The Caribbean

A Summary Export Guide

to the Consumer Food Market

September 1997

Prepared for the U.S. Department of Agriculture

by Fintrac Inc.

This guide is an overview of ten individual guides available, covering the following countries and territories: Aruba and Curacao; the Bahamas; Barbados; British Territories, comprising Anguilla, the British Virgin Islands, the Cayman Islands, and the Turks and Caicos; the Dominican Republic; the French West Indies, Guadeloupe and Martinique; Haiti; Jamaica; and the Organization of Eastern Caribbean States, comprising Antigua and Barbuda, Dominica, Grenada, St. Kitts-Nevis, and St. Vincent and the Grenadines.

For more information, contact USDA/FAS offices in the Dominican Republic and Miami:

Kevin Smith, Agricultural Counselor

(for the Dominican Republic, Jamaica, and Haiti)

 

Margie Bauer, Director

(for all other countries covered by these guides)

 

List of Abbreviations Used

Table of Contents

Introduction .................................................................................1

Basic Facts (Geography, Demographics, Infrastructure) ..................1

Consumer Trends and Attitude Towards Imports .............................2

The Wholesale Food Sector ..........................................................2

The Retail Food Sector .................................................................4

Wholesale and Retail Sectors on the Individual Islands ....................5

Aruba and Curacao ..............................................5

Bahamas ............................................................5

Barbados ............................................................6

Bermuda .............................................................6

British Territories .................................................7

Anguilla ......................................7

British Virgin Islands ....................7

Cayman Islands ...........................7

Turks and Caicos .........................7

Dominican Republic .............................................7

French West Indies ..............................................8

Guadeloupe .................................8

Martinique ...................................8

Haiti ...................................................................9

Jamaica ..............................................................9

OECS .................................................................9

Antigua .......................................9

Dominica ....................................9

Grenada ....................................10

St. Kitts ....................................10

St. Lucia ...................................10

St. Vincent ................................10

 

Business Relationships/Choosing a Partner .................................................................................10

Selling through Local Agents .......................................................................................................11

Selling Direct to Retailers ...........................................................................................................11

Selling Through Florida-based Wholesalers ..................................................................................11

Laws and Regulations Concerning Imported Food .........................................................................13

Tariffs and Other Taxes ...............................................................................................................13

Consumer Food Imports .............................................................................................................13

US Position ...............................................................................16

Competition ...............................................................................17

 

Best Prospects for US Exporters .................................................................................................18

Appendix 1: Contact Information for Florida-Based Wholesalers .....................................................22

Appendix 2: Representative Tariff Rates for Caribbean Countries .....................................................25

Introduction

The Caribbean, because of its proximity and close ties to the United States, is a natural market for US consumer food products. A series of ten exporters’ guides to the Caribbean market for consumer-ready foods has been produced by the US Department of Agriculture in order to assist US food exporters to enter, and succeed in, this market. This particular summary guide is intended as an introduction to the individual guides, which present information on 20 countries and territories in the Caribbean, including background data on their wholesale and retail sectors, statistical analyses of consumer-ready food imports, regulations regarding food imports, duties and other applicable taxes, and lists of buyers.

Basic Facts (Georgraphy, Demographics, Infrastructure

Though relatively small in terms of population, the Caribbean is an extremely diverse region. Between the 20 countries and territories covered by the USDA export guides, are wide differences in culture, language, and relative prosperity. Some of the basic data regarding each individual country or territory is summarized in the table below:

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Infrastructure in the Caribbean varies widely depending on the island. In most cases, the port facilities are adequate to excellent. The popular tourist islands tend to have the best airport facilities and the most international carriers. Internal road systems vary widely. The relatively wealthy islands tend to have more modern, well-developed road systems than the less wealthy ones. If an island is very small, it may not matter so much that the roads are poor but in the case of relatively large islands, poor roads can present a challenge for shipment of perishable goods.

Consumer Trends and Attitude Towards Imports

Consumers in the Caribbean are essentially like consumers everywhere, in that their food purchasing decisions are based on a range of factors which include price, quality, and familiarity. While there are many wholesalers and retailers who say that the Caribbean is first and foremost a market conscious of price, there are others who swear by the importance of promotion and established brand names. It is certainly true that products must be price-competitive, especially on the islands where income levels are relatively low. On the other hand, because most food is imported, and most imports are heavily taxed, people are used to paying relatively high prices for food. In the Bahamas, for example, a gallon of fresh milk can cost upwards of four dollars.

The attitude toward US goods in the Caribbean is generally positive. With the exception of the French West Indies, US food items are already commonly seen in supermarkets and are familiar to many people. US cable television is also widely available throughout the Caribbean, exposing consumers to American culture and products. In addition, there is a lot of travel in both directions as tourists from the US visit the Caribbean beaches and Caribbean citizens come to the US to study, work, do business, and, in some cases, live. Both Jamaica and the Dominican Republic have large expatriate communities in the US, for example. All these cultural exchanges between the Caribbean and the US has led to Caribbean people becoming more familiar with American tastes and trends.

The Wholesale Food Sector

Wholesale food distribution in the Caribbean is mostly carried out by importer-distributors. There are usually only a few sizeable importer-distributors per island, and these companies usually act as manufacturers’ agents. Under a typical agency agreement, the wholesaler is the exclusive distributor for a given product. The prevalence of non-competition agreements, where manufacturers make wholesalers promise not to carry any product which competes with theirs, depends on the island. In some of the larger markets, such agreements are common whereas on some smaller islands, wholesalers refuse to sign non-competition agreements because they feel such agreements threaten their livelihood. The importer-distributors usually buy direct from the manufacturers, or in some cases from Florida wholesalers. They distribute product to retail outlets, hotels, restaurants, and smaller wholesalers.

