Voluntary Report - public distribution

**Date:** 1/15/2004

**GAIN Report Number:** C14001

C14001

**Caribbean Basin**

**Retail Food 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. The nation
imported \$29 million worth of food and beverage products from around
the world in 2002. The United States is the leading supplier with 35
percent of the market. Good opportunities for U.S. high value products
are available in S.V.G. This report is intended to aid U.S. exporters in
successfully entering S.V.G. retail food market.

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 is now 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. retail market is composed of over 30 supermarkets, grocery
stores, convenience stores, and gas marts. Only six are large
supermarkets and all six are located in St. Vincent. They import most of
their food products from overseas suppliers and also buy some food
products from other local importers or distributors. About 12 grocery
stores offer a smaller selection of food products. In addition, there
are seven convenience stores. Both grocery stores and convenience stores
occasionally import but they buy most of their food supplies from local
distributors. Six gas marts also compete for convenience in the S.V.G.
retail food market. They rarely, if ever, import food products. Roughly
400 mom & pop shops are currently in business as well. Local wholesalers
supply their food needs.

The nation's total food and beverages imports destined to the retail
sector are estimated to be \$7 million dollars, which accounts for
approximately 60 to 70 percent of the market. The remaining 30 to 40
percent is channeled to the food service sector. Retail stores in St.
Vincent target the local population. In contrast, those in the
Grenadines are more geared toward tourists. Every inhabited island in
the nation has at least one reasonably well-stocked retail store for the
purchase of foodstuffs.

The United States is the nation's biggest trading partner in terms of
food and beverage products. The leading 35 percent market share in 2002
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 proximity to S.V.G. and trade agreements. The
United Kingdom takes the third slot due to the nation strong British
heritage. Other trading partners include Barbados, Canada, Jamaica,
Ireland, Denmark, the Netherlands, and St. Lucia.

![](media/image2.wmf)

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

The United States is the only country that has consistently increased
the amount of 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, offering high
quality food products at relatively low prices. Other main trading
partners have experienced a gradual decrease over the last years. Please
note that information is not available for 2001.

![](media/image3.wmf) Source: FAS' Global Agricultural Trade System
using data from the United Nations Statistical Office

### Market Trends

-   Low fat and healthy foods are becoming more and more popular in
    S.V.G. due to the growing health conscious population.

-   Locals are increasingly requesting food products targeted to
    diabetics due to high rates of the disease in the island.

-   Demand for convenience foods and other value added foods is
    expanding as the country's economy continues to grow.

-   The market for snack foods and energy drinks is on the rise in part
    because of a large number of students from St. George's School of
    Medicine (Grenada) who spend 4 months in St. Vincent on an exchange
    program.

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

  Locals consider U.S. food products  Importers and retailers usually
  high quality.                       purchase food products in small
                                      volumes.

  S.V.G. has been importing most of   St. Vincent Marketing Corp. has a
  its food needs due to a declining   monopoly on sugar imports.
  agricultural sector.                

  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.

  Local consumers are knowledgeable   Import licenses protect local
  about U.S. brand-name products      production as well as products from
  mainly because of cable TV.         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. SUPERMARKETS AND GROCERY STORES

**[Entry Strategy]{.underline}**

The best way for a U.S. supplier to introduce a new product into the
S.V.G. retail market is first by sending product literature and samples.
If interested, retail buyers then prefer to meet with the U.S. supplier,
or, in some cases, would like for the U.S. supplier to meet with their
local importer/distributor. Some importers ask U.S. suppliers to assist
them with marketing material and moreover with a promotional campaign to
help move products off the shelves.

Importers also attend U.S. trade shows to meet U.S. companies interested
in the S.V.G. food market. The Americas Food & Beverage Show in Miami
and the privately run U.S. Food Service, Inc. show are among the most
popular.

### Market Structure

Supermarkets in S.V.G. import between 60 to 80 percent of their food
products directly for their own stores. They also represent, wholesale
and distribute major brands to other retail outlets and to the food
service industry. Grocery stores import between 20 to 40 percent of
their food needs. Other importers and distributors supply them with the
remaining 60 to 80 percent. Locally grown/manufactured foods sold in the
S.V.G. retail market are few and include produce, meat and poultry, and
bakery products.

