EXPORTING TO THE UK IN AGRI-FOOD

January 2019
Contents
Executive Summary 3

1. UK Market Overview 4

2. UK Export Opportunities
a) Olive Oil 20
b) Processed Tomatoes 43
c) Dates 65
d) Aromatic & Medicinal Plants 84
e) Fresh Fruits 100

3. Accessing the UK Market

a) Packaging 119
b) Logistics 131
c) Barriers to Entry 145

4. Actions / Recommendations 153

Executive Summary

About this Report Key Findings

This report provides detailed information on the agri-food  The UK is a major buyer market across most of the
sector in 5 key segments: olive oil, processed tomatoes, segments discussed in this report (dates is more niche), but
dates, aromatic and medicinal plants, and fresh fruits. It Tunisia has seen limited success.
covers information on:  Tunisian products have limited visibility in the UK market
– there are few preconceptions, but any assumptions that
 The size and nature of the UK opportunity for Tunisian exist tend to be that Tunisia offers lower quality products.
exporters across each of these 5 segments. This  The UK market is not so different to that of France or Italy,
includes detailed information on consumer preferences. where quality is still the primary driver. However, there is
 A review of how the Tunisian product offer compares to more price sensitivity. Plus sustainability, organic products
other major exporting countries in each segment. etc are key drivers of growth.
 UK-specific requirements in packaging, labelling,  Tunisian products do meet these quality needs, but
certifications etc. packaging / labelling is a key weakness, together with
 UK barriers to entry, including discussion on the meeting the more extensive certifications / technical
potential impacts from Brexit. requirements of the UK.
 Accessing the UK will require a coordinated effort to build
Tunisian brands in each segment – they should focus on
Information is based on extensive desk research, together quality, but there needs to be differentiators.
with telephone interviews with 15 UK-based agri-food
buyers.  The impact of Brexit is unpredictable, so exporters need
to be flexible and quick to respond to a changing
environment.
1. UK Market Overview
 Key UK Trends
Market size and imports

UK Retail Sales, 2017 Trade Flows, 2017

9.9% of total UK
£44 billion from
imports from the WORLD
the World
World
£82bn Food

Tunisia’s food & drink exports to the UK contribute just to 2.2% of

£11bn Non-alcoholic drinks Tunisia’s total exports to the UK, whereas UK food & drink imports
represent nearly 10% of its imports from the world.

£93bn Total market size

2.2% of total UK
£4.9 million from
imports from
Tunisia
Tunisia

Sources: Mintel , Trademap – International Trade Center (ITC)

Key UK Trends
Imports and Tunisia position
UK F&D Imports from World vs from Tunisia, in GBP,
Thousands
 UK imports of food and drink from the world
7,000 60,000,000
record an upward trend, with a sharp
increase in the last 2 years, partly due to the
British Pound’s depreciation following the 6,000
50,000,000
Brexit referendum.
 UK is the 3rd largest importers of agricultural 5,000
products in the EU, behind Germany and 40,000,000
the Netherlands. 4,000
30,000,000
3,000

 Tunisia F&D exports to the UK have been 20,000,000

2,000
relatively volatile compare to a more steady
upward trends for UK’s F&D imports from
10,000,000
the World. 1,000
 But since 2012, Tunisia’s F&D exports to
the UK have constantly been above the - 0
long term average of £4.4 million*. 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Tunisia (left axis) World to UK (right axis)

* Based on a 10-year annual average Source: Trademap – International Trade Center (ITC), World Trade Organisation (WTO)
Key UK Trends
Retail landscape
The largest retailers have their own brands of agri-food products, with a growing market share. The 2 largest hard discounters record a 10%
market share and are expanding fast. E-commerce have the greatest variety of products e.g. OCADO sells over 100 different olive oil bottles.

Tesco is a British multinational groceries and general merchandise. It is the third-largest retailer in the world and the market
leader of groceries in the UK with 28.4% market share.
Sainsbury's is the second largest chain of supermarkets in the United Kingdom, with a 15.8% share of the supermarket sector.
Largest retailers

It merged with ASDA in April 2018.

Asda is the third largest chain of supermarkets in the United Kingdom with 15.3% market share.

Morrisons is the fourth largest chain of supermarkets in the United Kingdom (10.14% market share).

Waitrose & Partners is the food retail division of Britain's largest employee-owned retailer, the John Lewis Partnership. Waitrose
has 353 shops across the United Kingdom, including 65 "little Waitrose" convenience shops, and a 5.1% share of the market,
making it the seventh-largest retailer in the UK.

Aldi launched in Great Britain in 1990 and has grown consistently since then. In 2015, Aldi is the UK’s sixth-largest supermarket
discounters

chain by market share (6.2%), continuing the discounter’s rapid push into mainstream grocery retailing.
Largest

Lidl opened its first UK store in 1994. Since then, Lidl has grown consistently, and today has over 650 stores. While it is still a
small player in the United Kingdom, with a grocery market share of 4.5%, its importance continue to grow rapidly in the UK.

Ocado is a British online supermarket. In contrast to its main competitors, the company has no chain of stores and does all
E-commerce

home deliveries from its warehouses. Ocado has been voted the best online supermarket in the UK by Which? readers every
year since 2010.
Buy Whole Foods is an international health food supplier. They deliver top quality natural and organic wholefoods, and related
healthy living products, directly to homes and businesses across the UK and Europe.
Key UK Trends
Consumer preferences – based on our consultations

OCO conducted 15 telephone interviews with UK buyers of agri-food products, including wholesale buyers and retailers. We
asked 11 questions around a range of topics - the trends on consumer preferences are provided here, with other topics
addressed elsewhere in this report

What factors are most important to you as a buyer? Where are the opportunities for new suppliers?
12 out of 15 said that QUALITY mattered most. This was normally followed by Little consensus in company answers! But the UK will always
PRICE, and then PACKAGING. The country of origin and uniqueness of the have strong demand.
product were only cited by a small number of firms. There was limited variation in
this trends within different agri-food segments.  Olive oil does appear to have strong opportunities, as
growth is steady, particularly in terms of high quality /
different varieties.
 Some growth in processed tomatoes, around sundried
What is important to the UK consumer, compared to France or etc.
Italy?  Dates are still niche in the UK beyond for expats, but
France and Italy are concerned primarily with QUALITY / TASTE. In the UK, its potential as ingredients in cereals etc.
more complicated. Quality is still important (and increasing), but also:  Some demand for fresh herbs
 Fresh fruits / vegetables is a mature market. There is
 Higher PRICE SENSITIVITY, particularly when targeting outside South East growth, but the opportunity will be based on seasonality –
UK. Also the UK will buy some products (e.g. dates) in smaller volumes where a Tunisian product can fill a gap, or in products that
 APPEARANCE matters – e.g. unblemished fresh produce are less common.

Plus the UK as HIGHER TECHNICAL STANDARDS, such as around labelling.

Companies interviewed were: Tesco, John & Pascalis, Bestway, Jem Fruits, Total Produce, Cotswold Fayre, Exsa Imports, FESA, Harvey & Brockless, Hider, Ivory & Ledux,
Leathams, Petrow, and Ritter Courivaud
Key UK Trends
Consumer preferences – based on our desk research

 With food waste rising as an ethical and  A large cohort of Europeans are looking for fruits
environmental issue, frozen fruit and vegetable and vegetables with 'Superfood‘ properties, which
manufacturers have an opportunity to market the inherent deliver health naturally.
waste-saving benefits of frozen product formats.
 This opens opportunities for the inclusion and
 In the UK, 60% of consumers claim to care about the promotion of 'superfood' ingredients that deliver a
environmental impact of food production. range of natural health benefits.

 In Europe, retailers and frozen produce manufacturers

have gotten on board with campaigns that emphasize the
waste reduction and household savings attributes of
frozen foods.

Frozen fruit and vegetable products are now mention Natural plant powered 'superfoods' deliver holistic
waste-savings on packaging health

Source: Mintel
Key UK Trends
Consumer preferences – based on our desk research

 Added sugar becomes a villain for processed fruit: in  Consumers are demanding greater transparency from
Europe, the presence of added sugar has led a manufacturers and retailers about how products are
significant portion of consumers to reduce tinned fruit grown, processed and distributed.
consumption.  In the UK, three-quarters of grocery shoppers are
interested in more locally sourced products, while
nearly two-thirds think that UK produced products will
become more important as Brexit moves forward.
 Already, 'fake farm' branding has come under scrutiny
in the UK, while a significant portion of Europeans
agree that farming details on produce packaging build
consumer trust.

Natural sugar alternatives, such as natural sweeteners

This trend will continue to build momentum and drive
(from dates for example) are poised to play a larger role in
demand for produce with local provenance and
the processed fruit segment as consumers continue to
produce that provides a verifiable production
move away from added sugars as well as artificial
'backstory' on packaging.
sweeteners.

Source: Mintel
Key UK Trends
Consumer preferences – based on our desk research

 'New Sensations' are the next frontier for produce. In  Convenience, 'suitable for' claims, natural and
Europe, consumers are becoming more open to trying positioning claims grow in 2017
food and drink with unusual textures.
 Growth in suitable for claims is driven by
 This underscores opportunities for brands to incorporate vegetarian/vegan and kosher, while growth in
and highlight texture in order to engage consumers' positioning claims is driven by an increasing use of
senses more fully. premium product claims

 Plant-based ingredients provide a rich and varied arsenal

for the exploration of textures in packaged.

Rising demand for plant-based foods and interest in

Looking ahead, the sound, feel and satisfaction that vegetarian and vegan diets has opened opportunities
texture provides will become more important for fruit & for manufacturers to showcase their economical and
vegetable innovation. From chewy to creamy to crispy, food waste-reduction strengths at the centre of the
attention to texture in formulation and marketing can make store, an area of retail that has faced challenges as
fruit & vegetable products more captivating for consumers. consumers have migrated to fresh aisles in search of
less processed foods.

Source: Mintel
Key UK Trends
Consumer preferences – based on our desk research

 Food scare stories can break implied trust and result in consumers feeling
betrayed, although with the hassle of examining every product
themselves, most seem to revert to trusting brands in time.
 Media coverage on excess plastic appears to have stoked consumer
concern, especially with more upmarket consumers. Brands that
demonstrate they are changing their packaging in response to consumer
demands will gain competitive advantage.
 People claiming to ‘Buy British’ has increased from 29% to 37%
 Price rises - the expectation that Brexit will lead to price rises for EU food
brands could result in more astute shopping and further growth of discount
stores.

Source: The Grocer “The 2018 Food & Drink Report”

Key UK Trends
Consumer preferences in quotes – based on our desk research

Brexit – E-commerce
“The Brits are the second spenders of e-products globally after the Chinese.
Developing the e-commerce channels to provide for the needs of the British
consumers who ask for high quality products, could prove to be the right way
forward.”

