Required Report - public distribution

**Date:** 11/13/2007

**GAIN Report Number:** CI7029

CI7029

**Chile**

**Retail Food Sector**

**Annual**

**2007**

**Approved by:**

![](media/image1.wmf)Joseph Lopez, Agricultural Attache

Office of Agricultural Affairs

**Prepared by:**

Nelson Ramirez, Marketing Assistant

**Report Highlights:**

The supermarket industry is constantly looking for new products to
satisfy upscale consumer demand. According to interviews with
supermarkets and suppliers, among the best prospects are snack foods,
including high energy nutritional snacks for sports, fruit juices, cat
and dog food, sweeteners, dietetic snacks and candies and cereals.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Santiago \[CI1\]

\[CI\]

Table of Contents

[**Disclaimer 3**](#disclaimer)

[Section I. Market Summary 3](#section-i.-market-summary)

[Retail Food Sales 4](#retail-food-sales)

[Imports and Local Production 5](#imports-and-local-production)

[Growth 6](#growth)

[Main Sub Sectors 7](#main-sub-sectors)

[Supermarkets & Hypermarkets 7](#supermarkets-hypermarkets)

[Convenience Stores 9](#convenience-stores)

[Gas Marts 10](#gas-marts)

[Traditional Markets 10](#traditional-markets)

[Trends in Distribution Channels 11](#trends-in-distribution-channels)

[Other Trends 12](#other-trends)

[Sector Strengths and Weaknesses 12](#sector-strengths-and-weaknesses)

[Section II. Road Map for Market Entry
13](#section-ii.-road-map-for-market-entry)

[Entry Strategy 13](#entry-strategy)

[Market Structure 14](#market-structure)

[A. SUPERMARKETS & HYPER MARKETS 16](#a.-supermarkets-hyper-markets)

[Company Profiles 16](#company-profiles)

[B. CONVENIENCE STORES & GAS MARTS 19](#b.-convenience-stores-gas-marts)

[Company Profiles 19](#company-profiles-1)

[C. TRADITIONAL MARKETS 19](#c.-traditional-markets)

[Section III. Competition 20](#section-iii.-competition)

[Section IV. Best Product Prospects
22](#section-iv.-best-product-prospects)

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

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

[Category C: Products Not Present in Significant Quantities
25](#category-c-products-not-present-in-significant-quantities)

[Section V. Post Contact and Further Information
26](#section-v.-post-contact-and-further-information)

# Disclaimer

This report was prepared under the supervision of the Office of
Agricultural Affairs of the USDA/Foreign Agricultural Service in
Santiago, Chile for U.S. exporters of domestic food and agricultural
products. While every possible care was taken in the preparation of this
report, information provided may not be completely accurate either
because policies have changed since its preparation, or because clear
and consistent information about these policies was not available. It is
highly recommended that U.S. exporters verify the full set of imports
requirements with their foreign customers, who are normally best
equipped to research such matters with local authorities, before any
goods are shipped. FINAL INPORT APPROVAL OF ANY PRODUCT IS SUBJECT TO
THE IMPORTING COUNTRY'S RULES AND REGULATIONS AS INTERPRETED BY BORDER
OFFICIALS AT THE TIME OF PRODUCT ENTRY.

# Section I. Market Summary

-   During 2006, retail sales represented 21.2% of the national GDP,
    totaling US\$ 33.9 billion, with 46% of this, or US\$15.6 billion,
    comprised of retail food.

-   In 2007 the overall retail sector is expected to grow 3.2% to US\$
    35.0 billion, following a very strong 18.4% growth in 2006. Growth
    in the retail food sector in 2007 is expected at 1.9%, reaching
    US\$15.9 billion.

-   The supermarket sector represents 26% of the total sales of the
    retail market.

[Retail Sales Distribution]{.underline}

Source: Colliers International 2006

-   Favorable credit conditions have contributed to an improved retail
    demand over the last two years.

-   In 2006 and 2007 the strong Chilean peso relative to the US dollar
    has increased demand for imported goods.

-   Santiago, the capital city, is home to 40 percent of the population
    and the great majority of the retail food sector companies that
    purchase imported food products.

[Retail Sales Growth]{.underline}

![](media/image2.wmf){width="3.751388888888889in"
height="1.9868055555555555in"}

Source: Colliers International Market Report 2006

-   Chileans spend on average around 20% of their household income on
    food, drinks and tobacco. In per capita terms, Chile is the second
    biggest consumer of bread in the world (98 kilos per year) after
    Germany, the 3rd consumer of tea (800 grs), and an important
    consumer of pastas, rice, seafood, carbonated beverages and beer.

-   Supermarkets are the leading retail channel for food products.

-   65% of the total retail sector sales were in food and clothing.

### [Retail Food Sales]{.underline}

-   The retail food sector reached US\$15.6 billion during 2006.

Source: Fetchratings Retail Sector Report 2007

[Retail Food Sales (US\$ million)]{.underline}

  -------------- -------------- -------------- -------------- --------------
  **2003**       **2004**       **2005**       **2006**       **2007
                                                              (est.)**

  11,160         12,000         13,900         15,656         15,900
  -------------- -------------- -------------- -------------- --------------

### [Imports and Local Production]{.underline}

-   Chilean food production reached US\$16.1 billion during 2006,
    employing 17% of the country's total labor force.

[Chilean Industry Market Share 2006]{.underline}

Source: SOFOFA (Federation of Chilean Industry) and Central Bank

[Agriculture GDP Growth %]{.underline}

  ------------- ------------- ------------- ------------- -----------------
  **2003**      **2004**      **2005**      **2006**      **2007(est.)**

  6.0%          8.8%          5.7%          3.9%          2.5%
  ------------- ------------- ------------- ------------- -----------------

Source: Central Bank and National Agricultural Society (SNA)

> []{.mark}

[Food Exports US\$ million]{.underline}

  -------------- ------------- ------------- ------------- ----------------
  **2000-2003    **2004**      **2005**      **2006**      **2007 (est.)**
  (average)**                                              

  4,976          7,500         8,140         9,200         10,300
  -------------- ------------- ------------- ------------- ----------------

Source: The Seminarium Letter Magazine

[Food Imports US\$ million]{.underline}

  ------------- ------------- ------------- ------------- ------------------
  **2003**      **2004**      **2005**      **2006**      **2007 (1st
                                                          half)**

  1,128         1,500         1,700         1,957         663
  ------------- ------------- ------------- ------------- ------------------

Source: Chilealimentos statistics.

