Back in 2005, EXP. Group was founded by Emil Serafino and his business focused on importing tropical fruits and vegetables from South America into the United States (U.S.) Bananas, plantains, avocados, mangos, coconuts, passion fruit and guava are just a few items the company started with. Over the years, the selection has expanded, and the company now offers more than 250 different SKU's. "We are focusing more on commodities that enable us to control the supply chain," says Anthony Serafino, President and Principal of EXP. Group and Emil's son. As a result, citrus, melons, asparagus, carrots, onions and specialty potatoes are now all part of the portfolio as well. The company is still partnering with growers in Central and South America, but also sources closer to home, in the U.S.
The expansion in product offering was followed by a geographic expansion. While founded in New Jersey, on the U.S. East Coast, a second location was opened up in Texas. "We even have plans to open a 3rd and 4th location in the U.S.," Serafino shared. "We are looking at a West Coast location to service our Asian markets as well as an additional East Coast location to serve our customers in Europe. The combination of product and geographic expansion makes us a more all-round, global provider of produce."
Left: asparagus, the main item EXP. Group ships to Europe. Right: Anthony Serafino.
"In the U.S., we have become an established player with a 300,000 sq ft. headquarters facility, over 80 trucks, and moving 600,000 packages a week." Produce is distributed across the country and into Canada and the company is able to fulfill the needs of their clients in North America. "However, we are in a business to serve people, and we believe we can make a difference in Europe," commented Serafino. Just like in the U.S., retailers and wholesalers in Europe are also looking for steady quality and supplies. As a result, the team spread their wings and started looking for opportunities in Europe several years ago. "The Fruit Attraction trade show in Madrid has really helped us in making connections in Europe and giving us a head start. This show continues to be a key event for us and this year will be my fifth time attending. We've always been able to meet with prospective clientele and Fruit Attraction has allowed us to bring the success that we have built in the Americas to Europe."
In addition to the Fruit Attraction show, Serafino believes Brexit has also made it easier to enter a key market like the U.K. "Upon achieving independence from the E.U., the U.K. has become significantly more advantageous for us. The uncertainty surrounding the post-E.U. United Kingdon had previously caused many companies to question what the future would hold. However, the successful implementation of Brexit prompted us to reconsider our approach to the country and we recognized a tremendous opportunity for market entry." EXP. Group's internal data and analysis revealed that numerous companies had been indecisive due to the evolving geopolitical landscape. "It resulted in prioritizing our efforts in the U.K. We firmly believe there is an abundance of potential for sustained business growth in the region," Serafino said.
Different clientele
Europe in general is a very attractive market for EXP. Group. "It is a growing market, a cornucopia of opportunity," Serafino commented. Why is Europe so attractive? It starts with the customer base. The characteristics of the company's clientele in Europe differ significantly from their customer base in the U.S., Canada, and Mexico. Even within North America, each of these countries have distinct requirements. "In the U.S., certain market segments hold a higher premium compared to others while this differentiation is not as prevalent in European markets, we've observed."
Additionally, European markets place a stronger emphasis on detailed quality control and extensive certification requirements compared to North America. "While quality requirements for produce going into the EU are very strict, they are the same in each member state, which simplifies business." In North America on the other hand, the U.S. and Canadian markets are very different when it comes to quality requirements for produce. "We can bring avocados from Guatemala into Canada, but not into the U.S. It's the same with papayas from Costa Rica. They are also welcomed in Canada, but not in the U.S."
The E.U. has one governing body and one set of rules that apply to all member countries. "All the different countries together act like the U.S., which makes it much easier to do business." In addition to having one set of rules, the E.U. is easier to deal with logistically. "You can get around fairly quickly. It's almost the same distance going from Paris to London versus Detroit to Chicago." With EXP. Group mainly selling produce in the U.K., Spain, France, the Netherlands, and Ireland, concentrated distribution allows for a small footprint. "In addition, transit times to the E.U. are very short from our location on the U.S. East Coast."
"Finally, we believe that our unwavering commitment to excellence closely aligns with the core values that we perceive in the European market," Serafino commented.
Asparagus
From the moment EXP. Group had their eyes set on distribution in Europe, Serafino picked one item he was going to export. "We feel it's best to excel in one item, get to know the market and then slowly expand with other items," he said. Asparagus is the biggest item the company is currently shipping to different markets in Europe and the feedback is very positive. "It is a bellwether item for us, and we are masterminding the European regulations and quality requirements for asparagus." A few other products are exported, but in limited quantities. All products destined for the European market are flown in by air. "We are specializing in air freight because it is less complicated than ocean shipments and it allows us to get into the game much easier. Once we are more established, air freight may be supplemented with ocean shipments."
With aspirations to become a global brand, EXP. Group is looking at opening up a division in Europe. Serafino expects that having a physical presence and becoming a more established player will make a difference. "We have big plans, and our goal is to open up a brick-and-mortar location where we can meet with retailers and wholesalers."
For more information:
Anthony Serafino
Exp. Group LLC
Tel: (+1) 201-662-2001
[email protected]
www.expgroup.us