September/October 2015

September / October 2015 Vol 5 | No 5 $9.95

Calgary Co-op’s

PM # 42211029

Ken Keelor Perry Caicco: It’s a 3G World

+produce MANAGER

Grocery Business September | October, 2015 Volume 5, Number 5

contents

Mariano’s flower market, Chicago, Illinois

DEPARTMENTS 8

Front End

66

Launch It, List It

70

It Figures

38 4

September | October 2015

People & News

72

Perry’s Point of View It’s a 3G World

New & now discoveries

Innovate, inform, interact

64

ON THE COVER

Hero 51 Local Calgary Co-op’s Ken Keelor

51 65 FEATURES

PHOTO GALLERIES

13 The New

64 Food & Consumer

HMR Department

14 High Stakes in Food Safety

17 The Evolution of CPG Growth

27 31 Simply Fresh…

Products of Canada Invitational Charity Golf Tournament

Always!

34 PMA Fresh Summit – Global Connections

65 DCI Supplier

35 Schedule-at-a-

Appreciation Dinner

Glance

57 The TransPacific

38 Mucci Farms:

Partnership and Supply Management

Green & Growing

49 The Power of

59 CFIG’s Call to Action 60 National Grocers

Association Financial Survey

62 Mariano’s Fresh Market

Produce

49

COVER PHOTO: BRIAN HARDER

grocerybusiness.ca

September | October 2015

5

© 2015 POM Wonderful LLC. All Rights Reserved. POM, POM WONDERFUL, POM POMS WONDERFUL, the Bottle Design and the accompanying logos are registered trademarks of Canada Bread Company, Limited, and used by POM Wonderful LLC under license. PF13865

It’s P∂M Time!

At P∂M, we believe fall is the most W∑nderful time of the year. Especially if your produce department is fully stocked with P∂M P∂MS, P∂M Wonderful 100% Pomegranate Juice and P∂M Wonderful fresh pomegranates. All three will be supported with a national marketing campaign, including in-store POS, promotional support and public relations! To help sweeten your season, our tasty trio will be supported by the biggest merchandising team in produce.

Get ready. It’s gonna be P∂M time all the time.

Order your P∂M display bins now at CustomerService.POM@Wonderful.com or contact your local W∑nderful Sales representative at 877.328.7667.

Front End ON LOCATION

Transitions customer strategy and category sales, at Nestlé Canada.

Empire Company Limited has announced that David F. Sobey, Chair Emeritus, Sobeys Inc., and Donald C.R. Sobey, Chair Emeritus, Empire Company Limited, are retiring from the Empire board of directors. Through his career with the family business, David Sobey (pictured, left) has served as chairman and CEO of Sobeys from 1986 to 1995, and chairman from 1995 to 2001. Donald Sobey has served on the Empire board of directors since 1963, and was appointed president of Empire in 1969 and chairman in 1985.

Carlos Piani (pictured) has been appointed Zone President of Canada for the Kraft Heinz Company.

Piani most recently was CEO of PDG, a growth-driven portfolio company focused on real estate. Piani’s new leadership team for Canada includes: Brian Arbique, head of sales; Mark Ayer, head of foodservice; and Tony Matta, chief marketing officer. Tim Berman, president of Kraft Canada, will retire in December after more than 30 years with the company.

Steve Morris was recently promoted to general manager and vice-president, sales, at Nestlé Waters in Toronto. Morris previously was vice-president,

8

September | October 2015

Eric Elmhirst was promoted to president and CEO of Arla Foods Canada Inc., from vice-president, sales and marketing.

Prior to joining Arla Foods in 2006, Elmhirst’s career included management positions with Kraft Foods Group, Weston Foods (Canada) Inc., Nabisco Brands Ltd. and J.M. Schneider.

Isabel Morales, an executive analyst at Nielsen, on holiday in Croatia with her issue of Grocery Business.

PepsiCo Foods Canada (PFC) has promoted Jason McDonell to the position of president, succeeding Marc Guay, who retired on August 7, 2015. McDonell joined Pepsico 17 years ago, and previously was vice-president of field sales. Guay joined PepsiCo in 1986 as a national account manager, and was appointed president of Frito Lay Canada in 2001 and PepsiCo Foods Canada in 2008.

Pietro Satriano (pictured) is the new president and CEO of US Foods, succeeding John Lederer, who was president and CEO for five years.

Satriano joined the company in 2011, and was previously chief merchandising officer. He is a former executive vice-president of Loblaw Brands. Lederer previously was president of Loblaw Companies Ltd.

Metro wins Excellence in Retailing Award Congratulations to Metro Inc.’s Environment Team, which was recognized by the Retail Council of Canada with the 2015 Award of Excellence in Retailing in the Environmental Leadership category. Their winning project is an organics recycling program that helps reduce the environmental footprint of Metro’s Quebec and Ontario stores.

Pictured (l-r): Éric Gladu, director, Metro; Vanessa Bonanno, Metro; Andrew Siegwart, Retail Council of Canada; and Alexis Fortin, Metro.

Front End

SOBEYS DEBUTS CHALO! FRESHCO SOUTH ASIAN DISCOUNT CONCEPT Sobeys Inc. has introduced Chalo!

FreshCo, a new concept store in Brampton, Ont., providing customers with a one-stop shop for all their South Asian grocery needs.

Chalo, meaning “let’s go” in South Asian languages, is the company’s first South Asian-focused discount grocery store.

“Chalo! FreshCo is a significant and unique addition to our company’s food retailing lineup,” says Rob Adams, general manager, discount format, Sobeys Inc. “This store caters to the South Asian market while also driving our mission to inspire Canadians to discover new foods, products and recipes.”

The 50,000-sq.-ft. store offers thousands of South Asian grocery products, such as a wide assortment of rice, spices, lentils and snacks; fresh produce; full-service seafood, halal and non-halal meat counters; Amaya, a popular Indian restaurant; as well as the traditional FreshCo product offering with a large range of North American brands at low discount prices.

“Our research indicates that many South Asians visit multiple grocery stores each week to fulfill their food shopping needs, from traditional grocers to small, specialty stores for specific products,” Adams says. “Now, they can find the popular and unique products they regularly look for and enjoy in one convenient location.”

GROCERY INNOVATIONS CANADA With a theme of “Connecting the Industry,” Grocery Innovations Canada 2015 is introducing a new look, new location and more innovations.

For the first time, GIC will offer exhibitors the option to sell on the floor via “Trade Show Specials” that can take various forms, such as special price, in-ad coupons, unique merchandising packs, reduced minimums or free shipping.

The show is also offering eight new pavilions focused on high-growth categories, including health and wellness, HMR and foodservice, and craft brewers.

Grocery Innovations Canada show and conference takes place September 28 and 29, 2015, at the Toronto Congress Centre. For more information, visit cfig.ca/grocery-innovations-canada.

Allison George, Argyle Communications

USDA Parapan Am Games Reception The U.S. Foreign Agricultural Service hosted a tasteUS! reception to mark the opening of the Parapan Am Games in Toronto. U.S. Ambassador to Canada Bruce Heyman and his wife Vicki welcomed their guests to a feast of U.S.-sourced foods, craft beer and wines.

grocerybusiness.ca

U.S. Ambassador Bruce Heyman and Vicki Heyman; Jeff Zimmerman, Maria Arbulu, U.S. Foreign Agricultural Service

U.S. Ambassador Bruce Heyman; Karen James and Dan Bordun, Grocery Business magazine

Rick Slomka, Wine Institute of California

Jeffery Johnson, State of Illinois office

September | October 2015

9

Front End

Mike Lovsin

Joe Weber

Freson Bros.’ Mike Lovsin, Saputo’s Joe Weber named CFIG Life Members

Trailcon Leasing opens state-of-the-art facility

The Canadian Federation of Independent Grocers (CFIG) is honouring the career achievements of Mike Lovsin of Freson Bros. and Saputo Canada’s Joe Weber.

Mike Lovsin, chairman of Freson Bros. in Stony Plain, Alta., will receive CFIG’s Life Member Award in the Independent Grocer category. Lovsin joined the family business following his university studies. He was active in Alberta’s Independent Retail Grocers’ Association, and then in the late 1990s, brought Freson Bros. into the CFIG fold. He has served on a number of CFIG committees as a board member (1999-2005) and board chair (2003-2004).

Joe Weber, senior vice-president, retail sales, at Saputo Canada, will receive CFIG’s prestigious Life Member Award in the Industry Builder category.

Born in Vancouver, Weber is a graduate of Simon Fraser University. Following graduation, he joined Nabob Foods in 1985, where he held increasingly senior positions in Vancouver, Edmonton and Calgary. In 1994, Weber joined Dairyworld Foods, which was later acquired

by Saputo Canada. Weber is also a past chair of the CFIG Associate Members’ Council.

Trailcon Leasing has opened a 30,000-sq.-ft., $22-million facility in Brampton, Ont., that more than triples the size of the company’s previous site.

“Having set our sights on additional expansion across Canada, we have custom-built this new facility to accommodate growth,” says president and company founder Al Boughton.

The 15-acre property can accommodate 400 trailers, strategically grouped for ease of access and quick release. Since its inception in 1992, Trailcon has expanded to service many of Canada’s largest grocery and retail chains.

Open Mike will return next issue

September | October 2015 Volume 5, Number 5

Co-Publisher and Executive Editor Karen James 416-561-4744 KarenJames@grocerybusiness.ca

Executive Vice-President Content and Market Development Dan Bordun 416-817-5278 DanBordun@grocerybusiness.ca Contributing Editors Angela Kryhul, Sally Praskey Contributors Thomas A. Barlow, Perry Caicco, Laurie Demeritt, Mary Del Ciancio, Kevin Fiori, Ron Lemaire, Mary Kay O’Connor, John F.T. Scott, Meaghan Smith

Co-Publisher and Content Director Kevin Smith 416-569-5005 KevinSmith@grocerybusiness.ca

10

September | October 2015

Creative Agency Boomerang Art & Design Inc. boomart.net Subscription changes & updates or general inquiries: info@grocerybusiness.ca Grocery Business Advisory Council Shaun McKenna, Acosta Sales & Marketing Thomas A. Barlow, Canadian Federation of Independent Grocers

grocerybusiness.ca

@grocerybusiness

Tim Berman, Kraft Heinz Co.

© Copyright 2015. All rights reserved.

No part of this magazine may be reproduced without written permission Mike Longo, Longo Brothers Fruit Market of the publisher.

Michael Marinangeli, MIDEB Consulting Inc. GST Registration No. 83032 6807 RT0001 Darrell Jones, Overwaitea Food Group Publications Mail Agreement No. PM42211029 Cheryl Smith, Parmalat Canada ISSN 1927-243X David Wilkes, Retail Council of Canada Mailing Address Cori Bonina, Stong’s Market Grocery Business Media 390 Queen’s Quay W., PO Box 40085 Toronto, ON M5V 3A6 Mark Ayer, Kraft Heinz Co.

Perry Caicco, CIBC World Markets Nancy Croitoru, Food & Consumer Products of Canada

Sign up for our weekly digital edition at

grocerybusiness.ca

Front End

SALES & MARKETING AGENCIES CROSSMARK downgraded by Moody’s Moody’s Investors Service has downgraded Crossmark Holdings, Inc.’s, Corporate Family Rating and changed the rating outlook, from stable to negative.

Crossmark’s Probability of Default was also negatively impacted.

The downgrade of the company rating reflects the rapid deterioration in its credit metrics following the largely debt-financed 2013 acquisition of Marketing Werks, Inc. “Marketing Werks was intended to

complement and enhance Crossmark’s existing capabilities within experiential marketing; however, weaker-than-expected revenues from this business, coupled with incremental costs associated with this and other recent acquisitions, are pressuring operating profitability,” according to Moody’s report.

“Adding to the risk of shareholder-friendly financial policies under private equity ownership are a number of recent senior

BRENT SCOWEN NAMED PRESIDENT OF ACOSTA CANADA Brent Scowen is the new president of Acosta Canada. Scowen has held senior leadership roles in both the CPG world with Campbell’s and Ocean Spray, as well as the financial services industry with CSI Global Education. Scowen’s early career included time with both Danone and Cadbury Beverages. Prior to joining Acosta, Scowen was vice-president, customer experience, with Cogeco Cable.

management changes, which introduces uncertainty around the near-term ability to improve operating performance, as well as future growth strategies.”

The negative rating outlook, says Moody’s, “reflects our view that the company’s ratings will remain under pressure, because of its elevated debt leverage and declining profitability.”

Mosaic acquires Escalate Mosaic, the sales and marketing arm of Acosta, is expanding its experiential marketing services in North America through the acquisition of New Yorkbased Escalate.

“Escalate is one of the U.S. market leaders in creating brand advocacy through experiential marketing,” says Jeff Rogers, president, Mosaic. “This acquisition increases our footprint and allows us to offer expanded services to clients across North America.”

For clients of both agencies, the acquisition provides access to integrated marketing services under one roof.

Golden Pencil Awards 2015 Art Smith, Gus Longo and Jean Gattuso The Food Industry Association of Canada is honouring three industry trailblazers with 2015 Golden Pencil Awards: Arthur Smith, founder and CEO, GS1 Canada; Gus Longo, founder, Longo Brothers Fruit Markets Inc.; and Jean Gattuso, president and CEO, Lassonde Industries Inc. Arthur (Art) Smith’s contribution to the industry spans more than 40 years. He founded GS1 Canada, a not-for-profit organization dedicated to fostering the continuous development and adoption of global commerce standards.

grocerybusiness.ca

Gus Longo, together with his two brothers Tommy and Joe, Arthur Smith, Gus Longo and Jean Gattuso built Longo Brothers Fruit Markets director. As president and CEO of Lassonde Inc., an Ontario grocery chain that Industries Inc., Gattuso has guided the today employs over 5,500 team members. company into a leadership position in the While the focus of Longo’s is an unparalleled North American beverages market, with sales offering of fresh food, quality, service and totalling more than $1.1 billion. value, there is an unwavering commitment to The 2015 Golden Pencil Awards giving back to communities through the ceremony will take place on Monday, Longo’s Family Charitable Foundation.

November 23, 2015, 5 to 7 p.m., at the Jean Gattuso started his career 35 years Fairmont Royal York Hotel, Concert ago with Standard Brands, and in 1987 Hall, Toronto. joined A. Lassonde Inc. as marketing

September | October 2015

11

Front End

In Memoriam Frank Fitzgerald On August 15, 2015, Frank Fitzgerald, 56, passed away suddenly in Newmarket, Ont. Born in Sydney, N.S., Fitzgerald was a 30-year food industry executive whose career included executive roles at companies such as General Foods and Kraft Canada.

Ian Bryans Ian Bryans was a well-known personality in the grocery industry, with a long career at companies that included Nielsen, Alberto Culver, Reckitt Benckiser and Crossmark. Bryans passed away peacefully on August 1, 2015, in his 63rd year.

“ FCC is key to our company

growing.”

Meb Gilani, President, Gilani Group Food Processing and Distribution

Let’s talk business Work with the leading lender to agriculture, agribusiness and agri-food in Canada. fccfinancing.ca

1-855-230-6821

Toonies for Tummies launches 2016 campaign The Grocery Foundation is kicking off its 2016 Toonies for Tummies campaign with a number of new initiatives.

“The upcoming campaign will once again bring value and profile to the sponsors and our retail partners, but we’ve gone even further this year with a concept that will help shape the landscape and the discussion long after the campaign window is over,” says the Foundation’s executive director Michelle Scott.

The Toonies for Tummies campaign takes place February 4-18, 2016, and will be supported by social media and PR, as well as editorial support and amplification via divine.ca and webSaver.ca.

