Required Report - public distribution

**Date:** 10/16/2006

**GAIN Report Number:** CO6014

CO6014

**Colombia**

**Exporter Guide**

**Annual**

**2006**

**Approved by:**

![](media/image1.wmf)R. Todd Drennan, Agricultural Attache

U.S Embassy

**Prepared by:**

Alicia de Jacobs, Marketing Specialist

**Report Highlights:**

Total Colombian food and agricultural imports were \$2.2 billion in
2005. The United States accounted for 36% of total imports valued at
\$791 million, making Colombia our largest export market in Central and
South America. Colombia and the United States negotiated a bilateral
free trade agreement, which is expected to be implemented in the first
semester 2008. The trade agreement will provide a major boost to the
Colombian economy and imports of food products from the United States.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Bogota \[CO1\]

\[CO\]

**SECTION I. MARKET OVERVIEW**

In 2005, total Colombian food and agricultural imports reached \$ 2.2
billion. The United States accounted for 36% of total agricultural
imports valued at \$791 million, making Colombia our largest export
market in Central and South America. Agricultural imports from the
United States increased 8.9% or \$65.0 million in 2005. Although grains
represented 73% of imports from the United States the demand for
processed foods and other high-value food products has steadily
increased over the past three years. The Colombian GDP grew 5.2% in
2005, surpassing the expected 4.5%. This increase was due to an
excellent performance of investment, which grew 23% over the previous
year, partially boosted by the expectations of the Free Trade Agreement
and improvement in security. The peso revaluation was 9.0% in 2005,
which made imports more attractive, however, this tendency reverted in
2006. The economy is projected to grow over 5% in 2006.

The hypermarket/supermarket sector in Colombia is one of the most modern
in Latin America, with sales of US \$4.7 billion in 2005, of which \$3.2
billion was in food products. The hotel, restaurant and institutional
sector is also important. Sales of food and beverages in Colombia were
estimated at \$1.8 billion in 2005, an increase of 6% over 2004 sales.
Growth in 2006 is estimated between 6 and 7 percent. The HRI sector in
Colombia has great potential for growth driven by increased tourism. The
government has fostered in-country tourism given that Colombia is well
endowed with human and natural resources besides improvement in
security.

In the hypermarket/supermarket sector in Colombia, it is important to
mention that an Agreement, that took place in New York on August 19,
2006, Almacenes Exito, the number one retailer in Colombia was allowed
to participate in the Carulla-Vivero' shareholders. Carulla-Vivero is
considered the number 2 retailer in Colombia. The share acquired by
Exito represents 19.8 percent of Carulla-Vivero assets. Among the
bidders for this transaction were Concosud, Wal-Mart and Carrefour.

Despite the political unrest, Colombia's food processing industry
continues to develop. Concentration and consolidation remain as dominant
forces in the Colombian food market. Domestic supermarket chains
continue seeking strategic alliances with foreign partners in a fanatic
effort to capture market share. The giants of the market continue
opening new stores. Economic realities and current consumer trends
indicate that buying decisions are primarily based on quality and price.
Today's consumers are more health-conscious and selective shoppers.
Consumers have benefited from the "price war" among competitors.
Although most imports are still handled through agents and distributors,
Colombian importers are constantly seeking alternatives to reduce their
costs. Large companies import directly, and importers/distributors are
increasingly establishing contacts abroad.

Several factors have a negative impact on the market: 1. As a member of
the Andean Community, Colombia imposes a variable import duty system on
more than 150 products, resulting in high and unpredictable duties. 2.
Restrictive import licensing requirements block imports of U.S. products
such as chicken parts. 3. Despite GOC efforts, artificially low-priced
contraband produces unfair competition and disrupts sales of legally
imported products, and 4. Internal conflict continues hindering economic
growth.

Despite the present limitations and constraints, the market is highly
competitive and will become much more open in the near future when the
bilateral free trade agreement is in place. U.S. products enjoy an
advantage because they are well regarded for their perceived high
quality and value. Colombia and the United States concluded negotiations
of a bilateral free trade agreement in February 2006, and it was
notified to the U.S. congress in August, 2006. Implementation of the
agreement is expected in the second half of 2007 or early 2008. The
agreement will provide a major boost to the Colombian economy and
imports of food products from the United States.

![](media/image2.wmf) **ECONOMIC OUTLOOK**

![](media/image3.wmf)

![](media/image4.wmf)

![](media/image5.wmf)

![](media/image6.wmf)

# Market Overview

![](media/image7.wmf)

**Colombian Food Production**

![](media/image8.wmf)

-   The food industry is one of the largest and most vital sectors in
    the economy, accounting for 21% of industrial production, or 28.6%,
    if beverages are included.

-   Industry has state-of-the-art technology and modern communications.

-   Colombia is a major producer in many intermediate and consumer-ready
    categories, such as sauces and spices, dairy products, breakfast
    cereals, confectioneries, baked goods, poultry feed, pet food, oils
    and margarines.

-   Foreign processing food affiliates account for a large portion of
    processed food output. Some domestic food manufacturers import
    products from foreign affiliates, labeled as their brand.

-   Store-brand products have increased in the last two years. They
    captured 3% of food sales.

-   The food-processing sector depends heavily on imports of ingredients
    like spices, dry mixes for sauces, modifiers, colorants,
    preservatives, flavorings, enhancers and thickeners.

![](media/image9.wmf)

**Food and Agriculture Products Imported In 2004-2005**

+---------------------------+---------+---------+----------+----------+
| **PRODUCTS**              | *       | *       | **MARKET | **GROWTH |
|                           | *2004** | *2005** | SHARE    | RATE     |
|                           |         |         | %**      | 05/04**  |
|                           |         |         |          |          |
|                           |         |         | **2005** |          |
+---------------------------+---------+---------+----------+----------+
|                           | **US\$  |         |          |          |
|                           | MI      |         |          |          |
|                           | LLION** |         |          |          |
+---------------------------+---------+---------+----------+----------+
| Consumer -oriented Food   | 174     | 196     | 100.0    | 13       |
| Products                  |         |         |          |          |
|                           | 37      | 45      | **23**   | 22       |
| **U.S.A**                 |         |         |          |          |
|                           | 137     | 151     | 77       | 10       |
| Others                    |         |         |          |          |
+---------------------------+---------+---------+----------+----------+
| Beverages                 | 66      | 82      | 100.0    | 24       |
|                           |         |         |          |          |
| **U.S.A.**                | 0.9     | 2       | **2**    | 78       |
|                           |         |         |          |          |
| Others                    | 65      | 80      | 98       | 23       |
+---------------------------+---------+---------+----------+----------+
| Raw Mat. & Interm.        | 623     | 625     | 100.0    | 0.32     |
| Products                  |         |         |          |          |
|                           | 362     | 370     | **59**   | 1.93     |
| **U.S.A.**                |         |         |          |          |
|                           | 261     | 255     | 41       | -2.3     |
| Other                     |         |         |          |          |
+---------------------------+---------+---------+----------+----------+
|                           |         |         |          |          |
+---------------------------+---------+---------+----------+----------+
| Raw Materials &           | 682     | 700     | 100.0    | 2.6      |
| Intermediate Products for |         |         |          |          |
| Food Industry             | 214     | 251     | **36**   | 17.2     |
|                           |         |         |          |          |
| **U.S.A**.                | 468     | 449     | 64       | -4.1     |
|                           |         |         |          |          |
| Other                     |         |         |          |          |
+---------------------------+---------+---------+----------+----------+
| TOTAL                     | 1545    | 1603    | 100.0    | 3.6      |
|                           |         |         |          |          |
| **U.S.A.**                | 614     | 668     | **42**   | 9        |
|                           |         |         |          |          |
| Others                    | 931     | 935     | 58       | 0.4      |
+---------------------------+---------+---------+----------+----------+

