Voluntary Report - public distribution

**Date:** 5/23/2003

**GAIN Report Number:** C13008

C13008

**Caribbean Basin**

Retail Food Sector

**Grenada**

2003

**Approved by:**

![](media/image1.wmf)Margie Bauer

#### Caribbean Basin Agricultural Trade Office

**Prepared by:**

Angel F. González Trápaga

Agricultural Marketing Specialist

**Report Highlights:**

Grenada, often referred to as \"The Spice Island of the Caribbean,\" is
one of the smallest independent countries in the Western Hemisphere.
Despite it size, the island imported \$14 million in food and beverage
products from the United States in 2001. Market opportunities exist for
a wide variety of U.S. products, including: beef, pork, poultry, dairy,
produce, and alcoholic & non-alcoholic beverages. This report explains
how to successfully enter Grenada\'s retail food market.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Miami \[C11\]

\[C1\]

# 

# Section I. Market Summary

## [Country Snapshot]{.underline}

The nation of Grenada consists of three islands: Grenada (133 sq.
miles), Carriacou (120 sq. miles) and Petite Martinique (486 acres). It
is located in the Eastern Caribbean between Trinidad and Tobago to the
south and St. Vincent and the Grenadines to the north. It is just 100
miles north of Venezuela and 158 miles southwest of Barbados. The island
is the southernmost of the Windward Islands and is bordered by 45
picturesque white sand beaches with turquoise waters and countless
secluded coves. Grenada has a pleasant climate with a year-round average
temperature of 80 degrees Fahrenheit.

Total population in 2001 reached 102,000 with a Gross Domestic Product
(GDP) per capita of \$4,750. About 95,000 people live in Grenada, 7,000
in Carriacou, and 900 in Petit Martinique. Eighty-five percent of the
inhabitants are from African descent and the rest are a combination of
East Indian and European descent (English, French, Portuguese, and
Scottish). Grenada, with its French and British legacy, took full
independence from Britain in 1974. Now it has a parliamentary democracy
based on the British model. Everyone speaks English, the official
language, and older generations also speak French patois. St. George's,
located on the southwest coast of Grenada, is the capital, the main
commercial center, and the seat of the government. Approximately 35,000
people live in St. George's.

Grenada is a developing Caribbean island nation with a steady annual
economic growth since 1999. It shares a common currency with seven other
members of the Organization of Eastern Caribbean States (OECS). The East
Caribbean (EC) dollar is linked to the U.S. dollar at approximately
\$2.72 to \$1 U.S. (rates may vary). Its economy, the fastest growing in
the region, is based principally on tourism and agricultural production.

The tourism sector, backed by the commitment of the Government of
Grenada, is the most promising sector for the future growth of the
island's economy. Agricultural production is declining and faces many
serious issues. For example, in the 1990's Grenadian farmers faced
serious problems with quality issues in bananas and a mealy bug
infestation that threatened the entire cocoa crop.

**[Market Overview]{.underline}**

Most of Grenada's food imports are from the United States due to its
proximity to the island and the quality, price, and diversity of U.S.
high-value products. Grenadians are very receptive to U.S. food products
as a result of a consistent flow of American tourists, education,
business, and pleasure travel to the U.S., and its exposure to U.S.
media through cable television. Many popular U.S. brands are already
very well known and established in the marketplace. Grenada is a
price-conscious market, so lower priced products have better acceptance
by locals.

![](media/image2.wmf)In 2001, Grenada's total market for food imports
was \$34 million. The U.S. accounted for the largest share of imports,
with a 40 percent market share. Other trading partners include the
United Kingdom, Canada, Brazil, and other Caribbean countries such as
Trinidad & Tobago and Barbados. An estimated 60 to 70 percent of total
food imports is destined for the retail sector. The remaining 30 to 40
percent is used by the food service sector.

Data Source: U.N. Trade Statistics

Grenada has about 8 large supermarkets, 2 gas marts, 1 club store, and a
handful of convenience stores. In addition, an estimated 3,000 mom & pop
shops are currently in business throughout the island. Several
traditional markets, which are subsidized by the government, are located
around the island for the purchase and sale of local produce.

