Ethnic consumers represent the fastest-growing segment of the Canadian population. For food retailers, especially in major urban markets, this represents both challenge and opportunity in the '90s... and beyond. The Canadian population of visible minorities is expected to reach 5.7 million by the year 2001... more than 17 percent of the country's residents.  Ontario also will have 2.78 million ethnic consumers, more than half of the total visible minority population.

As a specific example, by 1996 visible minorities topped 35% in the Greater Metro Toronto area.  By the year 2001, this number was to rise to 44.6%  Similar trends are expected in all major urban centres.

These changes represent a radical change in our consumer mix and represent tremendous opportunities in retailing as this growth escalates and continues into the 21st century.  In addressing this market, it is important to understand the basic difference between ethnic food and specialty or imported/international foods.  The imported/specialty food sections consist of a selection of imported products with the majority originating in Europe. Traditionally, these products have been targeted at the "upscale" consumer who has a discriminating taste; the products are generally consumed in smaller quantities and with less frequency. On the other hand, ethnic foods represent basic staples for various consumers. They are consumed daily in bigger quantities by a diverse group of shoppers and their choice reflects their heritage.

The major visible ethnic groups are:

Ethnic Foods Enter "Traditional" Market

While recognizing these major changes, we should always keep in mind the impact of these flavourful and nutritional ethnic foods are having on our traditional Canadian consumer. An increasingly multicultural society means more ethnic restaurants, and that results in more people of all backgrounds wanting to try these different foods in their own homes. The traditional Canadian consumer is increasingly turning to these foods as an alternative, and in some cases may adopt (and adapt to) these ethnic foods.

In the 1960s, Italian sections were the "ethnic" food aisles in the supermarket. Other European delicacies were labeled "international" foods. Traditionally, these products have been targeting the "upscale" consumer who has discriminating taste the products were generally consumed in small quantities and with less frequency.

Although people would go out for Chinese food in the '60s, it was unlikely that '60s Canadian would attempt to make Chinese food in the home. Over the past decade, the trend has shifted dramatically. On the other hand, ethnic foods represent basic staples for various consumers. They are consumed daily in bigger quantities by a diverse group of shoppers and their choice reflects their heritage.

Furthermore, within the growing ethnic population, the various groups are borrowing from each other and are learning more about the foods and products available. Stir fry sauces, oyster sauce, Soya sauce, basmati rice, curry sauce and curry powder, coconut milk, jerk seasonings, "naan" and "roti," falafel and tahina... to name just a few... are appearing in more and more kitchen cupboards right across the ethnic map.

Over the past decade, the visible minority population has more than doubled. Surprisingly, retailers have not paid this trend the attention it deserves. In many cases, the addition of some imported food merchandise in the specialty food sections has been considered sufficient, converting the store to look like an ethnic grocery market is not the answer either, as in some cases this approach does not sit well with the existing, traditional Canadian consumer.

To complicate the process, as mentioned earlier, many "traditional" Canadians are also exploring these ethnic foods increasing numbers. The opportunities now, and over the next several years, are obvious. The challenge is how to effectively reach this important, yet diverse, market. It is a non-traditional buyer sector, and for that reason traditional grocery marketing techniques may not be as effective.

The key to success in this fast-changing ethnic food marketing is flexibility. Flexibility to recognize and accept, and flexibility to adopt. It becomes very important that we understand our customers, their heritage, their cultural differences, eating habits and buying patterns. Retailers will have to be flexible enough to change their listing base, product mix, merchandising setup, pricing and promotional strategies.

Furthermore, product mix in grocery, produce, meat as well as the dairy sections, should reflect the dominant segment of ethnic shoppers in a given market area.  Authentic national brands form these countries will have greater impact as they make the ethnic consumer feel more at home as they see... and buy... products they are accustomed to.

So how do you meet the challenges and opportunities of this expanding market? The answer... merchandise aggressively... and make a bold statement.

The presentation of the products within the stores is as important as the product mix itself. We cannot expect to make any impact on this group of consumers by giving them lip service or by providing import substitutes in the "international" sections. The presentation of product should make a bold statement. The challenge is to do it professionally so that while attracting the ethnic consumers, it does not in any way alienate the traditional consumers. On the contrary, it should look interesting and temping enough for them to try too!

