2025 PRODUCT OF THE YEAR WINNERS! | What’s hot in frozen foods? OPPORTUNITY FRESH
Farm Boy president and general manager Shawn Linton on how the grocer remains focused on delivering fresh experiences
OUR ANNUAL GROCERYIQ STUDY REVEALS WHAT’S ON THE MINDS OF SHOPPERS
Vancouver Convention Centre, West Building • Vancouver, BC
Conference: Friday, April 25, 2025
Trade Show: Saturday, April 26 – Sunday, April 27, 2025
Trade Show Hours: 10:00 AM - 5:00 PM
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Front Desk 9 The Buzz 61 New on Shelf
12 Fizz with benefits How Darren Portelli is building a better-for-you soda brand IDEAS
15 The spectre of tariffs Tariffs response planning: industry leaders call for collaboration
17 The big question Industry execs share their hiring and retention strategies
18 The clash between health and indulgence Jenny Thompson of Ipsos on Canadians’ changing eating preferences
51 The perfect package Fresh. Healthy. Convenient. Salad kits have it all!
AISLES
53 Frozen meals turn up the heat Bold, flavourful options are leading the charge in the frozen aisle
57 Play the cards right In a digital world, there’s still an appetite for greeting cards
59 Cacao: Four things to know It’s more than just an ingredient for chocolate
EXPRESS LANE
62 The age of intelligence Andreas Duess of 6 Seeds Consulting says now is the time to leverage AI’s potential
Learn the story behind Canadian pork. Watch the new Canadian Pork Story video.
Canada Pork has created a video to highlight the farm-to-table quality assurance offered by Canadian pork. Use this video on your social media, in your flyers and advertising and on your website to give your customers the information they are looking for.
YOUR CUSTOMERS WANT TO KNOW MORE ABOUT THE PORK THEY ARE BUYING.*
84% of consumers want to see that the pork they are buying is from Canada.
70% want information on sustainable practices used by pork producers.
55% consider farming practices when purchasing pork.
2300 Yonge Street, Suite 2900, Toronto, ON M4P 1E4 (877) 687-7321 Fax (888) 889-9522 www.canadiangrocer.com
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EDITORIAL ADVISORY BOARD
BONNIE BIROLLO , SOBEYS
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GIANCARLO TRIMARCHI VINCE’S MARKET
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A BUMPY START
The year is off to a dramatic start. No question about that. On the political front, the first month of 2025 has seen the resignation of the Canadian prime minister and a new U.S. president taking office, ushering in a new era of uncertainty.
The new president’s promise of punishing tariffs on Canadian goods is dominating headlines as politicians and business leaders scramble to find ways to respond to the threat. Correspondent Rebecca Harris spoke with leaders Gary Sands (Canadian Federation of Independent Grocers) and Michael Graydon (Food, Health & Consumer Products of Canada) on how they are preparing for the impact of tariffs as they advocate for long-term solutions to strengthen the industry. (Read the article on page 15.)
In this issue, we also present key findings from our 2025 GroceryIQ Study: Taking Stock of Grocery Shopper Attitudes and Behaviours (page 32). Conducted in collaboration with EnsembleIQ’s (our parent company) research team, this fifth edition of the study takes the pulse of grocery shoppers in Canada. From how and where they shop, their frustrations with the experience, loyalty program satisfaction, online shopping preferences, strategies for coping with inflation, how they measure a grocer’s reputation and much, much more.
For our cover story, managing editor Kristin Laird caught up with Farm Boy’s president and general manager Shawn Linton at the grocer’s newest store in Toronto’s Leaside neighbourhood. In the interview (starting on page 24), Linton talks about the new “A Farm Boy Fresh
Twist” brand strategy, the Empire advantage and how the grocery chain continues to stay true to its roots while expanding its footprint across Ontario.
And in the latest instalment of our “The Leaders” series (page 20), Simon Laroche, president of Kraft Heinz Canada shares his perspective on leadership. From empowering team members, taking big swings, to fostering a growth mindset (and not taking himself too seriously!), Laroche offers valuable insights on what it takes to lead today. CG
NO FRILLS recently opened its 300th store. Raman’s No Frills is located at 325 Central Parkway West in Mississauga, Ont. It spans nearly 40,000 square feet and offers rotisserie chicken, an in-store bakery, organic and gluten-free options and grocery products. This is store owner Raman Kumar’s second No Frills location in the Peel Region.
Cambridge, Ont. is home to a new FRESHCO. At the Empire-owned discount store, shoppers will find multicultural foods, produce and fresh-baked goods from the in-store bakery, the first in the FreshCo network.
T&T SUPERMARKET set an opening date for its second downtown Toronto location. The Loblaw-owned Asian grocery chain will open the 31,000-sq.-ft. space near Yonge-Dundas Square on Feb. 13. It will offer T&T’s usual fare, including its street food section, self-serve hot food, sushi, PaPa Chicken, Egg Tart and more.
With the
Loblaw’s foodservice wholesaler, WHOLESALE CLUB, opened its first Brampton, Ont. location in mid-December. Providing more than 7,000 foodservice products, including multicultural foods, restaurant disposables and professional-grade kitchen equipment, the store also features South Asian and Caribbean foods to serve the needs of the local community.
WALMART CANADA will open a Supercentre in Oakville, Ont. later this year. Located at Hopedale Mall in the town’s west end, the store will feature a full assortment of fresh produce, meat, frozen, dairy and bakery products in addition to dry grocery items and general merchandise. And, in a first for its Oakville locations, the Supercentre will be home to Walmart’s Hot Kitchen, serving hot meals to-go, available for pickup or delivery.
News to share? Tell us about your openings, comings and goings, etc. by dropping a line to
Time to nominate!
We’re looking for the most impressive women working in the Canadian grocery industry today for our 2025 Star Women in Grocery Awards. If you know of an outstanding woman who is making a difference in grocery, please take a few minutes to tell us about her at StarWomen.ca. The deadline to nominate is March 28 and winners will be revealed in our June/July issue.
downtown Toronto store, located near Yonge-Dundas Square, is set to open on Feb. 13 and will offer all the hallmarks the Asian grocer is known for
cutting of a ribbon, Empire’s discount banner FreshCo in Cambridge, Ont. officially opens its doors
The recent opening of Raman’s No Frills in Mississauga, Ont. marks the discount banner’s 300th store
The Buzz
Darrell Jones celebrated for “bold” and “visionary leadership”
From an after-school gig as a bag boy at Overwaitea Foods in Cranbrook, B.C. to president of a growing grocery operation that employs some 30,000 team members, Darrell Jones has achieved much in his 49 years as a grocer. In January, business partners, suppliers, team members, family and friends turned up at The Westin Bayshore hotel in Vancouver to celebrate Jones for his bold and visionary leadership as he winds up his distinguished career.
“I have said it many times and I will say it again tonight, it’s all about the people,” said Jones. “Being the president of one of the largest private companies in Western Canada has never been something I’ve taken for granted. I consider myself very, very fortunate to have been given the chance to lead this amazing group of people as their president for the past 13 years.” Visit CanadianGrocer.com for more on Darrell Jones’ retirement.
Gonzalo Gebara is leaving Walmart after more than two decades with the company, including the two years he spent leading its Canadian operations as president and chief executive officer. He will return to Argentina to reunite with his family and explore new opportunities, according to a press release. Venessa Yates, who joined Walmart in 2016, and most recently served as senior vice-president and general manager of the Walmart+ membership program, will succeed Gebara. Additionally, Steve Schrobilgen, currently senior vice-president and business unit leader for Walmart in the Western U.S., will join Walmart Canada as chief operating officer, overseeing operations, supply chain, real estate and format.
GS1 Canada has named François Bouchard and Adam Zanatta as co-presidents of the not-forprofit organization. The appointment follows the passing of president and CEO Eileen Mac Donald last fall. In their new roles, Bouchard and Zanatta will lead the strategic direction, financial prudence and GS1 global standards adoption.
Saputo’s chief operating officer (COO) Frank Guido is leaving the company for “personal reasons.” In addition to his current responsibilities, president and CEO Carl Colizza will assume the duties of COO in the interim. Prior to taking the COO role in September 2024, Guido served as president and COO of Saputo’s U.S. dairy division.
The Lamb Company
promotes Richard Caetano to VP, Sales and Marketing
The
a leading provider of grass fed Lamb and Beef is pleased to announce the promotion of Richard Caetano to Vice President of Sales and Marketing for Canada effective January 1, 2025.
Mr. Caetano will be responsible for the sales and marketing efforts as we further expand our case-ready beef and lamb programs to retail and food service organizations across Canada. With 25 years of experience as a strategic protein sales executive with in-depth knowledge of case-ready beef, procurement, and new business development, Mr. Caetano is ideally qualified to lead the sales efforts of the Canadian operation.
Shane O’Hara, CEO and President of The Lamb Company, commented, “Richard has a proven track record in case-ready and retail applications and in his new position, I am confident that he will continue that success by using his vast experience and talent.”
The board heading up Canada’s grocery code of conduct hired an adjudicator to oversee the code’s implementation. Karen Proud, former president and chief executive at Fertilizer Canada, officially steps into the role on March 17. Her responsibilities include fostering compliance, providing guidance on the code’s interpretation, resolving disputes, monitoring practices and reporting on progress annually. The code is expected to be operational by June.
Guru Organic Energy appointed former PepsiCo Canada executive Patrick Charbonneau as its executive vice-president of sales. He brings more than 25 years of experience in the food and beverage industry to the role. Charbonneau spent more than 11 years at PepsiCo, most recently serving as general manager and vice-president of foodservice. Prior to that, he spent 10 years with Frito-Lay in customer management roles.
Produce veteran Mike Giarratano joined Dominion Citrus as director of business development. Giarratano most recently served as category director, merchandising for No Frills. He also spent more than 20 years at Metro in various roles including category manager and buyer for produce and floral.
Molson Coors appointed Lindsay Wilson as general manager, Ontario sales. In her 16 years with the drink and brewing company, Wilson has held roles across marketing, innovation, partner management, retail, sales and strategy.
François Bouchard
Adam Zanatta
Frank Guido
Karen Proud
Patrick Charbonneau
Lindsay Wilson
Gonzalo Gebara
Venessa Yates PEOPLE
Lamb Company,
Darrell Jones (centre) with Pattison Food Group’s executive committee
Appointment Notice
Cascades appoints two Executive Vice-Presidents
To support its strategic growth, Cascades Inc (TSX: CAS) is proud to announce the appointments of two Executive Vice-Presidents.
Mr. Jean-David Tardif has been appointed to the position of Executive Vice-President, Packaging. Mr. Tardif was, until last November, President and Chief Operating Officer of Cascades Tissue Group. Jean-David Tardif holds a bachelor’s degree in mechanical engineering and an MBA.
Jérôme Porlier will take up the position of Executive Vice-President, Tissue. Mr. Porlier was, until last November, President and Chief Operating Officer of Cascades Specialty Products Group. Jérôme Porlier joined Cascades in 2012 and has held various roles within the Tissue Papers Group, including Plant Manager and General Manager.
In 2019, he joined the Specialty Products Group as Vice-President of Operations and subsequently as President and Chief Operating Officer. Mr. Porlier has a bachelor’s degree in mechanical engineering and an MBA and has also completed Six Sigma’s Black Belt Lean Manufacturing continuous improvement training.
“Jean-David and Jérôme are mobilizing and well-organized managers appreciated for their positive leadership. They demonstrated the full extent of their talent for fostering the full potential of highperformance teams and improving customer service. I am convinced they have what it takes to succeed in these new challenges," said Cascades President and Chief Executive Officer Hugues Simon.
