The Spices, Condiment and Seasoning Market in Panama

COMMERCIAL REPORT: THE SPICES, CONDIMENT AND SEASONING MARKET IN PANAMA

EMBASSY OF THE REPUBLIC OF INDONESIA IN COLLABORATION WITH MARKET RESEARCH CONSULTANT PANAMA CITY 2020

INDEX

1. INTRODUCTION ...... 4 1.1. Objective ...... 4 1.2. Methodology ...... 4 2. PRODUCT DESCRIPTION ...... 4 3. CURRENT MARKET ...... 4 4. FOREIGN TRADE ...... 5 4.1. Imports ...... 5 4.2. Exports ...... 6 5. MARKET SIZE ...... 6 5.1. Wealth Distribution ...... 6 5.2. Quality of Life ...... 6 5.3. The Panamanian Consumer ...... 6 6. PRODUCT POTENTIAL ...... 7 6.1. Strategies and Promotional Campaigns ...... 7 7. COMMERCIALIZATION AND DISTRIBUTION CHANNELS ...... 7 7.1. Product Characteristics ...... 7 7.2. Suggestions for Entry into the Panamanian Market ...... 8 8. STRUCTURE OF THE PANAMANIAN RETAIL SECTOR ...... 8 8.1. Conditions of Purchase – Sale ...... 9 9. HOTEL, RESTAURANTS AND DISTRIBUTION CHANNEL (HORECA) IN PANAMA ...... 9 9.1. Analysis of the Relevant Participants of HORECA ...... 9 9.2 Commercial Strategy of Relevant Participants of HORECA ...... 10 9.3 Recommendations ...... 11 10. REQUIREMENTS AND IMPORT BARRIERS ...... 11 10.1. Sanitary Registry ...... 11 10.2. Import Declaration ...... 12 10.3. Labeling ...... 13 10.4. Tariff Barriers ...... 13 10.5. Retail and Wholesale Reference Prices ...... 13

11. POTENTIAL BUYERS IN THE MARKET ...... 14 11.1. Representation companies in Panama ...... 14 11.2. Strategy Identification ...... 14 11.3. Selection Criteria for Importer-Distributor in Panama...... 15

CHARTS

Chart No. 1: Import to the Republic, According to Tariff Description and Country of Origin: Year 2017 ...... 5 Chart No. 2: Export from the Republic, According to Tariff Description and Country of origin: Year 2017 ...... 6 Chart No. 3: Food Fairs ...... 11 Chart No. 4: Spices and Condiments Industrials and Distributors ...... 15 Chart No. 5: Spices and Condiments Importers ...... 16

1. INTRODUCTION

1.1. Objective

This document intends to inform about the composition of the Panamanian Condiments and Seasonings market belonging to the HS code 2103.90.39, in order to understand the behavior of the market to successfully introduce this type of Indonesian products into Panama.

1.2. Methodology

Different sources have been consulted to obtain information on this tariff item, such as the statistical data of the General Comptroller of the Republic of Panama and the National Customs Authority (ANA). In addition, the Panamanian Food Safety Authority (AUPSA) and the National Directorate of Technical and Industrial Standards of the Ministry of Commerce and Industries were consulted.

The data presented in this research is based upon the information available during the research process and reflects the lack of updated information and limited access to certain institutions.

2. PRODUCT DESCRIPTION

Condiments, Spices and Seasonings compounds and products are pre-made for human consumption, to be used for food preparations. It is understood by seasoning any food substance aimed at enhancing the taste of food, conferring or nuancing flavor to culinary preparations and getting more original and appetizing dishes. Sometimes they are also used as natural preservatives in different types of foods.

The term seasoning includes both substances obtained naturally and artificially or industrially modified, so we refer to different types of herbs, spices, aromas and essences, seasoning blends, among many others.

3. CURRENT MARKET

Based on inquiries made to companies in the sector, it is worth noting that Panamanians consume the products of the national industry dominated by brands such as Proluxa, La Doña, Keiko, Grajasa, among others. In addition, products are imported from internationally renowned brands from the United States. However, they also consume various emerging brands manufactured in China and many others created by both local distributors and supermarket chains.

