July/August 2016 by Grocery Business

July / August 2016 Vol 6 | No 4 $9.95

KARDISH HEALTH FOOD CENTRES CAREY & ROBERT ASSAF

PM # 42211029

EXCLUSIVE

MARKETING TO MIL LENNIAL

MOMS

Grocery Business July | August, 2016 Volume 6, Number 4

contents

Evergreen Herbs

DEPARTMENTS 6

Front End People & News

Open Mike Nobody rocks the boat anymore!

Perspective Why social licence matters

56 4

July | August 2016

Launch It, List It

It Figures

In Other Words

New & now discoveries

Summer sips

Loblaw’s “ask”

ON THE COVER

Progression 16 Natural Kardish Health Food Centre

44 45

FEATURES

PHOTO GALLERY

Itâ&#x20AC;&#x2122;s a Meal-Kit Moment

he Millennial Mom T is Here

42 DCI Supplier Appreciation

ood & Allied Industries F Golf Tournament Dinner

Advantage Retailer Report

rand Prix New Product G Award Winners 2015

WHOLE HEALTH

eloitte: Tax Rules are D Changing

Native Sun Natural Foods

O n Trend With Healthy Beverages

Evergreen Herbs: Growing Strong

P hoto Gallery: Canadian Health Food Association Show & Conference

Relationship building at its best

C O V E R P H O T O : J U S T I N VA N L E E U W E N

grocerybusiness.ca

July | August 2016

Front End

Transitions Lyne Castonguay has been appointed chief merchandising officer for Sobeys Inc. Previously, Castonguay held senior roles with The Home Depot. Marc Poulin has left his roles as president and CEO of Empire Company Limited and Sobeys Inc. François Vimard, Empire’s CFO and administrative officer, has been named interim president and CEO.

Walmart Canada has named Lee Tappenden (pictured) president and CEO, Walmart Canada, effective August 15. Tappenden replaces Dirk Van De Berghe, who will lead Walmart’s China business. Bob Hakeem replaces Tappenden as chief operations officer for Canada. Ken White is the new vice-president sales (Canada/U.S.) for Freybe Gourmet Foods Ltd. He most recently was national sales director, Coca-Cola Refreshments.

Distribution Canada Inc. has appointed Marc Fortin (pictured) president and CEO, replacing Brian Parker, who announced his retirement earlier this year. As part of his retirement transition from vicepresident sales at Pinnacle Foods Canada Corp., Stephen Peers is assuming the role of director, West & National Retail.

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Front End

The Canada Organic Trade Association has appointed Tia Loftsgard executive director. Loftsgard most recently was Fairtrade Americaâ&#x20AC;&#x2122;s chief operating officer. Lesley McKeever has retired as senior vice-president, industry relations, with GS1. She will continue to work with GS1 on a part-time project basis. David Thomson, former vicepresident of strategic marketing and investments with Coca-Cola Canada, has been named managing director of NFL Canada. BuyLow-Ad-July.pdf

2016-07-05

11:16 AM

Food & Consumer Products of Canada held its 4th annual charity golf tournament and bike rally on June 20, 2016. Taking part in the rally (l-r): Tim Peters, Mark Cator, Greg Beehler, Margaret Hudson, Douglas Ohori, Steve Turner, Fredrik Carlberg and Derek MacNeil.

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Avonlea Clothbound Wins Canadian Cheese of the Year COWS CREAMERY Cheesemaker Armand Bernard celebrating 5 wins for the PEI Company at the Canadian Cheese Awards in Montreal, Quebec.

ontreal, QC – It was a big day for COWS CREAMERY

for 12 – 18 months, housed in a cheese cave where temperature

at the Canadian Cheese Awards in Montreal, Quebec.

and humidity are both closely monitored.

The Prince Edward Island based company took home 5 awards at the prestigious event, including Cheese of the Year for their Avonlea Clothbound Cheddar. The Canadian Cheese Awards take place every two years, and the aim of the event is to showcase the best in

“We have a great team in place working to create all of our products,” says Andrea White, Wholesale Manager for COWS CREAMERY who also attended the awards. “We also have incredible customers across the country, and around the world who have been with us from the beginning.” In addition to the Cheese of the Year Award,

pure Canadian cheese made without artificial

COWS CREAMERY also received Best Aged

colours, flavours or preservatives and no modified

Cheddar for the Avonlea Clothbound. Their COWS

milk ingredients. A total of 301 cheese were

CREAMERY Appletree Smoked Cheddar was also a

submitted, with 78 finalists selected.

big winner, taking home awards for Best Smoked

COWS CREAMERY won several awards this

Cheese, Best Cow’s Milk Cheese and Best Atlantic

year, most notably Cheese of the Year which is

Canada Cheese. “It has been a very exciting few

selected from all category winners for their

days,” says White.

Avonlea Clothbound Cheddar. “We are just blown away,” says COWS

COWS CREAMERY produces three cheddar cheeses and three types of butters and are

CREAMERY Cheesemaker, Armand Bernard who

based in Charlottetown, Prince Edward Island.

was in Montreal to receive the award Thursday

In November of 2015, the Avonlea Clothbound

afternoon. “There are so many excellent producers

Cheddar was also recognized as “World’s Best

across the country, we’re incredibly honoured.” Avonlea Clothbound Cheddar is made with milk from dairy farms across Prince Edward Island, and is carefully aged by Bernard at COWS CREAMERY in Charlottetown. The wheels of cheddar are wrapped in cheesecloth and aged

Vintage Cheddar” and one of the top sixteen cheeses on the globe at the World Cheese Awards in the United Kingdom. For more information regarding Cows Creamery, please contact Whitney Hooper, at (902)628-3613 or whitney@cows.ca

Front End

Nancy Croitoru announces retirement from Food & Consumer Products of Canada Nancy Croitoru has announced her retirement as president and CEO of Food & Consumer Products of Canada (FCPC), the country’s largest association of companies that manufacture and distribute food, beverage and consumer packaged goods. Croitoru began her tenure at FCPC in 2003, having previously led GCI Group Canada, a public affairs agency. The FCPC board of directors has begun the search process for a new CEO. Shelley Martin, board chair, and president and CEO of Nestlé Canada, said she is working directly with FCPC senior staff to continue to meet the objectives, needs and opportunities of its members. “We will continue to make progress on our key priorities and will address any issues as they arise,” Martin said. “At times, key FCPC board members who head up our major committees and/ or have special roles on the board may step in to address specific needs. While I will be involved in the stewardship over the next few months, FCPC senior staff will take the lead on projects.”

John Mastroianni, general manager

Opening day: Crowds gathered outside the Oakville store

Pusateri’s opens Oakville, Ont., store Pusateri’s Fine Foods opened a new store at the Oakville Place mall on July 7, 2016, its first location outside of the Greater Toronto Area. The new 18,000-sq.-ft. space features fresh food departments, premium grocery and gourmet prepared foods, as well as a number of new in-store experiences. There are two in-store shops: Canada’s leading cold-pressed juice company, Greenhouse Juice, offering raw, 100 per cent organic juices; and Pizza Couture, offering classic Roman-style pizza al taglio (by the slice).