Supermarkets and the island's only club store import most of their food
products. They also buy approximately 20 to 30 percent of their food
supplies from other importers or distributors. By contrast, gas marts,
convenience stores, and mom & pop shops do not import directly. They
obtain their food products from local wholesalers or distributors.
Occasionally, when importers run out of their food supplies, mom & pop
shops rely on supermarkets to get their staples.

The Grenadian government protects local agricultural production with
import licenses. Protected food products include whole chicken, eggs,
fresh produce, and high proof spirits. At the same time, all products
except soft drinks, alcohol, cereal, produce, some dairy products, fresh
& frozen seafood and condiments are government price controlled.
Wholesale price control margins range from 5 to 15 percent and retail
margins range from 10 to 29 percent. The Grenada Marketing & National
Importing Board (GMNIB), a state trading enterprise, regulates the
importation of certain commodities. Brown or white sugar, full cream
powder milk, and rice - packed in 10 kg sizes or larger - have to be
sold directly to the board. Then GMNIB distributes the products to
importers and retailers.

Grenadian customs officials require the following documentation for the
entry of imports: commercial invoice, bill of lading, packing list,
certificate of origin, and certificate of value. Customs clearance
usually takes 48 hours but for perishable products it could take less
time. Tariffs for food products range from 5 to 80 percent. Imports,
even when duty free, have a 5 percent tax surcharge.

Food exports from the United States to Grenada have been increasing
since 1999. In 2001 total exports were \$14 million. This represents a
2.5 percent increase from the previous year. Importers anticipate the
market will continue steady growth as a result of an improving economy
and a new direct flight from London to Grenada scheduled to begin in the
summer of 2003.

![](media/image3.wmf)

Data Source: FAS' Global Agricultural Trade System using data from the
United Nations Statistical Office

## 

**[Market Trends]{.underline}**

-   Gas marts have been recently introduced in Grenada.

-   Grenadian's demand for convenience or value added goods is growing.

-   Customers increasingly demand low fat and healthy foods.

-   Organic foods are starting to make their presence in the islands as
    a result of demand by international students from the St George's
    School of Medicine.

-   Supermarkets are including deli and bakery sections.

  ----------------------------------- -----------------------------------
  **Advantages**                      **Challenges**

  Importers and retailers are very    Importers and retailers usually
  open to introduce new products.     purchase food products in small
                                      volumes.

  Most food imports are from the      Importers are switching from U.S.
  United States due to its proximity  poultry and pork because of lower
  to the island and the high quality  prices and perceived comparable
  of U.S. products.                   quality from Brazilian products.

  Grenadian consumers have complete   The Grenada Marketing & National
  knowledge of the American culture   Importing Board regulates the
  and are very receptive to U.S. food importation of bulk brown or white
  products.                           sugar, full cream powder milk and
                                      rice.

  Grenada imports most of their food  Grenada has import licenses to
  needs due to their small and        protect local and regional
  seasonal local food production, and manufacturers. Whole chickens,
  inconsistent quality of products.   eggs, fresh produce, and high proof
                                      sprits are restricted.

  Major importers are well-versed in  CARICOM trade agreement facilitates
  doing business with American        trade between Grenada and other
  companies.                          member Caribbean nations.
  ----------------------------------- -----------------------------------

# Section II. Road Map for Market Entry

**A. SUPERMARKETS**

## [Entry Strategy]{.underline}

Grenada's supermarkets import directly and also buy from other local
importers. Most importers represent certain brands and distribute them
to the different retail outlets, which explains why supermarkets do not
import all their food product needs. The best ways for a U.S. supplier
to introduce a new product are by, in order of importance:

1.  Providing product samples;

2.  Providing product literature;

3.  Meeting with importers at the Food Marketing Institute (FMI) and the
    Americas Food & Beverage trade shows; and,

4.  Meeting with importers in their offices.

##  

## [Market Structure]{.underline} 

Supermarkets import an estimated 70 to 80 percent of their food supplies
from non-CARICOM countries, primarily North America and Europe. As
previously stated, the United States is the largest supplier. The
remaining 20 to 30 percent of imports are brought from other Caribbean
countries. Few local products are sold in supermarkets and they include
rum, spices, poultry, fresh fish, and fresh produce.