Rebecca Halford-Harrison,
Lawyer at Keystone Law

Organic
“The UK’s organic market has just posted its seventh consecutive year of
growth, with an overall sales growth of 4% for the 52 weeks to June 30 2018”

Neil Murray, Editor & Expert in Global Market

for Fruit Juices and Concentrates at IEG Vu

Organic
“This rising demand is a major opportunity for retailers to list new brands and
products and seize the momentum surrounding organic – momentum that is
showing no signs of slowing down. This summer’s results clearly show that if
there is supply, demand will follow.”

Finn Cottle, Trade Consultant for

Soil Association Certification
Building a Brand
Based on our consultations

As a buyer, where do you source your products from? What is your perception of Tunisian products?
Nearly all companies are sourcing from SOUTHERN EUROPE – Italy, Spain, Few companies have any preconceptions at all, beyond maybe
Greece etc. The exception is dates, for which other Middle Eastern countries are some knowledge of dates. Where they do have a preconception,
important. But for more niche products (e.g. edamame beans), then any country it is typically negative. In particular, they assume:
throughout the world can become an option.
 Poorer quality of products then they would normally buy
 Political instability
 Lower production standards and infrastructure
Have you bought Tunisian products before?
There is stronger knowledge of comparators like Morocco.
Less than half the 15 companies had any previous experience with Tunisian
products, and this was generally from a few years ago. They found good quality
So, the key is for Tunisian to build a brand to change these
products, but:
preconceptions and address its weaknesses.
 Weak packaging. It must be in English, with labelling on nutrition etc.
 Weak logistics, particularly an issue with time sensitive fresh produce.
 One Tunisian supplier would not invest in marketing, despite the quality and
price of its products being strong.
Building a Brand
Tunisian selling messages to the UK
The Tunisia brand will need to combine messages around its own key strengths AND British consumers preferences

Tunisia has to showcase the quality of its

Tunisian exporters should use key products which can differentiate them form
messaging around the sustainability of their Quality competitors, such as the traditional harvest
product, including methods. They can also seek to obtained
Sustain & certifications of quality from the bureau of
 Production methods(organic)
ability  Selling process & methods (fair trade) Health standards:
 Consumer specific diet (vegetarian,  Hand picking is often presented as a
Vegan etc.) guarantee of quality
 ISO

Products’ origin is increasingly important to Flavouring is increasingly used by producers

European consumers (including UK for product differentiation, as well as product
consumers) as it is perceived as a sign a use (dipping) or add value to their product:
quality and authenticity.  Picking and pressing the olives
Origin  Tunisia should create a certification Flavour separately, and then blending the oil from
granted to Tunisian products from specific the different varieties to get the best
regions and specific qualities, e.g. AOC** balance and flavour
or the Geographical indications and  Olive oil infused with herbs (e.g. basil etc)
traditional specialities in the EU to add flavour

* Note that: Produce from organically grown olives (implying that 95% of the product’s farmed ingredients are organic
** French certification granted to certain French geographical indications all under the auspices of the Institut national de l'origine et de la qualité (INAO).
Many other countries have used this model to create their own certification, such as the Spanish denominación de origen which is using it for its olive oil.
Building a Brand
Case study - Spain

Spain has created a single brand to support and promote its food and wine products using a
similar label as the French appellations : denomination de origen.
 Recognised by the European Union, the denominación de origen is part of a regulatory
classification system used primarily for Spanish wines but also for other foodstuffs such as olive
oil, cheese etc. It performs a regulation role of quality and geographical origin among Spain's
finest producers.
 In Catalonia, two further categories cover traditional Catalan artisan food products.
 FWS created a website aimed at professionals in the food and wine sector (importers,
distributors, journalists, media, cooking schools, etc.) to help them promote their products. This
includes promotion brochures, an interactive map of regional products, a training program.
 A training program on Spanish gastronomy also exists with the objectives of:
 Generating passion for culture, gastronomy and Spanish products.
 Designing and creating quality gastronomy, based on the products presented during the
course and the discovery trip.
 Identifying and evaluating the principal characteristics of Spanish gastronomy, from its
different regions, as well as the Mediterranean zone.
 Enabling effective communication with both clients and other professionals about the value
of the Spanish products and gastronomic culture in Spain.
 Evaluating, identifying and designing innovative processes for both service and customer
service in the hotel industry.
www.foodswinesfromspain.com
Potential Target Partners
Buyers

 The Provence Olive Oil Society which brings together

five producers from PDO areas in Provence where olive
oil is created in small craft units and in many cases still  The Artisan Food Club initiates introductions to retailers
harvested by hand. and helps secure continued sales, working with
independent food companies across the UK to help them
find and work with local producers.

 Markets, sells and distributes a large range of speciality

food and drink to independent food halls, delicatessens,
farm shops, convenience stores and garden centres in
the UK and Ireland. Currently has 2,000 customers, 250
suppliers and over 3,000 products including seasonal  One of Britain’s largest food distributors. The company
lines. began by supplying to the Turkish community, and then
 Distributes bakery goods, snacks, beverages, moved on to other ethnic minorities living in London.
condiments, and organic foods throughout the UK. GAMA has become one of the most important suppliers
to the ethnic market in the UK.
 Their product range includes: Mediterranean food, Olive
Oil Sun Dried Tomatoes and Olives.
Potential Target Partners
Buyers

 FESA has over 30 years experience in growing, packing  John & Pascalis are importers and distributors of food
and suppling fresh fruit and vegetables. Supplying all products. They source food from all around the
sectors of the UK Market including retail, food service, Mediterranean and the Middle East.
food manufacturing and wholesale markets. FESA grow  Key products that John & Pascalis supply include: Olives,
and source product seasonally, on a global scale. paste, pastries, Sun Dried Tomatoes, canned food, dried
 FESA source a full range of Citrus Fruits, Melons, fruit, dates, herbs and spices, sauces, condiments, wine,
Vegetables, Exotic, Top and Stone Fruit. cheese, olive oil, fruit drinks and tea.
 FESA manages a global supply chain, bringing products
into the UK from all over the world.

 Ritter Courivaud is one of the leading food distributors to

the upmarket sector of the UK’s food service industry.
 With an extensive range of over 3,000 product lines their
product range includes top quality specialist
ingredients from all around the world, from caviar to fresh
truffles, wild mushrooms, cheese, charcuterie
and premium dry goods, from spices to flour and oils and
other kitchen essentials.
Potential Target Partners
Buyers

 Lakes Food Euro is an experienced leading UK exporter,  Ivory & Ledoux is a leading food importer and international
national distributor of fine foods to the retailer, wholesaler, trader of ambient, canned, pouch, chilled, aseptic, frozen
cash & carry and foodservice. Lakes has now franchised and concentrated food ingredients and products.
their brand globally to Africa, Asia, the Middle East, Saudi  They supply to major wholesale food distributors,
Arabia and South Africa. international food processors, government institutions,
 Lakes product range includes dry fruits, speciality oils, major catering groups, fast food chains and retailers in the
African products, Asian products, nuts, sauces, herbs, UK.
spices and pastries.  Their product range includes canned goods, pastes, fruit
& vegetables, fish, and olives.

 Bidfood is one of the largest food wholesalers in the UK.

They currently supply to over 60,000 customers across the  A UK leader in the provision of vegetarian and vegan
UK supplying to restaurants, pubs & clubs, fish & chip food distribution sector, who promote specific products
shops, pizza outlets, education, contract caterers, airlines lines which the company has on its portfolio.
and the hospitality industry.  The company operates out of its warehouse where it
 Bidfood range includes everything from dry and chilled primarily fulfills orders via its e-commerce platform.
products, to frozen goods and non-food items.
2. UK Export Opportunities: Olive Oil
Section Summary
Summary of key trends and facts are presented below. The Competition
 The competition assessment reveals that (1) Tunisia is particularly
Market Size & Opportunity price-competitive with low production cost, which makes it partly for
 Over the last 3 years, sales of olive oil in value in the UK higher shipping costs (2) Tunisia extra virgin oil has a certain
have been increasing whereas sales in volume have been international recognition.
decreasing.  The UK market is supplied by well established brands and own labels,
 Value and volume of sales have gone the opposite direction however as the market matures new prospects appears.
as the result of recent poor olive harvests in the EU that
pushed the price of olives up. In addition, the depreciation Implications for Company’s Marketing Strategy
of Sterling following the Brexit vote has driven up the cost of  Emphasis on the sustainability of the production of the olive oil,
imports. including how the sector supports to the Tunisian farmers, through labels
(Fairtrade) and/or marketing message.
Consumer Trends Driving Demand  Showcase the health benefit of the olive oil and its recognised quality.
 The price increase of olive oil tends to push consumers  Use of clear and recognised UK or European labels (organic, Vegan,
towards alternative products, cheaper cooking oils, and own Great Taste Awards etc.)
labels (Tesco, Sainsbury’s etc. own olive oil brands.)
 Olive oil exporters can market some of their olive oils with infused local
 The UK ageing population are getting more worried about
herbs and species to add flavour and diversify their offer.
saturated fat.
 UK population consumption of olive oil remains relatively
low but is growing alongside with consumer’s education,
Challenges
getting more sensitive on oil quality.  Product launches in olive oil have been dominated by extra virgin olive
oil, which puts a heavy emphasis on quality and increasing
competition in this segment.
 Tunisian oil is in competition with already well established brands.
Definition
 This report covers the following product areas:
o Virgin lampante olive oil: Not undergone any treatment other than
washing, decanting, centrifuging, and filtering. Intended for refining or
for technical use. Lampante virgin olive oil comes from bad fruit or
careless processing, so not fit for human consumption.
o Virgin and extra virgin olive oil: Not undergone any treatment other
than washing, decanting, centrifuging, and filtering. Extra virgin olive oil
accounts for less than 10% of oil in many producing countries. This is
the highest quality of olive oil, but varies widely in taste, colour, and
appearance. Their taste and aroma should reflect the fact that they
were made from olives.
o Crude olive oils and blends: Intended for refining for use for human
consumption, or intended for technical use. Most supermarket brands
of olive oil are blended from oil from many different varieties, regions,
and even countries. Because olive oil tastes differently year to year
from the same grove due to weather, trained blenders must take oil
from many sources and develop a new mix every year to create a
consistent taste.

