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On the Business Front, South of the Border: ANTAD ‘98
By Donald Washington
The battle for
the palate of Mexican food buyers and consumers began rather quietly, with the arrival of
strangers in town. However, when the dust settled -- and there was dust -- each company
had a booth. Pretty soon name tags and signs were handed out, posters hung, products set
out for display and sampling. On hand for support were people dressed as large chickens
and dancing steaks. It wasn’t Halloween...
I think they call events like this a trade show.
I’m at ANTAD ‘98 in Guadalajara, Mexico, March 14-16, where over 45 primarily small-to-mid-size U.S. companies are on hand to promote the finest food and agricultural products the U.S. food industry has to offer to Mexican buyers. The U.S. Pavilion is endorsed by the U.S. Department of Agriculture’s Foreign Agricultural Service.
According to show officials, during the three-day event, over 10,000 people will pass through ANTAD ‘98 to walk, talk and sample food products in the first U.S. Pavilion ever to be endorsed at what is Mexico’s largest annual retail and super market show. And just to show that they were fair, curious and/or hungry, many of these people did the same thing at other exhibits featuring products from other countries.
Well, that’s okay.
After all, for this three-day period, this is the official battlefield to win the
discerning palate of Mexican food buyers. And remember, it’s who they talk to when
the show is over that counts -- "CHA-CHING!"
Firms in the U.S. Pavilion can see that turnout for the show is excellent; they’re projecting over $5.6 million in ANTAD-inspired sales for the next 12 months.
Projected sales for the show are excellent, considering this is the 15th anniversary of the annual ANTAD supermarket and retail exhibition, yet only the first time the United States has had a pavilion featuring U.S. food firms at the show.
Why did the United States decide to participate at ANTAD this year? I cornered Norval Francis, U.S. Agricultural Minister Counselor in Mexico City.
Francis points out that this is the first year for a U.S. pavilion at the show because in previous years, 1991-94 and 1996, the U.S. Agricultural Trade Office (ATO) had sponsored the Festival de Alimentos y Bebidas (FAB) show in Mexico City, which was exclusively for U.S. food and agricultural products.
However, following the devaluation of the peso in December 1994, U.S. participation in the FAB show fell by 50 percent. Consequently, the ATO decided to postpone organizing further U.S.-solo shows.
Francis says that today, the Mexican market has recovered enough for the U.S. food industry to renew its marketing efforts in Mexico based on economic and market indicators. The ATO decided that the time was right to get back into the market, and the ANTAD show provided an excellent opportunity to start reestablishing the U.S. food sector’s presence in Mexico.
Many of the U.S. firms participating in ANTAD ‘98 are already exporting to Mexico, while others are here simply to test the waters. Firms in the U.S. Pavilion featured a wide array of products ranging from popcorn, wine, red meat and poultry, to beans, dairy products, juices, soups, sunflower seeds, fruit and condiments.
Francis also noted that trade with the Latin American market continues to grow in importance for U.S. agriculture. U.S. exports to Latin America reached $10 billion in 1997, exceeding the total for all of Western Europe. "The largest part of our export gains in Latin America is still coming from one country -- Mexico," said Francis.
"U.S.
agricultural exports to Mexico are projected to reach $5.8 billion in fiscal year 1998,
the fourth record in 5 years under the North American Free Trade Agreement."
Other factors are also making Mexico a good market.
"Nearly half of Mexico’s 90 million people are under 25 years of age, which translates into a major consumer group with a big appetite for U.S. products," Francis said.
U.S. products are regarded in this market as high in quality and good in value. In only nine years, from 1988 to 1997, U.S. exports of food and agricultural products to Mexico climbed from $2.2 billion to $5.4 billion. Strong demand is expected to continue, particularly for consumer-ready products.
In addition to endorsing the U.S. Pavilion at ANTAD ‘98, the ATO also staffed an information booth at the show to provide hands-on assistance to the U.S.-exhibitors, as well as to answer market-related questions from the Mexican visitors to the Pavilion. The ATO staff, most of whom speak Spanish fluently, had literature in Spanish on various ATO-services and USDA export assistance programs, and if needed, helped translate between the U.S. exporters and Mexican visitors to the Pavilion.
Just before the last samples had been given out, the booths taken down and tired attendees flew home, I spoke with a number of companies.
Most of the U.S. firms I consulted were pleased with the contacts they established at ANTAD ‘98 and they were grateful to the ATO staff for assistance and guidance in coordinating the U.S. Pavilion.