*Product Flow for Imported Products:*

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

+--------------------+----------+-------+----------+------------------+
| **Retail Name and  | ###      | **No. | **Lo     | **Purchasing     |
| Type**             | ###### O | of**  | cation** | Agent**          |
|                    | wnership |       |          |                  |
|                    |          | *     |          |                  |
|                    |          | *Outl |          |                  |
|                    |          | ets** |          |                  |
+--------------------+----------+-------+----------+------------------+
| C. K. Greaves &    | Local    | 2     | St.      | Local & Direct   |
| Co., Ltd.,         |          |       | Vincent  | Importer         |
|                    |          |       |          |                  |
| Supermarket        |          |       |          |                  |
+--------------------+----------+-------+----------+------------------+
| Bonadies           | Local    | 2     | St.      | Local & Direct   |
| Supermarket,       |          |       | Vincent  | Importer         |
|                    |          |       |          |                  |
| Supermarket        |          |       |          |                  |
+--------------------+----------+-------+----------+------------------+
| P. H. Viera & Co.  | Local    | 1     | St.      | Local & Direct   |
| Ltd., Supermarket  |          |       | Vincent  | Importer         |
+--------------------+----------+-------+----------+------------------+
| St. Vincent        | Local    | 1     | St.      | Local & Direct   |
| Marketing Corp.,   |          |       | Vincent  | Importer         |
|                    |          |       |          |                  |
| Supermarket        |          |       |          |                  |
+--------------------+----------+-------+----------+------------------+
| Delcos             | Local    | 1     | St.      | Local & Direct   |
| Supermarket,       |          |       | Vincent  | Importer         |
|                    |          |       |          |                  |
| Grocery Store      |          |       |          |                  |
+--------------------+----------+-------+----------+------------------+
| Randys             | Local    | 1     | St.      | Local & Direct   |
| Supermarket,       |          |       | Vincent  | Importer         |
|                    |          |       |          |                  |
| Grocery Store      |          |       |          |                  |
+--------------------+----------+-------+----------+------------------+
| Gourmet Foods,     | Local    | 1     | St.      | Local & Direct   |
|                    |          |       | Vincent  | Importer         |
| Grocery Store      |          |       |          |                  |
+--------------------+----------+-------+----------+------------------+
| Knights Trading &  | Local    | 2     | Bequia   | Local & Direct   |
|                    |          |       |          | Importer         |
| Supermarket,       |          |       |          |                  |
| Grocery Store      |          |       |          |                  |
+--------------------+----------+-------+----------+------------------+
| Euro Shopper,      | Local    | 1     | Bequia   | Local & Direct   |
|                    |          |       |          | Importer         |
| Grocery Store      |          |       |          |                  |
+--------------------+----------+-------+----------+------------------+
| Grand Union        | Local    | 1     | Union    | Local & Direct   |
| Supermarket,       |          |       | Island   | Importer         |
|                    |          |       |          |                  |
| Grocery Store      |          |       |          |                  |
+--------------------+----------+-------+----------+------------------+
| Lambi's            | Local    | 1     | Union    | Local & Direct   |
| Supermarket,       |          |       | Island   | Importer         |
|                    |          |       |          |                  |
| Grocery Store      |          |       |          |                  |
+--------------------+----------+-------+----------+------------------+
| Little Price       | Local    | 1     | Union    | Local & Direct   |
| Supermarket,       |          |       | Island   | Importer         |
|                    |          |       |          |                  |
| Grocery Store      |          |       |          |                  |
+--------------------+----------+-------+----------+------------------+
| Corea's Food       | Foreign: | 1     | Mustique | Local & Direct   |
| Store,             | Barbados |       |          | Importer         |
|                    |          |       |          |                  |
| Grocery Store      |          |       |          |                  |
+--------------------+----------+-------+----------+------------------+
| Mustique General   | Local    | 1     | Mustique | Local & Direct   |
| Store,             |          |       |          | Importer         |
|                    |          |       |          |                  |
| Grocery Store      |          |       |          |                  |
+--------------------+----------+-------+----------+------------------+
| Dennis             | Local    | 1     | Mayreau  | Local & Direct   |
| Supermarket,       |          |       |          | Importer         |
|                    |          |       |          |                  |
| Grocery Store      |          |       |          |                  |
+--------------------+----------+-------+----------+------------------+

All six supermarkets are located in the nation's capital, Kingstown.
They target mainly local customers. C.K. Greaves & Co., Ltd., with two
outlets (C.K. Greaves and Sunrise), has probably the widest selection of
products in town. C.K. Greaves Supermarket, the larger store, also has a
warehouse and a bakery. Sunrise Supermarket is in the process of
expanding its meat and deli counters. Bonadies, which also has two
outlets, is one of the islands most well known supermarkets. St. Vincent
Marketing Corp., which started with a small retail outlet, recently
inaugurated a much bigger new store with approximately six cash
registers. It also operates a wholesale facility and manages the islands
largest meat market, abattoir, fresh market, and fresh produce packaging
house.

