Voluntary Report - public distribution

**Date:** 1/20/2004

**GAIN Report Number:** C14002

C14002

**Caribbean Basin**

**HRI Food Service Sector**

**St. Vincent & the Grenadines**

**2004**

**Approved by:**

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

Caribbean Basin Agricultural Trade Office

**Prepared by:**

Angel F. González-Trápaga,

Agricultural Marketing Specialist

**Report Highlights:**

St. Vincent & the Grenadines (S.V.G.), a multi-island independent nation
in the Windward Islands, has a continuous growing economy mainly sourced
by tourism. The islands received nearly 250,000 visitors in 2002 of
which more than 26 percent were from the United States. The nation\'s
Hotel, Restaurant and Institutional (HRI) sector has considerable
potential for development over the next years. This report will aid U.S.
exporters in profitably entering S.V.G. HRI food service sector.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Miami \[C11\]

\[C1\]

Section I. Market Summary

Country Snapshot

St. Vincent & the Grenadines (S.V.G.), located at the southern end of
the Caribbean chain, has a total area of 150 square miles and is
composed of 32 islands and cays. The nation's total population is around
117,000 (2003 est.). St. Vincent is the largest island with nearly 90
percent of the country's land area and population. Kingstown, located in
St. Vincent, is the capital, focal point of the commercial activity,
seat of the Government, and transportation hub for the Grenadines.
Bequia, Canouan, Mayreau (private), Mustique (private), the Tobago Cays
(unpopulated), Palm Island (private), Petit St. Vincent (private), Union
Island, and others are part of the Grenadines' chain. Unlike St.
Vincent, the Grenadines are lightly populated and barely developed.

The Grenadines are easily accessed from St. Vincent and one another by
inter-island flights, small boats, and regular ferry services. The 6
airports in S.V.G. are St. Vincent, Canouan, Mustique, Bequia, Union
Island, and Palm Island. These airports are not up to U.S. airport
standards, which bars U.S. passenger flights and negatively affect the
country's tourism and economy. American Eagle lands only in Canouan and
Ameri-Jet, a U.S. cargo service, makes 2 weekly stops in St. Vincent.

S.V.G. obtained its independence from the United Kingdom on October 1979
and now is a parliamentary democracy. It is part of the British
Commonwealth and the Governor General is appointed by and represents the
Crown. The nation is a member of the Organization of Eastern Caribbean
States (OECS) and the Caribbean Community and Common Market (CARICOM).
These trading blocks or trade agreements ease trade between member
Caribbean nations by offering duty-free access, facilitating bilateral
and multilateral co-operation, and allowing goods, services, people and
capital to move throughout the Caribbean nation members without tariffs
and restrictions.

S.V.G. economy is based on the service sector, which is led by its
tourism industry. Recent economic growth has been stimulated by an
improvement in tourism and strong activity in construction. Tourism has
considerable potential for development over the next decade.
Agriculture, dominated by banana production, is also an important
sector. S.V.G. produces bananas, coconuts, mangoes, pineapples,
pumpkins, yams, sweet potatoes, carrots, and ginger as well as other
uncommon fruits and vegetables. Small farmers also produce cattle,
sheep, pigs, goats, poultry, and seafood. Due to periodic natural
disasters such as hurricanes and volcanoes, S.V.G. agricultural sector
has been unstable in recent years.

Market Overview

S.V.G. market for food and beverage products was worth \$29 million in
2002. The United States is the islands' main supplier of food and
beverage products accounting for 35 percent of imports. This lead is
attributed to proximity, quality, and competitive pricing of U.S. high
value products. The second largest trading partner is Trinidad & Tobago
mainly because of the proximity to S.V.G. and trade agreements. The
United Kingdom takes the third slot due to the nation's strong British
heritage. Other trading partners include Barbados, Canada, Jamaica,
Ireland, Denmark, the Netherlands, and St. Lucia.

