OUR WEBLOG: EXCERPTS OF EXPORTS
Tuesday, February 26, 2008
A Brief on Cheese and What It’s Labeled
I just read an interesting article in the Wall Street Journal about a dispute between Italy and Germany. The subject is cheese, specifically Parmesan, and the fact that Germany has been labeling their cheese Parmesan.
Italy took exception and took their case to the European Court of Justice back in 2003. The ruling, just today, while in favor of Italy was not a quick remedy. It has been several years and several million dollars later.
The European Court of Justice made the ruling that cheese from Parma, Italy is the only one that can be labeled Parmesan. Germany in labeling its cheese Parmesan, violated EU food origin rules. Germany countered that Parmesan is a “generic term for a type of hard, crumbly cheese that is often grated over food and cannot claim an Italian uniqueness”.
The court disagreed, saying Parmesan was “clearly a translation of “Parmigiano Reggiano.’” Although Germany will not be fined, it does have to change the name of its cheese. And Italy must monitor the situation and report any infractions to the “German Authorities”.
I am not taking sides here as I love all the countries of Europe each with its individual charms. But I have to say that one of the highlights of my trips to Germany has always been their delicious cheeses. They have some of the best that I have ever tasted making cheese the staple of my diet while there. The next time I travel to Germany, I think that I will go on a diet beforehand allowing me to indulge and be back to my normal weight when I return. That’s the plan, at least.
Sunday, February 10, 2008
Ask the Experts
Valuable Information from the Global Gazette
Q. My company manufactures food rubs and barbecue sauces. The products have done very well in California and the Southwest and we are getting orders from other parts of the U.S. We are also getting some international orders from our Website which has us thinking about exporting. Our company is relatively new, only five years old, and we don’t know if we are ready to export.
A. The good thing, and probably the bad also, is that successful exporting takes careful planning, time and patience. It will take a minimum of one year before you make any headway.
If you know your products and your domestic customer well, have processes that are relatively fail-safe and excess manufacturing capacity, you should start investigating the viability of your products abroad.
A good place to start is Canada. The market is not huge but Canadians are open to U.S. products. And Canada can be your test market in exporting. Any mistakes that you make will be more easily remedied when you target a country like Canada. Toronto is also one of the most multi-cultural cities in the world with sophisticated tastes.
Finally there are no tariffs and no non-tariff duties because of the North American Free Trade Agreement (NAFTA).
Where to go and what to do:
1. If you want step by step assistance, I suggest that you work with a consultant, such as our Experts in Exports.
If you want a peek good overview of the Canadian market, we will be offering a food audit of the Canadian market in March. It will cover labeling requirements, demographics, shelf space and competition among
other topics.
2. Contact the FDA in your region.
I have worked with the FDA and incorporated their services into total export marketing packages for my clients.
3. Other public sector service providers are the economic development departments in your city and state.
4. Food trade shows in the U.S. are very international in attendance. You can get good leads and help determine product acceptability in various parts of the world. Make sure that you follow-up right after the show. Memories are short even when your product is terrific. Also keep following up even if you don’t get a response. Other cultures don’t always work that way. We specialize in developing effective surveys that visitors to your booth will respond to.
One final word of caution. If you decide to export, don’t target more than two markets at one time. It will be all that you can handle… well.
For timely information about everything international, sign up for our newsletters, the Global Gazette
Tuesday, January 29, 2008
Les egouts de Paris
You recognize the Eiffel Tower in Paris. (I included this picture to get your attention.) But what do you know about what lies beneath the Eiffel Tower?
When I developed my website to promote export and export services and training, I promised that it would not only be informative, but fun. I include information and resources that appeal to the young and young at heart so that you can combine your business trips abroad with a family vacation. Over the next weeks, I will be adding resources on activities and interesting sites for the children as well as the parents.
Now I don’t know if a sewer tour in Paris will strike anyone in the family as fun. I can say it is different since I myself took this tour with students a few decades ago. That was long before the Internet so finding unusual things to do required scanning the fine print in tourist books.
