Specialty grocery stores like Adonis are growing thanks not only to immigration, but also to the more diverse tastes of younger generations.
Posted at 12:22 p.m.
Rosa Saba
The Canadian Press
The chain's Ontario regional manager, Sherif El Gharbawy, says Adonis is the “first stop” for many newcomers to Canada, who often hear about the store before they even arrive.
“All the new arrivals, this is where they start. It's a new wave of loyal customers. »
Changing customer tastes are also apparent in conventional stores, where “international departments” are no longer always enough to meet demand.
“Over the last 10 years, grocers have really done a good job offering culturally diverse products,” says Salima Jivraj, account director and multicultural lead at Nourish Food Marketing.
She says if grocers have made great strides in expanding their offerings, it's probably because they know how lucrative it can be.
When it comes to advertising and marketing, multiculturalism is now the norm.
Salima Jivraj, Account Director and Multicultural Manager at Nourish Food Marketing
Demographic evolution… and tastes
The 2021 census listed more than 450 ethnic and cultural origins within the Canadian population. Statistics Canada reports that racialized groups are all experiencing growth – in 2021, South Asians, Chinese and Black people together made up more than 16% of the Canadian population. Nearly a million people identified as Filipino, while 1.3 million identified as Indian and 1.7 million as Chinese.
New Canadians are an integral part of the strategy of retailers and food producers, says Paul Hogan, vice-president and general manager of Conagra Brands International.
Canadian palates are evolving for other reasons, particularly among younger generations, says Mme Icing
“People in general are just more interested in different flavors from around the world and they are more adventurous when it comes to food. »
She attributes this in part to the restaurant world.
“A lot of our inspiration for what we want to eat and what we aspire to eat comes from food service,” she says, adding that social media also plays an important role in showcasing younger generations. to different foods and recipes.
As grocers strive to meet changing customer demands, specialty stores like Adonis and Asian supermarket T&T are seeing steady growth, along with the support of Canada's largest grocers – T&T was purchased by Loblaw in 2009 and recently expanded its operations to the United States.
Metro bought a majority stake in Adonis in 2011 before acquiring the company in 2017. Mr. El Gharbawy sees it as a sign that large grocers are trying to attract a growing group of customers who are no longer considered a niche clientele.
Adonis has added five stores to its network since 2017. The company's vice-president and general manager, Éric Provost, foresees greater growth, particularly in Ontario, but also potentially in other provinces.
More targeted offers
Like Adonis, T&T has seen its customer base expand over the years.
“We have gone beyond the simple Asian clientele,” rejoices Tina Lee, general manager of T & T.
When retailers that have historically been associated with a specific community become popular with all demographics, Mr. Hogan calls this phenomenon “channel blurring.”
The line is even more blurred when products from specialty grocery stores make their way into other stores. During Loblaw's recent earnings conference call, CEO Per Bank said the company has introduced more T&T-branded products into its stores to better meet the needs of the growing immigrant population.
Some Adonis products can be found in other Metro-owned stores as well as products manufactured by Phenicia Group, the importer and producer of Adonis.
Adonis stores vary somewhat depending on local demographics, Mr. Gharbawy said, noting that some stores' product assortment may be more Middle Eastern-oriented, while other stores may cater more to Greek, Italian or Eastern European customers.
Grocers, whatever their sector of activity, are more attentive to the communities in which they operate.
“They have data by neighborhood and their offers are therefore increasingly sophisticated and targeted according to the customers around them,” says Mr. Hogan.
As immigration has increased the Canadian population over the years, it has become increasingly important to meet the needs of newcomers and other generations of immigrants, says Paul Bravi, executive vice-president of Metro for Ontario .
“The next ten years will be marked by an acceleration of growth. This is essential for our future,” he said.