Trent University Placement Student Report No. 1

The Strategic Foundation for Huitlacoche
Emma Floyd
Trent University

Introduction
Huitlacoche is a grayish black edible fungus that grows on the ears of corn infected with
Ustilago maydis; it is sometimes referred to as corn smut or Mexican truffle and has been
considered a delicacy in Mexico for many years (Pataky & Chandler, 2003, p. 1261). It is a
specialty mushroom with a taste that has been described as ‘earthy with a trace of sweetness’
(Mendoza, 2010). It is most commonly encountered as a topping or ingredient in recipes for
dishes such as tamales, stews, quesadillas, tacos, etc. (Kenyon, n.d.). At times, huitlacoche is
found on some of the finest restaurant menus (Mendoza, 2010). Huitlacoche also has many
health benefits; for example, it is packed with lysine (an essential amino acid), beta-glucans
(soluble fibre known for cutting cholesterol) (Mendoza, 2010), and more protein than any other
mushroom (Kenyon, n.d.). Currently at Trent University, a research team headed by Barry
Saville is looking at understanding the molecular aspects of the development of the fungal
component of huitlacoche. The goal of their project is to develop methods of huitlacoche
production and to complete market research to better understand how this product can be brought
to market and sold in Ontario.
So far, huitlacoche is relatively unknown in Canada and can be difficult to obtain. Few
specialty farmers grow huitlacoche in the U.S., and even fewer in Canada, for the fresh or frozen
market (Pataky & Chandler, 2003, p. 1261). It is also processed by at least six companies who
make the product available in canned format (Pataky & Chandler, 2003, p. 1261). More
commonly, this is how Canadians are able to purchase the product and unfortunately the canned
product can be unappealing. This signals a relatively untapped niche market in Canada for fresh
or frozen huitlacoche. This report will investigate the market for huitlacoche in Ontario by
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providing a strategic foundation for the product. Current market trends in Canada will be
investigated and the market will be explored through three different schools of thought.
Current Market Trends in Canada and Ontario for the Specialty Food Market
To determine a strategic foundation for huitlacoche in Ontario, it is necessary to consider
current market trends in Canada and Ontario for the niche food market. The majority of this data
is taken from a recent report that was done by Agriculture and Agri-Food Canada which
examines trends in this food market in North America. First, a definition for specialty food can
range from a food that is above average in quality or price, to foods for specialty diets, ethnic
foods or gourmet and artisan products (Agriculture and Agri-Food Canada, 2012, p. 2).
Huitlacoche fits this definition in more ways than one; it is an above average food in quality and
price and it is an ethnic food that has been featured in many gourmet recipes and restaurants
across the globe. This sounds rather appealing but the truth is that huitlacoche is fairly unknown
and scarcely available in Canada. However, the market for specialty foods is beginning to rise.
One very notable consumer trend in this market in Canada is the people that make up our
population. Approximately 16.2% of the Canadian population are groups of visible minorities
(Agriculture and Agri-Food Canada, 2012, p. 5). Many of the visible minorities are noticed in
larger cities. For example, approximately 42.9% of the Toronto population is composed of
visible minorities (Agriculture and Agri-Food Canada, 2012, p. 5). Statistics Canada states that
“the Canadian population is expected to become increasingly ethnically diverse, fuelled by
immigration” (Agriculture and Agri-Food Canada, 2012, p. 5). Furthermore, it has been found
that consumers who are part of a minority group or who have an immigrant background are more
likely to try specialty foods from other ethnic groups (Agriculture and Agri-Food Canada, 2012,
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p. 7). This indicates consumers increasing interest in diversity of their diets; another related
consumer trend is an increasing interest in healthy foods.
In Canada, the interest in healthy foods is particularly noticed in specialty consumers who
are exhibiting a demand for “‘free-from’ or ‘reduced’ products, as well as organic and ‘natural’
products, and simplified ingredient lists” (Agriculture and Agri-Food Canada, 2012, p. 5). This
means that people are becoming more conscious of what they are eating. Consumers who want
more specialty food products are more willing to buy them if they are all-natural, organic, eco-
friendly, or sourced locally (Agriculture and Agri-Food Canada, 2012, p. 5). Additionally,
consumers who are continuing to show an interest in ethnic food, different cultures, and healthy
eating, reveals the increasing opportunities in retail for ethnic foods and different varieties of
healthy food (Agriculture and Agri-Food Canada, 2012, p. 5). This should be extremely
beneficial to huitlacoche when it enters the Canadian market; it is an ethnic food with extremely
beneficial nutritious aspects that outweigh the corn it grows on.
