Scheduled Report - Public distribution

**Date:** 11/15/2007

**GAIN Report Number:** SN7012

SN7012

**Singapore**

**Retail Food Sector**

**Singapore Retail Food Sector 2007**

**2007**

**Approved by:**

![](media/image1.wmf)David Cottrell

U.S. Embassy

**Prepared by:**

Stanton, Emms & Sia

**Report Highlights:**

Singapore is highly dependent on imports for its food and beverages. It
has a sizeable food retail market that is almost wholly supplied by
imported products. Trade sources estimate that total retail sales for
food and beverage products amount to almost US\$ 5 billion today.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Singapore \[SN1\]

\[SN\]

  ------------ ------------- --------------------------------------------------- ----------
  **Table of                                                                     Page No.
  contents**                                                                     

  1\.          Singapore in                                                      2
               profile                                                           

  2\.          Food retail                                                       3
               market                                                            
               summary                                                           

               2.1           Singapore's food retail sector in overview          3

               2.2           Advantages and challenges for US exporters          7

  3\.          Road map for                                                      8
               market entry                                                      

               3.1           Supermarkets and hypermarkets                       8

               3.2           Mini-markets, convenience stores and petrol station 11
                             stores                                              

               3.3           Traditional stores including dry markets, provision 13
                             and sundry shops                                    

  4\.          Competition                                                       14
               in the sector                                                     

  5\.          Best product                                                      20
               prospects                                                         

                                                                                 
  ------------ ------------- --------------------------------------------------- ----------

**1. Singapore in profile**

Singapore is one of the most affluent nations in Asia with a GDP
per-capita of US\$29,474 in 2006. Singapore\'s economy is based mainly
on its export manufacturing sector, financial sector and business
service sector. In 2006, the economy grew rapidly by 7.9%, showing a
significant improvement compared to 4.2% in 2002. Most economic
commentators forecasts Singapore's economy to grow between 6% to 7.5% in
2007 and 2008.

Singapore has a population of around 4.5 million, including 0.88 million
non-residents. Over 95.5% of the working population is gainfully
employed, around 91% of the households own their property and over 55%
of the households live an increasingly well-informed and sophisticated
lifestyle quite similar to the middle income households of the developed
world. In essence, Singapore can be considered a city state made up of
largely middle income households leading a relatively comfortable
lifestyle. Today, Singaporeans continue to represents a sizeable pool of
active consumers who will continue to drive increased consumption of
imported food and beverages into the future.

**2. Food retail market summary**

Singapore is highly dependent on imports for its food and beverages. It
has a sizeable food retail market that is almost wholly supplied by
imported products. Trade sources estimate that total retail sales for
food and beverage products amount to almost US\$ 5 billion today.

The Table below provides an overview of the size of the import market
for food and beverage products.

  --------------------------- ----------- ----------- ----------- ----------- -----------
  **Imports of Food and                                                       
  Beverage Products (US\$                                                     
  million)**                                                                  

                              **2002**    **2003**    **2004**    **2005**    **2006**

  Meat & meat preparations    289         324         359         386         422

  Fish & fish preparations    363         489         587         573         575

  Dairy products & eggs       293         364         472         575         599

  Edible vegetables           208         207         208         234         250

  Edible fruits               263         300         294         304         319

  Coffee, tea, mate & spices  163         202         215         177         197

  Processed meat, fish &      192         194         204         235         232
  seafood                                                                     

  Sugar & sugar preparations  142         152         141         172         215

  Processed cocoa products    126         230         203         200         246

  Processed cereal products   159         170         178         196         2520

  Processed vegetables and    138         161         164         164         166
  fruits                                                                      

  Miscellaneous processed     258         289         338         366         390
  foods                                                                       

  Beverages                   502         579         763         946         1,128

  **Total**                   **3,096**   **3,661**   **4,126**   **4,528**   **7,259**

  Source: Department of                                                       
  Statistics                                                                  
  --------------------------- ----------- ----------- ----------- ----------- -----------

Singapore imported US\$ 7.2 billion of food and beverage products in
2006. Food imports have been growing on an average of over 10% per annum
over the past few years. Trade sources comment that imports of food
products will likely continue to grow over the next five years.

Singapore has a rapidly shrinking food manufacturing industry today. The
industry is mainly involved in the manufacture of alcoholic and
non-alcoholic beverages, processed meat products, chocolate and snacks,
baked products and other cooked food preparations. No information is
readily available about the size of the industry today because the
government does not release any official information about the size of
this industry. Trade sources estimate the industry's total output to be
less than [US\$ 1 billion]{.mark}.

**2.1 Singapore\'s food retail sector in overview**

The food retail sector continues to remain fragmented today, with around
80% being made up of small retailers operating in dry markets, provision
shops and non-air conditioned sundry shops. The Chart below shows the
structure of the food retail sector today.

**Structure of Food Retail Sector Today**

> ![](media/image2.wmf)Source: Trade sources

It should be noted that supermarkets and hypermarkets dominate the
retail food sector, commanding around 75% of the total market share. The
Chart below shows the estimated market shares by store types in the food
retail sector today.

**Estimated Market Shares in the Food Retail Sector Today**

> ![](media/image3.wmf)Source: Trade estimates

Singapore\'s food retail sector is made up of:

1\. **Large food retail stores such as supermarkets, hypermarkets and
department stores**

This sub-sector dominates the food retail market today, commanding
around 75% of the total market share. Trade sources comment that the
sub-sector has been growing at about 4% per annum over the past five
years and indicated that this sub-sector is likely to continue to grow
at around 5% per annum over the next three to five years.

The majority of the supermarkets and hypermarkets are operated by NTUC
FairPrice (FairPrice) and the Cold Storage Group. The operators active
in this sub-sector include:

-   FairPrice which is the market leader in food retailing today. It
    operates hypermarket, supermarkets, convenience stores and patrol
    station stores. Their stores are located all over Singapore and have
    achieved very wide and deep distribution reach in Singapore. They
    target Singaporean consumers from all income groups. Certain
    up-market stores located in high end areas also target the
    high-income western and Asian expatriate consumers.

-   The Cold Storage Group which is the second largest food retailer in
    Singapore. It operates hypermarkets, supermarkets and convenience
    stores. They target the middle to high income shoppers as well as
    high income expatriates residing in Singapore. Cold Storage is
    perceived by shoppers as a store that targets the middle to high
    income shoppers as well as western expatriates. Most of their stores
    are located in middle to high income areas. However, the group's
    *Shop N Save* stores target the price sensitive shoppers and these
    outlets are generally located in the upper-low to middle income
    neighborhoods.

-   Sheng Siong which carries a fairly sizeable level of imported
    western food and drinks products. This chain operates 20 retail
    outlets located in the heartlands of Singapore. They target the mass
    market and also carry mostly Asian products that are demanded by
    local shoppers. Sheng Siong competes largely on price and is
    comparable to Wal-Mart in the 1960s.

Singapore has a handful of department stores that also have
significantly large food and beverage sections within the stores. These
include:

-   Mustafa which is the largest department store located in Little
    India. It targets local consumers, expatriates and tourists. Trade
    sources comment that tourists make up about 40% of its customer
    base. Its supermarket carries a very wide range of local and
    imported food and drinks products, largely from India as well as the
    rest of Asia, Australia, the United States of America, United
    Kingdom, other parts of Europe, Canada and South Africa.

> The store carries a wide range of imported food products such as dairy
> products, coffee, tea, sauces and seasonings, confectionery and
> snacks, dairy products, biscuits and cakes, honey, breakfast cereals,
> pickles, mustard and other condiments, soups, jams and spreads and
> alike. It prides itself as being the only store in Singapore that
> carries the widest selection of imported chocolate and chocolate
> confectionery.

-   Isetan has an outlet located in the main shopping street with a full
    scale supermarket that carries mainly Japanese food products as well
    as a wide range of the more popular local and imported western food
    products. Western food products are mainly imported from the United
    Stated of America, Australia, France, Denmark, Sweden, Switzerland
    and the United Kingdom. Although this store targets the sizeable
    Japanese expatriate community in Singapore, they also service a
    sizeable Singaporean consumer base that patronizes their stores.

It is important to note that the store outlets which target the middle
to high income Singaporeans and expatriates carry more varieties and
higher volumes of imported products from western countries such as
Australia, the USA, Canada, France, the United Kingdom and other parts
of Europe and New Zealand. Such products would include fresh produce
such as chilled pork, beef and lamb, fresh temperate fruits and
vegetables, chilled cold water fish such as salmon and sole, frozen
chicken and chicken parts, frozen vegetables, sausages, delicatessen
meats, pastry and pies, wide range of dairy products, high end biscuits
and cookies, confectionery such as premium/branded chocolates and
candies, potato based snacks, canned fruits, canned soups, canned meat,
breakfast cereals, pasta, sauces, dressings, ready meals (frozen), home
bakery ingredients, fruit juices, jams and jellies, peanut butter,
non-alcoholic beverages and wines, beer and other alcoholic beverages.

In addition, supermarkets such as Cold Storage and FairPrice carry
products under their house/retailer brands which may be priced at 15% or
more lower than comparable products, to attract the price conscious
customers from the lower to middle income group. These companies prefer
to buy directly from suppliers and manufacturers, thereby cutting out
the distributors' and importers' costs and passing on the cost savings
back to their customers.

These large retail stores also offer additional services such as
in-store bakeries, wine corners, health food corners, counters serving
ready-to-consume meals and food service areas to attract more customers
to their stores. During festive seasons, they also offer ready cooked
products such as roast pork or roast duck for Chinese New Year and roast
turkey, roast beef or lamb and other delicatessen meat or ham as well as
specialty baked products for Christmas. Other services include on-line
internet shopping as well as home deliveries. All the conveniences
offered by these stores have now made it a norm for most Singaporeans to
shop for their grocery needs at supermarkets and hypermarkets on a
regular basis.

2\. **Mini-markets, convenience stores and petrol station stores**

Trade sources indicated that this sub-sector has about 15% share of the
food retail sector. Trade sources added that the sub-sector has been
growing at about 6% per annum over the past five years and indicated
that this sub-sector is likely to continue to grow at around 5% per
annum over the next three to five years. The majority of these stores
are franchise operations with support from their franchisors in the form
of advertising support, consultancy services, staff training, financing,
bulk purchasing and distribution facilities.

Most of the customers live close to such stores and purchase small
quantities of goods per shopping trip at these stores. Mini-markets are
smaller versions of supermarkets with a smaller range of products than
supermarkets. Shoppers frequent these stores largely because of the
friendlier service provided by the store operators. The convenience
stores are treated like "tuck shops" by children, teenagers and young
adults who usually shop for magazines, newspapers, candies, chips and
other snacks, ice cream or other single-serve food and beverages that
are consumed "on-the-go".

These air-conditioned stores generally carry a smaller range of popular
processed and packaged food and beverage products compared to those
carried by the supermarkets. They generally do not carry perishable
products such as chilled meat, fish and seafood, fresh fruits and
vegetables. Most of the products are in single-serve sized packaging or
in smaller packaging size than those carried by the
supermarkets/hypermarkets. However, the retail price of the products is
generally higher in convenience stores and petrol station stores than at
the mini-markets or supermarkets.

A large number of their products are imported from the region, e.g.
Thailand, Malaysia, China, Hong Kong and Taiwan. Only a small range of
imported products from western countries such as the USA or Australia is
carried. Such products would include a very small range of bottled or
canned juices, biscuits and cookies, potato-based snacks such as chips,
a wider range of candies and a small range of canned foods such as
canned meat (Tulip brand). The convenience stores also carry a very
small range of soft drinks, beers and new age alcoholic drinks such as
Bacardi Breezer, DNA, Booz, Vodka Mudshake and alike as well as a small
range of wine in small bottles (187 ml bottle size).

Apart from the above mentioned, convenience stores also carry
microwaveable food products which may be heated at the store for
immediate consumption. In addition, convenience stores and petrol
station stores also serve ready-to-consume food and beverages such as
sandwiches, fried rice, fried noodles, other Asian cooked meals, buns
and alike, ready-to drink hot coffee or tea, soft drinks and other
beverages.