July | August 2016 Volume 6, Number 4

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

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

grocerybusiness.ca

Executive Vice-President Content and Market Development Dan Bordun 416-817-5278 DanBordun@grocerybusiness.ca

@grocerybusiness

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Creative Agency Boomerang Art & Design Inc. boomart.net

Mike Longo, Longo Brothers Fruit Markets

Subscription changes & updates or general inquiries: info@grocerybusiness.ca

Darrell Jones, Overwaitea Food Group

Contributors Michael Belz, Mary Del Ciancio, Rodney Daw, Joanna Gibbons, Justin Van Leeuwen, Michael Marinangeli, Maria Proulx, John F.T. Scott, Rob Zompanti,

Grocery Business Advisory Council 2016

Cori Bonina, Stong’s Market

Photography for the Buy-Low Foods feature appearing in our May-June issue was supplied by Vincent L. Chan, Invisionation Photography Inc.

Jim Slomka, Clorox Canada

Contributing Editors Angela Kryhul, Sally Praskey

Shaun McKenna, Acosta Sales & Marketing Thomas A. Barlow, Canadian Federation of Independent Grocers Perry Caicco (retired, CIBC)

Nancy Croitoru (retired, FCPC) Tim Berman (retired, Kraft Heinz Co.)

Bill Ivany, Tree of Life Canada Michael Marinangeli, MIDEB Consulting Inc.

Mailing Address Grocery Business Media 390 Queen’s Quay W., PO Box 40085 Toronto, ON M5V 3A6

Cheryl Smith, Parmalat Canada David Wilkes, Retail Council of Canada

Denis Gendron, United Grocers Inc. © Copyright 2016. All rights reserved. No part of this magazine may be reproduced without written permission of the publisher. GST Registration No. 83032 6807 RT0001 Publications Mail Agreement No. PM42211029 ISSN 1927-243X

July | August 2016

Open Mike

Nobody rocks the boat anymore! By Michael Marinangeli

Today’s marketplace is pretty calm. When I started in the food industry several decades ago, it was not unusual for a price war to break out among the major grocery chains every three or four years. The grocery landscape was much different back then. The industry was less consolidated, with more retailers vying for the same consumer dollar. Most stores were conventional; there was little discount presence. The major chains each operated under one banner, and focused solely on growing its market share. The majority of sales were at regular price, with promotional sales only about 20 to 30 per cent of the weekly volume (compared with about 40 per cent or more today). The gap between regular versus feature prices was much narrower. There was no grocery flyer. Most major retailers ran a two-page newspaper ad with only 20 or 30 items featured each week from all departments. Customers did most of their grocery shopping at one store, and planned their meals around the items that were featured in the newspaper ad that week. During this era, the primary drivers for customer store selection were: • Location • Service • Cleanliness • Price I believe price was not the primary motivator because consumers did not perceive much difference among retailers. However, when one retailer went on the attack and lowered prices, customers noticed and would change supermarkets if they perceived better value elsewhere. But it was usually the instigator who suffered in a price war, as competitors immediately matched (or claimed to match) prices. Usually, these price wars would last a few months, and then the market would revert to higher regular prices. Over the past two decades, we really haven’t had a slugfest in the grocery industry. Market share gains have occurred primarily due to consolidation, square-footage growth and conventional stores being converted to discount. Five retailers today do about 80 per cent of the grocery business in Canada.

July | August 2016

Open Mike

Yes, there was much angst among traditional grocers when Walmart started rolling out Supercentres across the country in 2006. Target’s launch of over 100 stores in 2013 caused further anxiety. Promotional pricing at traditional retailers was sharpened for a period of time, but there was no major disruption to overall pricing in the market. Conventional stores continued to have the highest prices. Discount stores were priced about 10 per cent cheaper. Today, roughly 40 per cent of the business in Canada – and over 50 per cent in Ontario – is done through discount stores. Traditional grocers have reacted to discount growth by converting more conventional stores to their discount formats and building more discount locations. The market has settled down in the past couple of years: squarefootage growth and market growth seem to be aligned, and, with the help of consolidation, pricing seems tamer. Most retailers are reporting positive comparable store sales and healthy profit gains. The exception has been Sobeys, which continues to struggle with both its Safeway acquisition and Walmart’s Supercentre expansion in Quebec and the Atlantic provinces. In April, Sobeys announced that it was dropping about 8,500 grocery items in its IGA and IGA Extra stores in Quebec, and reducing prices by five to seven per cent. It has been a long time since a conventional store format made such a strong move downward on regular shelf prices. The new pricing strategy supports Sobeys’ marketing program “The Joy of Eating Better,” which empowers consumers to shop without having to wait for flyer discounts or any type of loyalty program. Customers continue to benefit from discounts in the flyer, although some promotional programs have been adjusted in depth and width. To date, I have not seen any data showing if this strategy has worked, nor have I seen any aggressive reaction from competitors.

Both Metro and Loblaw have discount banners in the Quebec market that compete with the likes of Walmart and Costco, while Sobeys has only conventional stores. Discount accounts for 38 per cent of the Quebec market, and growing. Sobeys also lacks a discount presence in Western Canada, while Loblaw, Walmart and Costco have an increasing market penetration. So far, Sobeys has not dropped prices in Ontario, perhaps because of its strong FreshCo discount banner there. In principle, I agree with Sobeys’ decision to narrow the gap between regular and promotional prices. For years, I have said there is no integrity in regular shelf prices in our industry. Customers are buying items on sale only because the regular price points are much too high. There has been a reluctance to change this formula because everyone has adopted the high–low pricing strategy (high regular prices/low feature prices) and are effectively managing their gross margins. Sobeys could be on the right track. However, in my opinion, a five- to seven-per-cent reduction in regular prices lacks the punch to influence the consumer who waits to save over 25 per cent when the item is on feature. If the Canadian marketplace faces a disrupter like Aldi or Lidl, this could launch us into a new paradigm in the food industry. You need only look at markets like the U.K. and Australia to see the carnage hard discounters can inflict when the market fails to react to their lower prices. In Canada, we might currently be experiencing the calm before the storm. Regular shelf prices will have to drop significantly in both discount and conventional stores to compete if these hard discounters land here. Michael Marinangeli is a principal at MIDEB Consulting Inc. and a retailing veteran with more than 40 years of experience. Contact: mjmarinangeli@gmail.com Michael is a founding member of the Grocery Business Advisory Board.

grocerybusiness.ca

July | August 2016

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Perspective

Trust But Verify:

Why “social licence” matters now By John F.T. Scott

I recently spoke to a group of primary producers in Winnipeg who were concerned about the push from the upper reaches of the food chain (retailers and food service) for increased transparency and adherence to key principles that we are bundling under the term “social licence.” During the break, a Mennonite farmer told me that he had made a presentation to a large retailer to sell fresh geese. He said it had gone very well until he had hit the wall of social licence. He had satisfied the questions of consistency of quality, quantity, price and delivery, but was then confronted with queries centred on animal welfare, feed content, sustainability and farming practices. He believed he responded well, but the retailer then asked for third-party verification – a foreign concept to this producer, but one that will become pervasive in our industry. Transparency to the consumer is everything to retailers, and since they are on the front line, virtually everything in the store is open to question. This means that any vendor – long-established or new – will be required to verify the social licence of their product so the retailer can have confidence in dealing with the consumer. So what are the elements of social licence? In the simplest sense, there are four major categories: • Health: Obesity, antibiotics, sodium, sugar, preservatives, natural, gluten, food safety, nutrition. • Provenance: Local food, traceability, grain-fed, hormone-free, free-run, free-range. • Ethics: Animal welfare, labelling, food security, worker safety, worker rights. • Sustainability: Ecosystem stewardship, preservation of natural capital, pesticides, herbicides, GMOs.