Schools of Thought
The next section of this report will look at different schools of management thought to
help understand what the niche food market looks like in Canada and the demand for
healthy/ethnic food in relation to huitlacoche. Hopefully this information will also be able to
spark ideas for how to bring this product to market.
The Positioning School
The first school to be discussed is the positioning school. This school of thought sees
strategy formation as an analytical process and emphasizes that there are only a few select basic
strategies for any given industry (Mintzberg, Ahlstrand, & Lampel, 1998, p. 85). It also
recognizes the planner’s importance as an analyst, who studies and presents data that enforces
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their recommendation of generic strategies (Mintzberg et al., 1998, p. 85). The goal with respect
to this school is to determine what the niche food market looks like in Canada and Ontario.
A report conducted by Agriculture and Agri-Food Canada on the market of the functional
foods industry states that it is difficult to measure the size of this market but that it is steadily
growing and competition is intense (Agriculture and Agri-Food Canada, 2009, p. 4). The
industry is one that is resource-intensive, requiring time for research, development, and
commercialization, as well as financial resources (Agriculture and Agri-Food Canada, 2009, p.
4). Further, it is necessary to point out that there is a high-failure rate in this market due to
insufficient research and the competition with conventional foods (Agriculture and Agri-Food
Canada, 2009, p. 4). Therefore it is necessary to conduct extensive amounts of research to make
sure that huitlacoche enters the market in a way that will bring it success.
The next factor that is important to consider in the market of functional foods is
consumers. Some researchers believe that demographics play a small role in the market for
functional foods (Agriculture and Agri-Food Canada, 2009, p. 4). For example, consumers who
have suffered from an illness might have an inclination to purchase functional foods because of
their noted health benefits, meaning that it is important to understand the health issues in a target
market because this can predict willingness to buy these products (Agriculture and Agri-Food
Canada, 2009, p. 4). Some reports also indicate a difference in buying patterns with respect to
gender, where females purchase these foods more often, but others have reported no difference
(Agriculture and Agri-Food Canada, 2009, p. 4). Further, both small and extensive levels of
educational attainment have been associated with buying functional foods (Agriculture and Agri-
Food Canada, 2009, p. 4). This could be a possible benefit for Peterborough because there are
two educational institutions in the city. It is also likely that education on functional foods will
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play a factor in the willingness to buy huitlacoche and it is important to promote awareness
before it enters the market. Age may also be a factor in the consumption of functional foods.
Some reports have found that older age groups are more likely to see the use of these foods as
beneficial; this may be because of health-related concerns and illnesses (Agriculture and Agri-
Food Canada, 2009, p. 4). This as well may be advantageous for Peterborough because it is seen
as more of a retirement community.
Clearly there are different preference patterns and reasons why people seek out functional
foods and as such, they need to be developed for niche markets rather than mass markets
(Agriculture and Agri-Food Canada, 2009, p. 5). The health benefits of functional foods are one
of the main reasons why people incorporate them into their diets but they also consider other
factors such as price, convenience, and taste (Agriculture and Agri-Food Canada, 2009, p. 5).
These factors need to be considered as well. Huitlacoche is a more expensive product, but
because it is considered a delicacy, price may not be as important. Convenience is important with
any product. If huitlacoche is going to be made available in Peterborough, it needs to be in an
area accessible to the general public. These places may include farmer`s markets and specialty
store where other like products are sold. Taste is the final variable of importance. This does not
usually pose a problem for this product as it is a mushroom that can be incorporated into a
variety of recipes. The large issue that may be found for this product is the appearance. The
canned variety is black mush, on the cob it is resembles fungus, and when cooked it is inky. But
once it is incorporated in recipes, the appearance is unnoticed and the taste is well-liked. With all
of these factors to consider, educating consumers need to be one of the main priorities in
introducing this product to market.