The sewer tours are covered in the book, Take Your Kids to Europe, 5th: How to Travel Safely (and Sanely) in Europe with Your Children by Cynthia W. Harriman. While I haven’t read this particular book, it does get many good reviews and with used copies at less than a dollar, what can you lose!
The sewers of Paris were planned during the reign of Napoleon I and constructed primarily during the reign of Napoleon III, the nephew of Napoleon I. Construction took 50 years. There was an expression they were taking sewage from all in the street to all in the sewer. Sewage from the bath, from the chamber pot and from the kitchen was typically dumped out the window and into the gutters in the street. It became fashionable and also functional when women’s dresses were shortened to eliminate contact with the vile stuff.
I don’t remember a lot about the sewer tour but I do remember that it did not have the same romance or sense of adventure as Jean Valjean’s exploits in Les Miserables. Nor did I get a sentimental feeling about my excursion in the sewers of Paris when I saw the Phantom of the Opera. But it was sort of fun and very different. I hardly find anyone who has taken le tour or le voyage if they went by boat when it was available.
While in Paris, you might want to stay in accomodations that also offer a different experience. I try never to stay in a hotel but rather a pension or a small hotel. One example is Hotel Saint-Merry in Paris, a small botique hotel in the Marais qarter of Paris. It looks like a great place and the reviews are excellent.
While I have not as yet had the opportunity to stay at one of the unusual hotels, I plan to on my next trip abroad. Staying in an unusual hotel is often not any more expensive than a regular hotel. But guaranteed it is much more memorable. .
Tuesday, January 22, 2008
Sugar, Freer Trade and NAFTA
The source of sugar, considered a commodity, can be traced back thousands of years to India and China. Key promoters of the sweet stuff are Alexander the Great and Marco Polo, the great trader and explorer from Venice. Nearly three centuries later, tropical America became a manufacturer of sugar cane.
During the Napoleonic Wars, England blockaded sugar imports from the Caribbean to Continental Europe. Napoleon, a creative problem solver, found another source of sugar; the sugar beet. Sugar cane was no longer the sole source of the commodity. Nor could it be used to force surrender in time of war. And long before the turn of the century, sugar cane and sugar beet were competitors in Continental Europe.
The modern sugar industry of today enjoys the intervention of governments throughout the world. (I guess we gotta have that sugar with a worldwide consumption of 120 million tons per year and a growth rate of 2 million tons per annum.) That the sugar trade is among the last planks of the fifteen year old NAFTA bears that out. And a NAFTA market of 425 million consumers is reason enough.
Sugar,a protected commodity in the U.S for decades, benefitted from guaranteed pricing, import quotas and allotments to growers. This has resulted in the greatly inflated price of sugar in the U.S. But, according to NAFTA, all is about to change. But will it? Since Mexico can now sell virtually unrestricted in the U.S., there are two farm bills introduced in the U.S. Senate and House.
The bills would have the U.S. Department of Agriculture buy sugar imports from Mexico and sell them to ethanol producers at a much lower rate than what they paid. Sugar producers from Mexico have the opportunity; U.S. taxpayers will make up the difference.
Domestic sugar producers want sugar exports from Mexico “restrained.” In effect, they want to “keep it the same” regarding exports on both sides and to disallow any new producers. Since sugar is a warm weather commodity, Canada would not be included and it would be a sidebar binational agreement.
I will let you decide what you think of all this. This is not a political blog. However I want to show how important it is to be aware of different treaties and their effects on your industry both domestically and globally.
I worked with a specialty cheese producer in Michigan who increased her business by 25% because I told her about a trade dispute. In the 1990s, there was an import restriction of cheese to the U.S. This restriction was in response to another restriction; U.S. beef into Europe. My client viewed the RFQs she was receiving on a daily basis as coming from “shoppers”. Once I told her this bit of timely information, they were “shoppers” no more but rather customers. And she increased her sales and her workforce. Good for her company and good for the economy.
This is an example where exporting was not the way to increase sales. And I suppose there will come a day when there is truly free trade; where it will be best price, best product. But until there is real free trade, knowing where there is opportunity is what to do. Subscribe to my blog and return to my website to get informed and up-to-date and learn about opportunities for your company.
Friday, January 11, 2008
Wanna go global? Read this first!
