Big opportunities for Canadian food and beverage
We only have 2 of our 2025 trends left. With a few interruptions caused by the radical changes to U.S. trade policy, we will keep working on our 2025 trends. This week the focus shifts to local/small supplier programs. With the dramatic shift in consumer behaviour to support Canadian products, the timing could not be better for this trend.
Local/small Supplier programs
These have been in place for some time. One retailer is revamping their program, and others are working to ensure the effort is paying dividends. It is great retailers provide an opportunity in their stores for smaller or regional brands to succeed. There is still a lot of work required to generate the sales and prove the product belongs on the shelf in this environment. Every supplier selling into the major retailers should have an expectation for sales and a plan to deliver them. Getting on the shelf is a great achievement, getting into the shopping cart is the only thing that will keep you on the shelf.
This is not easy for retailers
The large retailers rely on processes and systems to manage the thousands of SKUs they put in their stores. It is easier to buy full pallets from suppliers and put them through their warehouse. This is the most efficient model, and really delivers the lowest price to consumers. Fortunately, consumers have a voice, and they let the retailers know they want more choice. Many of them are willing/able to pay a premium for innovative, better, different products from small to medium sized food and beverage producers and processors.
We do have to realize that working with these businesses is a challenge for retailers. One company, supplying pallets of products from coast to coast is easier. One plan o gram (shelf line up) from coast to coast is much more efficient. The complexity of 6 suppliers with different products, in different packaging, with different costs, really does create a lot more work for retailers.
Working with small to medium entrepreneurs (SMEs) can also be a challenge. They do not have the resources of the big consumer packaged goods companies. Many SMEs believe it is their job to produce a great product and the retailer’s job to sell it. Not so…
Your job does not end when you deliver it to the warehouse or the store. You need to make sure it gets into the shopping cart and that you develop a relationship with consumers to buy again next time.
This is a great opportunity for small/medium businesses
We have never seen a shift in consumer behaviour like we see right now. With the threat of using ‘economic force’ to challenge our sovereignty Canadians are taking a stand. They are reading labels, not for nutrition facts but for product origin. Consumers want Canadian products and the small supplier/local product programs are one solution.
Consumers want these products which means retailers want them. Now is a great time for SMEs to get their products into these programs.
Learn about the programs
You would have heard us say every retailer is different. These programs are a great example. Each Canadian based retailer has their own version.
Sobeys
Sobeys have probably been doing this the longest with their small supplier program. They have people across the country dedicated to working with local companies to get their products into Sobeys stores. They are willing to have companies start in a small number of stores and build the capabilities.
Sobeys list the following requirements on their website
Local Program Requirements:
- Your products are made right here in Canada.
- You are locally producing items that will wow and excite our customers.
- Your products are regionally relevant in a local market.
- Your product is packaged and ready to be sold.
Here is the link if you see your products as a fit for Sobeys
Loblaw
Loblaw have been working to to improve their program. They take a slightly different approach. They are looking for small suppliers, not just local. They believe a small supplier can service stores in a number of markets and that the definition is not just dictated by geography.
Loblaw will not charge listing fees, they commit to giving you 6 months to prove your sales and they commit to paying you in 7 days.
Here is the link if you see an opportunity with Loblaw
Metro
In Quebec, Metro has a strong relationship with Aliments Quebec. There is a lot of exposure for products and signage in the stores. Metro do provide recipes and ideas for local products. We could not find any information about local products in Ontario Metro stores.
If you are interested in the Quebec program you can check out the program with Metro
Walmart
Although Walmart are bigger and have a different business model they do have opportunities for small to medium sized businesses. You need to be ready to work with Walmart and they will expect you to do more work than the other retailers.
If your business is ready to work with you can find more information on the Walmart website
Regional retailers
The regional retailers also have programs and can be a great place to start. Check out their websites or ask in store.
Act like a big business
These programs are a great opportunity, as we have said.
It is also no guarantee of success, and you still need to do your part. Yes, they will provide you a route to the shelf. No, they will not do everything for you.
You need to have your food safety to at least the level they want.
You need to be prepared to invest in sales and marketing
You need to drive sales on your product and develop relationships with consumers to generate repeat purchases.
You need to have a distribution model in place to keep your shelf space full and looking great.
You need to have retail coverage so you know what is happening out there in the stores.
You are much better to have great success in a smaller number of stores and grow then to stretch yourself too thin and disappoint them.
You do need to know what the sales expectations are, then build a program to meet or exceed them.
You do need to work to proactively develop a relationship with stores and your key points of contact.
Now is the time
There has never been a better time to walk through this door. Make sure you have as much in place as possible to make it a positive journey for you and them.
Peter
SKUFood Recipes for Success Podcast
In this episode, we’re excited to feature Carzan Local Meats, a family-owned business from Southey, Saskatchewan, dedicated to producing premium grass-fed beef and jerky products. Founded on the principles of sustainability and regenerative ranching, Carzan has become known for its locally raised meats and innovative flavour offerings in their growing jerky business.
Join us as we delve into their journey with Carter and Carmen, from their family roots to their commitment to providing top-tier products that reflect their passion for sustainability and community.
Get ready to hear the inspiring story behind Carzan Local Meats.
Canadians are not amused
As we have said the current environment has many challenges but there are opportunities too. Canadians are adamant they want Canadian products, and the majority are not amused by the rhetoric from the US. Unfortunately, HerbaLand tried to make light of the situation. Consumer response was swift and not in their favour.
I do have travel coming up to Toronto and St. John's so if you want to connect or have an event in any of these locations give me a call or send me an email.