Great Duo Turkish Delight. Turkish Coffee NATIVE BAKLAVA, THE SULTAN OF SWEETS MAP OF THE DELIGHTLAND COMPANY LIST TURKISH CONFECTIONERY EXPORTERS

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1 January / 2015 Issue: 01 NATIVE BAKLAVA, THE SULTAN OF SWEETS MAP OF THE DELIGHTLAND COMPANY LIST TURKISH CONFECTIONERY EXPORTERS Great Duo Turkish Delight & Turkish Coffee CURIOUS FASCINATING DESSERTS FROM TURKISH CUISINE turkishconfectionery.org.tr

2 TURKISH CONFECTIONERY PROMOTION GROUP FAIR LIST IN 2015 NO FAIR NAME DATE OF FAIR CITY/COUNTRY 1 ISM International Sweets and Biscuits Fair February 2015 Cologne/Germany 2 GULFOOD Manufacturing February 2015 Dubai/U.A.E. 3 PRODEXPO February 2015 Moscow/Russia 4 Turkmenistan Export Products Fair February 2015 Ashgabat/Turkmenistan 5 Foodex Japan March 2015 Tokyo/Japan 6 Expo Comer March 2014 Panama/Panama 7 Food & Hotel Indonesia April 2015 Jakarta/Indonesia 8 Food & Hotel Vietnam April 2015 Ho Chi Minh City/Vietnam 9 Sial Canada April 2015 Montreal/Canada 10 Sial China May 2015 Shanghai/Chinese 11 Hofex May 2015 Hong Kong/Hong Kong 12 Seul Food & Hotel May 2015 Seoul / South Korea 13 THAIFEX World Of Food Asia May 2015 Bangkok/ Tailand 14 Africa s Big Seven June 2015 Johannesburg / S. Africa 15 Sial Brazil June 2015 Sao Paulo/Brazil 16 Summer Fancy Food June 2015 New York/USA 17 World Food Moscow September 2015 Moscow/Russia 18 Anuga October 2015 Cologne/Germany 19 Sweets & Snacks Middle East November 2015 Dubai/U.A.E. 20 Iraq Agro Food November 2015 Erbil/ Iraq

3 FROM THE CHAIRMAN THE SECRET TREASURE OF TURKISH CONFECTIONERY IS HIDDEN UNDER ITS SOIL! Let s eat sweet, talk sweet... This is one of the most frequently used proverbs in Turkey: let s eat sweet, talk sweet... This is why we always offer our guests candy, in order to open the gate of a sweet conversation. We celebrate friendships reconstituted after a resentment by eating dessert... Name of Ramadan Feast when children go knock one door after another to collect candies, turned into Sugar Feast and we feel happy to host our guests with dessert on both feasts. The prize of our bets and competition is generally a tray of baklava, and both winner and the defeated get their shares. Nearly every city has its own dessert or even sweet. In a nutshell, Turkey is a Land of Dessert... This traditional diversity and rich tastes are now reflected into our product portfolio. Hundreds of different products that are produced untouched by human hands in our modern plants, are exported to nearly 200 countries. Our products sweeten billions of mouths all over the world. It is highly probable to see our industry among the top 10 of the world confectionary export league in 2023, the 100th anniversary of our Republic, which is now on the 16th place. Our producers enter into new markets on one hand, and take firm steps toward becoming a regional power on the other hand. In reaching this goal, our most significant assistant will be Delight- Land concept that we created focusing on globally-known Turkish Delight and its fellow Turkish Coffee. France is known with its perfume, Cuba is known with its cigars, now Turkey will be known with its confectionary. Our biggest advantage will be our traditional tastes, product diversity and innovative production power. Sincerely, Hidayet Kadiroğlu Turkish Confectionary Promotion Group Chairman of the Executive Board 1

4 FACTS & FIGURES TURKISH SUGAR AND CHOCOLATE PRODUCTS SECTOR 16th WORLD S 16TH SUGARY PRODUCT EXPORTER MORE THAN 2000MEMBERS 31 MILLION DOLLARS TURKISH DELIGHT EXPORTS 2 turkishconfectionery.org.tr

5 FACTS & FIGURES 478 MILLION DOLLARS CHOCOLATE PRODUCTS EXPORTS TOTAL EXPORT VOLUME IN ,7 EXPORTS TO MORE THAN BILLION DOLLARS 190 COUNTRIES TARGET BILLION DOLLARS % 6,4 EXPORT INCREASE IN 2014 COMPARED TO 2013 WORLD RANKINGS 1st IN SUGARY PRODUCTS EXPORTS TO MIDDLE EAST 1st IN SUGAR CHEWING GUM EXPORTS 8st IN BISCUITS EXPORTS 6st IN WAFER EXPORTS 3

