Required Report - public distribution

**Date:** 12/19/2003

**GAIN Report Number:** AS3050

AS3050

**Australia**

**Retail Food Sector**

**Report**

**2003**

**Approved by:**

![](media/image1.wmf)Andrew C. Burst, Agricultural Counselor

U.S. Embassy

**Prepared by:**

Hassall & Associates

**Report Highlights:**

The total value of food retailing in Australia in 2002 was US\$37
billion. Over 70% of food expenditures occur within the supermarket and
grocery sector. The total value of food and beverage imports in 2002 was
US\$2.8 billion. Agents/distributors are the key to developing exports
of U.S. consumer-ready foods to Australia. Product innovation drives
growth in many product categories. Convenient, healthy, fresh and
diverse meal solutions are a rapidly emerging consumer preference that
provides potential for imported products.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Canberra \[AS1\]

\[AS\]

This report was drafted by consultants:

Hassall & Associates Pty Ltd

GPO Box 4625

Sydney, NSW 1044

Australia

> Tel: +61-2-9241-5655
>
> Fax: +61-2-9241-5684
>
> Email: <hassyd@ozemail.com.au>

Web: [www.hassall.com.au](http://www.hassall.com.au/)

![](media/image2.png){width="3.9166666666666665in"
height="3.814583333333333in"}

Table of Contents

[SECTION I. MARKET SUMMARY 4](#section-i.-market-summary)

[Value of Overall Retail Food Sales Over the Past Five Years
5](#value-of-overall-retail-food-sales-over-the-past-five-years)

[Value of Imported Food vs Domestic Products Over the Past Five Years
5](#value-of-imported-food-vs-domestic-products-over-the-past-five-years)

[Expected Growth Overall Retail and Sub-sectors
6](#expected-growth-overall-retail-and-sub-sectors)

[Trends in Distribution Channels 7](#trends-in-distribution-channels)

[Number and Type of Retail Outlets
8](#number-and-type-of-retail-outlets)

[Trends in Services Offered by Retailers
9](#trends-in-services-offered-by-retailers)

[Advantages and Challenges 11](#advantages-and-challenges)

[SECTION II: ROAD MAP FOR MARKET ENTRY
12](#section-ii-road-map-for-market-entry)

[Entry Strategy 12](#entry-strategy)

[Market Structure 13](#market-structure)

[A. SUPER STORES, SUPERMARKETS, HYPER MARKETS OR SUPER CENTERS, CLUB AND
WAREHOUSE OUTLETS
15](#a.-super-stores-supermarkets-hyper-markets-or-super-centers-club-and-warehouse-outlets)

[B. CONVENIENCE STORES, GAS MARTS, KIOSKS
17](#b.-convenience-stores-gas-marts-kiosks)

[C. TRADITIONAL MARKETS -- MOM/POP INDEPENDENT GROCERY, WET MARKETS
19](#c.-traditional-markets-mompop-independent-grocery-wet-markets)

[SECTION III: COMPETITION 22](#section-iii-competition)

[SECTION IV: BEST PRODUCT PROSPECTS
25](#section-iv-best-product-prospects)

[Category A: Products Present in the Market Which Have Good Sales
Potential
25](#category-a-products-present-in-the-market-which-have-good-sales-potential)

[Category B: Products Not Present in Significant Quantities But Which
Have Good Sales Potential
27](#category-b-products-not-present-in-significant-quantities-but-which-have-good-sales-potential)

[Category C: Products Not Present in the Market Because They Face
Significant Barriers.
29](#category-c-products-not-present-in-the-market-because-they-face-significant-barriers.)

[SECTION V. POST CONTACT AND FURTHER INFORMATION
31](#section-v.-post-contact-and-further-information)

[Import Regulations 31](#import-regulations)

[Australia's Food Labeling Regulations
31](#australias-food-labeling-regulations)

[Industry Information 31](#industry-information)

[Trade Shows 32](#trade-shows)

[Bibliography 32](#bibliography)

# SECTION I. MARKET SUMMARY

-   The market for food grocery sales in Australia is concentrated along
    the east coast where population and disposable income is greatest.
    New South Wales (NSW) and the Australian Capital Territory (ACT)
    dominate with a 35.2% share of the supermarket and grocery sector,
    followed by 24.4% for Victoria, 18.8% for Queensland, 10.5% for
    Western Australia, 7.7% for South Australia, 2.1% for Tasmania and
    1.2% for the Northern Territory.

-   The predominant retail food outlets in Australia are superstore and
    supermarket chains, small "mom and pop" independent supermarkets and
    grocery stores, warehouse/wholesale clubs, convenience store chains
    and independents, and independent supermarkets operating under
    banner groups. There are only two hypermarkets (Pick 'n' Pay) in
    Australia, both are located in Brisbane and are owned by Coles Myer
    Ltd.

-   Woolworths and Coles/Bi-Lo continue to hold the majority of the
    retail value share of the national packaged grocery market with
    41.7% and 35.0% respectively. Independent retailers have increased
    their share of the market to 21.4% in 2002 from 18.8% in 2001.

-   Most people rotate between a suite of stores. Only a very low
    percentage of people (10%) shop only in Woolworths stores and 50% of
    people shop in both Woolworths and Coles plus other supermarkets.

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-   The large international retail chain Aldi opened its first store in
    Sydney in January 2001 and now has 40 stores in New South Wales, 11
    in Victoria and one in the ACT. Aldi is expected to operate more
    than 100 stores across Australia by 2004. Aldi held a 3.2% share of
    the NSW market in the first half of 2002.

-   The major chain and independent supermarket outlets offer a variety
    of departments including fresh fruit and vegetables, meal solutions
    including salads and pasta meals, bakery products, fresh seafood,
    large dairy cases with gourmet cheese sections, delicatessen
    products and frozen and dry packaged grocery products.

-   Australia does not have a system of wet markets; however,
    traditional fruit and vegetable and fish markets are still popular
    in all states. Independent grocery stores and smaller supermarket
    chains rely on these markets for supply. The major chains buy fresh
    fruit and vegetables, fish and meat directly from
    producers/suppliers and abattoirs.

-   Convenience shopping has become a way of life for Australians as the
    number of convenience stores continues to grow. Much of the growth
    has been centered in Sydney. The trend towards inner city living is
    part of 7 Eleven's (a major convenience store chain) expansion
    strategy. Today the company has 23 stores in Melbourne's central
    business district (CBD), compared to none ten years ago.

-   Gas mart convenience stores have continued to grow significantly,
    with the average consumer demanding a store that is close to home,
    clean and offering "the essentials".

Note: The following exchange rates were used to convert Australian
dollars to U.S. dollars for 1997 to 2003.

  ---------- -------- -------- -------- -------- -------- -------- ----------
             1997     1998     1999     2000     2001     2002     2003

  AUD/USD    0.7374   0.6285   0.6440   0.5761   0.5128   0.5438   0.6312\*
  ---------- -------- -------- -------- -------- -------- -------- ----------

Source: [www.rba.gov.au](http://www.rba.gov.au/)

\* Exchange rate for 2003 is the average of January -- September only.

## Value of Overall Retail Food Sales Over the Past Five Years

-   Table 1 summarizes the total food retail sales and growth for the
    past five years. The total value of food retailing in 2002 was
    US\$37 billion, which was an increase of over US\$3 billion
    from 2001. Over 70% of food expenditure (US\$27.4 billion) occurs
    within the supermarket and grocery sector, similarly experiencing an
    increase of 14% since 2001.

**Table 1: Total Food Retailing Over the Past Five Years (US\$
million)**

  --------------------------- ---------- ---------- ---------- ---------- ----------
  **Description**             **1998**   **1999**   **2000**   **2001**   **2002**

  **Total Food Retailing**    35,280     36,858     35,300     33,088     37,307

  Nominal Growth Rate U.S.    -10%       4%         -4%        -6%        13%

  Nominal Growth Rate AU      6%         2%         4%         8%         6%

                                                                          

  **Supermarkets and Grocery  24,362     26,295     25,352     23,781     27,044
  Stores Food Retailing^1^**                                              

  Real Growth Rate            -10%       8%         -4%        -6%        14%

  \% of Total Food Retailing  69%        71%        72%        72%        72%

                                                                          

  **Takeaway Food Retailing** 4,515      4,104      3,866      3,699      3,795

  Real Growth Rate            -19%       -9%        -6%        -4%        3%

  \% of Total Food Retailing  13%        11%        11%        11%        10%

                                                                          

  **Other Food Retailing^2^** 6,403      6,458      6,081      5,608      6,468

  Real Growth Rate            -4%        1%         -6%        -8%        13%

  \% of Total Food Retailing  18%        18%        17%        17%        17%
  --------------------------- ---------- ---------- ---------- ---------- ----------

1\. This class consists of units mainly engaged in retailing groceries
or non-specialized food lines, whether or not the selling is organized
on a self-service basis.

2\. This class consists of units mainly engaged in specialized food
retailing e.g. butchers, fresh fish retailing, fresh fruit and vegetable
retailing, bread and cake retailing, milk vending and confectionery.

## Value of Imported Food vs Domestic Products Over the Past Five Years

-   The total value of imports for the food and beverage sector in
    2001/2002 was US\$2.8 billion. This figure includes products at
    three different levels of transformation, including minimally
    transformed (indicates basic refining or manufacturing processes),
    moderately transformed (implies that manufacturing processes have
    processed or refined raw material into a recognizable product) and
    elaborately transformed (indicates commodities have undergone
    processes to create an end use product). Of the total value of food
    imported into Australia, U.S. imports contributed US\$294 million in
    1996, increasing to US\$338 million in 1998 and falling to US\$298
    million in 2000.

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-   In Australian dollars, food imports have risen for the last six
    years and have a five-year average annual import growth of 7.9%.
    However, when converted to U.S. dollars (Figure 1), peaks and
    troughs appear and the five-year average import growth is reduced to
    less than 1%.

**Figure 1. Total Australian Food Imports from 1995-96 to 2001-02**

![](media/image3.wmf)

-   Australian inputs (before value adding processes) into the food and
    beverage sector have been estimated for each sub-sector and are
    summarized in Table 2. Local inputs have been estimated by
    manipulating the latest available Australian Bureau of Statistics
    (ABS) statistics and are provided as an indicative estimate only.

######## Table 2: Estimated Value of Domestic Inputs (2001/02)

  ----------------------------------- -----------------------------------
  **Substantially Transformed**       **Local Inputs (\$Mil)**

  Meat                                4,392

  Seafood                             3,019

  Dairy                               986

  Fruit and Vegetables                588

  Oil and fat                         1,091

  Flour mill and cereal               534

  Bakery products                     2,208

  Other food                          2,482

  Beverage and malt                   15,299

  **TOTAL**                           **30,599**
  ----------------------------------- -----------------------------------

## Expected Growth Overall Retail and Sub-sectors 

-   The introduction of the GST (Goods and Services Tax) in July 2000
    caused negative real retail turnover growth for the first time
    since 1990. Retail turnover experienced a rapid post-GST recovery
    during 2001 and 2002, with above average real growth of 3.6% and
    4.4% respectively.

-   In the first quarter of 2003, retail turnover was down to the
    long-term average of 2.5%. High gasoline prices are most likely the
    cause of this decrease and AC Nielsen predicts that this trend could
    reverse over the remainder of 2003.

-   Supermarkets and grocery stores continue to increase their share of
    the food sector as seen in Figure 2. 'Other food retailing' (which
    includes fruit and vegetable stores, hot bread shops, butchers and
    liquor stores) has lost nearly one share point from 1990 to 2003,
    restaurants and cafes are becoming more popular and takeaway
    retailing is continuing a downward trend.

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-   Convenience store sales are growing at more than twice the rate of
    sales in the grocery channel, with current growth over 10%. Tobacco
    dominates merchandise sales, followed by soft drinks and
    confectionary.

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-   Restaurants and takeaways have been negatively affected by the GST,
    unlike supermarkets that continue to grow.

**Figure 2: Market Share by Food Channel, 1990-2003.**

![](media/image4.wmf)

## Trends in Distribution Channels

-   Distribution points in Australia are centralized. All major
    supermarket chains and warehouse/wholesale clubs operate their own
    network of national and regional distribution centers.

-   Woolworths will reduce its supermarket distribution centers (DCs)
    from 31 to 9 regional and two national. This means that fewer DCs
    will handle up to three times the volume per DC. These new DCs will
    process all merchandise categories, requiring multiple temperature
    environments. The national DCs will be a source of slow moving
    products for all stores.

-   1999 saw the restructuring of the retail food sector with
    wholesalers divesting corporate supermarket outlets and developing
    banner groups such as IGA (Independent Grocers of Australia),
    Foodland, Foodlink, Food-way and Four Square. Global U.S.-based IGA
    system has been licensed to Metcash Limited (formerly David's
    Limited).

-   In 2002, the non-IGA independents consolidated under three groups --
    FoodWorks, Australian United Retailers and United Star.

