Required Report - Public distribution

**Date:** 10/17/2008

**GAIN Report Number:** UK8016

UK0000

**United Kingdom**

**Exporter Guide**

**UK Exporter Guide**

**2008**

**Approved by:**

![](media/image1.wmf)Rodrick McSherry

US Embassy

**Prepared by:**

Julie Vasquez-Nicholson

**Report Highlights:**

The UK has strong historic and cultural ties to the US, which are
obvious in consumer trends in retail and foodservice markets. The UK
presents market opportunities for many US consumer-oriented products,
including specialty food products, "healthy" food items, wine, sauces,
fruit, nuts and juices. "Health" and convenience foods are the main
driving forces in the UK value-added food and beverage market. Consumers
in this relatively wealthy country are looking for variety in high
quality food products especially those perceived to have health and
fitness benefits.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

London \[UK1\]

\[UK\]

Table of Contents

[**SECTION I. MARKET OVERVIEW 3**](#section-i.-market-overview)

[Economic Situation 3](#economic-situation)

[UK Demographics 3](#uk-demographics)

[Trends in Imports of Consumer-Orientated Foods
4](#trends-in-imports-from-the-united-states-of-consumer-orientated-foods)

[Relative strengths/weaknesses of U.S. Supplier to UK market
5](#relative-strengthsweaknesses-of-u.s.-supplier-to-uk-market)

[SECTION II. EXPORTER BUSINESS TIPS
5](#section-ii.-exporter-business-tips)

[Food Standards and Regulations 6](#food-standards-and-regulations)

[General Import and Inspection Procedures
7](#general-import-and-inspection-procedures)

[SECTION III. MARKET SECTOR STRUCTURE & TRENDS
7](#section-iii.-market-sector-structure-trends)

[Retail Sector 7](#retail-sector)

[Market Shares of the UK's Supermarket Chains
7](#market-shares-of-the-uks-supermarket-chains)

[Hotel, Restaurant & Institutional (HRI) Sector
9](#hotel-restaurant-institutional-hri-sector)

[Food Processing 11](#food-processing)

[SECTION V. KEY CONTACTS AND FURTHER INFORMATION
13](#section-v.-key-contacts-and-further-information)

[APPENDIX - STATISTICS 15](#appendix---statistics)

[TABLE A. KEY TRADE & DEMOGRAPHIC INFORMATION
15](#table-a.-key-trade-demographic-information)

[TABLE B. CONSUMER FOOD & EDIBLE FISHERY PRODUCT IMPORTS
16](#table-b.-consumer-food-edible-fishery-product-imports)

[TABLE C -- TOP 15 SUPPLIERS OF CONSUMER FOODS & EDIBLE FISHERY PRODUCTS
16](#table-c-top-15-suppliers-of-consumer-foods-edible-fishery-products)

# SECTION I. MARKET OVERVIEW

## Economic Situation

The UK remains a trading power house and financial center and is the
fourth largest economy in the world. The UK is also one of the quintet
of trillion dollar economies in Western Europe with consumers looking
for high quality food products from around the world, including the
United States. Services, particularly banking, insurance and business
services account for three quarters of GDP while the manufacturing
industry continues to decline in its importance. The country's economic
growth is currently running at 2.9% annually. Measured in terms of gross
added value, domestic UK agriculture represents less than 1% of total
GDP.

The UK is receptive to US goods and services. With its \$2.147 trillion
GDP, the UK remains one of the United States' top European markets and
fifth largest market worldwide for all goods, after Canada, Mexico,
Japan and China. In 2007, the US exported \$50.3 billion of industrial
and agricultural goods to the UK. Consumer oriented food and beverage
products remain the most important sector in export value terms,
reaching record levels in 2007 amounting to 49 percent (\$823 million)
of total exports of agricultural, fish and forestry products to the UK.
Demand for US consumer oriented food products continues to differentiate
the UK from its European neighbors due to increased exports. In the last
five years, US consumer oriented goods have accounted for an average of
47 percent of US exports.

As a percentage of all food and beverage products consumed on the
island, the UK domestic production meets about 60 percent of the
country's food needs; with the balance coming from imports.

## UK Demographics

According to the UK Office for National Statistics (ONS), in 2007, the
population of the United Kingdom was estimated at 60.975 million.

According to the latest data available, the South East of England is
home to some 8.2 million residents in 2006, followed by London, which
has 7.5 million people. Over a quarter of the UK population lives in
London and in the South East of the country. These two regions together
cover less than a tenth of the UK's land area. The North West had the
third largest population with 6.9 million residents.

The UK has an ageing population. This is a result of a decline in the
mortality rate and smaller families. This led to a declining proportion
of the population under 16 and an increasing proportion in the over 65
years bracket. In 2007 for the first time ever, there were more people
over the age of 65 than there were under 16.

Ninety-two percent of the UK population are listed as white with 8
percent belonging to mixed or non-white ethnic groups. South Asians were
the largest of these groups, followed by people of mixed ethnic
backgrounds, including Afro-Caribbean and Africans. Consequently, the UK
has a wide variety of ethnic restaurants particularly in London and
other major cities in the country.

The UK, in common with much of the rest of Europe, has seen a
substantial increase in the number of single person households. Over 30
percent of British households have just one member.