3\. **Traditional stores including dry markets, provision and sundry
shops**

These non-air conditioned open-fronted grocery stores offer mainly local
and Asian processed products, including unbranded products. They
generally do not sell fresh perishable produce. Their competitive
advantage is in their carrying "no-frills" products that are ordinarily
demanded by most local households and are retailed at a low price. Most
of the customers shop daily and buy small quantities of goods. The
majority of their customers live within a short walk from such stores.
These retail outlets generally do not carry many imported products from
western countries.

Trade sources indicated that this sub-sector's market share has been
declining steadily over the years as shoppers switched to shopping in
supermarkets, convenience stores and mini-markets. According to trade
sources, this sub-sector experienced insignificant growth since 1997 and
is unlikely to show much growth in the next three to five years.

**2.2 Advantages and challenges for US exporters**

The Table below summarizes the advantages and challenges for US products
in the Singapore food and beverage retail sector.

  ------------------------------------ ----------------------------------
  **Advantages**                       **Challenges**

  Singapore's economy is continuing to Malaysia, Australia, New Zealand,
  grow and the food retail market is   France and China continue to be
  also continuing to expand. Imported  strong competitors in the food
  food and beverage products are free  retail market. Their products
  of import duties and Customs Duties  compete on quality and price
  (except for alcoholic drinks).       against a number of comparable US
                                       products.

  US products and brands are already   US products are generally
  well-known and well represented in   perceived as not as price
  the food retail market. In addition, competitive as similar products
  US products have a reputation of     from countries such as Australia
  being of high quality. This enables  and New Zealand.
  new-to-market US products an easier  
  access into the retail market        
  because the major retailers are more 
  willing to carry US products than    
  products from other countries. In    
  addition, Cold Storage and FairPrice 
  outlets that target western          
  expatriates already carry large      
  quantities and a wide variety of     
  imported food products from the USA. 
  Both these retail operators import   
  food products directly from US       
  suppliers.                           

  Young Singaporeans, including young  New-to-market US products do not
  adults, are increasingly adopting US always fit local demand on taste
  culture and trends. This is positive and packaging size.
  for US food products.                

  Past marketing efforts by US         Major supermarket and hypermarket
  organizations have raised the        operators, such as Cold Storage
  profile of a range of US products in and FairPrice, are becoming
  the eyes of consumers and retailers, increasingly demanding on the
  e.g. fresh temperate fruits, dried   performance of products carried in
  fruits, wine, etc. Such activities   their stores and will not hesitate
  serve to not only increase awareness to remove slow moving products
  and consumption of US products but   from their stores.
  also increase the perception of US   
  products as high quality products.   

  A wide variety of foreign products   Certain new-to-market US products
  already "fit" into local food        are not readily understood by many
  culture, e.g. ice cream, potato and  Singaporeans and so are ignored,
  cereal based snacks, infant food,    e.g. ready-to-consume prepared
  temperate fruits and vegetables,     meals. A large number of these US
  soft drinks and alcoholic drinks     products do not readily fit into
  such as whiskey. This trend will     the local food culture.
  continue into the future as more     
  Singaporeans modernize their diets.  
  ------------------------------------ ----------------------------------

**3. Road map for market entry**

**3.1 Supermarkets, hypermarkets and department stores**

**3.1.1 Company profiles**

The Table below provides information on the major retailers involved in
the operation of supermarkets, hypermarkets and department stores.

+-------------+-----------+----------+-----------+---------+----------+
| **Retailer  | **Ow      | *        | **No. of  | **Loc   | **Pu     |
| Name and    | nership** | *Sales** | Outlets** | ation** | rchasing |
| Outlet      |           |          |           |         | Agent    |
| Type**      |           | **(US\$  |           |         | Type**   |
|             |           | mil      |           |         |          |
|             |           | lions)** |           |         |          |
+-------------+-----------+----------+-----------+---------+----------+
| NTUC        | Co-       | 940      | 76        | Nati    | Direct   |
| FairPrice   | operative | (2006),  | FairPrice | on-wide | sourcing |
| C           |           | i        | sup       |         | p        |
| o-operative |           | ncluding | ermarkets |         | referred |
| Ltd,        |           | sales    | and 1     |         | with     |
| supermarket |           | through  | hyp       |         | some     |
| chain.      |           | con      | ermarket. |         | agents   |
|             |           | venience |           |         | used for |
|             |           | stores   |           |         | smaller  |
|             |           | and      |           |         | volume   |
|             |           | petrol   |           |         | s        |
|             |           | station  |           |         | upplies. |
|             |           | stores.  |           |         |          |
|             |           |          |           |         |          |
|             |           | Market   |           |         |          |
|             |           | leader   |           |         |          |
|             |           | in the   |           |         |          |
|             |           | food     |           |         |          |
|             |           | retail   |           |         |          |
|             |           | sector.  |           |         |          |
+-------------+-----------+----------+-----------+---------+----------+
| Cold        | Local     | Sales    | 30 Cold   | Nati    | Direct   |
| Storage     | company,  | inf      | Storage   | on-wide | sourcing |
| Singapore   | s         | ormation | supe      |         | p        |
| (1983) Pte  | ubsidiary | not      | rmarkets, |         | referred |
| Ltd,        | of Dairy  | r        | 5 Market  |         | with a   |
| supermarket | Farm      | eleased. | Place     |         | number   |
| chain       | Inte      |          | stores,   |         | of       |
|             | rnational | Second   | 48 Shop N |         | p        |
|             | of Hong   | largest  | Save      |         | referred |
|             | Kong      | sup      | sup       |         | agents   |
|             |           | ermarket | ermarkets |         | used.    |
|             |           | chain.   | and 3     |         |          |
|             |           |          | Giant     |         |          |
|             |           |          | hype      |         |          |
|             |           |          | rmarkets. |         |          |
+-------------+-----------+----------+-----------+---------+----------+
| Carrefour   | Local     | Sales    | 2         | In 2    | Group    |
| Singapore   | company,  | not      | hyp       | major   | sourcing |
| Pte Ltd,    | wholly    | di       | ermarkets | s       | direct   |
| hypermarket | owned by  | sclosed. | Targets   | hopping | from     |
|             | Carrefour |          | the       | malls   | s        |
|             | France    |          | western   | in the  | uppliers |
|             |           |          | e         | city    | is       |
|             |           |          | xpatriate | centre  | pr       |
|             |           |          | community |         | eferred. |
+-------------+-----------+----------+-----------+---------+----------+
| Sheng Siong | Local     | Sales    | 1         | Nati    | Agents   |
| Supermarket | company   | not      | d         | on-wide | used     |
| Pte Ltd     |           | di       | epartment | in      | although |
|             |           | sclosed. | store and | neighbo | the      |
|             |           |          | 20 Sheng  | r-hoods | company  |
|             |           |          | Siong     |         | has      |
|             |           |          | supe      |         | started  |
|             |           |          | rmarkets. |         | to       |
|             |           |          | Targets   |         | source   |
|             |           |          | the price |         | directly |
|             |           |          | conscious |         | from     |
|             |           |          | shopper.  |         | overseas |
|             |           |          |           |         | s        |
|             |           |          |           |         | uppliers |
|             |           |          |           |         | where    |
|             |           |          |           |         | ever     |
|             |           |          |           |         | possible |
|             |           |          |           |         | for bulk |
|             |           |          |           |         | pu       |
|             |           |          |           |         | rchases. |
+-------------+-----------+----------+-----------+---------+----------+
| Mustafa &   | Local     | Sales    | 1         | Little  | Sources  |
| Samsuddin   | company   | not      | d         | India   | directly |
| Co Pte Ltd  |           | di       | epartment |         | from     |
|             |           | sclosed. | store     |         | overseas |
|             |           |          | with a    |         | s        |
|             |           |          | sign      |         | uppliers |
|             |           |          | ificantly |         | where    |
|             |           |          | large     |         | ever     |
|             |           |          | su        |         | possible |
|             |           |          | permarket |         | for bulk |
|             |           |          | section   |         | pu       |
|             |           |          |           |         | rchases. |
|             |           |          |           |         | Local    |
|             |           |          |           |         | agents   |
|             |           |          |           |         | used for |
|             |           |          |           |         | smaller  |
|             |           |          |           |         | orders.  |
+-------------+-----------+----------+-----------+---------+----------+
| Isetan (S)  | High end  | 206      | Operates  | Orchard | Japanese |
| Ltd         | d         | (2006),  | 4         | Road    | products |
|             | epartment | i        | d         |         | are      |
|             | store     | ncluding | epartment |         | imported |
|             | listed on | sales of | stores in |         | directly |
|             | Singapore | non-food | S         |         | from     |
|             | Stock     | mer      | ingapore, |         | Japan.   |
|             | Exchange, | chandise | with only |         |          |
|             | was       | through  | one       |         | Other    |
|             | i         | the      | outlet    |         | products |
|             | ntroduced | de       | located   |         | are      |
|             | from      | partment | on the    |         | p        |
|             | Japan.    | stores   | main      |         | urchased |
|             |           |          | shopping  |         | from     |
|             |           |          | street    |         | local    |
|             |           |          | that has  |         | i        |
|             |           |          | a         |         | mporters |
|             |           |          | su        |         | and      |
|             |           |          | permarket |         | distr    |
|             |           |          |           |         | ibutors. |
+-------------+-----------+----------+-----------+---------+----------+

**3.1.2 Entry strategy**

US exporters should treat this sub-sector as a mainstream retail sector
to target, particularly those retail outlets that target the high income
western and Asian expatriates and middle to high income Singaporeans.

-   FairPrice has a number of stores located in the middle to higher
    income areas which targets western expatriate customers as well as
    the sophisticated Singaporeans, with its high concentration on
    imported products from the USA, Australia, Europe, Japan, Korea and
    alike. Some of these outlets include in-store concepts such as an
    Australian Pavilion, Liberty Market (carry USA products only),
    Peranakan (ethnic), Japanese, Korea and Thai Street. In addition,
    FairPrice Finest was opened in September 2007, carrying only the
    finest products targeted at the well-travelled, sophisticated middle
    to high income customers who seek alternative premium products that
    are not usually carried in other stores.

-   Most of Cold Storage stores target the western expatriates and
    middle to high income Singaporean consumers and such stores carry a
    high volume of imported products from western countries such as the
    USA, Australia, United Kingdom, France, other parts of Europe, New
    Zealand and Canada. It opened Naturally Market Place recently which
    targets the health conscious and discerning middle to high income
    consumers, carrying over 1,000 organic products. Almost 50% of the
    products it carries are high quality natural, fresh,
    dietary-sensitive products as well as eco-friendly merchandise.

The US exporter should consider the following when selecting major
retailers to partner with in Singapore:

-   The financial strength of the retailer and its volume of business.

-   The level of interest and commitment by the retailer in carrying
    imported US products.

-   The number and location of retail outlets that target western
    expatriates and middle to high income local consumers which are
    accessible to US products.

-   The annual marketing program of the retailer.

-   The retailer's policy towards:

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-   New-to-market imported products and brands.

-   Premium and basic lines and niche products.

-   Volume of sales expected from the US products.

-   Promotional support expected from US exporters.

-   Retail pricing expected for the US products.

-   Listing fees and other costs, if any, imposed on the US exporters.

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-   The retailer's purchasing policy, i.e. whether they purchase
    directly from overseas suppliers or via local
    importers/distributors.

    In addition, US exporters should consider the following matters when
    planning to enter this retail sub-sector:

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-   Where the product fits in the retail market, e.g. as a mass market
    item, high-end niche item, novelty/exotic item, seasonal
    festive/gift item, targeted at western expatriates, etc.

-   Price competitiveness of the US products versus comparable brands
    already in the market.

-   Packaging size and quality that meets with customers' expectations.

-   US products which can be readily accepted as
    alternatives/substitutes to competing products.