-   Woolworths-owned Australian Independent Wholesalers (AIW) collapsed
    following the decision by FoodWorks to contract its supply business
    from Metcash.

-   In December 2002 a new wholesaler formed, Australian Retail
    Logistix, to service the United Star Supermarkets Limited members
    under two banners, 5 STAR and SPAR. Their customers include 250
    retail customers in four states.

-   Banner groups are used by a large number of independent retailers to
    improve the buying, advertising and competitive power of smaller
    grocery and convenience stores. Under banner groups, retailers are
    able to negotiate better prices, coordinate marketing campaigns and
    collaborate to establish new programs that benefit consumers.

-   Metcash Trading Limited Australasia has taken over David's Limited
    (September 2000) to become a leading marketing and distribution
    company operating in the food and other fast moving consumer goods
    categories. It has three business units -- IGA Distribution,
    Campbell's Cash & Carry, and Australian Liquor Marketers (ALM).

-   Metcash is now equipped to receive EANnet information, i.e. able to
    receive electronic pricing catalogs from suppliers. EANnet v2.0 is
    the new on-line data synchronization catalogue for all industry
    sectors throughout Australasia.

-   IGA Distribution has eight strategically situated distribution
    centers carrying around 14,000 items, which serve the dry, chilled
    and frozen grocery requirements of over 4,500 independent retail
    grocery stores on the Eastern seaboard of Australia and South
    Australia.

-   Campbell's Cash & Carry operates 41 wholesale cash and carry
    warehouses across New South Wales, Victoria, Queensland and South
    Australia carrying 12,000 liquor, food service, grocery, dairy,
    frozen, confectionery and tobacco products. Campbells also
    specializes in distribution to the rapidly growing gasoline and
    organized convenience store sector.

-   Australian Liquor Marketers is the leading broad range liquor
    wholesaler in Australia. It operates 16 distribution centers across
    Australia and New Zealand, carrying more than 8,000 products to meet
    the wine, spirits and beer requirements of more than 13,000 licensed
    premises.

-   Aldi Supermarkets, the German based international discount food
    retailer, has established itself within the Australian market with
    approximately fifty grocery stores in three states and currently
    operates from two distribution centers, one in Sydney (40,000m^2^)
    and the other in Melbourne (50,000m^2^). Further expansion into
    Queensland will see a similar sized distribution center built south
    of Brisbane.

-   Coles online has a centralized distribution center, which means a
    centralized fleet delivering to households across Melbourne and
    Sydney.

## Number and Type of Retail Outlets

Table 3 outlines the number of food retail outlets and percent change
for the period 1997-2001. There has been close to a 50% reduction in
total outlet numbers in the sub group 'banner traders and other
independents' over the time period. The number of convenience stores has
increased by 7% from 2000 to 2001, while other grocery outlets have
fallen.

Table 3: Grocery Market Breakdown by Outlets in Australia, 1997-2001

+----------------------+------+------+------+------+------+-----------+
|                      | **19 | **19 | **19 | **20 | **20 | **%       |
|                      | 97** | 98** | 99** | 00** | 01** | Growth    |
|                      |      |      |      |      |      | (total)** |
+----------------------+------+------+------+------+------+-----------+
| Chain Store Outlets  | 1    | 1    | 1    | 1    | 1    | -13       |
| ^1^                  | ,490 | ,490 | ,479 | ,522 | ,291 |           |
+----------------------+------+------+------+------+------+-----------+
| Convenience Chain    | 1    | 1    | 1    | 2    | 2    | 62        |
| Store Outlets ^2^    | ,501 | ,010 | ,321 | ,259 | ,428 |           |
+----------------------+------+------+------+------+------+-----------+
| Banner Traders &     | 4    | 2    | 2    | 2    | 2    | -43       |
| Other                | ,190 | ,828 | ,522 | ,585 | ,378 |           |
|                      |      |      |      |      |      |           |
| Independents ^3^     |      |      |      |      |      |           |
+----------------------+------+------+------+------+------+-----------+
| **TOTAL**            | *    | *    | *    | *    | *    | **-15**   |
|                      | *7,1 | *5,3 | *5,3 | *6,3 | *6,0 |           |
|                      | 81** | 28** | 22** | 66** | 97** |           |
+----------------------+------+------+------+------+------+-----------+

Table 3 was compiled by the Commercial Economic Advisory Service of
Australia (CEASA) as part of the Australian Grocery Review, March 2001
(updated June 2002) to illustrate sector breakdown of outlets.

1\. Grocery chains including Woolworths, Coles Myer Ltd, Bi-Lo (Coles),
Franklins, Jewel (Metcash).

2\. Convenience Stores

3\. Warehouses, excluding convenience stores and Metcash's Campbells
Cash & Carry, are included with independents.

-   7-Eleven is Australia\'s leading convenience store chain. Numbers
    have continued to grow in 2003, with the number of 7-Eleven stores
    now reaching 300 and the company planning on expanding to 500 stores
    by 2005 (there were 267 7-Eleven stores in 2001). Of note, of
    7-Eleven's 300 stores, almost 200 sell petrol.

-   Woolworths and independents have been the principal benefactors of
    Franklins quitting the Australian grocery trade and selling its
    stores. The independents acquired 100 stores.

## Trends in Services Offered by Retailers

-   The leading chain supermarkets (Coles and Woolworths) have moved
    towards offering customers convenient shopping that aims to fulfill
    all of their needs under one roof, i.e. 'one stop shopping'.

-   Retailer catalogues work in Australia and each of the major
    retailers distributes a full color 12-16-page catalogue to over six
    million homes every week.

-   Woolworths currently offers a U.S. 8.3c a gallon discount on fuel at
    its 280 Plus Petrol outlets and has captured a 10% share of the
    petrol market, selling 12.2 million gallons a week.

-   Woolworths is planning to expand its liquor business from the
    current level of US\$924.5 million to more than US\$1.4 billion

-   Woolworths is preparing to expand into in-store pharmaceuticals by
    rolling out 100 in-store pharmacies this year.

-   Coles Myer paid US\$51 million to take over more than 584 Shell
    service stations nationwide earlier this year (2003). The Coles
    Express fuel scheme is being trialled in Victoria, with the roll out
    to the rest of Australia to be completed by mid-2004.

-   Coles supermarket services include: fresh fruit and vegetables,
    including organic produce; delicatessen; meat department; patisserie
    and cappuccino café; health foods; health and beauty department; and
    international and specialty foods. The service department offers dry
    cleaning, flowers, key cutting, photo developing, photocopying, and
    home delivery.

-   Other new Coles retail innovations include the development of Coles
    Express stores in Sydney, Melbourne and Brisbane. Coles Express
    stores cater to the growing numbers of city dwellers, commuters and
    office workers who require meals on the run, quick service and value
    for money.

-   Big W (owned by Woolworths) was the first to trial self-checkouts in
    the Southern Hemisphere. Another trial will occur in late 2003/early
    2004 in Western Australia.

-   Metcash intends to increase its range of generics/private labels by
    50% in the next 3-4 years. IGA's First Label and Black and Gold
    (both generic labels for IGA) make up about 10% of the total sales
    of independent supermarkets throughout Australia.

-   Discussions continue in Australia about the use of plastic bags in
    supermarkets, with some supermarkets moving towards providing
    plastic bag alternatives.

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-   Home shopping via the Internet is continuing to increase rapidly,
    with all of the major retailers offering this service. Online sales
    are projected to reach 8% penetration of the total grocery market by
    2007-2008.

-   Convenience stores offer a range of services (Figure 3). The most
    common service offered is an ATM, with 91.5% of stores having this
    facility.

**Figure 3. The per/cent of Convenience Stores offering specialty
services 2001**

![](media/image5.wmf)

## Advantages and Challenges

**Table 4: Advantages and Challenges for U.S. retail food exporters**

  ----------------------------------- -----------------------------------
  **Advantages/Opportunities**        **Challenges/Weaknesses**

  Affluent consumers concentrated in  Need to produce innovative food
  only a few geographical regions.    products to break into highly
                                      competitive retail food sector as
                                      most categories have substantial
                                      market leaders.

  Australians are the highest users   Australian dollar has increased
  of online shopping for              against the U.S. dollar making
  food/groceries. 14% of Australians  imports relatively less expensive,
  who shop online buy food/groceries  however, European and Asian imports
  online, as concluded by a recent    are now also less expensive.
  Taylor Nelson Sofres (TNS) report   
  from a worldwide survey of 42,000   
  people.                             

  Purchasing for wider geographical   Australia has strict quarantine
  areas will expand. There is         requirements for fresh products.
  currently a trend towards global    Import permits are required for
  retailing due to the global         fresh produce and some products are
  sourcing of products.               prohibited.

  Northern hemisphere seasonal        Australian made and manufactured
  advantage for fresh foods, e.g.     products are advertised as such and
  fruit and vegetables.               some advertising campaigns create
                                      awareness of buying Australian.

  Tariffs on imported food products   The canned food category is hardly
  are low, at 0% (e.g. canned or      growing because of the onset of
  minced salmon, citrus, grapes,      alternative packaging and lack of
  condiments, pet food, chilled beef, manufacturer innovation in some
  almonds), 3% or 5% (e.g. breakfast  segments.
  foods).                             

  Australian consumers are            
  experimental and desire new and     
  innovative ideas and authentic,     
  restaurant quality taste            
  sensations.                         

  Opportunity to trial innovative     
  products and capture/gain market    
  share in the canned food category.  

  No language barriers.               
  ----------------------------------- -----------------------------------

# SECTION II: ROAD MAP FOR MARKET ENTRY

## Entry Strategy

***Market Access for Imported Products***

-   Enter the market through a distributor, importer, agent or broker
    who then targets specific food category/merchandise managers at
    major wholesalers and major supermarket chains. Major chains and
    wholesalers have their own distribution centers and national
    coverage. Targeting major chains through your agent/distributor will
    also reduce the risk of entering an inappropriate state market in
    Australia.

-   Specialist distributors or wholesalers may also be approached. For
    example Trutaste Nuts is an Australian nut wholesaler supplying
    domestic and international markets with nuts sourced both locally
    and overseas. Similarly, Stuart Alexander & Co is a leading
    confectionary distributor.

-   Promote your product. Product launches for supermarkets are popular
    and effective. Provide agent/distributor with promotional material
    and product suitable for in-store demonstrations. Promotional
    formats may vary. For example:

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-   EDLP: Every Day Low Price, including Rollback. Incremental lift is
    achieved by using display and catalogue only - the price remains
    constant from week to week.

-   Multi-buy: 3 for the price of 2 and by one get one free (BOGOF)
    offers have become a popular way of giving consumers a discount
    without reducing sales value.

-   Bonus offer: buy product A, get product B for free.

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-   Couple promotion with advertising such as in-store display and store
    catalogues, major industry magazines (e.g. Retail World),
    newspapers, television, radio and public transport.

-   A 10% temporary price cut typically yields a 40% increase in sales,
    according to numerous studies conducted by ACNielsen's Advanced
    Analytics team. However, in-store display can add an incremental 65%
    and catalogue another 20-25% to baseline sales.

-   Exhibit at Australian food shows, which are popular. Fine Food
    Australia, the premier international food, drink and equipment
    exhibition, is an annual show, alternating between the cities of
    Sydney and Melbourne. In 2003, Fine Food was held in Sydney. It
    featured 570 exhibitors and attracted 26,317 trade visitors. There
    were exhibitors from 27 countries including the United States. In
    September 2004, Fine Food will be held in Melbourne.

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-   Product may also be sold through Internet home shopping, which has
    developed rapidly in Australia.

-   For unique and innovative products it may be appropriate to join
    forces with an Australian company to manufacture under license. U.S.
    products may then obtain brand recognition and a committed sales
    force.

***Competitive Analysis***

-   Imported products will have to compete with "Australian Made"
    products. There is a general awareness and affiliation for buying
    Australian made goods amongst the wider population.

-   Imported products need to be competitively priced to compete with
    the growing number of discount chain stores, e.g. Aldi.

-   Convenient, healthy, fresh and diverse meal solutions that are easy
    to buy, easy to store and easy to eat, is a rapidly emerging
    consumer preference that provides future potential for imported
    products.

-   The use of food brokers in Australia is increasing. Food brokers can
    assist market entry by bridging the gap between retailer's reports
    and what is actually happening in the supermarkets. Brokers can also
    assist in getting a new product into distribution quickly. Some
    companies also offer warehousing and distribution options.

***Comparative Advantage of U.S. Products***

-   Due to the large U.S. market, U.S. manufacturers are able to develop
    a range of products far beyond that which can be achieved in
    Australia. This enables U.S. exporters to deliver innovative product
    lines that are otherwise not available from Australian
    manufacturers. For example, the new packaging used for Hormel Foods
    kids meal, a plastic base (that can be heated) with a metal ring
    pull. This element of design fits well with the concept of 'time
    poor consumers' who want convenient packaging.

