What happens: Griffith-based food tech company Flavourtech has opened a pilot plant at Wageningen University in the Dutch Foodvalley region. The facility will allow European customers to directly conduct trials of the company’s aroma recovery and extraction technology, Austrade said.
Why this is important: This move shows how Australian exporters can use strategic positioning to access international markets. Flavourtech’s approach provides practical insights for regional companies considering global expansion, particularly around demonstration facilities and university partnerships as market entry tools.
Flavourtech ships aroma recovery, extraction and vaporization technology worldwide from Griffith in regional New South Wales. The company’s Spinning Cone Column technology, originally developed to remove sulfites during winemaking, has evolved to capture natural flavors during food production.
In October 2022, Flavourtech set up a temporary office at Wageningen University and Research Center while a new building was being constructed. The company is currently moving to its new pilot plant in Foodvalley NL, a region with approximately 1,000 food-related companies.
Proximity pays off
“By being close, we increase opportunities with our European customers,” says Flavourtech General Manager Leon Skaliotis. “It’s now so much easier for them to bring their product and run tests at our demonstration facility.”
The physical presence is important. Customers from Japan and India have offices in the same building, Skaliotis says. A chance meeting with contacts from the US, who were also setting up offices at the university, led to discussions about conducting tests with Flavourtech’s equipment in the Netherlands.
“There aren’t many places you can go and be at the center of so many food companies,” he adds. For companies considering a similar expansion, the lesson is clear. Temporary facilities can bridge the gap while permanent infrastructure develops. Flavourtech has been carrying out food and bio-based research with the university and their partners during this period, supported by temporary pilot plant facilities.
The new building also makes it easier for customers to experience Flavourtech’s technology for themselves. Being in the pilot plant and smelling the aromas coming from the condenser often sells the capabilities of the technology to customers.
“Communication technology has come a long way, but there is no scent-o-vision yet,” says Skaliotis.
Innovation meets collaboration
The company’s Spinning Cone Column was originally developed to remove sulfites during the winemaking process. However, it proved successful in solving another problem: removing alcohol from wine. Those initial tests also showed that it has the potential to capture natural aromas.
“Flavor companies around the world now consider the SCC as the gold standard for natural flavor recovery,” Skaliotis explains. “Other technologies can capture flavors and aromas, but none can capture them at the very light, volatile end like our system does.”
Other innovations may come in response to a customer’s request for assistance, or when Flavourtech sees a way to improve a customer’s processing operations. For example, in the late 1990s, Flavourtech developed a fully integrated processing line to help a customer reduce health and safety risks associated with cooking products and moving forklifts. More than 25 years later, this customer efficiently produces high-quality RTD beverages, is a market leader and says Flavourtech has been an integral part of its success.
Flavourtech is committed to working with others to solve the world’s food challenges. “We hope to add value and learn from other companies on the Wageningen campus,” says Skaliotis. Flavourtech’s SCC technology could be used in plant-based food production to remove unwanted flavors and aromas or to capture natural flavors, making food products more natural and tastier. The SCC can also extract desired natural flavors from overripe or unsellable fruit that would otherwise end up in the trash, creating new revenue streams.
University partnerships offer exporters more than just facilities. They provide research collaboration, access to industry networks and credibility with potential customers.
Strategic access point
Flavourtech’s approach to accessing the European market reflects wider strategic considerations for Australian businesses. Catherine Hill, Austrade’s Trade and Investment Commissioner for the Netherlands, the Nordics and the Baltics, notes that exporters sometimes assume they need a presence in multiple European countries.
“Australian exporters sometimes think they have to be everywhere in Europe,” notes Catherine Hill, Austrade’s Trade and Investment Commissioner for the Netherlands, Scandinavia and the Baltics.
“However, it may be more strategic to find a single entry point, such as the Netherlands. In addition to a densely populated domestic market, the country has four deep seaports, international air access and road and rail links to much of Europe within a few hours.”
The advice counters a common mistake. Rather than spreading resources across multiple European locations, identifying one strategic hub can reduce costs while maintaining market access. The Netherlands offers transport connections that reach most of Europe within hours.
The company found the administrative processes simple compared to other markets. “We found the Netherlands to be very transparent in the way they do business,” Skaliotis adds. “Austrade has been extremely helpful and pointed us in the right direction on issues such as setting up a virtual office until we had finalized our physical location.”
Virtual offices offer another practical tool for market entry. They provide legal presence and administrative capacity without immediate capital investment in permanent facilities. Austrade supported the expansion through its network and practical guidance. The trade committee regularly refers potential customers to Flavourtech. “Austrade can also refer us to connections,” says Skaliotis. ‘I often get an email asking for help from someone referred to us by Austrade.’
Regional roots, global reach
Flavourtech never saw the need to move its headquarters from Griffith, a regional Australian city of just 20,000 people, even as it became a global company. “The fact that we’re regional probably makes us more focused on our people,” Skaliotis says. ‘We know that many families rely on us. And if someone leaves, it can take a long time to replace them.”
The company works hard to take care of its staff, he says, and people often stay with the company and grow with it. The regional location offers retention benefits, although replacing staff may take longer if vacancies are available.
“We currently have almost 20 different nationalities working for us in Griffith,” he adds. “It makes international business so much easier. For example, we can easily clarify contract terms in Portuguese with a Brazilian customer, or help Chinese-speaking customers with remote installations during lockdowns.”
Multilingual skills are important for global business. Having staff who speak the customer’s language reduces miscommunication and builds trust during technical implementations. The company continues to develop new applications for its technology. “The success has not stopped us,” Skaliotis notes. “There is always something to develop, or a new challenge to solve.”
Consider temporary or virtual offices before committing to permanent facilities. Leverage university partnerships for research collaboration and access to industry. Choose a single strategic European access point instead of spreading resources. Build a diverse workforce to support international customer communications. Use government trading services for market information and customer referrals.
Source: austrade.gov
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