How to grow overseas market share

Indonesia, Brunei, Cambodia, China, East Timor, Fiji, Japan, Korea, Malaysia, New Zealand, Pakistan, the Philippines, Singapore, Taiwan, Thailand, the US and Vietnam – if there is one thing Trisco knows about, it’s exporting.

The Queensland-based company is a fifth-generation company that has been producing food and beverage products for more than 140 years and is always looking for new markets in which to expand.

CEO Mike Tristram has a plethora of dealing with the red tape and bureaucracies when sending products overseas. The first thing he points out is that no two countries are the same – whether they be first or third world. With some countries, getting approval is easy, another might be require more time, while yet others may rely on another country’s approval system.

READ MORE: Anthony Pratt: Value added food will pave way for Australian exports

“For example, the US,” said Tristram. “Officials in another country might say ‘well, if you’re approved by the FDA in the US, there’s no problems here’. Every country has its own little idiosyncrasies. In Pakistan, you need to have specific approval by some office that has to have a physical stamp. Trying to get that physical stamp instead of a photocopy and approval is very difficult. Dealing with those sorts of idiosyncrasies from country to country, can be interesting.”

One of Tristram’s favourite quotes is from LinkedIn founder, Reid Hoffman, who described start-ups as like jumping off a cliff and assembling an airplane on the way down.

“Exporting is a little similar but not quite as dramatic,” he said. “It is one of those things you have to figure out on your own depending on your market and depending on where you are going and what you have to sell. It is how unique or not unique it might be and where your strategic advantage is.

“You need the boldness to be able to go into the adventure and find your own pathway within that and be prepared to solve those problems as and when you see them. Even with speed bumps along the way, you need to keep going and learn from them and not give up.”

He believes resilience is the biggest thing that gets a company through the export journey. Also, it is important to get someone on the ground. It is not something that can be discovered, nurtured and expanded upon while sitting in an office in Australia.

“That is the hardest thing – staying on the path and keep slogging,” he said. “You can’t follow a market you don’t understand so you have to go there. And if you are not prepared to go there on a regular basis, then don’t attempt that journey. If you are not prepared to leave the country – at least initially and put a good bedrock down – you will not be successful.”

However, once the connections have been made, it is possible to tone down the travel schedule as long as there is someone on the ground that can be trusted. These are usually locals who know how local regulators and the laws surrounding imports work.
“Some of those places you can handle through agents once you have forged a relationship,” said Tristram. “As long as you have a trusting relationship with the local agent you can pull back a little on those sorts of visits.”

What does help is Australia’s reputation not only as a quality food producer, but as being upfront and honest.

“Australian products are recognised throughout the world as high quality,” he said. “And being relatively clean and green, we’re recognised as being reasonably easy to deal with and we are straightforward. There are a lot of advantages to being Australian.”

The main reason companies try and get into exporting is to grow their company financially. Australia has a finite number of markets within the continent, so expansion is the only way to grow. And while Trisco is happy to manufacture in Australia, the company is going one step further to magnify its footprint in the US – building a plant over there.

“One of the disadvantages is we are still one of the highest costs of manufacturing in the world,” said Tristram. “Until we solve some of these issues, such as energy and utility costs, we are going to continue to struggle. And until we are competitive with the rest of the world on red tape and tax and that sort of thing, there’s not a huge incentive to come to Australia and manufacture. We need to change that.”

One of the products that the company produces is Thick-N Instant, which is under the company’s Precise brand. It has been on the market for three years and doing well. It is designed for those who have dysphagia, which is a condition whereby people have difficulty swallowing. There are many different types of dysphagia, but it usually impacts on those who are aged over 65. It also has a high correlation with people who have Parkinson’s Disease, motor neuron issues or are a victim of a stroke.

“The market that manages the condition, thickens products to four distinct levels that are internationally recognised as part of the diet,” said Tristram. “We take those products up to those viscosities depending on what the problem is. Then they can swallow safely, which means the food goes into their digestive tract and not into their lungs, or into other areas that can cause fluid on the lungs, which can lead to pneumonia.”

It is this demand for the product stateside that lead the company to build a plant over there. Thick-N Instant is protected by intellectual property including patents, some of which are still pending.

“We need to build a plant a little closer to one of our largest customers in the US,” said Tristram.

“And we’ve done that for a couple of reasons. First, Thick-N Instant is a product that is unique and is for a vulnerable population and there is nothing like it in the world that we compete against. Nobody makes anything like it.

“The other issue for us is that you have to have some redundancy, so if something catastrophic happened to the plant we would be in trouble. You have to have that redundancy. Plus of course, seven to nine weeks on the water to another country is a long time for something that only has a shelf life of 12 months.”

Does Tristram feel the company has reached the apex of its export potential? No, but there are other issues he can see on the horizon

“The food industry is contracting a little bit,” he said. “What we are seeing now is ingredient suppliers not being as flexible as they used to be. The variety of the products on offer are there. They’re bringing them in from all over the world – Europe, Asia, US – everywhere.

“But getting consistent supply and variety that we can use to draw off the same sort of spec is becoming more difficult. For example, if you have 40 tonnes of strawberries and you need another 20 tonnes, trying to find it locally is going to be difficult.”