Before you commit your time and resources to exporting, you might want to weigh the pros and cons of entering global markets. Companies that should seriously consider exporting are those that have good consistent sales, evidence that their products have potential outside the domestic marketplace...and patience. You might also be experiencing increased interest and sales from your website or trade show participation. If so, this is why you should consider exporting:
1. U.S. products have a good reputation worldwide. While not always the cheapest, the quality is consistent and the products innovative.
2. The U.S. dollar is low and probably won’t change substantially before you make good inroads and build some relationships abroad. You may be able to compete very successfully even with added transportation costs, tariffs and ways of distributing your products in global markets. You won’t know unless you investigate.
3. You are probably competing internationally even though your sales may be primarily domestic. Who are your competitors? Are they businesses from around the block or around the world? With freer trade, your competition is oftentimes not someone you know.
However, entering global markets isn’t always a good business decision.I have worked with many companies that believe that exporting is a way to prop-up lagging domestic sales. I usually convince them that exporting is not a good stop gap measure to employ while waiting for traditional sales to rise. Companies that don’t take my advice typically spend months in pursuit of export markets with limited results. By the time they start to make some headway, usually in 12 to 18 months, domestic sales pick-up. Then they re-focus their efforts once again on their domestic customers. Any interest and good will that they have built is an opportunity wasted as they probably won’t get a second chance. So when shouldn’t you look to export markets to build sales?
1. If your sales have dropped, exporting is not quick and it’s not easy. You will have to learn a different culture, a different history, perhaps a different language and certainily a different way of doing business. You are better off spending your time and resources to regain and retain domestic market share.
2. In order to regain your domestic marketshare, investigate the weak spots in your products or processes and fix them. Good processes and good products are critical not only domestically but also if you would like to consider exporting in the future.
3. If you try to export at the same time you try to regain market share, you will undoubtedly spread yourself too thin and not be successful in either arena.
So what to do? The mantra in real estate is location, location, location. For export, it is prepare, prepare, prepare.
Entering global markets is like starting over again...and that is often difficult. You have to carefully prepare an export plan as you did your business plan. And your export plan will have to address more variables than your business plan.There are different ways of doing business in different countries and usually within different regions of those countries. There are different ways of communicating, different ways of forming relationships and different business hours. There are marketing materials to be translated and websites altered to address global audiences. There are many resources out there, the free, the nearly free and the costly. Learning who does what is sometimes a challenge. But now you have a great advantage. Your products are tested, accepted and valued. And exporting is also fun, challenging and has the potential of added marketshare.
Wednesday, December 26, 2007
How long does it take to get a passport? If this is your first passport, this is what to do.
T’is the season for looking back at what you accomplished this year and what you want to achieve in ‘08. If out of country travel, either for business or pleasure, is what you are planning, you will need a passport.*
If this is your first passport,
1. Download the passport application form from http://travel.state.gov.passport. You will also find processing agencies in your area and be able to check on the status of your application once you have applied.
2. Complete the form but do not sign it. You will need to sign it in front of the passport agent.
3. Bring proof of U.S. citizenship which can be a:
- Certified birth certificate or
- Certificate of citizenship or
- Naturalization certificate
4. Proof of Identity which can be a:
- Valid photo ID or
- Driver’s License
Take the above to a passport agency; most provide passport photo service for an additional fee. If the passport agency does not provide this service, you will need to get your passport photos ahead of time. What you need to know before having your picture taken:
1. No hats (so no hiding a bad hair day).
2. No sunglasses
3. No teeth or in official parlance “closed-mouth smiling” only. Nothing to do with happy or only slightly happy but rather teeth can impede face recognition technology.
4. No photos from a vending machine.
To answer the question…how long does it take to get a passport? You will receive your passport and all your documentation four to six weeks after receipt of information. Allow for extra time if you apply the first half of the year.
* Having lived in two border states and not having needed a passport to enter Canada or Mexico or return, times have changed. While you can still enter some countries without a passport, you cannot return to the U.S. without one. This requirement will soon cover air, ship, rail and auto travel sometime in 2008 so you might as well apply for a passport now.
