This month we will continue our tour across the country with a visit to Quebec. Every market has different characteristics and Quebec is certainly a unique market place for suppliers in the food industry. The language, the culture and the marketplace are all factors that make Quebec a distinct market to operate in.

Quebec is home to more than eight million people, which means almost one-quarter of Canadians live in Quebec. This is a sizeable population spread across urban and rural markets. Close to half of the population live in Montreal (3,407,963) with the second largest urban area being Quebec City (696,646) from the 2011 census.

Consumers in Quebec do have different tastes and expectations. With the northern European influence, consumers purchase products that are used in traditional French Canadian cooking. Many of these, such as tourtiere, pea soup and poutine are a real treat when visiting the market. There are differences in the produce shops in Quebec as well.  Items popular in French cooking such as shallots and leeks sell more and apple is a very popular juice, dominating the category. Consumers appear to shop more frequently for smaller amounts.

Customers influence the buying decision

All of the national food retailers have a presence in Quebec. Although they all operate in the market, only Metro has its roots in the province.  Loblaw purchased Provigo in the late nineties and Sobeys’ IGA stores were part of the Oshawa acquisition in the late nineties.  Walmart and Costco have also opened a number of stores in the market in the last 20 years.

Quebec also has a sizeable number of independent stores which have different specialties. Some of these depanneurs focus on produce which can be acquired directly from growers or buying through wholesalers or the Place des Producteurs as the Montreal produce terminal is known.  The breakdown of retail outlets in Quebec from www.depquebec.com shows the sizeable number of smaller stores with more independence.  Alimentation Couche Tard supplies the largest number of stores, however these are all smaller stores, some affiliated with gas stations.

Metro has the second highest number of stores in the market with Metro Plus and Metro being the larger, more conventional full service offerings. Super C compete in the discount segment against Loblaw’s Maxi and Walmart.  Recently Metro acquired the Adonis stores which focus on Mediterranean products. Earlier in 2018, Metro acquired pharmacy chain Jean Coutu, extending its reach into the drug channel. Metro continues to operate the Quebec market from its offices in Montreal.

Sobeys has been restructuring its business nationally however Quebec has been left as a separate market in recognition of a different market place and consumers. The IGA and IGA extra stores are some of the best stores in Sobeys’ network. One gap in Sobeys Quebec offering is no presence in the discount segment.

Your competition

Producers in Quebec have a dominant position in the market. Consumers are probably the strongest supporters of local. The size of the market will support production across any category where there is demand so there are fewer reasons to bring products in. The three major food retailers have distribution facilities in Quebec so that ensures local producers have access to the stores serviced by these networks.

According to the Quebec Produce Marketing Association the province produces 33 per cent of field-harvested vegetables and 29 per cent of field-harvested fruit in Canada. In these categories Quebec growers are over-developed relative to the proportion of total Canadian population.  In the greenhouse fruit and vegetable category, Quebec is under-developed with only four per cent of national production.

The Atlantic Market

Quebec is the biggest market, outside Ontario and it operates as a unique market. Consumers are looking for a different assortment and shopping experience, which warrants some of the national retailers dedicating resources to Quebec as opposed to just making it part of a national program.

If you have any questions about selling your products or developing strategies for specific customers please give me a call at (902) 489-2900 or send me an email at peter@skufood.com.   

WHAT’S IN STORE?

Is it time to visit stores?

The holidays will be upon us before you know it. Retailers are gearing up for their busiest weeks. It is important to be out in the stores this time of year. Look to see what is getting the merchandising space and what your customers are doing. Produce does not have the same eight-10 week lift other departments do but you will find some more aggressive merchandising.

Remember to walk the entire store; you never know where you will get ideas. Go with a purpose and find ideas that are transferable to your business or your category. You should visit your customers and other stores.