Australia Artisan Crisp Tender

Riccis Bikkies has taken its preservative-free crisp breads all the way from local delicatessens to national retail chains. With the help of Australias free trade agreements its distinctive artisan pittas are now appearing on supermarket shelves in the US and China.Ricci McAuliffe began baking commercially in her kitchen in 2003 and quickly spotted a gap in the market for artisan crisp breads. Her recipe proved a sensation. Each week demand doubled. In rapid succession Ricci found herself selling to cafes wineries delicatessens and one of Australias largest supermarket chains.With Riccis husband Ross on board the couple pondered broader horizons. The crisp bread product was ripe for export although preservative free its shelf life extended from six months to one year. An invitation from Victorias trade representative in Southeast Asia proved a commercial turning point.I was buoyed by the success we had in Australia and when the Victorians asked us to join a trade mission to Singapore I thought why not export. We travelled to the FHA Food and Hotel Asia event and our crisp breads triggered instant interest. I felt like we could be world beaters.FTAs crucial to small food exportersAustralias free trade agreements FTAs have proven vital to Riccis Bikkies and its export strategy.FTAs are absolutely essential for a small business like ours that cannot reduce production costs says McAuliffe. Paying the normal tariffs can easily double the price of our product overseas. For us Australias FTAs are super crucial and give us incredible access to markets.One-on-one support has also proved essential. According to McAuliffe every little bit of help he receives from Austrade advisors and trade commissioners when hes overseas can make a big difference and turn a potentially challenging new country into a superb new opportunity.Zero tariffs open US marketsOne of these opportunities is the United States a difficult market for non-American food manufacturers but a relatively open market for Australian producers courtesy of the Australia United States Free Trade Agreement AUSFTA.We went to the US because our non-preservative non-additive brand gave our product clear differentiation on US supermarket shelves says McAuliffe. We were the healthy option and our product clearly stood out.Under the AUSFTA tariffs on toasted breads and similar products have been eliminated. The gives Riccis Bikkies a competitive edge over similar European crisp breads sold in the US.We had an incredible level of sales in the US in 20182019 he says. But weve also had plenty of personal support from the highly experienced people in Austrade and from the Victorian Government.Help in challenging marketsAustrades professional advisers have also helped in more challenging markets. According to McAuliffe China has proved a hit-and-miss destination for Riccis Bickies. Large orders have been followed by long silences and enthusiasm isnt always matched with intent.When we first went to China we went with a super trade mission and we were told not to expect immediate success and then we sold 10 pallets on our first day says McAuliffe. But weve also found you can get a great order from China but then no follow-through.According to McAuliffe new market entrants have to be cautious. He reports plenty of excitement at trade shows but many retailers in China have limited experience of buying from Australian companies. On the positive side prior to the China-Australia Free Trade Agreement ChAFTA the tariff for Ricci Bikkies products into China was 20 per cent. However since January 2019 the tariff has been eliminated as a result of ChAFTA.China is a very fast-growing market and you only need one hit one buyer that really understands your product says McAuliffe. China is definitely something you shouldnt ignore if youre going to export. You have to look after your intellectual property and we paid 2500 to register our trademark in China. But I think its worth it if you want to trade there and its a small price to pay.The agility of small exportersThe United Arab Emirates is now one of the companys largest overseas market. McAuliffe says that his companys growth in the Gulf holds lessons for other small exporters.Make sure you do lots of research early on so that you have the right product for the right market he says. In practice this means finding out who you want to sell to and whether your product fits their purchasing criteria. This is where joining trade missions is incredibly valuable. McAuliffe also says that in some ways being small is an advantage in global markets. He observes that compared to large multi-nationals small exporters are more nimble.Its very easy for a small company like ours to add flavours to a product so that we tailor it to a specific market he says. For example we dont have hundreds of thousands of dollars sunk in a particular line of packaging so if we want to adapt quickly we can. In global trade being small means you can be flexible and that is a fantastic advantage.Produced by the Australian Trade and Investment Commission Austrade. You may reproduce the text without prior permission though attribution of the source is appreciated. Please note that copyright restrictions do apply to all photographic images and permission must be obtained before reproduction.