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MARKET PROFILE
Montreal’s Renewed Wholesale Role
Added service, alliance and consolidation all affect this industry’s burgeoning volume.
IBy Jodean Robbins
n the age of retail consolidation, Montre- al’s wholesale market remains relevant by serving specific needs in the market- place.“Wholesalers play a vital role in the Montreal produce business in the process
of getting fresh produce into the retail market,” says Cesare Della Santina, president of CDS Foods. “They offer a wide range of products and brands, which are chosen with care and competitively priced.”
Montreal’s geographic location provides an advantage for produce distribution, according to Sylvain Mayrand, co-president of Global MJL, a Montreal-based wholesale distrib- utor. “We are in the St. Lawrence Valley, and so [we] are surrounded by very productive farms,” he says. “Many farms rely on whole- salers to distribute local vegetables over most of Eastern Canada and into the northeastern U.S. In addition, many market wholesalers are front-line importers from a variety of origins.”
The nature of the produce leans toward a need for local wholesalers. “All retailers, espe- cially the smaller one, need wholesalers,” says Della Santina. “Even the bigger chains need wholesalers to be there to back them up with products, shorts and support.”
Mayrand confirms all buyer segments still support the wholesale market but especially the restaurant sector. “While some retailers do buy directly from farms and can import on their own, most of the foodservice sector still relies heavily on wholesalers for steady supply lines,” he says.
One reason for continued relevancy is Montreal wholesalers’ ability to provide volume pricing for all buyers. “We are in the business of providing products to retailers who would otherwise not be able to buy these items because their purchase quantities are too low,” says Della Santina. “Whole- salers buy in large quantities and can deliver
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multiple items in smaller quantities and at very competitive pricing.”
Market wholesalers also may curry advan- tage because of their expertise. “Many whole- salers have special knowledge of the products they carry,” says Della Santina. “The goal for many big retailers today may be going direct, but there are challenges and hidden costs that make this less worthwhile than once thought.”
MC Produce, a Montreal-based importer and exporter, focuses on only four or five items because it concentrates on high volume. “We want to emphasize where we can be most effective,” says Maria Cavazos, presi- dent. “We are officially an importer/distrib- utor and bring mangos from Ecuador, Brazil and sometimes Peru. We handle tropicals including papaya and limes, and some vege- tables such as carrots, onions and broccoli.”
Market wholesalers concentrate on meeting specific client demands. “We have major clients with various specs, and we are able to meet those specific requirements,” says Cavazos. “We do all the service for the client, ensure the quality is what they need and assure product year-round for them.”
BROADENING THE BUSINESS
Another advantage of the market merchants is their ability to act as an exten- sion of the customer’s business by providing space and extra services. “We decrease or eliminate the cost of warehousing for customers,” says Cavazos. “We can load in
Mexico, for example, and coordinate direct delivery.”
Space constraints for smaller or indepen- dent stores are another factor. “Many stores may not have the storage space or facility to warehouse product,” says Della Santina of CDS Foods. “We can fulfill this need.”
Merchants on the market offer additional services and programs to meet changing buyer needs. Global MJL’s Mayrand notes how many wholesalers are increasingly evolving into service providers. “Whole- salers seem to be thriving regardless of the consolidation factor, and this is probably related to being more nimble and responsive to markets than corporate national entities can realistically be,” he says. “This is where repacking facilities and value-added services come into play and keep the relationships going strong.”
Cavazos reports MC Produce offers additional services for its customers. “We do cross-docking or other logistics arrange- ments,” she says. “We focus on serving our customers to make sure it’s not a hassle for them. We pick up, and we deliver. When we say we’ll have something, we have it.”
ALLIANCES , CONSOLIDATIONS
One notable trend in Montreal, and greater Canada, is that of consolidation of wholesale houses. Cavazos reports a strategy of growth through purchasing whole- sale houses. “Wholesalers are buying other wholesalers to get more orders from the
MONTREAL