Most importers receive weekly shipments of food products from their U.S.
supplier. Importers typically wholesale, distribute, and may represent
brand names.

***Product Flow for Imported Products:***

**[Company Profiles]{.underline}**

+-----------------+---------+-------+-----------------+---------------+
| **Retail Name & | **Owne  | **No. | **Locations**   | **Type of     |
| Outlet Type**   | rship** | of    |                 | Purchasing    |
|                 |         | Outl  |                 | Agent**       |
|                 |         | ets** |                 |               |
+-----------------+---------+-------+-----------------+---------------+
| #####           | Local   | 2     | The Carenage &  | Direct and    |
| ### Food Fair,  |         |       | Grand Anse, St. | Local         |
|                 |         |       | George's        | Importer      |
| ###             |         |       |                 |               |
| ##### (Supermar |         |       |                 |               |
| ket/Wholesaler) |         |       |                 |               |
+-----------------+---------+-------+-----------------+---------------+
| Food Land,      | Local   | 2     | Lagoon Road &   | Direct and    |
|                 |         |       | Market Square,  | Local         |
| (Supermar       |         |       | St. George's    | Importer      |
| ket/Wholesaler) |         |       |                 |               |
+-----------------+---------+-------+-----------------+---------------+
| Real Value      | Local   | 1     | Morne Rouge,    | Direct and    |
|                 |         |       |                 | Local         |
| (Supermarket)   |         |       | St. George's    | Importer      |
+-----------------+---------+-------+-----------------+---------------+
| Bhola R. &      | Local   | 1     | Victoria St.    | Direct and    |
| Joseph O.       |         |       | Grenville,      | Local         |
| (Supermarket)   |         |       |                 | Importer      |
|                 |         |       | St. Andrew      |               |
+-----------------+---------+-------+-----------------+---------------+
| Walker R.E. &   | Local   | 1     | Victoria St.    | Direct and    |
| Co. Ltd.        |         |       | Grenville,      | Local         |
|                 |         |       |                 | Importer      |
| (Supermarket)   |         |       | St. Andrew      |               |
+-----------------+---------+-------+-----------------+---------------+
| Ade's Dream     | Local   | 1     | Main St.        | Direct and    |
|                 |         |       | Hillsborough,   | Local         |
| (Supermarket)   |         |       | Carriacou       | Importer      |
+-----------------+---------+-------+-----------------+---------------+

The two largest supermarkets in Grenada are Food Fair and Food Land,
each with two retail stores. They also wholesale and distribute food
products to other smaller retail outlets. Both Food Fair and Food Land
offer a wide variety of products and recently included deli and bakery
sections in their outlets. Real Value, the highest-end and most modern
supermarket in Grenada, carries mostly U.S. brands. It also carries
kosher, ethnic, and organic food products. Most of Grenada's
supermarkets are located in St. George's mainly because of the large
population concentration and higher spending capital of those living in
the main city. Although every social class shops at supermarkets, the
typical customer is medium or upper class.

Bhola R. & Joseph O. and Walker R.E. & Co. Ltd. are located in Grenada's
second largest region, St. Andrew. Both supermarkets serve the middle
and lower income class customers. Residents of the island of Carriacou
buy their food products in Ade's Dream Supermarket, the main retail
store in the island.

**B. CLUB STORES, CONVENIENCE STORES AND GAS MARTS**

## [Entry Strategy]{.underline} 

The best way for a U.S. supplier to introduce a product into C.K.'s
Super Value club store is by sending product samples or by exhibiting at
the Americas Food and Beverage Show in Miami. C.K.'s regularly sends
buyers to the show and has expressed their plans to participate in it in
the future.