 The report excludes:

o Fresh or chilled olives
o Olives, provisionally preserved
o Olives, prepared or preserved otherwise than by vinegar or acetic acid
o Oilcake & other solid residues from the extraction of olive oil
Import and Export Trends
UK Market Size & Opportunity

VALUE VOLUME UK Retail Value and Volume Sales of Edible Oils

Upward trend of market Decrease 500

Value in GBP, millions

size: £179million* 36 million kg 400
50
39 48
300
Recent increase in value In edible oils, olive oil 171 177 179
sales of olive oil driven by accounts for the largest 200
higher retail prices, resulting share of value sales (47%), 100 158 151 154
from a combination of: but cooking oil by far the
0
largest share of volume sales
2015 2016 2017
(1) declining European (23%).
Cooking oil Olive oil
production
200

Volume in kg, millions

(2) weakening in the value 6 8 8
150
of the Pound against the 39 39 36
euro 100

50 120 120 121

DRIVING FURTHER GROWTH
An ageing and more health sensitive UK population more worried about
0
saturated fat. The number of over-55s is forecast to increase by 2 million
2015 2016 2017
(10%) between 2017 and 2022.
Cooking oil Olive oil
* 6.6% of overall European market – evaluated at £2.7 billion, Source: Mintel
 Import and Export Trends
UK Market Profile

UK’s Olive Oil Imports from the World, in Value and Volume
9th largest consumer of olive oil globally
250,000 90,000

 By value, the UK is a major importer of olive oil with £230 million 80,000
imported in 2017 – ranking 9th globally and 6th in the EU.
 By volume, the UK imported 75 thousands tons in 2017 – ranking 200,000 70,000
6th worldwide
 The value of olive oil price imported from the world increased 60,000
significantly recently, however volume has not increased 150,000
proportionally - due to the British pound’s depreciation following the 50,000
Brexit referendum and recent poor harvests.
40,000
Key sub-products 100,000
 Olive oil (72%), Extra Virgin (11%), Virgin oil (8%), Lampante (9%) 30,000

50,000 20,000
Top suppliers
 Italy (63%), Italy (23%), Netherlands (3.9%), Greece (3.6%), 10,000
Germany (3.5%)
0 0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Value, GBP, thousands (left axis) Volume, tons (right axis)

Source: Trademap – International Trade Center (ITC)
Import and Export Trends
Tunisia Supplier Profile
Tunisia’s Olive Oil Exports to the World, in Value and Volume

700,000 350,000
6th largest supplier of olive oil globally

600,000 300,000

 The volume and value of olive oil exported from Tunisia globally
have fluctuated proportionally, reflecting relative stability in the 500,000 250,000
price of production.
 Over the last five crop years, 82% of exports of packaged olive oils
are extra virgin olive oil and 15% are blends. The remaining 3% 400,000 200,000
are virgin olive oil.
 Approximately one hundred operators export olive oil from Tunisia
on the international market. 300,000 150,000
 Funds for export support:
o Fund for the Promotion of Exports (FOPRODEX)
200,000 100,000
o Fund for the Promotion of Packaged Olive Oil

Top clients 100,000 50,000

 Italy (34%) ; Spain (28%); US (17%); France (6%); Portugal (2.2%)

0 0
Top sub-products 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
 Virgin oil (93%), olive oil (7%)
Value GBP, thousands (left axis) Volume, tons (right axis)

Source: Trademap – International Trade Center (ITC)

Import and Export Trends
UK - Tunisia Trade Profile
Tunisia’s Olive Oil Exports to the UK, in Value and Volume
Tunisia is UK’s Tunisia to UK 180 600
11th olive oil £211,000
supplier 65 tons 160
500
140
 Where Tunisia is the 6th supplier of olive oil worldwide
(see previous slide), it is the only the 11th supplier of olive
120 400
oil in the UK

 Tunisia is exporting only 5.9% of extra virgin olive oil to 100

the UK, which implies potential for further growth. 300

80

60 200

40
100
20

0 0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Value, GBP, thousands (left axis) Volume, tons (right axis)

Source: Trademap – International Trade Center (ITC)

 Import and Export Trends
Major Current UK Suppliers
Spain is by far the largest supplier of olive oil in the world, followed by Italy (only half of Spain’s exports). A 2nd group of exporters
includes Greece, Portugal and Tunisia. However, looking at UK market suppliers, Spain and Italy record an even higher share,
whereas Tunisia only accounts for 0.1% of the UK market.

Geography Export to World Export to UK

European Value Share Value Share Trend*
 Spain £2.6 bn 47% £123 mn 61% 136%
 Italy £1.2 bn 22% £53mn 27% 101%
 Greece £453 mn 8.2% £7.6mn 3.8% 140%
 Portugal £362 mn 6.6% £0.8mn 0.4% 139%

North Africa & Middle-East

 Palestine £23 mn 0.2% £0.6 mn 0.3% 139%
 Turkey £82 mn 1.5% £0.04mn 0.02% 80%
 Syria £54 mn 1.0% Not significant
 Morocco £38 mn 0.7% Not significant

TUNISIA £411mn 6.9% £0.2 mn 0.1% 165%

* Performance: calculated based on the last 3-year average over long term 10-year average Source: Trademap – International Trade Center (ITC)
Import and Export Trends
Relative Size of the UK Market
The UK is an important market in absolute terms. However, the use of olive oil in every day cooking remains relatively low
compared to Italy, Spain, Greece and even France in a lesser extent. The market is expected to grow significantly as the British
consumer become increasingly more aware of the health benefit of olive oil.

Geography Consumption Consumption per capita

European Volume* Share
 Italy 533 18% 2.0
 Spain 473 16% 3.5
 Greece 125 4.3% 1.3
 Portugal 106 3.7% 0.6
 France 125 4.3% 0.9
 UK 106 3.7% 0.5
 Germany 62 2.1% 0.5

North America
 USA 316 11% -

* 1,000 tons

Source: International Olive Oil Council

Import and Export Trends
Competition Landscape

 The table provides an overview of the major Country Profile Export Import Consumption Production Olive area
Exporters, Importers, Consumers and rank* Rank* Rank* rank* rank
Producer countries in the Mediterranean Spain E+I+C+P 1 2 2 1 1
basin. Italy E+I+C+P 2 1 1 2 3
Portugal E+I+C+P 5 5 10 8 8
 The countries are divided between EU and Greece E+C+P 4 53 5 3 4
non-EU countries; and between type of Turkey E+C+P 7 67 4 4 6
activities (Exporter / Importer / Consumer / Syria E+C+P 8 109 8 7 7
Producer) : Morocco E+C+P 9 24 6 6 5
o EU: Tunisia E+P 3 55 13 5 2
France I+C 12 4 7 17 15
• E+I+C+P: Spain, Italy, Portugal Germany I 15 7 12 - -
• E+C+P: Greece UK I 21 6 11 - -
• I+C: France Jordan P 29 213 14 10 10
Algeria C+P 67 111 9 9 9
• I: UK, Germany Lebanon ns 13 47 17 12 13
o Non-EU: Palestine ns 14 157 18 13 11
• E+C+P: Turkey, Syria, Morocco Egypt ns 19 85 15 11 12
Israel ns 31 34 16 14 16
• E+P: Tunisia
Albania ns 72 73 19 15 14
• P: Jordan
E: Exporter (Top 10) European Source: ITC; International Olive Oil Council
• C+P: Algeria I: Importer (Top 10) Non-European
C: Consumer (Top 10)
• ns: Palestine, Albania, Israel, Egypt P: Producer (Top 10) * Based on average volume over the last 3 years
ns: not-significant
 Evaluating Tunisia Competitiveness
Overview

Scale of Access to
Credibility Cost/Price Quality OVERALL
production the market
RATING

Indicates the Measures the Determines cost Evaluates Indicates the ease
DEFINITION

country capabilities country’s olive oil competiveness, recognised quality of trade between
in producing olive product perception looking a producer on the international the UK and the
oil, looking at on the international costs market, looking at partner country,
production in market, looking at the share of extra looking at bilateral
volume the level of exports virgin oil production trade agreements
in overall production and shipping times
Evaluating Tunisia Competitiveness
Scale of Production & Credibility

Scale of
Credibility
production
Production* Share Score Exports* Share Score

Tunisia 173 6% Tunisia 411 6.9%

Spain 1,315 43% Spain 2,567 47%

Italy 362 12% Italy 1,192 22%

Greece 287 9% Greece 453 8.2%

Turkey 207 7% Turkey 82 1.5%

Morocco 127 4.2% Morocco 38 0.7%

* 1,000 tons Source: International Olive Oil Council * 1,000 GBP Source: Trademap – International Trade Center (ITC)

 Tunisia is an important producer globally, but it is a relatively  Tunisia is ranks in the middle among its competitors, however
small one compared to its 2 largest competitors, indeed Tunisia Tunisia’s exports are a much smaller exporter than Spain and
produces half of Italy productions and one seventh of Spain. Italy. Interestingly, Italy records a much larger share of global
 Tunisia’s production is however at a similar level as its other exports than global production, suggesting that its products are
close competitors, that is Greece, Turkey and Morocco. export oriented. On the contrary Turkey products are mostly for
domestic consumption.
 The yield per ha in Tunisia is evaluated at 0.09 compared to 0.51
in Spain,0.27 in Italy and 0.12 in Morocco  Tunisia’s oil production seems to be balanced between local
and foreign consumers.
Evaluating Tunisia Competitiveness
Cost / Price & Quality

Cost/Price Quality

Producer cost Score Extra virgin exports Share Score

Tunisia 2.03 Tunisia 380 8%

Spain 2.75 Spain 1992 44%

Italy 3.95 Italy 991 22%

Greece 2.47 Greece 389 9%

Turkey 2.03 Turkey 45 1%

Morocco 1.91 Morocco 34 0.7%

Source: International olive oil production costs study - 2015 Source: Trademap – International Trade Center (ITC)
 Tunisia has a production cost competitive advantage compared  International recognition of the quality of olive oil production can
to its EU competitors, it is however at a similar level as Turkey be measured by the quantity of extra virgin exported. Tunisia
and Morocco. records higher share of its extra virgin oil export than its export
 Tunisia’s cost is half of Italia’s and Algeria. It is also only two of olive oil overall, suggesting a certain quality recognition of the
third of Spain’s and 25% cheaper than in Greece and Portugal. Tunisia oil internationally. On the contrary, Spanish and Turkish
olive oil are less quality oriented.
 The average all-country cost of producing one kilogram of olive  If Tunisia is relatively quality export oriented, it still remained
oil works out at EUR 2.63/kg well under Spain and Italy extra olive oil exports.
Evaluating Tunisia Competitiveness
Access to Market / Overall

Access to
market
Ease of trade* Score Overall score

Tunisia Trade agreement Tunisia

Spain EU member + Spain

proximity to market

Italy EU member + Italy

proximity to market
EU member +
Greece
Greece
proximity to market
Turkey
Turkey Part of custom
union Morocco
Morocco Trade agreement

* Based on Free trade agreement + Shipping time

 Tunisian’s competitors are EU members, at the exception of  Comparatively to its key competitors, Tunisia is
Morocco and Turkey, which gives them an advantage in overall well positioned.
terms of proximity to market as well as free trade.
 UK Consumer Preferences
Key Trends

 The success of private label and the impact of price increases

across European countries is driving up value sales of olive oil.
 Several countries reported that private label is now dominant in the
olive oil category, largely driven by the discount channel, which
has extended its product portfolio and increased promotional
activity.
o The UK, for example, saw a rise of 5% in private label, while
in Germany value sales of private label products grew by
10.8%, driven by both price and an increase in volume sales.
However, private label suffered in Greece when the main
retailer, Marinopoulos, which had a very strong private label
range, went bankrupt, impacting overall sales in the country.
 Organic Olive Oil has grown by 37.4% in value and 17.5% in
volume in the UK market compared to a year ago, thanks in part to
shopper perception about the health benefits, although overall
sales in this segment are still low.
 The olive oil price has increased across Europe, including the UK,
and is expected to continue to rise next year. As a consequence,
many say more needs to be done to persuade consumers that
extra virgin olive oil is worth a higher price.

