Last year, Central Food Retail recorded a 22% increase in turnover of Italian products. “Italy scored the highest increase among the EU countries, followed by France with 17%, and Germany with 14%”, declares Nick Reitmeier, Executive Vice President of Food Halls and International Buying at the Thai distribution colossus, a giant chain of 199 stores with a total area of 211,000 square metres and 8,000 employees. The result, which translates into a surplus of half a million euro in revenues compared to 2014, is not only linked to increased instore traffic, but to an increase in average receipts. Given their flexibility in terms of travel, the middle and upper classes are showing a growing interest in food products from other countries and are willing to pay a premium price to get them on their tables. Nonetheless, we still need to work hard on raising the awareness of gastronomic culture and food quality.” Despite the attractiveness of the Food Hall brand, which entails an appealing touch of life-style and eight locations (Bangkok with four outlets, Pattaya, Phuket, Chiang Mai, and Bang-na), Reitmeier plays the game on several fronts as for the product offer. In fact, the manager has to deal with local laws and regulations as well as with the competition from restaurant owners and travellers. “Import regulations are very strict. It might take up to three years until local laboratories have thoroughly tested new food products from abroad and receive the FDA’s approval.” From this point of view, it seems that restaurant or stand owners are favoured, as fresh food is not subject to the same constraints.
THE FAST GROWING ITALIAN BRANDS – “We must not forget the masses of Italian travellers, taking some delicacies home with them”, says the manager, winking. Overall, there are about 1,500 grocery and 5-600 fresh food products from Italy under the Central Food Group banner, representing 1% of the total turnover of the group’s business. The most successful products in the first group are snacks, chocolate, and water, while the rank list of fresh foods encompasses cheeses, wines, and meats. “The best-performing brands are Ferrero, Bertolli, Loacker, and Ferrarini for fresh food. While American products constitute the lion’s share of imports on the shelves, Italian fruit and vegetables remain absent. “Due to the lack of an agreement on pesticides used in the European Union, the Thai government tends to protect their crops from potential pests of European origin”, explains the manager, who declares himself attentive to and interested in new proposals. “Specialties, handicrafts, appetizers in jars, and tinned goods certainly have our basic attention. Whereas olive oil is still in its infancy compared to other markets, cheese, such as Parmigiano Reggiano, is among the fastest-growing categories.” The group is also going to be present at Thaifex – World of Food Asia with its own brand stand and in co-operation with Segafredo. Asia’s leading annual food and hospitality show features a five-day showcase running from 25 – 29 May 2016.
