Sales of specialty or gourmet foods have seen sustained growth in the United States since the 1980s and, according to the National Association for the Specialty Food Trade (NASFT), some 200 million consumers now purchase these products. Moreover, in a particularly promising sign for future market growth, two-thirds of 25-34 year-olds buy foods in this category. Defining specialty foods is not easy but, according to the NASFT s Chris Nemchek, they are distinguished by their uniqueness, exotic origin or quality and by the fact that they cost more than regular foods. Certified organic or natural ingredients, exceptional design and limited supply also set specialty foods apart from mass-produced items, he says. The already impressive, but still growing, size of the U.S. gourmet food market, served by

an estimated 14,000 specialist stores, illustrates the wealth of opportunities for Chilean exporters in this field.  Between 2003 and 2005, the market, which is most developed in large cities on the east and west coasts, increased from US$26.9 billion to US$34,8 (or approximately a third of Chile s GDP) excluding sales through the Wal-Mart supermarket chain. According to a study published last year by Mintel International, a Chicago-based market research company, and NASFT, approximately 5.300 new specialty food were introduced into the U.S. in 2004. The study also found that, between 2002 and 2004, sales of specialty foods rose by 17.9%, while total food sales increased by just 7.7%. As consumers seed new experiences and become more sophisticated, innovation is crucial in the specialty foods market and

producers have many opportunities to be creative in both product development and promotion. Packaging, for example, is more than usually important in this market, partly because it determines whether a product will be purchased as a gift. U.S. consumers give specialty foods as gifts on a variety of occasions, such as housewarmings, or to their children s teachers.  One especially popular Holiday practice is to send multiple-tiered specialty food gift packages to the families of business acquaintances. Affñiemt 25-34 year-old also tend to buy specialty foods as gifts for themselves as a reward for accomplishments. In addition specialty foods, particularly those certified as organic, are seen as contributing to a healthy lifestyle.

Chileangourmet, a company that markets merkén-a traditional spice prepared

by Chile s indigenous Mapuches form roasted chili peppers and cilantro seed-and merkén-flavored olive oil as well as Chilean snails and honey, is eyeing the U.S. market. In July, its founder and marketing manager Paulina Peñaloza traveled to the Fancy Foods Show in New York, taking samples of the company s products.

This was a benchmark trip to study the market and understand how to achieve our dream of exporting to the Unitated States, she says. Peñaloza also stayed on another week in New York, visiting stores to gain a better understanding of product display and packaging trends as well as pricing.

Drawing on her experience which was, she says, spectacular , Peñaloza emphasizes the importance of thorough and careful research as a prior step to broaching the highly-competitive U.S market. The personal networking that can be achieved by visiting trade fairs is also vital, she adds.

Promotion Efforts Chile s embassy in the U.S. and Prochile, the government s export promotion agency, have partnered with the Restaurant Association of Metropolitan Washington (RAMW) to promote Chielan specialty foods among the city s restaurants and consumers.  The promotion priorities this year include salmon, albacore, king crab and snow crab as well as wine and olive oil, says the embassy s Marta Bonet.

As part of this alliance, Prochile sponsored a gala dinner held in Washington by RAMW in June. The gourmet stars of the annual event, attended by over 1.500 guests, included Chilean olive oil, caricas (Chilean papayas) and fresh fruit as well as Chilean wines. However, the government s promotion efforts also extend more widely, targeting buyers, importers and distributors. In December, more than 100 chefs, restaurant owners,

Chilean chef Pilar Rodríguez with Rob Kink, partner in the Washington Oceanaire Seafood Room, and other chefs from the U.S. restaurant chain.

retailers, wholesale distributors and journalists attended a dinner at the Ambassador s residence to promote Chilean wines and olive oil.

One of Chile s leading chefs, Christopher Carpentier, traveled to the U.S. to prepare the dinner, together with five top Washington chefs. In one direct result of this initiative, Rob Klink, a partner and executive chef at the Washington branch of the Oceanaire Seafood Room restaurant chain, went on to host a 50 person media dinner showcasing Chile s seafood products.

The featured dishes included kingclip (congrio), king and snow crab, abalone and salmon, as well as Chilean wine and papayas. Additionally, Chilean chef and gourmet food expert Pilar Rodríguez worked with Klink to compile a special menu, available at the restaurant for one month, entitled Chilean Month of the Sea .

All the products on the menu were supplied by Chilean companies, some of them small and mid-sized enterprises that are now beginning to penetrate the U.S. market. The success of such events serves to illustrate the opportunities in the U.S. for Chilean exporters of gourmet foods and the rewards that can be achieved with perseverance and creativity.