Food Marketing in Quebec

In: Business and Management

Submitted By mcmichaud
Words 1738
Pages 7
Food Marketing in 2009
Today’s Reality and Tomorrow’s Trends How to Carve a Niche in the Market
Marie Claude Marie-Claude Michaud
Business Strategy Consultant www.dancause.net

FCC – SIAL Montréal April 1, 2009

Retail food market

INDUSTRY EVOLUTION AND TRENDS

Evolution of the food distribution industry
!

In recent decades, the food distribution industry has undergone a significant wave of consolidation.
• Increase in average sales per company from $4 to $11 billion

!

Ten years ago, there were 45 public companies in the North American food distribution sector.
• Now – just over 20

Quebec’s retail food sales market is dominated by three distributors
Company C

Market Share
Quebec
Supermarkets All Food

Canada
Supermarkets All Food

Loblaws (Provigo) 36% Sobeys (IGA) Metro (A&P) Safeway Overwaitea Wal-Mart a at Costco Other
Source: CIBC World Markets

30% 93% 26% 22% 5% 9% 8%

41% 78% 20% 15% 8% 6% 10%

33% 76% 15% 12% 7% 5% 6% 7% 15% 60%

30% 27% 7%

But the food supply has become more fragmented… fragmented
!

Supermarkets are losing market share
Estimated retail food sales by network Canada – 2007-2008 Type of business Supermarkets Pharmacies Ph i Warehouse clubs Discount stores Convenience stores Other TOTAL
Sources: CIBC World Markets, Statistics Canada

Sales S l
($ million)

Market M k t share 80.4% 2.1% 6.7% 5.4% 4.8% 0.5%

Growth 4% 7% 5% 11% 2% 14% 5%

$61,390 $1,630 $1 630 $5,100 $4,115 $3,680 $415 $76,330 $76 330

Competition is increasing
!

In Ontario, supercentres have transformed the competitive landscape. landscape
Increase – In-store food purchases Canada 7.7% Growth in food sales* Canada 3.3% Ontario 3.2% Quebec 4.2%

Per capita food store spending 2007 Canada Ontario Quebec 8.5% 6.8% 9.9% 9 9% 2008 8.4% 6.7% 10.1% 10 1%

* Supermarkets and convenience stores

Source:…...

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