In a forward-thinking initiative for food producers, Rovshan Rasulov, CEO and founder of Rgand, announces the launch of the Direct Trade Foundation (DTF).
This groundbreaking foundation is designed to facilitate the direct entry of producers into the lucrative U.S. restaurant market, a sector known for its vast opportunities and substantial barriers to entry. The fund aims to help producers from all over the world, including from Cyprus and Greece, to gain access to the restaurant industry supply chain and sell their products directly, without intermediaries.
Objective and Strategy of the Direct Trade Foundation
The primary objective of the Direct Trade Foundation is to empower producers by providing them with unprecedented access to the U.S. market through a comprehensive support system. By acting as an accelerator, DTF not only selects producers from a large and competitive pool—that includes Cyprus and Greece- but also equips them with the necessary tools and resources to overcome the complexities of market entry.
This initiative reflects a commitment to innovation and efficiency, offering tailored support that addresses the specific challenges faced by food producers.
Comprehensive Support System
DTF’s approach is both holistic and detailed, focusing on the minutiae that can determine success or failure in international trade. Financial investment, strategic guidance, logistical planning, and regulatory training form the support pillars.
The foundation commits a substantial $100 million over the next three years to develop producers who demonstrate potential for innovation and market impact. Each year, 50 producers will be selected to receive this multi-faceted support package, which includes cutting-edge technological tools, advanced logistical support, and significant financial backing.
Our foundation offers strategic support, advanced technologies, and strong logistical infrastructure, enabling producers to overcome traditional barriers and effectively enter the U.S. market. By investing in technology and logistics, we can remove many of the barriers that have historically prevented direct trade relationships between international producers and U.S. restaurants.
said Rovshan Rasulov
Addressing Market Entry Challenges
With over a million restaurants, the U.S. foodservice industry is vast and lucrative, generating approximately $1.1 trillion in annual revenue. Despite these opportunities, the barriers to market entry are formidable.
Entry into the U.S. restaurant market is fraught with challenges, from navigating complex regulatory environments to establishing reliable supply chains that span continents. The Direct Trade Foundation offers strategic solutions designed to mitigate these issues effectively. Producers from Cyprus and Greece can receive in-depth training on U.S. market regulations, consumer preferences, and operational best practices. Additionally, logistical support ensures that products meet and exceed the stringent quality standards required by U.S. regulations while ensuring timely delivery across the Atlantic.
The intricate logistics of transporting perishable goods across vast distances requires robust infrastructure and precise coordination. DTF’s logistical framework is designed to handle these complexities, ensuring that all products maintain their quality from farm to table. This is achieved through partnerships with leading logistics providers and the use of state-of-the-art technology to monitor and manage the transportation process.
“Transforming the supply chain into an efficient, cost-effective and transparent supply chain can be accomplished through robust logistics, networking, and technology infrastructures,” said Rasulov. “Our foundation equips producers with the strategies, technologies, and tools to successfully trade directly with the restaurant industry. This will lead to supply chain transformation with minimal intermediaries”.
Building a Brand and Gaining Trust
Beyond logistical and regulatory hurdles, establishing a strong brand presence and gaining the trust of U.S. restaurant owners and chefs is crucial.
Producers of interest include those in the business of food and beverage, restaurant supplies and equipment, and food technology startups.
The foundation supports producers in crafting compelling brand narratives and engaging marketing strategies that highlight the unique value and authenticity of their products. Participation in trade shows, product sampling events, and direct engagements with industry leaders are all facilitated by DTF to build visibility and credibility in the competitive U.S. market.
Entering the U.S. restaurant market is very resource-intensive. You need to participate in trade shows and have representatives, logistics, and sales channels. Through DTF, producers can showcase their products directly to potential buyers, allowing them to experience the quality firsthand, which is pivotal in establishing long-term business relationships.
explains Rovshan Rasulov
This strategic initiative, in partnership with Aivitam Ventures (CY), has the sole purpose of revolutionizing the way Mediterranean food products reach American diners. The service will provide producers direct access to a lucrative market, eliminating intermediaries and reducing costs, while streamlining supply chains and enhancing market reach for Mediterranean producers.
Innovative and Inclusive Approach
The Direct Trade Foundation prides itself on its innovative and inclusive approach to selecting producers. The focus is not merely on technological advancement, but also on the potential contribution of new ideas and practices that can revolutionize the food industry. This inclusive strategy ensures a diverse pool of participants, with initial selections from Europe, the United States, and Latin America, aimed at introducing various high-quality, innovative products to the U.S. market. Producers from Cyprus, Greece, Ukraine, and Turkey are also welcome to participate.
“As we expand, our goal is to include producers from across the globe, making the U.S. market accessible to the best and most innovative food industry,” Rasulov added. “This strategy enhances the diversity of products available in the U.S. and promotes global culinary innovation”.
The Direct Trade Foundation is set to make a substantial and lasting impact on the U.S. restaurant industry. By providing a pathway for direct market entry, supporting producers with comprehensive resources, and promoting innovation and authenticity, DTF is poised to transform how global food producers engage with one of the world’s most dynamic markets. This initiative marks a significant step forward in the globalization of the food industry, promising benefits for U.S. consumers and producers alike.
If you are interested in applying, please follow this LINK.
For more information about the Direct Trade Foundation, visit Rgand or contact Aivitam Ventures.
