Preparing Food and Drink Businesses for Export to UK
We have just completed a series of three workshops online for the Trinidad and Tobago High Commission with over 40 businesses participating in one or all the workshops to understand more about preparing food and drink businesses for export to UK.
With an eye on market entry, our first stage was to ensure producers are aware of preferred standards such as BRCGS , which include good manufacturing practices in Food Safety, Packaging Materials, Storage and Distribution, Consumer Products, Agents and Brokers, Retail, Gluten-free, Plant-based, and Ethical Trading, and Benchmark businesses through a system of approved auditors.
If you are not accredited with this standard, you will need evidence to show that you have good practices and controls in these areas. Important to note is that BRC audits historical records, showing that you know the standard and practice it daily.
Often, information is passed between businesses, and it is hard to know where to get the definitive and most up-to-date answers . This link takes you through the steps to import and helps you, for instance, find the right commodity code to help smooth your product through customs.
Where in the retail market would businesses want to sell their products? Where will they get the best prices or the most straightforward logistics chain? Is your product best suited for convenience, supermarkets, speciality food, the ethnic market serving the diaspora, or online, and if so, which channel/s?
Each has advantages and disadvantages, so it is a case of evaluating them for your business and creating the best strategy for your needs. We looked at the pros and cons of each—the dangers of going in as a small fish to a big pond and potentially underperforming as your brand is not well known versus a slower launch into the independent store sector and having smaller initial growth but perhaps building from there.
There was also a discussion about setting minimum order quantities (MOQs) to make shipping costs viable. It was noted that popular items often sell out quickly while other stock remains available. Therefore, it’s important to work with the distributor to find solutions to prevent stock shortages, especially in the early stage.
In the UK, specific regulations govern the information that must be displayed on food packaging. The on-pack information may differ from other markets due to these unique requirements. For more detailed guidance, refer to the UK government’s official resources, which provide comprehensive instructions on the legal requirements for food labelling and nutrition information.
https://www.gov.uk/guidance/food-labelling-giving-food-information-to-consumers
Many businesses are surprised to learn about the requirement for a UK address on packaging from the point of import into the UK. This address is typically that of a distributor, but managing this can become complex if you do not have one in place or wish to use multiple distributors for different market sectors. To address this, you need a Food Business Operator (FBO) registered with a local trading authority. The FBO can take legal ownership of your goods in the UK without necessarily taking physical possession. Jane Milton Ltd offers this service. We think these requirements need to be simplified to help exporters of artisan products and importers into the UK from sending simple things like samples to distributors speculatively.
Margins are a common topic of discussion, but it’s important to distinguish margin from markup. Margin is crucial because it shows the actual profitability of a product, making it a more valuable metric. However, people often mistakenly use these terms interchangeably. As a general rule of thumb for margins: distributors or wholesalers typically take 30-35%, while retailers require 40-50%. In the UK, most distributors will order products by the case and expect DDP (Delivered Duty Paid) logistics, meaning the producer bears all the risk until the product is delivered.
Before approaching a distributor or buyer, it’s essential to be well-prepared to make a strong impression and ensure a successful partnership. A detailed market report, whether conducted in-house or by a third party, is crucial. This report should analyse the target market, identify competitors, and highlight potential opportunities. It helps in understanding where your product fits and how it stands out (view our service page for more details).
We also highly recommend creating a tailored pitch deck for each distributor or buyer you approach. A pitch deck is a simple, short, and concise document that demonstrates your understanding of their business. It tells them everything about your product and highlights why they should stock it. Customising the pitch deck for each potential partner shows that you have thoroughly considered how your product fits within their business model, increasing the likelihood of a successful collaboration.
Check out our toolkit ‘The essential elements of the perfect food and drink business pitch deck’Â
Lastly, we discussed the importance of participating in trade shows and entering awards, as these strategies can significantly enhance your brand’s visibility and credibility. Both trade shows and awards are effective strategies for gaining recognition and building a strong brand presence, especially for emerging or lesser-known brands. These activities not only showcase your products to a wider audience but also establish your brand as a reputable player in the industry.
Two incredibly useful tools for these are our ‘How to Prepare for Food and Drink Industry Trade Shows’ and ‘Why entering awards are important for your business’.
In conclusion, preparing food and drink businesses for Export to the UK can be complex, but it is navigable with the right preparation and support. We encourage businesses to take advantage of the resources and guidance available, including our specialised toolkits and consulting services, to ensure a successful and rewarding venture into the UK market. The road ahead is challenging, but with the right approach, the potential rewards are substantial.
