Food and drink producers from Devon and Cornwall are hoping to boost their order books with a trade mission to China.
Gin makers, Salcombe Distilling Co and Luscombe Drinks from Devon and clotted cream makers Rodda & Sons and Skinners Brewery from Cornwall are among the 11 strong delegation hoping to meet potential customers and distributors for trade deals.
The week-long trip has been organised by Santander Corporate and Commercial organised and paid for by the bank. The programme, run in conjunction with the Department for International Trade, the China-Britain Business Council and accountancy firm Milsted Langdon, reflects the growing demand for high-quality UK products in China and the significant opportunities available to firms keen to export.
China is the second-largest economy in the world and sales of consumer goods are set to exceed RMB37 trillion (£4.4 trillion) in 2017, having grown by 10.4 per cent in 20161.
As the country’s population becomes wealthier, the desire for a higher standard of products has increased, and Chinese consumers are increasingly interested in brands which have a rich heritage and a premium product to offer.
David Shalliday, Regional Director, Santander Corporate and Commercial said: “As the purchasing power of Chinese citizen increase – and the country’s major cities become ever more comparable to a developed market like the UK – consumers are looking for premium and high quality goods. For any growing UK exporters in the consumer goods sector, China is a market not to be ignored. Santander’s objective is to facilitate a UK exporter’s journey into China while adding value from the substantial ecosystem of support we have built.”
Among other planned activities, the businesses will be treated to a VIP tour of leading online platform JD.com’s headquarters, visit the Golden Eagle Department Store in Nanjing, and attend an exclusive reception at the home of the British Counsel General. The firms will also have one-to-one meetings with importers interested in their products and be given insights into the Chinese economy and the country’s fast-growing food and drink sector. The businesses will visit three cities and meet 12 major Chinese buyers.
The 11 firms participating in the initiative are Jakemans (Confectioners) Ltd, Tudor Rose International, AE Rodda & Sons Ltd, Christie International Limited, Salcombe Distilling Company Limited, Luscombe Drinks Limited, Frobishers Juices Limited, Stute Food Limited, The Granola Girls Limited, Bramley & Gage Ltd and Skinner Brewing Co.
The Trade Mission is part of Santander’s ambition to help the UK food and drink sector to invest for growth and expand – in both the UK and abroad. In 2016, the UK exported a record £20.2 billion worth of food and drink goods internationally, according to the Food and Drink Federation, growing by 10.5 per cent over previous 12 months.
Mr Shalliday said: “It has become increasingly important for UK SMEs to look overseas for growth opportunities. Companies are stronger and more resilient to economic downturns when they are diversified and have commercial activity with different economies. Santander believes that China is a prime market for food and drink SMEs to consider, with its growing economy and strong interest in British produced products.”
Helping SMEs to export is a core priority for Santander. The bank’s Trade Missions are unique in the wider SME banking market – Santander regularly and proactively gets UK firms out to markets to meet buyers and network with key stakeholders. Previous trade missions have covered the US, Spain, Chile, the United Arab Emirates and Poland.