Our product mix in grocery, produce, meat, as well as dairy sections should reflect the dominant segment of shoppers in our market area.  Authentic national brands from these countries will create greater impact as shoppers will feel more at home in seeing products they are accustomed to. It is important that they are authentic products with authentic taste and established quality standards.

Pricing becomes the most challenging decision in the marketing of ethnic foods. While the difficulties around product procurement and packaging (not to mention UPC scanning problems) can be managed by suppliers, it is also a fact that both discrepancies and the need for standardization tend to push the costs.

The pricing strategy should keep in mind the objective of attracting and keeping the ethnic consumer shopping for their "total" food dollar... including pasta sauces, hot dog buns, paper products, soups and ketchup. One also has to deal with their "back home" and/or "ethnic store" price perception. The knowledge and experience of the suppliers can be extremely valuable in designing the entire strategy and package.

Last but not least, special event promotions for different ethnic groups within your market area are essential to attract consumers and keep them coming back.  Just a sampling of the types of events for special promotions are listed below. In this, and future issues of the newsletter, we will provide a calendar outlining ethnic festivals and other event for three month period.

Christmas, Easter, New Year, and Thanksgiving celebrations are equally enjoyed by the ethnic population, especially by Christians originating form other countries. More and more ethnic foods are finding their way into the "traditional" Christmas, Easter and Thanksgiving meals served by Canadians of European descent.

Special event promotions should be an integral part of marketing to the ethnic consumer. The core products and/or staples in each group should be utilized to attract consumers and offer good value for their food dollars. It is also a path for you to see more incremental sales and profits.

Equally Important are the special events you can recognize and promote for these groups. These opportunities should be aggressively utilized when and wherever possible. It not only represents an opportunity to attract ethnic consumers by making them feel "at home" while shopping, but also provides solid opportunities to increase sales for whole grocery sections. An added bonus is keeping that buyer for future purchases right across the grocery spectrum. Offer them  a complete shopping experience and they will keep coming back!

Cross-merchandising is also a great way to gain incremental sales and profits. It should not be restricted to groceries, but extended into other departments:  product, meat, dairy and bakery sections.

All ethnic groups celebrate their special events be they cultural, religious or merely social. Recognizing and understanding these events should be part of the overall marketing program for ethnic food products. Special foods consumed during these events should be featured in all sections of the store. Special flyers are the best way to communicate and differentiate from our more traditional promotions.

Don't limit your thinking to only the more recent influx of people from Asia, Caribbean etc. There are many other opportunities to market ethnic foods and to promote effectively to ethnic groups within you market area. Greek food is universally enjoyed by many segments of our society as well as Greeks themselves. There is a huge following for Mexican and "Tex-Mex" foods. Hot sauces are used in numerous recipes by all consumers; visible or not-so-visible.

Some of the products that offer real opportunity for incremental sales and profits will be highlighted in each issue of the newsletter. Seasonal and special event considerations will be emphasized.

Lee Kum Kee Stir Fry Sauces offer great opportunity to add to summer outdoor cooking sales. They include Oyster Sauce, Hoisin Sauce, Chili Garlic Sauce, Chili Sauce, Sweet and Sour Sauce etc. These products should be featured with your BBQ displays and/or along with chicken legs, steaks and ribs. Cross-merchandising in the produce sections with fresh produce also offers incremental sales benefits.

Canned Baby Corn, Water Chestnuts and Bamboo Shoots also fall into this incremental sales category. Traditional drinks from Jamaica including Grace Ginger Beer, Kola Champagne, Pineapple and Banana drinks should be featured in the summer months along with Jerk Seasonings and Hot Pepper Sauce.

Mango Pulp, a traditional tropical sweet fruit, is consumed by East Indians to make Mango flavored ice cream and/or toppings. India House "Tandoori Naan" offers that great home-made taste for East Indian and Middle Eastern consumers, without going through the trouble of self baking and the resulting high oven heat.

Chick Pea dip and Egg Plant dip from Lebanon are favorites among an increasing sampling of Middle eastern foods.

UFC Brand is the Philippines #1 selling Banana Ketchup and is great for outdoor foods.