Kosher food
products aren’t just knishes and gefilte fish anymore. They range from beef jerky to
biscotti and from sun-dried tomatoes to surimi.What’s To Nosh? A Growing Niche Market for Kosher Foods, That’s What
Around the world, market opportunities for kosher food products are growing, and it appears this trend will continue. In the words of Menachem Lubinsky, President of Integrated Marketing & Communications, Inc., a firm that tracks kosher foods, "Opportunities for U.S. kosher food products overseas have only reached the first floor."
Why the new appeal? Reasons for the kosher sector’s worldwide growth potential are similar to those in the United States, where kosher foods already have gone mainstream. Industry experts say:
Kosher food
products aren’t just knishes and gefilte fish anymore. They range from beef jerky to
biscotti and from sun-dried tomatoes to surimi.And the Survey Shows. . .
Last year, U.S. agricultural attachés in Austria, Belgium, Brazil, Canada, Chile, Costa Rica, France, Germany, Italy, Mexico, the Netherlands, New Zealand, South Africa, Spain, the United Kingdom and Venezuela responded to a Foreign Agricultural Service (FAS) survey seeking information about U.S. kosher food export opportunities. (See "Kosher Food Contacts Around the World" on the FAS home page at http://www.fas.usda.gov under News & Information, AgExporter magazine for more details.)
From Brazil to New Zealand, plenty of demand turned up for kosher food products. U.S. agricultural trade officer Robert Hoff, who was stationed at the U.S. Consulate in São Paulo, Brazil, noted, "Rib steaks, rib roasts and vacuum-packed meat are valuable kosher products that can’t be found in Brazil -- a potential market niche for U.S. exporters." In Wellington, New Zealand, U.S. agricultural attaché Gary Meyer reported that, "Importers think that North American kosher products have great opportunity here."
Not only is there a demand for kosher foods in Austria, Brazil, Chile, New Zealand and Spain, but respondents indicated that these countries do not produce enough kosher foods domestically and must import. U.S. agricultural counselor Frank Lee, who was stationed at the U.S. embassy in Madrid, Spain, said, "Despite the rudimentary marketing system, some opportunities exist for U.S. exporters to sell kosher foods in Spain." Major suppliers, according to survey results, include Argentina, Canada, Germany, Israel, Italy, Norway, Poland, South Africa, the United Kingdom and the United States.
Although Belgium, Canada, Costa Rica, France, Mexico, the Netherlands and Venezuela themselves produce and export either the raw materials and ingredients used to manufacture kosher foods or the finished processed product, these countries still offer opportunities for U.S. kosher food exporters.
According to Norval Francis, who was the U.S. agricultural minister-counselor in Mexico City, Mexico, from February 1996 to July 1998, "The Mexican trade thinks kosher food products have good growth potential because hotels and restaurants purchase kosher products for quality reasons, while many in Mexico’s Muslim community follow halal requirements, which are similar to kosher requirements."
As Dr. Avrom Pollak of Star-K Kosher Certification in Baltimore, Maryland, explained, "Halal slaughter and processing of meat and poultry products is equivalent to kosher slaughter and processing practices for meat and poultry. As a result, Muslim countries and Muslims at times will accept kosher certified meat, but without a kosher certification symbol."
Ethnic Appeal Increases Kosher Consumption
Kosher foods are gaining ground in unexpected places around the globe as people discover the new and exciting tastes of ethnic foods.
"Kosher foods are of interest in Japan because they are part of an ethnic identity," said Dan Berman, director of the agricultural trade office in Osaka, Japan. "The image of the New York deli has good potential, which we hope to promote. For example, a specialized Japanese company, already regularly importing bagels by the 40-foot container load and selling them in department stores, is very interested in expanding its kosher product line."
Also, the Star-K Kosher Certification agency recently opened an office in western Australia to provide the Far East with kosher certification services for food chemicals.
In Italy, an increasingly international population has fueled a rise in kosher food sales. "Italian consumers have shown a growing interest in purchasing ethnic foods," noted former U.S. agricultural trade office director Holly Higgins, who was stationed at the American Consulate in Milan, Italy, from September 1992 to August 1997. "While still considered a niche market, kosher is part of the same expanding ethnic scene that’s brought forth new ethnic restaurants and an increasing number of specialized shops in large cities."
Variety and Quality Are Kosher Keywords
Kosher items are growing in popularity, not only because people are more open to trying ethnic foods, but also because they are finally realizing that kosher foods aren’t just matzoh or bagels and lox.
For example, the largest number of kosher food products sold in France are snacks,
condiments, sauces and wines. Production 
of kosher ice cream has begun to supply demand for kosher sweets and
desserts in Brazil. The fourth largest supermarket chain in Chile stocks Pringle’s
potato chips, M&M Mars candies and Philadelphia Brand cream cheese, each with kosher
certification.