Note: Numbers include fruit and vegetable oils for cosmetics and
pharmaceutical preparations.

[Imports from the US US\$ million]{.underline}

  ------------- ------------- ------------- ------------- ------------------
  **2003**      **2004**      **2005**      **2006**      **2007 (1st
                                                          half)**

  149           150           147           271           91
  ------------- ------------- ------------- ------------- ------------------

Source: Chilealimentos statistics.

Note: Numbers include fruit and vegetable oils for cosmetics and
pharmaceutical preparations.

[]{.mark}

### [Growth]{.underline}

-   According to research by the Catholic University of Chile, it is
    estimated that by 2015 Chile's food exports would reach US\$17
    billion and imports US\$3 billion.

-   Future growth is expected in the agriculture industry resulting from
    Chile's economic and political stability, and a series of President
    Michelle Bachelet's initiatives in this sector. The President's
    \"New Policy for Family Farming\", announced in August, 2006,
    includes a series of projects that will increase the overall level
    of agricultural production. Additionally, the President announced
    the formation of the \"Chile: World-Class Food Producer by 2010\"
    Advisory Council in October, 2006. One of the Advisory Council's
    goals is to make Chile into a world-class food exporter, something
    it has already achieved in several sectors. Both of these
    initiatives are promising for Chilean food producers.

[Food Retail Growth (%) over the past five years]{.underline}

![](media/image3.wmf){width="5.125in" height="2.71875in"}

Source: Estimations based on information from Chilealimentos, AC Nielsen
and interviews.

[Consumer's Preferred Stores for Purchasing Food]{.underline}

![](media/image4.wmf){width="5.125in" height="2.71875in"}

Source: AC Nielsen 2007

### [Main Sub Sectors]{.underline}

Source: AC Nielsen 2007

### Supermarkets & Hypermarkets

  --------------------- ------------ ------------ ------------ ----------
  [Annual Retail and                                           
  Supermarkets                                                 
  Sales]{.underline}                                           

  ** **                 **2004**     **2005**     **2006**     **2007
                                                               (e)**

  **Annual Sales Retail 22.9         27.1         33.9         34.0
  (US\$ billion)**                                             

  **Supermarkets Sales  5.7          6.8          8.1          8.7
  (US\$ billion)**                                             

  **Supermarkets:       682          696          731          780
  Number of sales                                              
  points**                                                     

  Source: July 2007,                                           
  ASACH (Chilean                                               
  Supermarket                                                  
  Association).                                                
  --------------------- ------------ ------------ ------------ ----------

-   According to Fetchrating Retail report, the supermarket and
    hypermarket sector concentrates 1% of all food stores and represent
    60% of the sector's sales.

-   According to the INE (National Statistics Institute), as of December
    2006 there were 731 supermarkets, and this number is expected to
    reach 780 by the end of 2007.

-   Supermarket sales are growing over 7% per year since 2004 and are
    expected to grow another 7% in 2007.

> ![](media/image5.wmf){width="5.125in" height="2.71875in"}

Source: INE

-   Supermarket sales reached US\$8.1 billion in 2006, with 47% in the
    Santiago Metropolitan Region.

> Source: Fetchratings Retail Report 2006

### [Convenience Stores]{.underline}

-   The number of convenience stores and gas marts has grown
    consistently over the past decade, representing in 2007
    approximately 20% of the retail food sector sales.

-   Convenience stores, are small (3,300-10,700 sq. ft), they are
    typically located in high-traffic residential and commercial zones
    and have a small quantity of select items, targeting a consumer with
    little time in need of specific products. Snacks, beverages, candy,
    milk, bread, and fruit are common items found in stores in this
    segment.

[]{.mark}

-   According to [El Diario Financiero]{.underline} newspaper, while
    private labels in convenience stores and gas marts in the U.S. and
    Europe can represent up to 80% of total sales, in Chile private
    labels in these store formats only represent slightly higher than
    10% of sales.

[]{.mark}

Source: AC Nielsen 2006

[]{.mark}

[]{.mark}

### [Gas Marts]{.underline}

[]{.mark}

-   Gas marts have been present in Chile since the mid-1990s, when some
    of the larger multinational chains introduced them to the market.

-   They tend to offer a similar assortment of products than the more
    traditional convenience stores, but some have begun to incorporate
    restaurants into their format. Boasting profit margins of eight to
    ten percent, the food products often generate as much or more income
    than the sale of fuel.

-   Copec, Esso, Shell, and Repsol YPF are the major gasoline
    distributors and stations.

Source: [El Diario Financiero]{.underline} newspaper

### [Traditional Markets]{.underline}

-   Although this category represents 83% of all retail food channel
    stores, its share of sales is only 20 percent.

[]{.mark}

-   These outlets tend to offer an array of items and profit from their
    convenient locations. The majority of these outlets have minimal
    imported food stock.

[]{.mark}

[]{.mark}

Source: AC Nielsen

### [Trends in Distribution Channels]{.underline}

-   According to a Pyramid Research 2006 Food Report, easy-to-prepare
    foods, fast foods, snacks, diet and light foods are increasing in
    importance. Organic foods are being adopted at a much slower rate
    but their increasing presence in the market is also marking a trend.

-   The market continues to consolidate through mergers, leaving a wide
    gap in size and capacity between the leading food retailers and the
    universe of small ones.

-   Artesian production of bakery products still dominates Chile's
    packaged food market, with 80% of total bakery sales concentrated in
    traditional bakeries. Of this 80%, approximately 43% is sold through
    bakery distribution companies and 37% in stores. The other 20% is
    sold at supermarket chains.

[]{.mark}

-   According to Colliers International 2006 Retail Market Report,
    changes in the habits and behavior of consumers have pushed the
    modernization and transformation of the retail market showing an
    important capacity to adjust to market demands.

-   With the trend over the last three years leaning towards offering as
    many products and services as possible in the same location, there
    is an increase in strip centers or power centers and neighborhood
    commercial centers, located in strategic corners with ample parking
    and easy street access.

[]{.mark}

-   Convenience stores have experienced a transformation: previously
    they were based on the minimarket concept, but now most of them are
    associated with important pharmacy chains to expand their target
    group. This is the case of Big John, which associated with Farmacias
    Ahumada, Ok Market with Salcobrand, and D&S is developing its new
    Ekono format.