Update on Passports/papers to travel to Mexico and Canada.
Starting 1 February 2008, U.S. residents who frequently travel to Canada, Mexico, the Caribbean or Bermuda can apply for an alternative to the passport which is a passport card. The Passport Card is cheaper and smaller and can fit in your wallet. The cost is $45. for adults, $35 for children and lasts 10 years for adults and 5 years for children. This is only for travel by land or by sea.
When traveling by air, you need a passport. (See above). These cards will be issued by the Spring. If you don’t have a passport, and are traveling by land or sea, you must have government issued ID, like a driver’s license and proof of citizenship like a birth certificate.
Tuesday, September 11, 2007
Global Advertising
I love advertisements from around the world. I think they give you a good idea into the culture and thinking of peoples. So when I read about amazing advertisements in the Wall Street Journal, I had to have a look.
The advertisements are all incredibly creative. There are for profit and not profit ads; from MacDonalds, DHL and Mr. Clean to the Salvation Army, non-smoking campaigns and blood donations. All are quite effective.
I like the McDonalds ad; you don’t have to think about this one, the DHL because you do have to think about it and the visual action of the Cingular ad. Each of the non-profit ads is unique and memorable. Take a look.I think my favorite ads are the one for the Mini and the one for the Super Glue.
The Mini ad demonstrates the maneuverability of the car with a picture of a very small roundabout, a slalom course on the roadway and a curb hugging visual. While just arrows on the road it makes the point. Also I can’t see these pictures or think of a Mini without thinking of Basil Fawlty of Fawlty Towers. And who doesn’t love good old Basil Fawlty.
My other favorite ad is the one for the Super Glue. If you have ever have your car shooed, you know that there is no budging your vehicle. The same message in the Super Glue ad; it will stick if you use Super Glue. This visual will probably make you think twice before parking illegally.You can relate to these two ads.
The last great ad is the one for Miele vacuum. I’m from Albuquerque, NM where they have the largest hot air balloon festival every year in October. Having balloons flying over my house and having gone to many fests, this really caught my attention. I get the message.
About ten years ago, there was a great ad in the Sunday London Telegraph magazine section. The ad was for Audi (I think). It showed a picture of a highway with the two white stripes, exhaust from a car in the background and the Energizer bunny in the foreground in pieces having been run over. I loved the ad as I was sick of the bunny after 10+ years of his going and going and going. (I guess living in the Wild West has left me devoid of any sensitivity). But the British public was offended and due to the controversy it caused, the ad was pulled. And doesn’t that tell you about a culture.
But check out the website where you can find these ads. The address is below. Also check out another website. This site is brand new and not completely developed but it promises to be a great site. It is a travel website and it fits right in with my upcoming blog...Oh, the places you will go...when you export. Enjoy!
http://www.getitinwriting.biz/blog/2007/04/amazing-advertisements_678.html
http://letsgotraveltheworld.com/
Tuesday, September 04, 2007
Fingers Crossed - Part II
Well, I did say fingers crossed. Further I said if all goes well technology-wise, I would provide a video of my trip to Toronto. But you have to have the technology to be able to use it. I left my Treo in the lobby of the hotel and it immediately disappeared. (Thank goodness for insurance although the replacement I received yesterday did not work. I am waiting for my replacement’s replacement and am feeling very disconnected). But while the managers of the stores we toured welcomed us, taking any sort of pictures or videos was verboten. So I guess my losing my Treo from the standpoint of taking a video was a moot point.
Anyway the trip was great. We had tours of all levels of markets and met with their representatives. There is nothing like on-site visits to determine shelf space, placement and positioning. Pricing, labeling and portion sizes are also better understood “in person”. Toronto is a very cosmopolitan city with large ethnic communities. Canadians have sophisticated tastes and are looking for different products. Now is a great time to promote specialty food items to Canada. Hypermarkets are moving into Canada and supermarkets want to maintain their market share. Thus they are looking for new products to keep existing customers and entice new ones.
This is a delicious job and great fun. Not only did I travel to one of the best cities in the world, I sampled and pigged out on mouth watering food and wine. Aah, can it get any better than this.