On the larger tourist islands, there are wholesalers specialized in the hotel, restaurant, and institutional (HRI) trade, but on many of the smaller islands the HRI and retail trades are serviced by the same wholesalers. Hotels on many of the smaller islands buy retail, rather than institutional-sized, packs. Some of the resorts have their own buying operations in the US which supplement local supplies. Club Med in St. Lucia, for example, is supplied by a Florida-based wholesaler while Sandals in Jamaica has a buying office in Miami.

Below the level of the importer-distributors, there are usually a number of smaller wholesalers who either buy directly from the manufacturer, from Florida wholesalers, or from local distributors. These smaller wholesalers may operate their own retail outlets, and will sell to smaller retailers as well as the HRI trade.

Informal commercial importers, or ICI’s, operate to some degree on all of the islands. This so-called ‘suitcase trade’ consists of individuals who travel to other countries (usually the US) and return with food products packed in boxes or suitcases. In some cases, the ICI’s have the products shipped back to their home islands. Upon return, the ICI’s sell the products door-to-door or make deliveries to customers who have placed orders. ICI’s usually do their buying at any number of large cash and carry wholesalers in South Florida or Puerto Rico. Though in general ICI’s represent a small portion of the market, in Jamaica they are very active and account for an estimated ten percent of all food imports.

The larger wholesalers generally have at least one warehouse in the proximity of the port. While some wholesalers only carry dry goods, others have chill rooms and freezers. Most of the warehouses of the larger wholesalers are mechanized and have computer-controlled inventory systems. They own or lease trucks and vans to undertake deliveries to their customers, and in some cases hire commission salespeople. Smaller wholesalers have less warehouse space, and are less likely to possess cold storage facilities.

In general, the wholesale food distribution business in the Caribbean is quite stable. Though there may be some changes around the edges, the primary distributors are likely to remain the same. The large wholesalers are well-established companies, in some cases having operations on several of the islands. They have substantial capital, experience, and contacts. The main threat to the larger wholesalers is, therefore, not so much the emergence of hungry new local competitors, but the expansion of the supermarket industry and the aggressiveness of Florida-based wholesalers.

Supermarkets are modernizing and/or expanding on almost all of the islands, some at a faster pace than others. In the Bahamas, for example, a new warehouse-type retailer is changing the face of retail food sales while in the Dominican Republic, new supermarket openings are expected to continue into the foreseeable future. This expansion represents both an opportunity and a threat to local wholesalers. If the wholesalers can offer good prices and superior service they can benefit from the growth of supermarkets. In fact, this seems to be taking place in the French West Indies. However, many supermarkets have elected to do their own buying, as they find they can negotiate better prices from overseas suppliers than from local distributors of the same products. In some cases, the supermarkets have even opened their own wholesaling operations and gone into competition with the traditional wholesalers.

Part of the reason for supermarkets’ buying direct is that Florida wholesalers are making it easy to do so. Companies such as Fleming International and Associated Grocers distribute their catalogues to supermarkets all over the region, and offer convenient, efficient service and shipping. If a Florida wholesaler can offer the same product at lower prices than the local distributor, supermarket owners will often choose the Florida wholesaler.

Competition from supermarkets and US wholesalers will continue to keep local wholesalers in the Caribbean on their toes. Local wholesalers’ ability to effectively price, promote, and ensure wide distribution of food products will be key to maintaining their dominance in the market.

The Retail Food Sector

Retail food outlets in the Caribbean come in all shapes and sizes. Sometimes they can be difficult to categorize by name only. For example, a supermarket in the Eastern Caribbean may be only 8,000 square feet in area, possess two cash registers, and accept only cash while certain supermarkets in the French West Indies, the Dominican Republic, or Jamaica can exceed 50,000 square feet and closely resemble a US supermarket in terms of modern equipment and range of products offered.

The Bahamas and Barbados, two relatively small but wealthy islands, each have one large-format food retailer, and both are reportedly doing quite well in terms of sales. Convenience and price are major selling points of the large supermarkets, but the degree to which supermarkets are convenient depends on the island. For the wealthier islands with good transportation networks, it is convenient and economical to hop in one’s car and go to the store, whereas for the rural population in some of the OECS countries, small counter shops are more convenient, even if they might be more expensive and offer less in the way of goods.

Supermarkets can encompass the smaller stores (often called mini-marts), which only have a couple of aisles and mostly convenience goods, as well as very large outlets with in-house delis, bakeries, meat and seafood departments. Most supermarkets in the Caribbean are somewhere in between these two examples and relatively small by US standards. A freezer section is standard, as frozen meat (especially chicken) is a supermarket staple. Produce sections are generally limited, as a result of restrictions on produce imports and inexperience in handling fresh produce at the supermarket level. There may be some gourmet or high-priced items, but most of the dry goods sold are items like canned meats and vegetables, powdered and canned milk, breakfast cereals, snack items such as crackers and biscuits, condiments, and fruit juices.

On many of the islands, the larger supermarket retailers belong to the same companies or groups of companies as the major wholesalers. Where this is not the case, and the supermarkets are independent of the wholesalers, the supermarkets will tend to be interested in importing directly from the manufacturer or from US wholesalers, as noted in the preceding section.

Below the level of the supermarkets are the small shops. Known as ‘colmados’ in the Dominican Republic, ‘counter shops’ in the OECS, and ‘Lo-Lo’ in the French West Indies, these tiny outlets may be only a few hundred square feet in size and generally offer a very limited range of items. They are usually family-run and have a neighborhood customer base. Though they sometimes offer perks such as store credit to their loyal customers, the main draw of these stores is convenience. On certain islands, there is literally at least one of these stores on every street corner and in every village, making it easy for anyone to shop there.

