Required Report - public distribution

**Date:** 11/21/2005

**GAIN Report Number:** CA5080

CA5080

**Canada**

**Retail Food Sector**

**Retail Food Sector**

**2005**

**Approved by:**

![](media/image1.wmf)Lisa Anderson

U.S. Embassy

**Prepared by:**

Alejandro Gonzalez & Jill Isai

**Report Highlights:**

Canadian food retailers generated 24% of all retail sales, reaching
C\$82.4 billion in 2004, a 5% increase over 2003. This report provides a
snapshot of the Canadian retail food sector to assist U.S. exporters
wishing to investigate that market.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Ottawa \[CA1\]

\[CA\]

Table of Contents

[SECTION I. MARKET SUMMARY 3](#section-i.-market-summary)

[Overview 3](#overview)

[Retail Food Channel Growing Steadily
3](#retail-food-channel-growing-steadily)

[Total 2004 Retail Sales by Channel
4](#total-2004-retail-sales-by-channel)

[Total Food vs. Retail Sales Growth
4](#total-food-vs.-retail-sales-growth)

[Consolidation 4](#consolidation)

[Leading Grocery Groups 4](#leading-grocery-groups)

[Food Channel Sub-Sectors 5](#food-channel-sub-sectors)

[Regional Grocery Sales 7](#regional-grocery-sales)

[Visible Minority Population in Canada
7](#visible-minority-population-in-canada)

[Opportunities and Challenges Facing U.S. Exporters
8](#opportunities-and-challenges-facing-u.s.-exporters)

[SECTION II. ROAD MAP FOR MARKET ENTRY
8](#section-ii.-road-map-for-market-entry)

[Overview 8](#overview-1)

[Market Entry Steps 9](#market-entry-steps)

[The Distribution Channel 13](#the-distribution-channel)

[A.Supermarkets, Superstores, Club and Warehouse Outlets.
14](#a.supermarkets-superstores-club-and-warehouse-outlets.)

[B. Convenience Stores and Gas Marts
17](#b.-convenience-stores-and-gas-marts)

[SECTION III. FOOD IMPORTS AND COMPETITION
19](#section-iii.-food-imports-and-competition)

[Top Agri-Food Imports, 2004 20](#top-agri-food-imports-2004)

[Fruit and Nuts 20](#fruit-and-nuts)

[Beverages, Spirits & Vinegar 20](#beverages-spirits-vinegar)

[Per Capita Food Consumption in Kgs, 2004
20](#per-capita-food-consumption-in-kgs-2004)

[SECTION IV. BEST PRODUCT PROSPECTS
21](#section-iv.-best-product-prospects)

[Products Present in the Market with Good Sales Potential
21](#products-present-in-the-market-with-good-sales-potential)

[Home Meal Replacement Sales, All Categories
21](#home-meal-replacement-sales-all-categories)

[SECTION V. CONTACTS AND FURTHER INFORMATION
22](#section-v.-contacts-and-further-information)

# SECTION I. MARKET SUMMARY

## Overview

Agricultural trade between the United Sates and Canada continues to grow
at a steady pace. Thanks to more benign weather conditions, the U.S.
food industry is in an excellent position to complement Canadian
consumer-oriented needs year round.

U.S. agricultural exports to Canada reached US\$9.6 billion in FY2004,
an annual average growth rate of nearly 6 percent. One of the major
drivers for food consumption in Canada is convenience, which explains
why consumer-oriented agricultural products accounted for 72 percent of
total U.S. food and agricultural product sales to Canada in 2004, with
fresh and processed fruits and vegetables, snack foods, and red meat
products as the category leaders.

U.S. farm, fish and forestry exports to Canada increased 12%, reaching
US\$12.1 billion in FY2004. Canada accounted for 15 percent (\$9.6
billion) of total U.S. food and agricultural products exports. Of the
more than \$23.2 billion in U.S. consumer-oriented agricultural product
exports, \$7 billion, almost 30%, was destined for Canada.

The importance of the Canadian market for United States exports is also
clear in specific food segments. For example approximately one in every
five dollars of exports of fish and seafood went to Canada. Total
bilateral agricultural trade between both countries exceeds \$21
billion. This translates to more than \$57 million per day. Two-way,
cross border in-land shipments alone exceeds 35,000 trucks/day, an
average of almost 1,500 trucks per hour, 24 hours a day, crossing the
3,145 miles long border between the U.S. and Canada.

## Retail Food Channel Growing Steadily

The Canadian food and consumer products industry employs 780,000 people.
This industry, with 325,000 people working in manufacturing and 455,000
in distribution, is a major economic force in the country. Responding to
specific life style needs, the Canadian population, 32 million strong,
generated overall retail sales totaling C\$347 billion in FY2004, a 4.7
per-cent increase over 2003. The total food channel increased 4.9% over
2004 to reach C\$82.4.

The retail food channel saw considerable growth of 20.5% between 2000
and 2004. Total food channel growth expanded by 21 percent.

## Total 2004 Retail Sales by Channel

![](media/image2.wmf)

*Statistics Canada*

# 

## Total Food vs. Retail Sales Growth

  ---------- ------------------ --------------- ------------------- ----------------
             **Food Sales C\$** **% Growth Over **Retail Sales      **% Growth Over
                                Year Prior**    C\$**               Year Prior**

  2000       \$68,041,480,000   \--             \$287,838,429,000   \--

  **2001**   \$71,048,941,000   4.4%            \$300,447,907,000   4.4%

  **2002**   \$74,734,685,000   5.2%            \$319,525,414,000   6.3%

  **2003**   \$78,539,229,000   5.1%            \$331,146,620,000   3.6%

  **2004**   \$82,357,561,000   4.9%            \$346,721,498,000   4.7%
  ---------- ------------------ --------------- ------------------- ----------------

Statistics Canada

### 

## Consolidation

Consolidation within the Canadian grocery retail chains has been taking
place over the past several years. Metro Inc., a Quebec firm with
control over 579 stores located in the province of Quebec, recently
acquired one of the leading grocers in Ontario, The Great Atlantic &
Pacific Tea Co. Inc, a group of 236 stores. This further amalgamation of
the Canadian retail food sector has increased competition for the
consumer's retail food dollar in Canada within the traditional grocery
store environment. The three leading grocery chains are now Loblaws
(1,577 stores), Sobeys (1,311 stores), and now, Metro Inc. (915 stores).

### 

## Leading Grocery Groups

## 

+------------+------+--------------+---------------+------------------+
| **Name**   | **Ma | **2004       | **Geographic  | ###### Strategy  |
|            | rket | Revenue**    | Regions**     |                  |
|            | Sha  |              |               |                  |
|            | re** | **(C\$       |               |                  |
|            |      | Billions)**  |               |                  |
|            | **(  |              |               |                  |
|            | %)** |              |               |                  |
+------------+------+--------------+---------------+------------------+
| **Loblaw** | 27.7 | 26.2         | Atlantic &    | Maintain its     |
|            |      |              | Western       | leadership       |
|            |      |              |               | position while   |
|            |      |              | Canada,       | building more    |
|            |      |              | Ontario &     | superstores as   |
|            |      |              |               | it tries to      |
|            |      |              | Quebec        | prevent Wal-Mart |
|            |      |              |               | from expanding   |
|            |      |              |               | its grocery      |
|            |      |              |               | business in      |
|            |      |              |               | Canada           |
+------------+------+--------------+---------------+------------------+
| **Sobeys** | 13.1 | 12.2         | Atlantic &    | Strengthen its   |
|            |      |              | Western       | operat-ions with |
|            |      |              |               | private labels   |
|            |      |              | Canada,       |                  |
|            |      |              | Ontario &     | and more         |
|            |      |              |               | attractive,      |
|            |      |              | Quebec        | efficiently run  |
|            |      |              |               | stores.          |
+------------+------+--------------+---------------+------------------+
| **Metro    | 12.7 | 15.6         | Quebec &      | Bolster its      |
| Inc/A&P**  |      |              | Ontario       | already strong   |
|            |      |              |               | presence in the  |
|            |      |              |               | Ontario market.  |
+------------+------+--------------+---------------+------------------+

####### Marina Strauss and Gordon Pitts, The Globe & Mail; Canadian Grocer

Traditional grocers are experiencing persistent competition from
businesses that until recently were not selling pantry and refrigerated
food items. One such company is Shoppers Drug Mart, a 40-year-old
pharmacy retailer with 925 stores nationwide and sales of C\$6.0 billion
dollars in 2004. The firm's new strategy is to add convenience foods to
their traditional assortment with the goal of catering to the proverbial
time strapped consumer in need of one stop shopping. The move has
already produced good results. The company reported a 2005,
third-quarter net income of C\$107.7 million, a figure 19% higher than
the previous quarter.

Another front in the battle to gain market share is the club warehouse
channel. Before 2003, the only business representing such approach to
grocery selling was Costco. However, Sam's Club, a division of Wal-Mart,
entered the Canadian retail food sector in 2003. These and other food
purchasing options (mass merchandisers and convenience stores) are
giving consumers an extremely convenient assortment of stores to satisfy
every need.

## Food Channel Sub-Sectors

+------------------+---------------------------------------------------+
| ####             | A full-line, self-service grocery store with      |
| #### Supermarket | annual sales of C\$2 million or more.             |
+------------------+---------------------------------------------------+
| **Superstore**   | A supermarket with a minimum of 30,000 square     |
|                  | feet, generating C\$12 million or more in sales   |
| ** **            | annually and offering an expanded selection of    |
|                  | non-food items. Features specialty departments    |
|                  | and extensive services.                           |
+------------------+---------------------------------------------------+
| **Mass           | A combined supermarket and discount store selling |
| Merchandiser**   | a wide range of food and general merchandise.     |
|                  | Stores generally average more than 150,000 square |
|                  | feet.                                             |
+------------------+---------------------------------------------------+
| **Wholesale Club | A membership retail/wholesale hybrid with a       |
| Store**          | limited variety of products presented in          |
|                  | warehouse-type atmosphere. These 90,000-plus      |
|                  | square-foot stores typically feature a majority   |
|                  | of general merchandise, as well as a grocery line |
|                  | dedicated to large size and bulk sales.           |
+------------------+---------------------------------------------------+
| **Convenience    | A compact store offering a limited line of        |
| Store**          | high-convenience items. Many sell gasoline and    |
|                  | fast food. Store size averages 2,400 square feet. |
+------------------+---------------------------------------------------+
|                  |                                                   |
+------------------+---------------------------------------------------+
| **Independent**  | An operator with fewer than four retail stores.   |
|                  |                                                   |
|                  | -   Voluntary Groups: Typically franchisees of    |
|                  |     larger chain banners, these independents      |
|                  |     operate in major or secondary                 |
|                  |     wholesale-sponsored groups. These units       |
|                  |     benefit from volume purchases from sponsoring |
|                  |     wholesaler.                                   |
|                  |                                                   |
|                  | -   Unaffiliated Independents: Single             |
|                  |     unaffiliated operating units.                 |
+------------------+---------------------------------------------------+
| **Chain**        | An operator of four or more retail stores.        |
+------------------+---------------------------------------------------+

####### Canadian Grocer

Even though competition for the consumer's food dollar has extended to
non-conventional channels, chain stores and independents are still
spearheading the battle. Chain store share of total food sales remained
the same between 2002 and 2004, and dipped to 60.5 % of total sales in
2003, it climbed back up to 60.7% in 2004. Total chain store sales for
2004, which combine both grocery and convenience figures, increased 0.2
per cent over 2004, reaching C\$41.2 billion.