Of the 12 grocery stores operating in S.V.G., many just have one or two
cash registers but offer a fair selection of food products and
toiletries. These grocery stores import some products directly but their
purchasing volumes are much less than the large supermarkets. In St.
Vincent, they compete with big supermarket stores by offering proximity
to home (or journey home) and better customer service. One of these
groceries, Gourmet Food, offers an excellent selection of imported
cheeses, exotic meats and seafood, along with other deli items. In the
Grenadines, grocery stores and mom & pop shops are the main source of
food purchases as there are no major supermarkets on these islands.

##### B. CONVENIENCE STORES AND GAS MARTS

**[Entry Strategy]{.underline}**

Convenience stores obtain most of their food products from local
distributors and local manufacturers/producers. It is estimated that
only 20 to 30 percent of their food supplies are imported. The best way
for a U.S. importer interested in introducing a product to convenience
stores is by contacting local importers and supermarkets. They will
supply convenience stores with their basic food needs.

### Market Structure

*Product Flow for Imported Products:*

Company Profiles

+----------------+---------+-------+----------------+-----------------+
| **Retail       | **Owne  | **No. | **Location**   | **Purchasing    |
| Name**         | rship** | of**  |                | Agent**         |
|                |         |       |                |                 |
|                |         | *     |                |                 |
|                |         | *Outl |                |                 |
|                |         | ets** |                |                 |
+----------------+---------+-------+----------------+-----------------+
| AZ's           | Local   | 1     | Kingstown, St. | Local & Direct  |
| Convenient     |         |       | Vincent        | Importer        |
|                |         |       |                |                 |
| Store          |         |       |                |                 |
+----------------+---------+-------+----------------+-----------------+
| T.C. Bayside   | Local   | 1     | Kingstown, St. | Local & Direct  |
| Mini Mart      |         |       | Vincent        | Importer        |
+----------------+---------+-------+----------------+-----------------+
| M & G          | Local   | 1     | Kingstown, St. | Local & Direct  |
| Enterprise     |         |       | Vincent        | Importer        |
| Ltd.           |         |       |                |                 |
+----------------+---------+-------+----------------+-----------------+
| Doris Fresh    | Local   | 1     | Port           | Local & Direct  |
| Foods          |         |       | Elizabeth,     | Importer        |
|                |         |       | Bequia         |                 |
+----------------+---------+-------+----------------+-----------------+
| Tannis         | Local   | 1     | Front Street,  | Local & Direct  |
| Brothers       |         |       | Bequia         | Importer        |
+----------------+---------+-------+----------------+-----------------+
| Captain        | Local   | 1     | Clifton, Union | Local & Direct  |
| Gourmet's      |         |       | Island         | Importer        |
| Grocery        |         |       |                |                 |
+----------------+---------+-------+----------------+-----------------+
| Dennis         | Local   | 1     | Mayreau        | Local & Direct  |
| Supermarket    |         |       |                | Importer        |
+----------------+---------+-------+----------------+-----------------+

Convenience stores offer a small selection of food products and often
target tourists including those visiting by yacht. They usually sell a
small selection of meat, seafood, dry goods, and alcoholic &
non-alcoholic beverages. About 6 Shell and Texaco gas-marts are also
present in the retail market and carry basic staples.

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

**[Entry Strategy]{.underline}**

Mom and pop shops do not import directly from the U.S. supplier.
Therefore, the best way to introduce a product is through a local
importer or distributor.

### Market Structure

*Product Flow for Imported Products:*

####### 

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

As mentioned earlier, S.V.G. has about 400 mom & pop shops. They sell
mainly dry goods and local produce. Market Square is the main
traditional market and it sells local vegetables, fruits and fish.

# Section III. Competition

Competition for food and beverage products is led by the United States
that supplies most of the nation's total needs. The high quality and
competitive prices of U.S. food products, along to the U.S. 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/)