The S.V.G. tourism industry is not fully exploited and is quickly
becoming more and more important in the local economy growth
projections. The nation's total food and beverage market designated for
the HRI food service sector is estimated to be over \$3 million dollars,
which accounts for approximately 30 to 40 percent of the market. The
remaining 60 to 70 percent is channeled by the retail sector.

The United States is the only country that has consistently increased
the amount of food exports to S.V.G. since 1997. This increasing trend
is due to the U.S. ability to adapt to the island's food needs. Growing
consumer awareness of U.S. brand-name products, brought about in large
part by cable TV, has also been a factor in this growth. Other main
trading partners have experienced a gradual decrease over the last
years. Please note that information is not available for 2001.

![](media/image2.wmf) Source: FAS' Global Agricultural Trade System
using data from the United Nations Statistical Office

Tourism and HRI

![](media/image3.wmf)Each island within S.V.G. differs from one another
in the mix of local residents and tourists. St Vincent is mostly
populated by local residents and the Grenadines are more of a tourist
destination. Major differences also exist within the Grenadines.
Mustique and Palm Island cater to the rich and famous and others like
Bequia and Union Island attract an international crew of beachcombers.
Just two of the islands, St. Vincent and Bequia, have any real selection
of hotels. Palm Island, Petit St. Vincent, Young Island, and Mayreau are
single-resort islands. Mustique specializes in cottage & villa
accommodations and other dots on the map lack distinctive lodging. Less
than a quarter of the islands are inhabited (part of their charm for
yachtsmen), while some welcome no-frills sailors and divers, and others
have been transformed into tiny oasis of barefoot luxury. S.V.G. is
world renowned for fantastic sailing and the Grenadines are a Mecca for
yachtees from around the world.

In fact, S.V.G. receives visitors from almost

every corner of the world. Overall tourists

slightly decreased in 2002 but visitor expenditures increased by 1.3
percent. The United States is the main source of tourists arriving in
S.V.G. and it is obvious to say that American tourists prefer U.S. food
products. Other Caribbean nations including Barbados and Trinidad &
Tobago are also important sources and these show tremendous growth
potential in the years to come. Both British and Canadian visitors
recorded significant increases and are expected to keep this rising
trend. Source: S.V.G. Ministry of Tourism and Culture

rising trend.

Visitor arrivals in S.V.G. are not evenly distributed among the islands.
St. Vincent, Union Island, and Bequia are the three largest ports of
entry for tourists. St. Vincent tourists mainly arrive by air while the
other two islands receive a large amount of foreigners by sea. Mustique
and Canouan receive a smaller crowd of visitors who arrive mostly by
air. It is important to point out the differences between these two
types of visitors because they often have distinct food needs and buying
patterns. For example, it is very likely that air arrivals will eat at
their hotel while sea arrivals may eat either on a cruise ship or on
their own yacht.

Room capacity in S.V.G. totals 1,762, which is divided among 152
properties. Hotels & resorts constitute 54.9 percent of the nation's
accommodations followed by cottages & villas with 20.3 percent. While
hotels & resorts are the main source of housing tourists in most of
S.V.G., cottages & villas are particularly important in Bequia and
Mustique. Although tourists staying in cottages & villas may visit local
restaurants, it is more probable that they cook their own meals.

More than 80 restaurants are in business in S.V.G. The overwhelming
majority of them are located in hotels or other type of accommodations
targeting mostly tourists. The few that are independently owned tend to
serve the local population as well as tourists. During the tourist
season (mid December to mid May) and during the nations major
celebrations (Easter Regatta in April and Carnival in June) restaurants
are in vogue. During the off-season some of them close during weekdays.

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

  The S.V.G. tourism industry has     Importers and hotels usually
  huge growth potential.              purchase food products in small
                                      volumes.

  U.S. tourists represent 26 percent  St. Vincent Marketing Corp. has a
  of total tourists visiting S.V.G.   monopoly on sugar imports.

