Food distribution is democratized

In the United States, food distribution is based on several companies.From one state to another, food retailers vary.In Europe, where agrifood markets are more regionalized, consumers have the choice among several retailers.In Canada, given the long distances and the small size of the population, the distribution market remains much more homogeneous.

Despite the oligopoly formed by Loblaw-Provigo, Sobeys-Iga, Metro, Walmart and Costco, the Canadians are relatively well served.Quality is there and food affordability has never been such an important issue as elsewhere in the world.Canadians have access to one of the cheapest grocery baskets on the planet, according to the average household salary.But online purchase has never been a priority either, and the COVVI-19 crisis clearly shows us.

We always wanted to favor traffic in store.Before Amazon buys Whole Foods in 2017, electronic commerce was perceived as a superfluous service by most brands.This new way of doing things, however, prompted our brands to activate to offer us a cybernetic strategy.The essential aimed to respond to this threat presented by Amazon.Despite this, before the COVVI-19, the online food purchase in Canada barely represented 2 % of the total.Elsewhere, as the offer provides a variety, online trade was much more developed.It is therefore not a coincidence if the online purchase in the United States and Europe experiences a more marked advance than in Canada.Before the COVVI-19, some European countries reached 10 % of online sales and the United States was around 7 %.

But with the arrival of COVVI-19, online trade becomes the ideal refuge for those who want to avoid businesses at all costs, a situation that few managers had anticipated.Of course, due to containment measures, many cannot even move.A very different market.Almost quarter of Canadians are now planning to buy online food products regularly after the pandemic.

In other words, electronic commerce now represents a legitimate option in the eyes of consumers, so the brands adjust and mobilize.Sobeys-Iga, in partnership with Ocado, an English firm specializing in electronic commerce, recently launched a center to support its virtual strategy.Loblaws-Provigo has launched its program of meal kits choice for the president, preseyed and preprépaid meals for home delivery.Despite their efforts, the big distribution is struggling to meet a very strong demand.Some will even ask their customers online to give their place to those who have COVVI-19 or who cannot come physically on site.Some traders in Europe and the United States have experienced trouble due to the volume of online sales.Since the arrival of the COVID-19, we have witnessed a cyber full every day, but these grocers are still able to respond to this growing demand better than here.In short, virtual food Canada is in catch-up mode on the rest of the West, due to the COVVI-19.

A new market

Meanwhile, on the sidelines of all this, a new market settles.First, there are companies that rotate, from one sector to another.Sysco Canada, Pepsico and several other companies in processing and distribution that have never sold directly to consumers decide to do so now.Yes, you can order your pepsi directly at Pepsi now.Or you can buy 2.5 pounds of calmar tubes and tentacles slightly breaded for around $ 94, at Sysco Canada.Several restaurateurs have chosen to transform their restaurant into a grocery store, selling consumers looking for flour, sugar and other products that have become extremely rare.Several sell online.Beyond around fifty public procurement in Canada now sell online.The virtual food market has really taken off.Certain initiatives will not survive, certainly, but several will remain.

COVVI-19 redefines the rules of the game in distribution.Online trade allows everyone to have access to the consumer;producers, restaurateurs, transformers, wholesalers, agents, brokers, really everyone.

Essentially, COVID-19 democratizes food distribution, and consumers are likely to get out of it.Imagine being able to buy products from a farmer or a baker in your neighborhood, every week.Why not ?

The post-COVVI-19 will be fraught with consequences for the big distribution in Canada.Manage a medium -sized food store costs 5 to 7 % more than three months ago.Wages, health instructions, cleaning activities, protective equipment, everything costs more.With beneficiary margins that rarely exceed 2 %, it is certain that there will be fewer stores, and perhaps even fewer choices in store.But with electronic commerce which takes a much greater place, the combination of virtual and physical visits will probably offer a greater choice, and not the opposite.