Peru. Food Service - Hotel Restaurant Institutional

Transcription

1 THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Repor - public disribuion Dae: GAIN Repor Number: 12/27/2010 Peru Food Service - Hoel Resauran Insiuional 2010 Approved By: Emiko Purdy Prepared By: Alvaro Loza Repor Highlighs: A $3.2 billion, he sales of Peru s full service resaurans accouned for 65 of hose of oal food service secor in Almos 40 of his is he sales made by high-end resaurans. Imporaion of food producs used by he food service secor was esimaed a $1 billion, 20 of oal food service sales. Trade opporuniies for U.S. food producs increased afer he implemenaion of he U.S.-Peru Trade Promoion Agreemen (US-PTPA). Food producs used by he food service secor ha will be benefied by he US- PTPA are food ingrediens, fruis, cheeses, processed fruis and

2 vegeables, meas, and specialy foods.

3 Pos: Lima Execuive Summary: Secion I. Marke Summary Despie he inernaional financial crisis, Peru s economy has experienced one of he highes growh raes in Lain America in he las five years. This was simulaed by invesmens in mining, consrucion, gasronomy, and ourism secors, all of which has had a posiive impac on he food service secor. Peru has also proven is capaciy o hos inernaional conferences, like he Asia-Pacific Economic Cooperaion and he Organizaion of American Saes, which have furher moivaed invesors. I is projeced ha by 2012, he privae secor will inves almos $2 billion on ourism, including more hoels, resaurans and oher services conneced o he food service secor. The Peruvian consumers purchasing power, and economy are likely o pos significanly higher growh raes in Overall, apar from 2009, gross domesic produc (GDP) per capia and average disposable incomes have shown a seady increase, alhough he benefis of growh have been concenraed in he coasal area where GDP per capia is already significanly higher han elsewhere in he counry. The increase in disposable incomes has led o increased consumpion, bu reduced domesic savings, which are likely o have long-erm implicaions for growh and consumpion in he counry. In 2009, food service sales accouned for nearly $4.9 billion of which full service resaurans represened almos 65. From 2008 o 2009, Peru s food service sales grew by 5. During he same period, a $1 billion, Peruvian food service impors accouned for 20 of he counry s oal food service sales. Esimaed Consumer Food Service by Type (Curren Value): Food Service (US Million $) Sub Secor Growh () /09 Full-service resaurans 1,906 2,112 2,409 2,983 3,126 5 Cafes/Bars Fas Food Home Delivery Sree salls/kiosks TOTAL 2,977 3,213 3,737 4,619 4,857 5 Source: INEI (Peruvian Naional Saisical Insiue) Euromonior Inernaional The niche marke for U.S. exporers in he food service secor includes high-end hoels and resaurans, family syle resaurans, fas food chains, and coffee shops. Fas food chains have demonsraed he

4 fases annual growh wih approximaely 8 in he las five years. Food service producs ha will benefi from he PTPA wih lower or duy free ariffs include food ingrediens, fruis, cheeses, processed fruis and vegeables, meas, and specialies. Lima is he major marke for consumer-oriened foods wih almos one hird of Peru s populaion and more han 60 of he naional income. High and middle-income consumers, currenly he main marke for U.S. food sales, reach around 1.8 inhabians wih an average monhly family income of $1,200. These consumers spend roughly 32 of heir income on food (12 of which is spen eaing ouside he home). Social facors ha affec he food service marke include he growh of ourism (7 per year), urban expansion, an increase of women in he workforce (38 ) and a growing populaion of young people ha demand fas food or meals prepared ouside of he home. Advanages and Challenges of U.S. producs o Peru s Food Service Secor Advanages 1. Appreciaion for U.S. food qualiy and culure. 1. Food service producs will benefi from he PTPA wih lower or duy free raes. 1. There are more compeiors in he secor, including inernaional chains. 1. Fas food chains are expanding in Lima suburbs and in major ciies (Arequipa, Trujillo, Chiclayo and Piura). 1. Peru s governmen fund o promoe ourism. Challenges 1. Peruvians prefer meals based on fresh producs. 1. Low purchasing power; 78 of Lima s populaion is low-income consumers. Ouside of Lima 87 of he populaion is low income. 1. U.S. exporers need o incorporae U.S. food ingrediens in inernaional and Peru s radiional menus. 1. Limied infrasrucure and low qualiy service discourage longer says of inernaional ouriss. 1. High-end hoels are associaed wih inernaional chains and foreign operaors o expand and assure high occupancy levels.