  The United States leads the food    CARICOM trade agreement offers
  and beverage market due to the      duty-free access to S.V.G. food
  proximity to S.V.G. and ease of     market for other Caribbean member
  shipment.                           nations.

  S.V.G. has been importing most of   Import licenses protect local
  its food needs due to a declining   production as well as products from
  agricultural sector.                CARICOM countries such as selected
                                      fruits and vegetables.

  Product labeling standards are      Citrus is not allowed from Florida
  voluntary in S.V.G.                 due to the Citrus Canker disease.
  ----------------------------------- -----------------------------------

Section II. Road Map for Market Entry

A.  Entry Strategy

S.V.G. HRI sector obtains its food and beverages from local importers,
retailers, manufacturers and producers. Because of small volumes, the
best way for the HRI sector to obtain imported food products is by a
local importer, which usually wholesales and also distributes. It is
common for local importers to run out of stock on certain food products.
In these instances, the HRI sector obtains their products directly from
supermarkets and grocery stores.

To successfully enter S.V.G. HRI sector, U.S. exporters should first
contact the local importers who distribute HRI food products. Exporters
should be prepared to provide them with product literature and samples.
If the product suits their needs, importers will want to meet the U.S.
supplier on the island to close the deal. U.S. exporters may also try to
contact hotel management and/or restaurant owners or chefs. After
receiving product literature and samples, they will likely ask the
supplier to work thru their food importer or distributor.

B.  Market Structure

Local importers, who import virtually 100 percent of the sector's food
needs, rule food distribution to S.V.G. HRI sector. Although many hotels
and restaurants are willing to import directly, none of them can do so
as a result of their small purchasing volumes. When products are not
available through importers, the HRI sector relies upon supermarkets and
grocery stores to obtain their food supplies.

Hotels and restaurants also carry a fair selection of local food
products like fresh produce, meats, poultry and seafood. These are
bought on a daily basis in traditional markets like Market Square in
Kingstown.

*Product Flow for Imported Products:*

####### 

C. Sub-Sector Profiles

1.  Hotels and Resorts

+-----------------------+---------------+-------+----------------------+
| ######### Name        | #####         | **Ro  | ######               |
|                       | #### Location | oms** | ### Purchasing Agent |
+-----------------------+---------------+-------+----------------------+
| Sunset Shores Beach   | St. Vincent   | 32    | ##                   |
| Hotel                 |               |       | #### Local Importer  |
+-----------------------+---------------+-------+----------------------+
| New Montrose Hotel    | St. Vincent   | 25    | #                    |
|                       |               |       | ##### Local Importer |
+-----------------------+---------------+-------+----------------------+
| Young Island Resort   | Young Island  | 30    | Local Importer       |
+-----------------------+---------------+-------+----------------------+
| Plantation House      | Bequia        | 27    | Local Importer       |
+-----------------------+---------------+-------+----------------------+
| Friendship Bay Hotel  | Bequia        | 28    | Local Importer       |
+-----------------------+---------------+-------+----------------------+
| Cotton House Hotel    | Mustique      | 20    | Local Importer       |
+-----------------------+---------------+-------+----------------------+
| Canouan Beach Hotel   | Canouan       | 33    | Local Importer       |
+-----------------------+---------------+-------+----------------------+
| Carenage Bay Beach    | Canouan       | 178   | N/A                  |
+-----------------------+---------------+-------+----------------------+
| Tamarind Beach Hotel  | Canouan       | 45    | Local Importer       |
+-----------------------+---------------+-------+----------------------+
| Petit St. Vincent     | Petit St.     | 22    | Local Importer       |
| Resort                | Vincent       |       |                      |
+-----------------------+---------------+-------+----------------------+
| Palm Island Resort    | Palm Island   | 24    | Local Importer       |
+-----------------------+---------------+-------+----------------------+
| Clifton Beach Hotel   | Union Island  | 30    | Local Importer       |
+-----------------------+---------------+-------+----------------------+

The above list constitutes the 12 largest hotels in S.V.G., each with at
least one main restaurant. The majority of hotels in the nation have
less than 20 rooms and about half of them have restaurants on their
premises. Hotel restaurants are generally open to non-resident guests.
Both local and international cuisines are served in most hotels.