The share of independent food sales had a slight increase of 0.2 percent
between 2003 and 2004. However, it has been decreasing steadily since
1998 from 42.8 per cent to 2004's 39.3 per cent.

Interestingly, chain store market share across the country generates
more than 62 per cent of sales in every region, with the exception of
Quebec, which only generates 36.3 per cent market share. Quebec
consumers tend to shop daily and prefer the neighborhood format of
store.

Chain vs. Independent Market Share (Supermarkets/Convenience)

*Canadian Grocer*

Across the country, Ontario generates the most significant market share
of food sales at 32.7 per cent, consistent with its population base.
Quebec is close behind at 24 per cent; these two powerhouse provinces
own more than 50 per cent market share throughout the entire country.
Lagging behind are the Atlantic Provinces and Manitoba/Saskatchewan at
16 per cent.

Regional Market Share (Supermarkets/Convenience)

+--------+-----+-----+--------+------+-----+-------+------+---------+
| ###### | *   |     |        | **In |     |       | **T  |         |
| ### Pr | *Ch |     |        | depe |     |       | otal |         |
| ovince | ain |     |        | nden |     |       | Re   |         |
|        | St  |     |        | ts** |     |       | tail |         |
|        | ore |     |        |      |     |       | Fo   |         |
|        | s** |     |        |      |     |       | od** |         |
+--------+-----+-----+--------+------+-----+-------+------+---------+
|        | **U |     | **S    | *    |     | **Sa  | *    | **      |
|        | nit |     | ales** | *Uni |     | les** | *Uni | Sales** |
|        | s** |     |        | ts** |     |       | ts** |         |
+--------+-----+-----+--------+------+-----+-------+------+---------+
|        | **  | *   | **Co   | **V  | **  | **Com | **   | **R     |
|        | Gro | *Co | mbined | olun | Una | bined | Regi | egional |
|        | cer | nve | T      | tary | ffi | To    | onal | Total** |
|        | y** | n-i | otal** | Grou | l-i | tal** | Tot  |         |
|        |     | enc |        | ps** | ate |       | al** |         |
|        |     | e** | **\[00 |      | d** | **    |      |         |
|        |     |     | 0s\]** |      |     | \[000 |      |         |
|        |     |     |        |      |     | s\]** |      |         |
+--------+-----+-----+--------+------+-----+-------+------+---------+
| **At   | 193 | 1,  | \$4,7  | 174  | 1,  | \     | *    | *       |
| lantic |     | 975 | 85,758 |      | 134 | $1,35 | *3,4 | *\$6,11 |
| Provi  |     |     |        |      |     | 2,880 | 76** | 1,638** |
| nces** |     |     |        |      |     |       |      |         |
+--------+-----+-----+--------+------+-----+-------+------+---------+
| **Qu   | 381 | 1,  | \$5,8  | 1    | 2,  | \$    | *    | **      |
| ebec** |     | 810 | 83,950 | ,888 | 808 | 10,32 | *6,8 | \$16,21 |
|        |     |     |        |      |     | 8,472 | 87** | 2,422** |
+--------+-----+-----+--------+------+-----+-------+------+---------+
| **Ont  | 601 | 2,  | \$13,8 | 889  | 2,  | \     | *    | **      |
| ario** |     | 367 | 80,828 |      | 898 | $8,31 | *6,7 | \$22,19 |
|        |     |     |        |      |     | 1,711 | 51** | 2,539** |
+--------+-----+-----+--------+------+-----+-------+------+---------+
| *      | 162 | 586 | \$3,3  | 790  | 952 | \     | *    | *       |
| *Manit |     |     | 49,190 |      |     | $1,49 | *2,4 | *\$4,84 |
| oba/** |     |     |        |      |     | 1,532 | 90** | 0,722** |
|        |     |     |        |      |     |       |      |         |
| **Sa   |     |     |        |      |     |       |      |         |
| skatch |     |     |        |      |     |       |      |         |
| ewan** |     |     |        |      |     |       |      |         |
+--------+-----+-----+--------+------+-----+-------+------+---------+
| **Alb  | 258 | 1,  | \$6,3  | 318  | 655 | \     | *    | *       |
| erta** |     | 225 | 47,502 |      |     | $2,29 | *2,4 | *\$8,64 |
|        |     |     |        |      |     | 8,678 | 56** | 6,180** |
+--------+-----+-----+--------+------+-----+-------+------+---------+
| **B    | 292 | 907 | \$6,9  | 222  | 822 | \     | *    | *       |
| ritish |     |     | 60,233 |      |     | $2,93 | *2,2 | *\$9,89 |
| Col    |     |     |        |      |     | 7,945 | 43** | 8,180** |
| umbia/ |     |     |        |      |     |       |      |         |
| North  |     |     |        |      |     |       |      |         |
| Ca     |     |     |        |      |     |       |      |         |
| nada** |     |     |        |      |     |       |      |         |
+--------+-----+-----+--------+------+-----+-------+------+---------+
| **Ca   | **1 | **8 | **\$   | *    | **9 | *     | **   | **      |
| nada** | ,88 | ,87 | 41,207 | *4,2 | ,26 | *\$26 | 24,3 | \$67,90 |
|        | 7** | 0** | ,461** | 81** | 5** | ,694, | 03** | 1,679** |
|        |     |     |        |      |     | 218** |      |         |
+--------+-----+-----+--------+------+-----+-------+------+---------+
| \% of  | 7   | 36  | 60.7%  | 17.6 | 38  | 39.3% | 100% | 100%    |
| Total  | .8% | .5% |        | %    | .1% |       |      |         |
+--------+-----+-----+--------+------+-----+-------+------+---------+

Canadian Grocer

## Regional Grocery Sales

![](media/image3.wmf)

*Canadian Grocer*

## Visible Minority Population in Canada

## 

An issue U.S. food exporters should also consider when analyzing
opportunities in the Canadian market is the ethnic configuration of its
population. According to the most recent surveys, there are 4 million
people that belong to visible minorities. South Asian and Chinese
constitute an impressive 48% of this universe. Interestingly, immigrants
and their descendants influence the food consumption trends of the whole
population through their different, unique restaurant offerings that in
turn are guiding decisions of food manufacturers in regard to the
development of new products for the retail market.

![](media/image4.wmf)

*Statistics Canada; \*Visible Minority not included elsewhere plus
Multiple Visible Minority*

# 

## Opportunities and Challenges Facing U.S. Exporters

  ------------------------------------ ----------------------------------
  **Opportunities**                    **Challenges**

  The Canadian consumer is aging and   Maturing, more affluent consumers
  is increasingly wealthier.           require unique and innovative food
                                       items that appeal to their needs
                                       of convenience, health, and status

  Rigorous climate conditions impede   Buyers are increasingly requesting
  continuous production of             12 month contracts, pressuring
  commodities, primarily fresh fruit   suppliers to obtain product from
  and vegetables.                      different regions in the U.S. or
                                       even worldwide.

  Canadian retail buyers are enjoying  Buyers are also looking in many
  a stronger dollar, allowing them to  different countries, generating
  increase purchase volumes. U.S.      tougher competition for U.S.
  products become more competitive.    foods.

  Even though Canadians still consume  Bagged Salads and pre-cut fresh
  large amounts of fats and sugars,    fruits are in high demand.
  when compared with U.S. shoppers,    However, waste and packaging are
  per-capita consumption of fruits and major concerns.
  vegetables is substantially higher   
  in Canada.                           

  Retail consolidation means fewer     Retailers are interested in
  retailers to approach when           category extension, not
  soliciting listing agreements.       cannibalization. Products entering
                                       the market must be innovative; not
                                       "me too."

  An ethnically diverse population is  New food items should replicate
  bringing new flavors and trends,     not only flavors but also adds
  increasing variety of foods offered  convenience.
  in retail.                           

  Canadian food shoppers are becoming  The Canadian ministry of Health
  increasingly interested in the       has set new nutritional labeling
  information provided by labels. More regulations. U.S. manufacturers
  purchase decisions are being made    need to understand clearly the new
  based on nutritional composition.    guidelines to avoid penalizations.

  Retailers are increasing their       New products, regardless the
  private label lines and consumers    label, will have to provide
  are getting convinced of their       exceptional value in order to be
  value.                               successful.
  ------------------------------------ ----------------------------------

# SECTION II. ROAD MAP FOR MARKET ENTRY

## Overview

Analysts of the North American food trading industry have expressed that
both the U.S. and Canada are *natural markets* for each other.
Geographical proximity, language, similarities among consumption
cultures, strong currencies, commodities interdependence, and many other
aspects facilitate trade between the two countries.

On the other hand, consolidation in the retail food industry and
stronger competition from other countries (China, primarily), have
somewhat complicated the entry of U.S. foods into Canada. American
exporters have many tools at their disposal to facilitate the
introduction of their products.

The following steps can be taken regardless of the specific channel
(grocery, mass, of club) U.S. companies decide to pursue.

## Market Entry Steps

1.  **Get in touch with State Regional Trade Office**

> State Regional Trade organizations 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. Key distributors, names and contact information buyers, and
> specifics about important trade and consumer shows are also made
> available. Through these State Regional Trade Offices, 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
> reimbursements.

