Canada Retail Food Sector Report 2009

A Hot Tip about Food , Beverages and Tobacco in Canada

Posted on: 4 Jan 2010

In CY2008 Canada’s 33.5 million consumers generated overall retail sales totaling C$425.3 billion, representing a 3.4 percent increase over 2007. Food sales (excluding those from beer, wine and liquor stores) registered an annual sales increase of 3.9 percent over 2007 to reach C$79 billion or 18.5 percent of total retail sales.

Voluntary - Public Date: 8/19/2009 GAIN Report Number: CA 9047 Canada Post: Ottawa Canada Retail Food Sector Report 2009 Report Categories: Retail Food Sector Approved By: Robin Tilsworth Prepared By: Matthew John Thoren Report Highlights: In CY2008 Canada?s 33.5 million consumers generated overall retail sales totaling C$425.3 billion, representing a 3.4 percent increase over 2007. Food sales (excluding those from beer, wine and liquor stores) registered an annual sales increase of 3.9 percent over 2007 to reach C$79 billion or 18.5 percent of total retail sales. This report provides a snapshot of the Canadian retail food sector to assist U.S. food producers who wish to explore the possibilities of exporting to Canada, the largest market for U.S. agricultural products. Executive Summary: In CY2008 Canada?s 33.5 million consumers generated overall retail sales totaling C$425.3 billion, representing a 3.4 percent increase over 2007. Food sales (excluding those from beer, wine and liquor stores) registered an annual sales increase of 3.9 percent over 2007 to reach C$79 billion or 18.5 percent of total retail sales. This report provides a snapshot of the Canadian retail food sector to assist U.S. food producers who wish to explore the possibilities of exporting to Canada, the largest market for U.S. agricultural products. General Information: Overview Total U.S. agricultural exports to Canada reached a record-high of US$ 16.2 billion in 2008, a 15 percent increase over the previous year. Consumer-oriented agricultural products accounted for 75 percent of total U.S. food and agricultural product sales to Canada during CY2008, with fresh and processed fruits and vegetables, snack foods, and red meat products as the category leaders. Canada is the largest market for U.S. agricultural exports, and American products accounted for 62 percent of total Canadian agricultural imports in 2008. In 2008, the U.S. grouping of farm, fish and forestry exports to Canada reached $19.2 billion, $2.6 billion more than same category exports to Mexico, the next biggest market for U.S. agricultural products after Canada. Canada accounted for 14 percent of total U.S. food and agricultural product exports of $115 billion during 2008. Of the more than $43 billion in U.S. consumer-oriented agricultural product exports, $12 billion, almost 28 percent was destined for Canada. Of Canada?s $1.9 billion in seafood imports, 37 percent or $700 million were from the United States. Consumption: In 2008, Canada?s 33.5 million consumers generated overall retail sales totaling C$425.3 billion, representing a 3.4 percent increase over 2007. Food sales (excluding those from beer, wine and liquor stores) registered an annual sales increase of 3.9 per cent over 2007 to reach C$79 billion or 18.5 per cent of total retail sales. Canada?s retail sales have increased 14.8 percent over the past five years. Total food imports however, have increased 35.7 percent. Imported vs. Total Food Sales in Canada Agricultural and Total Retail Food Imports Food Sales (000 C$) (000 C$) 2008 28,996.5 78,695.9 2007 26,061.1 75,727.5 2006 23,538.4 73,089.3 2005 22,153.4 71,324.9 2004 21,364.2 68,567.8 Source: Statistics Canada Imported vs. Total Food Sales Statistics Canada, WTA The vast majority of retail food sales in Canada are through supermarkets representing over 75 percent of total retail food sales in 2008. General merchandise stores, which sell dry goods, household goods, apparel and food, are estimated to have sold 9.1 percent of food sold at retail in 2008. Other channels include specialty food stores, drug stores and gas stations. Chain store share of total retail food sales has steadily increased from 69.5 percent in 2002 to approximately 72 percent in 2007. Sales through group independent stores have decreased from over 27 percent of total food sales in Canada in 2002 to just over 25 percent in 2008. Canadian food sales through unaffiliated independents have varied from 3.2 percent to 3.8 percent of total sales since 2002. Store types may be defined as below: Supermarket Any full-line self-serve grocery store with an annual sales volume of $2 million or more General Merchandise Any full-line vendor of household, hardware and food items, over 125,000 sq. ft. Specialized Food Small store, often under 3,000 sq. ft specializing in a Stores specific food market sector, such as health foods or organic foods. Convenience Any full-line, self-service grocery store offering limited line of high-convenience items. Open long hours and provides easy access. Many sell gasoline with an annual sales of $2 million or more. Drug Stores Stores (often chain) with retail pharmacies and specializing in OTC medication and other health care related items and toiletries, now retailing an increasing number of general merchandise and food items. Gas Convenience store operating under or in conjunction Stations/Petroleum- with a gasoline sales banner Based Convenience Store The latest estimates from Canadian Grocer and Statistics Canada shows that there were 22,870 food stores in Canada in 2007 with C$79 billion in total sales. Canada: Retail Food Channels 2008 *Post Estimates based on Statistics Canada Retail Trade, Canadian Grocer?s 2008 Survey of Chains and Groups 2008 Post Estimate: C$78,695 million Trade: Product Major Supply Sources Strengths of Key Advantages/disadvantages Category by Value Supply Countries of Local Suppliers FRUITS & VEGETABLES: Canada is the Potatoes, sweet corn, VEGETABLES U.S.: 69 percent largest foreign green peas, beans and buyer of U.S. carrots are the most Mexico: 18 VEGETABLES: percent fruits and extensively grown vegetables. The vegetables in Canada. China: 4 percent 2008 U.S. benefits from Canada produces relatively IMPORTS approximately C$2.5 in FRUIT: U.S unimpeded export vegetables annually, .$1.9 U.S.: 50 percent access into B approximately 30 ILLION Chile: 9 percent Canada during percent of which are Canada?s winter Mexico: 8 greenhouse grown. percent or non-growing Apples are Canada?s FRUIT*: months. most widely produced Mexico is a fruit in terms of 2008 competitive tonnage, but with supplier of warm IMPORTS decreasing prices, US $3 climate produce, .4 blueberries are the most B including ILLION valuable crop. avocados, man Seasonality poses a gos and * constraint to growers; includes nuts limes. Canada imports Chile is approximately 80 per competitive with a cent of its fresh southern vegetables between hemisphere November and June. growing season. Leading exports include grapes and berries. SNACK FOODS U.S. 85 percent The U.S. Canada?s snack food China 4 percent dominates this imports have doubled 2008 category since 2004. The U.K. 2 percent IMPORTS: considering the category includes U.S more perishable chocolate and non-. $ 356.7 M and bulky nature chocolate confectionary, ILLION of some of these cookies, crackers, potato products such as chips, corn chips, chips, which adds popped popcorn, significantly to pretzels, and extruded shipping cost. cheese snacks, seed Competitors vary snacks, mixed nuts, by sub- category peanuts and peanut with the main butter, as well as pork competitor and rinds. sub category as The snack food industry follows: Chips, is served primarily by Mexico; Salted & domestic