Source: World Trade Atlas

**2004-2005 Food and Agricultural Imports from U.S.**

+------------------+-------+-------+----------------+-------+-------+
| **PRODUCT**      | **2   | **2   | **PRODUCT**    | **2   | **2   |
|                  | 004** | 005** |                | 004** | 005** |
+------------------+-------+-------+----------------+-------+-------+
|                  | **U   |       |                | **U   |       |
|                  | S\$** |       |                | S\$** |       |
|                  |       |       |                |       |       |
|                  | *     |       |                | *     |       |
|                  | *MILL |       |                | *MILL |       |
|                  | ION** |       |                | ION** |       |
+------------------+-------+-------+----------------+-------+-------+
| Meat and Edible  | 5     | 8     | Mis.           | 48    | 55    |
| Meat Offals,     |       |       | Grain,seeds,   |       |       |
| pork             |       |       | soybeans       |       |       |
+------------------+-------+-------+----------------+-------+-------+
| Fish, Shellfish, | 0.6   | 0.9   | Animal or      | 16    | 14    |
| Mollusks         |       |       | Vegetable Fats |       |       |
|                  |       |       | and Oils       |       |       |
+------------------+-------+-------+----------------+-------+-------+
| Dairy Products,  | 2     | 4     | Preparations   | 4.7   | 11    |
| Eggs, Honey      |       |       | of Meat and    |       |       |
|                  |       |       | Fish           |       |       |
+------------------+-------+-------+----------------+-------+-------+
| Products of      | 2     | 2     | Sugars and     | 3.9   | 5     |
| Animal Origin    |       |       | Confectionery  |       |       |
|                  |       |       | Products       |       |       |
+------------------+-------+-------+----------------+-------+-------+
| Live Trees and   | 3     | 2.2   | Cocoa and      | 1.3   | 1.4   |
| Plants, Bulbs,   |       |       | Cocoa          |       |       |
| Roots            |       |       | Preparations   |       |       |
+------------------+-------+-------+----------------+-------+-------+
| Vegetables       | 1.6   | 2.3   | Cereal         | 3.8   | 2.4   |
|                  |       |       | Preparations,  |       |       |
|                  |       |       | Flour,         |       |       |
|                  |       |       | Starches,      |       |       |
|                  |       |       | Milk, Bakery   |       |       |
|                  |       |       | products.      |       |       |
+------------------+-------+-------+----------------+-------+-------+
| Edible Fruits    | 8.4   | 14    | Preserved food | 4.8   | 5.5   |
| and Nuts, Citrus |       |       |                |       |       |
| Fruits           |       |       |                |       |       |
+------------------+-------+-------+----------------+-------+-------+
| Soybean meal     | 74    | 58    | Miscellaneous  | 18.5  | 21.2  |
|                  |       |       | Edible         |       |       |
|                  |       |       | Preparations   |       |       |
+------------------+-------+-------+----------------+-------+-------+
| Grains           | 424   | 434   | Beverages,     | 1.6   | 1.6   |
|                  |       |       | Spirits and    |       |       |
|                  |       |       | Vinegar        |       |       |
+------------------+-------+-------+----------------+-------+-------+
| Edible Fruits    | 8.4   | 14    | Residues and   | 74    | 91    |
| and Nuts         |       |       | Waste from     |       |       |
|                  |       |       | Food           |       |       |
|                  |       |       | Industries     |       |       |
|                  |       |       | /Prepared      |       |       |
|                  |       |       | By-Products    |       |       |
+------------------+-------+-------+----------------+-------+-------+
| Lacs, Gums,      | 5     | 5     | Cotton         | 96    | 106   |
| Resins, Other    |       |       |                |       |       |
| Vegetable Saps/  |       |       |                |       |       |
| Extracts         |       |       |                |       |       |
+------------------+-------+-------+----------------+-------+-------+

Source: World Trade Atlas

**Market Entry Strategy**

**General suggestions to access the Colombian food market, raise sales
competitiveness and introduce new products:**

-   Calculate your level of competitiveness based on level of quality,
    price and service to meet increasing foreign competition.

-   Consider innovative marketing strategies when introducing new
    products. Social marketing strategy is a new approach. Sales
    generate from funding social programs. Leading supermarkets are
    deeply involved in social programs with customers' direct
    participation and alliances with NGOs. Exito has the "Children's
    program." Carulla customers are encouraged to donate small change
    for housing and educational plans.

-   Provide guarantee of consistent supply of products to large stores,
    hotel chains and institutional markets. Marketing strategies must
    meet the specific needs of the Colombian market.

-   Reinforce activities, such as trade exhibits, product sampling,
    advertising and campaigns.

-   Keep in mind that category managers are key people. They are in a
    position to offer services difficult to matched.

-   Be aware that Hyper/Supermarkets condition shelf space acceptance to
    discounts, promotions and/or additional cost.

-   Establish direct relations with leading companies to develop a low
    cost, direct sales approach and to offer products and services.

-   Develop a relationship with top executives, i.e, marketing
    directors, purchasing managers, and expose them to U.S. business
    practices. Take advantage of domestic food fairs and exhibits.
    Alimentec is the Colombian trade show for food products and
    ingredients. It takes place in Bogota every other year. Nest
    Alimentec will be in July or August 2008.

-   Include after-sales service and customer support, which are decisive
    purchasing factors.

-   Prepare promotional material in Spanish. Product literature should
    highlight products and services available. Communication media have
    a great impact on Colombian consumers*.*

# Advantages for U.S. Companies and Products

  -----------------------------------------------------------------------
  The Colombian food market is dynamic and efficient. Demand in Colombia
  for processed foods and other high-value food products has grown over
  the past years.

  U.S. continues to be the number one trading partner of Colombia. The
  U.S. accounts for 36% or (\$791 million) of food and agricultural
  imports.

  Most popular U.S. made products are well regarded by Colombian
  consumers, because they are perceived as being of good quality and good
  nutritional value. Many Colombians have traveled and studied abroad and
  have developed a taste for U.S. products.

  Alliances and merging with foreign companies are broadening the scope
  of the food business.

  Locally established multinational firms are taking advantage of their
  brand names to position new imported products.