https://www.iriworldwide.com/fr-FR/insights/news/European-Shoppers-focusing-more-on-quality-than-price-with-Olive-Oil-3 Source: IRI “European Shoppers focusing more on quality than price with Olive Oil”
UK Consumer Preferences
What’s on UK shelves?
Filippo Berio extra virgin olive oil Olio del Castello extra virgin olive oil KEY POINTS
– £0.78/100ml – £0.87p/100ml
Produce of: Greece, Italy, Spain, Produced of: na • Certification ISO as a
Tunisia Packed in: na guarantee of quality
Packed in: the U.K. Retailer: Waitrose • Mix between glass, plastic
Retailer: Waitrose bottle and tin reflecting
“Cold pressed and unfiltered. quality/price
“Filippo Berio is proud to present this Blend of olive oils of European Union
• Origin clearly labelled (flag,
Special Edition Extra Virgin Olive origin. Superior category olive oil.
region of production origin
Oil Tin. This traditional, rich and This extra virgin olive oil has been
etc.)
fruity Extra Virgin Olive Oil is perfect left unfiltered, giving it a distinctive
• Key words: “traditional”,
Extra Virgin Oil

on salads, jacket potatoes, "cloudy“ appearance. The flavour is

vegetables (…). Bringing a touch of characteristically fruity with a light “rich”, “Special Edition”,
Italian chic to any kitchen.” peppery back note.” “Superior”

Other:

Il Casolare Extra Virgin Olive Oil 1L Napolina Extra Virgin Olive Oil 1L
– £0.7/100ml – £0.45/100ml
Produced of: EU (blend) Produced of: EU (blend)
Packed in: Italy Packed in: EU
Retailer: Morrisons, Tesco, Retailer: Tesco
Sainsbury’s

ISO9001:2008, ISO14001:2004,
SA8000.
UK Consumer Preferences
What’s on UK shelves?
Organic Extra Virgin Olive Oil 500Ml Carapelli Organic Extra Virgin Olive KEY POINTS
– £0.65/100ml Oil 500ml – £0.65/100ml • “Organic” is the main
Produced in: Spain Produced in: EU and Non-EU message, taking a large
Packed in: the U.K. Packed in: Italy space on the label
Retailer: Tesco Retailer: Morrisons
• Protected Geographical
A fruity, light peppery olive oil with a Messaging: “Carapelli celebrates the Indication
natural richness. Use for drizzling, artistry and simplicity of the olive oil.
dressing and dipping. Our delicately crafted extra virgin • Certified to strict ICEA
olive oil is sourced purely from organic standards
organic olives groves and blended • All oils are in glass bottle
with the knowledge of our
• Key words: “crafted”,
heritage.”
“heritage”, “natural”, “aroma”
Organic

etc.
Odysea Organic PGI Chania Greek Equal Exchange Fairtrade Organic
Extra virGin Olive Oil (500ml) Palestinian Extra Virgin Olive Oil Others
– £1.25/100ml Canaan Blend 500ml – £1.79/100ml
Country of origin: Greece Produced in: Palestine
Packed in: Greece Packed in: Palestine
Distribution: E-commerce Retailer: Sainsbury’s
The oil is extracted cold within hours Messaging: “Picked by hand and
of the olives being harvested so as cold pressed, this organic and extra
to ensure that it retains it's rich virgin olive oil is packed at source
aroma and high nutrient value. ensuring maximum quality and
Produced exclusively from maximum benefit for our farming
organically grown Koroneiki olives partners. Fairtrade doesn't get any
from the Chania region. It has been fairer than this.”
awarded EU PGI status
UK Consumer Preferences
What’s on UK shelves?
KEY POINTS
Frylight Olive Oil Spray Sainsbury's Extra Virgin
190Ml – £1.22/100ml Olive Oil Spray 200ml – • Plastic bottle for Extra and
Produce of: na £0.83/100ml non extra virgin oil
Packed in: na Produced of: EU blend Origin • “1cal” symbol, showing
Retailer: all large retailers Packed in: UK limited intake of calories
Spray

Retailer: Sainsbury’s compared to regular bottle

The original 1cal spray. For
Ideal for salad dressings and • Quantities are less,
frying, baking and roasting.
marinades. showcasing waste reduction
Gluten free. No artificial
ingredients. • Differentiation between Extra
Virgin spray for dressing and
Frylight spray for cooking

KEY POINTS Origin matters!

Tesco Finest Oil Garlic And
• Flavoured olive oils are
Chilli For Dipping 250ml –
Flavoured dipping oil

Greek / Spanish / Italian Extra

present across a wide
£1.40/100ml Virgin Olive Oil 500Ml
range of retailers and at a
Produce of: blend – £0.70/100ml
number of different price

Origin
Packed in: UK Produce of: Greece / Spanish /
points, ranging from White
Retailer: Tesco Italia
Truffle Flavoured Extra
Packed in: the U.K.
Virgin Oil, which was
Italian extra virgin olive oil Retailer: Tesco
launched at Harvey Nichols,
infused with fresh and dried
to Basil Infused Olive Oil,
garlic and chilli.
new under Aldi’s Deli range.
UK Consumer Preferences
What’s on UK shelves?
The Napolina brand was established in Italy and launched in the UK in 1965. in 2001, the brand
was acquired by the Princes Group (subsidiary of Mitsubishi Corporation). Napolina/Princes imports
and distributes food produces, including tomatoes, pasta and olive oils to sauces, pulses, pizzeria,
Brands:
and grated cheese. Products: Olive oil, Extra Virgin, Light in Colour, Special Selection, Spray Oils.
UK presence: Napolina recently lost its position as Britain’s biggest olive oil brand to Berio (≈20%
of market share)
Production & Packaging: The company own the UK’s leading olive oil production facility located
in Belvedere and producing in glass bottles, PET bottles, bulk containers and tins. With seven
production lines, the site produces 21.5m litres of oil each year across 172 different sizes and
variants.
Website: UK: www.napolina.com / www.princesgroup.com

Filippo Berio, is a brand own and created by the SALOV. Created in 1919, SALOV recently entered
a partnership with YIMIN FOODS, a subsidiary of the giant Bright Food of Shanghai ($19bn
turnover). The Filippo Berio brand is distributed in 72 countries. Turnover of over £300million.
UK presence: It recently became the UK market leader with about 25% market share.
Brand: Production & Packaging: SALOV executes in-house all the strategic phases of the edible oil value
chain, from procurement to refining, from R&D to marketing. It owns a production facility in Italy,
including a technologically advanced refinery and a fully automated filtering and blending plant, for a
total production capacity of more than 230,000 tons per year.
Website (UK): www.filippoberio.co.uk

Other:

www.carbonell-oliveoil.com www.monini.com www.ktc-edibles.co.uk www.laespanolaaceites.com

UK Consumer Preferences
In quotes – based on our desk research

“We’ve seen our competitors have been buying better quality oils than they have in ““Retailers stand to gain from ongoing consumer
the past. We’ve tended to always position ourselves a little bit above [most other education within the olive oil category,” (…) “As
companies] and what we’re finding is we’ve now got competition for those quality consumer knowledge and understanding improves,
oils – more so than in the past.” olive oil repertoire, usage and frequency of purchase
will increase.”
Walter Zanré, UK MD of Filippo Berio
Dean Towey, marketing director
at Napolina
“It’s interesting that olive oil, which has traditionally been dominated by
recognizable brands, has seen a significant shift in recent years. Private
label is now better in quality, which is why we have seen the increase “Olive oil prices have risen substantially, as poor harvests and
of PL in other categories as well, but we are also seeing retailers, challenging economic conditions have impacted the price of raw
including the discounters, giving much more shelf space and materials and production costs by as much as 13% or 14% in
extending the range of their oils, including organic ranges, in-store.” countries like Greece and Italy,” (…) “As a result we’re seeing a very
interesting picture of the current state of the market, with volume
declines in all markets, but value increases versus a year ago. High
Sebastian Hendricks, Consultant at IRI shelf prices are starting act as a deterrent and prompt
consumers to try other cooking oils. In Germany, for example, we
see high strong volume growth for Linseed Oils at +18% yoy albeit
“Promotions are always a helpful tool to enhance the performance of our from a smaller base, while lower prices for sunflower oil appear to be
products, but naturally there has to be a balance in promotional offers bolstering its fortunes, volumes up +10% yoy.”
through both our national retailers as well as the independents,”
Abotorabi, Senior Regional Insights
Paresh Metha, Commercial Director at KTC Manager at IRI
Defining the Tunisia Offer
Key Points

 There are currently some 3 300 operators in the various branches of organic farming, and Tunisia exported 50,000 tonnes of
organic products in 2016 (5,000 tonnes in 2002) to 60 destinations, for an estimated value of 350 million dinars.

o It was the first global exporter of organic olive oil in 2015 and 3rd in terms of production.

 Olive plantations cover some 125,000 ha, or 40% of the total crop area using organic farming practices, thereby allowing Tunisia
Sustainability to position itself as the third country in terms of olive acreage.

 The actors in the organic farming sector include the Technical Centre for Organic Farming, which plays a central role in
supervision, assistance and promotion.

 A strategy has been established for the 2020 target five-year plan (2015–2020) for the development of the organic farming sector

 Broad varieties of olives cultivated in different regions of Tunisia, which allows for the potential to develop a label or certificate
Origin of origin

 Extra virgin oil corresponds to 75% of overall Tunisian production*.

Quality &  Tunisia is getting recognition worldwide with export destinations broadening – 45 countries in 5 continents: over the Atlantic
Health (USA & Canada), the Far-East (China, Malaysia, Japan…), in Australia and in the Middle-East.

 As well as increasing recognition of the Tunisia olive oil through winning awards.