Up until 2012, the supply of spices and food seasonings in the Panamanian market was in the hands of local companies such as Productos Lux, S.A. (Proluxsa), Keiko Products and La Doña Products. The production in Panama is concentrated in spices such as oregano, bay leaf, thyme, annatto, paprika, curry, chicken seasonings, garlic powder marinade, cinnamon powder and sticks.

However, these companies had to start competing with one of the giants of the world food market, since Nestlé made the decision to enter this niche through a new line of products of its Maggi brand. According to Nestlé, a series of market studies and direct demands of Panamanian housewives finally led the company to enter this business after many decades of presence in the market of consommés, soups and tomatoes in Central America and Panama.

The new Nestlé line is called Spices & Seasonings Maggi and currently has a wide variety of products, such as ground garlic, garlic salt, onion salt, ground cinnamon, ground pepper, whole seasoning and ground oregano. In addition, it contains a tenderizer that makes the process of cooking meat easier. The Spices & Seasonings Maggi come in two presentations, laminated envelopes and jars, both designed with special consideration in the conservation of the properties of spices and to avoid waste.

4. FOREIGN TRADE

4.1 Imports

CHART No. 1 IMPORT TO THE REPUBLIC, ACCORDING TO TARIFF DESCRIPTION AND COUNTRY OF ORIGIN. YEAR 2017. CODE Tariff Description and Country Total CIF Value Unit (in Dollars) 2103.90.39.00 Condiments and seasonings, except for 7,302,762 sausage manufacturing

Germany 22,874 Warehouses (Panama) 24,763 Austria 8,653 Brazil 389,581 Canada 30,186 Chile 25,484 China (Continental) 43,915 China-Taiwan (Formosa). 298 Colombia 172,209 South Korea 3,207 Costa Rica 643,702 Denmark 1,676 El Salvador 288,497 Spain 538,899 United States of America 2,776,076 France 286 Guatemala 2,089,142 Hong Kong 759 Italy 50,159 Japan 20,638 Malaysia 162 Mexico 50,335 Dominican Republic 169 Venezuela 2,371 Colon Free Zone (Panama) 117,043 Processing Zones (Panama) 1,678

4.2 Exports

CHART No. 2 EXPORT TO THE REPUBLIC ACCORDING TO TARIFF DESCRIPTION AND COUNTRY OF ORIGIN. YEAR 2017. CODE COUNTRY AND TARIFF DESCRIPTION FOB VALUE (IN DOLLARS) 2103.90.39.00 Condiments and seasonings, except for sausage manufacturing Chile 212,809 Costa Rica 91,065 Cuba 2,093 Dominican Republic 2,425

5. MARKET SIZE

The population of Panama is 3.5 million inhabitants, according to data from the last Population and Housing Census prepared by the National Institute of Statistics and Census of the Comptroller General of the Republic in 2010.

It should be noted that the population is relatively young: 27.7% is under fourteen and only 7.3% of the people who live in the country are over 65 years old. Life expectancy is 78.1 years and the median age is 28 years. The ethnic structure is very varied, with the Hispanic-indigenous group being the most important which operates in all areas of economic activity.

5.1. Wealth Distribution

In 2018, around 37% of the population was poor. For urban areas 80% was rich while 20% was not, of which 5% is in extreme poverty. When analyzing indigenous areas, the figures are quite the opposite, 99% of the inhabitants were poor and 90% were in extreme poverty. On the other hand, when we look at the non-indigenous rural sector, around 55% were poor.

5.2. Quality of Life

By 2017 the quality of life of Panamanians was considered as good. The provinces of Coclé, Colón, Herrera, Los Santos and Panama had the best index , according to the results of the first National Survey of Health and Quality of Life (ENSCAVI) conducted by the Ministry of Health, the Gorgas Memorial Institute for Health Studies (ICGES), the General Comptroller and the Ministry of Economy and Finance (MEF).

