A S Swee eet Jo Journ urney ey Our Heritage Who We Were Born - - PowerPoint PPT Presentation

A S Swee eet Jo Journ urney ey

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