-   US products that can readily fit into local food culture.

-   US organic products and health food products that can meet
    retailer's requirements.

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-   US products which provide convenience to customers.

-   The level of promotion, commitment to brand support and consumer
    education necessary for successful launch and development of a
    new-to-market product.

-   Ability to meet retailer purchasing requirements and specifications.

**3.1.3 Distribution channel**

The Chart below provides an overview of the distribution channel for
imported food and beverage products from US exporters to supermarkets
and hypermarkets. It is important to note that the larger retailers
prefer buying directly from overseas suppliers where possible to gain
better pricing in order to pass cost savings to their customers to
remain competitive in the market.

> **US Exporter**
>
> **Importer**
>
> **Distributor**
>
> **Supermarkets/Hypermarkets**

FairPrice operates a central warehousing and distribution centre and
products from the centre are distributed directly to its supermarkets
and convenience stores.

**3.2 Mini-markets, convenience stores and petrol station stores**

**3.2.1 Company profiles**

Mini-markets today are only operated by one major franchisor, PSC
Corporation. The convenience stores segment is dominated by 7-Eleven
stores operated under franchise by the Cold Storage Group with NTUC's
Cheers convenience stores providing an alternative to local consumers.
Convenience stores operate for 24 hours a day unlike mini-markets which
have similar operating hours to supermarkets. In addition, there are
around 120 twenty-four hour petrol station stores nation-wide operated
by the other petroleum companies such as Shell, SPC and Caltex.

The Table below provides information on the major businesses involved in
the operation of mini-markets and convenience stores.

+------------+----------+------------+---------+----------+----------+
| **Retailer | **Own    | **Sales**  | **No.   | **Lo     | **Pu     |
| Name and   | ership** |            | of      | cation** | rchasing |
| Outlet     |          | **(US\$    | Ou      |          | Agent    |
| Type**     |          | m          | tlets** |          | Type**   |
|            |          | illions)** |         |          |          |
+------------+----------+------------+---------+----------+----------+
| NTUC       | Co-o     | 940        | 114     | Nat      | Direct   |
| FairPrice  | perative | (2006),    | Cheers  | ion-wide | sourcing |
| Co         |          | including  | stores, |          | p        |
| -operative |          | sales      | 19      |          | referred |
| Ltd,       |          | through    | Fa      |          | with     |
| c          |          | c          | irPrice |          | some     |
| onvenience |          | onvenience | Express |          | agents   |
| stores     |          | stores and | and 55  |          | used for |
|            |          | petrol     | petrol  |          | smaller  |
|            |          | station    | station |          | volume   |
|            |          | stores.    | stores  |          | items.   |
|            |          |            | in      |          |          |
|            |          | Largest    | Mobil   |          |          |
|            |          | petrol     | and     |          |          |
|            |          | station    | Esso    |          |          |
|            |          | store      | st      |          |          |
|            |          | operator.  | ations. |          |          |
+------------+----------+------------+---------+----------+----------+
| Cold       | Local    | Sales      | 206     | Nat      | Direct   |
| Storage    | company, | i          | outlets | ion-wide | sourcing |
| Singapore  | su       | nformation | of      |          | with     |
| (1983) Pte | bsidiary | not        |         |          | some     |
| Ltd,       | of Dairy | released.  | 7       |          | p        |
| c          | Farm     |            | -Eleven |          | referred |
| onvenience | Group of | Largest    | stores  |          | agents   |
| store      | Hong     | c          |         |          | used.    |
| operated   | Kong     | onvenience |         |          |          |
| under      |          | store      |         |          |          |
| license    |          | operator.  |         |          |          |
| from       |          |            |         |          |          |
| Southland  |          |            |         |          |          |
| C          |          |            |         |          |          |
| orporation |          |            |         |          |          |
+------------+----------+------------+---------+----------+----------+
| PSC        | Local    | 113 (2006) | 130     | Nati     | Direct   |
| C          | company  | including  | iEcon   | on-wide, | sourcing |
| orporation |          | food       | M       | conc     | via its  |
| Ltd,       |          | man        | inimart | entrated | subsi    |
|            |          | ufacturing | stores  | in the   | diaries, |
| franchise  |          | and other  |         | neighb   | T        |
| operator   |          | investment |         | or-hoods | opseller |
| of         |          | income.    |         | located  | and      |
| mi         |          |            |         | close to | Tipex    |
| ni-markets |          | Largest    |         | the      | Trading  |
|            |          | retail     |         | homes of |          |
|            |          | franchise  |         | lower    |          |
|            |          | operator.  |         | income   |          |
|            |          |            |         | to       |          |
|            |          |            |         | middle   |          |
|            |          |            |         | income   |          |
|            |          |            |         | co       |          |
|            |          |            |         | nsumers. |          |
+------------+----------+------------+---------+----------+----------+

**3.2.2 Entry strategy**

US exporters should view this as a secondary target providing
incremental business, rather than as a main target. They should develop
distribution reach into this sub-sector through their appointed
distributors that service FairPrice and Cold Storage. The new-to-market
US exporters should consider the following matters when planning to
enter the sub-sector:

-   US products which target children, young adults and convenience
    seekers.

-   US products which are packaged in single-serve or smaller sizes.

-   US products which can satisfy local taste preferences.

-   Price competitiveness of the US products versus competing imported
    brands.

-   US products which can be accepted as alternatives to other imported
    products.

**3.2.3 Distribution channel**

The distribution channel for the convenience stores and petrol station
stores is similar to that exiting for the supermarkets. An example of
the distribution channel to mini-markets is shown below.

> **US exporter**
>
> **Importers**
>
> **Topseller Pte Ltd/ Tipex Trading**
>
> **iEcon Minimart**

PSC Corp operates two large distribution businesses, Topseller and Tipex
Trading which have developed exclusive agencies and distribution rights
in Singapore. These companies handle the logistics operations,
distributing in-house brands as well as international brands to its
iEcon Minimart chain, enabling the minimart operator's access to price
competitive products, benefit from advertising and promotional
activities organized by PSC as well as other retailing facilities
offered by PSC.

**3.3 Traditional stores including dry markets, provision and sundry
shops**

This sub-sector is dominated by small family-run businesses that are
located in the neighborhoods. The sub-sector has remained highly
fragmented with a number of operators that enter and exit the sub-sector
on a frequent basis\... These businesses target the price sensitive
consumers as well as those who seek convenience, particularly those
housewives that prefer to shop daily for a small number of grocery items
and other daily essentials. These retail stores generally carry local
and Asian products and brands with a small number of the more popular
imported food and beverage products from western countries.

**3.3.1 Entry strategy**

US exporters should treat this sub-sector as a very low priority retail
sector to target. US exporters that wish to enter this sub-sector should
supply highly price competitive products that:

-   Can easily fit into the local food culture

-   Can be accepted as alternatives to Asian products and brands.

New-to-market US exporters should also carefully select major local
distributors that have wide distribution capabilities which reach into
the neighborhoods.

**3.3.2 Distribution channel**

Traditional stores source their imported food and beverage products
through local importers and distributors or sub-distributors. Trade
sources comment that this sub-sector is not well served by the local
importers and distributors because of the small and irregular volume of
transactions involved.

**4. Competition in the sector**

The Table below summarizes the major supply sources for each product
covered under this study, the strengths of the key supply sources and
the advantages and disadvantages of local companies.

