If you raise the topic of cultural distinctness in Canada, most minds will turn immediately to Quebec. This is to be expected considering 80% of the province’s population shares a common ancestry, and sovereignist politicians are relentless in their efforts to promote the differences between Quebec and the rest of the country.
But for marketers at least, Canada is made up of a series of relatively distinct markets, beginning on one coast and stretching far across to the other.
Products and services embraced enthusiastically in one region are frequently met with indifference in another. These disparities are driven by such factors as geography, climate, local crop availability, demographics, historical buying patterns and buying trends emanating from beyond our borders.
In some cases, marketers concede they will never significantly alter established regional purchasing patterns; in others, they are fully confident that, backed by the right distribution and advertising, their products will soon be on everyone’s shopping list.
In this report, we zero in on the province of British Columbia. b.c. derives its distinctness from a number of sources, of which the following are just a few.
Most significantly, perhaps, the Rocky Mountains, awesome and inaccessible, separate b.c. psychologically as well as physically from the rest of Canada. Also, b.c.’s mild winters make for longer growing seasons, which means residents have access to fresh produce for a greater part of the year. b.c. is also close to that hot-bed of new ideas and trends, California. As a result, California-born product trends that will eventually sweep across the continent often get their Canadian start in b.c..
Finally, by virtue of its proximity to such Pacific Rim countries as China, Korea and Japan. b.c. has attracted a large number of Asian immigrants. This affluent buying group, representing 20% of the province’s population, has made its presence felt in all aspects of the market place from packaged goods to automobiles.
Also in this report:
– Credit unions popular British Columbians welcome personal touch: page 20
– Water seeks its level: The Western still bottled water market is maturing: page 22
– Japanese cars preferred Everything from geography to the white-collar demographics have B.C. buying Japanese cars: page 23
As British Columbians soak up specialty teas, marketers find themselves having to differentiate their products in order to get ahead in an already overdeveloped market.
Industry insiders in the specialty teas market, including herbal, decaffeinated and flavored black teas, say British Columbians drink specialty teas about two-and-a-half times more often than other Canadians.
All agree that the market is well established.
According to Nielsen Marketing Research, $31 million was spent on specialty teas in grocery stores in the past year in Canada, showing 8% growth.
b.c. sold nearly $1.3 million worth of specialty teas in the past year with about 460,000 equivalent cases sold.
This figure does not account for specialty teas sold in health food stores and other retail outlets.
The target for specialty teas is typically female, 18 to 64 years-old with a propensity toward upscale consumers.
Gary McClune, national marketing manager on Twinings Tea for National Importers of Canada, says, in a ‘well-established market,’ Twinings is always seeking new flavor combinations for its specialty black and herbal teas in order to differentiate itself from the competition.
Twinings, established in Canada in the 1950s, is the leading specialty tea manufacturer in b.c. with about a 25% share in specialty flavored black and herbal tea segments.
For example, last year, Twinings launched a line of what McClune calls ‘fruit infusion’ teas to set itself apart from the competition.
These new teas contain real fruit pieces so the consumer has the advantage of the real flavor and aroma of whatever flavor is printed on the box, a sort of what-you-see-is-what-you-get product.
McClune says the new product set Twinings apart from marketers who use ambiguous names, such as Celestial Seasonings’ Comfort Time.
Twinings also does ‘more intense’ advertising, demonstrations and couponing in b.c. in order to retain and increase share in the overdeveloped market.
McClune attributes the overdeveloped market to the influence of the West Coast of the u.s., particularly California and the Seattle area.
According to McClune, specialty teas began to develop in b.c. about seven years ago and, since then, there have been a number of new flavors and combinations as the market developed, which, ultimately, is what the consumer is looking for.
He says an inclination toward a healthier lifestyle, another U.S. West Coast influence, has also had an impact on specialty tea growth, as there is no caffeine in most herbal teas.
The significant Asian population, found primarily in Vancouver and estimated at about 20% of the city’s residents, accounts for growth in the green specialty teas such as Twinings’ Jasmine, Green Gunpowder and Green teas.
Stephanie Houghton, account manager on Tetley specialty teas at Toronto-based Harrod & Mirlin, agrees the b.c. specialty tea market is overdeveloped and has her own beliefs as to why.
Like McClune, Houghton says the Asian population has a propensity to drink specialty teas, particularly green teas.
Also, b.c. has a significant aging population, and they are big sippers of specialty teas.
‘The no-caffeine aspects of herbal teas seems to appeal also to health-oriented individuals,’ Houghton says, of which there are many in b.c.
Nick Kilby, marketing manager at Lyons Tetley, agrees the b.c. market has been influenced by the ‘West Coast’ phenomenon.
Tetley has been in the b.c. marketplace since the early 1980s and has about a 10% share.
‘The general assumption seems to be that the West Coast of North America seems to be overdeveloped in specialty teas, and b.c., perhaps being influenced a little bit more by some of the trends on the West Coast,’ Kilby says.
‘Also, it’s a strange market in b.c. because there’s a core group of very traditional tea drinkers, particularly on Vancouver Island,’ he says.
‘Along with that, there’s a lot of specialty tea drinkers as well.’
Kilby says Tetley’s specialty tea business is focused on Ontario and Western Canada and it does not have a different plan for b.c. specifically, although it may allocate more marketing funds to the region.
He says the importance of the specialty tea market in b.c. is a good reason to develop products.
On the subject, Kilby says Tetley will launch new flavors of specialty teas next year.