Summary of key influences on UK consumer demand:

-   Slow population growth

-   Ageing population

-   Number of household units growing

-   Smaller households (notably one-person households)

-   Growing personal disposable income (boosting
    premium/convenience/eating out)

-   Rise in number of working women (46% of total workforce)

-   International consumer tastes e.g., Chinese, Indian, Italian, Thai,
    Mexican

-   Reduction in formal meal occasions, leading to an increase in
    snacking and "grazing"

-   Increasing public debate centered on food, incorporating safety,
    environmental, ethical, social and economic issues

-   Improvements in efficiency across the supply chain, reducing the
    real cost of food

-   Increased retail concentration (supermarkets growth vs. independent
    retailers)

## 

## Trends in Imports from the United States of Consumer-Orientated Foods

###### 

  ------------------------------ -------------------- -------------------
  **Product Category**           **Growth 2003 --2007 **US Exports to UK
                                 (%)**                2007 (\$m)**

  Wine & Beer                    +27                  272

  Fresh Fruit                    +56                  103

  Processed Fruit & Vegetables   +16                  102

  Other Consumer-Oriented        +33                  88
  Products                                            

  Tree Nuts                      +61                  78

  Salmon, Canned                 +36                  74

  Snack Foods (excl nuts)        +31                  43

  Dairy Products                 +130                 30

  Eggs & Products                +158                 27

  Fresh Vegetables               +57                  24

  Rice                           -19                  21

  Fruit & Vegetable Juices       +158                 13

  Pet Foods (Dog & Cat Food)     +6                   12

  Red Meats,                     +0.2                 10
  Fresh/Chilled/Frozen                                

  Breakfast Cereals & Pancake    +10                  5
  Mix                                                 

  Nursery Products & Cut Flowers +112                 3

  Poultry Meat                   +1,339               3

  Red Meats, Prepared/Preserved  +55                  2
  ------------------------------ -------------------- -------------------

Source: BICO Report/U.S. Bureau of the Census Trade Data

## Relative strengths/weaknesses of U.S. Supplier to UK market

  ----------------------------------- -----------------------------------
  Opportunities                       Constraints

  The scale of the US food industry   Competition from EU member states
  may offer price competitiveness on  (import duty payable on US
  large volume orders.                products).

  The UK climate limits growing       Poultry and red meat are restricted
  seasons and types of products       from the EU, as are dairy product
  grown.                              imports from the US.

  The diversity of the US population  Must meet strict UK/EU/retailer
  creates innovative food products    rules on food safety, traceability,
  and concepts which are often        environmental issues and plant
  mirrored in the UK.                 inspection.

  US has good brand image in UK. The  Labels on packaged food need to be
  US is a popular destination for the changed, particularly the
  UK tourist and familiarity with US  nutritional panel. Pack sizes and
  products is widespread.             palletization may also need
                                      changing.

  A common language means that the UK Need to develop relationship with
  is a natural gateway into Europe    UK trade contacts and invest in
                                      marketing product

  The UK has a core group of          Biotech (GMO) ingredients are not
  experienced importers with a        widely accepted by the UK consumer,
  history of sourcing from the US.    perhaps due to aggressive negative
                                      press.

  Strong interest in innovative       Taste buds differ in the UK, eg.
  products. Currently there is high   here popcorn is sweet, relishes are
  interest in natural, "wholesome"    more like jam, and spicy doesn't
  and "health" food categories.       mean high chili content.
  ----------------------------------- -----------------------------------

# 

# The UK can be a successful market for those companies willing to invest the time and resources to cement contacts. It normally takes on average 18 months from initial market survey to the time product appears on shelves. Exhibiting at UK food trade shows is a good way to put new product in front of a wider audience. 

# 

# 

# SECTION II. EXPORTER BUSINESS TIPS

Some essential UK market considerations:

-   Basic market research

-   Retail, Foodservice or Processing

-   UK business partner and terms

-   Import duty and excise tax

-   UK Value Added Tax

-   Price points and competitors

-   Labeling

-   EU Food Standards Restrictions

-   Promotion budget and resources

**General Consumer Tastes and Preferences**

+--------------+-------------------------------------------------------+
| Food Safety  | As a result of food scares over the past two decades, |
|              | the UK food supply chain is now heavily scrutinized,  |
|              | meaning that UK retailers, foodservice operators and  |
|              | manufacturers are uncompromising on traceability and  |
|              | quality assurance. UK buyers often require technical  |
|              | specifications above the level mandated by government |
|              | legislation.                                          |
+--------------+-------------------------------------------------------+
| Biotech      | Biotech products or products that contain biotech     |
| (GMO)        | ingredients can only be sold in the EU if they have   |
|              | been given approval.  If the biotech ingredient is    |
|              | approved it may be sold with the appropriate          |
|              | labeling - see GAIN Report E47044 available at:       |
|              | <htt                                                  |
|              | p://www.fas.usda.gov/scriptsw/AttacheRep/default.asp> |
|              |                                                       |
|              | The presence of food products containing              |
|              | biotech-derived products in the UK is minimal. Large  |
|              | supermarket chains have determined that they will not |
|              | stock products with biotech ingredients in their      |
|              | private label products (these, typically, account for |
|              | 45-50% of supermarket lines).  Many large companies   |
|              | have also taken a non-GMO approach, as well as many   |
|              | restaurants and cafes                                 |
+--------------+-------------------------------------------------------+
| Organic      | Sales of organic products make up around 2.5 percent  |
|              | of the UK grocery market (\$3.7 billion of the \$136  |
|              | billion total grocery market).  Supermarket chains    |
|              | dominate retail sales of organic foods, accounting    |
|              | for an estimated 82 percent of sales by value.        |
|              | Organic product ranges now extend to a wide range of  |
|              | convenience and grocery items.  There are signs that  |
|              | the global credit crisis has affected sales of        |
|              | premium products, including organic products in the   |
|              | UK.  However, consumers that buy organic products for |
|              | ethical reasons are unlikely to change their          |
|              | purchasing behaviour.                                 |
+--------------+-------------------------------------------------------+
| Health       | Like the US, the UK has a high incidence of heart     |
|              | disease and cancer. Consumers are looking for foods   |
|              | to improve their health which is driving sales of     |
|              | premium, less processed food, functional food, fresh  |
|              | fruit, fruit juices and low-fat or low-sugar          |
|              | processed food. Organic, at least in the mind of the  |
|              | consumer, is also seen in a positive light for        |
|              | improved health.                                      |
+--------------+-------------------------------------------------------+
| Package      | UK households are mainly comprised of 1-4 people. In  |
| Sizes        | addition, kitchens and refrigerators are small.       |
|              | Shopping is undertaken every couple of days, with     |
|              | perhaps a "large shop" every 2-3 weeks. US suppliers  |
|              | should consider this in determining export package    |
|              | size.                                                 |
+--------------+-------------------------------------------------------+

## 

## Food Standards and Regulations

The UK follows EU policies regarding labeling and ingredient
requirements. A detailed report that specifically addresses labeling and
ingredient requirements is available, entitled: The UK: Food and
Agricultural Import Regulations & Standards Country Report (FAIRS) and
can be obtained from the FAS homepage
[www.fas.usda.gov](http://www.fas.usda.gov/) choose Countries, Market
Reports, Attaché Reports, or for further information on EU policies,
please see the following report:
<http://www.fas.usda.gov/gainfiles/200807/146295146.pdf>

## 

## General Import and Inspection Procedures

Her Majesty's Revenue & Customs (HMRC) are responsible for the clearance
of all goods entering the UK, for further information and customs forms
please go to www.hmrc.gov.uk.

The UK FAIRS Country report as mentioned above addresses UK import and
inspection procedures; please obtain this report for further
information.

# 

# SECTION III. MARKET SECTOR STRUCTURE & TRENDS

The UK retail grocery market was valued at ₤128.2 billion (\$230.76
billion) in 2007, an increase of 3.5 percent on 2006.

Groceries account for 12.8 percent of total household spending in the
UK, making it the third largest area of expenditure (the largest is
housing, and the second largest is transport).

Food and grocery expenditure accounts for 49 percent of retail spending.

The Institute of Grocery Distribution (IGD) has estimated that the UK
retail grocery market will grow at an average rate of 2.9 percent over
the next five years. It is expected to be valued at ₤138.2 billion
(\$261.2 billion) by 2010, at current prices.

Convenience store shopping now accounts for 20 percent of the total
grocery market.

## 

## Retail Sector

######## **[Supermarket Chains]{.underline}**

Four supermarket chains dominate UK food retailing, accounting for
almost 75 percent of the market. Tesco is the market leader, with 31.5
percent market share, followed by Asda/Wal-Mart with 16.7 percent,
Sainsbury's has 16.2 percent and Morrison's rounds out the quartet with
11.1 percent. Other UK supermarket chains include Waitrose, Somerfield,
Iceland, Aldi, Budgens, Netto and Lidl.

### 

### Market Shares of the UK's Supermarket Chains

### 

  ------------------------------- ------------------- -------------------
  **Retailer**                    **Share %**         **2006 Sales Growth
                                                      vs. 2005**

  Tesco                           31.5                0.32

  Asda/Wal-Mart                   16.7                0.6

  Sainsbury's                     16.2                3.2

  Morrison's                      11.1                0

  Waitrose                        3.9                 0

  Somerfield                      3.8                 0.1

  Aldi                            2.6                 4.0

  Lidl                            2.2                 4.7

  Iceland                         1.7                 6.3

  Netto                           0.7                 0
  ------------------------------- ------------------- -------------------

*Source: TNS Data, market share summary, 12 weeks to July 13, 2007*

In general, each chain focuses on specific market segments. For example,
Tesco targets the middle market, providing both economy and up-scale
products. Sainsbury's is pitched slightly up-market of Tesco, with
Asda/Wal-Mart slightly down-market of Tesco. Morrison's and Somerfield
compete at much the same level as Asda/Wal-Mart, while Waitrose, part of
the John Lewis Partnership, is the most up-market of the leading chains.
Iceland, Aldi, Budgens, Netto and Lidl are all price-focused outlets.