It is difficult to make generalizations about the retail food sector in the Caribbean as the situation tends to differ greatly depending on the island (see Wholesale and Retail Sectors on the Individual Islands, below). On the Dominican Republic, for example, the supermarket sector is growing rapidly, whereas on many OECS islands the market is said to be saturated and unlikely to grow. This doesn’t mean that small islands are immune from industry trends, however. The Bahamas has one of the only warehouse-type retail outlets in the Caribbean, which sells club-packed items much like a Costco or Sam’s Club in the US. Similarly, there is a large supermarket in Barbados with 27 aisles, and there are plans underway to open an 80,000 square foot supermarket in Aruba.

Even on the smallest islands, modernizing and upgrading supermarkets can result in better sales. In Dominica, a recent IGA franchisee more than tripled in size, greatly diversified its product line, became the first store on the island to sell fresh milk, and was featured in Progressive Grocer magazine. There are now several islands which have IGA supermarkets and it appears that IGA’s supplier for the Caribbean, a wholesaler in Florida called Supervalue, is interested in expanding further.

Supermarket expansion is putting pressure on the smaller stores, which generally charge higher prices and offer less items than the supermarkets. It also is putting pressure on the importer-distributors to lower prices and upgrade service, as supermarkets are not shy to do their own importation if they feel this will save them money. As one Caribbean wholesaler said, "Shipping is no longer a big mystery, and even the small supermarkets are bringing in two trailers a month."

Wholesale and Retail Sectors on the Individual Islands

The largest wholesalers in Aruba are Frasa International Trading NV, Lee Tai Trading, Compra NV and Consales Aruba NV. The largest wholesalers in Curaçao include Consales Curaçao, J.P. Maal & Co., Posner’s Agencies Curaoo and C. Winkel & Zomen. All of these companies act as manufacturers agents and distributors. There are a number of smaller wholesalers who also act as manufacturers agents for a limited number of products.

The leading supermarkets in Curacao, which include Certified Groceries (two stores), Kong Hing Supermarkets (two stores), Ling & Sons, Supermercado Favorito and Pueblo Food Center, account for over 50 percent of all sales. An 80,000 square foot store from Certified Groceries is expected to be opening soon, making it the biggest grocery store in Aruba. There are over 100 minimarts and smaller shops.

Curaçao has 5 major supermarkets: Centrum Supermarkets (2), Esperamos Supermarket, Las Vegas Supermarket, Mangusa Supermarket (2) and Pita Supermarket (2). As in Aruba, these supermarkets also account for over half of all food sales. These are located mostly around the Willemstead metropolitan area. There are about 25 mini-markets and over 100 smaller shops, known as ‘tokos’.

Bahamas

The major wholesalers in the Bahamas include Asa H. Pritchard, Jagar, D’Albenas, and Island Seafood. Other wholesalers include Nassau Hotel and Restaurant Supply, Grand Bahamas Food Company, and Thompson Trading Company. In all, it is estimated there are less than 20 wholesalers in the Bahamas. Wine, beer, and liquor wholesaling is handled by certain companies which specialize in this area, including Burns House, Wholesale Wines and Spirits, Bristol Cellars, and the William Brewer Company.

While all the major wholesalers try to carry a full line of fresh, frozen, and dry products, Jagar and Island Seafood specialize in providing fresh produce and frozen meats and seafood, respectively. Wholesalers will, to a certain extent, buy product from each other in order to offer clients a wider range of products. Some companies, like Jagar, also import bulk products under a private label.

There are 228 listed grocery stores in the Bahamas, most of them small, independent grocers. However, most of the food sales are accounted for by three chains of supermarkets; City Markets, Super Value, and John Chea and Sons. There are also two retail club outlets, Solomon’s and Costrite, which offer open membership to the public and sell products in ‘club packs’ and large, institutional size, containers. Costrite has been particularly successful in selling the warehouse club format in the Bahamas, and their store, which sells household merchandise as well as food, has expanded to 90,000 square feet in size.

Barbados

The seven largest food wholesalers account for about 70 percent of all food imports, the remainder being effectuated by small wholesalers, supermarkets and chains of retailers. Hotels and restaurants rarely import food products, preferring to buy from local wholesalers or supermarkets. The largest wholesalers include A.S. Bryden & Sons Ltd., M.E.R. Bourne and Co Ltd., T. Geddes Grant, Frank B. Armstrong Ltd., Spring Garden Foods Ltd. (a subsidiary of Barbados Shipping and Trading), and Ridge View Ltd. One company, Hotel Food Supplies Ltd, specializes in the supply of the HRI trade.

There are between 15 to 20 major supermarkets including five or six chains in Barbados. Super Centre Ltd, operator of four supermarkets, is a subsidiary of Barbados Shipping and Trading, which also owns importer-distributor Spring Garden Food Ltd. Another group, the Plantations Trading Company, owns two supermarkets. Supermarkets are primarily located in urban and suburban areas and are spread all over the island. They account for 75 percent of food sales to the consumer.

Convenience stores and small shops are more numerous. They are estimated at 100 to 150 in total and are present in both urban and suburban areas. Most are owned by independent individuals or family businesses while some are subsidiaries or affiliated to some larger retailers or wholesalers. In all, they account for about 15 percent of food sales. Barbados also has 3 covered markets. Together with small street food stalls and informal retailers they account for the remainder of the total food sales, about 10 percent of the market.

Bermuda

There are about a dozen food wholesalers in Bermuda. Five of them dominate the market and account for the majority of all imports: BGA Group of Companies, Butterfield & Vallis, Winter-Cookson, Petty, Ltd., A.C. Brewer, Distributors, Ltd and Viking Food, Ltd. Together, these five companies account for between 80 and 90 percent of total food imports to Bermuda. Primary sources of food supplies are wholesalers on the Eastern Coast of the US, particularly in the New York/New Jersey area.