  The readjustment of the retail market is paving the way for the new
  retail market structure in Colombia. The mini-market is a new and
  strong competitor of "Mom and Pop" stores, which continue to be the
  number one competitors of the hypermarkets/supermarkets.

  .

  Information and technology have become strong tools for food marketing.
  The Uniform Product Code and scanners at point of sale have been
  fundamental to collaborative planning, forecasting and replenishment
  aimed at increasing profitability and stock control.

  The Colombian government has changed investment policy to attract new
  foreign investors. Joint ventures, franchising and licensing agreements
  are increasing in number and value.

  The younger population (approximately 60% is under 30) has been
  stimulating the expansion of fast food restaurants. The deli business
  is one of the faster growing segments.

  Middle-income families are developing a taste for new and more
  sophisticated products. Colombian consumers are now more health
  conscious and selective shoppers.

  Changing lifestyles and the rise in female participation in the labor
  force (38%) will continue to stimulate demand for value-added and ready
  to eat food products.

  The shift from basic to high-quality foods is continuing. A surplus of
  ordinary low-price food products in conjunction with a shortage of
  high-quality food products. Colombians are now selective shoppers.

  Upscale and middle-income Colombian families are eating out more
  frequently, at least twice a month, devoting 24% of food spending for
  meals away from home.

  U.S. Food shows are excellent opportunities to introduce new products
  and set up personal relationships, meet customers and personally
  address their technical needs and requirements.

  Colombian business community knowledge of and confidence in U.S.
  business practices as well as geographical proximity help reduce costs
  of training trips, equipment transportation, etc.

  Supply channels have been streamlined. End-users increasingly are
  establishing direct contact abroad for sourcing new products and
  services.

  Colombia's strategic geographical position makes it a gateway to many
  other Latin America markets.
  -----------------------------------------------------------------------

**Challenges to U.S. Companies and Products**

  -----------------------------------------------------------------------
  Consumption of processed food is low according to international
  standards and highly price sensitive. Colombian households devote 34%
  of their earnings to food.

  Importers demand competitive prices, good quality and consistent supply
  availability. Category management practices by stores, including
  charging slotting fees for products, are overhead costs to be expected.

  Competition has intensified. Food products from countries around the
  world are found on the shelves of Colombian stores, and Colombian
  companies and foreign affiliates are launching a variety of new frozen
  and ready-to-eat products.

  Consumer prices for food and beverage have declined more than total
  consumer price index. "Price War" among retailers has become a
  permanent tool to maintain market share and increase sales.

  Colombian consumers are now either time-constraint consumers who seek
  good quality and essential products, or "cherry pickers" after sales
  and discount products.

  Innovation and new concepts for a low-cost product portfolio is a must
  to gain market participation. The portion-pack business is an expanding
  sales venue.

  Investment in new outlets continues as part of the effort to penetrate
  regional markets and attract unattended consumers.

  Private brands are expanding rapidly though still incipient and
  limited. They represent 2.5% of total sales. Private brand margins are
  higher than other brand margins (20,4%). Similarly, private brand
  prices are 25.6% lower than third party prices.

  Franchising is an excellent opportunity for fast food restaurants,
  particularly through the expanding Gasmarts. Investment and foreign
  trade are keystones for economic development in the years to come.

  Procurement Law 80 regulates purchases and contracts by the government
  and state industrial and commercial enterprises. Given equal
  contracting conditions, the offer of goods and services of domestic
  origin are preferred. The GOC urges all official entities and
  decentralized industrial and commercial government organizations to
  \"buy Colombian\".

  For sales to the government, either directly or through international
  tenders, foreign bidders must: have legal representation in Colombia,
  register with the Colombian Chamber of Commerce under the so-called
  \"Registro Unico de Proponentes\" (Bidders Register), and be
  pre-classified and pre-qualified by the Chamber and, in some cases, by
  the Colombian government contracting agency.

  Colombia negotiated a Free Trade Agreement with the United States. The
  Agreement is undergoing legal analysis in both countries and it is
  expected to be in place in early 2008.

  U.S. suppliers should intensify market advertising and promotional
  campaigns and sampling to compete with the wide range of quality
  products available. After-sale service and customer support are also
  important purchasing factors after quality and price.

  U.S. suppliers should encourage buyers to tour suppliers/producers
  facilities and have business representatives tour their plants.

  The import process still has many layers. However, the GOC has
  introduced key modifications to significantly simplify the paperwork.
  Many import/export procedures and customs clearances can be done by
  internet.
  -----------------------------------------------------------------------

#  

# Section II Exporter Guide

# FOOD LAWS AND IMPORT LICENSING REQUIREMENTS

Food Legislation: The basic piece of legislation dealing with food
products and human health in Colombia is Law 9 of January 24, 1979
([www.invima.gov.co](http://www.invima.gov.co/) under Normatividad then
Normatividad de Alimentos). All decrees and regulations produced since
then are based on the above-mentioned Law.

**Import Licensing**: The Colombian Government maintains control over
imports through the Ministry of Commerce, Industry and Tourism (MOCIT).
All responsibilities in dealing with Colombian foreign trade have been
transferred to the MOCIT including the issuance of import licenses and
the registration of imports.

Because most, if not all, agricultural commodities require permits or
have to be approved by another government agency (i.e., the Ministry of
Agriculture), they need an import registration at the MOCIT to enter the
country.

For food and agricultural products there are two import categories:

1.  **Licencia Previa.** Imports that need prior government approval.

2.  **Libre.** Imports free of pre-government approval. In this category
    products can entry the country without restriction. However,
    products in this category must be registered at the MOCIT.

Participating government agencies:

MINISTRY OF AGRICULTURE/GENERAL -- Products subject to import
registration in order to restrict imports for non-scientific reasons,
either to protect local production from import competition or to
regulate imports under tariff-rate quotas. These include products such
as poultry parts, which are banned, and products subject to tariff-rate
quotas (beef, corn, sorghum, rice and cotton).

INVIMA - Import registration with INVIMA (the equivalent of FDA in the
U.S.) under the Ministry of Social Protection applies to most products
destined for the final consumer, such as meat and food products for
retail sales. While the registration process can sometimes be
complicated and costly (particularly for products destined for retail
sale), Invima has not used this process to prohibit imports.

ICA, Colombian Agricultural Institute, is the Ministry of Agriculture
agency responsible for sanitary and phyto-sanitary issues (the
equivalent of FSIS and APHIS). ICA is responsible for products requiring
sanitary or phyto-sanitary registration such as meat, fresh fruits,
vegetables, dairy products and animal inputs, including pet food. During
the

Trade Promotion Agreement (TPA) negotiations, Colombia agreed to allow
the imports of bovine meat and products without age restrictions no
later than October 31, 2006. However, since Colombia has not officially
changed its import requirements, for purposes of this report, beef and
beef products are still considered ineligible products. Colombia has
also agreed to allow uncooked poultry imports from ten states previously
banned because of Avian Influence. As noted above, for unprocessed plant
products, importers are also required to have an import permit before
importing meat and poultry products.

