AarhusKarlshamn UK Ltd

Oil company gets a taste of China

AarhusKarlshamn UK Ltd (AAK) based in Hull with additional sites in Oldham and Runcorn produces edible oils and fats for food manufacturing, foodservice and commercial bakery as well as a range of speciality oils, mustards and condiments for retail.

AAK’s International Collection export brand offers an array of flavoured oils for cooking such as Toasted Sesame Oil for oriental cooking and garlic and basil flavoured oils for dipping as well as tapenades for appetizers.

AAK began expanding its International Collection worldwide in 1990 and now exports to 25 countries. Foremost among these are the USA where the brand has developed a coast to coast presence, followed by Germany and Japan. Recently AAK has been working with UK Trade & Investment (UKTI) to explore further overseas opportunities in China and the Far East.

In December 2008 AAK joined a number of British food and drink companies to exhibit at the trade fair, Food and Hotel China (FHC), held in Shanghai.

Said Sharon Stathers, export manager retail products: “We are hearing a lot about the buoyant market in China nowadays. So much has been written and said about it that this seemed like an ideal opportunity to go and find out for ourselves. AAK was among three companies from the Yorkshire region who joined a number of others from across the country at the three-day FHC trade show.

“UKTI’s food and drink specialist, Elsa Fairbanks, had prepped us about the visit which was UKTI sponsored and we could easily see all the advantages of being part of the British contingent on the trip. This meant we had a lot of support from the Embassy staff while in Shanghai, with our own interpreters on hand, and associated events built in around the exhibition for us.

“It was a terrific opportunity to meet a lot of distributors and buyers in just a few days and we even had a dinner organised for us with the specific aim of introducing ourselves to prospective business partners.”

UKTI advisers in Yorkshire were able to identify funding under Yorkshire Forward’s TESS programme (Targeted Export Support Scheme) to support AAK’s visit to Shanghai.

Since returning from China the company has been in direct contact with a number of distributors and has been in talks with the UKTI team based there for further advice and support.

Added Sharon: “FHC was a great chance to get a better understanding of the market in a ‘safe’ environment with the assistance of the UKTI team out there behind us. We also took the opportunity to make some store visits while we were there, just to see the sort of brands that were on sale and to check  price points. This in itself was a good indication of the market for us.

“It is, however, a very different business culture in China and this is something that we are still getting the measure of. While in Shanghai the UKTI team there gave us a brief master class on some of the different customs and the signals to look out for. It’s fair to say that this seems to be the key to doing business there and we are now working with distributors to move forward our export plans.”

Elsa Fairbanks is the food and drink specialist for UK Trade & Investment, whose job is to advise and support companies in their bids for international business.

Elsa said: “These are early days for AAK with regard to China but the FHC event opened doors just wide enough for them to begin to understand the market and where they may fit into it. With the support from our UKTI colleagues based overseas these kind of events offer a convenient and cost-effective way for companies to test the waters in markets that would be difficult to explore alone.” For further information on the products please visit: www.internationalcollection.co.uk

To find out how UKTI can help your business, please contact an international trade adviser.