April | May 2012 Vol 2 | No 2 $9.95
sustain
ability Walmart’s
Sustainability Team
PM # 42211029
Erin Mackey, John Lawrence, and Andrew Telfer Walmart’s Corporate Social Responsibility Team
Grand Prix Finalists
BEST NEW P R O D U C T
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MEILLEUR NOUVEAU P R O D U I T
Grocery Business April | May, 2012 Volume 2, Issue 2
contents Departments 6
Front End
What’s happening in the grocery business
10 CFIG 50th
Anniversary Profile
Powell Group of Companies
68 It Figures
Nielsen spotlights consumer shopping behaviour
70 Perry’s Point of View
Perry Caicco, CIBC World Markets, take on pharmacy files
11 Open Mike
30
Michael Marinangeli talks: Building Sustainable Customer Loyalty
66 Launch It, List It
47 Grand Prix Finalists 4
April | May 2012
18
on the cover
21 Sustainability: Walmart Partners for Success To fuel its sustainability efforts, Walmart Canada performs crowdsourcing at its best
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64 features 12 Alternative Channels E-Commerce Evolves
14 C-store retailer readies for mobile marketing
15 Meals to Tweet Home About 18 Chef’s Specials 34 International
Cross-border collaboration
35 R ecognition
Battistelli’s Your Independent Grocer in Lively, Ont., awarded top honour for customer satisfaction
64 N ight to Nuture
The grocery industry gathers for a gala evening to raise funds for kids
sustain
ability 23 Big steps for smaller footprints Food & Consumer Products of Canada Report: Making An Impact
25 G reen Grocers
Independent grocers across the country step up for sustainability
26 Q&A With Four Stars of Sustainability 28 Thought leadership: Triple the Value
39 T he British Channel
If a new trade agreement is established, the market will be wide open for retail opportunities
40 D ove Tale’s Best of Britain Dove Tale Connections has launched its very own Best of Britain promotion to spotlight its variety of British products
41 E xporting Help from Abroad
43 B ritish Food & Drink Product Importers
30 Package Deal 32 Smart Moves April | May 2012
5
Offer SELF SERVICE A convience that is EASY EFFICIENT ACCURATE BIZERBA - K CLASS scale systems.
Front End
Congratulations on your new magazine – it’s a great read and I really look forward to getting Grocery Business at the store. Any plans to increase your frequency? Ken Schley, Quality Foods Qualicam Beach, B.C.
Bizerba K class Touchscreen scales
GLEN WILSON RETIRES FROM CROSSMARK CANADA After a distinguished 12-year career with CROSSMARK Canada, chairman Glen Wilson retired in April. Wilson’s career within the grocery and consumer packaged goods (CPG) industry spans four decades and his knowledge, influence and experience have left a lasting impression on several organizations and industry leaders.
... Ideas ... Change the World
Bizerba North America In Canada: Tel. 905 816 0498 Fax. 905 816 0497 E-mail. sales @ Bizerba.ca www.bizerba-na.com
Wilson began his career as a clerk in the dairy section of a Winnipeg Safeway store and eventually became a sales representative for General Foods. Then, in 1975 at the age of 25, he purchased an independent grocery store in Niverville, Man. After two years in retail he returned to CPG and worked on the Kraft/General Foods merger, where in 1991 he was appointed Vice President of Sales and soon was promoted to Vice President of Sales and General Manager - Kraft Foods Canada. In 1998, Wilson left Kraft to start his own company, National Links, with his partners Brian Carley and Bruce Forbes. In 1999, the trio partnered with CROSSMARK to become the first truly national broker in Canada. Wilson has mentored many of today’s CPG/food and beverage industry leaders and remains very active in several industry organizations. “Glen’s passion, leadership and commitment to excellence have built a lasting legacy within the Canadian grocery industry landscape,” said John Thompson, CEO of CROSSMARK, Inc. Thompson said that although Wilson will be stepping back from the CROSSMARK business, he will stay on as a strategic advisor to the new president of CROSSMARK Canada, Chris Terrio.
Front End
The Canadian Federation of Independent Grocers Chair, Brent Battistelli, and President and CEO John F.T. Scott, are pleased to announce the unanimous selection by the Board of Directors of: Anthony Longo, President and CEO of Longo Brothers Fruit Markets, as the 2012 Spirit of the Independent Award Recipient The Luncheon of Honour will be held at Grocery Innovations Canada on Monday, October 2, 2012
April/May 2012 Volume 2, Number 2 www.grocerybusiness.ca Co-Publisher and Executive Editor Karen James 416-561-4744 KarenJames@grocerybusiness.ca Co-Publisher and Content Director Kevin Smith 416-569-5005 KevinSmith@grocerybusiness.ca Executive Vice-President Content and Market Development Dan Bordun 416-817-5278 DanBordun@grocerybusiness.ca
Subscription changes & updates or general inquiries: info@grocerybusiness.ca
Editorial Team Noelle Stapinsky, Sally Praskey, Angela Kryhul Creative Agency Boomerang Art & Design Inc. Contributing Photographers Lise Varrette, Christoper Scott
Grocery Business Advisory Council
Tim Berman, Kraft Canada Inc.
Bill Dunne, Acosta Canada
Michael Marinangeli, MIDEB Consulting Inc.
Phil Donne, Campbell Company of Canada
Mark Ayer, Procter & Gamble Inc.
John Scott, Canadian Federation of Independent Grocers
David Wilkes, Retail Council of Canada
Perry Caicco, CIBC World Markets
Cori Bonina, Stong’s Market
Nancy Croitoru, Food and Consumer Products of Canada
© Copyright 2012. All rights reserved. No part of this magazine may be reproduced without written permission of the publisher. GST Registration No. 83032 6807 RT0001 Publications Mail Agreement No. PM42211029 ISSN 1927-243X Grocery Business Media 390 Queen’s Quay W., PO Box 4085 Toronto, ON M5V 3A6
April | May 2012
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Front End
Reset...
New research from the IGD in the U.K., indicates that China has become the world’s largest food and grocery sector, surpassing the U.S. for the first time. China’s grocery market is expected to have tripled its volume between 2006 and 2014. . . . . Kruger Products has been recognized for its marketing efforts with Cassies Awards 2012 for both English and French advertising. Taking home two Golds and three Silver, Kruger has won more Cassies awards in the past 10 years than any other packaged goods company. . . . . Longo’s announced that it has partnered with Canada Beef Inc. to launch a new high-end Canadian prime beef line. . . . . Brand Momentum and SJ Johnson have been named as “Canada’s Great Places to Work for 2012”. . . . . Metro Inc. has announced a 12 per cent increase in Q1 profits helped by higher sales. Metro also published its first Corporate Responsibilty Report in May. . . . . Pepsi Co’s Board of Directors has approved a 4 per cent dividend increase, the company’s 40th annual dividend boost. . . . . Kraft is off to a strong 2012 start and is on track to deliver net revenue growth of 5 per cent for the year. . . . . High Liner Foods Inc. announced that as a result of supply chain consolidation, it will be closing plants in Newfoundland and Labrador and in Massachusetts at the end of 2012. . . . . Campbell’s Soup Company has been inducted into the Corporate Responsibility Hall of Fame for its outstanding social and environmental programs. . . . . DCI welcomes new members Michael-Angelo’s Market Place, Cataldi Fresh Market and Galleria Supermarket. And congratulations to current member, Food Port, on the opening of their second store, located in Mississauga, Ont.
Walmart has launched Our Finest, a premium line of BBQ products featuring over 100 SKUs all under $10 The line extends from appetizers through to dessert and includes burgers/sliders, sparkling beverages and ice creams. Developed in Canada, Our Finest BBQ products are available nationally.
UGI has expanded its supplier base with the addition of:
Overwaitea Food Group names new president Darrell Jones began his 36-year career in the food business in Cranbrook, B.C. at the local Overwaitea Foods store where he bagged groceries after school. Darrell progressively moved through a series of 23 different senior operating roles and was part of the senior management team for 10 years before assuming his current position as president. Dave Lemmon, of Smucker Foods of Canada, was recently elected to the position of corporate officer as vice president and managing director, Canada.
Steven Sage, who has been with Kruger Inc. since 2010, was recently appointed vice-president, sustainability and innovation. Dwight Konings has assumed the role of VicePresident, Program Innovation & Commercialization at Advantage International, a position that carries global responsibilities. Following his departure from Zellers, Mark Foote is now president and CEO of Wajax Industries, an industrial equipment firm. April | May 2012
9
CFIG 50th Anniversary Profile
Powell Group of Companies, Bay Roberts, N.L. is the second in a series of Grocery Business profiles from the Canadian Federation of Independent Grocers book, “A Celebration of 50 Entrepreneurs.”
Second-generation entrepreneur David Powell
turns adversity to advantage
As the saying goes, “when the going gets tough, the tough get going.” And no one is tougher – or more determined – than David Powell, the affable, soft-spoken president and CEO of the Powell Group of Companies in Bay Roberts, N.L. Not only has Powell successfully defended his turf against the incursion of large chains from the mainland, but he also found a way to turn tragedy into triumph when the cod-fishing industry collapsed in 1992. The Powell dynasty, which now comprises Atlantic Grocery Distributors Ltd. (AGD) and three supermarkets, got its start in 1948 when David’s father Herbert opened a tiny store in
“ We’ve done what we had to do over the years to survive,” the town of Carbonear. Like his son who followed, Herbert was an entrepreneur, relocating his business seven years later to a larger site in nearby Bay Roberts and branching into flooring, furniture, appliances and fish processing. After graduating from university with a bachelor of commerce degree, David joined the family business, managing various divisions. In 1987, the Powells decided to focus on full-service retail, opening supermarkets in Carbonear and Harbour Grace, and divesting themselves of all their other businesses.
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April | May 2012
But the turning point came in 1990, when David decided that if the company was to remain viable, it needed a guaranteed source of supply, rather than relying on wholesalers who owned competing retail outlets. Therefore, he made the courageous – and shrewd – decision to open a wholesale operation. “There were five small wholesalers in the area at the time, and I approached all five of them. One decided to sell out to us.” And so in 1990, the wholesale division was born. The following year, he bought another small wholesaler. But just a year later, disaster struck when the government imposed a moratorium on cod fishing, robbing the island of its lifeblood. Fishermen, fish-plant workers and their families exited the province in droves to search for work. As the owner of a newly minted state-of-the-art warehouse, David needed to find a way to maintain his sales volume and keep his staff employed. He found the solution in foodservice. “We began to bid on and won quite a few tenders for hospitals and nursing homes, and also started supplying restaurants and take-outs.” By diversifying, the Powell Group actually experienced a substantial increase in volume, says David. “We were still in the food business, but in a different branch of it.” Since then, the company has maintained a business ratio of
one-third retail, one-third wholesale to other customers, and one-third foodservice. “We’ve got a real balance,” says David. “Whatever happens, our volume levels itself out. That’s worked very well for us.” To say the least; AGD is now the largest wholesale distributor in Newfoundland and Labrador, with annual sales topping $100 million. “We’ve done what we had to do over the years to survive,” David muses, defying the sceptics who condemned his decision to become a wholesaler. Indeed, the naysayers served only to fuel David’s resolve. “That fires me up and just makes me more determined to make it work,” he asserts. “That happened many, many years ago with my father in retail. People wrote us off. We got into the wholesale distribution business, and people said: ‘You’re biting off more than you can chew. You’re not going to be around in six months.’ Well, 20 years later, we’re still here, and we’re bigger and stronger than ever. We’re a pretty determined bunch.”
Open Mike
Is the price really right? By Michael Marinangeli
Do you have a pricing strategy? If so, is it well documented, clearly articulated, and understood throughout your organization? Does the consumer understand it? When was the last time it was reviewed or revised? Who is responsible for pricing strategy in your organization? Are your procurement and pricing strategies congruent? Are you a price leader or do you follow your competitors?
Michael Marinangeli is a principal at MIDEB Consulting Inc. and a retailing veteran with more than 40 years of experience. mjmarinangeli@gmail.com Michael is a founding Grocery Business Advisory Board member.
Whether you are a retailer or a manufacturer, pricing strategy is at the heart of your value proposition to the consumer. Yet, pricing strategy never seems to get the time, talent or treasury that it deserves which is a mistake that can ultimately lead to market share erosion. It seems to me that no one is currently doing a great job communicating their pricing strategy to the marketplace. This is odd considering that so much emphasis has been put on loyalty card programs while the pricing/value proposition to support or enhance it is vague or poorly communicated. One of the challenges facing all retailers and manufacturers today is the growing percentage of volume sold on promotion versus regular price. This isn’t surprising when you consider that the “big savings” touted in the weekly flyers are huge; can we blame consumers for not wanting to pay regular price for their groceries? So why should retailers and manufacturers be deeply concerned about the growth of promotional volumes?
Some points to consider: • Margins are more difficult to manage because of the escalating promotional sales mix that results in lower profits. • Inventory turns throughout the store deteriorate, affecting store productivity. • Shrinkage in perishable departments escalates since the non-promoted items don’t sell and thus spoilage increases. As shrinkage goes up, prices get raised even higher to cover the losses – a lose/lose proposition. • The logistics costs of managing inventories throughout the supply chain escalate because of the peaks and troughs in item movement on each and every item in the warehouse, store backrooms and shelves. • Weekly sales become less predictable, affecting labour productivity in the stores (the best ad wins). • Cherry-picking becomes more rampant which further leads to erosion in customer loyalty. The long and the short of it is that there is no integrity in regular shelf prices today. We all complain that customers only buy what is on sale, but that’s what we are rewarding them to do. Customer loyalty starts with your value proposition to the consumer. Pricing strategy is at the heart of that proposition. If you are going to be high priced, you’d better be great at customer service and have a superb fresh offering. If you have a low price positioning then be true to this strategy, but don’t expect to win in this marketplace if you’ve positioned yourself as the lower-high priced operator. April | May 2012
11
Alternative Channels
e-commerce By Sally Praskey
John Compton, president of PepsiCo, raised the eyebrows of more than a few grocers at the Food Marketing Institute (FMI) Mid-Winter Executive Conference with his prediction that Amazon.com would command a 20 per cent share of all diapers sold in the U.S. by 2015. “Is it unreasonable to assume that you can build a relationship with someone buying diapers online…”? he asked. “Would it be ridiculous to assume that they could also buy a case of Pepsi?”