  ---------------- ---------------------------------- ------------------------------------------------------------
  **State          **States Represented**             **Web Site**
  Regional**                                          

  Food Export USA  Connecticut, Delaware, Maine,      [**www.foodexportusa.org**](http://www.foodexportusa.org/)
                   Massachusetts, New Hampshire, New  
                   Jersey, New York, Pennsylvania,    
                   Rhode Island and Vermont           

  Mid-American     Illinois, Indiana, Iowa, Kansas,   [**www.miatco.org**](http://www.miatco.org/)
  International    Michigan, Minnesota, Missouri,     
  Agri-Trade       Nebraska, North Dakota, Ohio,      
  Council (MIATCO) South Dakota and Wisconsin         

  Southern United  Alabama, Arkansas, Florida,        [**www.susta.org**](http://www.susta.org/)
  States Trade     Georgia, Kentucky, Louisiana,      
  Association      Maryland, Mississippi, North       
  (SUSTA)          Carolina, Oklahoma, South          
                   Carolina, Tennessee, Texas,        
                   Virginia, West Virginia and the    
                   Commonwealth of Puerto Rico        

  Western U.S.     Alaska, Arizona, California,       [**www.wusata.org**](http://www.wusata.org/)
  Agricultural     Colorado, Hawaii, Idaho, Montana,  
  Trade            New Mexico, Oregon, Utah,          
  Association      Washington, Nevada and Wyoming     
  (WUSATA)                                            
  ---------------- ---------------------------------- ------------------------------------------------------------

2.  **Locate a Distributor or Broker or go Direct to the Buyer**

USDA's Foreign Agricultural Service (FAS) has personnel located in
Canada whose responsibility is to help potential exporters find the
right contacts. Local representation is something that should be
evaluated to take advantage of the expertise already in place. FAS
personnel keep updated lists of brokers with proficiency on specific
products. Also, these firms are a good place to start when deciding
whether to go direct or use a representative.

+-------------+------------------------------+------------------------+
| **Org       | **Service**                  | **Contact**            |
| anization** |                              |                        |
+-------------+------------------------------+------------------------+
| Foreign     | Designed for                 | Canada Connect         |
| A           | U.S.-export-ready companies, | representatives in     |
| gricultural | the FAS program "Canada      | Canada:                |
| Service     | Connect" matches prospective |                        |
|             | exporters with appropriate   | Branded food products  |
|             | Canadian brokers/            | and agricultural       |
|             | distributors or buyers by    | commodities:           |
|             | accurately expediting entry  |                        |
|             | into Canada through market   | Faye Clack             |
|             | research, competitive        | Communications Inc.    |
|             | analysis and the scheduling  |                        |
|             | of buyer appointments.       | tel: 905-206-0577      |
|             | Further explanation of this  |                        |
|             | Canada Connect program is    | [w                     |
|             | available on line at         | ww.fayeclack.com](http |
|             | [www.fas.usda.go             | ://www.fayeclack.com/) |
|             | v](http://www.fas.usda.gov/) |                        |
|             | report CA5060. A partial     | email:                 |
|             | listing of Canadian Food     | [kboy                  |
|             | Brokers is also available on | ce@fayeclack.com](mail |
|             | the FAS web site. Look for   | to:info@fayeclack.com) |
|             | report CA5068.               |                        |
|             |                              | Wine, Beer, Alcohol    |
|             |                              | products:              |
|             |                              |                        |
|             |                              | Ketchin Sales &        |
|             |                              | Marketing              |
|             |                              |                        |
|             |                              | tel: 705-444-5255      |
|             |                              |                        |
|             |                              | cell: 416-580-3200     |
|             |                              |                        |
|             |                              | email:                 |
|             |                              | <rketchin@ketchin.com> |
+-------------+------------------------------+------------------------+
| **The       | The Association of Sales &   | **www.gmabrands.com**  |
| Grocery     | Marketing Companies (ASMC)   |                        |
| Ma          | merged with the GMA, in      |                        |
| nufacturers | January 2003. GMA is a       |                        |
| of America  | Washington, DC-based         |                        |
| (GMA)**     | voluntary member trade       |                        |
|             | association promoting the    |                        |
|             | interests of approximately   |                        |
|             | 450 sales and marketing      |                        |
|             | agencies and 140             |                        |
|             | manufacturers in the United  |                        |
|             | States, Canada and abroad.   |                        |
|             | Its web site includes a      |                        |
|             | Canadian database of         |                        |
|             | approximately 30             |                        |
|             | brokers/distributors.        |                        |
+-------------+------------------------------+------------------------+
| **The       | The Toronto, ON-based CAIE   | **www.importers.ca**   |
| Canadian    | is Canada\'s key source of   |                        |
| Importers   | information on Canadian      |                        |
| and         | customs and trade policy. It |                        |
| Exporters   | provides Canadian importers  |                        |
| As          | with critical and timely     |                        |
| sociation** | information and effective    |                        |
|             | representation to government |                        |
|             | agencies.                    |                        |
+-------------+------------------------------+------------------------+

> **3. Understand Canadian Government Regulations**

The Canadian Government has multiple acts that govern importation and
sales of foods. Some of the most important ones 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

```{=html}
<!-- -->
```
-   Weight and Measures Act

The Canadian Food Inspection Agency, Health Canada, and the 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.

Health Canada has recently unveiled a new set of labeling rules. The new
regulations govern nutrition labeling, and nutrition and health claims.
A Nutrition Facts Box will be required on most prepackaged foods,
providing consumers with greater access to nutrition information on food
labels.

  --------------- ----------------------------------- -------------------------------------------------------------------------
  **Government    **Function**                        **Information**
  Bodies**                                            

  Canadian Food   Government of Canada's regulator    [**www.inspection.gc.ca**](http://www.inspection.gc.ca/)
  Inspection      for food safety \[along with Health 
  Agency (CFIA)   Canada\], animal health and plant   
                  protection.                         

  Canada Customs  Its mission is to promote           [**www.ccra-adrc.gc.ca**](http://www.ccra-adrc.gc.ca/)
  and Revenue     compliance with Canada's tax,       
  Agency (CCRA)   trade, border legislation and       
                  regulations.                        

  Canadian Food   A regulatory document provided by   [**www.hc-sc.gc.ca/food-aliment**](http://www.hc-sc.gc.ca/food-aliment)
  and Drug Act    Health Canada, which outlines       
                  information regarding specific food 
                  import restrictions.                

  Health Canada   Administers the Food Safety         [**www.hc-sc.gc.ca**](http://www.hc-sc.gc.ca/)
                  Assessment Program, which assesses  
                  the effectiveness of the Canadian   
                  Food Inspection Agency\'s           
                  activities related to food safety.  

  Foreign Affairs Responsible for allocating tariff   **[www.dfait-maeci.gc.ca](http://www.dfait-maeci.gc.ca/)/eicb**
  and             rate quotas to importers.           
  International                                       
  Trade (DFAIT),                                      
  Export & Import                                     
  Controls Bureau                                     

  Measurement     Administers and enforces the        [**www.strategis.ic.gc.ca**](http://www.strategis.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 report CA5077 on the
FAS web site: [www.fas.usda.gov](http://www.fas.usda.gov/). Information
exporters need to understand 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**](http://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 2003 Guide to Food Labeling and Advertising guide can be found at:

[**www.inspection.gc.ca/english/fssa/labeti/guide/toce.shtml**](http://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 orientation on
specific import requirements and documentation.

+-----------------------+---------------------+------------------------+
| **Import Service      | **Open**            | **Contact**            |
| Center**              |                     |                        |
+-----------------------+---------------------+------------------------+
| Eastern ISC           | 7 a.m. to 11 p.m.   | Telephone:             |
|                       |                     | 1-877-493-0468         |
|                       | \[local time\]      | \[within Canada or     |
|                       |                     | U.S.\]\                |
|                       |                     | Fax: 1-514-493-4103    |
+-----------------------+---------------------+------------------------+
| Central ISC           | 7 a.m. to 12 a.m.   | Telephone:             |
|                       |                     | 1-800-835-4486         |
|                       | \[local time\]      | \[within Canada or     |
|                       |                     | U.S.\]\                |
|                       |                     | Fax: 1-905-612-6280    |
+-----------------------+---------------------+------------------------+
| Western ISC           | 7 a.m. to 12 a.m.   | Telephone:             |
|                       |                     | 1-888-732-6222         |
|                       | \[local time\]      | \[within Canada or     |
|                       |                     | U.S.\]\                |
|                       |                     | Fax: 1-604-541-3373    |
+-----------------------+---------------------+------------------------+

4.  **Study the Marketplace**

A thorough understanding of consumer trends and needs are required in
developing your 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 through 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](http://www.canadiangrocer.ca/)), a magazine
that closely follows key developments in the Canadian grocery industry,
and ***Food Service and Hospitality***
([www.foodserviceworld.com](http://www.foodserviceworld.com/)), a
periodical that continuously offers updated information on the status of
the food service industry in Canada.

Other sources of information:

  ------------------- ------------------------------ ---------------------------------------------------
  **Organization**    **Function/Purpose**           **Information**

  Statistics Canada   The official source for        [**www.statcan.ca**](http://www.statcan.ca/)
                      Canadian social and economic   
                      statistics and products.       

  Food and Consumer   It is the industry association [**www.fcpmc.com**](http://www.fcpmc.com/)
  Products of Canada  representing approximately 130 
  (FCPMC)             Canadian-operated member       
                      companies that make and market 
                      retailer and national brands   
                      sold through grocery, drug,    
                      convenience, mass merchandise  
                      and foodservice distribution   
                      channels.                      

  Canadian Council of Represents Canadian            [**www.ccgd.magi.com**](mailto:www.ccgd@magi.com)
  Grocery             distributors of food and       
  Distributors (CCGD) grocery-related products.      

  Canadian Restaurant The largest hospitality        [**www.crfa.ca**](http://www.crfa.ca/)
  and Foodservices    association in Canada.         
  Association                                        

  Canadian Federation Represents Canada\'s           [**www.cfig.ca**](http://www.cfig.ca/)
  of Independent      independently owned and        
  Grocers (CFIG)      franchised supermarkets.       

  Consumers'          Represents consumers to all    [**www.consumer.ca**](http://www.consumer.ca/)
  Association of      levels of government and to    
  Canada              all sectors of society.        

  Agriculture &       Provides information, research [**www.agr.gc.ca**](http://www.agr.gc.ca/)
  Agri-Food Canada,   and technology policies and    
  Agri-Trade Food     programs. Also provides access 
  Service             to statistics.                 

  Canada Connect      See program description in     [**www.fas.usda.gov**](http://www.fas.usda.gov/)
                      step 2. This program also      
                      provides competitive analysis  
                      for U.S. food manufacturers.   
                      Report CA5060.                 
  ------------------- ------------------------------ ---------------------------------------------------

Finally, it is important to understand how the distribution channel
operates. In general, many large retail firms such as Loblaws or Sobeys
procure foods directly from producers/manufacturers. On the other hand,
smaller, regional retailers often purchase products from
distributors/importers and from local manufacturers. The services of
established food brokers and trading companies are recommended for the
introduction of grocery aisle type products. These Canadian firms
usually have enough experience to decide what is the best course to
take.

## The Distribution Channel

## A.Supermarkets, Superstores, Club and Warehouse Outlets.

Following is a list of Canadian retail food companies including some of
their most important features.