As the dust settled, the identity of the winners and losers could not be immediately determined. However, what was clear was that U.S. firms walked away very bullish on exporting to Mexico, and viewed the experience at ANTAD ‘98 as a rewarding opportunity to introduce products and develop contacts in the dynamic, robust Mexican market.
___________________________
The author is a public affairs specialist with USDA’s Foreign Agricultural
Service. Tel.: (202) 720-3101; Fax. (202) 720-3229. E-mail:washington@fas.usda.gov
A Big Draw
A big draw to the U.S. Pavilion was samples from Square-H Brands/Hoffy beef franks and sausages made in Los Angeles, California.
Other than to the border towns of Baja, California, the company has never done business in Mexico. After ANTAD ‘98, that will very likely change, according to Manny Marin, sales manager with the company.
Square-H made a serious commitment -- one that you couldn’t miss. They had a prime space on the exhibit floor in the U.S. Pavilion, located along a main walkway on the show floor. There, the company gave away samples of hot dogs and sausages. So people were always there.
After the show, Marin was ecstatic. "Usually, I have to run down contacts," he said, "but here, contacts are running me down, telling me to come see them."
According to Marin, the biggest untruth is that Mexican importers/consumers don’t want to pay for high-quality products. "Not true, they recognize quality and are willing to pay for it."
Best Opportunities for Sales: Trade Shows
Trade shows continue to offer the easiest and least costly avenue for small businesses to enter the export arena.
In 1997, USDA-sponsored or
endorsed 21 international trade shows. These shows gave 844 companies -- many small and
first-time participants -- an opportunity to showcase their products, meet with foreign
buyers and make sales.
What’s the difference between a USDA-sponsored show and a USDA-endorsed show?
At a sponsored show, USDA is involved in all aspects of show management and provides services, including assistance in sample product shipment, rental of floor space, booth design/layout, marketing the show to potential exhibitors (primarily via mass mailing, invitations to special events and printing the show directory) and even making hotel reservations for show participants. USDA staff from Washington and the local U.S. Embassy provide support to exhibitors.
At endorsed shows, USDA develops a partnership with show organizers to assure quality
services to U.S. firms. USDA recommends these as best avenues to enter a prospective 
market for consumer-oriented foods,
and provides limited services related to these shows, including: marketing, mailing
advertising material, referral to show organizer, setting up an information booth or
national pavilion, pre-show promotion and inviting potential buyers.
USDA staff overseas, which provide most of the related services, recommend these shows based on market potential. ANTAD ‘98 was an endorsed show.
To get a list of upcoming trade shows and to find out how you can participate, contact:
Trade Show Office
FAS, USDA
AgBox 1052, Washington, D.C. 20250-1052
Tel. (202) 690-1182; Fax. (202) 690-4374
Or check out the trade show list on the FAS website at: http://www.fas.usda.gov
New Office to Help U.S. Exporters
Got a question or a problem selling to our southern neighbor? Then you should know 
that in December 1997, USDA opened
an Office of Agricultural Affairs in Nuevo Laredo, Tamaulipas, Mexico. The new office is
an extension of the Office of Agricultural Affairs in Mexico City.
The office is at a key location at the U.S.-Mexican border, and uniquely situated to identify border trade issues that could impede U.S. agricultural exports to Mexico.
The new office is located at the U.S. Consulate at Allende No. 3330, Colonia Jardin, Nuevo Laredo Tamaulipas, Mexico. The Agricultural Officer is Todd Drennan of the Foreign Agricultural Service. Tel. (52-87) 191-603; Fax. (52-87) 191-605; E-mail address: agrnl@nld.bravo.net.
The States for Agriculture
While state departments of agriculture from Georgia, Oklahoma, Iowa, Kentucky and California had representatives at ANTAD ‘98, most didn’t actively recruit more than a few companies to participate. Since this was the first year the United States had a pavilion, many were reluctant to recruit companies before they knew what response they would receive.
There was one notable exception: California. The Golden State recruited 12 companies to participate in ANTAD ‘98 using a new marketing campaign, featuring the ‘California--Taste the Sunshine’ logo.
"California has a very positive image around the world," says Ann M. Veneman, Food and Agriculture Secretary for the State of California. "Our new ‘California--Taste the Sunshine’ marketing tool will build on the State’s positive impression and help to promote California food and agricultural products both domeestically and abroad."
What about next year? Judging by the positive reaction of most of the state representatives at ANTAD ‘98, many will hop on the bandwagon and actively recruit.
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