Premier Issue by Grocery Business

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August September 2011 Vol 1 | No 1

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August/September, 2011 Volume 1, Number 1 www.grocerybusiness.ca Co-Publisher, Executive Editor Karen James 416-561-4744 KarenJames@grocerybusiness.ca Co-Publisher and Content Director Kevin Smith 416-569-5005 KevinSmith@grocerybusiness.ca Executive Vice President Content and Market Development Dan Bordun 416-817-5278 DanBordun@grocerybusiness.ca Managing Editor Kim Laudrum KimLaudrum@grocerybusiness.ca Contributing Editors Sally Praskey, Jaan Koel, Marjo Johne, Sandra McVeigh Creative Agency Boomerang Art & Design Inc. Contributing Photographer Christopher Scott Subscription changes & updates or general inquiries: info@grocerybusiness.ca

Grocery Business Advisory Council Bill Dunne, Acosta Canada John Scott, Canadian Federation of Independent Grocers Nancy Croitoru, Food and Consumer Products of Canada Tim Berman, Kraft Canada Inc. Mark Ayer, Procter & Gamble Inc. David Wilkes, Retail Council of Canada Michael Marinangeli, UGI © Copyright 2011. 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 Grocery Business Media 390 Queen’s Quay W., PO Box 4085 Toronto, ON M5V 3A6

People • Products • Promotion • Passion

publishers ’ MESSAGE Welcome to the premier issue of Grocery Business magazine—a publication dedicated to Canada’s food industry and the more than 569,000 people who work to offer Canadians safe, nutritious food. Perhaps we’re biased, but we believe that the business of manufacturing and retailing food is one of a higher order. Millions of Canadians depend on the grocery industry to feed their families. And while that task is a monumental one, it’s one that you do with excellence every day. As we discovered when researching the “Grocery Goodness” feature in these pages, this is also an industry that gives back to its communities in countless ways. Whether it’s the Grocery Industry Foundation and its support for Kids’ Help Phone, Quality Foods in Northern Ontario and their encouraging support for community programs, or Campbell Company of Canada and their extraordinary Nourish initiative, your generosity is boundless. We are proud to be part of this industry and pleased to introduce you to Grocery Business magazine where you’ll find fresh ideas, products and profiles of the people who are moving our industry forward nationally and internationally. We’d like to hear from you, so please contact us—our emails are below—with your suggestions and thoughts on how Grocery Business can better serve you and our industry. kevinsmith@grocerybusiness.ca karenjames@grocerybusiness.ca

Grocery Business August | September, 2011 Volume 1, Issue 1

features

29 Grocery Goodness

The grocery industry gives back in generous ways.

38 International: Eataly

contents

46 Grocery Innovations

Canada Preview

Publishers’ Message

58 Profile: Canadian Federation

Front End

51 18th Annual Grand Prix New

10 Grocery People 13 Shelf Life: Yogurt

Culture Shock: The hottest product in your cooler deserves special attention.

57 Merchandising: Halloween

How to have a spooktacular Halloween season.

42 Ethnic Food:

Celebrating Diwali

of Independent Grocers

Grocery Business talks to John Scott about CFIG’s expanding membership.

60 Collaboration: UGI

Teamwork builds profits for United Grocers Inc.’s members and suppliers.

64 Launch it, List it

Check out these new products about to hit the market.

August | September 2011

20 18

on the cover state of the industry

Plan to be at the industry’s must- attend event, October 24 and 25.

22 Health and Wellness

Check out this year’s award winners.

66 I remember: John Fortino

Grocery industry veteran Gerry Prins remembers his friend and colleague, the supermarket boss with a heart, John Fortino.

Would consumers pay more for local food?

23 Sustainability

62 Exit Interview: John Harvie

After 27 years in the co-operative system, CEO of Co-op Atlantic, John Harvie stepped down. He spoke with Grocery Business about his past experiences and future plans.

Attracting the health-conscious consumer

22 Local Food Trend

Product Awards

17 Overview 18 Human Resources

How to attract and retain star employees

Greening the grocery supply chain

24 New Retail Formats

Get ready ’cause here they come

25 Ethnic Food Trends

Canada’s ethnic consumer market blossoms

19 Mobile Marketing

26 Food Safety

20 Rising Food Prices

27 Retail Ready Packaging

Departments

A mecca for hardcore foodies, the Manhattan edition of Oscar Farinetti’s homage to the Slow Food movement is a temple of Italian delights.

Mobile marketing on the move Higher food prices here to stay

Keeping it safe

On display

August | September 2011

Front End STRONG EFFECTIVE RELIEF — SINCE 1865

NEW!

American discount retailer Target Corp. will offer fresh food at up to 150 of its stores when it arrives in Canada in 2013, the president of Target Canada, Tony Fisher, confirmed. But the format of these stores will be Target’s smaller PFresh plan, not the 175,000 sq.-ft. behemoths known as Super Target operating in the U.S. The PFresh concept offers 100,000 sq. ft. of packaged groceries, frozen and refrigerated foods and an edited selection of fresh produce, alongside Target’s chic and cheap general merchandise. How the entry of Target will affect Canadian grocery businesses is a subject of much speculation in the industry. Some, such as CIBC retail analyst Perry Caicco, say it will hurt weaker players. “The issue for Canadian supermarkets will be new food square-footage entering the playing field—any new square-footage is bad square-footage,” Caicco said in a recent report. “Just as we saw with Walmart’s Supercenters, the weaker competitors will suffer most.” Retail consultant Jeff Doucette writes that the true competitive advantage for grocers will be the perimeter of the store and adding value to the experience of shopping

New!

Citrus Flavour

Accounts for 25.2% of Cough Drop market package sales in Canada!**

Front Checkout Display Box Specially designed to fit on all front checkout racks!

National TV Advertising Starting Fall 2011! #1 Brand in the Throat Lozenge Market* #2 Brand in the Cough Drop + Fisherman’s Friend Market**

Outpacing Total Cough Drop Market Growth over the latest 52 wks.** Fisherman’s Friend Cough Drop Market

$ +8% +3%

Target to offer fresh foods in Canada

PACKAGES +7% + 0%

* AC Nielsen Th roat Lozenge market 52 weeks to April 9, 2011 ** A.C. Nielsen Cough Drop + Fisherman’s Friend market 52 weeks to April 9, 2011

that part of the store. He adds that the retailers who should be concerned about Target’s entry are Walmart, Sears, The Bay, The Gap and Loblaw—particularly their Superstore formats. However, one consumer survey, conducted by Toronto-based Satov Consultants, indicated less than one in five Canadian consumers plan to switch to Target to purchase their groceries. It seems Canadian consumers are loyal and enjoy shopping at their favourite stores. But that could change once the Target stores arrive—44% of those surveyed were aware the chain sells groceries. If a recent survey is any indication, most Canadians are eagerly awaiting Target’s entry; according to KubasPrimedia’s Major Market Retail Report 2011, 61% of shoppers in Canada’s six largest markets are “very” or “somewhat” interested in shopping at Target stores. Target agreed earlier this year to purchase the leases of up to 220 Zellers stores from Hudson’s Bay Co. for $1.8 billion. By 2017, the U.S. chain expects to roll out more than 200 outlets and earn $6-billion in revenue.

Walmart U.S. to provide CPG sales info to Nielsen Retailers looking for detailed market information about the consumer packaged goods (CPG) industry are expected to benefit from a cooperative agreement between Walmart, the world’s largest retailer, and Nielsen, the global information and measurement company.

About UGI UGI is Canada’s leading national procurement and merchandising organization of retail food products, owned exclusively by nine regional shareholders with representation in every province. The member companies are H.Y. Louie, Overwaitea Food Group, Canada Safeway, Federated Coop, Metro, Longo Brothers, Atlantic Coop, Coleman’s, and the Northwest Company. The main focus of the UGI group is to instill and foster strong partnerships and relationships with the supplier community at large.

Walmart’s Neighborhood Market and Sam’s Club sales information will be incorporated into existing reads of the marketplace. The new base of information will be used to provide improved insights into volumes, pricing, merchandising and promotions.

“Nielsen is confident that both retailers and Walmart agreed to provide sales information consumer goods manufacturers will benefit from its U.S. stores to Nielsen, which already has similar agreements with the majority of U.S. significantly from greater accuracy of information on what consumers buy,” said food, drug, mass, convenience and dollar store Cindy Davis, executive vice-president of retailers. With Walmart on board, Nielsen will Walmart global customer insights. be able to provide a better, more precise view of consumer purchase activity for the benefit of the industry.

Distributed by TFB & Associates Limited, Markham, ON L3R 9Z6 ® Trademark of Loft house of Fleetwood Ltd.

The Board of Directors of United Grocers Incorporated (UGI) is pleased to announce the appointment of Denis Gendron to the role of President, effective July 11, 2011. In his 36 years in the retail business, Denis has held a variety of roles that gives him the perfect background to assume this role for UGI – ranging from supermarket store manager to senior merchandising positions in some of Canada’s top food companies as well as time as a buying group director and representing suppliers to the retail industry. He is widely respected for his ability to work well with all people and develop positive business results, especially between retailer and supplier. Denis will build on the foundation set by Michael Marinangeli who provided 14 years of outstanding leadership.

August | September 2011 ThirdVert.indd 1

7/26/11 2:23:27 PM

Grocery People

2011 CFIG LIFE MEMBERS ANNOUNCED

Awards

Frank Coleman

Philip Donne

Golden Pencil Award recipients announced Frank Coleman, president and CEO, Colemans Food Centre, based in Atlantic Canada, and Philip Donne, president, Campbell Company of Canada are this year’s recipients of The Golden Pencil award—the grocery industry’s highest honour. Paul Higgins Jr., chair of The Food Industry of Canada, which first presented the award in 1957, made the announcement in June. The award recognizes the efforts of both buyer and seller in developing and improving the Canadian Food Industry. Individuals who, through career dedication, have made a significant and worthwhile contribution to the Canadian Food Industry are considered for the honour. This year’s award ceremony will take place November 28 at the Royal York Hotel.

Peggy Hamilton, Peter Knipfel and Steve Van der Leest are 2011 recipients of Canadian Federation of Independent Grocers’ (CFIG) prestigious Life Member Designation, Cori Bonina, chair of the association’s board of directors and John Scott, president and CEO of CFIG, announced.

Peter Knipfel

Peggy Hamilton of Ponoka Foods Ltd., Ponoka, Atla., will receive the designation in the Independent Grocer Category for her long-standing support of CFIG Peter Knipfel, Chesley Grocery Store, Chesley, Ont., will receive the designation in the Independent Grocer Category for his advocacy work. Steve Van Der Leest, Overwaitea Food Group, Vancouver, B.C., will receive the designation in the Industry Builder Category. He has been involved with the association since he owned a store in High River in the ’70s. All three grocers will be officially recognized on October 25 at Grocery Innovations Canada 2011 at CFIG’s Luncheon of Honour, in the Leonard Cohen Ballroom, at the Toronto Congress Centre.

Appointments McCain Foods Ltd. appointed Dirk Van de Put president and CEO and a director of Dirk Van de Put the company, succeeding Dale Morrison, effective July 1, 2011. Van de Put joined McCain Foods in May, 2010 as chief operating officer and a director of the operating company board. He has more than 20 years global experience in the food and consumer packaged good industry, serving

August | September 2011

in senior roles with Novartis, Group Danone and Mars Inc. After seven years McCain Foods President and CEO Dale Morrison is leaving to become a founding partner in a private equity firm. McCain’s Chairman of the Board Allison McCain, said the transition was planned and that “McCain is both far stronger and far better positioned for future growth worldwide” thanks to Morrison’s leadership. Calvin McDonald, executive vice-president, conventional

division, Loblaw Companies Ltd. left the company in June. Named Calvin McDonald one of The Globe and Mail’s “Top 40 Under 40” rising executives earlier this year, McDonald accepted the top job at Sears Canada to help revive that brand. Mark Butler was tasked with taking on McDonald’s responsibilities at Loblaw in addition to store development

and indirect procurement. Peter McMahon, Loblaw’s chief operating officer, takes charge of the marketing, Loblaw brands, quality assurance and food safety teams. Thom Lachman joins Procter & Gamble Canada as president. Lachman was Thom Lachman vice-president, North America, male grooming, with the company in Boston.

