U.S. consumer-oriented products revolutionize French eating habits.

With France ranked No. 10 among 1993's top export markets for U.S. consumer-oriented products, AgExporter wanted to find out what's happening in the French market. We caught up with George J. Pope, U.S. Agricultural Minister-Counselor in Paris, who told us about the latest trends that provide

AgExporter: What are the latest food trends in the French market?

Pope: Several trends are emerging. As French consumers grow older, become single parents, join the workforce or live alone, they don't have the time needed to prepare French cuisine and are moving toward quick and easy-to-prepare foods, single and double portion packs, as well as frozen and microwaveable meals.

This trend has affected where French consumers shop. Although the traditional neighborhood bakeries, butchers and open-air markets are in no danger of becoming extinct, the French are increasingly patronizing a proliferating number of French super- and hypermarkets, which have captured more than a 50-percent share of the food products market.

Discount stores like Leader Price and Europa Discount are becoming popular in lieu of small, specialty shops. These stores aren't as big as discount stores in the United States, but from a French perspective they are big. These stores have had to improve the quality and diversity of their brand products because the French are very quality conscious and won't buy below-par products.

The French are also increasingly concerned with health and nutrition, which has led to rising consumption of organic and natural food products, fresh and processed dietetic foods and fish and seafood products.

French teenagers and young adults have created new eating trends as well. They represent about one out of six French consumers and are an important and powerful market. This younger generation is more open to new kinds of foods that not only taste good but "look" good because they project the right image.

For example, young people are swarming to restaurants featuring Tex-Mex and Mexican foods. They are fascinated by the lifestyle of the Southwest as depicted on American television programs seen in France.

I think the next big craze among the young will revolve around the California lifestyle with dining surrounded by palm trees, featuring burgers with a wide variety of toppings, seasonings and condiments, salads and natural and organic foods.

Another interesting trend is the evolution of breakfast as the main meal. Now the whole family eats breakfast together. In the past, the French would eat a traditional roll for breakfast that was cut in half and buttered, but now they're beginning to eat breakfast cereals and breakfast-type items, although they haven't gone so far as to eat bacon and eggs for breakfast as Americans do.

AgExporter: Some of these trends have obviously been sparked by American culture. Which U.S. products have the best potential in the French market?

Pope: Frozen food products show great potential for U.S. exporters. These products represent the largest growth segment of the consumer-ready market. French consumption of frozen foods is among the highest in Europe, with more money spent by the French on frozen foods than in any other European Union (EU) country.

Ready-to-heat-and-eat dishes, potatoes and potato products and vegetables are the most popular, while desserts, frozen pasta and pizza are the fastest growing frozen products.

Another segment of the consumer-ready market with great potential is the Tex Mex market. By capitalizing on images of America's Wild West days, imports of Tex Mex products have grown in less than 10 years from a value of virtually zero to $10 million in 1992 and almost double that amount in 1993. Tacos, tortilla chips, blue corn chips, spicy sauces and chili are very popular.

Snack chips ranging from potato and corn chips to pretzels and extruded products have even greater market potential in France than Tex Mex products. Over the past five years, consumption has doubled as the French have begun to snack between meals due to changing lifestyles and eating habits. However, the French are still not big snackers and prefer single-serving bags of chips. Unflavored chips are popular.

Last but not least in market potential is the French pet food market. France ranks second in the world after the United States in pet ownership, with more than 18 million dogs and 8 million cats. You can't turn a street corner in France without seeing a pet owner with a dog or cat close by.

And don't forget those niche markets, which are small, but growing at a fast pace. Market potential exists for fruits like cherries, berries and tangerines; vegetables like asparagus, eggplant, zucchini, sweet peppers and iceberg lettuce; dietetic foods, which the French call health foods; ice cream; beer; soft drinks and ready-to-eat salads for picnics.

AgExporter: How can U.S. exporters take advantage of these opportunities?

Pope: First they must do their homework and make sure their product is competitive. This requires market research. Quality, price and marketability of the product are the most important factors to consider in this highly competitive market.

Market research will reveal which marketing strategy is best for the product. Strategies vary from targeting specific groups of consumers, such as working families, singles, senior citizens or health-conscious consumers, to servicing restaurants, hospitals or hotels.

Market research will also disclose whether advertising campaigns, super- and hypermarket promotions, restaurant promotions or other means are the way to go. We have found that in-store promotions in supermarket chains are highly effective, especially when the unique characteristics, high quality or regional attributes of the product are emphasized.

Attaching a leaflet that explains clearly how the product may be used and why it should be purchased will also help sell the product.

Menu and restaurant promotions are an excellent way to promote products. The French media will cover these promotions for cooking magazines. Food is so important to the French that they look to these cooking magazines for new ways to prepare foods.

Finally, our office can help U.S. exporters break into the French market. We have reports, studies and evaluations on many products that our office, a contractor or one of the foreign market development groups located in Paris have prepared. We can recommend French importers or private sector firms that can help U.S. exporters get their product into the hands of the French people.