P H O T O : P ell D avid , C arrefo u r
The evolution of
representation of store shelves stocked with Procter & Gamble health, baby and beauty products.
“At Well.ca, our mission is to break down barriers to online shopping,” says Ali Asaria, founder and CEO. “We’ve mashed together our love of smartphones, the convenience of e-commerce, and free shipping to do
Well, why not? After all, online grocery shopping has evolved from the heady days of the dot-com bubble that saw multimilliondollar start-ups like U.S.-based Webvan implode in spectacular fashion early in this century. While Webvan and many other online grocers didn’t survive, the granddaddy of them all, Peapod.com, founded in 1989 in Chicago, soldiers on, having formed an Alliance with Stop & Shop and Giant in several U.S. states. And in Canada, Mr. Case has been delivering supermarket items by the case to residences in the Greater Toronto Area (GTA) since 1984, going online in 1996. Independent grocers are well represented in the Canadian e-commerce sweepstakes, with pioneers Stong’s Market in Vancouver, Ottawa-based The Country Grocer, and Longo Brothers Fruit Markets in the GTA with its purchase of start-up Grocery Gateway, leading the way. Others continue to enter the 12
April | May 2012
fray, most recently Quality Market in Thunder Bay, Ont. And while few of them would claim that e-commerce represents a major portion of their business, they are satisfying a consumer demand that, if not met, could threaten the traditional store model. “Fresh food will preserve some advantage for bricks-and-mortar stores over pure online players, but a lot of the ‘food biz’ is not fresh food,” says Ed Strapagiel, executive vice-president, KubasPrimedia, Toronto.
Emerging models
As online shopping gains momentum, several different models for ordering and delivery have sprung up. Inspired by a similar application from Tesco’s Korean chain, Homeplus, Well.ca bills itself as the “first QR-code virtual store in North America.” The e-commerce retailer set up shop – or rather, covered the walls – outside a downtown Toronto subway stop with a visual
something no other retailer delivers.” After downloading the Well.ca app to their smartphones, shoppers scan the product QR codes, and check out on their phone (see sidebar for GB’s test run). Meanwhile, start-up Shop.ca claims a product selection “20 times the size of its closest Canadian rival,” as well as free shipping, free returns, and a “Social Loyalty Network rewards program.” While Shop.ca’s virtual inventory spans some 25 categories, including health and beauty, food is not among them. In Europe, and particularly France, retailers such as Carrefour, have pioneered the “Drive” concept, which has become a popular and efficient way to circumvent the costs of home delivery. Customers order their groceries online, and then pick them up at the store or another stand-alone drive-through location (there are close to 700 in France) with a temperaturecontrolled storage area.
P H O T O : B arbe L ionel , C arrefo u r
Alternative Channels
According to a report by RetailNet Group (RNG), the average basket spend at the Drive is 62 per cent higher than the traditional format for French retailers. RNG estimates that the concept will represent 20 per cent of FMCG sales in France by 2021. U.K. retailer Tesco launched its Drive version in 2011. “Click and Collect” leverages the chain’s existing e-commerce infrastructure developed for Tesco Direct to give its customers access to all the products available in-store.
The Drive concept closes the divide between the digital and the physical, says the RNG report. “It looks to finally have brought e-commerce profitably to grocery categories.” Amazon is also experimenting with other delivery options such as partnering with the post office in Italy, where e-commerce is less developed, so shoppers can pay for their online orders upon delivery. In certain cities in the U.S. and U.K., it is allowing customers to pick up their goods from delivery lockers in their neighbourhood. Walmart, which has made a major investment in its e-commerce website after losing ground to Amazon, is offering same-day in-store pick-up, as well as home delivery. Its
GOING TO THE WALL Because the Well.ca site is located in my Toronto neighbourhood, I decided to test-drive the experience and found it to be a fast and seamless ordering process, even for a less-than-techsavvy shopper like me. I downloaded the app to my smartphone, ordered and paid for the product and voila! Three days later two bottles of Tide were delivered to our condo.
“pay with cash” program in the U.S. allows customers without credit cards – some 20 per cent – to reserve products online and pay for them with cash at their nearest store. While the options are many, time is short for grocery retailers. ”Bricks-and-mortar incumbents should get into the online/off-store game, both to learn the ropes and to beat down new competition before it gets too established,” says Strapagiel. “The bricks-andmortar operations may also want to look into online ordering, followed by pick-up at the store via drive-through. This would build on their locational advantage.” Whatever model grocers choose to adopt, it will be yet another way to connect with customers. As the RNG report puts it: “E-commerce solutions are not cannibalistic, but rather, they are an evolution towards ‘commerce anywhere.’”
For personalized service and a well-curated collection of food products, it’s hard to beat a grocery store that’s on its game. But my takeaway from the Well.ca experience was that if convenience is a shopper’s first priority, Well.ca just might find an eager audience. –Karen James, Executive Editor
Delivering the goods: e-commerce models Here are some of the models that are emerging for ordering and delivery, among both the bricks-and-mortar and pure-online retailers. • In-store pick-up (pre-pay or pay-on-pick-up) • Pick up at stand-alone drive-through location (Auchan, Carrefour, Casino and many others in France; REWE, Metro Group in Germany; Tesco in U.K.)
• Pick up at delivery locker (Amazon in U.S., U.K.) • Pick up at post office (Amazon in Italy) • QR code virtual ordering (Well.ca in Toronto; Tesco Homeplus in South Korea)
April | May 2012
13
Technology
C-store retailer readies for
mobile marketing Mac’s Convenience Stores Inc. is dialing into a customer base that is ready and willing to buy By Sally Praskey
the customer’s name; it simply recognizes More than 1,400 Mac’s Convenience and the serial number on the Bluetooth chip in Couche-Tard stores across Canada are set to the phone, Romanov explains. “So we are connect with some 1.5-million potential doing what you might call anonymous customers every day through their mobile mobile messaging.” devices. iSign licenses the technology to its clients The Interactive Marketing Solution (IMS), for a flat fee. In the case of Mac’s, the from Toronto-based iSign Media Solutions systems are installed in the stores, and Inc., allows the retailer to broadcast to transmit from there. As of press time, the consumers who are within a radius of 300 retailer had not started to broadcast, but feet of a store, so they can respond to had identified more than a million phones a promotional offers immediately. day that it could target with messages “Tests have proven that if you are within about its products and promotions. Once it proximity to act on an offer, you will have a 72 per cent chance of the recipient acting on starts broadcasting – under the campaign “Mac’s Goes Mobile” – the chain will be able that offer,” says Alex Romanov, CEO of iSign to determine which offers generate the best Media Solutions. “So it’s a very good way to attract customers through their phone when results since the system catalogues all responses and acceptances in real time. they are nearby.” Should the retailer run out of an adverThe IMS system uses Bluetooth wireless tised product, it can change the promotion technology to recognize a mobile device immediately. It can also use the metrics to when it comes into range and asks the market to individual consumers based on consumer if he or she wants to receive a their previous responses to offers. “It’s special offer from the advertiser. If the actually broadcasting to the masses consumer agrees, it is transmitted to him or individually,” says Romanov. her at no charge. The system does not know
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April | May 2012
The Consumer
Meals to
TWEET HOME ABOUT
Lunch and learn
By Stephanie Lawrence
Twitter is one of those “love it” or “hate it” tools. Some find its bite-sized morsels of information appetizing. Others don’t find it to their taste at all, accusing it of delivering random information. One of the recurring complaints is “Who cares what you had for lunch?” And while that may be a valid question for some, dietitians are of a different breed. At Health Check our team of dietitians has been listening intently to what Canadians are saying online about what they eat for lunch – and breakfast and dinner for that matter. We find these conversations fascinating because we are in the business of helping Canadians make healthy choices.
Who’s talking?
21-35:
36-50:
58%
21%
In 2011 there were 138,063 mentions of lunch in Canadian online conversations – more than any other meal occasion. An overwhelming amount of the Twitter conversations* – 41 per cent or 12,445 tweets – were about school lunches. Lunch discussions are generally healthy – salads are the most tweeted item. Here is what Canadians tweeted they ate for lunch: Item
Tweets
Salad
2,220
Fast food
2,176
Meat
1,890
Vegetables
1,026
51-and-over:
Fruit
599
13%
Soup
567
Pizza
446
Sandwich
433
20-and-under:
Fish
403
7%
Dessert
370
Cheese
354
»» More people tweet about forgetting breakfast or eating a late breakfast than about eating a healthy breakfast.
Chips, fries
319
Pasta
304
Wrap, burrito, taco, quesadilla
227
»» Not surprisingly, coffee is the most popular breakfast beverage followed by tea, milk and juice.
Eggs
174
Seafood
163
According to the available demographic information, more women (63 per cent) than men (37 per cent) engage in online conversations about meal occasions. The most active age group is 21 – 35 year olds.
Breakfast on the go »» More people tweet about who they are having breakfast with than what they eat for breakfast. »» Most people who tweet about their breakfast have eaten at a fast-food restaurant. »» Meat, eggs and fruit are the most popularly tweeted breakfast foods.
WHAT’s for dinner? Thanksgiving is not only the biggest meal of the year, it is also the most talked about. Additional spikes in Canadian dinner conversations happen at the beginning of the school year and during Christmas.
What are the top five dinner items according to Canadian tweets?
Where/with whom do they eat dinner?
What nutrients are they interested in?
1. Meat 2. Salad 3. Vegetables 4. Fruit 5. Dessert
1. Home 2. Family 3. Dine out 4. School 5. Work
1. Sodium 2. Calories 3. Protein 4. Sugar
For more information visit healthcheck.org
Stephanie Lawrence, Assistant Director Health Check, Heart and Stroke Foundation.
Follow us on Twitter @HSFHealthCheck
*Monitoring of Canadian online conversations took place from January 1 to December 1, 2011.
April | May 2012
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Shelf Life
Chef’s Specials A taste of some of the unique ingredients finding favour with top chefs By Sandra McVeigh
The popularity of the Food Network’s vast array of cooking shows and chef competitions has brought the pressure-packed atmosphere of the world’s wildest kitchens into consumers’ homes. A good chef is on a never-ending quest to discover or tweak an obscure ingredient to incorporate into a menu. Eventually, these products will often find their way into mainstream meal preparation. The 2011 Canadian Restaurant and Foodservices Chef Survey cited red rice, agave syrup and artisanal cheeses as some of the up-andcoming ingredients to watch for. So here’s Grocery Business’ guide to six top trends gaining favour with chefs now. By offering these unique products, you’ll be ahead of the culinary curve when your customers come to your store looking to replicate their out-ofhome food experiences.
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April | May 2012
Exotic Oils The definitive taste of roasted nut oils adds a dimension of flavour to vinaigrettes, soups and roasted vegetables. Whether drizzled as an eye-catching swirl on a cream-based soup or incorporated into a full-flavoured salad dressing, walnut, almond, pumpkin or hazelnut oil is used by top chefs to add depth of flavour. Walnut oil, in particular, is a good source of Omega-3, 6 and 9 fatty acids, essential for human health, while pumpkin oil is generating a lot of buzz in top professional kitchens and with inventive home chefs.
Buffalo Mozzarella Toronto’s Obika Mozzarella Bar’s star ingredient is the unctuous globes of mozzarella di bufala from the Campagna region of Italy. Made exclusively from the fat and protein-rich milk of the water buffalo, it is a fresh cheese with a thin rind and delicate taste. Mozzarella di bufala in Italy is made by hand; the cheesemaker kneads the curds to make a shiny paste, which is lopped off into ball shapes and soaked in brine. If stocking the DOP (Protected Designation of Origin) protected mozzarella di bufala from Italy isn’t on your menu, there are a number of Canadian vendors, such as Quality Cheese under the Bella Casara brand, that offer the real deal from water buffalo milk.
Shelf Life
Agave Syrup Agave syrup is a low-glycemic sweetener that is slightly thinner in texture than liquid honey. Difficult to find outside of natural- or health-food stores, agave syrup is, nevertheless, rapidly growing in popularity. It’s made from the leaves of the Agave tequilana plant, which also produces tequila. Agave nectar or syrup ranges in colour from light to dark. It dissolves easily in liquids and can be used for drinks, smoothies and beverages such as iced teas. The darker-coloured syrups can be used in savoury applications for meat, fish and some desserts.
why don’t you?
Quinoa This ancient grain originated in the Andean region of South America and was held sacred by the Aztecs of Peru. Called the “mother of all grains,” quinoa (pronounced “keen-wha”) contains all the essential amino acids, making it a complete protein source and a good source of dietary fibre. Gluten-free and amazingly versatile, quinoa can be used in salads and as a breakfast cereal, while the flour made from the grain can be used in baking. Its light nutty taste and fluffy texture allow for myriad flavour combinations with vegetables, vinaigrettes and fruits.
Red/Black Rice Red and black rice are heirloom grains with the outer husk of the rice grain intact. Black, or forbidden, rice has a nutty texture and is deeply coloured, due to its high anthocyanin (the same anti-oxidant that gives blueberries their dark hue) content in the husk. According to legend, only the Chinese emperor was allowed to eat this type of rice, valued for its health benefits. Canadian importers carry organically grown product.
Tea-smoked Meats What Canadian hasn’t enjoyed the wood-smoked delicacies of fresh fish? Now, a new twist on this old favourite is cropping up on menus across the country. Capitalizing on the craze for loose-leaf tea, tea-smoked meats such as duck breast and salmon are a hot trend. Smoking foods with loose-leaf tea imparts nuances of flavour and aromatics from the various types of tea used. Green tea imparts grassy notes, and enhances ginger, garlic or citrus flavours, while black tea stands up to stronger marinades or infusions.