He has worked in each of Cascades’ three groups since joining the Company in 1997. From 2013 to 2017 he was Vice-President, Consumer Products of the Tissue Papers business. He subsequently served as Vice-President, Operations, for the Company’s Containerboard Packaging segment from 2017 to 2019. Mr. Tardif returned to the Tissue Papers business in 2019 and has served as the Group’s President and Chief Operating Officer since then. About Cascades | Founded in 1964, Cascades offers sustainable, innovative and value-added solutions for packaging, hygiene and recovery needs. The company employs 10,000 women and men, who work in a network of nearly 70 production units in North America. Driven by its management philosophy, half a century of experience in recycling, and continuous research and development efforts, Cascades continues to provide innovative products that customers have come to rely on, while contributing to the well-being of people, communities and the entire planet. Cascades’ shares trade on the Toronto Stock Exchange under the ticker symbol CAS.
Jean-David Tardif
Jérôme Porlier
People
FIZZ WITH BENEFITS
How Darren Portelli is building a better-for-you soda brand
By Andrea Yu
Photograph by Jaime Hogge
All his life, former film and TV producer Darren Portelli had been suffering from visual snow syndrome, a rare neurological condition that causes visual disturbances, migraines and tinnitus. In 2013, Portelli was researching different ways to improve his mental and physical health such as exercising more and reducing added sugar. One evening, he decided to treat himself to a sugary ginger soda and after a few sips, he suffered from a terrible migraine. That prompted Portelli to try to create his own ginger soda, one that had good-for-you benefits without an unnatural sugar spike.
His research over the years led him to a root vegetable called yacon root. “Yacon has a sweetness to it,” Portelli explains. “It’s got natural sugars, but it’s also high in prebiotic fibre, which is great for your probiotic gut bacteria.” Prebiotic fibre, Portelli explains, mitigates spikes in your blood sugar levels.
Portelli developed an early version of a yacon syrup-sweetened ginger soda in 2016, which he named Ginga’ Kick. “I would drink it and just feel so great,” he says. Wanting to share his creation with the world, Portelli developed two more soda flavours—vanilla and root beer— and started selling his handcrafted sodas at Toronto’s Withrow Park Farmers’ Market in September 2016 under the name Crazy D’s. “Throughout the process of me talking about these vegetables that I want to put in soda, people were saying that I was crazy,” he recalls.
At the time, Portelli was in-between film production gigs and decided to go all-in on bringing Crazy D’s to the masses. That led to a few small milestones in late 2016: participating in his first trade show, getting stocked at his first café in Toronto (Might & Main), and receiving a small investment gift from a family member, along with seed funding from BioEnterprise, a food and agri-tech accelerator.
Meanwhile, Portelli experimented with carbonation, bottling and kegging systems. “My kitchen was a huge disaster,” he recalls. “There were explosions and glass would end up all over the house. My wife wanted to kill me.” Wisely, Portelli moved his production into a commercial facility in February 2017. Shortly afterwards, he launched at nine Goodness Me! stores in Ontario. “That was our first big chain,” Portelli explains. “I pitched them at an event and they have been so supportive ever since.”
More major chains followed. In 2018, Crazy D’s launched in seven Whole Foods Market locations in Ontario. Then, in early 2019, Crazy D’s made it into 38 Metro stores and 20 Sobeys locations in Ontario, as part of their local programs.
As the company grew, Portelli—who was producing his sodas in twist-off glass bottles with a co-packer in Niagara— faced challenges scaling up production. “We used a lot of real spices and pulps in our sodas and they were getting caught in the lines,” Portelli explains. “Co-packing led to a lot of problems. I lost a lot of money.” Prices for his ingredients were also increasing, so Portelli reformulated his recipe into something that could be mass-produced, while also retaining the flavour, taste and prebiotic benefits he loved. He also partnered with a new co-packer and made the decision to switch from glass bottles to cans. “The overall carbon footprint is much better,” Portelli says of the canned format.
His perseverance paid off. By making changes to his supply chain, Portelli was able to reduce his ingredient costs by 50%. The new formulation was ready to hit the market by the fall of 2020. Then, Portelli made a big push into e-commerce and saw his year-over-year sales in that channel increase by 300% from 2022 to 2023. Last year, after participating in a pitch event, Portelli made his foray into international sales, debuting at eight stores of the Panamanian grocery chain Riba Smith. He also launched his products in 40 Longo’s stores in Ontario.
Fast forward to today and Crazy D’s Sparkling Prebiotic Sodas are currently sold in 225 stores across Canada in four flavours: Thrilla in Vanilla, Ginga’ Kick, Rockin’ Rolla Cherry Cola and Twisted Citrus. This year, the company will increase its international expansion with a launch into 120 stores of a major Mexican grocery chain. Portelli is also eyeing another Canadian expansion this year, a move that would double his store count in the country.
For Portelli, the success and growth of Crazy D’s isn’t just about keeping a business afloat, it’s also about helping people thrive. “It’s a part of my life,” says Portelli, who attributes consumption of the soda, alongside other diet and lifestyle changes, to improvements in his health. “I have a lot of great supporters and they’re buying it for a reason. There’s definitely a very special place for this beverage and I’m very proud of the drink.” CG
30 seconds with …
DARREN PORTELLI
What keeps you passionate about what you do?
The customers, in a big way. Some have very serious health issues and they just want a drink they can have and enjoy. Ultimately, health wins, or at least it should win, and that is what keeps me in the game.
What has been your best day in the business, so far?
The early days were so great. There was excitement within that first year when I really had no idea about the grocery and beverage industry. It was quite a rush: the press, winning the Green Living Show’s Top Innovative Product award and the grant-funding partners we were finding, but I still had much to learn about distribution, sales and brokerage.
What’s your favourite product from your lineup?
It’s really hard to say! It’s kind of like choosing your favourite child. Most days I drink Ginga’ Kick in the afternoon as a satiating and tasty snack. It gives me a nice, light and healthy energy without the jitters since there’s no caffeine.
What do you like to do when you’re not working?
Hiking with my son. We’re currently working our way across the Bruce Trail. We started in Niagara Falls and keep chipping away each year. We’re hoping to get to Tobermory before he’s out of high school.
What’s your favourite food?
I’ve got a thing for chicken shawarma salads with extra tahini. I just feel so amazing after I eat it. That’s the main reason I really crave it. I also love the power bowl at Copper Branch and the jerk bowl at Scotty Bon’s Grill.
welcome to uncommon roads to success
You
THE SPECTRE OF TARIFFS
WiTh The looming threat of U.S. tariffs on Canadian goods, Canada’s food sector is bracing for impact, while advocating for long-term solutions to strengthen the industry.
Prior to his inauguration, U.S. President Donald Trump had signalled plans to impose a 25% tariff on Canadian imports on his first day in office, Jan. 20. While that didn’t materialize, he suggested Feb. 1 as the new target date.
Gary Sands, senior vice-president, public policy & advocacy at the Canadian Federation of Independent Grocers wasn’t surprised Trump held off on day one, noting growing concerns from Canada were starting to be heard. “However, if there’s a single point we can all agree on, it’s that we should hope for the best and continue to prepare for the worst.”
A U.S. tariff, coupled with retaliatory tariffs being proposed by Ottawa and supported by provinces such as British Columbia and Ontario, would have a significant and immediate impact on the agri-food sector, says Sands. “It’s going to be very difficult.”
If tariffs are introduced, Sands says it will add to the pain already felt by retailers and consumers. “The immediate impact is that we’re going to start to see price increases at retail and the concerns consumers have around affordability are going to become even more heightened.”
On the manufacturing side, many companies in Canada rely on the United States for significant volume—and they’re going
to be hurt, says Michael Graydon, CEO of Food Health & Consumer Products of Canada. Medium-sized companies depend on the United States as part of their growth strategies, especially given challenges to growth in Canada, such as the consolidation of the grocery retail sector and the industry overall being flat.
With retaliatory measures by the Canadian government still in question, Graydon notes Canadian manufacturers also rely on U.S. imports for ingredients and finished goods. There will be an inflationary impact if Canada imposes tariffs on food items, as well as potential issues around availability if U.S. companies decide to stop shipping their goods here, he explains. “So, a real, significant consumer impact is going to emerge … if we’re not careful.”
Rather than getting caught up in a tit-for-tat tariff war, the agri-food sector wants to collaborate with the government to strengthen the industry within Canada. These discussions could include opportunities for economic diversification, enhanced trade in other regions such as the Indo-Pacific, and other strategies to mitigate the disruptions and costs associated with tariffs.
For manufacturers, Graydon says, “There should be attention paid to seizing the opportunity to ensure that our manufacturing sector and our economy is much more resilient and self-efficient ... We have, over time, allowed ourselves to become almost exclusively reliant on the United States ... And it’s now starting to haunt us.”—Rebecca Harris
FOREIGN POLICY
WHAT IS YOUR STRATEGY FOR ATTRACTING AND RETAINING TALENT?
Bart Willmore
Vice-president of human resources
CALGARY CO-OP
“Calgary Co-op is taking a multi-pronged approach to attract and retain talent. Beyond the basics of making sure wages and incentive plans are attractive and competitive, we are actively searching for talent at job fairs—both virtually and in person—and making sure we are reaching out to new Canadians and underrepresented groups. We are also putting significant investment into leadership development and training to develop existing managers and their skillsets to create a talent pipeline for our organization.”
Gaétane Wagner
Chief human resources officer SAPUTO
“We attract and retain talent by fostering an inclusive workplace that prioritizes well-being, offers competitive compensation and encourages professional growth. We support work-life balance through flexible schedules, hybrid work options, where possible, and paid time off. We also provide opportunities for our teams to engage with their local communities through our Volunteer Time Off program, giving employees a paid day to support a cause close to their hearts. This ensures our employees feel valued and motivated, helping us build a talented and dedicated workforce.”
Shauna Wilkinson Vice-president, people and culture
FEDERATED CO-OPERATIVES LIMITED
“At Federated Co-operatives Limited, and across the Co-operative Retailing System, we value our people and remain focused on a positive employee experience. This investment leads to attracting and retaining talent, improving productivity, and enhancing our brand reputation. Our employee promise is: ‘You’re at home here. At Co-op, you will find success, community and purpose.’ This promise is at the core of our recruitment and retention strategy and guides an employee’s experience throughout a rewarding career at Co-op.”
Megan Martinelli Chief people officer FLASHFOOD
“At Flashfood, we focus on mission alignment and hiring individuals passionate about our goal: feeding families, not landfills. This connection drives a highperforming team, ready to scale and grow with us. Our leadership prioritizes trust, transparency and open communication, encouraging feedback and celebrating accomplishments across the organization. We’re also intentional about developing future leaders by offering personal and professional growth opportunities, ensuring our team feels valued, supported and empowered to succeed.”
Palle Knudsen
Senior director of retail operations
GEORGIA MAIN FOOD GROUP
“Our strategy prioritizes retention first with a focus on culture, growth from within, monitoring and enhancing engagement. We inspire a shared vision [by] establishing trust, listening to concerns, and looking for win-win solutions. Of course, competitive pay and benefits play an important role. In attracting talent, we feel culture and brand can do a lot of heavy lifting. Selecting candidates that fit our culture and have a desire to develop their skills is critical to our success.”
The clash between health and indulgence
Consumers are seeking food and beverage products that marry wellness and decadence
Canadians, particularly generation Zs and millennials, are embracing a new era of indulgence, driven by a quest for nostalgia and joy
forgeT neW year’s resolutions—the better-for-you boom is gaining momentum year-round. The media is ablaze with health trends, and we’re on a relentless pursuit of longevity, weight management and holistic health. Is there any substance to this wellness craze, or is it another fad?
THE RISE OF THE HEALTH-CONSCIOUS CONSUMER
There is undeniable evidence that Canadians are taking greater interest in their health and consumption habits. According to our Ipsos Global Trends , 82% of Canadians agree eating right is the most important thing to maintaining good health. However, the trends are multi-layered. We’ve noticed complexity often comes from the clash of multiple factors being true. Contrasted with a rising focus on health is our growing desire for pleasure-driven eating, which is no doubt linked to managing the socioeconomic pressures faced by Canadians in recent years.