5 Secion II. Road Map for Marke Enry A. Enry Sraegy U.S. exporers can approach he Peruvian food service marke hrough a large imporer, wholesaler/disribuor or a specialized imporer. Mos food service companies buy impored goods from local inermediaries. Personal visis are highly recommended. The local parner should be well known by he U.S. company before any permanen conracual arrangemen is made. The local company should be able o provide updaed informaion on marke consumer rends, curren marke developmen, and rade business pracices. In addiion, i is recommended ha U.S. exporers work wih chefs and local imporers in performing innovaive markeing aciviies in he high-end food service secor o: Incorporae U.S. food ingrediens in local and inernaional menus. Break down local preference for European specialies. The srengh for U.S. food producs in his marke is ha hey are considered o be of superior qualiy, ase and presenaion. A. Marke Srucure

6 Food service sources are mainly domesic due o srong local preferences for fresh food producs a lower prices. Food service imporers are also suppliers for he reail marke, which accouns for more han 70 of heir profis in mos cases. Almos all food service businesses purchase hrough inermediaries (97 ). However, high-end resaurans and hoels impor equipmen direcly. Inernaional franchises (KFC, Pizza Hu, Burger King, Mc Donalds), and he local chain Bembos, reach enough volumes o impor some of heir food ingrediens direcly. A. Sub-secor Profiles 1. Hoels Number of Hoels in Peru, Classify by Caegories in 2009 Hoel Number of Number of Number of Oule Locaion Caegory Oules Rooms Beds Lima Provinces Five-sars 31 3,926 7, Four-sars 44 3,170 5, Three-sars ,041 26, Two-sars 1,050 21,434 37, One-sars 362 6,340 10, Toal 1,987 48,911 88, ,448 Source: Minisry of Foreign Commerce and Tourism (Minceur) Growh in he ourism secor, according o he Naional Insiue of Saisics (INEI) was 2.3 in Hoels expanded 2.5, due o increased local ourism (6 ), which offse he drop in hoel overnigh says by foreign ouriss. The ourism boom, however, is no only caused by he increase in number of foreign visiors, bu also by new invesmens in hoels and resaurans. The counry ofen is feaured in inernaional ourism magazines as one of he mos desirable ouris desinaions in he world. A 2.1, he number of foreign visiors o Peru rose 3.6 in 2009 compared wih he previous year. Tourism is one of he major indusries in Peru, represening foreign currency earnings of $2.25. While ouriss from Japan and he Unied Kingdom declined, here was a greaer inflow of Argeninean (26 ), Brazilian (29 ), and Colombian (14 ) ravelers. Despie he inernaional financial crisis, here were also increases of ouriss from counries such as Canada (5 ), Unied Saes (1 ), Spain (7 ), China (15 ), and Ausralia (8 ). In 2009, classified and unclassified (unclassified lodging are all no included in he char above) lodging esablishmens offered almos 340 housand beds, a 4.4 increase from Accommodaions offered by classified and caegorized hoel esablishmens rose by 2.4 in 2009.

7 The niche marke for U.S. exporers in his sub-secor is high-end hoels, mainly four and five-sar, ha use higher proporions of impored food producs. Among all foods served in hoels, impored food iems represened approximaely 16. Markeing effors in his sub-secor should arge aciviies o inroduce U.S. food ingrediens and U.S. gourme producs in high-end hoel resaurans ha offer local and inernaional cuisine. Major high-end hoels are locaed in Lima (75 ), he cener of business aciviies. Many hoels are developing sraegic alliances wih inernaional hoel chains or key local groups, wih he inen of having a hoel in every imporan ouris desinaion in Peru (Lima, Cuzco, Arequipa and Puno). The hoel secor experienced 10 growh in 2009 over a year ago level, however, he growh is expeced o be more marginal level of 6 in 2010 due o global financial slowdown. According o he presiden of he Peruvian Hoel Sociey, a $1.5 billion dollar invesmen is expeced over he nex hree years. Source: Minisry of Foreign Commerce and Tourism (Minceur) Inernaional Visior Profile (According o Minceur):

8 Source: MINCETUR Foreign ouriss spend around $89 daily. Food represens he hird larges expense (18 ), wih lodging and ransporaion opping he lis (28 and 20, respecively). Local ouriss spend around $103 daily. Transporaion is heir highes expense a 41 followed by food a 16. The op five desinaions for foreign ouriss are Lima, Cusco, Puno, Arequipa, and Ica. The high season for foreign ouriss is July and Augus. Around 70 of foreign ouriss are beween 25 and 54 years of age. Male visiors consiue 66 of he oal. Purpose of visis: vacaions (61 ), business (19 ), visi family or friends (10 ), aending seminars (4 ), ohers (6 ). Types of ourism: urban, culural, ecological, advenure, live culures, and sun bahing. Resauran preferences: Peruvian syle, seafood, and mea. Accommodaions: for vacaions, hree sar hoels; for business, five sar hoels, and four-sar hoels; for seminar aendance, five-sar hoels, four-sar hoels, and hree-sar hoels. Major Hoel Profiles (2009) Name of Hoel J.W. Marrio Inversiones La Rioja Counry Club Lima Hoel No. of Oules Toal Sales Es. ( $) 1 26 Lima Ciy 3 18 Lima, Piura, Tarma

