Ecuador: a growing market for U.S. cereals.

Popular American breakfast cereals can now be found on more and more breakfast tables in Ecuador. Many cereal varieties have gained in popularity in this South American country, especially among children. Youngsters in Ecuador are just like their American counterparts. They love finding prizes

But the Ecuadorean market potential for U.S. exporters is based on more than successful cereal promotions. Consumer attitudes about cereal products, local tastes and economic growth are three factors that directly affect this growing niche market. Ecuador's economy is expected to maintain about a 4-percent growth rate for the near future. As long as this economic trend continues, the market for breakfast cereals is expected to expand.

Trends in Consumption

Breakfast cereals in Ecuador are a $4.7-million market, with imports accounting for 47 percent of the total market. In fiscal year 1996, the United States exported $260,000 in breakfast cereal products to Ecuador.

Even though American-style breakfast cereal is not a traditional Ecuadorean food, consumer attitudes toward U.S. products are extremely favorable. Despite higher costs of imported foods, American breakfast cereals are often preferred to Ecuadorean national brands. One reason is the size of cereal packages in Ecuador, which are smaller than those in the United States.

The typical consumer of American cereal comes from upper or upper middle class families who live in urban Ecuador. They have been exposed to the American culture and are familiar with the leading U.S. brands. Consumers in Ecuador prefer simple tastes in cereals such as corn flakes and the sugary, chocolate cereals. Package designs popular in the United States are also well-received in Ecuador.

Package and Label Designs

U.S. cereal exporters planning to export to Ecuador must meet the country's packaging regulations, which are in accordance with the sanitation and safety standards established by the Codex Alimentarius Food and Agriculture Organization/World Health Organization Food Standards. The size of cereal packages must not deceptively represent the quantity of the products inside.

Cereal box labels cannot contain pictures or words that misrepresent the product in any way. Packages must have a visible printed or glued label or tag in Spanish printed in legible characters with the name of the product, trademark, lot identification with the date of fabrication.

Cereal packages also require the name and address of the manufacturer, packager and importer; the distributor, or legal representative of the products; net content in standard international units of measure and specifications of any artificial food additives. Packages must also include the sanitary registration number, expiration date, list of ingredients, country of origin, nutritional information and instructions for use and storage.

U.S. packaged foods exported to Ecuador from the United States are subject to a 20-percent tariff.

U.S. exporters interested in exporting U.S. cereal products to this market can contact the following major importers in Ecuador:

Importadora El Rosada (main office) 9 de Octubre y Boyaca P.O. Box 260 Guayaquil, Ecuador Tel.: (011) 593-4-322555/322000 Fax: (011) 593-4-328196 Contact: John Czarninski, Manager

Mi Comisariato (Branch of El Rosado) Nuqez de Vela e Ignacio San Martin P.O. Box 17-17-48 CCNU Quito, Ecuador Tel.: (011) 593-2-445076/249-556/467222 Fax: (011) 593-2-445076 Contact: Alejandro Lagos, Regional Manager

Supermaxi Eloy Alfaro y Avigiras P.O. Box 17-11-04910 CCI Quito, Ecuador Tel.: (011) 593-4-410140/401100 Fax: (011) 593-4-404096 Contact: Ronald Wright, Manager

El Extra San Francisco y Villalengua esq. P.O. Box 260 Quito, Ecuador Tel.: (011) 593-2-460209/252759 Fax: (011) 593-2-254582 Contact: Sergio Perez, Manager

For assistance or questions about exporting U.S. cereal products to Ecuador, U.S. exporters should contact:

Daryl Brehm, Agricultural Attache The American Embassy, Lima AMEMB FAS/Lima Unit 3785 APO AA 34031 Tel.: (011-51-1) 434-3000/434-3042 Fax.: (011-51-1) 434-3043 Telex: 25028 PE USCOMATT

Daryl Brehm is the agricultural attache and Susana Sanchez is an agricultural assistant at the American Embassy, Lima.