Some hotels offer different type of meal plans that are included with
the room rate. Some of the few all-inclusive hotels include Petit
Bayhaut (not listed), Palm Island Resort, and Canouan Beach Hotel. The
Modified American Plan (MAP) that includes breakfast and dinner is
offered, for example, at Young Island Resort and the Cotton House (the
Caribbean's most exclusive hotel). Others like Friendship Bay Resort and
Plantation house only offer breakfast. The Carenage Bay Beach, the
nation's largest resort, is currently closed for renovation but it is
expected to re-open by summer 2004.

St. Vincent's hotels target business people whose visits are work
related. In contrast, hotels in the Grenadines are more oriented toward
tourists. This explains why hotels in the Grenadines have more charm
than those in the nation's main city.

2.  Restaurants

+---------------+----------------+------------------+----------------+
| **Name**      | **Location**   | **Type of        | ######### Pu   |
|               |                | Cuisine**        | rchasing Agent |
+---------------+----------------+------------------+----------------+
| ######## Lim  | St. Vincent    | West             | Local Importer |
| e Restaurant  |                | Caribbean/Indian |                |
|               |                |                  |                |
| #             |                |                  |                |
| ####### & Pub |                |                  |                |
+---------------+----------------+------------------+----------------+
| Basil's Bar & | St. Vincent &  | Seafo            | Local Importer |
| Restaurant    | Mustique       | od/International |                |
+---------------+----------------+------------------+----------------+
| Ocean Allegro | St. Vincent    | Seafo            | Local Importer |
|               |                | od/International |                |
| Rest. & Bar   |                |                  |                |
+---------------+----------------+------------------+----------------+
| Vee Jay's     | St. Vincent    | West             | Local Importer |
| Rooftop Rest. |                | Indi             |                |
| Ltd.          |                | an/International |                |
+---------------+----------------+------------------+----------------+
| Bounty        | St. Vincent    | American/West    | Local Importer |
|               |                | Indian           |                |
+---------------+----------------+------------------+----------------+
| French        | St. Vincent    | French/Seafood   | Local Importer |
| Restaurant    |                |                  |                |
+---------------+----------------+------------------+----------------+
| Juliette's    | St. Vincent    | West Indian      | Local Importer |
| Restaurant    |                |                  |                |
+---------------+----------------+------------------+----------------+
| Kentucky      | Downtown and   | Fast Food        | U.S. Agent     |
| Fried Chicken | Uptown, St.    |                  |                |
|               | Vincent        |                  |                |
+---------------+----------------+------------------+----------------+
| L'Auberge de  | Bequia         | French           | Local Importer |
| Grenadines    |                |                  |                |
+---------------+----------------+------------------+----------------+
| Coco's Place  | Bequia         | Seafood          | Local Importer |
+---------------+----------------+------------------+----------------+
| Le Petit      | Bequia         | Fren             | Local Importer |
| Jardin        |                | ch/International |                |
+---------------+----------------+------------------+----------------+
| Mac's         | Bequia         | Italian          | Local Importer |
| Pizzeria      |                |                  |                |
+---------------+----------------+------------------+----------------+
| Dawn's Creole | Bequia         | West             | Local Importer |
| Rest. & Beach |                | Indi             |                |
| Cafe          |                | an/International |                |
+---------------+----------------+------------------+----------------+
| De Reef       | Bequia         | C                | Local Importer |
|               |                | aribbean/Seafood |                |
+---------------+----------------+------------------+----------------+

S.V.G. does not have a large selection of independent restaurants; most
of them are located in hotels or other type of accommodations. The
previous table lists those that are outside hotel premises. Popular
cuisines in the nation are: French, international, seafood, and
West-Indian. Kentucky Fried Chicken, with two convenient locations, is
the only fast-food chain on the island.