AgExporter: Is the French market as competitive as it sounds based on the amount of research U.S. exporters need to do?

Pope: Yes, the French market is highly competitive. It is considered the citadel for fine food and cuisine by people around the world. Not only do French consumers demand quality products at a fair price, but France's highly advanced and productive agricultural sector and its state-of-the-art techniques for processing and packaging foods make it a world leader in the food industry.

As a result, the United States faces tough competition, not only from French food suppliers, but from many exporters within the EU, greater Europe and third countries. Even so, in 1993 the United States was France's heading agricultural supplier outside the EU with exports valued at about $868 million according to French official data.

Although competition in the French market is fierce, U.S. market access to France for specific U.S. agricultural and food products is expected to improve once EU import regulations are melded into one under the new single market. Then goods and services will be able to move freely among EU countries and U.S. exporters will only need to meet one set of rules to export to the whole EU.

These new EU regulations will cover food safety, labeling, additives and phytosanitary requirements. Until they are fully in place, however, French regulations still apply to U.S. imports. (See article on EU import rules, page 14.)

AgExporter: Speaking of market access, how will implementation of the GATT affect exports of U.S. agricultural products to France?

Pope: The GATT agreement will have a positive impact on our ability to ship consumer-ready products to France. It will convert quotas, variable levies and restrictive licensing to tariffs and then reduce them over time, creating even better access to the French market.

For example, most processed products entering the EU and France are subject to additional import charges based on the percentage of sugar, milk fat, milk protein and starch in the product.

These additional charges make some imported processed products non-competitive compared to EU-produced products.

Under the GATT, this will change as these charges are converted to fixed tariffs and reduced over time.

To take advantage of the opportunities from the Uruguay Round, U.S. firms should immediately begin researching the French market so they can get their foot in the door as tariffs are lowered and eventually eliminated.

Even as access improves, however, competition will increase as France's highly productive farms introduce new, very competitive crops to compensate for reduced subsidies.

RELATED ARTICLE: Rungis Market: Gateway to 18 Million European Consumers

Located just south of Paris, Rungis market is the world's largest wholesale market for fresh produce. It offers U.S. exporters a central location from which to distribute products throughout Europe. This multimodal food distribution and storage center is where French and European importers, distributors and dealers buy their fresh meats, fish, fruits, vegetables and flowers.

Food products purchased at Rungis market reach more than 18 million European consumers. The market occupies 573 acres and plans are in the works to expand it another 29 acres to make room for forwarding agents and warehouses. The market is also being modernized so that the display areas and warehouses are refrigerated to meet European specifications.

More than 18,000 people are employed by 1,700 companies whose annual sales amount to about $17 billion. About 2.2 million tons of food and agricultural products, 4 million packages of cut flowers and 17 million units of other agricultural products pass through the market annually.

Interested U.S. exporters visiting Paris should arrange an early morning visit to Rungis to meet potential distributors and to sample the famed onion soup, a mainstay of the historic Les Halles Market, which Rungis replaced in 1969.

For more information about opportunities at Rungis market and future promotional events, contact the U.S. agricultural affairs office in Paris at tel. (011-33-1) 4296-1202, ext. 2767 or fax (011-33-1) 4266-6106.

RELATED ARTICLE: Promotions in France Give Your Products Exposure

One of the best ways for U.S. exporters interested in the French market to "test market" their products is to participate in either a supermarket or menu promotion. These promotions are sponsored by the U.S. agricultural affairs office in Paris, as well as by French supermarket and restaurant chains.

For example, Monoprix - a major French supermarket chain - sponsored a two-week U.S. food promotion in 260 stores throughout France. The promotion included more than 550 products, many of which were new-to-market, supplied by 161 U.S. companies and imported by 31 French firms.

The two-week promotion resulted in more than $7 million in sales of such products as fruit juices, California and Washington state wines, spirits, Tex Mex products such as corn chips and salsas, nuts, cookies, snack foods, crab, Alaskan salmon and fresh fruits such as grapefruits, apples, pears and limes.

This was the second year that Monoprix sponsored a U.S. food promotion. The response has been so positive that other French supermarket chains are planning more "U.S. promotions" in 1995.

Another way to introduce U .S. products to French consumers is through menu promotions. For example, a Tex Mex menu promotion was held at EuroDisney - one of the best venues in France for U.S. exporters to present their products to the millions of French and European consumers who visit the park annually.

During the promotion, sales of featured products increased by 10 to 32 percent. In fact, sales of a Texas beer increased by 163 percent during the event.

For more information about upcoming promotions, contact your importer/distributor in France or the U.S. agricultural affairs office in Paris. Tel. (011-33-1) 4296-1202, ext. 2767 or Fax (011-33-1) 4266-6106.

The interviewee is the U.S. agricultural minister-counselor in Paris, France. For more information about the French market, write to: U.S. Agricultural Affairs Office, American Embassy, Paris, Unit 21551, Box A-218, APO AE 09777, Tel. (011-33-1) 4296-1202, ext. 2767, Fax (011-33-1) 4266-6106.