How to resolve AdBlock issue? Roma Foods invades South East Asia … from Australia
By Leon Gettler, Talking Business >>
SOUTH EAST ASIA is a key market for some Australian businesses. One example is Roma Foods, a business that started in 1953.
Roma Foods owns a portfolio of brands including Orgran, Buontempo, Spliits, Pasta roma! and Freemills. The 100% Australian-owned company employs up to 100 staff in south-east Melbourne. 
Max Buontempo, the managing director of Roma Foods, says the shift to South-East Asia has been about strategy. In 2019, Roma Foods started exporting to Thailand which is now its biggest market in the region.
In addition to Thailand, Indonesia and Vietnam, the gluten-free pasta range is available in Malaysia and Singapore with further expansion across South East Asia planned.
“South East Asia has over 700 million consumers and it has one of the fastest group pf middle classes globally, set to exceed 50% of the population by 2030” Mr Buontempo told Talking Business.
“It’s starting to drive a shift towards more branded products, including health orientated products, where our Orgran brand sits in.
“We’re seeing growth rates that are well above the developed market, certainly from a smaller base but at the end of the day, for us to invest rally early.”
Gluten free strategy paying off
Mr Buontempo said Roma is embarking on the ‘gluten free’ and ‘free from’ strategy in South East Asia. 
The company exports to nine of the 11 markets in the region. That includes Singapore and Thailand, its biggest market in the region.
Mr Buontempo said the South Asian market generally recognises Australian food as being clean and safe.
“Our positioning is perfect and health led,” he said. “It aligns to a degree with the growing shift in South East Asia towards more conscious label aware consumers.
“And I guess we’re not competing on volume. We’re solving a real need and while the category is still developing, it plays to our advantage.
“We are already in the space of the health category and we understand there is a growing middle class,” Mr Buontempo said.
“We have the right products. We have to understand what products they’re particularly interested in, and that’s throughout various markets in South East Asia so we then try to tailor it to the various markets and solve the problems.”
SEA markets ‘better opportunities’ than western ones
Mr Buontempo said South East Asia offered much better opportunities for Roma Foods than western markets.
“If we try to get into the US, the UK, they’re still important but they’re mature and highly competitive,” he said.
“The cost of entry is really high and it can be difficult to gain any traction in those markets.
“And in contrast, coming back from Singapore, the demand is really forming. It’s merging markets and categories that are really receptive to wellness foods.
“There’s strong growth and it’s certainly less crowded in contrast to the UK and US.
“And with our products, having Australian suppliers with such credibility we can win really easily there,” he said
“It’s a lot easier for us to penetrate those markets than the US and the UK.” 
This is not to say that the US and UK are ignored. They are still important, but Roma Foods has to sell its products for a lower price in those markets.
“It’s not only that it’s more competitive but there are different structures and more complexity,” Mr Buontempo said.
Hear the complete interview and catch up with other topical business news on Leon Gettler’s Talking Business podcast, released every Friday at www.acast.com/talkingbusiness
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