As a result of town planning regulations, supermarkets in the UK are
smaller than their counterparts in Germany. For example, Tesco and
Sainsbury's stores are just 3,500m² (37,700 sq ft) on average. Planning
restrictions have resulted in limited availability of suitable sites.
This in turn has fueled a move back towards smaller stores by the large
supermarket chains, and created a polarization between superstores and
convenience stores formats. The major UK supermarket chains have also
developed store formats that are embedded in gas stations. For example,
Morrison's has a partnership with BP gas, Tesco with Exxon, and
Sainsbury's with Shell.

The UK has one of the most advanced private label markets in the world
(valued at around \$100 billion). The UK\'s major supermarket chains
dominate the private label market and on average 40-50 percent of
products in their stores are private label. Originally, private label
goods were a copy of a branded product, but today they are often
innovative and marketed as a premium or high quality brand. They give UK
retailers the opportunity to diversify their product ranges and develop
new revenue streams.

The Institute of Grocery Distribution (IGD) estimates that UK internet
grocery sales are currently valued at ₤2.4 billion (\$4.4 billion), two
percent of the total grocery market. IGD forecasts that on-line shopping
will double in the next five years; however, retailers believe these
predictions are conservative and that on-line grocery sales are
increasing by 30 percent per year.

######## [Department Stores]{.underline}

Marks and Spencer (M&S) food halls continue to maintain successful
business growth. Most M&S customers tend to buy the bulk of their
groceries from less high-end grocery retailers. A typical shopper uses
M&S for special occasions, for convenience food such as ready-meals and
as a top-up to their regular shop with a few luxury items. M&S
consistently offer innovative, high quality and rigorously checked food.

The London-based Department Stores: Harvey Nichols and Selfridges have
expanded recently to other major UK cities such as Birmingham,
Manchester and Leeds. This has increased sales of US products sold in
their food halls. Other notable department stores stocking US products
are Fortnum & Mason and Harrods. Department Store food halls provide a
unique opportunity for US specialty foods.

######## 

######## 

######## 

######## [Convenience Chains]{.underline}

The focus of these stores is mainly brands well known to British
consumers. They are located in town centers, train and metro stations as
a convenient stop for commuters and families making small purchases on
evenings or weekends. Major supermarket chains have begun to open small
format convenience type stores.

[Other Retailers]{.underline}

The UK has other outlets for US products such as health food stores,
mail/internet order companies and delicatessens. An importer is vital to
reach these smaller customers.

For further information on the UK retail sector, please see UK Retail
Market Briefs which can be found at
<http://www.fas.usda.gov/gainfiles/200712/146293247.pdf>
<http://www.fas.usda.gov/gainfiles/200712/146293248.pdf>

## Hotel, Restaurant & Institutional (HRI) Sector

In the UK the HRI Sector is known as the Catering or Foodservice
Industry and is generally considered to have two sectors:

[Cost Sector:]{.underline} Caterers within the cost sector traditionally
do not derive substantial margins. Meal provision tends to be out of
necessity, rather than as a result of a business opportunity being
identified. Provision is governed by contract where pricing is
controlled, if not fixed. Examples are: schools, hospitals, prisons and
specialist care homes.

[Profit Sector:]{.underline} This is the area of the foodservice market
in which the potential business gains are the main motivator. It is also
usually allied to hospitality and leisure. Pricing is flexible and
examples are: restaurants, fast food chains, pubs, hotels and leisure
venues.

The UK foodservice market was estimated to be valued at \$70.3 billion
(£38 billion) in 2007. The \$70.3 billion foodservice market accounts
for one third of all consumers food purchases.

The breakdown of market value by operator type is shown in the table
below:

  --- ------------------------ ---------------------- ----------------------
                               **Food Sales (£        **Share (%)**
                               Millions)**            

      **Restaurants**          8,545                  21.7

      **Fast Food**            9,695                  24.6

      **Pubs**                 5,985                  15.2

      **Hotels**               7,221                  18.3

      **Leisure**              3,043                  7.8

      **Staff Catering**       2,642                  6.7

      **Health Care**          875                    2.2

      **Education**            1,153                  2.9

      **Services/Welfare**     234                    0.6

      **Total**                **39,393**             **100.0**
  --- ------------------------ ---------------------- ----------------------

> Source: Horizons FS Limited, 2007

In 2007, there was an estimated 263,053 UK foodservice outlets operating
nationwide. The breakdown by operator type is show in the table below:

  --- ------------------------ ---------------------- ----------------------
                               **Number of Outlets**  **Share (%)**

      **Restaurants**          26,927                 10.2

      **Fast Food**            30,455                 11.6

      **Pubs**                 50,841                 19.3

      **Hotels**               46,188                 17.5

      **Leisure**              19,370                 7.4

      **Staff Catering**       19,946                 7.7

      **Health Care**          31,710                 12.0

      **Education**            34,533                 13.1

      **Services/Welfare**     3,083                  1.2

      **Total**                **263,657**            **100.0**
  --- ------------------------ ---------------------- ----------------------

> Source: Horizons FS Limited, 2007

The foodservice market is the UK's fourth largest consumer market
following retail, motoring, clothing and footwear.

Shoppers are eating out more frequently today than they were 4 years
ago. IGD states that 30% of shoppers eat out once a week or more
compared to 13% in 2003.