9 Los Porales Hoels Los Porales Liberador Hoels Inversiones Nacionales de Turismo Sonesa Posadas del Inca Inmobiliaria de Turismo Swissoel Hoelera Cosa del Pacífico Miraflores Park Orien-Express Peru Inversiones Malecon de la Reserva Sheraon Lima Hoel & Casino Hoeles Sheraon del Peru Hoel Monaserio Peru OEH Melia Hoel Corporacion Hoelera Meor Apar Hoel El Golf Los Incas Suies El Golf Los Incas Doubleree El Pardo Hoel Inversiones Brade Inka Terra Hoels Inka Terra Peru C. Las Dunas Sun Resor Inversiones en Turismo Hoel & Suies Las Americas 11 7 Lima, Trujillo, Cuzco, Puno 6 15 Lima, Arequipa, Cuzco 1 17 Lima 3 22 Lima, Cuzco 1 12 Lima 1 17 Cuzco 1 10 Lima 1 4 Lima 1 8 Lima 3 8 Cuzco, Tambopaa 1 4 Ica 4 3 Lima

10 La Caja, Servicio de Hoeles C. Hoel Jose Anonio Carir Peru S.R.L. Novoel Corporacion Hoelera del Cuzco Cosa del Sol Hoel Cosa del Sol Turismo Cosa del Sol Plaza del Bosque Apar Hoel Hoelera del Pilar C. Los Tallanes Hoel & Suies Turismo Los Algarrobos El Condado Suies Turismo Cosa Sur Hoel Radisson Consorcio Hoelero Las Palmeras Casa Andina Nessus Hoeles Peru S.A Business Tower Prince Hoel Figur 3 5 Lima, Cuzco 1 3 Cuzco Lima 1 3 Lima 2 3 Lima Lima Tumbes, Piura, Lima, Cajamarca, Chiclayo Lima, Cuzco, Ica, Puno, Arequipa Hoel Las Americas Thunderbird Hoeles Las Americas 1 23 Source: The 10,000 Major Companies in Peru Resaurans Peruvian gasronomy has earned inernaional recogniion. Proof of his is he rapid developmen of

11 Peruvian resauran franchises abroad and he growing number of publicaions abou Peruvian Cuisine. Locally, he gasronomic offering is highly diversified and new eaeries are always opening, due o growing numbers of foreign visiors eager o sample new food. The number of resaurans has increased o 70,000 hroughou he counry wih 48 in Lima. Shopping ceners, paricularly hose of ouside of Lima, have many fas food chains as heir enans. The Peruvian governmen has been acively promoing ourism. In Sepember 2009, he firs general ourism law was enaced o promoe ourism and enrepreneurial developmen, paricularly in alernaive zones, he areas ha have been adjused recenly o lodge ouriss. Sae and privae insiuions help srenghen he secor: Promperu organized he Firs Gasronomic Tourism Fair, Peru Mucho Guso (Peru, pleased o mee you) in norhern Peru, while in he souh Tincuy 2009 was he regional fair. In Lima, The Peruvian Gasronomy Associaion successfully sponsored he Second Mixed Gasronomy Fair 2009, wih he paricipaion of Peru s renowned chefs. The Minisry of Foreign Trade and Tourism (MINCETUR), launched he naional campaign eniled The Seven Gasronomical Wonders of Peru. Increasing demands for modern and convenien commercial shopping ceners in Lima and oher ciies have made franchising popular among local invesors and consumers. A presen, mos of he franchise oules are locaed in Lima; however, franchisers have sared o esablish oules in oher ciies such as Chiclayo, Trujillo, Piura, Arequipa and Cusco. Based on indusry esimaes, abou 100 franchises are operaing over 1,000 oules. The franchise marke has focused mainly on resaurans, represening 64 of he secor. Foreign-owned franchises dominae he Peruvian marke (around 70 ). The Unied Saes inroduced he concep of franchising in he 80`s, and i sill enjoys he highes marke share a almos 50. Oher key players in he Peruvian franchising marke are Spain, Mexico, Argenina, Canada, Brazil and Colombia. The niche marke for U.S. producs is consiued by high-end resaurans, some family syle resaurans, coffee shops and fas food chains. These resaurans commonly purchase beween 10 o 20 of impored food producs, usually in food ingrediens (sauces, meas, processed frui and vegeables, cheeses), specialies (pork producs), and wine and liquors. High-end resaurans purchase impored producs from wholesalers, disribuors or reailers. There is a growing rend o offer ouriss a variey of dishes made from Andean producs called Novoandina cuisine. Bembos, a local fas food franchise, has grown 10 annually in he las five years. Bembos is viewed as he local hamburger of high qualiy. This franchise uses impored food ingrediens o sandardize producs. Wih 36 oules, Bembos reaches $19 people. Major food franchises are expanding o middle and low-income areas in he suburbs of Lima and capials of provinces. The oal sales of hese inernaional and domesic franchises