6 06 INDEX PROCESS OF FORMATION 16 HİDAYET KADİROĞLU: WE ARE TAKING FIRM STEPS TOWARDS BECOMING A REGIONAL POWER THE 20 SWEETEST 28 CONTEST CLASSIC A DELICACY FIT FOR A SULTAN TURKISH DELIGHT 22 STRATEGY10 WORKSHOP WE GATHERED AT ÇIRAĞAN PALACE WITH OUR GROUP MEMBERS FOR THE OUR BRAND STRATEGIES 4 turkishconfectionery.org.tr

7 40 50 DELIGHT SUPERHERO OF THE HAPPINESS: CHOCOLATE JUST IMAGINE AN ADDICTING, IRRESISTIBLE, UPLIFTING, TEMPTING, STUNNING TASTE... HOW TO HALVA: A COMRADE IN ARMS WITH HAPPINESS AND SADNESS ALIKE MANAGEMENT CHAIRMAN Hidayet KADİROĞLU Turkish Confectionary Promotion Group Chairman of the Executive Board EDITORIAL DIRECTOR Zekeriya METE İstanbul Cereals Pulses Oil Seeds and Product Exporters Chairman and Turkish Confectionary Promotion Group Vice Chairman of the Executive Board EDITORIAL BOARD Murat ALICILAR Sübet ÇIÇEK Erhan SOYTÜRK Kazım TAYCI Uğur DURUKAN Seyyid Yusuf AKAN Ömer Nazım BOYNUKALIN Levent ÇAPUTÇU Aydın KELEŞ BRAND CONSULTANT Hakan SENBİR EDITOR IN CHIEF Burşem EGE CONTRIBUTORS Gülay Maria ÇECE Damla ALAMAN CONTACT Tel: (pbx) Fax / Faks: INDEX PUBLICATION MANAGEMENT DIRECTOR Emin GÖRGÜN PUBLICATIONS COORDINATOR Aynur ŞENOL ALTUN 64 CURIOUS FASCINATING DESSERTS FROM TURKISH CUISINE EDITORS Emel MURTEZAOĞLU Irmak TOLAY Berna SAN Evren İREN ART DIRECTOR Aziz KOCABAŞ Tarık ATAN PHOTO EDITOR Şeref YILMAZ ILLUSTRATOR Kübra ASLAN 60 NATIVE FLAVOR OF THREE HUNDRED YEARS; KAHRAMANMARAŞ ICE CREAM Kollektif Yayıncılık Reklam Tasarım ve İçerik Hizm. A.Ş. Mat-Set Plaza, Yeşilce Mah. Emektar Sok No: 5 Kat: 4 Kağıthane / İSTANBUL PRINTING Görsel Dizayn Ofset Matbaacılık Tic. Ltd. Şti Atatürk Bulvarı Deposite İş Merkezi A5 Blok 4. Kat No: 405 İkitelli OSB Başakşehir / İstanbul PUBLICATION TYPE Corporate Communications Magazine Local, Periodical Publication PUBLICATION LANGUAGE English CONTACT 5

8 DISCOVER THE POTENTIAL WE ARE AWARE OF THE IMPORTANCE OF AN EXPORT DRIVEN GROWTH MODEL OUR NEW LOGO REPRESENTS OUR HISTORY, CULTURE, CORNERSTONES OF OUR CIVILIZATION AND OUR FUTURE VISION AS A WHOLE. Despite the fact that many different institutions and establishments had worked on coming up with some kind of a Brand Turkey in the past, Minister of Economy Nihat Zeybekci says that none of them could properly express our economical power, the potential of our people and our hundreds of years old history. Our new logo will avert this confusion and we will be able to promote our country to our counterparts abroad in a more effective way he adds. Underlining that they were well aware of the importance of an export driven growth model Minister Zeybekci explains that their priority targets at the Ministry were high value added production, increasing export unit price per kg, decreasing the current account deficit and attracting more direct foreign investments. He also draws attention to the potential of the country. There has been painstaking efforts for the creation of a Brand Turkey in the past 18 months under the coordination of the Ministry of Economy and Turkish Exporters Union (TEU), and you have made an impressive effort in this pursuit. How do you think brand Turkey will contribute in our exports? Turkey: Discover the Potential logo project is a very significant cooperation be- 6 turkishconfectionery.org.tr