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The final element of social licence is knowledge of who is producing the product, from owner to field worker. If you’re a vendor and this appears to be overwhelming, consider it from the perspective of the retailer. The vendor need only verify this information for its particular products, while the retailer needs to have confidence in the thousands of products in the store. I find that producers and processors now dealing with this new reality are requesting a financial premium in return. That’s unlikely to happen, as verification of the elements of social licence is now a critical component of doing business in this industry. All of this has occurred through the transparency provided by modern communication, together with the activism of consumer and animal-welfare groups over the content and origin of food products. When social licence has been abrogated, their judgement has been swift and the results harsh. Companies like McDonald’s or Saputo, when confronted with such situations, have reacted responsibly, adjusted their supply chain and, I suspect, their social-licence verification process. Collectively, this is making everyone in this industry much better at serving an increasingly discerning consumer. As for the Mennonite producer – he was ultimately able to satisfy the issues and secure his listing!

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.

July | August 2016

It’s a Meal-Kit Moment TV dinners for the digital age

HelloFresh promotion

By Sally Praskey

An appetite for healthier eating and a culture of foodie-oriented reality shows have spawned a new interest in cooking – albeit not necessarily from scratch – among consumers. And that’s good news for grocers who can become sous chefs for their customers. Subscription-based, perfectly portioned, pre-packed meal kits, delivered to homes or pickup locations, are becoming increasingly popular because they satisfy the demand for healthy, convenient food that consumers can easily cook at home. All the prep work is done – veggies chopped, meat or protein prepped, spices ready to be added – so that all the consumer has to do is cook up the ingredients (often following instructive website videos) according to the recipe provided in the kit. The meal-kit concept may seem suspiciously like the TV dinner of yesteryear, but while the focus on convenience is the same, there is a crucial difference in the health component. Meal kits are re-imagined TV dinners for the digital age. Healthy and convenient meal kits are a winning combination for many consumers. And, not surprisingly, meal-kit services are beginning to take a bite out of grocers’ market share, with subscribers decreasing

July | August 2016

their grocery spend by 6.3 per cent, mainly because they are making fewer store trips, according to a recent study by Cardlytics, a U.S.-based company that analyzes creditand debit-card purchases. This is a significant percentage of business and it’s clear that grocers can now add meal-kit subscription services to the growing list of “basket bandits” that are nibbling away at their market share. So how can grocers fight back? According to Rich Rotzang, senior director, marketing communications, Tiffany Gate Foods, meal-kit services such as Hello Fresh and Blue Apron can work well for those who plan their meals in advance, “but often, meal decisions are spur of the moment,” and that’s where supermarkets come in. Grocers are well positioned because the consumer is already in the store shopping for dinner; for grocers, prepared, pre-packed meal kits are an opportunity to offer consumers unique dinner options, Rotzang says. Whether those meal kits are created by the grocer or by a vendor – at the FMI show in Chicago, for example, we

spotted meal kits that Hormel Foods was testing for the U.S. market – the point is, as always, to offer consumers what they are looking for now.

Meal-kit subscribers are a grocer’s most profitable shopper, so a decline in their basket size or trip frequency has significant bottom-line impact. 60

* U.S. $

$62.47*

$41.15*

Meal-kit subscriber grocery spend

Average food shopper grocery spend

Source: Cardlytics

Who are these guys? There are a variety of meal-kit subscription services. Here’s a sampling: • In Canada, international meal-kit delivery service HelloFresh, founded in Germany in 2011, is now servicing a large part of Ontario, with aggressive plans for further expansion. • Four-year-old Blue Apron is delivering eight million meal kits a month in the U.S., is valued at approximately US$3 billion, and is considering an IPO. • Ahold-owned e-grocer Peapod recently teamed up with ConAgra Foods and Campbell Soup Company to enhance its existing meal-kit offerings. • E-commerce behemoth Amazon.com is expanding into meal-kit delivery this fall when its AmazonFresh joins forces with meat supplier Tyson Foods to launch Tyson Tastemakers. • In June, Martha Stewart announced she will be tapping into her robust recipe library to create meal kits in a new joint venture with meal-kit company Marley Spoon. The new branding will be named Martha & Marley Spoon.

Weekly delivery box contains ingredients for

6 meals/3 different recipes

$9.99* $59.99* 500,000 Price per serving * U.S. $

Weekly cost

Meals served per month in the U.S.

Nourish Your Family with Ours

Nourish Every Body

KARDISH HEALTH FOOD CENTRE

NATURAL PROGRESSION By Sally Praskey

It would be a logical assumption that, in the wellness space, health food stores compete with supermarkets and drugstores for customers. But that is not the case with Kardish Health Food Centre, an Ottawa-based chain of nine stores. On the contrary, the channels complement one another, says Robert Assaf, president and co-owner, with his brother Carey, of Kardish Health Food Centre. “Our stores are small – the average footprint is about 2,600 square feet,” Assaf explains. “We don’t sell produce, and we’re not looking to get into it because many of our locations are in a mall with someone who sells it already. So they bring the traffic and we sort of round out the shopping basket. A great mix for us is in a mall or strip plaza that has a drugstore and a large grocery store.” The challenge for the health food business, notes Assaf, is to always have exciting new products in the pipeline. After all, it doesn’t take long for a product to go mainstream – think gluten-free, probiotics – and at that point, the big players can sell it more cheaply. Kardish’s other competitive advantages come from convenient locations and superior product knowledge. Staff, many of whom are nutritionists, undergo extensive training programs, including monthly training days. After a period of rapid growth, the brothers are now taking a breather before kicking off a new phase of expansion. But first and foremost is their ongoing quest for the Next Big Thing in health foods. “What’s going to grow our success is really paying attention to the brands, knowing when a brand has moved on, and when to let it go,” says Assaf. “New products are the lifeblood of our industry, so we must constantly be on the lookout for new and innovative things.”

P H O T O S : J U S T I N VA N L E E U W E N

July | August 2016

In June 2016, the Ottawa Chamber of Commerce presented Carey Assaf with the prestigious “Forty Under 40” award, which recognizes talented, young business leaders within the Ottawa business community.

Robert Assaf is the current Chair of the Canadian Health Food Association.

THE LURE OF LOCAL We buy all our products from Canada because customers increasingly want to buy local. There’s an amazing trend happening here with local entrepreneurs launching and selling unique products. We enjoy working with them to help them grow their businesses but we find, more and more, if you’ve got a good product, especially on the grocery side of food, people pick up on it and before you know it, it’s listed at Walmart or Costco.

Q&A

You have a symbiotic relationship with

What trends are you seeing?

FROM FRANCHISEE TO OWNER

grocery and drugstores, so what’s your

Online shopping is becoming a factor. On the

The founding Kardish

competitive advantage?

product front, we see that vegan and raw and

family originally ran the

We are very service-focused; we have to be.

fermented foods continue to be in demand. Local

business as a franchise

We have a highly trained staff that includes

is increasing in popularity as well.

operation. The Assaf

WITH ROBERT ASSAF

brothers entered the

several nutritionists, plus we have smaller, more convenient stores.

What’s in Kardish’s future?

industry through their

We’ve just gone through a massive growth

father, Michael, who had

How is your product selection unique?

period. We went from a small business to a

bought one store in the

As more and more natural products come into the

mid-sized business in just a few years. It was fast!

franchise in 1984. After

mainstream, products sort of outgrow health food

So now we are fine-tuning and catching up. And

working in IT and

stores and you have to look for something to

then the next growth phase would be starting to

commercial real estate,

replace them. You’re always looking for brands

target sites in eastern Ontario.

