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China's fruit in Spanish supermarkets. |
The Spanish food industry is focused on China as offering the best prospects in 2012, given the universal prognosis of poorer prospects in most European markets.
At the same time, Chinese cuisine is becoming increasingly popular in Spain, with more supermarkets stocking items such as Chinese cabbage, wan ton and dim sum selections.
Over the next few months, Spanish promotions are expected in Hong Kong, and Shanghai, with Hong Kong supermarket chains ParknShop and city'super respectively among the key providers of Spanish delicacies like seafood, tapas and especially olive oil and wine.
Japan's Mitsukoshi and US chain Century Mart are taking promotions for Spanish cuisine focused respectively in the Taiwan and Zhejian provincial retail sectors.
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| China is a major growth market. |
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The value of Spanish food and drink exports to the Chinese mainland amounted to Euros300 million in 2010, an increase of 53% over the previous year, while the first quarter, 2011, saw growth of sales rise a spectacular 89% over the same period in 2010.
Hong Kong's distribution sector is seen by Spanish exporters as a strategically important factor in delivering Spanish food and beverages to the Mainland and other Asia-Pacific markets.
The new impetus for opening the China market to Spanish food and beverages took place last June, when the Spanish Institute of Foreign Trade (ICEX) and the Federation of Food and Beverage Industries (FIAB) signed an agreement, each contributing over Euros500,000 to promote Spanish companies interested in entering the China and Indian markets.
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Introducing Spanish brands in China. |
Trade fairs such as Sial China, HOFEX and Food & Hotel China (FHC) all encouraged traders from Spain and China to do business, while special Spanish stands were organised at Food Taipei, Top Wine China in Beijing and Interwine China in Guangzhou.
Chinese cuisine in fashion
From the opposite trajectory, in just over 10 years Asian foods (including Chinese cuisine) have become extremely popular in Spain, not only in restaurants but as dishes to cook at home.
This has had a tremendous impact on business at specialty Chinese food counters in supermarkets.
There are many stores in the centre of Madrid where quality Chinese products are available at reasonable prices. Some retailers have a long history, such as Far East, situated in Madrid's famed Spain Square.
Far East has been in business for over 30 years. Its most popular products include soy sauce for Chinese dishes and wasabi sauce for Japanese sushi.
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| Goods on sale at El Oriental. |
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But the largest store for Asian food products in Madrid is El Oriental supermarket, where a wide variety of items can be purchased, such as fish pastes, seaweed, Chinese branded beers, rice cookies, snacks, sweets and different teas.
Also available is Chinese cabbage, ginger root, canned vegetables and fruit (such as lichees, chestnuts, bamboo, papaya and coconut), as well as sweet beans, Chinese grapefruit, wan ton, dim sum and frozen spring rolls.
In addition, the store sells chopsticks, plates, skimmers and woks, crockery, cutlery and glassware. There are even decorative products like Chinese lanterns.
Manuel Choy, the owner of El Oriental supermarket, explains: "it is still difficult to bring in some products like okra from China, which has to be bought [in other countries] in Europe with the consequent increase in price."
But Choy says the evolution of the business has been successful because indigenous Spanish consumers are constantly increasing and are even asking for cooking classes and recipes to be included in packaging.
Spain's Gourmet and China's Yanjing
The Spanish wholesale firm Miquel Alimentació has a growing intermediary role in Spanish and China-based food and beverage deals.
After an agreement last October with Taiwan supermarket chain RT-Mart to market the Spanish Gourmet range, Miquel followed up in November by taking over Spanish distribution of Chinese beer brand, Yanjing.
Miquel Alimentació is a leading firm in the wholesale food distribution business in Spain, with a turnover of Euros1 billion. It also operates a chain of 54 cash-and-carry stores under the name Gros Mercat.
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Inside a Miquel Alimentació store.
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Yanjing beer for Spanish market.
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As well, there's a franchise operation under the SPAR brand, and a self-run chain of supermarkets operating under Suma and SPAR and other supermarkets under the name Próxim.
Yanjing's prospects for business in Spain appear to be promising, given the relatively high consumption of beer, although market leaders like Mahou San Miguel, and Heineken are expected to resist the new competition.
Spain is ranked number10 for beer production globally and fourth in the EU while, for consumption, Spaniards drink 52 litres per person annually, more than Italians, Greeks, French and Swedes. Additionally, beer is favoured by many of the 52 million tourists who visit Spain each year.
Mercadona looks to China
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Inside a Mercadona store. |
Although the European sovereign debt crisis is said to have forced Spanish supermarket giant Mercadona to delay its 2012 international expansion plan, experts agree that both it and competitor El Corte Inglés have the best opportunities for growth in China, India and Kuwait.
Mercadona created its "intersupplier" approach to supply chains 14 years ago, essentially turning many of its products into in-store brands. The number of "intersuppliers" currently exceeds one hundred of more than 2,000 external suppliers. But that hasn't been a pivotal lever for overall sales growth most recently.
Global management consultant AT Kearney recently referred to the Spanish retail market as "saturated", with price wars reducing profitability and the rate of return for the business. The company concludes that China holds out by far the best prospect for growth.
from special correspondents Isabel Herrero and
José Alarcón, Barcelona
