacturing grows. 30-40 percent of assortment is PL. Other major part of assortment is world famous brands (e.g. Nestle)

• Discounters (e.g. Lidl, Aldi) are getting stronger

• E-retailers (e.g. Amazon) grow

• ‘‘ Food nationalism‘‘ is getting stronger,consumer loyality for national food products and producers is growing.

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Conclusion for export

• Be active in the export market;

• Don’t expect a fast result;

• Learn and improve every year and show your progress

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Innovations are future of SME‘s

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Conclusion for innovations and internationalization

• Ability to create and offer innovative products can make the company exceptional in the market

• When creating products for international market, try to collaborate with foreign experts-technologists

• Try to attract new minds (e.g. lithuanian/foreign students studying in Lithuania/abroad, lithuanian and foreign scientists, experts from abroad) ;

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Thank you for your attention!www.litmea.lt

www.smartfoodcluster.com