Beston Global Food Company Feeds Thai Appetites for Aussie Food
November 2018
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From its headquarters in Adelaide, the Beston Global Food Company (BGFC)
has made fast progress towards fulfilling the ambitious promise of its
name. Founded in 2014, the company has a presence in several Asian
countries, supplying food to consumers who are increasingly interested in
experiencing the clean, safe, high-quality products for which Australia is
well known.
The right place at the right time
Thailand is the second biggest economy in the ASEAN region. The region has
a combined GDP of US$2.4 trillion, a number that is expected to grow
dramatically over the coming decades – with Thailand located at the centre
of this high-growth region.
As the Thai economy continues to grow and incomes along with it, Thailand’s
consumers are increasingly eager to enjoy the fruits of their labour. The
country’s growing middle class has a modest exposure to foreign products.
The imported food and beverage (F&B) sector represents an accessible,
low-cost way to satisfy consumer cravings for new brands and dining
experiences.
BGFC’s insight was to realise that Australia’s clean, green image and
reputation for product integrity would prove to be an attractive starting
point for Thai consumers unsure of how to navigate the world of
international cuisine.
In addition, as a regional and global holiday hotspot, Thailand’s 35
million-plus tourists create a major market for imported products. With the
Thailand-Australia Free Trade Agreement set to eliminate all remaining
tariffs by 2021, Australian suppliers have an added advantage over products
from other competing markets.
With growing markets and reduced costs, BGFC calculated that an expansion
into Thailand would make perfect business sense.
Account for local tastes
Different countries and cultures have varying expectations of what food
should taste like, what type (and size) of packaging they prefer, what
kinds of ingredients they feel comfortable consuming, and other variables.
Thailand in particular has unique tastes in many areas. BGFC’s extensive
research led the company to develop new types of snack cheeses that would
appeal to the Thai palate, while also staying true to its production
methods.
‘Companies looking to establish themselves with new consumer groups must
adapt to the local environment and keep innovating according to local
demand,’ says Jock Tulloch, General Manager, Beston Global Food (Thailand).
Understand the local environment
Exporters of F&B products have to consider each country’s technical and
practical issues before they can establish a successful export business.
Even in Thailand’s business-friendly environment, BGFC needed to
familiarise itself with the country’s regulatory and certification
requirements.
Companies also need local access to high-quality commodities and other
goods, as well as dependable processing and manufacturing partners. The
right local partners can keep costs low and quality high.
BGFC credits support from Thai distributors and the Austrade team in
Bangkok for practical, on-the ground advice and expertise that has helped
the company enter the Thai market effectively. Austrade also facilitated
introductions to potential customers and offered support to promote the
company’s products through retail channels.
An increasingly important element of marketing is about educating consumers
about product features such as the unique taste, potential health benefits
or how to eat or prepare the foods, to make them locally appealing. One
example is promoting Australian cheese during wine tasting to underscore
the premium taste and quality of the brands.
BGFC is now one of Australia’s fastest-growing food exporters and suppliers
in the ASEAN market. It has benefited from advice from local partners
including Austrade. It has taken advantage of free trade agreements which
Australia shares with ASEAN countries, including AANZFTA and bilateral
agreements with Thailand, Singapore, Malaysia and Indonesia. It is riding
the wave of the ASEAN middle class and their growing desire to experience
new food and dining experiences to grow its business.
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