-   Ready to eat meals are still underdeveloped in Australia compared to
    the United States. This is another area where there is opportunity
    for U.S. products to enter, although there are quarantine issues
    with regard to products containing meat and egg products.

-   Branding can be an advantage as many U.S. brands have significant
    market shares.

***Ability or Willingness of U.S. Exporters to Meet Market
Requirements***

-   The Australian market is very 'Americanized' and most food
    categories are compatible with Australian tastes. Indeed, many
    categories are dominated by American brands, such as Mars, who have
    been very successful in the Australian market. However, some
    American product launches have not been so successful, especially
    within the chocolate confectionary segment.

-   Many U.S.-owned food manufacturers have an existing presence in the
    Australian market thereby making market entry easier.

-   Food labeling in Australia is stringent, and manufacturers will have
    to weigh up the costs involved for manufacturing changes for a
    relatively small market (Australia's population is approximately 20
    million). Sometimes the quantity required for the Australian market
    is not compatible with the large volume U.S. production runs.

-   Another option that is currently used for some American branded
    products (for example Pringles) is labeling that satisfies many
    different export markets. This assists in making the Australian
    market more accessible.

-   It is often helpful to engage a broker who knows the market, knows
    what the retailers need by way of presentation documents, and,
    generally, has high-level trade relationships.

## Market Structure

***U.S. Product Flow***

-   There are two major distribution channels to major supermarket and
    smaller supermarket chains, i.e. major chain supermarket
    distribution centers and major wholesalers.

-   Food products will be stored at some point in warehouses prior to
    distribution and delivery.

-   Transport in Australia between distribution centers is predominantly
    by road.

-   The following flow chart depicts the movement of food products from
    the U.S. exporter through to the retailer.

**Figure 4: Movement of U.S. Exports Through to the Retailer.**

![](media/image6.wmf){width="6.495833333333334in"
height="4.121527777777778in"}

***Significant Changes or Trends***

-   Competition between major supermarket chains is forcing prices
    lower. Smaller supermarket chains and "Mom and Pop" independent
    supermarkets also are being squeezed with price competition between
    the chains. However, they remain in the market due to their
    convenience factor.

-   Fundamental changes are occurring in Australia, similar to the
    United Kingdom and the United States, with a variety of formats \--
    such as "express" stores \-- with a smaller range of lines, large
    fresh and pre-packed food sections and a large number of check-outs.

***Flow Pattern Between Different Retailers***

-   Product flows in a similar manner for each of the major supermarkets
    chains, with each operating central distribution centers.

-   Independent supermarkets and smaller supermarket chains purchase
    their food products through the major wholesalers, direct from
    manufacturers or cash vans. Cash vans sell grocery items from the
    back of a truck at supermarkets.

***Margins***

-   Wholesale gross margins are 0.5% to 2.5% of sales.

-   Manufacturers margins are 25% to 35% of product cost. Advertising
    and trade promotion takes 10-15% so an average of around 5% net.

-   Retail gross margins can vary greatly depending on the product and
    type of retailer (Table 5).

**Table 5: Retail Gross Margins, March 2001**

+-----------+----------+---------------+------------+----------------+
|           | **       | **I           | **C        | **Small        |
|           | Chains** | ndependents** | onvenience | Independents** |
|           |          |               | Stores**   |                |
|           | **(%)**  | **(%)**       |            | **(%)**        |
|           |          |               | **(%)**    |                |
+-----------+----------+---------------+------------+----------------+
| Dry       | 19.5     | 14-19         | 20         | 20             |
| Groceries |          |               |            |                |
+-----------+----------+---------------+------------+----------------+
| Deli      | 30       | 25-35         | 32.6       | n/a            |
+-----------+----------+---------------+------------+----------------+
| Meat      | 28       | 25-35         | 23         | n/a            |
+-----------+----------+---------------+------------+----------------+
| Fruit &   | 27       | 25-35         | 35.7       | n/a            |
| Veg       |          |               |            |                |
+-----------+----------+---------------+------------+----------------+
| Bakery    | 60       | 60-70         | 30         | n/a            |
+-----------+----------+---------------+------------+----------------+
| Frozen    | 25       | 22-30         | 30         | n/a            |
+-----------+----------+---------------+------------+----------------+
| Dairy     | 22       | 15-19         | 23         | n/a            |
+-----------+----------+---------------+------------+----------------+

Information sourced from CEASA Grocery Review June 2002.

### A. SUPER STORES, SUPERMARKETS, HYPER MARKETS OR SUPER CENTERS, CLUB AND WAREHOUSE OUTLETS

***Company Profiles***

Tables 6a and 6b provide a list of chain supermarkets and
warehouses/wholesale clubs respectively. The lists are not exhaustive,
however they do include the major chains, banner groups and
warehouse/wholesalers. Woolworths and Coles Myer dominate the Australian
retail food scene. Foreign retailers are mostly South African and German
owned.

Table 6a. Chain Supermarkets/Superstores.

+------------------+--------+-------+------+------------+------------+
| **Retailer Name  | **     | **Sa  | *    | **L        | **         |
| & Outlet Type**  | Owner- | les** | *No. | ocations** | Purchasing |
|                  | ship** |       | Of   |            | Agent      |
|                  |        | *     | O    |            | Type**     |
|                  |        | *(\$M | utle |            |            |
|                  |        | il)** | ts** |            |            |
+------------------+--------+-------+------+------------+------------+
| **Coles Myer     | Local  | 1     | 667  |            | Warehouse, |
| Ltd**            |        | 5,728 |      |            | w          |
|                  |        |       |      |            | holesaler, |
|                  |        |       |      |            | ma         |
|                  |        |       |      |            | nufacturer |
|                  |        |       |      |            | &          |
|                  |        |       |      |            |            |
|                  |        |       |      |            | brokers    |
+------------------+--------+-------+------+------------+------------+
| Coles            |        | []{.  | [    | National   |            |
|                  |        | mark} | ]{.m |            |            |
|                  |        |       | ark} |            |            |
+------------------+--------+-------+------+------------+------------+
| Bi Lo            |        | []{.  | [    | NSW, VIC,  |            |
|                  |        | mark} | ]{.m | QLD, SA    |            |
|                  |        |       | ark} |            |            |
+------------------+--------+-------+------+------------+------------+
| Newmart          |        | []{.  | [    | WA         |            |
|                  |        | mark} | ]{.m |            |            |
|                  |        |       | ark} |            |            |
+------------------+--------+-------+------+------------+------------+
| Pick\`n'Pay      |        | []{.  | [    | QLD        |            |
|                  |        | mark} | ]{.m |            |            |
|                  |        |       | ark} |            |            |
+------------------+--------+-------+------+------------+------------+
| Fast \`N Fresh   |        | []{.  | [    | VIC        |            |
|                  |        | mark} | ]{.m |            |            |
|                  |        |       | ark} |            |            |
+------------------+--------+-------+------+------------+------------+
| **Woolworths**   | Local  | 1     | 680  |            | Warehouse, |
|                  |        | 6,111 |      |            | w          |
|                  |        |       |      |            | holesaler, |
|                  |        |       |      |            | suppliers, |
|                  |        |       |      |            | brokers &  |
|                  |        |       |      |            | growers.   |
+------------------+--------+-------+------+------------+------------+
| Woolworths       |        |       |      | National   |            |
+------------------+--------+-------+------+------------+------------+
| Safeway          |        |       |      | NSW/ACT,   |            |
|                  |        |       |      | VIC        |            |
+------------------+--------+-------+------+------------+------------+
| Food for Less    |        |       |      | NSW/ACT,   |            |
|                  |        |       |      | QLD        |            |
+------------------+--------+-------+------+------------+------------+
| Flemings         |        |       |      | NSW/ACT    |            |
+------------------+--------+-------+------+------------+------------+
| Woolworths Metro |        |       |      | NSW/ACT &  |            |
|                  |        |       |      | QLD        |            |
+------------------+--------+-------+------+------------+------------+

+------------------+--------+-------+------+------------+------------+
| **Franklins**    | F      | N/A   | 74   | NSW        | Warehouse, |
|                  | oreign |       |      |            | wholesaler |
|                  |        |       |      |            | and        |
|                  | South  |       |      |            | suppliers. |
|                  | A      |       |      |            |            |
|                  | frican |       |      |            |            |
|                  | re     |       |      |            |            |
|                  | tailer |       |      |            |            |
|                  | Pick'n |       |      |            |            |
|                  | 'Pay - |       |      |            |            |
|                  | 50     |       |      |            |            |
+------------------+--------+-------+------+------------+------------+
| **Action** (part | Local  | N/A   | 74   | NSW        | Majority   |
| of FAL)          |        |       |      |            | via        |
|                  |        |       |      |            | wholesaler |
+------------------+--------+-------+------+------------+------------+
| **Aldi**         | F      | N/A   | 36   | NSW        | N/A        |
|                  | oreign |       |      |            |            |
|                  | (G     |       |      |            |            |
|                  | erman) |       |      |            |            |
+------------------+--------+-------+------+------------+------------+

Information sourced from the Grocery Industry Review and company
websites.

**Table 6b. Warehouses/Wholesale Clubs**

+------------------+--------+--------+-------+-----------+------------+
| **Retailer Name  | **     | **S    | **No. | **Lo      | **         |
| & Outlet Type**  | Owner- | ales** | Of    | cations** | Purchasing |
|                  | ship** |        | Outl  |           | Agent      |
|                  |        | **(\$  | ets** |           | Type**     |
|                  |        | Mil)** |       |           |            |
+------------------+--------+--------+-------+-----------+------------+
| **No Frills      | Local  | N/A    | 3     | Tasmania  | N/A        |
| Wholesale Cash N |        |        |       |           |            |
| Carry^1^**       |        |        |       |           |            |
+------------------+--------+--------+-------+-----------+------------+
| **Metcash        | 78%    | 4,159  | 41    | NSW, VIC, | N/A        |
| Limited and      | South  |        |       | QLD and   |            |
| Campbells Cash & | A      |        |       | SA        |            |
| Carry**          | frican |        |       |           |            |
|                  | and    |        |       |           |            |
|                  | Local  |        |       |           |            |
+------------------+--------+--------+-------+-----------+------------+

1\. Cash N Carry outlets service businesses throughout Tasmania who do
not qualify to receive deliveries from the distribution centers or
require additional products that are not available from the DC\'s. Its
customer base includes supermarkets, milk bars, takeaways, hotels /
motels, restaurants, service stations, caterers, school canteens,
sporting / service clubs and many more.

***Trends in the Number and Type of Outlets Opening***

-   As a whole, the total number of chain supermarkets continues to
    increase.

-   There is also a growing number of discount supermarkets.

***Trends in the Sale of Imported Verses Domestic Product***

-   Over time the share of imported product for sale in supermarkets and
    through wholesalers has remained fairly static at around 10%.

***Internal and External Market Drivers***

-   Customers are looking for clean, safe products that are healthy and
    free of harmful chemical residues.

-   Convenience is high on customers' agendas, with limited time to
    produce home cooked meals (both partners working - seeking
    nutritional quality with take out convenience).

-   Substantial interest in new food lines (such as international
    cuisines) -- expressed first through restaurants and then retail.

### B. CONVENIENCE STORES, GAS MARTS, KIOSKS

**Entry Strategy**

-   Appoint an agent/distributor in Australia to ensure distribution,
    availability of product and product promotion.

```{=html}
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```
-   Product flows from U.S. exporter through agents/distributors to
    wholesalers and then through to convenience stores/gas marts/kiosks.

```{=html}
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```
-   Also major supermarket chains are entering the convenience store/gas
    mart market. Agents/distributors should market product to category
    managers for major chains.

```{=html}
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```
-   Entry strategy for convenience stores is similar to that for
    supermarkets except that the agent/distributor should target the
    major wholesaler category managers as well as managers at major
    supermarket chains responsible for the new wave of gas/convenience
    store concepts.

```{=html}
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```
-   Convenience stores generally sell limited lines, gasoline and fast
    food. They are open long hours and are easily accessible to
    customers. This is changing somewhat with larger convenience stores
    carrying greater numbers of lines.

**Market Structure**

Tables 7a and 7b summarize company profiles for major gas marts and
convenience stores. The top six companies (i.e. by store numbers) have
been presented. Four companies Caltex/Ampol, Mobil, BP Express and Shell
dominate this sector. For the majority of convenience stores and gas
marts turnover is unavailable at this time.

