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SIAL Canada - Kosher 101: An overview of the sector, certification, and marketing opportunities for Canadian processors

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Speakers:
Richard Rabkin, Director of Marketing and Business Development, Kashruth Council of Canada (COR); Phyllis Koegel, Marketing Director, Orthodox Union (OU).

Together, Richard Rabkin and Phyllis Koegel led this morning's seminar with an inclusive "Kosher 101" run-down, covering what exactly constitutes a kosher product, valuable market data illustrating this lucrative consumer market, and how certification can give a company a competitive advantage.

Richard and Phyllis emphasized that the kosher market in North America is an opportunity market for exporters, stating the sector has experienced 15% year-over-year growth for the past 10 years, and approximately $200 billion worth of kosher certified food products are sold in North America every year. With nearly 15 million active kosher consumers in North America, and the average kosher-buying consumer spending 47% more than a non-buying kosher consumer, it is easy to see why this market is currently a key segment for the agri-food sector.

Another interesting point was the fact that only 15% of kosher consumers are actually Jewish, which shows that food products that are kosher certified are being sought after by a broad range of consumers – from vegetarians and vegans, to consumers who simply believe kosher foods are healthier and safer product options. Consumers with dietary restrictions, for example the lactose, shellfish and gluten intolerant, are also a growing consumer base for kosher products. Therefore, nearly 80% or more of all kosher food sales are outside of the "traditional" Jewish market. A recent survey by Mintel asked consumers why they buy kosher, and the majority (62%) pointed to quality while 51% indicated healthy benefits. Kosher products are also now becoming more available to consumers, as over one-third of products in North American supermarkets are kosher and there are currently over one million certified kosher products available across the continent.

Certification was also at the forefront, as both presenters were representing certification bodies, the Kashruth Council of Canada and the Orthodox Union (OU). Phyllis highlighted the added value of kosher certification, stating that a surge in the consumer's "kosher consciousness" has contributed to the ever-growing kosher industry, and that having proper kosher certification gives a company a competitive edge in the marketplace. Cost of kosher certification is minimal when compared to ROI (return on investment), with many companies who have undergone the certification process reporting an increase in sales – some as high as 65%. Richard summarized the kosher certification procedure with the following chart:

Kashruth Council of Canada's "COR" is the kosher certification trademark used by the council, the largest kosher certification agency in Canada. COR has been servicing the Canadian food industry for more than 50 years and certifies over 45,000 products at over 1000 facilities nationwide and around the world. They also have an exclusive partnership with Guelph Food Technology Centre.

The OU is the world's largest and most widely recognized kosher certification agency. The OU symbol can be found on almost a million products, located in 80 countries around the world. With their cutting edge technology, the OU offers networking and marketing resources, which will enhance your market share specifically for exporting to the U.S.

For more information on the U.S. kosher market and opportunities for Canadian exporters, please visit ATS' report: United States Kosher Food Market Brief located in ATS' ethnic, gourmet, and specialty foods section, where similar reports can be found.

If you have any further questions regarding the information shared during this presentation, specifically on the kosher market or the certification process, please contact:

Richard L. Rabkin
Director of Marketing & Business Development 
COR - Kashruth Council of Canada
3200 Dufferin Street, Suite 308
Toronto, Ontario M6A 3B2
Tel: 416 635-9550 ext 686
rrabkin@cor.ca
www.cor.ca

Phyllis Koegel
Marketing Director, Orthodox Union
Eleven Broadway
New York, New York 10004
Tel: 212-613-8237
koegelp@ou.org
www.oukosher.org

Until next time,

Cheryl Hogan
Project Officer, ATS
cheryl.hogan@agr.gc.ca

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