**Tariff Rates**

Most processed foods are assessed a 20 percent ad‑valorem import duty.
However, some high-value food product imports, such as fresh/chilled and
frozen pork and chicken parts, are subject to the Andean Community\'s
price band and reference price system, which can markedly increase the
Colombian import duty. The U.S. Government views the reference price and
price band systems applied by Colombia to be inconsistent with
Colombia\'s World Trade Organization obligations. The price band system
distorts trade and does not operate in a transparent manner. Colombian
processed food imports from Chile and member countries of the Andean
Community (Peru, Ecuador and Bolivia) enter duty‑free. This, combined
with lower transport charges, provides a significant cost advantage to
import from regional suppliers rather than to purchase from the United
States. This is particularly true for fresh and processed fruit, wine,
and at times,meat.

For those U.S. products subject to the price band system, import duties
are calculated based upon the CIF adjusted floor, ceiling, and reference
price levels determined by the Andean Board of Directors. The Andean
Community establishes annual ceiling and floor prices every April. The
Andean Community adjusts the reference prices every two weeks. If, the
applicable reference price falls within the floor and ceiling price
band, the import duty is calculated by applying the common external
tariff rate for the Andean Community to the reference price. When the
reference price falls below the floor price, a variable levy, or
surcharge, is applied, which is based on the difference between the
floor price and the reference price. This surcharge is levied in
addition to the applied duty. Conversely, when the reference price
exceeds the ceiling price, a reduction is made to the applied duty,
based on the difference between the reference and the ceiling prices.

The following illustrates how Colombia\'s import duties are calculated
for those U.S. food products subject to the price band system. In the
example below, we have calculated Colombia\'s import duty that would
have be assessed on imports of chicken parts arriving at Colombian ports
September 16-30, 2006:

Price Band Ceiling Price \$1,700 per ton

Price Band Floor Price \$1,510 per ton

Reference Price \$1,022 per ton

Basic Duty Rate 20 percent

Variable Surcharge = (Floor Price - Reference Price) \* (1+Basic Duty
Rate)/Reference Price

Total Import Duty (77 percent) = Basic Duty Rate (20 percent) + Variable
Surcharge (57 percent)

The Total Import Duty is updated and published on the web page of the
Andean Community
(http://www.comunidadandina.org/politicas/franja_circular.htm) twice a
month. The duty paid is the total import duty (77 percent) times the
declared import value.

**Value-added Tax (VAT)**

-   Most imports are subject to the VAT (value-added tax).

-   VAT is assessed on the CIF value plus import duties.

-   The VAT fluctuates between 2% and 16 %

-   VAT for Liquors and wine is 35%.

-   Law 788 of 2002 aimed to reform the tax system, modified the VAT for
    a number of food and agriculture products:

    \*extended the VAT to imports of several agricultural products,
    including some feed ingredients, such as soybean meal and soybean
    oil.

    \*exempted from VAT fresh, chilled or frozen meats; fresh, chilled
    or frozen fish; some milk and skim, fresh cheese, milk preparations
    for infant use, eggs in shell and eggs for hatching.

    \*excluded from VAT more than 124 products including some meats,
    fruits, vegetables,

    milk and grains.

-   Imports of feed grains are levied a VAT of 10%

**Pricing Products**

-   Import duties are quoted ad-valorem on the CIF value of shipments.
    Retail prices of consumer-oriented imported products are generally
    60 to 120 percent above FOB prices.

-   Freight and insurance costs are 10 to 15 percent of FOB values.

-   Other factors affecting import costs and retail price are peso
    revaluation, inflation, and financing.

-   Local manufacturers usually work with a markup varying from 15 to 30
    percent and wholesalers from 15 to 20 percent. Profit margins for
    consumer goods may reach 20 to 30 percent.

**Sanitary and Phytosanitary Measures and Other Licensing Requirements**

## Product Health Registration

All processed retail food items, including products imported in bulk for
repackaging for retail use without further processing, must be
registered and approved by the National Institute for the Surveillance
of Drugs and Food (INVIMA), an agency of the Ministry of Social
Protection (decree 3075/97). INVIMA charges a registration fee ranging
from \$534.40 to \$1,220.70 per product. According to Decree 3075 of
1997, product registration is not required for:

-   Products that are not subject to any transformation, such as grains,
    fruits, fresh vegetable, honey, etc.

-   Products of animal origin, which are not subject to any
    transformation process.

-   Products used as raw materials by the food industry or HRI sector in
    food preparation.

A transformed product is defined by the GOC as having been subjected to
processing that resulted in a change in its internal structure.

INVIMA registration is valid only for the applicant (exporter or
importer) and the manufacturer specified in it. Whenever the U.S.
exporter wants to change its Colombian importer, there are two
possibilities:

\(a\) If the U.S. exporter is the applicant for the INVIMA registration,
he must submit an application for modification to INVIMA (cost 83,533
pesos or about \$36.32).

\(b\) If the Colombian importer is the applicant, the U.S. exporter must
initiate a new registration process, specifying his new importer(s).
Afterwards, he may change his importer(s) whenever he deems it
advisable. The U.S. exporter must apply through his legal representative
in Colombia or a lawyer.

INVIMA registration is valid only for the specifications (e.g.,
presentation and size) mentioned in the registration. If another
presentation of the same product is to be imported, the registering
company needs to inform INVIMA in writing of the new product.

INVIMA registration of processed foods requires: (1) a written document
from the manufacturer stating that it manufactures the product; and (2)
a certificate of free sale stating that the products are approved for
human consumption in the United States. This certificate needs to be
issued by a U.S. government (state, local or federal) health authority.
Although not strictly required, INVIMA registration is facilitated if a
description of the manufacturing process and a list of the ingredients,
including any additives, preservatives, and colorings (dyes), is
submitted. Since Colombia implemented the Hague Convention of October 5,
1961 with Law 455 of August 4, 1998, facilitating import documentation,
the above listed documents must carry an "apostille" stamp. The
"apostille" stamp fee amounts to \$20 each and it is produced by
different authorities in each State, i.e. a Notary or a State Secretary
or Under Secretary. This procedure replaced the notarization by the
Colombian Embassy or a Consulate in the United States and by the
Ministry of Foreign Affairs in Bogota. A translator approved by the
Ministry of Foreign Affairs must translate these documents into Spanish.

INVIMA charges a registration fee ranging from \$534.40 to \$1,220.70
per product. After the submission of all required documentation, product
registration by INVIMA takes about three working days (although we have
received reports that this can take longer). Internet can carry out most
of the product registration process. After issuing the product
registration, INVIMA analyses the documents provided by the importer and
may request additional information within a given period. Some importers
complain that this procedure may result in additional requirements that
become a non-tariff barrier to trade.