There are about 15 to 20 supermarkets and convenience stores in Bermuda. One company, the Marketplace Ltd., owns eight outlets and is the leading food retailer. Other important players include the Arnold Supermarkets (three stores), Lindo's Family Foods Ltd. (two stores), Miles Market (one store), and White & Sons Ltd. (one store). Supermarkets are concentrated mostly in the Hamilton area. Bermudan supermarkets are similar in design to their US counterparts. They have separate departments for deli, fresh produce, meat, dry foods and non-food items such as household supplies. Most stores have between six and 15 checkout stands, are equipped with bar-code scanners, and accept debit cards.

British Territories

Anguilla

Anguilla is a small island, so the wholesale operations are quite limited. All of the larger supermarkets also sell on a wholesale basis, but none of these companies offers delivery service. Anguilla’s major wholesalers and retailers are the same companies, and include Albert’s, Ashley’s and Sons, and the IGA Fair Play Food Center. These companies import for their own supermarkets, and then also sell to the hotels and restaurants on the island. Most food products are imported through Miami. Wholesalers in St. Maarten supply some supermarkets in Anguilla.

British Virgin Islands

There are only a few food importer-distributors in the BVI, all located in Road Town on Tortola. Road Town Wholesale is by far the largest, followed by K-Marks, Supa-Value, and Bobby’s. Half of Road Town’s imports are for their four supermarkets, with the other half going to hotels, other supermarkets, and boats. Yacht chandlery is reportedly big business in the BVI, possibly accounting for more food sales than the hotel trade. There are about 20 supermarkets and grocery stores in the BVI, mostly located on Tortola. Besides Road Town’s outlets (known as Riteway), K-Marks has three stores, and Bobby’s has two.

Cayman Islands

Three wholesalers dominate the market: Jacques Scott & Co and its subsidiary Cayman Wholesale, Cayman Distribution Co., and Kirkconnel Brothers Co. Supermarkets account for about 90 percent of food sales to the consumer. Foster’s Food Fair is the largest food retailer and owns two supermarkets, one in George Town and another, the largest in the Caymans, in West Bay. Food Fair’s competitors are the Kirk Supermarket, a division of the wholesale company Kirkconnel Brothers, Hurley’s Supermarket, a division of the wholesale company Cayman Imports Ltd., and Republix Supermarket.

Turks and Caicos

About ten companies account for 95 percent of food imports. They include four wholesale companies, three supermarkets, and several convenience stores and hotels and restaurants. Major wholesalers such as T.C. Trading, Provo Hits, and Community Enterprises are located in Providenciales, the main tourist location. These firms primarily supply the hotels and restaurants. The three supermarkets, First Choice IGA, Island Pride Supermarket and Quality Supermarket are also located in Providenciales, and they also sell wholesale to grocery stores throughout Turks and Caicos.

Dominican Republic

The Dominican food distribution system is mostly controlled by importer-distributors. There are more than 20 large companies of this sort, many of them acting as manufacturer’s agents with exclusive distribution agreements. It is estimated that 80 percent of food imports are accounted for by importer-distributors of this type. The importer-distributors sell wholesale to large and small supermarkets, smaller wholesalers (known as almacenistas), restaurants, hotels, and the thousands of small shops known as colmados. Almacenistas sell to smaller supermarkets and the colmados.

There are currently 4 supermarket chains in the Dominican Republic; Nacional (with 6 stores), Pola (3 stores) and Dominicano (2 stores), and Asturias (2 stores). There are several other independent supermarkets, including Hipermercado Ole, Supermercado CD, Casa Perez, and Mercantil. These supermarkets normally are located in relatively wealthy neighborhoods of Santo Domingo, though some supermarkets have recently been built in middle and lower income sections of the capital, as well as other cities.

Most food sales in the Dominican Republic (most estimates are between 80-90 percent) are accounted for by colmados, or small shops. There are over 50,000 colmados in the Dominican Republic, with about 12,000 of these located in Santo Domingo. Colmados generally don’t compete on prices, since convenience and location is their major asset. Pulperias are very small stores that only carry essential items and basic staple foods (ie. rice, beans, plantains, spices, etc).

French West Indies

Guadeloupe

Guadeloupe has three hypermarkets, 16 supermarkets, about 100 superettes and more than 300 smaller retailers (Lo-Lo). Two major groups dominate the food distribution market. The group Hayotte & Des Pointes is the leader and includes the wholesale company SAS Hyper Destrellan, the hypermarket Continent, the chain of supermarkets Champion, and the chain of superettes 8-a-8. The competing group is Primisteres Reynoird which, in addition to their wholesale company, owns the Cora and Match chains of supermarkets, as well as the Ecomax chain of discount stores. Other wholesalers include includes Sogedial (which, in Guadeloupe, is composed by Cadi-Surgeles, Sofriber and Sofroi) and Sodial Nouy. Sogedial is a prime supplier to the group Destrellan (Continent, Champion and 8-a-8), and Sodial Nouy works closely with the Groupe Reynoird (Cora, Match).

Martinique

In Martinique, five companies account for most food imports. Sogedial Martinique, a franchise of the French company Promodes, is by far the largest importer and wholesaler. Sogedial is the leading supplier, or co-supplier, to other Promodes franchise retail stores such as the two hypermarkets Continent and Euromarche, the Champion supermarkets, and the 8-a-8 chains of superettes. Rene Lancry S.A. and Multigros S.A. are Sogedial's closest competitors in Martinique. Lancry also owns the Continent hypermarket, and is a leading supplier to two other hypermarkets (Euromarche and Hyper U) as well as to the Escale chain of supermarkets. Multigros owns its retailing stores, a chain of ten supermarkets called Super H, and is currently planning the opening of a hypermarket under a Casino franchise. Ets. George de Negri and Sodicar are the other major wholesalers in Martinique.