9 DISCOVER THE POTENTIAL SUSTAINABLE DEVELOPMENT CAN BE SUPPORTED BY HIGH VALUE ADDED INVESTMENTS RATHER THAN A CONSUMPTION DRIVEN GROWTH MODEL. tional activities we are going to organize in the near future, using our new logo and slogan. As a person who had been engaged in trade for many years I can confidently assert that unless your customer knows you and your product well and trusts you, you cannot sell anything no matter how good it may be. Therefore if we can effectively and coherently present our history and the values that determine who we are, we can build healthier relationships with buyers. Despite regional differences 2014 had been a difficult year for the global economy. Do you think this unfavorable economic atmosphere that hinders growth will change in 2015? Despite global recession and political turmoil Turkey s economic performance in 2014 has been very good and we have created a strong image. After FED ended its bond purchasing program, European Central Bank and Bank of Japan began to pursue quite the opposite policy and started buying bonds, counterbalancing the impact of FED s decision. I believe in 2015 FED will increase interest rates in a gradual manner over a period of time. In this respect FED s impact on world markets will be limited. Also we believe that European Central Bank s decision of implementing expansionary policies designed to invigorate the markets will be a positive development for our country. These upcoming expansionary policies in Europe will increase liquidity which will have a reassuring effect on Turkey and other emerging econo- tween public and private sectors. We have consulted with business representatives, local and foreign members of the academia and branding experts, and organized many seminars and meetings. The outcome of these rigorous efforts has been the logo and the slogan which we launched with a press meeting on September 28, 2014 at the Çırağan Palace with the participation of President Recep Tayyip Erdoğan. At the moment we are in the process of preparing the legal infrastructure of its use. We will be sharing the developments pertaining to this issue with the public very soon. We will be seeing the effects of such an exemplary branding on our export figures in the long run, as we continue to give the same messages over and over again to our counterparts in our promotional activities abroad. Certainly there had been other similar endeavors of many different institutions and establishments in the past and we are not going to deny their importance and value but some of them focused on only tourism and others were merely some cultural symbols. That being the case we tried to express ourselves with different and sometimes contradicting symbols which could not properly express our economical power, the potential of our people and our hundreds of years old history. And this made it very difficult for us to introduce ourselves to our counterparts in the way we wanted to. Our new logo will avert this confusion and we will be able to promote our country to our counterparts abroad in a more effective way. If you take close look at the new logo you will see the traces of many civilizations that had flourished in Anatolia, the land we live in for centuries. Within this context our new logo represents our history, culture, cornerstones of our civilization and our future vision as a whole. We have received very positive feedback from both national and international circles after the launching which was attended by our President. I have no doubt that we will achieve our goals in a short time with promomies. However it is widely believed that because of the expansionary policies of the ECB, the recent sharp decline of euro/dollar parity will become worse and may see a figure around If you take into consideration the fact that half of our exports go to the Euro zone, this will be a negative development in terms of our foreign trade. Of course from Turkey s perspective the most important recent development in global markets is the decline in oil prices. If this low price trend in oil prices continue in 2015, inflation and interest rates in Turkey will fall and we expect this to be a positive contribution in terms of our growth. On the other hand, because of the expected downward trend in the growth rates of large economies such as Russia, Japan or China, global growth expectations had to be revised in the same way. World Bank had to revise its latest growth forecast for 2015 from 3.4% to 3% and the IMF from 3.8% to 3.5%. Therefore other than the decline in oil prices, it would be wrong to expect the current climate in world markets will be in favor of Turkey in However against all odds we believe Turkey s growth performance will be much better compared to How do you think Turkish economy will be effected by global issues like the timing of FED s interest rate increase, European economies poor performance in terms of desired growth rates, stagnation of Japanese economy and the downward trend in China s growth? When we look at the general trend in global economy we see regional differences. While European and Japanese economies are facing deflation Chinese economy fails to deliver desired macroeconomic targets. On the other hand it would be fair to say that the US economy is recovering faster than expected. Despite this negative outlook, the European Commission foresees that the growth trend in the EU and Euro zone economies will continue in 2015 and 2016 although not very strongly. Within this framework the expected growth 7

10 DISCOVER THE POTENTIAL rates in 2015 and 2016 respectively will be 1.5% and 2% for Europe and 1.1% and 1.7% for Euro zone. Moreover ECB devised a 500 billion Euro bond purchasing program to combat deflation. When implemented this program may pull the euro/dollar parity to even lower levels. This may have some negative effects on our exports. On the other hand this incentive package will support the growth of EU economies which happen to be our most important trade partners and consequently create an advantage for our exporters. Also thanks to the expansionist policies they are going to implement, there will be some fund flow to our country. As for the US economy, they are extremely successful in terms of employment and growth figures. At the moment their most important issue is the inflation rate which should be a targeted 2% but stands around 1.3%. At the last FED meeting they came up with a new discourse with regard to interest rates increase which underlines patience rather than the previous reasonable time expression. However taking into account the global performance of the country we don t expect this increase to be a dramatic one. We believe the interest rates will be increased gradually, one bit at a time. To my opinion, if they prefer to extend the interest rates increase over time, this will be a moderate policy concerning Turkey. TODAY OUR COUNTRY IS THE 22ND LARGEST EXPORTER IN THE WORLD WITH APPROXIMATELY 1 PERCENT SHARE IN WORLD GOODS AND SERVICES TRADE. OUR EXPORTS IN 2014 INCREASED BY 3.9 PERCENT COMPARED TO THE PREVIOUS YEAR AND REACHED BILLION USD WHILE OUR EXPORT- IMPORT RATIO STOOD AT 65.1 PERCENT. Because of the problems in global economy Turkey is expected to close 2014 with an approximate growth rate of 3.3%. Within this context which issues should Turkey pay attention to in order to achieve its 2015 and MTP targets? Although our expectations with regard to global economy was not fully met, 2014 has been a strong year for Turkey both economically and politically. Turkish economy grew by 2.8% in the first 9 months of In the past 20 quarters Turkey has achieved an average growth rate of 5.6%. The fact that Turkey has managed to continue growing in a time when growth figures of global economy remain low is very significant. We believe the positive economic performance we have achieved so far in 2014 will continue in 2015 too. The existing medium term program (MTP) of foresees a growth rate of 4% for Our unemployment and inflation figures are expected to be 9.6% and 6.3% respectively. Although the same MTP targets a current account deficit/ GDP ratio of 5.7% for 2014, I believe we might see a lower figure by the end of the year. The 2015 target for the same ratio is 5.4%. On the other hand, during the last meeting Central Bank decided to drop interbank interest rates by 50 base points. However we cannot say that this resolution was satisfactory. Central Bank may have decreased the benchmark interest rate however they have to ensure an adequate decrease in overnight interest and other areas too. A 50 base point decrease cannot be considered a real decrease. Also the viability of domestic demand should not be overlooked. As a matter of fact in an economy where domestic demand is weak, attaining a sustainable and healthy growth performance would be impossible. Hence in order to achieve a better growth rate 8 turkishconfectionery.org.tr

