Food and Drink E-Commerce in Canada

PROSPECTS

Canadians are enjoying being kitted out for meals

Meal kits are booming in Canada. They are appealing to an increasing number of time-pressed consumers with a variety of selected weekly recipes, at an affordable price.

E-commerce already paying off for alcohol sellers, with high potential remaining

Store-based alcoholic drinks retailers, predominantly provincial liquor boards, have also embraced e-commerce by launching websites and mobile apps on which consumers can make purchases. Many of these retailers, including LCBO and SAQ, have not only expanded the selection of products available online, but have also launched online-exclusive products or online preview and pre-order for new products.

Grocery retailers continue to transition to competitive omnichannel players

Grocery retailers in Canada are moving the competition from offline to online. The grocery market has been very competitive, with limited price inflation.

COMPETITIVE LANDSCAPE

HelloFresh steps up to the Chefs Plate

German meal kit player HelloFresh has purchased Toronto’s Chefs Plate, the pioneer and biggest seller of meal kits in Canada. With the deal, believed to be in the region of CAD50 million, HelloFresh is targeting synergies of joint procurement and production with Chefs Plate, in addition to utilising HelloFresh’s international technology platform.

Fresh grocery delivery is the next challenge

After the success of their click-and-collect programmes, many grocery retailers identify the delivery of fresh groceries as the new growth area. As the online penetration rate increases, online groceries are expected to see growth across different age and income groups.

Amazon is in prime position

Amazon leads the online grocery business with a loyal customer base, although it has not yet entered the fresh grocery segment. Amazon has a strong advantage over large Canadian grocery retailers thanks to its well-developed logistics network, which enables it to rapidly fulfil orders.

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