In our Ipsos 2025 CHATS Trends report, we explore the notion of “two things can be true,” which unveils multi-level opportunities for brands and retailers alike. Though Canadians straddle the line between health and pleasure-driven eating, they’re headed towards reigning in their intake.
Our core needs remain relatively in check as comfort, tasty indulgence and convenience still drive the bulk of our consumption choices. Since the pandemic, though, we see notable increases across several health-related drivers. There’s double-digit growth in seeking food and drink with fewer/simpler ingredients (+18%), premium/quality ingredients (+13%) and pure/natural, made with real ingredients (+4%). This shift isn’t a fleeting trend—it’s a sustained movement with long-term implications.
EMOTIONAL WELL-BEING TAKES CENTRE STAGE
The conversation around modern health priorities is a holistic pursuit, extending beyond physical health. Collectively, the growth of mental health related drivers outpaces physical, functional ones (+1.7 versus +1.3 points versus 2020). Nutritional and metabolic benefits influence 45% of food and beverage choices, and the desire for a mood boost has taken centre stage. Weight control remains another key driver, among other desired benefits. However, it’s important to note the nuanced interplay between these factors, as foods and beverages satisfy unique metabolic drivers. The art lies in finding the balance between satisfying the body’s physical requirements and the mind’s emotional needs.
THE GLP-1 REVOLUTION
We’re also witnessing the mainstream emergence of glucagon-like peptide-1 (GLP-1) receptor agonists such as Ozempic and Trulicity. While less than 10% of Canadians report currently taking these medications, there are potential implications for indulgence categories. Despite the absence of an official “GLP-1 diet,” there are now evidence-based recommendations emphasizing whole foods, whole grains, lean proteins and low-fat dairy and dairy alternatives. Brands and retailers can cater to this growing consumer segment by embracing the opportunities.
FUNCTIONAL INDULGENCE
Canadians, particularly generation Zs and millennials, are embracing a new era of indulgence, driven by a quest for nostalgia and joy. This trend manifests in a craving for foods such as snack/lunch kits, frozen snacks, nachos, candy and doughnuts, especially among millennial parents. However, influenced by health and wellness trends, consumers are seeking foods that not only tantalize the taste buds, but also offer some nutritional value. Functional snacks have experienced double-digit growth since the pandemic period and are driven primarily by mood boost, weight control and gut health. This creates a complex relationship in which consumers desire both healthy and indulgent options.
RETAIL STRATEGIES
The future of food is about balance and offering consumers the opportunity to enjoy delicious and satisfying foods that also support their overall well-being. By understanding these evolving trends and adapting strategies accordingly, retailers can effectively cater to the modern consumer and thrive in this dynamic market. CG
Jenny Thompson is a director with Ipsos Canada supporting the FIVE service, a daily diary tracking what individuals ate and drank yesterday across all categories, brands, occasions and venues. Jenny.Thompson@ipsos.com
THE LEADERS
LESSONS FROM THE TOP
SIMON LAROCHE, PRESIDENT, KRAFT HEINZ CANADA
“I’M A BIG BELIEVER IN A GROWTH MINDSET AND ACKNOWLEDGING THAT WE DON’T KNOW EVERYTHING AND WE NEED TO LEARN EVERY DAY AND GET BETTER EVERY DAY” – SIMON LAROCHE
What is your leadership story?
First, I studied finance [at HEC Montréal] because I wanted to be an investment banker. But, when I graduated, before starting my career in finance, I decided to take a summer job in Quebec City at Labatt Breweries as a merchandiser. I ended up staying for 15 years! (Laughs.) At the time, there was a merger between Interbrew (then owner of Labatt) and AmBev. So, there was a new leadership team coming to Labatt in Canada, with a new culture that I thought was very interesting. They offered me a new job and I decided to give it a go, and that’s how I got into CPG. And I really loved it. So, I started as a merchandiser, as I said, but I did pretty much every sales role all the way to being in charge of Canada here in Toronto. That was a 15-year journey. Then, I was invited to join Kraft Heinz. I loved Labatt, but it was time for me to do something else and to learn a new industry. I moved to Australia with Kraft Heinz—with my then girlfriend, now wife—where I was in charge of the [business] in Australia. After a bit of restructuring, I ended up running Australia, New Zealand, Japan and Korea. We had amazing years there. Now, I’ve been back in Canada for a year and a half in this role.
What is your leadership philosophy?
By Shellee Fitzgerald • Photography Tobi Asmoucha
Leaders should be judged by the strengths of their teams; I strongly believe that. I think the role of a leader is to build a strong team and to set the vision with them. And I believe in empowering team members to be the best version of themselves and to do their best work. Another thing is that as a leader, I always say I can do serious things, but I don’t take myself seriously. Meaning, I believe it’s important that people can be themselves—that we can be humans, we can be vulnerable and we can laugh. That’s how I see leaders today being
successful versus the old image of a boss that knows it all and is always serious.
What things do you prioritize when it comes to company culture?
The No. 1 thing, and something I’ve believed my entire career, is ownership. Everybody in the company should feel they’re an owner in the business; we talk about that a lot at Kraft Heinz.
I’m also a big believer in a growth mindset and acknowledging that we don’t know everything and we need to learn every day and get better every day. One of our corporate values is ‘dare to do better every day.’ And the last one, for me, is about consumer obsession. It starts and ends there. Consumers vote every day with their wallets and we need to earn their trust and loyalty. So, I’m big on having the consumer represented at every meeting in the company.
What would you say is the biggest challenge facing leaders today?
Listen, it’s acknowledging that you need to adapt continuously to the new pace of change in the world—whether it’s geopolitics, whether it’s technology or whether it’s politics. It’s accepting the fast pace of things and making sure everybody’s in the mindset that what we know today will not necessarily be true tomorrow and we will have to course correct and change. It’s great to have a direction, but you have to accept that you’re going to need to pivot and change your mind and change your strategies down the road.
How do you continue to learn and develop as a leader?
I’m a big reader, I love to read about everything. I also have a personal coach that I can bounce ideas off of; she’s neutral and doesn’t have the bias that maybe my friends or colleagues would have. I like that a lot. But, I would say the most valuable thing I do is spend time with customers, peers and leaders in the industry, learning from them because we are all facing the same kind of challenges.
What qualities do you look for in up-andcoming leaders?
There are two things I really value in younger leaders coming up—it’s a good mix of being ambitious, but also being humble. It’s acknowledging you don’t know everything, but also that you're not afraid of dreaming big, trying things
and taking risks. And ownership, as I said, that people care as an owner would. That’s very important for us here.
As a leader, what is the biggest risk you’ve taken? What did you learn from it?
Leaving Labatt and joining a new company, Kraft Heinz, and moving to the other side of the planet was a big risk. I didn’t know what I was getting into; the business was in a more difficult place than I thought. I'm very proud of what we were able to do with the team there, but it was a big risk. And listen, it was difficult at the beginning—and every time you get out of your comfort zone it's difficult—but that’s also where you learn the most. It was the best experience and decision of my career, to go learn a new industry in a new country with a new company. I would encourage everybody to get out of their comfort zone, go and do something else, go and learn something else. Looking back, I really would not do it any differently.
What’s the best advice you’ve received?
One that’s stuck with me is that “in order to keep your job you have to be willing to lose your job.” There’s a degree of risk that as leaders we all have to take and it’s about owning that risk. And I really like that. It’s really about a mindset of taking big swings at things, changing things, pushing the status quo—that’s the only way I know to grow. And I remind myself of this when I might have butterflies ahead of a big strategic opportunity.
How do you approach making difficult decisions?
I keep telling my team, business is a marathon not a sprint—so it’s about keeping the long-term in mind when making the right short-term decision. I think that recipe will always work. And, of course, being able to adapt to situations. Sometimes you have to make many quick decisions every day; sometimes it is better to take a step back and develop a proper strategy.
How will you define success as a leader when you look back?
Obviously, value creation and financials at the end of the day, but for me it’s also the legacy that I will leave behind—it’s leaving the place in a better place than I found it. But, what really makes me tick in life is the positive impact I can have on people. What really brings me
joy is to see someone who maybe started as a merchandiser who is now a vicepresident of a department. That is really special for me. It’s also about innovation and just standing in the line of a grocery store, watching people buy something we launched that is better-for-you or that is a solution for their kids that they didn’t have before. Seeing that kind of impact is really what defines success for me—the true and tangible impact on people. CG
This interview has been edited for length and clarity.
FAST FOUR
1 YOUR FIRST JOB?
I was a ski coach at Mont Grand-Fonds, near my hometown of La Malbaie in Quebec.
2 WHAT BUZZWORDS DO YOU WISH WOULD GO AWAY?
“Circle back” is one that I don’t like to hear (laughs). It means nothing, it doesn’t work for me. That and “we’ll take it offline.”
3 YOUR BIGGEST INDULGENCE?
I developed a passion for Pinot Noirs from the Yarra Valley, when I was in Australia. When I want to treat myself on a Friday night after a big week, I open one of those.
4
IF YOU WEREN’T IN THE CPG INDUSTRY, YOU’D BE … In aviation. I have a fascination for it, for airliners like A380s and the logistics of getting this huge piece of metal in the air—there’s just something about aviation that fascinates me.
u k w h ’ u w m b 3
m 1 w h m w g m
h ’ u x 59 m b ub b w m wh k k h h g h w h m ’ mu u u m h g flu u
h h Ph ? Th u w wh h m
For authentic Chinese recipes containing Canadian beef, please scan here
A FRESH FOCUS
At Farm Boy, it's not just about fresh produce—it's about fresh food across the board
By Kristin Laird • Photograph by Christie Vuong
THE HOLIDAYS ARE approaching and warm fairy lights dance against the harsh winter's wind, twinkling on the miniature trees outside the store. But, the bone-cutting chill hasn’t dampened the spirits of the crowd gathered outside, eagerly waiting to walk the aisles of Toronto's newest Farm Boy. It’s a bit of a frenzy, really.
Grocery store openings typically draw a crowd. There’s something different about this Farm Boy, though. At approximately 40,000 square feet, the store nestled within a strip mall in the upscale Leaside neighbourhood lists approximately 800 products that aren’t found at other Farm Boy locations, including paper products, an area dedicated to international food and beverage items, as well as household cleaners, pet food and alcohol.
“We listened to our customers over the last several years,” says Farm Boy president and general manager Shawn Linton. “They kept asking, ‘Why can’t we have more grocery [items] in the stores?’ And teaming up with Empire allowed us to do it very easily because this is what they do, and they do it extremely well. And so ... let’s do it right. There’s no reason not to.”
Product selection isn’t the only thing that’s grown since Farm Boy’s acquisition by Empire Company Limited in 2018. The chain has expanded from 26 to 51 stores across the province, ranging from 12,000 square feet to more than 40,000 square feet in size. (The Leaside location is store No. 51.) Linton says Empire, the parent company of Sobeys and Longo’s, brings a wealth of expertise that has positively impacted various aspects of Farm Boy’s operations.
Linton, who has been with Farm Boy since 1996, says before the acquisition, the retailer had to navigate its own way through challenging times. This is no longer the case. “We’re always getting advice [from Empire] on how to improve our [customer] experience, our business," he says. "They helped us with warehouses, distribution, supply chain, buying, IT, partner relationships and then real estate is the big piece as well.”
Previously home to a Sobeys store, the Leaside location was completely gutted—except for the wall-to-wall coolers in the frozen food section—and only took six months to renovate, which is a fraction of the 12 to 18 months it typically takes for these types of projects.
The Leaside store opened in mid-December under the new brand platform, “A Farm Boy Fresh Twist.” More than a campaign tagline, Linton says it’s a master brand strategy designed to encapsulate what it means to “lead in fresh” and to help bring a fresh market experience to life.
