1. Why Country of Origin Branding? The issues and how to leverage an important asset Ian Harrison, Chief Executive Australian Made Campaign Ltd Sydney 21 March 2016

2.  A few comments about the Australian Made, Australian Grown (AMAG) logo and the campaign behind it  Rules for making Country of Origin claims  Why is country of origin branding important  Taking the Australian brand to global markets Outline of presentation

3.  Certification trade mark for all classes of goods  Created by the federal Govt in 1986 30 years of market capital, here and overseas  Administered by a private sector, not-for-profit organisation (Australian Made Campaign Ltd) under formal contract with the federal Government The AMAG logo in brief

4. 11 Governing Members - “Govt. owned, industry driven”

5. Strong direction at Board level  AMCL’s national Board consists of ten Directors, elected by the 11 Governing Members  Glenn Cooper AM (Chairman), Chairman, Coopers Brewery Ltd (Adelaide)  Neil Summerson AM FCA (Treasurer), Company Director and former Chairman, BOQ (Brisbane)  Nicki Anderson, Corporate Giving & Partnerships Manager, Australian Red Cross (Melbourne)  Fiona Simpson, Vice President, National Farmers Federation (Northern New South Wales)  Kate Carnell AO, CEO, Australian Chamber of Commerce and Industry (Canberra)  Allyn Beard (Deputy Chairman), Company Director, A.H. Beard Pty Ltd (Sydney)  David Gray AM, MD, David Gray & Co. Pty Ltd (Perth)  Richard Holyman, CEO, Martin & Pleasance (Melbourne)  Robert Hutchinson, State Manager, ParexDavco (Australia) Pty Ltd (Brisbane)  Michele Levine, CEO, Roy Morgan Research (Melbourne)

6.  AMCL is not a government body and does not receive Government funding  Funded by licence fees < 1/10 of 1% of sales of nominated products (min is $300, max is $25K pa, plus gst)  All products using the AMAG logo must be registered with AMCL and must meet the criteria set out in the AMAG Logo Code of Practice – legally enforceable set of rules  The logo must and can only be used with one of five descriptors The AMAG logo in brief (Cont’d)

7. GLOBAL BRAND DOMESTIC & GLOBAL BRANDS Australian Made, Australian Grown logo family

8. Strong corporate support - Partners & Associates

9. Local Government involvement and support growing

10. Campaign growing – logo users

11. Logo recognised and trusted (Roy Morgan Research)

12. Domestic marketing campaign  TV, radio, print and outdoor advertising  Extensive PR  Trade shows and expos  Comprehensive digital and social media strategy  Actually trying to help licensees sell their products

13. Digital presence rapidly expanding  www.australianmade.com.au www.australianmade.com.au Visited over 90,000 times per month Generates over 3,000 sales leads per month for licensees  Australian Made Club Nearly 30,000 members  Over 185,000 Facebook likes  Over 6,800 Twitter followers  Over 4,000 Instagram followers  Over 18,000 YouTube views

14.  Being recognised as Australian is a positive in most markets Fresh, healthy & tasty: food grown in a clean, green environment Safe: products made, grown and caught in accordance with strict regulations and high, regulated standards High quality: components, ingredients and manufacturing/processing standards are high Value: represents good value for money  Can generate a price premium in the marketplace – particularly Asia  We are a high cost country – a challenge for the competitiveness of many Australian products, even with the lower $AUD, so country of origin is an asset that should be highlighted. Country of origin branding – a great opportunity

15. If being ‘Aussie’ is important in the marketplace, - whether that be a consumer, business or Government marketplace, and -here or overseas, it makes a whole lot of sense to maximise whatever advantage is on offer, particularly if that advantage generates a price premium. For business, that is what the AMAG logo is all about. So,

16. The challenge then is how to best convey the ‘Aussie’ message Facts are, the kangaroo works:

18. The AMAG logo overseas – global reach  More than half of the businesses that use the logo export  The AMAG logo provides recognisable, third-party accreditation delivering confidence to customers and consumers  The AMAG logo is a registered certification trade mark in: China South Korea Singapore USA  Extension to 8 other Asian countries planned  Provides legal framework for Aussie branding in those economies  Contracts in place with Campaign Partners and Retail Supporters to help businesses access these markets

19. Federal Govt’s proposed new food labelling Response to frozen berries matter early last year Mandatory label for all fresh and packaged foods sold in Australia, except a few exempted categories (eg alcoholic beverages, soft drinks, confectionary and... ) Will include a bar chart showing Australian content Plus the AMAG logo (where product qualifies) Plus some prescribed wording

20. Examples of proposed labelling

21.  Currently under discussion with States and Territories  Into federal parliament in May/June  Implementation planned for 1 July 2016  Companies to be given 2 years to amend labels Plus proposed amendments to the CoO ‘safe harbour’ provisions, for all food and non-food products  Removal of 50% value added test for ‘made in …’ claim  More rigour into the ‘substantial transformation’ test  Big potential to impact on local supplier industries Federal Govt’s proposed new food labelling (cont’d)

22. The Australian community working together to promote its products and produce to the world www.australianmade.com.au

23. The solution is the AMAG logo  Recognised and trusted  Conveys ‘Australian’ message instantly, clearly and with authority  3 rd party accreditation and credibility  Influential  Differentiation in the marketplace  Competitive advantage in export markets

24. What constitutes ‘Australian made’? Product must meet 2 tests:  Product needs to have been substantially transformed (not simple assembly or packaging) in Australia AND  50% or more of the cost of production must have been carried out in Australia. Both tests must be met

25. ‘Australian Grown’  All the significant ingredients grown in Australia  Not exported and re-imported  All the significant processes undertaken in Australia ‘Product of Australia’  All the significant ingredients grown in Australia  All the significant processes undertaken in Australia

26. ‘Australian Grown......’ qualified claim  ≥ 50% of cost of production in Australia  ≥ 90% of total ingoing weight grown in Australia  ≥ 50% of total ingoing weight must be the specified goods (eg apples and pears)  100% of specified ingredients (apples and pears) grown in Australia  Specified ingredients (apples and pears) not exported and re-imported APPLES & PEARS

27. ‘Australian Seafood’  Must be a seafood product  All of the products significant ingredients are grown/harvested in Australia  All, or nearly all, of the processing has been carried out in Australia

28. ‘Australian’  Must meet all the criteria of at least one of the preceding claims  Only for use on goods sold outside Australia  Must not give a misleading impression as to the origins of the major ingredients or components of the product