[]{.mark}

[Number and type of food and beverages retail outlets]{.underline}

[]{.mark}

  ---------------------------------------- ------------- ------------- --------------
  **Arica to Puerto Montt and Punta        **2005**      **2006**      **%
  Arenas.**                                                            Variation.**

  Supermarkets Total (Hyper+Supermarkets)  649           689           6.2

  Hypermarkets                             47            52            10.6

  Supermarkets                             602           637           5.8

  Gas Marts and Convenience Stores         633           631           -0.3

  Traditional; Liquor Stores; Kiosks       92,264        94,958        2.9

  Restaurants; Bars, Soda Fountains (small 15,132        15,453        2.1
  restaurants)                                                         

  Pharmacies                               1,662         1,784         7.3

  **Total**                                **110,340**   **113,515**   **2.9**
  ---------------------------------------- ------------- ------------- --------------

Source: A.C. Nielsen 2006

### 

### 

### [Other Trends]{.underline}

-   Certain processed foods continue to see strong growth as more people
    join the work force and eat out of home. Especially promising
    products are convenience and fast foods, out-of-home foods (snacks,
    etc., which are consumed more by lower-income households and young
    consumers), and health and light foods.

[]{.mark}

-   According to Falabella, on-line sales were initially seen as a
    threat to their standard store formats. However, this did not
    happen. Looking forward, Andres Belfus, the vice president of
    Ripley, a department store chain, says that there are many
    challenges for the sector such as the standardization of clothing
    sizes to make it possible to be purchased on line, improvement of
    the logistics process and maintaining customer loyalty.

-   According to Adimark's director, Roberto Méndez, in 1995, 35% of the
    people in Santiago bought in D&S or Cencosud supermarkets, while
    today 84% do. This has been one of the sector developments together
    with retail store credit cards, which now reach 23 million in issued
    cards.

### Sector Strengths and Weaknesses

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

  Rising consumer spending and  Price sensitivity is becoming stronger
  adoption of foreign food      because of the rise in local prices in
  types favor new types of      food and other products. The Central Bank
  inputs.                       expects 5.5% inflation for 2007, the
                                highest in 10 years.

  Chile has the highest GDP per Domestic fresh fruit and vegetable
  capita in South America       markets are abundant

  U.S. food inputs are known    Quality of food ingredients is said to
  for their quality. They meet  have become very similar from the U.S.,
  respected FDA & USDA          Europe, Asia, etc., and many European
  standards. Health concerns    inputs meet U.S., European and Japanese
  are low.                      standards.

  The U.S. is a strong,         U.S. food input producers sometimes are
  traditional trading partner   not as aggressive in following up sales
  and its products are welcome. leads as European or other suppliers.

  The U.S.-Chile Free Trade     Prices for U.S. products may still be
  Agreement, which went into    higher than local products or imports
  force on January 1, 2004, is  from nearby countries. FOB prices for
  making U.S. products more     U.S. inputs, even before adding freight,
  competitive.                  insurance and duties, often are 10-14%
                                higher, or more, than local prices for
                                equivalent quality. This remains true
                                even after the import tariffs for U.S.
                                products have been reduced or eliminated.

  The relatively weak dollar    The Argentine and Brazilian recessions
  compared to the Chilean peso  and currency devaluations preceded the
  will make imports from the    U.S. dollar's depreciation, so their
  U.S. more competitive.        products displaced U.S. raw materials,
                                and U.S. products will have a hard time
                                recovering their market position.

  Certain companies have        Purchase decisions are often global and
  corporate requirements to     are influenced by headquarters, not just
  purchase U.S. inputs, for     local management.
  example Nestlé for products   
  re-exported to the U.S.       

  Shipping from the U.S. is     U.S. ingredients are often more expensive
  cheaper and quicker than from than local equivalents. The FOB cost is
  Europe.                       sometimes 10% or higher.

  Annual GDP growth has         Artisanal products have a significant
  increased at a faster rate    share of the market; Chileans tend to
  than population growth (6     prefer fresh foods, which are perceived
  percent versus 1.2 percent    as higher quality.
  over the past decade),        
  reflecting the country's      
  strong economy; GDP is        
  expected to grow 5.5% in      
  2007.                         

  Population of 16 million is   Many local consumers are becoming more
  very centralized, with over   sophisticated, seeking out brand names
  40 percent living within 100  they recognize as capable of supporting
  miles of the capital's        their needs.
  metropolitan region.          

  Chile has one of the highest  The typical Chilean consumer is not
  percentage of non-traditional immediately attracted to foreign
  (i.e. non "mom & pop") store  products, as local producers typically
  sales in Latin America, which provide well-priced quality options.
  allows suppliers to target    
  large retail chains for       
  larger volume sales.          

  The Economist Intelligence    Abundant agricultural resources support
  Unit reports that foreign     exports whose total doubles that of
  companies may conduct         imports, while only 15-20% of products
  business in Chile on the same sold in supermarkets are imported.
  basis as local companies,     
  while they enjoy guaranteed   
  access to foreign exchange    
  for repatriation of capital   
  and profits.                  
  ----------------------------- -----------------------------------------

# Section II. Road Map for Market Entry

### 

### [Entry Strategy]{.underline}

-   Fifty five percent of Chilean consumers value innovation when
    determining what to purchase. U.S. products typically have a
    comparative advantage in this area, as many new functions and market
    segments (e.g., light or diet items) originate in North America.

-   An interesting example of successful export branding can be seen
    with the Safeway private label brand recently introduced by Lider
    supermarkets (D&S). Lider now imports this brand to replace the
    President's Choice (Canada) line of products. The Safeway branded
    products range from brownie mix to dishwashing detergent, and the
    products are clustered together on an island display in many stores.
    The items command premium prices, and the typical Chilean consumer
    perceives them to be somewhat exclusive and of high quality.

-   Large corporations increasingly prefer to import directly from
    foreign suppliers, while smaller processors are often not able to
    purchase whole containers or prefer that a distributor manages
    logistics and their inventory. Eventually, large sales volumes would
    justify establishing a local subsidiary to guarantee customer
    service and quality levels.

-   Sales in Chile are made based on a relationship of personal trust,
    and personally visiting the country and demonstrating products to
    potential distributors and end-users is fundamental for generating
    solid, durable business relationships.

