Turkey’s appeal to food manufacturers

Turkey may be part of Europe but given the state of its economy you’d hardly know it. The fiscal reforms the country put in place after a severe financial crisis in 2001 saw its GDP grow by more than 6% annually until 2008. 

 
Global economic conditions and tighter fiscal policy caused GDP to contract in 2009, but Turkey weathered the global financial crisis and GDP rebounded to grow by 8.5% in 2011 – growth second only to China.
 
Meanwhile, the ratio of public sector debt to GDP has continued to fall and the country has become a target for foreign investment, especially as local consumer confidence is reflected in buoyant spending – unlike in other European countries. 
 
In January, Ingredients Network reported that Coca-Cola’s Turkish distributor had announced a sales volume increase of 14.5%. Now, the Financial Times notes that supermarket chain Tesco is opening 70 stores and PepsiCo – which considers Turkey to be one of its top 10 markets - saw sales grow in double digits last year.
 
Meanwhile, the Turkish snacks and confectionery group Űlker saw growth of 10% last year and Unilever has tripled its business in 11 years. 

For food manufacturers, Turkey represents both opportunities and challenges. The predominant food retailers are local corner stores so supermarkets don’t have the power they do in other countries but, on the other hand, this presents logistical difficulties in distributing to large numbers of small customers.

The FT also notes that there is relatively low demand for ready meals and for private label. However, there is a discernible appetite for international goods, and Unilever has successfully adapted its products to mirror local tastes.