Whitefox

Extracting the Right Information

Whitefox Technologies is a chemical engineering group that develops and commercialises innovative technologies. The company has devised a new process for extracting ethanol that is more energy efficient than existing chemical-based or molecular-sieve technologies and, therefore, less harmful to the environment. This new technology is so superior that it is expected to displace current technologies within a few years.

Brazil is an obvious marketplace for Whitefox’s membrane technology. The country is the world’s leading producer of sugar cane-based ethanol and 80% of all new cars in the country can run on either petrol or ethanol (known as flex fuel cars). Whitefox’s Head of Central and South America, Gillian Harrison, was keen to investigate the market’s potential and contacted the Export Marketing Research Scheme for support in Autumn 2007. The scheme, which is operated by the British Chambers of Commerce on behalf of UK Trade & Investment, provides advice and assistance to eligible export companies who wish to research a potential new marketplace. It helped to fund the visit to Sao Paulo and Rio de Janeiro and also provided some valuable advice, as Gillian explains:

“The Export Marketing Research Adviser, Richard Gilbert, suggested that the priority should be to obtain as much information as possible from the people I went to see, rather than trying to promote the product. This meant that the majority of the interview was about them and what their needs were, enabling me to work out their priorities and drivers. This will be extremely valuable information going forward and it will help us to structure our product presentation in order to hit the right triggers.”

Whitefox also used UK Trade & Investment’s Overseas Market Introductory Service (OMIS) to research suitable companies to visit in Brazil and set up meetings. Prior to visiting the marketplace, the company was aware that the majority of ethanol dehydration processes in Brazil were chemical-based. However, the research revealed a growing realisation that ethanol producers needed to switch to a safer and less environmentally harmful technology, in particular if they were going to tap into the potentially large export market. This presents a golden opportunity for Whitefox as its technology involves no harmful chemicals.

Critically, too, Gillian learned that other foreign companies were trying to break into the market but, according to Brazilians interviewed, without success because they didn’t appreciate the cultural differences.

“Japanese companies tried to enter Brazil with a Japanese mindset. From talking to people I learned the importance of linking up with Brazilian companies and of getting the relevant standards institutes involved at an early stage of the process rather than approaching them once the product was virtually ready for market.”

Whitefox also discovered that larger ethanol producing plants are now being encouraged to sell their excess electricity produced through cogeneration (using the waste matter from the sugar cane to produce electrical energy) to the National Grid. This has led to a renewed interest in energy efficiency. As Whitefox’ technology reduces energy consumption by roughly half, it became clear that the ability to reduce energy would give producers an additional income stream and provide Whitefox with another strong selling point.

Gillian concludes: “I do not have a background in marketing research so it was very useful to work with the Export Marketing Research Scheme and, at this stage in the process when there are big up-front costs, the financial support is obviously helpful, too. We are currently looking into the tax implications of setting up an incorporated company in Brazil and I have lawyers drawing up contracts for the sale or lease of our product. Although it is only a few months since we completed the research project, on 17 March we signed an agreement with a well-established Brazilian engineering company to work together as partners in the Central and South American regions and are already preparing a number of proposals for large ethanol plants in Brazil and the Caribbean which have come since the visit in November.”