 Broad varieties of olives cultivated allowing for blends: Chemlali and Chetoui (main varieties cultivated), Oueslati, Zarrazi
Flavour  Picking and pressing the olives separately, and then blending the oil from the different varieties to get the best balance and flavour
 Tunisia is a large producer of a variety of spices and aromatic plants that can be infused in olive oil to add flavour
* according to the trade standard of the International Olive Council (IOC) for the classification of olive oil
Defining the Tunisia Offer
Case studies – differentiating the product

 Olive oil manufacturers are seizing the

opportunity coming from the demand for La Española - Saffron, Curry and Cinnamon Oils
flavoured olive oil. Some of companies Olive oil with a difference: Spanish brand La Española recently
differentiate themselves using loc.al products launched its saffron, curry and cinnamon-infused oils. These will
 Furthermore, different product format are sit alongside the company’s White Truffle Oil, which is currently
offered with Adesso offering a for use as the only infusion La Española sells in this country. With the
dressing. cinnamon and saffron oils, the brand says it hopes to tap the
desserts and baking markets, while the curry infusion is aimed
at Britain’s increasingly adventurous home cooks.
Price: (rsp £2.50/250ml).
The Garlic Farm
Specialised in flavoured olive oil www.laespanolaaceites.com
with local products from the Isle of
Wight Adesso - Piri Piri Olive Oil
For use as a dressing, dip or marinade, this piri piri extra virgin
Luxury extra virgin olive oils include olive oil differs from most other piri piri sauces as it contains no
those with added flavours, such as water and so can be kept at room temperature. Adesso, which
Luxury Extra Virgin Olive Oil with produces own label oils alongside its branded ranges, says piri
Truffle & Garlic from The Garlic Farm, piri’s popularity is on the rise, thanks partly to the growth of
which launched in 2017. Nando’s.
Price: £7.95 Price: rsp £5/220ml
www.thegarlicfarm.co.uk www.adessodeli.co.uk
Defining the Tunisia Offer
SWOT Analysis

STRENGTHS WEAKNESSES
 Competitive price  Don’t have the recognition of the Italian or Greek oil
 Competitive production cost  Further away from the UK, compared to other EU exporters
 As excellent quality international recognition (extra virgin oil)  Tough competition from already well established competitors from Spain
and Italy
 Olive trees less subject to diseases than European competitors
 Tunisian olive production fluctuates considerably from one year to the next
 Broad varieties of olives cultivated: Chemlali and Chetoui (main
varieties cultivated), Oueslati, Zarrazi

OPPORTUNITIES THREATS
 Increase the awareness of the health benefit of the Tunisian Extra  Higher selling prices in olive oil (due to poor harvests) resulted in some
virgin oil trading down to cheaper cooking oil alternatives
 Add locally produced herbs and species in the olive oil to build a  Increasing competition in higher quality olive oils
Tunisia brand
 Average output in Tunisia is still well below potential: It is
estimated that the north and the centre could triple, and the south
double, its production. Oil mills are often under-used, particularly
in years of low production. While this is aggravated by the
seasonal nature of production, it should be noted that, even in
years of good harvests, the presses rarely operate more than 90
days a year
2. UK Export Opportunities: Processed Tomatoes
Section Summary
Summary of key trends and facts are presented below.  The competition of organic tomato products is growing fast with
new launch of products, however consumer demand for new
products exist.
Market Size & Opportunity
 The UK is the largest importer of processed tomato products, with Implications for Company Marketing Strategy
Italy supplying for more than half of its demand.  Consumers' need for information is on the rise. They increasingly
want to know by whom a product is produced, where exactly it
Market Consumer Trends comes from, and what you can do with it (recipes). People are
also sensitive to a product's reputation. In short, it is increasingly
 Tomato products being mainly packed in tins, consumer’s views on
essential to inform consumers as completely and transparently
tins as packaging is of importance.
as possible.
 Consumers are increasingly looking to organic as a signifier of
 Add something personal by sharing openly and honestly the the
health, particularly among younger demographics. This is resulting
stories of your growers for examples, providing their pictures.
in an increasing demand for organic food overall, including in
organic canned and packaged goods which were up 6.6%. o Show the face of a grower
 In recent year, trade of tomato has been increasingly quality o Share recipes
driven, with a shift in consumption patterns towards elaborate o Use of social media for reactions and bringing in consumer
products that require smaller volumes of raw materials. own recipes - all linked to your shopping list.

Competition Challenges for Tunisian Exporters

 Overall, the competition on the market is tough, with well  Buying local is a very important trend right now in the UK, and this
established Italian companies and private labels from all major include fresh tomatoes. This could affect the processed tomatoes
retailers, offering products on all segments: premium products, segment in the future.
organic, medium and low cost.  Tough competition on the UK market with already well established
 However, the two recent “Italian affairs” related to false labelling on brands from Italy and Spain and retailer’s own brands.
raw material source and un-ethical employment of migrant workers
is giving an opportunity for new exporters in the market.
Definition

 The product area includes:

o Chopped and peeled tomatoes, tomato paste, sundry tomatoes, tomato
paste, tomato soup
o This includes tomato products in tins, jars as well as in plastic
containers.
 The report excludes:
o Fresh tomatoes
o Tomato sauces such as bolognaise sauce
Import and Export Trends
UK Market Size & Opportunity

VALUE VOLUME Consumer Trends

Consumption rising: • British consumers would be ready to pay a premium for a new
£740million 500,000 tonnes approach for company seeking to engage with the entire tomato
supply chain.
Of which one quarter (£190 This is rising but much lower than • Sales of tins are shrinking and dragging down prices across the
million) is British tomato in countries of the Mediterranean entire sector. The future of this sector will depend on the industry’s
production. basin. ability to refresh its image and its production range. The demand for
canned food is not directing consumer demand anymore.

• However, a reaction against plastics, and newly launched

processes with low environmental impact could breathe new life into
the food canning markets.

• In the UK, the Blue Planet television series was a game-changer and
some entrepreneurs have already been exploiting the use of cans
because they are ‘plastics-free.

• The pre-eminence of highly concentrated products has progressively

decreased over the period, giving the opportunity to low- and
DRIVING FURTHER GROWTH medium-concentration products to occupy an increasingly
important place in worldwide trade patterns.
 More quality driven than before
 Ethical production
 Canning market could benefit from consumers fight against plastics
Import and Export Trends
UK Market Profile
UK’s Processed Tomatoes Imports from the World, in Value
UK imports and Volume
UK is World’s
£320million 400,000 600,000
Largest importer
400,000 tonnes
350,000
500,000
 The UK is world number 1 importer of processed tomatoes and 300,000
their value and volume have been increasing relatively steadily for
the last 5 years. 400,000
250,000
 Italy is the major supplier of tomato products with a market share
of more than half.
o However, it is worth to mentioned that Italian products market 200,000 300,000
share has been on a downward trend since 2013
o on the contrary Spanish products have increased their 150,000
presence on UK shelves. 200,000

100,000
Top suppliers :
 Italy (56%), Portugal (12%), Spain (10%), Germany (5%), Greece 100,000
50,000
(4%).

0 0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Value, GBP, thousands (left axis) Volume, tons (right axix)

Source: Trademap – International Trade Center (ITC)

Import and Export Trends
Tunisia Supplier Profile
Tunisia’s Tomato Products Export to the World
Tunisia is the
30,000 35,000
world’s Value of exports
16th largest £10.5million
supplier 30,000
25,000

 Tunisia’s global export share is 0.3%, the main exported product is 25,000
tomato paste 20,000
 The production is almost entirely exported to Libya, however export
20,000
flows are very unstable.
15,000
Top clients: 15,000
 Libya (85%) ; France (4.4%); Canada (1%); Lebanon (0.8%)
10,000
10,000
 It is worth mentioning that fresh tomatoes (not included here)
exported represent about the same volume as tomato products and
include a broader range of clients in the EU since large companies 5,000
are certified (GlobalGAP). 5,000

o France, the Netherlands and Germany cover already 78% of

the tomato fresh export
0 0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Value, GBP, thousands (left axis) Volume, tons (right axix)

Source: Trademap – International Trade Center (ITC)

Import and Export Trends
UK - Tunisia Trade Profile
Tunisia’s Processed Tomato Exports to the UK
Tunisia is the UK’s Value exported
32nd supplier £2.3m  Tunisia exports to the UK (and to other EU countries) are
limited to one-off contracts, suggesting that there is no
proper long term strategy of Tunisian companies to
penetrate the market.
o Consequently, it is important for Tunisian companies
 Despite Tunisia being a large producer of processed tomato and to develop a strategy to sales their products into the
grower of tomatoes, its exports are relatively low and almost world largest importers of processed tomato
entirely directed to neighbouring countries (Libya particularly). products.
 Also, whereas Tunisia’s global export market share for processed
tomatoes is 0.3%, its market share in the UK only represents
0.02%, suggesting an important potential for Tunisia to
increase its exports.
 If Tunisia was to reach the equivalent of its world market share
(0.3%), this would amount £9.6million

Source: Trademap – International Trade Center (ITC)

Import and Export Trends
Competition Landscape
 Despite the fact that many countries have a tomato processing
industry, the production is highly concentrated - the 10 largest
Country Profile Export Import Consumption Production
producing countries accounting for 84% of the world’s output.
rank* Rank* Rank* rank**
 Italy is defending its leadership as the largest exporter of Spain E+C+P 4 21 10 4
canned tomato in the world, accounting for 78% of all trading
Turkey E+C+P 7 143 5 5
movements with about 1.3 million tonnes delivered worldwide.
Italy E+I+P 1 7 14 3
The first destination was the UK whose intake increased by 6%
Portugal E+P 5 53 56 6
year-on-year to 250,000 tonnes.
Germany E+I 11 2 16 ns
 Spain ranks second as the largest exporter of canned tomato.
France E+I 13 4 18 ns
With 124,000 tonnes traded, it represents just 7% of the global
Netherlands E+I 12 6 44 ns
exports. Unlike all the other main processing countries, Spain
recorded a decline in shipments (-7%) linked to a dwindling of UK E+I 26 1 17 ns
demand from the UK (-2.5%) and France (-8%) as both Tunisia P 16 186 24 10
preferred the Portuguese origin. Greece E 9 46 23 14
Egypt C 22 74 5 16
 Spain hasn’t got a strong canned industry. Most of the
production for retail is for internal consumption and the sector is Morocco - 30 64 30 ns
focused on production in bulk for industrial reprocessing. Ukraine - 14 126 12 12
Algeria - 107 22 21 11
 Portugal: Exports of canned tomatoes from Portugal showed a
E: Exporter (Top 10) European Source: ITC; FAO
double-digit increase for the third consecutive year. The main
I: Importer (Top 10) Non-European
element behind Portugal’s steady growth is an increase in C: Consumer (Top 10)
intake from the UK which reduced its imports from Spain and P: Producer (Top 10) * Based on average value over the last 3 years
Greece, -13% ns: non-significant ** Based on average volume over the last 3 years
 Greece: 2017 was a difficult season for Greek processors who
closed the year harvesting 9% less than expected and who also
experienced higher production costs. Greece also lost UK
market share to Portugal, which applies lower freight costs.
 Evaluating Tunisia Competitiveness
Overview

Scale of Access to
Credibility Cost/Price Quality OVERALL
production the market
RATING

Indicates the Measures the Determines cost Evaluates Indicates the ease
DEFINITION

country capabilities country’s processed competiveness, recognised quality of trade between

in producing tomatoes product looking a producer on the international the UK and the
processed perception on the costs market, looking at partner country,
tomatoes, looking international market, the share of looking at bilateral
at production in looking at the level processed tomatoes trade agreements
volume of exports production in overall and shipping times
production
Evaluating Tunisia Competitiveness
Scale of Production & Credibility