Be Prepared

The New HMR Department

By Rich Rotzang

In the recent past, the produce department was similar to a farmers’ market – full of fresh, whole fruits and vegetables sold in bulk. But as consumers sought convenience, purchasing prepared foods in supermarkets became more prevalent, and produce suppliers saw an opportunity to update their fresh offering.

Today’s produce department offers a wide array of pre-cut vegetables, bagged salad kits, dressings and other ancillary products that are meant to complement a store’s other fresh offerings. In reality, the produce department has evolved into a fresh HMR department. This new produce/HMR hybrid has become a destination for consumers looking for fresh ready-to-eat meals or freshly chopped and prepared ingredients to eat at home.

And grocers may believe they are meeting the needs of their customers but, in fact, the consumer has evolved and expects to find restaurant-quality salads at their local grocery store. So rather than being satisfied with just Caesar or mixed-green salads, they are now seeking fresh meals with ingredients such as fresh roasted vegetables, grains, or legumes – think candied pecans and roasted sweet potatoes on a bed of kale.

grocerybusiness.ca

So what’s a retailer to do? Preparing these more innovative salads in-store may require hiring staff with chef’s training and the purchase of specialized equipment. With additional food-safety procedures and the need for oversight, it quickly becomes apparent why stores have limited their variety of made-in-store salad offerings.

Luckily for grocers, a cost-effective solution is readily available.

If your store already offers higher-end deli salads and prepared foods, you are probably working with a vendor who is supplying your store with bulk-sized kits or individual components. This supplier is the key to creating the more sophisticated, expanded offerings your customers are looking for.

Sourcing new and more exciting items, a reputable supplier will work with your produce team to develop a customized product line that complements your established offering.

With the recipes developed in advance and the ingredients delivered ready-to-use, your produce team need only be responsible for in-store assembly and merchandising. No additional washing, chopping or extra labour required – just fresh, safe and beautiful salads ready for your customers to enjoy.

And with convenience-seeking consumers already in your store and looking for fresh, interesting meal solutions, you have a unique opportunity to fill a need while increasing basket ring.

But be aware, this consumer is evolving quickly, and research shows that, while still seeking convenience, they are beginning to cook at home more often. Produce managers with a view to what’s next will take this opportunity to position their departments as the go-to spot for inspirational, fresh, and ready-to-assemble ingredients.

Rich Rotzang is senior director, marketing and communications, Tiffany Gate Foods.

Contact Rich at rich@tiffanygate.com

Tiffany Gate Foods designs and manufactures fresh gourmet salads, prepared foods, soups, dressings and other Home Meal Replacement solutions in complete kits or as individual components.

September | October 2015

13

FOCUS ON: Safe Food

HIGH STAKES IN

FOOD SAFETY Mary Kay O’Connor Vice-president, Education, IDDBA

If, as the proverb goes, cleanliness is next to godliness, an immaculately kept supermarket is divine – at least in the eyes of its customers. With consumers’ hyper-focus on health and wellness, expectations around hygiene have never been higher. To help retailers navigate best practices and access the latest technologies, the International Dairy, Deli, Bakery Association (IDDBA) has released a groundbreaking study titled High Stakes of Food Safety in Dairy, Deli, Bakery & Prepared Foods.

With Canada embarking on a review of its Safe Food for Canadians Act, we reached out to Mary Kay O’Connor, vice-president, education, at the IDDBA about food-safety trends, tools and technologies.

What is the biggest trend in food-safety compliance?

Transparency, both at the corporate and store level, is big, as are prevention-based controls.

IDDBA research has found that Millennials, in particular, take a big-picture view when deciding what to buy and from whom.

Authenticity and transparency are paramount when trying to connect with this cohort.

14

What are some of the key findings from your recent study High Stakes of Food Safety in Dairy, Deli, Bakery & Prepared Foods?

Almost 34 per cent of consumers indicated that they’ve left a messy or unclean store.

Shoppers are pickier about food safety within the dairy-deli-bakery environment. So this is very much about risk management, streamlining business practices and supplychain visibility.

And in the U.S., the new Food Safety Modernization Act regulations will have far-reaching implications for retailers and vendors, and will hold CEOs to a higher level of culpability.

Given how important food safety is, what resources has IDDBA made available to retailers?

IDDBA staff are very involved and knowledgeable about keeping our members informed of new developments.

One of the key reports and programs we offer members is The Food Safety Certification Reimbursement Program, whereby IDDBA will reimburse members up to US$2,000 annually against their food-safety certification (for manager and associates) testing fees.

This program is open to all IDDBA members as part of their membership fee. We’ve helped certify over 6,400 employees, and would definitely like to work with more retailers to increase that number.

We actively promote this program at our own events as well as at SIAL Canada and Grocery Innovations Canada.

Tell us more about IDDBA’s training programs.

We offer a broad array of programs on everything from listeria awareness (a current focus of ours, given several highly publicized outbreaks), to implementing a traceability program, to deli slicer cleaning.

The training is free and easily accessible through digital and print means.

How can retailers track employee compliance?

Technology is offering up interesting, new digital applications that provide transparency for managers.

For example: • By using RFID-chip-embedded name badges and smart soap dispensers, managers can track, via a computer dashboard, whether associates are washing their hands at appropriate times. And associates receive “reminder” chirps when leaving the restroom or taking out the trash.

• New-wave technologies include environmental sterilizing systems that scrub the air and food contact surfaces.

There are also packaging innovations that show whether food has gone through temperature abuse.

September | October 2015

Choices Markets store, South Surrey, British Columbia

P H O T O S : R O B E RT K A R PA

60%

said supermarkets command the top spot as the most trusted channel for food safety

83%

39%

of consumers will shop at a supermarket only if the service areas appear clean

will spend more in a store with superior practices

Pristine areas where food is handled

Spotless floors and washrooms

High Stakes of Food Safety in Dairy, Deli, Bakery & Prepared Foods

What says

“CLEAN”

Food handlers washing their hands and changing gloves in full view

to consumers?

High grade from a food-safety inspector posted for customers to see grocerybusiness.ca

A special consumer research report prepared for IDDBA

by Phil Lempert Supermarket Guru®

Food handlers wearing hair-restraint devices and clean uniforms at all times

High Stakes of Food Safety in Dairy, Deli, Bakery & Prepared Foods is available free to the industry.

For more information on the extensive resources IDDBA offers, visit iddba.org

September | October 2015

15

NEW Philadelphia cream cheese product sizes are providing consumers with the right size and value

227g available in all varieties • Bundling opportunities during key seasonal period (focus on 227g with Brick and Whipped)

340g with best feature pricing • Expand consumption with higher volume consumers

450g best value/gram • Help generate strong retailer profit

Whipped cream cheese product performance soars with new look and size • Positioned on toast which expands usage occasions • Line priced to Philadelphia Soft 227g and new graphics help breakthrough on shelf • 65% Sales growth on average since April re-launch1

Philadelphia brings the heat with new Jalapeño cream cheese product!

• Bring new users into the category and capitalize on spicy trend - Jalapeño flavored SKUs growing 30% YOY2 • Available in 227g and 340g format, aligned to new Philadelphia sizing

Philadelphia Dips stands out with new, modernized packaging • Leverage Philadelphia’s branded share leadership in the Refrigerated Non-Mediterranean Dips category • Philadelphia Dips is growing YTD +5% in Sales Dollars3 driven by NEW 340g size • Opportunity to bundle Dips with Soft and Brick Nielsen NATXNFLD GB+DR+MM Period from 23 MAY 15 to 25 JUL 15 Nielsen Strat Planner, All Outlets, Excluding Retailer Brands, 52WE 042614 Nielsen, NAT XNFLD GB + DR + MM, ‘TL KRAFT MFR RFRG NON MEDIT DIPS, $ Shr, Unit SPPD (TDP), L52 weeks ending 27 September 2014.

1 2 3

AT A PREMIUM:

The Evolution of CPG Growth

By Laurie Demeritt, CEO, The Hartman Group

Over the past three years, the pace of mergers and acquisitions among consumer packaged goods (CPG) companies in the premium-quality food and beverage sector has accelerated faster than at any other time in the industry’s history. Some CPG companies are recognizing that emerging premium brands are, on average, far outperforming legacy ones in driving sustainable growth.

At the same time, all this upmarket acquisition activity is beginning to raise questions across the spectrum of CPG companies. Questions such as: • Should I be investing or buying?

• How much of the grocery store is really at play?

• How do I manage early-stage premium brands for long-term growth?

Interestingly, important insights about the premium market are often available to CPG companies. But too often, they bypass the senior management level and enter the building via wellintentioned consumer-insights stakeholders who

are ensconced, if not trapped, inside marketing organizations that support legacy brands above all other lines of business.

As a result, important information is not readily available to staff in corporate strategy roles, creating a disconnect between those who have the information and those who most need to be in touch with this high-growth area.

To capitalize on the growth of premium categories, senior management needs to be aware of what opportunities the data presents, and realize that the premium marketplace should be tracked at a much higher organizational level.

% Share of Category

33%

YOGURT

27%

BARS COFFEE COOKING SAUCE PASTA SAUCE

20% 18% 16%

*U.S. data, and excluding private-label products

The Hartman Group is an industry-leading research company working with clients to develop successful marketing strategies. For more information, visit: hartman-group.com

Number of Premium Acquisitions by CPG Companies

2011 2012

3

What are the keys to developing a premium strategy?

2013

1.

2.

3.

Medium to long-term vision is required

Not viewing premium trends solely as tools to grow legacy businesses

Owning the fact that premium is a C-level and corporate strategy area

grocerybusiness.ca

Top 5 Premium Product Categories*

6

5 2014

7

September | October 2015

17

LegaL Notice

If you accepted Visa or MasterCard credits cards as payment for goods or services after March 23, 2001, your rights could be affected by proposed national class actions settlements with Bank of America, Capital One and Citigroup.

The Credit Card Actions Class action lawsuits were commenced in British Columbia (the “BC Action”), Alberta, Saskatchewan, Quebec and Ontario (collectively, the “Credit Card Actions”) against Visa Canada Corporation (“Visa”), MasterCard International Incorporated (“MasterCard”) and certain banks which issue credit cards (“Issuing Banks”) alleging each of Visa and MasterCard conspired with their issuing banks and Acquirers in setting the amount of interchange fees and imposing rules restricting merchants’ ability to surcharge or refuse higher cost Visa and MasterCard credit cards (“Acquirer” is an organization or person that entered into a contract with a merchant for the provision of Visa Credit Card or MasterCard Credit Card services and charging Merchant Discount Fees, including Interchange fees in Canada). On March 27, 2014, the BC Action was certified as a class proceeding as against all defendants. This decision is currently under appeal.

The Settlements Although Bank of America Corporation and BofA Canada Bank, formerly MBNA Canada Bank, affiliate of Bank of America Corporation (collectively, “BofA”), Capital One Bank (Canada Branch) and Capital One Financial Corporation (collectively, “Capital One”) and Citigroup Inc. (“Citigroup”) deny liability, they have each reached national settlements with the plaintiffs (respectively, the “BofA Settlement”, the “Capital One Settlement”, and the “Citigroup Settlement”, or collectively, the “Settlements”), subject to approval of the courts in British Columbia, Alberta, Saskatchewan, Quebec and Ontario (the “Courts”). BofA will pay CAD $7,750,000, Capital One will pay $4,250,000 and Citigroup will pay $1,630,000 (collectively, the “Settlement Amounts”) for the benefit of the Settlement Class Members (see below) and provide cooperation that will assist with prosecuting the ongoing actions against the non-settling defendants in exchange for a full release of claims against them and their related entities.

If any of the Settlements are approved, the Class Lawyers will ask the Courts to approve the deduction of certain amounts (collectively, the “Court Approved Expenses”) from the Settlement Amounts, including costs incurred to distribute this notice and process opt-out requests, comments and objections (see below), a counsel fee of up to 25% of the recovered amounts, and disbursements.

As the Credit Card Actions will continue as against the other defendants, it is proposed that the amounts remaining from the Settlement Amounts after deduction of all Court Approved Expenses be held in trust for Settlement Class Members pending receipt of further settlements or awards that may justify a distribution effort, or conclusion of the Credit Card Actions. At such time, a distribution protocol will be created and submitted to the Courts for approval, and further notice will be provided to Settlement Class Members.

If you would like to receive direct notice of any distribution efforts, please register at www.creditcardsettlements.ca, or contact one of the Class Lawyers listed below.

Certification/Authorization as Class Proceedings for Settlement Purposes Separate and apart from the certification of the BC Action against all defendants, in order to implement the Settlements, the Courts have certified/authorized all of the Credit Card Actions as class proceedings against BofA, Capital One and Citigroup for settlement purposes only.

Who Are The Settlement Class Members?

You are a Settlement Class Member if you are a BofA Settlement Class Member, a Capital One Settlement Class Member and/or a Citigroup Settlement Class Member.

You are also a BofA Settlement Class Member, a Capital One Settlement Class Member and a Citigroup Settlement Class Member if you accept or accepted MasterCard credit cards as payment for goods or services and incurred merchant discount fees, including interchange fees, in Canada since March 23, 2001.

You are a BofA Settlement Class Member and a Citigroup Settlement Class Member if you accept or accepted Visa credit cards as payment for goods or services and incurred merchant discount fees, including interchange fees, in Canada since March 23, 2001.

All Settlement Class Members are affected by this notice, whether or not they have a claim or potential claim against BofA, Capital One or Citigroup.

Settlement Approval Hearings Hearings to consider approval of the Settlements, a counsel fee of up to 25% of the recovered amounts, and disbursements payable from the Settlement Amounts will be heard on November 9, 2015 at 10 a.m. (British Columbia Supreme Court, Vancouver), November 10, 2015 at 10 a.m. (Court of Queen’s Bench of Alberta, Edmonton), November 12 at 10 a.m. (Court of Queen’s Bench for Saskatchewan, Regina), November 23, 2015 at 2:15 p.m.

(Quebec Superior Court, Montreal) and November 19 at 10 a.m. (Ontario Superior Court of Justice, Toronto). Anyone can attend the hearings, but if you wish to speak to the Court, please advise the Opt-Out Administrator (Epiq Systems)*.

If you wish to provide written comment on or objection to any of the Settlements, you must do so by delivering same to the Opt-Out Administrator* by November 2, 2015. Comments or objections will be provided to the Court for consideration in whether to approve or reject the Settlements.

Participating in the Settlements or the Credit Card Actions If you fall within the Settlement Class, including the Quebec Settlement Class (defined below), and wish to participate in the Settlements and in the continuing Credit Card Actions, you do not need to do anything at this time.

Opting Out of the Class Proceedings The deadline to opt out of the Settlements or the class actions is November 4, 2015.

Consequences of Opting Out By opting out, you are choosing: 1. not to take part in any of the Settlements, 2. not to participate in the ongoing prosecution of the Credit Card Class Actions against the other defendants, AND 3. not to participate in any future settlements reached in the Credit Card Class Actions.

Settlement Class Members who opt out (including Quebec Settlement Class Members) will not be bound by any of the Settlements or the releases in the Settlements, but will also not be entitled to share in any of the proceeds that may become available to merchants as part of the Settlements. Settlement Class Members who opt out (including Quebec Settlement Class Members) will also not be entitled to participate in the continued prosecution of the Credit Card Class Actions or future settlements.

