Grenada: a small country with a robust market for U.S. foods

AgExporter,  Oct, 2003  by Angel F. Gonzalez Trapaga

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Grenada, often referred to as "the Spice Island of the Caribbean," is one of the smallest independent countries in the Western Hemisphere. Despite its size, Grenada's food imports from the United States have been increasing since 1999. The country's food and beverage imports for 2001 totaled $34 million.

The United States supplied $13.7 million worth--40 percent of the total and a 2.5-percent gain from the previous calendar year. The United States garnered more than 50 percent of Grenada's 2001 imports of fresh fruits, poultry products, red meats (fresh, frozen and chilled), processed fruits and vegetables, and fruit and vegetable juices.

Further market opportunities exist for a wide variety of U.S. products, including beef, pork, poultry, dairy, produce, and alcoholic and nonalcoholic beverages.

The Market in Microcosm

Grenada is a parliamentary democracy based on the British model. English is the official language; many older persons also speak a colloquial French dialect.

Grenada is also a developing nation. Its economy, the fastest growing in the East Caribbean, is based principally on tourism and agricultural production. In 2001, Grenada's population was nearly 103,000, with a per capita GDP (gross domestic product) of $4,750.

The nation consists of three islands: Grenada, Carriacou and Petit Martinique. About 95,000 people live on Grenada, 7,000 on Carriacou and 900 on Petit Martinique. St. George's, on the southwest coast of Grenada, is the capital and main commercial center, and home to 35,000 people.

Eighty-five percent of the nation's inhabitants are of African descent, and the rest are a combination of East Indian and European descent (mainly English, French, Portuguese and Scottish).

Grenada offers an inviting climate for tourism in more ways than one. The tourism industry, backed by the commitment of the government of Grenada, is the major source of foreign exchange earnings and the most promising sector for future economic growth.

With its year-round average temperature of 80 degrees Fahrenheit, 45 picturesque white sand beaches, turquoise waters and countless secluded coves, Grenada is tailor-made for tourism. In addition to its unspoiled beaches, it offers beautiful mountain scenery, yachting and cruise liner facilities, a lively and hospitable culture and fair tourism infrastructure.

The Grenadian government strives to attract additional foreign investment for hotel construction. New hotels, renovations to several existing ones, new marinas and a five-star, 1,000-room resort at Levera with its own 18-hole golf course will likely lure even more tourists.

Grenada's major tourist markets are the United States, the United Kingdom, other Caribbean countries (mainly Trinidad and Tobago, Barbados, St. Lucia, and St. Vincent and the Grenadines), Canada and Germany.

Importers anticipate that recovering economies and a new direct flight between London and St. George's will further stimulate tourism and the services that support it.

U.S. Foods Popular

U.S. import dominance is due to its proximity and the quality, price and diversity of its high-value products. Grenadians are also receptive to U.S. foods and beverages because of the consistent flow of travelers between their country and the United States for education, business and pleasure, and their exposure to U.S. media. However, they are also price-conscious; lower priced products typically find better acceptance among locals.

An estimated 60-70 percent of total food imports is destined for the retail sector, and the remaining 30-40 percent for the food service sector.

Reviewing Retailing

Grenada has eight large supermarkets, one club store, two gas marts and a handful of other convenience stores. It has about 3,000 mom-'n'-pop shops. It also has several traditional markets which, subsidized by the government, sell local produce.

Supermarkets and C.K.'s Super Value, the only club store in the nation, import most of their food products. They buy 20-30 percent of their food supplies from other importers or distributors. By contrast, gas marts, other convenience stores and mom-'n'-pop shops obtain food products from local wholesalers and distributors.

Grenadian demand for convenience and value-added goods is growing. Customers increasingly demand low-fat and other healthy foods. The recent appearance of organic foods is due largely to demand by foreign students at St. George's School of Medicine.

Most of Grenada's supermarkets are located in St. George's, mainly because of its large, concentrated population and the higher level of spending among those living in the main city.

Food Fair and Food Land, the two largest supermarkets, each have two retail stores. Food Fair and Food Land offer a wide variety of products and recently added deli and bakery sections. In addition, they wholesale and distribute food products to smaller retail outlets. For example, occasionally, when importers run out of supplies, mom-'n'-pop shops turn to supermarkets for staples.