Scale of
Credibility
production
Production* Share Score Exports* Share Score

Tunisia 737,000 1.9% Tunisia 11 0.3%

Italy 5,191,000 13.4% Italy 1227 38%

Portugal 1,556,000 4.0% Portugal 170 5.3%

Spain 3,059,000 7.9% Spain 282 8.7%

Turkey 2,233,000 5.8% Turkey 135 4.2%

Greece 447,000 1.2% Greece 47 1.5%

* 1,000 tons Source: AMITOM * 1,000 GBP Source: Trademap – International Trade Center (ITC)
 Italy, The government has approved a decree for the  The second largest exporter of canned tomato is Spain with
mandatory specification of the origin of the raw material for all 124,000 tonnes traded, just 7% of the global exports. Unlike all the
tomato products processed in Italy. The aim is to dispel any other main processing countries, Spain recorded a decline in
doubt on the safety and quality of the final product, after shipments (-7%) linked to a dwindling of demand from the UK (-
European media reported the practice of mixing Chinese and 2.5%) and France (-8%) as both preferred the Portuguese origin.
domestic tomato paste.
 In the south, industry organisations have started the procedure
for the recognition of a PGI for Italian canned tomato,
 Evaluating Tunisia Competitiveness
Cost / Price & Quality

Cost/Price Quality
Productivity Operation cost Score Factor affecting Score
(output/ha) freshness, ripeness
Tunisia Low Ver low labour cost Tunisia Poor cultivation techniques, however
significant investment for export products
Italy Low High cost labour, Good quality overall (particularly in the
transport cost (fuel)
Italy
north)
Portugal High Medium labour cost, Modern cultivation and harvest technics
high transport cost
Portugal

Spain High Medium labour cost, Spain Modern cultivation/harvest technics

high transport cost
Low Very low labour and Turkey Poor selection process
Turkey
transport cost
Greece Modern cultivation/harvest technics
Greece Very low Low labour cost,
high transport cost

Source: AMITOM Source www.tomatonews.com : www.freshplaza.com ;

The evaluation of the overall cost of production is based on operation The score given on quality has been evaluated based on various impartial
costs (including labour and transports) and productivity. reports, articles and studies. Quality is mainly based on the juiciness,
freshness and ripeness of the tomatoes that are harvested and selected
for processing. Harvest techniques, time/quality of transport from the fields
to the plant, selection process are the main factors that affect the quality
of the final product.
Evaluating Tunisia Competitiveness
Access to Market / Overall

Access to
market

Ease of trade* Score Overall score

Tunisia Trade agreement
Tunisia
Italy EU member +
proximity to market Italy
Portugal EU member +
proximity to market
Portugal

Spain EU member + Spain

proximity to market

Turkey Part of custom union Turkey

Greece EU member + Greece

proximity to market
* Based on Free trade agreement + Shipping time

 Tunisian’s competitors are EU members, at the exception of  Italy clearly stands out of its competitors.
Tukey which is part of the EU customs union.  The competition of the 2nd position is tough, all
o This give a disadvantage to Tunisia, even against competitors showing some advantage in some key
Turkey. areas.
 Tunisia key advantage lies in production cost, it
records an average score in all other areas.
UK Consumer Preferences
What’s on UK shelves?
KEY POINTS
Napolina Chopped Tomatoes 400G Seasons Harvest Premium Finely
– £ 1.00 Chopped Tomatoes 400g • Marketing the origin: “Made
Produce of: Italy – £0.29 in Italy” logo, flag
Packed in: Italy • Traditional method of
harvesting as a guarantee of
“Chopped tomatoes in a rich tomato flavour “hand selected”
juice. Napolina tomatoes are grown
in sundrenched Italy by local • Emphasis on flavours:
sweetness, ripeness,
Chopped/Peeled tomatoes

farmers, which means that we get

Tesco Italian Chopped Tomatoes 400G – juiciness
the best quality fruit ripened and
£0.88/kg
sweetened under the Italian sun.” • Locally grown tomatoes by
Produce of: Italy
Packed in: n/a local farmers.

“Hand selected at their sweetest”

Seasons Harvest Premium Finely
Chopped Tomatoes 400g – £1.25/kg
Produce of: Italy
Packed in: Italy

“Made in Italy”

“We select only the juiciest vine

tomatoes, grown to perfect ripeness on
southern Italy's sun-drenched plains, for
authentic Italian flavour every time you
Cook Italia!”
UK Consumer Preferences
What’s on UK shelves?
Tesco Sun Dried Tomatoes 285G– Morrisons Sundried KEY POINTS
£1.21/100g Tomatoes 82g – £2.66 per • Association of flavour with
Produce of: Italy 100g authenticity and
Packed in: n/a Produce of: Italy adventure/discovery
“Sundried tomatoes in a sunflower oil Packed in: UK
marinade with extra virgin olive oil • Differentiation in the type
(1.5%), garlic and oregano” of packaging: glass vs
Waitrose Mediterranean plastic container vs plastic
sun dried tomatoes200g pouch
Deli Discoveries Sun Dried Tomato In Oil
200G – £2.09/100g £1.25/100g • Ready to use from the jar or
Sundried Tomato

Produce of: Turkey plastic container

Packed in: n/a • Manageable portion in hard
“Deli Discoveries is a range of plastic container
Mediterranean inspired products that bring Providence Sun-dried
together the finest, authentic ingredients, Tomatoes 280g
sourced from top quality suppliers, in the £1.07/100g
farthest corners of the Med. Our products
capture our passion for adventure with
great tasting food and exciting flavours.”
Waitrose Cooks'
Merchant Gourmet Sun Dried Tomatoes 100g Sainsbury's Sun Dried
Ingredients sundried
– £1.50 per 100g Tomato Antipasto Oil 280g
tomatoes 80g
Produce of: n/a £1.33/100g
£2.87/100g
Packed in: UK
“Our deep red Sun-Dried Tomatoes are
wonderfully rich and sweet in flavour, as
they've been left to intensify in the sun after
ripening. Mediterranean warmth to your meal.”
UK Consumer Preferences
What’s on UK shelves?
Essential Waitrose Double Concentrated Sainsbury's Tomato Puree, KEY POINTS
Italian Tomato Puree 140g – £0.36/100g Double Concentrate 142g –
• Individual packaging
Origin: Italy £0.24/100g
Packed in: UK Origin: Italy • Mainly sold in tins but also in
Distributor: Waitrose/OCADO Packed in: na tube
Distributor: Sainsbury’s • Origin of the tomatoes is
“packed from fresh using Italian clearly marked with a flag
tomatoes” (Italian flag) or a label (100%
Mutti Parma Double Concentrated Tomato Italian tomatoes
Paste 140g – £57.1p/100g • KTC is selling large tins
Origin: Italy online, up to 4.5kg
Tomato paste

Packed in: na Mutti Tomato Puree 130g – £88.5p/100g

Distributor: OCADO Origin: Italy
“obtained by evaporating the juice of red, ripe Packed in: na
tomatoes, according to an ancient, natural Distributor: OCADO
recipe. Gives to each dish that authentic
flavour and colour. 100% Italian tomatoes
certified production”
Napolina Double Concentrate Tomato Cirio double concentrated tomato
Puree 142G – £70.5p/100 puree4x70g – £44.7p/100g
KTC Tomato Paste Double Origin: Italy Origin: Italy
Concentrated - 800g – £4.58 Packed in: Italy Packed in: EU
Origin: Italy Distributor: XX Distributor: Waitrose/OCADO
Packed in: na Sales pitch:
Distributor: EatBig.co.uk ; eBay ; “Made from concentrated tomatoes for a
Amzon etc. rich tomato flavour, Napolina tomato
purée is ideal for use in soups, casseroles
and a variety of sauces.”
UK Consumer Preferences
What’s on UK shelves?
Tesco Organic Italian Chopped Tomatoes 390G – KEY POINTS
£0.20/100g • The offer of organic processed
Produce of : Italy tomatoes are sold in tin (for
Packed in: na chopped tomatoes) as well as
Retailer: Tesco in jar (for purees)
“Juicy organic tomatoes, grown in Italy, chopped and
canned in natural juice”

Biona Organic Chopped Tomatoes 400g – 29.8p/100g

Produce of: Italy
Distributor: E-commerce (Amazon, Ocado etc) and
specialised shops
Organic

“These organic tomatoes are grown on farms selected for

their premium organic crops and their sustainable
farming methods.”

In April 2018, Mr Organic launched a new line of four-

Waitrose Duchy Organic tinned pack 400 gram canned chopped tomatoes.
chopped tomatoes in natural juice
400g – £0.22/100g
“This is our first step to offer organic multi-packs to the
Origin: Italy
consumers, after checking the generalised acceptance
Packing: UK
of organic tomato-based products in UK,”
Distributor: Waitrose

“Juicy organic tomatoes, grown in Marketing director of Mr

Italy, chopped and canned in Organic, Romina Callwitz
natural juice”
UK Consumer Preferences
What’s on UK shelves?
KEY POINTS
Unearthed slow roasted sun-drenched Heinz Cream Of Tomato Soup –
£0.95 • New recipes: “slow roasted”
tomatoes180g – £1.94/100g
Produce of: Turkish & Chilean Produce of: na • No artificial preservatives
Packed in: UK Packed in: na in the Heinz tomato soup.
Distributor: Tesco
Other

“Alchemy occurs when the humble cherry

tomato is roasted low and slow. The “No artificial preservatives”
flavours deepen and intensify in a way
that seems to enhance pretty much any
accompaniment. We discovered these
particular tomatoes in Turkey and Chile,
where the producers simply halve them
and let the oven do the rest.”
UK Consumer Preferences
What’s on UK shelves?
La Doria, founded in 1954. Italy-based company engaged in the production and marketing of food
products. The Company is primarily active in the manufacture of canned products and juices. Four main
lines of products: Tomatoes, Fruit Juices, Sauces, Pulses. The Company operates through five
Brand: production units and it distributed its products in Italy and abroad, particularly in the United Kingdom and
Scandinavian countries. The company started to export in the UK in the 60’s and in 1998, it takes
control of the company Gerber to become La Doria Ltd (LDH). UK presence: 73 employees and
£310million sales. LDH supplies the large-scale British retailers and distribution chains directly via LDH,
without having to rely on intermediaries.
Tomato Focus: At present the British company is a market leader in the sector of private label tomato-
based products and legumes. Products: Peeled Whole Tomatoes; Chopped Tomatoes; Chopped
Revenue: Variants (with added ingredients such as herbs etc.); Cherry Tomatoes, San Marzano Tomatoes;
£590million
Passata, Soffritto and Sugocasa; Purees and Pastes; Pasta Sauces. Packaging: canned and bottled.
Distributors: Morrisons; Tesco; British Corner Shop; OCADO
Websites: UK: www.ldhltd.com / Global: www.gruppoladoria.it

The Napolina brand was established in Italy and launched in the UK in 1965. in 2001, the brand was
acquired by the Princes Group (subsidiary of Mitsubishi Corporation). Napolina/Princes imports and
distributes food produces, including tomatoes, pasta and olive oils to sauces, pulses, pizzeria, and
Brand:
grated cheese. Tomato focus:
Market share: number 1 canned tomato brand in the UK (source: IRI) Products: Peeled Plum;
Tomatoes Chopped Tomatoes (including Organic and with added ingredients); Cherry tomatoes;
Organic; with herbs. Production & Packaging: canned, sieved, or crushed in Italy (Foggia facility).
Distributors: British Corner Shop; Morrisons.com; Sainsbury’s; Tesco Grocery; Waitrose & Partners;
OCADO.
Websites: Napolina: www.napolina.com / Princes Group: www.princesgroup.com
UK Consumer Preferences
What’s on UK shelves?