5.3. The Panamanian Consumer

Globalization and the arrival of foreign information by digital means have increased the purchasing power of Panamanians. Those with more income have the possibility to spend on more expensive and different products. An example of this is clearly seen in the marked tendency by the Panamanian consumer to prefer organic products. Despite having, on average, a value of between 20% and 30% higher than products that do not follow ecologically sustainable practices, organic production is free of chemicals. In Panama City, there are at least 12 prestigious restaurants that

6 serve organic products in their menus, in order to appeal to this new taste of the Panamanian consumer.

6. PRODUCT POTENTIAL

The market for condiments, spices and seasonings has been increasing according to import statistics. On the other hand, the rapid economic growth that the country has experienced has given it space to form social sectors with greater purchasing power, which demand a more varied food supply, open to knowing and consuming new products, to enjoy dishes with new flavors at home.

The consumption of these products is stable throughout the year. People consume this product in their homes on a regular basis mainly to dress all kinds of meat, prepare sauces, season broths and rice, among others. Restaurants also use these types of condiments and seasonings for their preparations, opening up the possibilities to diversify not only condiments, but also the formats for sale. These are purchased, for the most part, in person, at supermarkets or stores.

6.1. Strategies and Promotional Campaigns

As the products are considered for mass consumption, promotion strategies are oriented to all market segments. Promotional campaigns vary, such as, for example: being entered into popular raffles, leaflets to be filled with stickers to be exchanged for household products, among others.

Another promotion mechanism is tied sales, with similar products or of simultaneous consumption. At the same time, the demonstration of the product is also used at the points of sale, by the manufacturer, for example the preparation of chicken seasoned with the product, in electric pans and they are given to the public to taste. Television programs where chefs are presented to cook are also favorite places to present the products.

7. COMMERCIALIZATION AND DISTRIBUTION CHANNELS

Businesses in Panama are carried out almost exclusively in the capital, where most of the headquarters are settled. The capital also concentrates the most population and the population with the highest purchasing power. Much of the retail trade is done in supermarket chains and in a very minority in small businesses.

In the countryside, these small businesses carry out an important part of the sales. Likewise, supermarket chains have their own distribution and import companies. Furthermore, there are several import and distribution companies, not linked to supermarkets that also have a presence in the countryside. These businesses usually look for products with heavy rotation and easy selling.

Likewise, there is a supermarket for sales in large and wholesale formats such as PriceSmart and Mega Depot (part of the Super 99 chain).

7.1. Product Characteristics

In general, the presentation of the product for retail is usually in the same format and packaging in which it is sold by wholesalers and distributors. Currently, the commercialization of these products usually occurs in carefully selected plastic or glass containers, without neglecting the traditional envelopes in different sizes such as 10 grams, ½, 1 or 2 pounds.

In the case of restaurants, which use large quantities, larger presentations for the production are available upon their request.

7.2. Suggestions for Entry into the Panamanian Market

1. Make a Marketing Plan, with an adequate promotion, accompanying your distributor in the process of positioning the brand. Make promotions at points of sale, with tastings, recipes, promotional gifts (wooden pallets, gloves for heat, etc.) 2. Highlight the origin of the product 3. Advertise in specialized magazines, design a media plan to be known in the first stage 4. Participate in fairs and events, which allow to promote, for example, Exporural, Gastronomic Panama and Gourmet Expo or to make events in hotels, supermarkets with tastings of dishes prepared and seasoned with these products. 5. For years, impactful gastronomic events have been taking place with excellent participation of internationally renowned chefs such as local, producing and distributing companies of the food industry, restaurants and hotels. With the aim of promoting Panama as the epicenter of multicultural gastronomy in Latin America, that is why participation in these events is an excellent gateway for Indonesian products 6. Panama can be entered in two ways: by price or quality, each company must choose its target according to its product 7. Sales of food with private label, or brand of the supermarket, is a method that has strength in this market and could well be offered by companies as they can make sales to large volumes

8. STRUCTURE OF THE PANAMANIAN RETAIL SECTOR

The Panamanian retail sector is characterized by three large subsectors: • Modern supermarket chains • Mini markets • Traditional subsystem of kiosks, plazas, shops or others

Supermarket chains are the most dynamic in investment and growth. They can be national or multinational chains, some counting with their own import or marketing company to stock up. Though they have strong purchasing and distribution capacity, there are also signs of market imperfections in these chains 8that, based on their strong distribution power, threaten the supplier with serious demands for low prices, deferred payments, unfair returns of products and others practices harmful to the producer and the supplier. Supermarkets are very difficult companies to deal with, whether by businessmen or suppliers, as it is not a market with a wide competition.