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A final aspect to consider that will influence huitlacoche and the market for this product
is farmland. If the conditions are not adequate, this could account for a poor harvest or a limited
amount of product available. While the weather may at times be uncontrollable, the areas in
which farmland exists indicates opportunity. Ontario alone has roughly 52% of the best farmland
that is available in Canada with the majority existing near Lake Ontario (Seccombe, 2007, p. 8).
Further, Ontario contains all of Canada’s ‘class A climatic potential’ farmland and most of its
‘class B climatic potential’ farmland as well (Seccombe, 2007, p. 8). The climate in Ontario is
also perceived as the best in Canada for farming according to the Agroclimatic Resource Index
(ACI) (Seccombe, 2007, p. 21). Much of this quality farmland is also located near urban markets
which provide a labour force and a consumer market where the products can be transported to
and sold (Seccombe, 2007, p. 21). Something of benefit is that a majority of the farms in Ontario
are small, compact and labour intensive; only Newfoundland and Labrador have smaller farms
than Ontario (Seccombe, 2007, p. 21). In Ontario “the highest proportion of farmland [grows]
crops” (Seccombe, 2007, p. 21). These are the farms that will be more inclined to grow
huitlacoche; large commercial farms will have no interest because of their priorities most likely
lie in growing large amounts of crops for wholesalers or retail outlets. Huitlacoche will require
more specialized care from smaller farms. These factors seem to be positive for introducing
huitlacoche into the Ontario market. Prime farmland and smaller farms are essential for its
success and Peterborough is in the area of this ample farmland.
The positioning school is well-known for its emphasis of generic strategies being
implemented in industries. Michael Porter is a notable figure in this school of thought. He states
that companies can have one of two competitive advantages; either low cost or differentiation
and combining this with the scope of the business/industry will form a strategy (Mintzberg et al.,
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1998, p. 102). Huitlacoche will not be a cost leader because the price for the product is more
expensive, therefore its strength will be differentiation. The scope of this product is more of a
narrow focus because it is a niche product. Therefore, the type of strategy needed for this product
will be differentiation focus. This means that the offerings of this product are differentiated in the
market (Mintzberg et al., 1998, p. 104). This is an integral part of the strategic foundation
because it could form the starting point of a strategy to bring huitlacoche to market.
The Environmental School
The second school of thought to be discussed is the environmental school. This school of
thought sees strategy formation as a reactive process and believes that the environment is a set of
general forces that is the central-actor in the decision-making process (Mintzberg et al., 1998, p.
288). More specifically, the organization is seen as passive and reacts to the agenda that the
environment establishes (Mintzberg et al., 1998, p. 286). The goal with respect to this section is
to examine the business environment relative to huitlacoche. Consumers changing demands,
especially the rise in demand for the health food market and the local food act that was
introduced this year will be discussed.
An important aspect to consider in the environment that will influence huitlacoche and
the market for this product is the changing demands of consumers. As it was mentioned earlier,
there has been a push in the demand for healthy foods. In Canadian society today roughly 47% of
the population is overweight or obese (Donald, 2009, p. 4). The health of future generations is
becoming an increasing concern and this is prompting people to become more health conscious
and to look for better alternatives including healthy, local, and organic foods (Donald, 2009, p.
4). This is especially seen in the specialty food market. Consumers in this market are not only
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interested in diversity in their diets; they are also interested in healthier food options (Agriculture
and Agri-Food Canada, 2012, p. 5).
With respect to Ontario, “many Ontarians have become interested in food again; in the
ingredients, in the quality, and in its health benefits” as well as “food’s capacity to embed local
jobs and shape a place’s social, environmental and economic sustainability” by way of “local,
organic and biodynamic farming, but through processing and distribution practices that reduce
carbon footprints by reducing waste and conserving soil, energy, water, and farmland” (Donald,
2009, p. 1). This illustrates the trend in healthy foods but also enforces the importance of local
and sustainable products. Buying local is beneficial in a number of ways including shortening
food supply chains and reducing environmental impact, fostering connections between farmers
and consumers and supporting smaller farms and local businesses (Seccombe, 2007, p. 16-18).
Introducing this product in Peterborough can foster these conditions because it is near many
smaller towns as well as larger metropolis areas.
Another important aspect of the business environment is Bill 36; the Local Food Act that
was just introduced to Ontario this year. This act is important to the environmental school of
thought because it changes the business environment in a way that is advantageous to
huitlacoche. There are three purposes to the act. The first is to “foster successful and resilient
local food economies and systems throughout Ontario” (Legislative Assembly of Ontario, 2013).