Cirio, founded in 1856 in Turin (Italy), is owned by the Consorzio Cooperativo Conserve Italia (£770million
turnover, 55% from exports) which produces over one million tonnes of finished goods packaged in 10
Brand:
production plants in Italy (50Km from the fields).
Tomato focus: 100% Italian raw produce, tomatoes are processed from fresh in 24h.
UK presence: 11% share of the British market, tomato products of the Cirio brand (owned by the
Consorzio Cooperativo Conserve Italia) are among the emblematic products of the "Made in Italy" food
industry. The Italian group is hoping to consolidate its position by carrying out further investments in this
market. Type of products: (finely) Chopped tomatoes; Peeled Plum tomatoes; Sieved Tomatoes; Rustica
sieved tomatoes; Passata in PET bottle; Pasta sauces; Tomato puree; Tuscan range; Pomodorini;
Datterini; Filetti; Pizza sauce.
Marketing campaign: In order to consolidate its presence, Conserve Italia has recently launched a
communication plan that includes the television broadcasting of an advertisement on the main British TV
channels and a marketing campaign, promoting the integrated and 100% Italian manufacturing of Cirio
products. Distribution: Cirio handles its own distribution in the UK. Cirio products can be found in the
stores of the biggest retail chains in the UK, like Tesco, Morrison's, Sainsbury and Waitrose, covering
about 65% of the market, as well as in a number of traditional local shops and retail outlets, most often
found in big cities.
Website: UK: www.cirio1856.co.uk / Global: www.conserveitalia.it

Mutti, founded in 1899 in Parma (Italy), is a major producer of tin tomatoes. The company has been
recording impressing growth for the last decade, form $€43million revenue in 2004 to €260 million in 2016.
Strategy: Mutti has updated the designs on its Peeled Tomatoes and Cherry Tomatoes to help
premiumise the category and better convey the improved quality. Mutti aims to communicate the benefits
of canned foods’ ease of use, ease of storage, and health benefits as well as their deep-rooted
provenance and brand heritage. Website: www.mutti-parma.com
UK Consumer Preferences
In quotes – based on our desk research

“Winning an European Food Safety Authority

(EFSA) health claim will drive consumer interest “Princes now hopes to take a leading role in creating an “open and
towards tomato products” collaborative approach that seeks to engage with the entire tomato
supply chain”. The hope is that shoppers will be prepared to pay more for
this approach. “Napolina’s role as an everyday premium proposition
David Sutherland, founder and general encourages consumers seeking quality to trade up”
manager of the Tomato Foundation

Neil Brownbill, commercial

director at Napolina
“The humble tin could gain a new lease of life.
There’s a real opportunity to galvanise the
category.””
““What if we were able to bring this same thinking to the
Alex Hamilton, senior strategist at masses by reviving vintage tin can packaging, and
design agency Brandopus emphasising features such as the opening mechanism, to
create a more engaging and authentic experience?”.””

“Heinz is a masterbrand that cues high quality, brings trust

and warmth for consumers and has iconic brand assets. Chris Jenkins, structural director at
Whatever we do under the Heinz name must be true to these brand design agency Bulletproof
elements.”

Steve Chantry, Commercial

director of Heinz UK
Defining the Tunisia Offer
Key Points

 Experience of Tunisia in bio agriculture in olive oil should be expanded to tomato growers
Sustainability  There is an opportunity to showcase the impact of tomato industry on local communities, how your product is supporting the
lives of tomato growers, processors etc throughout the supply chain.

 Tunisian exporters should be transparent and demonstrate integrity regarding their supply chain and work condition of their
own and supplier’s employees as revelations of unethical practices can hurt the business badly. This has become even more a
concern following the recent affairs presented below:
o 2 large Italian companies suffered from with the revelation of non-ethical employment of migrant farm workers. In response
to that, Princes Group (Cirio) is seeking to gain supply chain ethical accreditation by the end of 2018, Global GAP GRASP
Origin (Good Agricultural Practice).
 Increasing British consumers show preference for domestic products and British tomato growers are increasingly active. This
particularly affects exporters of fresh tomatoes but could affect non-European tomato processors in the future.
o Tunisian exporters of tin tomatoes should consider to locate the packaging in the UK or Europe or build partnerships with
British/EU companies to be able to market some UK content.

 Quality of the final product is often related to the raw material and its source. This is especially important in the tomato industry
Quality & since the Italian affairs of Chinese and US tomatoes being re-packed in Italy to be sold on the EU market with the Italian label.
Health o This has resulted in companies launching campaigns to show the reliability of their suppliers and showcasing their close
relationships with their local tomato growers. This is important for Tunisian processors to build a trusted brand which guarantee
the quality of their products.

 Particular emphasis on freshness, juiciness, ripeness of the product at the time of the harvest.
Flavour
 Broad range of tomato varieties that can be used to adapt to consumer tastes.
Defining the Tunisia Offer
SWOT Analysis

STRENGTHS WEAKNESSES
• Tunisia ranks 10th in worldwide production of tomatoes • Field sizes too small (mostly 1-2ha), and poor cultivation techniques
• The natural light in Tunisia is better for tomato production than in • Variability in price
Spain
• In processing, choice of variety is not based on consumer preference
• The humidity in Tunisia is not too high
• Tunisia is not marketed very well as a potential country for agricultural
• Tunisia is the largest consumer of tomatoes in the world production
• Tunisia brands don’t have the support of large food processors alike
Princes, Mutti, Conserve Italia, La Doria

OPPORTUNITIES THREATS
• Domestic and foreign investments in Tunisia are increasing, • Strong competition from Italy, Spain on the UK market
improving production processes and tomato quality, leading to • Turkey could become an increasing competitors
more exports to the UK
• Depreciation of the British pound would make imported products dearer.
• Environmental issues are put on the political agenda recently,
supported by financial incentives. This opens doors for waste • Increasing competition from relatively newcomers such as Germany and
treatment investment. the Netherlands.

• UK’s departure from the European Union without a deal would • Increasing consumer preference for British tomatoes.
improve the Tunisia position.
• Recent scandals in the Italian tomato industry has impacted its
exports, this gives room for Tunisia exporters.
• Tunisia exporters could benefit form locally grown herbs and
spices to differentiate their products and enhance product flavour
2. UK Export Opportunities: Dates
 Section Summary
Market Size & Opportunity Demand and Pricing
 Dates are typically regarded as premium products and have seen increased
 Trade value (£4.9m) and volumes (2.0 tonnes) of Dates demand globally as a result of incremental price increases.
into the UK from Tunisia has declined significantly, by  Prices of dates have increased over the past several years as a result of
18% and 20% respectively from 2016 to 2017. lower yields, which is mainly due to fungal diseases and pests, in addition to
climate changes which have constrained global supply.
 These Statistics however do not reflect the overall However, Demand has continued to rise, particularly in Europe, as a result of
trading trend in the long run. changing consumer preferences for premium food items.
 Over the past 25 Years, both value and volume of  Moreover, the depreciation of the Pound has also driven up the cost of
imports have grown significantly, which a CAGR of imports, which directly impacts dates, since they are not produced in the UK.
3.62% and 3.23% respectively. As a result, retailers have had to increase prices for consumers. However,
retailers have strategically re-positioned dates as healthy snack and an
 A decline of this magnitude appears to be an anomaly, alternative ingredient in recipes.
which is largely attributed to the Brexit referendum
results of 2016, which had a significant impact on UK Consumer Preferences
trade relations.  Health conscious consumers are concerned about refined sugars in their
snacks.
 The UK has taken a number of measures to reduce the populations sugar
intake, including imposing a sugar tax in addition to regulatory changes,
forcing manufacturers to display the nutritional contents of their food.
 Dates are naturally sweet and have numerous documented health benefits
and are used as a healthier snack substitute.
Definition – Whole Dates
Popular types of dates in Europe include that are traditionally
produced in Tunisia include:

“Dried” dates are not necessarily dehydrated

Medjool dates deliberately, instead they simply contain low levels of
Medjool dates, are harvested early in the ripening season, moisture when ripe. This makes them better to use as
which means they are moist, with a soft texture, as a result they ingredients as opposed to consuming directly.
tend to be rich and sweet. This makes them ideal for
consuming directly. Viewed as being of high quality. Deglet Nour and Medjool are important varieties due
to their rich taste, flavour and superior quality.
Deglet Noor dates
Deglet Noor dates have distinctive characteristics which “Common dates” is a generic term that is used when
distinguish them from other dates, they are typically Sweet with referring to several sub-categories of dates that are
a soft honey-like taste whilst and Semi-dry, with a light not Medjool or Deglet Nour.
translucent colour.
Most dates often have to undergo some form of
processing before they are consumed or used as
Zahidi dates ingredients, this commonly consists of pitting.
Zahidi dates are semi-dry, with a sweet and sugary taste.
They are used for both direct consumption and as ingredients,
particularly within healthy snacks.
Definition – Dates as Ingredients
 According to a study conducted by the Food Agriculture Dates are popular ingredients in a number
Organisation, 45% of the dates that are imported into of culinary recipes, including:
the UK are used as ingredients in home baking.
 Healthy snack bars
 These varieties of dates are typically dried, pitted and  Cereals
diced into fine segments, and are often purchased in  Appetizers
this state for the consumers convenience.  Desserts

 A sizable portion of date imports are also used as Dates are used as a substitute to refined
ingredients within the food manufacturing industry when sugar due to their naturally sweet taste
preparing ready meals for commercial purposes, hence
they don’t go directly to consumers. These dates will Premium varieties of dates that have
also be processed according to their intended use in higher moisture levels when ripe, such as
recipes. Medjool dates, are typically consumed
directly
 Only small quantities of dates, that are characteristically
of premium quality, are used for direct consumption.

The Demand for dates is typically seasonal in Western Europe

and is concentrated around the festive period
Import and Export Trends
Overall Global Trends

 The production of dates is concentrated around the

Mediterranean region, due to its geographically
advantageous and climactic conditions.

 Tunisia is the world’s biggest exporter of dates in terms

of value. In 2017 it exported around $229 million worth
of dates. Israel ($180m) and Pakistan ($107m) are other
large exporters.

 In terms of volume, Pakistan is the biggest exporter of

dates, with more than 175,000 tons. Tunisia ranks
second with 104,000 tones, whilst Israel is ranked third,
exporting 53,000 tons.

 Egypt is the largest producer of dates in the world with

around 20% of global production. However, despite its
large output, Egypt accounts for approximately 3% of
the world exports of dates. At 15% Iran is the second-
biggest producer of dates and Saudi Arabia is ranked
third, accounting for 14% of global production.
Import and Export Trends
UK Market Size & Opportunity

VALUE VOLUME Import Trends

• France is a popular import destination due to its geographical

£58.23million 21,951 tonnes proximity to the Mediterranean producers, hence it is often utilised as
Geography a hub for importing goods into the customs union, which are then re-
exported throughout Europe.