**Table 7a. Gas Marts**

+-------------------+--------+------+--------+----------+-----------+
| **Retailer Name & | **     | **S  | **No.  | **Loc    | **P       |
| Outlet Type**     | Owner- | ales | of     | ations** | urchasing |
|                   | ship** | (    | Out    |          | Agent     |
|                   |        | \$Mi | lets** |          | Type**    |
|                   |        | l)** |        |          |           |
+-------------------+--------+------+--------+----------+-----------+
| **Shellshop and   | B      | NA   | 122    | National | W         |
| Shell Select**    | ritish |      |        |          | holesaler |
|                   | Dutch  |      |        |          |           |
|                   |        |      |        |          | Di        |
|                   |        |      |        |          | stributor |
|                   |        |      |        |          |           |
|                   |        |      |        |          | Man       |
|                   |        |      |        |          | ufacturer |
+-------------------+--------+------+--------+----------+-----------+
| **Caltex/Ampol**  | 50%    | NA   | 172    | National | W         |
|                   | of     |      |        | except   | holesaler |
| **ShopStop, Road  | fshore |      |        | NT       |           |
| Pantry**          | own    |      |        |          | Di        |
|                   | ership |      |        |          | stributor |
| **Star Mart**     |        |      |        |          |           |
|                   |        |      |        |          | Man       |
|                   |        |      |        |          | ufacturer |
+-------------------+--------+------+--------+----------+-----------+
| **Mobil Quix**    | U.S.   | NA   | 146    | National | W         |
|                   |        |      |        | (except  | holesaler |
|                   |        |      |        | NT,      |           |
|                   |        |      |        | T        | Man       |
|                   |        |      |        | asmania) | ufacturer |
|                   |        |      |        |          |           |
|                   |        |      |        |          | Di        |
|                   |        |      |        |          | stributor |
+-------------------+--------+------+--------+----------+-----------+
| **BP Express (BP  | UK     | NA   | 158    | National | W         |
| Australia Ltd,    |        |      |        | except   | holesaler |
| subsidiary of     |        |      |        | Tasmania |           |
| parent BP         |        |      |        |          | Man       |
| Amoco)**          |        |      |        |          | ufacturer |
|                   |        |      |        |          |           |
|                   |        |      |        |          | Di        |
|                   |        |      |        |          | stributor |
+-------------------+--------+------+--------+----------+-----------+
| **BP Food**       | Local  | NA   | 36     | Western  | W         |
|                   |        |      |        | A        | holesaler |
|                   |        |      |        | ustralia |           |
|                   |        |      |        |          | Man       |
|                   |        |      |        |          | ufacturer |
|                   |        |      |        |          |           |
|                   |        |      |        |          | Di        |
|                   |        |      |        |          | stributor |
+-------------------+--------+------+--------+----------+-----------+
| **Horizon Food    | NA     | NA   | 11     | Vic      | W         |
| Stores, Horizon   |        |      |        |          | holesaler |
| Petroleum Pty     |        |      |        |          |           |
| Ltd.**            |        |      |        |          | Man       |
|                   |        |      |        |          | ufacturer |
|                   |        |      |        |          |           |
|                   |        |      |        |          | Di        |
|                   |        |      |        |          | stributor |
+-------------------+--------+------+--------+----------+-----------+

**Table 7b. Convenience Stores company profile**

+------------------+---------+------+--------+-----------+------------+
| **Retailer Name  | **Owner | **S  | **No.  | **Lo      | **         |
| & Outlet Type**  | -ship** | ales | of     | cations** | Purchasing |
|                  |         | (    | Out    |           | Agent      |
|                  |         | \$Mi | lets** |           | Type**     |
|                  |         | l)** |        |           |            |
+------------------+---------+------+--------+-----------+------------+
| **7-Eleven**     | Local   | NA   | 267    | Met       | Wholesaler |
|                  | ow      |      |        | ropolitan |            |
|                  | nership |      |        | and       | Ma         |
|                  | fr      |      |        | p         | nufacturer |
|                  | anchise |      |        | rovincial |            |
|                  | from    |      |        | cities in | D          |
|                  | U.S.    |      |        | NSW, Qld  | istributor |
|                  |         |      |        | and Vic.  |            |
+------------------+---------+------+--------+-----------+------------+
| **City           | Foreign | N/A  | 68     | 52 in NSW | Wholesaler |
| Convenience      |         |      |        |           | & direct   |
| Stores**         |         |      |        |           | from       |
|                  |         |      |        |           | vendors.   |
+------------------+---------+------+--------+-----------+------------+
| **Foodwise**     | Local   |      | 37     | VIC       | Wholesaler |
|                  |         |      |        |           | & direct   |
|                  |         |      |        |           | from       |
|                  |         |      |        |           | vendors.   |
+------------------+---------+------+--------+-----------+------------+
| **NightOwl**     | Local   | NA   | 34     | East      | Wholesaler |
|                  |         |      |        | Coast (38 |            |
|                  | Indep   |      |        | Qld) --   | Ma         |
|                  | en-dent |      |        | urban     | nufacturer |
|                  | Fr      |      |        | centers   |            |
|                  | anchise |      |        |           | D          |
|                  | Systems |      |        |           | istributor |
+------------------+---------+------+--------+-----------+------------+
| **Captain Cook** | Local   |      | 8      | Sydney    | Wholesaler |
|                  |         |      |        |           |            |
|                  |         |      |        |           | Ma         |
|                  |         |      |        |           | nufacturer |
|                  |         |      |        |           |            |
|                  |         |      |        |           | D          |
|                  |         |      |        |           | istributor |
+------------------+---------+------+--------+-----------+------------+

Table 7b contains latest available data from 2001.

***Overall Trends***

-   The top ten convenience growth categories as (in order of % \$
    growth March 2001 versus March 2002): phone cards, maps/directories,
    cigars, chewing/bubble gum, cigarettes/tobacco, yogurts, sunglasses,
    newspapers/magazines, cigarettes and breakfast cereal.

-   The top ten convenience categories (in order of % shares) are:
    cigarettes, carbonated beverages, chocolate, newspapers and
    magazines, white milk, automotive, phone cards, sugar confectionary,
    flavored milk and ice cream.

-   Convenience stores are becoming more popular as many shoppers are
    becoming frustrated with waiting in queues, crowded aisles and
    congested stores common in supermarkets. Customers also want to shop
    close to home, even if it means products are more expensive.

-   The convenience segment is experiencing significant growth, with
    higher than average annual sales growth of 19% per year.

