1. Jagannadha Chaitanya Jayanti Yong-Jun Lee Zoheb Mohammed Hakjun Youn

2.  Introduction  Target Market – Kazakhstan  The Exporter – Barry-Callebaut  Trade Cost  Marketing  Wrap-up

3. Kazakhstan

7.  Oil wealth: Real GDP growth average 8.6% during 2003-8  SWF: “National Oil Fund of Kazakhstan” – diversification of national wealth source

9.  Regard for European brands  Cautious in choosing food products  Emerging middle class  Increase in number of Super Markets

12.  Chocolate consumption per capita Overall spending % on sugar/confectionary way higher than the world average  Chocolate import Growing at average of 22% for the last 5 years  Complementary goods Consumption and demand for coffee increasing

14.  Friendly government policy to foreign trade Trade freedom 41 st from 183 countries (2009)  Reduced VAT 12% since 2009, down from 15%  Member of the Eurasian Economic Community (EAEC) Free trade from Jan. 2010

15. Barry-Callebaut

16.  Chocolate for Food Manufacturers: Supplies 35% of the world’s chocolate manufacturers.  Chocolate for Artisans & Chefs: Offers ready to use and sell products  Chocolate for Consumers: Home to Renowned Chocolate Brands – Jacques, Sarotti and Alprose.

19.  Sales volume up by 14.6%  Revenue up by 12.8%  Geographic expansion and organic growth.

20.  Largest processor of cocoa in the world.  27,000 metric tonne production capacity in Russia.  Controls 15% of world’s cocoa resources.  Economies of Scale and density achieved by 40 production facilities around the world.

21. From Russia with Chocolates!

22.  Common Custom Union among Russia, Kazakhstan and Belarus  Common Custom Space from Jan. 2010 + free custom duties + free of economic limitations + simplified custom formalities  Unified Economic Space

25.  Weight: 100g  Size ： 7.5 x 15.5 x 1 cm

27.  20 Feet Container + Payload: 22 tons + 200,000 bars  Freight Cost + Truck: max $4,000 + Train: probably cheaper  Custom Clearance Charge: $40 to $3,000  Total Transport Cost: max $7,000 or ￠ 3.5/bar

30. The Customers and The Competition

33.  European Brand  Manufactured from freshly ground Cocoa  Conforms to all health standards  Premium Product at Affordable prices

35. The Verdict

38.  Global Market Information Database  Euromonitor  Barry-Callebaut Annual Report 2008/9  Index of Economic Freedom 2010, Heritage Foundation & Wall Street journal  World Tariff Profiles 2008, WTO  World Outlook Report 2006-2011: Chocolate & Chocolate-Type Confectionery Products Packaged for Shipment  UN Comtrade  CIA Factbook  Roshen: http://roshen.com