Building on quality and tradition in the UK market

The British market is one of the largest, most cosmopolitan, greatly competitive markets in the world. Being placed in this kind of environment is an accomplishment of its own, let alone standing out. This is exactly what the Greek f&b companies have done during the last twenty years, through excellent packaging, and fresh, original marketing, but also aided by the covid momentum, which helped the world renew their interest in the Mediterranean diet, valuing its undeniable benefits. Ms Vivian Kabouroglou, Head of the Economic & Commercial Section of the Embassy of Greece in London gives Ambrosia Magazine the insights on this highly demanding commercial environment, especially after a record year (2022) for Greek exports to the UK in all categories.

What would you say is the greatest asset of Greek F&B products in your market?
Greece’s agri-food industry has a significant history which has become a force of strength for Greek f&b exports worldwide. The past decade has demonstrated the vitality of the sector, with multiple companies bringing history and modernity into harmony, by promoting the timeless qualities of traditional Greek raw materials and produce through fresh and original marketing. Building on quality and tradition, Greek F&B companies are constantly innovating and are now manufacturing products that are increasingly adapted to consumer demand in large, foreign export markets, like the one of the UK.

The UK is one of the major markets for imported food & drinks worldwide, importing close to half of the food it consumes, as a result of consumer demand for products that cannot be grown or manufactured within the country. It is also a wealthy and diverse market, providing opportunities for a wide range of premium ingredients and products grown in Greece, such as truffles and saffron. Most importantly, the UK is at the forefront of emerging global market trends that shape the future of the industry, with rising demand for alternative products such as “free from”, organic and plant-based, in which Greek food manufacturers are more and more present and successful.

While already well established in the UK, Greek food products can, therefore, keep tapping into new opportunities the British market has to offer. A distinctive variety of recognizable PDO/PGI, high-quality products, differentiating themselves from global food manufacturers, are gaining market shares in higher added value segments of the British market. Driven by the wider recognition of key standards of health and physical fitness after the COVID-19 pandemic, a renewed interest in the Mediterranean Diet, as one of the healthiest dietary patterns, reputed for its demonstrated preventive effect of cardiovascular and other diseases, is an excellent ambassador for Greek F&B products in the UK and worldwide.

The best-selling Greek F&B products in your market
F&B products make up almost 30% of total yearly exports from Greece to the UK. The main food export categories and products are dairy products, natural honey, as well as preparations of vegetables, fruit, and nuts. According to British statistical data, these categories combined produced an annual export value of more than 230 million pounds in 2022.

What is the biggest challenge for companies or brands who want to do business in your country?
During the last few years, Brexit, coupled with the outbreak of COVID-19 and the global geopolitical and macroeconomic challenges of the war in Ukraine, have considerably impacted the UK economy, resulting in significant supply chain problems and increased costs.

After Brexit, new administrative barriers have arisen and businesses have had to adapt to the new trading relationship with the EU with the UK as a third country. However, as a phased approach to implementing border controls on EU imports was adopted by the British government, the UK rules for importing agri-food products from the EU are currently less restrictive than the ones for exporting from the UK to the EU; thus, according to most trade data sources, exports from the EU to the UK have grown in most categories between 2019-2022. Nonetheless, Brexit has led to good deal of uncertainty for companies wishing to place their products on the UK market, with a number of deadlines having been repeatedly postponed by the British Government, as well as regulatory changes concerning specific products introduced or underway (i.e. wine reform).. Finally, in April , the British government published its draft Border Target Operating Model (TOM), which proposes a new approach to security as well as sanitary and phytosanitary regulations, aiming for controls to be simplified, digitised and, over time, delivered through the UK’s new Single Trade Window, which will render UK external trade more efficient. A government consultation on the TOM is still underway with results and decisions due to be published in the near future.

While arguably more straightforward compared to those of other third countries, the new trade relation with the UK is nonetheless a barrier for smaller companies which have previously only operated in the EU market and hence have no experience of export to third countries.  Moreover, Brexit has enabled the UK to enhance trade relations with third countries through bilateral (Australia, New Zealand) or regional Free Trade Agreements (CPTTP), which may, in the future, reduce EU’s share in UK external trade.

Last but not least, the current combination of high inflation, the cost of living crisis and anaemic growth (“slowcession”), has made UK consumers decrease the quantities of food and drink they buy, without, however, sacrificing quality – an additional challenge, but also an opportunity for Greek quality products.