SIAL Attendees Expect Innovation to Win Over Cost
It may not be Paris, but some may find SIAL Montreal the next best venue for U.S. food distributors to source unique and diverse foods. Given the weakness of the U.S. dollar, which has lost 45% from its peak against the euro in 2002, SIAL Montreal, April 23-25, will be more cost effective for North American attendees this year than flying to a big European exhibition. While the Canadian dollar
January 21, 2008
CHRISTINA VEIDERS
MONTREAL — It may not be Paris, but some may find SIAL Montreal the next best venue for U.S. food distributors to source unique and diverse foods.
Given the weakness of the U.S. dollar, which has lost 45% from its peak against the euro in 2002, SIAL Montreal, April 23-25, will be more cost effective for North American attendees this year than flying to a big European exhibition. While the Canadian dollar lost some momentum last week against the weak U.S. dollar, the currency was trading at par.
Brokers, importers and association executives who attend SIAL Montreal told SN they did not expect economic turbulence in the U.S. to impact trading at SIAL in Canada. While a stronger Canadian dollar increases the cost of Canadian foods exported to the U.S., the lower-valued U.S. dollar works advantageously for U.S. food producers and exporters selling into Canada.
“The declining U.S. dollar, import safety and the political environment in which taxing of European and Asian imports has increased will add cost and complexity to food imports,” said Frank DiPasquale, senior vice president, National Grocers Association, Arlington, Va. The NGA will exhibit at the show, bring members to the exhibition and work in conjunction with the Canadian Federation of Independent Grocers on exchanging information, viewing the show and touring food stores in Montreal. DiPasquale said SIAL has a broad international scope that is not seen to such an extent at other U.S. food shows.
Importer Al Pish, vice president of meats for Atalanta Corp., Elizabeth, N.J., said that while the exchange rates are not favorable for imports, it really depends upon the category. “We're looking for specialty and gourmet as opposed to commodities,” he said, noting that higher-income American consumers are willing to pay for products that are different.
Bob Bauer, president of the Association of Food Industries, Neptune, N.J., which represents about 1,000 members who import foods to North America, said currency fluctuations are cyclical and are at the moment a big obstacle for members selling food into the U.S. Despite this, imported foods are rising, he noted. “With very few exceptions, the domestic industry normally can't produce everything that is needed. [Demand in the U.S.] has to do with the population that is more ethnically diverse than it used to be. That is opening markets for all types of foods which people taste in restaurants and want to bring home.”
What distinguishes SIAL from U.S. food shows, said Bauer, is that Canadian consumers have different tastes than American consumers. “The Canadian consumer has different likes and dislikes, so you'll see different types of food products than you would at a U.S. show.”
Food broker Peter Murphy, co-owner of Murphy's Food Sales and Marketing, Mississauga, Ontario, said that the biggest consumer trends in Canada are health and wellness. Organics continue to grow. He mentioned that Shoppers Drug Mart is rolling out 150 new organic products.