manufacturers roasted nuts, however domestic China; cookies & market share is being crackers, U.K.; lost to imports. The confection: non rapid increase in imports chocolate, is due both to the Mexico; strengthening Canadian chocolate, dollar and a number of Switzerland; new products in the cacao, Brazil. category, many targeted at specific ethnic groups. Canada does have domestic raw materials for the grain based products but has to import sugar, chocolate, cacao, and nuts for manufacturing and is not competitive on dairy and egg ingredients used in some of the processing. Product Major Supply Sources Strengths of Key Advantages/disadvantages Category by Value Supply Countries of Local Suppliers BREAKFAST U.S.:87 percent Breakfast cereal Sales and manufacturing CEREALS Ireland: 5 imports have in Canada is largely percent increased over 25 controlled by U.S. based 2008 percent since companies. Germany: 2 IMPORTS: pe 2004. The U.S. rcent Domestic non-U.S. U.S. continues to $353 owned competitors tend MILLION dominate imports to be in the specialty or although a variety organic breakfast cereal of competitors are business. all growing small Latest Statistics Canada niche positions. data shows that retail Canada sales of breakfast cereal represents the grew 4 percent in 2007 largest market for and sales of hot cereals U.S. breakfast grew 5 percent. cereals accounting for approximately half of U.S. exports. RED MEAT U.S. Beef imports fall Canadian red meat 87 percent into two distinct producers are facing a 2008 New Zealand 6 categories. The cost-price squeeze and IMPORTS: percent largest portion of production fell by an U.S. $1 imports is chilled estimated 1.5% in 2008. .1 Australia 3 BILL cuts traditionally ION percent The industry has worked from the U.S. its way out of the Midwest heavily inventory surge from the destined for the BSE trade disruption, Ontario but exports remain region. The other sluggish due in part to a part is frozen strong Canadian dollar. manufacturing me Canada continues to at from grow as a key U.S. pork Australia (for export market. Canadian grinding) and New hog production numbers Zealand (largely are in significant decline for specific man across the country and ufacturing U.S. pork imports are purposes). South increasing due to market America, except structures and the for Uruguay and stronger Canadian Chile remain dollar. largely ineligible Drought in western for entry to Canada is keeping feed Canada due to grain costs high. sanitary reasons. U.S. competitors are limited by a beef quota of 76,409 mt. FISH & U.S.: 37 percent Two major Declining fish stocks SEAFOOD Thailand: 16 categories make have lead to almost zero percent up approximately growth in fish and 2008 seafood catch over the China: 15 half of the IMPORTS: pe imports: last decade. rcent U.S. Crustaceans $1.9 In total, the capture Chile: 5 percent BILLION (including lobster, fishery accounts for 76 crab, shrimp and percent of total fish and prawn) totaling seafood production in U.S. $ 455 million Canada. (U.S. share 38%, Lobster, crab and shrimp Thailand 18%) account for and fish fillets approximately two-thirds $306 million of landed value. (China share 29% Aquaculture is increasing , Chile share 24% in importance. Key , U.S. Share 20% products include farmed ). salmon, trout, oysters Fish filleting is and clams. extremely labor At approximately 9.5 kg. intensive, which accoun per person, Canadian ts for the consumption of fish is rapid penetration by significantly higher than China. the U.S. 7.4 kg/person. Ocean catches have peaked; aquacu lture is becoming a more important source of product and China is the lead producer of farmed seafood in the world. Product Major Supply Sources Strengths of Key Advantages/disadvantages Category by Value Supply Countries of Local Suppliers FRUIT & U.S.: The U.S. leads in Canada is a major per VEGETABLE 65 percent the largest juice capita consumer of JUICE Brazil 12 category, fresh citrus juices but is percent orange juice. unable to grow these 2008 China 8 percent Brazil is the products. It will continue IMPORTS: U.S. leader in frozen to be an exceptional $773 MILLION orange juice value added market for concentrate, the the U.S. second largest Both Canada and the imported juice U.S. have experienced category, with 88 major penetration by percent of the Chinese apple juice due import share. to the major shift of China?s major Chinese agriculture juice export to toward labor-intensive Canada is fortified crops and labor intensive apple juice; China processing. holds 71 percent of this import market share. BEVERAGES U.S.: 33 percent The United States Canada?s system of France: 15 holds a provincial liquor control 2008 percent competitive share boards places extensive IMPORTS: in the imported and complicated Italy: 10 percent U.S wine market. restrictions on . $3.7 Australia: 7 BILLION pe introducing products into rcent the market as well as France and Italy (INCLUDING have driving consumer prices been Wine share $1.5 h significantly above those istorically strong BILLION OF WI France 26 NE) w of the United States. ine exporters. percent Combined with Canada is strong in beer Italy 19 percent Australia, the production, supplying Australia 17 three countries approximately 95% of percent supply 62% of the market, but this share is decreasing. U.S. 14 percent Canada?s imported wine. Imported wines have grown much faster than domestic wines with domestic whites faring significantly better than reds against imports due to Canada?s cooler climate. NUTS U.S.: 61 percent U.S. product, lead Canada has areas of Turkey: 8 by peanuts and Ontario, which can grow 2008 percent almonds is peanuts, but it has not IMPORTS: preferred by done so in commercial Vietnam 8 U.S quantities as the returns . $467 pe Canadian rcent M importers as it are not competitive with ILLION meets Canadian other crop alternatives. sanitary and Similarly British phytosanitary Columbia and other standards more provinces produce small consistently. quantities of a number Turkey is a of tree nuts including competitive hazelnuts. However, in supplier of general, Canada is not Hazelnuts. price competitive. Vietnam is a Health Canada competitive announced in Sept 2007 supplier of that it is reviewing the cashew nuts. ?may contain? wording on products with potential allergens. As of August 2009 this was still in review. The new label may be more restrictive. U.S. exporters are advised to watch for the change. Product Major Supply Sources Strengths of Key Advantages/disadvantages Category by Value Supply Countries of Local Suppliers NURSERY U.S.: 46 percent The U.S. is a Floriculture has PRODUCTS Colombia: 17 leader in world experienced steady percent production and growth in Canada 2008 estimated to have Netherlands: 14 marketing of IMPORTS: pe flowers, cut exceeded $2 billion in rcent U.S. $366 foliage, potted revenue. MILLION plants, bedding plants and turf grass. Colombia is very strong in cut flowers with 51% share of Canada?s market for imports. The Netherlands is strong as a bulb supplier. PET FOOD U.S.: 96 percent US exports of dog Most of Canada?s pet [DOG & CAT] China: 2 percent and cat food and food capacity is dog and cat concentrated in Ontario. 