***Trends in the Number and Type of Outlets***

-   The store numbers of convenience stores jumped by 229, or almost 20%
    last year according to the Australian Association of Convenience
    Stores.

```{=html}
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```
-   7-Eleven increased its store numbers from 247 to 267 in twelve
    months.

-   City Convenience Stores show the greatest growth, from 45 to 75
    outlets.

-   The major chains are also entering the convenience sub sector
    through the introduction of CBD Express stores by Coles and Metro by
    Woolworths, which are situated near major railway and bus stops.
    These stores are slick with a pre-packaged and prepared whole meal
    focus attracting consumers before reaching the corner "Mom and Pop"
    shop near home. Woolworths Metro and Coles Express supermarkets are
    planned for both CBD and urban areas. IGA has also introduced an
    Express store in Sydney's CBD.

***Major Internal and External Drivers***

-   Corner store convenience stores and kiosks may be disadvantaged by
    consumer interest in "fresh" and healthy foods and also increases in
    supermarket numbers in the CBD.

-   All the convenience stores cater to city apartment dwellers and
    night owls who have no time or inclination to find a supermarket
    still open in the early hours.

***Customer Profile***

-   Commuters using public transport as well as private cars requiring
    gasoline and shopping on the way home.

-   Customers in the middle-to-high income range and in lower age
    brackets.

-   Impulse buyers.

### C. TRADITIONAL MARKETS -- MOM/POP INDEPENDENT GROCERY, WET MARKETS

**Market Entry**

***Independent Grocery***

-   Similar strategy to that for small supermarket markets and
    convenience stores, with appointment of agent/distributor for sale
    through major wholesalers.

***Wet Markets***

-   Australia does not have a system of wet markets; however, there is a
    system of markets for fresh produce with substantial presence in
    major cities. The majority of fresh produce moving through these
    markets is local, although overseas produce is available. Fresh
    produce from overseas should move directly through a specialist
    wholesaler or be sold directly to major chain supermarkets to avoid
    delays in the distribution channel.

**Sub-Sector Profile**

Table 8 provides information on the major smaller independent
supermarkets in Australia. Supermarkets under the IGA banner dominate
the independent sub sector with over 1000 outlets. Australian United
Retailers has the second largest number of outlets at 542. None of the
independent banners have national coverage.

**Table 8. Smaller Independent Grocery Stores/Supermarkets**

+------------------+--------+--------+---+------+-----------+------------+
| **Retailer Name  | **     | **S    | * |      | **Lo      | **         |
| & Outlet Type**  | Owner- | ales** | * |      | cations** | Purchasing |
|                  | ship** |        | N |      |           | Agent      |
|                  |        | **(\$  | o |      |           | Type**     |
|                  |        | Mil)** | . |      |           |            |
|                  |        |        | O |      |           |            |
|                  |        |        | f |      |           |            |
|                  |        |        | O |      |           |            |
|                  |        |        | u |      |           |            |
|                  |        |        | t |      |           |            |
|                  |        |        | l |      |           |            |
|                  |        |        | e |      |           |            |
|                  |        |        | t |      |           |            |
|                  |        |        | s |      |           |            |
|                  |        |        | * |      |           |            |
|                  |        |        | * |      |           |            |
+------------------+--------+--------+---+------+-----------+------------+
| **Australian     | Local  | N/A    |   | 542  |           | Manu       |
| United           |        |        |   |      |           | facturers, |
| Retailer**       |        |        |   |      |           | wh         |
|                  |        |        |   |      |           | olesalers, |
|                  |        |        |   |      |           | brokers,   |
|                  |        |        |   |      |           | cash vans  |
+------------------+--------+--------+---+------+-----------+------------+
| > AUR            |        |        |   | 19   | QLD       |            |
| > Supermarkets   |        |        |   |      |           |            |
+------------------+--------+--------+---+------+-----------+------------+
| > UR Food-Rite   |        |        |   | 76   | NSW, VIC  |            |
|                  |        |        |   |      | & TAS     |            |
+------------------+--------+--------+---+------+-----------+------------+
| > AUR Foodstore  |        |        |   | 37   | NSW & QLD |            |
| > Foodmarkets    |        |        |   |      |           |            |
+------------------+--------+--------+---+------+-----------+------------+
| > AUR            |        |        |   | 25   | NSW & QLD |            |
| > Buy-Rite-Fresh |        |        |   |      |           |            |
+------------------+--------+--------+---+------+-----------+------------+
| > AUR 7 Day      |        |        |   | 86   | NSW & QLD |            |
| > Express        |        |        |   |      |           |            |
+------------------+--------+--------+---+------+-----------+------------+
| > Associates     |        |        |   | 299  |           |            |
+------------------+--------+--------+---+------+-----------+------------+
| **Dewsons**      | Local  | N/A    |   | 49   | WA        | Manu       |
|                  |        |        |   |      |           | facturers, |
|                  |        |        |   |      |           | wh         |
|                  |        |        |   |      |           | olesalers, |
|                  |        |        |   |      |           | brokers,   |
|                  |        |        |   |      |           | cash vans  |
+------------------+--------+--------+---+------+-----------+------------+
| **Foodworks**    | Local  | N/A    |   | 140  |           | Wholesaler |
|                  |        |        |   |      |           | & direct   |
|                  |        |        |   |      |           | from       |
|                  |        |        |   |      |           | vendors.   |
+------------------+--------+--------+---+------+-----------+------------+
| > Foodworks      |        |        |   | 72   | NSW/ACT,  |            |
|                  |        |        |   |      | VIC, QLD  |            |
+------------------+--------+--------+---+------+-----------+------------+
| > Foodworks      |        |        |   | 140  | ACT, VIC  |            |
| > Fresh          |        |        |   |      | & QLD     |            |
+------------------+--------+--------+---+------+-----------+------------+
| > Liquorworks    |        |        |   | 8    | VIC       |            |
+------------------+--------+--------+---+------+-----------+------------+
| **IGA**          |        |        |   | 1043 |           | Warehouse  |
|                  |        |        |   |      |           | wholesaler |
+------------------+--------+--------+---+------+-----------+------------+
| > Supermarket    |        |        |   | 191  | NSW/ACT,  |            |
|                  |        |        |   |      | VIC, QLD  |            |
+------------------+--------+--------+---+------+-----------+------------+
| > Everyday       |        |        |   | 351  | NSW/ACT,  |            |
|                  |        |        |   |      | VIC, QLD  |            |
|                  |        |        |   |      | & SA/NT   |            |
+------------------+--------+--------+---+------+-----------+------------+
| > Friendly       |        |        |   | 252  | NSW/ACT,  |            |
| > Grocer         |        |        |   |      | VIC &     |            |
|                  |        |        |   |      | SA/NT     |            |
+------------------+--------+--------+---+------+-----------+------------+
| > X-Press        |        |        |   | 95   | NSW/ACT & |            |
|                  |        |        |   |      | QLD       |            |
+------------------+--------+--------+---+------+-----------+------------+
| > Tuckerbag      |        |        |   | 48   | NSW/ACT   |            |
+------------------+--------+--------+---+------+-----------+------------+
| > Foodland       |        |        |   | 101  | NSW/ACT & |            |
|                  |        |        |   |      | NT/SA     |            |
+------------------+--------+--------+---+------+-----------+------------+
| > Foodbarn       |        |        |   | 5    | NSW/ACT   |            |
+------------------+--------+--------+---+------+-----------+------------+

***Market Structure***

-   Supermarkets source much of their fresh fruit and vegetables
    directly from growers/producers, leaving lower quality at these
    markets. Poorer quality produce is left for small convenience stores
    to purchase. It is unknown what the price effect of this practice
    is.

-   The sector is losing market share to the supermarket and convenience
    sectors, with major chains opening small supermarkets in the CBD
    catering for fresh, pre-packaged meal and everyday needs.

-   There has been an increase in deli type products offered and ready
    made cakes and pastries.

-   Customers working longer hours, greater population mobility and
    introduction of meal solutions place pressures on this sector.

-   This sector is also under pressure on price and opening hours from
    big three chain supermarkets.

-   The sector is sustained by sales of snack foods and regular
    essentials, such as milk and bread.

-   Customers include the less mobile.

# SECTION III: COMPETITION

For seven of the twelve categories in Table 9, New Zealand (NZ) is the
major supply source of imports and for two of the remaining categories
is in the top three. In large part this is due to its geographic
closeness and the Australian-New Zealand Closer Economic Relationship
Trade Agreement (ANZCERTA), a bilateral trade agreement which exists
between the two countries.

Table 9 details the net imports for 12 major retail product categories.
Major supply sources are limited to major import sources as data is not
available on the total local production for each category.

**Table 9: Summary of the overall competitive situation facing U.S.
imports in the retail food sector.**

+-------------+--------------+------------------+---------------------+
| **Product   | **Major      | **Strengths of   | **Advantages &      |
| Category**  | Supply       | Key Supply       | Disadvantages of    |
|             | Source on    | Countries**      | Local Suppliers**   |
|             | imports.**   |                  |                     |
+-------------+--------------+------------------+---------------------+
| **Snack     | NZ 21%       | -   Trade        | -   Many U.S.       |
| Foods^1^**  |              |     Agreements.  |     branded         |
|             | USA 8%       |                  |     products are    |
| Net         |              | -   Close        |     made in         |
| Imports:    | UK 7%        |     proximity    |     Australia.      |
|             |              |     and          |                     |
| 42,075 tons | Spain 7%     |     therefore    | ```{=html}          |
|             |              |     reduced      | <!-- -->            |
| US\$129.9m  |              |     transaction  | ```                 |
|             |              |     costs        | -   Australia       |
|             |              |                  |     processing      |
|             |              | -   Brand        |     plants have     |
|             |              |     recognition. |     access to a     |
|             |              |                  |     large range of  |
|             |              |                  |     raw materials.  |
+-------------+--------------+------------------+---------------------+
| **Breakfast | NZ 31%       | -   NZ - Trade   | -   Some Kellogg's  |
| c           |              |     Agreements.  |     products sold   |
| ereals^2^** | USA 23%      |                  |     in Australia    |
|             |              | -   USA -        |     are 'Made in    |
| Net         | Canada 11%   |     Kellogg's    |     Australia.      |
| Imports:    |              |     holds nearly |                     |
|             | Poland 10%   |     50% of the   |                     |
| 5,175 tons  |              |     grocery      |                     |
|             |              |     value.       |                     |
| US\$8m      |              |                  |                     |
+-------------+--------------+------------------+---------------------+
| **Red       | NZ 74%       | -   NZ - Trade   | -   Australia is    |
| meat**      |              |     Agreements.  |     the world\'s    |
|             | Australia    |                  |     largest beef    |
| Net         | 14%          |                  |     exporter and    |
| Imports:    |              |                  |     one of the      |
|             | USA 11%      |                  |     largest lamb    |
| 1,204 tons  |              |                  |     and mutton      |
|             |              |                  |     exporters.      |
| US\$2.6m    |              |                  |                     |
|             |              |                  | -   Strict import   |
|             |              |                  |     conditions      |
+-------------+--------------+------------------+---------------------+
| **P         | NZ 46%       | -   Trade        | -   Uncooked        |
| oultry^3^** |              |     Agreements   |     Poultry imports |
|             | USA 17%      |                  |     banned.         |
| Net         |              | -   NZ and USA   |                     |
| Imports:    | Croatia 12%  |     are able to  | -   Import          |
|             |              |     meet and     |     conditions for  |
| 904 tons    | Slovakia 7%  |     satisfy      |     cooked poultry  |
|             |              |     tight        |     products are    |
| US\$2.1m    |              |     regulations  |     strict.         |
|             |              |     for import.  |                     |
+-------------+--------------+------------------+---------------------+

+-------------+--------------+------------------+---------------------+
| *           | NZ 81%       | -   Trade        | -   Australian      |
| *Dairy^4^** |              |     Agreements   |     products are    |
|             | Italy 3%     |                  |     widely regarded |
| Net         |              | -   NZ brand     |     as synonymous   |
| Imports:    |              |     recognition  |     with quality    |
|             |              |     and          |     and variety.    |
| 65,476 tons |              |     patronage    |                     |
|             |              |     with NZ      | -   Comparative     |
| US\$149m    |              |     owned brands |     price           |
|             |              |     representing |     advantages and  |
|             |              |     approx.      |     the safety      |
|             |              |     17.1% market |     issues further  |
|             |              |     share.       |     assist the case |
|             |              |                  |     for local and   |
|             |              |                  |     New Zealand     |
|             |              |                  |     product.        |
+-------------+--------------+------------------+---------------------+
| **Egg       | Thailand 71% | -   Thailand -   | -   Import          |
| Products**  |              |     competitive  |     restrictions    |
|             | UK 13%       |     export       |     favors local    |
| Net         |              |     prices for   |     supply.         |
| Imports:    | USA 6%       |     eggs         |                     |
|             |              |                  | -   Many of the     |
| 710 tons    |              | -   Strong and   |     suppliers are   |
|             |              |     growing egg  |     co-operative    |
| US\$2m      |              |     export       |     based farmer    |
|             |              |     market.      |     groups.         |
|             |              |                  |                     |
|             |              | -   Close        | -   Private label   |
|             |              |     proximity    |     represents      |
|             |              |     benefits     |     nearly 40%      |
|             |              |     transporting |     value of the    |
|             |              |     of           |     market segment. |
|             |              |     perishable   |                     |
|             |              |     goods.       | -   Limited shelf   |
|             |              |                  |     life.           |
+-------------+--------------+------------------+---------------------+
| **Fish and  | NZ 31%       | -   Half the     | -   Imported        |
| Seafood**   |              |     quantities   |     seafood         |
|             | Thailand 9%  |     of imported  |     products now    |
| Net         |              |     seafood come |     provide more    |
| Imports:    | South Africa |     from just    |     than 60% of     |
|             | 7%           |     two          |     seafood sold in |
| 91,715 tons |              |     countries    |     Australia.      |
|             | China 7%     |     --- New      |                     |
| US\$318m    |              |     Zealand and  | -   Consumption of  |
|             |              |     Thailand.    |     imported        |
|             |              |                  |     seafood has     |
|             |              | -   The quantity |     reached 140,000 |
|             |              |     of chilled   |     tons a year or  |
|             |              |     fish         |     50 per cent     |
|             |              |     imported has |     more than       |
|             |              |     grown 30% in |     levels of 10    |
|             |              |     just four    |     years ago, with |
|             |              |     years.       |     an industry     |
|             |              |                  |     value today of  |
|             |              | -   NZ has a     |     about US\$544   |
|             |              |     clean/green  |     million.        |
|             |              |     image.       |                     |
|             |              |                  | -   Australian      |
|             |              | -   Australians  |     fisheries are   |
|             |              |     are          |     unable to meet  |