Consequences of Not Opting Out BECAUSE OF DIFFERENCES IN THE ORDERS MADE BY THE COURTS, THE CONSEQUENCES OF NOT OPTING OUT VARY DEPENDING ON WHETHER YOU ARE A QUEBEC SETTLEMENT CLASS MEMBER (A SUBGROUP OF THE SETTLEMENT CLASS) OR NOT. You are a Quebec Settlement Class Member if you are a Quebec resident person who accepted Visa and/or MasterCard credit cards as payment for goods or services and incurred merchant discount fees, including interchange fees, in Canada, since March 23, 2001. Any legal persons established for a private interest, partnership or association which at any time between December 17, 2009 and December 17, 2010 had under its direction or control more than 50 persons bound to it by contract of employment are not Quebec Settlement Class Members. a) Quebec Settlement Class Members Quebec Settlement Class Members who do not opt out will be bound by the Settlements and the releases in them, and will be entitled to share in any of the proceeds that may become available to merchants as part of the Settlements . They will have an opportunity to opt out of the ongoing litigation against the other defendants if and when such litigation is authorized as a class action against some or all of those remaining defendants. b) All Other Settlement Class Members For all other Settlement Class Members, the election not to opt out also operates in relation to future settlements and the ongoing litigation against the remaining defendants.

Settlement Class Members who are not Quebec Settlement Class Members who do not opt out will be bound by the Settlements and the releases in them, and will be entitled to share in any of the proceeds that may become available to merchants as part of the Settlements and the ongoing litigation against the other defendants. They will not have a further opportunity to opt out of the ongoing litigation against the other defendants if and when such litigation is authorized as a class action against some or all of those remaining defendants.

*

*

*

FOR MORE INFORMATION on the status of the approval hearings or on how to opt out of the Credit Card Actions, comment or object to any of the Settlements, or to view the Settlements and a list of other definitions that apply to this Notice, visit www.creditcardsettlements.ca, which will be periodically updated with information on the Settlements approval process and the Credit Card Actions. *For communications with the Opt-Out Administrator, Epiq Systems call (877) 283-6548, email info@CreditCardSettlements.ca, fax (844) 772-0145 or write to Canadian Interchange, PO Box 2312, 349 W Georgia St., Vancouver, BC V6B 1Y0.

CLASS LAWYERS can be reached at lawyer@CreditCardSettlements.ca and are: • Branch MacMaster LLP at (604) 654-2999 (Luciana Brasil) • Camp Fiorante Mathews Mogerman at (604) 689-7555 (David Jones) • Consumer Law Group (for Quebec residents) at 1-888-909-7863 x2 (Jeff Orenstein) This notice is approved by the Courts.

www.CreditCardSettlements.ca • (877) 283-6548

STRATEGIC LEADERSHIP COFFEE

C

offee and single serve beverages have been in constant evolution in the last 5 years.

Morning fuel for some, ritual or special treat for others, coffee can get very personal.

From adopting a single serve brewing system to choosing a specific blend of coffee, the consumer goes through many steps during their consumption journey. Let’s see what major trends are shaping the coffee and single serve beverage segments and identify the key insights you can use to increase sales in your store.

$ BILLIONS CPG Category Ranking National All Channels

1.3

1.2

+1%

+3%

0%

+13%

Coffee - Roast and Ground

1.5

Flavoured soft drinks

+7% +4%

1.5

Chocolate

1.6

+20%

Yogurt products - Refrigerated

0%

1.8

Dinners & Entrees - Frozen

1.7

Snack Foods

+7%

Natural Cheese

LEADERSHIP COFFEE

Milk

STRATEGIC

-1%

0.6 $Billion single serve coffee

+7%

1.9

% $GROWTH VS. LAST YEAR

0.6 $Billion traditional coffee

2.5

Bread Commercial

COFFEE IN THE TOP 10 CPG CATEGORIES

Roast & ground coffee is the fastest growing of the TOP categories

Source : Nielsen, Category Performance report (Common Packaged Goods), National All Channels, 52 weeks ending June 27 2015.

STRATEGIC LEADERSHIP COFFEE

C

offee and single serve beverages have been in constant evolution in the last 5 years.

Morning fuel for some, ritual or special treat for others, coffee can get very personal.

From adopting a single serve brewing system to choosing a specific blend of coffee, the consumer goes through many steps during their consumption journey. Let’s see what major trends are shaping the coffee and single serve beverage segments and identify the key insights you can use to increase sales in your store.

$ BILLIONS CPG Category Ranking National All Channels

1.3

1.2

+1%

+3%

0%

+13%

Coffee - Roast and Ground

1.5

Flavoured soft drinks

+7% +4%

1.5

Chocolate

1.6

+20%

Yogurt products - Refrigerated

0%

1.8

Dinners & Entrees - Frozen

1.7

Snack Foods

+7%

Natural Cheese

LEADERSHIP COFFEE

Milk

STRATEGIC

-1%

0.6 $Billion single serve coffee

+7%

1.9

% $GROWTH VS. LAST YEAR

0.6 $Billion traditional coffee

2.5

Bread Commercial

COFFEE IN THE TOP 10 CPG CATEGORIES

Roast & ground coffee is the fastest growing of the TOP categories

Source : Nielsen, Category Performance report (Common Packaged Goods), National All Channels, 52 weeks ending June 27 2015.

STRATEGIC LEADERSHIP COFFEE

C

offee and single serve beverages have been in constant evolution in the last 5 years.

Morning fuel for some, ritual or special treat for others, coffee can get very personal.

From adopting a single serve brewing system to choosing a specific blend of coffee, the consumer goes through many steps during their consumption journey. Let’s see what major trends are shaping the coffee and single serve beverage segments and identify the key insights you can use to increase sales in your store.

$ BILLIONS CPG Category Ranking National All Channels

1.3

1.2

+1%

+3%

0%

+13%

Coffee - Roast and Ground

1.5

Flavoured soft drinks

+7% +4%

1.5

Chocolate

1.6

+20%

Yogurt products - Refrigerated

0%

1.8

Dinners & Entrees - Frozen

1.7

Snack Foods

+7%

Natural Cheese

LEADERSHIP COFFEE

Milk

STRATEGIC

-1%

0.6 $Billion single serve coffee

+7%

1.9

% $GROWTH VS. LAST YEAR

0.6 $Billion traditional coffee

2.5

Bread Commercial

COFFEE IN THE TOP 10 CPG CATEGORIES

Roast & ground coffee is the fastest growing of the TOP categories

Source : Nielsen, Category Performance report (Common Packaged Goods), National All Channels, 52 weeks ending June 27 2015.

STRATEGIC LEADERSHIP COFFEE

C

offee and single serve beverages have been in constant evolution in the last 5 years.

Morning fuel for some, ritual or special treat for others, coffee can get very personal.

From adopting a single serve brewing system to choosing a specific blend of coffee, the consumer goes through many steps during their consumption journey. Let’s see what major trends are shaping the coffee and single serve beverage segments and identify the key insights you can use to increase sales in your store.

$ BILLIONS CPG Category Ranking National All Channels

1.3

1.2

+1%

+3%

0%

+13%

Coffee - Roast and Ground

1.5

Flavoured soft drinks

+7% +4%

1.5

Chocolate

1.6

+20%

Yogurt products - Refrigerated

0%

1.8

Dinners & Entrees - Frozen

1.7

Snack Foods

+7%

Natural Cheese

LEADERSHIP COFFEE

Milk

STRATEGIC

-1%

0.6 $Billion single serve coffee

+7%

1.9

% $GROWTH VS. LAST YEAR

0.6 $Billion traditional coffee

2.5

Bread Commercial

COFFEE IN THE TOP 10 CPG CATEGORIES

Roast & ground coffee is the fastest growing of the TOP categories

Source : Nielsen, Category Performance report (Common Packaged Goods), National All Channels, 52 weeks ending June 27 2015.

30% 25%

27%

Single Serve systems are now in a third of the Canadian homes!

22% 16%

June 2012 Feb. 2013 June 2013

• Appropriate space on shelf • Additional space in Secondary display • Cross merchandising outside Hot Beverage aisle

Source : CROP U&A Study, March 2015

Dec. 2013 Mar. 2014 Mar. 2015

Catch impulsive sales with Laura Secord® Mint Hot Chocolate Mix launched in August 2015

Source: AH Installed base study, March 2015

Why carrying specialty coffee: - Trade up consumers (premium products, higher price per serving) - Increase coffee consumption (espresso based consumed at a different time of the day, some of it is additional consumption) - Transfer sales from Away-from-Home (coffee shops) - Attract younger consumers*

Hot chocolate and Tea help to increase consumption by catching more occasions and more family members!

Specialty Coffee Penetration is increasing in Canada

Average price per cup

12 Cents

Retailer must have a good section to attract single serve consumers!

60 Cents

$1,156 M

$96

Average Grocery Basket with single serve pods*

LIGHT

$571 M $50

2011

2015

Traditional Coffee

Single Serve Coffee

Source : Nielsen Market Track, National Grocery+Drug+Mass Merch+General Merch+Warehouse Club, Dollars, 24 weeks ending April 4 2015

STRATEGIC LEADERSHIP

CONTRIBUTE 47% OF SINGLE SERVE PODS* GROWTH

• A nswer consumer need for a value proposition (saving) • Reduce out of stock at home • Increase basket value • I ncrease consumption by brewer (higher count = higher availability at home)

100,000,000 90,000,000

Single Serve coffee segment $ Sales (Million)

2013

Average Grocery Basket Source: Nielsen Homescan, Latest 28 weeks ending Feb 7th 2015, National Grocery banner * Single serve pods exclude disc and capsule packaging formats

* Single serve pods exclude disc and capsule packaging formats

70,000,000

40,000,000

$10

$73

30,000,000

OTHER

SYSTEM

BY SINGLE SERVE PODS*

20,000,000

OTHER

Source: Nielsen Market Track, National Grocery+Drug+Mass Merch, 52 weeks ending May 30 2015.

$34 LARGE FORMATS

2014

2015

Total single-serve coffee servings 2014

2015

$ Absolute Change

2013

FLAVOURED

24 WKS

DECAF

Make sure you catch impulsive sales by carrying secondary displays!

10,000,000

Single-Serve Beverage Merchandising Principles 1

The Single Serve section should be at the center of the hot beverage aisle to attract shopper inside the aisle and increase basket size.

2

To facilitate the shopper experience and avoid confusion, clearly delimit in a vertical way, the space between single serve technologies in the market place.

3

Source : Nielsen Market Track, National Grocery+Drug+Mass Merch+General Merchandiser , Servings, Rolling 4 weeks ending March 7 2015

who have seen the Fairtrade Mark trust it

TRADITIONAL COFFEE SEGMENTS % $ Sales

Light 3%

Across Coffee brands, following flow is recommended:

• LIGHT • MEDIUM • DARK • FLAVOURED • DECAF According to coffee decision tree, consumers are selecting/deselecting flaroured or decaf and then choosing amongst the roast

Evolving demographics:

• 40% of consumers are willing to pay extra for products and services from companies that are committed to making a social and environmental impact (big increase

Flavour 2%

3 in 4

Canadians who have seen the Fairtrade Mark say that it positively impacts on their perception of the product

Espresso

33

6%

Decaf

PRICE SEGMENT - Within Coffee: A. Small formats should be merchandised by Price Segment: from most expensive to least expensive.

B. L arge formats should be merchandised together in bottom shelves.

Brand blocking is recommended within each price segment.

• More than

Medium and Dark roast Regular type of traditional coffee account for the majority of the sales.

Tea and hot cocoa should be merchandised together on top shelf in order to separate them from coffee segment.

6

Significant increases (from 2013) in Global awareness and customer advocacy for Fairtrade products:

• 89% of Canadian consumers Arbitrary example of shelf displays

5

$0

Source: Nielsen Market Track, National Grocery+Drug+Mass Merch+General Merch+Warehouse Club, Dollar, 12 weeks groups ending May 30th 2015.

should be merchandised in bottom shelves

4

60,000,000 50,000,000

$358

DARK

LARGE FORMATS

2014

80,000,000

$83 GROWTH

+9%

-10%

Increase in brewer sales and pods consumption around the Christmas season are leading to segment growth from October to December

$441

MEDIUM

Source : Coffee Drinking trends report, Coffee Association of Canada, 2014 *Penetration overdeveloped among 18-34 years old coffee drinkers

LARGE FORMAT:

LARGE FORMATS ADVANTAGES:

0%

ROAST FLOW

32%

4wk June 02, 2012 4wk July 28, 2012 4wk Sept. 22, 2012 4wk Nov. 17, 2012 4wk Jan. 12, 2013 4wk Mar. 09, 2013 4wk May 04, 2013 4wk June 29, 2013 4wk Aug. 24, 2013 4wk Oct. 19, 2013 4wk Dec. 14, 2013 4wk Feb. 08, 2014 4wk Apr. 05, 2014 4wk May. 31, 2014 4wk July 26, 2014 4wk Sept. 20, 2014 4wk Nov. 15, 2014 4wk Jan. 10, 2015 4wk Mar. 07, 2015

TL Coffee category Annual $M Sales

SINGLE SERVE PODS INCREASE BASKET SIZE!

$

BRAND BLOCKING

35%

Make Holiday Seasons Impactful TOTAL SINGLE SERVE HELPED CATEGORY PROFITABILITY

MOST EXPENSIVE TO LEAST EXPENSIVE

Apr. 04, 2015

34%

POSITIVE IMPACT ON THE COMMUNITY AND ON YOUR SALES

10 %

$$$

MAKE SURE TO HIGHLIGHT THESE SEGMENTS ON SHELF WITH:

SUPPORTING SUSTAINABLE COFFEES:

TRADITIONNAL COFFEE IS BACK TO GROWTH!

System B

Dec. 13, 2014

(% of the Canadian Households having a single serve brewer at home)

System A

Aug. 23, 2014

1. Makes great tasting coffee 2. Offers good value for the money 3. Is convenient to use 4. Offers a good price per serving 5. Brews beverages quickly 6. Offers my favourite coffee brands

OPPORTUNITY TO INCREASE HOT CHOCOLATE & TEA IMPORTANCE IN SINGLE SERVE BEVERAGES

SINGLE-SERVE SECTION ILLUSTRATED

Mar. 03, 2014

SINGLE SERVE PENETRATION

SPECIALTY COFFEE IN SINGLE SERVE

Jan. 11, 2014

Top attributes (in terms of importance) when choosing a single serve system:

Traditional Coffee

Merchandising

Sept. 21, 2013

WHY PEOPLE ARE CHOOSING SINGLE SERVE

Single Serve Beverages

PERCENTAGE GROWTH

Single Serve Technology

5%

from % in 2011) and evidence suggests this will continue to rise significantly Source : Nielsen Study on Corporate Social Responsibility 2014

Switching brands

Medium 61%

Dark

22%

Source : Nielsen Market Track, Dollars sales,National Grocery+Drug+Mass Merch+Gen Merch+Warehouse Club, 52 weeks ending July 25 2015, includes top 300 traditional coffee items that represent 95% of the $Sales, exclude Wal-Mart and Costco Private Labels.

• 84% of Canadians would likely switch brands to one affiliated with a good cause if price and quality were similar Source : IPSOS Study December 2nd 2014

STRATEGIC LEADERSHIP

30% 25%

27%

Single Serve systems are now in a third of the Canadian homes!

22% 16%

June 2012 Feb. 2013 June 2013

• Appropriate space on shelf • Additional space in Secondary display • Cross merchandising outside Hot Beverage aisle

Source : CROP U&A Study, March 2015

Dec. 2013 Mar. 2014 Mar. 2015

Catch impulsive sales with Laura Secord® Mint Hot Chocolate Mix launched in August 2015

Source: AH Installed base study, March 2015

Why carrying specialty coffee: - Trade up consumers (premium products, higher price per serving) - Increase coffee consumption (espresso based consumed at a different time of the day, some of it is additional consumption) - Transfer sales from Away-from-Home (coffee shops) - Attract younger consumers*

Hot chocolate and Tea help to increase consumption by catching more occasions and more family members!