Tuesday, September 04, 2007
A new canal in Panama … but a new trade agreement?
A few interesting events in Panama. First ground was broken for the expansion of the Panama Canal yesterday. The expansion, to be completed by the 100th anniversary of the Canal in 2014, will allow larger ships to pass through the locks.
These ships have more than twice the container capacity of ships that currently pass through the Canal. The shorter route will result in lower shipping costs thus lowering the cost of consumer goods for East Coast residents of the US.
The second event was the appointment of Pedro Miguel Gonzalez Pinzon as leader of the Panamanian legislature. While acquitted in Panama of murdering a US serviceman in 1992, Gonzalez still faces charges in the US.
A trade agreement between the US and Panama has been moving forward with the promise of a deal between the two countries.
Gonzalez’ election does not further that effort. Gonzalez has said that a trade agreement between the US and Panama is “a powerful tool for our (Panamanian) development.”
As such, he implied that he would step down from his position as leader rather than threaten negotiations of a trade agreement with the US.
So, I guess we will see what happens. Will trade talks go forward, what if Gonzalez steps down, what if he doesn’t. And in the end will Congress ratify a trade agreement with Panama. Time and events will tell.
Sunday, August 19, 2007
Fingers Crossed
If all goes well from a technology standpoint, you will be able to follow my adventures into the world of Taste Test Marketing with some of Toronto’s leading gourmet food reps. Watch and learn as I dazzle the epicurian senses of these Canadian purveyors of great taste, while at the same time, creating a positive first step toward successful export sales.
In the spirit of good exporting, I’ll also make time to acquaint myself with the local folk, food and fun.
So this is what I plan to capture. I am almost as excited about the video of this event as I am about promoting U.S. specialty food products to the Canadian marketplace. I am prepped and I am stoked (I think this is still the vernacular of the day). So wish me good luck and bonne chance and you’ll see me “at the movies.”
Thursday, August 09, 2007
Toronto Taste Testing Countdown
Later in August, In-Compasse International will be in Toronto meeting with national food distributors representing clients who produce specialty food items.
The products, primarily from New Mexico, include chiles and salsas that contain chiles. New Mexico is one of the largest chile producing areas of the world; the climate perfect for chile growing.
New Mexico is also home to the Chile Pepper Institute whose mission is to “educate the world about chiles.” They must be doing a good job.
There has been a recent interest in spicy foods in Canada. Canadian distributors are looking for unique products for differing tastes; Toronto being one of the most diverse cities in the world. Toronto is home to to nearly all the world’s culture groups and is the largest city in Canada.
It has been a while since I have been to Toronto. Since moving to New Mexico, Toronto is not easily accessible. Not like when I lived in Michigan.
I would take the train to Toronto when I lived in Michigan. It was fun taking the train and a much better option than driving the straight, flat 401. I love Toronto. It is one of my favorite cities.
I expect it has changed. I will re-visit some of the museums, walk along the lake, perhaps go up the CN tower. Of course, I will have to try different restaurants. There are new foods to be sampled but then I have the inside track on that.
So go to Toronto, I must. But hey...somebody’s gotta do it and it might as well be me.
Thursday, August 09, 2007
Freer Trade
As you would expect I am a fan of free trade, more aptly termed, freer trade. No matter what the trade agreement, NAFTA, CAFTA or the like, trade is not totally free. There are still provisions, protected industries and nontariff barriers. However that does not mean that export is an unlikely revenue stream. Most of the U.S growth of the last quarter is attributed to exporting. U.S. companies are looking to other countries to increase sales.
According to today’s Wall Street Journal, the economies in “China, Latin America and Europe have grown faster than the U.S. over the last 18 months.” This is good for two reasons:
1. while the US is a huge market in itself, domestic companies do not have to depend solely on domestic sales
2. with a growing economy comes a larger middle class interested in the quality and variety of U.S. goods
Not long ago, selling your product domestically was a very good business. But then something happened; freer trade. Domestic businesses are learning that they are competing globally right here in the U.S. Your competition includes products from other countries. No longer do you know your competitors firsthand.