12 have reached $500 in The fas food chains ypically source is chicken and bread locally. However, hey impor mea, French fries and sauces from he Unied Saes, Argenina, and Chile. Broiled chicken resaurans, known as pollerías, reach around 1,100 oules in Annual growh is averaged a 10 o 15. Pollerías owns seven food chains (120 oules). These chains compee direcly wih supermarkes (30 of marke share) and delivery accouns for 35 of heir sales. Their arge marke is families and office employees. Purchases of chicken and French fries, he wo mos imporan ingrediens, are mainly local bu are good prospecs for fuure U.S. expors. Coffee shops use mainly local producs in heir menus bu have srong poenial o increase supplies of U.S. liqueurs. Major Resauran Profile (2009) Name of Caerer No. of Oules Food Sales ($) La Rosa Nauica La Rosa Nauica 1 5 La Carrea Inversiones La Carrea 2 3 La Huaca Resauran Huaca Pucllana C. 1 3 Asrid y Gason Asrid & Gason S.R.L Resauran Jose Anonio Jose Anonio S.R.L Chifa Lung Fung Resauran Chifa Lung Fung Resauran La Gloria Chifa Royal Resaurane Royal Resauran Rafael Bridge C Resauran La Cosa Verde La Cosa Verde C Source: The 10,000 Major Companies in Peru

13 Many years ago he café culure in Peru was sill in is infancy. Alhough coffee shops and salons de é (ea shops) were common decades ago, hey became largely associaed wih he elderly and were no longer seen as fashionable. This has changed significanly wih he spread of he inernaional chain Sarbucks, which can now be found in mos malls in Lima, and elsewhere. This began a rend ha has led o he updaing of coffee houses, especially in richer neighborhoods and he business areas. The increasing populariy of hese cafes can be aribued in par o increased access o U.S. sicoms hrough cable and saellie TV. Their populariy wih sudens and business people has also helped hem hrive. For mos Peruvians going o coffee shops is no a regular occurrence. However, hose in he habi of visiing hem are likely o go once a day during he working/sudying week. As in oher pars of he region, coffee shops have become very popular wih a broader range of cusomers and hey will coninue o expand. As hey become a way of life for more and more people, he variey of coffee shops will also increase, hereby reducing he marke power of large inernaional firms. The demand for coffee, milk and milk subsiues, flavorings will increase as a resul. Peruvian coffee shops are beginning o emulae heir U.S. counerpars by offering free Wi-Fi inerne access. In a consumer marke where mos people do no have personal access o he inerne, his could be usefully combined wih inerne café culure. Name of Resauran Family Syle Resaurans and Coffee Shops Profiles (2009) No. of Oules Food Sales ($) Ciy Bohemia Café y Mas Bohemia Corp 1/ 2 3 Lima, Cuzco Mangos 1/ 1 2 Lima Quaro D Quaro D 7 3 Lima Paseleria San Anonio Paseleria San Anonio 4 3 Lima Pardo s Chicken Servicios de Franquicia 20 3 Lima Pardo s C. Chili s Cindel 7 9 Lima Tony Roma s Inversiones La Floresa 3 1 Lima Sarbucks Delosi Lima, Arequipa, Trujillo, Chiclayo

14 Noe: 1/ Esimaed values for 2009 Source: The 10,000 Major Companies in Peru Name of Resauran Kenucky Fried Chicken Delosi Burger King Pizza Hu Sigdelo Mc Donalds Operaciones Arcos Dorados de Peru Bembos Burger Grill Bembos C. Domino s Pizza Comercializa dora de Alimenos Lainos C. Papa Johns Corporacion Peruana de Resauranes No. of Oule s Fas Food Chain profiles (2009) Food Sales ($milli on) Direc Food Impor s ($milli on) Ciy Lima, Trujillo, Arequipa,Chiclayo,Hu ancayo Lima, Trujillo, Arequipa Purchas ing Agen for impors Direc Direc Lima, Cuzco Direc None Lima, Trujillo, Arequipa, Cuzco, Chiclayo, Piura Lima, Callao, Arequipa Direc, imporer Imporer Lima Imporer Noe: Esimaed values for 2009 Source: The 10,000 Major Companies in Peru (2010)

15 3. Insiuional Conracors 1. This sub-secor represens approximaely 14 of oal food service sales, wih an esimaed growh of 10 in U.S. markeing poenial includes large caerers ha supply airpors and mining companies. Currenly, hese companies use mosly local producs in heir menus. 1. Vending machines and sores in mining camps require impored goods such as snacks, canned goods and confecionary ha are supplied hrough local imporers, wholesalers, disribuors, or caerers. Company Name Major Peruvian Suppliers for he Food Service Secor (2009) Toal Toal food Sales Type of Food Impors ($Million Company Supply ($Million ) ) Alicorp 22 1,283 Gloria Nesle Peru Processor, imporer, disribuor Processor, imporer, disribuor Processor, imporer, disribuor Pasa, whea flour, margarine, food ingrediens, mayonnaise, breakfas cereals, cookies, jelly, ice cream, sauces, pe food. Dairy and pork producs, juices, canned seafood. Dairy producs, soups and brohs, Impored Food Producs Whea, whea flour, edible oils, soy cake, sauces. Dairy ingrediens, juices, lacose and oher sugars. Dairy ingrediens, chocolae, infan