11 DISCOVER THE POTENTIAL in 2015, domestic demand will have to find a strong momentum. Moreover, in order to attain our above mentioned targets and sustainable growth, we need to engage in high value added production, increase export unit price per kg, decrease the current account deficit and attract more direct foreign investments. Our ministry continues to work towards attaining these goals. Food industry constitutes percent of the total production and percent of total consumption expenses in Turkey. How do you evaluate the significance and contributions of the sector in Turkey s economy? In recent years food sector gained significant importance in Turkey especially because of their impact on inflation. Due to unfavorable natural phenomena like lack of rain and frost, our agricultural production slowed down to below average levels in As a result, agriculture, forestry and fishery industries had to downsize by a serious 4.9 percent in the third quarter of However this year, if nothing out of the ordinary happens in terms of weather or climate, I believe agricultural production will gain momentum. Consequently I expect food sector to shape up again and stop creating pressure on inflation. Of course as it is the case for every other sector, food industry has to adopt a production understanding that is more in favor of efficiency, R&D and innovation. This way the sector will be able to find new markets to export and get better shares of the markets they have already been operating in HAS BEEN A YEAR OF CONTINUED UNCERTAINTY AND THE EFFECTS OF THE GLOBAL CRISIS WERE STILL AN ISSUE. THE FACT THAT TURKISH ECONOMY HAS CARRIED ON THE PATH OF GROWTH AND EXPORT INCREASE IS A SIGNIFICANT ACHIEVEMENT. sue. The fact that Turkish economy has carried on the path of growth and export increase is a significant achievement. The steady economic growth of the past 20 quarters has continued in 2014 and we have achieved 2.8 percent growth rate in the first three quarters of Today our country is the 22nd largest exporter in the world with approximately 1 percent share in world goods and services trade. Our exports in 2014 increased by 3.9 percent compared to the previous year and reached billion USD while our export-import ratio stood at 65.1 percent. Declared growth figures indicate that our exports continue to significantly contribute to growth, in other words export is the driving force behind our growth is expected to be another difficult year for world economy. Economic vulnerabilities in developed countries and instability in our important trade and investment partner Europe still continue. We expect the declining trend in oil prices which began last year to continue and consequently oil driven economies like Russia and Iran to be badly effected in terms of In the first 10 months of 2014 Turkey has set a historical record (in exports). Our targeted export volume for 2015 is 173 billion USD. How do you foresee 2015 in terms of Turkey s exports? 2014 has been a year of continued uncertainty and the effects of the global crisis were still an isgrowth and exports. As an outcome of a possible tight monetary policy in the US economy, developing countries are expected to experience capital outflows. These factors constitute a risk for our country s economy. However thanks to decisive macroeconomic policies and reforms Turkish economy has been no longer fragile for quite a while and therefore I believe possible uncertainties and negative developments won t make an indelible impact on our economy. That being said, our ministry will be taking measures to be on the safe side. In order to achieve our MTP target of 173 billion USD export volume in 2015 and improve our exports both quantitatively and qualitatively we will be decisively implementing our devised policies, especially the Turkish Export Strategy 2023 plan. We are going to compensate the deficit created by countries with declining oil revenues with our market diversification strategy. We will continue supporting our exporters with dynamic, flexible export incentives that are able to fully respond to today s competitive environment and needs. Turkish Exporters Assembly (TEA) assumes an important role in export development and creates value added for Turkish economy. What would you say about the role and contribution of TEA and similar sector organizations in the development of Turkish economy? There is no doubt that TEA and similar sector organizations are very important actors in the development of their respective sectors in many aspects from production to marketing. Since these institutions know their sectors very well and have direct contact, they are able to identify problems very accurately and they make every effort to resolve these problems by acting as a guide. As the Ministry of Economy we believe developing a powerful dialogue and cooperation with TEA and similar 9