Robert, with his father, had a chance to buy the

and products that are new and unique. They start off in a health food store environment and then

What challenges come with that growth?

Kardish chain of four

build gradually, gain acceptance and move into

Well, your management style has to change, and

stores in 2006. At that

more conventional channels. We’ve found that we

as a business owner, you must move from

point, Carey purchased

can get burned by holding on to a product for too

operating in a small business to a medium-sized

his father’s franchise. A

long, because once an item goes mass, the

business mode. We’ve found that you need to

few years later, Michael

pricing will go down a little bit. And because

develop a whole different set of systems, and how

retired, Robert purchased

everyone knows about it, there’s no product

you communicate with staff has to change.

the stores in the franchise group, and the two

education needed anymore, so all of your advantages as a smaller independent carrying

Do you have a business philosophy?

brothers teamed up to

that product fade away.

We have a strong focus on taking the intimidation

implement their shared

factor out of a health food store. For people who

business vision.

are new to shopping with us, there are so many products that it can be hard to make a selection. Through service, we are focused on connecting to the customer’s needs.

July | August 2016

FOOD & ALLIED INDUSTRIES GOLF TOURNAMENT June 3, 2016 A donation of $10,000 was made to The Grocery Foundation in support of its work with children’s charities. Front row: Sam Magnacca, Kevin Smith, Chris Powell, Jim Hunter, Denis Gendron. Back row: Forge Francella, Mike Marinangeli, Christine Tos, Michele McMillan, George Tzogas, Mike Furgiuele, Sal Galle, Peter Davies, Grant Campbell and Doug Cussons

Jean-Francois Dery and Mark Schuetz, AB World Foods

Chris Powell and Jim Hunter present Michelle Scott, The Grocery Foundation, with the cheque. Team Clorox: Dave Iacobelli, Jim Slomka, JC Torres, Steve Thompson

Mario Corrente, Aurora Importing and Distribution

Team Nestlé Purina: Frank Rispoli, Jaideep Jatar, Mark Milligan, Jaison Joseph, Jaime Innes, Lauren Howell and Blaine Greenshields

July | August 2016

John Violin, Irving Consumer Products

CFIG’s Tom Barlow with John Scott, JFT Scott Management, and Michelle Scott P H O T O S : R O D N E Y D AW

Bill Dunne and Dave Hibbard, A.S. May Powell; Mike Rakie and Dave Clement, LS1 Enterprises

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• Steve Long The goal of this session is to provide a better understanding of what MAP is and what the Competition Act allows in Canada. Steve Long, President of Long and McQuade, a successful retailer, and Yorkville Sound, a successful distributor, shares learnings from an industry that has embraced MAP as an integral part of doing business. What can we learn from the music industry that will help improve your bottom line.

To view the complete conference program, visit chfa.ca

innovation exciting ideas, new products

• CHFA Industry Achievement Awards

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• Sample and compare

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• Innovative products

• Two -day conference program

• It’s the people who make this show great!

inspiration your key to success Retailers attend the trade show for FREE when you use Grocery Business Code E16R1*

Register today at chfa.ca Join the conversation at #CHFAeast *Note this code is valid until September 2, 2016, for Retailers only. Registration includes Product Education Sessions on September 16 and trade show admission on September 17 and 18. For more details, please visit chfa.ca

MARKETING TO THE

MILLENNIAL MOM Grocers take note—the minivan Millennial is here! By Karen James, co-publisher and executive editor, Grocery Business

Millennials, many of whom have now entered their third decade, are marrying, starting families and, as did their parents before them, taking on mortgages and minivan payments. This generation has, for the past decade, redefined food consumption. And now that they’re becoming parents, we wondered what these life changes mean for grocers and food manufacturers. To find out, Grocery Business teamed up with Parent Life Network to produce a groundbreaking research study on a very influential cohort of this generation – Millennial Moms.

grocerybusiness.ca

July | August 2016

Millennial Moms

Among the study’s key findings: • As Millennial Moms (MM) start their families, they are forsaking the downtown core for the suburbs, where housing is more affordable. • Often burdened by student debt and high mortgages, this generation is economizing: they’re clipping coupons, shopping in discount stores and cooking from scratch. In fact, their behaviours in many ways parallel those of their grandparents, albeit with an updated twist: the coupons are digital, and the cooking might involve prepared salads or some other shortcut. • To ensure their families eat healthy meals, Millennial Moms are buying quality ingredients, but at the lowest prices possible.

52% Millennial Moms say they discount shop more often since having children

$100 MILLION monthly spend with discount grocers

Despite a wide variety of grocery formats in Canada, the study shows that grocers have yet to present a formula that resonates with Millennial Moms. “Our research found that only 18 per cent of Canadian Millennial Moms feel that grocery marketing is geared toward people like them,” says Sean Copeland, director of research, Parent Life Network. “This finding clearly indicates there is a need to shift grocery marketing to better align with this important generation of moms.”

% 80

of budget is spent on fresh foods

Where do MMs shop?

Top banners shopped in past month

% grocery shop

Walmart 19 Costco 10

No Frills

Real Canadian Superstore

July | August 2016

71%

shop at stores with consistently low prices

Millennial Moms

Despite their money-saving strategies, MMs still outspend the average MILLENNIAL MOMS

$520

AVG. CANADIAN FAMILY

$490

75% PREFER

A ONE-STOP SHOP

52% 1 CHILD

Number of Children

54%

Having a second child did/will make them want to live outside a downtown area

grocerybusiness.ca

4 CHILDREN

33%

11%

3 CHILDREN

2 CHILDREN

July | August 2016

Millennial Moms

WHAT MILLENNIAL MOMS WANT 1. Competitive prices

7. Tidy/easy to navigate

2. Fresh produce

8. Fresh deli

3. Product selection

9. Quick checkout times

4. Convenient location

10. Loyalty programs

How we did it

5. One-stop shop

11. Prepared and hot foods

6. Customer service

12. Helpful website

Grocery Business magazine commissioned Parent Life Network (PLN) to conduct a research study with Millennial mothers in order to uncover their grocery shopping needs and preferences, and to share the findings in an exclusive research report.

% OF MMs WHO ARE SHIFTING SHOPPING PRIORITIES NOW THAT THEY HAVE CHILDREN Fresh foods that I cook at home

2 44 54

Discounted foods to save $

5 48 47

Organic foods

16 57 27

Convenience foods to save time

21 52 27

Hard-to-find specialty foods

30 59 11

Less

Same

MMs ARE COOKING! 17%

83% 28

July | August 2016

PREPARED AND HOT FOODS (SPEND = $90/MONTH) FOODS REQUIRING PREPARATION AT HOME (SPEND = $430/MONTH)

PLN conducted an online survey (from May 2 to 6, 2016) with 5,727 Canadian Millennial mothers, aged 20 to 34. The sample is weighted to be proportionately representative of Englishlanguage Canadian new mothers by region and age based on the latest Statistics Canada live birth data. A random sample of respondents was invited by email from the PLN subscriber base of almost 300,000 Canadian parents.

