Selling to India

We may be taking a few irradiated mangoes from India, but I wonder if the real opportunity doesn't lie in that country rather than ours.

The FAS has released a report in early May that summarizes recent news from the country. Here is an excerpt:


Indian incomes could triple and its middle class could grow more than ten times, to 583 million by 2025, from the current 50 million, if its economy grows at an average of 7.3% for
two decades, says a McKinsey Global Institute report, the research arm of the McKinsey & Co. Rising incomes will drive consumption, with aggregate consumption set to quadruple by
2025 to Rs. 70 trillion ($1.7 trillion) from the present Rs. 17 trillion, the report says. This could make India the world’s fifth largest consumer market by 2025 from the current twelfth largest. “The drivers for consumption will be economic growth, more people entering the
workforce, and a change in spending patterns,” said McKinsey’s Managing Director, Adil
Zainulbhai. The report says urban consumption will form 62% of the total in 2025, from 43% currently. Over the next two decades, 79% of all spending will come from the middle class and rich, compared with the current 75% spending from the deprived. As poverty is alleviated, Indians will spend less on basic necessities. Spending on food, beverages, and
tobacco will drop to 25% in 2025 from 42% in 2005.

TK: When opportunity knocks, can Wal-Mart and Starbucks be far behind? Of course not! Starbucks is scheduled to open its first store in India next year, with about 100 stores to open in the first year. Wal-Mart has a joint venture, but local sensibilities won't allow any retail stores to bear the Wal-Mart tag. The FAS reported Wal-Mart Stores Inc. will open a cash-and-carry (wholesale) joint venture operation with Bharti Enterprises by the middle of 2008. The plan calls for stores in 75 cities over the next five years.

Packer Man of the Year

One of the best moments of the United Fresh Marketplace show this year was when Lance Jungmeyer awarded The Packer Man of the Year award to Joe Pezzini, vice president of operations for Ocean Mist Farms.

Here is the link to Lance's speech about Joe.

Las Vegas a tipping point

The United Fresh Marketplace show in Chicago had the familiar and predictable feel of many industry trade shows, but yet it lacked that special buzz, the breathless excitement, the sense of big stage spectacle that makes an event truly memorable. Also, I glumly note that "Mary Ann" from Gilligan's Island wasn't there, and the Macarena wasn't blaring from any exhibits in Fresh Marketplace.

Some big exhibitors of the past - Dole and T&A, to name a couple - were not on the show floor. Some other booths appear to have been downsized from past years.

Yet many exhibitors I talked to were well pleased with the value of the show. More than one said that getting a few buyer relationships solidified is worth more than a bushel full of business cards that lead to nowhere.

The United event also created great value in their short courses they offered on Saturday.
Sunday's retail award banquet, when United recognizes 20 outstanding produce managers and when The Packer Man of the Year is awarded, was a highlight. Those who attended the Women in Produce reception were rewarded with a great message from Jan DeLyser.

Make no mistake, the United Fresh Produce Association has never been more valuable to its members. With work on the farm bill coming to a crescendo, immigration being moved to the front burner and food safety in the limelight like never before, United staffers stand in the gap on issues that literally means billions of dollars to the industry.

Next year's event in Las Vegas will be important for United's trade show future. Having an organic pavilion in the show may help pull in some exhibitors who now exhibit with the All Things Organic show. While Vegas has been knocked for its distractions, the venue is sure to draw a big crowd. Getting exhibitors locked in and selling the floor space out out is critical and could be a tipping point to a bigger and better future - complete with Mary Ann and the Macarena, I hope.