Specialty Coffee Penetration is increasing in Canada

Average price per cup

12 Cents

Retailer must have a good section to attract single serve consumers!

60 Cents

$1,156 M

$96

Average Grocery Basket with single serve pods*

LIGHT

$571 M $50

2011

2015

Traditional Coffee

Single Serve Coffee

Source : Nielsen Market Track, National Grocery+Drug+Mass Merch+General Merch+Warehouse Club, Dollars, 24 weeks ending April 4 2015

STRATEGIC LEADERSHIP

CONTRIBUTE 47% OF SINGLE SERVE PODS* GROWTH

• A nswer consumer need for a value proposition (saving) • Reduce out of stock at home • Increase basket value • I ncrease consumption by brewer (higher count = higher availability at home)

100,000,000 90,000,000

Single Serve coffee segment $ Sales (Million)

2013

Average Grocery Basket Source: Nielsen Homescan, Latest 28 weeks ending Feb 7th 2015, National Grocery banner * Single serve pods exclude disc and capsule packaging formats

* Single serve pods exclude disc and capsule packaging formats

70,000,000

40,000,000

$10

$73

30,000,000

OTHER

SYSTEM

BY SINGLE SERVE PODS*

20,000,000

OTHER

Source: Nielsen Market Track, National Grocery+Drug+Mass Merch, 52 weeks ending May 30 2015.

$34 LARGE FORMATS

2014

2015

Total single-serve coffee servings 2014

2015

$ Absolute Change

2013

FLAVOURED

24 WKS

DECAF

Make sure you catch impulsive sales by carrying secondary displays!

10,000,000

Single-Serve Beverage Merchandising Principles 1

The Single Serve section should be at the center of the hot beverage aisle to attract shopper inside the aisle and increase basket size.

2

To facilitate the shopper experience and avoid confusion, clearly delimit in a vertical way, the space between single serve technologies in the market place.

3

Source : Nielsen Market Track, National Grocery+Drug+Mass Merch+General Merchandiser , Servings, Rolling 4 weeks ending March 7 2015

who have seen the Fairtrade Mark trust it

TRADITIONAL COFFEE SEGMENTS % $ Sales

Light 3%

Across Coffee brands, following flow is recommended:

• LIGHT • MEDIUM • DARK • FLAVOURED • DECAF According to coffee decision tree, consumers are selecting/deselecting flaroured or decaf and then choosing amongst the roast

Evolving demographics:

• 40% of consumers are willing to pay extra for products and services from companies that are committed to making a social and environmental impact (big increase

Flavour 2%

3 in 4

Canadians who have seen the Fairtrade Mark say that it positively impacts on their perception of the product

Espresso

33

6%

Decaf

PRICE SEGMENT - Within Coffee: A. Small formats should be merchandised by Price Segment: from most expensive to least expensive.

B. L arge formats should be merchandised together in bottom shelves.

Brand blocking is recommended within each price segment.

• More than

Medium and Dark roast Regular type of traditional coffee account for the majority of the sales.

Tea and hot cocoa should be merchandised together on top shelf in order to separate them from coffee segment.

6

Significant increases (from 2013) in Global awareness and customer advocacy for Fairtrade products:

• 89% of Canadian consumers Arbitrary example of shelf displays

5

$0

Source: Nielsen Market Track, National Grocery+Drug+Mass Merch+General Merch+Warehouse Club, Dollar, 12 weeks groups ending May 30th 2015.

should be merchandised in bottom shelves

4

60,000,000 50,000,000

$358

DARK

LARGE FORMATS

2014

80,000,000

$83 GROWTH

+9%

-10%

Increase in brewer sales and pods consumption around the Christmas season are leading to segment growth from October to December

$441

MEDIUM

Source : Coffee Drinking trends report, Coffee Association of Canada, 2014 *Penetration overdeveloped among 18-34 years old coffee drinkers

LARGE FORMAT:

LARGE FORMATS ADVANTAGES:

0%

ROAST FLOW

32%

4wk June 02, 2012 4wk July 28, 2012 4wk Sept. 22, 2012 4wk Nov. 17, 2012 4wk Jan. 12, 2013 4wk Mar. 09, 2013 4wk May 04, 2013 4wk June 29, 2013 4wk Aug. 24, 2013 4wk Oct. 19, 2013 4wk Dec. 14, 2013 4wk Feb. 08, 2014 4wk Apr. 05, 2014 4wk May. 31, 2014 4wk July 26, 2014 4wk Sept. 20, 2014 4wk Nov. 15, 2014 4wk Jan. 10, 2015 4wk Mar. 07, 2015

TL Coffee category Annual $M Sales

SINGLE SERVE PODS INCREASE BASKET SIZE!

$

BRAND BLOCKING

35%

Make Holiday Seasons Impactful TOTAL SINGLE SERVE HELPED CATEGORY PROFITABILITY

MOST EXPENSIVE TO LEAST EXPENSIVE

Apr. 04, 2015

34%

POSITIVE IMPACT ON THE COMMUNITY AND ON YOUR SALES

10 %

$$$

MAKE SURE TO HIGHLIGHT THESE SEGMENTS ON SHELF WITH:

SUPPORTING SUSTAINABLE COFFEES:

TRADITIONNAL COFFEE IS BACK TO GROWTH!

System B

Dec. 13, 2014

(% of the Canadian Households having a single serve brewer at home)

System A

Aug. 23, 2014

1. Makes great tasting coffee 2. Offers good value for the money 3. Is convenient to use 4. Offers a good price per serving 5. Brews beverages quickly 6. Offers my favourite coffee brands

OPPORTUNITY TO INCREASE HOT CHOCOLATE & TEA IMPORTANCE IN SINGLE SERVE BEVERAGES

SINGLE-SERVE SECTION ILLUSTRATED

Mar. 03, 2014

SINGLE SERVE PENETRATION

SPECIALTY COFFEE IN SINGLE SERVE

Jan. 11, 2014

Top attributes (in terms of importance) when choosing a single serve system:

Traditional Coffee

Merchandising

Sept. 21, 2013

WHY PEOPLE ARE CHOOSING SINGLE SERVE

Single Serve Beverages

PERCENTAGE GROWTH

Single Serve Technology

5%

from % in 2011) and evidence suggests this will continue to rise significantly Source : Nielsen Study on Corporate Social Responsibility 2014

Switching brands

Medium 61%

Dark

22%

Source : Nielsen Market Track, Dollars sales,National Grocery+Drug+Mass Merch+Gen Merch+Warehouse Club, 52 weeks ending July 25 2015, includes top 300 traditional coffee items that represent 95% of the $Sales, exclude Wal-Mart and Costco Private Labels.

• 84% of Canadians would likely switch brands to one affiliated with a good cause if price and quality were similar Source : IPSOS Study December 2nd 2014

STRATEGIC LEADERSHIP

30% 25%

27%

Single Serve systems are now in a third of the Canadian homes!

22% 16%

June 2012 Feb. 2013 June 2013

• Appropriate space on shelf • Additional space in Secondary display • Cross merchandising outside Hot Beverage aisle

Source : CROP U&A Study, March 2015

Dec. 2013 Mar. 2014 Mar. 2015

Catch impulsive sales with Laura Secord® Mint Hot Chocolate Mix launched in August 2015

Source: AH Installed base study, March 2015

Why carrying specialty coffee: - Trade up consumers (premium products, higher price per serving) - Increase coffee consumption (espresso based consumed at a different time of the day, some of it is additional consumption) - Transfer sales from Away-from-Home (coffee shops) - Attract younger consumers*

Hot chocolate and Tea help to increase consumption by catching more occasions and more family members!

Specialty Coffee Penetration is increasing in Canada

Average price per cup

12 Cents

Retailer must have a good section to attract single serve consumers!

60 Cents

$1,156 M

$96

Average Grocery Basket with single serve pods*

LIGHT

$571 M $50

2011

2015

Traditional Coffee

Single Serve Coffee

Source : Nielsen Market Track, National Grocery+Drug+Mass Merch+General Merch+Warehouse Club, Dollars, 24 weeks ending April 4 2015

STRATEGIC LEADERSHIP

CONTRIBUTE 47% OF SINGLE SERVE PODS* GROWTH

• A nswer consumer need for a value proposition (saving) • Reduce out of stock at home • Increase basket value • I ncrease consumption by brewer (higher count = higher availability at home)

100,000,000 90,000,000

Single Serve coffee segment $ Sales (Million)

2013

Average Grocery Basket Source: Nielsen Homescan, Latest 28 weeks ending Feb 7th 2015, National Grocery banner * Single serve pods exclude disc and capsule packaging formats

* Single serve pods exclude disc and capsule packaging formats

70,000,000

40,000,000

$10

$73

30,000,000

OTHER

SYSTEM

BY SINGLE SERVE PODS*

20,000,000

OTHER

Source: Nielsen Market Track, National Grocery+Drug+Mass Merch, 52 weeks ending May 30 2015.

$34 LARGE FORMATS

2014

2015

Total single-serve coffee servings 2014

2015

$ Absolute Change

2013

FLAVOURED

24 WKS

DECAF

Make sure you catch impulsive sales by carrying secondary displays!

10,000,000

Single-Serve Beverage Merchandising Principles 1

The Single Serve section should be at the center of the hot beverage aisle to attract shopper inside the aisle and increase basket size.

2

To facilitate the shopper experience and avoid confusion, clearly delimit in a vertical way, the space between single serve technologies in the market place.

3

Source : Nielsen Market Track, National Grocery+Drug+Mass Merch+General Merchandiser , Servings, Rolling 4 weeks ending March 7 2015

who have seen the Fairtrade Mark trust it

TRADITIONAL COFFEE SEGMENTS % $ Sales

Light 3%

Across Coffee brands, following flow is recommended:

• LIGHT • MEDIUM • DARK • FLAVOURED • DECAF According to coffee decision tree, consumers are selecting/deselecting flaroured or decaf and then choosing amongst the roast

Evolving demographics:

• 40% of consumers are willing to pay extra for products and services from companies that are committed to making a social and environmental impact (big increase

Flavour 2%

3 in 4

Canadians who have seen the Fairtrade Mark say that it positively impacts on their perception of the product

Espresso

33

6%

Decaf

PRICE SEGMENT - Within Coffee: A. Small formats should be merchandised by Price Segment: from most expensive to least expensive.

B. L arge formats should be merchandised together in bottom shelves.

Brand blocking is recommended within each price segment.

• More than

Medium and Dark roast Regular type of traditional coffee account for the majority of the sales.

Tea and hot cocoa should be merchandised together on top shelf in order to separate them from coffee segment.

6

Significant increases (from 2013) in Global awareness and customer advocacy for Fairtrade products:

• 89% of Canadian consumers Arbitrary example of shelf displays

5

$0

Source: Nielsen Market Track, National Grocery+Drug+Mass Merch+General Merch+Warehouse Club, Dollar, 12 weeks groups ending May 30th 2015.

should be merchandised in bottom shelves

4

60,000,000 50,000,000

$358

DARK

LARGE FORMATS

2014

80,000,000

$83 GROWTH

+9%

-10%

Increase in brewer sales and pods consumption around the Christmas season are leading to segment growth from October to December

$441

MEDIUM

Source : Coffee Drinking trends report, Coffee Association of Canada, 2014 *Penetration overdeveloped among 18-34 years old coffee drinkers

LARGE FORMAT:

LARGE FORMATS ADVANTAGES:

0%

ROAST FLOW

32%

4wk June 02, 2012 4wk July 28, 2012 4wk Sept. 22, 2012 4wk Nov. 17, 2012 4wk Jan. 12, 2013 4wk Mar. 09, 2013 4wk May 04, 2013 4wk June 29, 2013 4wk Aug. 24, 2013 4wk Oct. 19, 2013 4wk Dec. 14, 2013 4wk Feb. 08, 2014 4wk Apr. 05, 2014 4wk May. 31, 2014 4wk July 26, 2014 4wk Sept. 20, 2014 4wk Nov. 15, 2014 4wk Jan. 10, 2015 4wk Mar. 07, 2015

TL Coffee category Annual $M Sales

SINGLE SERVE PODS INCREASE BASKET SIZE!

$

BRAND BLOCKING

35%

Make Holiday Seasons Impactful TOTAL SINGLE SERVE HELPED CATEGORY PROFITABILITY

MOST EXPENSIVE TO LEAST EXPENSIVE

Apr. 04, 2015

34%

POSITIVE IMPACT ON THE COMMUNITY AND ON YOUR SALES

10 %

$$$

MAKE SURE TO HIGHLIGHT THESE SEGMENTS ON SHELF WITH:

SUPPORTING SUSTAINABLE COFFEES:

TRADITIONNAL COFFEE IS BACK TO GROWTH!

System B

Dec. 13, 2014

(% of the Canadian Households having a single serve brewer at home)

System A

Aug. 23, 2014

1. Makes great tasting coffee 2. Offers good value for the money 3. Is convenient to use 4. Offers a good price per serving 5. Brews beverages quickly 6. Offers my favourite coffee brands

OPPORTUNITY TO INCREASE HOT CHOCOLATE & TEA IMPORTANCE IN SINGLE SERVE BEVERAGES

SINGLE-SERVE SECTION ILLUSTRATED

Mar. 03, 2014

SINGLE SERVE PENETRATION

SPECIALTY COFFEE IN SINGLE SERVE

Jan. 11, 2014

Top attributes (in terms of importance) when choosing a single serve system:

Traditional Coffee

Merchandising

Sept. 21, 2013

WHY PEOPLE ARE CHOOSING SINGLE SERVE

Single Serve Beverages

PERCENTAGE GROWTH

Single Serve Technology

5%

from % in 2011) and evidence suggests this will continue to rise significantly Source : Nielsen Study on Corporate Social Responsibility 2014

Switching brands

Medium 61%

Dark

22%

Source : Nielsen Market Track, Dollars sales,National Grocery+Drug+Mass Merch+Gen Merch+Warehouse Club, 52 weeks ending July 25 2015, includes top 300 traditional coffee items that represent 95% of the $Sales, exclude Wal-Mart and Costco Private Labels.

• 84% of Canadians would likely switch brands to one affiliated with a good cause if price and quality were similar Source : IPSOS Study December 2nd 2014

STRATEGIC LEADERSHIP

30% 25%

27%

Single Serve systems are now in a third of the Canadian homes!

22% 16%

June 2012 Feb. 2013 June 2013

• Appropriate space on shelf • Additional space in Secondary display • Cross merchandising outside Hot Beverage aisle

Source : CROP U&A Study, March 2015

Dec. 2013 Mar. 2014 Mar. 2015

Catch impulsive sales with Laura Secord® Mint Hot Chocolate Mix launched in August 2015

Source: AH Installed base study, March 2015

Why carrying specialty coffee: - Trade up consumers (premium products, higher price per serving) - Increase coffee consumption (espresso based consumed at a different time of the day, some of it is additional consumption) - Transfer sales from Away-from-Home (coffee shops) - Attract younger consumers*

Hot chocolate and Tea help to increase consumption by catching more occasions and more family members!

Specialty Coffee Penetration is increasing in Canada

Average price per cup

12 Cents

Retailer must have a good section to attract single serve consumers!