Richard Blabey, the U.S. agricultural attaché in Santiago, Chile, reported that the manager of the only Chilean delicatessen to import and sell kosher food products believes there is a potential niche for kosher frozen dinners and canned foods due to the growing trend toward ready-to-eat foods.
Then there’s the perception of quality and wholesomeness. Richard Barnes, who was the U.S. agricultural minister-counselor in London, United Kingdom, from July 1994 to July 1998, noted, "Non-Jewish consumers are being drawn into eating kosher foods, which are frequently marketed as healthy, nutritious foods."
Besa Kotati, U.S. agricultural counselor in Pretoria, South Africa, made a similar point: "A lot of new buying power is coming from black consumers, who are interested in quality products, including kosher foods. The general public is not very informed about kosher products, but consumes them because of their high quality."
Kosher Foods Served in the Air, on the Ground
Around the world, consumers can find kosher food products in more and more places -- supermarkets and delicatessens, airlines and trains and hotels and restaurants.
"Kosher food imports into France appear to be increasing, especially since Cash Casher Naouri -- a specialized kosher supermarket -- entered the market a few years ago," said Mattie R. Sharpless, U.S. agricultural minister-counselor in Paris, France. "This chain has 16 supermarkets throughout France, offering more than 1,600 different kosher products."
Both
Belgium’s Sabena Airlines and the Netherlands’ KLM-Royal Dutch Airlines serve
kosher snacks and meals on request and have been looking for U.S. kosher food suppliers.
Italy’s railway system recently began offering kosher and halal dishes on its
high-speed regional trains that transit France, Austria, Switzerland and Germany. In
Canada, a wide variety of combination bakery and restaurant or delicatessen and restaurant
serves kosher food diners, while several major hotels offer separate kosher kitchens for
banquets and meetings.
Tips for Marketing Kosher Food Products
Kosher food exporters, distributors and manufacturers interested in expanding sales to foreign markets face many challenges. Among them are differences in language, packaging, labeling, weights and measures and competitive pricing.
According to Menachem Lubinsky of Integrated Marketing & Communications, Inc., "U.S. exporters must first identify their markets and then find an importer to represent them in those markets."
As with other specialty products, supermarkets do not tend to import kosher foods directly because the volume is small. Instead, they rely on specialty importers and distributors that provide a full range of products and services. They can: maintain regular contact with buyers, work with the foreign government and handle the required paperwork, and ensure that customer service is maintained and serve as the conduit through which supermarkets and restaurant chains purchase imported kosher food products.
Packaging is another important issue. In many countries, imported kosher food products cost as much as 30 percent more than non-kosher products. To compensate for the expense, consumers in these countries prefer individual, small-sized packages.
Many of the promotional techniques used by firms in the United States can be successfully adopted in other countries. U.S. companies may do well to make direct contact with local Jewish federations, congregations, religious associations, rabbinical councils and Jewish information centers to learn more about community trends and issues.
Point-of-purchase promotions in supermarkets and department stores are also recommended. Supermarket promotions could offer samples, introductory price discounts or premiums with a purchase. Consider supplementing in-store activities with advertising in trade and ethnic publications and newsletters or via the radio, television and Internet.
When marketing kosher food products overseas, don’t forget the need for kosher certification. In many countries, local certifying agencies and rabbinical authorities are the only organizations that can certify the authenticity of kosher foods. Local rabbinical councils and Jewish information centers are a good source of guidance.
Different Countries, Different Requirements
Processing, inspection and registration requirements vary by country. Brazilian regulations provide a good example of what U.S. kosher food exporters may encounter. These requirements are similar to those faced by non-kosher products.
Labeling requirements also vary from country to country. For example, Canadian food and drug regulations prohibit the use of the word "kosher" on the label, package or in the advertising of a food product, but allow the symbols or labels approved by local rabbinical authorities. In Mexico, imported processed products must be labeled in Spanish, although another language may be used in addition. If the label is bilingual, the Spanish print must be the same size as the other language’s print. In Brazil, labels should be in Portuguese with the name of the processor printed on it.
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The author is a public affairs specialist in FAS’ Information Division. Tel.:
(202) 720-9442; Fax: (202) 720-3229; E-mail: habenstreit@fas.usda.gov
Just What Is Kosher?
Today, as many as 45,000 different food products on supermarket shelves in the United States are certified as kosher. Foods and beverages as diverse as Oreo cookies, Coca-Cola, Folger’s coffee, Häagen-Dazs ice cream, McCormick pepper, Heinz ketchup, Fleishmann’s Egg Beaters, Cap’n Crunch cereal and Budweiser beer are all kosher – and the list keeps growing every day.