|             |              |     increasingly |     demand for some |
|             |              |     willing to   |     products.       |
|             |              |     experiment   |                     |
|             |              |     with various |                     |
|             |              |     food types   |                     |
|             |              |     and          |                     |
|             |              |                  |                     |
|             |              |    preparations, |                     |
|             |              |     creating a   |                     |
|             |              |     market for   |                     |
|             |              |     species and  |                     |
|             |              |     products     |                     |
|             |              |     that are     |                     |
|             |              |     unavailable  |                     |
|             |              |     locally.     |                     |
+-------------+--------------+------------------+---------------------+
| **Fruits &  | NZ 27%       | -   Trade        | -   Many quarantine |
| V           |              |     Agreements   |     bans or severe  |
| egetables** | USA 24%      |                  |     restrictions    |
|             |              | -   NZ has a     |     exist for fresh |
| Net         | Turkey 16%   |     clean/green  |     fruit and       |
| Imports:    |              |     image        |     vegetable       |
|             |              |                  |                     |
| 99,177 tons |              | -   Close        | -   Supply chain    |
|             |              |     proximity    |     favor local     |
| US\$134m    |              |                  |     grown fruit     |
|             |              | -                |                     |
|             |              | Counter-cyclical |                     |
|             |              |     supply       |                     |
+-------------+--------------+------------------+---------------------+

+------------+--------------+------------------+---------------------+
| **Nuts**   | Vietnam 24%  | -   Vietnam is   | -   The climate in  |
|            |              |     the second   |     Australia       |
| Net        | Philippines  |     largest      |     favorable for   |
| Imports:   | 17%          |     cashew       |     producing many  |
|            |              |     exporter in  |     different types |
| 29,062     | NCD 13%      |     the world.   |     of nuts.        |
| tons       |              |                  |                     |
|            | Indonesia    | -   Efficient    |                     |
| US\$66m    | 12%          |     producer     |                     |
|            |              |     with yields  |                     |
|            | USA 10%      |     generally    |                     |
|            |              |     higher than  |                     |
|            |              |     in competing |                     |
|            |              |     countries.   |                     |
|            |              |                  |                     |
|            |              | -   Processing   |                     |
|            |              |     is           |                     |
|            |              |     competitive  |                     |
|            |              |     with low     |                     |
|            |              |     labor costs. |                     |
+------------+--------------+------------------+---------------------+
| **B        | NZ 57%       | -   Trade        | -   Coca Cola       |
| everages** |              |     Agreements   |     Amatil holds    |
|            | ASTA 12%     |                  |     nearly 60% of   |
| Net        |              | -   Close        |     the market      |
| Imports:   | Malaysia 6%  |     proximity    |     share.          |
|            |              |     (bulky       |                     |
| 91,715 ton | Italy 4%     |     goods).      |                     |
|            |              |                  |                     |
| US\$318m   | China 4%     |                  |                     |
+------------+--------------+------------------+---------------------+
| **I        | Ireland 49%  | -   USA brand    | -                   |
| nfant/Baby |              |     Heinz        |    Well-established |
| Pro        | NZ 30%       |     Watties      |     Australian      |
| ducts^5^** |              |     holds 51.5%  |     brand names     |
|            | USA 17%      |     of the       |     such as Golden  |
| Net        |              |     grocery      |     Circle are      |
| Imports:   |              |     value.       |     branching out   |
|            |              |                  |     into Baby Food. |
| 5,068 tons |              | -                |                     |
|            |              | Well-established |                     |
| US\$27.4m  |              |     and          |                     |
|            |              |     respected    |                     |
|            |              |     brand names  |                     |
|            |              |     dominate the |                     |
|            |              |     segment and  |                     |
|            |              |     this segment |                     |
|            |              |     is           |                     |
|            |              |     reportedly   |                     |
|            |              |     hard to      |                     |
|            |              |     break into.  |                     |
+------------+--------------+------------------+---------------------+
| **Pet      | Thailand 48% | -   Competitive  | -   U.S. owned      |
| Food**     |              |     export       |     brands (such as |
|            | USA 32%      |     prices       |     Uncle Bens) are |
| Net        |              |                  |     produced in     |
| Imports:   | NZ 18%       | -   Large number |     Australia from  |
|            |              |     of USA       |     almost all      |
| 40,725     |              |     brands on    |     Australian/New  |
| tons       |              |     the market   |     Zealand         |
|            |              |                  |     ingredients.    |
| US\$46m    |              |   (approximately |                     |
|            |              |     65.8% of the |                     |
|            |              |     grocery      |                     |
|            |              |     value        |                     |
|            |              |     belongs to   |                     |
|            |              |     USA owned    |                     |
|            |              |     brands).     |                     |
+------------+--------------+------------------+---------------------+

The level of information available from the Australian Customs Tariff
codes restricts the analysis in this table. The primary constraint is
that imports are recorded by food type and not end use. For example, all
nuts will appear as nuts (by type and how they are prepared). However,
nuts are potentially a 'snack food' but have not been included as such.
Details of which tariff codes have been included in each category are
documented as follows to assist with the interpretation of this
information.

1\. Snack Food category includes import tariff codes 1704 -- sugar
confectionary not containing cocoa and 1806 -- chocolate and other food
preparation containing cocoa.

2\. Breakfast cereal category includes import tariff code 1904 --
prepared foods obtained by the swelling or roasting of cereals or cereal
products.

3\. Poultry category includes tariff code 1602.3 Prepared or preserved
poultry meat.

4\. Dairy Category includes Cheese, yogurt, dairy desert (not ice
cream), drinks, dairy dips, butter, margarine and milk

5\. This category includes tariff code 1901.10.00 Preparations for
infant use, put up for retail sale.

# SECTION IV: BEST PRODUCT PROSPECTS

## Category A: Products Present in the Market Which Have Good Sales Potential

Products presented in table 10 all experienced strong growth over the
period 2001--2002. These products are likely to continue this trend due
to current market drivers as discussed in Section I.

Table 10. Products Present in the Market Which Have Good Sales Potential

+--------+------+-------+-------+------+-----------+----------------+
| **P    | **   | *     | *     | **Im | **Key     | **Market       |
| roduct | 2002 | *2002 | *5-yr | port | Co        | Attractiveness |
| Cate   | Ma   | Impo  | Avg   | Ta   | nstraints | for the USA**  |
| gory** | rket | rts** | A     | riff | Over      |                |
|        | s    |       | nnual | Ra   | Market    |                |
|        | hare | *     | I     | te** | Deve      |                |
|        | (    | *(\$M | mport |      | lopment** |                |
|        | \$Mi | il)** | Gro   |      |           |                |
|        | l)** |       | wth** |      |           |                |
+--------+------+-------+-------+------+-----------+----------------+
| **     | The  | U     | 7%    | Free | -         | -   Basmati is |
| Rice** | v    | S\$23 |       |      |   Sunrice |     one of the |
|        | alue |       |       |      |     an    |     highest    |
|        | of   |       |       |      |     A     |     growing    |
|        | the  |       |       |      | ustralian |     (19.5% -   |
|        | A    |       |       |      |           |     01/02)     |
|        | ust. |       |       |      |    owned/ |     rice       |
|        | rice |       |       |      |     manu  |     segments   |
|        | ma   |       |       |      | -factured |     in         |
|        | rket |       |       |      |           |     Australia. |
|        | is   |       |       |      |    brand, |                |
|        | US   |       |       |      |           | -   Rice       |
|        | \$56 |       |       |      | dominates |     segment    |
|        |      |       |       |      |     the   |     overall is |
|        |      |       |       |      |     rice  |     growing at |
|        |      |       |       |      |           |     3.3%.      |
|        |      |       |       |      | category. |                |
|        |      |       |       |      |           | -   Imported   |
|        |      |       |       |      | -   As UK |     UK (Tilda  |
|        |      |       |       |      |     brand |     brand)     |
|        |      |       |       |      |           |     products   |
|        |      |       |       |      |    leader |     hold 10.8% |
|        |      |       |       |      |     in    |     share of   |
|        |      |       |       |      |           |     the        |
|        |      |       |       |      |   Basmati |     Basmati    |
|        |      |       |       |      |     rice, |     segment.   |
|        |      |       |       |      |     Tilda |                |
|        |      |       |       |      |           | -   The Rizazz |
|        |      |       |       |      |  achieved |     range has  |
|        |      |       |       |      |     p     |     been       |
|        |      |       |       |      | henomenal |     developed  |
|        |      |       |       |      |           |     in         |
|        |      |       |       |      |   success |     response   |
|        |      |       |       |      |     with  |     to a       |
|        |      |       |       |      |     the   |     growing    |
|        |      |       |       |      |     UK    |     consumer   |
|        |      |       |       |      |           |     trend      |
|        |      |       |       |      |    launch |     towards    |
|        |      |       |       |      |     of    |     nutrition, |
|        |      |       |       |      |           |     healthy    |
|        |      |       |       |      |    Rizazz |     eating     |
|        |      |       |       |      |     in    |     habits and |
|        |      |       |       |      |     2001  |     an         |
|        |      |       |       |      |     and a |     increased  |
|        |      |       |       |      |           |     need for   |
|        |      |       |       |      |   similar |     speedy     |
|        |      |       |       |      |           |     meal       |
|        |      |       |       |      |   success |     solutions, |
|        |      |       |       |      |     story |     but not at |
|        |      |       |       |      |     is    |     the        |
|        |      |       |       |      |           |     expense of |
|        |      |       |       |      | predicted |     quality.   |
|        |      |       |       |      |     for   |                |
|        |      |       |       |      |     the   |                |
|        |      |       |       |      |     A     |                |
|        |      |       |       |      | ustralian |                |
|        |      |       |       |      |           |                |
|        |      |       |       |      |   launch. |                |
+--------+------+-------+-------+------+-----------+----------------+
| *      | US   | US\$7 | \<1%  | Free | -   A     | -   High       |
| *Still | \$49 |       |       |      |     large |     growth     |
| W      |      |       |       |      |           |     category   |
| ater** |      |       |       |      |    number |     with       |
|        |      |       |       |      |     of    |     grocery    |
|        |      |       |       |      |           |     value      |
|        |      |       |       |      |    brands |     increasing |
|        |      |       |       |      |           |     +20.7%     |
|        |      |       |       |      |   already |     over       |
|        |      |       |       |      |     in    |     2001/2002. |
|        |      |       |       |      |     the   |                |
|        |      |       |       |      |           | -   Imports    |
|        |      |       |       |      |   market. |     permitted. |
|        |      |       |       |      |           |                |
|        |      |       |       |      | -   Coca  | -   No import  |
|        |      |       |       |      |     Cola  |     tariff.    |
|        |      |       |       |      |           |                |
|        |      |       |       |      |    Amatil |                |
|        |      |       |       |      |           |                |
|        |      |       |       |      |   holding |                |
|        |      |       |       |      |     25%   |                |
|        |      |       |       |      |           |                |
|        |      |       |       |      | corporate |                |
|        |      |       |       |      |           |                |
|        |      |       |       |      |    market |                |
|        |      |       |       |      |           |                |
|        |      |       |       |      |    share. |                |
|        |      |       |       |      |           |                |
|        |      |       |       |      | -   Level |                |
|        |      |       |       |      |     of    |                |
|        |      |       |       |      |           |                |
|        |      |       |       |      |   imports |                |
|        |      |       |       |      |     has   |                |
|        |      |       |       |      |           |                |
|        |      |       |       |      |  remained |                |
|        |      |       |       |      |           |                |
|        |      |       |       |      |   similar |                |
|        |      |       |       |      |     over  |                |
|        |      |       |       |      |     the   |                |
|        |      |       |       |      |     last  |                |
|        |      |       |       |      |     5     |                |
|        |      |       |       |      |           |                |
|        |      |       |       |      |    years. |                |
+--------+------+-------+-------+------+-----------+----------------+
| *      | Gro  | US    | 10%   | 4%   | -   Some  | -   Consumer   |
| *Ready | cery | \$320 |       |      |           |     acceptance |
| to eat | V    |       |       |      |    import |     of frozen  |
| m      | alue |       |       |      |     res   |     meals      |
| eals** | US   |       |       |      | trictions |                |
| --     | \$66 |       |       |      |     for   |    increasing. |
| fro    |      |       |       |      |     meat  |                |
| zen^1^ |      |       |       |      |     and   | -   Average    |
|        |      |       |       |      |           |     amount     |
|        |      |       |       |      | vegetable |     spent by   |
|        |      |       |       |      |     prep  |     each       |
|        |      |       |       |      | arations. |     consumer   |
|        |      |       |       |      |           |     in this    |
|        |      |       |       |      | -         |     category   |
|        |      |       |       |      |    McCain |     is         |
|        |      |       |       |      |     is    |                |
|        |      |       |       |      |     the   |    increasing. |
|        |      |       |       |      |           |                |
|        |      |       |       |      |   leading | -   Growth has |
|        |      |       |       |      |     brand |     solid      |
|        |      |       |       |      |     name  |     future     |
|        |      |       |       |      |           |     potential  |
|        |      |       |       |      |   holding |     due to the |
|        |      |       |       |      |     37.4  |     trends of  |
|        |      |       |       |      |     %     |                |
|        |      |       |       |      |           |    convenience |
|        |      |       |       |      |    market |     and time   |
|        |      |       |       |      |     share |     poor       |
|        |      |       |       |      |     and   |     consumers. |
|        |      |       |       |      |     is a  |                |
|        |      |       |       |      |     si    | -   Grocery    |
|        |      |       |       |      | gnificant |     Value      |
|        |      |       |       |      |     and   |     Change     |
|        |      |       |       |      |           |     over       |
|        |      |       |       |      | respected |     2001/2002  |
|        |      |       |       |      |           |     +30.1%     |
|        |      |       |       |      |    member |                |
|        |      |       |       |      |     of    |                |
|        |      |       |       |      |     the   |                |
|        |      |       |       |      |           |                |
|        |      |       |       |      |    frozen |                |
|        |      |       |       |      |     food  |                |