## Sanitary Permit

Products used as raw materials by the food industry or HRI sector in
food preparation do not need an INVIMA registration, but they do need a
sanitary permit from the Ministry of Agriculture's Colombian
Agricultural Institute (ICA). ICA is responsible for the issuance of
import sanitary permits for animal products, vegetables, fruits, grains,
pet food and agricultural inputs, including seeds and GMO's. The permit
details the phyto-sanitary and zoo-sanitary (SPS) import requirements
for the specific product. The Colombian importer must first obtain the
import permit from ICA, before requesting an import registration from
the MOCIT. The importer should supply the exporter with the ICA import
permit for submission to USDA. USDA then issues a sanitary export
certificate referencing the requirements in ICA's import permit. No
shipments should be loaded and transported without the submission of the
sanitary permit. Whenever ICA issues new health requirements, the health
agency in the US is notified to see if it can comply with the new
requirements.

For ICA approval, the product must: (1) come from a USDA inspected
facility; (2) be free of disease; (3) be inspected by USDA prior to its
shipment and be accompanied by a USDA health certificate; and (4) be
inspected by an ICA veterinarian upon arrival in Colombia.

**Registration Requirements**

**Company/Importer Registration**

Every Colombian importer must be registered with the Ministry of
Commerce, Industry and Tourism (MOCIT). U.S. exporters seeking to sell
to a Colombian firm should ascertain that the Colombian importer has
obtained the legal authority to import agricultural products by
completing the MOCIT registration process. Once registered, the importer
or importing company enjoys the legal right to import any agricultural
product.

Most agricultural imported products require an import registration form
(cost 30,000 pesos or about \$13) issued by the MOCIT. Import
registration approval takes about two working days.

**Labeling and Marking Requirements:**

The Government of Colombia (GOC) requires country-of-origin labeling for
processed foods. The GOC, however, does not classify frozen vegetables
as a processed food and, therefore, no country of origin labeling is
required. Also, fresh fruit and vegetables do not require country of
origin labeling.

The GOC issued resolution 0485 on February 25, 2005 through the Ministry
of Social Protection (previously known as Ministry of Health)
establishing labeling requirements for canned food and raw food
materials. The regulation was implemented on September 15, 2005. The
label must contain the following information: food product name, list of
ingredients, net content and drained weight, producer name and address,
origin country, lot identification, date marking and instructions for
product conservation, instructions for product use, and sanitary
registration number. These requirements apply to both domestic and
imported canned food products and raw food materials. GOC officials have
stated that stickers are admitted on the imported products, but they
must contain the information of the product stated in the original label
translated into Spanish. The most important information is lot
identification number and expiration date.

[]{.mark}

Imported processed food products that are not destined for further
processing must comply with the labeling requirements mentioned above.
GOC labeling requirements for processed foods do not address the
question of ingredient origin. Therefore, if an imported food item
contains ingredients from more than one country, for example, U.S. and
Canadian peas in the same frozen package, the label must only identify
the processor's name and address and the country where the product was
produced. The GOC's product labeling requirements for imported processed
foods do not require that the exporter identification information be
affixed in a specific part of the package.

Product labeling information on imported processed products must be
present at the point of retail sale. The responsibility for this
labeling information rests with the importer, not the retailer. Many
Colombian importers arrange for this information to be placed on the
product by the exporting firm, before it enters Colombia.

For processed products shipped with Spanish labels, the following
information must be shown: product name, name and address of importer,
name and address of processor, net contents in metric units, list of
ingredients, Ministry of Social Protection (INVIMA) registration number,
any recommended method of storage/conservation, and product expiration
date, if appropriate

Imports that are destined for further processing, such as mechanically
deboned chicken, also require country-of-origin labeling. The GOC does
not require country-of-origin labeling for imported bulk-packed or
consumer-packed fresh fruits and vegetables. The GOC does not require a
sticker/label indicating country of origin on individual pieces of fresh
fruit. Colombian consumers, therefore, seldom are aware of the origin of
imported fruit and vegetables.

Labeling for Food Products. Food products that are canned, bottled,
filled or packed by Colombian marketing agents such as chain stores,
supermarkets, delicatessen, etc for further commercialization must be
labeled in accordance to this resolution and must contain at least the
following information:

1.  Name

2.  Ingredients list

3.  Net content

4.  Name and address of producer or importer

5.  Origin country

6.  Lot identification

7.  Expiration date

8.  Preservation method or system

**Import Documentation**

The following steps must be accomplished in order to carry out an
import:

a\) The exporter must provide a pro-forma invoice to the importer. The
invoice should contain the specific product name, quantity, weight, and
value per unit.

b\) The local importer should verify the Colombian harmonized schedule
to see how the product is classified and its import requirements.

c\) Based on the above information, the importer requests a commercial
invoice from the exporter, including the currency used for the
transaction, FOB or CIF prices, and terms of payment.

**Importers should also take into consideration the following
recommendations:**

1)  Where required, obtain sanitary permit for products from the
    Ministry of Agriculture\'s Colombian Agricultural Institute (ICA).
    All domestically produced and imported food products require a
    sanitary registration approved the National Institute for the
    Surveillance of Food and Medicines (INVIMA), which is part of the
    Ministry of Social Protection (decree 3075/97).

2)  Buy and fill out the Import Registration form. File the Import
    Registration form with the MOCIT.

3)  Obtain approval from MOCIT for the Import Registration Form or
    Import License

4)  Make arrangements with a financial entity for payment of the
    importation either through a letter of credit or direct payment.

5)  Ask the exporter to ship goods to a Colombian port along with the
    packing list and certificate of origin that includes a statement
    that the product is approved for human consumption, and expiration
    date.

6)  Request the bill of lading from the transportation firm.

7)  Make arrangements, with the SIAs or Customs Intermediary Entities to
    receive the merchandise. All merchandise must be transferred to
    either bonded warehouses or free trade zones. Transfers must be done
    within two days from airport arrival or five days from seaport
    arrival. Products are allowed a maximum of two months from the
    arrival date while undergoing customs clearance. A two-month
    extension is possible. If extension period expires, products are
    declared abandoned by Customs.

    Note: The importer must keep import documents for a period of not
    less than five (5) years. Documents must be in Spanish.

# Patents and Trademarks

-   The Superintendence of Industry and Commerce under the MOCIT is in
    charge of patents and trademarks.

-   Protection of patents, trademarks and plant varieties is based on
    regulations by the Andean Community of Nations (CAN). These are
    generally consistent with international standards for protecting
    intellectual property rights, and also govern protection of
    industrial secrets.

-   Patents have a 20-year term of protection.

-   Trademark registrations have a ten-year duration and may be renewed
    for successive ten-year periods.

-   Priority rights are granted to the first application for a trademark
    in an Andean Community country.

-   Colombia is a member of the Inter-American Convention for Trademark
    and Commercial Protection and the Treaty of Patent Cooperation. The
    Andean Community decision on patent and trademark protection also
    provides for protection of industrial secrets.

    **Samples**

-   As a general rule, samples require the same documents as commercial
    imports.

-   Samples do not require an import license, registration form or
    import duty payment when

    Samples are consigned to a designated free trade zone, bonded
    warehouse or imported

    on a temporary in-bond basis.