12 DISCOVER THE POTENTIAL sector organizations will have significant contributions to our economy. Therefore we put private sector right in the center of our policies, strategies, and other sector related activities, and place great importance on our exporters opinions as well as resolving the problems they bring forward. Within this framework we expect such institutions to play an active role in building and implementing all of our ministry s policies and strategies, and especially those related to their respective sectors. Within this context TEA is a significant institution since it plays an active role not only in the preparation process of the 2023 Turkish Export Strategy but also in the activities carried out within the scope of this strategy document to develop a new export understanding based on R&D, innovation, branding and high technology. This institution organizes many important activities including innovation weeks, Brand Turkey events, design competitions and R&D project markets. Having other sector organizations push on their efforts and continue to implement proactive policies with the same decisiveness as TEA is of vital importance in getting one step closer to our 2023 targets together. In order to achieve an average growth rate of 5 percent and more in the long run, in which areas Turkish economy needs to make progress? Turkey takes firm steps towards achieving 2023 targets. It would be fair to say that exports play a crucial role in order to attain our targeted growth rates and other indicators, and more importantly to attain sustainable and high growth rates. We are well aware of the importance of an export driven growth model. Therefore our priority targets at the Ministry include high value added production, increasing export unit price per kg, decreasing the current account deficit and attracting more direct foreign investments. However exports alone will not be sufficient to achieve our THE PRIVATE SECTOR HAS TO BE AWARE OF THE IMPORTANCE OF THE 2023 ECONOMIC TARGETS FOR OUR COUNTRY. AS THE REPRESENTATIVES OF THE STATE WE DO OUR BEST TO SUPPORT THE PRIVATE SECTOR AND WE ARE DETERMINED TO DO SO IN THE COMING YEARS. targets. When we take a look at Japan, world s third largest economy, and EU countries where growth performance is poor we see a deflation problem caused by lack of domestic demand. Therefore viability of domestic demand is as important as exports in terms of growth performance. This doesn t necessarily mean a consumption based growth model however an economy with a weak domestic demand issue cannot be expected to perform in a healthy manner. On the other hand one of the most important sources of growth is investments. The best way to accomplish sustainable development is to support high value added investments rather than a consumption driven model. The decision of cutting interest rates which was taken at the last Monetary Policy Committee is late and insufficient but nevertheless will have a positive impact on investments. The Ministry will continue to support investors with various incentives. We also need to make progress in structural areas like education, high 10 turkishconfectionery.org.tr

13 DISCOVER THE POTENTIAL value added production and transition to advanced technology. The country as a whole needs to increase both the time allocated to educational activities and the quality of their content. We should be able to develop training programs to train qualified personnel. Similarly we should rapidly incorporate high technology in our production processes. This way we will be able to export higher value added products and attain higher growth rates in the long run. Turkey has set very ambitious targets for What is the responsibility of private sector in attaining these targets? Which competencies should we develop in order to lend impetus to the realization of these goals? Private sector has to be aware of the importance of the 2023 economic targets for our country in every step they take. As the representatives of the state we do our level best to support the private sector and we are determined to do so in the coming years. In addition, private actors have to improve their own capacities always one step further. That is to say our companies must be more competent, more innovative in all areas of the standard value chain. They need to broaden their horizons in every step of the value chain from the very beginning of the production process to chain of distribution management, product marketing, foreign market penetration and efficient after sales services. Our expectations from private sector is not limited to having them produce their own products under their own trademarks, put them on overseas markets and take the back seat. Our companies must think about how to further diversify their existing product portfolios in line with global consumer and market trends. We should be strong enough to be able to sell diverse product groups to overseas markets and generate more value added. This is the only way our companies and thereby all of us as a country can develop the capacity of creating a global brand. WE ARE EXPECTING TO ACHIEVE OUR GOALS IN A SHORT TIME WITH PROMOTIONAL ACTIVITIES WE ARE GOING TO ORGANIZE IN THE NEAR FUTURE, USING OUR NEW LOGO AND SLOGAN. Within this framework as the state representatives we have built all the necessary mechanisms to help private companies to improve their competency in the best way and we will continue to do so. We provide support to all our exporters through programs intended for every step of the value chain, particularly with our TURQUALITY support program and we continue to encourage especially innovation, design and branding activities. In return private sector will secure a more sustainable position in global value chains; create global brands to market higher value added goods and services. We also expect our private sector to take greater initiatives and make business with stronger funds. I consider this issue equally important as value added production, brand creation and a sustainable position in global markets. There is no doubt that SMEs play a vital role in the economic cycle and we are pleased to see how they insert themselves among the ever spinning wheels of business world and thrust themselves on. However in the light of our 2023 targets SMEs will have to expand their horizons and push their limits. If state and public sector join forces in order to accomplish our targets set for the centenary anniversary of the republic I believe we can overcome every single obstacle. 11

