Maple Syrup Market Audit: Exporting to France

Introduction and Product Overview

Maple syrup is an all-natural, organic sweetener. In North America, it is poured over pancakes, waffles, and other breakfast items, and it is also used in baking. It is at its most versatile in Quebec, where an entire cuisine is based on using maple syrup as an ingredient in virtually everything, though such uses are not common elsewhere (Bain, 2012). In France, maple syrup has an advantage as a versatile sweetener with a distinct character that differs from both sugar and honey — its only real competitors in European supermarkets.

Maple syrup lacks the versatility of sugar or honey, but it is an organic, all-natural product with a complex and refined character. In that respect, it is entirely suited to the French palate. French consumers view maple syrup through both a flavor lens and an organic lens, and both have cachet in the French market. That said, France remains a largely untapped market for maple syrup, ranking only fifth among destinations for Canadian exports and lagging behind the UK and Germany (AGR, 2013). This is despite France having imported maple syrup since the era of Nouvelle-France. Consumers are familiar enough with the idea of maple sugar to try the product, and the abundance of cooking information available in French removes a further barrier to experimenting with unique uses. Price, however, remains a typical barrier, as the process of making maple syrup is slow and expensive.

The French Market

France is a country in northern Europe and one of the largest European nations by both land area and population. The country has a well-developed transportation infrastructure. Major ports are located at Le Havre in France and at Rotterdam in the Netherlands, which is only a couple of hundred miles from Paris. There are no trade barriers between these countries. With the world's ninth-largest railway network — seven of the eight countries with larger networks are substantially bigger by area — and the eighth-largest road network, France possesses a modern, sophisticated transportation infrastructure (CIA World Factbook, 2014).

French consumers love sugar but use relatively little maple syrup. France ranks sixth in the world in total maple syrup consumption, though few countries consume maple syrup at all. The United States, which exports roughly one-tenth of what Canada does, is not a significant exporter of maple syrup to France (Holz-Clause, 2014). Maple syrup is typically found in high-end food shops and is difficult to find in mainstream supermarkets. French consumers prefer richer grades of maple syrup, as is true of most consumers globally. There is no known market for Grade C syrup, which is normally used only for cooking.

Maple syrup is distributed through specialty stores. While the product is known, its high price means it is considered a luxury item. The fact that it is always imported adds further cost. This creates a challenge in understanding small-store distribution channels, but it also opens the door for maple syrup to be sold through a large retailer — a market currently unserved. Such a sale could be direct, for example to Carrefour, rather than through distributors. Reaching small stores would likely require importers and distributors, which adds costs and limits distribution options outside major urban centers.

Advertising and Media

Maple syrup is a niche product in France and, as such, receives virtually no advertising. It also receives little marketing in its much larger domestic market. There is little brand recognition for maple syrup, which is harvested by small farmers and sold either through cooperatives or through small buyer/marketers. As a result, there is almost no brand loyalty for maple syrup, and most consumers are unlikely to have any loyalty to a particular point of origin. At best, consumers will have a grade preference.

Because maple syrup is a premium product, there is very little promotion or discounting. Evidence suggests that premium products should not be discounted, as doing so undermines their premium status. Consumers who buy maple syrup in France tend to be wealthy, and because they are purchasing a unique product for its health benefits or distinctive character, they have low price sensitivity. This means that any marketing should focus on product attributes rather than price-based enticement (Sethuraman & Tellis, 1991).

References

AGR. (2013). Analysis of new maple products and ingredients — Europe. Agriculture and Agri-Food Canada. Retrieved November 10, 2014, from

Bain, J. (2012). Chef Martin Picard celebrates maple syrup cookbook with sugar shack bash. Toronto Star. Retrieved November 10, 2014, from http://www.thestar.com/life/food_wine/2012/03/12/chef_martin_picard_celebrates_maple_syrup_cookbook_with_sugar_shack_bash.html

CIA World Factbook. (2014). France. Central Intelligence Agency. Retrieved November 10, 2014, from https://www.cia.gov/library/publications/the-world-factbook/geos/fr.html

Holz-Clause, M. (2014). Maple sugar profile. Agricultural Marketing Resource Center. Retrieved November 10, 2014, from http://www.agmrc.org/commodities__products/specialty_crops/maple-sugar-profile/

OANDA. (2014). Currency converter. OANDA. Retrieved November 10, 2014, from http://www.oanda.com/currency/converter/

Sethuraman, R., & Tellis, G. (1991). An analysis of the tradeoff between advertising and price discounting. Journal of Marketing Research, 28(2), 160–174.