Convenience stores and gas marts do not import directly, therefore, the
best way for a U.S. supplier to enter the market is through a local
importer or distributor. U.S. suppliers could also send product samples
to the managers of these stores. If the managers are interested, they
will request the product from the local importer or distributor.

## [Market Structure]{.underline}

## C.K.'s club store, located near St. George's, offers Grenadian customers the option of buying food products in bulk. Convenience stores are an option for locals who live relatively far from large supermarkets. The two gas marts, although located in St. George's, serve as an option for obtaining basic staples in a fast and convenient way. 

An approximate 60 to 80 percent of C.K.'s food purchases are direct
imports mostly from the United States. They also purchase some products
from local distributors and very few from local manufacturers. Because
of their small purchasing volumes, convenience stores and gas marts
obtain their food products from local importers or distributors.

***Product Flow for Imported Products:***

## 

## 

## 

## 

## 

## 

## 

## 

## 

## Company Profiles

+---------------+-----------+--------+---------------+----------------+
| **Retail Name | **Ow      | **No.  | **Locations** | **Type of      |
| & Outlet      | nership** | of     |               | Purchasing     |
| Type**        |           | Out    |               | Agent**        |
|               |           | lets** |               |                |
+---------------+-----------+--------+---------------+----------------+
| #             | Foreign   | 2      | Grand Anse,   | Direct and     |
| ####### C.K.' |           |        |               | Local Importer |
| s Super Value | (         |        | St. George's  |                |
|               | Barbados) |        |               |                |
| (Club Store)  |           |        |               |                |
+---------------+-----------+--------+---------------+----------------+
| Essentials    | Local     | 1      | L'Ance Aux    | Local Importer |
|               |           |        | Epines,       |                |
| (Convenience  |           |        |               |                |
| Store)        |           |        | St. George's  |                |
+---------------+-----------+--------+---------------+----------------+
| D' Campus     | Local     | 1      | True Blue     | Local Importer |
| Corner        |           |        | Campus,       |                |
|               |           |        |               |                |
| (Convenience  |           |        | St. George's  |                |
| Store)        |           |        |               |                |
+---------------+-----------+--------+---------------+----------------+
| #             | Local     | 1      | Point         | Local Importer |
| ####### Conve |           |        | Salines,      |                |
| nience Corner |           |        |               |                |
|               |           |        | St. George's  |                |
| (Convenience  |           |        |               |                |
| Store)        |           |        |               |                |
+---------------+-----------+--------+---------------+----------------+
| Shell         | Local     | 1      | Grand Mal     | Local Importer |
|               |           |        | Bay,          |                |
| (Gas Mart)    | (F        |        |               |                |
|               | ranchise) |        | St. George's  |                |
+---------------+-----------+--------+---------------+----------------+
| Texaco Star   | Local     | 1      | Grand Anse,   | Local Importer |
| Mart          |           |        |               |                |
|               | (F        |        | St. George's  |                |
| (Gas Mart)    | ranchise) |        |               |                |
+---------------+-----------+--------+---------------+----------------+

C.K.'s Super Value is a bulk store that operates both a club store and a
wholesale outlet. Poultry products and sodas are the two most commonly
purchased items from C.K. Jams and liquors are the main locally
manufactured products sold here.

Convenience stores sell mainly pasta, fish, meat, beer, canned goods,
and soft drinks. They sell both to locals and tourists. Essential Mini
Market for example, located near a yacht port, sells mainly to tourists.
Others like D' Campus Corner or Convenience Corner target more the local
market. Both Shell and Texaco gas marts are relatively new to the
island. They sell a small variety of foodstuffs including: snacks,
canned goods, soft drinks, bread, and milk.

**C. TRADITIONAL MARKETS AND MOM & POP SHOPS**

## [Entry Strategy]{.underline}

Since mom & pop shops do not import agricultural products directly from
the U.S. supplier, the best way to introduce a product into this market
is through a local importer or distributor.