2008 biscuits exceeded New pet food IMPORTS: $474 million in importation U.S. $474 2008. requirements have been MILLION put in place as of June 30, 2009. Canada?s dog and cat food manufacturing industry was valued at approximately US$ 730 million in 2008. POULTRY U.S.: 87 percent The U.S. is the The Canadian poultry Brazil: 8 percent world?s largest industry is tariff IMPORTS: producer of regulated with live bird Thailand: 3 U.S. $402 pe poultry meat. and meat prices well rcent MILLION Brazil is the above those of the world largest exporter market. The Canadian of poultry meat strategy has been to and can land differentiate the product product in Canada particularly at retail at a lower cost through air chilling and compared to the such additional U.S. Brazil has attributes as ?vegetable rapidly expanded grain fed chicken? its share of the However the scale of Canadian broiler plant operations in market except Canada remains with Canadian relatively small due to further processing the supply managed plants that do not system. In an effort to want to take the mitigate this and to risk of offset difficulty obtaining commingling U.S. labor, Canadian and Brazilian processing plants are origin which among the most highly would result in mechanized sectors in being unable to Canadian agriculture and sell processed employ the latest in products to the robotics. U.S.A. The Canadian industry U.S poultry can has significantly be shipped fresh increased surveillance as well as frozen. since the avian flu Increases in outbreaks in British imports of U.S. Columbia and has chicken are due in continuously improved part to imports bio-security measures. under the Import for Re-export Program (IREP). EGGS & EGG U.S.: 96 percent The U.S. egg Canada?s egg industry PRODUCTS China: 3 percent industry operates under Supply traditionally fills Management, which is IMPORTS: Canada?s needs designed to encourage U.S. $64 when supply is production of a sufficient MILLION seasonally volume of eggs to meet low. There were market needs without significant creating surplus. The increases in U.S. market is protected by imports following high tariffs. Today, the avian flu about 70 percent of outbreaks in Canada?s total egg British Columbia production is sold for the to both avert table market, while the shortages in the remaining 30 percent is market and used in the rebuild the manufacturing of value- hatching egg added food and other supply. products (liquid, frozen The United States or dried form). These has also become supplies are a supplier of supplemented by organic eggs to imports and a Tariff Rate Canada. Quota system. The Canadian egg marketing agency is promoting omega-3 eggs to address consumer worries about cholesterol in conventional eggs. DAIRY U.S.: The U.S.?s close The Canadian dairy 36.3percent proximity to market operates under a 2008 New Zealand: market, speedy tightly controlled supply IMPORTS: 16.2 percent delivery, and management system, U.S. $436 which attempts to match Italy: 12.5 significant freight MILLION percent advantage has domestic supply with allowed it to be domestic demand while competitive in an paying producers on a Import for Re- cost of production Export Program related formula. This (IREP) which system has tended to allows U.S. dairy price dairy products product to be above prevailing world imported into levels. Imports are Canada duty free, controlled under Tariff- and used in rate-quota (TRQ) and further over quota imports are processing, subject to high tariffs. provided the American suppliers have product is taken advantage of subsequently Import for Re-export exported. As a Program (IREP), which result, and allows Canadian despite the processors to import significant trade dairy products used in barriers manufacturing provided protecting the the product is Canadian dairy exported. For example industry, the U.S. in 2006 Canada issued maintains the permits for 8556 MT of number one fluid milk imports out import position for side the TRQ under the fluid milk and IREP program. The U.S. whey powder, as was the primary well as the third beneficiary due to the in terms of value perishable nature of the for imported product. IREP cheese. accounted for 29% of The European total dairy imports in Union has a 2007. distinct advantage Canadian tariff rate in the cheese quotas stipulate a 50 trade since it has percent dairy content been allocated guideline for imported 66% of Canada?s product, resulting in the cheese quota as a creation of ingredients result of the 1994 and blend products that Agreement on are designed to Agriculture circumvent this (AoA). In 2008, guideline. Butter-oil- Italy overtook sugar blends were the France as first major products to Canada?s largest be imported tariff-free, imported cheese displacing Canadian milk supplier. for ice cream. More New Zealand has recently there has been a cost leadership an increase in flavored advantage. Low milks imported as costs of ?beverages? and a production due to number of milk proteins the availability of which are not captured year-round by the dairy TRQ. For pastures have example U.S. milk helped New albumin from whey Zealand achieve a concentrates destined leading share of for Canada increased world dairy 20% in value during CY exports, however 2008. rising demand is putting upward pressure on prices of New Zealand?s exports. New Zealand has an additional advantage on butter imports into Canada as it has been given country specific butter allocation of 2000 mt. This is due to the AoA and represents 61% of Canada?s butter import quota. Policy: Products Facing Significant Barriers For a full review of Canada?s food laws and regulations and how those might present barriers to U.S. food imports, see the latest Food and Agricultural Import Regulations (FAIRS) report. Due to the complexity of the legislative requirements, it is recommended to contact a Canadian Food Inspection Agency (CFIA) Import Service Centre (contact information below) to obtain complete and current information regarding your specific product. The Canadian Food Inspection Agency is responsible for the inspection of food products at all levels of trade. Following are some of the key restrictions that could inhibit certain products from entering the country: Tariff Rate Quota [TRQ]: Under the General Agreement on Tariffs and Trade [GATT], Canada is permitted to control and limit certain imports under its supply management system. With the signing of the World Trade Organization?s [WTO] Agreement on agriculture in December 1993, Canada converted its existing agricultural quantitative import controls to a system of tariff rate quotas [TRQs] that came into effect in 1995. Under the TRQ system, product up to a certain volume is imported at the ?within access commitment? tariff rate. Over this permitted level the ?over-access commitment? tariff rate escalates. These higher tariffs enable Canada to maintain its system of orderly supply management for certain agricultural products. In Canada the method for establishing the allocation of import access quantities is prescribed in the Export and Import Permits Act and administered by the Export and Import Controls Bureau [EICB] of the Department of Foreign Affairs and International Trade [DFAIT]. Documentation on the allocation system and principle of TRQ allocation, together with data on permits issued can be found at: http://www.dfait-maeci.gc.ca/eicb/ Issuance and control of import quota is administered by the EICB in collaboration with the customs section of Revenue Canada. U.S. products that fall into this category include: Broiler hatching chicks and Chicken eggs Butter Turkey Buttermilk Cheese Dairy Blends Milk and Cream Margarine Yoghurt Eggs Health Canada Health Canada continues to develop standards and policies for the safety of the food supply, which are applied by the Canadian Food Inspection Agency. All foods sold in Canada are subject to the Food and Drugs Act and Regulations, which contains health and safety requirements, labeling requirements and provisions preventing deception and fraud. However, many agricultural and fish products are also subject to other legislation. Consequently, the need for licensing, permits and certificates depends upon the type of food being imported and, in some cases, on the country or area from which the food is imported. It should be noted that in some provinces there are additional requirements for certain foods, such as dairy products, margarine, bottled water and maple syrup. The Food and Drug Regulations outlines specifications and further requirements for standardized and non-standardized products. The following are just a few examples of regulatory issues, which could pose a barrier for some United States food companies attempting to sell in Canada Food Additives: In the absence of specifications under the Food and Drug Regulations, food additives must conform to specifications in the Food Chemicals Codex. This is required by Section B.01.045 of the Food and Drug Regulations of Canada which can be found here. http://laws.justice.gc.ca/en/showdoc/cr/C.R.C.