+-------------+----------------+--------------------+----------------+
| **Product** | **Major supply | **Strengths of key | **Advantages   |
|             | sources**      | supply countries** | and            |
|             |                |                    | disadvantages  |
|             |                |                    | of local       |
|             |                |                    | companies**    |
+-------------+----------------+--------------------+----------------+
| Beef        | 1\. Brazil -   | Brazil competes on | There is no    |
| (fresh,     | 70%            | price and leads in | local supply   |
| chilled or  |                | the frozen sector; | of beef.       |
| frozen)     | 2\.            | demanded largely   |                |
|             | Australia -    | by the food        |                |
| Import:     | 15%            | service sector.    |                |
| 17,508      |                |                    |                |
|             | 3\. New        | Australia targets  |                |
| tons        | Zealand - 11%  | the retail sector  |                |
|             |                | with its products  |                |
| US\$ 65.6   | USA - Minor    | and strong         |                |
| million     | supplier       | presence in retail |                |
| (CIF value) |                | stores has         |                |
|             | (1% share)     | maintained its     |                |
|             |                | market leadership  |                |
|             |                | in the retail      |                |
|             |                | sector.            |                |
|             |                |                    |                |
|             |                | New Zealand        |                |
|             |                | continues to       |                |
|             |                | target the high    |                |
|             |                | end- food service  |                |
|             |                | businesses.        |                |
+-------------+----------------+--------------------+----------------+
| Whole       | 1\. Brazil -   | Brazil dominates   | Local supply   |
| chicken,    | 90%            | the frozen whole   | of poultry is  |
| frozen      |                | chicken market. It | negligible.    |
|             | USA - Minor    | targets the food   |                |
| Import:     | supplier       | service sector     |                |
| 17,221      |                | with very price    |                |
|             | (4% share)     | competitive frozen |                |
| tons        |                | whole chicken.     |                |
|             |                |                    |                |
| US\$ 21     |                | USA targets the    |                |
| million     |                | retail sector with |                |
| (CIF value) |                | its Tyson          |                |
|             |                | products.          |                |
+-------------+----------------+--------------------+----------------+
| Whole       | 1\. USA- 99.9  | USA dominates the  | There is no    |
| turkey,     | %              | market. The only   | local supply   |
| frozen      |                | other supplier is  | of turkey.     |
|             |                | Germany which      |                |
| Import: 410 |                | supplied only 2    |                |
|             |                | tons in 2006\...   |                |
| tons        |                |                    |                |
|             |                |                    |                |
| US\$ 1      |                |                    |                |
| million     |                |                    |                |
| (CIF value) |                |                    |                |
+-------------+----------------+--------------------+----------------+
| Dairy       | 1\.            | Australia has      | Local          |
|             | Australia -    | developed strong   | companies are  |
| Import:     | 32%            | business links in  | strong in      |
| 228,280     |                | the market for all | liquid milk,   |
| tons        | 2\. New        | forms of dairy     | ice cream,     |
|             | Zealand - 29%  | products.          | yogurt,        |
| US\$ 442    |                |                    | cultured milk  |
| million     | 3\. Malaysia - | NZ is the leading  | drinks and     |
| (CIF value) | 9%             | supplier of milk   | sweetened      |
|             |                | powder to          | condensed      |
|             | USA - Minor    | Singapore and has  | milk. They are |
|             | supplier       | strong business    | all very       |
|             |                | links with         | strong         |
|             | (3% share)     | Singapore for all  | companies      |
|             |                | forms of dairy     | although they  |
|             |                | products.          | continue to be |
|             |                |                    | affected by    |
|             |                | Malaysia benefits  | high           |
|             |                | from close         | production     |
|             |                | proximity to       | costs.         |
|             |                | Singapore and has  |                |
|             |                | developed strong   |                |
|             |                | distribution into  |                |
|             |                | Singapore for its  |                |
|             |                | yoghurts,          |                |
|             |                | sweetened          |                |
|             |                | condensed milk,    |                |
|             |                | canned milk        |                |
|             |                | powders and infant |                |
|             |                | formula.           |                |
+-------------+----------------+--------------------+----------------+
| Breakfast   | 1\. China -    | Branded market     | Singapore does |
| cereals     | 27%            | dominated by       | not produce    |
|             |                | Nestlé, Kellogg's, | breakfast      |
| Import:     | 2\. Malaysia - | Quaker and Post.   | cereals.       |
| 6,822       | 21%            |                    |                |
|             |                | Malaysia is a      |                |
| tons        | 3\. USA - 11%  | re-export site for |                |
|             |                | Nestlé while       |                |
| US\$ 18     |                | Kellogg's are      |                |
| million     |                | supplied from a    |                |
| (CIF value) |                | number of          |                |
|             |                | countries          |                |
|             |                | including USA.     |                |
|             |                | Quaker is imported |                |
|             |                | from China while   |                |
|             |                | Post is imported   |                |
|             |                | from USA.          |                |
+-------------+----------------+--------------------+----------------+
| Infant      | 1\. Malaysia - | Branded market,    | Singapore does |
| food,       | 34%            | led by Nestlé      | not produce    |
| excluding   |                | which is imported  | infant food.   |
| dairy       | 2\. USA - 10%  | from Malaysia.     |                |
| products    |                |                    |                |
|             |                | Heinz and Gerber   |                |
| Import:     |                | products are       |                |
| 6,302       |                | imported from the  |                |
|             |                | USA.               |                |
| tons        |                |                    |                |
|             |                |                    |                |
| US\$ 14     |                |                    |                |
| million     |                |                    |                |
| (CIF value) |                |                    |                |
+-------------+----------------+--------------------+----------------+
| Savory      | 1\. Malaysia - | Branded market.    | Tai Sun        |
| snacks;     | 78%            | Malaysia dominates | produces       |
| potato      |                | with its branded   | potato and     |
| based and   | 2\. USA - 5%   | price competitive  | other cereal   |
| other       |                | products such as   | based snacks.  |
| cereal      |                | Jack & Jill,       |                |
| based       |                | Roller Coasters,   |                |
| snacks      |                | Pringles and       |                |
|             |                | Twisties.          |                |
| Import:     |                |                    |                |
| 49,954 tons |                | USA supplies       |                |
|             |                | Pringles and       |                |
| US\$ 93     |                | Fritolay products. |                |
| million     |                |                    |                |
| (CIF value) |                |                    |                |
+-------------+----------------+--------------------+----------------+
| Baked       | 1\. Malaysia - | Branded market.    | Khong Guan has |
| products    | 72%            | Cakes dominate     | remained the   |
|             |                | with 71% market    | only major     |
| Import:     | 2\. China --   | share followed by  | local baked    |
| 69,933 tons | 6%             | sweet biscuits     | products       |
|             |                | with 28% market    | manufacturer   |
| US\$ 138    | 3\. USA - 5%   | share.             | in Singapore.  |
| million     |                |                    | It competes    |
| (CIF value) |                | Malaysia dominates | largely in the |
|             |                | both the cakes and | sweet biscuits |
|             |                | sweet biscuits     | assortment and |
|             |                | segments with its  | plain biscuits |
|             |                | branded price      | segments.      |
|             |                | competitive        |                |
|             |                | products such as   |                |
|             |                | Julie's, Munchy,   |                |
|             |                | Hup Seng and       |                |
|             |                | Danone's products  |                |
|             |                | e.g. Chipsmore and |                |
|             |                | Jacob's and alike. |                |
|             |                |                    |                |
|             |                | China supplies a   |                |
|             |                | variety of Nabisco |                |
|             |                | biscuit products   |                |
|             |                | to Singapore.      |                |
|             |                |                    |                |
|             |                | USA supplies Sara  |                |
|             |                | Lee, Pilsbury and  |                |
|             |                | Mrs. Smith's       |                |
|             |                | cakes, waffles,    |                |
|             |                | pancakes and pies  |                |
|             |                | as well as Oreos   |                |
|             |                | sweet biscuits.    |                |
+-------------+----------------+--------------------+----------------+
| Fresh       | 1\. Malaysia - | Malaysia dominates | Singapore is   |
| vegetables  | 44%            | the market with    | not a major    |
|             |                | its consistent     | producer of    |
| Import:     | 2\. China -    | ability to supply  | fresh          |
| 384,338     | 27%            | good quality,      | vegetables.    |
| tons        |                | competitively      |                |
|             | 3\.            | priced vegetables. |                |
| US\$ 190.9  | Australia - 6% |                    |                |
| million     |                | China is the       |                |
| (CIF value) | USA - Minor    | largest supplier   |                |
|             | supplier with  | of potatoes,       |                |
|             | 3% of market   | cabbage and alike, |                |
|             |                | onions and alike   |                |
|             |                | and a major        |                |
|             |                | supplier of other  |                |
|             |                | types of fresh     |                |
|             |                | vegetables.        |                |
|             |                |                    |                |
|             |                | Australia is the   |                |
|             |                | leading supplier   |                |
|             |                | of carrots to      |                |
|             |                | Singapore.         |                |
+-------------+----------------+--------------------+----------------+
| Frozen      | 1\. USA - 64%  | USA dominates the  | Singapore does |
| vegetables  |                | market with its    | not produce    |
|             | 2\. China -19% | frozen potato      | frozen         |
| Import:     |                | products, mainly   | vegetables.    |
| 19,065 tons |                | targeted at the    |                |
|             |                | food service,      |                |
| US\$ 19     |                | although it also   |                |
| million     |                | supplies other     |                |
| (CIF value) |                | frozen vegetable   |                |
|             |                | products (peas,    |                |
|             |                | sweet corn,        |                |
|             |                | broccoli and       |                |
|             |                | alike). China      |                |
|             |                | supplies frozen    |                |
|             |                | peas.              |                |
+-------------+----------------+--------------------+----------------+
| Can         | 1\. China -    | China supplies     | Local          |
| ned/bottled | 25%            | canned Asian       | companies'     |
| vegetables  |                | products (bamboo   | canned         |
|             | 2\. USA - 19%  | shoots, mushrooms) | vegetables use |
| Import:     |                |                    | imported       |
| 20,783 tons | 3\. Malaysia - | USA supplies Green | ingredients.   |
|             | 15%            | Giant, Del Monte,  | Brands include |
| US\$ 25     |                | S&W, Hunts and     | Mili and       |
| million     |                | Heinz products.    | Hosen.         |
| (CIF value) |                |                    |                |
|             |                | Malaysia is strong |                |
|             |                | in supplying baked |                |
|             |                | beans, mushrooms   |                |
|             |                | and peas.          |                |
+-------------+----------------+--------------------+----------------+
| Fresh       | 1.China -- 38  | China leads the    | Singapore does |
| fruits,     | %              | market with its    | not produce    |
| temperate   |                | Fuji apples,       | fresh          |
|             | 2\. USA - 21%  | Chinese pears and  | temperate      |
| Import:     |                | mandarins.         | fruits.        |
| 162,832     | 3\. South      |                    |                |
| tons        | Africa - 14%   | USA is the key     |                |
|             |                | supplier of        |                |
| US\$ 169    |                | grapes,            |                |
| million     |                | non-Chinese pears, |                |
| (CIF value) |                | berries and stone  |                |
|             |                | fruits.            |                |
|             |                |                    |                |
|             |                | South Africa is a  |                |
|             |                | major supplier of  |                |
|             |                | citrus fruits,     |                |
|             |                | grapes, apples and |                |
|             |                | pears.             |                |
+-------------+----------------+--------------------+----------------+
| Dried       | 1\. USA - 30%  | USA dominates the  | Harvest        |
| fruits      |                | market for raisins | Fields, NTUC   |
|             | 2\. China -    | and prunes,        | Fairprice      |
| Import:     | 24%            | forming the bulk   | house brand,   |
| 7,201 tons  |                | of demand in this  | uses imported  |
|             | 3\. Iran - 10% | market. It has     | dried fruits   |
| US\$ 16     |                | established a long | from USA.      |
| million     |                | presence in the    |                |
| (CIF value) |                | retail market with |                |
|             |                | its well known     |                |
|             |                | brands (Sun-Maid,  |                |