Mini markets and intermediate dealers in Panama, according to China507 informative portal, handle another 50% of the food supply. Almost 90% are owned by new Chinese immigrants, which in a way have not been fully integrated into the country. There is difficulty addressing these businesses, even by the language of their owners, who do not master Spanish.

This distribution channel in Panama is as important as it is complex; important for the great capacity of sale, and complex to handle it for someone who is not of Chinese ethnicity.

Traditional subsystem of stores and plazas, it is the oldest one but it loses ground on a daily basis, suffering from low sales capacity, without capital or business space in the country. They do not reach 20% of the national supply capacity.

8.1. Conditions of Purchase – Sale

Common conditions depend on the product and the preexisting knowledge between exporters and importers. These links lead to business-to-business negotiations, where CIF or FOB prices are defined (almost always CIF) and forms of payment (usually a bank letter of credit). In imports of smaller, newer, or of higher risk items, the Panamanian importer prefers CIF negotiations, with a defined price, all costs and risks covered by the exporter to the CIF port.

In the new negotiations, the importer opts for conservative, low-risk behavior, while the costs, risks are reduced and prices are stabilized. But with mutual knowledge between exporters and importers, both negotiations and standards, procedures and health issues (sampling of goods), negotiations can become agile and concrete. Once a mutually trusting business relationship develops between exporters and importers, it is common to establish an “open account” method to facilitate gradual payments, thus avoiding the impact of bank transfer costs.

9. HOTEL, RESTAURANTS AND COFFEE DISTRIBUTION CHANNEL (HORECA) IN PANAMA

In Panama, there are several companies with experience in the distribution of products to the different distribution channels, and the HORECA channel has taken great importance in recent years, where these companies have created their own FOODSERVICE division and new companies have entered. The distribution companies make their own imports and have a sales force for each sector, vendors for supermarkets, hotels and restaurants. Among the main companies that provide this service are:

1. Grupo Barsash http://www.grupobarsash.com/ 2. Empresa Tagaropulos, S. A. www.tagaropulos.com/ 3. Proserv Superior Food service http://www.proserv.com.pa/ 4. Ermis, S. A. http://www.ermisfoodsupplies.com/ 5. Interfood (International Franchise Food Service, S. A.) www.interfoodpanama.com/ 6. Pedersen Fine Food http://www.pedersenfinefood s.com/ 7. H. Tzanetatos, Inc. http://www.htzanetatos.com/ 8. Martin Brower http://martinbrower.com/

9.1. Analysis of Relevant Participants of HORECA

The service to restaurants and hotels is mainly managed by companies that already have a distribution fleet and have a well-established logistics system. An example of this is the company H. Tzanetatos, Inc. which is one of the largest distributors of mass consumption products in Panama, of both own and imported brands. For more than 50 years, H. Tzanetatos, Inc. has been dedicated to distributing leading brands in different segments. To support the aforementioned channels, the company has its own fleet of more than 90 vehicles nationwide, including large trucks, medium trucks, refrigerated trucks, panels, mules and containers. The company carries out all the processes to the distribution activities, which are: purchase, reception, storage, conservation and distribution. H. Tzanetatos, offers its services to hotels such as the Sheraton Bijao Playa Blanca, to whom they distribute cheeses, wines, spirits.

Another company is Interfood. Initially, it only provided the logistics and distribution service nationwide. Today, it imports and distributes quality products to hotels, cafes, bars and restaurants. It has a fleet of premium vehicles and warehouses that provide a service that is based primarily on its

9 standards, where it is considered a strategic partner. Among its main clients are: Maritanos Café, Taste Amor Coffee & Deli, Dunkin’s Donuts, Riu Panama Hotel, Tony Roma’s, Zaquella Restaurant, Subway and Tapas y Vinos.