-c.870/bo-ga:l_B/20090721/en#anchorbo-ga:l_B Food Color: Synthetic food colors are the only additives that must be certified by the Health Products and Food Branch, Health Canada before being used in foods. Regulations concerning food colors are listed in Division 6, and Table III of Division 16 of the Food and Drugs Regulation. Diet-Related Health Claims: Only five food health claims are permitted: Diet low in sodium high in potassium Diet adequate in calcium and vitamin D Diet low in saturated fat and trans fat Diet rich in vegetables and fruits Minimal fermentable carbohydrates in gum and candy For wording see: http://www.inspection.gc.ca/english/fssa/labeti/guide/ch8e.shtml#8.4 Vitamin and Mineral Fortification: Fortification in Canada is under review. Health Canada has signaled that it is looking at expanding discretionary fortification but with restrictions on which vitamins and minerals and what amounts. However, differences remain such as the folic acid exclusion on milled grain and bakery products. For more information on fortification see: http://www.hc-sc.gc.ca/fn-an/nutrition/vitamin/index_e.html Trans Fats: In July 2007, Health Canada announced that it is adopting the Trans Fat Task Force?s recommendation on trans fats, but will ask industry to voluntarily limit the trans fat content of vegetable oils and soft, spreadable margarines to 2 percent of the total fat content, and to limit the trans fat content for all other foods to 5 percent, including ingredients sold to restaurants. Canada also requires that the levels of trans-fat in pre-packaged food be included on the mandatory nutrition label. For an electronic copy of the Task Force Report see: http://www.hc-sc.gc.ca/fn-an/nutrition/gras-trans-fats/tf-ge/tf-gt_rep-rap_e.html Organic Standards: Currently, about 80 percent of the demand for organic produce and approximately 90 percent of the demand for organic grocery products in Canada is met by imports from the United States. Canada has implemented new organic regulations (previously voluntary) in June of 2009. Details on the regulations can be found at the following site. http://www.gazette.gc.ca/rp-pr/p2/2009/2009-06-24/html/sor-dors176-eng.html Novel Foods: Health Canada defines novel foods as: products that have never been used as a food; foods, which result from a process that has not previously been used for food; or, foods that have been modified by genetic manipulation. Novel Foods regulations cover a variety of new food processes including the addition or deletion of genes (commonly referred to as genetically modified foods). For example Health Canada has reviewed; food produced by chemical mutagenesis of seed combined with traditional breeding, the use of new food processing techniques to extend shelf life and improve food quality and the use of natural coloring products introduced to food for purposes other than coloring. The Novel Foods Regulation requires that the company, who wants to sell the product, prior to the marketing or advertising of a novel food, make notification to Health Products and Food Branch (HPFB). For more information on the novel food regulations and approval procedures see: http://www.hc-sc.gc.ca/fn-an/gmf-agm/index_e.html Pesticides and Other Contaminants: Some agricultural pesticides approved for use in the United States are not registered for use in Canada. Foods which are found to contain unregistered residues over 0.1 parts per million are deemed to be adulterated. For further information see: http://www.pmra-arla.gc.ca/english/legis/maxres-e.html Other Specific Standards: Marketing: Sector Trends There are some key product trends which appear to be prominent in the Canadian food market. The two key considerations/demands among consumers accounting for many of the trends are health and convenience. Functional Food demand and product offerings are visible in virtually every product category. Functional products, enriched with nutraceuticals ranging from vitamins, fibre and calcium to omega-3, probiotics and antioxidants, include yogurt, frozen juice, breakfast cereals, frozen yogurt, juice, tea, ready-to-drink tea, soy milk, bottled water, energy drinks, bread, eggs, condiments, chicken and pork products. The market is estimated to reach $15 billion in value by 2010. Products with ?Better-for-You? claims have been reported as successful in addressing many consumer demands such as those for food which are low and/or no-calorie, and low in fat, sugar and salt. In response for lighter and diet options, significant numbers of successful products are claiming whole grain content, high fiber and calcium. Also addressing consumer demand for healthy alternatives is an increase in portion controlled products. Such sectors include portion controlled packages of cookies, chips, crackers, popcorn, chocolate, muffins, yogurt, granola snacks, carbonated soft drinks, milk and chocolate milk. Canada?s demand for organic food products has increased substantially to become a market worth over $2 billion with estimated annual growth of 15-20 percent. The most significant category of organics is fresh produce with supermarkets starting to integrate organic produce with conventional produce in merchandising. Packaged organic products include beverages, cut salads and bagged vegetables, breakfast cereals, yogurt, dressings and pasta sauces. Canadian supermarkets are also seeing an increase in the number of ready-made meals available to consumers. Those showcased at Canadian trade shows included premium dishes with high quality ingredients, ethnic meals (Chinese, Indian and Thai dishes) and a number of functional and better-for-you alternatives. Many are sold in oven or microwave safe and ready packages that are ready for consumption after 60 seconds to 10 minutes of heating. Other trends showing momentum at Canadian retail shows and in supermarkets are an increased demand for green tea and products with green tea ingredients, ethnic foods, artisan foods, and dietetic products. Following outbreaks of listeriosis and salmonella in Canada?s cheese industry and a listeriosis outbreak in a Maple Leaf foods plant in 2008, Canadians have become more cautious about food origins, ingredients and tractability. In response, food manufacturers and retailers are finding ways to communicate food origins and ingredients to consumers to build trust. Another trend in the retail food sector is the blurring of the lines between food and non-food retailers. Pharmacies, dollar stores, and gas station and convenience stores are increasingly selling food items and thus compete with traditional grocery stores. MVI-insights estimates the following compound annual growth rates of Canadian retail sales formats. Among the lowest growth rates are mass-merchandisers, department stores, supermarkets and cash and