Getting your product into market
New Zealand companies wanting to work with one of the three major retailers in Canada will need to ensure they have in-market representation, the capacity to produce and ship large volumes, and are Global Food Safety Initiative certified.
Food safety certification is considered to be very important in the Canadian market.
New Zealand companies that are more suited to smaller or controlled volumes should consider a Canadian based representative or distributor that can target boutique stores that sell higher value products.
This represent and easier entry strategy into the Canadian market due to lower volumes, and offers a more gradual approach to growth.
In terms of alcohol New Zealand wineries should work with New Zealand Winegrowers Canada who have excellent relationships with liquor boards, agents, and distributors, to ensure ease of entry.
There are a large number of premium restaurants in Canada, offering numerous opportunities for New Zealand high quality, fresh, produce. New Zealand companies will need to ensure they have a dependable importer with contacts into their local food service regions.
As most provinces tend to have their own regional distributors, it is likely that more than one importer or distributor will be needed. For larger restaurant chains and retailers, Sysco Canada and Gordon Food Service are the primary food service distributors that companies will need to engage with.
Regulations
The Canadian Food Inspection agency is responsible for all food inspection and quarantine services for domestic and imported food products. All food labelling must be in both English and French.
The market for imported wine and spirits is highly regulated. Alcohol can only be imported into Canada through a provincial liquor board who is then responsible for warehousing and distributing to retail outlets.
Some agricultural sub-sectors and the dairy industry are subject to tariff rate quotas (TRGs). Importers must be in possession of a permit to obtain TRQ commodities which are obtained through a bidding process.
Opportunities
- The Canadian consumer’s appetite for fresh and healthy foods has grown. Rising health consciousness means consumers are demanding more nutritional quality from their food and beverage products.
- The growing proportion of immigrants in Canada is leading to an increasing demand for broader ethnic food ranges.
- The Canadian market has an appreciation for premium products, and is willing to pay more for quality and food safety.
- Consumer demand for convenience foods is rising. The Canadian convenience market remains relatively underdeveloped and therefore has potential for expansion.
Challenges
- The Canadian market needs to be treated differently from the food and beverage market in the United States.
- Restrictions on dairy products will continue to be an issue for New Zealand companies with dairy components in their products for the foreseeable future.