14 DISCOVER THE POTENTIAL WE WILL CONTINUE TO TELL THE POTENTIAL OF TURKEY TO THE WORLD Turkey has set strong and ambitious targets for Accordingly, Turkey not only offers the Turkey, Discover the Potential brand to the world, but also invites the people to discover potential. Regarding the new Turkey logo, the Chairman of the Turkish Exporters Assembly (TIM) Mehmet Büyükekşi says, The new long along with the brand represents the highly competitive Turkish brands and high value-added products. It aims to develop and reinforce the perception of Turkish goods abroad in the long term by transferring its positive image to each brand and product group to be labeled with this logo. What does the new Turkey brand and logo tell us? The production quality adventure of Turkish brands that began in the 1980s by taking part in the international competition lasted at a fast pace until today. Thanks to this process, Turkish goods have become more preferable in many sectors of international markets. This perception of Turkish goods is also reinforced by the progress of Turkish brands abroad especially in recent years as well as their important achievement such as stores opened in major shopping centers and market leadership achieved in certain sectors. Therefore, the new Turkey brand and logo will be used primarily by Promotion Groups in all communication activities of the brands with a capacity to represent the perception of value-added products as it aims to create a positive impact in the long-term. This logo along with the brand represents highly competitive Turkish brands and value-added products. It symbolizes WE HAVE UNVEILED A NEW LOGO AS WE BELIEVE THAT SUCCESSFUL EXPORT BRANDS OF TURKEY MUST WORK BASED ON THE QUALITY PERCEIVED BY CONSUMERS RATHER THAN MANUFACTURERS. high-level perception of Turkish goods to be created in the long term by transferring its positive image to each brand and product group to be labeled with this logo. By taking advantage of communication power generated here, it aims to develop the overall perception of Turkish goods in the future as it will be used in the advertising and communications activities carried out abroad by different promotion groups. What should be done to use the Turkey brand and logo in an effective way? We are still working on the legislation related to this issue together with the Ministry of Economy. Some programs will be implemented to support and encourage the use of the logo. From now on we will work more to improve the perception of Turkey through this logo and its slogan rather than the promotion of the logo itself. We will make the use of the Turkey 12 turkishconfectionery.org.tr

15 DISCOVER THE POTENTIAL logo and slogan a common practice in all economic, sportive and cultural activities of Turkey abroad. We will ensure that everyone who sees this slogan and logo in a foreign country understands that the content is about Turkey. Therefore, we will encourage all organizations that want to promote Turkey or its values abroad to use the logo and slogan. At the beginning, we were suffering from lack of harmony in the promotion of Turkey. Now, we aim to create harmony with the logo and slogan. All public institutions have also adopted this approach and continued to work on this issue. Are there any target countries or regions? We are preparing a study that targets the entire world for the perception of Turkey. Of course, some export markets have a priority for us. These markets are also among the target countries identified by the Ministry of Economics. The Ministry of Tourism also has different target countries. Do you have a special strategy or study for the Turkey brand in 2015? We are preparing a comprehensive brand strategy to improve the perception of Turkey. Besides the short-term action plans, we are creating our long-term strategies that will continue by Initially, we plan to introduce the logo and slogan domestically. We will ensure that our own citizens are acquainted with the brand. Secondly, we will encourage the Turks living abroad, namely the Turkish diaspora, to act effectively. In the final stage, we will tell our story to the world. We will not only tell our own story but also encourage the foreigners working with us to tell Turkey. We believe wholeheartedly that it will contribute to the improvement of the perception of Turkish goods. BY TAKING ADVANTAGE OF COMMUNICATION POWER GENERATED HERE, THE LOGO AIMS TO DEVELOP THE PERCEPTION OF TURKISH GOODS IN THE FUTURE AS IT WILL BE USED IN THE ADVERTISING AND COMMUNICATIONS ACTIVITIES CARRIED OUT ABROAD BY DIFFERENT PROMOTION GROUPS. 01 / GROWTH 03 / WORLD 05 / BOTH EASTERN AND WESTERN 07 / TOGETHERNESS 02 / SYNERGY 04 / MEETING 06 / INNOVATION 08 / HARMONY THE LOGO DESIGNED BY SAFFRON BRAND CONSULTANT IS INSPIRED BY CULTURAL PATTERNS USED BY THE TURKS IN RUGS, CARPETS, HANDICRAFTS, AND ARCHITECTURE THROUGHOUT HISTORY. HOWEVER, THEY ARE INTERPRETED IN A CONTEMPORARY SENSE IN THE LOGO. ACCORDINGLY, THE EIGHT PATTERNS USED IN THE LOGO SYMBOLIZE RISE, SYNERGY, THE WORLD, MEETING, EAST AND WEST, INNOVATION, UNITY AND HARMONY. 13