16 Kraf Foods Peru G.W.Yi Chang & Cia Servicios Frigorificos Química Suiza Diageo Peru Unilever Andina Peru Halema Processor, imporer, disribuor Imporer, disribuor Processor, imporer, disribuor Imporer, disribuor Imporer, disribuor Processor, imporer Processor, imporer infan formula, insan coffee and chocolae, breakfas cereal, cookies, chocolaes, bakery goods. Cookies, juices, cheeses. Canned fruis, canned seafood, chocolae, wine and spiris. Processed meas, meas and edible offals. Sweeeners, fishmeal, chocolae, wine, processed frui. Liquors. Sauces, soups. Processed meas, meas and edible offals. formula, food preparaions, baked goods, chicory exrac, sauces, soup preparaions. Cheese, sauces, bakery and dairy ingrediens, chocolaes. Canned fruis, canned seafood, chocolae, wine and spiris. Meas and edible offals. Canned food, food ingrediens, sweeeners, animal feed. Liquors. Sauces, soups. Meas and edible offals.

17 Laive Agro Corporacio n C. Perufarma Arcor del Peru Drokasa Peru Mayorsa Oregon Foods C. Corporacio n Jose R. Lindley Braed 2 32 Indusrias Molialia 2 4 Processor, imporer Processor, imporer Imporer, disribuor Processor, imporer, disribuor Imporer, disribuor Wholesale r, imporer Imporer, disribuor Processor, imporer. Processor, imporer, disribuor. Processor, imporer, Dairy and pork producs, Processed meas, meas and edible offals. Chocolae, confecionar y, wine and liquors. Chocolae, confecionar y, bakery goods, canned frui. Wine and liquors. Peas and lenils, popcorn, canned frui, sarch. Processed meas, meas and edible offals, fresh fruis. Sodas, juices. Pork producs, cheese. Chocolaes, pasa, Cheese, buer and pork producs. Meas and edible offals. Chocolae, confecionar y, wine and liquors. Chocolae, confecionar y, canned frui, bakery goods, bakery ingrediens. Wine and liquors. Peas and lenils, popcorn, canned frui, sarch. Meas and edible offals, fresh fruis. Canned frui, gelain. Pork producs, cheese, dairy ingrediens, condimens. Whea.

18 Delosi 1 54 Desileria Peruana L.S. Andina Sociedad Suizo Peruana de Embuidos Sigdelo KMC Inernaion al C. L C e Hijos Bembos C disribuor. Fas food franchise Processor, imporer Imporer, disribuor Processor, imporer Fas food chain Imporer, disribuor Imporer, disribuor Fas food chain confecionar y, sauces. Hamburgers, salads. Wholesalers, reailers, food service French fries preserved, chocolaes, sweeeners, confecionar y, olive oil, baked goods Sausages, cheese. Hamburgers, pizza Microwave popcorn, soups, baked goods Wine and liquors Hamburgers French fries, bakery goods, sauces, cheese. Liquors. French fries preserved, chocolaes, sweeeners, confecionar y, olive oil, baked goods Pork producs, poulry, edible offals, cheese Cheese, mea preparaions, sauces, French fries, condimens Microwave popcorn, soups, baked goods. Wine and liquors French fries, mea, cheeses Noe: Toal food impors are disribued beween he hree food secors: HRI, Reail and Food Processing. Source: The 10,000 Major Companies in Peru 2010 and Peru s Cusoms (Suna)

19 Compeiion Source: World Trade Alas (2009) Peru gives ariff preferences o he Andean Communiy of Naions (CAN - Bolivia, Colombia, and Ecuador), and o Mexico, Paraguay, Argenina, Brazil, Uruguay and Cuba. According o Peru s cusoms daa, oal consumer-oriened food impors were $552 in 2009, down 10, compared o he previous year. The U.S. was he hird larges supplier ($62.5 ), wih 11 of he marke share, facing siff compeiion from Chile and Colombia (28, and 12, respecively). Peru s rade policy is oriened o open markes. Peru has signed an Economic Complemenaion Agreemen (ECA) wih MERCOSUR, a major U.S. compeior in bulk commodiies and meas. Dairy producs were exemped from he negoiaions. Peru recenly expanded is ECA wih Chile, Peru s major supplier of food and agriculural goods, and is negoiaing he exension of is ECA wih Mexico. Peru finished negoiaing a free rade agreemen wih Thailand and is currenly negoiaing a free rade agreemen wih Singapore, Souh Korea, and Japan. Peru is also seeking a free rade agreemen wih he E.U and China. The PTPA will reinforce U.S. compeiiveness wihin he Peruvian marke. The qualiy of U.S. producs is already appreciaed among he high-end consumers. Impored food producs have