Whether it’s a craving for quinoa, a hankering for hazelnut oil or an appetite for agave syrup, these are products with high margins that consumers are reading about and are willing to experiment with if they can locate them within your store. Why not be solution oriented? Incorporating these trends into your flyer recipes and creating a special “New and Now” display at the front of the store helps define you as a food destination rather than a food depot.
April | May 2012
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sustain
ability
WALMART PARTNERS
FOR PROGRESS
By Noelle Stapinsky
To fuel its sustainability efforts, Walmart Canada performs crowdsourcing at its best
GOALS
Canadian consumers are tuned into environmental issues and when it comes to what they buy and where they buy it, companies with sustainability plans in place are often favoured. This is what global retail giant Walmart finds unique about its Canadian marketplace and has tailored its sustainability program to measure up to Canuck expectations. Walmart’s program is based around three goals for all of its various locations: • To be 100 per cent supplied by renewable energy; • To be a zero-waste company; and • To sell more products that sustain people and the environment.
100
%
supplied by renewable energy
“Those three core goals drive everything we do around sustainability and each market we operate in around the world,” says John Lawrence, director, corporate social responsibility, Walmart Canada. “And within each market we have what we call freedom within the framework, which allows us to work on issues relevant to the customers in those markets.” Launched in 2005, Walmart’s sustainability program has reached out nationally to source the best and brightest.
0
a zero-waste company
sell more products that sustain people and the environment L to R: Erin Mackey, John Lawrence and Andrew Telfer
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sustain
ability Green Sourcing In 2010, the company hosted the Green Business Summit in Vancouver, inviting 300 attendees comprised of academics, NGOs, and Walmart suppliers and competitors. “The whole purpose of the meeting was to share best practices,” says Lawrence. “Getting to know folks that are working on the same issues is beneficial. The more we can adapt new technologies, the lower the price becomes to implement them.” This summit opened a door for sustainable collaboration, and to keep that door open Walmart launched ShareGreen.ca, a website that allows Canadian companies to share their case studies. Across Canada, Walmart has several test projects on the go. “We’ve rolled out two solar tests in the past couple of years. We’re testing wind energy at one of our stores and distribution centres. We’re using thermal energy at one of our stores in Burlington, Ont., for example,” says Lawrence. And at its Balzac, Alta. distribution centre, Walmart is testing hydrogen fuel cells on a fleet of trucks. Earlier this year, Walmart held its first ever Green Student Challenge competition, which encouraged
Giving Back Community investment and philanthropy is a huge part of Walmart’s culture and mandate. Walmart has donated $25 million to Canadian charities. Among many of its local charity programs, Walmart’s four core national charities include: the Children’s Miracle Network, Breakfast Club of Canada, Canadian Red Cross and Evergreen. Erin Mackey, manager, community involvement at Walmart, says, “Our partnerships with these charities drive our mission of helping Canadian families in need. By channelling our efforts to these four organizations, we are able to make an impact on important causes like health care, hunger, disaster relief and the environment while supporting the communities we serve.”
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universities from across the country to enter green ideas through the ShareGreen.ca website. The main purpose of this challenge is to get ideas from the next generation of thinkers. The winning project came from a University of Waterloo team that developed an integrated energy hub for retail distribution centres. Walmart also co-sponsors a sustainable packaging student competition annually. For its zero-waste effort, the goal is to divert as much from landfill as possible – in 2010 Walmart reported that it had achieved an 85 per cent waste diversion rate. “There are sincere efforts happening all across Walmart Canada to help reduce our impact on the environment,” says Andrew Telfer, manager, sustainability. “From diverting more waste from landfill, to building our stores more energy efficiently and to turning conventional products into more sustainable ones, we are working hard to affect positive change.” As Canadians continue to demand more ecofriendly, sustainable options, the retailer continues its green search from coast-to-coast. Certainly it continues to look for the next cutting-edge green ideas, but also the best and brightest that could be new hires in the future.
sustain
ability
Food & Consumer Products of Canada Report: MAKING AN IMPACT
Big steps for
smaller footprints A new report reveals that Canada’s food, beverage and consumer products manufacturers are stepping up environmental sustainability efforts By Noelle Stapinsky
Landfills are brimming with waste, greenhouse gas emissions are eating away at the ozone, and clean water is in limited supply – environmental sustainability is a hot topic, and the call for more action among businesses and manufacturers has never been more urgent. As part of a wider research initiative to compile information on environmentally sustainable efforts, Food & Consumer Products of Canada (FCPC) partnered with KPMG to produce the report “Making an Impact: Environmental Sustainability Initiatives in Canada’s Food, Beverage and Consumer Products Industry.” Released just before Earth Day in April, the report surveyed 33 FCPC member companies on their current sustainability efforts. “One of the key findings in the report was that 88 per cent of the respondents have an environmental sustainability strategy in place, which is great news,” says Rachel Kagan, senior director of environment and sustainability policy for FCPC. “Of that, 96 per cent said they’ve updated that strategy in the past three years, and 89 per cent said it was approved by senior management or their board of directors.”
For many of the companies surveyed, the top three drivers of their strategies are: A. improve internal processes to enhance performance and reduce costs; B. demonstrate market leadership; and C. reduce the environmental impact of products. Meanwhile, the top three challenges to implementing environmental sustainability initiatives are: A. difficulty in making a compelling business case; B. lack of human resources; and C. lack of financial resources. Given the broad-scale opportunities and challenges involved, it’s no surprise that the respondents believe that, in order for a company’s strategy to be successful, senior management must play a lead role in engaging
employees to ensure the sustainable initiatives are engrained in all business operations. According to Kagan, some companies are creating cross-functional teams to integrate the initiatives throughout the company. “In Canada, things are changing quickly,” says Phillip Ludvigsen, director, Carbon Advisory Services at KPMG Canada. “The food and beverage industry is reacting and showing strong leadership. Companies that track and report sustainability efforts are viewed better by consumers and in the eye of the investor.” As with any business strategy, environmental initiatives must balance the benefits against possible costs and tradeoffs. According to the survey, most organizations are tracking and monitoring three areas that offer both financial and environmental benefits: energy, water, and waste management (see charts).
Per cent of FCPC members tracking and monitoring performance of the top three priorities
Energy Water Waste management
97% 94% 91%
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sustain
ability TRENDING…
SUSTAINABILITY DISCLOSURE PRACTICES
59%
Integrated reporting – combining financial and non-financial (i.e., environmental and social) reporting. Also known as the “Triple Bottom Line.”
Issue a Global Reporting Initiative report
33%
Industry benchmarking – over the coming years, it will become more important for the industry to come together to share data. Incorporating sustainability into the entire supply chain, with a focus on water and food waste.
Of respondents report publicly on energy, water and waste practices
Of these three top priorities, reducing energy consumption has yielded the fastest return on investment. To implement energy conservation, there is widespread use of smart metering, energy-efficient lighting, heat-recovery systems and Leadership in Energy and Environmental Design (LEED) certified production space – the average LEED-certified building uses 32 per cent less electricity and eliminates 350 tons of carbon dioxide annually. The report revealed that while fewer respondents had programs in place to reduce greenhouse gas emissions, two-thirds are focused on carbon reduction in production processes and office environments.
“ We think companies will use this report to benchmark against their peers,” says Kagan.
Companies are also reaching beyond their operations and establishing environmental sustainability purchasing guidelines: • 3 3 per cent of respondents have established purchasing guidelines; • 73 per cent apply the guidelines to their direct suppliers; • 45 per cent apply them to indirect and service suppliers; • 55 per cent require periodic evaluation for risk assessment. Currently one third of respondents have purchasing guidelines already in place, and the report says, “incorporating environmental criteria into purchasing decisions will eventually become the status quo as a result of supply chains becoming more sustainable.” “We’re seeing companies dedicate vast resources to help create and implement their environmental sustainability strategies,” says Ludvigsen. “These dedicated resources are much
more than ‘going green’; these are fundamental shifts to their business models with a view to positive results for all stakeholders.” In the future, it will be extremely important for industry to come together and share environmental information. It’s difficult to get Canadian-specific data – and sustainability knows no geographical boundaries so the FCPC may consider developing a North American industry benchmark in the future. “We think companies will use this report to benchmark against their peers,” says Kagan. “It’s a great gauge. My hope is that it acts as a catalyst and incentive for companies to improve their performance and increase their bottom line.”
To download the full report “Making an Impact: Environmental Sustainability Initiatives in Canada’s Food, Beverage and Consumer Products Industry,” go to: www.fcpc.ca/issues/environment/
ABOUT THE AUTHORS RACHEL KAGAN is Senior Director, Environment and Sustainability Policy, at Food and Consumer Products of Canada (FCPC).
PHILLIP LUDVIGSEN is Director, Carbon Advisory Services at KPMG Canada Ludvigsen has over 25 years of environmental engineering, finance, risk and carbon management experience.
Kagan oversees the FCPC’s environmental sustainability strategy. Rachel Kagan
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Phillip Ludvigsen
sustain
ability GREEN
Energy to spare:
GROCERS
PETE LUCKETT Pete’s Frootique, Halifax, NS
Independent grocers across the country step up for sustainability By Sally Praskey
Buying for the greater good: MARK VICKARS Choices Markets, Vancouver, BC Choices Markets in Vancouver is a natural and organic food retailer with a focus on ethical and sustainable sourcing. Its commitment extends to selling only organic and fair-trade bananas, in this case purchased from a co-op in Peru. It’s also launching a program called “Pennies for Peru,” that asks customers to donate their change to the banana farmers.
“We teach our consumers the benefit of organic and natural,” says CEO Mark Vickars. “For example, I can make an ethical, moral, and business case for consumers to buy organic, fairly-traded coffee. If it’s going to cost, say, 10 cents a cup for conventional coffee, I can say, ‘For 12 cents a cup, which is really going to make no difference to you in a year, you have now directly supported growers in their communities, educated their children, and also lowered the impact on the environment.’” With its commitment to the larger community, it’s easy to see why Choices Markets was recently chosen by Fair Trade Vancouver to receive its “Fair Trade Retailer of the Year” award.
Fishing for sustainability: Overwaitea Food Group, Vancouver, BC In 2009, Overwaitea Food Group (OFG) formed a partnership – one of the first of its kind in North America – with SeaChoice, Canada’s national seafood program, to commit to a sustainable seafood policy. The two organizations work together to support sustainable fishing
industry practices and provide OFG’s employees and customers with information about the seafood they choose to buy. OFG has also earned praise from Greenpeace for its efforts to rid its shelves of “destructively fished or farmed” seafood.
And OFG was the first retailer in Canada to actively promote the concept of “return to retail,” while pursuing ways to eliminate waste, including: recycling 100 per cent of cardboard, organics and plastics; and reducing solid waste and water usage by 20 per cent.
Pete’s Frootique in Halifax, has become the first grocer in the Maritimes to choose 100 per cent clean, renewable electricity. Last year, it signed an agreement with Bullfrog Power, whose green electricity comes exclusively from wind and hydro facilities that Environment Canada has certified as low-impact under its EcoLogo program, rather than from polluting sources like coal, oil, natural gases, and nuclear power. Pete’s is “bullfrogpowering” the lunch areas and juice bars at its two locations. “As providers of fresh ingredients and produce, we recognize that we have a responsibility to ensure our operations are as environmentally friendly as possible,” says Dianne Hamilton, chief operating officer at Pete’s.
“ As providers of fresh ingredients and produce, we recognize that we have a responsibility to ensure our operations are as environmentally friendly as possible.” In addition, Pete’s has an in-store recycling program, offers products with lower-impact packaging, has upgraded its existing point-of-sale technology to make stores more energy-efficient, and has established a Green Committee comprising employees who help drive energy- and water-conservation initiatives.
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Q&A
joan patterson
STEVEN SAGE
with Four STARS OF Sustainability Joan Patterson Communications and Corporate Affairs Leader Heinz Canada, Toronto, Ont. What is the depth of your involvement in sustainability programs at Heinz? I sit on the Global Sustainability Council at H.J. Heinz in Pittsburgh, and I’m the co-lead for Heinz Canada’s sustainability initiatives. My scope with Heinz is quite broad, which helps me be successful in the sustainability role. Once management has endorsed an initiative, what do you think are the biggest challenges to effecting change within an organization? Any time you have an initiative that’s driven from the top down it’s difficult to get anything done if
Steven Sage Vice-President, Sustainability and Innovation Kruger Inc., Mississauga, Ont. Why did you choose sustainability as a career option? Sustainability chose me! Kruger had identified sustainability as a key initiative in 2008. I sought a role at Kruger, and my senior-level industry experience was considered an asset which could best be deployed by creating and implementing a sustainable development plan for the company. Once management has endorsed an initiative, what do you think are the biggest challenges to effecting change within an organization? It’s easy to rally around an initiative that improves environmental performance, community
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KIM RAPAGNA
MARGARET HUDSON
By Angela Kryhul
Before joining Heinz in 2006, Joan held communications positions with Hudson’s Bay Company, Robin Hood Multifoods and Loblaw Companies. Joan is a graduate of the Richard Ivey School of Business at the University of Western Ontario.
you don’t ensure that it’s part of your culture and is important to individual employees.Sustainability has always been embedded in our operational standards and in our cultural fabric. What accomplishment (within your current portfolio) are you most proud of? There are two. First, we share with growers, all over the world, our proprietary Heinz seed, which is more drought-tolerant and disease-resistant, and we teach sustainable agricultural practices. The other is our Heinz Micronutrient Campaign. Since 2001, we’ve worked with NGO partners and
government agencies to provide supplements to about 3.5 million children in 15 different countries. What’s the “Next Big Thing” that businesses will be facing in the area of sustainability? Globally, I think the big issue is clean water, but here in Canada what continues to be the “big thing” is packaging reduction and recyclability. Our industry is struggling with trying to find alternative renewable sources of energy that are viable for manufacturing operations.