About the researcher Sean Copeland is the director of research at Student Life Network & Parent Life Network. Copeland is a Canadian Millennial and a Certified Marketing Research Professional. Student Life Network & Parent Life Network With nearly one million Canadian members between the ages of 16 and 40, and with a vast social media reach, Student Life Network and Parent Life Network drive millions of actions for Canadaâ&#x20AC;&#x2122;s top brands. If you have any questions regarding this study, please contact: Sean Copeland sean@parentlifenetwork.com 905-531-5155 Interested in learning more about how the Parent Life Network can support the growth of your brands? Please contact: Dave Chestnut dave@parentlifenetwork.com 416-725-7992

CARTING IT AROUND Bemis Retail Solutions has redesigned the shopping cart for a new generation

BEVERAGE HOLDER

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BAG HOOKS

INNOVATIVE, MORE SECURE CHILD SEAT

OPTIONAL 3-GALLON BASKET grocerybusiness.ca

HIGH-PERFORMANCE NON-MARKING WHEELS July | August 2016

THE ADVANTAGE RETAILER REPORT

RELATIONSHIP BUILDING AT ITS BEST By Sally Praskey

After a strengthening of retailer/supplier relationships last year, 2016 saw an even greater improvement, according to the latest Advantage Report, the annual survey of grocery, mass, club and drug retailers conducted by Torontobased Advantage. And even more remarkably, average net favourable scores were up across all seven retail performance areas; the greatest improvement was in the Personnel area, which saw a dramatic increase in 2016.

Category Development followed closely behind, improving from 18 to 22. “That’s pretty significant, particularly given that it has been declining in the last several years,” says Vincent van der Heijden, senior director, country manager, Canada, for Advantage. “That goes hand-in-hand with the Personnel practice changes; perhaps suppliers are doing a better job, in the eyes of retailers, of providing valuable category recommendations, rather than focusing only on their own brands.”

AVERAGE NET FAVOURABLE BY PERFORMANCE AREA Overall perceptions have slightly improved. Personnel has had the greatest increase. 2014

2015

2016

Industry Average

33 28

22 19

Overall Performance

Business Relationship and Support

July | August 2016

Personnel

Category Development

Consumer Marketing Support

Customer Marketing/ Promotion Practices

Supply Chain Management

Customer Service/ Support

CPG PERSONNEL EXCEL! earured y t s F ir meas

2014

2015

For example, if a promotion isn’t going well, they react immediately and will let the buyer know.

28 26

Industry Net Favourable

A company’s ability to be flexible and respond with a sense of urgency makes them best-in-class.

2016

21 19

19 17

–Retailer survey respondent

Personnel

Personnel are appropriately qualified, skilled and experienced

RETAILERS RATE THEIR TOP VENDOR PRIORITIES FOR 2016

Understands and responds to our unique strategies and goals

IMPORTANCE RATING

Communicates effectively with us

Personnel respond with a sense of urgency

Understands and responds to our unique strategies and goals

Demonstrates authority to make decisions

Personnel respond with a sense of urgency

Best-in-class vendors take time to understand our business requirements and are not necessarily salespeople; they are mentors and business builders looking for ways to grow our businesses together. –Retailer survey respondent

Founded in Canada in 1986, Advantage operates internationally. Its jointly sponsored programs provide an ongoing industry benchmark for retailers and manufacturers to measure and track their relationships with key business partners. For more information or to participate, contact Vincent van der Heijden at: 416-863-0685 ext. 134; vvanderheijden@advantagegroup.com grocerybusiness.ca

July | August 2016

Congratulations! Grand Prix New Product Award Winners 2015 Thirty-four new products took the spotlight at a gala event June 1, 2016 as Retail Council of Canada celebrated the 23rd annual Canadian Grand Prix New Product Awards, a highlight of the STORE 2016 conference in Toronto. The awards recognize excellence and innovation in food, non-food and private-label products introduced during the 2015 calendar year. The Canadian Grand Prix was revamped this year: the categories have been updated to better represent how retailers merchandise and market their products. Finalists were selected under separate consumer packaged goods and privatelabel categories. Presenting the 2015 Canadian Grand Prix New Product Award Winners.

grocerybusiness.ca

July | August 2016

FOOD Bakery Fresh Baking Needs & Dried Bakery

Beverages

Yana Guterman

CANADA BREAD COMPANY Harvest Grain with Apple

Steph Bigford

SMUCKER FOODS OF CANADA Robin Hood Banana Quick Bread Gluten Free

Pierre L’Heureux

A. LASSONDE Confectionery & Shelf Stable Desserts

Oasis NutriSolution

Condiments & Sauces Dairy (Milk, Yogurt, Cheese & Spreadables)

Alana Burke

MARS CANADA M&M’S Minis Holiday 4-Pack Norman Gottlieb, Helena Ventrella and Dr. Steven Cohen

INNERSEASONINGS INTERNATIONAL Tunnel Bar-B-Q Sauces

Jill Rudderham and Alain Chalifoux

LAITERIE CHALIFOUX Riviera Petit Pot Set-Style Yogourt

July | August 2016

CANADIAN GRAND PRIX NEW PRODUCT AWARD WINNERS

Deli Meats and Cheeses Snack (Savoury) Frozen or Refrigerated Prepared Foods & Entrees

Kevin Burk Genevieve Bernier and Linda Méthot

NATURALLY HOMEGROWN FOODS

EMMI CANADA Emmi Fondü All-In-One

Hardbite Chips Sandro D’Ascanio

HAIN-CELESTIAL CANADA

Snack (Sweet)

Europe’s Best Greens and Grains

Meat, Egg & Seafood Fresh (Refrigerated or Frozen)

Shelf Stable Prepared Foods & Entrees Marie-Michele Le Moine

FRUIT D’OR Patience Fruit & Co Organic, dried cranberries

Fruits, Vegetables and Produce (Fresh, Refrigerated or Frozen)

Elizabeth Costa and Peter Streiter

MAPLE LODGE FARMS Maple Lodge Farms Naturally From the Farm Hickory Smoked Chicken Bacon

Carlo Facchin

PRAIRIE HARVEST CANADA Prairie Harvest Organic Coconut Blend Pasta Robert Mortensen

GARDEN PROTEIN INTERNATIONAL Gardein grocerybusiness.ca

July | August 2016

NON-FOOD Household Products

General Merchandise

Glade Large Jar Candle

Off! Familycare Bite and Itch Relief Pen

Pet Needs

Darlene D’Souza and Jennifer Shcherban

S.C. JOHNSON & SON David Hutchison, Chris How and Mark Prusha

NESTLÉ PURINA Tidy Cats LightWeight Litter

Paper, Plastic & Foil

Personal Care

Eva Luk

KRUGER PRODUCTS SpongeTowels Ultra Strong paper towel

July | August 2016

Meghan Jones and Naniss Gadel-Rab

UNILEVER CANADA Dove Dry Spray

PRIVATE LABEL FOOD

CANADIAN GRAND PRIX NEW PRODUCT AWARD WINNERS

Beverages

Bakery Fresh

Deli Meats and Cheeses

Genevieve Laniel and Ingrid Weckers

METRO BRANDS Irresistibles – Life Smart Smoothie

Tanja Ignjatovic

METRO BRANDS

Annie St-Laurent and Manisha Nagar

Irresistibles – Dry Sausage

METRO BRANDS Irresistibles – ArtisanDeep dish pie

Confectionery & Shelf Stable Desserts

Condiments & Sauces Co-op Gold Whisky Caramel Sauce

Snack (Sweet) Co-op Gold Pure Dark Chocolate

Jason Knights and Micheline Brisson-Bono

METRO BRANDS Irresistibles – Brownie in the centre, Dessert Filled Cookies

Sav Bellisimo

FEDERATED CO-OPERATIVES LIMITED grocerybusiness.ca

July | August 2016

PRIVATE LABEL Desserts (Fresh, Refrigerated or Frozen) Frozen or Refrigerated Prepared Foods & Entrees