The second is to “increase awareness of local food in Ontario, including the diversity of local
food” (Legislative Assembly of Ontario, 2013). And the third is to “encourage the development
of new markets for local food” (Legislative Assembly of Ontario, 2013). The second and third
points are the most relevant to this project. They create an opportunity and open the door for
niche food markets in Ontario. Huitlacoche is a diverse food that many people have no
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knowledge about. This act plans to promote awareness for locally grown food, including its
diversity. The act also plans to encourage the development of new markets for local food which
can help to reach out to potential consumers. Support for huitlacoche from this act is extremely
beneficial because it promotes awareness and opportunity.
In the contingency view of the environmental school, Mintzberg et al. (1998) identify the
dimensions of the environment that account for differences within industries and they are
stability, complexity, market diversity and hostility (p. 289-290). The market for huitlacoche and
specialty foods would be dynamic because of the changes that can occur unexpectedly in the
market (consumer demands, weather), complex because it requires a great deal of knowledge
about the product and consumers, integrated because the product will be sold to specific
consumers and is starting small, and hostile because of the competition in the functional food
market and the availability of resources (Mintzberg et al., 1998, p. 289-290). They may be
varying degrees of each of these components; however, each is important to the strategic
foundation because they can be a starting point for a market strategy and they offer insight into
the market.
The Cultural School
The final school of thought to be discussed is the cultural school. This school of thought
sees strategy formation as a collective process (Mintzberg et al., 1998, p. 263). The process is
based on social interaction that comes from the beliefs and understanding of people participating
(Mintzberg et al., 1998, p. 267). Individuals acquire this specific information through
acculturation or socialization, therefore strategy takes the form of perspective above all
(Mintzberg et al., 1998, p. 267-268). The goal with respect to this section is to examine the
culture of the famer and the buyer in relation to the market for huitlacoche.
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While researching huitlacoche I conducted interviews with people to learn their opinions
on the product (the interviews are included below in the appendix). I discovered that many
people had never heard about huitlacoche before. Sometimes when people are exposed to
something new and different, their perceptions can be somewhat negative. From the perspective
of a farmer, huitlacoche can be seen as a pest that ruins corn. The cultural nature of the farmer is
to use their land in a certain way to grow specific types of crops and keep these crops healthy.
When they see huitlacoche on their corn, its appearance may influence their recognition of its
worth. This is why it is important to expose the resistance that farmers have toward huitlacoche
so that the issues can be addressed. The culture of the farmer needs to change. Farms are
businesses and the farmer needs to be viewed as a business person. They want to maximize their
potential and have the best possible growing season they can. An important aspect in receiving
farmer support is to communicate the money that can be made growing huitlacoche and that it is
not a threat to other crops. If a market for the product is established, farmers will have the
opportunity to service this market, and this can be another appealing aspect to growing the
product.
While the cultural nature of the farmer is extremely important, it is important to establish
that the cultural nature of the buyer is equally as important. As mentioned above, when I
conducted interviews, many people had not heard of huitlacoche before. The appearance of the
product tended to give people their first impression of it and this was usually negative. Trying
something new is not for everyone and this means that only a certain group of people will be
interested in the product. They could include people interested in ethnic markets, in functional
foods, in the health market and foodies. Huitlacoche has many aspects that will appeal to this
group and they should be promoted. This could encourage more people outside the mentioned
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groups to also consider trying the product. Further, I made the effort to contact a retailer about
the product (email is included below in the appendix). She was skeptical and unsure about if she
would choose to sell the product. This again reinforces the point that education to the general
public will be an important part of this process so that it can change perspective. Resistance may
be experienced and it is important to not get discouraged because this is a niche product that only
a certain market will be interested in purchasing and eating it. The goal with respect the cultural
school is to understand how people respond to this product and find a way to alter their response
with a well thought out strategy. The perspectives of farmers and buyers help to determine the
type of strategy needed to bring huitlacoche to market. The interviews that I have conducted
have started this process but it will be important to continue and possibly have the next
placement student take over.
In conclusion, huitlacoche it is relatively unknown in Canada and can be difficult to
obtain. Few specialty farmers grow huitlacoche in the U.S., and even fewer in Canada, for the
fresh market or frozen market (Pataky & Chandler, 2003, p. 1261). It is also processed by at least
six companies who make the product available in canned format (Pataky & Chandler, 2003, p.