20 ariff raes ha range beween 0 and 17. Peru is looking forward he implemenaion of PTPA agreemen which will allow lower or duy free ariffs for many food and agriculural producs. For a complee lis of producs ha will be benefied from he PTPA, please check hp:// Produc Caegory/ Ne Impors Dairy Producs 28,945 ons ($72.96 ) Snack Foods 26,930 ons ($54.5 ) Processed Fruis and Vegeables 52,761 ons ($56.58 ) Compeiive Siuaion facing U.S. Suppliers in he HRI Food Service Marke in 2009 Major Supply Sources Mexico: 21 Chile: 18 New Zealand: 11 Colombia: 11 Ireland: 10 Colombia: 44 Argenina: 15 Ecuador: 13 U.S.: 8 Chile: 5 Chile: 46 U.S.: 11 Neherlands: 10 Srenghs of Key Supply Counries - Mexico is major supplier of dairy ingrediens, especially preparaion of cereals and infan milk. Boh are duy free. - Tariff preferences applied o neighbor counries. Chile sells a cheaper prices due o proximiy and ariff preferences. Advanages and Disadvanages of Local Suppliers - Only wo companies are major producers of evaporaed milk and yogur. - Local homemade cheeses are commonly sold. - Local producers are major food processors. They impor food ingrediens for snacks and also snacks in bulk. - Local processors are major exporers, bu heir local supply is limied

21 Fresh Fruis 58,050 ons ($46.60 ) Frui and vegeable juices 1,255,740 L ($ 2.1 ) Wine and Beer 11.9 Million liers ($23.68) Red Meas (fresh, chilled or frozen) 24,691 ons China: 5 Argenina: 5 Chile: 93 Argenina: 4 U.S.: 3 U.S.: 32 Brazil: 27 Chile: 21 Colombia: 4 Argenina: 41 Chile: 25 Spain: 9 Ialy: 7 Brazil: 6 France: 4 U.S.: 3 Germany: 1 Argenina: 26 Brazil: 25 - E.U. producs are posiioned as being of good qualiy. - China has increased is omaoes prepared expors - Chile is he main supplier because of proximiy, price and duy free enrance. - Argenina has a window for pears and apples - Chile has advanages of ariffs and proximiy. - Brasil has increased is frozen orange expors - Proximiy and recognized qualiy of Chilean and Argeninean wines. - Brazil is he major supplier of impored beer. - Major impors come from nearby counries. - There is an open window from November o February for he U.S. - Local frui sold a reail marke is of lower qualiy. - Local brands are well posiioned in he marke a compeiive prices. - Major local breweries are well posiioned, price compeiive and belong o inernaional companies, represening 95 of he marke. - Local wine is well posiioned and price compeiive, bu does no saisfy demand. - Peru s marke for he U.S. reopened in Ocober 2006.

22 ($39.40 ) Red Meas (prepared, preserved) 1,126 ons ($4.56 ) Poulry Mea 17,852 ons ($21.57 ) Paraguay: 21 U.S.: 16 Chile: 7 Uruguay: 3 Chile: 31 Argenina: 16 Bolivia: 10 Ialia: 10 Denmark: 10 Spain: 8 U.S.: 6 Brazil: 6 Chile: 31 Brazil: 23 Ialy: 20 Argenina: 12 U.S.: 10 Bolivia: 5 - Chile has he advanages of ariff preferences and proximiy. - U.S. poulry produc impors reopened in Ocober Brazil and Chile are major suppliers of poulry cus. - U.S. meas are of superior qualiy. - Peru impors hree imes more offals han meas. - Local mea does no saisfy he demand. - There pork producs indusry ha also impors prepared meas. - U.S. produc ariffs will go down from 5 o 7 years linear. - Local poulry producers are major suppliers wih good disribuion channels. - Impors are mainly chicken and urkey pars. Noe: Ne impors correspond o he hree food secors: Food Service, Reail and Food Processing. Source: World Trade Alas IV. Bes Producs Prospecs

23 Source: World Trade Alas (2009) A. Producs Presen in he Marke Which Have Good Sales Poenial: Produc/ Produc Caegory Mark e Size 2009 es. Impor s 2009 Average Annual Impor Growh ( ) Impor Tariff Rae Key Consrain s Over Marke Developm en Marke Araciven ess for he U.S. Cheese (HS 0406) 18,48 0 MT 2,005 ons ($8.35 ) , 20 and 40 0 percen percen - U.S. compeior s are: Uruguay (16 ) and Neherland s (16 ). - Srong preference - U.S. cheeses are mainly used in he food processing secor, bu have poenial in he HRI and Reail Food Secors. - In 2009,

24 Confecion ary non chocolae (HS 1704) N/A 12,729 ons ($30.9 ) percen for EU cheese a high-end HRI and Reail Secors. - Major suppliers are Colombia and Ecuador. - Local indusry is srong. Major owners are foreign companies. he Unied Saes was he firs supplier wih a marke share of TPA*: 17 years linear, 2,500 MT quoa wih 12 increase per year. - Unied Saes represens 2 of oal impors, however, U.S. impors remained a he same level in TPA*: Duy free on enry ino force. Confecion ary chocolae (HS 1806) N/A 3,239 ons ($10.9 ) percen - Chile is he major supplier (23 ). - Local indusry is compeiive. - The U.S. is he hird major supplier wih 15. The U.S. srengh is in chocolae for he reail secor.

