Exporting to Europe: Juice

Central American fruit juices and salsas are often delicious.

Now, they can also be profitable.

Central America will be able to export more to Europeans, following the start this month of an association agreement with the European Union.

Juices and salas are the biggest winners, as duties fall to zero over the next few years.

Several companies could take advantage of the new deal, including Costa Rican-based Florida Ice & Farm, which owns the regional Kern’s brand, as well as the local Tropical line of juices.

Mexico-based Del Valle, which sells a wide range of juices throughout the region, could increase local production.

Salsa exports are another potential growth area.

To succeed in Europe, exporters will need to create brand awareness, which takes time and money.

On the other hand, European importers should appreciate the quality of Central American juice and salsas, which in many cases is excellent.

Other major exports, including coffee, bananas, sugar and pineapple, are not affected by the agreement, which is in effect for Honduras, Nicaragua and Panama.

A conflict over several brand names is delaying the start of the agreement for Costa Rica, El Salvador and Guatemala.

On the other hand, these conflcts should be resolved soon, since none involves a big issue.