Supermarkets & Superstores

+---------------+-------------+-------+-----+----+---------+---------+
| **Retailer**  | **Primary   | **T   | **S | *  | **      | **Pur   |
|               | Banners**   | ype** | ale | *N | Locatio | chasing |
|               |             |       | s** | o. | ns^1^** | Agent   |
|               |             |       |     | ** |         | Type**  |
|               |             |       | **( |    |         |         |
|               |             |       | C\$ |    |         |         |
|               |             |       | )** |    |         |         |
+---------------+-------------+-------+-----+----+---------+---------+
| ######### L   | **All       |       | **\ | *  | *       | **      |
| oblaw Co. Ltd | Banners**   |       | $26 | *1 | *Across | Direct, |
|               |             |       | B** | ,5 | C       | Broker, |
|               |             |       |     | 77 | anada** | and     |
|               |             |       |     | ** |         | Distri  |
|               |             |       |     |    |         | butor** |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Atlantic    | SM    |     | 56 | NB/NS   |         |
|               | Supercentre |       |     |    | /PEI/NF |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Dominion    | SM    |     | 15 | NF      |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Extra Foods | SM    |     | 90 | BC/Y    |         |
|               |             |       |     |    | UKON/NW |         |
|               |             |       |     |    | T/NUNAV |         |
|               |             |       |     |    | UT/PRAI |         |
|               |             |       |     |    | RIES/ON |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Foodmaster  |       |     | 85 |         |         |
+---------------+-------------+-------+-----+----+---------+---------+
| []{.mark}     | Fortinos    | SS    |     | 20 | ON      | []      |
|               |             |       |     |    |         | {.mark} |
+---------------+-------------+-------+-----+----+---------+---------+
| []{.mark}     | IGA         |       |     | 2  |         |         |
|               |             |       |     | 50 |         |         |
+---------------+-------------+-------+-----+----+---------+---------+
| []{.mark}     | Loblaws     | SM/SS |     | 1  | ON/QC   | []      |
|               |             |       |     | 00 |         | {.mark} |
+---------------+-------------+-------+-----+----+---------+---------+
| []{.mark}     | Lucky       | SM    |     | 1  | B       |         |
|               | Dollar      |       |     | 65 | C/YUKON |         |
|               | Foods       |       |     |    | /NWT/NU |         |
|               |             |       |     |    | NAVUT/P |         |
|               |             |       |     |    | RAIRIES |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Maxi        | SM    |     | 75 | QC      |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | No Frills   | SM    |     | 1  | ON      |         |
|               |             |       |     | 03 |         |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Provigo     | SM/SS |     | 1  | QC      |         |
|               |             |       |     | 70 |         |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | The Real    | SS    |     | 59 | BC/     |         |
|               | Canadian    |       |     |    | AB/SK/M |         |
|               | Supercentre |       |     |    | B/ON/YK |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | The Real    | SS    |     | 32 | BC/AB/S |         |
|               | Canadian    |       |     |    | K/MB/ON |         |
|               | Warehouse   |       |     |    |         |         |
|               | Club        |       |     |    |         |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Red and     |       |     | 10 |         |         |
|               | White       |       |     |    |         |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | St. Clair   |       |     | 38 |         |         |
|               | Market      |       |     |    |         |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Save Easy   |       |     | 33 |         |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Shop Easy   | SM    |     | 58 | BC/AB/S |         |
|               |             |       |     |    | K/MB/ON |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | SuperValu   | SM    |     | 35 | B       |         |
|               |             |       |     |    | C/YUKON |         |
|               |             |       |     |    | /NWT/NU |         |
|               |             |       |     |    | NAVUT/P |         |
|               |             |       |     |    | RAIRIES |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Valu-mart   | SM    |     | 71 | ON      | []      |
|               |             |       |     |    |         | {.mark} |
+---------------+-------------+-------+-----+----+---------+---------+
| []{.mark}     | Your        | SS    |     | 54 | ON      |         |
|               | Independent |       |     |    |         |         |
|               | Grocer      |       |     |    |         |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Zehrs       | SM/SS |     | 58 | ON      |         |
|               | Markets     |       |     |    |         |         |
+---------------+-------------+-------+-----+----+---------+---------+
| **Sobeys,     | **All       |       | **\ | *  | *       | **      |
| Inc**         | Banners**   |       | $12 | *1 | *Across | Direct, |
|               |             |       | B** | ,3 | C       | Broker, |
|               |             |       |     | 11 | anada** | and     |
|               |             |       |     | ** |         | Distri  |
|               |             |       |     |    |         | butor** |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Action Plus | SM    |     | 79 | AB/B    |         |
|               |             |       |     |    | C/SK/MB |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Boni Choix  | SM    |     | 2  | AB/     |         |
|               |             |       |     | 02 | BC/SK/M |         |
|               |             |       |     |    | B/ON/QC |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Foodland    | SM    |     | 76 | AB/NT/S |         |
|               |             |       |     |    | K/MB/ON |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Food Town   | SM    |     | 82 | Prairi  |         |
|               |             |       |     |    | es/ON/A |         |
|               |             |       |     |    | tlantic |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Garden      | SM    |     | 74 | P       |         |
|               | Market IGA  |       |     |    | rairies |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | IGA         | SS    |     | 1  | ON/QC/P |         |
|               |             |       |     | 91 | rairies |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Knechtel    | SM    |     | 43 | ON      |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Kwik-Way    | SM    |     | 1  | ON/A    |         |
|               |             |       |     | 10 | tlantic |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Lawtons     | SM    |     | 43 | QC      |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Le          | SM    |     | 24 | QC      |         |
|               | Dépanneur   |       |     |    |         |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Needs       |       |     | 75 | A       |         |
|               |             |       |     |    | tlantic |         |
+---------------+-------------+-------+-----+----+---------+---------+
| []{.mark}     | Price       |       |     | 85 | Prairi  | []      |
|               | Chopper     |       |     |    | es/ON/A | {.mark} |
|               |             |       |     |    | tlantic |         |
+---------------+-------------+-------+-----+----+---------+---------+
| []{.mark}     | Sobeys      |       |     | 65 | Prairi  | []      |
|               |             |       |     |    | es/ON/A | {.mark} |
|               |             |       |     |    | tlantic |         |
+---------------+-------------+-------+-----+----+---------+---------+
| []{.mark}     | Thrifty     |       |     | 1  | BC/A    | []      |
|               | Foods       |       |     | 44 | B/SK/MB | {.mark} |
+---------------+-------------+-------+-----+----+---------+---------+
| []{.mark}     | Tradition   |       |     | 18 | QC      |         |
+---------------+-------------+-------+-----+----+---------+---------+
| Canada        | **All       | *     | *   | *  | **BC    | **      |
| Safeway Ltd.  | Banners**   | *SM** | *\$ | *2 | /AB/SK/ | Direct, |
|               |             |       | 5.6 | 45 | MB/ON** | Broker, |
| **(Foreign)** |             |       | B** | ** |         | and     |
|               |             |       |     |    |         | Distri  |
|               |             |       |     |    |         | butor** |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Family Food |       |     | 35 | BC/Y    |         |
|               |             |       |     |    | UKON/NW |         |
|               |             |       |     |    | T/NUNAV |         |
|               |             |       |     |    | UT/PRAI |         |
|               |             |       |     |    | RIES/ON |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Safeway     |       |     | 2  | BC/Y    |         |
|               |             |       |     | 10 | UKON/NW |         |
|               |             |       |     |    | T/NUNAV |         |
|               |             |       |     |    | UT/PRAI |         |
|               |             |       |     |    | RIES/ON |         |
+---------------+-------------+-------+-----+----+---------+---------+
| **Metro       | **All       |       | *   | *  | **      | **      |
| Inc.**        | Banners**   |       | *\$ | *9 | QC/ON** | Direct, |
|               |             |       | 5.8 | 15 |         | Broker, |
|               |             |       | B** | ** |         | and     |
|               |             |       |     |    |         | Distri  |
|               |             |       |     |    |         | butor** |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Ami         | SM    |     | 20 | QC      |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Brunet      | SS    |     | 66 | QC      |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Clini Plus  | SM    |     | 73 | QC      |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Extra       |       |     | 86 | QC      |         |
+---------------+-------------+-------+-----+----+---------+---------+
| []{.mark}     | Gem         |       |     | 2  | QC      |         |
|               |             |       |     | 15 |         |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Les 5       |       |     | 3  | QC      |         |
|               | Saisons     |       |     |    |         |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Loeb        |       |     | 43 | ON      |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Metro       |       |     | 1  | QC      |         |
|               |             |       |     | 79 |         |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Richelieu   |       |     | 89 | QC      |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Service     |       |     | 51 | QC      |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | SOS         |       |     | 76 | QC      |         |
|               | Dépanneur   |       |     |    |         |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Super C     |       |     | 14 | ON/QC   |         |
+---------------+-------------+-------+-----+----+---------+---------+
| **Great       | **All       |       | *   | *  | **ON**  | **      |
| Atlantic      | Banners**   |       | *\$ | *2 |         | Direct, |
| &Pacific      |             |       | 4.4 | 36 |         | Broker, |
| Company**     |             |       | B** | ** |         | and     |
|               |             |       |     |    |         | Distri  |
| **(A&P)**     |             |       |     |    |         | butor** |
+---------------+-------------+-------+-----+----+---------+---------+
|               | A&          | SM/SS |     | 1  | ON      |         |
|               | P/Dominion/ |       |     | 43 |         |         |
|               |             |       |     |    |         |         |
|               | The Barn    |       |     |    |         |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Food Basics | SM    |     | 88 | ON      |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Ultra Food  | SM    |     | 5  | ON      |         |
|               | and Drug    |       |     |    |         |         |
+---------------+-------------+-------+-----+----+---------+---------+
| Overwaitea    | **All       |       | *   | *  | **      | **      |
| Food Group    | Banners**   |       | *\$ | *1 | BC/AB** | Direct, |
|               |             |       | 2.7 | 03 |         | Broker, |
|               |             |       | B** | ** |         | and     |
|               |             |       |     |    |         | Distri  |
|               |             |       |     |    |         | butor** |
+---------------+-------------+-------+-----+----+---------+---------+
| []{.mark}     | Sa          | SM    |     | 65 | BC/AB   |         |
|               | ve-On-Foods |       |     |    |         |         |
+---------------+-------------+-------+-----+----+---------+---------+
| []{.mark}     | Urban Fare  | SM    |     | 2  | BC/AB   |         |
+---------------+-------------+-------+-----+----+---------+---------+
| []{.mark}     | Overwaitea  | SM    |     | 21 | BC      |         |
+---------------+-------------+-------+-----+----+---------+---------+
| []{.mark}     | Cooper's    | SM    |     | 11 | BC      |         |
|               | Foods       |       |     |    |         |         |
+---------------+-------------+-------+-----+----+---------+---------+
| []{.mark}     | PriceSmart  | SM    |     | 3  | BC      |         |
+---------------+-------------+-------+-----+----+---------+---------+
| []{.mark}     | Bulkley     | SM    |     | 1  | BC      |         |
|               | Valley      |       |     |    |         |         |
|               | Wholesale   |       |     |    |         |         |
+---------------+-------------+-------+-----+----+---------+---------+
| Calgary       | **Calgary   | *     | *   | ** | **AB**  | **      |
| Cooperative   | Co-op**     | *SS** | *\$ | 32 |         | Direct, |
| Association   |             |       | 652 | ** |         | Broker, |
| Ltd.          |             |       | M** |    |         | and     |
|               |             |       |     |    |         | Distri  |
|               |             |       |     |    |         | butor** |
+---------------+-------------+-------+-----+----+---------+---------+
| **Thrifty     | **Thrifty   | **SM  | *   | ** | **BC**  | **      |
| Foods**       | Foods**     | /SS** | *\$ | 18 |         | Direct, |
|               |             |       | 360 | ** |         | Broker, |
|               |             |       | M** |    |         | and     |
|               |             |       |     |    |         | Distri  |
|               |             |       |     |    |         | butor** |
+---------------+-------------+-------+-----+----+---------+---------+
| **Buy-Low     | **All       |       | #   | ** | **      | **      |
| Foods**       | Banners**   |       | ### | 20 | BC/AB** | Direct, |
|               |             |       | ### | ** |         | Broker, |
|               |             |       | ##  |    |         | and     |
|               |             |       | N/A |    |         | Distri  |
|               |             |       |     |    |         | butor** |
+---------------+-------------+-------+-----+----+---------+---------+
| []{.mark}     | Giant Foods | SM    |     | 2  | BC      | []      |
|               |             |       |     |    |         | {.mark} |
+---------------+-------------+-------+-----+----+---------+---------+
| []{.mark}     | Shop and    | SM    |     | 2  | BC      | []      |
|               | Save        |       |     |    |         | {.mark} |
+---------------+-------------+-------+-----+----+---------+---------+
| []{.mark}     | Buy-Low     | SM    |     | 14 | BC/AB   |         |
|               | Foods       |       |     |    |         |         |
+---------------+-------------+-------+-----+----+---------+---------+
|               | Budget      | SM    |     | 2  | AB      |         |
+---------------+-------------+-------+-----+----+---------+---------+
| Colemans Food | **Colemans  | *     | #   | ** | **NF**  | **      |
| Centre        | Food        | *SM** | ### | 11 |         | Direct, |
|               | Centre**    |       | ### | ** |         | Broker, |
|               |             |       | ##  |    |         | and     |
|               |             |       | N/A |    |         | Distri  |
|               |             |       |     |    |         | butor** |
+---------------+-------------+-------+-----+----+---------+---------+
| **Commisso's  | *           | **SM  | *   | ** | **ON**  | **      |
| Food Markets  | *Commisso's | /SS** | *N/ | 16 |         | Direct, |
| Ltd.**        | Food        |       | A** | ** |         | Broker, |
|               | Markets**   |       |     |    |         | and     |
|               |             |       |     |    |         | Distri  |
|               |             |       |     |    |         | butor** |
+---------------+-------------+-------+-----+----+---------+---------+
| **R.          | *           | *     | *   | *  | **ON**  | **      |
| Denninger     | *Denniger** | *SM** | *N/ | *7 |         | Direct, |
| Ltd.**        |             |       | A** | ** |         | Broker, |
|               |             |       |     |    |         | and     |
|               |             |       |     |    |         | Distri  |
|               |             |       |     |    |         | butor** |
+---------------+-------------+-------+-----+----+---------+---------+
| **Highland    | **Highland  | *     | *   | *  | **ON**  | **      |
| Farms Inc.**  | Farms**     | *SM** | *N/ | *4 |         | Direct, |
|               |             |       | A** | ** |         | Broker, |
|               |             |       |     |    |         | and     |
|               |             |       |     |    |         | Distri  |
|               |             |       |     |    |         | butor** |
+---------------+-------------+-------+-----+----+---------+---------+
| **L&M Food    | **L&M Food  | *     | *   | *  | **ON**  | **      |
| Markets       | Markets**   | *SM** | *N/ | *5 |         | Direct, |
| Ltd.**        |             |       | A** | ** |         | Broker, |
|               |             |       |     |    |         | and     |
|               |             |       |     |    |         | Distri  |
|               |             |       |     |    |         | butor** |
+---------------+-------------+-------+-----+----+---------+---------+
| **Longo       | **Longo's   | *     | *   | ** | **ON**  | **      |
| Brothers      | Fruit       | *SM** | *N/ | 14 |         | Direct, |
| Fruit Markets | Markets**   |       | A** | ** |         | Broker, |
| Inc.**        |             |       |     |    |         | and     |
|               |             |       |     |    |         | Distri  |
|               |             |       |     |    |         | butor** |
+---------------+-------------+-------+-----+----+---------+---------+
| **Quality     | **Quality   | *     | *   | *  | **BC**  | **      |
| Foods**       | Foods**     | *SM** | *N/ | *8 |         | Direct, |
|               |             |       | A** | ** |         | Broker, |
|               |             |       |     |    |         | and     |
|               |             |       |     |    |         | Distri  |
|               |             |       |     |    |         | butor** |
+---------------+-------------+-------+-----+----+---------+---------+
| **Rabba Fine  | **Rabba     | *     | *   | ** | **ON**  | **      |
| Foods Ltd**   | Fine        | *SM** | *N/ | 25 |         | Direct, |
|               | Foods**     |       | A** | ** |         | Broker, |
|               |             |       |     |    |         | and     |
|               |             |       |     |    |         | Distri  |
|               |             |       |     |    |         | butor** |
+---------------+-------------+-------+-----+----+---------+---------+
| **Kitchen     | **Kitchen   | *     | *   | ** | **ON**  | **      |
| Table**       | Table**     | *SM** | *N/ | 10 |         | Direct, |
|               |             |       | A** | ** |         | Broker, |
|               |             |       |     |    |         | and     |
|               |             |       |     |    |         | Distri  |
|               |             |       |     |    |         | butor** |
+---------------+-------------+-------+-----+----+---------+---------+