BACK: Jackie Mendoza, Vanessa Martin, Joey Bernaudo, Jenny Longo and Carlo Fantin FRONT: Kelly Mahn and Andrea Backus

LONGO BROS. FRUIT MARKETS Indulgent Chocolate Mousse Cups

Andrew Vargas, Marie Horodecki and Steve Johnston

METRO BRANDS Irresistibles – Potato Gratin

NON-FOOD

Snack (Savoury)

Veronica Murray

SOBEYS Sensations Butter & Cheese Puff Pastry Biscuits

Household Products

Pet Needs General Merchandise

Stephan Lafreniere and Wissam El-Hajj-Khalil Marie-France Dumont and Julie Dunberry

CANADIAN TIRE

MONDOU Vetdiet Treats – Tender Delight

Big Boss Insta Mop Douglas Young and Stephanie Muto

CANADIAN TIRE Canvas 16 pc Wild Rose Porcelain Dinnerware Set

July | August 2016

SPECIAL AWARDS

CANADIAN GRAND PRIX NEW PRODUCT AWARD WINNERS

All Canadian & Innovative Packaging Awards

Consumer Acceptance

Jill Rudderham and Alain Chalifoux

LAITERIE CHALIFOUX Riviera Petit Pot Set-Style Yogourt

Innovation and Originality Eva Luk and Michel Manseau

KRUGER PRODUCTS SpongeTowels Ultra Strong paper towel

Genevieve Bernier and Linda Méthot

EMMI CANADA Emmi Fondü All-In-One

AWARD

WINNING

PRODUCTS

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Independents’ Day

Tax rule changes hit business owners looking to sell Canada’s private business owners may want to accelerate plans to sell their businesses or other qualifying assets before new Canadian tax rules around eligible capital property (ECP) take effect. By Michael Belz, Rob Zompanti and Joanna Gibbons

Tax cost could double The federal government’s March 2016 budget repeals Canada’s existing tax regime for ECP, and rolls it into existing rules for depreciable capital property, effective January 1, 2017. ECP includes goodwill and intangibles such as customer lists, trademarks, franchise rights and certain licences. While the change affects all Canadian businesses, its impact is particularly significant for owners of Canadian-controlled private corporations (CCPCs) that sell assets rather than shares. Under current rules, the gain on the sale of ECP is taxed as active business income at a rate of roughly 13 to 15.5 per cent, depending on the province. Under the new rules, that same gain will instead be taxed as a capital gain – at a rate of around 25 to 27 per cent, depending on the province. For example, a CCPC that sells assets including $10 million of goodwill in 2016 would pay approximately $1.4 million in tax. But in 2017, the company would pay nearly double that amount – approximately $2.6 million. This isn’t necessarily a tax cost to the individual shareholder, however, since a portion of the initial tax paid in 2017, by the corporation, will be refundable. Owners may accelerate succession plans The ECP tax rule changes may drive many business owners to rethink the timing of asset sales or other transactions. Owners nearing retirement may want to accelerate their succession plans and transition the business to new owners far sooner than originally planned. If a sale or business transition was planned for 2017 or 2018, business owners should think about trying to get a deal done before the end of 2016. And since completing a sale or transition typically takes several months or more, those keen to get the deal done before December 31 need to move now.

grocerybusiness.ca

“A significant amount of small-business assets is expected to change hands over the next several years,” says Joanna Gibbons, managing director of Deloitte Corporate Finance Inc. “With the upcoming ECP rule changes, now is the time for business owners to step back and seriously assess their succession plans. The key to successful business succession is to start planning early, which includes tax planning and structuring.” If the sale of the business – or other ECP asset – is imminent, but can’t be completed by December 31, CCPCs should consider performing a reorganization by that date instead. A reorganization can allow the company to crystallize the gain before the new rules are effective, and potentially defer some of the tax on the sale. Tax considerations alone should never drive a decision to sell an asset or business, but if you’re ready, and it’s worth the effort, the time to get started is now.

For more information on how these tax changes could affect your business, contact:

Michael Belz Tax Partner Deloitte Private mbelz@deloitte.ca

Rob Zompanti Senior Tax Manager Deloitte Private rzompanti@deloitte.ca

Joanna Gibbons Managing Director Deloitte Corporate Finance Inc. joannagibbons@deloitte.ca

July | August 2016

DISTRIBUTION CANADA INC. Your Partner in Selling

SUPPLIER APPRECIATION DINNER – JUNE 15, 2016 DCI chair Francois Bouchard recognized the many contributions of Brian Parker, who is retiring as president and CEO, while welcoming his successor, Marc Fortin.

Francois Bouchard, chair, DCI; and Rina Virgilio, Concord Food Centre

Denis Gendron, UGI; John Scott, JFT Scott Management

DCI’s new president and CEO, Marc Fortin

DCI board (l-r): Mike Williamson, Barry Lanteigne, Rina Virgilio, Francois Bouchard, Dave Powell, Cori Bonina, Peter Cavin, Michael Pugliese, Jim Bexis and Brian Parker. Missing from photo: Debra Ramage and Tony Cataldi

David Poirier, Mike Turcotte, Marco De Palma, Brent Stevens, Parmalat; Michael Pugliese , Michael-Angelo’s

Dave Powell, Atlantic Grocery Distributors; Debra Ramage, Drayton Food Market; Ernie Williams, Williams Sales & Marketing Front row: Ashley MacPherson, Beaver Rock Roastery Inc.; Rob Schouppe, Lanthier Bakery Back row (l-r): Tracey Scanlon and Akeem Herbert, Hubert Distributing; Scott Morris, Lanthier Bakery

Michele Vermeltfoort, Brian Parker, Marc Fortin, Sharon Gill, DCI

Tom Barlow, CFIG; Brian and Lisa Parker, DCI

Jeremy Courtney, Canada Bread; Matti Aleksander, Cavendish Farms

Greg McGrath, Peter Erdelsky and Mike Medeiros, Italpasta P H O T O S : R O D N E Y D AW

July | August 2016

Trends and insights on the health-focused shopper

NATIVE SUN NATURAL FOODS ON TREND WITH HEALTHY BEVERAGES CHFA WEST SHOW

Whole Health International

NATIVE SUN NATURAL FOODS JACKSONVILLE, FLORIDA

All Organic, All the Time By Sally Praskey The “Organic” sign is made of live moss, conveying the store’s commitment to 100 per cent organic in a unique visual way.

While many supermarkets boast a healthy offering of organic foods, Florida-based Native Sun Natural Foods is unique in carrying only organic and natural foods free of GMOs and other food additives. This 20-year-old retailer verifies the origin of product ingredients with written documentation and routine updates, and confirms the processes used to convert those ingredients into the products on its shelves. It actively reviews product formula changes, and pulls products that don’t meet its standards – even if they are selling well. Last fall, the company debuted a fresh new look with its third store, situated in Jacksonville Beach, Fla. The new prototype, designed by api(+), expresses Native Sun’s core values and elevates the shopper experience to attract a broader market share. Throughout the store and its café, brand messaging reinforces Native Sun’s commitment to help people live healthy lifestyles. Even the prepared foods adhere to the retailer’s strict code of natural ingredients.

Meat, seafood and deli departments are situated at the front of the store for shoppers’ convenience. Signage touts sustainability (responsibly caught), ethical farming (no factory farming) and “anti-antibiotics.”

