In 2007 food sales at independent stores were 39.3 percent of total spending compared with 60.5 percent at chains. In Quebec consumers tend to do most of their shopping at independents and this trend is slowly becoming apparent in Ontario and British Columbia.
Convenience stores play an important role in Canadians’ spending habits, especially for snack foods and confectionery. While there are a large number of outlets, this segment is dominated by only a handful of operators.
Chains of high-end, specialty, gourmet food stores are an excellent way to access the premium end of the food market.
There is a strong trend for “super-sizing” and purchasing items in bulk. Warehouse clubs for stocking up on certain foods have seen significant growth.
Getting your product into market
The industry structure includes retailers, wholesalers, brokers and other buying groups. Wholesalers or distributors typically buy, take possession of and resell products. The top 10 food wholesalers control more than 80 percent of all food wholesaling in Canada.
Retail food buyers include:
- large retail chains (supermarkets, convenience stores and mass merchants) with wholly-owned wholesaling arms
- independent wholesalers (which generally serve independents and smaller food retail chains)
- specialty wholesalers who tend to carry limited product lines and specialise in niche markets.
Once a relationship has been established, large chains will deal directly with New Zealand exporters.
Regulations
All food entering Canada is subject to inspection by the Canadian Food Inspection Agency. It does not automatically physically inspect every shipment that enters Canada.
All imports of alcohol are administered and regulated by provincial liquor boards, with the exception of Alberta.
Packaging and labelling requirements include labels to be in English and French.
Import tariffs are applied to many goods imported into Canada. There are some industries that are still protected by complex quotas in Canada, including the dairy industry.
Opportunities
- There is tremendous opportunity for New Zealand’s specialty foods. Many of these products will fit well onto the shelves of supermarkets and even more have the potential to find their way in to smaller speciality and gourmet food stores.
- Opportunities exist for manufacturer-branded, as well as private and house-branded products. These products can provide easier entry into the Canadian marketplace, especially when introducing a new category to the consumer.
- Both Bovine Spongiform Encephalopathy and avian influenza have made Canadians much more aware of food safety. As a result they demand increased assurances that food is safe. This creates a tremendous opportunity for New Zealand food exporters who are able to capitalise on New Zealand’s clean, green image.
Challenges
- New Zealanders must learn to see Canada as a country of regions. Some of the largest foodservice buyers may only have regional buying authority.
- Both the foodservice and retail food sectors in Canada have a sophisticated distribution network that must be understood to succeed.
- Listing fees can be very high and space on store shelves can often be lost to other products if an item is not successful in the short term. Listing fees must be researched.