Club Warehouse

<table>
<colgroup>
<col style="width: 20%" />
<col style="width: 0%" />
<col style="width: 15%" />
<col style="width: 0%" />
<col style="width: 9%" />
<col style="width: 0%" />
<col style="width: 9%" />
<col style="width: 0%" />
<col style="width: 7%" />
<col style="width: 0%" />
<col style="width: 15%" />
<col style="width: 0%" />
<col style="width: 20%" />
<col style="width: 0%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="2"><strong>Retailer</strong></td>
<td colspan="2"><strong>Primary Banners</strong></td>
<td colspan="2"><strong>Type</strong></td>
<td colspan="2"><p><strong>Sales</strong></p>
<p><strong>(C$)</strong></p></td>
<td colspan="2"><strong>No.</strong></td>
<td colspan="2"><strong>Locations<sup>1</sup></strong></td>
<td colspan="2"><strong>Purchasing Agent Type</strong></td>
</tr>
<tr class="even">
<td><p><strong>Costco Canada Inc.</strong></p>
<p><strong>(Foreign)</strong></p></td>
<td colspan="2"><strong>Costco</strong></td>
<td colspan="2"><strong>WC</strong></td>
<td colspan="2"><p><strong>$3.6 B</strong></p>
<p><strong>Food only</strong></p></td>
<td colspan="2"><strong>60</strong></td>
<td colspan="2"><strong>Across Canada</strong></td>
<td colspan="2"><strong>Direct, Broker, and Distributor</strong></td>
<td></td>
</tr>
<tr class="odd">
<td><p><strong>Sam’s Club</strong></p>
<p><strong>(Foreign)</strong></p></td>
<td colspan="2"><strong>Sam’s Club</strong></td>
<td colspan="2"><strong>WC</strong></td>
<td colspan="2"><p><strong>$240 M</strong></p>
<p><strong>Food only</strong></p></td>
<td colspan="2"><strong>6</strong></td>
<td colspan="2"><strong>ON</strong></td>
<td colspan="2"><strong>Direct, Broker, and Distributor</strong></td>
<td></td>
</tr>
</tbody>
</table>

**Mass Merchandiser**

+---------+------------+-----+-----+----+----------+---------------+
| **Ret   | **Primary  | **  | **S | *  | **Locati | **Purchasing  |
| ailer** | Banners**  | Typ | ale | *N | ons^1^** | Agent Type**  |
|         |            | e** | s** | o. |          |               |
|         |            |     |     | ** |          |               |
|         |            |     | **( |    |          |               |
|         |            |     | C\$ |    |          |               |
|         |            |     | )** |    |          |               |
+---------+------------+-----+-----+----+----------+---------------+
| **W     | **         | **M | *   | *  | **Across | **Direct,     |
| al-Mart | Wal-Mart** | M** | *\$ | *2 | Canada** | Broker, and   |
| Canada  |            |     | 4.0 | 56 |          | Distributor** |
| Inc.**  |            |     | B** | ** |          |               |
|         |            |     |     |    |          |               |
| **(For  |            |     |     |    |          |               |
| eign)** |            |     |     |    |          |               |
+---------+------------+-----+-----+----+----------+---------------+
| **      | *          | **M | *   | *  | **Across | **Direct,     |
| Zellers | *Zellers** | M** | *N/ | *3 | Canada** | Broker, and   |
| Inc.**  |            |     | A** | 15 |          | Distributor** |
|         |            |     |     | ** |          |               |
+---------+------------+-----+-----+----+----------+---------------+
| **No    | **All      |     | *   | *  | **Across | **Direct,     |
| rthwest | Banners**  |     | *\$ | *1 | Canada;  | Broker, and   |
| Co.**   |            |     | 333 | 48 | mostly   | Distributor** |
|         |            |     | M** | ** | in       |               |
|         |            |     |     |    | northern |               |
|         |            |     |     |    | rural    |               |
|         |            |     |     |    | areas.** |               |
+---------+------------+-----+-----+----+----------+---------------+

*All Tables, Canadian Grocer, Who's Who, 2004*

##  B. Convenience Stores and Gas Marts

In Canada, there are approximately 14,700 Convenience Stores and 11,100
Gas Stations with a "C" store attached. Independent owners operate about
60% of all the convenience stores in the country, making the sector an
incredibly competitive one.

Pursuing the growing number of Canadians who look for quick, convenience
food shopping, "C" stores and gas bars are transforming themselves by
merging with other firms to offer dashboard food items such as
sandwiches, hamburgers, subs, coffee, and doughnuts. The specific sector
that has seen the most tangible change is gas marts. They now offer 24
hours a day, seven days per week convenience of a mini grocery store,
some even offering a compact fresh produce section.