Store design by:

July | August 2016

Native Sun’s unique colourcoded allergen tagging system identifies products that are low sodium, as well as gluten-, casein- and peanut-free. A café/smoothie bar is placed to be highly visible upon entry. Situated at the end of “produce drive,” with open sightlines to its comfortable booth-style seating, the café has a separate entrance to encourage customers to dine-in.

ON TREND

Maria Proulx Health Communications Specialist

WITH HEALTHY BEVERAGES By Maria Proulx

While the Baby Boomers belonged to the “Pepsi Generation,” their kids grew up with the caffeine-fuelled punch of Red Bull. But Millennials are moving on, and now we want our energy drinks served up with a healthy dose of natural ingredients. Marketers are responding by offering a diverse array of enhanced natural products whose health benefits have been intensified. And, of course, it’s all starting with coffee and tea.

Artisanal and Energy-seeking

Califia cold-brew coffee

It’s no surprise that naturally caffeinated beverages, such as cold-brew coffee and water infused with green tea, are the next new thing. Despite taking 12 hours to steep, cold-brew coffees are fast becoming a beverage of choice. Considered less bitter with a more complex flavour profile than hot coffee, cold brews are part of the move toward artisanal beverage (and food) experiences. Busy consumers, who want to experience the product but not the long steeping time, have a variety of ready-to-drink options; some are even fortified for greater health benefits.

Guru energy water

Premium Tea: Enhanced and Healthy Tea has always had a health positioning, but its benefits have been enhanced by power ingredients such as organic turmeric and chocolate. These mega-teas are attractively presented and nestled in recyclable cloth bags, placing tea firmly in the centre of the “premiumization” trend, where familiar products enhance their health halo with a marketable makeover. Tea is also finding its way into mixology culture; matcha mojitos have become a Millennial favourite. grocerybusiness.ca

Numi premium and enhanced teas

July | August 2016

Gut Health is now Top of Mind

Fermented foods: Naturally good for gut health • Yogurt is made by adding

specific bacteria to milk and allowing it to ferment. Most yogurt is made with cow’s milk, but these days it comes from a variety of different sources and using recipes passed down through the ages and from all over the world. Yogurt is rich in protein, calcium riboflavin, vitamins B6 and B12 and, of course, probiotics.

By Mike Cunningham, Tree of Life Canada

No matter your social circle, gut health is a hot topic these days. As new science points to the importance of a healthy, balanced human microbiome, consumers are fascinated with the cast of tiny microorganisms that are now known to play leading roles in the gut. The interest is justified. Science now suggests that a healthy microbiota may be integral to overall health and support important functions ranging from immunity and metabolism to sports performance and even brain function. These discoveries, along with more than 20 million Canadian’s who suffer from some sort of gastrointestinal distress1, make the digestive health market a booming category for retailers. The demand for products that contain probiotics, along with their supporting characters, prebiotics and digestive enzymes, is expected to see exploding growth in the coming years. It’s generally understood that beneficial bacteria helps supply nutrients, aids in the metabolism of substances that are hard to digest and prevents the colonization of undesirable microbes in the digestive tract. When one area falls out of balance, it can cause normally benign microbes to proliferate in the gut and induce inflammation in the body, which may lead to a variety of health issues. Daily digestive support is now thought to be as important for overall health as regular exercise and a healthy diet.

• One of the oldest cultured

milk products in the world, Kefir is a thick drink made by fermenting milk with kefir grains that contain lactic acid, yeast and polysaccharides. It is easily digested and helps cleanse the intestines with bacterial yeast, vitamins, minerals and complete proteins. Kefir contains healthful bacteria that is not available in yogurt, such as Lactobacillus Caucausus, which has been shown to support gut health and prevent growth of harmful bacteria.

• Kombucha is a fermented, effervescent

black or green tea drink made by fermenting tea and using a symbiotic colony of bacteria and yeast (SCOBY). It contains probiotics, B-vitamins, antioxidants, active enzymes, glucaric and amino acids. It is beneficial for detoxification, digestive support and immune function.

• Sauerkraut and Kimchi (a fermented

vegetable side dish from Korea), are now recognized as great sources of probiotics and other important nutrients that should be part of a regular gut healthy diet. As the digestive health benefits of fermented foods have become more well-known, a wide range of new fermented products are now available in a variety of exotic flavors and formats. 1

Canadian Digestive Health Foundation, http://www.cdhf.ca/en/about-us

Small investment, monster returns. As produce marketers, we have the power to drive change! Kids love seeing Sesame Street characters, and you love bringing fresh, delicious produce to stores everywhere. The eat brighter!™ movement allows growers, suppliers and retailers to use the Sesame Street brand and characters to engage children and promote fresh produce — all royalty-free! Let’s grow brighter futures together! #eatbrighter

Learn more at: pma.com/eatbrighter +1 (302) 738-7100

Ron and TJ Brar, Evergreen Herbs

GROWING STRONG

EVERGREEN HERBS CELEBRATES 20 YEARS By Mary Del Ciancio

Evergreen Herbs exists today because Ron and TJ Brar wanted to save their family’s farm. The two brothers, both in their twenties at the time, had fresh and innovative ideas that they believed would diversify the Surrey, B.C.-based farm, which grew only traditional crops like onions, carrots and lettuce. Their idea – to focus on fresh herbs, vegetables and specialty items – was unique to the area and one they thought could bring in new business. They were right. That was 20 years ago. Today, the 140-acre farm and its 120 greenhouses grow more than 100 varieties of fresh herbs, vegetables and specialty items for foodservice and retail customers across Western Canada and into Ontario. And the company continues to grow each year. Ron Brar, co-founder and president, credits Evergreen Herbs’ success to its dedicated team of people – their innovative thinking and the quality of products they produce. It started with an idea The seed for Evergreen Herbs was planted with Ron and TJ’s outsideof-the-box ideas. With a focus on customer service, growing practices and techniques, they sought to breathe new life into the business. To prove these ideas could work, they rented one acre of land from their dad’s farm to grow a few varieties of fresh herbs, and set up shop in the family garage. The following year, Ron went to the Canadian Produce Marketing Association (CPMA) conference to test the waters.

“So many of the retailers and foodservice companies absolutely loved what we had to present, and by the time we got back to Surrey, we were already getting phone calls from potential customers wanting to do business with Evergreen,” Brar recalls. From that day on, business grew each year as they added edible flowers and exotic herbs such as Thai Basil and chocolate mint, and a variety of micro greens, carrots, chard, kale, squash and more. The company sources seeds and product from around the globe to meet customer needs. Four years after its formation, Evergreen Herbs took over the entire family farm. In 2008, the brothers launched Roots Organic, which produces organic herbs and vegetables. This summer, the company will announce an expansion into Ontario. Details had not been released at press time, but this expansion will include farming and distribution in the province. Over the next year or two, the company is planning to expand further with a branch in Eastern Canada. A dedicated team What started as a team of two has grown to 120, each committed to customer care. “I think our success is our people,” says Brar. “My employees... are the backbone of our company, whether it’s our farm staff, packing room staff, office staff or drivers. They are the reason we are as successful as we’ve become. It’s because of their dedication.” Continued on page 51

grocerybusiness.ca

July | August 2016

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GROWING STRONG Continued from page 49

These employees, he explains, reflect the values that he and TJ hold dear – honesty, integrity and “making sure that our customer service is unparalleled to anything that is out there in terms of farming operations.” A commitment to quality Quality is also a key component in the company’s success. The team selects only varieties that offer the best quality and flavour. Much care is given to these products, which are all harvested by hand and, once picked, undergo multiple quality checks before reaching the end customer. Innovative thinking Evergreen Herbs was founded on fresh ideas, and that remains true today as the team scours the world in search of original products. Its most recent innovation, which launched earlier this month, is what Brar calls the “new evolution of fresh herbs.” It’s a series of single-use marinade kits, complete with fresh herbs, marinade and recipe, for beef, pork, poultry and seafood. The lineup is called Herbs on Horns (for beef), Herbs on Hooks (for fish), Herbs on Hens (for poultry) and Herbs on Hogs (for pork). The company also boasts the ability to meet the unique requirements of each of its customers. For example, if it gets a request for a special item, Evergreen Herbs will source the product and provide test plots, allowing an assessment of it on a small scale first.