“A Farm Boy Fresh Twist is what we’ve named it and we plan to roll that out across all our stores,” says Linton. “It’s a way to articulate to our teammates and to our customers and to everybody that comes into our stores what we do and what we stand for—our integrity and what we’re all about.”
The strategy will roll out across Farm Boy’s store network, he says, and smaller stores will start carrying “more relevant products.”
The selection at the Leaside store certainly lives up to the new brand ethos, realized in the assortment of freshly prepared grab-and-go items including shrimp, chicken and cauliflower bowls, soups and salads.
A Chef’s Market counter offers wraps, sandwiches and ready-to-heat items including glazed salmon, grilled chicken, pot pies and a selection of sides. Most of the items are prepared in-store or at Farm Boy’s commissary, though there are a few exceptions produced by outside vendors in Ontario, many of whom have established long-term relationships with the grocer.
“We’re always trying to be as fresh as possible,” says Linton of Farm Boy's fresh-made products. “We’re always trying to have that great customer experience. We use every resource we can to achieve that.”
To help deliver on its commitment to freshness, in 2004, Farm Boy developed a proprietary inventory management system after being unable to find a thirdparty option that met its needs. The system handles all Farm Boy’s fresh products—from produce to meat, cheese and commissary prepared options.
“It’s really the end-to-end solution that allows us to keep products as local as possible, with minimal product handling to keep freshness and quality,” explains Linton, who was involved in the system’s design. “Combined with precise data and tracking technology and our same-day fleet delivery systems, it’s what allows us to deliver on our promise to our customers of fresh and quality products every day.”
Farm Boy was founded in 1981 by Jean-Louis Bellemare and Colette Bellemare in Cornwall, Ont., with a concept to combine the feel of a farmers market with the convenience of a traditional grocery store, emphasizing fresh, local and organic foods. (Even Farm Boy’s official mascot, Lulu the cow, and other farmyard characters reflect the company’s agricultural roots.)
“Fresh is a fixed mindset for us,” says Linton. “It’s always going to be dominant in our stores and that’s where we always want to lead and [where] we can lead.”
Farm Boy's Leaside location offers an expanded assortment of grocery products, including a section dedicated to international food and beverage items
Dedication to fresh truly comes to life in the brightly lit produce department, just inside the main doors. Fresh berries, juicy green grapes, organic leafy lettuces and bunches of bananas are arranged in neat, inviting displays. A lot of what is sold in the produce department is sourced locally, when and wherever possible.
“There’s a lot to discover [in the Leaside store] and it changes all the time—from beautiful cantaloupe, beautiful cauliflower to beautiful broccoli, to fantastic cherries to the grapes that we have. It’s part of the market experience,” says Linton.
The emphasis on local extends beyond the produce department. Farm Boy’s prepared foods and many of its bakery items are made using locally sourced ingredients. The grocer also offers a wide range of local dairy products as well as locally sourced meats and seafood.
Partnerships with local vendors are central to Farm Boy’s private-label product development as well, which is a hallmark of the retailer. Today, there are more than 2,000 store-brand products, a number that has grown from 650 since 2018. More than 50% of its private-label suppliers are based in Ontario, contributing significantly to the success of Farm Boy’s private-label brand, says Linton.
“We keep our products fresh; we don’t have warehouses chock-full of inventory, they’re delivered fresh to the store every day,” he says. “Local plays a part in [the private-label program's] success. The other part is we have a good culinary team and we listen to our customers very closely.”
The team is always innovating and moves quickly to capitalize on culinary trends or emerging opportunities—in some cases going from idea to shelf in as little as nine weeks, according to Farm Boy.
Vegan and gluten-free items as well as non-alcoholic beverages have proven popular among Farm Boy customers, for instance. And in terms of white space opportunities, the retailer remains focused on products that satisfy dietary or lifestyle needs, says Linton.
“There’s so many ideas,” he says. “We look at that and we say, OK, is there a fit? Is the vendor local? Is [the product] made in small batches? What’s the unique selling proposition of our product? How does it help our customer? Is it relevant for our customer? And we’re totally open-minded about that.”
If there’s a challenge in maintaining such a large private-label portfolio, it’s giving suppliers the time and attention they deserve, says Linton. “Vendor relationships are very important for us. It’s like growing a family,” he says. “As your family gets bigger, you have less time to go around. So, that’s the challenge. It’s not easy to give the vendors the time and energy they deserve.”
Just as important is giving customers access to Farm Boy products when and where they need them. Private-label products are available to shoppers in Ontario through Voilà, Empire’s online home delivery service. This allows Farm Boy to reach customers who may not live near or are unable to shop at a physical store,
says Linton. (Farm Boy products can also be purchased online for delivery via Uber and Instacart.)
“It’s been very, very good,” says Linton of its presence on Voilà. “Anytime we can help our customers that can’t come to the store, we’re totally in favour of that. We are really, really pleased with how that’s working out and our customer comments are reflecting that as well.”
From product launches to store openings, customer feedback is at the heart of so much of what Farm Boy does. Though Empire’s experience in retail and real estate provides Farm Boy with a competitive advantage when it comes to acquiring space, Linton insists consumer input plays a crucial role in the chain’s growth and pinpointing opportunities for expansion.
“[Empire has] a great real estate team. They’re looking at all the sites that are possible and they help us with those decisions,” he says, when asked about future growth. “But, we follow what our customers are asking for and we listen to our customers very closely and we try to achieve what they’re looking for.”
Linton, who has been with Farm Boy for nearly three decades, has had a front-row seat to the chain’s impressive growth and, in the early days of his career with the company, was tasked with moving the Farm Boy office from Cornwall, Ont. to Ottawa and the distribution centre from Montreal to Ottawa. He was also responsible for store layouts.
“I’m good at process, I’m good at project management … So, I started working on the stores, maintenance in the stores, bringing them up in terms of renovations, that kind of stuff,” he says.
(Linton started with Farm Boy in engineering, taking on the IT director responsibility early on as well, before moving into central operations and eventually supply chain. He was appointed general manager and president in July 2022.)
“When I first joined Farm Boy, we talked about a fun, fresh experience for all. We tried to stay true to that. That’s what I like to think of as a unique selling proposition,” says Linton. “I believe our stores are relevant for our customers and what we have in our stores is relevant for our customers. You should feel inspired; you should leave with a smile and you should feel good about your time spent in Farm Boy.”
When looking to the future, Linton can’t help but reflect on the retailer’s past. From humble beginnings to becoming one of the province’s fastest-growing fresh food retailers, Farm Boy has evolved to include in-store dining, grab-and-go options, new departments and so much more. Farm Boy will continue to grow and evolve, but the key tenets that shape the brand’s foundation will remain unchanged.
“We’re always looking to improve the concept, but we’ll never change our DNA about how we treat our teammates, how we develop our teammates, how we treat our vendors, how we develop those vendors and how we treat that customer experience— it’s paramount to everything we do in our stores.” CG
A Poultry Powerhouse that Punches Above its Weight
adp direct poultry is a one-stop shop that has the technology to deliver diverse in-demand products with customer-centric efficiency and flexibility
Driven by an entrepreneurial spirit and supported by the latest technology, ADP Direct Poultry group is a onestop poultry solution for retailers. With cutting-edge facilities, a relentless focus on food safety, and the agility to pivot quickly to meet its customers’ specific needs, it’s rewriting the rules of efficiency and responsiveness.
“We’re very much selling what customers are looking for and working with them to meet their needs,” says CEO and owner Augo Pinho, who started his career in the chicken industry at age 18, delivering poultry products to independent supermarkets in Toronto.
“We’re not going to push our branded products to a retailer, for example, if we believe that packing under their brand is the right thing for them. We’re focused on
helping customers identify their gaps and then delivering an affordable solution.”
Operating several facilities in the Greater Toronto Area—including a new, state-ofthe-art plant specializing in breaded and fully cooked products—this family-owned, vertically integrated company is redefining what it means to deliver quality and innovation in an industry that is growing.
“Compared to other proteins, the market growth in chicken is extremely strong,” says Pinho.
Indeed, per capita consumption of poultry by Canadian consumers was 35.8 kilograms in 2021, up from 33.4 kilograms in 2017, and it is projected to increase to 37.0 kilograms by 2026, according to Agriculture Canada. During that same time, processed poultry meat grew by a CAGR of 4.4%.
“Consumers want more affordable, easy-to-prepare or ready-made options, like breaded products, but there’s been a shortfall in facilities capable of meeting those needs. We’ve invested in the right technologies and collaborate with our partners to meet those needs and stay on top of trends,” Pinho says.
Retail, pRivate label, foodseRvice
ADP Direct Poultry group of companies has grown to include Direct Poultry, Premium Foods, Simple Path Farms, Canadian Premium Foods and Atlantic Canada’s Bonté Foods, a leading processor of deli meats and Costa produce, a processor of peeled potato items. While about 70% of the business is retail, the company also serves foodservice and private label.
Today, ADP operates six federally inspected production facilities, producing a highly diverse and comprehensive product portfolio of raw and cooked products including fresh whole chickens, parts, breaded frozen cutlets, wings, strips and nuggets, marinated products, as well as Halal and organic products, and non-poultry products.
The newest, brightest, and most automated of all the facilities was opened in August 2024 in Brampton, Ont., and fills the one gap that remained, which was batter/breading capability, to address the fully cooked, in-demand products customers want.
Claudio Neves, VP of Operations and Augo Pinho, CEO & owner
ADP has invested in technically advanced manufacturing equipment from manufacturers such as Marel, JBT, Reiser, and Eagle, for flexible, efficient processing. The Brampton plant is the first further processing chicken facility in North America to include the integrated Innova production and quality assurance software system. Another first, present in most of its facilities, is ozone technology, which kills potential pathogens.
“We’re a medium-sized company but with the technology we’ve got we punch way above our weight,” says Claudio Neves, VP of Operations. “The Innova system is brand-new technology and we’re first the poultry processing facility in North America to have it—it puts us at the top when it comes to food safety.”
Real-time tRaceability
The software system provides full traceability and tracks items throughout processing and packaging, to maintain quality control and precision for temperatures, dew points and more, and to send real-time prompts or alerts.
“It’s an extra layer of food safety. It encompasses our QA and QC checks and CCPs and makes them paperless and in real time. It gives full visibility throughout the day and full control on different parameters across the process,” says Neves.
Pinho emphasizes that the technologies not only bring food safety to a new level, they also allow the company to do what it does best: solve customer problems quickly and serve them with speed, efficiencies and flexibility.
“We can react very, very quickly for customers,” says John Febrey, Director of Sales & Marketing. “We’re the company customers call when they get into trouble with supply. We get calls, ‘Hey, can you help us out of the jam?’ That happens every single day.”
Adds Pinho: “We’ve built the company on what we call the 9-1-1 business. We can do quick changes to get product on the same day, or within hours, into local stores or warehouses. That is a massive differentiator for us.”
Looking ahead to the future, ADP’s vision is to continue to seek out opportunities to meet the changing needs of customers and consumers. With its trademark growth focus, Pinho says, the team plans to continue to diversify its value-added products and get into home-delivered meal solutions.
“We have some unique products coming out in the near future,” says Pinho. “But right now, we are eager and ready to collaborate with customers.”
And, as always, ready for those 9-1-1 calls.
Emerging technologies are transforming the poultry industry, tackling challenges such as food safety, waste, traceability and transparency. Here are just some of those technologies ADP Direct Poultry uses in their different facilities.