**Convenience Retailers in Canada**

+-------------+-------------+-------+----+-----------+---------------+
| *           | **Primary   | **    | ** | **Locat   | **Purchasing  |
| *Retailer** | Banners**   | Sales | No | ions^1^** | Agent Type**  |
|             |             | (C    | ** |           |               |
|             |             | \$)** |    |           |               |
+-------------+-------------+-------+----+-----------+---------------+
| **A         | **All       | **    | *  | **Across  | **Direct,     |
| limentation | Banners**   | \$1.3 | *1 | Canada**  | Broker, and   |
| Couchetard, |             | B**   | ,7 |           | Distributor** |
| Inc**       |             |       | 19 |           |               |
|             |             |       | ** |           |               |
+-------------+-------------+-------+----+-----------+---------------+
|             | Couche-Tard |       | 2  | QC        |               |
|             |             |       | 26 |           |               |
+-------------+-------------+-------+----+-----------+---------------+
|             | Sept-Jours  |       | 1  | QC        |               |
|             |             |       | 43 |           |               |
+-------------+-------------+-------+----+-----------+---------------+
|             | Provi-Soir  |       | 3  | QC        |               |
|             |             |       | 12 |           |               |
+-------------+-------------+-------+----+-----------+---------------+
|             | Winks       |       | 51 | ON, NWT,  |               |
|             |             |       |    | BC        |               |
+-------------+-------------+-------+----+-----------+---------------+
|             | Becker's    |       | 2  | ON        |               |
|             |             |       | 02 |           |               |
+-------------+-------------+-------+----+-----------+---------------+
|             | Daisy Mart  |       | 1  | ON        |               |
|             |             |       | 49 |           |               |
+-------------+-------------+-------+----+-----------+---------------+
|             | Mac's       |       | 5  | Across    |               |
|             |             |       | 67 | Canada    |               |
+-------------+-------------+-------+----+-----------+---------------+
|             | Mike's Mart |       | 69 | ON        |               |
+-------------+-------------+-------+----+-----------+---------------+
| **Avondale  | **All       | ###   | *  | **ON**    | **Direct,     |
| Stores**    | Banners**   | ##### | *1 |           | Broker, and   |
|             |             | # N/A | 19 |           | Distributor** |
|             |             |       | ** |           |               |
+-------------+-------------+-------+----+-----------+---------------+
|             | Avondale    |       | 1  | ON        |               |
|             |             |       | 07 |           |               |
+-------------+-------------+-------+----+-----------+---------------+
|             | Stewart's   |       | 1  | ON        |               |
|             | Farm Market |       |    |           |               |
+-------------+-------------+-------+----+-----------+---------------+
|             | Dollarmart  |       | 9  | ON        |               |
+-------------+-------------+-------+----+-----------+---------------+
|             | Avon-Mart   |       | 2  | ON        |               |
+-------------+-------------+-------+----+-----------+---------------+
| **Canadian  | **Gas       | ###   | *  | **Across  | **Direct,     |
| Tire Co.**  | Bars**      | ##### | *2 | Canada**  | Broker, and   |
|             |             | # N/A | 07 |           | Distributor** |
|             |             |       | ** |           |               |
+-------------+-------------+-------+----+-----------+---------------+
| **Farah     | **All       | **    | *  | **ON**    | **Direct,     |
| Foods       | Banners**   | N/A** | *1 |           | Broker, and   |
| Ltd.**      |             |       | 76 |           | Distributor** |
|             |             |       | ** |           |               |
+-------------+-------------+-------+----+-----------+---------------+
|             | Farah Foods |       | 14 | ON        |               |
+-------------+-------------+-------+----+-----------+---------------+
|             | Hasty       |       | 99 | ON        |               |
|             | Markets     |       |    |           |               |
+-------------+-------------+-------+----+-----------+---------------+
|             | Min-A-Mart  |       | 43 | ON        |               |
+-------------+-------------+-------+----+-----------+---------------+
|             | Associates  |       | 20 | ON        |               |
+-------------+-------------+-------+----+-----------+---------------+
| **Fas Gas   | **All       | **    | *  | **Western | **Direct,     |
| Oil**       | Banners**   | N/A** | *3 | Canada**  | Broker, and   |
|             |             |       | 89 |           | Distributor** |
|             |             |       | ** |           |               |
+-------------+-------------+-------+----+-----------+---------------+
|             | Short Stop  |       | 24 | AB        |               |
+-------------+-------------+-------+----+-----------+---------------+
|             | Other Fas   |       | 3  | Western   |               |
|             | Oil, Race   |       | 65 | Canada    |               |
|             | Track Fuels |       |    |           |               |
|             | and Great   |       |    |           |               |
|             | Northern    |       |    |           |               |
|             | Oil         |       |    |           |               |
+-------------+-------------+-------+----+-----------+---------------+
| **Good      | **Good      | **    | ** | **NF**    | **Direct,     |
| Neighbor    | Neighbors** | N/A** | 84 |           | Broker, and   |
| Stores**    |             |       | ** |           | Distributor** |
+-------------+-------------+-------+----+-----------+---------------+
| **Husky Oil | **All       | *     | *  | **Centra  | **Direct,     |
| Marketing   | Banners**   | *\$26 | *2 | l/Western | Broker, and   |
| Co.**       |             | M**   | 62 | Canada**  | Distributor** |
|             |             |       | ** |           |               |
+-------------+-------------+-------+----+-----------+---------------+
|             | Stop 'n     |       | 56 | BC/AB     |               |
|             | Shop        |       |    | /AK/MB/ON |               |
+-------------+-------------+-------+----+-----------+---------------+
|             | Other       |       | 2  | BC/AB/SK  |               |
|             |             |       | 06 | /MB/ON/YK |               |
+-------------+-------------+-------+----+-----------+---------------+
| **Imperial  | **All       | **    | *  | **Across  | **Direct,     |
| Oil**       | Banners**   | N/A** | *7 | Canada**  | Broker, and   |
|             |             |       | 07 |           | Distributor** |
|             |             |       | ** |           |               |
+-------------+-------------+-------+----+-----------+---------------+
|             | On the Run  |       | 1  | Across    |               |
|             |             |       | 47 | Canada    |               |
+-------------+-------------+-------+----+-----------+---------------+
|             | Tiger       |       | 2  | Across    |               |
|             | Express     |       | 86 | Canada    |               |
+-------------+-------------+-------+----+-----------+---------------+
|             | Other       |       | 2  | Across    |               |
|             |             |       | 74 | Canada    |               |
+-------------+-------------+-------+----+-----------+---------------+
| **Irving    | **Stores    | ###   | *  | **Q       | **Direct,     |
| Convenience | with Irving | ##### | *2 | C/Eastern | Broker, and   |
| Stores**    | Gas Bars**  | # N/A | 30 | Canada**  | Distributor** |
|             |             |       | ** |           |               |
+-------------+-------------+-------+----+-----------+---------------+
| **Land's    | **Happy     | **    | *  | **AB**    | **Direct,     |
| Happy Marts | Mart**      | \$9.2 | *6 |           | Broker, and   |
| Ltd.**      |             | M**   | ** |           | Distributor** |
+-------------+-------------+-------+----+-----------+---------------+
| **Little    | **Little    | **    | ** | **ON**    | **Direct,     |
| Short Stop  | Short       | N/A** | 35 |           | Broker, and   |
| Stores      | Stop**      |       | ** |           | Distributor** |
| Ltd.**      |             |       |    |           |               |
+-------------+-------------+-------+----+-----------+---------------+
| **North     | **          |       | *  | **MB/N    | **Direct,     |
| West Co.**  | Quickstop** |       | *6 | F/ON/NV** | Broker, and   |
|             |             |       | ** |           | Distributor** |
+-------------+-------------+-------+----+-----------+---------------+
| **P         | **          | **    | *  | **Across  | **Direct,     |
| etro-Canada | SuperStop** | N/A** | *1 | Canada**  | Broker, and   |
| C-Store     |             |       | ,5 |           | Distributor** |
| Division**  |             |       | 01 |           |               |
|             |             |       | ** |           |               |
+-------------+-------------+-------+----+-----------+---------------+
| **Pronto    | **Pronto**  | **    | ** | **ON**    | **Direct,     |
| Food        |             | N/A** | 28 |           | Broker, and   |
| Marts**     |             |       | ** |           | Distributor** |
+-------------+-------------+-------+----+-----------+---------------+
| **Quickie   | **Quickie** | **    | ** | **ON/QC** | **Direct,     |
| Co          |             | N/A** | 40 |           | Broker, and   |
| nvenience** |             |       | ** |           | Distributor** |
+-------------+-------------+-------+----+-----------+---------------+
| **Red       | **Red       | *     | ** | **NF**    | **Direct,     |
| Circle**    | Circle**    | *\$25 | 57 |           | Broker, and   |
|             |             | M**   | ** |           | Distributor** |
+-------------+-------------+-------+----+-----------+---------------+
| **7-Eleven  | *           | **\$1 | *  | **BC/MB/S | **Direct,     |
| Inc.        | *7-Eleven** | B**   | *4 | K/ON/AB** | Broker, and   |
| (Foreign)** |             |       | 91 |           | Distributor** |
|             |             |       | ** |           |               |
+-------------+-------------+-------+----+-----------+---------------+
| **Shell     | **All       | **    | *  | **Across  | **Direct,     |
| Canada      | Banners**   | N/A** | *4 | Canada**  | Broker, and   |
| Ltd.**      |             |       | 44 |           | Distributor** |
|             |             |       | ** |           |               |
+-------------+-------------+-------+----+-----------+---------------+
|             | Select      |       | 2  | Across    |               |
|             |             |       | 62 | Canada    |               |
+-------------+-------------+-------+----+-----------+---------------+
|             | Turbo Mini  |       | 81 | BC        |               |
|             | Convenience |       |    | /AB/SK/MB |               |
+-------------+-------------+-------+----+-----------+---------------+
|             | Payless     |       | 37 | BC        |               |
|             | Convenience |       |    |           |               |
+-------------+-------------+-------+----+-----------+---------------+
|             | Beaver Gas  |       | 64 | ON        |               |
|             | Bar         |       |    |           |               |
+-------------+-------------+-------+----+-----------+---------------+
| **Sobeys    | **All       | **    | *  | **Q       | **Direct,     |
| Inc.**      | Banners**   | N/A** | *2 | C/Eastern | Broker, and   |
|             |             |       | 25 | Canada**  | Distributor** |
|             |             |       | ** |           |               |
+-------------+-------------+-------+----+-----------+---------------+
|             | Needs       |       | 1  | NB/       |               |
|             |             |       | 28 | NS/PEI/NF |               |
+-------------+-------------+-------+----+-----------+---------------+
|             | Marche      |       | 97 | QC        |               |
|             | Bonichoix   |       |    |           |               |
+-------------+-------------+-------+----+-----------+---------------+

*Canadian Grocer, Who's Who, 2004*

**^1^**

**Abbreviations:**

> NB: New Brunswick
>
> NF: New Found land
>
> NS: Nova Scotia
>
> PEI: Prince Edward Island
>
> BC: British Columbia
>
> NWT: Northwest Territories
>
> ON: Ontario
>
> QC: Quebec
>
> Prairies: Manitoba (MB) and Saskatchewan (ST)
>
> AB: Alberta

# SECTION III. FOOD IMPORTS AND COMPETITION

Canada imported a total of C\$ 20.4 billion of Agri-Food products in
FY2004. Undoubtedly, the U.S. holds the largest market share of Canadian
imports, with an impressive 60.3% by value. Following far behind are the
EU (13.2%), Mexico (2.9%), Brazil (2.1%), and China (1.7%). It is
important to mention that many of these countries, with the exception of
China, increased their food exports to Canada significantly compared to
2003 volumes. The U.S. and Brazil experienced decreases of 2.6% and
2.5%, respectively and China increased by 7.4%.