-   Market access is open to all products from all countries. Except for
    products covered by a Free Trade Agreement, all products pay a
    standard, across the board 6% tariff. All edible products must be
    approved by the Chilean health authorities and receive a
    registration number and open sales permit before being put on the
    market.

-   U.S. foods products are sought after and respected for their
    dependably high quality levels, but prices are generally
    uncompetitive. To compete in Chile, U.S. producers need to focus on
    profit margins, which are very often significantly lower in Chile
    than in other countries that are not as open to trade. Specialty
    products and chemicals have a better chance of success than more
    basic inputs, which are often sourced locally.

-   Distribution trade is very receptive to U.S. products as they are a
    guarantee of quality and good packaging and therefore low losses. As
    soon as possible, buyers will try to buy direct, without a local
    middleman, because they cannot pass those margins on to the product
    price and remain competitive.

-   U.S. exporters are considered to be less flexible or agile than
    others in their ability and willingness to meet market requirements.
    Prices are very important in this aspect as is a more active
    marketing style than U.S. producers are used to at home, and US
    minimum order quantities are often too high for Chilean importers,
    especially during the initial stages of market penetration. Local
    distributors also expect the manufacturer to share in marketing and
    promotion efforts and expenses.

**What You Must Do to Successfully Enter and Develop the Chilean
Market**

The key market success drivers are a strong proactive attitude,
long-term commitment to the market, conscientious follow-through of the
exporting effort; marketing and promotion; adapting to competitive local
price points and margins; customer service, flexibility with minimum
order quantities, and terms of payment. The Chilean market for
ingredients imported from the U.S. is small compared to sales in the
U.S., even at a State level. High U.S. market shares are linked mainly
to a product's uniqueness (e.g. peanut butter, baked beans, etc.) or
special characteristics (above-average quality or quality consistency
especially with respect to human health, service, international
corporate headquarters requirements, quick response and delivery
capabilities, etc.). Low U.S. market share is generally due to the high
impact of freight costs on commodity products, the acceptably high
quality of products offered at much more attractive prices by other
regional competitors, or the inability to adapt product and packaging to
local standards.

The strongest recommendation would be to be as aggressive or committed
as European competitors in their marketing, to make an effort to develop
and nurture strong relationships with good distributors and clients so
that the U.S. supplier becomes a trusted business partner, and then to
be willing to compete by limiting profit margins to the degree necessary
and possible while maintaining quality and service in order to compete,
at least in the initial stages of market penetration.

The relationships of trust and open communication with potential
distributors and especially with clients will be the key to being given
the chance to learn about what products are required and which ones
present the best market potential opportunities for that particular
supplier's ingredients.

### [Market Structure]{.underline}

-   Food sales generally go mostly to supermarkets, followed by
    traditional retailers and to a small extent to institutions (HRI
    food services).

-   Institutional sales are often handled as a separate business by the
    food companies.

-   Smaller neighborhood stores have been continuously decreasing in
    number as they cannot match the efficiencies and location advantages
    of market-leading hypermarkets. The supermarket sector is dominated
    by a few chains.

Generally, if sales volumes are not too high, direct imports will not be
of interest to Chilean buyers as the costs and effort required to have
an edible product approved are disproportionately high. In this case, it
is more reasonable to have a local representative/distributor to handle
the import process, health approval and open selling permit, marketing
and promotion, selling and stocking.

As food processors seek to rationalize their costs, they are leaning
more towards direct purchases and away from middlemen with time. As the
big processors get bigger, they reach economies of scale by negotiating
direct with the supplier, even on a global scale. Logistics companies
have become a strong market player in the past five years, but they work
with finished products and are not involved in raw materials. Thus,
unlike bigger processors, smaller buyers still depend on distributors to
manage their stock.

Jumbo & Santa Isabel Distribution Channels (Cencosud)

+--------------------------+------------+-----------------------------+
| **Main Suppliers**       |            |                             |
+--------------------------+------------+-----------------------------+
| Nestle                   |            |                             |
+--------------------------+------------+-----------------------------+
| Unilever                 |            |                             |
+--------------------------+------------+-----------------------------+
| Agrosuper                |            | **Communication Channel     |
|                          |            | B2B**                       |
+--------------------------+------------+-----------------------------+
| Comercial Santa Elena    |            |                             |
+--------------------------+------------+-----------------------------+
| Watts                    |            |                             |
+--------------------------+------------+-----------------------------+
| CMPC Tissue              |            |                             |
+--------------------------+------------+-----------------------------+
| Carozzi                  |            |                             |
+--------------------------+------------+-----------------------------+
| Procter and Gamble       |            |                             |
+--------------------------+------------+-----------------------------+
| Embotelladora Andina     |            | **Distribution Centers**    |
+--------------------------+------------+-----------------------------+
|                          |            | Noviciado                   |
+--------------------------+------------+-----------------------------+
|                          |            | Maipú                       |
+--------------------------+------------+-----------------------------+
| **Transport**            |            | C.D. Economax               |
+--------------------------+------------+-----------------------------+
|                          |            |                             |
+--------------------------+------------+-----------------------------+
|   ---------------------  |            |                             |
|                          |            |                             |
|   ---------------------  |            |                             |
+--------------------------+------------+-----------------------------+
|                          |            |                             |
+--------------------------+------------+-----------------------------+
|                          |            | **Small Suppliers**         |
+--------------------------+------------+-----------------------------+
| **Supermarkets**         |            | Directly to supermarkets    |
+--------------------------+------------+-----------------------------+
| Jumbo                    |            |                             |
+--------------------------+------------+-----------------------------+
| Santa Isabel             |            |                             |
+--------------------------+------------+-----------------------------+
|                          |            |                             |
+--------------------------+------------+-----------------------------+
| **Clients visit          |            | **Phone sales**             |
| supermarkets**           |            |                             |
+--------------------------+------------+-----------------------------+
|   ---------------------  |            |                             |
|                          |            |                             |
|                          |            |                             |
|   ---------------------  |            |                             |
+--------------------------+------------+-----------------------------+
|                          |            |                             |
+--------------------------+------------+-----------------------------+
|                          | *          |                             |
|                          | *Clients** |                             |
+--------------------------+------------+-----------------------------+
|                          |            |                             |
+--------------------------+------------+-----------------------------+

Source: National Federation of Supermarket Workers (Federación Nacional
de Trabajadores de Supermercados)

