Required Report - public distribution

**Date:** 12/12/2005

**GAIN Report Number:** MO5025

MO5025

**Morocco**

**Retail Food Sector**

**Report**

**2005**

**Approved by:**

![](media/image1.wmf)Michael J. Fay

U.S. Embassy, Rabat, Morocco

**Prepared by:**

Aziz Abdelali

**Report Highlights:**

Modern distribution channels continue to develop in Morocco and are
changing buying habits of Moroccan consumers especially in major cities.
This trend is likely to continue, especially through the opening of
smaller convenience stores. Importers continue to play a major role in
introducing, distributing and promoting imported products in Morocco
including in large supermarket chains.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Rabat \[MO1\]

\[MO\]

# Table of Contents

# 

[**SECTION 1. MARKET SUMMARY 3**](#section-1.-market-summary)

[Major Categories of supermarkets 3](#major-categories-of-supermarkets)

[Trend in distribution channels 3](#trend-in-distribution-channels)

[Trend in services offered by retailers
4](#trend-in-services-offered-by-retailers)

[Large Supermarkets 4](#large-supermarkets)

[Mom & Pop Stores 5](#mom-pop-stores)

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

[A1. Large Retail and Wholesale Supermarkets
6](#a1.-large-retail-and-wholesale-supermarkets)

[A2. Small Retail Supermarkets, Convenience Stores, Large Grocery Stores
9](#a2.-small-retail-supermarkets-convenience-stores-large-grocery-stores)

[Gas Marts 12](#gas-marts)

[C. Traditional Markets - \"Mom & Pop\" Small Independent Grocery Stores
13](#c.-traditional-markets---mom-pop-small-independent-grocery-stores)

[SECTION III. COMPETITION 14](#section-iii.-competition)

[SECTION IV. BEST PRODUCTS PROSPECTS
14](#section-iv.-best-products-prospects)

[SECTION V. POST CONTACT AND FURTHER INFORMATION
15](#section-v.-post-contact-and-further-information)

# SECTION 1. MARKET SUMMARY

The Moroccan retail food sector developed significantly over the past
ten years, as modern and large supermarkets opened in major cities and
have been increasingly changing the purchasing habits of a large base of
urban consumers throughout Morocco. That said, traditional small grocery
stores, because of their proximity and convenience, will continue to
play a major role in most parts of the large cities, but especially in
rural areas and small cities where 45 percent of Moroccans live.

The early advent of large supermarkets to Casablanca, Rabat, and
Marrakech reflects the concentration of high-income population in these
cities. Currently, large supermarkets have opened in virtually all-major
cities (including Agadir, Tangiers, Fes, Meknes, Mohamedia) and more are
being opened in even smaller cities (such as Beni Mellal and Tetouan)
providing alternatives to traditional buying habits of relatively lower
income groups.

Casablanca has an estimated population of 4.0 million and is considered
as the economic capital of Morocco with the largest concentration of
high-income consumers. Rabat, at about 1 hour north of Casablanca, has
about 1 million people with a large number of high-ranking government
employees, foreign missions, and international organizations that can be
targeted with modern distribution chains. Marrakech is by far the
leading destination for tourists and has been growing at a remarkably
fast rate because many high-income Moroccans and Europeans consider it
as the choice destination for holidays.

European multinationals (mostly French, but also Dutch wholesale
distributions) have invested heavily in the Moroccan modern distribution
chain. They brought know-how in supermarket management that Moroccan
investors lack. They are increasingly consolidating purchases (food and
non-food) in centralized purchasing departments in Europe. This will
likely present a challenge to U.S. origin products especially if they
continue to increase imports under their private label.

In the medium term, importers will continue to play a major role in
distributing and promoting imported products in Morocco. Typically, they
have their own sales agents and distribution fleet and are in direct
contact with large supermarkets, wholesalers, and in many cases with
large grocery stores as well. Some importers are involved in imports of
a wide range of products with no particular loyalty to a specific
product, brand or origin. Other importers are working exclusively to
develop markets for specific labels. As these importers tend to promote
their products more heavily, they may require more involvement from the
exporter.

