Trinidad and Tobago: opportunities abound in food service and retail sectors

AgExporter, Oct, 2002 by Omar Gonzalez

With its thriving economy and cultural diversity relatively high annual per capita income ($9,003), limited agricultural production, fairly open trade regime, English as the official language and strong U.S. influences, Trinidad and Tobago has proved to be an excellent and steady market for U.S. foods and beverages.

The food service and retail food sectors are vibrant commercial areas, driven by a growing economy and middle class, an increasing population and more women working outside the home.

Residents of both islands have acquired a taste for and loyalty to U.S. food products that have long been present in the market. U.S. exports of consumer-oriented agricultural products have doubled in the past seven years alone, reaching nearly $40 million in calendar year 2001, with sales of snack foods, fresh fruits, and fruit and vegetable juices posting all-time highs.

In a typical year, the country imports $184 million worth of consumer food products. About 30 percent is destined for the food service sector, and the remainder for the retail sector.

Serving the Food Service Sector

Here, as in other areas, the two islands have distinct differences. While Trinidad's hotel, restaurant and institutional (HRI) food service sector relies on local and foreign business customers, Tobago's HRT sector depends almost entirely on tourists. High-end and family-style restaurants account for 75 percent of total food service sales, followed by fast-food outlets with 15 percent and institutions with 10 percent.

Cuisine styles are as varied as the country's cultures, and one can find everything from roti (a local delicacy similar to a wrap) and Caribbean corn soup at street vendors to fine continental cuisine in four-star hotels. Trinidad and Tobago has a wide variety of dining facilities, ranging from upbeat and elegant to casual. Popular styles include Chinese (currently the trendiest), Caribbean, Creole, Indian, French, Italian, Thai and American. The twin island republic hosts over 600 traditional restaurants and another 185 fast-food eateries.

Approximately 95 percent of hotels and restaurants are locally owned. The only international hotel and restaurant chains with a market presence are Hilton, Crown Plaza, TGI Friday, Subway, Pizza Hut and KFC.

Most fine dining is found in the capital city of Port-of-Spain and on Tobago. La Ronde restaurants (of the Crown Plaza hotel chain) and Marquis restaurants (of the Hilton chain) are among the capital's most elegant.

In general, importers meet the needs of chefs and food and beverage managers by carrying their preferred brands. But importers also are interested in new high-quality, affordable products, and may introduce them to their customers if suppliers provide promotional incentives.

When looking for new products, importers like to meet face-to-face with representatives and attend trade shows, such the National Restaurant Association and Americas Food & Beverage shows.

Hotels and restaurants purchase food supplies from importers that typically wholesale and distribute the product. When restaurants need specific items or brands that local wholesalers do not carry, they import them directly.

Fast-food chains like KFC,TGI Friday, Royal Castle and Subway import directly. TGI Friday imports 80-90 percent of its supplies from the United States.

Allied Caterers, the country's sole airline caterer, purchases products directly from suppliers or through local wholesalers. The company enjoys using U.S. products because of their consistency and quality, and prefers U.S. suppliers to local wholesalers because of their better pricing, relatively short delivery periods and reliable shipping.

New-to-market U.S. companies should be able to build on the high-quality image of U.S. products. However it may be difficult for new products to compete with established brands, and it may be hard to find a wholesaler that does not carry a competing brand.

Reaching the Retail Sector

About 70-80 percent of food products sold in Trinidad and Tobago's retail sector--from supermarkets to convenience stores to gas marts to mom-'n'-pop outlets--are imported. In the last 15 years, the market has become permeated by multinationals able to produce goods at lower cost, making it increasingly difficult for local manufacturers to compete. Many domestic companies have consequently shifted from manufacturing to distribution.

In recent years, a number of trends have taken place in the types of supermarkets opening and the services they provide. Bigger stores with wide aisles and more checkout counters are becoming common.

Many supermarkets are increasing personalized services to attract and build loyalty among customers, particularly younger, middle- and working-class families and individuals. One major chain, JTA, has introduced the floor representative to answer customers' questions and help them find particular products or suggest substitutes. Another major trend in the retail food sector is the shift toward offering a wider range of U.S. imports because of their popularity, reputation for quality, convenience and fair price.