## A. SUPERMARKETS & HYPER MARKETS

[Supermarket & Hypermarket Market Share 2006]{.underline}

Source: National Federation of Supermarket Workers

### [Company Profiles]{.underline}

+---+----------+--------+-----------+---------+-------------+---------+
| * |          | *      | **2006    | *       | *           | **Pur   |
| * |          | *Owner | Sales**   | *Number | *Location** | chasing |
| R |          | ship** |           | of      |             | Agent   |
| e |          |        | **(in     | Ou      |             | Type**  |
| t |          |        | U.S.\$)** | tlets** |             |         |
| a |          |        |           |         |             |         |
| i |          |        |           |         |             |         |
| l |          |        |           |         |             |         |
| e |          |        |           |         |             |         |
| r |          |        |           |         |             |         |
| & |          |        |           |         |             |         |
| T |          |        |           |         |             |         |
| y |          |        |           |         |             |         |
| p |          |        |           |         |             |         |
| e |          |        |           |         |             |         |
| * |          |        |           |         |             |         |
| * |          |        |           |         |             |         |
+---+----------+--------+-----------+---------+-------------+---------+
| C |          | Local  | \$2.2     | 141     | Nationwide  | Direct, |
| e |          |        | billion   |         |             |         |
| n |          |        |           |         |             | Thir    |
| c |          |        |           |         |             | d-Party |
| o |          |        |           |         |             | Distr   |
| s |          |        |           |         |             | ibutor, |
| u |          |        |           |         |             | Agent   |
| d |          |        |           |         |             |         |
| S |          |        |           |         |             |         |
| u |          |        |           |         |             |         |
| p |          |        |           |         |             |         |
| e |          |        |           |         |             |         |
| r |          |        |           |         |             |         |
| m |          |        |           |         |             |         |
| a |          |        |           |         |             |         |
| r |          |        |           |         |             |         |
| k |          |        |           |         |             |         |
| e |          |        |           |         |             |         |
| t |          |        |           |         |             |         |
| s |          |        |           |         |             |         |
+---+----------+--------+-----------+---------+-------------+---------+
|   | Jumbo    |        | \$1.1     | 21      |             |         |
|   |          |        | billion   |         |             |         |
+---+----------+--------+-----------+---------+-------------+---------+
|   | Santa    |        | \$1.1     | 120     | Nationwide  |         |
|   | Isabel   |        | billion   |         |             |         |
+---+----------+--------+-----------+---------+-------------+---------+
| D |          |        | \$2.6     | 103     | Nationwide  |         |
| & |          |        | billion   |         |             |         |
| S |          |        |           |         |             |         |
| : |          |        |           |         |             |         |
| L |          |        |           |         |             |         |
| i |          |        |           |         |             |         |
| d |          |        |           |         |             |         |
| e |          |        |           |         |             |         |
| r |          |        |           |         |             |         |
| s |          |        |           |         |             |         |
| t |          |        |           |         |             |         |
| o |          |        |           |         |             |         |
| r |          |        |           |         |             |         |
| e |          |        |           |         |             |         |
| s |          |        |           |         |             |         |
+---+----------+--------+-----------+---------+-------------+---------+
| T |          |        | \$404.3   | 19      | Nationwide  |         |
| o |          |        | million   |         |             |         |
| t |          |        |           |         |             |         |
| t |          |        |           |         |             |         |
| u |          |        |           |         |             |         |
| s |          |        |           |         |             |         |
| S |          |        |           |         |             |         |
| u |          |        |           |         |             |         |
| p |          |        |           |         |             |         |
| e |          |        |           |         |             |         |
| r |          |        |           |         |             |         |
| m |          |        |           |         |             |         |
| a |          |        |           |         |             |         |
| r |          |        |           |         |             |         |
| k |          |        |           |         |             |         |
| e |          |        |           |         |             |         |
| t |          |        |           |         |             |         |
| s |          |        |           |         |             |         |
| . |          |        |           |         |             |         |
+---+----------+--------+-----------+---------+-------------+---------+

Source: Estimations with Asach, Cencosud and D&S data.

-   The top two mass grocery retailers (MGR) in Chile are D&S and
    Cencosud. Both remain focused in foreign expansion and strategies to
    increase profit margins, most of their sales are food and drink
    items.

-   Together they have 66% of the supermarket share.

**[Distribución y Servicio (D&S)]{.underline}**

Chile's largest supermarket chain has 34 %of the market. The company
operates approximately 59 hypermarkets and 44 supermarkets.

[]{.mark}

In 2003 D&S merged Almac and Ekono stores under its flagship Líder
banner, and in 2004 bought seven hypermarkets from French retail giant
Carrefour, which was the latest foreign retailer to fall casualty to the
aggressive Chilean retail environment.

[]{.mark}

In 2006 and 2007, D&S opened 18 new stores-- 3 Lider hypermarkets stores
and 15 Lider express stores-- which represented a 5.4% expansion of the
total sales areas. Additionally, they re-inaugurated Ekono discount
stores in January 2007, and 13 stores were operating by March 31^st^,
2007.

D&S had strong results in the final quarter of 2006, and plans to expand
outside Chile. In 2007, D&S merged with the department store and home
improvement retailer, Falabella, which would give the expansion program
greater cash resources.

To improve upon the low profit margins offered by most food and drink
items, D&S is moving further into sales of non-food lines, particularly
household goods, and financial services. Its new alliance with the Banco
del Estado, Chile's third largest bank in terms of loans, will offer a
range of financial services products across its store network. Its
Presto credit card already accounts for almost 20% of total sales, and
is beginning to make a significant contribution to overall profits.

The trend is in line with the rest of the retail industry in Latin
America - with financial services operations accounting for an
increasing share of revenues.

During the first quarter of 2007 D&S's profits increased 68%.

**[Cencosud]{.underline}:**

Cencosud is one of the most important Chilean retail holdings, with
hypermarkets, supermarkets, home improvement stores, shopping centers,
department stores, credit cards, and insurances business.

Cencosud has two supermarket/hypermarket brands, Jumbo and Santa Isabel,
together they have 32% market share.

Jumbo, Chile's third largest supermarket chain in number of locations
(second in sales) has 21 stores in Chile.

Jumbo's strategy is focused on the quality of its products and services.
It is the first supermarket world wide in implementing the international
norms (BRC, IFS) and HACCP (Hazard Analysis and Critical Control
Points).