But, just what is kosher? In Hebrew, the word kosher means "fit" or "proper," indicating that a food product meets the dietary requirements of Jewish law, which is drawn directly from the Torah or Old Testament of the Bible. These laws are collectively known as the laws of kashrut and have been followed for more than 3,000 years. The laws of kashrut deal with what foods may be eaten, what foods may be eaten together and how those foods are to be prepared.
Still, you may ask yourself, how does one know if a food product is kosher? The only
way is to locate a symbol on the product’s packaging indicating that a particular
agency has certified the food as having been processed according to 
Jewish dietary laws. Major
certifying agencies include the Organized Kashruth Laboratories (OK Labs), Union of
Orthodox Jewish Congregations, KOF-K Kosher Supervision and Star-K Kosher Certification.
(Symbols for these respective certifying agencies are shown here.)
These agencies have their own rabbinical staff composed of administrators, scientists and food technologists who are familiar with Jewish dietary laws and who certify that the food production equipment (which only needs to be certified once) and ingredients that go into the final food product are kosher.
These individuals supervise and approve the food ingredients and processing, but they do not bless the food. Neither are kosher foods processed under stricter health and cleanliness guidelines than other foods. In the United States, all food production equipment and ingredients must meet USDA requirements.
According to Jewish dietary laws, all foods are divided into three categories: meat and poultry, dairy and neutral products or pareve, which include fish, all foods grown in the earth, all food products made from them and all nonanimal manufactured food products.
Meat--An animal is considered kosher if it chews the cud (a ruminant) and has split or cloven hooves. Therefore, only the flesh of deer, antelope, goats, sheep and bovines may be eaten. Camels, rabbits and swine may not be eaten because they do not have both characteristics.
Chicken, turkey, duck and goose, which are not birds of prey, are kosher.
To be certified as kosher, an animal must be slaughtered humanely by specially trained individuals called shochet. Then a specially trained inspector examines the carcass for defects that may render it non-kosher.
Today, many kosher slaughterhouse operations are performed in partnership with non-kosher plants. All slaughterhouses, whether kosher or non-kosher, must comply with USDA meat and poultry regulations, which have certain exemptions for kosher slaughter and processing that do not impact wholesomeness. Also, all kosher meat and poultry imported from other countries must be processed at slaughter facilities comparable to those in the United States.
Dairy--According to Jewish dietary laws, milk and milk products cannot be prepared, cooked or eaten with meat products. Separate utensils, pots, pans and dishes must be used.
Jewish dietary
law also requires that milk come from a kosher animal. USDA regulations and controls are
considered sufficiently stringent by the Union of Orthodox Jewish Congregations to ensure
that only cow’s milk is sold commercially.
Pareve--These foods are neither milk nor meat. Eggs, fruits and vegetables are pareve and may be eaten or cooked with either meat or dairy products.
Fish is pareve, but may not be eaten or cooked with poultry. Only fish that have scales and fins are considered kosher. All shellfish (mollusks or crustaceans) are prohibited. Unlike meat and poultry, fish require no special preparation.P
Where the Markets Are for Kosher Foods
Last year, U.S. agricultural attachés at American embassies in Austria, Belgium, Brazil, Canada, Chile, Costa Rica, France, Germany, Italy, Mexico, the Netherlands, New Zealand, South Africa, Spain, the United Kingdom and Venezuela submitted voluntary reports about the kosher food market in their respective countries. The following summarizes key facts gleaned from their reports that might be helpful to U.S. kosher food product exporters interested in exploring market opportunities in specific countries.
To obtain a copy of the full attaché report, go to FAS’ home page at http://www.fas.usda.gov. Click on Countries, then Market Reports and then Attache Reports. Click on Custom Date to customize the date, and change the From year from 1998 to 1997. Click on the country of interest and then click on Submit. A list of reports will be displayed. Search the list for Kosher Food Market and click on the Agr. Number to display the report.
Austria
Domestic production: Limited.
Suppliers: European Union (EU), Israel, United States
Certifications: Organized Kashruth Laboratories (OK Labs), CRC (The Beth-Din
Hameyuchod L’inyonei), The Rabbi Moshe Stern (Debraciner Rav) and The Rabbi Aaron
Teitelbaum (Nirbater Rav) are accepted.
Belgium
Domestic production: Mainly jams, processed fruits, oils and specialty foods.
Suppliers: Israel, United States
Certifications: Contact Chief Rabbinates of Orthodox Jewish communities in the
United States.
Brazil
Domestic production: Very limited.
Suppliers: EU, Israel, United States
Market opportunities: The kosher meat market, especially for rib steaks, rib roasts
and vacuum-packed meats, is a potential niche market. Frozen and smoked salmon, turkey
breasts, cold cuts (salami, pastrami and corned beef), bologna and all types of frozen
meat or dairy products (frozen whipped cream, butter and cheese) would be well-accepted by
Brazilian kosher food consumers.