**[Market Structure]{.underline}**

Importers supply mom and pop shops with their food products. Food Fair's
wholesale department, for example, sells to approximately 300 mom & pop
shops. If certain food products are not available through an importer,
mom & pop shops will buy them directly from a supermarket.

***Product Flow for Imported Products:***

**[Sub-Sector Profile]{.underline}**

Approximately 3,000 mom and pop shops are currently in business. They
are probably the most popular and convenient way for Grenadians to get
their food supplies, especially outside of St. George's. Just about
every other rural house sells dry goods, non-alcoholic beverages, and
fresh produce. Some others even invest in freezers in order to have a
small selection of meats and seafood.

Several traditional markets, which are subsidized by the government,
sell seasonal local fruits, vegetables and spices. They rarely, if ever,
import or sell imported food products. The main traditional market,
located in St. George's, is called Market Square.

# Section III. Competition

Grenada's principal trading partners are the United States, the United
Kingdom, Canada, Brazil and other Caribbean countries such as Trinidad &
Tobago and Barbados. Although the United States is still the leading
supplier of beef, poultry, and pork, Grenada is increasingly importing
pork and poultry products from Brazil due to low prices and perceived
quality to the U.S. counterparts.

The following products and countries compete with U.S. products:

-   **Beef:** Brazil and Argentina.

-   **Poultry:** other Caribbean countries and Brazil.

-   **Pork:** other Caribbean countries, Canada, and Brazil.

-   **Fresh Produce:** other Caribbean countries.

-   **Seafood:** other Caribbean countries.

-   **Dry Goods:** other Caribbean countries, U.K., Canada, Denmark, and
    Holland.

-   **Dairy Products:** U.K., Canada, Holland, Denmark, and New Zealand.

-   **Alcoholic Beverages:** other Caribbean countries, U.K., Chile, and
    Argentina.

-   **Non-Alcoholic Beverages:** other Caribbean countries and U.K.

-   **Specialty Foods:** U.K. and Canada.

Despite this competition, U.S. products dominate the market in many
categories. In 2001 the United States had more than 50 percent market
share for fresh fruits, poultry products, red meats
(fresh/chilled/frozen), processed fruits and vegetables, and fruit and
vegetable juices.

+-----------------------+---------+------------------------+---------+
| **Top 10 U.S. Market  |         |                        |         |
| Share of Food         |         |                        |         |
| Products Exported to  |         |                        |         |
| Grenada**             |         |                        |         |
|                       |         |                        |         |
| **(Calendar Year      |         |                        |         |
| 2001)**               |         |                        |         |
+-----------------------+---------+------------------------+---------+
| ***Products***        | **      | ***Products***         | **      |
|                       | *Market |                        | *Market |
|                       | S       |                        | S       |
|                       | hare*** |                        | hare*** |
+-----------------------+---------+------------------------+---------+
| Fresh Fruits          | 96%     | Snack Foods (Excl.     | 41%     |
|                       |         | Nuts)                  |         |
+-----------------------+---------+------------------------+---------+
| Poultry Products      | 79%     | Mixed Container Loads  | 37%     |
+-----------------------+---------+------------------------+---------+
| Red Meats,            | 75%     | Breakfast Cereals &    | 32%     |
| Fresh/Chilled/Frozen  |         | Pancake Mix            |         |
+-----------------------+---------+------------------------+---------+
| Processed Fruits &    | 62%     | Cheese                 | 31%     |
| Vegetables            |         |                        |         |
+-----------------------+---------+------------------------+---------+
| Fruit & Vegetable     | 53%     | Red Meats,             | 29%     |
| Juices                |         | Prepared/Preserved     |         |
+-----------------------+---------+------------------------+---------+

# 

# 

# Section IV. Best Prospects

**A. Products Present in the Market Which Have Good Sales Potential**

Market opportunities exist for a wide array of retail products:

-   Poultry products

-   Beef

-   Pork

-   Fruits and vegetables- canned and frozen

-   Dairy products

-   Wine

**B. Products Not Present in Significant Quantities but Which Have Good
Sales Potential**

Grenadians are more concerned with price than with brand names. They are
also increasingly demanding healthy foods. The following food products
have good sales potential:

-   Private label products

-   Organic products

-   "Healthy products"

**C. Products Not Present Because They Face Significant Barriers**

Grenada's government protects local agricultural production by imposing
import licenses to certain food products. The following products are
restricted:

-   Whole chickens

-   Eggs

-   High proof spirits

-   Locally grown types of fresh fruits and vegetables

######## Section V. Contact Information

**A. For more information on Grenada and a list of importers for your
U.S. product, please contact:**

**Caribbean Basin Agricultural Trade Office**

**Foreign Agricultural Service**

**United States Department of Agriculture**

909 SE 1^st^ Ave., Suite 720

Miami, FL 33131

Phone: (305) 536-5300

Fax: (305) 536-7577

E-mail: <cbato@cbato.net>

Margie Bauer, Director

E-mail: <cbato@cbato.net>

Omar González, Deputy Director

E-mail: <omar@cbato.net>

Graciella Juelle, Administrative Assistant

E-mail: <grace@cbato.net>

Angel F. González Trápaga, Agricultural Marketing Specialist

E-mail: <angel@cbato.net>

Please visit our website for more reports and information on Grenada and
other Caribbean Islands:
[http://www.cbato.fas.usda.gov](http://www.cbato.fas.usda.gov/), click
on "U.S. Exporters"

**B. Other Sources of Information on Grenada:**

**Ministry for Agriculture, Lands, Forestry & Fisheries**

Ministerial Complex

Botanical Gardens, Tanteen

St. George's, Grenada, W.I.

Tel.: 473-440-2722

Fax: 473-440-7950

E-mail: <grenfish@caribsurf.com>

**Grenada Board of Tourism**

Burns Point

P.O. Box 293

St. George's, Grenada, W.I.

Tel.: 473-440-2279/2001

Fax: 473-440-6637

E-mail: <gbt@caribsurf.com>

Web site: [http://www.grenada.org](http://www.grenada.org/)

**Grenada's USA Tourism Office**

800 Second Avenue, Suite 400 K

New York, N.Y. 10017

Tel.: 1-800-927-9554 or 212-687-9554

Fax: 212-573-9731

E-mail: <gbt@caribsurf.com>

**Grenada Hotel & Tourism Association**

Le Marquis Complex, Morne Rouge

St. George's, Grenada, W.I.

Tel.: 473-444-1353/2644

Fax: 473-444-4847

E-mail: <grenhota@caribsurf.com>

Web site:
[http://www.grenadahotelsinfo.com](http://www.grenadahotelsinfo.com/)

**Embassy of the United States in Grenada**

Ms. Nadia Tongour

P. O. Box 54

St. George's, Grenada, W.I.

Tel.: 473-444-1173/1176

E-mail: <usemb_gd@caribsurf.com>

**Grenada Bureau of Standards**

Ms. Lena Downes

P.O. Box 2036

Lagoon Road

St. George's, Grenada, W.I.

Tel: 473-440-5886/6783

Fax: 473-440-5554

E-mail: <gdbs@caribsurf.com>

**Grenada Chamber of Industry & Commerce**

P. O. Box 129

St. George's, Grenada, W.I.

Tel.: 473-440-2937

Fax: 473-440-6627

E-mail: <gcic@caribsurf.com>

**Grenada Customs Department**

The Carenage

St. George's, Grenada, W.I.

Tel.: 473-440-3588/2239/2240

Fax: 473-440-5038

E-mail: <gdcustoms@caribsurf.com>

Web site: <http://www.see-caribbean.com/customs/gd.html>

**Embassy of Grenada in U.S.A.**

1701 New Hampshire Avenue, NW

Washington, D.C. 20009

Tel.: 202-265-2561

Fax: 202-265-2468

E-mail <grenada@oas.org>