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Peru overview CPF overview Analysis of the
export process from Peru to Canada Canadian
consumer market analysis and trends Distribution
Channels Competition Marketing
strategy Recommendations Questions
Mostafa Amine, Simon Desbois, Georges El-Murr,
Dominic Rossi, Laurent Verbruggen
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Peru overview
Member of the Andean community Foreign trade is
regulated by GATT (WTO) Latin
American Integration Association
FTAA with Bolivia Commercial relations with
Canada 6rd in South America 53rd in
the world Peruvian citrus represent 0.7 of
the world exports of citrus to Canada 12 of
South American citrus exports to Canada
Increasing every year
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CPF overview
Founded March 2001 Members 57 citrus and
Hass avocado growers Mission Manage all
export operations for its members Develop a
common commercial fund to export fresh
fruits Leading Peruvian exporter of fresh fruits
49 of all Hass avocado and citrus sold
abroad CPFs fruits Hass Avocadoes -
Several varieties of citrus brand name
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Analysis of the export process from Peru to
Canada
Administrative requirements
Mandarins Tangerines are tagged with the
classification 080520 Peru benefits from
most favoured nation status Products are free
of duties Mandarins Tangerines are not harvest
in Canada No quotas - No GST
Other regulations
Shipment requirements Compliance with
phytosanitary regulations is compulsory Quality
of the products Compliance with standards (ex
size, weight)
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Analysis of the export process from Peru to
Canada
Labeling and packaging
Conformity with Canadian standards Free of pests
- Clean - Not mixed with other
fruits Has to be written in English and French
Name - Country of origin - Weight
Some Fees may be applicable
When Customs conducts random inspections of
shipments When shipments put aside due to
compliance issues
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Canadian consumer market analysis and trends
Canadian consumer market study
14 of Canadian people buy mandarins once a month
or more Among the consumers of mandarin-type
citrus 45 clementines - 27 tangerines
- 24 mandarins - 4 tangelos
mineolas Citrus mostly consumed Winter -
Summer Most prized qualities of mandarin-type
fruits Juicy - Seedless - Nutritional
qualities First criteria of choice Quality
- Freshness - Price - Country of
origin Fruits mostly bought in Supermarkets
- Specialized fruits vegetables stores
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Canadian consumer market analysis and trends
Opportunities
0 Canadian production of citrus 6th importer of
fresh fruit in the world 34 increase of
mandarin consumption in 10 years 2,89 kg of
mandarins consumed per person in 2002 10 kg of
oranges and mandarin-type citrus consumed per
person per year Trend toward eating healthier
and more convenient food 20 a year growth of
organic products sales Peruvian fruits
associated with natural fruits
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Canadian consumer market analysis and trends
Threats

• A very competitive market
• 80 of the imports of mandarin-type citrus made
  from
• Morocco - Spain - China - United
  States
• ? 2 of Peruvian share
• 15 of Canadian people familiar with
  Minneola-Tangelos
• lt3 of Canadian people familiar with
  Novas-Clemenvillas
• Most Canadians reluctant to buy unknown fruits

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Distribution Channels
Canadian Market Very competitive with
regional differences Costs Rise from US
0.65/kg Callao to CA 0.86-0.95/lb in
Ontario/Quebec Concern Are Peruvian fruit too
small for Eastern Canadian tastes? Importers/Whol
esalers One not interested lt Previous
negative experience with Peru Canadawide Fruit
showed interest in CPF - Smaller fruit
OK Smaller retailers Lower Summer consumption
restricted supply lower demand Prices above
CA1.00-1.20/lb reduce quantity demanded Very
low prices required to introduce new fruit
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Distribution Channels
Sobeys 17 market share - Continuity of
supply - Long term relationships Loblaws
43 market share - Import by full
container load Minneolas small sellers -
Increasing every year Appearance taste most
important - Larger fruit sell
more Significant proportion of organic produce
Other major grocery chains AP (ON) Metro
(QC - ON) Overwaitea (BC - AB) Safeway (BC -
AB - SK - MB - ON)
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Competition
Canadian market caracteristics
Competition is year-round on the Canadian
Market Population 31 million 5 biggest
cities Toronto - Montreal - Vancouver
- Ottawa-Gatineau - Calgary Product
availability (May to August) Main competitors
are absent
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Competition
Critical success factors
The closeness from Canada compared with other
competitors Products qualities such as
Seedless - Nutrition - Juicy Experience
with Canadian importers and the Canadian
market Open competition from the South American
exporters Chile - Brazil - Argentina
What CPF needs to watch for
Substitute products during Summer period in
Canada Growing awareness of Canadians towards
Organic Fruit - GMO free Identification of
their products through Trade shows - Citrus
Importers
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Marketing strategy
Targeting
People under 39 years and of higher
socio-economic groups Qualities looked for
Taste - Appearance colour - Juiciness
and seedlessness Choice criteria Quality
- Freshness - Price brand Buying place
Supermarkets - Specialized vegetables
fruits stores Advantage looked for Exoticism
natural growing practices
Positioning
Natural and delicious high-quality fresh citrus
with a hint of the exotic
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Marketing strategy
Product

• Small because natural
• Canadian quality requirements
• Critical success factors for the Canadian market

Price
CPFs FOB Callao price USD 0.65 per kilo
(CAD 0.39 per pound) Price in eastern Canada
approximately CAD 0.95 per pound Eastern
consumers ready to pay CAD 1.00 to 1.20 per
pound
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Marketing strategy
Promotion (recommended if no Canadian partner)
Magazines (Canadian Grocer) - Associations
(CPMA) - Trade shows National approach to
promote a positive association with Peru Ads on
health and wellness-related Websites (ex www.
canadianwellness.com) Booths during the major
public holidays and festivals in the major cities
small because natural
Place
Supermarkets Specialized vegetables and fruits
stores
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Recommendations
Distribution channels and accessibility to
consumer
Loblaws 43 of the fruit market - Large
volumes - No promotion cost Importers and
exporters North Bay Produce Canadawide
Fruits S. American exporters N. American
importers Indirect access to Sobeys Status
quo Focus on Western market - Expand
eastward gradually Use trade fairs to increase
notoriety on Canadian market
New product developments
Organic citrus Market growing at 20
annually Fruit juice Increase in fruit juice
consumption balances decrease in eating fruit
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Questions