60 Cents

$1,156 M

$96

Average Grocery Basket with single serve pods*

LIGHT

$571 M $50

2011

2015

Traditional Coffee

Single Serve Coffee

Source : Nielsen Market Track, National Grocery+Drug+Mass Merch+General Merch+Warehouse Club, Dollars, 24 weeks ending April 4 2015

STRATEGIC LEADERSHIP

CONTRIBUTE 47% OF SINGLE SERVE PODS* GROWTH

• A nswer consumer need for a value proposition (saving) • Reduce out of stock at home • Increase basket value • I ncrease consumption by brewer (higher count = higher availability at home)

100,000,000 90,000,000

Single Serve coffee segment $ Sales (Million)

2013

Average Grocery Basket Source: Nielsen Homescan, Latest 28 weeks ending Feb 7th 2015, National Grocery banner * Single serve pods exclude disc and capsule packaging formats

* Single serve pods exclude disc and capsule packaging formats

70,000,000

40,000,000

$10

$73

30,000,000

OTHER

SYSTEM

BY SINGLE SERVE PODS*

20,000,000

OTHER

Source: Nielsen Market Track, National Grocery+Drug+Mass Merch, 52 weeks ending May 30 2015.

$34 LARGE FORMATS

2014

2015

Total single-serve coffee servings 2014

2015

$ Absolute Change

2013

FLAVOURED

24 WKS

DECAF

Make sure you catch impulsive sales by carrying secondary displays!

10,000,000

Single-Serve Beverage Merchandising Principles 1

The Single Serve section should be at the center of the hot beverage aisle to attract shopper inside the aisle and increase basket size.

2

To facilitate the shopper experience and avoid confusion, clearly delimit in a vertical way, the space between single serve technologies in the market place.

3

Source : Nielsen Market Track, National Grocery+Drug+Mass Merch+General Merchandiser , Servings, Rolling 4 weeks ending March 7 2015

who have seen the Fairtrade Mark trust it

TRADITIONAL COFFEE SEGMENTS % $ Sales

Light 3%

Across Coffee brands, following flow is recommended:

• LIGHT • MEDIUM • DARK • FLAVOURED • DECAF According to coffee decision tree, consumers are selecting/deselecting flaroured or decaf and then choosing amongst the roast

Evolving demographics:

• 40% of consumers are willing to pay extra for products and services from companies that are committed to making a social and environmental impact (big increase

Flavour 2%

3 in 4

Canadians who have seen the Fairtrade Mark say that it positively impacts on their perception of the product

Espresso

33

6%

Decaf

PRICE SEGMENT - Within Coffee: A. Small formats should be merchandised by Price Segment: from most expensive to least expensive.

B. L arge formats should be merchandised together in bottom shelves.

Brand blocking is recommended within each price segment.

• More than

Medium and Dark roast Regular type of traditional coffee account for the majority of the sales.

Tea and hot cocoa should be merchandised together on top shelf in order to separate them from coffee segment.

6

Significant increases (from 2013) in Global awareness and customer advocacy for Fairtrade products:

• 89% of Canadian consumers Arbitrary example of shelf displays

5

$0

Source: Nielsen Market Track, National Grocery+Drug+Mass Merch+General Merch+Warehouse Club, Dollar, 12 weeks groups ending May 30th 2015.

should be merchandised in bottom shelves

4

60,000,000 50,000,000

$358

DARK

LARGE FORMATS

2014

80,000,000

$83 GROWTH

+9%

-10%

Increase in brewer sales and pods consumption around the Christmas season are leading to segment growth from October to December

$441

MEDIUM

Source : Coffee Drinking trends report, Coffee Association of Canada, 2014 *Penetration overdeveloped among 18-34 years old coffee drinkers

LARGE FORMAT:

LARGE FORMATS ADVANTAGES:

0%

ROAST FLOW

32%

4wk June 02, 2012 4wk July 28, 2012 4wk Sept. 22, 2012 4wk Nov. 17, 2012 4wk Jan. 12, 2013 4wk Mar. 09, 2013 4wk May 04, 2013 4wk June 29, 2013 4wk Aug. 24, 2013 4wk Oct. 19, 2013 4wk Dec. 14, 2013 4wk Feb. 08, 2014 4wk Apr. 05, 2014 4wk May. 31, 2014 4wk July 26, 2014 4wk Sept. 20, 2014 4wk Nov. 15, 2014 4wk Jan. 10, 2015 4wk Mar. 07, 2015

TL Coffee category Annual $M Sales

SINGLE SERVE PODS INCREASE BASKET SIZE!

$

BRAND BLOCKING

35%

Make Holiday Seasons Impactful TOTAL SINGLE SERVE HELPED CATEGORY PROFITABILITY

MOST EXPENSIVE TO LEAST EXPENSIVE

Apr. 04, 2015

34%

POSITIVE IMPACT ON THE COMMUNITY AND ON YOUR SALES

10 %

$$$

MAKE SURE TO HIGHLIGHT THESE SEGMENTS ON SHELF WITH:

SUPPORTING SUSTAINABLE COFFEES:

TRADITIONNAL COFFEE IS BACK TO GROWTH!

System B

Dec. 13, 2014

(% of the Canadian Households having a single serve brewer at home)

System A

Aug. 23, 2014

1. Makes great tasting coffee 2. Offers good value for the money 3. Is convenient to use 4. Offers a good price per serving 5. Brews beverages quickly 6. Offers my favourite coffee brands

OPPORTUNITY TO INCREASE HOT CHOCOLATE & TEA IMPORTANCE IN SINGLE SERVE BEVERAGES

SINGLE-SERVE SECTION ILLUSTRATED

Mar. 03, 2014

SINGLE SERVE PENETRATION

SPECIALTY COFFEE IN SINGLE SERVE

Jan. 11, 2014

Top attributes (in terms of importance) when choosing a single serve system:

Traditional Coffee

Merchandising

Sept. 21, 2013

WHY PEOPLE ARE CHOOSING SINGLE SERVE

Single Serve Beverages

PERCENTAGE GROWTH

Single Serve Technology

5%

from % in 2011) and evidence suggests this will continue to rise significantly Source : Nielsen Study on Corporate Social Responsibility 2014

Switching brands

Medium 61%

Dark

22%

Source : Nielsen Market Track, Dollars sales,National Grocery+Drug+Mass Merch+Gen Merch+Warehouse Club, 52 weeks ending July 25 2015, includes top 300 traditional coffee items that represent 95% of the $Sales, exclude Wal-Mart and Costco Private Labels.

• 84% of Canadians would likely switch brands to one affiliated with a good cause if price and quality were similar Source : IPSOS Study December 2nd 2014

STRATEGIC LEADERSHIP

Sept | Oct 2015

SIMPLY FRESH… ALWAYS!

MUCCI FARMS: GREEN & GROWING

THE POWER OF PRODUCE

Produce Manager

SIMPLY FRESH…

ALWAYS!

Ron Lemaire President of the Canadian Produce Marketing Association

By Ron Lemaire

Over the past 35 years, we have all seen tremendous change to the grocery industry. I still remember the local grocer in my Ottawa neighbourhood selling bulk local strawberries that we would pick through to find the reddest and sweetest ones. While there was always a staff person next to the display reorganizing and replenishing the product, shrink on these juicy local berries was massive. Having said that, the experience and taste definitely left a lasting impression!

The produce department has always been the gateway to retail success, as long as you apply a few simple tactics every day. Even taking a page out of the bulk strawberry display from 35 years ago is something to consider. I am not suggesting you start selling bulk berries, but the impact of “freshness” is key.

Store owners, produce managers and produce clerks are the key to customer satisfaction, frequency of visits and increasing produce sales. Few consumers know all the varieties in the produce section and how to prepare or consume them. Visibility, accessibility and knowledge can support customer loyalty, improve consumer product knowledge, reduce food waste and increase sales. Furthermore, stores that have invested in on-site nutritionists or partnered

grocerybusiness.ca

with community dietitians to help educate their customers have already begun to see the community and economic benefits of this investment.

Make your produce department a unique experience. The bulk display of berries 35 years ago was a work of art that remains part of my imagination and taste buds today.

What are you doing to create your masterpiece?

For tips on how to store, prepare and create masterpieces with produce, visit Halfyourplate.ca.

FRESH WILL SELL THE ENTIRE STORE AND DRIVE STORE VISITS IF YOU DO THREE SIMPLE THINGS WELL:

*

Create a flow, replenish displays and be knowledgeable. Fresh fruit and vegetables bring colour, taste and life to a retail environment of packaged goods and nutrition labels. When I walk into a successful grocery store, I’m always impressed with the clean lines, fullystocked displays and knowledgeable staff who are visible and available to answer my questions.

*

No matter how big the store, flow and cleanliness within the produce department will make the first impression on your customer. If the department is not clean and is difficult to navigate, you have already

lost them. The consumer will divert to centre store and only focus on basic produce rather than exploring for new products to try.

*

Full displays (not overloaded) are also important – no one likes looking at a blank canvas. Driving produce sales is like selling art. Express yourself and leverage the colours and textures to create eye appeal to draw customers into the display, thereby encouraging them to purchase. Don’t confuse the customer, and remember, family groupings make it easier to shop – so keep category items together (apples with apples, tomatoes together, etc.).

September | October 2015

31

To squeeze the most out of citrus sales opportunities, contact Sunkist sales: sales@sunkistgrowers.com.

Sunkist is a registered trademark of Sunkist Growers Inc., USA. Š2015

Global Connections: PMA’s Fresh Summit is a unique forum for connecting, trendspotting and relationship building.

Kevin Fiori

Grocery Business sat down with Kevin Fiori, vice-president sales and marketing, Sunkist Growers, and current chair of the Produce Marketing Association, to discuss his goal of advancing PMA’s 2015 strategic plan.

When did your involvement with PMA begin?

Our strategic planning process identified four key areas that we’ve focused on over the past year:

Sunkist’s involvement with PMA began 60 years ago, when we first exhibited in the PMA exposition. Over the years, our relationship has grown far beyond the confines of Fresh Summit. Sunkist relies on PMA for a range of business growth opportunities – from food safety and technology best practices, to professional development of our people.

I think this is a pretty typical corporate evolution within this association because PMA has really expanded its value to members far beyond the show itself.

I attended my first PMA Fresh Summit in the early 1980s, and became a board member in 2012. It has been a great experience for me.

• Global Connections: through our events, we connect stakeholders who impact our industry; • Science and Technology: not only for food safety but for supply-chain efficiencies, seed technology, packing innovations and data management; • Industry Talent: through our Foundation For Industry Talent, we work to attract, develop and retain talent for members; • Issues Leadership: here we take a position on matters impacting our industry and businesses.

As chair, what goals have you set for PMA? When asked to take on the chair position, I was obviously honoured. My primary goals have been to encourage member engagement and make sure our actions stay true to the organization’s strategic plan. Our industry is global in reach, and as it changes and adapts, so will the needs of PMA members, whose volunteer leaders developed a strategic plan designed to respond to those changing needs.

34

September | October 2015

Workshop characters will have an even longer timeframe to benefit from them.

Our latest research shows a clear increase in produce movement when the Sesame characters are used. This campaign is now in place across North America.

The Fresh Summit conference is fast approaching; what can Canadians expect to see in Atlanta in October?

With attendees from across the globe, the Fresh Summit offers a unique forum for industry folks to connect, understand emerging trends, spot new products on the trade show floor and build global relationships to drive their organizations forward.

Tell us more about the eat brighter! initiative.

PMA continues to support the industry’s overall mission of increasing fresh produce consumption.

One way we are doing this is through the eat brighter! campaign, which encourages young people to consume more fruits and vegetables. And we recently announced that the eat brighter! campaign has been extended for an additional two years through the end of 2018, so companies that have obtained the royalty-free licence to use the Sesame

OCTOBER 23-25, 2015 Georgia World Congress Center Atlanta, Georgia USA pma.com/events/freshsummit

Schedule-at-a-Glance

PRODUCE MARKETING ASSOCIATION, 2015

SCHEDULE AT-A-GLANCE Thursday, October 22 12:30 p.m. – 5:00 p.m.

Retail Produce Tour*

Friday, October 23 7:00 a.m. – 8:30 a.m.

PMA Foundation Women’s Fresh Perspectives Leadership Breakfast* 8:45 a.m. – 10:15 a.m.

Workshop Series I: Global Connections: Psychographics 101 – Unlocking Opportunities With Consumer Insights Science and Technology: Data in Produce Part One. Everything is Connected: Technology, Safety & Transparency Industry Talent: How to Kick-Start Your Career Floral: Marketing Your Palette – Color Trends to Guide Your Business 10:30 a.m. – 12:30 p.m.

Brunch General Session 12:45 p.m. – 2:15 p.m.

Workshop Series II: Global Connections: Unpeeling the Promise – and Complexity – of International Trade Agreements And Who’s the Key to Building Sales? Meet Your Produce Manager

GEORGIA WORLD CONGRESS CENTER ATLANTA, GEORGIA OCTOBER 22-25, 2015

Science and Technology: Data in Produce Part Two – Behind the Numbers, Leveraging Data to Promote Food Safety

5:00 p.m. – 6:30 p.m.

PMA Foundation Young Professionals Reception (Ticket required)

Issues Leadership: Unpeeling the Promise – and Complexity – of International Trade Agreements

5:30 p.m. – 6:30 p.m.

President’s Invitational Reception (Ticket required)

Industry Talent: Top Talent – Motivate, Retain, and Effectively Communicate with Your Ideal Team

6:30 p.m. – 8:30 p.m.

Welcoming Reception*

Floral: Going Omni – Building the Model Floral Supply Chain

Saturday, October 24

2:35 p.m. – 4:05 p.m.

Workshop Series III:

7:45 a.m. – 9:45 a.m.

Breakfast General Session

Global Connections: All Together Now – Category Marketing to Grow Sales

9:30 a.m. – 10:00 a.m.

Fresh Summit 101

And

10:00 a.m. – 5:00 p.m.

Exposition

From Here to There: Exploring Global Shipping Trends Science and Technology: Data in Produce Part Three. Advanced Technologies: Supercomputing, Science & Your Business Issues Leadership: From Here to There – Exploring Global Shipping Trends Industry Talent: Thinking like a Global CEO Floral: Targeting Floral Customers – Understanding Generational Buying Patterns 3:15 p.m. – 5:00 p.m.

Emerging Leaders Program Capstone and Graduation 4:00 p.m. – 5:00 p.m.

Fresh Ideas in Action Reception

Sunday, October 25 7:45 a.m. – 9:45 a.m.

Breakfast General Session 10:00 a.m. – 5:00 p.m.

Exposition

Canadian Media Sponsor FOR THE FULL SCHEDULE VISIT: PMA.COM/EVENTS/FRESHSUMMIT

* May require separate registration grocerybusiness.ca

September | October 2015

35

98

CE U D PRO

%

R O D VEN

R O S ADVI

Canadians plan to

increase or maintain their current purchases of

of organic food this year

*

ANIC ORG

Mike & Mike’s at a Glance ESTABLISHED: 2004 LOCATION: Vaughan, Ont. SOURCE: Directly from certifiedorganic produce growers in Ontario, Quebec and B.C., as well as carefully selected sources in the United States and internationally DISTRIBUTION: Independent health and natural food retailers including Fiesta Farms, Nature’s Emporium and

Mike & Mike’s: Delivering on quality, selection and personalized service Mike & Mike’s is the go-to source for hundreds of fresh, certified-organic fruits and vegetables, and that includes offering customers time-saving, personalized services and solutions.

Every member of the M&M team thoroughly understands the esthetic and taste variations of more than 300 types of certified-organic produce arriving at the distribution warehouse. The sales team is in daily contact with retail customers who trust M&M to fill their customized orders. M&M delivers directly to stores across the Greater Toronto Area, six days a week.

Organic Garage, as well as chains such as Longo’s.

STAFF: 40 full-time employees

mikeandmikesorganics.com

M&M’s Growth Curve

2012

M&M is unique in the Ontario market for offering retailers an organized, responsive, solution-based approach to purchasing certifiedorganic fresh fruits and vegetables.

2013

2014

M&M’s offers the largest selection

M&M:

300+

different items All other suppliers combined: 100 items

“Ordering through Mike & Mike’s is seamless.

