GLOBAL OPPORTUNITY

David Merrefield

In recent months, it seems, American optimism about international opportunities in food distribution has faded a bit. And no wonder. The world's economies have produced more than a little bad news lately: news such as the economic stumbling of Mexico; divisions in Canada; the intractable war in Bosnia; the slow development of a middle class in Eastern Europe; the ongoing cultural differences and consumer perceptions between East and West, and so on. But now is no time to be discouraged about internationalization. To the contrary, there are many favorable global auguries, chief among them being the immensity of opportunity awaiting those with the energy and expertise to make it happen. Perhaps of all regions of the world, the greatest potential is to be found in both mature and emerging economies of Asia.

A news feature about risks and opportunities inherent in doing business in Asia starts on Page 12 of this issue. One observer quoted in the article characterizes markets in Asia as the "last frontier; where the growth is." Another says the Pacific Rim countries are "ready to explode" with economic opportunity.

Many Americans interested in finding opportunity in Asia are making plans to attend the Food Marketing Institute's AsiaMart trade forum to be in Hong Kong Oct. 18 to 20. Tim Hammonds, FMI's president and chief executive officer, gives his views on Asia and AsiaMart in a news article that starts on Page 14. And, for a view on how various retailers see their plans developing for Asia, see Pages 16 and 20.

Meanwhile, what of the situation in Western and Eastern Europe, and beyond?

Countless indications of potential in these and many other areas of the world could be seen at last week's huge Anuga World Food Market in Cologne, Germany. The show, at nearly 3 million square feet and featuring more than 6,000 exhibitors, is considered to be the world's largest event of its type. A report on Anuga, starting on Page 1, demonstrates how areas such as Eastern Europe, Russia and the Middle East are seen by a few American manufacturers and exporters as vast fields for expansion -- and how more might profit by considering such areas.

Finally, another way to look at internationalization is to recognize the similarities of business and social problems as they are manifested in different parts of the world. After all, it's on common ground that business deals are easiest made. Cases in point: Take this quick quiz. Who is speaking here?

"Quality and modern production facilities alone are no guarantee that products will find their way onto shelves of the retail trade. To achieve this also requires refined marketing strategies, an efficient logistics system and an adequate spectrum of services for the trade."

This isn't a quote from our Page 1 feature update on Efficient Consumer Response; it's from a talk given by Germany's Federal Chancellor Helmut Kohl during opening events at Anuga. Now, which industry figure might this be?

"It worries me that there is a tendency toward regulation that may result in stifling the very innovation that made our industry so successful."

This isn't the lament of an American businessman; it's the view of Terry Leahy, a director of Tesco, the British food retailer. He's quoted in a Page 14 report on CIES' Food Marketing Conference in Berlin, Germany, last week. Or, guess who offered these two observations about society:

"In recent years, the federal government, states and municipalities have launched an unprecedented attack on consumers' income and on corporate profits. It's time to put a stop to the all-too-convenient policy of financing state expenditures by simply dipping into citizens' pockets."

"The motto of politicians must be provision for the individual, and thus for society as a whole, through competition and achievement, not by an increased plundering of our social system through the call for constant state welfare."

These aren't commentaries from a freshman Republican in Washington; they are the pronouncements of Herbert Blank, president of the Federal Association of the German Retail Grocery Trade, speaking at the Anuga opening event. All this means there are a couple of obvious ways to get discussions going that could lead to cross-national business ties: One is to leverage off cultural similarities in Western nations; the other is to underscore mutual business advantages there and elsewhere in the world. In the end, the potential is too vast to overlook.