American consumers tend to prefer “Made in Greece” F&B products to others, based on a multitude of reasons. Mr. Samouil Zisis, First Secretary for Economic & Commercial Affairs at the Embassy of Greece in Washington D.C., offers a deeper look at the dynamics of the highly competitive U.S. market. Talking to Ambrosia Magazine, he shares valuable insights regarding the available opportunities for Greek Food & Beverage companies and provides expert advice on how they can strengthen their presence across the Atlantic.
Interview: Kyriaki Moustakidou
What would you say is the greatest asset of Greek F&B products in your market?
Global exporters have always paid particular attention to the US market, as it is the world’s largest economy, combining the unique characteristics of a large population with high disposable incomes (> $85k) and a high propensity to consume. Made up of a population of 341 million, American consumers greatly desire Greek products, generating an increasing demand for Greek products within the US market. Such products include agri-food, building materials, aluminum products, chemicals, cosmetics, pharmaceuticals, etc., with agri-food and food/beverage products being the ones most widely demanded by American consumers.
There exists a perception amongst American consumers that Greek products are of higher quality (especially food and beverages), while still competitively priced, given that domestically produced products also have high costs. In the last decade, this perception, coupled with the overall promotion of the Mediterranean diet as a healthy way of living (consisting of quality agri-food products without added preservatives) has greatly boosted the demand for Greek products in the United States. For this reason, even with recent concerns about President Trump’s aggressive trade policies, along with the potential for a recession in the United States, the US economy will still need and rely on a large influx of imported goods and services.
Which Greek products have the greatest potential, and how could their dynamics improve?
Several Greek products are widely popular and continuing to grow in popularity in the US market, including olives, olive oil, cheese products (especially feta, but also other Greek cheeses), yogurt and yogurt desserts, certain flavorings (e.g. biscuits, rusks), honey, jams, canned fruits, confectionery (e.g. halva), frozen items (e.g. dough products, pies, vegetables), fishery products (fresh or frozen fish and seafood), legumes, pasta, canned delicacies (e.g. stuffed vine leaves), soft drinks, wine, beer, and more.
The presence of Greek food and beverages in the US market can be strengthened through various ways. First, given that the US market is well-suited for the export of large quantities of products, especially those intended for supermarket chains at the state or federal level, it would be highly beneficial to ensure a steady and adequate supply of Greek products in these supermarkets.
Additionally, promoting the Mediterranean/Greek diet within these stores would enhance consumer recognition and encourage greater interest in these products among American shoppers. Traditionally, Greek companies initially focus on entering networks and stores owned by and/or catering to the Greek community in the U.S., as well as local markets, before exploring opportunities to expand their product presence at the national level. The role of Greek and European promotional programs would also prove crucial, as these initiatives offer Greek food and beverage producers valuable opportunities to promote their products in the U.S.
What is the biggest challenge for companies or brands who want to do business in your country?
Τhe US market presents several challenges for Greek export companies. First of all, the territory of the USA should not be perceived a single market, in the sense that each state has different consumption patterns, purchasing habits, etc., and to a certain extent, a different institutional framework.
One of the main challenges of entering the market is the choice of a suitable distribution network, depending on the choice of the entry point. Traditionally, for Greek products, the main points of entry are the areas where the majority of the Greek expatriate population is concentrated, namely the areas of New York (including New Jersey) and Chicago, while important commercial, transit, and business centers are also Baltimore, Miami, San Francisco, Atlanta, etc. One of the key factors that must be considered when choosing a distribution network is, first of all, the pricing of the product. Traditional distribution channels—including intermediaries, importers, and distributors–inevitably lead to a significant increase in the final price of the product to the consumer.
The main challenge for several categories of agri-food products is the structure of the food market here in the U.S., which is characterized by large supermarket chains and complex and expensive networks of distributors and food brokers. For this reason, good cooperation with importers is crucial. The intermediary (”broker”) and the purchasing manager (”buyer”, i.e. supermarket chains, distribution networks, and importers) play a crucial role in the overall placement of a product in the American market; however, much of a new product’s placement in the mainstream American food market, especially in supermarkets, also requires a significant amount of promotional capital on the part of the producer/exporter. Unfortunately, due to their smaller size, a large number of Greek companies are unable to dedicate a significant amount of money for dedicated promotional activities in the US.
Furthermore, the strict US institutional framework and non-tariff barriers cause various obstacles for exporters, requiring them to prepare a series of supporting documents, compliance with several regulations, and more. For example, our country has been cooperating with the relevant U.S. authorities to complete the regime equivalence process required for the export of Greek meat products to the U.S. However, this ongoing process of acquiring equivalence status began in 2013 and involves three different American agencies. A particularly large amount of data has been requested to be submitted, including an extensive amount of specific data per category of meat product (e.g. beef, pork, poultry, etc.).
In addition, domestic associations, whose members are usually companies, play an important role in providing general information, partner details, etc. to potential exporters. Due to the complexity and size of the US market, we consider it particularly useful for aspiring exporters to communicate with the respective collective/sectoral entities regarding their specific industry/area of interest. Conveniently, there are associations/entities for almost every industry/activity in the US.
Which targeted actions do you take to improve the position of Greek F&B products to your market?
European promotional programs play an important role in helping Greek companies access the U.S. market. Regarding the food sector, information is readily available on the ”Enjoy it’s from Europe!” Portal. In recent years, at least 16 Greek initiatives regarding the promotion of quality food and wine in the US have been undertaken.
At the same time, Enterprise Greece supports the participation of Greek companies in international exhibitions organized in the United States. The Hellenic American Chamber also directs a variety of initiatives and proposed actions related to the activity of Greek businesses in the United States.In addition, there are also programs for the promotion of Greek products (agri-food, PDO/PGI), co-financed by the Ministry of Rural Development and Food.
Through these programs, Greek companies can receive funding to organize promotional initiatives in the U.S. Our office monitors these activities, as closely as possible, in order to assist if and whenever necessary.
Could you name some of the best-selling Greek F&B products in US market?
Olives, olive oil, yogurt, feta, certain frozen items (pies, types of dough, etc.), canned fruits (mainly peaches) and certain alcoholic beverages (mainly wine) are the most popular Greek food and beverage products in the US market, enjoying high demand and, therefore, hold great potential for the future.
These products, which are widely available throughout supermarket chains in the US, record higher sales. Other Greek products can be found in smaller delicatessen stores, which, though smaller, offer a much wider variety of Greek food and drinks.
Especially regarding to feta, olive oil, olives and wine, the American consumer public prefers “Made in Greece” products, as Americans consider them to be of better quality and taste. Although PDO/PGI labels face some pushback in the United States due to completely different mindsets regarding the importance of the origin of agri-food products, “Made in Europe” and “Made in Greece” labels are particularly popular among American consumers, especially younger consumers who are greatly influenced by social media and rhetoric concerning healthy lifestyle patterns.