Tim Penner retires at the end of August, after a decade as president and a 33-year career at Procter & Gamble Canada. Denise Morrison is Campbell Soup Company’s new president and chief executive officer. Morrison joined the U.S. company in 2003. Denis Gendron, a 36-year veteran of the retail business, was appointed president of United Grocers Inc. (UGI) in July. Gendron has held roles ranging from supermarket store management to senior merchandising positions with some of Canada’s top food companies. Steve Sharpe, head of Sharpe’s Food Market in Campbellford, Ont., was elected chair of Distribution Canada Inc., a national organization of independent grocers that fosters collaborative selling relationships between its shareholders, manufacturers and key stakeholders in the Canadian grocery industry.

Paul-Émile Légère became Co-op Atlantic’s chief executive officer in May, 2011. He is a designated chartered accountant and holds a Bachelor of Business Administration from the University of Moncton. He has held senior finance positions with leading organizations, such as Major Drilling Group Inc., the Nova Scotia Regional Paul-Émile Légère School Board

system, and Cavendish Farms. Légère takes on the CEO role from John Harvie, who stepped down earlier this year. (See “Exit Interview,” page 64.) Shawn Lacey, vice-president, logistics and distribution, Metro Ontario Inc., is the new chair of the Canadian Pallet Council (CPC), a non-profit organization established in 1977 to provide low cost, competitive pallet services for the Canadian consumer products industry. The CPC has more than 1,100 members who own and

exchange millions of distinctive orange pallets in circulation. Stephen Fraser Stephen Fraser is now responsible for the development of the Canadian consumer products market as vice-president, sales, for Cascades Tissue Group. Fraser has held senior roles over 20 years in the consumer tissue business and joined Cascades last spring.

Steve Sharpe

August | September 2011

Indulge your shelves Introducing the new Tetley

Shelf Life: Yogurt

Culture Shock The hottest product in your cooler deserves special attention

Dark Chocolate and Vanilla Bean Chai Teas – a blend of exotic Indonesian spices and rich, indulgent flavours that come together to create a delicious taste experience. It’s the perfect option for consumers looking to put a unique twist on tea time.

Contact your Tetley representative today to order. Start ship: July 18, 2011 tetley.ca

Wake up your sales! Say good morning to new Tetley Perk – all the natural goodness of tea and the great taste of Tetley orange pekoe but with the caffeine of coffee.

From your consumers’ viewpoint yogurt is the Swiss Army knife of foods: it’s a convenient snack, a cooking ingredient, a health food and a dessert. It tracks positively to consumer trends in health awareness, comes in styles that appeal to every demographic and provides high margins on premium offerings. It’s no wonder that yogurt category sales continue to increase year-over-year. But this growth brings challenges to the category. Out-of-stocks can be a problem and finding enough space to accommodate the growing number of SKUs is something many retailers are struggling with. “Manufacturers are constantly bringing innovation to the category, but the yogurt section in the dairy case remains the same size,” says Rosa Checchia, marketing director, Yogourt, Parmalat Canada. “Reducing existing SKUs to make room for innovation impacts consumers by limiting their choices.” And those choices continue to grow. Consumers can now enjoy this healthy

product in a wide variety of formats: »» yogurt desserts, including frozen yogurt and fruit parfaits »» drinkable yogurt and yogurt smoothies »» plain and flavoured varieties »» reduced-carb and reduced-fat varieties for weight watchers »» organic and probiotic yogurts that appeal to the health-conscious »» Greek-style yogurt And it is Greek-style yogurt, a premium product that is strained to make it thicker that has been getting a lot of buzz these days. Compared to regular yogurt, Greek yogurt is thicker, creamier, less sweet, lower in carbs, and higher in protein. Relatively new to Canada, growth in the U.S. has been phenomenal and Greek-style yogurt now represents an estimated 19% of the category south of the border. Astro Original Greek yogurt is now available from Parmalat Canada and Loblaw recently added a Greekstyle SKU to its PC lineup.

With the aging population and consumers’ focus on health, manufacturers have stepped up. For example, Parmalat’s Astro BioBest yogurt and Danone’s Danacol drinkable yogurt contain plant sterols, a natural substance that helps lower cholesterol. Canada permitted this additive to be used in foods only last year so expect to see more new products with these unique benefits vying for your shelf space.

Consumers are enjoying yogurt in a variety of ways so consider the cross merchandising opportunities: »» consumers are substituting it for shortening in some baked goods »» replacing sour cream with yogurt in dips, sauces and marinades »» using yogurt as a replacement for whipped cream on desserts »» rather than mayonnaise, yogurt is now substituted in many recipes

Consider customizing the yogurt section 1 Increase the size of the yogurt

section as consumers’ demand for variety grows.

2 Merchandise the section to

reflect the way consumers shop the yogurt category, which can be a confusing place for 26% of Canadian consumers, according to data cited by Parmalat.

Think like your consumers and organize yogurt according to shoppers’ needs. For example: »» weight management »» functional health »» natural and organic (plains and flavours) »» traditional taste »» child-oriented products

4 Include a section for snack

yogurts (drinks and convenient containers) and yogurt variants (Greek-style and kefir, for example).

August | September 2011

Shelf Life: Yogurt Yogurt and Health 101 »» Yogurt is high in protein, lactose, vitamins, minerals and calcium.

Consumption is growing rapidly

»» Probiotic yogurts contain active cultures and some contain multiple strains of culture to enhance health benefits.

According to Statistics Canada more households than ever are buying yogurt and yogurt products. Growth has largely been driven by: »» recognition of yogurt as a functional food (i.e., probiotics) »» convenience sizes and creative packaging that satisfy the snack cravings »» age-specific targeting with aggressive advertising and branding »» alternate forms such as drinks, frozen yogurt dips, and bars

»» flavour options »» reduced-fat options »» the influence of Asian cuisine »» use as a recipe ingredient »» replacement of milk in the dairy category as a calcium source S ource : A griculture and A gri - food C anada

Shopper Marketing Tips

Where’s the growth? The yogurt market is dynamic. The regular yogurt category is growing in both dollar and unit sales as diet yogurt declines, notes Nielsen. While plain refrigerated yogurt is only 9.7% of overall category dollars and 2.2% of overall category unit volume, it has stronger dollar and unit growth than flavoured yogurt. Plain yogurt is up 15% in dollar sales and 13% in unit volume, while flavoured yogurt is up 5% in both dollars and units.

August | September 2011

»» Evidence suggests probiotic yogurts, particularly those with fibre help with lactose digestion, reduce risk of colon cancer and boost the immune system. They may also help with high blood pressure, osteoporosis, allergies and other conditions.

Access. Opportunity. Results.

Educate your customers about how yogurt is made and the difference between the varieties.

Provide information on using yogurt in cooking. This is a great opportunity for demos or sampling.

Encourage impulse purchases with freestanding coolers particularly in the produce section of your store.

Have a yogurt tasting and encourage customers to try new and different flavours.

Cooking with yogurt is popular so stock larger containers that support higher-volume usage.

Acosta helps put your products right where you want them – in shoppers’ hands.

Dollar Sales

Dollar Sales % Change vs Year Ago

$ Share

Unit Volume

Unit Volume Percent Change vs Year Ago

Unit Share

YOGURT PRODUCTS - REFRIGERATED

$1,275,420,661

100.0

1,874,975,828

100.0

MULTI - 1 S

$505,813,757

39.7

224,975,624

12.0

MULTI - 2 S

$9,605,452

60%

0.8

3,026,790

50%

0.2

MULTI - 4 S

$47,602,204

3.7

78,524,779

4.2

MULTI - 6 S

$53,784,454

18%

4.2

114,963,753

19%

6.1

MULTI - 8 S

$243,789,877

19.1

431,810,424

23.0

MULTI - 12 S

$165,134,665

12.9

362,465,663

-1%

19.3

MULTI - 24 S

$54,936,950

4.3

143,076,955

7.6

MULTI - OTHER MULTI YOGURT PRODUCTS

$194,753,302

13%

15.3

516,131,841

12%

27.5

MULTI - MORE THAN 1 S

$769,606,904

60.3

1,650,000,205

88.0

SIZE - 0 - 125 GM

$716,062,842

56.1

1,595,700,969

85.1

SIZE - 126 - 175 GM

$35,839,728

-20%

2.8

44,470,733

-26%

2.4

SIZE - 176 - 500 GM

$114,420,668

33%

9.0

96,262,112

28%

5.1

SIZE - 501 GM & OVER

$409,097,423

32.1

138,542,014

7.4

FLAVOUR - PLAIN

$123,546,844

15%

9.7

42,054,468

13%

2.2

FLAVOUR - FLAVOURS

$1,151,873,817

90.3

1,832,921,362

97.8

FLAVOUR - OTHER FLAVOURS

$922,881,356

72.4

1,658,033,618

88.4

FLAVOUR - STRAWBERRY

$117,872,141

9.2

107,039,817

14%

5.7

FLAVOUR - PEACH

$31,015,467

-1%

2.4

19,025,780

-2%

1.0

FLAVOUR - RASPBERRY

$30,073,958

-2%

2.4

20,883,524

1.1

FLAVOUR - BLUEBERRY

$21,749,595

13%

1.7

14,338,352

-11%

0.8

FLAVOUR - CHERRY

$16,673,763

18%

1.3

8,874,211

52%

0.5

FLAVOUR - FIELDBERRY

$11,607,537

-15%

0.9

4,726,060

-17%

0.3

REGULAR VS LIGHT - NON DIET / LIGHT

$853,620,655

12%

66.9

1,195,494,159

11%

63.8

REGULAR VS LIGHT - DIET / LIGHT

$421,800,006

-5%

33.1

679,481,669

-5%

36.2

Acosta leverages our history of industry-changing vision to help optimize sales and build brand loyalty. Not only do we provide the access and opportunity you need to succeed, we also deliver a results-oriented approach that starts with strategic insight and is backed by unmatched execution. It’s all designed to open doors for your brand’s success. Contact Bill Dunne, President, Acosta Canada at 905.265.3724 or email bdunne@acosta.com

www.acosta.com

•• •

INDUSTRY StateIND

•

18 Human Resources

••• •

General Mills leads your profitable growth with… ••••

19 Mobile Marketing

Brands

20 Rising Food Prices

25 Ethnic Food Trends

OF THESTA INDUSTRY 27 Retail Ready Packaging

22 LOCAL FOOD

• ••

•

• ••••

+ Capabilities Leading insights and capabilities that help drive your profit.

••

Emerging relatively unscathed from the 2009 recession, Canada’s $111-billion grocery business is buoyed in 2011 by an increase – albeit gradual – in consumer confidence. None other than The Economist has stated Canada’s economy is no longer in recession. But still the perception lingers among consumers that times are tough. And it’s that perception – not necessarily reality – that matters most.