|        |      |       |       |      |           |                |
|        |      |       |       |      | industry. |                |
|        |      |       |       |      |           |                |
|        |      |       |       |      | -         |                |
|        |      |       |       |      |    McCain |                |
|        |      |       |       |      |     Foods |                |
|        |      |       |       |      |           |                |
|        |      |       |       |      |    (Aust) |                |
|        |      |       |       |      |     has   |                |
|        |      |       |       |      |     three |                |
|        |      |       |       |      |     p     |                |
|        |      |       |       |      | roduction |                |
|        |      |       |       |      |     f     |                |
|        |      |       |       |      | acilities |                |
|        |      |       |       |      |     in    |                |
|        |      |       |       |      |     A     |                |
|        |      |       |       |      | ustralia. |                |
+--------+------+-------+-------+------+-----------+----------------+
| **Sn   | Cate | US\$  | 4%^4^ | Rice | -   A     | -   Category   |
| acks** | gory | 21^3^ |       | --   | ustralian |     grew 12%   |
| --     | w    |       |       | Free |           |     over the   |
| rice   | orth |       |       |      | consumers |     past 12    |
| and    | US   |       |       | Noo  |     are   |     months.    |
| n      | \$85 |       |       | dles |     price |                |
| oodles | ^2^  |       |       | --   |           | -   Consumers  |
|        |      |       |       | 5%   | conscious |     in the     |
|        |      |       |       |      |     and   |     portable   |
|        |      |       |       |      |     the   |     segment    |
|        |      |       |       |      |     trend |     eat on the |
|        |      |       |       |      |     is    |     go and are |
|        |      |       |       |      |           |     ready to   |
|        |      |       |       |      |   towards |     pay a      |
|        |      |       |       |      |     mu    |     little     |
|        |      |       |       |      | lti-packs |     extra.     |
|        |      |       |       |      |     for   |                |
|        |      |       |       |      |     value |                |
|        |      |       |       |      |           |                |
|        |      |       |       |      | shopping. |                |
|        |      |       |       |      |           |                |
|        |      |       |       |      | -   Many  |                |
|        |      |       |       |      |           |                |
|        |      |       |       |      |  products |                |
|        |      |       |       |      |     in    |                |
|        |      |       |       |      |     C     |                |
|        |      |       |       |      | ups/bowls |                |
|        |      |       |       |      |           |                |
|        |      |       |       |      |   display |                |
|        |      |       |       |      |     low   |                |
|        |      |       |       |      |     fat   |                |
|        |      |       |       |      |           |                |
|        |      |       |       |      |   appeal. |                |
+--------+------+-------+-------+------+-----------+----------------+
| *      | US   | U     | 6%    | 5%   | -   Brand | -   A lot of   |
| *Jam** | \$64 | S\$16 |       |      |           |     growth is  |
|        |      |       |       |      |    shares |     expected   |
|        |      |       |       |      |     by    |     to come    |
|        |      |       |       |      |           |     from low   |
|        |      |       |       |      |    volume |     joule      |
|        |      |       |       |      |     are   |     varieties  |
|        |      |       |       |      |     IXL   |     because of |
|        |      |       |       |      |           |                |
|        |      |       |       |      |    19.3%, |    Australia's |
|        |      |       |       |      |           |     rising     |
|        |      |       |       |      |  Cottees, |     rate of    |
|        |      |       |       |      |           |     diabetes   |
|        |      |       |       |      |    16.8%, |     and health |
|        |      |       |       |      |           |     conscious  |
|        |      |       |       |      |    Golden |     consumers. |
|        |      |       |       |      |           |                |
|        |      |       |       |      |    Circle | -   Jam has    |
|        |      |       |       |      |           |     the        |
|        |      |       |       |      |    16.2%, |     highest    |
|        |      |       |       |      |           |     household  |
|        |      |       |       |      |  Monbulk, |                |
|        |      |       |       |      |     8.5%. |    penetration |
|        |      |       |       |      |           |     of all     |
|        |      |       |       |      | -         |     shelf      |
|        |      |       |       |      |    Golden |     stable     |
|        |      |       |       |      |           |                |
|        |      |       |       |      |    Circle |    spreads.^5^ |
|        |      |       |       |      |     has   |                |
|        |      |       |       |      |     just  |                |
|        |      |       |       |      |           |                |
|        |      |       |       |      |  released |                |
|        |      |       |       |      |     three |                |
|        |      |       |       |      |           |                |
|        |      |       |       |      |   flavors |                |
|        |      |       |       |      |     of    |                |
|        |      |       |       |      |     diet  |                |
|        |      |       |       |      |     jam.  |                |
+--------+------+-------+-------+------+-----------+----------------+

+--------+------+-------+-------+------+-----------+----------------+
| **     | Gro  | U     | Up by | 5%   | -   The   | -   Import and |
| Canned | cery | S\$20 | 14%   |      |           |     private    |
| Toma   | v    |       |       |      |    canned |     labels     |
| toes** | alue |       |       |      |     food  |     have more  |
|        | U    |       |       |      |           |     than 50%   |
|        | S\$4 |       |       |      |  category |     market     |
|        | 0^6^ |       |       |      |     as a  |     share.     |
|        |      |       |       |      |     whole |                |
|        |      |       |       |      |     is    | -   Segment is |
|        |      |       |       |      |           |     driven by  |
|        |      |       |       |      |    hardly |     price      |
|        |      |       |       |      |           |                |
|        |      |       |       |      |  growing, |    encouraging |
|        |      |       |       |      |           |     some       |
|        |      |       |       |      |    partly |     Australian |
|        |      |       |       |      |           |                |
|        |      |       |       |      |   because |  manufacturers |
|        |      |       |       |      |     of    |     to move    |
|        |      |       |       |      |     al    |     away from  |
|        |      |       |       |      | ternative |     tomatoes.  |
|        |      |       |       |      |           |                |
|        |      |       |       |      | packaging |                |
|        |      |       |       |      |     and a |                |
|        |      |       |       |      |     lack  |                |
|        |      |       |       |      |     of    |                |
|        |      |       |       |      |     in    |                |
|        |      |       |       |      | novation. |                |
|        |      |       |       |      |           |                |
|        |      |       |       |      | -   85%   |                |
|        |      |       |       |      |     of    |                |
|        |      |       |       |      |           |                |
|        |      |       |       |      |   imports |                |
|        |      |       |       |      |     are   |                |
|        |      |       |       |      |     from  |                |
|        |      |       |       |      |     Italy |                |
|        |      |       |       |      |           |                |
|        |      |       |       |      |  compared |                |
|        |      |       |       |      |     to 5% |                |
|        |      |       |       |      |     from  |                |
|        |      |       |       |      |     the   |                |
|        |      |       |       |      |     USA.  |                |
+--------+------+-------+-------+------+-----------+----------------+
| **     | Gro  | U     | Up by | 5%   | -         | -   Growth is  |
| Canned | cery | S\$56 | 63%   | ta   |  Unilever |     largely    |
| Tuna** | V    |       |       | riff |     is    |     attributed |
|        | alue | 2     |       | for  |     the   |     to the new |
|        | US\  | 3,809 |       | T    |           |     flavors    |
|        | $129 | tons  |       | unas |    leader |     and        |
|        |      |       |       | pa   |     in    |     varieties  |
|        |      |       |       | cked |     value |     on offer.  |
|        |      |       |       | in   |     added |                |
|        |      |       |       | airt |     tuna  | -   Growth is  |
|        |      |       |       | ight |     with  |     also       |
|        |      |       |       | cans |     43.7% |     because of |
|        |      |       |       |      |     share |     the        |
|        |      |       |       |      |     of    |     healthy    |
|        |      |       |       |      |     the   |     image of   |
|        |      |       |       |      |           |     tuna i.e.  |
|        |      |       |       |      |   market. |     omega 3    |
|        |      |       |       |      |           |     oils and   |
|        |      |       |       |      | -   There |     low fat    |
|        |      |       |       |      |     are a |     options.   |
|        |      |       |       |      |     lot   |                |
|        |      |       |       |      |     of    |                |
|        |      |       |       |      |           |                |
|        |      |       |       |      |    brands |                |
|        |      |       |       |      |     with  |                |
|        |      |       |       |      |     much  |                |
|        |      |       |       |      |     the   |                |
|        |      |       |       |      |     same  |                |
|        |      |       |       |      |           |                |
|        |      |       |       |      |   product |                |
|        |      |       |       |      |     on    |                |
|        |      |       |       |      |     the   |                |
|        |      |       |       |      |           |                |
|        |      |       |       |      |    shelf. |                |
|        |      |       |       |      |           |                |
|        |      |       |       |      | -   Su    |                |
|        |      |       |       |      | stainable |                |
|        |      |       |       |      |           |                |
|        |      |       |       |      |   sources |                |
|        |      |       |       |      |     of    |                |
|        |      |       |       |      |     fish. |                |
+--------+------+-------+-------+------+-----------+----------------+

1\. Includes Custom Tariff Code 2106.90.90.

2\. Category consists of simmer - instant pasta, rice, and 2-minute
noodles, cups, bowls & cooking noodles.

3\. Only includes noodle imports, Custom Tariff Code 1902.30.00

4\. Only includes noodle growth, Tariff code 1902.30.00.

5\. 26.9% of total spreads category sales (AC Nielsen, MAT to Jan 12,
2003).

6\. Segment includes canned and dehydrated tomatoes. This is the best
available estimate.

## Category B: Products Not Present in Significant Quantities But Which Have Good Sales Potential

Products identified in this category include new innovative products
that have recently been developed and currently advertised in retail
industry magazines and others foods (e.g. organic products and energy
drinks) that, by comparison to similar products on the market (e.g.
other fresh fruit and vegetables and soft drinks), represent a small
proportion of the market.

**Table 11. Products Not Present in Significant Quantities but Which
Have Good Sales Potential**

+---------+------+-------+------+-------+--------------+-------------+
| **      | **   | *     | **   | **I   | **Key        | **Market    |
| Product | 2002 | *2002 | 5-yr | mport | Constraints  | Att         |
| Cat     | Ma   | Impo  | Avg  | T     | Over Market  | ractiveness |
| egory** | rket | rts** | An   | ariff | D            | for the     |
|         | sha  |       | nual | R     | evelopment** | USA**       |
|         | re** | *     | Im   | ate** |              |             |
|         |      | *(\$M | port |       |              |             |
|         | **(  | il)** | Grow |       |              |             |
|         | \$Mi |       | th** |       |              |             |
|         | l)** |       |      |       |              |             |
+---------+------+-------+------+-------+--------------+-------------+
| **Br    | Gro  | N/A   | N/A  | 3-5%  | -            | -           |
| eakfast | cery |       |      |       |   Sanitarium |   Breakfast |
| D       | V    |       |      |       |     is the   |             |
| rinks** | alue |       |      |       |     category |    skipping |
|         | U    |       |      |       |     leader   |     is on   |
|         | S\$9 |       |      |       |     with     |     the     |
|         |      |       |      |       |     over 80% |             |
|         |      |       |      |       |     share.   |    increase |
|         |      |       |      |       |              |             |
|         |      |       |      |       | -   B-fast   |   therefore |
|         |      |       |      |       |     drinks   |     the     |
|         |      |       |      |       |              |             |
|         |      |       |      |       |  constitutes |   potential |
|         |      |       |      |       |     just     |     for     |
|         |      |       |      |       |     2.25%    |             |
|         |      |       |      |       |     value    |  convenient |
|         |      |       |      |       |     share of |             |
|         |      |       |      |       |     the      |  breakfasts |
|         |      |       |      |       |              |     such as |
|         |      |       |      |       |    Breakfast |     drinks  |
|         |      |       |      |       |     cereal   |     is      |
|         |      |       |      |       |     and      |     large   |
|         |      |       |      |       |     drink    |     and     |
|         |      |       |      |       |              |             |
|         |      |       |      |       |    category. |    growing. |
+---------+------+-------+------+-------+--------------+-------------+
| **Nut   | Gro  | N/A   | N/A  | 5% on | -   Goodman  | -   Tasty,  |
| ritious | cery |       |      | m     |     Fielder  |             |
| S       | Val  |       |      | uesli |     (Uncle   |    healthy, |
| nacks** | ue - |       |      | type  |     Toby's   |             |
| --      | US   |       |      | pr    |     brand)   |   portable, |
| Muesli  | \$48 |       |      | epara |     is the   |             |
| Bars    |      |       |      | tions |     clear    | convenient, |
|         |      |       |      |       |     market   |     singe   |
|         |      |       |      |       |     leader   |     serve   |
|         |      |       |      |       |     with     |     are all |
|         |      |       |      |       |     nearly   |             |
|         |      |       |      |       |     40%      |    elements |
|         |      |       |      |       |     market   |     driving |
|         |      |       |      |       |     share.   |     the     |
|         |      |       |      |       |              |     growth  |
|         |      |       |      |       |              |     in this |
|         |      |       |      |       |              |             |
|         |      |       |      |       |              |    segment. |
|         |      |       |      |       |              |             |
|         |      |       |      |       |              | -   Imports |
|         |      |       |      |       |              |             |
|         |      |       |      |       |              |  permitted. |
|         |      |       |      |       |              |             |
|         |      |       |      |       |              | -   Growth  |
|         |      |       |      |       |              |     of      |
|         |      |       |      |       |              |     17.5%   |
|         |      |       |      |       |              |     in      |
|         |      |       |      |       |              |     01/02.  |
|         |      |       |      |       |              |             |
|         |      |       |      |       |              | -   Muesli  |
|         |      |       |      |       |              |     Bars    |
|         |      |       |      |       |              |     make up |
|         |      |       |      |       |              |     24% of  |
|         |      |       |      |       |              |     the     |
|         |      |       |      |       |              |             |
|         |      |       |      |       |              |  nutritious |
|         |      |       |      |       |              |     snack   |
|         |      |       |      |       |              |     market. |
+---------+------+-------+------+-------+--------------+-------------+
| **      | Gro  | US\   | Only | Free  | -   Riviana  | -   Growth  |
| Pickled | cery | $0.42 | 2002 |       |     Foods    |     for     |
| Veget   | v    |       | s    |       |     label    |     this    |
| ables** | alue |       | tats |       |     Always   |             |
|         | US   |       | ava  |       |     Fresh is |    category |
|         | \$42 |       | il-a |       |     the      |     over    |
|         |      |       | ble. |       |     market   |     2000/01 |
|         |      |       |      |       |     leader   |     was     |
|         |      |       |      |       |     with     |     8.2%.   |
|         |      |       |      |       |     25.6%    |             |