Marel Machinery and software:
Offers latest capabilities in terms of yield, throughput, quality, capacity and labour efficiency with a range of machines designed for specific tasks, like cutting, weighing, or packaging; Integrated digital systems optimize intelligent production planning, predictive maintenance, waste reduction, and real-time decision-making.
innova food safety systeM:
Collects data from every stage of the processing line, providing real-time, end-to-end traceability of products, recording data from raw materials to final packaged goods; It analyzes the data to identify inefficiencies, bottlenecks or deviations, and helps ensure food safety by allowing quick identification of potential issues.
eagle X-ray bone detection:
Capable of detecting bone fragments as tiny as one millimetre in size in boneless meat.
reiser variovac optiMus therMoforMer:
Packs 10 trays per minute at a constant temperature of 400°C to make clean, consistent seals and extend product shelf life to 15 to 16 days, to ensure freshness and reduce food waste.
radiofrequency defrosting:
Can take a frozen 20 kg block of raw material from -18 degrees C to -3 degrees C in under 30 minutes without affecting the quality of the product for increased efficiencies.
ozone technology:
Uses ozone gas (O₃) as a disinfectant in the air and in water to kill pathogens, maintain hygiene, and improve environmental conditions in poultry processing and storage for enhanced food safety.
SHOPPERS ON SHOPPING
Our exclusive research looks at how Canadians view the grocery shopping experience
By Shellee Fitzgerald Illustrations by Lucila Perini
What are the key factors causing shoppers in Canada to choose one grocery store over another? How do they define value? How happy are they with loyalty programs? When it comes to reputation, what things cause them to think positively and negatively about grocers? To get the answers to these questions, and many more, we surveyed grocery shoppers across the country to bring you our fifth-annual 2025 GroceryIQ Study: Taking Stock of Grocery Shopper Attitudes and Behaviours. Read on to learn some key findings from the study.
THE PRICE MUST BE RIGHT
It’s no secret that Canadians continue to travel a rough road. Facing economic uncertainty and a persistently high cost of living, many in this country are feeling under pressure and this is impacting their grocery shopping behaviours. According to our 2025 GroceryIQ study, price is, by far, the No. 1 factor for 81% of shoppers when choosing where to get their groceries. Sales/promotions are also a top consideration for 69% of those surveyed, whereas the importance of product quality slipped to 72% (down 4 percentage points from last year), while freshness dropped to 68% (from 74%) as shoppers focus on stretching their dollars. Notably, this year’s survey showed a 7% jump in the number of shoppers (to 40%) who said store organization is an important factor when deciding where to shop.
A sign of the economic times, discount grocery stores are neck-and-neck with traditional chains when it comes to shopper traffic, with 53% of those surveyed indicating they shop at both types of stores once a week or more. Looking through a regional lens, 69% of Quebec and 64% of Ontario shoppers said they visit a discount grocery shop at least once a week. Other top channels for procuring groceries are superstores/mass merchandisers (44%) and dollar stores (26%).
How loyal are shoppers to a particular store? It turns out, Canadians are a pretty loyal bunch with 72% of shoppers preferring to shop at the same grocery store each time, while just 33% report regularly shopping at four or more stores. It’s worth noting, however, that millennials are shopping around more than before with 71% (down from 82% last year) indicating they visit the same store each time, making them a more challenging target for grocers in terms of loyalty.
WHERE CANADIANS SHOP
TOP SHOPPER PRIORITIES WHEN CHOOSING WHERE TO SHOP
HOW STORES STACK UP
So, how do shoppers feel their store measures up? The good news is, shoppers had a favourable view of things such as cleanliness, variety of products offered and organization of the store. Shoppers also reported a more positive experience with their store’s loyalty/rewards programs with 54% of shoppers rating them as excellent/ very good, up from 49% last year.
They were less impressed, however, with the quality of the prepared foods offered at their grocery store, with just 30% (down from 35%) indicating they thought they were good, while 18% (up from 14%) thought these foods were fair/ poor, suggesting grocers might want to up their game in this important category.
When asked what areas of their grocery store most needed to improve, 27% of shoppers pointed to the checkout experience. Long lines, insufficient cashiers and issues with self-checkout machines were all indicated as pain points. Product availability was selected as an area needing improvement by 23% of survey respondents, with shoppers peeved by inconsistent inventory, sale items not being available and out-of-stocks. In fact, our survey found shoppers have low tolerance for stock issues, with 73% indicating a likelihood to switch stores if an item is unavailable at their usual store.
As the concept of value continues to evolve, we wanted to understand how shoppers define it. Turns out, it’s not all about price. For nearly six in 10 shoppers (58%), value means a fair balance between the quality received for the price they pay. Just 20% of shoppers define value in terms of product attributes (quality, freshness, quantity), while 19% think of it as discounts and deals and competitive pricing.
It’s no secret that grocery retailers, hailed as heroes during the pandemic, have had to grapple with some hits to their reputation in the post-COVID era. When we asked shoppers how they rate the reputation of their primary grocery store, overall, 55% said their store had a good reputation, while 31% rated their store as having an excellent reputation, 12% said neutral and 2% said their store had a poor reputation. Price and value, product quality and selection, customer service and store experience were the top factors shoppers said positively impacted a grocer’s reputation. Meanwhile, pricing issues (gouging, inflation concerns),
HOW GROCERY STORES ARE PERFORMING
While half of shoppers report a positive experience with loyatly programs, employee friendliness and quality of prepared foods are slipping
Performance
Organization of the store
Friendliness of employees
Helpfulness of
Speed
Loyalty/rewards program Price of products
ROOM FOR IMPROVEMENT
Long checkout lines, out-of-stocks and high prices irk shoppers Excellent/very good Good Fair/poor
5%
Parking and accessibility
6%
Quality and freshness
“Sometimes I buy products that are not good! They need more checks on freshness and quality, which in the past year has gone down.”
9%
Customer service
3% Loyalty programs & promotions
4% Specialty products
Areas where grocers have room to improve
8%
Store organization & cleanliness
“Availability of staff. They are nowhere to be seen.”
“Keeping aisles clean and not cluttered.”
Verbatims captured from survey respondents
27%
Checkout experience “Train cashiers to match prices and accept coupons.”
23%
Product availability “Restocking of shelves must be faster!”
15%
Pricing
“Making sure items in the flyer are well-stocked.”
WILLINGNESS TO SWITCH STORES
Most shoppers will switch stores for a missing item, showing no tolerance for out-of-stocks
customer service problems (understaffing), product availability and corporate practices (ethical concerns, price-fixing scandals) were factors shoppers said negatively impact reputation.
A LIFT FOR LOYALTY PROGRAMS
Grocers have stepped up their attempts to lock in the loyalty of shoppers by delivering savings, personalized offers and other perks at a time when Canadians are struggling to cope with the high cost of living. The efforts appear to be paying off, according to our 2025 GroceryIQ study. Shoppers’ satisfaction with loyalty programs is on the rise, with 59% (up from 54% last year) of those surveyed indicating they are extremely/very satisfied with their grocery store’s program and 33% are somewhat satisfied. Why are they more satisfied with loyalty programs this year? In verbatims captured, shoppers said their “loyalty reward program is practical and useful,” and they liked receiving “cash back at the end of the year.”
For those shoppers not wooed by grocery loyalty programs, the top reasons given were: “requires too many purchases to earn rewards/points” (30%), “the rewards/points/discounts are not valuable to me” (24%), and “requires me to sign up for a credit card” (23%, up 12 percentage points from last year).
IN-STORE AND ONLINE
How Canadians procure groceries is unchanged in the past year, with most shoppers (98%) indicating they visited a physical store in the past month. Breaking down online shopping, 17% of those surveyed used an online contactless delivery service in the past month, while 19% (up from 18%) opted for in-person delivery, and curbside pickup and in-store pickup were both used by 14% of shoppers. While satisfaction with online shopping improved, with 51% (up from 45%) of survey respondents saying they were completely/very satisfied with the experience, pain points remain. Among those not completely satisfied with online shopping, 27% (up from 20%) said they were unhappy with the quality of products and 15% (compared to 9% a year ago) complained the store didn’t offer a delivery service. On a bright note, fewer shoppers were unhappy with product substitutions, 24% versus 32% a year ago.
When asked how they planned to shop
LESSONS IN LOYALTY
Rewards points, exclusive discounts and personalized offers among the most valued loyalty program features
event tickets, etc.)
IN-STORE AND ONLINE SHOPPING
Anticipated use of purchase methods one year from now versus today
A preference for in-person shopping is not expected to change in the upcoming year, making it important for grocers to create an optimal in-store experience Shopping in-store
Buy online for contactless delivery
Buy online for in-store pickup
online for
Fees are too expensive
Product(s) I needed were out-of-stock
Unhappy with the quality of products
Unhappy with product substitutions
Order was picked incorrectly
Process is too complicated
Store does not offer delivery
Wait times for curbside pickup are too long
The shopping website is not appealing (hard to navigate, uninspiring)
Pickup/delivery window was too far out
Unhappy with the customer service provided
Store does not offer curbside pickup
Expand
in the year ahead, our survey found the preference for shopping in-person is not expected to change. With 86% of all shopping “trips” currently happening at the store, the pressure is on for grocers to deliver an optimal in-store experience.
WHAT’S IN THE BASKET?
Grocery shoppers in Canada are not a spontaneous bunch. Our survey reveals a shift towards planned and deliberate shopping with 19% (up from 17% a year ago) saying they head to the grocery store with a list and don’t deviate from it, while 66% (up from 64%) have list in hand, but will make additional purchases in the aisles. A scant 2% of shoppers reported
THE GROCERY SHOP
visiting a store without a list, deciding what to purchase when in-aisle.
While fresh produce and dairy were purchased by more than 80% of shoppers (unchanged from last year), there was a notable decline in the number of shoppers purchasing cereal, confectionery and alcoholic beverages. In the non-edible categories, paper products remained the most purchased (among 57% of shoppers) and, notably, flowers and plants experienced a jump with 14% of shoppers (up from 10%) buying these items. Meanwhile, there were significant declines in the number of shoppers purchasing personal care products and beauty items. Our study also revealed shoppers are
Shopper research
continuing to employ several strategies to help cope with inflation. Nearly half (48%) of shoppers said they were buying discounted items, while 40% said they were making fewer impulse purchases, 30% said they were shopping more frequently at discount grocery stores and the same number reported adding more private-label items to their baskets.
Digging into private label a bit further, nearly half of shoppers surveyed said they always/often buy store-brand items, with 42% saying they do so sometimes. When asked why they purchase these items, the top reason, by far, was to save money (for 73% of shoppers). But, this year, notably, a growing number of shoppers (15% versus
11%) said it was because their preferred name brand was out-of-stock. Notably, fewer shoppers (14% versus 18% a year ago) said they thought the private-label item was better than the name brand.
We also asked shoppers to tell us what products or services they wish their grocery store offered. Thirty-four per cent of respondents said they’d like to see more enhanced product offerings at the store, including more fresh and prepared foods, specialty and international products, as well as more organic and local items. They also expressed a desire for more convenient services: 15% said they’d like to have more in-store amenities and grocery delivery and pickup options.
PREPARED FOODS
How hungry are grocery shoppers for prepared foods? Our survey suggests shoppers still have a healthy appetite for these convenient foods, with the majority (66%) purchasing prepared foods in the past month, consistent with last year. Among those shoppers who choose not to purchase prepared foods at the grocery store, the top reasons given are they are too expensive (47%) and they prefer not to purchase them from the store/prefer to cook at home (46%).
When purchasing prepared foods price/ value, quality, freshness, taste and portion size are the most important factors to shoppers. And the good news is, prepared food shoppers reported greater satisfaction with their purchases, with 60% of shoppers indicating they’re “completely/ very satisfied,” up from 53% last year. Our survey also revealed that grab-and-go refrigerated prepared foods are gaining popularity with 54% (up from 47% of shoppers a year ago) reporting purchasing these items in the past month, while 26% purchased made-to-order foods. Dinner remains the most popular daypart for prepared foods with 55% of shoppers making a purchase for this meal occasion, consistent with last year. Twenty-three per cent of shoppers made a lunch purchase with 4% and 3% buying prepared foods at breakfast and morning snack dayparts, respectively. Although these morning meal purchases edged up slightly compared to last year, there’s clearly an opportunity for grocers to boost efforts in this daypart and steal share from fast-food restaurants.