> ![](media/image5.wmf) *Agriculture and Agri-Food Canada*
>
> Six food categories represented 53% of total Agri-Food products
> imported by Canada by value in FY2004. A) Fruit and Nuts, B)
> Beverages, Spirits, and Vinegar, C) Edible Vegetables, D) Preparations
> of Grains and Pasta, E) Preparations of Vegetables, Fruits, and Nuts,
> and F) Meats and Edible Offal.

## Top Agri-Food Imports, 2004

Key World Suppliers

<table>
<colgroup>
<col style="width: 19%" />
<col style="width: 11%" />
<col style="width: 9%" />
<col style="width: 6%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 12%" />
<col style="width: 4%" />
<col style="width: 12%" />
<col style="width: 4%" />
</colgroup>
<tbody>
<tr class="odd">
<td><h6 id="product">Product</h6></td>
<td><strong>Total</strong></td>
<td colspan="8"><strong>Suppliers</strong></td>
</tr>
<tr class="even">
<td><strong> </strong></td>
<td><strong>Imports</strong></td>
<td colspan="2"><em><strong>U.S.A.</strong></em></td>
<td colspan="2"><em><strong>Mexico</strong></em></td>
<td colspan="2"><em><strong>Brazil</strong></em></td>
<td colspan="2"><em><strong>China</strong></em></td>
</tr>
<tr class="odd">
<td> </td>
<td>CAN$</td>
<td>CAN$</td>
<td>%</td>
<td>CAN$</td>
<td>%</td>
<td>CAN$</td>
<td>%</td>
<td>CAN$</td>
<td>%</td>
</tr>
<tr class="even">
<td><h2 id="fruit-and-nuts">Fruit and Nuts</h2></td>
<td>2.6 B</td>
<td>1.4 B</td>
<td>53.8</td>
<td>144 M</td>
<td>5.5</td>
<td>39.7 M</td>
<td>1.5</td>
<td>52.3 M</td>
<td>2</td>
</tr>
<tr class="odd">
<td><h2 id="beverages-spirits-vinegar">Beverages, Spirits &amp;
Vinegar</h2></td>
<td>2.5 B</td>
<td>650 M</td>
<td>26.0</td>
<td>114 M</td>
<td>4.60</td>
<td>20.6 M</td>
<td>0.8</td>
<td>4.1 M</td>
<td>0.2</td>
</tr>
<tr class="even">
<td><strong>Edible Vegetables</strong></td>
<td>1.8 B</td>
<td>1.4 B</td>
<td>76.0</td>
<td>253 M</td>
<td>13.80</td>
<td>0.73 M</td>
<td>4.0</td>
<td>41 M</td>
<td>2.2</td>
</tr>
<tr class="odd">
<td><strong>Preparations of Grains &amp; Pasta</strong></td>
<td>1.6 B</td>
<td>1.3 B</td>
<td>81.0</td>
<td>5 M</td>
<td>0.30</td>
<td>1.1 M</td>
<td>0.1</td>
<td>28 M</td>
<td>1.8</td>
</tr>
<tr class="even">
<td><strong>Preparations of</strong></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td><strong>Vegetables, Fruits &amp; Nuts</strong></td>
<td>1.3 B</td>
<td>860 M</td>
<td>66.0</td>
<td>23 M</td>
<td>1.80</td>
<td>71.5 M</td>
<td>5.5</td>
<td>68.7 M</td>
<td>5.3</td>
</tr>
<tr class="even">
<td><strong>Meats &amp; Edible Offal</strong></td>
<td>1.1 B</td>
<td>670 M</td>
<td>61.0</td>
<td>-</td>
<td>-</td>
<td>150,000</td>
<td>0.1</td>
<td>150,000</td>
<td>0.1</td>
</tr>
</tbody>
</table>

*Agriculture and Agri-Food Canada*

Canadians enjoy their fruits and vegetables. In 2003 and 2004 Canadians
consumed 178 kg and 133 kg per capita, respectively. A short growing
season means that Canada must rely on imports of fruits, vegetables and
nuts to meet demand. These products represent some of the best
opportunities for U.S. firms, particularly if they meet the convenience
factor in demand by Canadian consumers. An example of this is pre-cut
fresh fruits and salad-kits that can be consumed with minimum or no
preparation.

In the table above, cereal products are the third food category most
consumed by Canadians. As well as with other food items and reflecting
their health concerns, consumers are looking for cereals with whole
grains, high fiber, and low sugar contents.

Holding only 26% of total imports of the beverages, spirits, and vinegar
group, the U.S. is well positioned to increase its market share in this
category. Power drinks are just one of the many items being increasingly
consumed by Canadians, creating opportunities for U.S. beverage
manufacturing firms.

## Per Capita Food Consumption in Kgs, 2004

  ----------------------------------------------------------- -----------
  Vegetables (fresh equivalent weight)                        178

  Fruit (fresh equivalent weight)                             133

  Cereal Products                                             91

  Meat (carcass weight equivalent)                            61

  Sugar and Syrups                                            36

  Poultry (eviscerated weight)                                36

  Oils and Fats                                               31

  Fish (edible weight)                                        9
  ----------------------------------------------------------- -----------

*Statistics Canada*

# SECTION IV. BEST PRODUCT PROSPECTS

### 

## Products Present in the Market with Good Sales Potential

Only one quarter of Canadian families eat a homemade meal made from
scratch every day, compared to half of Canadian families in 1992. With
average meal preparation time now is 15 to 30 minutes versus the 45
minutes it was 10 years ago. This trend is paving the way for many
ready-to-eat home meal replacement (HMR) occasions.

Another evidence that Canadians are transforming the way they eat is the
value represented by sales of the top six HMR categories, a) frozen and
refrigerated pizza, b) frozen main meal dinners and entrees, c)
prepackaged fresh cut salads, d) dry packaged dinners, e) canned,
condensed soup and broth, and f) ready to eat condensed soup. In the
12-month period ending August 2005, it is reported that Canadian
consumers spent close to C\$2 billion.

## Home Meal Replacement Sales, All Categories

**National -- Grocery -- 52 Wks to Aug, 2005**

  ---------------- ---------- ---------- ---------- -------------- --------------
                                                    **Dollar       **Dollar
                                                    Sales**        Sales**

                                                    **C\$**        **% Change**

  **Frozen &                             ** **      499,325,376    \+ 8 %
  Refrigerated                                                     
  Pizza**                                                          

  **Frozen Main                                     473,178,841    \- 1 %
  Meal Dinners &                                                   
  Entrees**                                                        

  **Prepackaged                                     306,285,320    \+ 13 %
  Fresh Cut                                                        
  Salad**                                                          

  **Dry Packaged                         ** **      298,984,324    \+ 1 %
  Dinners\***                                                      

  **Canned                                          235,713,573    \+ 2 %
  Condensed Soup &                                                 
  Broth**                                                          

  **Ready to Serve                                  177,594,852    \+ 3 %
  Condensed Soup**                                                 

  **Dry Packaged                         ** **      84,501,594     \- 5 %
  Soup**                                                           

  **Soft                      ** **      ** **      81,627,461     \+ 18 %
  Tortillas\***                                                    

  **Frozen Pizza                         ** **      79,848,154     \+ 3 %
  Snacks**                                                         

  **Canned Pasta**            ** **      ** **      64,033,949     \- 4 %

  **Refrigerated              ** **      ** **      55,196,556     \+ 9 %
  Pasta**                                                          

  **Mexican Dinner                       ** **      31,972,987     \+ 12 %
  Kits\***                                                         

  **Hard Taco                 ** **      ** **      9,624,321      \+ 3 %
  Shells\***                                                       
  ---------------- ---------- ---------- ---------- -------------- --------------

*Canadian Grocer and ACNielsen Market Track, 2005*

*\* Includes Grocery plus Mass Merchandisers*

U.S. food manufacturers interested in the Canadian retail food sector
must be aware of the changes in life styles and purchasing habits
consumers are experiencing. Grocery shoppers are becoming older and more
ethnically diverse. They also continue to demand more nutritious food
products that make their lives easier.

To take advantage of the opportunities that exist in the Canadian retail
food market, U.S. exporters must pay close attention to constant changes
in consumption patterns, manufacturing pioneering, and totally original
products that bring above all, convenience and value.