16 DISCOVER THE POTENTIAL OUR GOAL IS TO ENSURE EXPORT FIGURES EXCEED 5 BILLION USD IN 2023 AS THE SECOND OLDEST ASSOCIATION OF TURKEY, İSTANBUL CEREALS PULSES OIL SEEDS AND PRODUCTS EXPORTERS ASSOCIATION INCREASED ITS EXPORTS BY 50 PERCENT IN THE LAST FIVE YEARS THANKS TO THE EFFECTIVE USE OF LOGISTICAL ADVANTAGES OF ITS MEMBERS. OUR MEMBERS ARE AIMING TO EXCEED 2 BILLION USD IN EXPORTS IN 2015, THE CHAIRMAN OF THE EXPORTERS ASSOCIATION, ZEKERİYA METE SAYS. Can you tell us more about İstanbul Cereals Pulses Oil Seeds and Products Exporters Association along with its contribution in export figures? İstanbul Cereals, Pulses, Oil Seeds and Products Exporters Association was founded in 1940, and it is the second oldest association of Turkey. The export of İstanbul Cereals, Pulses, Oil Seeds and Products Exporters Association is 6.7 billion USD in total exports of Turkey. As Istanbul Exporters Association, the export was 1.92 billion USD in The portion of 1.34 billion USD, corresponding to 50.6 percent of Turkey s total sugar product exports of 2.65 billion USD, is manufactured by the members of Istanbul Exporters Association. The Association that exports to more than 180 countries worldwide has increased its exports by 50 percent in the last five years. The members of the Association aim to exceed 2 billion USD worth of exports in 2015 by using their logistic advantage in the best way. Turkish national participation carried out by Istanbul Exporters Association at Internationale Süsswaren Messe (ISM the International Sweets and Biscuits Fair) held every year in Cologne / Germany, 14 turkishconfectionery.org.tr

17 DISCOVER THE POTENTIAL Prodexpo (the International Food, Beverages and Food Raw Materials Fair ) and World Food Moscow (the International Food and Beverage Fair) held every year in Moscow / Russian Federation, and GULFOOD (the International Food and Hotel Equipment Exhibition) held in Dubai / UAE as the National participation Organization as well as Bilateral Meetings simultaneously held for three years as Turkish national participation in a specific area of activity may be mentioned among the most important events of the Association. Turkish national participation at Sweets & Snacks Expo (the International Biscuit, Chocolate and Confectionery Exhibition) held in Chicago / USA was also carried out by our Association. What is the export target of the Association? Our country comes to the forefront due to its geographic location, history, language, religion, cultural unity, sensitivity in producing halal products as well as its ties with neighboring Muslim countries in the region. Thanks to their cuttingedge technology along with young and dynamic structure, our members have proven the power they have in export by their growth performance achieved in export in recent years. Our goal, as an Association, is to get a better place in the industry and to ensure exports exceed 5 billion USD in Can you tell us briefly about UR-GE program? What have you done in terms of activity under the scope of UR-GE program? UR-GE is a program initiated by the Ministry of Economy within the framework of the Communiqué No. 2010/8 on International Competitiveness Improvement. The starting point of UR-GE project can be summarized as encouraging the development of export strategies through plans and programs to be made with a common vision of our firms under coordination of a cooperation agency. In 2014, the Cereals UR-GE Project Group consisting of the companies of sugar and sugar product manufacturers organized trade delegations simultaneously with the exhibitions held in Thailand, the Philippines and Moscow, 100 IN THE COMPETITION AMONG MORE THAN 100 GROUPS, WE ACHIEVED A GREAT SYNERGY BY LETTING FOOD ENGINEERS AND INDUSTRIAL/ PRODUCT DESIGNERS PARTICIPATE UNDER THE SAME CATEGORY. respectively. Thanks to these delegations, the firms had the opportunity to promote their products in new markets and, accordingly, began to export to those countries that the delegations went. Currently, there are two new UR- GE project which continues under auspices of our Association. You broke new ground in the industry with Turkey s 1st National Industrial Food Design Competition. What is the purpose of this competition? The first National Industrial Food Design Competition was organized in September 2014 under the sponsorship of Turkish Confectionery Promotion Group. In the competition among more than 100 groups, we achieved a great synergy by letting food engineers and industrial/ product designers participate under the same category. Providing competitive solutions in the export of industrial food products, improving the competitiveness of the industry, creating advantageous opportunities and solutions to the industrial problems, emphasizing the importance of design for the industry, acting as a platform in the emergence of designs with export potential and, most importantly, contributing to the university-industry cooperation by bringing together the food companies of Turkey and young, dynamic designer candidates interested in the industry are some of the main objectives of this competition. 15

