Orientation Global Markets

~21%

What is the import share estimate in 2017?

1. Coffee, cocoa, spices
2. Fish
3. Vegetable oils

What is the food category with the highest share of imported products?

Canada, Mexico, and Oceania

Large suppliers of animals and animal products to the United States

Horticultural products

include fruits (bananas), veggies, nuts (almonds/cashews), wine, beer, fruit juices (apple), malt beverages, spices, nursery products (cut flowers)

Canada & Mexico

Who are our largest food trading partners?

North American Free Trade Agreement

What does NAFTA stand for?

NAFTA

Is partly responsible for expansion of the type of trade between Canada, Mexico, and the United States, 1994

$21.8 billion
-snack foods are the most

How much are Canada's agricultural imports worth?

$17.7 billion
-fresh veggies are the most

How much are Mexico's agricultural imports worth?

Eliminated tariffs and encouraged investment

What did NAFTA do?

USMCA

Renegotiated NAFTA

USMCA

- Major food implication: opened up more dairy markets in Canada
- Country of origin rules for autos
- Various trademark protections
- Most facets left unchanged

1. Canada
2. China
3. Mexico

What are the top 3 U.S. agricultural export sources?

Drivers of demand of imported foods

- Continued U.S. population growth
- Increased diversity and ethnicity
- Higher real disposable income
- A relatively strong dollar
- Changing consumer preferences in food and beverages

Drivers of supply of imported foods

- The spread of farm, seed, and food processing technology
- Large and underemployed labor force
- Favorable climates for high-value crop production
- International diversified investment
- International foreign aid programs

Controlled-climate, refrigerated, and plant breeding

_ transport, _ storage, and _ _ technology in developing countries help maintain the quality and year-round supply of horticulture crops exported to the U.S.

U.S. consumers benefit from imports

- Widen the variety of foods available
- Stabilize year-round supplies of fresh fruits and vegetables (highest volume months?)
- Lower food price inflation with less price volatility

Issues with increasing imported foods

- Food safety and quality
- Competition for domestic industries
- Price deflation
- Growing reliance on foreign markets
- Balance of trade issues (macroeconomics)

1-3%

What percentage of food products are inspected by the FDA?

Country of Origin Labeling

What does COOL stand for?

COOL

Fruit, veggie, seafood, or chicken-you have to show where the product comes from

beef, pork, and turkey

In 2016, COOL removed _, _, and _ from this list.

Export

Sell domestically produced products to buyers in other countries

Licensing

Legal process allowing use of manufacturing/patents/knowledge

Contract Manufacturing

Private-label manufacturing by a foreign country

Joint Venture

Domestic firm buys/joins a foreign company to create new entity

Direct Investment

Active ownership of a foreign company/manufacturing facility

Direct Investment

Which level of global market entry is the most expensive/risky?

One Product, One Message

Same Product, Same Message

Promotion Adaptation

Same Product, Change Message

Product Adaptation

Change Product, Same Message

Product Invention

Change Product, Change Message

Coke

Example of Same Product, Same Message

product adaptation

P&G resembles _ because they changed the packaging to a smaller size because people are buying less cleaning supplies.

product adaptation

Japan Baskin Robins resembles _ because they have fancy cakes with licensed characters.

McDonald's India

Product invention by introducing a vegetarian-only location

Asia PizzaHut

Product invention by creating a high-end, sit down restaurant

Saudi Arabia Starbucks

Promotion adaptation because they made a new logo due to censoring

Emerging markets

Economies in the process of moving from a closed to an open market

emerging markets

Many Latin American, Eastern European and Asian countries are considered _.

One Brand Name Everywhere

Global branding for CocaCola

Adaptations & Modifications

Global branding for Dreyer's and Edy's
(west coast and east coast divide)

Different Brand Names in Different Markets

Global branding for Hellmann's and Best Foods

Aesthetics, Climate Considerations, and Labeling

What are the 3 global considerations for packaging?