Canada: a safe bet in a troubled market

Food from Britain North America has been beefing up its Canadian operation to meet the needs of the growing number of British companies exporting to the market. With the best overall economic performance of any of the powerful G8 countries, the country’s stability makes it a good market to aim for in the current global climate.

A stable economy
Canada is the 9th biggest market for UK exports, which hit £166.5million in 2006 and continue to grow steadily. Major exports to the country in 2007 were beverages, tea and bakery related products. The market enjoys an enviable level of stability, partly derived from its status as a net exporter of both energy and grain. Since the mid-1990s the federal government has posted budgetary surpluses and paid down the national debt. It is a market worth examining in the increasingly nervous global economy.

The Canadian grocery market
The grocery market is dominated by three major grocery chains: Loblaws, Sobeys and Metro – A&P. These chains have over 3,000 stores and represent 70% of the market. However, regional and independent chains are much stronger in Canada and as such are a viable opportunity for companies wishing to enter the market.

Natural, frozen and Ready-to-Go
Doug Robertson, Vice President of Sales & Marketing, Food from Britain North America (FFBNA) / Canadian Office, comments on the Canadian grocery market: “The major growth areas right now in Canadian grocery stores are found in the Natural/Organic section, the traditional frozen food department and the ready-to-go (RTG) Deli department.

“The Natural/Organic area is still experiencing double digit growth as more consumers turn to a “healthier lifestyle” and as products become more diversified and in some cases better priced.   With the ever growing strain put on time challenged families, there is an increasing need for nutritious quick meal innovations in both the frozen and RTG areas of the store.  Combine this with the latest wave of 100 calorie-count products being made available (snack portions of cookies, crackers, nachos, pretzels, etc.) and the move to “whole grain” food products in Canada and that is where our market place is today.”

FFB NA in Canada
Food from Britain North America recruited Doug Robertson from leading Canadian distributor SunOpta in September, to develop FFB NA’s Canadian operations. Doug has over 30 years experience in the consumer packaged goods industry in Canada, giving FFB NA’s Canadian operations a detailed understanding of the retail marketplace in Canada. It can provide insight into the various retail channels, retailer-specifics, regional niches, distribution challenges and importer/distributor options, tailored to the needs of particular British companies.

FFB North America has experience in introducing products to the US and Canadian market and working with companies to track performance and grow their business once established. Some of its key clients include Ryvita, Patak’s, Walkers Shortbread Inc. (US), and Jordan’s Cereals.

For more information about the Canadian market, contact Doug Robertson on doug.robertson@ffbna.com.

03 March 2008