Most restaurants do not import food products directly. They buy all of
their food needs from local wholesalers. A small percentage of products,
usually less than 15%, are bought from local manufacturers or producers.
Local products usually include fresh juices, fruits, vegetables,
seafood, and liquor.

3.  Institutional

Institutions in S.V.G. play a minimal role in food imports. The nation
has various hospitals, two prisons, and several schools which all buy
their food products mainly from local manufacturers and producers. A
much lesser amount of products are acquired from local importers and are
usually low priced items.

**Section III. Competition**

Competition for food and beverage products is led by the United States
who supplies most of the nation's total needs. The high quality and
competitive prices of U.S. food products, along with the United States
proximity to S.V.G., are the winning factors of this advantageous
position. The biggest competitors are other Caribbean countries such as
Trinidad & Tobago and Barbados, and the United Kingdom. The first two
are because of logistics reasons and the last one because of the
nation's strong relations with the U.K.

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

-   **Beef:** U.K., Canada and local.

-   **Poultry:** U.K. and other Caribbean countries.

-   **Pork:** U.K., local and other Caribbean countries.

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

-   **Seafood:** U.K., Canada, Netherlands, and other Caribbean
    countries.

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

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

-   **Alcoholic Beverages:** U.K., France, South America, local, and
    other Caribbean countries.

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

-   **Specialty Foods:** U.K., Canada, France, and Germany.

-   **Bakery Ingredients:** other Caribbean countries.

The United States dominates the market in the categories shown in the
following table. U.S. food products comprise sixty to eighty percent of
the market share for fresh fruits, pet foods, fresh/chilled/frozen red
meats, processed fruits and vegetables, and poultry meats.

  --------------------------- ---------- --------------------------- ----------
  **Top 10 U.S. Food Products                                        
  in S.V.G. Import Market for                                        
  2002**                                                             

  **U.S. High Value Food      **Market   **U.S. High Value Food      **Market
  Product**                   Share**    Product**                   Share**

  Fresh Fruits                88%        Red Meats                   39%
                                         (Prepared/Preserved)        

  Pet Foods                   86%        Mixed Container Loads       32%

  Red Meats                   78%        Breakfast Cereals & Pancake 31%
  (Fresh/Chilled/Frozen)                 Mixes                       

  Processed Fruits &          64%        Snack Foods (Excl. Nuts)    28%
  Vegetables                                                         

  Poultry Meats               63%        Fruit & Vegetable Juices    20%
  --------------------------- ---------- --------------------------- ----------

###### Source: UN Trade Data

**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:

-   "Healthy products"

-   Snack foods

-   Convenience or value added goods

-   Dairy products

-   Beef

-   Poultry products

-   Pulses

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

-   Diabetic products

-   Energy drinks

-   Organic products

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

Products that are not allowed into S.V.G. include:

-   Citrus from Florida (Citrus Canker)

Others that are heavily restricted by licenses or duties include:

-   Locally grown types of fruits and vegetables

-   Rice

-   Water

-   Bakery ingredients

**Section V. Import Regulations**

Customs offices are located in every populated island in the nation.
Officers require the following documentation for the entry of food
imports:

-   Import declaration

-   Commercial invoice

-   Bill of lading or airway bill

-   Packaging list

-   Certificate of origin

-   Certificate of value or bill of exchange

-   Insurance certificate

Goods usually take between one to two weeks to clear customs. S.V.G.
custom offices also offer a quick customs clearance process for a fee
charged to importers.

Upon entry, food products are inspected by the Department of Health.
Meat imports have to be inspected by veterinarians from the Ministry of
Agriculture. In order to import fresh produce to S.V.G., U.S. exporters
are required to have a phyto-sanitary permit. In the case of seafood, an
approval of the Fisheries Department is required.