In 2006 Jumbo received the Chilean pro-quality prize for the third time,
awarded by Adimark (Market Research Company), Adolfo Ibañez University,
and the Quality and Productivity National Association.

AMA (American Marketing Association) labeled Jumbo as one of the three
most important brands of the year.

**[Santa Isabel:]{.underline}**

Santa Isabel has the second largest number of supermarkets in Chile
(ranking third in sales), with 120 stores in the country, offering a
wide variety of grocery products as well as its own private-label Cinco
Continentes brand.

Santa Isabel's strategy focuses on offering the lowest prices.

**Cencosud´s** (already active in Argentina) attempt to enter a third
market - Colombia -- probably via the purchase of the Olimpica
supermarket chain. Additionally, Cencosud is planning to enter Peru and
Mexico retail markets.

**[Tottus]{.underline}**

This supermarket is owned by Falabella department store, and has a 7%
market share.

Tottus has been present in the supermarket sector since 2004, and has
grown with Falabella's purchase of the San Francisco supermarket chain.

D&S and Falabella are in the process of merging both companies, but
Falabella is being forced by the government anti-monopoly authority to
sell their supermarkets (Tottus and San Francisco) to a third party.

[Consumer's Preferred Stores for Purchasing Food]{.underline}

![](media/image6.wmf){width="3.6993055555555556in"
height="2.8965277777777776in"}

Source: AC Nielsen.

[]{.mark}

## []{.mark}

## 

## 

## B. CONVENIENCE STORES & GAS MARTS

### [Company Profiles]{.underline}

  --------------- --------------- --------------- ----------- ----------------- --------------
  **Retailer Name **Ownership**   **Sales         **No. of    **Locations       **Purchasing
  & Market Type**                 (US\$)/year**   Outlets**   (city/region)**   Agent Type**
                                  **2006**                                      

  Big John        Local           N/A             23          Santiago          Direct,
                                                                                Third-Party
                                                                                Distributor,
                                                                                Agent.

  OK Market       Local           N/A             14          Santiago and      Direct,
                                                              regions V and X   Third-Party
                                                                                Distributor,
                                                                                Agent.

  Ekono           Local           N/A             10          Santiago          Direct,
                                                                                Third-Party
                                                                                Distributor,
                                                                                Agent.

  Supermercados   Local           N/A             16          Santiago and      Direct,
  Puerto Cristo                                               regions v and VI  Third-Party
                                                                                Distributor,
                                                                                Agent.
  --------------- --------------- --------------- ----------- ----------------- --------------

-   The biggest convenience stores chains are Big John and Ok Market,
    each one associated with a national pharmacy chain: Big John with
    Farmacias Ahumada and Ok Market with Salco Brand.

[]{.mark}

-   In 2007, D&S entered the convenience store market with their own
    store chain, under the Ekono brand, which has an average floor space
    of 3,700 sq. ft.

-   These stores are focused in low prices and stocks of very specific
    products. This format is low cost, because the company does not
    spend in marketing, and the displays in the shelves are in boxes. By
    the end of 2007, D&S estimates to have 30 stores in the Metropolitan
    Region.

    -   Supermercados Puerto Cristo's growth strategy is based on the
        incorporation of their stores in big commercial centers. In 2007
        they built their own commercial center in Santiago.

[]{.mark}

-   OK Market is owned by Salcobrand. They have long hours and an
    important variety of products (bread, sodas, dairy, meet,
    vegetables, fruits, cheese, confectionaries, cookies, wine, liquors,
    cleaning products, etc.). Liquors sales represent 19% of total
    revenue.

> []{.mark}

-   Big John, alter they associated with Farmacias Ahumadas, are
    planning on building four new strip centers.

[]{.mark}

[]{.mark}

## C. TRADITIONAL MARKETS

Redmarket is the new association of traditional markets in Chile. They
represent 2,400 small businesses with an estimated market of US\$10.2
billion.

(<http://www.redmarket.cl/redmarket/imagenes/noticias/financiero.JPG>)

Redmarket indicates that the sector will invest US\$ 6 million by the
end of 2007 in construction, maintenance and in the installation of
cashier machines and computer systems.

Although this category represents 98 percent of all retail food channel
stores, its share of sales is only 20 percent. These outlets tend to
carry an array of items and profit from their convenient locations. The
majority of these outlets carry minimal imported food stock.

## 

# Section III. Competition

Chile has a longstanding commitment to trade liberalization and has
signed free trade agreements with the European Union, Mexico, Canada,
Korea, EFTA, Central America, Mercosur, Singapore/New Zealand, Ecuador,
and the U.S. among others.

Chile ratified a Free Trade Agreement (FTA) with the U.S. which came
into effect on January 1^st^, 2004:

-   The FTA immediately eliminated tariffs on almost 90 percent of U.S.
    products imported into Chile and more than 95 percent of Chilean
    exports to the United States. Tariffs on all products will be
    eliminated within 12 years.

-   Bilateral trade in all goods grew by 33 percent the same year,
    reaching almost \$8 billion, while U.S. exports of consumer-oriented
    food products to Chile grew by 54 percent.

-   Elimination of Chile's 6 percent general tariff has made U.S.
    products significantly more competitive, as they had been losing
    ground to other countries with which Chile already had preferential
    trade agreements (mainly Argentina, Brazil, Canada, and Mexico).

The agricultural sector has stood to benefit substantially from the FTA:

-   Approximately 75 percent of both U.S. and Chilean farm goods will be
    tariff-free by 2008, with all tariffs and quotas phased out within
    12 years.

-   U.S. access to this market is competitive with Canada and the
    European Union, which both already had FTAs with Chile.

-   Next year (2008), farmers will gain duty-free access for these
    important U.S. products to the Chilean market:

    -   Pork & pork products

    -   Beef & beef products

    -   Soybeans & soybean meal

    -   Durum wheat

    -   Feed grains

    -   Potatoes

    -   Processed food (e.g., French fries, pasta, distilled spirits &
        breakfast cereals)

Although the FTA allows immediate duty-free entry into Chile for the
majority of U.S. goods, Chile's two free trade zones still offer some
advantages: (Region I) Free Zone of Iquique in the north and (Region
XII) Free Zone of Punta Arenas. Modern facilities for packaging,
manufacturing, and exporting exist in each zone, and the latter has a
free port. Imports entering and remaining in the Free Zones only pay
value-added tax (VAT) when brought into Chile. The extreme locations of
each zone (north and south) diminish their effectiveness as a source of
distribution to the capital.