Product promotion: Through partnerships with Jewish federations and congregations,
and religious associations, such as the Beit Chabad.
Certifications: Badatz seal, Union of Orthodox Jewish Congregations, Organized
Kashruth Laboratories, and Star-K Kosher Certification are accepted. A Union of Orthodox
Jewish Congregations symbol and Badatz seal on a package indicate an "upgraded"
product.
Canada
Domestic production: Major items include fresh meats, packaged meats, dairy
products, bakery products and fish, especially salmon.
Market opportunities: There is a trend toward increased availability of kosher
foods in the food service sector.
Product promotion: Through direct contact with distributors and retailers and the
various local rabbinical councils and Jewish information centers.
Certifications: Those approved by the local rabbinical authorities (Kashruth
Councils).
Chile
Domestic production: Very limited.
Suppliers: Argentina, United States
Market opportunities: There is a potential niche market for frozen and canned
dinners, due to the growing tendency of families to consume ready-to-eat foods.
Product promotion: Foster the image of kosher food products as healthy and
wholesome.
Costa Rica
Domestic production: Certified kosher factories produce cheese, coffee, sauces
and dairy products for export to different markets. Agricultural product exports include
hearts of palm and dried fruits to Israel and bulk products.
Suppliers: Israel
Product promotion: Through the local Jewish magazine Hayom and in
supermarkets.
France
Domestic production: Half of all kosher food sold is manufactured in France.
Suppliers: Israel, Poland, North Africa
Market opportunities: Kosher delicatessen products, such as poultry and beef, and
kosher wines are of interest.
Certifications: The Beth-Din "House of Law" certifies all kosher food
products. The Union of Orthodox Jewish Congregations is not recognized in France.
Italy
Market opportunities: The Italian railway system is offering kosher and halal dishes on their high-speed, regional trains that transit France, Austria, Switzerland and Germany. Kosher foods are considered a growing and active sector with new ethnic restaurant openings and an increasing number of specialized shops in large cities.
Mexico
Domestic production: The majority of fresh kosher products, such as meat and
poultry, are produced in Mexico.
Suppliers: United States, Israel
Product promotion: Through religious organizations, specialty distributors and
caterers, Jewish newspapers (currently there are three in Mexico City) and supermarkets,
such as Wal-Mart, Superama, Aurrera and Comercial Mexicana, which have kosher food
sections.
Market opportunities: A dynamic and growing sector with opportunities for canned
and frozen products.
The Netherlands
Domestic production: A large producer and exporter of kosher raw materials and
ingredients for the food industry, including fats, cocoa, food flavors, food colors,
alcohol and chemicals. Also a producer of small quantities of cheese, bread, gherkins and
mushrooms.
Market opportunities: May provide limited opportunities for U.S. suppliers.
New Zealand
Domestic production: Little commercial production of specialized kosher food
products.
Suppliers: United States, Canada, United Kingdom, Italy, Israel, Norway, Germany,
South Africa
Market opportunities: North American kosher products are seen by importers as
having great opportunity in the New Zealand market.
Certifications: Union of Orthodox Jewish Congregations and Organized Kashruth
Laboratories are recognized.
South Africa
Suppliers: Israel, United Kingdom, Canada, United States
Product promotion: Invite all importers, retailers, distributors and local
manufacturers to a trade show and get them involved in the local kosher festival, which is
held every August, or use the Kashrut Hotline at tel. 2711-648-9136, fax. 2711-648-2325 or
work with those involved in healthy lifestyle activities.
Certifications: Beth-Din certification is issued by the Union of Orthodox
Synagogues.
Spain
Domestic production: Very limited.
Suppliers: Israel, France
Market opportunities: Some opportunities exist for U.S. exporters of kosher food
products as the availability of kosher products in Spain is very sparse. Recently, El
Corte Ingles, the largest department store in Spain, began selling kosher products in some
of its supermarkets. The products come mainly from Israel and France. Most of the products
are imported and distributed by LAKA GLOBAL, S.L.
United Kingdom
Product promotion: Work with importers to gain as many listings as possible at
the retail level.
Market opportunities: According to the agricultural trade specialist at the U.S.
embassy and the local trade, there is room for U.S. kosher food products to complement the
products already available, but the leading brands should not be challenged.
Certifications: Examples of approvals accepted include the Rabbinate of the Joint
Kashrus Committee or the Court of Chief Rabbi, London.
Venezuela
Domestic production: Major food processing companies produce a range of kosher
food products.
Suppliers: United States, Israel
Product promotion: Extend marketing efforts to increase consumption by targeting
non-traditional groups and focus on the quality and selection attributes of U.S. kosher
foods.
Certifications: The Union Israelita de Caracas (UIC) approves kosher food products.
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