About 3 million meals are eaten at work everyday of which two million
are prepared by contract caterers. British consumers are exposed to many
different cuisines from around the world, with non European foods being
popular. As many as 7 out of 10 - 68% of Britons stating that they like
and eat non-European styles of food. The foodservice sector serves 8.6
billion meals a year the equivalent to 39,000 a minute.

######## 

######## **[Supply Chain]{.underline}**

There are two main ways to enter the UK catering market, some companies
go direct to suppliers, domestic or foreign. However, by far the most
popular way is through an intermediary such as a UK-based importer.
Because there are a large number of small companies operating in the
catering market, intermediaries skilled at filling small orders
efficiently play a crucial role in the distribution of products. The
importer normally takes title of the goods (i.e. ownership) following
the purchase from a supplier to resell to trade customers.

The UK's foodservice industry holds many avenues of opportunity for US
food and beverage products. Networking within the industry is vital to
ascertain the best market entry strategy.

For further information on the HRI sector please see UK HRI report which
can be found on the USDA website
<http://www.fas.usda.gov/gainfiles/200804/146294304.pdf> .

### 

### Food Processing

The food and drink manufacturing industry is the country's largest
single employer. Retail is the largest consumer market, with food
service the fourth largest. Food and drink is also the largest
manufacturing industry in the UK, with an annual turnover over \$137
billion (£74bn). Around 470,000 people across Britain are employed in
jobs associated with food and drink manufacture and sales, accounting
for 13% of total employment in the country.

In 2007 there were 6,639 food-manufacturing enterprises in the UK. UK
multinationals such as Unilever and Diageo are among the largest in
Europe. Many US companies, like, Pepsico, Kellogg's, ADM, ConAgra and
Cargill also have substantial interests in the UK.

The major unprocessed commodities that are not commercially produced by
the UK are rice, citrus fruit, bananas, corn, coffee, cocoa, stone
fruit, tea and some oilseeds. Although the UK produces beet sugar, cane
sugar is imported. Processed products that the UK has to import include
wine and preserved/frozen fruit and fruit juices.