• As a result, its imports statistics are artificially inflated and are

significant higher than its European counterparts. The United
Kingdom and Germany are the 3rd and 4th largest importers in terms
of Volume, accounting for around 2.71% and 2.51% respectively.

• The Top global importer of dates is India which accounts for 46% of
world imports, meanwhile the worlds second largest importer, France,
accounts for a mere 4.6%, or roughly 1/10th of India's imports of
dates.

The United Kingdom is the 2nd Largest importer of dates in

Europe
Import and Export Trends
UK Market Size & Opportunity

Tunisia
Proportion of World Exports Proportion Of UK Imports

26% of World
Exports 8.35% of UK
Imports

Israel

20% of World
Exports 26% of UK
Imports
Tunisia Israel Pakistan Israel Pakistan USA
USA Algeria Egypt Tunisia Saudi Arabia Algeria
Other Other
 Import and Export Trends
UK Market Profile

UK Trade with the World

UK position UK is World 60,000 24,000

globally 4th client

55,000
22,000

50,000
20,000
 In Value, the UK imported $58.23m of dates from the
45,000
World in 2017, ranking 4th worldwide and 3rd in Europe,
18,000
behind France and Germany.
40,000

 In Volume, the UK imported 21,951 tonnes of dates from 16,000

35,000
the world in 2017, ranking 7th worldwide and 2nd in
Europe, again behind France. 14,000
30,000

 Imports have growth relatively consistently over the past 25,000

12,000
several years, indicating that the market for dates is
growing in the UK.
20,000 10,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Left Axis: Trade Value (Thousands US$) Right Axis: Netweight (Tonnes)
Import and Export Trends
Tunisia Supplier Profile

Tunisia is Worlds Largest Supplier Tunisia Trade With World

by Value 240000 120000

 When measured volumetrically, Tunisia Exported 104,357 Tonnes

220000 105000
of Dates in 2017. This is places Tunisia 2nd on the world scale,
behind only Pakistan.

 When measured by value Tunisia is the worlds largest exporter,

as in 2017 it exported $229M worth of dates. 200000 90000

Export Rank
180000 75000
Destination Volume Value
Morocco 1st - 25,684t 1st - $49.25M
France 2nd - 10,242t 3rd - $18.68M
160000 60000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Germany 3rd - 7,877t 2nd - $21.85M
Italy 4th - 6,672t 6th - $15.70M Left Axis: Trade Value (thousands USD) Right Axis: Trade Volume (Tonnes)

Spain 5th – 6,023t 4th - $15.91M

Import and Export Trends
UK - Tunisia Trade Profile

Tunisia - UK Trade
Tunisia is the UK’s 4th largest supplier 6000 2400

5500
2100
 In 2017, the UK Imported 1,856 tonnes of dates from
Tunisia. This ranked Tunisia in 4th place, behind 5000
Pakistan, Iran and Israel. 1800

4500
 When measured in Value, the UK imported $4.16M, 1500
which again placed Tunisia as the UK’s 4th largest
4000
trading partner, behind Israel, Pakistan and USA.
1200

 Over the Period 2016 to 2017, both trade value and 3500

volume have declined, however this is not accurately

900
reflect the strength of the UK-Tunisia Trading 3000
relationship.
2500 600
 Overall, from 2008 to 2017, both Volume and Value 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

have increased at a CAGR of 7.67% and 2.69% Left Axis: Trade Value (Thousands USD) Right Axis: Trade Volume (Tonnes)

respectively.
Import and Export Trends
Major Current UK Suppliers
In terms of value, Tunisia is the worlds largest exporter of dates, accounting for approximately 26% of the worlds share, however,
it only accounts for roughly 8.35% of UK Imports. Meanwhile Israel, the worlds second largest exporter by value, accounts for
over 26% of UK imports.

Geography Export to World Export to UK

Africa Value Share Value Share Trend*
 Tunisia $230M 26% $4.8M 8.35% 120%
 Algeria $52.3M 5.9% $0.3M 0.5% 75%
 Egypt $32.6M 3.7% $0.07M 0.1% 115%

Asia
 Israel $181M 20.5% $15.6M 26.7% 126%

 Pakistan $107M 12.2% $8.0M 13.8% 170%

 Oman $18.2M 2.0% $0.06M 0.1%
 Jordan $12.8M 1.5% $0.89M 1.5% 283%
 Turkey $7.8M 0.9% $0.91M 1.5% 7%

Both Africa and Asia combined produce over 96% of the world’s dates.
 Evaluating Tunisia Competitiveness
Overview

Scale of Access to
Credibility Cost/Price Quality OVERALL
production the market
RATING

Indicates the Measures the Determines cost Evaluates Indicates the ease
DEFINITION

country capabilities country’s date competiveness, recognised quality of trade between

in producing dates, product perception looking a producer on the international the UK and the
looking at on the international costs market, looking at partner country,
production in market, looking at the price per looking at bilateral
volume the level of exports kilogram of dates trade agreements
that have been and shipping times
imported
Evaluating Tunisia Competitiveness
Scale of Production & Credibility

Scale of
Credibility
production
Production* Share Score Exports* Share Score

Tunisia 241 2.8% Tunisia $4.86M 8.35%

Egypt 1690 20% Egypt $0.07M 0.12%

Iran 1070 12.6% Iran $3.65M 6.27%

Algeria 1030 12.2% Algeria $0.29M 0.51%

Saudi Arabia 965 11.4% Saudi Arabia $3.76M 6.45%

Pakistan 495 5.8% Pakistan $8.06M 13.85%

*1,000 Tonnes *Value to the UK market

 Egypt is the worlds largest producer of dates, as it accounts for 20% of

 Tunisia is the 4th largest exporter of dates to the United Kingdom,
the global share, however, it only places 8th in terms of export volume,
behind Israel, Pakistan and the USA. However, when compared to
whereas Tunisia produces only 2.8% of the worlds dates, yet is the
the other largest producers, it consistently outperforms, holding a
worlds second largest explorer in terms of volume.
larger proportion of the market share.
 Tunisia has a relatively small endowment of fertile land in relation to its
other much larger competitors.
 Evaluating Tunisia Competitiveness
Cost / Price & Quality

Cost/Price Quality

Producer cost* Score Price Per KG Score

Tunisia $1582.40 Tunisia $2.42

Egypt $269.50 Egypt $3.00

Iran $785.10 Iran $1.34

Algeria $3517.80 Algeria $1.83

Saudi Arabia $3403.10 Saudi Arabia $2.31

Pakistan $657.30 Pakistan $1.13

*Production Prices per ton

 Tunisia has relatively moderate production costs when compared to some of  The quality of produce was measured by the price per kilogram of
the worlds largest producers. However, these costs have declined by 5.9% imports into the UK. Typically, higher prices are indicative of higher
over the past year, which contrasts with Iran, whose costs have actually quality, hence we can deduce that Tunisia’s exports are of higher
increased by over 42%. Production costs of Algeria and Saudi Arabia have quality when compared to some of the worlds other large exports.
both declined by 4.8% and 5% respectively. This inference is based om commentary from
 According to the FAO, Tunisia is not utilising its existing agricultural land to http://www.fao.org/docrep/006/Y4360E/y4360e07.htm
full capacity. This suggests that production costs per tonne could be reduced
through more efficient resource allocation.
Evaluating Tunisia Competitiveness
Access to Market / Overall

Access to
market
Ease of trade* Close Score Overall score
(Trade Deal) Proximity
Tunisia
Tunisia  
Egypt
Egypt  
Iran
Iran  
Algeria
Algeria  
Saudi Arabia   Saudi
Arabia
Pakistan   Pakistan

 Tunisia, Egypt and Algeria are all members of the Euro -

Mediterranean trade agreement, which, along with their
geographical proximity to the market, gives these countries a
distinct advantage over their competitors.
 UK Consumer Preferences
What’s on UK shelves?

KEY POINTS

Medjool Dates are typically

Medjool Dates Medjool Dates marketed as premium products
Weight: 400G Weight: 500G relative to the various date sub-
Retail Price: £4.50 Retail Price: £4.00 categories
Origin: Israel Origin: Israel
Packaged: Israel Packaged: Israel In order to differentiate Medjool
Medjool Dates

from “common Dates”,

manufacturers will typically
increase the expenditure on
product packaging.

This type of decorative cardboard

packaging is referred to as “trays”
in Europe and is used to inform
consumers that they are a luxury
Sainsburys Medjool Finest Medjool item.
Dates Date Tray
Weight: 275G These dates are intended to be
Weight: 500G
Retail Price: £6.00 consumed directly, and won’t be
Retail Price: £4.50 Origin: Unknown used as ingredients.
Origin: South Africa
Packaged: UK
 UK Consumer Preferences
What’s on UK shelves?

Deglet Nour Dates KEY POINTS

Weight: 200G
Deglet Nour Dates
Retail Price: £1.50
Weight: 225G In terms of their premium
Origin: Tunisia status, Deglet Nour dates
Retail Price: £2.09
Packed in: Tunisia are typically positioned
Deglet Nour Dates

Origin: Tunisia below Medjool dates, but

above common dates in
the marketplace.

This is indicated by the

expenditure on their
packaging, which is
Deglet Nour
Dates Deglet Nour evidently superior to the
Dates basic, standardised plastic
Weight: 227G packaging used for
Weight: 400G
Retail Price: common dates, yet
£1.50 Retail Price:
sufficiently inferior to the
£3.00
Origin: Tunisia trays used for Medjool
Origin: Tunisia Dates.
 UK Consumer Preferences
What’s on UK shelves?

Dried Pitted Dates

Dates
Weight: 250G KEY POINTS
Weight: 200G
Retail Price: £2.25 Retail Price: £1.00
Origin : North Africa Origin: Tunisia
“Common dates” are not
Packaged: Turkey
Common Dates

marketed as luxury products

in comparison to their
Medjool or Deglet Nour
Counterparts.

As a result, manufacturers
Soft Pitted Dates will not spend excessively on
Dates packing.
Weight: 250G
Weight: 200G Retail Price: £2.25 These dates are ideal for use
Retail Price: Origin: Tunisia as ingredients in recipes.
£1.30
Packaged: France
Origin: Tunisia
Packaged: UK
Defining the Tunisia Offer
SWOT Analysis

STRENGTHS WEAKNESSES
 Established exporter in the world marketplace.  High production costs.

 Close geographical proximity to European market  Relative land abundance compared to competitors.
relative to competitors. Other countries have significantly greater land available
for farming and producing dates, Tunisia is at a major
 Member of Euro-Mediterranean trade agreement. disadvantage, therefore it must use the resources more
efficiently if it wishes to compete.

OPPORTUNITIES THREATS
 Improve the awareness of the health benefits that  Lower cost producers in Pakistan, Iran and Egypt
consuming dates provide and position them as healthy appear to be undercutting Tunisian exporters and
snack eroding their market share.

 Productive capacity is significantly below its potential,

by expanding output and improving efficiency, Tunisia
can significantly reduce the cost of producing dates and
increase its market share.