Product labeling standards in S.V.G. are voluntary, although they are in
the process of making them compulsory. They do not enforce the standards
because local products do not yet meet them. S.V.G. Bureau of Standards
recommends that the following standards should be included in the
products label:

-   Name of product

-   English language

-   List of ingredients, including food additives

-   Net contents and drained weight of the food (when applicable)

-   Name and address of the manufacturer packer, distributor, importer,
    or vendor

-   Country of origin

-   Batch or lot identification

-   Date of minimum durability

-   Storage instructions

-   Instructions for use

-   Grade designations

Imports of goods that compete with agricultural exports of CARICOM
countries are subject to licenses. S.V.G. has a reserve list of about 80
items subject to licensing. Goods that compete with locally made
products are prohibited in some cases. A minimum of forty-eight hours is
required for processing an application for license to import food
products into the nation. A charge of \$5 EC (approximately \$2 US) in
stamps is required to apply.

St. Vincent Marketing Corporation is a statutory body that acts on
behalf on the government as importer of commodities and exporter of
fresh produce and seafood. It also maintains the competitiveness of
selected food products by buying them directly from the
producer/manufacturer and selling them to consumers at reasonable
prices. In addition, the Corporation has a monopoly on sugar imports.
Furthermore, St. Vincent legislation provides government authority to
administer trade in any commodity by simple administrative decision.

**Section VI. Contact Information**

**A. For more information on St. Vincent & the Grenadines 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, Marketing 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 St. Vincent
& the Grenadines 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 St. Vincent & the Grenadines:**

**St. Vincent Marketing Corporation**

Mr. Sonny A. Williams, CEO

P.O. Box 872

Upper Bay Street

Kingstown, St. Vincent

Tel: 784-457-1603

Fax: 784-456-2673

Email: <svmc@caribsurf.com>

# Ministry of Agriculture, Land & Fishery

Mr. Philmore Isaacs, Chief Agricultural Officer

Richmont Hill

Kingstown, St. Vincent

Tel: 784-456-1410

Fax: 784-457-1688

Email: <agrimin@caribsurf.com>

# Ministry of Foreign Affairs, Commerce and Trade 

Mr. Nathaniel Williams, Minister

Kingstown, St. Vincent

Tel: 784-456-2060

Fax: 784-456-2610

Email: <mtrade@caribsurf.com>

# St. Vincent & the Grenadines Customs Department

Ms. Kenlyn Jones

Customs House, Upper Bay Street

Kingstown, St. Vincent

Tel: 784-456-1083

Fax: 784-458-4561

Email: <customs@caribsurf.com>

# St. Vincent & the Grenadines Bureau of Standards

Mr. Ezra D. Ledger, Director

P. O. Box 1506

Kingstown, St. Vincent

Tel: 784-457-8092

Fax: 784-457-8175

Email: <svgbs@caribsurf.com>

# St. Vincent & the Grenadines Ministry of Tourism and Culture

Hon. Rene Baptiste, Minister

Bay Street

Kingstown, St. Vincent

Tel: 784-457-1502

Fax: 784-451-2425

Email: <tourism@caribsurf.com>

Website: [www.svgtourism.com](http://www.svgtourism.com/)

**St. Vincent & the Grenadines Tourist Office in the United States**

801 2^nd^ Avenue, 21^st^ Floor

New York, N.Y. 10017

Tel: 212-687-4981, 800-729-1726

Fax: 212-949-5946

Email: <svgtony@aol.com>

# St. Vincent & the Grenadines Hotel & Tourism Association

Ms. Vida Bernard

P.O. Box 834

E.T. Joshua Int'l Airport

Kingstown, St. Vincent

Tel: 784-458-4379

Fax: 784-456-4456

Email: <svghotels@caribsurf.com>

Website: [www.svghotels.com](http://www.svghotels.com/)

#