The company Proserv provides, since 1999, service to the Food Service, by performing the tasks of importation, distribution and logistics to its customers. This company offers its customers dry, chilled and frozen products, among others, meats, seafood, vegetables, coffee, tea, chocolate, dressings, oils. Among its clients we can mention Burger King, T.G.I. Fridays, Copa Airlines, Sheraton Hotels & Resort, Benihana, Bristol Hotel, Hard Rock Café, Marriot Hotel.

Martin Brower is the main supplier of the McDonald’s restaurant chain. Its main suppliers are from the United States and Central America. According to reports, a company in Argentina called Arcos Dorados is responsible for approving the products and provides the guidelines to make purchases for this franchise. Any producer interested in being part of this network should contact this subsidiary.

9.2. Commercial Strategy of Relevant Participants of HORECA

Commercial policy

In Panama, customers of the HORECA market are divided into different sectors: restaurants, hotels and grand cafeterias. The 5-star hotels send their requirements to the companies that can offer the products required and make a tender where the main points are the quality of the product, quality of the service of the supplier and price. The 3-star “all-inclusive” hotels buy based on the price of the products, the 4-star and 5-star hotels seek a better price and quality ratio, which allow them to offer their guests a product and service according to the rates without sacrificing profit margin. In the restaurants of the city, they also look for a good price and quality ratio, where they can offer exclusive dishes.

Supplier Policy

These companies regularly listen to the customer and are attentive to any new requirements they may be requesting or, depending on the products that already matter, they see the possibility of entering with new merchandise. All are open to receive new proposals for distribution. These companies also attend national and international fairs in search of new products that they could offer in their portfolio.

Positioning and image

Importing and distributing companies receive the support of their suppliers in terms of advertising, be it television, print or radio. Manufacturers provide a percentage for promotion, depending on purchases made annually. Importers make promotions of the products they import by showing them, at tastings, fairs, etc. Social networks are a widely used means for positioning. Through this mean they gift these products, after the user has mentioned their friends, or shared the promotion made.

Own brand policy

We only see the brands for this distribution channel in franchises, mainly in the American ones, which use them in almost all their products. In hotels and restaurants, they use their own brands in regular sugar, coffee creams, and bottled water.

9.3. Recommendations

The promotion of the products is crucial, so that the Panamanian market knows the merchandise with the potential to enter and remain in the distribution channel. It is recommended to participate in the international trade fair EXPOCOMER which takes place every year in March at the ATLAPA Convention Center.

Chart No.3 Food Fairs Name Telephone E-mail Website Expocomer 207-3434 [email protected] http://expocomer.com/ Panamá 396-0375 [email protected] Gastronómica m Panamá Food 222-2221 [email protected] http://www.panamafoodshow.co Expo Show om m/ Phone number:

It is also important to highlight that the big brands have a promotional force where they give promotional material and more extensive lines of credit to their distributors It is suggested to promote and encourage the participation of exporting SMEs in the Gastronomic Festivals of the region by providing products and conducting commercial missions to publicize the new products. In the year there are several specialized fairs in the sector where you can make known the new offers that you have for the market.

10. REQUIREMENTS AND IMPORT BARRIERS

There are two main procedures that must be carried out for the importation of products: the Sanitary Registry and the import declaration of products.

10.1. Sanitary Registry

In order to obtain the Sanitary Registry for importation and introduce the food product into the national territory, an application must be submitted to the Panamanian Food Safety Authority (AUPSA), whose main objective is to protect the human, animal and plant health of the country.