# Courier and Express Shipments

-   Courier or express shipments not exceeding US\$ 1,000 in value and
    20 Kilograms in weight are freely imported into Colombia.

```{=html}
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-   Air and surface shipments of products are allowed.

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```
-   The number of units of the same product should not exceed 6 units to
    be considered a sample.

# Distribution and Sales Channels

-   The Colombian food industry ranges from state-of-the-art processing
    food companies to all types of retail outlets, including
    sophisticated hypermarkets, supermarket chain stores, department
    stores, specialty stores, mini-markets, wet markets, cooperatives,
    street vendors and truckers who engage in door-to-door peddling.

-   Radio and TV sales, as well as Internet e-commerce sales are
    becoming more popular.

-   Direct marketing through credit card promotions, flyers, polls, and
    sales calls to either home or office sites are also popular,
    including home delivery services. Chain stores and large
    distributors have their own catalogs for phone, mail orders and
    internet purchases, which can be paid for with cash, check, or
    credit card.

-   Mini-markets, Mom & Pop stores, wet markets and traditional stores
    maintain 50% market share.

-   The number of suppliers has been growing along with those providing
    private brands.

-   Negotiations between the new retail structure and suppliers have
    changed. Suppliers deal with fewer but stronger retailers.

# Joint Ventures/Licensing

-   Joint ventures, franchising and licensing agreements are increasing
    in number, value, and importance, which has improved
    competitiveness.

-   The Colombian government investment policy encourages foreign
    investments.

# Sales Representative

As a general rule, it is advisable to appoint a local agent or sales
representative to help with import procedures, sales promotion and
after-sales service, in spite of the fact that Colombians prefer to deal
directly with manufacturers or through their export divisions, rather
than through outside representatives or brokers.

**Importers And Distributors**

-   The United States traditionally has been Colombia\'s main trading
    partner. Colombia is considered a natural market for U.S. products
    and technology, because of its proximity.

-   The bulk of purchases from the U.S. are made through
    well-established local importers, representatives and distributors.

-   Importers offer a full line of products to meet the domestic demand
    and to expand market possibilities.

-   Competition in the food market has intensified and supply channels
    have been streamlined. There are now a few large players with strong
    negotiating and purchasing power. Large numbers of end-users are
    purchasing directly from suppliers and/or manufacturers abroad,
    avoiding local representatives.

-   Colombian businesses are establishing direct contacts abroad to find
    new products and services. FAS/Bogota has detected an increasing
    interest in looking for new food products. This interest has been
    fueled by the marketing activities carried out by this office.

-   Suppliers of large store and hotel chains and institutional markets
    must provide guarantees of supply availability consistent of
    products.

**Top Colombian Importers and Distributors of High Value and Processed
Food**

  --------------------------- -------------------------------------------------
  **Importer**                **Products**

  Frutcom S.a.                Apples, grapes, kiwis

  Nestle of Colombia          Poultry fat, condensed milk, lactose/whey, tomato
                              sauce, bakery products, biscuits, cacao
                              preparations, cereals.

  Italcol Occidente           Cookie meal, meat meal, yellow grease. Oilseed
                              meal.

  Harinera del Valle          Corn, wheat, sauces, margarine, baked products.

  Carulla - Vivero            Vitamins, cheese, margarines, dairy spreads,
                              bakery mixes, bakery enhancers, wines.

  Grasas S..A.                Sunflower oil, bovine animal fats, edible mixture
                              of animal fats/oils of fish, soybean crude oil.

  Industrias del Maiz         Glucose, sugars, bakery enhancers, mixes and
                              pastas.

  Colombiana de Comercio S.A. Soybean oil, soups, frozen potatoes, ketchup,
  Corbeta Alkosto             tomato sauce, pasta, canned tomatoes, bakery
                              mixes

  Aceites y grasas vegetales, Bakery enhancers, shelled eggs, chocolate blocks,
  ACEGRASAS                   cookies, confectionary

  Alimentos Polar de Colombia Cereals, orange juice, mineral water, apple
  S.A.                        juice, tomato juice

  Effem                       Confectionery, pet food ingredients.

  Nacional de Chocolates      Tuna, peanuts, almonds, soups, broths, cocoa,
                              lactose/whey, cereals.

  Agrinal/Agribrands-Purina   Sunflower seeds, soybean oilcakes, dog/cat food,
                              fish meal.

  Agrodex                     Processed inputs for fast foods, Cheese,
                              poultry/turkey preparations, spices, bakery
                              products, etc.

  FEDCO                       Dietetic foods, baby foods and formula, baked
                              foods, cereals, candy and chocolates, food
                              supplements, salad dressings, fruit juices, etc.

  Rica Rondo                  Frozen pork, edible swine offal, and other edible
                              pork.

  EMCD Groupe Casino Americas Beer, wine, chocolates, candy, baking mixes,
                              carbonated beverages, baby foods and formulas,
                              condiments, processed cheese, cooking and salad
                              oils, canned fruits, dried fruits, cereals, jams
                              and jellies, pastas, salad dressings, snack
                              foods, etc.

  Avidesa Mac Pollo           Corn, fish meal,, spices, cookies.

  Comerfruit Ltda.            Grapefruits, prunes, apples, prunes, grapes,
                              oranges

  Comestibles Alfa            Vinegar, meat and fish bases, canned foods

  Congrupo                    Food preparations, sauces, pickles, ketchup,
                              vinegars, pasta, confectionary, mustard, soup
                              bases

  Crepes and Waffels          Canned fruits and vegetables, mustard, cappers
                              and olives

  Distribuidora de vinos y    Wine, whiskey, seasonings, breakfast cereals,
  licores                     canned fish products, cookies, vegetables and
                              grains.

  Frigorifico de la Costa     Fruit preparations, olives, palm hearts, capers,
                              prunes, fesh fruits, nuts, etc.

  Importaciones y             Fresh fruits.
  Exportaciones Fenix         

  Frigorifico Suizo           Frozen pork, pig/poultry fats, edible offal.

  Vigomez                     Fresh apples, pears, grapes, kiwis.

  Quala S.A.                  Dried onions, ice cream flour, yeast, animal
                              fats.

  Productos alimenticios El   Soybean oilcake, corn, animal feed mixes, fish
  Galpon                      "pellets.

  Griffith Colombia S.A.      Pastry, vegetables, spices, lactose, isolated
                              proteins, whey.

  Unilever Andina             Bovine fats, coconut and soybean oil, cereal
                              flours, tomato sauce.

  Almacenes Exito             Tuna, frozen orange juice, bakery products,
                              pastry, marmalade, cocoa preparations, Green
                              peas, onions, garlic, fresh fruit, dry plums,
                              olive oil, wines, salad dressings, sauces,
                              pastas, fresh fruits,