Before joining Kruger two years ago, Steven held several senior roles at Georgia-Pacific Corp. in Atlanta. He has a BA from Iowa State University and an MBA from Emory University.
involvement and operating costs. Early results are relatively easy to achieve and to identify the benefits. Maintaining focus, momentum and commitment as the opportunities become more difficult to achieve is key for someone leading an organization’s sustainability efforts. What accomplishment (within your current portfolio) are you most proud of? I’m most proud of launching our first sustainable development plan, Sustainability 2015 (sustainability2015.ca). In 2010, leading our efforts to become the first Canadian tissue manufacturer to achieve Forest Stewardship Council certification,
as well as releasing our first public results as a privately held company. What’s the “Next Big Thing” that businesses will be facing in the area of sustainability? I believe there’s still tremendous opportunity for retailers and manufacturers to work together to find win-win sustainability solutions in the areas of logistics, packaging and product put-ups. There’s tremendous opportunity for educating consumers about the benefits of purchasing more environmentally responsible products. Globally, I think that sustainable water management will become increasingly more important.
sustain
ability Kim Rapagna Senior Manager, Sustainability Kraft Foods Canada, Toronto, Ont.
Kim brought 12 years of experience in sustainability to Kraft when she joined the company three years ago. She holds a BA in Political Science and Community and Public Affairs from Concordia University.
Why did you choose sustainability as a career option? Primarily for the opportunity to create change.We need a fundamental shift in how we do business to achieve true sustainability. Business can be a powerful catalyst for change, and leveraging that power to bring positive benefits – both to the businesses themselves and to the environment – intrigued me.
initiatives stage to integration into a company’s culture. Embedding sustainability in all aspects of the business – from procurement to marketing to operations – allows the entire organization to rethink how they do business and move ideas and concepts forward. Critical to this is understanding who in the organization can work as a champion, and implement and integrate sustainability programs quickly and effectively.
Once management has endorsed an initiative, what do you think are the biggest challenges to effecting change within an organization? As with all large organizations, the biggest challenge is shifting sustainability from the
What accomplishment (within your current portfolio) are you most proud of? Over the past year, two stand out. The first is our LEED EB (manufacturing) certification for our coffee roasting facility in Oakville, Ont. This was
Margaret Hudson President Burnbrae Farms Ltd., Mississauga, Ont.
What’s the “Next Big Thing” that businesses will be facing in the area of sustainability? Water. The need to manage this resource carefully is becoming increasingly urgent, as there are many sectors competing for its use.
The great-granddaughter of Joseph Hudson, who founded Burnbrae Farms in 1893, Margaret has been involved in the company for many years, and has been president since 2009. She holds a B.Sc. and an MBA from the University of Toronto. In 2011, Burnbrae Farms was named one of “Canada’s 50 Best Managed Companies,” by program partners Deloitte, CIBC, National Post, and Queen’s School of Business.
Why is sustainability important to Burnbrae? We’ve chosen to pursue sustainability initiatives for a number of reasons. The Hudson family believes in giving back to the communities in which we do business. We believe in the importance of preserving the earth’s resources for future generations, and in the humane handling of our layer hens, while at the same time producing a safe and affordable high-quality protein food. Once management has endorsed an initiative, what do you think are the biggest challenges to effecting change within an organization? Things that we can do, as a family, are easier to execute. For example, putting in more energyefficient lighting and equipment as we make capital improvements. It’s harder when you need to
the ultimate example of teamwork, with expertise being shared across our global network. The other accomplishment is our innovative partnership with Bullfrog Power for Dad’s cookies. Today, our entire Dad’s baking and packaging lines are powered with 100 per cent green electricity and green gas.
mobilize an entire company. We’re looking at making behavioural changes, such as reducing energy usage, reducing paper use, and reducing chemical and water usage. What accomplishment are you most proud of? Working with the community of Brockville, Ont., our poultry people and equipment suppliers to build a henhouse for an orphanage in Belarus. The project provides the orphanage with agricultural skills, income and a source of food.
bird needs with human needs, and we’re working with animal welfare researchers and our customers . . . to look at housing systems for our birds. We’re committed to providing choice to consumers and educating them about farming practices by working with Farm and Food Care Ontario. We’re sponsoring information about free-run and free-range systems at www.farmissues.com, and we’re using social media to direct consumers to the site.
What’s the “Next Big Thing” that businesses will be facing in the area of sustainability? Animal welfare. Our industry is under scrutiny by animal activists. The Canadian egg industry has been very proactive . . . when it comes to balancing
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sustain
ability Thought leadership:
Triple the Value
By Karen James
The triple bottom line – also known as the three pillars – is the integration of social and environmental values into the traditional financial measures of an organization’s success, with the goal of sustainability. The first pillar is “People” – fair and beneficial business practices toward labour and the community; the second is “Planet” – sustainable environmental practices; and the third is “Profit” – the economic value created by the organization after deducting the cost of all inputs.
CAPTAIN OF CONSERVATION We’ve all heard the saying “think globally, act locally.” But perhaps no one epitomizes this expression better than David Smith, vice-president of sustainability at Sobeys Inc. Smith has a unique ability to see
the big picture when it comes to environmental issues - he is active in the Consumer Goods Forum, headquartered in Paris, which comprises retailers and manufacturers working together on a global basis
to find solutions to common industry challenges. At the same time, he is able to translate those learnings right through the supply chain to the store level.
Grocery Business met with Smith who shared his views on everything from resource planning to refrigerants. >
ON DRIVERS OF SUSTAINABLE PRACTICES: As outlined by McKinsey & Co. in the report “The Business of Sustainability,” the number one driver is resource efficiency. Over the past 40 years, companies have been focused on efficiencies as they relate to capital and labour but as resources become scarcer and more expensive, a shift will take place. And with resources it makes sense to tackle the low-hanging fruit first. For instance, we know that most of our carbon footprint is in our retail store – two-thirds of it is in electricity, and 28 per cent of it is in refrigerant leaks. A kilogram of that gas can be the equivalent of 4,000 kg of CO2, which is how global-warming potential is measured. There is an example of a practice not being on the radar for years, but now that we can measure all of this, solutions are being developed (see sidebar “Sobeys gains from GHG reductions”).
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ON THE BUSINESS IMPACT OF SUSTAINABLE PRACTICES: The impacts are numerous – there is a global movement toward environmental, social, and governance practices being integrated into financial reporting. Senior executives need to be aware of these emerging trends because it takes time to migrate complex business practices.
sustain
ability ON THE FUTURE:
ON EXTERNALITIES:
>
“Externalities” is an interesting concept. Inputs such as carbon and water have traditionally been considered nominal costs, but now you’re going to see these things being accounted for differently, and in fact becoming “internalities” as companies incorporate them into the total cost of the product produced. An example of an external cost becoming internal is the Blue Box program, which, in Ontario and Quebec is 50 per cent funded by those provinces. This is about to change. Governments are downloading the entire cost to the original manufacturer, and now have “extended producer responsibility,” meaning that the original producer is 100 per cent responsible for post-consumer use, making what was previously an external cost an internal one.
>
ON COLLABORATION: The issues are systemic so we need to get people to collaborate on solutions. This is now being done within companies, as well as at a global level through the Consumer Goods Forum. For instance, 90 per cent of our total footprint is in our supply chain, which is becoming increasingly global. Therefore, we need collaborative solutions because individual companies can’t effect change without linking to their supplier partners around the world.
>
“Right now, in order to get economic growth, you get environmental degradation. But you need to decouple that relationship. I’m actually very optimistic about the future because until now, this stuff hasn’t been measurable, and as we know, what gets measured, gets done. So if we’re not managing our resources efficiently, we’ll be able to put a value to that and make the proper adjustments, which is the right thing to do for the business and the planet.”
ON FOOD WASTE: Waste diversion is becoming more important. Particularly with organic material, there is potential to close the loop by having it composted and sent back to the store to be sold as fertilizer. The movement is to get it out of landfill and recognize its economic value. There are some interesting things going on in this area. We’ve tested systems where the waste material would be bio-digested right onsite and then picked up as compacted compost material, as opposed to the larger volume and weight we would pay for if it was in its original form. The George Morris Centre says that in Canada, we waste about 50 per cent of our food, which is the global average. So here’s the irony: there will be a need to increase food production by about 50 per cent by 2030, so if we could just reduce food waste, we’d be in balance.
>
ON SOURCING: On the sourcing front, Sobeys is looking at three areas right now: sustainable seafood, sustainable packaging, and ethical sourcing. We are probably furthest out on seafood. In our view, eco labels and certification are good, but not sufficient. We want to push for more impact faster, so we have an NGO partner we work with called the Sustainable Fisheries Partnership, whose expertise is in helping a variety of vendors make significant improvements and build capacity so we can offer the consumer an assortment of traceable products. So if, for example, you bought Sobeys’s private-label frozen fish, you’ll find a code on the packaging. If you then log on to www.thisfish.info and type in the code from the packaging, you’ll be able to see the fisherman who caught the fish – his name, the name of his boat, the map of where the fish was caught, the gear that was used, plus lots of other information.
About David Smith As vice-president of sustainability at Sobeys Inc., David Smith directs the company’s sustainability efforts, including product sourcing and social compliance. He participates in many committees, including the global Consumer Goods Forum.
Prior to joining Sobeys, David was national vice-president of marketing for Whole Foods Market in Austin, Texas. He has an undergraduate degree in biology and environmental studies from the University of Toronto and an MBA from McGill University.
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sustain
ability (David Smith, Continued) >
ON THE “NEXT BIG THING”: The thing that I’m most passionate about, and that is appearing on the business radar, is preserving biodiversity. McKinsey says that biodiversity is the next big frontier for business. Tools have been developed to measure the impact of business on biodiversity, so look for that to become incorporated into the cost of goods at some point. And another emerging area is “eco-system services,” where natural processes that perform needed functions, such as plants consuming carbon dioxide and emitting oxygen, will be assigned an economic value for providing that valuable service.
Sobeys gains from GHG reductions Because of its efforts in reducing greenhouse gas (GHG) emissions at stores in Quebec, Sobeys Inc. has established a partnership to sell carbon credits to the National Bank of Canada. The agreement, which allows the Bank to neutralize its GHG emissions, marks the first of its kind between two private companies in Quebec. “This agreement was made possible by specific GHG reductions that Sobeys has already made at 44 of its Quebec IGA stores, where we have replaced refrigeration gases that are detrimental to the environment,” said Sobeys Quebec president Marc Poulin when the agreement was announced late last year. Sobeys Quebec was the first in North America to implement the Eco2-System, which uses carbon dioxide, or CO2, as a refrigerant. This system allows for up to 3,900- times lower GHG emissions than other refrigeration systems. The C02 system is now becoming a new store standard across Canada as Sobeys rolls it out chain-wide and other retailers make plans to adopt the technology.
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Package Deal Under the “Extended Producer Responsibility” initiative (EPR), suppliers and retailers are accountable for a package’s endof-life. Jim Downham, president and CEO of the Packaging Association talks to Grocery Business about the implications for both retailers and manufacturers. By Karen James
sustain
ability The Case for Recovery Grocery Business: Jim, can you explain what is meant by “Extended Producer Responsibility,” and why should retailers and manufacturers be aware of it? JD: Historically, the end-of-life for a package was something that the packaging industry and CPG companies had little to do with. It was managed by municipalities and waste-management companies that collected, sorted, and either recycled or sent the material off to landfill. Municipalities have been the overseer of this process and the cost was recovered in residential taxes. That scenario is now changing, and governments are applying the term “extended producer responsibility” as another way of saying, “If you make it, you own it through to the end of its life.” So that impacts not only manufacturers but retailers as well. Government argues that if industry is held accountable for packaging waste, they will endeavour to reduce the amount of packaging by making it more recyclable and, overall, get more engaged in the ultimate end-of-life of the package. Programs have been in place in Europe since the early ’90s, so there is a model to be followed, and although the U.S. has no legislation at this point, EPR is starting to boil up. The cost of collection, recovery, and disposition of packaging is estimated to be over $1 billion in Canada, or about three per cent of the cost of goods sold. Extended producer responsibility is now getting everyone’s attention, and EPR programs are being rolled out across the country. Current programs exist in Ontario, Quebec and Manitoba, and B.C. is currently studying the best way to go forward by 2014. GB: How will retailers be impacted by EPR policy? JD: The retailers will have responsibility for their house-branded products and all products produced outside the country that they retail. The impacts for all stakeholders are significant.
GB: What are some of the initiatives that the industry has undertaken to deal with this issue? JD: Collaboration is the key, and to that end, the Packaging Association (PAC) has created PAC NEXT, “A World without Packaging Waste.” Among the founding members are Sobeys, Walmart, Loblaw, and Safeway, along with major brand owners such as Procter & Gamble, Unilever, and General Mills. We also have NGOs and government engaged. All the members recognize the problem and, through PAC NEXT, are working collaboratively and collectively on solutions.
It’s important to recover as much discarded packaging as possible because: » it’s a potential resource; » it will mitigate packaging recovery costs; and » it will provide a viable option to using raw materials.
About The Packaging Association (PAC)
GB: Jim, can you tell us more about PAC’s “Creating Next Life Solutions” conference being held in Ottawa in September? JD: The conference is an extension of the PAC NEXT strategy implementation. It is, as the title states, creating next life solutions for discarded packaging. It is intended to address and educate the industry in four key areas: 1. Government policy that is shaping the landscape around EPR; 2. Economics of the industry – growth projections and creating green jobs; 3. Innovation enablers – the global and local tools available to effect change; 4. Innovation as it applies to products and processes.
PAC is a material-package-neutral association which achieves success through transparency and collaboration.
GB: Who would benefit most from attending the conference? JD: Any organization that has an environmental, social, or economic interest in getting packaged goods to consumers, and the recovery of discarded packages once they are collected. The sustainable packaging movement is well underway, and innovation is a key theme of our conference that will lead to “Creating Next Life Solutions.”
For more information on PAC NEXT, its vision and goals, visit: www.pacnext.com.
The PAC vision is to provide leadership for the packaging industry and increase PAC’s profile within the global market. Its mission is to maximize value and sustainable growth for the association and its members. In 2011, the PAC NEXT initiative was created to facilitate the economic recovery of discarded packaging with a vision of “a world without packaging waste.”