• • • •••

Still, Canadians are far more optimistic about the future economy than Americans are. And with good reason. Employment here is rising faster than in the U.S. Our housing market is relatively stable. But still there are challenges. Food and gas prices are rising globally. New retail competitors are arriving from the south with formats attractive to consumers. An e-coli scare in Europe this spring has consumers – even here – nervous about the safety of the food supply, despite that fact Canada has one of the safest food-handling supply chains in the world. The industry is also challenged to attract and retain good workers. Retailers face increased pressure from vendors over trade promotion

••

24 New Retail Formats

26 Food Safety

22 Health and Wellness

Leading brands in expandable growth categories.

•••

23 Sustainability

••••

Solutions

Leading growth with customized solutions for your center store.

terms. Consumers expect to see greater sustainability initiatives in the industry, especially to reduce packaging and food waste. But the good news is that opportunities abound. Canada’s immigration population is growing, especially in some of the smaller cities where the rate of growth is twice that of the larger urban centers. Grocers who find a way to cater to the needs of their ethnic communities can position themselves for positive growth. Meanwhile, aging baby-boomers are becoming much more health conscious. Targeting these shoppers requires some imaginative strategies but will be well worth the effort. On the technology front, mobile marketing is poised for dramatic growth: more than 33% of

mobile phone users own a smartphone – and that number is expected to rise. Creative retailers are reaching these customers with a variety of promotional apps to draw them into the store. While food inflation can modify consumer behaviour – shoppers might purchase romaine lettuce instead of higher priced arugula, for example – it does offer grocers more pricing flexibility than would times of deflation. Despite all of these challenges, the grocery industry remains resourceful and through collaboration will find ways to continue to thrive. Here to help grocers is the premier issue of Grocery Business and a special report on “The State of the Industry.”

August | September 2011

NDUSTRYstateoftheindustrystateoftheinDusustrystateoftheindustrystateoftheindusTRY tateoftheindustrystateoftheindustryINDUSTRYstateoftheindustrystateoftheindustrysta dustrystateoftheindustrystateoftheindustrystateoftheindustryINDUSTRYstateoftheindustrys tateoftheinDusustrystateoftheindustrystateoftheindusTRYstateoftheindustrystateoft dustryINDUSTRYstateoftheindustrystateoftheindustrystateoftheindustrystateoftheindustrys tateofthein State

OF THE INDUSTRY

human resources

mobile marketing

State

OF THE INDUSTRY

mobile marketing on the move by Sally Praskey

How to attract and retain star employees by Jaan Koel

Ask people in the industry today, ‘What are the greatest human resources challenges you face?’ and they’ll tell you the same story. Attracting and retaining good employees, particularly young workers, is difficult. As the baby boomers age, there is increasing pressure to replace the large number of experienced workers expected to retire in the next decade. And, as Canada’s population becomes more diverse, retail employers have to keep pace by hiring people their customers can relate to. What are the challenges to attracting and developing loyal long-term employees? According to the Canadian Grocery HR Council (CGHRC): 1. Industry image: the grocery business is seen more as a low-level, stopgap type of job for most employees, especially young ones. 2. Part-time: 50-70% only work part of the week, adding to attrition because of limited pay and lack of benefits. 3. Career opportunities: grocery, and retail in general, offers as many opportunities for advancement as any other industry, but people often don’t look at it that way and as a result often do not stay. 4. Demographics: the staff need to reflect the profile, tastes and habits of the community. 5. Skills: as grocery stores venture into new areas (e.g., floral, ready-toeat meals) employees need more skills beyond working the register or stocking shelves to serve customers. 6. Training: is vital to making employees feel the company cares and is investing in their, and its own, future.

Patricia Parelukar, executive director of the CGHRC, says the one thing obvious about people working in grocery is, they like people. “That’s why we like to encourage as much interaction between shoppers and staff as we can,” she says. “It’s win/win. Shoppers get added value, and employees get a kick out of answering questions and providing advice. We have on-line courses on customer service and other subjects that employers can take advantage of to train their workers and improve overall performance and employee satisfaction.” What can retailers do to attract quality employees? According to a study titled, “A Changing Retail Landscape—An Analysis of Emerging Human Resources Trends” by the Retail Council of Canada and the Government of Canada’s Sector Council Program, they could: 1. Emphasize job convenience (flexible hours, job portability) in the recruitment and retention process. 2. When discussing compensation, be sure to include opportunities for advancement and other incentives. 3. Emphasize training on teamwork and leadership to develop employee buy-in and loyalty. 4. Prepare for an aging workforce and rising labour costs. To read “A Changing Retail Landscape,” visit: http://www.retailcouncil.org/ training/research/industry/rcc_hrtrends_eng_20091202.pdf

Employment income for some retail occupations – 2005 G3 Cashiers G2 Retail salespersons & clerks G011 Retail supervisors

Part-Time

$7,789

$11,240 $34,959 $16,772 $34,479

August | September 2011

Quality Foods on Vancouver Island has a smartphone app that allows customers to activate “appy hour specials” and get the deal instantly at checkout.

$47,193 $22,398 $51,221

In 000s $0 $10 $20 $30 $40 $50 $60 Source: 2006 Census

digital wallet this fall that will store customers’ credit- and debit-card account information for Visa and other cards, and allow them to pay for purchases at point of sale. Also on the horizon is 2D mobile barcodes—those black and white squares with a maze of bars and lines inside them. Sometimes called QR (Quick Response) codes, mobile barcodes are much like their traditional counterparts, but contain much more information. In a nutshell, they are a link to online content to provide additional information or offers. They could appear on the shelf edge, in a print ad or flyer, or on a product package, and can be scanned using almost any mobile phone, as long as it has a camera and access to the Internet. Users are directed to a mobile site where they can find additional information on products, as well as e-coupons and other promotions. The CWTA research revealed that 45% of mobile users surveyed are aware of 2D barcodes, and 10% have used them; 14% of those had recently scanned grocery items. Almost one-quarter of respondents said they are interested in using their phone for other applications, such as coupons, product information, and POS purchases. “We are really starting to see [this technology] become a mass mobile media element,” says Laura Marriott, CEO of NeoMedia, a Victoria, B.C.-based provider of 2D barcodes. “It’s being deployed quickly, and it’s very low cost.”

$29,690

A21 Retail managers All occupations

Full-Time

$20,140

Few consumers leave home these days without their cell phone, and marketers are taking note. While many of the growing numbers of mobile marketing applications don’t require a smartphone—a simple “feature” phone with messaging capabilities will suffice—the adoption rate for smartphones is soaring. According to research by Quorus Consulting Group on behalf of the Canadian Wireless Telecommunications Association (CWTA), 33% of mobile phone users have a smartphone, a figure that is expected to increase sharply. “This thing called mobile is really big,” says Michael Becker, North American managing director of the Mobile Marketing Association. “It’s not something to be ignored. It’s something that exists in both traditional and digital channels, and it’s critical for brands and marketers to understand and appreciate that.” There are many ways grocers can use mobile marketing to connect with customers and drive sales. Mobile phones can be a tool for delivering promotions, messages, e-coupons, rewards, and updates. It can be integrated with frequent-shoppercard programs for targeted-offer distribution or SMS messaging (texting), triggered by the phone’s proximity. Quality Foods on Vancouver Island, for example, has a smartphone app that allows customers to activate “appy hour specials” and get the deal instantly at checkout. Another emerging application is mobile payments. Visa Canada Corp. is working with several Canadian and international banks to launch a

Look who’s attending GIC: “We attend Grocery Innovations Canada year after year because it’s the best place to meet people in our industry, meet manufacturers face to face, source new products, and network with people who share our passion for the grocery business.” Steve Sharpe – Sharpe’s Food Market, Campbellford, Ont. Retailer

August | September 2011

OF THE INDUSTRY

rising food prices

Higher food prices here to stay

Consumers are consciously trying to save on consumer packaged goods Top saving activities:

Canadians are focused on their balance sheets What do consumers do with spare cash?

37%

33%

Only buy when on sale

26%

Use coupons Buy larger value packs

by Jaan Koel

Pay off debt

Savings

Have no spare cash

Shop at value retailers

Source: Nielsen Global Online Consumer Confidence Survey March 2011

Stock up when on promotion Shop close to home Buy smaller sizes (lower unit cost)

The rising cost of gasoline is one of many things contributing to the 3.7% rise in consumer prices in May from a year earlier. Fortunately, food cost increases have not kept pace. That said, they’re still higher than they were, and by all accounts will continue to rise for reasons beyond our control in Canada. Canadian Federation of Independent Grocers President John Scott suggests increased demand, particularly for corn and wheat, due to population increases and new economic strength in Brazil, India and China (BIC) is one of the factors pushing costs up. “Millions more middle class people are changing their diets and moving into greater protein consumption,” he says. “Animals are fed with grains and corn. Global demand for these and other products is increasing.” Meanwhile, because of droughts, floods, and poor weather in general, crop yields around the world have been far lower than normal, decreasing supply. Government policies, including those in Canada and the U.S., that earmark a certain amount of corn, oilseed, and other commodities to biofuel production, decrease food stocks further. In addition, as supplies tighten, governments in various countries tend to implement protectionist policies that muddle things even more.

Increased demand, particularly for corn and wheat, due to population increases and new economic strength in Brazil, India and China (BIC) is one of the factors pushing costs up.

Food prices are stable for now…

2.1%

the rise in the overall food price component of the Consumer Price Index in February, according to the latest inflation figures released by Statistics Canada ...but brace yourself for a big jump

7-8%

17%

expected annual rise in food prices on a year-over-year basis by March 2012 in Canada, according to Toronto-Dominion Bank economists of the average household’s spending is on food. An increase in food prices of the TD Bank’s suggested magnitude would add 0.2 per cent to the overall inflation rate–currently at 2.2%

Thankfully, the high value of the Canadian dollar has buffered the impact somewhat for the consumer, as has the traditionally strong level of competition among the country’s retailers. “One risk to consumers,” says Scott, “is that as prices increase, people will start trading down on what they’re willing to pay for. They might start thinking that buying fresh is more expensive, which is not necessarily true, but it can jettison the concept of great food being great for health.” Scott says that smart retailers will resist playing the price game. “As prices increase, communicate with your customers and explain the reasons why they’re increasing. We’ve got some terrific retailers that will figure their way through it. The winners in years to come will be those who can market well and take advantage of such things as locally produced products. These can reduce transport costs by offsetting the rising price of fuel, and consumers perceive local as being better,” he said. Scott says it may take a few years, but things will stabilize as food technology advances to increase yields. Bottom line? Canadians will be paying more for food than they have in the past, because increasing demand from developing nations, along with other factors, is not going away.

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OF THE INDUSTRY

% change vs. year ago

70% 52% 37% 34% 33% 27% 18%

-5 +2 +3 -1 -4 +1 +6

Source: Nielsen Global Online Consumer Confidence Survey March 2011 – Canada – Chg vs YA

More Canadians are working, but are faced with threat of higher inflation and interests rates DEC/09 MAR/11

8.5

7.7

3.3

2.3

1.3

Inflation

Unemployment

3.0

Prime Interest Rates

Source: Statistics Canada

Canada’s CPG inflationary trends are being impacted by volatile feature pricing Inflation

Total Sales

Reg Price

TPR Price

10 8 6 4 2 0 -2

Q2’09 Q3’09 Q4’09 Q1’10 Q2’10 Q3’10 Q4’10 Q1’11

-4 -6 Source: Nielsen MarketTrack – Total Tracked Sales excluding Fresh Random Weight Regular and TPR Sales: National G+D+M only

Look who’s attending GIC: “Whether it’s an on-trend product, valuable industry insight, or simply to connect with colleagues in the grocery business, Grocery Innovations Canada is a fantastic opportunity for us to find exactly what we need in one place.” Peter Knipfel – Chesley Grocery Store, Chesley, Ont., retailer

August | September 2011

Look who’s attending GIC: “The GIC Show is an unique opportunity for independents to experience firsthand new and innovative products from a great number of participating manufacturers, all under one roof.” Lorrayne Pereira – Nestlé Canada Inc., Toronto, Ont., exhibitor

August | September 2011

INDUSTRYstateoftheindustrystateoftheinDusustrystateoftheindustrystateoftheindusTR tateoftheindustrystateoftheindustryINDUSTRYstateoftheindustrystateoftheindustryst dustrystateoftheindustrystateoftheindustrystateoftheindustryINDUSTRYstateoftheindustrys tateoftheinDusustrystateoftheindustrystateoftheindusTRYstateoftheindustrystateoft dustryINDUSTRYstateoftheindustrystateoftheindustrystateoftheindustrystateoftheindustrys tateofthein Attracting the sustainability

health and wellness

State

OF THE INDUSTRY

by Carol Dumbrow

Know your customer hh

hh hh

Online nutrition gatekeepers are between the ages of 21 and 50 (90%) and over half are women (59%). They use blogs and forums to get their full messages out as opposed to bite-sized tweets. They are concerned with healthy weight, diet and exercise. They discuss healthy meals and healthy

Most consumers prefer local food, but not if it costs more Most Canadian consumers—95%—agree buying locally grown food is “a priority or a preference,” but only 43% were willing to pay more for it, according to an Angus Reid poll conducted in March for Farm Credit Canada (FCC).

hh hh

Consumer’s personal preference when making purchase decisions 55%

“I like purchasing Canadian products, but I am not willing to pay more for them.”

52%

“I like purchasing locally-grown products, but I am not willing to pay more for them.”

43%

“Purchasing locally-grown products is a priority for me and I am willing to pay more for them.”

“Purchasing locally-grown products is not important to me.”

“Purchasing Canadian products is not important to me.”

Source: Farm Credit Canada and Angus Reid

Check out the My Heart & Stroke Health Check Recipe Helper app. It’s a quick and easy resource to help lower the amount of sodium in the diet. It features dozens of heart-healthy, lower-sodium recipes that come with grocery lists, main ingredient searches, and comprehensive nutrition information.

Manufacturers are creatively reducing material, energy and waste in their packaging.

Greening the grocery supply chain

It includes links to the website where consumers can search for Health Checked products.

by Jaan Koel

The free app can be downloaded at the Apple, Android, and BlackBerry app stores or at www.heartandstroke.ca/ mobileapps

Great Grocery Resources

Resources

Jean-Phillippe Gervais, FCC’s senior agricultural economist said in a release that he was not surprised by the survey results. “Purchasing decisions are driven by price,” he said.

“Purchasing Canadian products is a priority for me and I am willing to pay more for them.”

eating and weight loss. Calories are the number one topic of conversation (32%) followed by fibre and carbohydrates (14% each) and sodium and fat (11% each). They discuss processed foods (84%) much more then meal planning or meal preparation. Their conversations are focused on specific meal occasions, e.g., breakfast, lunch, dinner and snacks.

Here are some ideas for reaching these consumers in store, making it easier for them to eat healthier: hh Provide information on nutrition in your flyers. The Heart and Stroke Foundation’s Health Check program has camera-ready tips available. Great (www.healthcheck.org/ Grocery page/flyers).

The survey also found 96% of the 2,015 respondents indicated they preferred to purchase Canadian products, but only 41% were willing to pay more for them.

41%

OF THE INDUSTRY

It’s new

health-conscious consumer Nutrition is a hot topic. Canadians are reading about healthy eating in the mainstream media, talking about it with friends, receiving information from a health professional or participating in conversations online. There is a lot of information being shared and discussed about food. Motivated nutrition gatekeepers are leading online discussions.

State

hh hh

Promote easy to make meals. Group products together so that it becomes one stop shopping for your customers to pick up what they need for dinner, such as whole grain pasta, sauce and lean ground meat and a salad. Or package a stir-fry dinner that includes cut-up chicken or fish, vegetables, noodles and sauce. Set up an area in the produce section with ready-to-serve, pre-cut vegetables. Hand out samples to customers as they arrive. Offer value-added services that actively promote wellness such as healthy cooking classes, meal-planning sessions, and label reading tours. Educate your staff on healthy eating so they can be your in-store ambassadors. Brand your store as a healthy eating shopping destination.

Carol Dumbrow is a registered dietician with the Heart & Stroke Foundation

Great Check out these websites

Food and Consumer Products Canada www.fcpc.ca GS1 Canada www.gs1ca.org Guelph Food and Technology Centre www.gftc.ca

Grocery Resources

Canadian food companies are particularly innovative about product development, especially when it comes to packaging. Keen to step up their environmental game, these manufacturers are creatively reducing material, energy and waste in their packaging, says Derek Nighbor, senior vice-president, public and regulatory affairs, Food and Consumer Products Canada (FPCP). They have also improved the management of end-of-life packaging with effective recycling programs. “We need to do all this while respecting food safety, above all, and taking as much cost and complexity out of the value chain we can,” Nighbor says. Investors are paying attention to companies who take their role as environmental stewards seriously. Cher Mereweather, director, sustainability consulting, Guelph Food Technology Centre (GFTC) says, “Savvy investors are looking to put their money into companies that can offer minimal risk. “Being on the brink of crises with oil prices, water shortages, cost of electricity, and other things, investors like to see companies doing the right things to manage these risks, along with driving out inefficiencies in general,” Mereweather said.

Both Nighbor and Mereweather cite advances made by Walmart and its Sustainable Packaging Scorecard as an example of the solid sustainability efforts the industry is making. “More retailers, the larger ones in particular, are asking suppliers to conduct surveys and audits to satisfy a growing need for transparency in the sustainability arena,” says Mereweather. Surveys and audits are a growing business (GFTC has developed recognized capability in this area) and is something Nighbor says is best approached collaboratively to minimize having to reinvent the wheel each time a new survey or system is introduced. “GS1 Canada [a supply chain standards organization] has done a lot of good work in bringing retailers and manufacturers together on an agreed definition of what sustainable packaging is, and agreed metrics. It’s also building a collective data base that will help everyone move ahead more efficiently,” Nighbor explains. As food retailing continues to evolve, sustainability will too. As Nighbor says, it’s best if it is characterized by collaboration rather than competition across the value chain.

Look who’s attending GIC: “Grocery Innovations has always been an excellent event for launching new products in Canada. Well situated in Toronto and close to the head offices of major retailers, it attracts key decision makers and buyers in a major market. We will be returning!” Ken Kwong – National Importers Inc. Vancouver, B.C., exhibitor

August | September 2011

OF THE INDUSTRY

new retail formats

Get ready ’cause here they come by Sally Praskey

The world of consumer grocery shopping is changing dramatically, not only because of growing digital options, but also because retailers are experimenting with new bricks and mortar formats. Target

Much of the buzz in the Canadian mass-merchandising channel these days is aimed at Target Corp. The U.S. retail giant recently announced the locations of the first 105 Zellers stores it will be taking over and opening beginning in 2013. The list includes stores in every province. The company, which will be headquartered in Mississauga, expects to have close to 200 stores within five to ten years after its initial ramp-up. Target recently announced plans for Canada that include fresh. According to CIBC World Markets Inc.’s Perry Caicco, while food is a traffic driver for Target and Walmart in the U.S., “there is little evidence that food drives primary traffic for mass merchants in Canada.” If Target does go “full fresh,” Caicco predicts sales in food alone of $1.3 billion by 2019, or just over 1% of the Canadian market. Target carries a full selection of fresh foods in its SuperTarget stores in the U.S. and is also gradually rolling out what it calls its PFresh format. These stores feature an expanded food layout for its standardsized stores that could be adapted for the smaller footprints. Walmart

Meanwhile, U.S. behemoth Walmart is, ironically, experimenting with smaller formats in that country. For example, it recently opened a 3,300-square-foot outlet at the University of Arkansas, called Walmart on Campus, which is basically a convenience store and pharmacy. It is also developing a 15,000-square-foot format called Walmart Express that is expected to feature some produce, refrigerated, and frozen foods. Walmart announced in July plans to launch a new store format, called Urban 90 to open in east Toronto in January. It is expected to be roughly half the size of typical Walmart stores here. The announcement came on the same day the company announced it bought the leasehold rights to 39 former Zellers stores from Target Canada. The company also continues to launch supercentres in Canada. It plans to open 40 more in fiscal year 2011-2012, bringing the total to 164 and introducing the concept to the provinces of Quebec and Manitoba.

ethnic food trends

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Procter & Gamble’s Facebook shops

Procter & Gamble (P&G) experimented last year with a Facebook store and now is upping their f-commerce game. Brands Tide, Gillette, Olay, Gain, Cover Girl, Luvs and Febreeze all have their own Facebook shops now. P&G’s e-commerce sales are directed to an independent online retailer, PFSWeb’s eStore for fulfilment. Other retail partners are invited to participate; a splash tab encourages customers to “purchase on Facebook through these trusted retailers”. But so far only eStore is on board. The opportunity to gain insight into how their consumers’ interact with technology and the P&G brands is the driving force behind the manufacturer’s online initiative—not necessarily sales. eStore can give them this information in collaboration with Resource Interactive, the f-commerce software behind the site. It’s all about customer convenience, says P&G. “We want to maximize our sales through retailers, but we also want to be where the consumer wants to shop,” said P&G’s CEO Bob McDonald. Dollar Tree

Dollar Tree’s recent acquisition of Dollar Giant and planned entry into the Canadian market will make little splash in the short term, but a tidal change in its long-term impact on the dollar store landscape in Canada— an undeveloped market—according to CIBC World Markets’ Perry Caicco. Rising in direct competition to Dollarama, Dollar Tree offers two important distinctions in its concept. Special SKUs, a strategy of opportunistic buying of closeouts and deals—an idea taken from Costco or Winners—fosters a buy-it-before-its-gone culture with customers, Caicco notes in the CIBC World Market’s report, “Dollarama Inc. The Changing Dollar Landscape in Canada.” This strategy relies heavily on skilful buying and efficient inventory management. The greater proportion of sales coming from food and the inclusion of coolers and freezers is another significant difference between Dollar Tree and Dollarama. Dollar Tree experimented with the concept five years ago at 40% of their stores. Caicco writes it is likely they will bring that format when they roll out stores in Canada.

Large format stores that cater to ethnic tastes are positioned for growth.

canada’s ethnic consumer market blossoms by Jaan Koel

About $4.5 billion is spent each year in ethnic grocery stores—and that number is growing at 15% to 20% annually, making it the fastest growing single segment of the food industry. This growth mirrors Canada’s changing demographics: each year, Canada accepts about 250,000 immigrants, representing two-thirds of the nation’s annual population growth, according to a CIBC World Markets study by industry analyst Perry Caicco, “The Ethnic Consumer In Canada-—Understanding a Powerful Trend.” What the grocery industry defines as ethnic food, particularly Chinese and South Asian, is now sold less in local mom-and-pop

outlets, which are shrinking in number, and more in large format stores, such as T&T Supermarkets (purchased by Loblaws in 2009) and Galleria Supermarkets in Toronto. These are every bit as attractive to shop in as their conventional counterparts. The new hybrids (conventional formats with an ethnic ethos) cater to their customers’ varied tastes, particularly when it comes to seafood, spices, vegetables, beverages, and fruit. From the ethnic consumers’ point of view, these stores are the destination of choice, particularly if they carry favourite brands from home. Canada’s large urban areas – Toronto, Montreal, Vancouver – are still the main

centres of immigration, however, smaller cities like Saskatoon, Winnipeg, Regina, and elsewhere are now seeing a percentage growth in their immigration populations that is almost double the rate of the larger cities. How to win with these consumers? Offer the right products to meet the needs of each community, create the right atmosphere, and focus on getting the pricing right – it should be as low or lower than traditional discount. The demands of the Canadian food shopper are changing quickly and traditional grocers will need to figure out what works best in their individual trading areas.

10 things you should know about YOUR ETHNIC CONSUMERS

Target’s PFresh format: Food is a traffic driver for Target in the U.S. Will its fresh concept work here?

1 Most spending for immigrants is on housing. 2 Most have larger than average household sizes and spend more than average per week on groceries. 3 Within four years most will own their own homes. 4 Unemployment and under-employment is a factor, regardless of language or education.

5 Most rely on public transit. 6 Higher education levels and educational aspirations are common. 7 Incomes are lower than average. 8 There is a focus on saving money. 9 Word-of-mouth communication and collective behaviour is important. 10 They have strong cultural and family ties.

Carrying favourite brands from home will attract ethnic consumers.

August | September 2011

OF THE INDUSTRY

food safety

retail ready packaging

Safety tips for grocers

Post info sheets on all aspects of safe food handling practices at appropriate places in the store. A package of 24 one-page info sheets is available from Canadian Federation of Independent Grocers (CFIG) at http://www.cfig.ca

keeping it safe by Jaan Koel

The safety of food at retail is all about correct preparation. The greatest risk comes from foods that are prepared on-site or sold in bulk without discrete packaging. As every grocer and branded deli product vendor knows, exposed foods are especially vulnerable to contamination from salmonella, campylobacter and e-coli. According to Beth Driscoll, senior project manager, food safety and quality specialist at Guelph Food Technology Centre, the most important thing for grocers to know is how to train their staff to handle food safely. “Whether it’s cutting up vegetables for salads, cooking chickens, storing food in the back, managing correct hot and cold holding temperatures, or slicing meats or cheese, you have to make sure it’s done safely by employees who are trained properly.” The best way to ensure food safety is to prevent food from being contaminated in the first place. But once there’s a failure, quick and effective recall measures are needed to protect the public, as was demonstrated by the deadly outbreak of e-coli infected foods in Europe earlier this summer.

To address the need for greater harmonization between affected countries in situations like this, GS1, a global non-profit industry standards group, has developed a global protocol for product recalls. So far Australia and New Zealand have signed on to field test the program. “We support the GS1 initiative,” says Canadian Federation of Independent Grocers president John Scott. “Canadians already have an excellent mandatory recall system that’s one of the best in the world, and this is an enhancement.”

Deciding where to shop consumers will…

95%

54%

49%

66%

Read flyers

Price compare

Study the 420-page Canadian Retail Food Safety Manual. Recognized as the bible on the subject and applicable to all levels of the industry, it is published by CFIG, Agriculture and Agri-Food Canada. Call CFIG at 1-800-661-2344 to purchase it.

Check out the Frontline Online Learning Program series, at the Canadian Grocery Great HR Council website Grocery Resources (http://cghrc.ca) which also has an excellent program called “Safe Food Handling” that consists of seven courses. Each one takes 15 to 30 minutes to complete, providing a flexible, learner-driven training experience.

Target their list

On display WITH RETAIL READY PACKAGING by Jaan Koel

Most players in the food value chain agree on the main principles regarding sustainability. Retail ready packaging (RRP), however, is presenting unique challenges. RRP refers to containers and cardboard display packaging that simplify store set up. During recent years, more and more products are appearing in RRP units and it’s now more than a trend. RRP is clearly growing and here to stay, but not without controversy. Some retailers are for it, others aren’t. Some manufacturers want it, others don’t. Loblaws and Walmart are the main drivers in favour. They see RRP as a tool to improve operational performance from faster, easier shelf stocking, and increased product turns from stronger shelf presence. Other retailers, however, aren’t as enthused. Some would still have to break the RRP units apart and stock by hand because of limitations related to in-store logistics and shelf layouts. As for manufacturers, many of them see RRP as an added packaging cost they hesitantly absorb to

retain existing and potential new listings. In reply, retailers, who don’t want to pass these costs to shoppers, say manufacturers will make their investment back through increased turns. And for manufacturers that have the capabilities, RRP can be seen as a potential competitive advantage. “As the voice representing all manufacturers, we have to stay neutral on this issue,” says Food and Consumer Products Canada, senior vice-president, industry affairs, Lesley McKeever. “We’re trying to get retailers and manufacturers to collaborate and find common goals. We support the development of standards to eliminate one-off requests and increased costs, beginning with such things as 22-inch-deep shelves where feasible.” To make sense, RRP units need to be loaded two-deep so when the first one is empty, the second one can take over. Eventually, that would mean standard 11-inch RRP units for everybody. “It’s a start. We’re pleased there’s general agreement between retailers and manufacturers on this,” notes McKeever.

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“We support the development of standards to eliminate one-off requests and increased costs, beginning with such things as 22-inch-deep shelves where feasible.” Lesley McKeever, FCPC

Switch stores

Source: Nielsen PanelViews – Shopper Opinions Survey March 2011

Look who’s attending GIC: “I had a very positive experience. It opened the door for us with about 35 new stores – 20 stores started ordering right away! I would not have had the opportunity to meet these contacts without the tradeshow. I had a return for my investment right away and for the future.” Michael Walter – Stickling’s Speciality Bakery Ltd. Peterborough, Ont. Exhibitor

August | September 2011

Look who’s attending GIC: “CFIG got us plugged in to a stream of information and resources that has allowed us to move into a competitive place. We wouldn’t miss an event – there’s too much to learn and way too much to see.” David Stezenko – Quality Market Stores, Thunder Bay, Ont., retailer

August | September 2011

grocery goodness The grocery industry gives back in generous ways

T:10.875”

B:11.375”

When you choose Future Friendly products, you get to enjoy the product performance you love. That’s because each Future Friendly product is designed to help you use less energy, have less packaging or create less waste – all without sacrificing performance. It’s part of a belief that, together, we can take small steps that can make a difference.

[ corporate social responsibility ]

S:9.875”

SMALL STEPS HELP ME MAKE A DIFFERENCE.

“You don’t see them getting huge accolades for it, nor do they seek it,” said John Scott, president and CEO of the Canadian Federation of Independent Grocers (CFIG). But many in the grocery industry give back in a huge, but quiet way. Healthy living is one of the core values that grocers support. Take for example the Community Youth Challenge program created by Triple 4 Advertising in Saskatchewan. Triple 4 runs 520 Fine Foods and Express Foods stores—which are popular with youth—in northwest Ontario, Manitoba, Saskatchewan and Alberta. To encourage positive self-motivation among young people, Saskatchewan Roughriders football teammates visit host stores and schools in local communities. David Klatt, co-owner of Triple 4, said the players talk to kids about bullying, healthy

DISCOVER WHAT OTHER STEPS YOU CAN TAKE AT:

futurefriendlybrands.ca

active lifestyles, literacy, smoking, alcohol and drug abuse. Triple 4 underwrites it all—and offers two scholarships to help motivate teens. Hunger eradication is an issue that cuts to the heart of those in the food industry. As many as one in six children go hungry every day in the neediest communities across Canada—and their suffering is often invisible. Each year more than 800 Ontario grocery stores participate in The Grocery Foundation’s Toonies for Tummies program, asking customers to donate $2.00 at the checkout. All of the money goes to local communities to provide breakfasts and nutritious snacks for students. Since 1979, The Grocery Foundation has raised a whopping $75 million, helping to improve the lives of children in Ontario. The foundation’s must-attend

August | September 2011

Giving Back is in the Bag

industry event, A Night to Nurture Gala, alone raises $2 million every year, the foundation’s executive director Michelle Scott said. Funding this year went to Breakfast for Learning and Kids Help Phone. The number of Canadians using food banks each month—870,000—is rising by 28% from 2009, which is significant, says Katharine Schmidt, Food Banks Canada’s executive director. This year, Food Banks Canada leveraged $500,000 from mostly corporate cash donations to ship close to 15 million pounds of food across Canada using its National Food Sharing System, a distribution network comprising donated shipping services. Schmidt estimates the value

of that to be $18 to $20 million going to feed hungry Canadians. That’s some leveraging, thanks to the grocery industry supply chain. Supporting local communities tends to be the main focus of retailers. And even national companies prefer to donate to their stores’ local communities. For example, this year’s target for the Extra Helping food drive that Loblaw Companies Ltd. undertakes twice a year is to raise $1.2 million and 1.2 million pounds of food to areas local to their stores. Walmart Canada raised $23 million last year to support Children’s Miracle Network, Breakfast Clubs of Canada, Evergreen and Canadian Red Cross. Often tapping into

matching grants, Walmart’s store operators have “freedom within a framework” to leverage even greater funding for local programs, said John Lawrence, director of corporate social responsibility for Walmart Canada. “We live in such a prosperous country and have so much. It only makes sense for us to give back,” said Cathy Webster, senior director of human resources at Kraft Canada. Halos all around.

Nourishing the world Canadian grocers are now stocking Campbell Soup’s Nourish, the first complete, high-protein meal intentionally created to support food banks and help eradicate global hunger.

“So far there has been great participation from the retail chain,” Phil Donne, president, Campbell Soup Company of Canada told Grocery Business. “They are helping to heighten hunger awareness.” Launched in February with a commitment to donate 100,000 cans to food banks only, Campbell rolled out Nourish to the retail sector in May. Customers can purchase the soup for home consumption and to give to local

August | September 2011

food banks. Campbell intends to donate, for every can of Nourish sold, one can to food banks plus 25 cents to the World Food Programme (WFP), according to Donne. The WFP provides school meals to an average of 20 million children each year in 60 countries. The company has already donated 200,000 cans of Nourish. Participating grocers include (at press time): Co-op/Marketplace, Fairway Market, Longo’s, Overwaitea Food Group (Save-On-Foods, Overwaitea Foods, Cooper’s Foods, PriceSmart Foods), Safeway, and Sobey’s Inc. (Sobey’s, IGA, FreshCo.). The 425g pop-top cans have a shelf life of 24 months and sell between $2.49 and $2.59.

“End-to-end supply-chain cooperation has been great, including retailers,” Donne said about Nourish’s launch. Suppliers have donated cans, spices, and legumes, for example. Each can of Nourish is a complete meal, packed with fibre, vegetables, 18 grams of protein and 10 essential amino acids. Available in two varieties: Hearty Chicken Bean and Six Vegetable Grain, the soup can be eaten hot or at room temperature. Since it does not require additional water, it’s a good solution for food banks or disaster relief situations around the world. Of the 870,000 Canadians who use food banks every month, 38 per cent are children.

Brothers David and Dan Stezenko, owners of Quality Market in Thunder Bay, Ont., invite customers to visit and BYOB: Bring Your Own Bag. For every customer who does, the store donates ten cents to local charities. It’s an innovative annual program that so far has raised $21,000 and diverted more than a million plastic bags from landfill. “I really hated the thought of charging consumers for plastic bags,” David Stezenko told Grocery Business. When municipalities adopted policies aimed at banning the environmentally hazardous bags, he and Dan developed BYOB. Here’s how it works: Each customer who brings a bag is thanked by the cashier and given a wooden token at checkout. On the way out, the customers place the token in one of three slots, indicating the charity they choose to support. Last year, the program supported charities “near and dear to our hearts,” said David. These were Shelter House, An Eagles Cry, and Habitat for Humanity. Geoff Reynolds, volunteer and board member of the local Habitat for Humanity told Grocery Business that thanks to the Stezenko’s generosity, more Thunder Bay families will have land on which to build—a basic requirement of home ownership. “We know the only reason why we’re still here 22 years later is because the community has supported us,” Stezenko said. “Helping the environment at the same time? That’s just icing on the cake.”

Corporate Social Responsibility

The number of Canadians using food banks each month – 870,000 – has risen by 28% from 2009, which is significant, says Katharine Schmidt, Food Banks Canada’s executive director.

David (left) and Dan Stezenko, owners of Quality Market, Thunder Bay, Ont.

photos : B R A D S T E P H E N S O N

Corporate Social Responsibility

Give us our daily bread With little government funding, food banks across Canada rely heavily on corporate support. “We could not do what we do without the support of the grocery industry,” Canada Food Banks’ executive director Katharine Schmidt said. Started as a stopgap measure during the recession in the 1980s, food banks grew and lingered. Food banks were faced with growing demand and dwindling supply when in 1989 Arlene Kravitz’s uncle asked if, since she worked for Kraft Canada as an executive assistant, she could tell him “We could where to get food to feed not do what needy families in Montreal. She asked her boss. we do without

the support Kraft stepped up with of the grocery donations, diverting perfectly industry.” good food that, for one reason or another, wasn’t shelf-worthy. Through shrewd logistics management, the company found other ways to donate such skids to local food banks rather than ship goods with damaged packaging, for example, back to the plant or, worse, landfill. Spearheaded by Irene Rosenfeld, then president of the organization’s Canadian operations, Kraft shared their information and encouraged others in the industry to participate, earning the company— and Arlene Kravitz—many accolades for their efforts. More than 20 years later, Kravitz is on the front lines, feeding the hungry at Food Banks British Columbia. Rosenfeld is now Chairman and CEO of Kraft Foods Inc., in Northfield, Illinois. Kraft Canada continues their strong support of Food Banks Canada. The company donated $1 million to help the charity build new headquarters in Toronto.

August | September 2011

MSC

Our commitment

What is Sustainable Seafood?

• Janes Family Foods is a 42-year-old Canadian company committed to providing quality foods and to doing so with integrity.

• Seafood caught in a way that ensures the long-term CERTIFIED health and stability of ﬁsh SUSTAINABLE species and the marine SEAFOOD ecosystem. MSC

• At Janes, we practice environmental sustainability in as many ways as possible: 100% recyclable Green Choice 100 TM packaging. Committed to sourcing only sustainably wild caught fish and seafood. The first company to certify 100% of our entire retail line of wild fish products with the Marine Stewardship Council (MSC).

www.msc.org

What is the Marine Stewardship Council? • The Marine Stewardship Council (MSC) is a not-for-profit organization working to promote the sustainable harvesting of wild caught fish and seafood. They focus on reversing the global decline of fish stocks and ensure that MSC labelled seafood comes from, and can be traced back to, a sustainable fishery.

Look for this symbol

A Complete Line of MSC Certiﬁed Fish

PREMIUM BREADED HADDOCK

PREMIUM BATTERED HADDOCK

TAVERN BATTERED COD

Chipping in

photo courtesy the belinda stronach foundation

www.msc.org

Corporate Social Responsibility

Aid from food and consumer product firms in Canada reaches disasterstruck Haiti.

CERTIFIED SUSTAINABLE SEAFOOD

MSC

www.msc.org

Since 1933, the Food and Allied Industries annual golf tournament has brought together grocery retailers and food vendors for a day of camaraderie. “It’s still a huge event for entertaining customers,” said Rory Lesperance, senior vice-president, national sales for Canada Bread Ltd., and tournament committee chairman. It draws 500 participants each year. “Not just food industry people, but equipment, transportation, logistics, technology and packaging people, too.” Funds raised from the event to date—$190,000— supported The Grocery Foundation’s Toonies for Tummies program.

Disaster Relief

Canada’s food and consumer product manufacturers contribute significantly—more than $100 million—to charities, plus five million bags of groceries to food banks, in Canada. They are sentient about humanity’s need in other parts of the world, as well. When Haiti suffered a catastrophic earthquake in January 2010, the leaders of member firms with Food & Consumer Products of Canada (FPCP) asked, “Is there anything we can do to help?” “Twenty FCPC member companies were part of an effort through the Belinda Stronach Foundation that provided 500,000 pounds of medical supplies, food, and personal care products to the relief efforts in Haiti,” said Derek Nighbor, senior vice-president, public and regulatory affairs, FCPC. “I feel really proud of the fact that our organization was able to help and do it so quickly. But it’s not something we broadcast widely.”

Thanks to everyone who participated.

“Twenty FCPC member companies were part of an effort that provided 500,000 pounds of medical supplies, food, and personal care products to the relief efforts in Haiti,” said Derek Nighbor, senior vice-president, public and regulatory affairs, FCPC.

PUB STYLE FISH FILLETS

MULTIGRAIN BREADED HADDOCK

LEMON PEPPER COD

FILET OF SOLE

WILD SOCKEYE SALMON BURGERS

…helping you grow sustainably TO ORDER, CALL JANES CUSTOMER SERVICE 1-905-673-7145 ext 2229

Impromptu goodwill auctions at two different gala events during its annual Grocery Showcase West trade shows led the Canadian Federation of Independent Grocers to donate $50,000 for Canuck Place, a children’s hospice in Vancouver; and $35,000 for Breast Cancer Research, according to president John Scott. Four tons of food and consumer products also were donated to local food banks following each show.

P hoto : J erome K ashetsky

All for the good

Canuck Place families joined mascot ‘Fin’ and B.C. Premier Christy Clark during the lighting of the Olympic cauldron at Jack Poole Plaza in tribute to the Vancouver Canucks.

August | September 2011

BURNBRAE

FARMS CORPORATE SOCIAL

RESPONSIBILITY

ANIMAL WELFARE

About Burnbrae Farms’ Corporate Social Responsibility Initiatives Burnbrae Farms has been a Canadian CONSUMER HEALTH and family-owned and operated business since 1893. We have been producing AND NUTRITION shell eggs and innovative egg products for more than 60 years. As a conscientious member of both the local and global community, we aspire to achieve the highest standards in community support, environmental protection, animal welfare, and food and work place safety. The roots of this philosophy can be found in our Mission, Vision, Values statements on our website at www.burnbraefarms.com.

SUSTAINABLE EGG FARMING

Burnbrae Farms works to ensure people have affordable access to nourishing food from a consistent supply of quality eggs. Through our membership in the Center for Food Integrity and the Coalition for a Sustainable Egg Supply, we are working to better understand the impact and viability of various laying-hen housing systems on the environment, poultry worker health and a sustainable supply of eggs.

We are committed to encouraging healthy lifestyles. We market natural nutritious food products and have brought healthy innovations to Canadians such as Naturegg Omega 3 shell eggs and Egg Creations liquid egg products. We also work with a Registered Dietitian to develop resources to help educate health care professionals and consumers about current nutritional trends and healthy eating habits.

Our success depends on the good care and attention we give our hens. We follow or exceed all care guidelines from the Canadian Codes of Practice for Farm Animals and consistently pass audits from national and provincial poultry programs. We also invest in leading-edge scientific research in agricultural practices that lead to sustainable and environmentally sound farming.

ENVIRONMENT Margaret Hudson, President, Burnbrae Farms

At Burnbrae Farms, we recognize the importance of the environment and are committed to reducing our energy and fuel use, our water, chemical and solid waste generation, as well as increasing recycling diversion rates. We have several Free Run egg laying barns participating in the Bullfrog Power™ program. Bullfrog Power™ is committed to sourcing carbon-free power. We’ve also begun to create and restore wildlife corridors by planting trees on the original home farm operation.

FOOD SAFETY

Burnbrae Farms is committed to producing safe and nutritious products. We follow the HACCP (Hazard Analysis Critical Control Point) systematic approach to identify and control food safety hazards. As well, we follow the Start Clean, Stay Clean program for safe shell egg production in Canada. Our processing facilities are quality assured and subject to regular CFIA inspection and annual third-party audits.

COMMUNITY Burnbrae Farms believes in giving back to the communities in which we do business.. We support many local community programs as well as national and global charities. We’re proud to be supporters of both the Parkinson Society of Canada, the Alzheimer Society as well as Breakfast Clubs of Canada. Globally, Burnbrae Farms has been involved with projects to build hen houses for orphanages in Chausy, Belarus and with Free the Children in Sierra Leone.

Solar panels in Lyn, Ontario

Burnbrae Farms at opening of hen house in Chausy, Belarus

NESTLÉ PURINA CORPORATE

HELP FOR NEW PUPPY AND KITTEN OWNERS

RESPONSIBILITY

Nestlé Purina - A letter to the Industry Dear Industry Friends: At Nestlé Purina, we have a passion for pets. This is reflected in our product research and development, our commitment to quality and the support behind the products we are best known for, under brands like Purina ONE®, Beneful®, Dog Chow®, Cat Chow®, Fancy Feast® and Friskies® in pet food, and Maxx®/Maxx Scoop® in cat litter. Many of our employees have pets, and from first-hand experience, understand the joy and companionship these four legged friends bring into our lives. For all that our pets give to us, we believe they are deserving of a safe and loving home, and a happy and healthy life. Together, we share a Vision of creating a better world for pets through proper nutrition and care. To translate our vision into reality,Nestlé Purina is committed to programs that engage and educate the public to better understand and appreciate pets, as well as to help them become better pet owners through responsible pet ownership.We are particularly proud of our PawsWay Pet Discoviery Centre, located on the Harbourfront in Toronto. With exhibits, events, clubs, training programs, experts on-hand, even a pet-friendly café, hundreds of thousands of visitors have been coming through our doors since we opened in June 2008, often accompanied by canine companions. We have been fortunate to have had the support of many individuals and groups within the pet community, who share our Vision and have assisted us in delivering programming and activities that are attracting the crowds. Based on our success at the Centre we decided to expand PawsWay virtually last December, when we launched our

PawsWay.ca website, which is intended to encourage pet owners to “join the conversation” about the value of pets,and helped raise awareness of how pets enrich our lives. Every year we recognize the intelligence,bravery and courage of pets heroes who have saved human lives through our Purina Animal Hall of FameTM, and this exhibit now has a permanent home at PawsWay. Working with the breeder community, we have also introduced the public to dog shows and the various breeds of dogs throughThe Purina National®, which has been running annually the past 5 years.We are also the anchor sponsor of Woofstock, the largest street festival celebrating dogs in North America, which attracts dog lovers from across the continent.

We are pleased to provide support to the Ontario Veterinary College at the University of Guelph through the Nestlé Purina PetCare Canada Chair in Communications, which will investigate issues relevant to pet behaviour, overpopulation and abandonment. A few of our other community initiatives are described on the adjoining page, and we want to thank our retail customers for their support of these activities, and for helping us create a better world for pets.

Sincerely,

Karen Kuwahara, President Nestlé Purina

Did you know there are 1.2 million puppies and kittens acquired each year in Canada? Nestlé PurinaPetCareCanadahasdeveloped the MyPuppy® and MyKitten® programs, devoted to the journey of puppyhood and kittenhood, and getting the new addition off to the right start. These programs provide new pet owners with education, support, reassurance

and are the ultimate source for expert advice when acquiring and caring for a puppy or kitten. These programs introduce new pet owners to Purina and enable a lifetime engagement.New puppy and kitten owners are a wonderful opportunity for retailers as well, and Nestlé Purina is happy to help build these relationships.

PURINA® WALK FOR DOG GUIDES – 28 years and still going strong! Since 1983 Lions Foundation of Canada has provided specially trained dog guides to qualified individuals across Canada. Dog guides cost approximately $20,000 to raise and train, and are provided at no cost to qualified applicants. The Foundation trains five different types of dog guides: canine vision dog guides, hearing ear dog guides, special

skills dog guides, seizure response dog guides and autism assistance dog guides. Nestle Purina provided seed money to help the organization get started and has been feeding puppies in training from the beginning. To help raise the much needed funding for the dog guides, the annual Purina® Walk for Dog Guides is the Lions

Foundation’s major fund-raiser, with 100% of the donations collected going towards the cause. This is a national event held in over 200 communities across Canada, and celebrated its 26th anniversary this year. Since the start of the Purina® Walk for Dog Guides, millions of dollars have been raised through this annual event.

COMMUNITY IN-STORE SUPPORT Nestlé Purina’s continued commitment to environmental sustainability is reflected in-store through their ‘Paws For The Planet’ campaign.Through this promotion, Nestlé Purina supports Evergreen, a National charity dedicated to creating green spaces in cities. This promotion aims to unite pet owners & Nestlé Purina towards a common goal- Helping the Environment.

The Pawsway Pet Discovery Centre, PawsWay.ca

Nestlé Purina is also a sponsor of the Canadian Breast Cancer Foundation which, through Cat Chow® and Maxx Scoop® brands, raises funds for this worthy cause. Pets help cancer patients get through their ordeal with unconditional love and Nestlé Purina is doing its part to raise awareness and support to help fight this deadly disease.

Both of these programs are supported at retail through in-store displays, online microsites , banner ads, email blasts and out-of-store events. Along with the awareness and funds raised for the charities, these programs have driven higher sales for Nestlé Purina and its participating partners.

International: Eataly

EATALY

from left to right:

1. Wayfinding signage helps customers easily navigate the store’s shops and restaurants 2. Patrons enjoy espresso at the La Vazza Caffé 3. Wide aisles, elegant signage makes for an inviting shopping experience 4. Il Laboratorio della Mozzarella 5. Eataly storefront

A ll photos e x cept S torefront by E van S ung

[New York City: Madison Square Park on 23rd st.]

by Sandra McVeigh

A mecca for hardcore foodies, the Manhattan edition of Oscar Farinetti’s homage to the Slow Food movement is a temple of Italian delights

August | September 2011

It’s a lovely Saturday in May, and just half a block down from the iconic Chelsea Hotel and the original Chock Full o’ Nuts coffee house, the newest New York must-visit tourist attraction for die-hard food fans beckons in the early morning light. In the fashionable Flatiron district bounded by 23rd Street, the junction of Broadway and tony Fifth Ave., right across from Madison Square Park sits Eataly, a giant food temple for all that is glorious, fresh and Italian. The 50,000 sq.-ft.-building has entrances from all three sides. From 5th Ave., Caffé Lavazza serves up espresso, as some patrons read the New York Times, or converse to pass the time waiting for the main store to open. When it does, shoppers wander past pristine cabinets full of precious pastries and tiny desserts or fresh panini, all the while ogling the white wood shelving displaying exquisitely

packaged foodstuffs with the requisite price tag to match. Delicate jars of Moreno Cedroni pink grapefruit marmalade and Guido Gobino chocolate entice you to touch and wander further into the store. It is truly a Disneyland for foodies, chowhounds or gastronomes. Whatever they call themselves, the faithful flock like acolytes, devouring the landscape with their eyes. They snap pictures to remind themselves later of the overflowing abundance as they worship all that is fresh, savoury and divinely tasteful. Off 23rd Street, the entranceway displays shopping baskets and designer-slim carts made from recycled plastic with posters proclaiming that the only thing that’s frozen in Eataly is their gelato. Shoppers walk through the tiny produce department of about 1,000 sq. ft., past picture-perfect triptychs of morels, herbs and tender French radishes. There’s even a

“vegetable butcher” who’s ready to wash your produce purchases before you leave the store. But it’s the heady mix of food and eateries nestled cheek by jowl in this emporium that makes Eataly a true foodie destination. Four restaurants, La Piazza, La Pizza & Pasta, Il Pesce and Le Verdure are open seven days a week, with seats or places at counters available on a first-come, first-served basis. Manzo Ristorante, anchoring the centre of the store requires reservations, and is helmed by the former Babbo chef Michael Toscano. Even managing partner, and store manager, Alex Saper finds describing the store a bit of a conundrum. Is it a grocery store with restaurants? Or is it restaurants with a grocery store? “Essentially, it’s a place where you can buy, taste and learn about high quality Italian food. Both aspects are fundamental to the concept,” said Saper.

Chi mangia bene, vive bene Who eats well, lives well August | September 2011

International: Eataly

International: Eataly La Panetteria fills the store with the aroma of fresh-baked bread

1 Eataly has created food theatre and other grocers can, too. Some theatre can go a long way to sparking excitement and energy even in a small store. Ask manufacturers to work with you to create that drama and excitement in your store around Back to School, the Festive Season or May 24 occasions.

from left to right:

1. La Pizza 2. Customers can order select cuts of meat at Macelleria 3. Oscar Farinetti (left), Eataly founder and Iron Chef Mario Batali sampling the pizza at Eataly

But it’s easy to see that Saper is just as passionate about each aspect and about working there. “Working at Eataly is a foodie and Italophile’s dream –it’s truly a unique workplace. You’ll find artisans – some of our staff brew their own beer, or make their own cheese. Dozens of our staff are fluent in Italian, and so many are passionate about food, where it comes from and the people who produce it.” Saper says the revenue ratio for groceries and the restaurants is 50/50. Visitors to the store are a mix of tourists and locals. He says more than 12,000 people pass through Eataly on each weekend day. Quite cleverly, the restaurants are placed strategically throughout the sprawl of the main floor. Shoppers pass by the gigantic wheels of Parmesan cheese from Emilia-Romagno ripening close to the cheese counter, as the marble-topped cruiser tables of La Piazza wait for the early evening crush of grazers. Fresh seafood offerings are nearby to the Il Pesce seating. Here patrons can either take home an already trussed trout stuffed with lemon and herbs (a steal at $10.80), and bake it themselves for 20 minutes. Or they can have the restaurant do it for them for $23.00. In fact, the store is a labyrinth of exploration, with sections for pasta, olive oil, spices, beverages, condiments and about a bazillion kind of olives neatly tucked away in nooks and crannies, waiting patiently to be discovered. On a Saturday morning, the Caffé Lavazza was doing a booming business. And on Sunday night at 8:30, it’s standing room only. Patrons in La Piazza stand with glasses of Italian wine, and beer. They balance plates of wafer-thin slices of salumi and 40

August | September 2011

The Takeaway

prosciutto and chunks of cheese as they mill about in an impromptu cocktail party with what seems like the rest of the ’hood. And while some prefer to wander and marvel at the 70 per cent of products shipped in directly from Italy, others prefer to converse with the cheese maker almost elbow-deep in a vat of brine, fashioning bocconcini from mozzarella made in the Italian style using curd from upstate New York. Or maybe chat with the butcher about the Bensmiller Farm beef from Sigourney, Iowa or the Cobb chicken from the Burkholder, Zimmerman and Good Farms. Leaving the store, I dreamily envisioned a spacetime continuum where Eataly could be magically teleported to Toronto. One can only wait in hope that Oscar Farinetti, the mastermind behind the whole Eataly concept, will make good on his scouting trip to Toronto last March, and decide to create a little slice of Italia on this side of the U.S. border. Sandra McVeigh is a Toronto-based freelance writer and self-confessed foodie acolyte.

“Working at Eataly is a foodie and Italophile’s dream – it’s truly a unique workplace. You’ll find artisans – some of our staff brew their own beer, or make their own cheese. Dozens of our staff are fluent in Italian, and so many are passionate about food, where it comes from and the people who produce it.” – Alex Saper

How Eataly uses technology to engage the consumer

Why don’t you?

Invite a chef from a local, popular restaurant to demonstrate a favourite recipe using fresh produce and innovative ingredients that add excitement to a meal. The chef receives great exposure for their restaurant. And the store benefits from a lot of inexpensive razzle dazzle, all while supporting other local businesses.

Besides the fantastic products and crowded eateries, Eataly management has bought into the newest wave of store technology. A case in point is the high-end K-class counter top scales from Bizerba, a family of high-end PC-based scales that can run different video applications. Rob Weisz, director, retail systems for Bizerba North America, says Eataly liked the sleek design of the K-class scale and the white colour. “From a technology standpoint, they were one of the first in North America

to put the K–class scale in a store,” says Weisz. The colour video display on the front of the scale does so much more than tell a customer how much the mortadella is going to cost. “It can advertise and link products to the store’s cross-merchandising schemes,” adds Weisz. It can provide suggestive selling techniques for the operator to engage the customer further, getting them to enquire about recipes. “If you give them recipes, they basically have their shopping list. There are not too many points in the store that you can have this active engagement with your customers. If you have the customer at the fish counter or meat counter, you really have an opportunity for up-sale. It’s too late to do that at the check-out counter.”

2 Eataly cleverly tucks things away creating a treasure hunt for the consumer. Change up the product mix in creative ways. Customers will marvel at all the new discoveries they are making each weekly visit. 3 The right injection of specialty products can add tone and texture to the store. They can also significantly boost margins. Specialty products, like high-end jams, crackers, and cheeses will often sell better if demonstrated. Create a little magic and watch the jars disappear off the shelves.

Left: Venchi— a confectioners’ dream Right: Reservations are required for Eataly’s popular restaurants

August | September 2011

Shopper Marketing Solutions:

Ethnic Food: Diwali

Sales soar during Diwali celebration week

August | September 2011

For Canada’s 1.3 million South Asians, Diwali, also known as the “Festival of Lights,” is an important five-day celebration for Hindus, Jains, Sikhs, and some Buddhists. For these religions, Diwali is the celebration of the triumph of good over evil. Falling as it does for a week between Canadian Thanksgiving and Christmas – this year’s date is October 26th – it’s the perfect opportunity for

Recipe for Success Melissa Martin

If you want to connect grocers to tap into the celebratory mood of the South Asian community. Sales of Indian food spike dramatically at this time of year, so why not create in-store displays to encourage even mainstream consumers to participate. It could boost your store’s sales, too. During Diwali celebrants light small clay lamps, set off fireworks, and give sweets and snacks as gifts to family and friends. Some typical desserts include: hh Barfi: This special sweet is made of milk and sugar, garnished with cardamom and pistachios hh Jalebi: made of sugar and besan (gram flour) hh Ras Malai: dumplings made from cottage or ricotta cheese, soaked in sweetened, thickened milk, and delicately flavoured with cardamom hh Kaju Katli: A soft diamond-shaped sweet made from freshly ground cashews. Food is an important part of the Diwali celebration. A typical Tips 1. Cross merchandise Indian meal consists chutneys and pickles of pakoras (battered with naan bread or and fried vegetables), pappadums in the paneer (a type of bakery and condiment cheese), dal (spiced sections to create excitement. lentils), three to five vegetable dishes, 2. Indian spices and such as Aloo Gobhi pastes make great rubs and marinades. Place (spiced cauliflower), them in the meat – and and one or two meat seafood – sections, too. dishes, such as Lamb 3. Whip up a batch of Roghan Josh or Diwali treats and Chicken Tikka Masala. demonstrate them in These are all served both your dairy and with rice, naan bread, baking sections. Provide and/or pappadums, recipes to customers. enjoyed with a 4. Bring together all the variety of chutneys ingredients for a and pickles. fabulous Diwali meal and put them on display, Invite the community along with candles and to participate in tea lights. Diwali and enjoy.