|             |                | Sun sweet, Del     |                |
|             |                | Monte, Ligo).      |                |
|             |                |                    |                |
|             |                | China dominates    |                |
|             |                | the Chinese dates  |                |
|             |                | and other dried    |                |
|             |                | fruits segments.   |                |
|             |                |                    |                |
|             |                | Iran is the        |                |
|             |                | largest supplier   |                |
|             |                | of Middle-eastern  |                |
|             |                | dates and figs and |                |
|             |                | the second largest |                |
|             |                | supplier of        |                |
|             |                | sultanas.          |                |
+-------------+----------------+--------------------+----------------+
| Canned      | 1\.            | Indonesia supplies | Local          |
| fruits      | Indonesia -    | fruit ingredients  | companies'     |
|             | 43%            | to local companies | canned fruits  |
| Import:     |                | canned under their | use imported   |
| 57,470 tons | 2\. China -    | own house brands.  | ingredients    |
|             | 16%            |                    | from Malaysia, |
| US\$ 59     |                | China supplies     | Thailand,      |
| million     | 3\. Thailand - | Asian products     | Indonesia,     |
| (CIF value) | 12%            | such as lychees,   | China and      |
|             |                | longans and other  | alike. The     |
|             | USA- Minor     | similar products   | better known   |
|             | supplier       | under the          | brands include |
|             |                | Narcissus brand as | Mili and       |
|             | (3%)           | well as            | Hosen.         |
|             |                | ingredients to     |                |
|             |                | local companies    |                |
|             |                | canned under their |                |
|             |                | own house brands.  |                |
|             |                |                    |                |
|             |                | Thailand supplies  |                |
|             |                | Asian products     |                |
|             |                | such as Toddy      |                |
|             |                | Palm, longan,      |                |
|             |                | lychees, sea       |                |
|             |                | coconut and alike  |                |
|             |                | under the Flying   |                |
|             |                | Horse and UFC      |                |
|             |                | brand as well as   |                |
|             |                | ingredients to     |                |
|             |                | local companies    |                |
|             |                | canned under their |                |
|             |                | own house brands.  |                |
|             |                |                    |                |
|             |                | USA supplies Del   |                |
|             |                | Monte, S&W and     |                |
|             |                | Contadina products |                |
|             |                | to Singapore.      |                |
|             |                |                    |                |
|             |                | .                  |                |
+-------------+----------------+--------------------+----------------+
| Edible nuts | 1\. India -    | India leads in     | Local brands   |
|             | 37%            | supplying          | such as Tong   |
| Import:     |                | groundnuts by      | Garden, Camel  |
| 23,795 tons | 2\.            | offering very      | and Tai Sun    |
|             | Indonesia -    | competitive        | have a strong  |
| US\$ 36     | 27%            | prices.            | presence in    |
| million     |                |                    | the retail     |
| (CIF value) | 3\. China -    | Indonesia leads in | market.        |
|             | 25%            | supplying other    |                |
|             |                | nuts such as       |                |
|             | USA - Minor    | macadamia and      |                |
|             | supplier       | alike.             |                |
|             |                |                    |                |
|             | (4%).          | China is the       |                |
|             |                | second largest     |                |
|             |                | supplier of        |                |
|             |                | groundnuts and     |                |
|             |                | leads in the       |                |
|             |                | supply of          |                |
|             |                | chestnuts,         |                |
|             |                | pistachio and      |                |
|             |                | walnuts.           |                |
|             |                |                    |                |
|             |                | They all supply to |                |
|             |                | local food         |                |
|             |                | processors.        |                |
|             |                |                    |                |
|             |                | The USA leads in   |                |
|             |                | the supply of      |                |
|             |                | almonds.           |                |
+-------------+----------------+--------------------+----------------+
| Sugar       | 1\. China -    | China is strong in | Singapore does |
| co          | 30%            | supplying price    | not produce    |
| nfectionery |                | competitive hard   | sugar          |
|             | 2\. Malaysia - | boiled candies     | confectionery. |
| Import:     | 20%            | that have a        |                |
| 14,025 tons |                | traditional demand |                |
|             | USA - Minor    | from ethnic        |                |
| US\$ 45     | supplier       | Chinese. It also   |                |
| million     |                | supplies Mentos to |                |
| (CIF value) | (5%)           | Singapore, a very  |                |
|             |                | popular candy      |                |
|             |                | brand amongst      |                |
|             |                | Singaporeans.      |                |
|             |                |                    |                |
|             |                | Malaysia supplies  |                |
|             |                | similar products   |                |
|             |                | targeted at local  |                |
|             |                | consumers but of   |                |
|             |                | slightly better    |                |
|             |                | quality products,  |                |
|             |                | including Hacks    |                |
|             |                | and Hudson's.      |                |
+-------------+----------------+--------------------+----------------+
| Chocolates  | 1\. Malaysia - | Malaysia targets   | Singapore      |
|             | 19%            | consumers that     | produces       |
| Import:     |                | prefer chocolates  | chocolate bars |
| 11,513 tons | 2\. USA - 17%  | in conveniently    | under the Van  |
|             |                | packed single      | Houten brand,  |
| US\$ 83     | 3\. Italy -    | serve bars as well | targeted at    |
| million     | 15%            | as large sized     | the local and  |
| (CIF value) |                | bars. It is strong | ASEAN markets. |
|             |                | in supplying       | It is a        |
|             |                | Cadbury chocolate  | secondary      |
|             |                | bars that have a   | player in the  |
|             |                | traditional demand | market.        |
|             |                | from local         |                |
|             |                | consumers, both    |                |
|             |                | filled and         |                |
|             |                | unfilled bars of   |                |
|             |                | all flavors and    |                |
|             |                | varieties. It also |                |
|             |                | exports Vochelle   |                |
|             |                | chocolate bars to  |                |
|             |                | the market.        |                |
|             |                |                    |                |
|             |                | USA supplies       |                |
|             |                | Hershey Kisses and |                |
|             |                | Bars which provide |                |
|             |                | an alternative     |                |
|             |                | product to         |                |
|             |                | chocolate lovers.  |                |
|             |                |                    |                |
|             |                | Italy targets the  |                |
|             |                | gift market, its   |                |
|             |                | Ferrero Rocher is  |                |
|             |                | very popular as a  |                |
|             |                | gift product and   |                |
|             |                | its Kinder         |                |
|             |                | chocolates are     |                |
|             |                | popular with the   |                |
|             |                | younger generation |                |
|             |                | of chocolate       |                |
|             |                | lovers.            |                |
+-------------+----------------+--------------------+----------------+
| No          | 1\. Malaysia - | Malaysia dominates | Local soft     |
| n-alcoholic | 67%            | the import market  | drinks and     |
| beverages   |                | with supplies of   | mineral water  |
|             | 2\.            | good quality       | products       |
| Import: 310 | Indonesia - 6% | cordials, fruit    | dominate the   |
| million     |                | juices and mineral | market.        |
| litres      | USA - Minor    | water at very      | Coca-Cola and  |
|             | supplier       | competitive        | Pepsico        |
| US\$ 144    |                | prices.            | products are   |
| million     | (2% share)     |                    | produced       |
| (CIF value) |                |                    | locally. Other |
|             |                |                    | well-known     |
|             |                |                    | local brands   |
|             |                |                    | by F&N, Pokka, |
|             |                |                    | Yeo's and      |
|             |                |                    | alike also     |
|             |                |                    | command        |
|             |                |                    | significant    |
|             |                |                    | shares in the  |
|             |                |                    | market. They   |
|             |                |                    | have           |
|             |                |                    | maintained a   |
|             |                |                    | strong local   |
|             |                |                    | market to      |
|             |                |                    | effectively    |
|             |                |                    | compete        |
|             |                |                    | against        |
|             |                |                    | imports.       |
+-------------+----------------+--------------------+----------------+
| Wine        | 1\. France -   | France dominates   | Singapore does |
|             | 47%            | the food service   | not produce    |
| Import: 20  |                | market and         | any grape      |
| million     | 2\.            | competes on        | wine.          |
| liters      | Australia -    | quality and price. |                |
|             | 26%            |                    |                |
| US\$ 311    |                | Australia has      |                |
| million     | 3\. Chile --   | developed a higher |                |
| (CIF value) | 6%             | presence in the    |                |
|             |                | retail market for  |                |
|             | 4\. USA - 5%   | its New World      |                |
|             |                | wines because of   |                |
|             |                | its price          |                |
|             |                | competitive        |                |
|             |                | products, strong   |                |
|             |                | supply and strong  |                |
|             |                | branding.          |                |
|             |                |                    |                |
|             |                | Chile competes on  |                |
|             |                | price and supplies |                |
|             |                | New World wines.   |                |
+-------------+----------------+--------------------+----------------+
| Beer        | 1\. Malaysia - | Carlsberg's        | Market is      |
|             | 46%            | products are       | dominated by   |
| Import: 71  |                | imported from      | local beers.   |
| million     | 2\. Belgium -  | Malaysia and       | Singapore has  |
| liters      | 8%             | Singapore is part  | one major      |
|             |                | of its home        | brewery that   |
| US\$ 71     | USA -          | market. It has a   | is an          |
| million     | Negligible     | very strong        | aggressive     |
| (CIF value) | supplier       | presence in        | brand driven   |
|             |                | Singapore with     | businesses     |
|             | (Less than 1%) | very wide          | which protects |
|             |                | distribution.      | its market.    |
|             |                |                    |                |
|             |                | The other imported |                |
|             |                | beers are small    |                |
|             |                | niche players.     |                |
+-------------+----------------+--------------------+----------------+
| Spirits     | 1\. UK - 41%   | The market is now  | Local          |
|             |                | dominated by       | production is  |
| Import: 38  | 2\. France -   | whiskies (42%      | negligible.    |
| million     | 40%            | market share) with |                |
| liters      |                | brandy a close     |                |
|             | USA - Minor    | second (38% market |                |
| US\$ 591    | supplier       | share).            |                |
| million     |                |                    |                |
| (CIF value) | (4% share)     | UK dominates in    |                |
|             |                | whiskies and gin.  |                |
|             |                |                    |                |
|             |                | France dominates   |                |
|             |                | the brandy sector  |                |
|             |                | with its well      |                |
|             |                | known brands.      |                |
+-------------+----------------+--------------------+----------------+
| Pet food    | 1\. USA - 56%  | The market is      | Singapore does |
|             |                | dominated by       | not produce    |
| Import:     | 2\. Thailand - | Friskies           | processed and  |
| 9,931 tons  | 23%            | (Australia & USA,) | packed pet     |
|             |                | Pedigree           | foods.         |
| US\$ 16     | 3\.            | (Australia) and    |                |
| million     | Australia -    | Whiskas (Australia |                |
| (CIF value) | 14%            | & Thailand).       |                |
+-------------+----------------+--------------------+----------------+
| Source:     |                |                    |                |
| Department  |                |                    |                |
| of          |                |                    |                |
| Statistics, |                |                    |                |
| market      |                |                    |                |
| o           |                |                    |                |
| bservations |                |                    |                |
| and trade   |                |                    |                |
| comments    |                |                    |                |
+-------------+----------------+--------------------+----------------+