25 Apples and Pears (HS 0808) Grapes, fresh (HS ) Prime and choice beef (HS ) Edible Beef Offals 168,0 00 MT 207,0 00 MT Toal beef and offals marke : 268,9 24 MT 180,0 00 MT 51,211 ons (35 ) 3,611 ons ($2.8 ) 1,253 ons ($4.78 ) 4,529 ons 16.5perc en 62percen 8.9perce n HS perce n 0 percen 0 percen 0 percen - Chile is he major supplier wih 93 of he marke. - The Unied Saes is he hird larges supplier wih 3 of he marke. - Local producion is srong. - Chile is a major imporer (96 ). - Low impors. - Compees wih qualiy meas from Argenina, Uruguay, Brazil and Bolivia. - Major supplier for - TPA*: Duy free on enry ino force. - There is a window of opporuniy for he Unied Saes beween November and February. - TPA*: Duy free on enry ino force. - U.S. window: Sepember o December. - TPA*: Duy free on enry ino force. - Currenly he marke is experiencing a shorage of supplies. - TPA*: Duy free on enry ino force. - The Unied Saes holds

26 (HS , ) Frui and Vegeable juices (HS 2009) Pe foods (HS ) Pasa (HS 1902) N/A 38,80 0 MT 300,0 00 ons ($4.7 ) 12,557 hl ($2.1 ) 10,035 MT ($11.4 ) 1,251 MT ($1.4 31percen HS perc en HS is Brazil wih 68 of he marke. 9 percen 0 percen 0 percen - Major suppliers are he Unied Saes (32 ), Brazil (27 ), and Chile (21 ). - Growing local pe indusry. - There is an informal indusry arising. - Colombia 42 ), and Argenina (27 ) are major compeior s. - Major compeior s are Ialy (25 87 of he liver impor (020622) marke. - TPA*: 10 years linear, 800 MT quoa wih 6 increase. - TPA*: Duy free on enry ino force, 5 and 10 years linearly depending on he produc. - The Unied Saes holds 27 of he marke, wih an 18 increase from TPA*: duy free on enry ino force, or 5 years linearly for canned pe food. - U.S. holds 23 of he marke and

27 Turkey (HS , , ) Poulry mea cus (HS , ) 21,20 0 MT $1,23 0 ) 4,171 ons (5.45 ) 7,242 ons ($7.5 ) HS , HS , HS percen 9 percen ), Chile (15 ), - Major exporers are Brazil (44 ) and Chile (31 ) followed by he Unied Saes wih Local poulry indusry is srong. - Srong local indusry. - Argenina (35 of he marke), Brazil (34 ), Chile (20 ) is he second larges supplier. Impors increased by 38 in TPA*: duy free on enry ino force or wihin 5 years. - Peruvians are major consumers of urkey during Chrismas and New Year s. - The food reail secor is becoming more popular no only in Lima, bu also in he province. - TPA*: 5 years. - Peruvians are major consumers of poulry. - TPA*: 10 years.

28 Bread, pasry, cookies (HS 1905) Sauces, soups & brohs (HS 2103, 2104) N/A N/A 3,644 ons ($7.9 ) 5,752 ons Wine ($ ) 20 HS , HS percen 9 percen and Bolivia (12 ) are major exporers. - Major suppliers are he Unied Saes (21 marke share), Colombia (20 ), Ecuador (20 ), Brazil (10 ) and Argenina (8 ) - Major suppliers are he Unied Saes (33 marke share), Chile (14 ) Colombia (13 ). China (11 ) and Mexico (9 ) - TPA*: duy free on enry ino force, 3 or 5 years. - TPA*: duy free on enry ino force excep for soy sauce and musard (5 years). - Argenina (47 - There is a

29 (HS 2204) liers liers ($20.5 ) percen marke share), Chile (29 ), and Spain (11 ) are major exporers. - Srong promoions. - Only regular wine consumers recognize U.S. wine qualiy. niche marke for qualiy wines for which he Unied Saes can be appreciaed and price compeiive. - Peru s wine consumpion is growing. - TPA*: 3 o 5 years linear. Noe: TRQ = Tariff Rae Quoa, on a firs-come firs-serve basis. Sources: World Trade Alas, USTR, Minisry of Agriculure (Minag), Gesion and El Comercio Newspapers Producs no Presen in Significan Quaniies, bu which have good sales Poenial: Produc/ Impor Average Annual Impor Key Consrains Marke