The request must be legalized upon payment of USD 4.00 in stamps and seals, and must include the following information:

• Product name and description • Manufacturer's Name • Place of origin (Country, Province, City) • Name of the Importer or Applicant (Taxpayer Identification Number and DV of the company, address and telephone) (the applicant can be a foreign natural person)

The following documents should also be submitted:

• Free Sale Certificate (C.L.V.) of the country of origin (Original), duly authenticated by the Panamanian consular authorities at the issuing site. The accepted validity is 1 year. The CLV must specify the product to be imported and that it is for consumption and free sale in the country of origin. When the trade name to be registered is different from the original, it must be specified in the certificate. • Qualitative-Quantitative Formula of the product, specifying each ingredient and its content including the additives used. Ingredients and additives must be detailed according to international nomenclature. • Description of the method of manufacturing the product, explaining the transformation of the raw material from the beginning of the process to the final product. It should include storage temperatures, time and pasteurization temperature when appropriate. • Specification of the type and packaging material in which the product is contained. • Information regarding the conservation and biological stability of the product. Also including the method used to determine it. • Declaration of the date of production and expiration, and description of the lot coding system and its interpretation according to what is stated in the product labeling. • Four original product labels, which have the complete information required according to current legislation. • An image of the product, can be printed or on CD. When the packaging is difficult to handle (cans, large boxes, bottles with the information recorded directly on the package), they must provide identical art to the original. With this registration, an appointment must be requested at AUPSA to verify the information, which will be evaluated by the agency and a registration certificate will be generated.

10.2. Import Declaration

Through article 115 of Cabinet Decree No. 41, it is indicated that any person from abroad that sends merchandise to the Republic of Panama by means other than the mail, will be safeguarded with the following documents:

• The original commercial invoice (with the name of the place where it is established or domicile of the person, house or firm that sells the merchandise and its address, date on which the sale is verified, name of the buyer in Panama and the consignee; class, quantity and description of the goods, and the partial and total price of the goods) • Bill of lading (air waybill, waybill, negotiable maritime shipping bill, multimodal knowledge, etc., as appropriate) • The respective permit in cases of restricted import

As mentioned before for the specific import of food, the procedures are carried out through AUPSA. According to article 38 of Law Decree No.11 of February 22, 2006, under the National Directorate of Standards for the Importation of Foods, it has the function of issuing the sanitary requirements that food must meet for its introduction to the national territory.

Thus, to enter food, the importer must register them via the web in the Food Import Notification System (SISNIA) 48 hours before the product enters Panama. First, the importer's data must be entered, and then the second part of the form must be filled out.

For prepackaged foods it is mandatory that it contains a Sanitary Registration No. in order to access the SISNIA; registration must be requested, which can be done both as a legal or natural person, the latter can be a foreigner. Likewise, the containers must be sealed (marching, strapping) and sealed so that said seals can only be removed in the presence of the respective sanitary authorities, the country of transit and / or destination. AUPSA reserves the right to take the required samples, for the analysis of the organoleptic characteristics, determination of additives, toxic residues and for the microbiological analysis of pre-packaged food products.

10.3. Labeling

According to the Panamanian Food Safety Authority, the labeling of food products imported by Panama must contain the following information:

• Name of the manufacturer • Address and country of origin • Expiration date • List of ingredients or components • Lot number • The state of the product, for example, liquid, powder, etc.

At the same time, the General Directorate of Industrial Standards and Technology, member of the International Standard Organization (ISO) and under the Ministry of Commerce and Industries, through Standard No. 52 of 1978 established the requirements for food labeling, packaged for Human Consumption.

Thus, these should be labeled in accordance with the provisions of the Codex Alimentarius, Food and Agriculture Organization of the United Nations (FAO) and World Health Organization (WHO) Standards for food, food additives and food packaging. But Panama, being a very open market with little industrial production, imports a large part of its food consumption, mainly processed products.

For this reason, it is very important to have the sanitary records of the products, and verify the labeling standards that Panama requests or the product won’t be allowed entry.

10.4. Tariff Barriers

According to the General Directorate of Customs in Panama, this tariff item of Condiments and mixed seasonings is exempt from levies.

10.5. Retail and Wholesale Reference Prices

The currency of Panama, the Balboa, has a fixed change in parity with the US dollar, which is the currency used alongside. The Imperial measurement system is also often used, though recently the Metric system was implemented.

