CUBANET ... CUBANEWS

September 26, 2002



Soup to cereal: U.S. firms pitch wares to Cuba

By Nancy San Martin. nsanmartin@herald.com. Posted on Thu, Sep. 26, 2002 in The Miami Herald.

HAVANA - Nearly 300 exhibitors will tempt Cubans with slabs of ham, bacon and sizzling barbecue meat from middle America when the largest U.S.-Cuba trade fair in more than 40 years opens today. Chilled mojito-style martinis from New York will offer the promise of a quenched thirst.

And Florida's Port of Pensacola will use the opportunity to try to convince the Cuban government that theirs is the quickest route for getting the products from the United States to Havana.

''We're trying to restore some of the position the Port of Pensacola had prior to 1959, when it was the largest port for exports to Cuba,'' said Amy Miller, business and trade development manager for the Port of Pensacola.

''We want to talk to them about the changing business climate, especially for Pensacola and Northwest Florida,'' Miller said. "Economic development and infusion of money into the community is very important. Our community is supportive of us doing business with Cuba. It creates jobs and it creates economic benefits.''

FIRST OF A KIND

Miller is among about 750 American executives participating in the first trade show designed specifically for U.S. companies since Fidel Castro rose to power in 1959. The show has drawn significantly more interest than organizers anticipated.

The U.S. Food & Agribusiness Exhibition, as it is called, opens today at the Pabexpo convention center outside Havana and ends Monday. It offers American corporations an unprecedented opportunity to make a sales pitch to a country that has been barred from doing business with the United States for four decades.

''I would have been happy with 75 [exhibitors], I was hoping for 100 to 120 and here we are with 288,'' said Peter Nathan, president of Connecticut-based PWN Exhibicon International L.L.C., organizers of the event. "What it tells me is that the American companies are very eager to do business with Cuba.''

But James Cason, chief of the U.S. Interests Section in Havana, disputed the importance of the market, calling Cuba "an international deadbeat and last in terms of GDP.''

''I expect to see a lot more bull than beef,'' Cason said.

Among the products to be displayed are cereals, cookies, sports drinks and even dog food. One poster depicts a soup can resembling Campbell's. Its altered name: "Cuba's Condensed Revolution Soup.''

Chatham Imports, based in New York, is promoting its ''Marti Autentico Ron,'' which is distributed in Florida. Exhibitors will be combining the lemon-flavored rum with 10 different mixers, including Coca-Cola and Dole pineapple juice.

''It takes the mojito flavors profile to another level,'' said Stephen Ziegler, vice president of sales.

J.P. Wright & Company of Naples will be offering cattle, touted as, ''the finest in America suitable for southern tropical climates,'' said John Parke Wright IV, the company's chairman.

Wright said land from Cuba's dwindling sugar plantations could be replanted with grazing grass, providing the island with a viable alternative "to diversify agriculture away from one crop dependency.''

SUGAR DOWN

Sugar exports, once the backbone of the economy, have collapsed over the past few years, forcing the government to shut down numerous mills.

''This would increase the availability for milk for kids and seniors and put meat on the table,'' Wright said. "Ranchers of Florida and ranchers of Cuba can work together like no other ranchers in the world.''

Florida has the largest number of exhibitors at the trade show.

The Kentucky Department of Agriculture, which has the third-largest number of exhibitors, will be showing its burly tobacco, used in American blend cigarettes such as Marlboro. Two bourbon barrels made of Kentucky White Oak are also on display in the hopes they can be used to age Cuban rum.

''The Cubans are very interested in that,'' said John Cotton, the department's director for wood products. "The barrels they have here, from what we understand, are as many as 30 years old or older.''

The state's Commissioner of Agriculture, Billy Ray Smith, plans to impress Castro with a custom-engraved Louisville Slugger baseball bat. Castro is expected to attend the event today.

A second regulation professional bat will be given to Pedro Alvarez Borrego, chairman of Alimport, the Cuban government agency responsible for most of the foreign purchases.

SETTING UP

Exhibitors spent Wednesday drenched in sweat as they set up exhibit booths and scurried about to stock them with supplies. The opportunity to sell to Cuba offers exhibitors a strong incentive. Riceland Foods in Arkansas, for example, already has sold 25,000 tons of rice since Cuba began purchasing U.S. products following Hurricane Michelle last year. But with Cuba importing about half a million tons of rice a year, primarily from Vietnam and China, the market potential is staggering

''It would rank, theoretically, as the second-largest market for the U.S. Japan is the first right now,'' said Terry Harris, vice president of international marketing for the company. "We think it's worth the time, effort and money spent.''

Said Miller of Pensacola: "We'd love to walk away with an agreement saying that cargo destined to Cuba is going through the Port of Pensacola. Is that realistic? I'm not sure. But our purpose here is to begin a dialogue -- Cuba now is part of that world of international trade.''

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