With the rise of emerging markets like China and India comes a growth in the middle class. Producers of hair care products are selling travel size versions of shampoo and conditioner...great plan. Provide affordable sizes of the product and then as the middle class becomes more affluent, sell larger sizes of the product for which you have built demand.
The weak dollar also makes U.S. products very attractive.
There is help out there both in the public and private sectors. You can use the public sector for export services at little or not cost. You can also use the help of consultants for more comprehensive services. Or you can do both. Whatever you decide to do, investigating export markets is a good idea whose time has come. After all, foreign competition isn’t just in other countries anymore.
Thursday, August 02, 2007
Build Trust … Learn the Culture
I got into international business because I love to learn. I am a lover of history, having taught World History, and a linguist having taught Spanish.
I love to learn about people and cultures. And just because you know the language doesn’t mean you know the culture or can understand the accents. (For fun click http://www.collectbritain.co.uk/collections/dialects/ to hear different dialects and accents in the UK.)
Wherever I travel, I find that my knowing about the history and culture of another country is very well received and appreciated.
I don’t think that people from other countries believe that the typical American knows about their country. From the American point of view, that is understandable since the U.S. is larger than several countries combined. And with the exception of Canada and Mexico, we are removed from other countries.
But you can’t know too much about any target market. I have been accused of being a Hispanophile, a Francophile and an Anglophile, among others. Having lived in and learned about those countries, the descriptions are appropriate and welcomed.
Knowledge goes a long way in getting comfortable with doing business abroad. And it cements relationships. Learn about them first and then you can talk about yourself.
So learn about the country where you want to do business. Don’t act like them but know them and understand them. Attend their events, especially the national sport if you really want to gain understanding. It is fun, enlightening and a step toward international business.
And do some fun things, too.
Thursday, August 02, 2007
Websites, Marketing Materials and Global Audiences
Clients ask me about their websites as an international marketing tool. Since websites bring orders and inquiries outside the U.S. it is important that you design your site and your marketing materials with a universal message and eye.
Frank Luntz dedicated his book, Words that Work, to Americans but his message is global:
1. Small words.
2. Short sentences.
3. Alliteration is good.
(Notice how I did that so far in this post.) My tagline, experts in exports, incorporates all three.
Other things to consider are color, logo and verbiage:
1. My colors are shades of yellow and red; colors that are universally accepted.
2. While my logo was a defined globe, I changed it to one less obvious.
I also incorporated it in my company name. Less clutter.
3. Use as little verbiage, unless it is technical information, as possible.
There is less to translate and less opportunity for the wrong message.
Don’t even try a play on words; it usually doesn’t work.
4. Pictures are good. You know what they say about pictures.
In updating your website or collateral materials, look at it with a universal eye and incorporate a universal message. Once you have done this, you won’t view your company or your marketing from a local perspective again.
Wednesday, July 11, 2007
New to Export
I have only known one company whose first export market was China. They admit to being very lucky in successfully exporting to this complicated market. China with its different languages, dialects, systems of government, and culture is difficult. However what makes their going into China so noteworthy is not their success there. After all China is a huge market. It is nearly unbelievable that they did so without making irrevocable mistakes.
Companies researching potential export markets, should investigate countries with the most similarities in language, culture, taste, life style. Countries that readily come to mind are Canada, where In-Compasse is representing SW companies at a taste testing in August, Australia and the U.K.
In spite of commonalities, don’t assume that Canadians or Brits are just like us.
Nor do they consider themselves to be.
What to do:
- Learn about the history
- Investigate how business is done
- Understand expressions but don’t necessarily use them
I just found different websites that can help you. Great stuff on the U.K. with walking maps, information on exhibitions and books on history. What I love the most is hearing different accents. There are definitions of expressions and explanations of pronunciations. This is one of the sites I visit when I need a dose of the Mother Country. I hope you find it worthwhile and fun.
http://www.collectbritain.co.uk/collections/dialects
If you love to eat and are traveling to Cornwall, other websites are
I don’t think they serve pie, mash and eels which is a dish from the East end of London. But if you are there, try some. I did.
All these websites are fun. And so is learning about where you’re going and where you want to do business. And who says you can’t have fun and make money at the same time. After all, I do.