The “Creating Next Life Solutions” conference will be held September 28-30, 2012 in Ottawa, Ont. www.pac.ca
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sustain
GAME
ability
CHANGER
SMART
MOVES By Noelle Stapinsky
In a country as vast as Canada, transporting goods can be a huge feat. And once the product arrives at its destination, many Canadian companies are faced with figuring out the logistics of getting the empty shipping containers and pallets returned to them in a sustainable way.
The CPC recognizes and appreciates the financial assistance of Sustainable Development Technology Canada (SDTC) to the ECT project. SDTC, an arms-length, not-for-profit corporation funded by the Government of Canada, provided $1.25 million to assist in the development and demonstration of the ECT technology. For more information about SDTC, please visit www.sdtc.ca
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Starting June 1, 2012 the Canadian Pallet Council (CPC) is launching its Electronic Container Transfer (ECT) online tracking solution, which will create better visibility and asset location management for its more than 1,200 member companies. With ECT, the CPC – a not-for-profit, memberbased organization – has developed yet another innovative online solution to help ease asset tracking and transportation costs, allowing companies to run their logistics planning more smoothly, while being more environmentally friendly and cost-efficient. Working with the CPC’s CTSWEB – a web-based container-tracking system that has already reduced members’ time and costs in the administration of pallets since its implementation in 2004 – the ECT offers increased transparency of any opportunities for trading partners to exchange offsetting imbalances of containers (or CPC pallets) electronically.
The system has proven its advantages in a pilot test. “This project – involving logistics and operations – enables members to benefit from what we’ve created with very little effort for a regular business activity,” says Belinda Junkin, president and CEO of CPC.
“ This system is going to save members money and generate carbon credits,” says Junkin. The process is simple. Members already enter their container (or CPC pallet) shipping transactions into the CTSWEB database. The new ECT functionality simply uses the CTSWEB database to identify opportunities for trading partners (within a closer proximity) to exchange offsetting container imbalances, which ultimately reduces transportation and handling costs, as well as road traffic and greenhouse gas (GHG) emissions.
sustain
ability
“It’s like online banking. You can only see your account,” says Junkin. “However, we are leveraging all of the data in the CTSWEB system to identify ECT opportunities. An ECT option will let businesses know that there is an ECT transaction available. You can set up your system to either accept all ECTs as they come in, or set it so that you manually accept each transaction. In some cases, companies might not want to [transfer containers] due to other business requirements or considerations.” Companies can also use ECT with non-web trading partners. “If, for example, a company inputs data for all of its trading partners – even those that aren’t using the online CTSWEB system – it will send those companies an email notification to offer the same transfer option,” says Junkin. “There’s actually a workaround to include non-CTS users whose data is in the system.” ECT quantifies the GHG emissions saved as a result of reduced transport and handling of empty pallets and containers, based on industry averages and statistics. The CPC can then issue carbon credits or other environmental-reduction benefits.
“At this point, due to the lack of national standards for carbon credits, we’re going to collect the data and then [the membership can] decide how the carbon credits or offsets are used,” says Junkin. “We’ve actually talked to a power plant in Alberta that’s interested in buying any carbon credits we could generate.” The monetary value of carbon credits is measured by the amount of metric tons of GHG not emitted into the atmosphere. And although the regulations may vary from province to province, more and more companies are looking for ways to work sustainability efforts into annual reports to appease investors and consumers. The CPC’s ECT project not only offers its members a unique opportunity to reduce or eliminate transportation and logistics costs, but it also quantifies the environmental benefits with little change to their current processes. “This system is going to save members money and generate carbon credits,” says Junkin. “And it will reduce CPC pallet costs, which makes us even more competitive in the market.”
ECT will save money on the return of empty pallets and containers by reducing: • transportation and handling costs • damage to pallets • administrative costs
Belinda Junkin, President and CEO, Canadian Pallet Council
For more information on the Canadian Pallet Council’s ECT project contact: Belinda Junkin, at bjunkin@cpcpallet.com Telephone: 905-372-1871 www.cpcpallet.com
In addition, companies can lower GHG emissions by cutting: • trucking of empty containers • fuel consumption
April | May 2012
33
International
Cross-border
collaboration By Karen James
Recently, Grocery Business met with Peter Larkin, President and CEO of the National Grocers Association in the U.S., and John Scott, President and CEO of the Canadian Federation of Independent Grocers, to discuss the challenges facing retailers on both sides of the border.
GB: How have independent grocers fared during the economic slowdown of the past few years? Peter Larkin: It’s been a challenging time. Many of the independents are having a difficult time adjusting to the new economy and finding ways to keep customers coming through the door. They are wondering how to get consumers to add one or two items to their baskets so that they can show some growth. They seem to be climbing out a bit and then there’s another decline, so there are no consistencies. They attend our conferences interested in learning from each other and trying to find the magic one or two or three bullets that will help them beat the trend. John Scott: Our situation in Canada is a bit different – we have a very diverse economy in a small market that forced us to long ago differentiate against our major competitors. And we were able to weather some of the price storms because as the U.S. economy faltered, the Canadian dollar rose. That protected us against imports and allowed us to maintain a price structure. And so, until about a year ago, many retailers were comfortable and you didn’t hear a lot of concern, but now, we are begin-
ning to hear that the market is soft. And with Target’s entry into Canada next year, we’re seeing the competitive landscape already beginning to change. The word “differentiation” is coming up more frequently, and some are thinking that they need to work harder at that – it’s a very wary independent market these days. GB: So how can independents differentiate themselves more than they already have? Peter Larkin: Well, we believe that the three key differentiators are people, produce, and a strong community connection. In the store itself, perishables are key – if you don’t win in the perimeter, chances are you’re not going to win at all. John Scott: I totally agree. For example, Brent Battistelli, who has a store in northern Ontario, has for three years in a row topped Loblaw’s customer service survey, and so it’s no surprise that he’s the number one store in his community. We have many examples from across the country where independents are winning despite a challenging environment.
GB: Both NGA and CFIG have created very successful member share groups. Do you see an opportunity to create a cross-border share group? John Scott: There definitely is potential there. It would be a hell of a statement for the grocery industry as a whole to create reciprocity with independents across North America. We are sharing in some ways already. For instance, Brent, as this year’s CFIG chair, will be presenting our 50th anniversary book to Peter at the NGA conference gala dinner. GB: And speaking of joint initiatives, since both associations have popular Best Bagger competitions, the word on the street is that there could be a Canada/U.S. face-off held in Toronto some time soon. Peter Larkin: I’m waiting for the official challenge!
John Scott
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April | May 2012
Peter Larkin
Recognition
CULTURE CLUB Battistelli’s Your Independent Grocer in Lively, Ont., awarded top honour for customer satisfaction By Noelle Stapinsky Brent Battistelli
At Brent Battistelli’s Your Independent Grocer (YIG) store in Lively, Ont., company culture is paramount to delivering top-notch customer service. And according to online customer survey results, he has a winning strategy. The small town grocer was recently recognized as the top YIG for customer service through the Loblaws Golden Grocer Awards, which measures improvements in sales and overall store performance. For customer satisfaction, stores encourage customers to visit www.storeopinion.ca, where they can win prizes by using a location specific code and completing a survey that rates overall shopping experience. “My number one focus has always been on the customer. We established core values years ago that relate to how we interact with our customers and ourselves as a team,” says Battistelli, who is also the newly appointed chair of the Canadian Federation of Independent Grocers (CFIG). “Being recognized by our customers certainly gives us the validation that we’re on the right track and that our customers recognize that we work hard at giving great service and the quality of what we do.” The overall satisfaction rating for Battistelli’s store was over 90 per cent. “Loblaws measures customer satisfaction on many different metrics,” says Battistelli. “But the
one telltale score with a lot of weight is the likelihood of a customer recommending your store to another person. We scored quite high in that aspect compared to the market.” The call-to-action to the online survey is on every receipt, promoted through signage at the checkout tills, and by staff giving friendly reminders to customers to head online to give their feedback. John F.T. Scott, president of CFIG, says, “This type of award is an affirmation that your customer service is exceptional and appreciated by your consumers. Since the process works by blind, unsolicited comment, it’s an incredibly positive statement about the culture that has been developed in Brent’s store.” “You can come up with all kinds of mantras and sayings or rules and regulations, but if they’re not engrained in your culture, it’s not sustainable long term,” says Battistelli. “I’m very fortunate to have a great management team and over the years we’ve built a fun and happy environment.”
To create that winning culture, Battistelli developed CAST, which stands for: • Consistency • Attitude • Service • Teamwork as the core values of the business. These four value pillars are in place to ensure that the store is exceeding customer expectations at all times with helpful, friendly service in a clean, well-stocked environment.
These values are introduced to each new employee during orientation and posted in the store as a daily reminder. “Brent has a very inclusive, warm management style,” says Scott. “His team knows and appreciates the confidence he places in them. The result is committed, loyal people who collectively contribute to the achievement of excellence in every aspect of the business.”
“You can come up with all kinds of mantras and sayings or rules and regulations, but if they’re not engrained in your culture, it’s not sustainable long term,” says Battistelli. April | May 2012
35
POWER Shelley Broader – President and CEO of Walmart Canada Corp.
“My style of leadership is much more about creating a real cabinet in which to run this business, instead of a house of representatives. We really run the corporation in a very collegial way.” Background: With more than 20 years of leadership
experience in the North American retail industry,
Broader has held roles in several top corporations
across the grocery and general merchandise sectors.
She began her career in the investment banking sector, advising clients in the U.S. supermarket
industry as a counsellor with the firms MFS of Boston
and First Albany Corporation. Broader had a 17-year
career with New England-based supermarket chain
Hannaford Bros., where she held a broad range of leadership roles, including president and CEO of
Sweetbay Supermarkets.
In 2008, Broader became president and COO of
Michael’s, overseeing the chain’s 1,000 U.S. and
Canadian stores and more than 12,000 employees. Prior to joining Walmart Canada in 2010 as chief
merchandise officer, Broader was the senior vice-president of the Sam’s Club South Division.
HOUSE Introducing Canada’s newest suite of top retail executives By Noelle Stapinsky
Background: Trius is a 53-year-old Spanish national who recently held a senior role at Carrefour, where he was the director of Europe and a member of the group’s executive board in charge of Belgium, Spain, Italy, Poland, Greece, Cyprus and Romania. Prior to Carrefour, Trius held senior executive positions at Walmart including vice-president for international operations, CEO for Brazil and Asia, and executive vice-president and CEO for Latin America. Trius has also held senior executive roles at Revco Drug Stores Inc. and Simago/Dairy Farm International. Education: Trius studied business and economics at the University of Barcelona, and received an Executive MBA from the Darden School of Business at the University of Virginia. He has also studied
at Harvard Business School of Executive Education and Ashridge Business School in the United Kingdom. Awards: He was named an Executive of Value in 2006 and 2007 by the Brazilian Retail Sector, and has received the Sam M. Walton Entrepreneur of the Year award. The Challenge: With the explosion of square footage that is about to hit the marketplace, Loblaw’s investments in IT and customer programs are timely and necessary to help it grow sluggish same-store sales and build traffic. With Loblaw’s renewed focus on service and a re-launched loyalty program in 2013, there’s an opportunity to regain its cachet with consumers who have been lured away.
Vicente Trius – President of Loblaw Companies Ltd.
Education: Broader holds a bachelor of arts degree in
communications from Washington State University.
Involvements: She is active in the Network of Executive
Women and the American Heart Association.
The Challenge: With the possible exception of food, Target will be a formidable competitor, particularly in fashion
and general merchandise. Walmart’s opportunity is to refocus on its fresh offering and retail execution.
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April | May 2012
“For me, leadership is about building a customer-first culture which means the customer is central to everything we do. It means a collaborative organization that cares. One that develops talent, sets challenging goals and provides the tools necessary to build a high-performance team.”
Dominic Pilla – President and CEO of Shoppers Drug Mart Corp. “The strength of our brand, the quality of our assets and the power of our value proposition, together with the dedication and commitment of our associate-owners and their teams at store level, have us well-positioned to confront the challenges and to capitalize on the opportunities in the rapidly evolving pharmacy marketplace.” Background: Pilla brings nearly 30 years of leader-
ship experience in the health-care and retailing
sectors, including community pharmacy, pharma-
ceutical distribution and sales management, special-
ty health networks, chronic disease management
and adherence, and health information technology. He also held a number of senior positions at
Petro-Canada during an 18-year tenure. From 2001 to
2011, he was the executive vice-president and COO at McKesson Canada, and was appointed president in
2007. Pilla also served as the president of Canadian operations for RNG Group Inc., a privately owned
Toronto-based company.
Education: Pilla has a bachelor’s degree of Engineer-
ing in Chemical Engineering from McGill University,
Montreal, Que.
Tony Fisher – President of Target Canada “We can’t assume that everything we do here in the U.S. will translate completely to Canada. We are confident that our brand will translate. We will be looking to understand the local nuances. That will be very important. I think the merchandising team has a lot to learn about what is relevant at each individual local level.” Background: Fisher began his career with
Target in 1999 as a business
analyst in Apparel and Accessories. Since
to his current role, Fisher served as
vice-president of merchandise operations.
In this role, he led the teams that launched
then, he has held several positions in
the first-ever business intelligence efforts
Strategic Governance Board, a member of the
assortment of Archer Farms and Market
drove strategic assortment and pricing
Health Innovation, a governor of the Marie-Clarac
where he was involved in the opening of
Involvements: Pilla is the chair of the GS1 Canada
Advisory Committee for the International Centre for Hospital Foundation, and chair of the board of the
Cancer Research Society. He is also a member of l’Ordre des ingénieurs du Québec.
The Challenge: Although Shoppers Drug Mart is a
grocery – including Target’s private-label
Pantry – and in merchandise planning,
Target’s first food distribution centres. Prior
across merchandising and marketing, and efforts through analytics and optimization. Education: Fisher has a bachelor’s degree
in marketing management and a minor in computer science from the University of
St. Thomas, St. Paul, Minn.
well-established player serving an increasingly aging
The Challenge: With 63 per cent of
around drug reform and associate relationships that
excitement is building. The retailer’s
demographic, there are continuing challenges
require management time at a moment when the retail environment is becoming very dynamic.