**5. Best product prospects**

The main aim of this study is to make a broad based assessment of the
attractiveness of the target market segments for U.S. products and rank
each segment in accordance with the following criteria:

-   Category A: U.S. products are available in significant quantities in
    the market segments which have good sales potential.

-   Category B: U.S. products not present in significant quantities in
    market segments which have good sales potential.

-   Category C: U.S. products not present in market segments because
    they face significant barriers

It should be noted that this market attractiveness review has been
developed from a broad study of the Singapore market and not detailed
market studies of each segment. As a result, the reader should not
construe it as the results of a full and detailed market study into
opportunities for U.S. products. This assessment considers in broad
terms the likely strategic direction of each market segment but does not
consider or provide advice on the strategies or tactics that will be
needed by individual US exporters to develop viable markets.

The following Tables consider in broad terms which of the food market
segments covered by this study are attractive for U.S. products to
develop over the next three years. The Table also ranks each sector
according to the above referred criteria.

**Category A: Products Present in the Market That Have Good Sales
Potential**

+---------+-------+--------+---------------+-----------+------------+
| **      | **2   | **     | **5 year      | **Key     | **Market   |
| Product | 002** | 2006** | Average       | co        | attr       |
| cat     |       |        | Annual Import | nstraints | activeness |
| egory** | *     | **Imp  | Growth Rate** | over      | for USA**  |
|         | *Impo | orts** |               | market    |            |
|         | rts** |        |               | deve      |            |
|         |       |        |               | lopment** |            |
+---------+-------+--------+---------------+-----------+------------+
| Whole   | 289   | 410    | 8% growth per | Whole     | This       |
| turkey, |       |        | annum.        | turkey is | market     |
| frozen  | tons  | tons   |               | not       | continues  |
|         |       |        | Very rapid    | commonly  | to be      |
|         | US\$  | US\$   | growth was    | demanded  | attractive |
|         | 0.5   | 1.0    | seen in       | by local  | for the    |
|         | mi    | m      | recent years  | consumers | USA and US |
|         | llion | illion | but the       | because   | exporters  |
|         | (CIF  | (CIF   | market has    | they are  | should     |
|         | v     | value) | remained      | not used  | capitalize |
|         | alue) |        | small.        | to the    | on the     |
|         |       |        |               | taste of  | growth in  |
|         |       |        |               | turkey.   | this       |
|         |       |        |               | Turkey is | market as  |
|         |       |        |               | only      | an         |
|         |       |        |               | demanded  | increasing |
|         |       |        |               | at        | number of  |
|         |       |        |               | Christmas | local      |
|         |       |        |               | but only  | consumers  |
|         |       |        |               | as        | are        |
|         |       |        |               | ready     | starting   |
|         |       |        |               | -to-serve | to acquire |
|         |       |        |               | prepared  | a taste    |
|         |       |        |               | and       | for roast  |
|         |       |        |               | roasted   | turkey for |
|         |       |        |               | turkey    | Christmas. |
|         |       |        |               | which is  |            |
|         |       |        |               | usually   |            |
|         |       |        |               | available |            |
|         |       |        |               | at the    |            |
|         |       |        |               | two major |            |
|         |       |        |               | su        |            |
|         |       |        |               | permarket |            |
|         |       |        |               | chains    |            |
|         |       |        |               | for a     |            |
|         |       |        |               | month     |            |
|         |       |        |               | before    |            |
|         |       |        |               | C         |            |
|         |       |        |               | hristmas. |            |
+---------+-------+--------+---------------+-----------+------------+
| Br      | 5,600 | 6,822  | 4% growth per | Nestlé    | An         |
| eakfast |       |        | annum.        | and       | attractive |
| cereals | tons  | tons   |               | K         | market for |
|         |       |        | Growing and   | ellogg's' | long term  |
|         | US\$  | US\$   | developing    | strengths | d          |
|         | 16    | 18     | market        | in the    | evelopment |
|         | mi    | m      | (including    | market.   | based on   |
|         | llion | illion | breakfast     |           | higher     |
|         | (CIF  | (CIF   | oats).        |           | disposable |
|         | v     | value) | Although      |           | incomes    |
|         | alue) |        | largely a     |           | and        |
|         |       |        | young         |           | related    |
|         |       |        | children's    |           | m          |
|         |       |        | market, young |           | odernizing |
|         |       |        | adults are    |           | eating     |
|         |       |        | increasingly  |           | habits.    |
|         |       |        | consuming     |           |            |
|         |       |        | breakfast     |           |            |
|         |       |        | cereals,      |           |            |
|         |       |        | particularly  |           |            |
|         |       |        | the healthy   |           |            |
|         |       |        | varieties.    |           |            |
+---------+-------+--------+---------------+-----------+------------+
| Savory  | 3     | 49,954 | 8% growth per | Strong    | This       |
| snacks; | 5,734 | tons   | annum.        | co        | market     |
| potato  |       |        |               | mpetition | continues  |
| based   | tons  | US\$   | Fast growing  | from      | to be      |
| and     |       | 93     | sizable       | price     | attractive |
| other   | US\$  | m      | market,       | co        | for        |
| cereal  | 61    | illion | popular       | mpetitive | well-known |
| based   | mi    | (CIF   | amongst young | good      | brands     |
| snacks  | llion | value) | children,     | quality   | from the   |
|         | (CIF  |        | teenagers and | Malaysian | USA and US |
|         | v     |        | young adults. | made      | exporters  |
|         | alue) |        |               | products. | should     |
|         |       |        |               |           | capitalize |
|         |       |        |               |           | on the     |
|         |       |        |               |           | growth in  |
|         |       |        |               |           | this       |
|         |       |        |               |           | market by  |
|         |       |        |               |           | i          |
|         |       |        |               |           | ntroducing |
|         |       |        |               |           | new        |
|         |       |        |               |           | products   |
|         |       |        |               |           | and        |
|         |       |        |               |           | brands.    |
+---------+-------+--------+---------------+-----------+------------+
| Baked   | 5     | 69,933 | 6% growth per | Strong    | This       |
| p       | 3,923 | tons   | annum.        | co        | market     |
| roducts |       |        |               | mpetition | continues  |
|         | tons  | US\$   | Fast growing  | from      | to be      |
|         |       | 138    | market. Baked | price     | attractive |
|         | US\$  | m      | products are  | co        | for the    |
|         | 95    | illion | popular       | mpetitive | USA and US |
|         | mi    | (CIF   | amongst all   | good      | exporters  |
|         | llion | value) | consumers,    | quality   | should     |
|         | (CIF  |        | particularly  | Malaysian | capitalize |
|         | v     |        | cakes and     | branded   | on the     |
|         | alue) |        | sweet         | products. | growth in  |
|         |       |        | biscuits      |           | this       |
|         |       |        | consumed as   |           | market. US |
|         |       |        | snack food.   |           | exporters  |
|         |       |        |               |           | should     |
|         |       |        |               |           | consider   |
|         |       |        |               |           | exporting  |
|         |       |        |               |           | unique and |
|         |       |        |               |           | exotic     |
|         |       |        |               |           | products   |
|         |       |        |               |           | of         |
|         |       |        |               |           | suitable   |
|         |       |        |               |           | taste and  |
|         |       |        |               |           | flavor,    |
|         |       |        |               |           | products   |
|         |       |        |               |           | that are   |
|         |       |        |               |           | not        |
|         |       |        |               |           | readily    |
|         |       |        |               |           | available  |
|         |       |        |               |           | in this    |
|         |       |        |               |           | region.    |
+---------+-------+--------+---------------+-----------+------------+
| Dried   | 7,316 | 7,201  | Declining by  | Maturing  | US exports |
| fruits  | tons  | tons   | less than 1%  | market    | continue   |
|         |       |        | per annum.    | for       | to         |
|         | US\$  | US\$   |               | tr        | dominate   |
|         | 12    | 16     | Mainly bakery | aditional | the        |
|         | mi    | m      | sector        | dried     | market.    |
|         | llion | illion | demand.       | fruits    | Opp        |
|         | (CIF  | (CIF   | Consumers     | such as   | ortunities |
|         | v     | value) | increasingly  | raisins   | exist to   |
|         | alue) |        | prefer cereal | and       | supply to  |
|         |       |        | and potato    | prunes.   | the health |
|         |       |        | based snacks  | Growing   | food and   |
|         |       |        | instead of    | demand in | organic    |
|         |       |        | dried fruits, | niche     | food       |
|         |       |        | particularly  | health    | segments   |
|         |       |        | the younger   | food      | of the     |
|         |       |        | generation.   | segment,  | retail     |
|         |       |        |               | par       | market.    |
|         |       |        |               | ticularly |            |
|         |       |        |               | for dried |            |
|         |       |        |               | apricots  |            |
|         |       |        |               | and dried |            |
|         |       |        |               | avocado.  |            |
+---------+-------+--------+---------------+-----------+------------+
| Canned  | 3     | 57,470 | 15% growth    | Fresh     | Opp        |
| fruits  | 2,440 | tons   | per annum.    | fruits    | ortunities |
|         | tons  |        |               | are       | exist to   |
|         |       | US\$   | Growth mainly | preferred | service    |
|         | US\$  | 59     | a result of   | by        | demand     |
|         | 40    | m      | increased     | consumers | from the   |
|         | mi    | illion | demand by the | which are | food       |
|         | llion | (CIF   | price         | readily   | service    |
|         | (CIF  | value) | sensitive     | available | and bakery |
|         | v     |        | food service  | all year  | sectors.   |
|         | alue) |        | and bakery    | round.    |            |
|         |       |        | sectors.      | This is   |            |
|         |       |        |               | more a    |            |
|         |       |        |               | food      |            |
|         |       |        |               | service   |            |
|         |       |        |               | and       |            |
|         |       |        |               | bakery    |            |
|         |       |        |               | demand    |            |
|         |       |        |               | product.  |            |
+---------+-------+--------+---------------+-----------+------------+
| Cho     | 9,991 | 11,513 | Growing by 3% | Strong    | Opp        |
| colates | tons  | tons   | per annum.    | co        | ortunities |
|         |       |        |               | mpetition | exist in   |
|         | US\$  | US\$   | Slow growing  | from      | supplying  |
|         | 49    | 83     | market.       | Malaysia  | gift       |
|         | mi    | m      | Largely a     | for       | chocolate  |
|         | llion | illion | gift market   | filled    | and exotic |
|         | (CIF  | (CIF   | which has     | chocolate | chocolate  |
|         | v     | value) | seasonal      | products. | products   |
|         | alue) |        | demand that   | Declining | to meet    |
|         |       |        | peaks around  | market    | changing   |
|         |       |        | Christmas and | for plain | demands by |
|         |       |        | Chinese New   | chocolate | consumers. |
|         |       |        | Year period.  | products. |            |
|         |       |        | Consumers     |           |            |
|         |       |        | increasingly  |           |            |
|         |       |        | prefer filled |           |            |
|         |       |        | chocolates,   |           |            |
|         |       |        | exotic        |           |            |
|         |       |        | chocolate     |           |            |
|         |       |        | products and  |           |            |
|         |       |        | gift          |           |            |
|         |       |        | chocolates to |           |            |
|         |       |        | plain         |           |            |
|         |       |        | chocolate     |           |            |
|         |       |        | bars.         |           |            |
+---------+-------+--------+---------------+-----------+------------+
| Pet     | 8,173 | 9,931  | Growing at 4% | It is     | This       |
| food    | tons  | tons   | per annum.    | inc       | market     |
|         |       |        |               | reasingly | continues  |
|         | US\$  | US\$   |               | fa        | to be      |
|         | 11    | 16     |               | shionable | attractive |
|         | mi    | m      |               | for the   | for the    |
|         | llion | illion |               | middle to | USA and US |
|         | (CIF  | (CIF   |               | upper     | exporters  |
|         | v     | value) |               | income    | should     |
|         | alue) |        |               | groups to | capitalize |
|         |       |        |               | own       | on the     |
|         |       |        |               | exotic    | growth in  |
|         |       |        |               | pet dogs  | this       |
|         |       |        |               | and cats. | market.    |
|         |       |        |               | Dogs are  |            |
|         |       |        |               | generally |            |
|         |       |        |               | preferred |            |
|         |       |        |               | by        |            |
|         |       |        |               | Sin       |            |
|         |       |        |               | gaporeans |            |
|         |       |        |               | to cats.  |            |
|         |       |        |               | Few       |            |
|         |       |        |               | con       |            |
|         |       |        |               | straints/ |            |
|         |       |        |               |           |            |
|         |       |        |               | barriers  |            |
|         |       |        |               | exist     |            |
|         |       |        |               | under     |            |
|         |       |        |               | c         |            |
|         |       |        |               | onditions |            |
|         |       |        |               | where     |            |
|         |       |        |               | d         |            |
|         |       |        |               | isposable |            |
|         |       |        |               | income is |            |
|         |       |        |               | growing.  |            |
+---------+-------+--------+---------------+-----------+------------+
| Note:   |       |        |               |           |            |
| All the |       |        |               |           |            |
| above   |       |        |               |           |            |
| me      |       |        |               |           |            |
| ntioned |       |        |               |           |            |
| p       |       |        |               |           |            |
| roducts |       |        |               |           |            |
| are     |       |        |               |           |            |
| free of |       |        |               |           |            |
| import  |       |        |               |           |            |
| duties. |       |        |               |           |            |
|         |       |        |               |           |            |
| Source: |       |        |               |           |            |
| Data    |       |        |               |           |            |
| from    |       |        |               |           |            |
| the     |       |        |               |           |            |
| Dep     |       |        |               |           |            |
| artment |       |        |               |           |            |
| of      |       |        |               |           |            |
| Sta     |       |        |               |           |            |
| tistics |       |        |               |           |            |
+---------+-------+--------+---------------+-----------+------------+