There are roughly 1,000 food retail outlets in Martinique, but the five hypermarkets, 22 supermarkets, and about 200 superettes and libre service account for the majority of sales. The five hypermarkets are Cora, Continent, Euromarche, Hyper U and Rond Point. A sixth one, Casino, is expected to open soon. All these hypermarkets are located in Fort de France or Lamentin. The leading chains of supermarkets include Match, Champion, Super H and Escale. They are all located in the three largest metropolitan areas: Fort de France, Lamentin, and Schoelcher. Hypermarkets and supermarkets combined account for more than 60 percent of retail food sales in Martinique. These modern and well-equipped stores are usually franchises of French retail giants, owned and operated by local companies.

Haiti

Major food wholesale companies include Alimpex, D’Adesky Import Export, Francheco Import Export, Generale d’Importation, and the Group Brandt. Major importing supermarkets include Caribbean Supermarket, K-Dis, Market Saint-Pierre, and Public’s Supermarket. Haitian wholesale companies tend to specialize in selected product lines. Some represent brands from major US or European manufacturers but also carry non-proprietary products. Comparatively, supermarkets tend to import a wider variety of items.

Street stalls and open air markets account for 90 percent of food sales to the consumer, the remainder being effectuated by supermarkets and convenience stores. There are four major open air markets and about 40 supermarkets in Port-au-Prince/Petionville. Each of the other cities has one or two open air markets, and between two and four supermarkets.

Jamaica

Much of the Jamaican food distribution system is controlled by importer-distributors. These companies include Grace Kennedy, T. Geddes Grant, Facey Commodity, Wisynco Trading, Charles E. Ramson, Musson, Amalgamated Distributors, MAPP Successors, and Hand Arnold. Many smaller wholesalers and wholesale supermarkets buy from the large importer-distributors as well, and then distribute to small shops, restaurants and individuals. HRI purchases account for about 5 percent of total food sales in Jamaica. Some of the larger resort hotels import food directly, but most of the hotels rely on local distributors to supply them. Nico, Ltd. and Caribbean Producers have captured much of the market share in this area. Informal commercial importers, or ICI’s, account for about 10 percent of Jamaican food imports.

There are several types of retail food outlets in Jamaica, including upscale supermarkets, conventional large supermarkets, convenience supermarkets, local family markets, convenience stores, wholesale markets, as well as specialty and street vendors. Upscale supermarkets include the Sovereign Market and John Wong Supermarket. Hi-Lo Food Stores and Shopper’s Fair are among the large supermarkets. There are several hundred smaller stores, mostly supplied by local wholesalers and ICI’s.

Antigua

The largest wholesalers on Antigua are A.S. Bryden and Sons, Anjo, Dew’s, Hutchinson, and Goodwill Agencies. All of these companies function as manufacturer’s agents and distributors, and together represent most of the major branded products sold on the island. These companies are mostly into dry goods; two other companies, Island Provision and Trans-Caribbean Marketing, tend to focus more on fresh and frozen products. The largest supermarkets in Antigua are the Epicurean and Food City, each with two outlets. Many of the supermarkets on Antigua also function as wholesalers, selling to other supermarkets, hotels and restaurants.

Dominica

The largest importer-distributors in Dominica are H.H.V. Whitchurch, O.D. Brisbane and Sons , and J. Astaphan’s. These companies also run the largest food retail outlets on the island. A.C. Shillingford, Brisin Agencies, and Green’s Wholesale are some other well-established island wholesalers. In addition to these companies, there are roughly a dozen smaller wholesalers, many of whom also have retail outlets.

Grenada

The largest wholesalers on Grenada are Bryden and Minors, George F. Huggins, Jonas Brown and Hubbard, Independence Agencies, and R.E. Walker and Company. Huggins and Hubbard own two supermarkets each and are the biggest food retailers on Grenada. There are only about 15 supermarkets and mini-markets in Grenada.

St. Kitts

Ram’s, which owns three supermarkets, is the largest food importer in St Kitts. The other sizeable wholesalers are O.D. Brisbane, David Coury and Company, Frank B. Armstrong, and National Supply Company. IGA franchise Horsford’s Value-Mart and Barker and Kelly run the other large supermarkets on St. Kitts. There are over thirty businesses listed as supermarkets in St. Kitts, but most of these are on the minimart level. Several of these stores report that they do some direct importing from Miami wholesalers.

St. Lucia

The largest importer-distributors in Saint Lucia include Bryden and Partners, Peter and Company, Renwick and Company, and J.Q. Charles, Ltd. Reflecting St. Lucia’s status as the largest tourist economy in the OECS, there are a number of companies which specialize in importation and distribution of fresh produce and frozen meats, fish and poultry. These include St. Lucia Cold Storage, Trans-Caribbean Agencies, Evans International, and Chef’s Choice Meats. J.Q. Charles owns the only supermarket chain on the island, with ten outlets island-wide and another one being built in Vieux Fort in the south of the island. There are approximately 40 supermarkets or mini-markets on Saint Lucia, some of which import product from wholesalers in Florida in addition to buying from local distributors.

St. Vincent

The largest importer-distributors in St. Vincent are the Goddard Group (comprised of Corea’s, Hazell’s, and Hutchinson’s), C.K. Greaves and Company, and Bryden and Sprott. Other wholesalers include W.J. Hubbard’s, Frank B. Armstrong, and J.G. Agencies. There are about 25 listed grocery stores in St. Vincent and the Grenadines, and Greaves and Corea own the only supermarkets of any size.