|         |      |       |      |       |     share.   | -   This    |
|         |      |       |      |       |     Always   |     type of |
|         |      |       |      |       |     Fresh    |     product |
|         |      |       |      |       |     have     |     is      |
|         |      |       |      |       |              |             |
|         |      |       |      |       |    increased |  convenient |
|         |      |       |      |       |     their    |     for     |
|         |      |       |      |       |     brand    |     export  |
|         |      |       |      |       |     share    |     given   |
|         |      |       |      |       |     with     |     long    |
|         |      |       |      |       |              |     life    |
|         |      |       |      |       |   successful |     span of |
|         |      |       |      |       |     brand    |             |
|         |      |       |      |       |              |    product. |
|         |      |       |      |       |    campaigns |             |
|         |      |       |      |       |     and      | -   Some    |
|         |      |       |      |       |     national |     types   |
|         |      |       |      |       |     consumer |     are     |
|         |      |       |      |       |              |             |
|         |      |       |      |       |  promotions. |    consumed |
|         |      |       |      |       |              |     as      |
|         |      |       |      |       |              |     snacks. |
+---------+------+-------+------+-------+--------------+-------------+

+---------+------+-------+------+-------+--------------+-------------+
| *       | Gro  | N/A   | N/A  | 5%    | -   There is | -   This    |
| *Energy | cery |       |      |       |              |             |
| D       | V    |       |      |       |   continuous |    category |
| rinks** | alue |       |      |       |              |     is the  |
|         | US   |       |      |       |   innovation |     most    |
|         | \$16 |       |      |       |     from     |     active  |
|         |      |       |      |       |     smaller, |     segment |
|         |      |       |      |       |     new      |     in the  |
|         |      |       |      |       |     players  |     soft    |
|         |      |       |      |       |     however  |     drink   |
|         |      |       |      |       |     the      |     market  |
|         |      |       |      |       |     leading  |     (Retail |
|         |      |       |      |       |     brands   |     World   |
|         |      |       |      |       |     are V    |             |
|         |      |       |      |       |     (Frucor) |    Sept/Oct |
|         |      |       |      |       |     at 37%   |     2002).  |
|         |      |       |      |       |     then Red |             |
|         |      |       |      |       |     Bull     | -   It has  |
|         |      |       |      |       |     19%.     |     been    |
|         |      |       |      |       |              |     the     |
|         |      |       |      |       | -   Grocery  |     fastest |
|         |      |       |      |       |     channel  |     growing |
|         |      |       |      |       |     yet to   |             |
|         |      |       |      |       |              |    category |
|         |      |       |      |       |   capitalize |     for two |
|         |      |       |      |       |     on this  |     years   |
|         |      |       |      |       |     category |             |
|         |      |       |      |       |     in terms |    running. |
|         |      |       |      |       |     of       |             |
|         |      |       |      |       |     adequate | -           |
|         |      |       |      |       |     shelf    |   Consumers |
|         |      |       |      |       |     space    |     of      |
|         |      |       |      |       |     and      |     energy  |
|         |      |       |      |       |              |     drinks  |
|         |      |       |      |       |  promotions. |     are a   |
|         |      |       |      |       |              |     younger |
|         |      |       |      |       | -   Despite  |             |
|         |      |       |      |       |     huge     | demographic |
|         |      |       |      |       |     growth   |     who are |
|         |      |       |      |       |     (40% in  |     big     |
|         |      |       |      |       |     2000 and |             |
|         |      |       |      |       |     35%      |   spenders. |
|         |      |       |      |       |     in 2001) |             |
|         |      |       |      |       |     the      | -   New     |
|         |      |       |      |       |     total %  |             |
|         |      |       |      |       |     share of |    products |
|         |      |       |      |       |     the cold |     are     |
|         |      |       |      |       |     beverage |     likely  |
|         |      |       |      |       |     market   |     to be   |
|         |      |       |      |       |     is 2.0%. |     driving |
|         |      |       |      |       |              |     growth. |
+---------+------+-------+------+-------+--------------+-------------+

## Category C: Products Not Present in the Market Because They Face Significant Barriers.

Table 12: Products Not Present in the Market Because They Face
Significant Barriers

+--------+-------+-------+-------+--------+------------+-------------+
| **P    | *     | *     | *     | **     | **Key      | **Market    |
| roduct | *2002 | *2002 | *5-yr | Import | C          | Att         |
| Cate   | M     | Impo  | Avg   | Tariff | onstraints | ractiveness |
| gory** | arket | rts** | A     | Rate** | Over       | for the     |
|        | sh    |       | nnual |        | Market     | USA**       |
|        | are** | *     | I     |        | Dev        |             |
|        |       | *(\$M | mport |        | elopment** |             |
|        | *     | il)** | Gro   |        |            |             |
|        | *(\$M |       | wth** |        |            |             |
|        | il)** |       |       |        |            |             |
+--------+-------+-------+-------+--------+------------+-------------+
| **C    | N/A   | N/A   | N/A   | N/A    | -          | -   N/A     |
| hicken |       |       |       |        |    Totally |             |
| --     |       |       |       |        |            |             |
| unco   |       |       |       |        | prohibited |             |
| oked** |       |       |       |        |     in     |             |
|        |       |       |       |        |            |             |
|        |       |       |       |        |  Australia |             |
|        |       |       |       |        |     from   |             |
|        |       |       |       |        |     all    |             |
|        |       |       |       |        |            |             |
|        |       |       |       |        |  countries |             |
+--------+-------+-------+-------+--------+------------+-------------+
| **C    | Gr    | US\$2 | N/A   | Free   | -   Strict | -           |
| hicken | ocery |       |       |        |     import |   Un-canned |
| Froze  | value |       |       |        |     re     |     cooked  |
| n^1^** | U     |       |       |        | strictions |     chicken |
|        | S\$52 |       |       |        |            |     imports |
|        |       |       |       |        |            |             |
|        |       |       |       |        |            |  permitted. |
|        |       |       |       |        |            |             |
|        |       |       |       |        |            | -           |
|        |       |       |       |        |            |  Australian |
|        |       |       |       |        |            |             |
|        |       |       |       |        |            |   consumers |
|        |       |       |       |        |            |     are     |
|        |       |       |       |        |            |             |
|        |       |       |       |        |            |  increasing |
|        |       |       |       |        |            |     their   |
|        |       |       |       |        |            |     intake  |
|        |       |       |       |        |            |     of      |
|        |       |       |       |        |            |             |
|        |       |       |       |        |            |    chicken. |
|        |       |       |       |        |            |             |
|        |       |       |       |        |            | -   Grocery |
|        |       |       |       |        |            |     value   |
|        |       |       |       |        |            |     of      |
|        |       |       |       |        |            |     frozen  |
|        |       |       |       |        |            |     chicken |
|        |       |       |       |        |            |             |
|        |       |       |       |        |            |    category |
|        |       |       |       |        |            |             |
|        |       |       |       |        |            |   increased |
|        |       |       |       |        |            |     10.8%   |
|        |       |       |       |        |            |     over    |
|        |       |       |       |        |            |             |
|        |       |       |       |        |            |  2001/2000. |
+--------+-------+-------+-------+--------+------------+-------------+

+--------+-------+-------+-------+--------+------------+-------------+
| **     | \$    | \$US8 | 7%    | 5%     | -   Many   | -   Some    |
| Frozen | US225 |       |       |        |     frozen |     States  |
| Ve     |       |       |       |        |     fruit  |     of      |
| g^3^** |       |       |       |        |     and    |     America |
|        |       |       |       |        |            |     are     |
|        |       |       |       |        | vegetables |             |
|        |       |       |       |        |     are    |    approved |
|        |       |       |       |        |     not    |     to      |
|        |       |       |       |        |            |     export  |
|        |       |       |       |        |  permitted |     certain |
|        |       |       |       |        |     due to |             |
|        |       |       |       |        |     risks  |    products |
|        |       |       |       |        |     of     |     into    |
|        |       |       |       |        |            |             |
|        |       |       |       |        |    serious |  Australia. |
|        |       |       |       |        |     plant  |             |
|        |       |       |       |        |            |             |
|        |       |       |       |        |  pathogens |             |
+--------+-------+-------+-------+--------+------------+-------------+
| *      | Gr    | \$    | N/A   | N/A    | -   Dried  | -           |
| *Dried | ocery | US121 |       | for    |     fruit  | Australians |
| &      | Value |       |       | banned |            |     are     |
| Fresh  | \$US  | 52    |       | subs   |    imports |     among   |
| Frui   | 71^4^ | tons  |       | tances |     are    |     the     |
| t^5^** |       |       |       |        |     not    |     largest |
|        |       |       |       | Figs   |            |             |
|        |       |       |       | and    |  permitted |   consumers |
|        |       |       |       |        |     except |     of      |
|        |       |       |       | Dates  |     for    |     dried   |
|        |       |       |       | --     |     figs,  |     fruits  |
|        |       |       |       | Free   |     dates, |     in the  |
|        |       |       |       |        |            |     world,  |
|        |       |       |       | To     |  tomatoes, |     with    |
|        |       |       |       | matoes |     and    |     average |
|        |       |       |       | and    |            |     annual  |
|        |       |       |       |        |    prunes, |             |
|        |       |       |       | Prunes |     which  | consumption |
|        |       |       |       | -- 5%  |     have   |     around  |
|        |       |       |       |        |            |     1.8 kg  |
|        |       |       |       |        |   specific |     per     |
|        |       |       |       |        |     import |     person. |
|        |       |       |       |        |     c      |             |
|        |       |       |       |        | onditions. | -   Prunes  |
|        |       |       |       |        |            |             |
|        |       |       |       |        | -   Little |   represent |
|        |       |       |       |        |     growth |     15.8%   |
|        |       |       |       |        |     over   |     of the  |
|        |       |       |       |        |            |     grocery |
|        |       |       |       |        |  2001/2002 |     volume  |
|        |       |       |       |        |     (\<1%) |     of      |
|        |       |       |       |        |            |     dried   |
|        |       |       |       |        | -   Many   |     fruit.  |
|        |       |       |       |        |     fresh  |             |
|        |       |       |       |        |     fruit  | -           |
|        |       |       |       |        |            |    Seasonal |
|        |       |       |       |        |    imports |             |
|        |       |       |       |        |     are    |  advantage. |
|        |       |       |       |        |            |             |
|        |       |       |       |        | prohibited |             |
|        |       |       |       |        |     and    |             |
|        |       |       |       |        |     very   |             |
|        |       |       |       |        |     strict |             |
|        |       |       |       |        |            |             |
|        |       |       |       |        | quarantine |             |
|        |       |       |       |        |     r      |             |
|        |       |       |       |        | egulations |             |
|        |       |       |       |        |     are    |             |
|        |       |       |       |        |            |             |
|        |       |       |       |        |   enforced |             |
|        |       |       |       |        |     for    |             |
|        |       |       |       |        |     those  |             |
|        |       |       |       |        |     that   |             |
|        |       |       |       |        |     are    |             |
|        |       |       |       |        |     not    |             |
|        |       |       |       |        |     p      |             |
|        |       |       |       |        | rohibited. |             |
+--------+-------+-------+-------+--------+------------+-------------+

1\. This category includes prepared or preserved poultry meat and the
best available estimate for this segment.

2\. Includes frozen vegetables & potatoes

3\. Custom Tariff Code 0710 Vegetables (uncooked or cooked by steaming
or boiling in water).

4\. Grocery value of dried fruit only.

5\. Tariff codes include 0804, 0805, 0806 and 0813 and include both
fresh and dried fruit. This analysis was unable to be further refined.

# SECTION V. POST CONTACT AND FURTHER INFORMATION

## Import Regulations

Information on Food Law and Policy in Australia can be obtained from the
[www.ausfoodnews.com.au](http://www.ausfoodnews.com.au/) website.

See the Australian Quarantine & Inspection Service import conditions
(ICON) database to identify whether your product is prohibited entry to
Australia.

<http://www.aqis.gov.au/icon32/asp/ex_querycontent.asp>

## Australia's Food Labeling Regulations

In Australia, Food Standards Australia New Zealand (FSANZ) regulates the
delivery of safe food. FSANZ is a bi-national independent statutory
authority. It develops food standards for composition, labeling and
contaminants (including microbiological limits) that apply to all foods
produced or imported for sale in Australia and New Zealand. FSANZ
operates under the Food Standards Australia New Zealand Act 1991.

The Foreign Agricultural Import Regulations and Standards (FAIRS) report
from this office contains detailed information on the Food Standards
Code and other food regulations. A copy of this report can be obtained
by conducting a "AGR Number" (Option 3) search on the following page web
page: <http://www.fas.usda.gov/scriptsw/attacherep/default.asp> for
report number AS3028.

An Internet version of the code can be located on the FSANZ web site at:
<http://www.foodstandards.gov.au/foodstandardscode/>

## Industry Information

**The Association of Sales & Marketing Companies Australiasia** (ASMCA)

[www.asmca.com](http://www.asmca.com/)

The association is a representative voice for brokers, agencies,
importers, demonstration and marketing companies. The ASMCA keeps its
members abreast of matters affecting customer relations, technology,
standards, market growth and sales trends.

**Australian Food & Grocery Council**

Level 2, Salvation Army Building

2-4 Brisbane Avenue

Barton ACT 2600

Australia

Tel: +61-2-6273 1466

Fax: +61-2-6273 1477

Email: info@afgc.org.au

Web: [http://www.afgc.org.au](http://www.afgc.org.au/)

**Food and Beverage Importers Association**

181 Drummond St

Carlton Victoria 3053

Australia

Tel: +61-3-9639 3644

Fax: +61-3-9639 0638

Email: <ajb@spirit.com.au>

Web: <http://www.fbia.org.au/index.html>

## Trade Shows

**Fine Food** is the largest food industry show in Australia. The show
gives buyers the chance to sample new products and talk directly to the
suppliers. The new natural product section is expected to be a major
draw card, with chefs and retailers discovering products that kind to
the environment, kind to consumers and a big hit on the menu. In 2004,
the show will be held at the Melbourne Convention and Exhibition Center
from September 6-9. For further information please contact Australian
Exhibition Services at the address below.

Timothy Collett, Show Director

Australian Exhibition Services Pty Ltd

Illoura Plaza, 424 St Kilda Road

Melbourne Victoria 3004

Australia

> Tel: +61-3-9261 4500
>
> Fax: +61-3-9261 4545
>
> Email: <food@ausexhibit.com.au>

Web: [http://www.finefoodexpo.com.au](http://www.finefoodexpo.com.au/)

# Bibliography

The majority of company information contained in this report was sourced
from corporate websites. Details on sales and revenue was obtained via
the following website: <http://www.seek.co.nz/if.asp?loc=ibis>.
Additional company information was clarified by consultation with
appropriate members of staff within the company.

Other resources include the following industry magazines:

-   Australian Food & Beverage Industry Compendium, 2001 and 2002
    editions.

-   Retail World Magazine

-   [www.news.com.au](http://www.news.com.au/)

Publications include:

-   Australian Bureau of Statistics Catalogue Numbers 8501, 5422, 5206,
    1350 and 4306.

-   AC Nielsen Grocery Report, 2002 and 2003.

#