Shopper research
HUNGRY FOR PREPARED FOODS
Too expensive
Prefer not to purchase prepared foods at a grocery store/prefer to cook at home I didn’t plan to purchase prepared foods when I went to the store
Didn’t like selection
There weren’t healthy food choices
Wasn’t hungry when I was in the store
Didn’t look appetizing
Other
Baked goods baked in-store
Prepared cold sides
Prepared appetizers/snacks
Prepared hot sides
Prepared entree salads
Prepared platters
soups
Grab-and-go prepared foods are rising in popularity
Prepared foods purchased
Prepared foods preference
Shopper research
THE HEALTH-MINDED SHOPPER
THE HEALTHY SHOPPER
Good health and well-being are goals many Canadians are pursuing—the explosion of the health and wellness market is proof of that. So, it’s no surprise that 73% of shoppers in our survey said they agree with the statement “I am health-conscious,” the figure jumps to 80% among boomers. Grocers have been leaning in to the health and wellness trend, expanding their offerings and services in this key area. This strategy appears to be working as a growing number of shoppers 39% (up from 32%) indicated they were “extremely/very satisfied” with the selection of healthy and better-for-you products available at their grocery store, and another 52% were “somewhat satisfied.” Just 9% of shoppers were not happy with the selection of healthy goods available, down from 10% last year.
Product freshness and sugar content were the top concerns for health-conscious shoppers, consistent with last year. There were, however, some notable
SUSTAINABILITY
Importance of demonstrating a commitment to sustainability
food instead of throwing it out
shifts, with a growing number of shoppers (23% versus 19% a year ago) interested in all-natural foods, 15% concerned about artificial flavours (up from 11%) and 13% concerned about antibiotics in foods, up from 9% last year. We also asked shoppers what health-focused offerings they valued most at the grocery store and while 28% said in-store pharmacies, followed by healthy recipe cards at-shelf (valued by 21% of shoppers), for many shoppers these offerings are not critical.
The health of the planet is also an important consideration for shoppers. In fact, when asked how important it is for grocery stores to demonstrate a commitment to sustainability practices, an increasing number of shoppers (59%, up from 53% last year) said it was “really important” that grocers donate food rather than toss it out. In terms of ethical
37% of shoppers
said this was “really important,” with 40% indicating this was “somewhat” important to them. While most shoppers surveyed (61%) expressed some level of likelihood of switching to a grocery store that demonstrates a stronger commitment to sustainability, 47% (up from 41% a year ago) say they are unwilling to pay extra to shop at a more sustainable store. CG
Overview & Methodology
• Survey sample: 1,002 grocery shoppers
• Respondents were required to be age 18+, reside in Canada, shop at grocery stores at least once a month and are the primary or shared decision-maker for household grocery shopping
• Quotas were established to
BADGE OF HONOUR
THE VOTES ARE IN! A survey of 4,000 Canadian consumers conducted by Kantar determined the 43 winning products that will carry the 2025 Product of the Year Canada red seal. The program, which operates in more than 45 countries, recognizes and rewards manufacturers for quality and innovation.
“Winning this distinction is more than an accolade—it’s a launchpad that connects brands with savvy, value-driven shoppers,” says Mike Nolan, global CEO of Product of the Year Management. “As we’ve seen this year, it’s the products that embrace smart functionality, eco-conscious designs and innovative ingredients that truly resonate.”
From frozen meals and snacks crafted with the Canadian consumer in mind to brand collaborations and products that deliver on convenience, here’s a look at this year’s winners:
Baked Goods
Snack Factory Pretzel Crisps Milk
Chocolate Crunch
CAMPBELL COMPANY OF CANADA
Baked thin and dipped in milk chocolate, Snack Factory Pretzel Crisps Milk Chocolate Crunch are a sweet and salty snack that can be enjoyed on their own or dipped into ice cream or peanut butter.
Better-for-You Snacks
Canadian Rangeland
Bison Steak Bites
CANADIAN RANGELAND BISON
Made from 100% Canadian bison raised without added hormones or antibiotics, these soft, easy-to-chew bites are high in protein and essential micronutrients, making them a clean snacking option.
Better-for-You Beverage
Mio Energy & Mio Hydrate Powder Drink Mix
KRAFT HEINZ CANADA
Mio liquid beverage mix is now available in a single-serve powder: Mio Energy delivers 81 milligrams of caffeine per packet and Mio Hydrate contains 400 milligrams of potassium and 30 milligrams of sodium.
Bread & Bagels
Villaggio
Rustico Harvest
Multigrain
BIMBO CANADA
Made without artificial colours or flavours, this sliced bread is baked with a wholesome blend of hearty grains and offers a distinct, rich flavour.
Product of the Year
Candy/Confectionery Excel Refreshers
MARS CANADA
Excel Refreshers are a pillow-shaped soft chew gum that, for the first time, are available in fruit flavours: strawberry, blueberry and tropical.
Cereal
Kellogg’s MiniWheats Low Sugar
WK KELLOGG CANADA
These lightly frosted, bitesized cereal biscuits pack a hearty crunch with 10 layers of whole grain wheat. Each 54-gram serving contains five grams of sugar, 47 grams of whole grain and 11 vitamins and minerals.
Coffee
Chips
Ritz Baked Chips
Sour Cream & Onion
MONDELĒZ CANADA
Baked (not fried), Ritz Baked Chips
Sour Cream & Onion are a crispy, crunchy twist on the classic cracker that, according to Mondelēz, have 30% less fat per serving than the leading regular potato chips.
Chocolate
Cadbury Golden
MONDELĒZ CANADA
A treat that combines rich white chocolate with a caramel twist and a smooth texture.
Van Houtte Brew Over Ice
KEURIG DR PEPPER CANADA
Van Houtte Brew Over Ice is a new line of K-Cup pods that, with the press of a button, brews a stronger cup of coffee to better withstand ice melt for a café-quality iced coffee.
Cold Foam Product
International Delight Cold Foam
DANONE CANADA
Customers can now add a coffee shop-style foam topper to their at-home brew—simply shake the canister, press down on the nozzle and sip! International Delight Cold Foam is available in French Vanilla and Caramel Macchiato.
Crackers
Crispers
Smokey Bacon
MONDELĒZ CANADA
It’s a chip! It’s a cracker! Well … in this case, it’s both. Mondelēz has taken its iconic Crispers cracker and paired it with a smoky bacon flavour that’s predominantly found in the chip aisle.
Healthy Kids Snacks
Product of the Year
Frozen Meals
Crave Global Cravings Frozen Meals
KRAFT HEINZ CANADA
Crafted for Canadians, Kraft Heinz has introduced Crave Global Cravings Frozen Meals in six flavours including, Korean BBQ Inspired Beef Bolognese, Spicy Thai Chicken Panang Curry, and Smoky Jerk Chicken on Rice with Pineapple.
GoGo squeeZ Apple Cinnamon and Apple Cherry Vanilla
GROUPE BEL CANADA
A convenient on-the-go snack for kids and active families, these fruit pouches are gluten, nut and dairy free, with no sugar added. They’re available in Apple Cinnamon and Apple Cherry Vanilla.
Healthy Snacks
Protein Candy Classic Fruit - Sour
PROTEIN CANDY
Egg Product
Naturegg Omega Plus
Solar Free Range
BURNBRAE FARMS
Collected from hens living in solar-powered, openconcept barns equipped with nests, perches and dust-bathing areas, these eggs are produced in an energy efficient way and provide an additional source of DHA omega-3 fatty acids and lutein.
Frozen Appetizers
Protein Candy is as advertised—a chewy candy with 14 grams of whey isolate protein, four grams of natural sweeteners and no artificial dyes or flavours. Each pack has sour cherry, strawberry, orange and lemon flavour chews.
Limited Edition or Seasonal Product
Zavida 24 Days of Coffee Advent Calendar
ZAVIDA COFFEE ROASTERS
A playful nod to the holiday season, Zavida’s 24 Days of Coffee Advent Calendar is a curated collection of single-serve pods that offer customers the opportunity to discover 24 unique coffee flavours.
Plant-Based Cheese
The Laughing Cow Plant-Based Garlic & Herbs
GROUPE BEL CANADA
Made with almonds from Spain, The Laughing Cow Plant-Based Garlic & Herbs mimics the taste and texture of its dairy counterpart, according to its maker, and is sold in the same convenient triangle format.
Ice Cream
KitKat Bars
NESTLÉ CANADA
A KitKat lover’s dream come true— a wafer-flavoured frozen dessert coated in a milk chocolatey shell with double the wafer pieces than a previous recipe.
Western Family Hot Honey
Pretzel Coated Cheese Bites
PATTISON FOOD GROUP
A crispy pretzel texture on the outside with a creamy sweet-heat cheesy inside, Western Family Hot Honey Pretzel Coated Cheese Bites can be served as an appetizer, side dish or snack.
Ready-to-Eat Meals
Ben’s Original Street Food
MARS CANADA
These rice bowls deliver on convenience— ready in the microwave in as little as 90 seconds—and taste with globally inspired flavours including Jamaican Jerk Style Red Beans & Rice with Chicken, Gumbo with Chicken Andouille Sausage, and Fried Rice with Vegetables.
Product of the Year
Snacks
Oreo Maple Creme
MONDELĒZ CANADA
Savoury Snacks
Black Diamond Cheestrings
X-treme Pizza & Nacho
LACTALIS CANADA
These new cheese strings deliver the bold taste of pizza and nachos without the mess and in a fun format.
Sour Gummy Candy
Sweet Treats Chips Ahoy! Caramilk
MONDELĒZ CANADA
Oh, Canada! Released exclusively in the Great White North, the Oreo Maple Creme is filled with maple flavoured creme sandwiched between cookies made with real Quebec maple syrup.
Soups & Sauces
Heinz Pickle Ketchup
KRAFT HEINZ CANADA
Featuring notes of brined cucumber juice, vinegar and dill, the new Heinz Pickle
Ketchup pairs well with burgers, hot dogs, French fries and grilled cheese.
MORE PRODUCTOF THEYEAR WINNERS...
Coffee Maker
K-Brew+Chill
KEURIG DR PEPPER CANADA
Face Care
NIVEA Luminous630
Dark Spot Solution
Advanced Serum
BEIERSDORF CANADA
Functional Shot
Active Probiotic Shot
BIO-K+, A KERRY COMPANY
Health & Wellness
Transitions GEN S
TRANSITIONS OPTICAL
Sour Patch Kids Strawberry
MONDELĒZ CANADA
Sour on the outside, sweet on the inside, Sour Patch Kids Strawberry packs a punch of fruity flavour in every bite. Ideal for movie nights, after-school snacks and more.
Sweet Gummy Candy Nerds Berry Gummy Clusters
FERRARA CANDY CANADA
It’s a brand mashup! Chips Ahoy! Caramilk combines crispy Chips Ahoy! chocolate chip cookies with smooth Cadbury Caramilk chips.
Zero-Sugar
Carbonated Beverage
Dr Pepper Zero Sugar
KEURIG DR PEPPER CANADA
Something new for pop fans! Dr Pepper
Zero Sugar has all the flavour and taste customers have come to expect from the carbonated beverage brand, but is both sugar and calorie free.
Nerds Gummy Clusters are bite-sized gummies coated with blue raspberry, strawberry, grape and wildberry flavoured Nerd candies for a chewy yet crunchy treat.