1261). More commonly, this is how Canadians are able to purchase the product and
unfortunately the canned product can be unappealing. This signals a relatively untapped niche
market in Canada for fresh or frozen huitlacoche. The goal of this report was to investigate the
market for huitlacoche in Ontario by providing a strategic foundation for the product. Current
market trends in Canada were investigated and the market was explored through three different
schools of thought: positioning, environmental, and cultural. Although there seems to be much
work to do, an undeniable opportunity exists with respect to this product.
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Appendix
SWOT Analysis and Interviews
Before I began writing this report as a strategic foundation, I conducted a few interviews
to get people’s perspectives on huitlacoche. I wanted to interview farmers, possible consumers,
producers, retailers and restaurant owners in the area but this proved to be more difficult than I
originally thought. Many farmers did not get back to me and unfortunately I did not get the
chance to sit down with any. I accessed the student population for potential consumers and they
had some interesting insights. I interviewed the leader of this project, Barry Saville, the project
manager, and students working on this project. La Hacienda restaurant owner Sandra was also
kind enough to sit down with me. Her interview proved to be very helpful. Each of the
interviews I conducted are included below. I also contacted Jo Anne’s Health Foods for an
interview from the perspective of a retailer and they responded with a disappointing answer but
she also offered some useful observations. It shows the possible resistance the community will
show for huitlacoche and demonstrates the importance in educating the general public. This
email will be included below. I also wanted to include some of my recommendations of steps
needed to take to market/recommendations for the next placement student because I was the first
student in this position. This information will be included below.
SWOT Analysis Data
Producers:
Project Leader, Project Manager, & MBA Students
Strengths
-health benefits associated with the mushroom (protein, amino acids, fibre)
-the novelty of the product
-considered a delicacy in some areas
-more complete in amino acids than in corn (more health benefits than in corn)
-unique flavour (sweet, earthy)
-price premium; able to charge more for this product
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-potential for new recipe development with this product
-organic angle for production
Weaknesses
-the perception of the product can be relatively negative
-because it is new, it may be difficult to get people involved
-the appearance of the product: fresh looks best, canned looks like brown mush (in North
America we prefer things to look a certain way- don’t even like bruised fruit)
-no real established recipes, besides incorporating into soup, quesadillas etc.
-not easy to produce
-production; the issue of getting inoculum to farmers
-lots of effort and time is required to be involved in the growing, producing and harvesting
process
-it is a new concept for farmers and an education process will be required
-mushroom can infect other plants; need to be aware of containment
-harvest production; can damage product if it is not done properly
-hand harvesting is the only option at this point and is very time consuming
Opportunities
-push toward natural and organic foods in some areas
-expansion in the ethnic market
-not available in Canada and companies in U.S. are usually unwilling to ship to Canada
-no source for the product in Canada
-many high end/ethnic restaurants and farmers markets in Peterborough and Ontario
-the inoculation process can be used to assist those relying on natural infection
Threats
-the weather; Canada may not always have ideal growing conditions; seasonal
-can buy the product canned which may deter from buying it fresh/frozen
-no current identified target consumer
-society is divided, some are willing to try while others are not
Retailler/Consumer
Restaurant Owner- Sandra Lennox, La Hacienda
Strengths
-health benefits; because of the health benefits, more will be willing to try the product
-people are eating more adventurous foods
-the product has been eaten for centuries and is extremely popular in Mexico
-taste (may be more appealing with those who have a special palette and want to try it)
-appearance (don’t see as a weakness because there are so many odd/gross looking products that
are edible, for example, cactus in the grocery store)
-can be used in many specialty items
Weaknesses
-may not be a product for everyone
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-may not be available year round
-necessary to experiment and have trial run before launch of the product
Opportunities
-ability to introduce in festivals
-many restaurants in Peterborough that may consider using this product
-corn farmers may already grow it but are unaware of what it is/what they can do with it
-if you don’t get a lot of the product you have the ability to charge more for the item
Threats
-growing conditions on this side of the border may not be as good as in Mexico (might have to
consider the first growing season a learning experience)
-no food festivals in Peterborough to showcase the product
-potential for people to get ill if the product is not correctly studied
-people may not understand how to deal with the product (cooking, farming) and therefore may
get a bad crop, or meal etc.