U.S. and Chile Tariff Schedules for all Harmonized Tariff System customs
codes can be found at
[www.ustr.gov/new/fta/Chile/text/](http://www.ustr.gov/new/fta/Chile/text/)
, "Section 3. National Treatment and Market Access for Goods".

+-----------------+---------------+-------------------+---------------+
| **Product       | **Major       | **Strengths of    | **Advantages  |
| Category 2006** | Supply        | Key Supply        | and           |
|                 | Sources**     | Countries**       | Disadvantages |
|                 |               |                   | of Local      |
|                 |               |                   | Suppliers**   |
+-----------------+---------------+-------------------+---------------+
|                 |               |                   |               |
|                 |               |                   |               |
| **Dairy**       | 1\. Argentina | Argentina is      | Local         |
|                 | -- 56%        | price             | companies are |
|                 |               | competitive,      | strong in     |
|                 | 2\. New       | geographically    | liquid milk,  |
| Net imports:    | Zealand --    | close and has     | ice cream,    |
| 42,218 tons     | 13%           | developed a       | yogurt,       |
|                 |               | long-standing     | cultured milk |
|                 | 3\. Uruguay   | reputation in the | drinks and    |
|                 | -- 9%         | market.           | sweetened     |
| US\$ 69.1       |               |                   | condensed     |
| million (CIF)   |               | New Zealand is    | milk. They    |
|                 |               | strong in milk    | are all very  |
|                 | USA -- fourth | powder (infant    | strong        |
|                 | supplier (7%  | and non infant)   | companies     |
|                 | share)        | and butter.       | although      |
|                 |               |                   | affected by   |
|                 |               | Uruguay is strong | rising        |
|                 |               | in milk powders   | production    |
|                 |               | and butter. Its   | costs.        |
|                 |               | price is          |               |
|                 |               | competitive and   |               |
|                 |               | it is             |               |
|                 |               | geographically    |               |
|                 |               | close.            |               |
+-----------------+---------------+-------------------+---------------+
|                 |               |                   |               |
|                 |               |                   |               |
| **Beverages**   | 1\. Argentina | Argentina         | Rum           |
|                 | -- 30%        | dominates the     | consumption   |
|                 |               | market with its   | in Chile is   |
|                 |               | pure alcohol,     | growing.      |
| Net imports:    |               | beer, and wine    | Imports from  |
| 69,363 tons     | 2\. United    | products.         | the U.S. are  |
|                 | Kingdom --    |                   | mostly beer   |
|                 | 13%           | The UK is the     | and juice,    |
|                 |               | main supplier of  | which have    |
| US\$S 63.2      |               | whisky and main   | strong        |
| million (CIF)   |               | foreign tea       | competition   |
|                 | 3\. Mexico -- | supplier,         | from local    |
|                 | 6%            | products very     | suppliers.    |
|                 |               | important in the  | Nevertheless, |
|                 | USA -- Minor  | Chilean market.   | there is a    |
|                 | supplier (5%  |                   | small         |
|                 | share)        | Mexico supplies   | quantity of   |
|                 | together with | beer, tequila and | rum imported  |
|                 | Holland and   | rum. Rum is       | from the U.S. |
|                 | Venezuela     | growing at a fast | that will     |
|                 |               | rate in the       | probably grow |
|                 |               | Chilean retail    | in the        |
|                 |               | stores.           | following     |
|                 |               |                   | years.        |
+-----------------+---------------+-------------------+---------------+
|  **Meet, fish   |               |                   |               |
| and poultry**   |               |                   |               |
|                 | 1\.           | Trade Agreements  |               |
|                 | Paraguay -    | and geographic    |               |
|                 | 33%           | closeness make    |               |
| Net imports:    |               | these three       |               |
| 97,129 tons     |               | countries strong  |               |
|                 |               | competition with  |               |
|                 | 2\. Uruguay   | the U.S.,         |               |
|                 | -- 29%        | especially in the |               |
| US\$S 289,3     |               | red meat market.  |               |
| million (CIF)   |               |                   |               |
|                 |               |                   |               |
|                 | 3\.           |                   |               |
|                 | Argentina -   |                   |               |
|                 | 28 %          |                   |               |
+-----------------+---------------+-------------------+---------------+

## 

## 

# Section IV. Best Product Prospects

## [Category A: Products Present in the Market That Have Good Sales Potential]{.underline}

Categories with the biggest growth. (2004, 2005, 2006)

-   Rum

-   Vodka

-   Cereal

-   Alfajor ( two biscuits join with chocolates)

-   Cat and Dog Food

-   Sweeteners

-   Mashed Potato Mix

-   Snacks

-   Water

-   Whisky

-   Fruit Juice

-   Sponge Cake

Source: AC Nielsen Homescan, of 87 products

Source: Nielsen Retail Index. (Homescan of 87 products).