**SECTION IV. BEST HIGH-VALUE PRODUCT PROSPECTS**

+---------+--------+--------+--------+------+------------+-----------+
| **      | **T    | **UK   | **A    | **   | **Key      | **Market  |
| Product | otal** | Imp    | verage | US** | C          | Attra     |
| Cat     |        | orts** | Annual |      | onstraints | ctiveness |
| egory** | **UK   |        | US     | **Im | to Market  | for USA** |
|         | Imp    | **From | Import | port | Dev        |           |
|         | orts** | US**   | Gr     | Tari | elopment** |           |
|         |        |        | owth** | ff** |            |           |
|         | **     | **     |        |      |            |           |
|         | 2007** | 2007** | *      | **Ra |            |           |
|         |        |        | *(last | te** |            |           |
|         | **(\$  | **(\$  | 5      |      |            |           |
|         | mill   | mill   | yrs)** |      |            |           |
|         | ion)** | ion)** |        |      |            |           |
+---------+--------+--------+--------+------+------------+-----------+
| Fish    | 2,704  | 88.9   | 24%    | 0    | Highly     | US #1     |
| and     |        |        |        | -22% | fragmented | canned    |
| Seafood |        |        |        |      | market,    | salmon    |
|         |        |        |        |      | domestic   | supplier, |
| HS: 03  |        |        |        |      | shortfall. | d         |
|         |        |        |        |      |            | eveloping |
|         |        |        |        |      |            | interest  |
|         |        |        |        |      |            | in other  |
|         |        |        |        |      |            | products  |
|         |        |        |        |      |            | and       |
|         |        |        |        |      |            | species   |
+---------+--------+--------+--------+------+------------+-----------+
| Ch      | 1      | 16.6   | 21%    | 8    | Domestic & | British   |
| ocolate | ,384.5 |        |        | -27% | EU         | eat more  |
| confec  |        |        |        |      | co         | chocolate |
| tionery |        |        |        |      | mpetition, | than any  |
|         |        |        |        |      | low        | other     |
| HS:     |        |        |        |      | acceptance | nat       |
| 1806    |        |        |        |      | of         | ionality. |
|         |        |        |        |      | American   |           |
|         |        |        |        |      | chocolate  |           |
|         |        |        |        |      | taste      |           |
+---------+--------+--------+--------+------+------------+-----------+
| Veg     | 90.9   | 0.8    | 84%    | 0    | C          | Food has  |
| etables |        |        |        | -16% | ompetition | long      |
| & Fruit |        |        |        |      | from       | shelf     |
| p       |        |        |        |      | Turkey,    | life      |
| repared |        |        |        |      | N          |           |
| in      |        |        |        |      | etherlands |           |
| Vinegar |        |        |        |      | and India  |           |
|         |        |        |        |      |            |           |
| HS:2001 |        |        |        |      |            |           |
+---------+--------+--------+--------+------+------------+-----------+
| Pr      | 496.7  | 19.4   | 24%    | 7    | C          | US nut    |
| eserved |        |        |        | -27% | ompetition | butters   |
| fruit & |        |        |        |      | from EU,   | perceived |
| nuts    |        |        |        |      | Thailand & | as high   |
|         |        |        |        |      | South      | quality,  |
| HS:     |        |        |        |      | Africa     | exotic    |
| 2008    |        |        |        |      |            | preserved |
|         |        |        |        |      |            | fruits of |
|         |        |        |        |      |            | interest  |
|         |        |        |        |      |            | for       |
|         |        |        |        |      |            | gift/     |
|         |        |        |        |      |            | specialty |
|         |        |        |        |      |            | trade     |
+---------+--------+--------+--------+------+------------+-----------+
| Fruit & | 1      | 9.1    | 22%    | 16   | C          | High      |
| Ve      | ,078.5 |        |        | -23% | ompetition | focus on  |
| getable |        |        |        |      | from EU    | healthy   |
| Juice   |        |        |        |      | and Brazil | living in |
|         |        |        |        |      |            | UK.       |
| HS:     |        |        |        |      |            | Juices    |
| 2009    |        |        |        |      |            | now more  |
|         |        |        |        |      |            | popular   |
|         |        |        |        |      |            | than      |
|         |        |        |        |      |            | c         |
|         |        |        |        |      |            | arbonated |
|         |        |        |        |      |            | drinks    |
+---------+--------+--------+--------+------+------------+-----------+
| Sauces, | 701.2  | 19.5   | 5%     | 0    | Australia  | US #4     |
| Cond    |        |        |        | -10% | starting   | supplier, |
| iments, |        |        |        |      | to enter   | UK wants  |
| Sea     |        |        |        |      | the market | authentic |
| sonings |        |        |        |      |            | tex-mex,  |
|         |        |        |        |      |            | BBQ       |
| HS:     |        |        |        |      |            | sauces,   |
| 2103    |        |        |        |      |            | marinades |
|         |        |        |        |      |            | & salad   |
|         |        |        |        |      |            | dressings |
+---------+--------+--------+--------+------+------------+-----------+
| Soft    | 993.4  | 11.3   | 15     | 0    | Domestic & | New US    |
| drinks  |        |        |        | -10% | EU         | concepts  |
|         |        |        |        |      | co         | in        |
| HS:     |        |        |        |      | mpetition, | beverages |
| 2202    |        |        |        |      | strong     | always    |
|         |        |        |        |      | brands,    | at        |
|         |        |        |        |      | market     | tractive, |
|         |        |        |        |      | reaching   | e.g.      |
|         |        |        |        |      | saturation | f         |
|         |        |        |        |      |            | unctional |
|         |        |        |        |      |            | drinks    |
+---------+--------+--------+--------+------+------------+-----------+
| Beer    | 726.3  | 2.8    | 24%    | 0%   | Domestic & | US        |
| HS:     |        |        |        |      | EU         | m         |
| 2203    |        |        |        |      | co         | icro-brew |
|         |        |        |        |      | mpetition, | beers,    |
|         |        |        |        |      | major      | generally |
|         |        |        |        |      | brewers    | unique    |
|         |        |        |        |      | located in | beers     |
|         |        |        |        |      | EU         | with a    |
|         |        |        |        |      |            | story.    |
|         |        |        |        |      |            | They are  |
|         |        |        |        |      |            | a         |
|         |        |        |        |      |            | ttractive |
|         |        |        |        |      |            | to a      |
|         |        |        |        |      |            | niche     |
|         |        |        |        |      |            | audience  |
+---------+--------+--------+--------+------+------------+-----------+
| Wine    | 5      | 247.52 | -1%    | 18   | C          | UK #1     |
| HS:     | ,110.4 |        |        | -25% | ompetition | export    |
| 2204    |        |        |        |      | from EU,   | market    |
|         |        |        |        |      | Australia, | for US    |
|         |        |        |        |      | Latin      | wine,     |
|         |        |        |        |      | America &  | C         |
|         |        |        |        |      | S. Africa. | alifornia |
|         |        |        |        |      |            | wine has  |
|         |        |        |        |      | Figure     | 16%       |
|         |        |        |        |      | shows a    | market    |
|         |        |        |        |      | minus due  | share,    |
|         |        |        |        |      | to wine    | other     |
|         |        |        |        |      | being      | parts of  |
|         |        |        |        |      | shipped to | US should |
|         |        |        |        |      | Italy and  | benefit   |
|         |        |        |        |      | then the   | in future |
|         |        |        |        |      | UK.        |           |
+---------+--------+--------+--------+------+------------+-----------+

Source: World Trade Atlas

# 

# SECTION V. KEY CONTACTS AND FURTHER INFORMATION

**Foreign Agricultural Service**

US Department of Agriculture

Embassy of United States of America

24 Grosvenor Square

London W1A 1AE

Tel: +44 20 7894 0040

Fax: +44 20 7894 0031

E-mail: AgLondon@fas.usda.gov

Web:
[www.usembassy.org.uk/fas/index.html](http://www.usembassy.org.uk/fas/index.html)

####### **Contact For:** US Government Agency for information on UK market, exporting from the US to the UK. Policy information etc. 