The variation of the prices depends basically on the origin and the brand of these. In this case, there is great competition both nationally and abroad, which generates highly competitive prices. As for the profit margins for these products there is no regulation, so the distributor will establish the margin that he considers appropriate and will get 20% to 25%. For their part, retailers, depending on their target market, work with similar percentages.

11. POTENTIAL BUYERS IN THE MARKET

11.1. Representation Companies in Panama

A better structured channel and route for the arrival of foreign clients who wish to sell food and groceries in Panama is through Agencies or “Commercial Representation Companies”, with a long tradition and capacity in the country.

Panama has important commercial experience, and part of it is manifested in the existence of "Commercial Representation Companies", which specialize in representing businessmen and exporters from various countries, both to make negotiations within Panama and outside it. They have great logistics of all kinds to fulfill this task: in ports, in transport, in wholesale, refrigerated and natural wineries; and most importantly, commercial and financial experience to comply with this management.

Sales of single unit import no less than a container and taken to the warehouses in Panama where the products are divided and distributed to many customers in different orders and times. With these items, the Panamanian importer collects the varied and dispersed demands of a large clientele, consolidates orders and carries out the importation, handling the logistics strategy and delivery of volumes and orders.

Another advantage of these companies is their ability to open markets, even for unfamiliar items, since they know the country, the demands and have well-researched distribution channels and up-to-date data. They work with margins of 10 to 25%, according to products, difficulty of commercialization, accreditation of products, etc.

For smaller items, such as spices and condiments, these companies are required to promote sales in Panama, given their knowledge of sales channels.

11.2. Strategy Identification

In the process of identifying strategies, purposes, novel ideas and comparisons for this type of product, valuable and reliable resources can be found by contacting potential partners or consulting with retailers such as supermarket chains, importers and distributors; restaurants, hotels and others; and national manufacturers that distribute their products locally. Proluxa, La Doña, Doraz, Sansae, among others stand out.

For the introduction of such products to the market it is essential to use the figure of a distributor for the following reasons:

• Has ownership of the product • Assumes the risks of the local market • It has storage capacity • Provides financing to its buyers • Provides after-sales services

It also has additional advantages such as maintaining the inventory, the possibility of sharing promotion costs with the exporting company, the development of a specific clientele for the customer (place) and the realization of most of the operational work (import procedures, non-tariff barriers, marketing).

The services provided by an importer-distributor are important because they can be helpful at the start of the export activity or because their knowledge of the market is convenient.

11.3. Selection Criteria for Importer-Distributor in Panama:

• Sales force • Traceability • Geographic analysis • Mix of products and services • Customer profile and marketing policies

As for exclusive brands in Panama, the products marketed under this concept are those that belong to and are sold by retailers, wholesalers, restaurants and distributors to be sold in the respective market segments.

Distributors in Panama are mostly importers who have business structures that cover the channels related to details and the HORECA channel, the latter being of vital importance to access important market niches such as Peruvian restaurants.

Chart No. 4 Spices and Condiments Manufacturers and Distributors Company Address Tel. Email Website AGENCIAS VIa Fdez de 229-6253 LUGO, S A Córdova AJIMPEX, S A 4th St., Parque 323-2782 Lefevre, L 16 8-b Frente Ph Montana BALTIMORE 4th Ste, La 236-7640 recepcion@ SPICE Loceria, Sittcon recepcionbaltimore PANAMA, S A Building, Local No. spice. 3 bma.com GRAN JAPON, Via Jose A. 233-02505 [email protected] S A Arango, Urb. Villa m Ine GRIFFITH Via Tocumen, 271-0766 http://www.griffithfoods.com/ LABORATORI Mañanitas, ES Ofibodega 1 INDUSTRIAS 1st St., Centro 233-1780 delidas@cwpanam http://www.delidas.com/ DE ELIDAS Industrial Llano a.net Bonito INDUSTRIAS Res El Bosque 230-3205 LOTY Amelia D De Icaza MUTISA, S A 40 St. East, House 225-7427 4-50, between Cuba Ave. And Justo Arosemena Ave.