Canadians already aware of Target, the challenge will be to transfer the
secret sauce that makes its general-merchandise offering so compelling to its
fresh departments, where it will find the competition formidable.
April | May 2012
37
THE FUTURE IIS HERE
GROCERY INNOVATIONS AATIONS CANADA 2012 METRO TORONTO CONVENTION CENTRE WELCOME
OCTOBER 1 & 2 2012 HOME
British Food
London Calling
With the Diamond Jubilee for Queen Elizabeth II coming up in June and the 2012 London Summer Olympics in July, all eyes are focused on the U.K. Preparations for the onslaught of global visitors and attention are well underway. And with foreign trade talks wrapping up, businesses in the U.K. – particularly the food and drink sector – are ramping up for the opportunity to capitalize on such exposure.
The British Channel If a new trade agreement is established, the market will be wide open for retail opportunities.
Over the past two years Canada has been engaged in intensive negotiations with the European Union (EU) to develop the Comprehensive Economic and Trade Agreement (CETA). Trade has always been a major driver of growth for the Canadian economy and this new agreement is Canada’s most ambitious initiative yet – decreasing trade barriers, eliminating tariffs, creating a plethora of exciting opportunities for both sides of the pond.
“Britain is Canada’s biggest trading partner after the U.S. Not many know that,” says Ashley Prime, Director of Trade Canada, British Consulate-General Toronto. “In 2010 the entire trading relationship was worth $27 billion.” When the governments finally firm up the details of the trade agreement, “it will open up each other’s markets, which have been pretty much closed,” says Prime. “The CETA talks are about 90 per cent finished, but what’s left are the more difficult
By Noelle Stapinsky April | May 2012
39
British Food
categories. Agricultural products are remaining. It’s about the EU getting access to the Canadian dairy market which is a big want,” says Prime “And for Canada, for example, its access to the European wheat, beef and pork markets.” Gaining access to Canada’s highly protected dairy producers would be a big win for the U.K. given current quotas. Valerie Strand, a Toronto-based U.K. Trade & Investment Officer for food, drink and consumer goods, says that in the past importing meat from Europe was always heavily regulated and in the case of the U.K., restricted. But just last year, those regulations were changed and now the U.K. is able to export meat (with the exception of beef) and poultry. For U.K. companies, Strand says, “If you were making vegetarian or non-meat sauces or foods, you were fine (for the Canadian market). But now that the regulations on meat have been lifted, hopefully we’ll begin to see an uplift in interest on other processed meat products such as samosas, spring rolls and ready-to-eat snacks and meals” Welsh and English lamb producers have both visited the market since the regulations
were changed, but it’s still a little early to determine the popularity of these meat products among Canadian consumers. The products will likely be available in speciality stores and butchers and on the menus of high-end restaurants. This lamb will be a higher priced product but these U.K. lamb producers see this as a new opportunity and are investing in market visits and trade shows to meet with potential representatives Of course, one of the biggest challenges for smaller U.K. food producers is the cost of doing business overseas and the U.K.’s lack of funding via marketing boards to help promote their products. And in Canada they have to comply with the stringent labelling laws. But Strand says, “If they’re allowed to bring in different types of products from U.K. and Europe, it could influence the face of some of the grocers completely.” One of the benefits for retailers is that Canadians are already familiar with traditional British foods. But now that consumers are more adventurous, experimenting with ethnic trends and specialty foods, the interest is there and the U.K. is well positioned to meet those demands.
Dove Tale’s Best of Britain Just in time for Canada’s Victoria Day long weekend and, of course, in line with the Queen’s Diamond Jubilee celebration in the U.K., Dove Tale Connections has launched its very own Best of Britain promotion to spotlight its variety of British products. “With the Jubilee and the Olympics this summer, we thought that this would be an opportunity for us to put some energy behind our British products,” says Dominique Jacobson. “As such, we are offering
40
April | May 2012
our wholesale customers a wide range of British products and various incentives for them to participate.” Dove Tale has designed fun posters, such as “Keep Calm and Put the Kettle On,” and other POS materials, which it will also incorporate in its store locations in Ottawa and Mont Tremblant, Que. Special to this promotion, Dove Tale is offering some signature British products. “We’re offering one from a
company called Prestat, which is a chocolatier by appointment to the Queen,” says Jacobson. “They’ve done these gorgeous Jubilee bars with Union Jack retro wraps. The aesthetic of that Union Jack is really quite prevalent.” This promotion is giving Dove Tale an opportunity to showcase and test markets, while creating an opportunity for retailers to have fun and engage consumers during a season that doesn’t have a lot going on for retailers.
British Food
Exporting help from abroad When the U.K. government cut funding
our partners PS-8, we also run a
joined forces to help support the growth
Pavilions at major food and drink trade
for food and drink marketing, the industry
7.5%
In 2011, the U.K. exports of food and non-alcoholic drinks to Canada was $240.4 million, up 7.5% from 2010.
of U.K. exports.
Following the 2009 closure of Food
program of events including British shows around the world.
GB: What kind of opportunities do
From Britain (FFB), a government funded
you see for Canada and the U.K.?
drink sector, industry members funded
attractive and successful market for
Exporters Association (FDEA), a not-for-
and the large number of Canadians
marketing consultancy for the food and and formed the U.K. Food and Drink
profit organization focused on networking and offering advice and support on export matters.
Grocery Business magazine got in touch
with Elsa Fairbanks, director of the FDEA
to find out what opportunities they see in the Canadian market.
Grocery Business: Who are your
member companies and what kind of work does the FDEA do?
Elsa Fairbanks: Our members include
some of the U.K.’s best-known companies like Walkers Shortbread, Taylors of
Harrogate, Tyrrells Crisps as well as small companies new to exporting. Members offer help and support to other U.K.
exporters – some even host events at
their premises. We facilitate networking
amongst members through our website and special events. In conjunction with
EF: Canada has always been an
U.K. exporters given the historical ties with close ties to the U.K. – there are not many countries round the world where Yorkshire Puddings can be exported in large volumes.
GB: What food or drink products do
you think could greatly benefit Canadian retailers?
EF: We have some great new
producers starting to export – supplying healthy drinks and snacks, teas
and some fantastic bakery products.
We would be delighted to hear from Canadian retailers looking for something new.
GB: What are some of the challenges
the association has faced in terms of reaching overseas markets?
EF: We are fortunate that there has
never been a better time for the
export of British food and drink with exports of food and non-alcoholic drinks at an all time high of £12.15 billion in 2011. Including whisky,
exports were worth £18.6 billion. This is the seventh consecutive year of
record food and non-alcoholic drink
export growth. However there are still
many opportunities and challenges for U.K. food and drink companies, such as the economic problems in the Euro Zone which accounts for around
April | May 2012
41
Canadian FINAL stroke.pdf 1 27/04/2012 11:11:36
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For further information please contact: Toronto: 1-800-263-7054 Montreal: 1-800-363-2606 Calgary: 1-800-665-1298 Vancouver: 1-800-661-9655
www.treeoflife.ca
British Food 77 per cent of exports, and finding
their way through the legislative challenges posed by many
emerging markets like India and China.
GB: Are there key strategies the
association has in place for helping
U.K. companies reach other markets? EF: FDEA is currently focusing on
helping U.K. food and drink
companies gain access to the
salmon, cheese, biscuits, tea, snacks,
the FDEA would be a great
focusing on opportunities for
beer and non-alcoholic drinks, as
Fairbanks says they could even
massive Chinese market. We are premium food and drink in top
retailers and food service outlets – fostering links between specialist importers and retailers. Top
performing export products, not
surprisingly, include traditional British specialties like meat, smoked
sugar and chocolate confectionery, well as our ethnic food producers and new “traditional” British
products like Indian sauces and naan breads.
For any Canadian companies
looking for a way to connect to the British market and meet suppliers,
place to start for introductions. organize some meetings, if desired. And with such a
growing demand for ethnic
food on the retail front, the U.K. might just have the products you’re looking for.
CANADIAN IMPORTERS, DISTRIBUTORS & SUPPLIERS OF BRITISH FOOD & DRINK PRODUCTS A G Brown & Sons Ltd (Atlantic Canada only) Tel: 902 454 6407 Email: agbrown@agbrown.ca www.agbrown.ca Contacts: Mr Jim Brown, Vice President Brand/Product Cross & Blackwell: condiments Weston Ryvita: crispbread B Martin Sales And Distribution Tel: 905 454 0607 Email: brian@bmartinpromotions.com www.bnmartinpromotions.com Contact: Mr Brian Martin Brand/Product McWhinney’s: traditional Irish Pork Sausages Tayto: crisps from Northern Ireland Baxters Canada Inc. Tel: 905 813 8678 Email: john.sprowl@baxters.com www.baxters.com Contact: Mr John Sprowl, V.P. Finance Brand/Product Baxters: Canned soup Bedessee Imports Ltd Tel: 416 292 2400 Email: rayman@bedessee.com; invor@bedessee.com www.bedessee.com Contacts: Mr Rayman Bedessee, General Mgr; Mr Invor Bedessee, Sales Brand/Product Andrews salts Bells & Sons: castor, eucalyptus and almond oils Hacks: flavoured sweets Lifebuoy: soap Liquifruta: cough syrup
Lucozade: energy drink Marmite: condiment Pure Heaven: sparkling juice Reckitts Crown: laundry Blue Square Seven Seas: cod liver oil Tunnocks: caramel wafer biscuits Vimto: soft drinks Woodwards: Gripe Mixture Bottle Green Drinks Co (Canada) Inc Tel: 905 273 6137 Email: info@bottle-green.com www.bottle-green.com Contact: Mr Andrew James, Owner Brand/Product Bottle Green: Elderflower presse and various cordials Fever-Tree: Mixers C B Powell Ltd Tel: 905 625 4000 Email: cglaysher@cbpowell.com Contact: Mr Colin Glaysher, Executive VP Brand/Product Tate & Lyle: syrups Mamade: marmalade Typhoo Tea: teas (London Fruit & Herb Teas, Typhoo Teas, Ridgway Organic Tea) Kraft Canada (Cadbury Adams Canada Inc.) Tel: 416 441 5000 Email: john.phillipson@kraft.com www.kraft.com Contact: John Phillipson, V.P. Marketing Confectionery Brand/Product Cadbury Adams/Trebor Bassett: confectionery/chocolates Halls: cough drops Poulain: chocolate Schweppes: beverages
CLIC International Tel: 450 669 2663 Email: edgard@clicfoods.com www.clicfoods.com Contact: Mr. Edgard Eid, Vice President Brand/Product Pasco House: spices and herbs / pastes and sauces Dove Tale Collections Tel: 1 877 746 6698 Email: susan@dovetalecollections.com www.dovetalecollections.com Contact: Ms Susan Jacobson, President Brand/Product Mackays: Mrs Bridges preserves and condiments London Tea: teas Newby Tea: teas Fine Cheese Company: crackers and condiments for cheese Artisan Bakers: cheese crackers and biscuits Summerdown: chocolate and tea Chocco Mocca: drinking chocolate and chocolate bars Barts: spices Duchy Originals: biscuits, preserves, condiments and tea The Fresh Olive Company: Belazu Olives, olive oil, vinegar and tapenades Belvoir: fruit presses Choc on Choc: chocolates New York Delhi: VIP nuts peanuts Mr. Stanley’s: confectionery Rude Health: cereals Salty Dog: Darling spuds crisps Earl Grey: biscuits Dean’s: shortbread
Elco Fine Foods Inc Tel: 905 474 2400 Email: dhays@elcofinefoods.com Contact: Mr Dan Hays Brand/Product Barbers: crackers John West: canned fish Elite Sweets Tel: 905 790 9428 Extn. 22 Email: info@elitesweets.ca Contact: Ms Giovanna Dilallo, General Manager Brand/Product Cadbury: cakes Far-Met Importers Ltd Tel: 604 876 2241 Email: info@far-met.com www.far-met.com Contact: Ms Jodi McKinnon, Nat Sales Mgr. Brand/Product Anglessey Sea Salt Company: Halen Mon sea salt Maldon Crystal Salt Co.: Maldon. Tidman Crystal salt & pepper The Wiltshire Tracklement Co.: chutney, jelly, horseradish Bennett Opie Ltd: Opies sauces and misc. items G J Shortall Ltd Tel: 709 747 0655 / 1 800 499 5722 Email: shortalls@bellaliant.com Contact: Stephen Shortall, Managing Dir. Brand/Product Kempwrights: cream crakers Thomas Tunnocks: caramel logs, caramel wafers, tea cakes, snowballs