30 Produc Caegory Chicken leg quarers (HS , ) Peaches, cherries and Necarine s (HS 0809) Nus and almonds (HS 0802) s ,575 ons ($4.3 ) 1,798 ons ($1.4 ) 277 ons ($1.2 ) Impor Growh ( ) Tariff Rae 9 9 9percen Over Marke Developmen - Srong Poulry indusry in Peru. - The Unied Saes major compeior is Chile (81 of he marke), - Chile is major supplier wih 98 of he marke. - Chile (47 of he marke) is he second larges supplier. Aracivenes s for he U.S. - TPA*: 17 years, 12,000 MT quoa wih 8 increase; for mechanically deboned mea (MDM), 3 years. - The sausage indusry demands he produc as a lower cos ingredien. - Open marke for he Unied Saes since April In 2009, he Unied Saes held 20 of he marke. - Imporers are ineresed in U.S. peaches and necarines. - TPA*: Duy free on enry ino force. - U.S. impors have grown 783 in respec o The Unied Saes is he major supplier wih

31 Grapes, raisins (HS ) Cirus (HS 0805) Oher fresh frui (HS 0810) 6,322 ons ($7.6 ) 56 ons ($0.04 ) 925 ons ($1 ) There are no significan impors from he Unied Saes. - Chile holds almos 100 of he marke. - Chile is he second major supplier wih 44 of he marke. - The Unied Saes holds 49 of he marke. - Chile is pracically he only supplier. - Impors are mainly kiwi. 51 of he marke. - Imporers recognize ha U.S. qualiy of nus and almonds is beer han compeiors. - TPA*: Duy free on enry ino force excep for chesnu (5 years). - U.S. window: Sepember o December. - TPA*: Duy free on enry ino force. - Recognized qualiy of U.S. oranges and angerines. - Expor window for he Unied Saes is from January o March. - TPA*: Duy free on enry ino force or 5 years. - The TPA will open opporuniies for he Unied Saes no only o expor kiwis,

32 Pork Mea (HS 0203) Sausages (HS 1601) 1,251 ons ($2.2 ) 394 ons ($1 ) Peruvians are no used o eaing pork. - Local indusry produces more han 100,000 MT - The indusry is he same as he poulry indusry. - Chile is he major supplier wih 93 of he marke. Canada has begun o expor (7 of he marke). - Major exporers are Chile (50 of he marke), Spain (13 ), Unied Saes (13 ), Ialy (9 ), and Argenina (9 bu also cranberries (very well acceped in juice), srawberries, ec. - TPA*: Duy free or 5 years - Pork impors are growing. - U.S. pork will benefi from TPA implemenaion. - TPA*: 5 years - There is a high-end segmen for gourme sausages, in which he Unied Saes can compee. - TPA*: 5 years

33 Ham, processed HS , Beer (HS 2203) 62 ons ($0.71 ) 4.4 liers ($2.8 ) HS , HAS ). - Major suppliers are Ialy (54 of he marke) and Spain (33 ). - Local breweries are very srong and owned by inernaional companies. - Local breweries produce and impor new brands for inroducion in he marke. Brazil is he major supplier (52 of he marke). - The Unied Saes has qualiy producs o inroduce o he gourme marke - TPA: 7 years - Niche marke for premium beers. - Growing consumpion of beer (43 ls per capia) - TPA: Duy free on enry ino force Noe: TRQ = Tariff Rae Quoa, on a firs-come firs-serve basis. Sources: World Trade Alas, USTR, Minisry of Agriculure (Minag), Gesion and El Comercio Newspapers Producs no Presen because hey Face Significan Barriers: None. Secion V. Key Conacs and Furher Informaion If you have any quesion or commens regarding his repor or need assisance exporing o Peru, please conac he Foreign Agriculural Service in Lima a he following address:

34 U.S. Embassy Lima, Foreign Agriculural Service (FAS) Mailing Address: Office of Agriculural Affairs, Uni 3785, APO AA Address: Av. La Encalada cdra. 17, Monerrico, Lima 33 Phone: (511) Fax: (511) For furher informaion, check he FAS web sie or our web sie Please, also refer o our oher curren food marke relaed repors: Exporer Guide, Food and Agriculural Impor Regulaions and Sandards (FAIRS), FAIRS Expor Cerificae and Reail Food Secor. Minisry of Foreign Trade and Tourism (MINCETUR) Miniser: Eduardo Ferreyros Kuppers Address: Calle Uno Oese 050, Urb. Corpac, San Isidro, Lima 27 Phone: (511) Fax: (511) Web sie: Hoel and Resauran Associaion (AHORA) Presiden: Fernando Puga Address: Av. Benavides 881, Miraflores, Lima 18 Phone: (511) Fax: (511) ahora@ahora-peru.com Web sie: American Chamber of Commerce (AmCham Peru) Execuive Direcor: Aldo Defilippi Address: Av. Ricardo Palma 836, Miraflores, Lima 18 Phone: (511) Fax: (511) amcham@amcham.org.pe Web sie: Auhor Defined: