We have made it to the west coast as our journey across Canadian markets has taken us from the Atlantic to the Pacific. British Columbia (B.C.) is a very interesting market to explore because of its individual markets that have their own characteristics and fabric of growers. There is the dense urban core of Vancouver, the interior with a different climate and smaller cities, the northern sparsely populated region and Vancouver Island. Even within these areas, there are unique characteristics of populations and climates for growing.

British Columbia’s population continues to climb and in Q4, 2018, it was estimated to be 5,016,322. This is the first time the provincial population has exceeded the five million mark. After Ontario and Quebec, British Columbia is the third largest market. The population is spread out with concentrations in Metro Vancouver, Victoria and the other regions. With close to half of the provincial population in Metro Vancouver, the density of the population in the city is very different than other areas.

Another characteristic of the B.C. population is ethnic diversity. Certainly the geographic influence of Asia has an impact and also as we see in other regions, ethnic groups are most comfortable building their own cultural communities. There is also a significant difference between Metro Vancouver and the rest of the province. The products in demand in Vancouver will be different than the other parts of B.C.

	Vancouver % total population	British Columbia % total population	Canada  % total population
Total visible minority population	48.9	30.5	22.3
South Asian	12.0	8.0	5.6
Chinese	19.6	11.2	4.6
Filipino	5.1	3.2	2.3
West Asian	1.9	1.1	.8
Southeast Asian	1.9	1.2	.9
Korean	2.2	1.3	.5
Japanese	1.2	.9	.3
Other	5.0	3.6	7.3

 Source: Statistics Canada

 

Overall, the B.C. population is growing at a rate of five per cent per year. As with the other demographics we have explored, there are pockets where growth is much higher than the average and others where it is lower. Metro Vancouver continues to grow faster than the rest of the province.

The five per cent growth and the diversity of the market offer good opportunities for food producers and processors. One other characteristic of B.C. consumers is that they are often early adopters. Within the Canadian market many trends and new items start in the west and move east. 

 

Customers influence the buying decision

All of the large food retailers have a presence in British Columbia except Metro. 

Overwaitea has its roots in the B.C. market. The company started more than 100 years ago and has grown to be a force in the retail food business. Save On has expanded from B.C. to Manitoba. It is one of the few retailers to continue opening new stores each year. Other retailers open or renovate stores but the total square footage is not growing. Save On stores offer a traditional supermarket format with more emphasis on local. The company also operates Urban Fare stores in the urban core. These smaller, market style stores offer great fresh produce and a wide assortment of prepared foods.

Co-op stores continue to operate in B.C. in rural markets where consumers have strong ties to this brand. Co-op continues to be locally owned and support local products and initiatives. The stores are supplied by The Grocery People for fresh produce.

Loblaw operates Real Canadian Superstores, Loblaw City Markets, No Frills and Extra Foods in B.C. These four banners give the company the flexibility to offer everything from discount to full service, depending on the market. The Loblaw City Markets are more recent additions in dense urban markets such as West Vancouver, across the street from Whole Foods. The company also owns the T&T stores, which started in B.C. Although operated independently they are part of the Loblaw format offering.

Sobeys has been restructuring its business nationally however the retail formats in B.C. have remained unchanged for the most part. The company operates Safeway and Thrifty Food Stores and one Sobeys store in the province. The Safeway brand is very strong in this market and they have been reluctant to make changes as stores continue to perform. Sobeys has indicated plans to bring FreshCo to the western provinces to give an option in the discount segment of the market. Sobeys service B.C. stores from large distribution centres in Alberta.

IGA and Fresh St Market are supplied and operated by H.Y. Louie. The company also operates the London Drug store chain. IGA is a similar model to IGA in other markets with strong franchise owners helping to differentiate the offering. The Fresh St Market stores are market style and compete directly with Urban Fare, Whole Foods Market and Loblaws City Market stores.

Walmart has continued to expand the number of Supercenters in the province. Walmart operates the B.C. stores from its national office in Mississauga, however as in many Walmart markets, stores do have some autonomy to ensure they meet the needs of consumers in the market. 

Costco has 13 warehouses in B.C. The stores are concentrated in the lower mainland, Vancouver Island and Prince George.  All stores are operated out of the Burnaby, B.C. Costco office. These warehouses offer similar assortments to warehouses in other regions.

 

Your competition

British Columbia has very favourable climates for production in selected fruit and vegetable crops. The province produces the most highbush blueberries, sweet cherries and raspberries in Canada. Growers also produce the second highest volume of cranberries. 

A number of commodities fall under the B.C. Vegetable Marketing Commission. As stated on www.BCVeg.com, “The BC Vegetable Marketing Commission provides for orderly marketing in the vegetable industry. It is directed by an appointed chair and vegetable producers are elected democratically by their fellow producers.”

The commission is vested with the power in the province to promote, control and regulate in any respect the production, transportation, packing, storage and marketing of a regulated product. The following are regulated products:

 

STORAGE CROPS – conventional and organic:

  - Beets (tops off)

  - Green Cabbage

  - Red Cabbage

  - Carrots (tops off)

  - Parsnips

  - Rutabaga

  - White (purple top) turnips

  - Yellow onions

  - Potatoes (all types and varieties)

 

GREENHOUSE CROPS – conventional and organic:

  - Cucumbers (all types)

  - Tomatoes (all types)

  - Peppers (all types, including hot/spicy varieties)

  - Lettuce

 

PROCESSING CROPS

  - Peas

  - Beans

  - Corn

  - Broccoli

  - Brussels sprouts

  - Cauliflower

  - Strawberries

 

The diversity of the regions and the population within the B.C. market make it a very interesting opportunity for retailers and producers. The trend of being early adopters and the mix of dense urban core in Vancouver and more rural markets ensure there is something for every taste and style.

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?

 

Use creativity whenever you can

Positioning your products and differentiating them can be a key to your success. There are also things you have to do like lot coding and traceability. Your best chance of winning happens when you combine what you have to do with what you need to do.

This package of Lesley Stowe raincoast crisps is a great example of positioning the products as artisan with the small batch, personal message and also delivering the traceability that is a requirement for doing business in the food industry today. Take a look at your packaging to find opportunities where you can deliver what you should and what you have to.