PRODUCTOS 9th St., Parque 221-7061 administracion104 http://www.productoskeiko.a KEIKO Lefevre L7 @productoskeiko.c mawebs.com/ om PRODUCTOS 3rd St., Villa de las 220-1000 publicidadymercad https://www.ladona.com.pa/ LA DOÑA Acacias [email protected] PRODUCTOS 97 St. East, Parque 224-9095 http://www.proluxsa.com/

LUX, S A Lefevre SANSAE San Miguelito 301-3850 [email protected] https://sansae.com/ om

Chart No. 5 Spices and Condiments Importers Company Address Tel. Email Website GLOBAL Centro 303- [email protected] https://dicarina.com/ PRODUCTS Logistico. 1550 EXT: AND Domigo 102 LOGISTIC Diaz Ave. SERVICES INC. (DICARINA) ISTHMIAN 229-4242 [email protected] http://www.itcpanama.com/es/ TRADING CORPORATI ON PROSERV, Punta del 291-8500 [email protected] https://proserv.com.pa/ S.A. Este Residenti a, Main Street, Tocumen SI ES 15th St., 278-0835 [email protected] https://www.siesnat.com/ NATURAL, Río Abajo, S.A. Warehous e in front of Multipack DRAGO José 395-1813 https://www.instagram.com/drag CORP. Agustín ocorp/?hl=es-la Arango St., Centro Comercial Building PH Samax, Warehous e 8, Tocumen

NESTLE PANAMA, S. A. QUALITY Via Italia 302-0270 [email protected] https://www.facebook.com/qualit FOODS m yfoodspty/ HOLDING CORP H Via 305-8100 http://www.tzanetatos.com/ps/ TZANETATO Tocumen, S INC in front of the entrance of Bello Horizonte . IMPORTAD 86th St. 222-0528 [email protected] http://nimar.com.pa/ ORA Y East, EXPORTAD Parque ORA Lefevre NIMAR, S. A. NTERNATIO Las 217-4564 http://www.interfoodpanama.co NAL Mañanita m/ FRANCHISE s, José FOOD María SERVICES Torrijos (IFFSSA), Ave., S.A. Galores Building CASA JUAN 6656- [email protected] https://www.facebook.com/CasaJ SIU, S.A. 9289 uanSiu/ FELIPE Tocumen 302-5555 [email protected] https://felipemotta.com/ MOTTA, Commerci S.A. al Park, Domingo Díaz Ave. EMDITECH Magatech 221-1705 http://magatechpty.com/ INC , INC., Via [email protected] España, 8th St., local No. 16, Rio Abajo GLOBAL Via Brasil, 303-1444 [email protected] https://www.globalbrands.com/ BRANDS No. 47, PANAMA, S. Obarrio A. PRODUCTO Via 320-8400 [email protected] http://www.proprestigio.com/ S DE Transístmi PRESTIGIO, ca, Milla S. A. 8, Omar

Torrijos, San Miguelito AGENCIA Jose 221-9877 http://www.agenciapalmlopez.co PALM Agustin m/product-tag/panama/ LOPEZ, S.A. Arango Ave., Villa Maria, Laboratori os Building CALOX Industrial 360-3600 [email protected] http://www.calox.com.pa/ PANAMEÑA Area , S.A. Harry Eno, Via Ricardo J. Alfaro GOURMET Via Brasil, 229- administracion@mychocola https://www.mychocolatisimo.co MANAGEM Chocolatís 7662/63 tisimo.com m/gmp ENT imo PANAMA Building, INC 2nd floor AGENCIAS 84th St. 302-2372 [email protected] http://www.agenciasescoffery.co ESCOFFERY, East m m/ S.A. ESPECIALID Los 395-3205 infopa@especialidadesgour https://especialidadesgourmac.co ADES Almendro mac.com m/ GOURMAC s, PANAMA Capricorni o St, No. 18, Juan Diaz DIMEX 64th St. 226-5662 [email protected] http://grupodimex.com/ PANAMA, S. And 50th A. St., PH Varibe, Ofic 101, San Francisco FEAX Industrial 278-0784 [email protected] http://feaxint.com/ INTERNATI Park ONAL, S. A. Orillac, 2nd St. Feax Internacio nal Building