August 2, 2011
Lebanon Business Linkage Initiative Propels Sales at 2011 Fancy Food Show
Lebanese Food Products to be Carried at Major U.S. Retailer
Last month’s 2011 Fancy Food Show in Washington, D.C., featured a veritable cornucopia of specialty foods from around the world: Filipino chocolate, Italian sauces, Kenyan tea, Spanish cheese, Wisconsin bacon and, not to be overlooked, Lebanese falafel mix.
Major food exporters—and many minor ones—vied for prominence at one of the world’s biggest trade shows for high-value foodstuffs. The U.S. Fancy Food Show is a twice-a-year opportunity for food producers to persuade U.S. importers, brokers, institutional representatives and distributors that their products stand out among the 180,000-strong multitude.
As the relatively small Lebanese producers learned, the criteria are not merely quality and price—but also availability at scale year-round.
USAID-funded Project Helps Lebanese Break Through
The USAID-funded Lebanon Business Linkage Initiative (LBLI) aims to increase specialty foods exports by working with market-driven Lebanese firms engaged in food processing. Starting with an analysis of shoppers’ preferences, the program built more than 420 linkages between farmers and processors.
The emphasis has been on brand building to lead to long-term market success—not just trying to sell another container-load. For the past two years, LBLI has assisted project participants to prepare for and attend the big U.S. food show.
Months ago LBLI’s Senior Marketing Advisor Dr. Nadine Chemali, formerly of Proctor and Gamble, conducted a workshop for select Lebanese food processors. She coached them in the preparation of sell sheets, promotion plans, food safety measures, U.S. label requirements—the regime of exacting documents and protocols needed to convince buyers of safety and quality—and how to facilitate deal making.
Chemali also accompanied five Lebanese processors to the show where she worked with an LBLI-engaged U.S. broker to link the Lebanese visitors with U.S. buyers of Mediterranean foods.
Second House Products’s Investment Pays Off
Joyce Rizk, quality assurance officer for Second House Products (SHP), worked with LBLI to prepare her company’s presence at the show. She adopted project-taught market entry techniques, including prepared product descriptions and advance purchase documentation. Her company committed approximately $50,000 to the effort, which included sending advance samples, designing and printing marketing material, and traveling outside of D.C. to scope out the competition.
LBLI’s coaching and the small company’s diligence paid off. The project has announced that as a result of SHP presenting at the show, four products soon will be stocked at food outlets in the United States, including Costco, the third largest U.S. retailer and the eighth largest in the world.
Immediately after returning to Lebanon, SHP ramped up production of an initial order and lined up a specialized distributor. The value of the initial orders placed by Costco and other U.S. stores is $129,000 and represents a breakthrough. Besides being a promising start on SHP’s expanded market reach, it has symbolic value for all the Lebanese firms who enjoy similar market potential.
ACDI/VOCA implements LBLI in partnership with prime implementer FHI International 360. Read more about LBLI's impact here.
Learn more about ACDI/VOCA’s work in Lebanon.
Video: View a video of Voice of America's coverage of the 2011 Fancy Food Show on YouTube.
Pictured at top left: Quality Assurance Officer for Second House Products Joyce Rizk (left) speaks with LBLI's Janis Grover (center) and a food importer representative at the 2011 Fancy Food Show in Washington, D.C.