 

Business Relationships/Choosing a Partner

Business hours in the Caribbean are usually 8 a.m. to 4 p.m. or 9 a.m. to 5 p.m., with one or two hours off for lunch. Business dress will depend on the island, but it is a good idea to dress conservatively for a first meeting. Face-to-face contact is important and many of the larger wholesalers report that their suppliers visit about twice a year. Any assistance with advertising, promotion, and educating consumers about new products (such as point-of-sale materials) is especially appreciated. 30-day credit terms are fairly standard in the Caribbean, although many established wholesalers benefit from an open account with their suppliers.

There are basically three options for any exporter who wants to sell food products in the Caribbean; appointing a local wholesaler to be an agent and exclusive distributor, selling directly to the retail outlets, or selling through Florida-based wholesalers. Each route has its advantages and disadvantages, and many exporters choose some combination of these three selling options. For example, many companies with exclusive distributors on the islands also sell their products through Florida wholesalers. However, selling directly to retailers while at the same time having an agent is inadvisable, as this is taking business away from the agent.

Selling Through Local Agents

Most companies who sell food products in the Caribbean do so through local agents. The advantages of selling products through a local agent are that the agent knows the market, knows all the retailers, and is able to market and promote the products through advertising and in-store merchandising. The largest wholesalers on all of the islands function as agents and offer the widest possible coverage, from the largest to the smallest retailers, to hotels, restaurants, and sometimes directly to individuals through warehouse sales. In many cases, the largest wholesalers on the islands are also the biggest retailers.

The disadvantage of selling products through local agents is that their overhead and other costs are reflected in the final retail price. That is, the price may be higher than if the product was sold directly to the retailer. Of course this depends on the agent and his particular mark-up, as well as the landed cost of the product, which is negotiated between the manufacturer and the agent. On some islands, agents are able to offer such low prices to their customers that there is no incentive for the customer to import directly.

Selling Direct to Retailers

More and more retailers in the Caribbean report that they are importing product directly from the US, either from manufacturers or Florida-based wholesalers (see below). The advantage of selling directly to a retailer is basically one of cost. By cutting out the agent middleman, the retailer can get a better deal on the product and offer it at a less expensive retail price, thus spurring sales.

The main disadvantage of selling directly to retailers as opposed to selling though local agents is the hassle factor. When selling through local agents, the seller only has to deal with one buyer per island, whereas selling directly to retailers may require dealing with several customers per island, with all the attendant paperwork and time costs. It may make more sense to sell directly to a retailer only if the retailer is relatively large or operates several outlets. In any case, most of the smaller supermarkets who import directly do so through Florida wholesalers.

Selling Through Florida-based Wholesalers

Many independent supermarkets, and quite a few food wholesalers, in the Caribbean buy their products from Florida-based wholesalers. In fact, some industry sources estimate that these wholesalers account for one-half to two-thirds of US food exports to the Caribbean. The success of these wholesalers is based on their proximity to the market, as well as their ability to offer a full range of products with the supporting service at a competitive price.

While most of the Florida wholesale companies tend to focus on selected categories such as meat, fish, produce or specialty foods, the largest ones offer a full line or a wide range of products. These wholesalers buy products from manufacturers and producers throughout the United States. Because of their size, they achieve a substantial economy and are able to offer products at a low price, sometimes at a price even lower than that offered by the original manufacturer to direct importers. Indeed, many exclusive agents of major brands in the Caribbean complain that competing local wholesalers or retailers are able to import exactly the same products from Florida at prices that challenge their position. This practice is called ‘parallel trading’.

Typically, a Florida wholesaler supplies all of the Caribbean islands and sells to a wide range of customers, including in-country wholesalers, supermarkets, hotels, restaurants, cruise lines, small grocery stores and individuals. Most companies require a minimum first time order of $5,000 to $10,000, or one container load. Shipments have to be prepaid by cash or letter of credit until a relationship is established. Credit terms vary from one to four weeks or more for established customers. Some of the Florida wholesalers also support importers with promotion, advertising, merchandising, and point of sale material.

A number of Florida wholesalers compete to supply the Caribbean food market, with three of them dominating the market. Fleming International Ltd. is by far the largest competitor. This company is a $200 million subsidiary of the Fleming Companies, Inc., a $16-billion food distributor, wholesaler and retailer, which serves as the principal source of supply to more than 3,100 supermarkets in the US. As part of the Fleming group of companies, Fleming International buys food products at a large discount from US manufacturers, and offers them to importers at substantial savings. Fleming supplies the Caribbean from its 763,000 square foot warehouse in Florida. It carries a wide range of products and regularly publishes its price list for six categories of products: dry groceries, meat, produce, bakery, general merchandise, and health and beauty. Fleming also distributes under its own private labels Marquee, Hyde Park and Rainbow, which are marketed in both the domestic and the international markets. To open an account, the required minimum order is $5,000.

Associated Grocers of Florida, Inc. also accounts for an important share of the Caribbean food market. As a cooperative, this company is owned by its US member retailers but it services both members and non-members, domestic or overseas. Associated Grocers offers a complete line of services and products including grocery, frozen, dairy, meat, produce, and non-food items. It carries more than 15,000 items and services its Florida and Caribbean customers from a total of 780,000 square feet of warehouse space in Miami. Associated Grocers of Florida is also the organizer of a food show that bears its name. This show is one of the largest shows for food products in the Caribbean basin and takes place every six months.

The third major Florida wholesaler supplying the Caribbean is Walton & Post Inc. which also carries a wide range of products and directly competes against Fleming and Associated Grocers. Each of these three major wholesalers offer support services to retailers yet compete primarily on price. They promote themselves by means of advertising, participation in food shows, and direct sales, yet reputation and word-of-mouth still remain the most important promotion tools for these companies.