Mattress-in-a-Box
Wave Hybrid Snow
Mattress
CASPER CANADA
Household Appliance
Shark Cordless Detect
Pro 1.3L Auto-Empty
System with QuadClean
Multi-Surface Brushroll
SHARK CANADA
Large Appliance
KitchenAid Multifunction
Over-the-Range
Microwave Oven with Infrared Sensor Modes
WHIRLPOOL CANADA
Mattress
Sealy Posturepedic Plus Eurotop
SEALY CANADA
Men’s Grooming
OneBlade First Shave
PHILIPS CANADA
Oral Care
Colgate PerioGardSF
Gum Care + Enamel
Rebuild Toothpaste
COLGATE-PALMOLIVE
OTC Remedies
TUMS Chewy Bites with Gas Relief
HALEON CANADA
Pet Food
Go! Solutions Hairball
Control + Urinary Care
PETCUREAN
Refrigerator
KitchenAid 4-Door
Refrigerator with Flexible Temperature Zone in PrintShield Finish
WHIRLPOOL CANADA
Skin Care
Bio-Oil Body Lotion ADVANCED INNOVATIONS
Smart Range
Whirlpool 30-inch Smart
Electric Range with Air Cooking Technology, WipeClean Coating, Steam/ Self Cleaning, Rapid Preheat
5.3 CuFt Capacity
WHIRLPOOL CANADA
Sustainable Product
TerraBrae Soil Enhancer
BURNBRAE FARMS
No child should start school on an empty stomach. Join us in supporting nutrition programs across Canada to provide high-protein breakfasts that fuel learning and growth. #Toonies4Tummies
Fresh
SALAD-KIT TRENDS
THE PERFECT PACKAGE
Salad kits offer fresh takes on flavour, health and convenience
By Rebecca Harris
Peo P le want to eat more vegetables, but that often involves time-consuming washing, chopping, dicing and slicing. Enter salad kits: a healthy and convenient meal solution that’s becoming a powerhouse in the produce department.
Grand View Research forecasts Canada’s packaged salad market will reach US$1.26 billion by 2030, growing at a rate of 7.6% annually. Numerator data provided by The Ontario Produce Marketing Association shows Ontario households increased their salad kit purchases by 10.3% in the third quarter of 2024 compared to the same period in 2023.
Among Canadians who buy value-added produce, 50% do so to save meal-prep time, while 40% are looking for a quick snack, notes Greg Palmer, vice-president of trade and market development at the Canadian Produce Marketing Association (CPMA), citing data from Execulytics Consulting. “People are returning to the office and looking for a quick lunch, and salad kits are a healthy, filling option,” he says. He adds that ease of preparation, cost effectiveness and the growing variety of exciting new options
are also driving the category’s growth. Here’s a look at the trends and tastes shaping the salad-kit market.
Global gardens: “Global influences have significantly shaped our salad kit offerings,” says Ezio Bondi, co-founder of arte* salad kits. “We’ve seen restaurant and foodservice trends trickle down into the retail space, prompting us to introduce globally inspired flavours that set our products apart.” This year, for example, arte* launched its Sweet Sesame Heat Kit, featuring a Korean-inspired gochujang dressing, paired with candied ginger and crispy wontons.
In its dressings and toppings for limited-edition global flavour-inspired salad kits, Taylor Farms has embraced new combinations of spices and herbs such as turmeric to create bold colours, along with such flavours as mango and curry, says Charis Neves, director, innovation & product at Taylor Farms.
Diverse diets: Joey Bernaudo, vice-president of merchandising at Longo’s, says customers are not only looking for
healthier options, but also solutions that meet specific dietary needs. “Salad kit inclusions need to accommodate a wide variety of tastes and requirements including vegan or higher protein options, as well as satisfy diverse flavour profiles,” he says, adding that protein-based salad kits have been receiving a lot of interest. Arte* is constantly seeking ways to create salad kits that cater to people with specific dietary restrictions. “Our best-selling kit—the Zesty Kale Caesar— is both vegan and gluten free, with nutritional yeast used in place of parmesan,” says co-founder Matt Duperrouzel. “It delivers all the umami of parmesan without the fat. We also incorporated roasted chickpeas instead of traditional croutons, adding crunch and extra protein.”
Super nutrients: Salad kits can pack an even healthier punch with superfoods. “Taylor Farms’ salad blends contain superfoods such as nutrient-dense kale, broccoli, Brussels sprouts and romaine that are great sources of vitamins A, C, K and fibre,” says Neves. “We also like to use crispy lentils, almonds, pepitas and dried fruits such as cranberries to boost the health attributes of some of our salad kits.”
Sustainable salads: Salad-kit makers are finding ways to make their greens greener. CPMA’s Palmer notes that many salad-kit ingredients are byproducts from other cutting activities, for example, using broccoli slaw from cut broccoli. This helps prevent waste from ending up in landfills.
On the packaging front, arte* is in the early stages of exploring more sustainable options, such as printed film with washable ink or fully biodegradable packaging. “It’s a tricky balance between convenience and cost, which we are acutely aware of,” says Bondi. “[Consumers] are considering ingredients and recyclability and factoring these into their purchasing decisions; therefore, it’s important for us to make a strong impression on both the front and back of the package.” CG
Aisles
FROZEN-MEAL TRENDS
FROZEN MEALS TURN UP THE HEAT
Bold and flavourful options are driving the next wave of frozen food sales
By Rebecca Harris
t his is not your parents’ frozen TV dinner, loaded with bland meat, soggy vegetables and questionable gravy. Today’s frozen meals offer vibrant flavours, global influences, healthy options and something for every dietary need: think Korean-style pork bowl, pulled pork perogy, meatless meatball marinara, glutenfree burritos and beef bourguignon.
For years, the category battled narratives around ultra-processed foods and other negative perceptions, “but those are the tray dinners of yesteryear,” says Andrew Brown, senior manager, industry relations, The Food Industry Association (FMI). Now, there’s growing awareness of quality, variety and value offered by many frozen meals, he adds. “Frozen is just nature’s pause button. There are a lot of benefits and so many offerings that meet different dietary needs and health concerns.”
Sales data shows consumers are eating (and heating) these convenient and diverse food options. According to Grand View Research, the Canadian frozen food market (including ready-meals and other categories) generated revenue of nearly US$8.5 billion in 2023 and is expected to reach US$14 billion by 2030.
“The market itself has seen a lot of progress,” says Brown. “There’s been a lot of innovation and improvements and a big jump in quality over the last 10 to 15 years, and I think more consumers are discovering that.”
MEETING THE NEEDS OF EVERY COHORT
Frozen meals attract a wide range of consumers—especially those faced with the daily “What’s for dinner?” dilemma.
A key demographic driving much of the category’s growth is millennials, says Lynne Strickler, senior director, brand management & commerce marketing at Conagra Brands. “Millennials are in that prime family-raising period of life—about 50% of millennials have children. And so, they are looking for family-friendly options that come on the table pretty fast.”
Older millennials and generation X are the “most engaged” groups in frozen foods, particularly with multi-serve entrees, snacks and breakfast, according to FMI’s The Power of Frozen report. These frozen-food lovers have ample freezer space at home; have positive perceptions of the quality, healthfulness and freshness of frozen foods; and emphasize ingredients, health and production claims.
Meanwhile, members of the generation-Z cohort, who are starting to shop for groceries, are discovering the frozen meal category. “They’re really gravitating towards those heat-and-eat options,” says Strickler. “This demographic group has indicated they are the least likely of any group to prepare a meal from scratch. So, they’re looking squarely at convenience as the main reason for coming into frozen.”
For baby boomers, frozen meals provide welcome relief after years of homecooked dinners. “They have spent a lot of their life preparing meals for family and friends … and at this phase of life, they may not be interested in cooking dinner anymore,” says Strickler. “They’re turning to frozen meals as an easy solution that still offers a balanced meal.”
Steve Ingram, frozen foods manager at Stong’s Market’s Northwoods Village store in North Vancouver, observes that interest in the category is being driven by more at-home eating occasions across all age groups. With today’s economic situation, “people are saying, ‘let’s eat at home, but let’s eat better at home than we did before,’” says Ingram, adding that Stong’s frozen-meal category focuses on high-quality, unique, local items.
GLOBAL CUISINES ARE SIZZLING
Consumers are embracing globally inspired options across categories, and frozen meals are no exception. According to FMI’s Brown, this is driven by both
cultural diversification and consumers’ growing interest in exploring new cuisines. For many, frozen meals provide a convenient way to try global flavours without the hassle of sourcing unfamiliar ingredients or mastering new cooking techniques. “It lowers that literal and figurative cost of entry of trying something new,” he says.
Frozen-food makers are stepping up to meet this demand. Conagra Brands, for example, is introducing a range of multicultural flavours across its frozen-meal portfolio. Its P.F. Chang’s line, launched in 2024, brings East Asian restaurant-style meals to the home, with options including Mongolian Style Beef, Chicken Pad Thai and Beef & Broccoli. Meanwhile, Conagra’s Healthy Choice Power Bowl lineup features Korean-Inspired Beef and Spicy Beef Teriyaki, and its Swanson portfolio now includes a Sweet & Sour Chicken skillet meal and Chicken Taco oven-bake meal.
“We have all this great multicultural influence within Canada, with the newcomer population bringing new food, flavours and trends,” says Strickler.
Little Foot Foods is taking bold steps in frozen by blending traditional perogy with globally inspired flavours. The Windsor, Ont.-based company sells a variety of artisanal perogy options in more than 50 Ontario grocery stores, including Chicken Shawarma Pierogi. Owner Rachael Myers says people are gravitating toward “completely different” flavour profiles than they would normally expect from a Polish perogy.
FROZEN MEALS FOR EVERY DIET
Frozen-food makers continue to expand their offerings to meet a wide range of health and dietary needs.
“Long before it was trendy, we were creating gluten-free, dairy-free and vegan options because we recognized that food sensitivities and dietary choices shouldn’t limit access to convenient, flavourful meals,” says Nicolas Tomaro, senior national account manager – Canada and international at Amy’s Kitchen.
The company now offers more than 135 choices across different dietary preferences—from vegan pizzas and gluten-free burritos to dairy-free mac and cheese alternatives. “Rather than following trends, we focus on creating trusted options for people with diverse dietary needs, always staying true to our organic, made-from-scratch approach,” he says.
At Stong’s Market, Ingram says customers are increasingly seeking cleaner ingredient decks and dietary options such as gluten free, vegan and high protein. One popular local brand at Stong’s is The Dirty Apron, which offers handmade frozen bagged meals including Vegan Chilli and Beef Bourguignon. Another popular local brand is Solecito, which makes handmade, small-batch frozen products with traditional flavours of Mexico. “It’s all about offering local and unique items,” says Ingram. “Anybody can sell frozen food—that’s a no-brainer. But selling unique products you can’t easily get anywhere is what we do.”
HOT MERCHANDISING TIPS
The freezer aisle isn’t the easiest section of the grocery store to merchandise, as most products are displayed behind closed doors. Andrew Brown from FMI says there’s a big opportunity—across grocery categories, but especially in frozen—to communicate with customers before they walk into the store.
“All these digital mediums don’t require you opening a door and having freezingcold air pour down on you,” he says. “But, they offer a great way to story tell … So, when a consumer is in the aisle, which can be cold and sterile, they know what they want. And they go right to that door and pick it up.”
Rick Stein, FMI’s vice-president, industry relations, adds that retailers are increasingly creating solution centres in the frozen category. “It used to be, if you’re promoting frozen pizza, the whole endcap is frozen pizza,” he says. “Now, retailers are adding frozen vegetables, frozen bread and even frozen desserts to those endcaps.”
For Ontario-based Little Foot Foods— which makes a range of homestyle frozen foods including perogies, cabbage rolls, rice dishes, spaghetti and mac and cheese in boil-safe bags—nothing beats getting food into people’s mouths while they’re grocery shopping.
“We do sampling sessions every Saturday at a different location, and we definitely see increases in sales from that,” says owner Rachael Myers. “It’s a triedand-true way of growing our business.”