**Category B: U.S. Products not Present in Significant Quantities in the
Market That Have Good Sales Potential**

+---------+-------+--------+---------------+-----------+------------+
| **      | **2   | **     | **5 year      | **Key     | **Market   |
| Product | 002** | 2006** | Average       | co        | attr       |
| cat     |       |        | Annual Import | nstraints | activeness |
| egory** | *     | **Imp  | Growth Rate** | over      | for USA**  |
|         | *Impo | orts** |               | market    |            |
|         | rts** |        |               | deve      |            |
|         |       |        |               | lopment** |            |
+---------+-------+--------+---------------+-----------+------------+
| Dairy   | 17    | 2      | 6% growth per | High      | Good sales |
|         | 4,066 | 28,280 | annum.        | levels of | potential  |
|         |       | tons   |               | existing  | exists     |
|         | tons  |        | Market growth | co        | pa         |
|         |       | US\$   | was seen      | mpetition | rticularly |
|         | US\$  | 442    | mainly in     | for       | for pizza  |
|         | 233   | m      | yoghurt,      | market    | cheese and |
|         | mi    | illion | butter,       | share     | processed  |
|         | llion | (CIF   | cheese and    | amongst   | cheese as  |
|         | (CIF  | value) | infant milk   | key       | well as    |
|         | v     |        | powder.       | s         | butter.    |
|         | alue) |        | Market        | uppliers, | Good sales |
|         |       |        | decline was   | both      | potential  |
|         |       |        | seen mainly   | local and | also       |
|         |       |        | in liquid     | overseas, | exists for |
|         |       |        | milk.         | make new  | supply of  |
|         |       |        |               | entry     | dairy      |
|         |       |        |               | difficult | i          |
|         |       |        |               | and       | ngredients |
|         |       |        |               | costly.   | for        |
|         |       |        |               |           | recombined |
|         |       |        |               |           | liquid     |
|         |       |        |               |           | milk.      |
+---------+-------+--------+---------------+-----------+------------+
| Infant  | 6,000 | 6,302  | Growing by 1% | Nestlé's  | Attractive |
| food,   |       |        | per annum.    | strength  | for US     |
| ex      | tons  | tons   |               | in the    | exporters  |
| cluding |       |        | Slow growing  | market.   | wishing to |
| dairy   | US\$  | US\$   | market,       | Young     | take       |
| p       | 11    | 14     | mainly        | mothers   | advantage  |
| roducts | mi    | m      | demanded by   | appear to | of the     |
|         | llion | illion | convenient    | prefer    | c          |
|         | (CIF  | (CIF   | seeking       | easy-t    | onvenience |
|         | v     | value) | well-informed | o-prepare | demanded   |
|         | alue) |        | young mothers | cereal    | by young   |
|         |       |        | from middle   | based     | working    |
|         |       |        | to upper      | infant    | mothers.   |
|         |       |        | income group. | foods     |            |
|         |       |        |               | that are  |            |
|         |       |        |               | similar   |            |
|         |       |        |               | to        |            |
|         |       |        |               | tr        |            |
|         |       |        |               | aditional |            |
|         |       |        |               | baby      |            |
|         |       |        |               | foods.    |            |
+---------+-------+--------+---------------+-----------+------------+
| Fresh   | 34    | 3      | 2% growth per | Co        | Demand for |
| veg     | 5,306 | 84,338 | annum.        | mpetition | fresh      |
| etables | tons  | tons   |               | from key  | temperate  |
|         |       |        | Slow growing  | es        | vegetables |
|         | US\$  | US\$   | market with   | tablished | will       |
|         | 142   | 191    | large demand  | suppliers | continue   |
|         | mi    | m      | for Asian     | from      | to grow as |
|         | llion | illion | vegetables.   | Malaysia  | more       |
|         | (CIF  | (CIF   | Faster growth | and China | varieties  |
|         | v     | value) | seen in       | which     | are        |
|         | alue) |        | potatoes,     | supply    | adopted    |
|         |       |        | tomatoes,     | mainly    | into local |
|         |       |        | carrots and   | Asian     | food       |
|         |       |        | other         | v         | culture,   |
|         |       |        | temperate     | egetables | pa         |
|         |       |        | vegetables    | to        | rticularly |
|         |       |        | such as       | S         | broccoli,  |
|         |       |        | broccoli,     | ingapore. | ca         |
|         |       |        | asparagus and |           | uliflower, |
|         |       |        | alike.        | The bulk  | carrots,   |
|         |       |        |               | of demand | young      |
|         |       |        |               | is for    | sweet      |
|         |       |        |               | Asian     | corn,      |
|         |       |        |               | fresh     | p          |
|         |       |        |               | v         | eas/beans, |
|         |       |        |               | egetables | asparagus  |
|         |       |        |               | although  | and        |
|         |       |        |               | potatoes, | capsicum.  |
|         |       |        |               | tomatoes, |            |
|         |       |        |               | cau       |            |
|         |       |        |               | liflower, |            |
|         |       |        |               | broccoli, |            |
|         |       |        |               | young     |            |
|         |       |        |               | sweet     |            |
|         |       |        |               | corn,     |            |
|         |       |        |               | carrots,  |            |
|         |       |        |               | asparagus |            |
|         |       |        |               | and       |            |
|         |       |        |               | capsicum  |            |
|         |       |        |               | are       |            |
|         |       |        |               | inc       |            |
|         |       |        |               | reasingly |            |
|         |       |        |               | used in   |            |
|         |       |        |               | Sing      |            |
|         |       |        |               | aporeans' |            |
|         |       |        |               | home      |            |
|         |       |        |               | cooking.  |            |
+---------+-------+--------+---------------+-----------+------------+
| Fresh   | 17    | 1      | Declining by  | Market    | Fastest    |
| fruits, | 6,181 | 62,832 | 1% per annum. | has       | growth     |
| te      | tons  | tons   |               | matured   | seen in    |
| mperate |       |        |               | for       | berries    |
|         | US\$  | US\$   |               | popular   | and stone  |
|         | 142   | 169    |               | temperate | fruits.    |
|         | mi    | m      |               | fruits    | Opp        |
|         | llion | illion |               | which     | ortunities |
|         | (CIF  | (CIF   |               | have been | exist for  |
|         | v     | value) |               | adopted   | US         |
|         | alue) |        |               | into      | exporters  |
|         |       |        |               | local     | to         |
|         |       |        |               | food      | capitalize |
|         |       |        |               | culture   | on growth  |
|         |       |        |               | such as   | in the     |
|         |       |        |               | apples,   | berries    |
|         |       |        |               | pears,    | and stone  |
|         |       |        |               | oranges   | fruits     |
|         |       |        |               | and       | segment as |
|         |       |        |               | grapes.   | consumers  |
|         |       |        |               |           | are        |
|         |       |        |               | Market    | becoming   |
|         |       |        |               | still in  | more       |
|         |       |        |               | rapid     | familiar   |
|         |       |        |               | growth    | with them. |
|         |       |        |               | for other |            |
|         |       |        |               | fruits    |            |
|         |       |        |               | such as   |            |
|         |       |        |               | berries   |            |
|         |       |        |               | and stone |            |
|         |       |        |               | fruits    |            |
|         |       |        |               | which     |            |
|         |       |        |               | remain    |            |
|         |       |        |               | exotic    |            |
|         |       |        |               | and are   |            |
|         |       |        |               | inc       |            |
|         |       |        |               | reasingly |            |
|         |       |        |               | consumed  |            |
|         |       |        |               | as        |            |
|         |       |        |               | al        |            |
|         |       |        |               | ternative |            |
|         |       |        |               | fruits.   |            |
+---------+-------+--------+---------------+-----------+------------+
| Sugar   | 1     | 14,025 | Growing by 5% | Strong    | Opp        |
| con     | 1,076 | tons   | per annum.    | co        | ortunities |
| fection | tons  |        |               | mpetition | exist in   |
|         |       | US\$   | Consumers,    | from      | supplying  |
|         | US\$  | 45     | particularly  | products  | novelty    |
|         | 35    | m      | the younger   | made in   | products   |
|         | mi    | illion | generation,   | China and | targeted   |
|         | llion | (CIF   | are           | Malaysia. | at the     |
|         | (CIF  | value) | increasingly  |           | younger    |
|         | v     |        | attracted by  |           | g          |
|         | alue) |        | the           |           | eneration. |
|         |       |        | temptingly    |           |            |
|         |       |        | packaged and  |           |            |
|         |       |        | fun looking   |           |            |
|         |       |        | novelty       |           |            |
|         |       |        | products.     |           |            |
+---------+-------+--------+---------------+-----------+------------+
| Non-al  | 255   | 310    | 4% growth per | Very      | Opp        |
| coholic | mi    | m      | annum.        | strong    | ortunities |
| be      | llion | illion |               | co        | exist for  |
| verages | l     | liters | The market is | mpetition | US         |
|         | iters |        | dominated by  | from      | exporters  |
|         |       | US\$   | local         | local     | to supply  |
|         | US\$  | 144    | products      | products  | com        |
|         | 119   | m      | which meet    | and       | petitively |
|         | mi    | illion | closely with  | brands    | priced     |
|         | llion | (CIF   | consumer      | which     | juices     |
|         | (CIF  | value) | taste.        | meet      | (fruits    |
|         | v     |        |               | closely   | and        |
|         | alue) |        | Import growth | with      | mixture of |
|         |       |        | is mainly in  | consumer  | fruits and |
|         |       |        | cordials, new | taste     | ve         |
|         |       |        | Asian drinks  | demands.  | getables), |
|         |       |        | and fruit     |           | sparkling  |
|         |       |        | juices as     |           | juices as  |
|         |       |        | well as       |           | well as    |
|         |       |        | sparkling     |           | products   |
|         |       |        | juices.       |           | that can   |
|         |       |        |               |           | be         |
|         |       |        |               |           | targeted   |
|         |       |        |               |           | at the     |
|         |       |        |               |           | health     |
|         |       |        |               |           | food and   |
|         |       |        |               |           | organic    |
|         |       |        |               |           | food       |
|         |       |        |               |           | segments   |
|         |       |        |               |           | of the     |
|         |       |        |               |           | market.    |
+---------+-------+--------+---------------+-----------+------------+
| Wine    | 11    | 20     | 16 % growth   | Wine is   | Opp        |
|         | mi    | m      | per annum.    | inc       | ortunities |
|         | llion | illion |               | reasingly | exist for  |
|         | l     | liters | Fast growing  | being     | US         |
|         | iters |        | market,       | consumed  | exporters  |
|         |       | US\$   | particularly  | by the    | to develop |
|         | US\$  | 311    | demanded at   | younger   | this       |
|         | 118   | m      | weddings and  | g         | market for |
|         | mi    | illion | other major   | eneration | their new  |
|         | llion | (CIF   | celebrations  | of adult  | world      |
|         | (CIF  | value) | as purchasers | Sin       | wines as   |
|         | v     |        | increasingly  | gaporean, | increasing |
|         | alue) |        | switch from   | par       | number of  |
|         |       |        | spirits       | ticularly | young      |
|         |       |        | (brandy) to   | those     | Si         |
|         |       |        | wine          | educated  | ngaporeans |
|         |       |        | (sparkling    | abroad    | acquire a  |
|         |       |        | and           | and/or    | taste for  |
|         |       |        | no            | the       | wines.     |
|         |       |        | n-sparkling). | well-     |            |
|         |       |        | In addition,  | travelled |            |
|         |       |        | the young     | group of  |            |
|         |       |        | adults        | c         |            |
|         |       |        | increasingly  | onsumers. |            |
|         |       |        | prefer        |           |            |
|         |       |        | sipping wines | List of   |            |
|         |       |        | to other      | Excise    |            |
|         |       |        | alcoholic     | Duty can  |            |
|         |       |        | drinks to     | be        |            |
|         |       |        | appear        | obtained  |            |
|         |       |        | s             | from      |            |
|         |       |        | ophisticated. | [         |            |
|         |       |        |               | http://ww |            |
|         |       |        |               | w.customs |            |
|         |       |        |               | .gov.sg]( |            |
|         |       |        |               | http://ww |            |
|         |       |        |               | w.customs |            |
|         |       |        |               | .gov.sg/) |            |
+---------+-------+--------+---------------+-----------+------------+
| Beer    | 59    | 71     | 4 % growth    | Very      | Opp        |
|         | mi    | m      | per annum.    | strong    | ortunities |
|         | llion | illion |               | co        | exist for  |
|         | l     | liters | The market is | mpetition | US         |
|         | iters |        | dominated by  | from      | exporters  |
|         |       | US\$   | local brands  | local     | to develop |
|         | US\$  | 71     | as well as    | brands    | a niche    |
|         | 49    | m      | Malaysian     | and from  | market for |
|         | mi    | illion | brands.       | Carlsberg | its        |
|         | llion | (CIF   |               | (M        | brands,    |
|         | (CIF  | value) |               | alaysia). | targeting  |
|         | v     |        |               |           | the food   |
|         | alue) |        |               | Most      | service    |
|         |       |        |               | imports   | sector.    |
|         |       |        |               | have      |            |
|         |       |        |               | tentative |            |
|         |       |        |               | niche     |            |
|         |       |        |               | presence  |            |
|         |       |        |               | as the    |            |
|         |       |        |               | foreign   |            |
|         |       |        |               | brands    |            |
|         |       |        |               | are       |            |
|         |       |        |               | unknown   |            |
|         |       |        |               | to        |            |
|         |       |        |               | c         |            |
|         |       |        |               | onsumers. |            |
|         |       |        |               |           |            |
|         |       |        |               | List of   |            |
|         |       |        |               | Customs   |            |
|         |       |        |               | Duty and  |            |
|         |       |        |               | Excise    |            |
|         |       |        |               | Duty can  |            |
|         |       |        |               | be        |            |
|         |       |        |               | obtained  |            |
|         |       |        |               | from      |            |
|         |       |        |               | [         |            |
|         |       |        |               | http://ww |            |
|         |       |        |               | w.customs |            |
|         |       |        |               | .gov.sg]( |            |
|         |       |        |               | http://ww |            |
|         |       |        |               | w.customs |            |
|         |       |        |               | .gov.sg/) |            |
+---------+-------+--------+---------------+-----------+------------+
| Spirits | 16    | 38     | Growing by 28 | High      | Opp        |
|         | mi    | m      | % per annum.  | duties on | ortunities |
|         | llion | illion |               | these     | exist for  |
|         | l     | liters | Rapidly       | products  | US         |
|         | iters |        | growing       | and       | exporters  |
|         |       | US\$   | market.       | consumer  | to develop |
|         | US\$  | 591    |               | p         | the market |
|         | 228   | m      | Whiskey has   | reference | for US     |
|         | mi    | illion | overtaken     | for       | whiskey    |
|         | llion | (CIF   | brandy as a   | brandy    | brands.    |
|         | (CIF  | value) | spirit of     | and       |            |
|         | v     |        | choice for    | whiskey   |            |
|         | alue) |        | the high      | make this |            |
|         |       |        | income and    | a costly  |            |
|         |       |        | sophisticated | market to |            |
|         |       |        | mature        | enter for |            |
|         |       |        | consumers.    | new-      |            |
|         |       |        | Whiskey now   | to-market |            |
|         |       |        | commands      | brands.   |            |
|         |       |        | around 42% of |           |            |
|         |       |        | the market    | List of   |            |
|         |       |        | compared to   | Excise    |            |
|         |       |        | brandy with   | Duty can  |            |
|         |       |        | 38% of the    | be        |            |
|         |       |        | market.       | obtained  |            |
|         |       |        |               | from      |            |
|         |       |        |               | [         |            |
|         |       |        |               | http://ww |            |
|         |       |        |               | w.customs |            |
|         |       |        |               | .gov.sg]( |            |
|         |       |        |               | http://ww |            |
|         |       |        |               | w.customs |            |
|         |       |        |               | .gov.sg/) |            |
|         |       |        |               |           |            |
|         |       |        |               | The       |            |
|         |       |        |               | Excise    |            |
|         |       |        |               | Duty for  |            |
|         |       |        |               | Whiskey   |            |
|         |       |        |               | exceeding |            |
|         |       |        |               | 46% vol,  |            |
|         |       |        |               | is S\$70  |            |
|         |       |        |               | per liter |            |
|         |       |        |               | of        |            |
|         |       |        |               | alcohol.  |            |
+---------+-------+--------+---------------+-----------+------------+
| Note:   |       |        |               |           |            |
| All the |       |        |               |           |            |
| above   |       |        |               |           |            |
| me      |       |        |               |           |            |
| ntioned |       |        |               |           |            |
| p       |       |        |               |           |            |
| roducts |       |        |               |           |            |
| are     |       |        |               |           |            |
| free of |       |        |               |           |            |
| import  |       |        |               |           |            |
| duty    |       |        |               |           |            |
| and     |       |        |               |           |            |
| Customs |       |        |               |           |            |
| Duty    |       |        |               |           |            |
| except  |       |        |               |           |            |
| for     |       |        |               |           |            |
| al      |       |        |               |           |            |
| coholic |       |        |               |           |            |
| bev     |       |        |               |           |            |
| erages. |       |        |               |           |            |
| A       |       |        |               |           |            |
| listing |       |        |               |           |            |
| of      |       |        |               |           |            |
| Customs |       |        |               |           |            |
| Duty    |       |        |               |           |            |
| and     |       |        |               |           |            |
| Excise  |       |        |               |           |            |
| Duty    |       |        |               |           |            |
| app     |       |        |               |           |            |
| licable |       |        |               |           |            |
| to      |       |        |               |           |            |
| al      |       |        |               |           |            |
| coholic |       |        |               |           |            |
| be      |       |        |               |           |            |
| verages |       |        |               |           |            |
| can be  |       |        |               |           |            |
| o       |       |        |               |           |            |
| btained |       |        |               |           |            |
| from    |       |        |               |           |            |
| [http:  |       |        |               |           |            |
| //www.c |       |        |               |           |            |
| ustoms. |       |        |               |           |            |
| gov.sg] |       |        |               |           |            |
| (http:/ |       |        |               |           |            |
| /www.cu |       |        |               |           |            |
| stoms.g |       |        |               |           |            |
| ov.sg/) |       |        |               |           |            |
|         |       |        |               |           |            |
| Source: |       |        |               |           |            |
| Data    |       |        |               |           |            |
| from    |       |        |               |           |            |
| the     |       |        |               |           |            |
| Dep     |       |        |               |           |            |
| artment |       |        |               |           |            |
| of      |       |        |               |           |            |
| Sta     |       |        |               |           |            |
| tistics |       |        |               |           |            |
+---------+-------+--------+---------------+-----------+------------+