  --------------------------- -------------------------------------------------

**Standards**

-   ICONTEC (Colombian Institute of Technical Standards and
    Certification), accredited by the Superintendency of Industry and
    Commerce (SIC) as a certification entity, is responsible for the
    development of technical standards. SIC performs under the MOCIT.

-   ICONTEC is a member of the International Standards Organization
    (ISO).

# Section III. Market Sector Structure and Trends

**Hotels and Restaurants and Institutional Sector (HRI)**

HRI sector sales of food and beverages in Colombia were estimated at
\$1.8 billion dollars in 2005 and are expected to grow 6 percent in
2006. The market has benefited from the arrival of world-class
hypermarkets, such as Makro and Carrefour, which are oriented toward
serving the food service sector. There are other Colombian hypermarkets
such as Alkosto, Carulla-Vivero and Almacenes Exito who have developed
strategies to serve the food service sector. Colombia is experiencing an
increase in hypermarket chains and a decrease in the number of HRI
sector importer/distributors. Foreign processed food brokers, who are
the major suppliers of the Colombian HRI sector, are facing strong
competition from domestic producers. Distribution channels for hotels
and restaurants have become more efficient, while the system for sales
to institutions is still relatively small and undeveloped. Public
institutions use very few imported products.

Colombia currently has relatively high duties for processed food
products imported for the HRI sector (generally around 20 percent) and
strict registration requirements that cost an average of \$800 per
product registered. The rising value of the Colombian peso relative to
the U.S. dollar and strong competition in the restaurant sector have,
however, made U.S. food products more attractive to local purchasers.
The negotiation of the Free Trade Agreement with the U.S. has generated
more interest in U.S. food products.

Changes in consumer taste and consumption patterns and the rise in women
participating in the labor force (38%) have demanded new market
strategies. The remarkably young population, 58%, living in urban areas,
has new tastes and preferences and is more health-conscious and
selective. With rising participation of women in the workforce and
greater use of fast food restaurants, demand for new high-value products
is increasing. Current consumer trends indicate that buying decisions
are increasingly based on quality and price. There is a general
perception that U.S. products are of good quality and value.

The hotel and restaurant sector has potential for growth driven by the
tourism sector, though it continues to be affected by persistent
internal conflict. The government campaign "live Colombia and travel in
it" has fostered in-country tourism through out the country, with a
significant portion of the tourists traveling to Cartagena and Santa
Marta on the northern coast. Santa Marta is the only tourism destination
with large hotels catering exclusively to tourism. Foreign tourism is
still relatively small and generally concentrated in the historic
colonial walled city of Cartagena, while international business travel
is generally to Bogotá, Medellin, Cali, Cartagena and Barranquilla.

Quick service and fast food restaurants, especially franchises, are
expanding rapidly. Colombians are getting more inclined to eat in fast
food restaurants due to working schedules, prices, and convenience. Most
of the fast food restaurants are American franchises, although there are
several local fast food restaurants that use American techniques and
marketing strategies. Currently, away-from-home meals represent nearly
24 percent of food spending. High and upper-middle income groups are
interested in foreign cuisine and are eating out more frequently, at
least twice a month, devoting 24 percent of food spending to meals
outside the home.

Most hotels and restaurants in Colombia buy food products from food
importers and retailers specialized in the food service. Fruits and
vegetables are mostly bought at wholesalers. Dairy products are bought
directly from Colombian dairy plants and distributors. There are ethnic
restaurants with specialized Italian, French, Mexican, Cajun, Japanese,
Chinese, etc. menus. Those restaurants buy the essential ingredients for
their menus from specialized importers. The restaurants that import
directly are local restaurants like "Crepes and Waffles" and owners of
upscale restaurants. International food chain franchises such as
McDonalds and Fridays also import directly.

Colombia has a total population of 42 million and the restaurant sector
generates an estimated 300,000 direct jobs, while the hotel sector
generates 54,000 direct jobs. Colombia continues to be our largest
export market in Central and South America. Economic growth in 2005 was
5.2% and it is projected to grow over 5% in 2006.

# Food Processing Industry

In Colombia, the food and beverage processing and packaging equipment
industry is privately owned, except for a few government distilleries. 
Sector companies range from small family-owned enterprises to large
Colombian, U.S. and third country multinationals such as Kellogs,
Nestle, Compania Nacional de Chocolates, Noel, etc.  The sector is an
important component of the national economy that contributes with
approximately 10 percent to the GDP, and generates about 120,000 direct
jobs

National and international competition has influenced the sector, which
is recognized by its high initiative, permanent efforts to maintain
state-of-the-art technology, continuous product innovation and their
retail presentation. The most developed sub-sectors are those that
process: dairy; sugar; poultry; edible oils and greases; cacao,
chocolate, confectionaries and non-alcoholic beverages.

Product lines have diversified and new products have entered the market.
Such is the case of the dairy industry with lactose free products, the
meat industry with low fat products; the baked goods industry with high
fiber and whole-wheat products and the oil and fats industry with low
cholesterol cooking oils.

Colombia is a major producer in many intermediate and consumer-ready
categories such as sauces & spices, dairy products, breakfast cereals,
confectioneries, baked goods, poultry feed, pet food, oils and
margarines and dairy products.

Top processing companies, such as Colombina, Alpina, Levapan, Industrias
del Maiz, Invernacional de Chocolates, etc. successfully compete in
international markets. Foreign food processing affiliates provide a
large portion of domestic processed food. Some of them have a number of
their brand lines produced by affiliates abroad.

Specific products showing stable sales are : fresh/frozen chicken,
turkey and pork, and poultry , mechanically deboned chicken meat,
cheese, fresh fruits, breakfast cereals, wine and beer, and assorted
snack foods. Feed grains represent the bulk of grain imports. Almost all
corn imports are directed to the feed industry, mostly for poultry. The
United States is the dominant supplier.

Food processing industries rely heavily on imported inputs, such as
thickeners, preservatives, modifiers, flavorings, dry mixes for sauces,
and spices.

Company mergers to improve the efficient use of installed capacity are
frequent as well as implementation of investment in expansion plans.

**The Retail Food Market Sector**

The supermarket sector in Colombia is one of the most modern in Latin
America, with preliminary sales estimates of \$4 billion in 2005. Fierce
competition characterized Colombia's retail sector in 2004, causing
shrinkage in profits. Consumers have benefited from the "price war"
among competitors. The sector is consolidating a massive structural
change initiated in recent years. Strategic alliances, such as
Carulla-Vivero and Exito recently took place in a frantic effort to
modernize and capture market share.

World-class hypermarkets, such as Makro and Carrefour, made their first
incursions into the country in 1998 and continue to expand. Carrefour´s
marketing strategies led it to a larger market share and a strong
