We start in France, where, while aware of Asia Pacific's immense long-term potential, the region only represents about 10% of the country's total exports. Out of the US$40 billion worth of French agribusiness exports, only US$1.9 billion worth of food products finds its way to Asian dinner-tables. Literally, peanuts.

However, when it comes to beverages, the French are recognised as the undisputed champions of quality alcoholic products. Wines, champagne and cognac represent 60% of the Gallic nation's total food exports to the Asia Pacific region.

In addition, an international admiration and respect for the culture of French cuisine ensures a number of high-end French restaurants in cities all over the world. With timeless history and elegance on its side, French cuisine has become synonymous with gourmet food and fine wine.

On the other side of the plate, the newcomer australia. In a matter of years, the country has gained substantial ground in market share across Asia. With the help of intelligent and aggressive marketing and enthusiastic government support, Australian foods are ending up on a lot of Asian palates and we're not just talking meat and potatoes.

Australia has outgrown its role as a sole supplier of meat, grain and related commodities. So much so that in 2002, processed food exports grew by 25%, surging ahead of unprocessed food growth, which lagged at 12%.

In contrast to France's ura of old-world sophistication and elegance, Australia represents new-world pragmatism and resourcefulness with a green and clean attitude. Slowly but surely, exporters Down Under are locking their sights on key Asian targets such as Japan, Thailand, Singapore and Hong Kong.

Something to chew on

At a recent media launch for South East Asia FHA 2004, representatives from Austrade Singapore, a division of the Australian Trade Commission, outlined Austraia's lace as a key supplier in the food and beverage market in Asia Pacific's resilient economy.

A rapidly growing interest in 24-hour convenience shopping, functional foods and supplements and an emerging coffee-drinking culture is sweeping through South East Asia explains F&B Senior Business Development Manager Toh Guek Hong. The economy is opening up, and big retailers are coming, if they aren't already here.

In Singapore, Australia is the overall second largest supplier of food and drink, with the Lion City gobbling up US$380 million of imported food. It also leads market share in meat and dairy products, steadily staying in the 27-30% range.

With an arsenal of powerful brands, a modernised industry and strict environmental protocols to back them up, the Australian government is keenly offering its support to native exporters. In addition, a host of multilateral trade pacts have kept taxes and red tape low.

Geographic proximity is also on Australia's side fresh products for example, can be shipped almost overnight. But it's not just physicality that is strengthening ties between the country and the region , cultural migration is also playing a part.

Australia allso has a diverse Asian community base, which helps to pass on a more everyday understanding of their food culture to non-Asian Australians says ynovate Business Consulting Director Damien Duhamel, who recently published an article on the growing rivalry between French and Australian food interests.

Dishes like gado gado and dim sum are very familiar to locals, and this allows more room for adaptation when it comes to entering the Asian marketet. France, however doesn't seem  to have the same plans to make such an invasion.

Instead, it is content to focus on the U.S.A. and European markets. Prohibitive tax rates and relatively apathetic government support means that in many ways, exporting into Asia is more trouble than it's worth especially for smaller exporters.

This, and France's long story in the food trade, are holding it back. Systems that worked in the past haven't been adjusted to the needs of emerging new markets

The old, traditional systems aren't friendly to French exporters, who want to venture into Asiaia saysu Dhaumel.

There are a lot of restrictions, health regulations and administrative hurdles that make it very difficult. It seems Australia has discovered the right recipe for success in Asia.

Grapes of wrath

While the food battle might be lukewarm, the battle being waged from the vineyards and wineries of the two nations is overheating. Australia is now the third largest wine exporter in the world and has successfully rattled France's absolute supremacy in the wine market across Asia Pacific.

Friendly to the casual drinker, Australian wine labels are easy to understand and more accessible, compared to complex French wine regions and origins. Thanks to affordable prices and strategic targeted marketing,

Australian wines have become recognised as a reliable choice for a nice glass of wine.

New wine drinkers drink a lot of Australian wine, states Patrick Delafuente, Managing Director of Hong Kong-based alcohol and wine-importers Links Concept. They like it because it is easy to drink, easy to buy and it guarantees a nice drop.

With the backing of large-scale companies like Beringer Blass, Southcorp and Orlando Wyndham spearheading massive marketing budgets to attract new and experienced drinkers alike, Australia is well armed and positioned to thrive in Asia.

Nevertheless, France reigns supreme worldwide. As the home of high-end wine, even the most  amateur connoisseurs will eventually be drawn to the French labels. As tastes become more attuned, interested wine-drinkers will seek out whatever wine is perceived to be the best, and France's formidable image is not easily challenged.

For the most part, France has been able to rely on its bulletproof reputation to fend off the aggressive moves that Australian suppliers have been making with well-focused marketing strategies and implementations.
According to Sherine Yung of Singapore-based Caldbeck Wines & Spirits, the lull in French marketing activity will end soon enough.

"Promotion of French wines has been a little flat for a long time," she says. "By are trying to change their traditional mindset. Among the small old wineries, younger outfits are adopting new strategies and looking to attractively package themselves in a more contemporary way."

"Wine isn't such new thing in Asia anymore," tells Delafuente. "People are generally more knowledgeable about wines, and the Asian market still tends to lean towards French labels for their top wines."

Whether it is the case that the palates of wine-buffs are really becoming more sophisticated - or they merely want to appear more clued-in - is difficult to say for sure.  But the fact remains that image sells, and for the time being, it's just classier to drink French wine.

Clearly, each side is content to hold onto their prospective lucrative pieces of the Asian agribusiness market - France remains dominant in beverages, while Australia is a clear winner, for now, in food. But as competition heats up in the region, expect each country to continue to look for ways to bite into the other's share of the pie.