The product being delivered is always fresh and always on time.”

VALUE

The of the Canadian organic food market

3X

HAS GROWN

since 2006*

Heather Billingsley Mama Earth Organics

CERTIFIED ORGANIC MORE THAN

20 million

CANADIANS BUY ORGANIC PRODUCTS WEEKLY*

It’s all we do

• Dedicated team operating 6 days a week • Largest and widest variety of organic produce available • Long-standing relationships with our growers • 43,000 sq.-ft. facility allows for proper storage of fruits and vegetables • Responsible environmental policies practiced in our facility • Less than perfect food is delivered to Second Harvest

40%

mikeandmikesorganics.com

of organic

sales mainstream retail are

fresh fruit & vegetables* * Statistics courtesy of the Canada Organic Trade Association (COTA).

For more information, visit ota-canada.ca

Produce Manager

MUCCI FARMS

GREEN & GROWING

By Mary Del Ciancio

It’s no secret that consumers – more health-conscious and information-hungry than ever before – are looking for convenient, nutritious snacking options to fuel their busy lifestyles.

That’s where Mucci Farms comes in. The family-run business, which operates 180 acres of greenhouses in Kingsville, Ont., conducts countless hours of research and development to meet those needs for children and adults across Canada and the U.S. In the last two years alone, the company has released more than 10 new products – the most in its 48-year history.

Over the years, the company’s offerings have grown and evolved, much like the

market it serves – ranging from traditional beefsteak and cluster tomatoes, to traditional long English cucumbers and mini-cucumbers, to a variety of sweet and hot peppers. It also offers specialty items like eggplant, lettuce, fresh herbs and strawberries. Its most recent innovations include CuteCumbers (snacksized cocktail cucumbers), as well as Veggies to Go – sweet grape tomatoes, mini pointed peppers and snack-sized cucumbers designed to be a healthy, on-the-go snack for kids.

“The research and development is ongoing,” says Emily Murracas, director of marketing. “There is a tremendous amount of time and work involved prior to the release of a new product.”

The Mucci Farms team travels the world in search of the most flavourful products – the new “wow” items it can introduce to Canadian consumers. It talks to seed companies, breeding houses, growers and trial houses across the globe, and trials hundreds of varieties in its greenhouses before taking them to market. The marketing team also conducts focus groups, and researches industry and consumer trends to ensure its product and package development are on-message.

“It’s a long process, bringing an item from concept to retail shelves,” says Joe Spano, co-owner of Mucci Farms.

Packaging is often the most challenging part.

Mucci Farms Fast Facts Founded

1967 Number of Employees

800 38

Operation: 150 acres of greenhouses, plus an additional 30-acre expansion finishing this fall, and 400 acres of support growers in Ontario.

Company owners Bert Mucci, Gianni Mucci, Danny Mucci, Joe Spano

September | October 2015

Distribution Canada and the U.S.

FASTEST-GROWING PRODUCT:

CuteCumbers snack-sized cucumbers

NATURAL INNOVATION Mucci Farms is on a roll. In the last two years, the company has launched more than 10 products – some of which are not traditionally grown in greenhouses.

Its new releases include:

“We are confident in the high quality and superior flavour of our products,” says Murracas. “However, first impressions mean everything. Our products need to stand out on the shelves [and] jump out at consumers.”

The packaging must also offer convenience for consumers, yet stay true to Mucci Farms’ sustainability and production efficiency goals.

For its new, mini specialty items, Mucci Farms has created packaging for the “graband-go” lifestyle. It is smaller in size (three- to 10-ounce packages), convenient (stand-up, handle bags) and more sustainable (its top seal packaging uses 25 to 30 per cent less plastic), and features high graphic printing geared towards children to help promote healthy snacking options.

In addition, packaging must satisfy the needs of the information-hungry customer.

“Consumers need to be reassured they are making smart choices,” says Murracas.

Mucci Farms’ packaging educates consumers with nutritional information and environmental benefits, and reassures them with the non-GMO certification logo. It also demonstrates product usage with recipe photos, as well as suggestions (i.e., “I’m the perfect half-time snack”; or “Pack me in your lunch”), and uses QR technology to direct them to further resources and recipes.

The company’s marketing efforts extend beyond packaging; it also works with its retail partners – most major retailers in northeast

grocerybusiness.ca

and southeast Canada and the United States – to create convenient, retail-ready display units and in-store signage.

“We feel we mastered it,” says Murracas, explaining that the specialty packs have been finalists for the last two years in the Produce Marketing Association’s IMPACT AWARD Competition, which recognizes companies that use innovation and packaging to maximize the selling of fresh produce. In fact, Mucci Farms won last year with its new pint top seal package, which is used for many of its tomato varieties.

The company continues to tailor its research and marketing efforts to quickly evolving consumer needs, and, as co-owner Spano remarks, “Our best work, we haven’t even done yet.”

• Naked Leaf Living Lettuce and herbs (the root is left on to maximize flavour and prolong shelf life) • Smuccies sweet strawberries (greenhouse-grown and thus always in season) • Hot Shots, mixed hot peppers • Veggies to Go, healthy, on-the-go snacks for kids

Colourful packaging and the popular “eat brighter!” campaign graphics encourage children and their families to choose healthy snacks.

September | October 2015

39

CE U D PRO

R O D VEN

R O S ADVI ES DAT

SPONSORED BY:

Thank you, retailers!

For making this our best year ever in Canada, with sales up 20%!

Natural Delights Medjool Dates

163%

are the King of Dates. They offer a melt-in-your-mouth caramel taste and chewy texture, amazing versatility, lots of antioxidants, a lovely amber colour and easy portability.

Medjools are grown in the ideal climate of the Bard Valley straddling California and Arizona, which produces the biggest, moistest, and sweetest dates in the world.

Datepac LLC Datepac remains the largest and most modern Medjool

New

date packing and marketing facility in the U.S.

20%

GROWTH OVER THE LAST 6 YEARS

215%

07/08 – 13/14

13/14 – 2015

TOP

10 in sales

Dates are now among the top 10 fastest growing categories in the produce section over the past year, according to Nielsen.

ADDITIONS TO OUR FAMILY This fall, Natural Delights is introducing our new Pumpkin Pie Spiced and Dark Chocolate Orange date rolls. Each is available for a limited time each year.

And perennial favourites Almond and Coconut date rolls are available in redesigned tubs. These four SKUs are line-priced and come in 12-oz tubs.

MEDJOOLS & THE HOLIDAYS Arriving at the height of Natural Delights’ peak season, Festive Holiday trays are ideal for entertaining and seasonal gift giving.

MEDJOOL MERCHANDISING Place Natural Delights Medjool Dates on or near banana tables and in the fresh-cut or value-added fruit sections.

Use floor-standing shipper/displayers for: PRIME SELLING MONTHS Jan.

Health & Wellness

Jul.

Feb.

Valentine’s Day

Aug.

Easter

Oct.

New Crop

Nov.

May Jun.

Ramadan 2016 June 6 - July 5

Sep.

Mar. Apr.

Ramadan

Ramadan

Dec.

Holidays

Store Medjool dates in your cooler, away from all moisture.

12 inches Holiday Platter

8 inches Holiday Tray

A combination of Pitted Medjool Dates, Coconut, Almond Date Rolls with Chocolate Dip

3 Delicious Date Roll Flavours: Coconut, Dark Chocolate Orange and Almond

120%

That’s the retail sales lift you can expect from our displayer!

Shoppers are looking for non-GMO labelling Natural Delights Medjool Dates are all proudly non-GMO. And we’ll soon carry this claim on all packaging.

asonal e s w e N ts produc

And we still offer our complete line of whole Medjool dates—available in organic and in bulk boxes.

BER T-OCTO AUGUS iced p S ie

BONUS!

in P

Pumpk

R-D

BE NOVEM

Natural Delights shipper/ displayers easily adapt to reflect the seasons, with 10 eye-catching, themed header cards.

ER ECEMB

te hocola Dark C

Orange

WWW.NATURALDELIGHTS.CA

11-lb. bulk box

For more information on merchandising and promotional tools, or a “Promo-in-a-Box” kit, please contact Ken Berger at kenb@naturaldelights.com or 416-200-7207.

SAVE the DATE:

OCTOBER 2325, 2015 ATLANTA, GEORGIA USA

FRESHSUMMIT.COM • #FRESHSUMMIT

RATEGICLEA DERSHIPSTRA TEGICLEADE RSHIPSTRATE GICLEADERSH STRATEGIC LEADERSHIP YOGOURT 2015 •

RATEGICLEA DERSHIPSTRA TEGICLEADE RSHIPSTRATE GICLEADERSH STRATEGIC LEADERSHIP YOGOURT 2015 •

PLAIN YOGOURT A healthy snack & versatile ingredient

STRATEGIC LEADERSHIP – CATEGORY SNAPSHOT

C

anadian consumers continue to turn to the yogourt aisle as they crave great-tasting, better-for-you products. Yogourt consumption has expanded beyond breakfast, and

is now being enjoyed throughout the day and into the evening as a healthy dessert.

Plain yogourt, a popular snack for many Canadians, is enjoyed not only on its own, but with accompaniments such as blueberries, strawberries and granola.

A clean & wholesome food choice The “eat clean” trend – a conscious avoidance of

Plain yogourt is also an important ingredient in the kitchen, and used not only in recipes, but as a base for dips and marinades.

processed foods and artificial ingredients – continues to remain top of mind for consumers when making their purchase decisions at shelf.

Source: Astro Original Usage Study, June 2015

Growth within the Natural yogourt segment is

MARKET FACTS

76%

explained by this trend as consumers seek shorter,

THE YOGOURT CONSUMER

simpler ingredient lists, known as “clean labels.”

$1.4 BILLION

$78.60

15.7

Value of Category

Basket Size

Average # of Trips

Consumption in the yogourt category

of consumers use Plain yogourt as a cooking or baking ingredient in a variety of both sweet and savory dishes.

continues to grow, and is now valued at $1.4 billion. Yogourt in tubs continues to be the largest segment within the yogourt category, representing 83% of the total dollar sales.

RETAILER TIP

Greek Yogourt Strengthens Greek yogourt momentum continues, as it is now the largest segment within the yogourt category. In fact, on a YTD basis, the Greek yogourt

Within the yogourt in tubs segment, Weight Management has been negatively affected

TOTAL YOGOURT IN TUBS = $1,137,593

as consumers shift to Greek, Natural, and Functional product offerings.

12.6%

The drinkable yogourt segment, which remains the second-largest segment,

3.3%

accounts for 10.4% of dollar sales, and

TL ORGANIC YOGOURT (-1%)

is posting growth at +2% versus YA.

TL NATURAL YOGOURT (+2%)

10.3% TL TASTE YOGOURT (+2%)

With taste being the primary

dollar share growth is stronger than the dollar share growth delivered

purchase driver for Greek yogourt

in 2014. Innovation continues to be the driver of that growth from

consumers, having a wide brand/

larger size formats and new brand/flavour offerings.

to continue to achieve

difference between good fats like the fat found

TOTAL GREEK YOGOURT $ SHARE %

Consumers are turning to higher-fat yogourt

within the dairy case who have yogourt in

28.4%

26.4%

TL GREEK YOGOURT (+7%)

TL FUNCTIONAL YOGOURT (+3%)

18.4%

STRATEGIC LEADERSHIP • 2015

in most dairy products, and unhealthy fats that should be avoided.

valuable to the retailer. Shoppers purchasing

Data Source: Nielsen G/D/MM PE June 27, 2015; Nielsen XOF

both indulgent and healthy. Consumers are also fat, as part of a healthy diet. They understand the

double-digit growth.

The yogourt consumer continues to be

$57.69.

grow as consumers look for products that are

becoming more educated on the importance of

teen/taste segment, at +7%.

at $78.60, compared to those who don’t, at

D

essert-inspired flavour offerings continue to

flavour assortment is important

The growth is being driven by the

their carts have a much higher basket ring,

HEALTHY INDULGENCE

TL WEIGHT MANAGEMENT YOGOURT (-15%)

Astro Athentikos is creamy and delicious Greek yogourt available in unique flavours.

2013

25.5

products available in decadent flavours like Cappuccino, Caramel and Lemon to satisfy their craving for an indulgent dessert.

2014

2015 YTD

27.3

30.0

For recipe ideas, visit www.astro.ca or the Astro YouTube channel: https://www.youtube.com/user/astroyogourt

STRATEGIC LEADERSHIP • 2015

PLAIN YOGOURT A healthy snack & versatile ingredient

STRATEGIC LEADERSHIP – CATEGORY SNAPSHOT

C

anadian consumers continue to turn to the yogourt aisle as they crave great-tasting, better-for-you products. Yogourt consumption has expanded beyond breakfast, and

is now being enjoyed throughout the day and into the evening as a healthy dessert.

Plain yogourt, a popular snack for many Canadians, is enjoyed not only on its own, but with accompaniments such as blueberries, strawberries and granola.

A clean & wholesome food choice The “eat clean” trend – a conscious avoidance of

Plain yogourt is also an important ingredient in the kitchen, and used not only in recipes, but as a base for dips and marinades.

processed foods and artificial ingredients – continues to remain top of mind for consumers when making their purchase decisions at shelf.

Source: Astro Original Usage Study, June 2015

Growth within the Natural yogourt segment is

MARKET FACTS

76%

explained by this trend as consumers seek shorter,

THE YOGOURT CONSUMER

simpler ingredient lists, known as “clean labels.”

$1.4 BILLION

$78.60

15.7

Value of Category

Basket Size

Average # of Trips

Consumption in the yogourt category

of consumers use Plain yogourt as a cooking or baking ingredient in a variety of both sweet and savory dishes.

continues to grow, and is now valued at $1.4 billion. Yogourt in tubs continues to be the largest segment within the yogourt category, representing 83% of the total dollar sales.

RETAILER TIP

Greek Yogourt Strengthens Greek yogourt momentum continues, as it is now the largest segment within the yogourt category. In fact, on a YTD basis, the Greek yogourt

Within the yogourt in tubs segment, Weight Management has been negatively affected

TOTAL YOGOURT IN TUBS = $1,137,593

as consumers shift to Greek, Natural, and Functional product offerings.

12.6%

The drinkable yogourt segment, which remains the second-largest segment,

3.3%

accounts for 10.4% of dollar sales, and

TL ORGANIC YOGOURT (-1%)

is posting growth at +2% versus YA.

TL NATURAL YOGOURT (+2%)

10.3% TL TASTE YOGOURT (+2%)

With taste being the primary

dollar share growth is stronger than the dollar share growth delivered

purchase driver for Greek yogourt

in 2014. Innovation continues to be the driver of that growth from

consumers, having a wide brand/

larger size formats and new brand/flavour offerings.

to continue to achieve

difference between good fats like the fat found

TOTAL GREEK YOGOURT $ SHARE %

Consumers are turning to higher-fat yogourt

within the dairy case who have yogourt in

28.4%

26.4%

TL GREEK YOGOURT (+7%)

TL FUNCTIONAL YOGOURT (+3%)

18.4%

STRATEGIC LEADERSHIP • 2015

in most dairy products, and unhealthy fats that should be avoided.

valuable to the retailer. Shoppers purchasing

Data Source: Nielsen G/D/MM PE June 27, 2015; Nielsen XOF

both indulgent and healthy. Consumers are also fat, as part of a healthy diet. They understand the

double-digit growth.

The yogourt consumer continues to be

$57.69.

grow as consumers look for products that are

becoming more educated on the importance of

teen/taste segment, at +7%.

at $78.60, compared to those who don’t, at

D

essert-inspired flavour offerings continue to

flavour assortment is important

The growth is being driven by the

their carts have a much higher basket ring,

HEALTHY INDULGENCE

TL WEIGHT MANAGEMENT YOGOURT (-15%)

Astro Athentikos is creamy and delicious Greek yogourt available in unique flavours.

