New markets: Where can Polish FMCG exporters look for success?

FoodCare is a Polish company with almost forty years of history. It has three factories, one of which is one of the most modern beverage factories in Europe. The company's operation began with the sale of desserts based on traditional recipes - most of them are still in production to this day. Over time, the company expanded its portfolio of, among other things, instant cakes, cake toppings, fillings, baking additives and jellies. The BLACK energy drink made a sensation on the Polish market in 2011. The new product was a revolution in its category. Over time, fruit, isotonic and vitamin drinks were also added to the range. FoodCare started its expansion into foreign markets in 1990. Export has become one of the pillars of the company's growth.

Our products are present in over 60 countries in Europe, Africa, both Americas and Asia. Thanks to the Polish Investment and Trade Agency, we were able to enter the Mongolian market with our products. Cooperation with CU began last year, a very difficult year. The contract covers our entire beverage portfolio, energy, isotonic and fruit drinks, but also mineral water - explains Angelika Majka, Export Director at FoodCare.

The FMCG sector in Mongolia is an interesting alternative to closer traditional markets, for Polish companies. The high probability of success is confirmed by subsequent Polish-Mongolian business contracts, which PAIH informs about on an ongoing basis. Due to the pandemic, the demand for imported food, including vegetables and fruit, has increased in this Asian country. Polish producers of vitamins and supplements also have a real possibility for expansion there.

Polish companies successfully implement their export plans in Mongolia. Above all, our food products are very popular there. It is worth adding that for many years Poland has been the second largest exporter to Mongolia, taking into account the countries of the European Union. Before the pandemic, the export of Polish products reached a record level of almost USD 65 million. Due to their small production base, the country is dependent on imports. We would like to point out that almost half of the country's population lives in Ulan Bator, which is a very concentrated market. It is a unique Asian country that prefers Western food, and Western food culture is very popular. This is a really good direction for Polish companies - says the head of PAIH’s office in Ulan Bator, Bat-Erdene Boldbaatar.

PAIH is a partner in expansion

FoodCare's success in Mongolia began in February 2020. Then the Agency's office in Ulan Bator organized meetings for Polish entrepreneurs with the management of one of the leading supermarket networks in Mongolia - CU. Its board members came to Warsaw to meet potential contractors. The meetings resulted in several export contracts, including the signing of a distribution agreement between FoodCare and CU in March 2020. Cooperation is developing within the category of energy drinks, isotonic drinks, mineral and flavored waters.

- There are over 100 CU stores in Ulan Bator. The range of products our network offers, includes soft drinks, packaged foods, fresh produce and snacks, this perfectly fits perfectly with FoodCare’s products. We want to increase the volume of their sales, but also introduce new product categories and, of course, new activities to build awareness of Polish products among Mongolian consumers. We value Polish goods for their quality, interesting design, price, but also for the marketing support offered by our Polish partner. Mongolia is a dynamically developing society, the average age is 28 years. Consumers want good quality products. FoodCare products are the answer to this demand - says CU's Import Director, Nyamsuren Dashjav.

As priorities for cooperation, both FoodCare and the CU network indicate sales stabilization, investment in brand recognition and firmly establishing Polish products on the Mongolian market. PAIH’s experts emphasize that another Polish-Mongolian cooperation is proof that even during very difficult times of a pandemic, building effective business relationships in distant markets is possible.

Opportunities await in Mongolia

The FMCG market in Mongolia is estimated to be worth around US $ 1 billion. The main categories of imported products are fruit and vegetables, vegetable oils, sugar, eggs, pork and poultry, powdered milk, chocolate and sweets, soft and alcoholic drinks. This is an opportunity for Polish producers. The Mongolian people associate our products with high European quality.

PAIH’s experts indicate, that a change in the profile of the retail sector began in Mongolia a few years ago. Large foreign companies are investing in modern commercial facilities, such as hypermarkets and convenience stores. 10 leading super and hypermarket chains with over 100 stores already operate in Ulan Bator. There are also 8,000 small grocery stores and over 130 convenience stores. Polish producers, thanks to the very good image of their products, can compete effectively on this market.

- The doors to the Central and Eastern Asian markets were opened by the Poland-Mongolia Business Forum organized by PAIH and the Polish Ministry of Foreign Affairs in Ulan Bator in 2019. Over 200 entrepreneurs and importers took part in the event. Thanks to the Forum, very promising business contacts were established, and the participants clearly became interested in Polish products, especially from the food and agricultural goods sector. Today we can talk about the fruitful effects of these talks - sums up Bat-Erdene Boldbaatar.

The Polish Investment and Trade Agency’s office in Ulan Bator supports Polish businesses in their efforts to enter the Mongolian market, by helping in establishing contacts with business partners and local distributors. Companies which are interested in developing their business outside of Europe, PAIH invites them to take a look at the emerging Asian markets and to contact the Agency. As soon as April 28 there will be free webinar entitled, The Mongolian FMCG Sector - an opportunity for Polish companies. Details can be found on PAIH’s website.

More on the cooperation between FoodCare and CU, the Mongolian market and opportunities for Polish producers you can find in the interview between the head of PAIH’s office in Ulan Bator Bat-Erdene Boldbaatar and CU's Import Director, Nyamsuren Dashjav:

With the help of PAIH, Polish products arrived on Mongolian shelves. More on the cooperation between the leading chain of convenience store CU and PAIH reveals Mr Chinzorig Ganbold, CEO at CU Mongolia:

About the Polish Investment and Trade Agency

The Polish Investment and Trade Agency (PAIH) is an advisory institution operating in cooperation with the Polish Development Fund Group (PFR) under the leadership of the Ministry of Development, Labor and Technology. PAIH is the first point of contact for exporters and investors. It operates both in Poland and through a network of its offices around the world. It strengthens the recognition of Polish brands on international markets, promotes domestic products and services as well as technological solutions made in Poland. The agency helps entrepreneurs choose their optimal expansion path abroad. It also supports the inflow of direct foreign investments to Poland and the implementation of Polish investments in the country. PAIH cooperates with the public sector and regional partners, offering, among other things: training, audit and promotion of investment properties, cooperation in the organization of business missions and communication support in the implementation of joint projects.