####### 

####### **Dept of Environment, Food & Rural Affairs** 

###### Customer Contact Unit, Eastbury House 

###### 30-34 Albert Embankment, London SE1 7TL 

###### Tel: +44 20 7238 6951 

###### Fax: +44 20 7238 2188 

E-mail: helpline@defra.gsi.gov.uk

Website: [www.defra.gov.uk](http://www.defra.gov.uk/)

**Contact For:** UK Government Agency for any information on the UK
Agricultural sector.

**Food Standards Agency**

Aviation House, 125 Kingsway

London WC2B 6NH

Tel: +44 20 7276 8829

Fax: +44 20 7238 6330

Email: helpline@foodstandards.gsi.gov.uk

Website: [www.foodstandards.gov.uk](http://www.foodstandards.gov.uk/)

**Contact For:** UK Government Association for information on UK food
safety standards and policies.

**United States Mission to the European Union**

Office of Agricultural Affairs

Organization chart: <http://useu.usmission.gov/agri/staff.html>

Mailing address:

27 Boulevard du Regent

1000 Brussels

Belgium

Tel: (32‑2)508‑2760

Fax: (32) (2) 511‑0918

e-mail: <AgUSEUBrussels@fas.usda.gov>

<http://useu.usmission.gov/agri/foodsafe.html>

<http://useu.usmission.gov/agri/usda.html>

**Contact For:** US Government Office looking after EU Policy
information.

**UK Trade Associations**

**Institute of Grocery Distribution**\
Grange Lane, Letchmore Heath\
Watford, Hertfordshire, WD25 8GD

Tel: +44 1923 857141

Fax: +44 1923 852531

E-mail: igd@igd.com

Web: [www.igd.com](http://www.igd.com/)

####### 

####### **Contact For:** UK Trade Association for information about the food and grocery chain. 

####### 

####### **Food and Drink Federation**

####### 6 Catherine Street

London, WC2B 5JJ

Tel: 011 44 20 7836 2460

Fax: 011 44 20 7836 0580

####### E-mail: generalenquiries@fdf.org.uk

####### Website: [www.fdf.org.uk](http://www.fdf.org.uk/)

####### 

**Contact For:** UK Trade Association which is the voice of the UK food
and drink manufacturing industry.

####### **Fresh Produce Consortium** 

Minerva House, Minerva Business Park

Lynch Wood

Peterborough PE2 6FT

Tel: 011 44 1733 237117

Fax: 011 44 1733 237118

E-mail: info@freshproduce.org.uk

Website: [www.freshproduce.org.uk](http://www.freshproduce.org.uk/)

####### **Contact For:** UK Trade Association for the fresh produce industry. 

####### 

####### **British Health Food Manufacturer's Association**

1 Wolsey Road

####### East Molesey

Surrey KT8 9EL

Tel: 011 44 20 8481 7100

####### Fax: 011 44 20 8481 7101

####### E-mail: <hfma@hfma.co.uk> 

Website: [www.hfma.co.uk](http://www.hfma.co.uk/)

####### **Contact For:** UK Trade Association which works effectively to represent the interests of the UK natural health products industry at all levels of the legislative, regulatory and Parliamentary process.

####### **British Frozen Food Federation**

Warwick House, Unit 7

Long Bennington Business Park

Main Road

Long Bennington

Newark, NG23 5JR

Tel: 011 44 1400 283 090

Fax: 011 44 1400 283 097

E-mail: generaladmin@bff.co.uk

Website: [www.bfff.co.uk](http://www.bfff.co.uk/)

**Contact For:** UK Trade Association for all aspects of the frozen food
industry.

# APPENDIX - STATISTICS

# TABLE A. KEY TRADE & DEMOGRAPHIC INFORMATION

+------------------------------------------------------+---------------+
| Agricultural Imports From All Countries (\$Mil)      | 89,942,809    |
|                                                      |               |
| U.S. Market Share (%) ^1/^                           | 1.47%         |
+------------------------------------------------------+---------------+
| Consumer Food Imports From All Countries (\$Mil)     | 34,954,505    |
|                                                      |               |
| U.S. Market Share (%) ^1/^                           | 2.35%         |
+------------------------------------------------------+---------------+
| Edible Fishery Imports From All Countries (\$Mil)    | 4,016,730     |
|                                                      |               |
| U.S. Market Share (%) ^1/^                           | 3.07%         |
+------------------------------------------------------+---------------+
| Total Population (Millions) / Annual Growth Rate (%) | 60.975        |
|                                                      | Million       |
|                                                      |               |
|                                                      | 0.6% Growth   |
+------------------------------------------------------+---------------+
| Urban Population (Millions)                          |   28 Million  |
+------------------------------------------------------+---------------+
| Number of Major Metropolitan Areas ^2/^              | 8             |
+------------------------------------------------------+---------------+
| Size of the Middle Class (Millions) ^3/^             |   30-43%      |
+------------------------------------------------------+---------------+
| Per Capita Gross Domestic Product (U.S. Dollars)     | \$39,684      |
+------------------------------------------------------+---------------+
| Unemployment Rate (%)                                | 2.73 %        |
+------------------------------------------------------+---------------+
| Per Capita Food Expenditures (U.S. Dollars)          |   \$66.27     |
+------------------------------------------------------+---------------+
| Percent of Female Population Employed ^4/^           |   70 %        |
+------------------------------------------------------+---------------+
| Exchange Rate (US\$1 = £) ^5/^                       |   1.85        |
+------------------------------------------------------+---------------+

***Footnotes***

*1/ From Bico Statistics* (Export/Import Statistics for Bulk,
Intermediate, and Consumer Oriented Foods and Beverages - BICO)

*2/ Population in excess of 1,000,000*

*3/ Middle class is "defined as* *individuals who have average incomes
of more than £25,500"*

*4/ Percent of number of women (15 years old or above*).