carry. The highest growth rates are convenience stores, category specialists and drugstores. Source: MVI-Insights Finally, there is inflation in most of the retail food sub-sectors. Dairy and egg prices have increased nearly 25 percent from 2002 levels and bakery and cereal prices have increased over 30 percent since that time. Much of the price increase is due to the degree of supply management in the Canadian food industries. Source: Statistics Canada Opportunities and Challenges Facing U.S. Exporters Opportunities Challenges Canadian consumers enjoy a high Private label brands continue to grow in disposable income, coupled with a many categories; sometimes taking growing interest in global cuisine. shelf space from American national brands. U.S. food products match Canadian Continuing retail consolidation forces tastes and expectations. competitive pricing. Fruit and vegetable consumption in With consolidation, sellers often face Canada is substantially higher than that one national retail buyer per category; in the U.S. Canada?s non-greenhouse this buyer will often purchase for all horticulture production is restricted to a banners under the retailer. Buyers are few months a year; retailers rely constantly looking to reduce price, heavily on imports to supply the improve product quality and extend the domestic market. product range with new entrants. Proximity: Canada and the U.S. share Canada has a very high ethnic 3,145 miles of border with virtually all population with specific dietary major Canadian cities in close proximity preferences. [The three largest cities to the border, thereby facilitating consist of more than 1/3 new communication and transportation. Canadians]. This consumer ethnic There is also significant overflow of diversity tends to be a challenge for U.S. television and print media in most some large scale mass marketing Canadian centers, which can reduce companies with products and broad advertising costs for American marketing campaigns. On the other companies with media campaigns in hand the different ethnic markets in U.S. cities bordering on Canada. Canada can create niche opportunities for smaller companies. Canada?s strengthening dollar is an Retailers and brokers/distributors advantage for U.S. exporters. charge high listing/placement fees. Canadian ethnically diverse population Food labeling, including bilingual provides opportunities for specialty packaging requirement, and nutritional products in populated centers. content claims are highly regulated and frequently differ from the United States. Retail consolidation favors larger-scale Retailers are interested in category suppliers and increases sales efficiency extension, not cannibalization. Products with fewer retailers to approach. U.S. entering the market must be suppliers have an advantage with innovative; not duplicative. larger scale. Duty free tariff treatment for most Differences in food standards may products under NAFTA. require special production runs and packaging due to Canadian standard package sizes. High U.S. quality and safety Differences in approved chemicals and perceptions. residue tolerances. Private label presents opportunities for Tariff rate quotas for certain products. custom packers of high quality products. The total population of Canada is slightly less than California and more dispersed, making marketing and distribution costs generally higher than in the United States. Market Entry Overview For U.S. food product manufacturers seeking to export, the Canadian marketplace presents vast opportunities. Canada is the U.S.?s primary trading partner ? more than 59 percent of Canada?s food and agriculture imports originate from the United States. This is a result of a number of factors, including a convenient shipping corridor and a familiarity with consumer tastes and expectations. Although Canadians are always on the lookout for new and innovative U.S. products, there are a number of obstacles U.S. exporters must overcome before exporting to Canada. These may include currency fluctuations, customs procedures and labeling requirements. However, these obstacles are manageable. Following are the main steps to take for U.S. exporters entering the Canadian market: 1. Contact your state regional trade office. 2. Research the competitive marketplace. 3. Locate a broker/distributor. 4. Understand Canadian government standards and regulations that pertain to your product. Market Entry Steps 1. Contact your state regional trade office. State Regional Trade Groups (SRTG) are non-profit groups that offer many services to U.S. food/agricultural product exporters. Primarily, they assist with privileged information about the various food sectors. Information on key distributors, buyers, and specifics about important trade and consumer shows are also made available. Through these STRGs, branded food products and agricultural commodities can be promoted with assistance from Market Access Program funds administered by USDA?s Foreign Agricultural Service. Product tasting/demonstrations, in-store promotions, point-of-sale materials, advertising, and trade show participation, are some of the activities for which eligible participants can obtain partial financial assistance. U.S. STATE REGIONAL OFFICES STATE STATES REPRESENTED WEB SITE REGIONAL Food Export USA Connecticut, Delaware, Maine, www.foodexportusa.org Northeast Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island and Vermont Food Export Illinois, Indiana, Iowa, Kansas, Michigan, www.foodexport.org Association of the Minnesota, Missouri, Nebraska, North Midwest USA Dakota, Ohio, South Dakota and Wisconsin Southern United Alabama, Arkansas, Florida, Georgia, www.susta.org States Trade Kentucky, Louisiana, Maryland, Mississippi, Association [SUSTA] North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia and the Commonwealth of Puerto Rico Western U.S. Alaska, Arizona, California, Colorado, www.wusata.org Agricultural Trade Hawaii, Idaho, Montana, New Mexico, Association Oregon, Utah, Washington, Nevada and [WUSATA] Wyoming 2. Research the competitive marketplace. A thorough understanding of consumer trends and needs are required in developing a market strategy. The Internet offers a wealth of information for U.S. exporters interested in researching the many aspects and particularities of the Canadian food sector. Though some consumer data can only be obtained with a fee, there are several industry specific publications that continuously report on specific developments of interest for U.S. exporters. These publications are Canadian Grocer (www.canadiangrocer.ca), a magazine that closely follows key developments in the Canadian grocery industry, and Food Service and Hospitality (www.foodserviceworld.com), a periodical that continuously offers updated information on the status of the food service industry in Canada. Sources of information: Organization Function/Purpose Information Statistics Canada The official source for Canadian social www.statcan.gc.ca and economic statistics and products. Food and Consumer An industry association representing Products of Canada (FCPC) approximately 130 Canadian- operated member companies that make and market retailer and national brands sold www.fcpmc.com through grocery, drug, conven ience, mass merchandise and foodservice distribution channels. Canadian Council of Represents Canadian distributors of www.ccgd.ca/ Grocery Distributors food and grocery-related products. (CCGD) Canadian Restaurant and The largest hospitality association in www.crfa.ca Foodservices Association Canada. (CFRA) Canadian Federation of Represents Canada's independently www.cfig.ca Independent Grocers owned and franchised supermarkets. (CFIG) Consumers? Association of Represents consumers to all levels of www.consumer.ca Canada government and to all sectors of society. Agriculture & Agri-Food Provides information, research and www.agr.gc.ca Canada, Agri-Trade Food technology policies and programs. Service Also provides access to statistics. 