Thank you! Ron and TJ thank their customers for their commitment and support over the past 20 years, and their staff for their dedication to building Evergreen Herbs into the successful company it is today.

FRESH FACTS

The best policy There are multiple factors that have played a part in the company’s success, but, according to Brar, it all boils down to one philosophy. “There’s no secret to our success other than we treat others like we want to be treated, and give others the respect that we would want them to give us,” he explains, adding that, when you take that approach and are honest with each other, “everybody wins.”

1996

The year Evergreen Herbs was established

120

Number of employees

Congratulations to Evergreen Herbs on 20 years!

120 Number of greenhouses

140

Size of the farm in acres

solutions@aacb.com | 1.800.663.4270

March / April 2016 Vol 6 | No 2 $9.95

Waites â&#x20AC;&#x2122; WORLD PM # 42211029

Jim Waites | Overwaitea Food Group

Night to Nurture Gala

+produce MANAGER

January / February 2016 Vol 6 | No 1 $9.95

CANADA'S PREMIER GROCERY

PM # 42211029

THE

PUBLICATION

GB_Cover_MayJune2016 FINAL.pdf

2016-05-11

PLUS

WAY AT 60

NEW DESIGN + PRODUCT IDEAS

11:13 AM

March / 2016 May / June | No 3 April6 2016 Vol $9.95 Vol 6 | No 2 $9.95

BUY-LOW CELEBRATES

50 YEARS 50YEARS EARS PM # 42211029

A BETTER REACH A BETTER READ A BETTER VALUE BETTER RESULTS

+ BrandSpark Shopper Study The Innovators International Store Design

Reserve your 2017 trade communication program by contacting: KarenJames@grocerybusiness.ca KevinSmith@grocerybusiness.ca DanBordun@grocerybusiness.ca

P E O P L E | P R O D U C T S | P R O M OT I O N | PA S S I O N

CANADIAN HEALTH FOOD ASSOCIATION SHOW & CONFERENCE MAY 12–15, 2016 – VANCOUVER, B.C.

Jessica Lloyd, Marsham International Food Brokers

Darren Darcy and Gillian Choo, Earth’s Own Food Company Inc.

Aidin Mirsaeidi and Hamid Jamsaz, UNFI Canada Ishkandar Ahmed, Choices Market

Chris Powell, Tree of LIfe; Kristen Powell, Unilever; and Bill Ivany, Tree of Life Jimmy Tremblay, Satau Inc.; and Mike Donald, Indigo Natural Products Management Kevin Smith, Grocery Business Media and Monika Schnarre, iampure

Todd Kelly, KIND Snacks

Reza Bakhtiari, Delta Country Farms

Deb Crisan, Rao’s Specialty Foods, Inc. Jeff Lahey, Amplify Snack Brands Dan Doulos, Gary Morris, and David Clark, GS1 Canada

grocerybusiness.ca

July | August 2016

LIST IT

NEW & NOW DISCOVERIES

Fresh from the Field The new hand-packed Farmer’s Garden line by Vlasic is made with specially selected ingredients harvested at the peak of freshness. Cucumbers, garlic, peppers, carrots, herbs and spices come together to create a homemade taste.

vlasic.ca

CRAZY FOR KEFIR Lifeway’s tart and tangy cultured milk smoothie contains 12 live and active cultures, making it a probiotic star aligned with the “good digestion” trend.

lifewaykefir.com

July | August 2016

SOUP’S ON!

Making the cut The Culinary Cuts line of fresh-cut vegetables are washed, ready-to-eat and versatile enough for use in everything from appetizers to desserts. These conveniently cut vegetables are all-natural, preservative-free and gluten-free.

Fibre-rich black beans and antioxidant-rich kale are the stars in Pacific Foods’ new Organic Spicy Black Bean & Kale Soup. Nutritionally dense, with a mildly spicy kick, consumers will appreciate this healthy and convenient meal solution.

pacificfoods.com

culinarycutsclub.com

What’s brewing? Made with real brewed tea, enhanced with natural fruit flavours and with only 70 calories, SunRype Iced Teas offer a refreshingly bright beverage choice.

sunrype.com

Local Cider Comes to Grocery Shelves Brickworks Ciderhouse has created two refreshing apple ciders with distinct Toronto flavours. Batch: 1904 is a dry, tart cider made with 100 per cent Canadian heritage apples. Queen Street 501 is a semi-sweet cider named after the longest streetcar route in North America, and created from a blend of eight Canadian heritage apple varieties.

millstreetbrewery.com grocerybusiness.ca

July | August 2016

it figures

Summer Sips +40%

of consumers (18+) drink more than 3 alcoholic drinks per week Takeaway Selection and variety are key, but always keep an eye on market trends framed within your storeâ&#x20AC;&#x2122;s demographics.

+50%

of alcoholic beverage consumption occurs at home Takeaway Beer drives traffic, which translates to more chances to interact with your consumer. Understanding who the primary shopper is will lead to relevant merchandising execution.

July | August 2016

Soy and rice-based + 5% alternative beverage with coconut water rising $ sales . . . by 13%

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.

A L L S TAT S C O U RT E S Y: NIELSEN

Takeaway With increased attention on well-being, alternative beverages are a guaranteed traffic driver to the wellness section of your store. Inspire consumers with easy-to-spot displays, and leverage to cross-promote other less popular health and wellness categories.

Carbonated water is growing at 22% vs. flat water at 4% Takeaway Innovation fuels growth, and thatâ&#x20AC;&#x2122;s exactly whatâ&#x20AC;&#x2122;s driving consumption in sparkling waters. Consumers are attracted to the innovative flavours and the versatility of the new offerings. Cocktails, anyone?

Low/No alcohol beverages are gaining in popularity, with sales up

+6% in the last year

Takeaway While low/no alcohol beverages may not implicitly belong on the better-for-you shelf, demand for perceived healthier alternatives is growing and consumers will welcome them in any form.

July | August 2016

In Other Words “ We understand that there have been economic challenges justifying some cost increases… that is no comfort to Canadian consumers who have paid the price of sustained inflation. We think that the burden of inflation needs to shift. We want to work with our suppliers to put money back in the pockets of Canadian consumers.” Grant Froese, chief operating officer, Loblaw Companies Ltd., and Mike Motz, president, Shoppers Drug Mart Ltd., in a strongly worded letter to major suppliers, asking them to cut costs by 1.45 per cent for shipments received on or after September 4, 2016.

July | August 2016

Connect with us to bring Canadaâ&#x20AC;&#x2122;s #1 Medjool date brand to your health-minded shoppers: marketing@bvdg.com

Whole Dates

Pitted

Organic