# SECTION V. CONTACTS AND FURTHER INFORMATION

**Government**

+----------------------+-----------------------------------------------+
| **Agriculture and    | Agriculture and Agri-Food Canada\             |
| Agri-Food Canada**   | Sir John Carling Building\                    |
|                      | 930 Carling Ave.\                             |
|                      | Ottawa, ON K1A 0C5                            |
|                      |                                               |
|                      | Tel.: (613) 759-1000\                         |
|                      | Fax: (613) 759-6726\                          |
|                      | Email: <info@agr.gc.ca>                       |
|                      |                                               |
|                      | Web: [www.agr.gc.ca](http://www.agr.gc.ca/)   |
+----------------------+-----------------------------------------------+
| **Statistics         | Statistical Reference Centre (National        |
| Canada**             | Capital Region)\                              |
|                      | R.H. Coats Building, Lobby\                   |
|                      | Holland Ave.\                                 |
|                      | Ottawa, ON K1A 0T6                            |
|                      |                                               |
|                      | Tel: (613) 951-8116                           |
|                      |                                               |
|                      | Email:                                        |
|                      | [infostats@statcan.ca](http:/                 |
|                      | /www.statcan.ca/cgi-bin/COMMENTS/taloncomment |
|                      | .pl?referer=http://www.statcan.ca/start.html) |
|                      |                                               |
|                      | Web: [www.statcan.ca](http://www.statcan.ca/) |
+----------------------+-----------------------------------------------+
| **Department of      | > Department of Foreign Affairs and           |
| Foreign Affairs and  | > International Trade\                        |
| International        | > 125 Sussex Dr.\                             |
| Trade**              | > Ottawa, ON K1A 0G2                          |
|                      | >                                             |
|                      | > Tel: (613) 944-4000                         |
|                      | >                                             |
|                      | > Fax: (613) 996-9709                         |
|                      | >                                             |
|                      | > Email: <enqserv@dfait-maeci.gc.ca>          |
|                      |                                               |
|                      | Web:                                          |
|                      | [www.dfai                                     |
|                      | t-maeci.gc.ca](http://www.dfait-maeci.gc.ca/) |
+----------------------+-----------------------------------------------+
| **Canada Customs and | Commissioner of the CCRA\                     |
| Revenue Agency**     | 555 Mackenzie Ave., 6th Floor\                |
|                      | Ottawa ON K1A 0L5                             |
|                      |                                               |
|                      | Tel: (613) 952-3741                           |
|                      |                                               |
|                      | Fax: (613) 941-2505                           |
|                      |                                               |
|                      | Web:                                          |
|                      | [www.                                         |
|                      | ccra-adrc.gc.ca](http://www.ccra-adrc.gc.ca/) |
+----------------------+-----------------------------------------------+
| **Industry Canada**  | Enquiry Services\                             |
|                      | Communications and Marketing Branch, Industry |
|                      | Canada\                                       |
|                      | C.D. Howe Building, Second Floor, West Tower\ |
|                      | 235 Queen St. Ottawa ON K1A 0H5               |
|                      |                                               |
|                      | Tel: (613) 947-7466                           |
|                      |                                               |
|                      | Fax: (613) 954-6436**\                        |
|                      | **Email: strategis@ic.gc.ca                   |
|                      |                                               |
|                      | Web: [www.ic.gc.ca](http://www.ic.gc.ca/)     |
+----------------------+-----------------------------------------------+
| **Canadian Food      | Canadian Food Inspection Agency\              |
| Inspection Agency**  | 59 Camelot Dr.\                               |
|                      | Ottawa, ON K1A 0Y9                            |
|                      |                                               |
|                      | Tel: (613) 225-2342\                          |
|                      | Fax: (613) 228-6125                           |
|                      |                                               |
|                      | Email:                                        |
|                      | [cfia                                         |
|                      | master@inspection.gc.ca](http://www.inspectio |
|                      | n.gc.ca/english/tools/feedback/commene.shtml) |
|                      |                                               |
|                      | Web:                                          |
|                      | [www.in                                       |
|                      | spection.gc.ca](http://www.inspection.gc.ca/) |
+----------------------+-----------------------------------------------+
| **Health Canada**    | Health Canada\                                |
|                      | A.L. 0900C2\                                  |
|                      | Ottawa, ON K1A 0K9\                           |
|                      | Tel: (613) 957-2991\                          |
|                      | Fax: (613) 941-5366                           |
|                      |                                               |
|                      | Email: <info@hc-sc.gc.ca>                     |
|                      |                                               |
|                      | Web:                                          |
|                      | [www.hc-sc.gc.ca](http://www.hc-sc.gc.ca/)    |
+----------------------+-----------------------------------------------+

**Industry**

+-----------------------+----------------------------------------------+
| **Canadian Federation | Canadian Federation of Independent Grocers   |
| of Independent        |                                              |
| Grocers**             | 2235 Sheppard Ave. East, Suite 902           |
|                       |                                              |
|                       | Willowdale, ON M2J 5B5                       |
|                       |                                              |
|                       | > Tel: (416) 492-2311                        |
|                       |                                              |
|                       | Fax: (416) 492-2347                          |
|                       |                                              |
|                       | Email: info@cfig.ca                          |
|                       |                                              |
|                       | Web: [www.cfig.ca](http://www.cfig.ca/)      |
+-----------------------+----------------------------------------------+
| **Canadian Council of | Canadian Council of Grocery Distributors     |
| Grocery               |                                              |
| Distributors**        | Place du Parc\                               |
|                       | 300 Léo Pariseau, Suite 1101\                |
|                       | Montréal, Québec H2X 4B3\                    |
|                       | Tel: (514) 982-0267\                         |
|                       | Fax: (514) 982-0659                          |
|                       |                                              |
|                       | Email:                                       |
|                       | [                                            |
|                       | webmaster@ccgd.ca](mailto:kmckinnon@ccgd.ca) |
|                       |                                              |
|                       | Web: www.ccgd.ca                             |
+-----------------------+----------------------------------------------+
| **Canadian Produce    | Canadian Produce Marketing Association       |
| Marketing Association |                                              |
| (CPMA)**              | 9 Corvus Court                               |
|                       |                                              |
|                       | Ottawa, ON K2E 7Z4                           |
|                       |                                              |
|                       | Tel: (613) 226-4187                          |
|                       |                                              |
|                       | Email: <question@cpma.ca>                    |
|                       |                                              |
|                       | Web: www.cpma.ca                             |
+-----------------------+----------------------------------------------+
| **Fruit and Vegetable | Fruit and Vegetable Dispute Resolution       |
| Dispute Resolution    | Corporation                                  |
| Corporation (FVDRC)** |                                              |
|                       | Building 75, Central Experimental Farm\      |
|                       | 930 Carling Avenue\                          |
|                       | Ottawa, ON K1A 0C6\                          |
|                       | Tel: 613 234-0982\                           |
|                       | Fax: 613 234-8036\                           |
|                       | E-mail: <info@fvdrc.com>                     |
|                       |                                              |
|                       | Web: www.fvdrc.com                           |
+-----------------------+----------------------------------------------+
| **Food and Consumer   | Food and Consumer Product Manufactures of    |
| Product Manufactures  | Canada                                       |
| of Canada**           |                                              |
|                       | 885 Don Mills Rd. Ste. 301                   |
|                       |                                              |
|                       | Toronto, ON M3C 1V9                          |
|                       |                                              |
|                       | Tel: (416) 510-8024                          |
|                       |                                              |
|                       | Fax: (416) 510-8043                          |
|                       |                                              |
|                       | Email: <info@fcpmc.com>                      |
|                       |                                              |
|                       | Web: [www.fcpmc.com](http://www.fcpmc.com/)  |
+-----------------------+----------------------------------------------+
| **ACNielsen Canada**  | ACNielsen Canada                             |
|                       |                                              |
|                       | 160 McNabb Street                            |
|                       |                                              |
|                       | Markham, ON L3R 4B8                          |
|                       |                                              |
|                       | Tel: (905) 475-3344                          |
|                       |                                              |
|                       | Fax: (905) 475-8357                          |
|                       |                                              |
|                       | Web:                                         |
|                       | [www.acnielsen.ca](http://www.acnielsen.ca/) |
+-----------------------+----------------------------------------------+

**Industry Publications**

+-----------------------+----------------------------------------------+
| **Food in Canada**    | Food in Canada\                              |
|                       | Rogers Media\                                |
|                       | One Mount Pleasant Rd., 7th Floor            |
|                       |                                              |
|                       | Toronto, ON M4Y 2Y5                          |
|                       |                                              |
|                       | Tel: (416) 764-1502\                         |
|                       | Fax: (416) 764-1755                          |
|                       |                                              |
|                       | Email: <seagle@rmpublishing.com>             |
|                       |                                              |
|                       | Web:                                         |
|                       | [www.bizlink.co                              |
|                       | m/food.htm](http://www.bizlink.com/food.htm) |
+-----------------------+----------------------------------------------+
| **Canada Grocer**     | Canadian Grocer                              |
|                       |                                              |
|                       | Rogers Media                                 |
|                       |                                              |
|                       | One Mount Pleasant Rd.                       |
|                       |                                              |
|                       | Toronto, ON M4Y 2Y5                          |
|                       |                                              |
|                       | Tel: 1-800-268-9119                          |
|                       |                                              |
|                       | Fax: (416) 764-1523                          |
|                       |                                              |
|                       | Email:                                       |
|                       | <jerry.tutunjian@canadiangrocer.rogers.com>  |
|                       |                                              |
|                       | Web:                                         |
|                       | [www.bizlink.com/cangroce                    |
|                       | r.htm](http://www.bizlink.com/cangrocer.htm) |
+-----------------------+----------------------------------------------+
| **Foodservice and     | Foodservice and Hospitality                  |
| Hospitality**         |                                              |
|                       | 101-23 Lesmill Road\                         |
|                       | Don Mills, ON M3B 3P6\                       |
|                       | Tel: (416) 447-0888\                         |
|                       | Fax: (416) 447-5333                          |
|                       |                                              |
|                       | Email: <rcaira@foodservice.ca>               |
|                       |                                              |
|                       | Web:                                         |
|                       | [www.foods                                   |
|                       | ervice.ca](http://www.foodserviceworld.com/) |
+-----------------------+----------------------------------------------+
| **C-Store Canada**    | C-Store Canada                               |
|                       |                                              |
|                       | 1839 Inkster Blvd.                           |
|                       |                                              |
|                       | Winnipeg, MB R2X 1R3                         |
|                       |                                              |
|                       | Tel: (204) 954-2085                          |
|                       |                                              |
|                       | Fax: (204) 954-2057                          |
|                       |                                              |
|                       | Email: <mp@mercury.mb.ca>                    |
|                       |                                              |
|                       | Web:                                         |
|                       | [ww                                          |
|                       | w.mercury.mb.ca](http://www.mercury.mb.cal/) |
+-----------------------+----------------------------------------------+
| **Western Grocer**    | Western Grocer                               |
|                       |                                              |
|                       | 1839 Inkster Blvd.                           |
|                       |                                              |
|                       | Winnipeg, MB R2X 1R3                         |
|                       |                                              |
|                       | Tel: (204) 954-2085                          |
|                       |                                              |
|                       | Fax: (204) 954-2057                          |
|                       |                                              |
|                       | Email: <mp@mercury.mb.ca>                    |
|                       |                                              |
|                       | Web:                                         |
|                       | [ww                                          |
|                       | w.mercury.mb.ca](http://www.mercury.mb.cal/) |
+-----------------------+----------------------------------------------+

USDA/Foreign Agricultural Service endorses and organizes a U.S. pavilion
at SIAL Montreal every other year. The next SIAL Montreal show is
scheduled for March 28-30, 2007.

Another trade show USDA/FAS endorses is The Canadian International Food
& Beverage Show. This show takes place every year in February. The next
CF&BS will take place February 19-21, 2006.

For further information please contact the Office of Agricultural
Affairs, U.S. Embassy, Canada, P.O. Box 5000, Ogdensburg, NY 13669-0430,
telephone 613-688-5267, fax 613-688-3124, email <agottawa@usda.gov>

Gary C. Groves, Minister-Counselor for Agricultural Affairs

Lisa Anderson, Agricultural Attache

George C. Myles, Senior Agricultural Specialist

Christina Patterson, Agricultural Specialist

Marilyn Bailey, Marketing Specialist

Alejandro Gonzalez, Marketing Specialist

Joyce Gagnon, Administrative Assistant