3. Locate a Broker/Distributor It is recommended that most new entrants to the Canadian market secure the services of a broker and/or distributor. Local representation provides exporters with a domestic advantage to understanding the local, regional and national markets and opportunities available. Brokers and distributors provide guidance on best business practices, sales contacts, market development, logistics and government regulations. Many also provide merchandising and marketing programs and their volume purchasing power can help reduce retail slotting fees. A partial listing of leading Canadian food brokers is available in the latest brokers report on the FAS website. The Toronto, Ontario-based Canadian Association of Importers and Exporters (CAIE) is Canada's key source of information on Canadian customs and trade policy. It provides Canadian importers with critical and timely information and effective representation to government agencies. See www.importers.ca. 4. Understand Canadian government standards and regulations that pertain to your product. The Canadian Government has multiple acts that govern importation and sales of foods. Some of the most important are: Canada Agricultural Products Act and Associated Regulations Consumer Packaging and Labeling Act Fish Inspection Act Food and Drug Act Importation of Intoxicating Liquors Act Meat Inspection Act Weight and Measures Act The Canadian Food Inspection Agency, Health Canada, and the Canadian Department of Foreign Affairs and International Trade are the main government bodies U.S. exporters can contact for specific information when studying regulations with which they need to comply. Though Canada and the U.S. share many consumer trends, cultural similarities and lifestyles; nutritional facts, ingredient declarations and health claim labeling regulations are different. Government Function Information Bodies Canadian Food Government of Canada?s Inspection Agency regulator for food safety [along www.inspection.gc.ca (CFIA) with Health Canada], animal health and plant protection. Canada Customs Its mission is to promote and Revenue compliance with Canada?s tax, www.ccra-adrc.gc.ca Agency (CCRA) trade, border legislation and regulations. Canadian Food and A regulatory document provided Drug Act by Health Canada, which laws.justice.gc.ca/en/F-27/ outlines information regarding specific food import restrictions. Administers the Food Safety Assessment Program, which Health Canada assesses the effectiveness of the www.hc-sc.gc.ca Canadian Food Inspection Agen cy's activities related to food safety. Foreign Affairs and Responsible for allocating tariff International rate quotas to importers. www.international.gc.ca/controls- Trade (DFAIT), controles/index.aspx Export & Import Controls Bureau Measurement Administers and enforces the www.strategis.ic.gc.ca Canada Weights and Measures Act for food labeling purposes. For more information on these food labeling regulations and other information useful to U.S. food exporters, refer to the Canada 2009 Exporter Guide on the FAS web site: www.fas.usda.gov. The information exporters need to understand about the new labeling regulation can be found in the following sites: Nutrition Labeling Resource Page: www.inspection.gc.ca/english/fssa/labeti/nutrition-pagee.shtml This page includes links to: Nutrition Labeling Toolkit Questions and Answers Information Letters E-mail Notification of Food & Nutrition Labeling Updates The latest guide to Food Labeling and Advertising can be found at: www.inspection.gc.ca/english/fssa/labeti/guide/toce.shtml In order to supply more and better information, several regional Import Service Centers function across the country. The staff at these centers can be contacted to obtain pertinent information on specific import requirements and documentation. Import Service Center Open Contact Eastern ISC 7 a.m. to 11 p.m. Telephone: 1-877-493- [local time] 0468 [within Canada or U.S.] Fax: 1-514-493-4103 Central ISC 7 a.m. to 12 a.m. Telephone: 1-800-835- [local time] 4486 [within Canada or U.S.] Fax: 1-416-661-5767 Western ISC 7 a.m. to 12 a.m. Telephone: 1-888-732- [local time] 6222 [within Canada or U.S.] Fax: 1-604-666-1577 Distribution Channels Food products imported into the Canadian marketplace may route directly to the retailer or filter through importers, distributors and wholesalers. A significant amount of U.S. agricultural and food products entering Canada is in the form of intra company transfer by major supermarkets. In such cases where volumes are large enough, U.S. products are transported directly from the manufacturer to the distribution centers of major supermarkets. All major Canadian supermarket chains are involved in wholesaling and retailing operations. Chain owned warehouses supply not only the chain's outlets, but may also supply franchised stores and independent grocers. Some independent grocers are affiliated with a wholesaler through a voluntary buying group. Convenience stores and smaller grocery retail chains are often supplied by the wholesale and distribution arm of a major grocery retailer. The larger retailers all approach the decision of when to buy direct and when to use a intermediary differently; however, the decision is often dependent on the sub-category of the product, its volume and the distribution pattern of the item. Perishable products, such as dairy, produce, meat, poultry and value-added items, are often procured directly by the larger retailers. Some retailers, such as Loblaw Co. Ltd. and Sobeys Inc., employ procurement offices in the United States for this purpose. Larger supermarkets merit the volume needed to purchase and transport directly from the United States efficiently. Smaller retailers are more likely to rely heavily on brokers, importers and distributors. To partner with a broker/distributor, food manufacturers pay a percentage of the product sales revenue. These costs vary significantly depending on the type of product line and expected sales volume. For example, fees can range from 3 percent to 10 percent depending on the volume and the amount of labor required. Commission rates are usually negotiated along with fees for special services such as the planning of promotions or data collection. Pioneering product lines may have significant monthly fees until the products generate enough sales volume to switch fully to a percentage-of-sales format. Depending on the type and specialty, a broker may be able to assist at any point in the distribution system, but services revolve around the brokers? contacts and knowledge; they do not actually handle the product Today?s growing non-traditional channels are forcing brokers/distributors to focus additional specialized sales teams on drug stores, convenience, grocery stores clubs and mass merchandisers. However, to become more competitive, leading non-traditional retailers are setting up central distribution centers for food products. Trends Driving Canadian Consumers Convenience The top convenience trends are: Ready-to-Eat-Foods: Women continue to do the majority of food purchasing, preparation and clean up. As a result, the demand for foods that are easy and quick to prepare yet tasty, fresh and nutritiously sound continues to grow. One-Dish Meals: Growth in quick one-dish meal kits such as stir-fries and stew are expected to grow. Custom Quick Food: Consumers do not spend an extensive