## Major Categories of supermarkets

For imported products, the Moroccan food distribution sector can be
divided into four major categories:

-   Large modern retail and wholesale supermarkets chains.

-   Small supermarkets, convenience supermarkets, large self-service
    grocery stores.

-   Mom & Pop stores.

Imported products usually don't reach the open-air markets that exist
mostly in rural areas where the lower income segment of the population
lives.

## Trend in distribution channels

Although small mom & pop shops will continue to play a major role in the
food distribution in the medium term, the number of supermarkets is
likely to continue to grow in the cities because of:

-   A growing large base of western-minded consumers, especially in
    urban areas.

-   A growing middle class where both parents are working and less time
    is available for shopping for food.

-   The aggressive promotion, the appealing prices and discounts, and
    the wide range of products offered by large supermarkets are likely
    to enlarge the consumer base by attracting even lower-income
    consumers.

-   The increasing acceptance by the Moroccan consumer of processed and
    packaged products. Many products traditionally sold in bulk are now
    readily purchased in packages. Also, many consumers are more willing
    to buy from supermarkets because of the generally guaranteed hygiene
    and quality.

## Trend in services offered by retailers

Large supermarkets in Morocco tend to be located in small malls that
include a large number of European and U.S. franchises for fast food,
textiles, shoes, quick car repairs, banks, and car services. The number
of adjacent shops varies from 10 to 25 and is meant primarily to attract
a large number of visitors. Large supermarkets that opened recently
allocate a relatively large space for ready-to-eat food, which is rather
unusual in Moroccan supermarkets.

In many cities, the lack of adequate entertainment and amusement sites
draws many Moroccan families to visit supermarkets to roam around where
they often end-up buying or at least are exposed to new products.

[In spite of the dramatic increase in use of Internet by the Moroccan
communities, Internet sales of food products are virtually non-existent
in Morocco. Currently, there are virtually no offers made on a regular
basis by food companies and payments procedure via Internet are not yet
well developed. Today there are an estimated 4 million Internet users in
Morocco of which only some 226,000 are subscribed to an internet
provider. The remaining users have access to internet typically in Cyber
Café.]{.mark}

###### Number and Type of Retail Outlets in Morocco

+------------------------------+---------+----------------------------+
| **Type of Store**            | **Esti  | **Identified Supermarket** |
|                              | mated** |                            |
|                              |         | **Locations**              |
|                              | **N     |                            |
|                              | umber** |                            |
+------------------------------+---------+----------------------------+
| # Large Supermarkets         | 22      | Casablanca-4, Rabat-4,     |
|                              |         | Marrakech-3, Agadir-2,     |
| (Including Independent)      |         | Fes-2, Tanger-1, Mohamedia |
|                              |         | 1, Tetouan-1, Kenitra-2,   |
| 12-32 registers, over 500    |         | Tetouan-1, Tanger-1        |
| parking spots, Over 40,000   |         |                            |
| ft^2^                        |         |                            |
+------------------------------+---------+----------------------------+
| **Small Supermarket &        | 46      | Casablanca-18, Rabat-7,    |
| Convenience Stores**:        |         |                            |
|                              | 180     | Agadir-4, etc.             |
| 1\. Small Supermarket &      |         |                            |
| Convenience Stores (\> 3     |         | Casablanca-70,             |
| registers, \>12,000 ft^2^)   |         | Marrakech-15, Rabat-10,    |
|                              |         | Agadir-7, Meknes-6,        |
| 2\. Small Self-Service       |         |                            |
| Grocery Stores (2 registers, |         | etc.                       |
| \> 1000 ft^2^)               |         |                            |
+------------------------------+---------+----------------------------+
| # Mom & Pop Stores           | 500     | Estimated 13,000 in        |
|                              |         | Casablanca                 |
| 1\. 1000 ft^2^               | 4,500   |                            |
|                              |         | Marrakech, Casablanca,     |
| 2\. 226 -- 1000 ft^2^        | 40,000  |                            |
|                              |         | Agadir, Rabat and          |
| 3.  Less than 226 ft^2^      | 20      | highways.                  |
|                              |         |                            |
| Small convenience Gas-Marts  |         |                            |
+------------------------------+---------+----------------------------+

Source: Importers, Agricultural Affaires Office, Rabat

###### Advantages and Challenges of the Moroccan Market

+-------------------------------+--------------------------------------+
| **Advantages**                | **Challenges**                       |
+-------------------------------+--------------------------------------+
| 31 million Moroccans          | 45 percent in rural areas.           |
|                               |                                      |
| 10 percent can repeatedly     | Limited purchasing power in small    |
| afford to buy imported        | cities and rural areas.              |
| products.                     |                                      |
+-------------------------------+--------------------------------------+
| Morocco and the U.S. signed a | Currently, high duties on imported   |
| free trade agreement that     | products.                            |
| provides preferential access  |                                      |
| to many U.S. food products,   |                                      |
| especially on the medium and  |                                      |
| long term.                    |                                      |
+-------------------------------+--------------------------------------+
| Western-minded youth.         | Promotional activities very          |
| Developing middle class. More | difficult in traditional outlets.    |
| women working outside the     |                                      |
| home.                         |                                      |
+-------------------------------+--------------------------------------+
| Most importers are in         | Relatively small volume involved     |
| Casablanca.                   | even in large supermarkets.          |
+-------------------------------+--------------------------------------+
| There are very progressive    | Modern independent supermarkets      |
| and marketing oriented        | require an entry fee for each new    |
| importers.                    | product.                             |
+-------------------------------+--------------------------------------+
| Fast growth of modern         | Proximity of Europe to Morocco:      |
| distribution channels. More   |                                      |
| supermarkets are expected to  | \- Imports of small quantities are   |
| open in the near future.      | economically feasible.               |
|                               |                                      |
|                               | \- EU is a traditional supplier.     |
|                               |                                      |
|                               | \- EU suppliers are more aggressive  |
|                               | in this market.                      |
+-------------------------------+--------------------------------------+
| Growing perception that       | Multinational chains procure some    |
| supermarkets offer safer and  | food products through their home     |
| cheaper products. Increased   | office and in many cases under a     |
| acceptance of packaged        | private label.                       |
| products.                     |                                      |
+-------------------------------+--------------------------------------+

# SECTION II. ROAD MAP FOR MARKET ENTRY

## A1. Large Retail and Wholesale Supermarkets

Included in this category are stores of a minimum of 40,000 ft^2^ (up to
75,000 ft^2^), having between 12 and 34 registers, and over 250
employees. The supermarket ground usually has many private shops
including pharmacists, fast-food chains, amusement centers, and in most
cases gas stations. These stores have large parking lots that can fit up
to 1,000 cars. Typically, these supermarkets are at not in walking
distance, which is likely to restrain the consumer base to medium-high
class consumers. These supermarkets offer both food and non-food items.
The number of different food items is often over 12,000 and is believed
to generally account for 40-50 percent of the total sales.

[Entry Strategy]{.underline}

The best way to introduce new products to these supermarkets is to go
through local importers because:

-   Many have long experience and direct relations with supermarkets.
    Thus, they are in much better position to negotiate space and
    promotional events.

-   They have their own distribution fleet and are able to deliver in
    relatively small volumes.

-   They carry out promotional activities regularly in these stores.

-   They supply smaller supermarkets as well.

-   Supermarkets might only work with well-established importers and
    might import directly only through their buying boards in Europe
    (Marjane and Makro). Also, the entry fee to the supermarket for a
    new exporter may be prohibitive.

[Market Structure]{.underline}

Local importers still account for a large share of imported food
purchases of the large supermarkets in Morocco. Purchases by these
supermarkets are normally concentrated in their headquarters in
Casablanca. With the exception of the *Aswak Essalam* Supermarket chain,
the other supermarket chains import also directly and through their home
offices in Europe. Also, often they import under their private labels or
under the home offices private label (Auchan). Recently, to have a
better control on the supply side, the largest retail supermarket chain
has also set up a distribution platform in Morocco that all importers
deliver to.

Supermarkets in this category are aggressive in promoting their
products. They publish monthly brochures and occasional flyers where the
importers promote their products. Also, these supermarkets, especially
*Marjane*, advertise regularly on the radio for available sales and
discounts to attract customers. The *Marjane* chain has been very
aggressive in promotion over the past few years, as they have been
organizing heavy radio advertising campaigns that claim cheaper prices,
quality products and services after sale for the non-food products. They
have also been promoting the winner *"FAIZ*" card that provides
interest-free delayed payments to consumers.

[Company Profiles]{.underline}

+------------+-----------+-------+-------+------------+---------------+
| **         | **Ow      | **Est | **    | **L        | **Purchasing  |
| Retailer** | nership** | im.** | Total | ocations** | Agent type**  |
|            |           |       | Nb    |            |               |
| **Name**   |           | **Sa  | of**  | **Nb of    |               |
|            |           | les** |       | stores**   |               |
|            |           |       | *     |            |               |
|            |           | **    | *Outl |            |               |
|            |           | (\$Mi | ets** |            |               |
|            |           | l.)** |       |            |               |
|            |           |       | **(Nb |            |               |
|            |           |       | o     |            |               |
|            |           |       | pened |            |               |
|            |           |       | past  |            |               |
|            |           |       | 2     |            |               |
|            |           |       | yea   |            |               |
|            |           |       | rs)** |            |               |
+------------+-----------+-------+-------+------------+---------------+
| *Marjane*  | 51 %      | 5     | 12    | Cas        | Buys from     |
|            | Auchan    | 0-100 | (4)   | ablanca-3, | limited       |
|            | (French   |       |       |            | number of     |
|            | Multi     |       |       | Rabat-2,   | local         |
|            | national) |       |       |            | importers /   |
|            |           |       |       | Ma         | distributors. |
|            | 49 %      |       |       | rrakech-1, | Increasingly  |
|            | Moroccan. |       |       |            | through       |
|            |           |       |       | Agadir-1,  | *Auchan*      |
|            |           |       |       |            | buying office |
|            |           |       |       | Tanger-1,  | abroad        |
|            |           |       |       |            | (including    |
|            |           |       |       | Fes-1,     | private       |
|            |           |       |       |            | label).       |
|            |           |       |       | Mo         |               |
|            |           |       |       | hamedia-1, | (Same buying  |
|            |           |       |       |            | platform as   |
|            |           |       |       | Meknes-1   | for small     |
|            |           |       |       |            | convenience   |
|            |           |       |       | Tetouan-1. | stores chain, |
|            |           |       |       |            | ACIMA)        |
+------------+-----------+-------+-------+------------+---------------+
| *Metro     | Dutch     | 5     | 6 (1) | Cas        | Buys from     |
| (formerly  | (Metro)   | 0-100 |       | ablanca-2, | local         |
| Makro)     |           |       |       |            | importers /   |
| wholesale  |           |       |       | Rabat-1,   | distributors. |
| Cash and   |           |       |       |            |               |
| Carry*     |           |       |       | Fes-1,     | Occasionally  |
|            |           |       |       |            | imports       |
|            |           |       |       | Agadir-1   | directly      |
|            |           |       |       |            | through       |
|            |           |       |       | M          | headquarter   |
|            |           |       |       | arrakech-1 | in Europe     |
|            |           |       |       |            | and/or under  |
|            |           |       |       |            | own private   |
|            |           |       |       |            | labels.       |
+------------+-----------+-------+-------+------------+---------------+
| *Aswak     | 100%      | 30-50 | 3 (1) | Rabat-1,   | Buys from     |
| Assalam*   | Moroccan. |       |       | Ma         | local         |
|            | Over 15   |       |       | rrakech-1, | importers /   |
| *(Recently | r         |       |       | Kenitra-1  | distributors. |
| partner of | egisters. |       |       |            |               |
| Casino     |           |       |       |            |               |
| Supe       | No        |       |       |            |               |
| rmarkets)* | alcoholic |       |       |            |               |
|            | beverages |       |       |            |               |
|            | sold.     |       |       |            |               |
+------------+-----------+-------+-------+------------+---------------+

Source: Agricultural Affairs Office

The retail independent store *Marjane* first opened in Morocco in the
early 1990\'s and were launched by Morocco's largest consortium of
private companies, ONA (Omnium Nord African). These supermarkets are
very modern and are comparable to ones in the US. They are usually
located is relatively isolated areas and thus are visited by high-income
consumers who are major buyers of imported food products.

On January 2001, the international supermarket chain, *Auchan,* took
control of 49 percent of the local supermarket Chain *Marjane.* As a
result, *Auchan* has been more involved in managing *Marjane* stores but
also in increased imports of food products through *Auchan* in France.
Marjane has plans to open outlets in most cities of more than 300,000
people.

A direct competitor of Marjane Chain is *Aswak Assalam*. These are
smaller supermarkets but comparable to *Marjane* stores in their concept
as they also carry food and non-food and are considerably larger than
other supermarkets in Morocco. This chain opened a supermarket in Rabat
in 1998, Marrakech in 2002, and more recently in Kenitra (20 miles north
of Rabat). Aswak Assalam does not carry alcoholic beverages.

The wholesale cash and carry independent, *Metro (formerly Makro)*, also
started in the early 1990\'s, and today has 6 stores. It is a subsidiary
of the German *Metro* chain. A membership card is required to purchase
from these stores that are usually dedicated to large size and bulk
sales. Although Metro targets primarily retailers and HRIs, today many
individual consumers manage to have an access card and are buying on a
regular basis from these stores, which have been offering relatively
small bulk packaging. However, over the past two years, there is a clear
tendency for *METRO* to offer larger bulk sizes in an effort to
concentrate on the wholesale segment. *METRO* occasionally imports food
products directly through its headquarter in Europe and sometimes use
their own brands.

## A2. Small Retail Supermarkets, Convenience Stores, Large Grocery Stores

[Entry Strategy]{.underline}

Typically, supermarkets in this category don't get involved in direct
imports because of the small volume involved. The supermarkets belonging
to the largest chains (ACIMA and Hyper) buy through their purchasing
boards. Importers will still play a major role to introduce new products
to these supermarkets because:

-   Many have long experience in this market and have agents that work
    on a regular basis with these supermarkets and are in a better
    position to negotiate space and promotional events

-   They have their own distribution fleet that can deliver relatively
    small volumes.

-   They carry out promotional activities regularly in these stores.

-   These supermarkets work often with a relatively small number of
    suppliers that carry known brands that sell well.

[Market Structure]{.underline}

US exporters will find it very difficult to sell directly to these small
supermarkets because of the small volume involved. With the exception of
the largest convenience store chain whose food purchases are combined
with Marjane (see large supermarket chains section), virtually all these
supermarkets buy imported goods directly from importers. The importers
have sales agents visit with supermarkets regularly to take orders and
convey them to their main offices. Eventually, the importer's trucks and
utility cars deliver the imported goods to the supermarkets.

In addition, the small self-service stores may also purchase from local
wholesalers if the quantities involved are very small. Both importers
and wholesalers provide credits to supermarkets. Typically the
importer's agents deliver the imported products to the supermarkets in
small vans (panel trucks) or trucks.

[Company Profiles]{.underline}

+-----------+-----------+------+---------+-------------+-------------+
| **R       | *         | **   | **Nb    | **          | **P         |
| etailer** | *Owner-** | Esti | of**    | Locations** | urchasing** |
|           |           | m.** |         |             |             |
| **Name**  | **ship**  |      | **Ou    |             | **Agent     |
|           |           | *    | tlets** |             | type**      |
|           |           | *Sal |         |             |             |
|           |           | es** | **esti  |             |             |
|           |           |      | mated** |             |             |
|           |           | **(\ |         |             |             |
|           |           | $Mil |         |             |             |
|           |           | .)** |         |             |             |
+-----------+-----------+------+---------+-------------+-------------+
| Small     | Local     | 5    | 25      | Cas         | Buys from   |
| Su        |           |      |         | ablanca-14, |             |
| permarket |           |      |         |             | Importers   |
|           |           |      |         | Rabat-6,    |             |
| (\> 3     |           |      |         |             |             |
| r         |           |      |         | Agadir-3,   |             |
| egisters, |           |      |         | etc.        |             |
| \>25000   |           |      |         |             |             |
| ft^2^)    |           |      |         |             |             |
+-----------+-----------+------+---------+-------------+-------------+
| Small     | 51%       | 5    | 20      | Ca          | Buying      |
| Su        | Local.    |      |         | sablanca-7, | Board Buys  |
| permarket | 49%       |      |         |             | from        |
|           | French    |      |         | Rabat-3,    |             |
| In        | Mult      |      |         | Fes-1,      | Importers.  |
| dependent | inational |      |         | K           | Also        |
| (*Acima*) | (Auchan)  |      |         | houribga-1, | through     |
|           |           |      |         | M           | Home Office |
| (6        |           |      |         | arrakech-1, | in Europe   |
| r         |           |      |         |             |             |
| egisters, |           |      |         | Beni        |             |
| \> 25000  |           |      |         | Mellal-1,   |             |
| ft^2^)    |           |      |         |             |             |
|           |           |      |         | El          |             |
|           |           |      |         | Jadida-1,   |             |
|           |           |      |         | etc.        |             |
+-----------+-----------+------+---------+-------------+-------------+
| Small     | Local:    | 6    | 11      | Rabat-5,    | Buying      |
| Su        | Hyper     |      |         | Ca          | Board buys  |
| permarket | S.A.      |      |         | sablanca-3, | from        |
|           |           |      |         |             |             |
| In        |           |      |         | Kenitra-1,  | Importers   |
| dependent |           |      |         |             |             |
| (*Label   |           |      |         | Settat-1,   | Rarely      |
| Vie*)     |           |      |         |             | imports     |
|           |           |      |         | Meknes-1    | directly.   |
| (6        |           |      |         |             |             |
| r         |           |      |         |             |             |
| egisters, |           |      |         |             |             |
| \> 12000  |           |      |         |             |             |
| ft^2^)    |           |      |         |             |             |
+-----------+-----------+------+---------+-------------+-------------+
| Large     | Local     | 0    | 180     | Cas         | Buys from   |
| grocery   |           | .2 - |         | ablanca-68, |             |
| stores    |           | 1    |         |             | Importers   |
|           |           |      |         | Ma          | and         |
| (Self     |           |      |         | rrakech-13, | Wholesalers |
| -service, |           |      |         |             |             |
|           |           |      |         | Rabat-12,   |             |
| \> 1      |           |      |         | El Agadir   |             |
| register, |           |      |         | 8, etc.     |             |
| \< 2000   |           |      |         |             |             |
| ft^2^)    |           |      |         |             |             |
+-----------+-----------+------+---------+-------------+-------------+

Source: Importers, Agricultural Affairs Office, Rabat

The first 3 groups (small supermarkets) are much smaller than *Marjane*
but have a minimum of 25,000 ft^2^ and 3 to 6 registers. These stores
offer a wide variety of products including non-food items. The largest
stores in this category sale also house appliances. Typically these
supermarkets include butcher shops, sell frozen products and alcoholic
beverages, and have relatively limited parking space. Typically, these
supermarkets are located in, or within walking distance to, medium to
high-income neighborhoods. These supermarkets are appropriate outlets
for imported products since they are frequented by medium-high income
consumers and could be used to carry out promotional activities such as
tasting, etc.

The most recent chain in this category is *Acima* convenience
supermarket chain that opened 15 supermarkets over the past 4 years.
Thanks to the strong financial capability of the owning companies, it is
expected to open 5 new supermarkets every year. In fact, *ACIMA* and the
largest supermarket chain in Morocco *(Marjane)* are part of the same
group that belongs to the largest consortium in Morocco *(ONA)* and the
French multi-national *Auchan*. These large convenience stores are meant
to attract urban consumers from the traditional mom-&-pop shops and
open-air market where they would typically go. *ACIMA* also offers a
wide range of imported food products including *Auchan's* private label
and sell a much larger percentage of food products including fresh
fruits and vegetables. It is estimated that *ACIMA* supermarkets carry
over 5,000 items.

The *Label Vie* independent supermarkets carry some 2000 food items (40
% of the total number of products carried). Currently, they continue to
buy through importers but do get involved directly in imports of some
specialty products.

The very small supermarkets (self service) would be similar to small
grocery stores in the US. They usually sell a much smaller number of
items and brands and a smaller percentage of imported products. They
have been opening in throughout Morocco including in the small cities.

## Gas Marts

This category includes mostly gas-marts of 500 to 3,300 ft^2^ with one
electronic register and carrying mostly convenience food.

The first store of this category opened in early 1990\'s. More and more
gas distributors are including this service in their best-located (near
exit of the major cities) gas stations. This segment is likely to
continue to develop in the future. These stores are usually more
expensive and carry a large number of imported convenience items,
especially snack food, non-alcoholic drinks, and confectionary.

+--------------+---------+------------------+------------------------+
| **Retailer   | **\# Of | **Location**     | **Purchasing**         |
| Name**       | Ou      |                  |                        |
|              | tlets** |                  | **Agent**              |
|              |         |                  |                        |
|              | *       |                  |                        |
|              | *(Estim |                  |                        |
|              | ated)** |                  |                        |
+--------------+---------+------------------+------------------------+
| Afriquia     | 20      | Casablanca,      | Buys from Importers &  |
|              |         | Marrakech,       | distributors           |
| *            |         |                  |                        |
| Mini-Brahim* |         | Agadir, Meknes,  |                        |
| (Managed by  |         | Settat, highways |                        |
| Maroshop)    |         |                  |                        |
+--------------+---------+------------------+------------------------+
| Mobile Gas   | 3       | Casablanca,      | Buys from Importers &  |
| Stations     |         | Rabat, Marrakech | distributors           |
|              |         |                  |                        |
| *On the Run  |         |                  |                        |
| / Mobile     |         |                  |                        |
| Mart*        |         |                  |                        |
+--------------+---------+------------------+------------------------+
| Shell Gas    | 5       | Casablanca,      | Buys from Importers &  |
| Stations     |         | highway          | distributors           |
+--------------+---------+------------------+------------------------+
| Somepi Gas   | 10      | Highway          | Buys from Importers &  |
| Stations     |         |                  | distributors           |
+--------------+---------+------------------+------------------------+

Source: Agricultural Affairs Office

## C. Traditional Markets - \"Mom & Pop\" Small Independent Grocery Stores

[Entry Strategy]{.underline}

To reach these small mom & pop stores, imported products will have to go
through importers and very likely wholesalers. The quantities involved
are too small and imported food products are sold only in larger shops
or in shops that are located in medium to high-income neighborhoods.