April | May 2012
43
British Food Glen Echo Fine Foods Tel: 416 255 5573 Email: Robert@glenechofinefoods.com www.glenechofinefoods.com Contacts: Robert Santen
Jan K Overweel Ltd. - HQ Tel: 905 850 9010 Email: ppelliccione@jkoverweel.com www.jkoverweel.com Contact: Mr Pat Pelliccione ext. 2231
Brand/Product Inverloch Dairy: Inverloch cheese, Drumloch, Gigha Fruit cheese Singleton’s Dairy: cheese
Jan K Overweel Ltd. - Western Division Tel: 604 464 4744 Email: mblink@jkoverweel.com Contact: Mr Meindert Blink
Husky Food Importers & Distributors Ltd Tel: 905 850 8288 ext 214 Email: nmattiace@huskyfoods.com www.huskyfoods.com Contact: Mr Nick Mattiace, Dir of Key Accounts Brand/Product Taylors of Harrogate: Yorkshire tea Haribo: gummies I D Foods Corporation - HQ Tel: 450 687 2680 Email: Dianed@idfoods.com www.idfoods.com Contact: Ms Diane Dault I D Foods Corporation - Central Division Tel: 416 679 0833 ext. 225 www.idfoods.com Contact: Ms. Caroline Way I D Foods Corporation - Western Division Tel: 604 942 6022 www.idfoods.com Mr Dominic Schiraldi, VP Sales Ont. & West Brand/Product Crosse & Blackwell: gourmet sauces and chutneys Camp Coffee: coffee and chicory essence Ryvita: crispbread Wilkin & Sons Ltd: Tiptree preserves Importations Tribeca Inc. Tel: 450 659 4312 Email: iaubert@tribeca-imports.com www.tribeca-imports.com Contact: Ms Isabelle Aubert Brand/Product Firefly: energy drinks Inform Food Brokerage Inc. Tel: 604 324 0565 Email: cjames@informbrokerage.com www.informbrokerage.com Contact: Craig James, CEO Brand/Product Fentimans: botanically brewed beverages
Jan K Overweel Ltd. - Eastern Division Tel: 514 494 9021 Email: ftrimarco@jkoverweel.com Contact: Mr Frank Trimarco Brand/Product Tuxford & Tebbutt: cheese (Stilton and other English specialty cheeses) Maso Importing Tel: 416 661 5629 Email: customerservice@masoimporting.com www.masoimporting.com Contact: Mr Shlomo Izchaki, President Brand/Product Belvoir: fruit farms Firefly: tonics National Importers Canada Ltd. – HQ Tel: 604 324 1551 Email: claudegauthier@nationalimporters.com Contact: Claude Gauthier, National Director of Sales National Importers Canada Ltd. – Eastern Office Tel: 905 791 1322 Email: josephtavares@nationalimporters.com Contact: Joseph Tavares, Sr. Director, National Brand/Product Twinings: tea Patak’s Foods: Indian Curry Sauces, pastes and chutneys Premier Brands Canada Ltd. Tel: 416 750 8807 Email: brianh@premierbrands.net Contact: Mr Brian Hicks, Managing Director Brand/Product Ashbury Confectionery: Waterbridge Occasions – chocolate toffee assortments Burton’s Biscuits: Cadbury chocolate cookies / Royal Edinburgh shortbread / Burton’s biscuits Tangerine: Waterbridge gums / jellies / Waterbridge Liquorice Allsorts Country Confectionery: Waterbridge All Gold Toffees and Fudges Glisten Confectionery: Waterbridge panned chocolate items Golden Casket: Private label sugar confectionery Elizabeth Shaw: chocolates liqueurs Famous Names : chocolates
Qualifirst Foods Ltd. Tel: 416 244 1177 Email: info@qualifirst.com www.qualifirst.com www.epicureal.com Contact: Ray Martin, Sr. Operations Mgr Brand/Product Anglessey Sea Salt Company: Halen Mon sea salt Maldon Crystal Salt Co.: Maldon. Tidman crystal salt & pepper The Wiltshire Tracklement Co.: chutney, jelly, horseradish Bennett Opie Ltd.: Opies sauces and misc. retail condiments Samora’s Fine Food and Gifts Tel: 905 760 8188 Email: samoras@rogers.com Contact: Lina D’Amico/Stephanie D’Amico Brand/Product Hawkshead Relish Company: preserves and relishes Red Hot Cuisine: curry seasonings Scott-Bathgate Ltd - Central Division Tel: 204 943 8525 Email: sales@scottbathgate.com www.scottbathgate.com Contact: Mr J C Burt Scott Bathgate Ltd - Western Division Tel: 604 946 8684 Contacts: Mr Angus MacDowell; Ms Carrie Duffield; Mr Mike Plawutski Brand/Product A L Simkins: Assorted travel candies Bristow’s of Devon: toffees Churchills: confectionery Walkers: toffee T McConnell Sales and Marketing Ltd Tel: 905 771 7300 Email: tmc@tmccsales.com Contact: Mr Graham McConnell, President Brand/Product Fox’s Biscuits: Private label “President’s Choice” (Loblaw) TFB & Associates Ltd - HQ Tel: 905 940 0889 Email: briddell@tfb.ca www.tfb.ca Contact: Mr Bob Riddell, President Brand/Product Aarhus Karlshamn UK Ltd: International Collection olive oils and English mustard A.G. Barr PLC: IRN-BRU soft drinks Campbell’s: shortbread Coles: Christmas pudding and sauces Colman’s: mustard Dorset Cereals: cereals and muesli Gardiners of Scotland: Gardiners fudge & toffees
Highland Spring: bottled mineral water International Fish: Rob Roy sardines and mackerel Kerry Foods: Greens Yorkshire pudding mix Kerry Foods: Pearce Duffs custard mix Lofthouse of Fleetwood: Fishermen’s Friend medicated lozenges Matthew Walker: Christmas puddings Nairn’s Oatcakes: oat crackers and biscuits Northern Labs: Goddards waxes and polishes (cleaning products) Premier Foods: Homepride and Batchelors sauces and dry peas Renshaw Napier: Scott’s James preserves and whiskey marmalades Simpkins: confectionery Stahly Foods: canned haggis Thornton’s: English toffee and chocolates Typhoo Tea : Ridgways organic tea Distribute Only Bottle Green Drinks: flavoured waters London fruit & herb tea Ma Made: marmalade concentrate Tate & Lyle: syrup and sugar Tree Of Life Canada, A Kehe Company Tel: 905 361 9429 Email: Helen.Pike@treeoflife.com Contact: Ms Helen Pike, VP Marketing Brand/Product Ambrosia: custards & puddings Bottle Green: drinks Coombe Castle: cheeses (including Wensleydale) Dairy Crest: Devon Cream Dubliner Blarney: Cheddar (Irish cheese) Green and Black’s: organic chocolate Ilchester: cheese Pilgrim’s Choice: cheese Robertsons: preserves Ryvita: crispbread Sharwoods: marinades, sauces, chutneys Tyrrells: crisps United Biscuits: Carrs Crackers, McVities biscuits W. Jordan: cereals Walkers: shortbread and biscuits Worldwide Specialty Foods Ltd Tel: 403 255 6262 Email: tjames@worldwidespecfoods.com Contact: Mr Tony James Brand/Product Ambrosia: custard, rice pudding Barrs: soft drinks IRN Bru Bottle Green: Elderflower Pressé United Biscuits: Carr’s crackers McVities Biscuits Dorset: cereal Fever-Tree: drinks Inverloch: cheese Marmite: condiment Nairns: oat cakes Scott’s: jams Shaw’s: pickles Thornton’s: confectionery Typhoo: tea
April | May 2012
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Congratulations
GRAND PRIX FINALISTS! TREE OF LIFE CANADA ULC Jordans Cereals
Tyrrells™ Hand Cooked English Potato Chips
DANONE CANADA
OIKOS, Greek yogurt
BURNBRAE FARMS LIMITED
Egg Creations™ French Toast Blend
DR. OETKER CANADA LTD.
Panebello Bakery Crust Pizza
JANES FAMILY FOODS LTD.
Janes Wild Sockeye Salmon Burgers
A. LASSONDE INC.
Oasis® Health Break CholestPrevent
SOLOFRUIT INC. Sorbet
April | May 2012
47
Food
DOLE PACKAGED FOODS COMPANY
NEW AGE MARKETING & BRAND MANAGEMENT INC.
Dole® Fruit'n Crisp™
Simply Delish Chunky Dips
POST FOODS
Great Grains™
CONAGRA FOODS CANADA INC. VH Steamers
Kraft Foods Canada
Cadbury Creme Egg Snack Cakes
OLYMEL L.P.
Flamingo® Shaved cooked turkey, no nitrite
LITTLE THAI FOODS INC.
Little Thai® Yellow Curry with Chicken and Jasmine Rice
NATURE'S PATH FOODS INC. Love Crunch™
SMUCKER FOODS OF CANADA CORP. Folgers® Full Awakenings™
Folgers® Gourmet Selections® K-cup Portion Packs Smucker's® Simple Blends™ Fruit Spread
48
April | May 2012
Food
MARS CANADA INC.
Snickers Peanut Butter
WESTON BAKERIES Multigo
New Wonder+™ Bread
Première Fournée de Weston Breads
KRAFT CANADA INC.
Cadbury Caramilk Secrets Chips Ahoy! Middles
Ritz Munchables Pretzel Crackers
SAPUTO DAIRY PRODUCTS CANADA G.P. Mozzarina® Di Bufala
PARMALAT CANADA
Astro Biobest Probiotic Drinkable Yogourt with Plant Sterols
AGROPUR FINE CHEESE DIVISION
Astro Original Yogourt
Crème of fine cheeses, OKA and Brie L'Extra
La Crème Cow™
Crème of fine cheeses, Champfleury
Black Diamond® Cheestrings® DHA
April | May 2012
49
100 Greeting Card Inventions and counting
Š 2012 AGC, LLC.
As Canada’s #1 greeting card company, we have delivered more new-to-the-world greeting card inventions to surprise and delight your shoppers than any other. To see our entire portfolio, contact Carlton Cards at 1-800-663-2273.
CARLTON CARDS
Continues to Innovate the Card Aisle to Meet Shoppers’ Needs
THE ALLAN CANDY COMPANY LIMITED Dessert Bites™
C
onsumers continue to rely on the greeting card aisle to do the very best job of helping
them to connect in a creative way that is still au-
OZERY'S PITA BREAK Crispy Pitas
thentic and meaningful. They depend on the category to help them celebrate the most important relationships and occasions in their lives. And they trust that they will always find the perfect card from the wide variety and unmatched selection available from Carlton Cards. As the industry leader in innovation, Carlton Cards continues to deliver the most relevant and exciting products to attract shoppers and keep
McCORMICK CANADA®
Club House Recipe Inspirations™
very latest technologies, the company is focused on incorporating the enhancements in a way that
PIMENTEL FOODS INC. Elite Hummus
them coming back. In addition to featuring the
truly extends the experience while also offering the perfect words for every sending situation.
MAPLE LEAF FOODS
Schneiders Country Naturals Hot Dogs
“Our latest inventions leverage the freshest
GENERAL MILLS CANADA CORPORATION MAPLE LEAF CONSUMER FOODS INC.
Chocolate Cheerios
Maple Leaf® Prime Naturally Chicken Breast Portions
ideas and most in-depth consumer insights in the industry to deliver greetings that offer a unique experience that can’t be found anywhere else,” said Jim Driscoll, Vice President Marketing and Retailer Logistics. “Many of these innovations are enhanced with original and patented technologies, including telescoping audio, interactive sound, intricate pop-up paper presentations coordinated with music and lights, techniques that allow characters to dance, bounce, shake, or hop, and much more to surprise and delight every recipient.” This year Carlton Cards will be introducing
DEL MONTE CANADA INC. Del Monte® Fruit Stripes
Del Monte® Refrigerated Fruit Cups
th
its 100 new-to-the-world invention as part of its continued effort to ensure constant freshness and excitement in the card aisle and it promises that there is much more to come.
Food
HAIN CELESTIAL CANADA Coconut Dream
Europe's Best Fruit Essentials
CANADA BREAD COMPANY, LIMITED Dempster's® WholeGrains™ Canadian Century Grains Bread
MAPLE LEAF FROZEN BAKERY Tenderflake Easy Pie!™ Kits
UNILEVER CANADA
GARDEN PROTEIN INTERNATIONAL
Magnum® Ice Cream
gardein™
ENERJIVE INC.
enerjive Quinoa Snack Crisps
LIBERTÉ
Liberté Greek Yogurt 0%
IN FOODS INC.
In Cuisin® Risotto
AGROPUR – NATREL DIVISION Natrel Dark Chocolate Milk Natrel Lactose Free Cream
52
April | May 2012
Food
PEPSICO
Trop 50® Vitamin Enhanced Juice Beverage
CONCORD SALES LTD Gusto della Casa
NESTLÉ CANADA INC.
AERO Peppermint Lamb Black Magic®
Nestlé and Häagen-Dazs Snacking Cups Nestlé Mini Drumstick
BEST BRANDS LTD.
St-Hubert Inspirations Soups
RICH PRODUCTS OF CANADA LTD. Jon Donaire® Ice Cream Cake
DARE FOODS LIMITED
Bear Paws Cereal & Fruit Crispy Baguettes™ Bites
McCAIN FOODS (CANADA)
McCain® Harvest Splendour™
McCain® Ultra Thin Crust Pizza Wong Wing Entrees, Lemon Chicken and Honey Garlic Pork
April | May 2012
53
Non-food
PROCTER & GAMBLE INC.
Bounce® Dryer Bar CoverGirl Natureluxe™ Silk Foundation COVERGIRL® LipPerfection™ Lip Color
Dawn® Ultra Concentrated Dishwashing Liquid Gillette® Fusion® ProGlide™ Shave Gel Head & Shoulders®
Herbal Essences Touchably Smooth™ Shampoo & Conditioner Olay® PRO-X ADVANCED CLEANSING SYSTEM Olay® Regenerist Night Resurfacing Elixir
Olay® Silk Whimsy™ Moisturizing Body Wash Old Spice® Fresh Collection Body Wash Pampers Cruisers with 3 Way Fit Secret® Natural Mineral
54
April | May 2012
Non-food
PROLAV SOAP INC.
Bio-Vert™ Hand Soap 2L Refill Bag
JOHNSON & JOHNSON INC.
POLYSPORIN® Cold Sore Healing Patch
CARLTON CARDS LIMITED Let Me Out™ Greeting Cards Ready, Set, Blow™
HONEY BUNNY INC.
Honey Bunny™ Organic Buzz Balm
CASCADES TISSUE GROUP, A DIVISION OF CASCADES CANADA INC. Cascades Ultra Bathroom Tissue
April | May 2012
55
French Toast BLEND
We’re raising a toast to being chosen as a Grand Prix Finalist!
We’re honoured to announce that our Egg Creations™ French Toast Blend is a new product finalist in the Canadian Grand Prix Awards. A source of 9 vitamins and minerals, this cholesterol and fat-free blend is a simple, convenient and delicious way to create a classic wholesome meal. And like all our products, it represents our ongoing commitment to innovation and nutrition to meet the evolving lifestyles and dietary requirements of Canadians. From all of us at Burnbrae Farms, we sincerely thank the Canadian Food Industry Judges for their appreciation.
