FOOD MARKET ENTRY EUROPE

We stand at your side
to develop your food business in Europe.

Expanding into new markets?
Don’t go it alone!

Whilst in-house preparation is an option, partnering with us as your local expert is often the smartest move. Our partners and offices in Germany, Austria, Italy, Spain, the Netherlands and the UK offer:

• Cultural insight
• Business intelligence and insight into your competitors
• Legal know-how
• Established networks of agents and distributors
• Direct contact to retailers and category managers.

To secure these valuable allies, you’ll need to showcase how your product outshines the competition and demonstrate a clear path to boosting their profits.

Why a local distributor should not be your first choice

Is your company currently inclined towards finding a distributor rather than working through a consulting firm? Here are the reasons why entering a new market with a specialized F&B consultant is more promising:

  • Comprehensive Market Understanding and Strategy:
    A specialized consultant offers a broader approach by providing in-depth market analysis, understanding consumer behavior, cultural preferences, and competitive dynamics. This expertise helps in developing a tailored market entry strategy that aligns with the company’s strengths and market requirements.
  • Regulatory Compliance and Risk Management:
    Consultants are well-versed in local regulations, ensuring compliance and minimizing legal risks. They also assess market-specific risks and develop strategies to mitigate them, which is crucial for a successful market entry.
  • Strategic Partnerships and Networking:
    Beyond just finding a distributor, consultants help establish strategic partnerships with local businesses, suppliers, or joint ventures. These partnerships can provide valuable resources, insights, and support, leading to long-term collaborations and accelerated growth.
  • Market Research and Business Intelligence:
    Consultants conduct extensive market research, providing valuable insights into market trends, consumer preferences, and competitor activities. This intelligence is key to making informed business decisions and tailoring products and marketing strategies to meet customer demands.
  • Holistic Business Development and Operational Setup:
    A specialized consultant assists in setting up operational processes, managing logistics, and ensuring cultural adaptation. This holistic approach ensures that the business is fully prepared to operate smoothly in the new market, enhancing customer reception and overall success.
  • Commission Impact on Profitability:
    Distributors typically expect ongoing commissions on sales, which can significantly reduce the manufacturer’s profits. This ongoing expense can limit the manufacturer’s ability to reinvest in the business or expand further in the market. In contrast, consultants usually charge a one-time fee or retainer for their services, providing more cost control and predictability for the manufacturer.

To summarise: Simply seeking a local partner or distributor is rarely sufficient for successful market entry in Europe, especially for international chains. The most effective international expansion strategies—particularly in the food and beverage (F&B) sector—combine careful partner selection with robust market research and adaptation to local consumer preferences and cultural nuances.

Elevate Your Product in the EU

Do you lack the necessary contacts, language skills, regulations or market knowledge in your target market?
We offer a wide range of optional market entry services:

  • Detailed analyses, market and feasibility studies
  • Evaluation of export opportunities (market size and growth potential, competition, sales channels, etc.)
  • Product and range selection and/or customisation
  • Search for the most suitable market access opportunities
  • Creation of a roadmap, a business case and an action plan with milestones
  • Standardised review process:  processing of customs documents, certificates, QM, permits and required translations
  • Selection of a warehouse and suitable logistics provider (if not already existing)
  • Market entry strategies (channel strategy, target customers, brand positioning)
  • Business partner search
  • Identification of suitable buyers, distributors and retailers
  • Contacting the selected key accounts
  • Preparation of sample shipments
  • Preparation of trade agreements and support during negotiations
  • Continuous support in communication between producers, importers and retailers
  • Support and participation in trade shows and exhibitions
  • Administrative export issues of all kinds
  • Training courses and webinars
  • Location counselling
  • Search for suitable representatives and sales staff
  • Identification of qualified key account managers / freelancers / employees
  • Setting up a regional sales team and training staff
  • Setting up a permanent office, virtual business presence and/or warehouse

Finding the right customers

Venturing into a new market requires more than just a stellar product that’s thriving in your home country. It’s about identifying the perfect customers — those who genuinely need what you’re offering. After all, it’s these customers, not markets, who ultimately purchase your products. This makes it crucial to present the right offers at the proper price and time through the most effective channels.

A Google search lists 460 food distributors alone in Germany and 278 in France that could potentially help a producer place their products to retailers. So how do you find the most suitable partner? The key to any successful business lies in finding the right distributors, retailers and customers and nurturing those relationships to generate recurring revenue. It’s not just about making a sale; it’s about creating lasting partnerships that drive sustainable growth.

At FOOD AND WINE CULTURE Consulting, we specialise in helping you craft a practical and effective go-to-market strategy. Our approach is rooted in a deep understanding of your potential customers, their culture, language, and business practices. We recognise that success in a new market isn’t just about translating your marketing materials — it’s about truly connecting with your audience on their terms. By leveraging our expertise, you’ll be well-equipped to navigate the complexities of entering a new market. We’ll help you avoid common pitfalls and capitalise on unique opportunities, ensuring that your expansion efforts are both efficient and fruitful.

Remember, successful market entry is a journey, not a destination.

In foreign waters you will need a local partner

5 Common Export Pitfalls to Avoid

As food and beverage producers venture into EU markets, they often encounter complex challenges that can derail even the most promising export initiatives. To help companies navigate these treacherous waters, let’s examine five critical mistakes and hidden pitfalls that frequently undermine export efforts:

Many companies fail to conduct thorough research on their target markets, leading to poor understanding of local consumer preferences, cultural nuances, and competitive landscape. This can result in ineffective marketing strategies, misaligned product offerings, and ultimately, failure to gain traction in the new market. It is crucial to understand that initiating business contacts with foreign retailers or distributors in EU markets requires a local presence and communication in the native language. This is particularly important in saturated markets. Relying solely on remote contact is generally ineffective.

Companies often underestimate the costs and time required to establish their business in a new country. This can lead to cash flow problems, and an inability to capitalize on opportunities due to lack of funds. When planning to enter a new country and secure shelf space with retailers, producers outside the EU should be prepared to make a significant investment. While exact costs can vary widely depending on the specific country, market conditions, product, and scale of entry, as a general breakdown a SME-company should be prepared to invest anywhere from €300,000 to €1 million or more for a significant market entry. For a small manufacturer, a minimal budget could range from approximately €50,000 to €100,000. These estimates includes initial research, product adaptation, certifications, legal and consulting fees, key account management for the first year, and listing fees for multiple products across several retailers or distributors.

F&B exporters often overlook or underestimate the importance of understanding and adhering to international trade laws, import regulations, certifications and local distribution laws. This negligence can lead to legal repercussions, shipment delays, or even confiscation of goods at customs, severely impacting the business’s reputation and finances.

Poor organization of logistics, including transportation, EU-warehousing, and inventory management, can result in delayed shipments, increased costs, and damaged goods. The hidden pitfall here is the potential long-term damage to customer relationships and brand image due to unreliable delivery and quality issues.

Many producers make the mistake of assuming that their home market strategies will work universally. Overlooking cultural nuances can lead to misinterpreted marketing messages, inappropriate product packaging, or offensive business practices, potentially alienating customers and damaging the company’s reputation in the new market.

Get in touch and see how we can help you:

Our EU Partner Offices:

HQ Germany:
Cyrus Schultz
cy@clatu.com

UK:
Mark Heron
mh@clatu.com

France:
Jade Guiffes
jg@clatu.com

Austria:
Wolfgang Braunstein
wb@clatu.com

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