[Market Structure]{.underline}

[Company Profiles]{.underline}

This category includes an estimated 45,000 grocery stores that are not
in the above categories. Their size varies from less than 226 ft^2^
(estimated 40,000 stores) to 1,000 ft^2^ (500 stores). These shops have
limited financial resources and are typically managed by one person. The
consumer cannot serve himself in this store because the goods are behind
a counter. Therefore, the shop owner plays a major role in introducing
new brands to the consumer.

These shops are literally packed with a wide range of convenience and
relatively low price food and non-food items. Depending on the location
and size, some of these stores may have some imported products. Many of
these stores in the cities have a refrigerator and a very small number
have ice cream freezers. Convenience, proximity and credit to the final
consumer are their strongest assets.

# SECTION III. COMPETITION

Morocco signed a free trade agreement that is expected to enter into
force on January 2006. The agreement will provide U.S. exporters with
new export opportunities especially in the medium and long term.

Morocco imports each year about \$270 million of high value products and
the U.S. share has been less than 1 percent. Imports from the U.S.
continue to be limited compared to Europe mainly because of the
geographical distance between Morocco and the US, the absence of direct
shipping lines, and the historical trade relations between Europe and
Morocco. The long shipping time (up to 45 days because transit by Europe
is necessary) excludes all short shelf life products from being exported
to Morocco. Also, European exporters (particularly Spanish, German,
France, and UK) have been very aggressive in penetrating this market.

Locally produced goods continue to account for the largest share of food
products sold in local retail outlets. Imported consumer-oriented food
products, because of their generally high price (high duties), are found
mostly in supermarkets and grocery stores that are located in areas
where people with higher income live. It is estimated that only about 10
percent of the population can afford to repeatedly buy imported
products.

The local industry produces a relatively limited number of products that
in many cases can hardly keep up with the high quality and diversity of
imported products put on the supermarket shelves every day.

# SECTION IV. BEST PRODUCTS PROSPECTS

A.  Products present in the market that have good sales potential:

Canned Fruit and Vegetables

Health and diet products

Confectionary

Dried Fruits and Nuts (Almonds, Pistachios, Dried Prunes and Raisins)

Pop Corn

Non Salted Butter

Breakfast Cereals / Biscuits, crackers / Flour Mixes

Pulses (lentils / Chickpeas / Green beans/ white beans)

Sauces including hot, Asian, BBQ, Salad dressings

Snack Foods, including diet snacks

Pet Food

Wine

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

Pistachios / Pecan Seeds Preferential Access under FTA

Garlic Preferential Access under FTA

Mushrooms Preferential Access under FTA

Soy Sauce Preferential Access under FTA

> Spaghetti Preferential Access under FTA
>
> Poultry Meat Tariff Rate Quota under FTA

C. Products Not Present because they Face Significant Barriers

# SECTION V. POST CONTACT AND FURTHER INFORMATION

> Mr. Michael Fay, Agricultural Attaché Email:
> [Micheal.Fay@usda.gov]{.underline}
>
> Mr. Aziz Abdelali, Agricultural Specialist Email:
> [Aziz.Abdelali@usda.gov]{.underline}
>
> Phone:(212-3) 776-2265 (Ext. 2022, 2024) Fax:(212-3) 776-5493
>
> Reports that might be useful to U.S. exports of consumer-oriented food
> products to Morocco (can be found at website:
> [http://www.fas.usda.gov]{.underline}):

  ----------------------------------------- ------------- ----------------
  **Report**                                **Log         **Date Issued**
                                            Number**      

  Moroccan Food Standards & Regulations     MO5018        July 2005

  HRI, Food Service Sector                  MO5003        January 2005

  Exporter's Guide                          MO5020        September 2005

  FAIRS, Export Certificates                MO5023        November 2005
  ----------------------------------------- ------------- ----------------

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