These moves are supported by consumer trends. “The Canadian market is very unique in that Canadians have a high propensity for trying new products,” explains Lemaire, who reports that three in four Canadians have tried a new fruit or vegetable in the last five years. “It’s really exciting that the consumer base is willing to try something new,” he enthuses. “Retailers have to keep on their toes to meet this consumer demand.”
Lemaire also notes that while shoppers under 30 are driving the trend toward produce diversity, older consumers are seeking more fresh fruits and vegetables for their health, while demanding they be packaged, displayed, and merchandised for ease of purchase and preparation. Examples include more fresh-cut produce and value-added meal kits, merchandising ingredients for a healthy dish together in one display, adding recipe cards or recommendations to certain produce items, or having dietitians onsite. “How do you provide a solutions-based approach?” Lemaire asks. “It’s the ‘how’ that is essential.”
And while demand for fresh-cut produce has climbed among older consumers, it also appeals to time-strapped shoppers of all ages. “As societal demands require more work and less play, we tend to have little time for food prep,” comments Joe Rubini, president of Toronto-based Rally Logistics, Inc. “Getting fresh-cut produce on store shelves is sometimes worth the expense to add that time back into your day.”
Ethnic and Organic Trends
Canada’s Asian population continues to rise, and mainstream grocery chains catering to specific Asian populations, including those of Chinese, Indian, and Filipino descent, continue to grow. The leading national chains have purchased some of the key players in the past as a way to participate in this trend, as Loblaw did with T&T Supermarket in 2009.
But many observers believe there is much more room for expansion. Uduslivaiya notes that ethnic consumers want a wide diversity of produce with a high degree of quality and freshness, but at a good price—which is not available at most specialty stores. “Mainstream retailers are not really responding to these customers’ needs and demands,” she comments.
Strapagiel agrees, adding: “The ethnic trend has been with us for a while, but it’s not at its peak yet.” And although much of the development has been in the bigger cities including Vancouver, Montreal, and Toronto, he notes, “I could see it expanding into other cities.”
Rubini, too, sees the trend as gaining momentum. “As Canada continues to diversify and more people immigrate here, it’s important to provide the traditional fruits and vegetables they would be accustomed to back ‘home’.”