CELEBRATE EVERY DAY
PLAY THE CARDS RIGHT
Greeting cards remain popular with young adults. Here’s how to make the most of the category
By Rosalind Stefanac
AS THE WORLD becomes more and more digitized, paper greeting cards are still having a moment. Not only has the category maintained its place as a key way of nurturing connections, but research shows greeting cards are favoured by younger demographics who aren’t afraid to spend on premium options.
“The overall health of the greeting card industry has been relatively strong and actually saw some growth during COVID,” says Carlos LLanso, director of strategic initiatives at the U.S.-based Greeting Card Association. “In this category, we see that millennials really value connections and nurture relationships in ways that previous generations just haven’t.”
In fact, a 2023 U.S. survey by OnePoll and Shutterfly showed 62% of millennials and 59% of generation Zs favoured physical cards over digital ones.
LLanso says generation Zs and millennials, in particular, relish celebrating each other on numerous occasions and
“don’t bat an eye” at spending up to US$7 a card to do it. “In a world where everything is fast and easy with social media, this is the antithesis of that … so, there is a kind of intentionality millennials have with buying cards.”
Paul Werynski, president of Carlton Cards, says today’s technology can enhance the importance of card-giving. “Those who appreciate the art of communication utilize various social tools to grow their relationships; however, for truly meaningful connections, they still take the time to send a physical card, fulfilling their desire for authentic connection,” he says.
While forecasts from the 2025 Greeting Cards—Global Strategic Business Report project the global greeting card market will decline in value from US$17.2 billion to $14.5 billion between 2023 and 2030, Kantar’s senior global thought leader Barry Thomas says it’s still a category retailers should be on top of. “We
now have shoppers that are living in a perma-crisis, so anything a brand and retailer can do … to reduce stress and create positive moments through cheery cards is a good thing,” he says.
Consumers also expect to find cards to mark multiple occasions. “Individuals are now recognizing and celebrating life moments that may have been overlooked in the past or were not openly discussed such as divorce parties, celebrations for being in remission or commemorating milestones like paying off student loans or mortgages,” says Werynski.
Looking at digital trends in the category, Kantar’s Thomas points to industry giants such as Hallmark that are finding creative ways to bridge mediums. In 2023, Hallmark partnered with Venmo to produce physical cards embedded with a code that recipients can scan to receive monetary gifts. He also points to opportunities for impulse buys of greeting cards on e-commerce sites that grocers aren’t currently taking advantage of.
Meanwhile, Canadian retailers finding success in the category say having a good variety of curated, premium cards is proving effective. With customers’ growing interest in sustainability, Rabba offers select greeting cards from Hazy Jean, a Canadian, female-owned, family-run business based in Toronto that uses plant-based inks on paper certified by the Forest Stewardship Council.
Cards by local artists are also a key part of the selection at Stems by Stong’s, a free-standing floral shop owned by Stong’s Market in B.C. “We have expanded our card offering over the past year due to the demand of sales and interest from our customers,” says Stacy Smith, store manager at Stems by Stong’s Northwoods Village location. “Greeting cards are one of our top three bestsellers every week.”
Kamea Baker, floral category manager at Summerhill Market in Toronto, says she relies on the expertise of suppliers, such as Paper E. Clips, to choose styles that are resonating with customers. “Merchandising the cards around gift items like florals or candles is usually best, because they pair together,” says Baker, noting slot walls are optimum because they take up less space and clearly display the variety of cards available. “I believe that as long as people are giving out physical versus virtual gifts, paper cards will continue to have a place.” CG
1 CACAO, NOT COCOA
Native to tropical rainforests, the cacao tree looks plucked from Willy Wonka’s chocolate factory. The short evergreen with drooping branches has a whimsical charm, accentuated by its football-shaped fruit in hues ranging from red, yellow and turquoise, depending on the variety of tree. The pods are filled with seeds–or beans–which, once fermented, dried and roasted, make cocoa, the main ingredient in conventional chocolate. (Not to be confused with cocoa, cacao refers to the bean in a pure or less-processed form.)
3 ETHICAL CHALLENGES
Cacao production has been plagued by deforestation, unpredictable weather and child labour in Ivory Coast and Ghana, which together supply about 70% of the world’s cacao. These challenges have made sustainable and ethical sourcing a priority for craft chocolate brands with high percentages of cacao (60% to 85%), including Ontario-based Hummingbird Chocolate and Chocxo, which manufactures its chocolates in British Columbia. Hummingbird sources its cacao from the Dominican Republic. “It’s not to say that the country doesn’t have the same challenges as the Ivory Coast, but it’s definitely less
Cacao Four things to know
By Chris Daniels
2 GOOD MOOD FOOD
Cacao is rich in flavanoids—antioxidants that benefit the cardiovascular system. And while not a cure-all for the blues, it contains tryptophan, “a precursor for serotonin, a neurotransmitter that helps improve mood,” says Nathalie Norris, a certified nutritional practitioner at Healthy Planet. “It also has lots of magnesium, which helps with relaxation.”
In short, it’s a superfood and becoming more widely available as a powder, nibs (crumbled dried cacao beans) and butter (a fat extracted from the bean). These raw forms retain more of the bean’s health benefits compared to when it’s processed cocoa. Though bitter, cacao’s citrus and dark chocolate notes make it tasty in small doses.
prevalent,” says Erica Gilmour, Hummingbird’s founder and president. In addition to the Dominican Republic, Chocxo gets its cacao from Peru. “Its flavour is more natural and fruity than West African cacao beans,” says president Peter Higgins. Summerhill Market has been carrying Hummingbird since October, with the grocer’s category manager Paul Durning loving the premium taste of the brand’s chocolate bars and confections—the peanut butter cups are his favourite—and commitment to ethically and humanely sourced cacao. “We’re proud to have partnered with
them, and their chocolate is selling exceptionally well,” says Durning. Startups are also developing solutions to address cacao shortages, which have driven up prices of the bean. “Novel ways to mitigate the current challenges include regenerative agricultural techniques and bio-based technologies,” says Lu Ann Williams, global insights director at Innova Market Insights. California Cultured, for example, harvests cells from a cacao plant and grows them in fermentation tanks designed to mimic rainforest conditions. It recently signed a supply agreement with Japanese chocolate giant Meiji.
4 TASTE TEST
“It’s like having a fine Bordeaux wine compared to the average red,” says Summerhill’s Durning of chocolate with high cacao content, making in-store sampling a great way to encourage first-time purchases. In-store tastings led by brand owners see particularly strong sales increases. “Consumers love interacting directly with the chocolate maker,” says Durning. Available at most grocers, including Whole Foods Market, Metro and Sobeys, Chocxo creates in-store excitement with limited-edition flavours such as Dark Chocolate Peppermint Cups with 85% cacao ahead of Christmas and Dark Chocolate Lemon Crème Cups with 72% cacao in spring. “Given they come in secondary displays—bringing more eyeballs to the category—we’ve had tremendous feedback from grocers about our limited editions in driving incremental sales,” says Higgins. In fact, Chocxo is introducing another limited-time flavour later this year.
New on shelf!
1 WHIPDD BUTTERS
Creamy and made using allnatural ingredients, Whipdd flavoured butters can be used as a sandwich spread, melted over grilled meat, fish and veggies, or as a topping on pancakes and waffles. Whipdd is available in Real Strawberry, Honey & Cinnamon, Smoked Chilli, and Herb & Garlic.
2 RICOLA CHERRY FLAVOUR
Winter is often considered the prime time for cold and flu. Meet Ricola’s new cherry flavour, a low-menthol option that combines the taste of juicy cherries with the brand’s signature blend of 10 Swiss Alpine herbs to help soothe scratchy, sore throats.
3 BARBET DEEP DIVE
Canadian sparkling beverage brand Barbet has launched its fourth flavour. To be enjoyed on its own straight out of the can or used as a mixer, Deep Dive offers a blend of white peach, yuzu and a hint of mint.
4 MOODRINK BARISTA EDITION
This barista-style, plant-based milk alternative is made using gluten-free organic oats and produces a rich and creamy froth. It contains five grams of plant protein per 250-millilitre serving and is free of gums and lactose.
5 DAIYA’S DIAVOLA PIZZA
An exclusive to Canada, Daiya’s plant-based version of the traditional diavola pizza combines plant-based salami-flavoured slices, red jalapeños, red onions, chili flakes and the brand’s dairy-free mozzarella made with a proprietary oat cream, all atop a light, crispy, gluten-free crust. CG
The latest products hitting shelves
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5
Express Lane THE AGE OF INTELLIGENCE
AI adoption is growing—now’s the time to leverage its potential
By Kristin Laird
THE ADOPTION OF artificial intelligence (AI) is accelerating and opening a world of opportunities. But, there are still questions and uncertainties surrounding AI’s accuracy (its only as good as the data it learns on), ethical considerations and more. We recently chatted with Andreas Duess, CEO and co-founder of 6 Seeds Consulting, a data-enabled AI-driven marketing firm specializing in CPG and food industry innovation, about harnessing AI to build customer loyalty, the role it can play in pricing and promotions and perpetuating bias. (This interview has been edited for clarity and length.)
How do you ensure the data you’re working with is complete, current and accurate?
Well, you wouldn’t use ChatGPT, you would use data that you have collected and that you have audited. One of the things AI is good at is taking huge chunks of data and figuring out the connections within that data. If I’m a grocer, I would instantly look at the data I have available, I would structure this data as best I could and give AI access to all of them. Then I would start talking to my data.
How can AI help build customer loyalty?
If I feel you know me and do things that benefit me, I will be yours forever. I have three teenage boys that behave like a swarm of locusts. We can’t buy food fast enough because I fill the fridge in the morning and they come home from school and it’s bare, it’s barren. If you, as a retailer, understand me and come to
me with, I don’t know, a newsletter or an article that says how to feed three teenage boys without bankrupting your family, I would find that very interesting indeed.
Will AI transform pricing and promotions?
Let’s look at people on GLP-1 [drugs like Ozempic, etc.]. In the U.S., 38% of the population will be on a GLP-1 drug in two years’ time and I suspect in Canada the numbers aren’t far behind. And if, for example, a retailer is helping their customers on this weight-loss journey, price becomes less important because they are working towards an outcome that’s important to those customers. If I’m running President’s Choice and I need to make goods high in fibre, nutrient dense, taste amazing, but they need to be affordable, I will have my ingredient database and I will ask [AI], “what can we do with healthy ingredients that don’t cost the earth?” And AI is good at helping us answer these things because AI is amazing at pattern recognition.
How do you avoid bias?
The important thing to understand is AI will get you to 80% [of what you’re trying to achieve]. For example, let’s say part of my marketing mix is culinary content development. I have a recipe journal and I have a test kitchen with chefs who come up with 20 recipes a month. With AI, you can put in your relevant consumer data and ask for 500 recipes. If you publish these 500 recipes without human interaction, you’re setting yourself up for ridicule because some of them will taste like
absolute crap or the measurements will be wrong. Instead, give those 500 recipes—developed by AI in half an hour—to a chef and ask them to pick the 51 recipes that speak to your customers. Use the customers as a starting point for your own humanity and your own genius. The outcome will elevate the skills of your test kitchen chefs because ... they can apply their knowledge, their passion and their own humanity. That’s where the magic of the interaction is. And that’s where you ask, is this bias? Does this assume things [that] need to be double checked?
How can smaller grocery businesses use AI to compete with larger chains?
If you’re an independent store, you can use the public models. There is always this fear the models will steal your data. No, they don’t. Your data is a fraction of a drop in the ocean that nobody is interested in. When you check how much inventory is being sold, put that data in a spreadsheet, upload the spreadsheet, wait three months, do the same thing again, wait three months, do the same thing again. What trends do you see? I talked to a retailer who uses an AI model he made to run his sales data against the weather report. He anticipates the right time to put specific products on sale ... aligning with weather patterns that suggest those products will be in demand. Really clever stuff you can do in a humble way, but will still help you. CG
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