**Category C: U.S. Products not Present in the Market Because They Face
Significant Barriers**

+---------+-------+--------+---------------+-----------+------------+
| **      | **2   | **     | **5 year      | **Key     | **Market   |
| Product | 002** | 2006** | Average       | co        | attr       |
| cat     |       |        | Annual Import | nstraints | activeness |
| egory** | *     | **Imp  | Growth Rate** | over      | for USA**  |
|         | *Impo | orts** |               | market    |            |
|         | rts** |        |               | deve      |            |
|         |       |        |               | lopment** |            |
+---------+-------+--------+---------------+-----------+------------+
| Beef    | 1     | 17,508 | 2% growth per | The BSE   | This       |
| (fresh, | 5,701 |        | annum.        | concerns  | market     |
| chilled |       | tons   |               | by        | continues  |
| or      | tons  |        | Market has    | consumers | to be a    |
| frozen) |       | US\$   | been growing  | have      | challenge  |
|         | US\$  | 65.6   | slowly in     | remained  | for beef   |
|         | 40.9  | m      | recent years. | amongst   | exporters  |
|         | mi    | illion |               | Sin       | to         |
|         | llion | (CIF   |               | gaporeans | Singapore. |
|         | (CIF  | value) |               | and those |            |
|         | v     |        |               | who used  | Even beef  |
|         | alue) |        |               | to        | from       |
|         |       |        |               | consume   | BSE-free   |
|         |       |        |               | beef have | countries  |
|         |       |        |               | continued | is being   |
|         |       |        |               | to avoid  | avoided by |
|         |       |        |               | beef.     | health     |
|         |       |        |               | This is   | -conscious |
|         |       |        |               | likely to | local      |
|         |       |        |               | continue  | consumers. |
|         |       |        |               | into the  |            |
|         |       |        |               | future    |            |
|         |       |        |               | unless    |            |
|         |       |        |               | such      |            |
|         |       |        |               | concerns  |            |
|         |       |        |               | are       |            |
|         |       |        |               | el        |            |
|         |       |        |               | iminated. |            |
|         |       |        |               | Today,    |            |
|         |       |        |               | the       |            |
|         |       |        |               | preferred |            |
|         |       |        |               | meat      |            |
|         |       |        |               | includes  |            |
|         |       |        |               | chicken   |            |
|         |       |        |               | and pork  |            |
|         |       |        |               | amongst   |            |
|         |       |        |               | Sing      |            |
|         |       |        |               | aporeans. |            |
+---------+-------+--------+---------------+-----------+------------+
| Whole   | 1     | 17,221 | 3% growth per | Household | Lower end  |
| c       | 5,158 |        | annum.        | pu        | food       |
| hicken, |       | tons   |               | rchasers, | service    |
| frozen  | tons  |        | Slow growth   | who are   | operators  |
|         |       | US\$   | experienced   | the major | continue   |
|         | US\$  | 21     | in recent     | p         | to demand  |
|         | 14    | m      | years.        | urchasers | price      |
|         | mi    | illion |               | of        | c          |
|         | llion | (CIF   |               | chicken,  | ompetitive |
|         | (CIF  | value) |               | continue  | frozen     |
|         | v     |        |               | to prefer | poultry    |
|         | alue) |        |               | fresh     | from       |
|         |       |        |               | poultry   | Brazil.    |
|         |       |        |               | to frozen |            |
|         |       |        |               | poultry.  | This       |
|         |       |        |               |           | market     |
|         |       |        |               |           | will be a  |
|         |       |        |               |           | challenge  |
|         |       |        |               |           | for US     |
|         |       |        |               |           | exporters  |
|         |       |        |               |           | who are    |
|         |       |        |               |           | unable to  |
|         |       |        |               |           | compete on |
|         |       |        |               |           | price.     |
+---------+-------+--------+---------------+-----------+------------+
| Frozen  | 2     | 19,065 | Declining by  | Products  | This is    |
| veg     | 1,204 | tons   | 2% per annum. | are       | more a     |
| etables | tons  |        |               | mainly    | food       |
|         |       | US\$   |               | demanded  | service    |
|         | US\$  | 19     |               | by the    | demand     |
|         | 20    | m      |               | food      | product.   |
|         | mi    | illion |               | service   |            |
|         | llion | (CIF   |               | sector    | Opp        |
|         | (CIF  | value) |               | (western  | ortunities |
|         | v     |        |               | style     | exist to   |
|         | alue) |        |               | res       | service    |
|         |       |        |               | taurants) | niche      |
|         |       |        |               | as most   | demand     |
|         |       |        |               | consumers | from       |
|         |       |        |               | still     | western    |
|         |       |        |               | prefer    | e          |
|         |       |        |               | fresh     | xpatriates |
|         |       |        |               | v         | in the     |
|         |       |        |               | egetables | retail     |
|         |       |        |               | which are | market.    |
|         |       |        |               | readily   |            |
|         |       |        |               | available |            |
|         |       |        |               | all year  |            |
|         |       |        |               | round.    |            |
+---------+-------+--------+---------------+-----------+------------+
| Canned/ | 2     | 20,783 | Declining by  | Mainly    | This is    |
| bottled | 3,998 | tons   | 3% per annum. | demanded  | more a     |
| veg     | tons  |        |               | by the    | food       |
| etables |       | US\$   |               | food      | service    |
|         | US\$  | 25     |               | service   | demand     |
|         | 28    | m      |               | sector    | product.   |
|         | mi    | illion |               | (Chinese  |            |
|         | llion | (CIF   |               | and       | Opp        |
|         | (CIF  | value) |               | western   | ortunities |
|         | v     |        |               | style     | exist to   |
|         | alue) |        |               | res       | service    |
|         |       |        |               | taurants) | niche      |
|         |       |        |               | as most   | demand     |
|         |       |        |               | Si        | from       |
|         |       |        |               | ngaporean | western    |
|         |       |        |               | shoppers  | e          |
|         |       |        |               | still     | xpatriates |
|         |       |        |               | prefer    | in the     |
|         |       |        |               | fresh     | retail     |
|         |       |        |               | ve        | market.    |
|         |       |        |               | getables. |            |
|         |       |        |               | The range |            |
|         |       |        |               | of canned |            |
|         |       |        |               | foods     |            |
|         |       |        |               | consumed  |            |
|         |       |        |               | in        |            |
|         |       |        |               | Singapore |            |
|         |       |        |               | is        |            |
|         |       |        |               | currently |            |
|         |       |        |               | very      |            |
|         |       |        |               | small.    |            |
+---------+-------+--------+---------------+-----------+------------+
| Edible  | 2     | 23,795 | Growing by 2% | Declining | Strong     |
| nuts    | 1,595 | tons   | per annum.    | market    | c          |
|         | tons  |        |               | for       | ompetition |
|         |       | US\$   | Slow growing  | imported  | from local |
|         | US\$  | 36     | market which  | roasted   | brands. In |
|         | 26    | m      | has started   | peanuts,  | addition,  |
|         | mi    | illion | to mature.    | cashew    | strong     |
|         | llion | (CIF   | Consumers     | nuts and  | c          |
|         | (CIF  | value) | have largely  | pistachio | ompetition |
|         | v     |        | switched to   | due to    | exists     |
|         | alue) |        | potato based  | co        | from price |
|         |       |        | snacks.       | mpetition | c          |
|         |       |        |               | from      | ompetitive |
|         |       |        |               | local     | supply     |
|         |       |        |               | brands.   | countries  |
|         |       |        |               |           | that       |
|         |       |        |               |           | supply to  |
|         |       |        |               |           | local      |
|         |       |        |               |           | edible     |
|         |       |        |               |           | nuts       |
|         |       |        |               |           | manu       |
|         |       |        |               |           | facturers. |
+---------+-------+--------+---------------+-----------+------------+
| Note:   |       |        |               |           |            |
| All the |       |        |               |           |            |
| above   |       |        |               |           |            |
| me      |       |        |               |           |            |
| ntioned |       |        |               |           |            |
| p       |       |        |               |           |            |
| roducts |       |        |               |           |            |
| are     |       |        |               |           |            |
| free of |       |        |               |           |            |
| import  |       |        |               |           |            |
| duty.   |       |        |               |           |            |
|         |       |        |               |           |            |
| Source: |       |        |               |           |            |
| Data    |       |        |               |           |            |
| from    |       |        |               |           |            |
| the     |       |        |               |           |            |
| Dep     |       |        |               |           |            |
| artment |       |        |               |           |            |
| of      |       |        |               |           |            |
| Sta     |       |        |               |           |            |
| tistics |       |        |               |           |            |
+---------+-------+--------+---------------+-----------+------------+

END OF REPORT