5/ *Exchange started to fall from July 2008. Previously exchange rate
hovered around \$2.00 to £1.00.*

# 

# 

# TABLE B. CONSUMER FOOD & EDIBLE FISHERY PRODUCT IMPORTS 

<table>
<colgroup>
<col style="width: 13%" />
<col style="width: 11%" />
<col style="width: 11%" />
<col style="width: 11%" />
<col style="width: 10%" />
<col style="width: 10%" />
<col style="width: 10%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 6%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="8"><strong>(In millions of United States Dollars, rounded
to the nearest million)</strong></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td rowspan="2"><strong>Commodity</strong></td>
<td colspan="3"><strong>UK Import Statistics from the
World</strong></td>
<td colspan="3"><strong>UK Import Statistics from the US</strong></td>
<td colspan="3"><p><strong>US Market Share</strong></p>
<p><strong>%</strong></p></td>
</tr>
<tr class="odd">
<td>2005</td>
<td>2006</td>
<td>2007</td>
<td>2005</td>
<td>2006</td>
<td>2007</td>
<td>2005</td>
<td>2006</td>
<td>2007</td>
</tr>
<tr class="even">
<td>Consumer Oriented Agric. Total </td>
<td>34,203,510</td>
<td>36,693,406</td>
<td>42,600,004</td>
<td>628,600</td>
<td>784,723</td>
<td>822,720</td>
<td>1.84</td>
<td>2.24</td>
<td>1.93</td>
</tr>
<tr class="odd">
<td>Fish &amp; Seafood Products </td>
<td>3,024,247</td>
<td>3,528,325</td>
<td>3,980,519</td>
<td>115,364</td>
<td>115,910</td>
<td>123,483</td>
<td>3.81</td>
<td>3.29</td>
<td>3.10</td>
</tr>
<tr class="even">
<td>Agricultural Total </td>
<td>43,303,621</td>
<td>46,498,864</td>
<td>54,060,925</td>
<td>1,160,015</td>
<td>1,255,753</td>
<td>1,320,765</td>
<td>2.68</td>
<td>2.70</td>
<td>2.44</td>
</tr>
<tr class="odd">
<td>Agricultural, Fish &amp; Forestry </td>
<td>51,756,842</td>
<td>55,848,050</td>
<td>65,282,226</td>
<td>1,477,671</td>
<td>1,569,693</td>
<td>1,689,794</td>
<td>2.86</td>
<td>2.81</td>
<td>2.59</td>
</tr>
</tbody>
</table>

Source: Global Trade Information Services.

# TABLE C -- TOP 15 SUPPLIERS OF CONSUMER FOODS & EDIBLE FISHERY PRODUCTS 

**UK - Top 15 Suppliers of Consumer Food Imports**

  ----------------- ----------------- ----------------- -----------------
                    **2005**          **2006**          **2007**

  Netherlands       5,717,369         6,145,295         7,198,739

  France            4,526,787         4,790,877         5,413,215

  Ireland           3,560,428         3,697,003         4,211,562

  Germany           2,761,257         2,991,534         3,671,523

  Spain             2,398,823         2,552,883         2,858,703

  Belgium           1,946,189         2,233,198         2,649,250

  Italy             2,184,203         2,259,060         2,611,062

  Denmark           1,759,313         1,892,810         1,924,070

  Australia         930,069           956,925           1,097,688

  **United States   **796,695**       **836,253**       **935,083**
  1/**                                                  

  New Zealand       706,219           727,153           868,865

  South Africa      727,295           738,000           833,226

  Brazil            599,106           626,138           758,422

  Poland            350,086           456,878           705,123

  Chile             463,259           529,051           667,246

  **World**         **34,203,510**    **36,693,406**    **42,600,004**
  ----------------- ----------------- ----------------- -----------------

1/ note that this data under-represents actual US sales to the UK as an
undetermined amount of products is transshipped via other EU member
states.

**UK -- Top 15 Suppliers of Fish & Seafood Products Imports**

  ----------------- ----------------- ----------------- -----------------
                    **2005**          **2006**          **2007**

  Iceland           477,032           555,415           660,091

  Denmark           264,872           311,202           300,576

  Germany           125,138           147,958           230,985

  China             119,467           188,333           225,703

  Norway            203,208           236,619           210,157

  Faroe Islands     182,934           176,215           186,222

  Thailand          90,235            122,603           165,792

  **United States   **130,355**       **139,607**       **163,995**
  1/**                                                  

  Canada            119,298           120,570           135,859

  France            80,856            98,671            132,619

  Netherlands       84,434            82,246            130,309

  India             81,140            97,972            98.932

  Mauritius         73,430            79,198            96,742

  Sweden            9,927             84,091            94,473

  Ireland           60,731            67,534            93,048

  **World**         **3,024,247**     **3,528,325**     **3,980,519**
  ----------------- ----------------- ----------------- -----------------

1/ note that this data under-represents actual US sales to the UK as an
undetermined amount of products is transshipped via other EU member
states.