SINCE
DEPUIS 1893
For more information, contact us at: 1 800 666 5979 or burnbraefarms.com
Non-food
AWARD-WINNING
innovation! SOLO CUP CANADA Solo Squared™ Kids Combo Pack
THE CLOROX COMPANY OF CANADA, LTD. Brita Bottle
2008 HEALTHY INNOVATION NEW PRODUCT 2008 ALL CANADIAN NEW PRODUCT OF THE YEAR 2008 THE DAIRY & EGGS CATEGORY AWARD 2008 INNOVATION & ORIGINALITY
A proud recipient of four Canadian Grand Prix Awards, our Naturegg™ Omega-3 Hard Boiled 2 Egg Snack Pack offers you and your customer a winning combination:
ABSORBENT PRODUCTS LTD. Litter Essence Litter Deodorizer
DLM FOODS CANADA CORP. Milk-Bone Minis
Nutrition, Great taste Convenience, More sales Increased margin potential At Burnbrae Farms, we’re dedicated to providing customers and retailers with wholesome options!
RECKITT BENCKISER CANADA INC. Lysol® No Touch™ Hand Soap
offer up a winner contact us today 1-800-666-5979 burnbraefarms.com
NESTLÉ PURINA PETCARE Purina ONE® SMARTBlend™
SINCE
DEPUIS 1893
Non-food
T-FAL (DIVISION OF GROUPE SEB CANADA INC.) T-FAL Nutricook
WHIRLPOOL CANADA LP
Affresh Stainless Steel Cleaners (Spray and Wipes)
TREE OF LIFE CANADA ULC ATTITUDE
FRANK T ROSS
Nature Clean Shampoo
UNILEVER CANADA
Degree Women Expert Protection with motionSENSE DOVE MEN+CARE® Anti-perspirant
S. C. JOHNSON AND SON, LIMITED Glade® Décor Scents™
Scrubbing Bubbles® One Step Toilet Bowl Cleaner
DOVE MEN+CARE® Deep Clean 2 in 1 Shampoo + Conditioner Nexxus Pro.Mend
April | May 2012
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Private label
CANADA SAFEWAY LIMITED
Eating Right Ancient GrainsTortillas with Chia
Eating Right White Bread with 14 Whole Grains Open Nature BBQ Sauce Open Nature Crisps
Open Nature Greek Souvlaki Marinade Open Nature Ice Cream
Open Nature Salad Dressing Open Nature Trail Mix
Priority Total Pet Care Multi-Cat Scoopable Litter Formula Safeway Select Tea
Safeway Ultra Advanced Laundry Detergent
Waterfront Bistro - Freshwater Prawn Skewers
60
April | May 2012
Private label
METRO RICHELIEU INC. Ice cream Limited Edition
Irresistibles Caramel Popcorn Irresistibles Dog Treats
Irresistibles Frozen French Fries Irresistibles Life Smart Nuts
Tomato Ketchup - Life Smart
SOBEYS INC.
Sensations by Compliments Certified
Sustainable & Responsibly Caught Seafood
WALMART
Our Finest Ice Cream
Sensations by Compliments Ice Cream 1.5L
April | May 2012
61
Profile
United Grocers Inc.
New mission for
established player After 40 years of service, United Grocers Inc. (UGI) is focused on a future that will reap even more benefits for its members
The UGI team, from left to right: Shay Baksh, Rocco Di Mascio, Denis Gendron, Anna Wickens, Kevin Hayes, Anita Young
By Noelle Stapinsky
That optimistic outlook is reflected in a new logo, website, and mission. Under its new mission, UGI is forging partnerships beyond its existing grocery activities to include suppliers of all business areas, fresh departments, and other store operation services. In other words, “any areas of activities where we can leverage the group volume to generate synergies, like equipment, both purchases and contract services, and operational expenses, such as mobile, courier, freight, and other costs,” says president Denis Gendron.
“ The UGI team has a dedicated group of people with one common goal: to generate benefits for its members.” “In the past, most of the activities were focused on the grocery categories,” explains Gendron, who became president last July. “When I joined UGI the members requested that I review other areas of the business where we can leverage our group size and volume as we’ve done with grocery items.” Success came early; UGI recently welcomed five new suppliers of equipment and services – DIGI Canada Inc., Hewitt Material Handling,
Nimbus Water Systems Inc., Plain and Simple uniform program, and Ronco Canada safety equipment and furniture – and continues to negotiate with others. Originally incorporated as United Wholesale Grocers Ltd. in 1972 by a western Canadian group of independent wholesalers who combined their buying so they could better compete with the large grocery chains, UGI today is a national procurement organization that represents key retailers across the country with a combined share of 34 per cent of the Canadian grocery industry. Besides buying on behalf of its members, UGI co-ordinates national brand promotions, preferred supplier arrangements, and privatelabel and seasonal procurement and promotions, as well as managing volume rebates from suppliers. While UGI may have a new mission, its focus remains unchanged. “The UGI team has a dedicated group of people with one common goal: to generate benefits for its members,” says Gendron. “It has been our goal for the last 40 years, and will remain so for the next 40.” To check out the new UGI website go to: www.ugi.ca
Meet Denis Gendron A 30-year veteran of the industry, Denis Gendron joined UGI as president in July 2011, replacing the recently retired Michael Marinangeli. Gendron cut his grocery teeth as a student working for the Steinberg chain in Montreal, taking the organization’s leadership development course and becoming a store manager. Eventually, Gendron joined IGA in Montreal, working in various capacities in merchandising and operations over the next 14 years. That was followed by a stint at Loblaw Cos. Ltd. in charge of merchandising in Quebec, adding the responsibility for the Maxi banner, upon Loblaw’s purchase of Provigo. After working at home-improvement chain RONA as director of its buying group, Gendron joined Metro Inc., with responsibility for merchandising. Prior to joining UGI, Gendron spent three years at Pareto Corp., a shopper marketing company, as vice-president merchandising, working with major retail chains and suppliers across the country.
April | May 2012
63
Night to Nuture
February 4th, 2012: The grocery industry gathered for a gala evening to raise funds for Kids Help Phone and Breakfast for Learning.
Sheryl Crow
Winner of the 2012 Ford Mustang Convertible, Jack Abiusi
Deborah and Gord Meyer, Kristie Dravenstott and Rick Dravenstott, Procter & Gamble
64
April | May 2012
Stilt Walkers
Night to Nuture
Duarto and Gabby Nobrega Breakthrough Communications and Consulting
David and Brenda Wilkes, Retail Council of Canada
Cheque Presentation to Breakfast for Learning
Blair and Barbara Ruelens, PepsiCo Foods Canada
John and Sue Violin - Irving Consumer Products with Sheryl Crow
Debbie and Mike Marinangeli, Dan Bordun, Karen James, Tina and Kevin Smith, Grocery Business
April | May 2012
65
list it
New products you need to know about!
Dole introduces New
Live Right Bites Dole introduces something truly new into the Granola Bar category – New Dole Live Right Bites. Each Bite contains real Dole fruit, and is made without artificial ingredients or preservatives. In fact, Dole Live Right Bites are the only product in the category that carry the Health Check symbol from the Heart and Stroke Foundation. www.dolecanada.ca
Going gluten-free with Mrs. Crimble’s Crackers Canbrands Speciality Foods has introduced new SKUs to the very successful Mrs. Crimble’s line of gluten free products. A top selling U.K. brand, Mrs. Crimbles are baked not fried and come in both sweet and savory flavours. www.canbrands.ca
Purring for Purina’s Indoor Delights.... Purina’s new varieties of indoor formulas for indoor cats have launched! These products are specially formulated to promote a healthy weight and help control hairballs. Indoor Delights will have wide appeal in a category that is growing quickly. www.friskies.com
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April | May 2012
Introducing
Equal® Sucralose In addition to the familiar blue packet, Equal® now offers Sucralose in two forms, packets for everyday sweetening of coffee, tea, and other drinks, and granulated, in a convenient 275g canister which measures cup-for-cup like sugar, making it suitable for cooking and baking. www.equal.com/canada
MECHANGER
Cedarlane brings its convenient meal solutions to Canada Popular in Whole Foods in the U.S., Cedarlane Natural Foods is launching its line of SAW IT organic burritos with several microwavable vegetarian options, and four innovative egg white omelettes in Canada this spring. A full menu of natural and quick-to-prepare Cedarlane items will be available by the end of the year.
Liked It!
www.cedarlanefoods.com
At Grocery Showcase West
Olisur Olive Oil Olisur Olive Oil has a mild, fresh flavour and with its traceable Chilean origins and reasonable price, it’s a healthy and affordable addition to the category. www.olisur.com
April | May 2012
67
it figures >
The Socially Conscious Consumer
67% Takeaway Not all consumers expect companies to care about social responsibility, but manufacturers and retailers can engage those who do care by investing in cause marketing that appeals to the right consumers, supports the right causes, and utilizes the right marketing channels.
33% April | May 2012
58% 60% Prefer to work for these companies
Only 33% say they are willing to pay extra for products and services from these companies.
Takeaway Canadians believe in supporting a worthy cause, but not if it’s going to cost them more at the checkout; they value social causes but demand value themselves.
68
67% of Canadian consumers say they prefer to buy products and services from companies that have implemented programs to give back to society. That preference also extends to other matters:
would invest in these companies
61% of Canadian respondents identified “environmental sustainability” as a cause companies should support. Takeaway One of the challenges of cause marketing is effectively reaching the socially-conscious consumer. In order for a customer to behave differently based on a brand’s social and environmental investments, they must first be aware of them. This preference for “environmental sustainability” may be a byproduct of successful extensive efforts already underway by brands to “green” their portfolios and associate themselves with this cause. Manufacturers and retailers can refine their cause marketing efforts by better understanding their customers’ social consciousness.
61%
The top social causes identified by Canadian respondents:
61% Ensure environmental sustainability
49% Support small business and entrepreneurship
47% Promote gender equality and empower women
Takeaway Not all causes are equal in consumers’ eyes. Social causes are deeply personal and formed through personal experiences in one’s life. There are innumerable worthy causes for brands to support, but effective cause marketing requires strategic prioritization. To maximize ROI on cause marketing efforts, companies need to identify the most relevant causes to their business and which causes resonate with their consumers.
42% Undertake development projects that benefit the communities around them
42% Improve science, technology, engineering, and math education
The Nielsen Global Survey of Corporate Citizenship was conducted in August/September 2011 and polled more than 28,000 consumers in 56 countries throughout Asia Pacific, Europe, Latin America, the Middle East, Africa and North America. For more information, contact Carman Allison, director of industry insights, The Nielsen Company, Canada.
Carman Allison
all stats co u rtes y: N ielsen
April | May 2012
69
Perry’s Point of View
The
Unhealthy Battle for Health In the face of stagnant food volume, grocers often pursue other categories to boost revenues. The most popular of these is the “Health and Wellness” category, which supermarkets have spent years trying to figure out. Commitments to the topic have wavered, often changing with company leadership, and almost always moving in an inverse relationship to the outlook for food. Food business looking tough? Hey, let’s try vitamins. Besides draining resources from the core business, the most fundamental problem for grocers is actually defining health and wellness. Are we talking HBA, or pharmacy, or natural foods, or gluten-free foods, or nutritional guidance, or fitness centres, or medical clinics or yoga mats? Everyone can agree that consumers are seeking healthier solutions. But how do grocers lever that into revenue, and do so profitably? A total commitment to “Health and Wellness” requires a comprehensive set of strategies that cross numerous functions, formats and silos. Larger merchants are notoriously cumbersome and prone to internal turf wars. So, by necessity, the drive must come from the very top of the company. Since executive agendas change almost as often as poultry prices (and, sometimes, because of poultry prices), grocers often try and take the easy route. That usually involves increasing the linear footage and ad space for HBA and natural products, and sticking to that strategy until, a few weeks later, the produc70
April | May 2012
tivity no longer justifies it. Then it’s back to square one. Recently, a new tactic has emerged: buying large blocks of pharmacy files as they become available, the most recent of which is the purchase of prescription files from Zellers by well-known supermarket operators. Notwithstanding that the biggest attraction of the Zellers files is that they were available, pharmacy files are theoretically a goldmine: thousands of new customers, all with health problems. By forcing them into the nearby supermarket pharmacy, grocers create a new vision of themselves as active players in health and wellness. After all, pharmacy is a locked-in growth category, with drug consumption rising by three per cent every year. Rx-driven traffic is frequent and guaranteed. There is a chance to extend into clinics, utilizing unproductive space for medical professionals. About half of clinic patients become new pharmacy customers. Supermarket and mass are theoretically a convenient one-stop-shop for consumers, and there might be a halo effect on the grocer’s overall health positioning relative to food. The trouble for grocers is that buying pharmacy files is the easy part. The acquirers must also invest resources to convert a high percentage of the disaffected patients, and then not disappoint them with standard
supermarket pharmacy service. They need to add high-priced labour to counters that are already tough to justify, and hope that new customers not only stay, but buy other items since prescription drugs get less profitable all the time.
A total commitment to health and wellness requires a comprehensive set of strategies that cross numerous functions, formats and silos. To the extent supermarkets pursue these patients as part of a long-term comprehensive strategy with subsequent and ongoing investment, there is a chance it could all work. But it is ironic that right next to the in-store pharmacy are thousands of healthy food products that could be better merchandised, better explained and promoted to address numerous consumer health concerns.
Perry Caicco is managing director at CIBC World Markets. He has worked for 15 years in the supermarket, general merchandise and packaged goods industries with Loblaw Companies Ltd. and Coca-Cola. Perry is a founding Grocery Business Advisory Board member.
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Interac, the Interac logo, “Everyday Simply� and the armoured truck design are trade-marks of Interac Inc. Used under license.
Introducing
NOW AVAILABLE 6 stylish designs Premium 3-ply facial tissue 8 packs shipped in display-ready cases Attractive dispenser provided for single packs
Š 2012 Kruger Products L.P. Ž' used under licence.