Questions:
Q) Would Huitlacoche be something that you feature? Or a regular item on the menu?
A) If it was accessible, would have it on the menu but this would be dependent on the quantity
available and the quality. Above all I would have to make sure that the product was safe to sell,
therefore I believe that a nutritionist is imperative on this project. Studies must be conducted.
Q) Would you prefer to use fresh, frozen, or canned Huitlacoche?
A) I have used canned before but the comparison to fresh is unreal. Fresh is always preferred,
especially in the restaurant business but this may be impossible in Canada. It is also important
that the product is affordable so that prices charged in the restaurant aren’t unreasonable.
Q) Do you think that other restaurants would be interested in having the product on their menu,
or just La Hacienda?
A) I believe that there are a few specialty restaurants that would be interested in featuring this
product in their menu. For example, The Planet might possibly be interested in having
Huitlacoche on their menu because they are an organic and vegetarian focused.
Q) Have you cooked with it before?
A) Yes! We have done a cooking class at La Hacienda a few years ago because it was requested.
It was quite successful; 30 people attended. And we have also cooked a sample for Trent when
the project was getting started. I’m not sure if people would cook Huitlacoche for themselves
because they are unsure, afraid or intimidated.
Q) Do you believe that advertising needs to be done and if so, what type?
A) Yes it needs to be done. I think that social media needs to be utilized and I also believe that a
sample evening should be organized. This could include a free appetizer on a menu and if this is
successful, move it to a feature on the menu. Because the product I unknown, any way of getting
it out there is beneficial.
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Consumers (all never been exposed to the product)
Journalist- Gail Paquette
Strengths
-health benefits
-if you had a bad year for corn, the Huitlacoche could save your crop
Weaknesses
-know almost nothing about the product
-would need to be well informed before trying the product (but usually once people are informed,
they will try new things)
-gross looking; why eat something that is gross to look at
Opportunities
-many people are always looking for something new and healthy
-popularity of farmer’s markets; especially in the summertime
Threats
-substitutes available for the product; for example, if it filled something in your diet, people may
prefer to take a pill or eat something they know
-farmer’s markets are less popular in the winter months
Production/harvesting conditions in Canada
Student- Jay Brault
Strengths
-healthy; healthy foods are on the rise
-canned is non-perishable and easy for shipping
Weaknesses
-unknown
-not many producers
-not in line with mainstream foods- delicacy in Mexico, therefore people may not know how to
cook the product
-grown on corn- exposed to fertilizers and other sanitation methods
-appearance
-stereotyped
-expensive
-fresh longevity
Opportunities
-untapped market
-integration with other foods (new recipes)
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-in Ontario and western provinces farming is a large industry (potential for employment
opportunities)
-reduce dependence on imports
Threats
-other mushrooms exist that are already eaten commonly
-less expensive substitutes exist
-quality differences in the product (due to growing conditions)
-weather conditions, there is a shorter growing season in Canada
-harvesting is labour intensive therefore you would need to pay people to cut it off by hand;
Mexico would have an advantage in wage differences
Questions:
Q) If you saw the product in the grocery store or farmer’s market, would you buy?
A) No, not specifically. This is partially because I don’t know what to use it for or how to cook
it. Some advertising or education component would be crucial.
Q) What is appealing/unappealing about the product?
A) The look and price of the mushroom are unappealing but the health benefits and nutrient
factor are appealing.
Students- Riley Shaw and Danielle Lapointe
Strengths
-nutritious
-for people who are vegan it could be seen as a way to get protein
-more nutritious than corn (more health benefits in Huitlacoche)
-more beta-glucans than oatmeal
Weaknesses
-appearance; “mutant cob”
-being called fungus gives it stereotypical characteristics even if they don’t exist (for example,
does it smell bad?)