Supervalu, a $16 billion domestic food distributor and wholesaler, also exports food products to the Caribbean and is the exclusive IGA distributor for the region. Supervalu delivers private label IGA products to all of the IGA franchisees in the Caribbean, as well as selling other lines of products to non-IGA stores. The remainder of the Florida wholesalers are smaller in size and tend to focus on selected lines of products. For instance, Tavilla is a major wholesaler for produce; Beaver Street Fisheries Inc. is specialized in meat and seafood; and Global Specialty Trading Corporation distributes candies, confectioneries, gourmet and specialty foods.

Laws and Regulations Concerning Imported Food

Regulations regarding food imports vary widely depending on the country. A general rule of thumb is that the richer the country, and the smaller the proportion of the population involved in agriculture, the less complicated the importation process. It is quite straightforward, for example, to export food products to the Bahamas as long as the products are healthy and wholesome. Exporting food products to the Dominican Republic, on the other hand, or the OECS islands, can require numerous permits and licenses. Importation of certain products may be strictly regulated or banned outright in order to protect local producers.

Much of the onus for getting the necessary permits and licenses, however, will fall on the importer, which is a good reason to choose an experienced importer who knows how to navigate the regulatory process. In general, US food laws regarding labelling and packaging, as well as USDA phytosanitary certificates for produce and certificates of wholesomeness for meat are well-accepted in the Caribbean. For more information, please consult one of the ten market-specific export guides in the USDA series for which this general summary guide has been developed.

Tariffs and Other Taxes

Most Caribbean governments rely heavily on customs duties to finance their operations, so as a result tariffs on imported goods tend to be rather high. Duties are usually calculated using the CIF value of the goods. In addition to customs duties, many countries also apply VAT taxes, stamp taxes, administrative fees, and other levies to imported goods.

Many of the countries in the Caribbean are members of the Caribbean Community (CARICOM), which is headquartered in Guyana. Most CARICOM members apply the Common External Tariff (CET), a regime of customs tariffs levied on goods which are imported from third countries or from Caricom members whose products do not meet the Rules of Origin qualifying conditions. The maximum CET tariff rate for agricultural products is 40 percent. Caricom members may petition Caricom for exemptions to the CET for certain products, and many have done so in order to raise duties for agricultural products in order to protect domestic producers. Caricom members included in this guide are Antigua and Barbuda, the Bahamas (doesn’t apply CET), Barbados, Dominica, Grenada, Jamaica, St. Kitts-Nevis, St. Vincent and the Grenadines, and Haiti.

A listing of representative tariff rates for the countries included in the USDA set of export guides is included as Appendix 2 to this summary guide. More detailed information on tariff rates for the individual countries is included in the individual market-specific guides.

Consumer Food Imports

The Caribbean import market for consumer food and beverage items is estimated to range from $2.3 to $2.4 billion (includes those markets studied in the USDA export guide series). Because of inconsistent, unreliable, and/or unavailable trade data (both from supplying and importing countries), this figure is an estimate based on available statistics and discussions with importers.

Table 1 provides a breakdown of total market size for the countries included in the series of export guides for which this report is a summary, using official export statistics from the United States, the European Union, and Canada, along with the authors’ estimate of totalmarket size taking into account underestimates by these three suppliers, transhipments through other countries, and other regional and extra-regional suppliers.

Many individual markets are quite small, particularly for the smaller British territories and independent countries in the Eastern Caribbean. However, even these markets are loyal customers of US food and beverage items and, as a whole, offer good market prospects for expanded trade. Nevertheless, US producers may find it easier and more cost effective to supply through Miami-based wholesalers which ship consolidated loads to these islands.

The largest import markets in the Caribbean are Guadeloupe ($350 to $380 million), Martinique ($320-$340 million), the Dominican Republic ($300 million), the Bahamas ($215 million), Jamaica ($200 million), the Netherlands Antilles ($180-$190 million), Aruba ($145-$155 million), Haiti ($110-$120 million), Barbados ($108 million), Bermuda ($95 million), and the Cayman Islands ($70-$80 million). The six independent countries comprising the Organization of Eastern Caribbean States import a combined $165 million of consumer food and beverage products, although St. Lucia and Antigua account for more than half of this total.

Figure 1 shows the mix of various consumer food and beverage imports from the US, EU, and Canada. Beverage imports (including nonalcoholic items other than juices and alcoholic items such as wine, beer, and spirts) is the largest single import category, followed by dairy products (milk, butter, cheese), meat (mostly frozen chicken and beef parts, as well as offal), miscellaneous processed food preparations (mostly common supermarket shelf items such as condiments, peanut butter, etc.), cereal preparations (including breakfast cereals and snack foods), and processed fruits and vegetables. While supplies of fresh fruits and vegetables appears to be low, it is believed that actual figures are much higher as US exports are understated. Fish and seafood imports are only a small percentage of total imports from these three suppliers, as main regional and extra-regional countries supply sizeable quantities of these items.

US Position

The US position in each market varies; generally it is weakest in the French overseas departments of Guadeloupe and Martinique and strongest in the current and former British colonies. France dominates the import market in Guadeloupe and Martinique. In Aruba and the Netherlands Antilles, the US faces strong competition not only from the Netherlands but also from Venezuela and other South American suppliers. Latin American suppliers are also strong in the Dominican Republic, where domestic competition is also present for certain food and beverage categories. Domestic competition (particulary in certain processed food and beverage items) is also seen in Jamaica and, to a lesser extent, Barbados. Competition from Trinidad is present in most of the English-speaking Caribbean markets, with the possible exceptions of the Cayman Islands, the Bahamas, and Bermuda (in the Atlantic).