+---------+-------+-------+-------+-------+----------+-------------+
| **      | **2   | *     | **    | **I   | **Key    | **Market    |
| Product | 006-M | *2006 | 5-Yr. | mport | Con      | Att         |
| Cat     | arket | Impo  | Avg.  | T     | straints | ractiveness |
| egory** | Size  | rts** | A     | ariff | Over     | for USA**   |
|         | (Volu |       | nnual | R     | Market   |             |
|         | me)** | **(   | I     | ate** | Devel    |             |
|         |       | \$)** | mport |       | opment** |             |
|         |       |       | Gro   |       |          |             |
|         |       |       | wth** |       |          |             |
+---------+-------+-------+-------+-------+----------+-------------+
|         |       |       |       | 0%    |          |             |
|         |       |       |       | after |          |             |
| **\     | 6     | US\   | 10%   | full  | Com      | Demand for  |
| *\*Beve | 9,363 | $63.2 | per   | impl  | petition | beverages   |
| rages** | tons  | mi    | year  | ement | from key | will        |
|         |       | llion |       | ation | est      | continue to |
|         |       |       |       | of    | ablished | rise as the |
|         |       |       |       | FTA\* | s        | Chilean     |
|         |       |       |       |       | uppliers | market is   |
|         |       |       |       |       | from     | demanding   |
|         |       |       |       |       | Ar       | new         |
|         |       |       |       |       | gentina, | products    |
|         |       |       |       |       | UK and   | and         |
|         |       |       |       |       | Mexico.  | flavors.    |
|         |       |       |       |       |          | This will   |
|         |       |       |       |       |          | provide     |
|         |       |       |       |       |          | op          |
|         |       |       |       |       |          | portunities |
|         |       |       |       |       |          | for U.S.    |
|         |       |       |       |       |          | suppliers.  |
+---------+-------+-------+-------+-------+----------+-------------+
|         |       |       |       | 0%    |          |             |
|         |       |       |       | after |          |             |
| **Ce    | 98    | US\$  | 50%   | full  | A        | U.S.        |
| reals** | 5,000 | 142.5 | in    | impl  | rgentina | imports     |
|         | tons  | mi    | av    | ement | and USA  | have        |
|         |       | llion | erage | ation | are the  | tripled in  |
|         |       |       |       | of    | main     | number in   |
|         |       |       |       | FTA\* | su       | the past    |
|         |       |       |       |       | ppliers. | two years   |
|         |       |       |       |       | This has |             |
|         |       |       |       |       | not      |             |
|         |       |       |       |       | changed  |             |
|         |       |       |       |       | over the |             |
|         |       |       |       |       | past     |             |
|         |       |       |       |       | years.   |             |
+---------+-------+-------+-------+-------+----------+-------------+
|         |       |       |       | 0%    |          |             |
|         |       |       |       | after |          |             |
| **Cat   | 21    | US\   | 12%   | full  | Retail   | This market |
| and Dog | 5.137 | $98.8 | Avg.  | impl  | market   | is likely   |
| Food**  | tons  | mi    |       | ement | for dog  | to become   |
|         |       | llion |       | ation | and cat  | more        |
|         |       |       |       | of    | food is  | dynamic as  |
|         |       |       |       | FTA\* | still a  | consumers   |
|         |       |       |       |       | niche.   | are         |
|         |       |       |       |       | The      | becoming    |
|         |       |       |       |       | product  | more aware  |
|         |       |       |       |       | demand   | of the      |
|         |       |       |       |       | is       | benefits of |
|         |       |       |       |       | growing  | pet food.   |
|         |       |       |       |       | steadily | Op          |
|         |       |       |       |       |          | portunities |
|         |       |       |       |       |          | will exist  |
|         |       |       |       |       |          | for         |
|         |       |       |       |       |          | development |
|         |       |       |       |       |          | by U.S. pet |
|         |       |       |       |       |          | food        |
|         |       |       |       |       |          | suppliers.  |
+---------+-------+-------+-------+-------+----------+-------------+

\*The 2004 FTA states that the majority of products will have no tariffs
within four years, while the rest will be fully phased out within 12
years.

**\*\*Alcoholic Beverages**

Although the FTA has eliminated the majority of tariffs on U.S. exports
to Chile, certain luxury goods incur additional taxes:

-   Beer, chichi, cider, wine, champagne: 15%

-   Grape pisco, whisky, aguardiente, liquorice wines: 27%

Source: Nielsen Retail Index. (From 87 Category Products)

## [Category B: Products Not Present in the Market Because They Face Significant Barriers]{.underline}

Although Chile has a general policy of free-market prices, there are
some exceptions. Major agricultural products such as wheat, sugar, and
certain products containing sugar fall under a price band system which
encourages local production. These price bands change with fluctuations
in international market prices and are typically announced mid-year to
help the local agricultural industry determine what to sow.

For more information about general labeling provisions, please visit the
following websites:

· Chilean Secretary of Health Ministry:
[www.asrm.cl/](http://www.asrm.cl/)

· U.S. Embassy, Santiago (Food & Agriculture section):
[www.usembassy.cl](http://www.usembassy.cl/)

## Category C: Products Not Present in Significant Quantities

  -------------- ----------- ------------- ---------------- --------------------- ----------------
  **Products Not                                                                  
  Present in                                                                      
  Significant                                                                     
  Quantities**                                                                    

  **Product      **Imports   **Estimated   **Import Tariff  **Key Constraints     **Market
  Category**     2006 \$**   Import Growth Rate**           Over Market           Attractiveness
                             for 2007**                     Development**         for U.S.**

  Health Food    N/A         N/A           0% after full    Significant           Good
  Products                                 implementation   investment in         opportunities in
                                           of FTA\*         marketing/promotion   small but
                                                            compared to size of   growing health
                                                            market                food segment;
                                                                                  U.S. products
                                                                                  have potential
                                                                                  because of
                                                                                  perceived
                                                                                  innovation

  Spices, sauces \$2.0       1%                             Local production of   Opportunities to
  and mayonnaise million                                    mayonnaise (including expand category
                                                            the local             reach; however,
                                                            manufacturing of      it would need a
                                                            foreign brands such   strong marketing
                                                            as Hellmann's and JB) strategy
                                                            is sufficient to meet 
                                                            demand. Spices and    
                                                            sauces are not very   
                                                            popular among Chilean 
                                                            consumers.            

  Ethnic Foods   N/A         N/A                            Small market size.    Growing interest
                                                                                  in alternative
                                                                                  foods because
                                                                                  the product
                                                                                  offering
                                                                                  traditionally
                                                                                  has been
                                                                                  restricted
  -------------- ----------- ------------- ---------------- --------------------- ----------------

# 

# Section V. Post Contact and Further Information

**American Embassy Santiago, Office of Agricultural Affairs**

Address: Office of Agricultural Affairs, Unit 4118, APO AA 34033-4118.

Tel.: (56-2) 330-3704

Fax: (56-2) 330-3203

E-mail: [agsantiago@fas.usda.gov]{.underline}

For further information, check the \"Food and Agriculture\" home page on
the U.S. Embassy Santiago web site
([[www.usembassy.cl]{.underline}](http://www.usembassy.cl/)).

**SEREMI de Salud (Chile\'s Food Sanitation Regulations)**

Address: Avenida Bulnes 194, Santiago

Tel: (56-2) 399-2435

Fax: N/A

Web Page: [www.seremisaludrm.cl](http://www.seremisaludrm.cl/)

E-mail: N/A

**Chilean Supermarket Association (ASACH)**

Address: Av. Vitacura 2771, Las Condes, Santiago

Tel.: (56-2) 236-5150

Fax: (56-2) 236-5133

Web Page: [www.asach.com](http://www.asach.com/)

E-Mail: <asach@entelchile.net>

**Foreign Agricultural Service**

Web Page: [http://www.fas.usda.gov](http://www.fas.usda.gov/)