2013

25.5

products available in decadent flavours like Cappuccino, Caramel and Lemon to satisfy their craving for an indulgent dessert.

2014

2015 YTD

27.3

30.0

For recipe ideas, visit www.astro.ca or the Astro YouTube channel: https://www.youtube.com/user/astroyogourt

STRATEGIC LEADERSHIP • 2015

PLAIN YOGOURT A healthy snack & versatile ingredient

STRATEGIC LEADERSHIP – CATEGORY SNAPSHOT

C

anadian consumers continue to turn to the yogourt aisle as they crave great-tasting, better-for-you products. Yogourt consumption has expanded beyond breakfast, and

is now being enjoyed throughout the day and into the evening as a healthy dessert.

Plain yogourt, a popular snack for many Canadians, is enjoyed not only on its own, but with accompaniments such as blueberries, strawberries and granola.

A clean & wholesome food choice The “eat clean” trend – a conscious avoidance of

Plain yogourt is also an important ingredient in the kitchen, and used not only in recipes, but as a base for dips and marinades.

processed foods and artificial ingredients – continues to remain top of mind for consumers when making their purchase decisions at shelf.

Source: Astro Original Usage Study, June 2015

Growth within the Natural yogourt segment is

MARKET FACTS

76%

explained by this trend as consumers seek shorter,

THE YOGOURT CONSUMER

simpler ingredient lists, known as “clean labels.”

$1.4 BILLION

$78.60

15.7

Value of Category

Basket Size

Average # of Trips

Consumption in the yogourt category

of consumers use Plain yogourt as a cooking or baking ingredient in a variety of both sweet and savory dishes.

continues to grow, and is now valued at $1.4 billion. Yogourt in tubs continues to be the largest segment within the yogourt category, representing 83% of the total dollar sales.

RETAILER TIP

Greek Yogourt Strengthens Greek yogourt momentum continues, as it is now the largest segment within the yogourt category. In fact, on a YTD basis, the Greek yogourt

Within the yogourt in tubs segment, Weight Management has been negatively affected

TOTAL YOGOURT IN TUBS = $1,137,593

as consumers shift to Greek, Natural, and Functional product offerings.

12.6%

The drinkable yogourt segment, which remains the second-largest segment,

3.3%

accounts for 10.4% of dollar sales, and

TL ORGANIC YOGOURT (-1%)

is posting growth at +2% versus YA.

TL NATURAL YOGOURT (+2%)

10.3% TL TASTE YOGOURT (+2%)

With taste being the primary

dollar share growth is stronger than the dollar share growth delivered

purchase driver for Greek yogourt

in 2014. Innovation continues to be the driver of that growth from

consumers, having a wide brand/

larger size formats and new brand/flavour offerings.

to continue to achieve

difference between good fats like the fat found

TOTAL GREEK YOGOURT $ SHARE %

Consumers are turning to higher-fat yogourt

within the dairy case who have yogourt in

28.4%

26.4%

TL GREEK YOGOURT (+7%)

TL FUNCTIONAL YOGOURT (+3%)

18.4%

STRATEGIC LEADERSHIP • 2015

in most dairy products, and unhealthy fats that should be avoided.

valuable to the retailer. Shoppers purchasing

Data Source: Nielsen G/D/MM PE June 27, 2015; Nielsen XOF

both indulgent and healthy. Consumers are also fat, as part of a healthy diet. They understand the

double-digit growth.

The yogourt consumer continues to be

$57.69.

grow as consumers look for products that are

becoming more educated on the importance of

teen/taste segment, at +7%.

at $78.60, compared to those who don’t, at

D

essert-inspired flavour offerings continue to

flavour assortment is important

The growth is being driven by the

their carts have a much higher basket ring,

HEALTHY INDULGENCE

TL WEIGHT MANAGEMENT YOGOURT (-15%)

Astro Athentikos is creamy and delicious Greek yogourt available in unique flavours.

2013

25.5

products available in decadent flavours like Cappuccino, Caramel and Lemon to satisfy their craving for an indulgent dessert.

2014

2015 YTD

27.3

30.0

For recipe ideas, visit www.astro.ca or the Astro YouTube channel: https://www.youtube.com/user/astroyogourt

STRATEGIC LEADERSHIP • 2015

RATEGICLEA DERSHIPSTRA TEGICLEADE RSHIPSTRATE GICLEADERSH STRATEGIC LEADERSHIP YOGOURT 2015 •

Produce by the Numbers

THE POWER OF

PRODUCE Action taken when encountering out-of-stocks on intended item FRESH FRUIT

55% 26% 18%

BACK-TO-SCHOOL WITH ROCHA PEARS

FRESH VEGETABLES

48% 18% 19%

P H O T O G R A P H Y A N D S T O RY B Y M E A G H A N S M I T H

Buy another item

Wait until next visit

Go to another store

Source: Food Marketing Institute

With its origins dating to 1836, the Rocha pear has a long and delicious history. The tree’s roots can be traced back to the Sintra municipality of Portugal, where Pedro Antonio Rocha identified a new and unique pear growing on his property. Juicy, sweet, crunchy, and grown only in Portugal, Rocha literally means Rock Pear.

Because they travel so well and have an exceptional shelf life, Rocha pears pair deliciously with back-to-school lunches or snacks.

Merchandise them as part of your back-toschool solution centre for maximum sales lift.

TOP 5

TREND DRIVERS Dates: +40 Cherries: +40 Salad – Bagged: +27 Lemons: +23 Tangerines/Clementines/ Mandarins: +20 Source: Nielsen Market Track, National/All Channels, 52 weeks ending June 27, 2015

Despite the trend to “ugly” fruit and vegetables, the top purchase driver is still appearance

1 2 3

Fresh Fruit

Fresh Vegetables

APPEARANCE APPEARANCE

RIPENESS

PRICE

PRICE

SPOILAGE TIME

Source: Food Marketing Institute

grocerybusiness.ca

September | October 2015

49

Ken Keelor

LOCAL HERO

by Sally Praskey

PHOTOS: BRIAN HARDER

Ken Keelor brings an extensive background in retail to Calgary Co-op’s competitive and rapidly evolving marketplace.

LOCAL HERO In a highly competitive market, Calgary Co-op stands out. Owned by its members and locally operated, it is one of the largest retail co-operatives in North America. Its member-owners share in the retailer’s profits, which engenders a special kind of loyalty and translates into a competitive edge other retailers find hard to match.

Still, that competitive advantage doesn’t mean Calgary Co-op takes its success for granted; its stores must offer a shopping experience that is second to none. In 2014 alone, it renovated nine stores, winning numerous awards and accolades along the way.

Ken Keelor joined as CEO in November 2014.

Acknowledging that the Calgary area is experiencing a downturn due to the slumping oil industry, he says the company is focussed on delivering maximum value to its member-owners.

Meanwhile, Keelor continues to seek ways to enhance the shopping experience. “We’re working on things digital because we know that’s very important to today’s customer,” he says. “We started with the most important, which is the four walls of the store and the offering. But we fully realize we have to do more digitally.”

Keeler says the company will continue to grow, albeit perhaps more slowly given the economic turmoil in Alberta. And while he won’t divulge details at this point, he says, “there are things in the pipeline – in food, in gas, in wine, spirits and beer, and home health care.”

Grocery Business spoke with Keelor to find out more about this successful and hyperlocal co-operative enterprise.

CALGARY’S A VERY COMPETITIVE MARKET – WHAT ARE THE ADVANTAGES OF BEING A CO-OP? What’s unique about us is that we’re owned by our members. So it’s much more of an intimate relationship – both emotional and financial – that our members have with us. When I joined Calgary Co-op, I went into one of our stores, and for a dollar, I became a member-owner. The owners share in our annual profits. What’s the big deal with that? Well, last year, we returned $34.6 million to them. That’s a huge amount.

As a Co-op member, you own a piece of the company. And every year, you get shares, as well as some cash. Over time, you build up equity and interest in our company. This is the financial side of it.

But there’s also a very intimate relationship because we truly are local. I always say, “we’re born and raised in Alberta.” So that means we truly understand and care about our local communities because we live in them. Our head office is here. Public corporations have an edge to them that does not exist at Calgary Co-op because we are very much a family.

CALGARY CO-OP IS IN THE SWEET SPOT OF THE “LOCAL” TREND. Yes, and because we’re truly a local company, with longstanding vendor partnerships, this focus provides us with a competitive

52

September | October 2015

advantage. We will never move off that key pillar of our business.

We can’t. We feel we own it and our community expects it.

I like to say that “we live out the local economy every day.”

We’ve had great success with initiatives like our Farmers’ Markets, where we showcase local products from local producers.

HOW MANY CALGARY CO-OP MEMBERS ARE THERE? We have 440,000 members. To give you an idea, Calgary has a population of about 1.24 million. They’re good numbers, but we believe we can grow it more.

WHAT’S THE FASTEST-GROWING PART OF YOUR BUSINESS? We are growing on restaurant-style food; on healthier and better-for-you choices across our businesses; and, of course, on our multicultural offerings.

We’ve launched things like Fresh to Go [prepared foods] and a curry bar. And although we’ve updated and renovated our stores extensively, we still have quite a bit more to do.

IS THE ECONOMIC DOWNTURN AFFECTING BUSINESS? We know that some of our consumers are going through tough times, but they are very loyal, and people still need to eat, and they need to pick-up their prescriptions. We expect our members will seek more value. And that is one thing we have been focusing on and will continue to proactively focus on.

grocerybusiness.ca

Ken Keelor BIO Place of birth: England Education: MBA Marketing (Bajaj Institute of Management Studies, Mumbai, India); B.Sc. Physics Honours Currently reading: G3: The Gift of You, Leadership, and Netgiving, by Tim Cork Favourite movie: The Great Escape (“now I’m dating myself!”)

Favourite band: Pink Floyd Family: “No kids, no pets, no potted plants. That philosophy allowed my wife and me to focus on what we have always loved the most – our careers and serving others.”

Calgary Co-op Fast Facts Annual Sales: Over $1.2 billion Number of members: 440,000 Number of employees: 3,700 Retail platforms in the greater Calgary area: Food stores; pharmacies; gas bars; car washes; home health centres; and wines, spirits and beer locations.

September | October 2015

53

LOCAL HERO KEELOR ON LEADERSHIP LEADERSHIP STYLE Inclusive and a balance of business results with people/team development.

WHAT I’VE LEARNED Results are important, but what’s even more important is inspiring people to achieve joint goals.

HIRING CRITERIA Great attitude, solid business aptitude, and a balance between thought and action.

BIGGEST RISK Moving my wife and me across the world, to Canada, in our 20s.

SPEAKING OF CHALLENGING TIMES, WHY DO YOU THINK CO-OP ATLANTIC EXITED ITS SUPERMARKET BUSINESS? The Atlantic is a very tough market because it’s really been Walmart versus Superstore on price. They were completely surrounded by discount. So the challenge for Co-op Atlantic was to come up with something that was meaningful and different, and not get sucked into the vortex of price and item. If you start investing solely in that, or you are forced to by your competitors, you’ll lose track of the long term. Your offering needs to be something different and very special.

WHAT DO YOU FEEL CONSUMERS ARE LOOKING FOR IN THEIR GROCERY SHOPPING EXPERIENCE? It still always starts with location and price – you have to be competitive in that space.

But then there are some other functional attributes that consumers are focused on these days, for example, quality and freshness. The consumer expects great value but at the same time, wants a better shopping experience. Calgary Co-op is a different, more personal shopping experience from a big-box store, and people choose to shop with us for that reason.

The functional side is very important, of course – price, quality, location and freshness.

But then, we always ask: what more can we add to make the experience extraordinary?

BEST CAREER ADVICE Formulate and drive toward your goals, incorporating a balance between career and relationship.

SPIRITS GUIDE

MOST IMPORTANT LEARNING

Calgary Co-op operates a Wine Spirits Beer division, with its own management team. For grocers new to the game (B.C. and Ontario, are you listening?), Keelor describes best practices:

It’s about health and happiness; everything else is window dressing.

• O ur boutique stores are beautiful, because ambience is important and the product should be showcased properly;

FAVOURITE QUOTATION

• C ustomers are looking for assortment and popular items like craft beers and vintage wines;

“Be genuine, be authentic, be yourself – because everyone else is already taken.”

• C ustomers expect to engage with knowledgeable staff who can recommend pairings or suggest the appropriate wine for a meal; • G reat service is an important part of the experience. For instance, we have a locker program. Our sommeliers will stock the customers’ locker with wine and a sheet describing what’s unique about each one. The customer has no idea what they’ll find when they open the locker door but all the work has been done for them.

grocerybusiness.ca

September | October 2015

55

Canadian Water Network

Food Processors of Canada

Perspective

The Trans Pacific Partnership and Supply Management – Caution Required

By John F.T. Scott

Those who know me will probably be surprised by this article, given my longstanding opposition to the sanctioned cartels of supply-managed products in Canada’s agricultural sector. However, as the critical factors determining Canada’s inclusion in the Trans-Pacific Partnership (TPP) have been placed under the microscope, a few unsettling issues have emerged.

Both the U.S. and New Zealand are demanding unfettered access to our dairy markets, citing unfair subsidization and protectionism of this domestic sector. The consumer tends to agree because of the price differential on the shelf. But other than scale, the real costs are actually very close.

The cost of the Canadian subsidy is borne by the individual consumer, whereas in the U.S., it is shouldered by the taxpayer in aggregate.

The extent of the American subsidization is enormous (The Economist suggests “egregious”), and is exacerbated each year by the Farm Bill. Add that the fluid product merchandised by the U.S. industry is of differing quality to that of Canada, and the whole issue becomes murky indeed.

There are two other factors that will, I suspect, shortly emerge. First, both the U.S.

grocerybusiness.ca

and N.Z. have exported dairy protein products into Canada with impunity, whereas Canada’s dairy farmers have been precluded from exporting similar products because of an early World Trade Organization ruling. Hence we see reports of such products being dumped or used as animal feed by our farmers. Welcoming new sectoral imports while our farmers lack the same opportunity will place our domestic industry in jeopardy.

And no, it’s not the same as the issues the wine industry faced under the North American Free Trade Agreement.

Second, as long as we are competing against countries that use their natural capital (water, air, energy) with limited concern, Canada will be at a disadvantage. And consider the depletion and subsequent collapse of ancient aquifers in areas such as California, where deep drilling provides an irreplaceable resource free of charge to the massive dairy herds, and you can appreciate the implications of this scary reality.

So where does it go from here? There is no question that Canada must be a player in the TPP. It is also obvious that Canada must address its supply-management systems, realising that they are unsustainable and will

only become more expensive to dismantle over time. These issues and others (quota value, for one) no doubt developed unintentionally. However, any adjustment that is made must preserve the integrity of the sector. Finally, political reality (all parties pledge allegiance to supply management – any votes out there?) will come into play, as most aspects of the TPP will be negotiated during the current election campaign.

I expect the result will be a hybrid resolution that the partners can embrace and the sector can accept. A lengthy adjustment period will undoubtedly prevail. Those anticipating cheaper milk in the near term will be disappointed. But the long view suggests that the necessary adjustments in supply management have already begun.

John F.T. Scott speaks, writes and consults on the food distribution sector. He is the author of “Perspectives on the Retail Food Industry,” an itinerant publication that explores various aspects of the industry.

September | October 2015

57

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Independents’ Day

Election

Call to Action Do you know where each federal party stands on issues that concern your business? Here’s why you should.