position in the industry. In 2003 Carrefour purchased 35% of the stocks
held by the Grupo Santodomingo and 10% of those owned by the Spanish
company Sigla, ending up with a 100% ownership of the chain in Colombia.
Other significant acquisitions, such as the purchase of 28 percent of
Carulla by the U.S. based New Bridge, and of 28.6% of Exito by Casino (a
French enterprise) have reshaped the sector. Exito had previously bought
out the Cadenalco group, one of it's largest rivals, and in 2003
acquired the Comfamiliar chain; The latest negotiation is the purchase
of 19.8% of Carulla-Vivero assets by the number one retailer in Colombia
Almacenes Exito. This transaction took place, by agreement, in New York
on August 19, 2006. Olimpica in turn, purchased the Febor chain (former
Central Bank employees Fund). Furthermore, the arrival of French giant
Carrefour and Holland retailer Makro in Colombia, as well as the
sustained strength of local players such as Exito, Carulla, Alkosto,
Olimpica, Colsubsisio and Cafam, have unleashed a wave of concentration
in 50 percent of the retail market. On the other hand, convenience
stores are a new sales venue and are expanding in the form of GasMarts.
As a result, supply channels have been rapidly streamlined, and
end-users are increasingly establishing contacts abroad. Colombian
importers are constantly seeking alternatives to reduce high costs. The
new retail market structure in Colombia and the production-consumer
chain has forced distributors/suppliers to switch from being passive to
active agents.

Despite rapid modernization in the retail sector, traditional Mom \'n
Pop stores continued to consolidate as one of the most important
distribution channels in the country. They have regained the near 50
percent of the market share they had in the past, at the expense of the
big retailers and have been extremely resilient in the face of massive
modernization in the sector. The reason for the expansion is due to
services, such as credit, small-quantity sales of bulk products, and a
proximity that appeals to the vast number of middle and lower-income
consumers, services that can not be provided by the large
hypermarkets/supermarkets.

Additional factors are expected to contribute to further expansion of
the retail food market: market leaders are investing in construction of
new modern shopping centers in which super/hypermarkets and cinemas are
the cardinal points; sales areas of between 6,000 and 12,000 sq meters,
offer a complete range of products and fulfill the increasing demand for
one-stop shopping. Investment also includes state of the art technology,
tailored logistics to save consumers time and money, remodeling and
improvement of service areas.

# Competition, Consumer- Ready Food

Colombia is a strong competitor in the production of:

  ---------------------------------- ------------------------------------
  Product                            Company

  Dairy products                     Alpina, Colanta, Parmalat, Purace,
                                     Nestle

  Breakfast cereals                  Kellogg's, Nestle, Quaker

  Snacks                             Frito Lay -Margarita, Savoy Brands,
                                     Yupi, Nabisco Royal, Kraft Foods

  Baked foods                        Levapan, Bimbo, Ramo, Comapan

  Confectionery                      Colombina, Noel, Warner Lambert,
                                     Nacional de Chocolates,Chiclets
                                     Adams, Italo

  Oils and margarines                Grasas S.A.,Unilever, Lloreda,
                                     Acegrasas, Gravetal

  Dry mixes for sauces, mayonnaise,  Unilever-Disa-Best Foods,
  ketchup, mustard, jellies,         California, La Constancia, El Rey,
  condiments                         Productora de jugos, Frutos del
                                     campo

  Poultry feed and pet food          Solla, Purina, Finca, Italcol,
                                     Contegral, Nestle Pet care,etc.

  Canned food products               La Constancia, Fruco, Comapan

  Canned tuna fish                   Van cans, Tune
  ---------------------------------- ------------------------------------

# Best Products Prospects

Colombia is a growing market for value-added food products. Surveyed
retailers and producers feel there is significant potential for new
products in almost all food product categories.

Healthy and ethnic food categories are especially new fast growing.
Also, wines and gourmet products are penetrating the market with
excellent results. Frozen products represent 38% of total sales,
followed by chilled products at 34% and, dry products at 24%.

Fast food chain restaurants are the largest buyers of frozen products.

**Business Practices and Habits**

**Travel Warning and Visas**

# Related Reports

+-----------+----------------------------------------------+----------+
| **Report  | #### Report Name                             | **Date** |
| No.**     |                                              |          |
+-----------+----------------------------------------------+----------+
| CO-5021   | Retail Food Market                           | 11-22-05 |
+-----------+----------------------------------------------+----------+
| CO-6001   | Oilseeds                                     | 07-29-05 |
+-----------+----------------------------------------------+----------+
| CO-6002   | Grain and Feed                               | 03-13-06 |
+-----------+----------------------------------------------+----------+
| CO-6003   | HRI -- Food Service Sector                   | 03-15-06 |
+-----------+----------------------------------------------+----------+
| CO-6008   | Trade Policy Monitoring Report               | 06-22-06 |
+-----------+----------------------------------------------+----------+
| CO-6009   | Biotechnology                                | 03-17-06 |
+-----------+----------------------------------------------+----------+
| CO-6013   | FAIRS Exporter Certificate                   | 09-28-06 |
+-----------+----------------------------------------------+----------+

For further information, visit the FAS home page at
[http://www.fas.usda.gov](http://www.fas.usda.gov/).

# Post Contact Information

**Office of Agricultural Affairs**

**U.S. Embassy, Bogota, Colombia**

Calle 22D Bis, No. 47-51

Apartado 3831

Bogota, Colombia

**R. Todd Drennan**

Agricultural Attaché

U.S. Mailing Address: U.S. Embassy - Bogota

Agr Section, Unit 5119

APO AA 34038

Phone: (57-1) 315-2138

Fax: (57-1) 315-2181

Email: agbogota@usda.gov

# Darya Chehrezad

APHIS Attaché

(Agricultural and Plant Health Inspection Service)

U.S. Mailing Address: U.S. Embassy - Bogota

Agr Section, Unit 5103

APO AA 34038

Phone: (57-1) 315-2192

Fax: (57-1) 315-2191

Email: usdacol@colomsat.net.co

**COLOMBIAN GOVERNMENT CONTACTS**

**Ministry of Agriculture and Rural Development**

Colombian Agricultural Institute (ICA)

(Phytosanitary and Zoosanitary requirements office)

Calle 37, No. 8-43, Piso 4

Bogotá, Colombia

Deyanira Barrero-León

Deputy Manager Animal Health Protection and Regulation

ICA -Instituto Colombiano Agropecuario

Calle 37 \# 8-43, Of. 401

Bogotá, Colombia

Tel. (57-1) 320-3654, 332-3700/ext: 250 259

Cel pone: (315)899-7032

Fax: (57-1) 232-4695

e-mail: subgerencia.pecuaria@ica.gov.co

Jaime Cardenas, Head

Plant Inspection Guarantee-Health Risk

ICA -Instituto Colombiano Agropecuario

Calle 37 \# 8-43, Of. 401

Bogotá, Colombia

Tel: (57-1) 232-4709

Fax: (57-1) 288-1753

E-mail:sanidad.vegetal@ica.gov.co

**Ministry of Social Protection**

National Institute for the Surveillance of Food and Medicine (INVIMA)

Division of Food and Alcoholic Beverages

(Food Products registration and Health permits)

Carlos A. Robles

Carrera 68D \# 17-21 Zona Industrial

Bogotá, Colombia

Phone: (57-1) 294-87003 Ext. 3920

Fax: (57-1) 315-1762

E-mail: invimasal@invima.gov.co

**Ministry of Foreign Trade**

Juan Guillermo Castro

Director of Commercial Relations

Calle 28, No. 13A-15, 6th Floor

Apartado 240193

Bogotá, Colombia

Phone: (57-1) 606-7676 Ext. 1433

Fax: (57-1) 606-7539

E-mail:jcastro@mincomex.gov.co