amount of time preparing meals; but it still is important to feel that they have contributed something to the preparation. Therefore, there will be an opportunity for ready meals or kits, which allow the person preparing to add their own personal touch. Portability: Eating in vehicles or "Dashboard Dining" as well as eating at your work desk is becoming common. Portability and single service packaging are on the rise to meet the need "eat-where-you-are." Snacks and Mini Meals: Canadian eating patterns are changing from eating three main meals a day to eating several smaller meals through out the day. Convenient, nutritious snacks or mini meals will increase in demand (i.e. breakfast bars, wraps, sports drinks). Innovation: Convenience foods will continue to be popular but the key to success will be innovation. Health and Wellness Key trends within health and wellness include: Trans Fats and Saturated Fats: Canadians are continually concerned about fat intake and health concerns associated with trans and saturated fats. As a result, consumption of low-fat cereals, dairy products and frozen meals are rising. Correcting Condition: Food and food ingredients continue to increase in popularity as a method for self-medication and disease prevention. As a result, the demand for functional and nutraceuticals foods will continue to increase and new products will be developed. Weight Loss Products: Interest in weight loss products continues to be high. The number of obese Canadians has increased rapidly over the last few years causing wide public concerns. Food Safety: Consumers are increasingly interested in food products that provide reassurances about food safety. Organics: Health conscious consumers are also increasing the demand for organic and natural products. Food & Allergies: Food intolerance and food allergy consumers represent a niche market that is growing. Low Sodium: Canadian consumers are becoming conscious about the level of sodium in prepackaged processed foods and in restaurant meal foods. Pleasure/Indulgence Foods Ethnic Foods: Immigration to Canada and the number of visible minority groups have increased dramatically. Consumers are flocking to healthful and flavorful ethnic cuisines such as Asian and Mediterranean foods where the emphasis is on ingredients such as vegetables, grains and fish. Indulgence or Comfort Foods: Although Canadians are concerned about nutritional value of food, they still are reaching out for tasty snacks that are high in fat, sugar and salt. The demand for these foods continues to be high for they are often considered a reward for healthy eating or surviving the stresses of everyday life. Gourmet Products of Meal Excitement: New, unique, high quality and expensive products will be small indulgences for consumers who are seeking meal entertainment. Regional Cuisine: Consumers are becoming more interested in seasonal, regional and high flavor foods. Value Canadian consumers are demanding increased variety and high quality at very reasonable prices. Wholesale clubs and ?wholesale club? sections of major supermarkets are addressing this need. Key value trends are: Fresh Foods: Consumers are switching to fresh foods for they equate "fresh" with better taste, health and nutrition. Physical Energy, Functional Foods: Consumers seeking power and performance from food are turning to sports drinks, energy bars and snacks. Private Label: Traditionally, private label has been seen as lower quality and generally less desirable than national brands. However, in recent years, private label has changed dramatically. Stores are starting to introduce premium private label products. Store brands lower price attracts customers while the improved packaging and quality is retaining them and developing brand loyalty. This differs from the United States where private labels still are generally associated with lower quality. Category A: Products Present in the Market That Have Good Sales Potential 5 yr Avg. key Product Market Market Annual constraints Category Si s ze* Import Import over ma Attractiveness rket Growth deve for U.S. lopment Organic C$1 C$ 0.8 Price premium Demand growth Produce billion billion 20 percent exceeds domestic supply Edible Fruit C$4.2 C$3.4 Proximity, growing ent and Nuts billion billion 6 perc season advantage Fresh C$4.0 C$1.9 y, growing Vegetables billion p Proximit ercen t billion 4 season advantage Baking $650 C$1.4 R p Proximity, similar ercen t elated million billion 6 tastes Preserved $2.1 C$1.0 4 percen t Food billion billion Cereals $1.2 C$376 b n Chiefly Corn t illion mi 9 percellion Exports *Post estimates based on Statistics Canada Retail Sales Data and Industry Canada Category B: U.S. Products not present in Significant Quantities in the Market That Have Good Sales Potential 5 yr Avg. Key Product Market Annual Cons Market traints Category Si ts ze Impor Import over Attractiveness market Growth deve for U.S. lopment Provincial Avg. annual Al et value coholic C$18.9 C$3.3 control over mark Be 9.8 percent procurement growth of 5% verages billion billion and sale of ABVs Ethnic C$4 million Competition Proximity, Segment iginal diverse consumer Va und from or ef. 20 percent rietals country base in Canada suppliers Category C: U.S. Products with Little or No Presence in the Market Because They Face Significant Barriers 5 yr Avg. Key Product Market Annual Constraints Ca Imports tegory Size Import over market Growth development Dairy C$12.2B C$465M 2.6 percent TRQ on Imports Products Chicken C$1.9B C$293M 10.2 percent TRQ on Imports Eggs C$ 823M C$62M 9.8 percent TRQ on Imports Retail Sub-Sectors Supermarkets/Superstores, Mass Merchandisers and Club Warehouse Each of the three major Canadian retailers continues to strengthen their positions through an increase in store sizes, number of stores or methods for differentiation. Loblaw and company owned banners are reporting a number of strategies for 2009 to stay competitive in Canada?s retail food business. The company has improved quality assurance, sourcing, inspection and perishables presentation in an effort to refocus the business on food following a failed attempt at general merchandise expansion. The store reports a commitment to offering value, through weekly price checking of 1,000 key items. The company has earned a strategic advantage in control-label brands with over 5,200 products under the ?President?s Choice? and ?No Name? brands which compete head-to-head with national brands. Sales of control-label brands increased 7.2 percent year-over-year in 2008. The company has placed an emphasis on shop keeping with close monitoring of inventory under the new ?Always Available? program. In 2007, the company began converting its Extra Foods stores in Western Canada to its Ontario hard discounter No Frills. In 2009 Loblaw plans to keep converting Extra Foods into the No Frills discount banner in an effort to meet the needs of discount shoppers. Unlike Loblaw, Sobeys and Metro have stayed very focused on the food business. Sobeys has grown store numbers to increase total retail floor area by 127,000 square feet in 2008. The company is focused on fresh item management to determine consumer patterns and track quantities of fresh items purchased throughout the day. Sobeys management reports that this initiative reduces shrink which is a major drain on profitability. Like Loblaw, the company is also focused on sustaining a competitive price position. The ability to do so relies heavily on controlling and cutting costs and increasing productivity in distribution centers, administrative offices and stores. In 2008, Sobeys continued to expand its private label ?Compliments? line with a co-branded launch of a kids? line, ?Compliments