By Thomas A. Barlow

“One of the penalties for refusing to participate in politics is that you end up being governed by your inferiors.” So said the Greek philosopher Plato in 369 B.C. It’s still true today. In the midst of our current federal election campaign, every business owner, particularly a retail grocer, has a special obligation to know where your candidates stand on issues that are important to you. If grocers have an issue with a supplier, they don’t hesitate to let their views be known to the company or sales rep. It is no different in a political context. If there are issues you think your local representatives need to be aware of, you have nothing to lose by jotting off a quick e-mail to the candidates in your riding, or calling their campaign office and asking that they call you. During a campaign, they will. The contact information is posted on each party’s website.

Over the last few weeks, the Small Business Matters Coalition, of which the Canadian Federation of Independent Grocers (CFIG) is a member, has been communicating with the leaders of all three parties, along with all

grocerybusiness.ca

incumbents and candidates across the country. Concerns about credit-card swipe fees, pension reform, and the increasing cumulative costs of regulatory compliance are being put on the radar of candidates in the three major parties in constituencies across Canada.

An election campaign is a great opportunity to let your local candidates know who you are, and your importance to the economic health of their community.

But nothing drives home the importance of an issue to a politician more than having an understanding of how this impacts his or her own riding. Take just one issue, for example.

Tell your candidates, both as a business owner and a constituent, about how high credit-card swipe fees are eroding your bottom line, thereby impeding your ability to create jobs in the riding or reinvest in your store, and possibly even challenging your ability to continue serving the community.

Conservative Party: conservative.ca Liberal Party of Canada: liberal.ca New Democratic Party: ndp.ca

Most politicians probably don’t even know that Canadian businesses pay in the range of $5 to $7 billion in credit-card swipe fees. Fees are upwards of 1.5 per cent in Canada, and yet only 0.3 per cent in the U.K., Europe, and Australia. Ask why this is so, and what you can expect them to do about it.

Check out the links to the three major political parties:

For a full list of candidates, visit: elections.ca

Tom Barlow is president and CEO of the Canadian Federation of Independent Grocers, which represents more than 4,000 independent grocery retailers across Canada.

Email: tbarlow@cfig.ca

September | October 2015

59

Independents’ Day

2014 National Grocers Association

Financial Survey

The resilience of the independent grocer in a difficult environment was evident again in the latest Independent Grocers Financial Survey. The survey is the most recent published by FMS, in conjunction with the National Grocers Association, and reflects 2013 data. Although growing sales in a low-inflation environment proved challenging, inflation-adjusted growth held steady at +0.2%.

Net profits were slightly down, 1.51% versus 1.65% the prior year, and were impacted by rising U.S. health-care and utility costs.

Despite an uneven economy, the business savvy of these independents was evident as they emerged from one of the worst economic downturns in recent memory.

Annual Inventory Turns

17.2

16.1

16.4

Dairy: 33.0 Meat: 35.1 Produce: 48.9

2010

2011

2012

2013

*FMS Solutions provides independent retail grocers and supermarkets with the financial information needed to make informed operational decisions.

60

September | October 2015

Overall

1.51% 1.77% $100–$200k

1.87% $200–$300k

1.42% $300k>

Inventory Turns by Department Dry grocery: 14.8

18.6

% Net Profit

by Weekly Store Sales

Total Store Gross Margin

25.45%

Independents’ Day

Annual Shrink Total Store 3.2%

37.4%

Dairy: 2.2% Meat: 4.1%

Average turnover part-time

Produce: 5.3%

12.1%

Prepared Food: 8.3%

40.6%

Sales Distribution Across Departments

Share of employees working full-time

7.72%

Average turnover full-time

Miscellaneous

9.91%

56.4%

Total Produce

25.93% Total Meat

Total Grocery

Average # of Transactions Per Store, Per Week

LOYALTY PROGRAM:

12,500 10,000

Transaction Size

10,333 8,736

7,500

$27.15

5,000

W/O LOYALTY PROGRAM:

2,500

LOYALTY PROGRAM

grocerybusiness.ca

W/O LOYALTY PROGRAM

Scans

Per Minute

19.5

$22.81

September | October 2015

61

International: Chicago, Illinois

Mariano’s Fresh Market

By Karen James

While Chicago’s new Eataly grocery/resto/bar is a gleaming retail Euro-Star, the rapidly growing Mariano’s Fresh Market chain is its Dreamliner, with all the culinary comforts of home in a surprisingly intimate 70,000-sq.-ft. format. Although it’s been on the scene only since 2010, Mariano’s recently opened its 33rd location, setting its sights on a total of 50 stores in the greater Chicago area over the next few years.

The Wall of Wine

Steve Frenda, managing director of The Path to Purchase Institute, spoke with Grocery Business about the “treasure hunt,” and why Mariano’s has become Chicago’s grocery store of choice.

62

September | October 2015

WHY MARIANOS? WHY NOW? With the closing of several high-end grocers, the Chicago market has undergone lots of change. For example, Safeway shuttered 72 Dominick’s stores here. The shakeout meant that there was a void in the upscale market. And while Whole Foods is great on the perimeter, centre store can be lacking.

This left the door open for Mariano’s to come in with a great perimeter, a legitimate centre store offering and a highly developed sense of theatre.

Bob Mariano (president and CEO of Mariano’s owner, Roundy’s, a Milwaukee supermarket company), is a highly experienced retailer and his team is very savvy. I think they had the opportunity to build a “clean slate” grocery store, and the result was this outstanding offering.

An international flavour

Liquor for locavores Lighting the way to centre store

On-the-go snacking

Centre-store floor decal

POINTS OF DIFFERENTIATION With the exception of Wegmans, there’s probably not another U.S. retailer that has a perimeter as well thought-out and exciting as Mariano’s. Add to that competitive prices and a large centre store that skillfully blends conventional and specialty/gourmet, and you have a killer formula.

THE NET RESULT? When you put all this together – high shrink, a high-labour perimeter, reasonable centre-store pricing – you have to wonder about profitability.

But my belief is that they’ve created a new niche: the “treasure hunt” that Costco became so famous for. With Mariano’s, the treasure hunt is in a conventional store format. It’s a unique combination, and I think that it’s driving a much higher basket ring and customer loyalty. People, and I’m one of them, just really love to shop there.

“We want to entertain with food.”

Cooked-to-order BBQ

THE MAGIC OF MARIANO’S:

TAKEOUT OR DINE-IN Vero Coffee Company, featuring premium coffees and locally made gelato prepared with traditional Italian techniques.

Todd’s BBQ, offering daily smoked brisket, ribs, and more, served with a variety of sauces to fit shoppers’ tastes.

Oyster Bar, featuring freshly shucked oysters and specialty seafood dishes.

SQUEEZ’D smoothie bar, serving a variety of made-to-order fruit and vegetable smoothies, plus Mariano’s signature freshsqueezed orange, grapefruit and lime juice.

– Bob Mariano, president and CEO, Roundy’s Supermarkets, owner of Mariano’s Fresh Market grocerybusiness.ca

September | October 2015

63

3RD ANNUAL FOOD & CONSUMER PRODUCTS OF CANADA INVITATIONAL CHARITY GOLF TOURNAMENT JUNE 15, 2015

Pictured (l-r): Derek Nighbor and Nancy Croitoru, FCPC; Brian Fraser, chair partner, Gowlings; Jamie Moody, Tree of Life; Dan Carruther, PepsiCo; and Marc Guay, president (retired), PepsiCo.

64

September | October 2015

A swinging success, the Food & Consumer Products of Canada charity golf tournament raised more than $11,500 for Food Banks Canada.

DISTRIBUTION CANADA INC. SUPPLIER APPRECIATION DINNER

JUNE 17, 2015

Your Partner in Selling

1

2

5

6

1. G arth Mercer, Young & Young Trading (formerly with Galleria - KFT); Peter Cavin, Country Grocer and past chair DCI; Brian Parker, president, DCI 2. M ike Turcotte, Brent Stevens, Parmalat

4

3

8

7

3. Chris Powell, Tree of Life; Cori Bonina, Stong’s Market 4. Peter Knipfel, Chesley Grocery Store

5. Tom Barlow, CFIG; Tom Shurrie, Acosta 6. Shantel Forrester, Gino Vecia, Lumsden Bros.

7. Darlene and Merlen Kropf, L&M Markets; Sharon Gill, DCI 8. Mark Stire, Weston Foods; Mike Pugliese, Michael Angelo’s; Jim Bexis, Sun Valley Supermarkets

†

#1 Selling Organic Broth Brand in the USA The Perfect Starting Point for Delicious, Healthy Recipes The Trusted Brand for the Inspired Home Chef Packaged in a Reclosable, Easy to Pour Carton Fat Free & Gluten Free Certified to the Source Organic Ingredients

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NEW & NOW DISCOVERIES

A strong history of support Every year, Kruger Products introduces limited-edition Canadian Breast Cancer Foundation (CBCF) packages of Cashmere, Scotties and SpongeTowels during October Breast Cancer Awareness Month. Kruger Products has been a proud supporter of the CBCF since 2005, and is one of the Foundation’s top five national partners based on annual contribution and awareness-raising initiatives.

krugerproducts.ca

Go nuts for smoothies Happy Planet debuts a premium line of fresh, all-natural nut-based smoothies, made with all the goodness of almonds and cashews, and free from dairy, soy and any preservatives. Available in four flavours: Cold-brewed Coffee, Vanilla Chai, Salted Caramel and Chocolate.

happyplanet.com

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September | October 2015

Juice it up Freshline Foods’ new Juicing Kit offers consumers an easy and convenient way to incorporate more nutrient-rich fruits and vegetables into routine meal planning. The Kale Boost kit includes fresh-cut kale, carrots, apples, celery, beets and ginger. freshlinefoods.com

Uniquely healthful Prana Organics has combined chia seeds with two probiotic strains to offer consumers a vegan, GMO-free whole food with omega-3s and calcium.

Proactivchia is a uniquely healthful and convenient addition to cereals, yogurt and salads.

pranana.com

Naturally infused water Zpirit Infused Water is a unique and refreshing bottled water steeped with real herbs and featuring whole fruit pieces.

It’s made with natural ingredients and without any preservatives.

zpirit.com/infused-water

Hit the sweet spot Germany-based HARIBO debuts two new flavours to its Canadian lineup: Fruity Frutti candy, consisting of a foam bottom, berryshaped gummy top, and an infusion of sweet, fruity filling; and Sour Stixx, featuring unique flavours and a sour finish.

nationalimporters.com grocerybusiness.ca

September | October 2015

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Exciting new product news from

Oven ready Lasagna or Cannelloni Aurora broths: Beef, Vegetable, Chicken, and Chicken No Salt

auroraimporting.com

Mediterranean Teas Herbal and Black

Loacker Chocolate Tablets

Allessia Torrone Nougat Bars

Iconic Perugina Baci Milk Chocolate Pralines

Allessia Classic Panettone Cake 750g

it figures New Products:

Innovate Inform Interact

66% of consumers discovered a new product* while grocery shopping

44% 41%

Takeaway Opportunities may ultimately be won or lost within the store, so grocers need a creative and positive activation strategy to generate awareness and trial.

OF CONSUMERS FIND OUT INFORMATION FROM TV ADS VERSUS

FROM AN INTERNET SEARCH

Takeaway While TV still offers the widest audience reach, a multi-media approach is necessary to connect at all touch points. An ad should demonstrate usage and showcase standout creativity.

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September | October 2015

* For the purposes of the Nielsen Global New Product Innovation Survey, we define a new product as any item a consumer has never purchased in the past.

56

%

prefer to buy new products from familiar brands

Takeaway Leveraging a trusted brand through new products* can be very powerful. It is key to link with the core product while offering consistency, uniqueness and market relevance.

CONVENIENCE MATTERS:

49%

23% of consumers want more new products

that are convenient to use

want new products at affordable prices

Takeaway Successful innovation starts with a deep understanding of the consumer – the critical “why” behind the buy. Think time-saving, multi-benefit solutions that will simplify tasks.

50%

of consumers like to tell others about their new product purchases

46%

use social media networks to access new product information

Takeaway Word-of-mouth communication is evolving. Consumers are relying on additional sources like social media, so an online brand’s interactions need to be authentic and consistent.

Carman Allison is vice-president of consumer insights for Nielsen in Canada, and is responsible for creating thought leadership insights for CPG manufacturers and retailers.

Carman Allison

grocerybusiness.ca

Takeaway Consumers are looking for new products that don’t exceed their budget reach.

Understand what product versus price compromises consumers are willing to make, and find costdriven strategies that generate innovation.

A L L S TAT S C O U RT E S Y: N I E L S E N

September | October 2015

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Perry’s Point of View

IT’S A

3G WORLD 3G Capital has sent an audible shiver through the consumer packaged goods industry by improving operational effectiveness, reducing overhead costs and restructuring supply chains. Its culture of cost-cutting (using “zero-based budgeting” as a primary tool) is almost unprecedented in the food industry. It dramatically boosted operating margins at AB InBev, did it again at Heinz, and is in the process of doing it at Kraft. And just to show some versatility, it also did it at Burger King and is doing the same at Tim Hortons.

3G Capital also struggles to maintain sales and market shares of the brands it acquires.

AB InBev has lost market share since 3G’s involvement; Heinz has also lost share in many of its categories. Burger King has developed few innovative products. Organic growth is not of prime importance to 3G, so acquisitions are essential. Acquired companies generally have lots of costs to cut.

3G will soon have an enormous impact on Canadian food marketing and distribution.

Not just from 3G itself, but also from numerous consulting firms that have sprung up to sell the “3G philosophy.” The areas bound to see rapid change will be trade spending, innovation and infrastructure costs.

One of the ways 3G improved Heinz’s profitability was to reduce the amount of goods sold on promotion. It took an axe not

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September | October 2015

just to perceived “inefficient” trade spending, but also to trade spending in total. It is expected to do the same at Kraft, and doesn’t seem to be fussed about sales losses if profitability improves. This, of course, creates huge opportunities for competitors to pick up the spending slack and take market share from 3G’s brands. That is, until consulting firms selling the new “3G philosophy” convince other CPG companies that slashing trade spend is an appropriate way to boost profitability and improve share prices. If this trend spreads, Canadian supermarkets will suffer. Trade spending represents an enormous amount of grocers’ operating profit. It’s probable, however, that this will turn into an enormous game of chicken, with secondary and tertiary brands happy to fill in the trade-spending hole in order to grab shelf space.

Another way that 3G creates near-term value is to reduce spending in areas such as R&D and market research. Canada already has a dearth of truly innovative products coming out of the CPG universe, and the 3G philosophy (again – on sale at a consulting firm near you) could dry this up completely.

Grocers looking for innovation will have to rely either on their own private-label teams, or on smaller local CPG companies.

And, of course, if you haven’t been “ZBB’d,” you will. Consulting firms are selling these

programs under a variety of names – 3G should get royalties. It’s a hellish process supervised by tight-fisted consulting kids with MBAs. Certainly, it gets at the unnecessary expenses, but tends to cut lots of important stuff as well. A company can take years to recover its sales and marketing base, but operating profits get a quick and dramatic boost.

There are many assets and processes in the Canadian packaged goods world that are inefficient and archaic. 3G Capital, and its acolytes and emulators, will get at many of them. After a long, painful restructuring period, here’s hoping that innovation, promotion and excitement one day creep back into the industry.

And, if it’s on a smaller, more efficient asset base, so much the better.

Perry Caicco is the managing director for CIBC World Markets. His experience includes 15 years in the supermarket, general merchandise, and packaged goods industries. Perry is a founding member of the Grocery Business Advisory Board.

Helping shape a future without breast cancer.

10 years of proud support.

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2015 Produits Kruger L.P. ®’ Used under licence. TM Trademarks of the Canadian Breast Cancer Foundation, used under licence.

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