Since 1992, US exports of consumer food and beverage items have been increasing an average of eight percent per year (see Figure 2). US exports in 1996 were reported at $608 million, up from $440 million in 1992. However, based on discussions with Caribbean importers, US export statistics are thought to be understated — particularly for fresh fruits and vegetables.

US exports are strongest in meat (mostly frozen chicken) and processed food items including cereal/baked products (such as snack foods, breakfast cereals, cake and other mixes), processed fruits and vegetables (including juices), and miscellaneous food preparations (such as mayonnaise, ketchup, other sauces and dressings, peanut butter, soups, other prepared foods, etc.). These four categories accounted for nearly two-thirds of US exports to the region in 1996. Other top exports include beverages (wine, soft drinks, beer, etc.), sugar and confectionary, and fresh produce. See Table 2 for a breakdown by product category of US exports over the last five years.

Despite the overall size of the import markets in Martinique and Guadeloupe, the US exports only small quantities of consumer foods and beverages to these markets. Figure 3 shows the relative size of each Caribbean market for US exports in 1996. The Bahamas was by far the largest market for US products, followed by the Dominican Republic, Jamaica, the Netherlands Antilles, Jamaica, and Haiti. Taken as a whole, the smaller English-speaking countries in the Eastern Caribbean also have a high demand for US products. Of these, US exports were strongest to Barbados, Antigua, and St. Lucia.

Competition

Extra-Regional. Key competitors of the United States in the Caribbean include the European Union, Canada, New Zealand, Australia, and selected South American countries.

Competition from the European Union is strong in most product categories, but particularly in dairy items and beverages (wine, beer, and spirits). EU members also supply significant quantities of frozen fish, confectionary, and processed food items.

New Zealand is a major player in the Caribbean import market for dairy items, as well as for meat (mostly frozen lamb). Australian competition is mostly in meats. Canada competes with the US in meats, fish, and dried vegetables (mostly peas).

South American countries, mostly Venezuela and Colombia, are strongest in Aruba and the Netherlands Antilles in the import market for fresh and processed fruits and vegetables. Other Latin American suppliers, such as Argentina and Brazil, compete mostly in the market for meat products. Central American countries and Mexico also compete, but mostly in the Dominican Republic.

Regional. Trinidad and Jamaica are the largest regional suppliers of consumer food and beverage products. Limited amounts are also exported by Barbados, mostly to neighboring Eastern Caribbean islands. Trade between some islands, particularly in the Eastern Caribbean, of fresh fruits and vegetables is strong but informal. However, production of most temperate fruits is nonexistent and imports of these items from the US are on the rise. Production of fresh vegetables also does not meet volume demand (nor, in some cases, quality and reliability concerns of the HRI sector), necessitating imports from the US and other extra-regional suppliers.

Best Prospects for US Exporters

The US has done extremely well in most Caribbean markets for a wide variety of consumer food and beverage items. Therefore, the number of individual items that could be considered "best prospects" are vast. The table below gives a breakdown of some of the best prospects for US exporters by product.

While the large import markets in Guadeloupe and Martinique may seem to present some of the biggest prospects for US exports, realistically language, consumer preferences, and historical ties to the French mainland limit opportunities for most items. However, if US suppliers could meet some of the labeling and other language regulations, more opportunities may be present.

Although most markets offer good prospects for US suppliers, smaller islands obviously have much more limited demand despite having preferences for widely available US product. Exporters are advised to utilize Florida-based wholesalers, rather then supplying these markets directly which would be more time consuming and less cost effective.

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§ Guadeloupe tariffs, which follow French rates, are assembled here according to the autonomous schedule in the "European Community Common Customs Tariff," Official Journal of the European Community, L238, Vol. 39, 19 September, 1996. Dollar amounts are calculated based on exchange rate of 1 ECU = US$1.0879. Percentage tariffs are based on Ad Valorem value of commodity.

* Approximate tariff amounts, calculated as average of highest and lowest tariff rate for product type.

† CARICOM Common External Tariff (CET) schedule.

Tuna, canned Breakfast Cereal Peas, canned Apple Juice Tomato Ketchup Mayonnaise Corn Chips Beer, malt Wine Anguilla 15% 15% 15% 5% 20% 20% 15% 30% 30% The Bahamas Free 20% 35% 10-50% 25% Free 35% $1.60 per gallon Free Barbados 5% 25% 25% 5-25% 25% 25% 25% B$2.64 per liter B$2.64 per liter Bermuda 5% 10% 5% 5% 15% 15% 15% $0.86 per liter $2.50 per liter British Virgin Islands 5% 10% 5% 10% 10% 10% 5% EC$1.10 per gallon EC$1.20 per gallon Cayman Islands 20% Free 20% 20% 20% 20% 20% EC$1.50 per liter EC$3.00/liter Curaçao 18.5% 10.5%   5.5%       $.028 per liter   Dominican Republic 35% 30% 35% 35% 35% 35% 30% 30% 30% Guadeloupe § 25% 7% + $45.60/ 100 kg * 24% 24% or 42%+$17/100 kg * 20% 20%   30% $19.00 per hl * Haiti 5% 10% 5% 5% 15%   10%     Jamaica 5% 25% 25% 25% 25% 25% 25% 30% 30% CET Rate † 5% 30/35% 30/35% 30/35% 30/35% 30/35% 20%* 35% 20%

§ Guadeloupe tariffs, which follow French rates, are assembled here according to the autonomous schedule in the "European Community Common Customs Tariff," Official Journal of the European Community, L238, Vol. 39, 19 September, 1996. Dollar amounts are calculated based on exchange rate of 1 ECU = US$1.0879. Percentage tariffs are based on Ad Valorem value of commodity.

* Approximate tariff amounts, calculated as average of highest and lowest tariff rate for product type.

† CARICOM Common External Tariff (CET) schedule.