18 Q&A HIDAYET KADIROĞLU: WE ARE TAKING FIRM STEPS TOWARDS BECOMING A REGIONAL POWER Following their establishment in 2012 Turkish Confectionary Promotion Group has been working hard to achieve their 2023 target of 10 billion USD export volume. With 80 percent local raw material production input our sector holds the key to resolving the issue of current deficit says Hidayet Kadiroğlu, the president of the Turkish Confectionary Promotion Group. How do you position Turkey in the larger picture of world confectionary industry? What are Turkey s popular products and advantages in the sector? We are in the process of positioning Turkey as a land of sweets and confectionery with a newly coined concept called DelightLand. Sugary products category enjoys a significant market appeal in Turkey. This position is getting even stronger thanks to diverse dessert and sweet varieties of traditional cuisines of Turkey, the country s sugary products production capacity and the aptness and tendency of the business world towards this sector. In addition, the historical recognition, popularity and appreciation of Turkish Delight in the world constitutes the base of this market appeal. For that matter, by center-piecing Turkish Delight, the concept of Delight proposes a pretty strong argument for sugary products as it is regarded as an overarching concept that reminds of feelings like satisfaction, self indulgence, fun, sparing time ALMOST ALL OF OUR CITIES AND PROVINCES HAVE THEIR SPECIAL DESSERTS AND EVEN CONFITURES. SUCH DIVERSITY STEMS FROM OUR TRADITIONS AND IT IS REFLECTED IN OUR MODERN PRODUCT PORTFOLIO. for oneself and relaxation to the consumer. This is a concept intrinsic to the very wording of Turkish Delight. To cut a long story short we regard Delight as an all encompassing expression for sugary products. With Delight- Land concept we want to establish a perception of Turkey as the first place that comes to mind when talking about confectionary in a way that is similar to the relationship between cigars and Cuba. Within this framework product diversity and abundance of flavors are the two most important advantages of Turkey. Almost all of our cities and provinces have their special desserts and even confitures. Such diversity stems from our traditions and it is reflected in our modern product portfolio. Today our industry is active in almost every aspect of confectionary production and markets all over the world. Therefore the market positioning we describe as 16 turkishconfectionery.org.tr

19 Q&A 2,7 OUR EXPORTS WITHIN THE FRAMEWORK OF THE PROMOTION GROUP REACHED NEARLY 2.5 BILLION USD IN WE HAVE MANAGED TO RAISE THIS FIGURE TO 2.7 BILLION BY THE END OF WE ARE EXPECTING TO GROW 20 PERCENT EVERY YEAR IN ORDER TO ACHIEVE OUR 2023 TARGET OF 10 BILLION USD. DelightLand not only has its roots in the past but also corresponds to today s reality. While preserving our rich heritage of product diversity, in the forthcoming period we can also focus on alternative products. In recent years we have seen an upwards trend in bakery products while confectionary has already been on the rise. We set an ambitious target for the coming years therefore almost all product categories will have to grow. How was 2014 in terms of sugary products industry? Can you evaluate your 2015 targets? In 2014, the exports of Turkish sugary products sector went to nearly 200 countries most of them being either our neighbors or nearby countries. Thanks to the solid investments we made in the past few years our sector continues to take firm steps towards becoming a regional power. Despite the instabilities and conflicts in the south and the north, our sector has been able to achieve a growth rate that is three times the overall growth WITH DELIGHTLAND CONCEPT WE WANT TO ESTABLISH A PERCEPTION OF TURKEY AS THE FIRST PLACE THAT COMES TO MIND WHEN TALKING ABOUT CONFECTIONARY. rate of Turkish economy. Our exports within the framework of the Promotion Group reached nearly 2.5 billion USD in We have managed to raise this figure to 2.7 billion by the end of We are expecting to grow 20 percent every year in order to achieve our 2023 target of 10 billion USD. For that matter we will grow by at least 20 percent in Let me remind you that this rate is the minimum we expect Depending on the performance of the sector, an even higher growth rate won t be a surprise for us; we do expect this. Which potential markets do you target? Our priority targets, which are also the main export targets of Turkey in general, are neighboring and nearby coun- 17

20 Q&A IN ADDITION TO PARTICIPATING IN THE WORLD S LARGEST TRADE FAIRS LIKE ISM, SIAL AND GULFOOD, WE HAVE RECENTLY EXPANDED TO RELATIVELY NEW MARKETS SUCH AS SOUTH AMERICA. tries. While working on strengthening and establishing our position in these markets we are also pursuing new ones. United States of America, South American countries, Far East and Africa are among our potential priority targets. We have been working on projects pertaining to these markets in recent years. To your opinion, in the coming period which product categories has the potential to grow and to be exported the most? Cakes, jelly beans, sweet biscuits and chocolates stand out. Different continents and countries will have different demands. Countries with older populations will naturally show little interest in sugary products whereas in THE MARKET POSITIONING WE DESCRIBE AS DELIGHTLAND NOT ONLY HAS ITS ROOTS IN THE PAST BUT ALSO CORRESPONDS TO TODAY S REALITY. Asian countries where the population is relatively young we expect a steady increase in demand. The rising trend will continue in the newly emerging African market. Jelly products will continue to be popular in the Americas and especially in the United States. Can you tell us about the activities of Turkish Confectionary Promotion Group and how it was established? Turkish Confectionary Promotion 18 turkishconfectionery.org.tr

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