-difficult to obtain; costly to ship
-calling it a Mexican truffle is deceiving because it’s not a truffle
-inoculation seems artificial and people are trying to move away from artificial processes (again
education is crucial)
-keeping it fresh
Opportunities
-Canada is becoming more culturally diverse especially in larger cities such as Toronto, and even
here in Peterborough
-nutritional market, vegan market, working out market is expanding and each market may find an
appreciation for the nutritional benefits in Huitlacoche
-‘super food’; if you used this word people may be more inclined to buy
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-to combat the appearance, would it be possible to have this product in pill format
-have a doctor endorse the health benefits (for example Dr. Oz selling a jar format explaining
benefits
Threats
-growing conditions in Canada; summers vary each year, can only grow in the summer or in a
greenhouse in Canada (not every farmer would maintain a greenhouse plant during the winter, or
even have access to a greenhouse)
-grocery stores may not want to carry the product because the spores could explode and cause a
mess
Questions:
Q) If you saw the product in the grocery store or farmer’s market, would you buy?
A) If I had known nothing about it and then saw it, no way. If I was more educated then I think I
might be more inclined to try. An idea would be to have a sample station in a grocery store
where the mushroom was already cooked; I would more likely try then.
Q) What is appealing/unappealing about the product?
A) The look of the product is unappealing; that’s mainly the issue. The nutritional benefits are
appealing and it would be interesting to have something else to add to recipes.
Farmer Interest
I was in contact with one farmer who expressed interest in this project. We emailed and
phoned each other back and forth but were unable to make a connection. Interestingly enough,
she was willing to discuss the product further. I believe that it may be beneficial to try to contact
her again. Her name is Anna Petry of Deep Roots farm.
Email from Jo Anne’s Health Foods:
Hi Emma,
I apologize for not getting back to you. I found this buried in my email. I am not sure we would
have been able to really help you with this study. Some of the considerations for us about this
product is, the integrity of how the smut is grown, and what they are using when it is artificially
implanted on the corn. With all the buzz about GMO corn, that would be a concern to us as well.
Also it would have such a limited buyer. We would not pick this item up for resale because of
the specific demographic that is familiar with the use of corn smut. Our area doesn't have a large
enough Spanish community to support having the product. I could see it doing well in a larger
metropolis like the GTA.
Again I apologize for the late response.
Thanks,
Sharon
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Short Term Recommendations to take to Market/Recommendations for Next Placement
Student
• Provide education on the huitlacoche to consumers, retailers, farmers etc.
• Contact more people for interviews to determine interest and opinions on huitlacoche
(especially farmers and retailers)
• Determine the size of the target market in Peterborough
• Determine how to reach the target market (corn festival, food festival, farmer’s market,
chef competition)
• Add to the report and complete a section on the target market/who would be interested
• Promotion of huitlacoche to local markets
• Obtain restaurant contract
• Develop marketing plan
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References
Agriculture and Agri-Food Canada. (2012). The Specialty Food Market in North America.
Retrieved from www.ats-sea.agr.gc.ca/info/pdf/6116-eng.pdf
Agriculture and Agri-Food Canada. (2009). Consumer Trends: Functional Foods. Retrieved from
http://www.gov.mb.ca/agriculture/statistics/agri-food/canada_functional_foods_en.pdf
Donald, B. (2009). From Kraft to Craft: innovation and creativity in Ontario’s Food Economy.
Retrieved from http://martinprosperity.org/media/pdfs/From_Kraft_to_Craft-
B_Donald.pdf
Legislative Assembly of Ontario. (2013). Bill 36, Local Food Act, 2013. Retrieved from
http://www.ontla.on.ca/web/bills/bills_detail.do?locale=en&BillID=2754&detailPage=bil
ls_detail_the_bill
Kenyon, C. (n.d.) Huitlacoche (Cuitlacoche). Retrieved from http://
mexicanfood.about.com/od/faqandglossaries/g/huitlacoche.htm
Mendoza, M. (2010, April 27). Corn Smut Delicacy Huitlacoche Is Good For You. Retrieved
from http://www.huffingtonpost.com/2010/04/27/huitlacoche-corn-smut-
goo_n_553422.html
Mintzberg, H., Ahlstrand, B., Lampel, J. (1998). Strategy safari: A guided tour through the wilds
of strategic management. New York, NY: Free Press.
Pataky, J. K., & Chandler, M. A. (2003). Production of huitlacoche, Ustilago maydis:
timing inoculation and controlling pollination. Mycologia, 95(6), 1261-1270.
Seccombe, W. (2007). A Home-Grown Strategy for Ontario Agriculture. Retrieved from
http://www.toronto.ca/health/tfpc/pdf/omafra_policy_shift.pdf
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