Junior Disney? with 100 new products including burgers, tater tots and dried fruit snack mix. More than 75 percent of the line meets the Heart and Stoke foundation?s nutrient criteria for healthy choices and bear the Health Check symbol. The company has also launched a ?Compliments Organic? line. Metro supermarkets operates a number of banners in Ontario and Quebec. In 2008, the company completed the acquisition of A&P Canada and is working to consolidate five supermarket banners in Ontario under the Metro name. When this is complete, the Metro network will consist of 380 supermarkets in Quebec and Ontario. Metro differentiates its stores in part through contemporary design, warm ambience, direct lighting and a specialty boutique layout. From autumn of 2007, Metro replaced an array of brand with their new private labels ?Irresistibles? and ?Selection? to harmonize offerings across Quebec and Ontario. The company also launched a line of ?Certified Allergen Control? (CAC) products to respond to the needs of consumers with food allergies. The expansion of Wal-Mart in Canada is causing some delay in passing the rapidly increasing world commodity prices along to consumers. Much of the food inflation cost push which is now occurring throughout the world is being mitigated in Canada by reduced retail margins and in some cases losses by both suppliers and retailers as companies attempt to hold or grow market share. Competing with traditional Canadian supermarkets, Wal-Mart has announced plans to invest C$115 million into a state-of-the-art refrigerated distribution center in Alberta. This is part of C$220 in the last year to expand on a distribution network of 312 stores across Canada. Canadian supermarkets are not only feeling the pressure from Wal-Mart, but also from Warehouse Clubs stores such as Costco. Today?s warehouse clubs stock some smaller sizes and also sell a wider range of services and more luxury products. Clubs undersell other stores by cutting expenses and buying large quantities directly from manufacturers. In addition, club products carry an average profit margin of about 11 percent, while other retailers mark up goods 25 to 50 percent. Clubs make their profits on membership fees; price markups cover operating expenses and other overhead. The latest data from Nielsen through Canadian Grocer indicates that grocery sales through warehouse clubs grew 5 percent in 2007 whereas grocery sales through supermarkets grew only 2 percent. The average dollar sales per household trip at warehouse clubs, C$54.27, was more than double that of grocery supermarkets. Supermarkets/Superstores Primary Sales Retailer Banner Type (C$) No. Location Loblaw Companies Ltd. All Banners 31.7 B Across Canada Atlantic Superstore SS 51 ATLANTIC Axep SM 128 QC Dominion (Atlantic Wholesaler) SM 15 ATLANTIC WESTERN, ON, Extra Foods SM 104 NT Fortinos SS 20 ON Freshmart SM 58 ON, ATLANTIC IGA SM 3 MARITIMES L'Intermarché SM 63 QC Loblaws SM/SS 129 ON, QC BC, YT, NT, NU, PRAIRIES, Lucky Dollar SM 165 ON, Maxi SM 106 QC No Frills SM 134 ON Provigo SM/SS 95 QC Real Canadian ON, WESTERN, Superstore SS 101 YT, NT, NU, Real Canadian WESTERN, YT, Wholesale Club SS 32 ON, ATLANTIC Save Easy SM 58 ATLANTIC Shop Easy SM 63 WESTERN WESTERN, Super Value SM 36 ATLANTIC Valu-Mart SM 66 ON Your Independent Grocer SM 53 ON Zehrs SM/SS 50 ON Primary Sales Retailer Banner Type (C$) No. Location Sobeys Inc. All Banners 15.6 B Boni Choix SM 97 QC Boni Soir SM 236 QC Clover Farm SM 14 ATLANTIC ATLANTIC, Foodland SM 183 ON, QC Food Town SM 30 QC Garden Market (IGA) SM/SS 49 WESTERN QC, ON, IGA SM 249 WESTERN, IGA Extra SS 84 QC Kwik -Way SM 1365 ON, ATLANTIC Le Dépanneur SM 109 QC Needs SM 148 ATLANTIC ON, ATLANTIC, Price Chopper SM 116 WESTERN Sertard SM 37 QC ATLANTIC, Sobeys SM/SS 271 ON, WESTERN Thrifty Foods SM 22 WESTERN Tradition SM 32 QC Primary Sales Retailer Banner Type (C$) No. Location Metro Inc. All Banners 11.9 B AMI SM 85 QC Brunet SM 120 QC Clini Plus SM 70 QC Dominion SM 43 ON Extra SM 104 QC Food Basics SM 117 ON Gem SM 252 QC Les 5 Saisons SM 2 QC Loeb SM 32 ON Richelieu SM 105 QC Metro SM 221 QC Service SM 45 QC SOS SM 13 QC Super C SM 61 QC The Barn SM 8 ON Primary Sales Retailer Banner Type (C$) No. Location Canada Safeway All Banners 6.8 B BC, TY, NT, NU, Family Foods SM 63 PRAIRIES, ON BC, TY, NT, NU, Safeway SM/SS 223 PRAIRIES, ON Primary Sales Retailer Banner Type (C$) No. Location Overwaitea Food Group All Banners 2.7 B Bulkley Valley Wholesale WS 50 BC Overwaitea Foods SM 16 BC Buy Low Foods WS 24 BC, AB Save-On- Foods SM 72 BC, AB Cooper's Food SM 11 BC Urban Fare SM 2 BC Price Smart Foods SM 9 BC Canadian Grocer, Who's Who, 2009 Club Warehouse Primary Sales Retailer Banners Type (C$) No. Location Costco Canada Inc. (Foreign Costco ACROSS Ownership) Wholesale CW 5.0 B 68 CANADA Canadian Grocer, Who's Who, 2009 Mass Merchandiser Primary Sales Retailer Banners Type (C$) No. Location Buck or Two ACROSS Extreme Retail Inc. Buck or Two MM N/A 160 CANADA Canadian Tire Corporation, ACROSS Limited Canadian Tire MM 7.2 B 468 CANADA WESTERN, ON, Dollarama Stores Dollarama MM N/A 560 QC, ATLANTIC ACROSS Everything for a CANADA, Dollar (Canada) Everything for EXCEPT QC Inc. a Dollar MM N/A 72 AND SK Giant Tiger Stores PRAIRIES, ON, Limited Giant Tiger MM 1 B 185 QC, NB Great Canadian Great WESTERN, ON, Dollar Store Canadian NB, NS, PE, NF, (1939) Ltd. Dollar Store MM N/A 120 YT WESTERN, ON, The North West QC, NU, NT, Company All Banners MM 849.6 M 142 YT, NF WESTERN, ON, QC, NU, NT, Northern MM 127 YT, NF North Marts MM 6 MB, SK, NF, NU MB, NF, ON, Quickstop MM 25 NU WESTERN, ON, Wal-Mart Canada Wal-Mart QC, ATLANTIC, Corp. Canada MM/SC 3.3B* 304 NT, YT Zellers Inc. - A Division of Hudson's Bay WESTERN, ON, Company Zellers MM N/A 276 QC, ATLANTIC Canadian Grocer, Who's Who, 2009 *Food Sales Convenience Stores, Gas Marts, Kiosk Canadian grocer reported in 2007 that there were 7,841 chain convenience stores in Canada. Compound annual growth rates of convenience stores sales are expected to lead all store types at over 7 percent per year. The sector is expected to continue performing well for the coming years, although at a slower rate. This growth has attracted newcomers and forced established players to reinvent themselves to keep their position in the market. Convenience store floor space is also growing as many stores are expanding their premises in order to accommodate an increasing number of products and services. Focus on equipment to prepare and stock higher quality convenience foods that can be stored and retain quality for longer periods of time. Much like the trend in the supermarket sector, products that are perceived to be healthy are experiencing growth in sales. Convenience stores are stocking more sushi, baked goods and snacks (in place of fried), diet soft drinks, fresh fruit and energy bars. Convenience Retailers Primary Sales Retailer Banners (C$) No. Location Alimentation Couche- WESTERN, Tard Inc. All Banners 15.3B 2062 QC, ON Couche-Tard 246 QC Sept-Jours 143 QC Mac's 876 WESTERN, ON Winks 32 WESTERN, ON Daisy Market 204 ON Mike's Mart 1 ON Avondale Stores Limited Avondale N/A 107 ON WESTERN, YT, Fas Gas Oil All Banners N/A 428 NT, ON Good Neighbour Good Neighbour Stores Stores N/A 61 ATLANTIC Hasty Market Corp. All Banners 300M 265 ON Hasty Market 185 ON Min-A-Mart 80 ON Husky Oil Marketing WESTERN, Company All Banners 300 M 478 ON, NT, YT, WESTERN, Husky 313 ON, NT, YT, Mohawk 165 WESTERN, ON ACROSS Imperial Oil C-Stores All Banners N/A 589 CANADA AB, BC, NB, NS, ON, QC, On The Run 344 SK BC, NB, NL, NS, ON, QC, Tiger Express 95
Posted: 04 January 2010

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