Other successful programs include

with the people who consume your

“Reinvent Your Menu”, “Made in Quebec”,

brands, the retail environment arguably

and “Get in Touch with Summer Fun.”

offers the greatest reach,” says Melissa

The Made in Quebec program was so

Martin, who, with colleague Steve

successful the Senior Director of Merchan-

McGraw, has spearhead Kraft Canada’s

dizing & Operations of the participating

successful Shopper Marketing initiatives—

Canadian retailer said he had “never seen

Customer and Shopper Marketing (CSM)

such a high degree of enthusiasm from

and Customer and Shopper Insights

store managers and display compliance in

(CSI)—for the past four years.

the Quebec market until now.”

Melissa Martin, Director of Kraft’s

Key to Kraft’s continued leadership

Customer & Shopper Marketing group, has

in Shopper Marketing is the innovative

been a key contributor to many award-

approach it takes to providing the

winning brand launches and consumer

tools retailers need to drive sales and

initiatives. Her team, which regularly

foster stronger store and brand loyalty

earns Top Tier Advantage Study status,

among shoppers.

executes more than 300 customized

Steve McGraw

It starts with the two key Shopper

retailer programs a year. Steve McGraw,

Marketing Groups at Kraft: CSM and CSI.

Director of Kraft’s Customer & Shopper

Together, their mission is to be “the

Insights group, was recently named to the

indispensable partner of choice who

Shopper Marketing’s 2010 list of “Who’s

inspires and evolves the shopping

Who in Shopper Insight,” a list of more

experience,” explains Steve McGraw,

than 90 executives recognized for their

describing Kraft’s vision.

insights and contributions to successful Shopper Marketing initiatives. Together, these two leaders and their

A History of Shopper Marketing Success

teams of more than 60 industry profes-

Kraft Foods is truly a leader in the Shopper

sionals have carved a reputation for their

Marketing field. Its participation in

innovative and highly successful retail

innovative marketing approaches dates

initiatives. One such marketing program

back to the 1980s when the concept

is Kraft Hockeyville, a Gemini award-win-

was still in its infancy. Kraft has harnessed

ning campaign. “70% of shoppers sighted

its years of experience and in depth

a much better sentiment towards their

shopper insight in Shopper Marketing and

store and Kraft, influencing them to shop

today is considered a leader in the field.

at their local store more often and buy Kraft every time,” says Melissa Martin.

Definition Shopper marketing is the use of insights-driven marketing and merchandising initiatives to satisfy the needs of targeted shoppers enhance the shopping experience for the consumer and improve business results. – THE RETAIL COMMISSION OF SHOPPER MARKETING

August | September 2011

A Shopper-Focused Vision Kraft’s vision is simple: to collaborate with retailers to help drive sales and store growth and enhance shoppers’ experience. Kraft’s leadership in Shopper Marketing is attributed, in part, to its Shopper Activation Pathway, which identifies the steps Kraft, working in collaboration with retailers, implements. A good example to illustrate Shopper Activation Pathway is Kraft’s Café Breakfast Solutions program.

REINVENT YOUR MENU is a sustainable program, now in its 9th year running with a Canadian retailer. This program continues to deliver unparalleled merchandising, strong consumption increases year over year, and strong value for the shopper. For Spring 2011, shoppers were able to Save up to $6 on their favourite cheese or cracker products, and by texting “cheesy” to 71717, they could get “Reinvent your Menu” recipes sent directly to their smart phones.

Q&A SALES REP: Geoff Tessier LOCATION: St. John’s and Conception Bay North areas, Newfoundland SERVICE: 21 years with Kraft

SALES REP: Stephanie Cooper LOCATION: Montreal, Quebec SERVICE: 1 year with Kraft SALES REP: Brian Cooper Service: 18 years with Kraft Location: Trenton Ont. and Area

Summer Produce Cross-Merchandising Program

August | September 2011

a) How does a strong portfolio of brands help in executing a successful Shopper Marketing program? GEOFF: Brands provide instant value through brand equity, combined with superior execution at the retail level, drives sales. STEPHANIE: A variety of brands attracts different customers, creating more traffic in the store and resulting in additional purchases. BRIAN: Successful shopper marketing delivers excitement through the store tied with our strong brands and POS. b) How effective is retailer specific POS in driving sales? GEOFF: Very effective. Independents especially appreciate it as it gives them a point of difference versus larger retailers. STEPHANIE: Attractive POS draws the consumers’ attention and stimulates impulse buying. Retailers appreciate what Kraft can offer because we generate higher profits by driving shoppers to their store.

GET IN TOUCH WITH SUMMER FUN is an innovative program where shoppers were able to text a short code or scan a QR code to get regionally specific family summer activities ideas, recipes, product offers and savings. Offers were aimed at driving shoppers to the store, building basket and linking Canadian retailer’s new products. This is relevant to our retailers as mobile usage continues to rise in Canada, affecting the way in which shoppers make their purchase decisions.

BRIAN: The retailer specific POS places their

customized stamp on the promotion so that shoppers equate that retailer with quality and value. c) Do you work with the retailer to identify the opportunity or is the insight driven primarily by the research? GEOFF: Shopper marketing is primarily driven by research. Sales reps provide input into this process. STEPHANIE: We work with the retailer and use our fact-based info to identify in-store opportunities and and win-win solutions. BRIAN: Superior insights help the retailer with volume stock control and most importantly, sales. d) How important is collaboration between vendor and retailer in a shopper marketing program? GEOFF: If the retailer is part of the decision making process, he feels more committed to ensuring successful execution. STEPHANIE: Communication is key to a good collaboration. BRIAN: Shopper Marketing success occurs when the vendor and retailer believe in the program and the benefits it creates throughout the store. The shopper is always in the centre of the discussion on how we customize excitement with the retailer.

» Identify the retail opportunity (Encouraging shoppers to trade up to more profitable basket building brands). » Harness insight through in-house and customer-specific research (Shoppers seeking café experience in-store linking to the breakfast occasion). » Customize solutions (Cross merchandised shelf stable and refrigerated breakfast offerings in the coffee aisle, supported with a recipe booklet and adding lighting and wood detailing similar to a café). » Impactful Activation (increased coffee sales in all segments of the category).

» 17% of Canadians access the web via mobile daily (Ipsos 2009) » 37% of all Canadian Adults SMS on a weekly basis (Ipsos 2009) » Nielsen predicts Smartphones to overtake feature cell phones by end of 2011

Enhancing the shopping experience – Steve Sharpe, Sharpe’s Food Market, Campbellford, ON As an independent, Sharpe’s Food Market in Campbellford, Ont., strives to differentiate itself from local competitors. Steve Sharpe, whose father opened the business in 1963, says that embracing Shopper Marketing programs presents opportunities to enhance customers’ shopping experiences. “Our catch phrase is ‘Fresh Thinking’ and it’s not just about fresh products, but a fresh way of doing things. So we appreciate it when companies like Kraft do the same thing. A lot of Kraft’s programs include multiple purchases and Kraft does an excellent job with cross merchandising because it has such a broad range of products.

When you can tie categories together in promotions it gets customers moving all over the store.” Kraft Hockeyville was a good example. Sharpe attributes part of the success of the Kraft Shopper Marketing programs to their sales reps. “One thing Kraft does that the industry seems to be getting away from is having knowledgeable reps on the road and Kraft probably has the most knowledgeable. Our Kraft rep works closely with our buyer, our marketing person and merchandisers to help with displays and execute programs. This has proven to be a very powerful advantage for us”.

Being “in the game” with Shopper Marketing – Dave Stezenko from Quality Market in Thunder Bay, ON Kraft’s Shopper Marketing program for independents is a “unique program” that provides grocery stores with a powerful tool in a competitive marketplace, says David Stezenko, who co-owns Thunder Bay, Ont., Quality Market grocery store with brother Dan.

He attributes much of the success of Kraft’s Shopper Marketing programs to the sales rep. “He communicates opportunities using shopper insights, helps to build the plan using SKU analysis and then builds the displays with our grocery manager. This is helpful and unbiased information.”

August | September 2011

EVERYTHING YOU NEED Networking Sourcing Awards Speakers Entertainment Retailers Sales Networking Sourcing Awards Speakers Entertainment GIC 2011

1:00 PM

The Canadian Federation of Independent Grocers is proud to present Grocery Innovations Canada 2011: The Meeting Place of the Canadian Grocery Industry.

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Retailers Sales Networking Sourcing

Grocery Innovations Canada is the only event in Canada dedicated to the entire grocery industry. It is the premier national event in grocery retailing and the largest one of its kind in Canada.

Awards Speakers Entertainment Retailers Sales Networking Sourcing Awards Speakers TORONTO CONGRESS CENTRE OCT. 25 & 26 Entertainment Retailers Sales Networking Sourcing Awards Speakers Entertainment

Visit www.groceryinnovations.com for more information.

Retailers Sales Networking Sourcing Awards

Speakers Entertainment Retailers Sales A D A N A C S N GROCERY INNOVS ACETNIOTRE OCT 24 & 25 Networking NTO CONGRES Awards Speakers TOROSourcing Entertainment Retailers Sales Networking Sourcing Awards Speakers Entertainment

Retailers Sales Networking Sourcing

highlights oct 24 & 25, 2011 Andrew Coyne, national editor, Macleanâ&#x20AC;&#x2122;s gives the keynote speech

Join friends and colleagues Opening Night at the reception with The Fab Four Independent Grocer of the Year Awards

Check out the Canadian Best Bagger Contest

Vote for the Top Ten Most Innovative Products and you could win a 2012 Ford Mustang convertible!

GROCERY INNOVATIONS CANADA THE MEETING PLACE OF THE CANADIAN GROCERY INDUSTRY August | September 2011

program at-a-glance

Westin Bristol Place Toronto Airport Hotel

conference tuesday, october 25

Toronto Congress Centre

7:15 a.m.

Networking Breakfast Industry Perspective John Scott, CFIG president

7:15 a.m.

Breakfast Speaker Session Retail Expert Harold Lloyd

8:30 a.m.

Keynote Presentation Andrew Coyne, National Editor, Maclean’s magazine

8:30 a.m.

International Retailer Series Drake Supermarkets of Torrensville, South Australia We Give You More

9:15 a.m.

International Retailer Series Heinen’s of Cleveland, OH Serving Clevelanders for More Than 80 Years

9:15 a.m.

Conference Session Amber MacArthur New Media Author, Strategist and TV Host

10:30 a.m.

Conference Session Douglas Stephens President, Retail Profit Consulting

10:30 a.m.

International Retailer Series “Local Perspective” Longo Brothers Fruit Markets of Vaughan, Ont. A Fresh Tradition

Luncheon of Honour (Open to Full Delegates Only)

trade show october 24 & 25

11:15 a.m.

Panel Presentation A Global Perspective on Independent Grocery Retailing Heinen’s, Cleveland, OH Drake Supermarkets, Torrensville, SA Longo’s, Vaughan, Ont.

evening events

12:00 NOON to 5:00 P.M. – Toronto Congress Centre

“Vote for the Annual Top 10 Most Innovative Products” Don’t forget to drop off your ballot at the CFIG Member Centre for your chance to win a Ford Mustang Convertible! Featuring: Ethnic Fare Pavilion First-Time Exhibitors Pavilion NEW!! Wellness 2.0: A Functional Foods Opportunities Pavilion 7th Annual Canadian Best Bagger Contest 2nd Annual Top 10 Most Innovative Products Contest

August | September 2011

Growing at an energetic clip of up to 20%, sales of functional foods are outpacing the 1% to 4% growth expected for the overall grocery industry, according to PriceWaterhouseCoopers.

3:30 p.m. CFIG Annual General Meeting (For CFIG Members Only)

conference monday, october 24

11:30 a.m.

Wellness 2.0 – A new look at functional food

conference sunday, october 23

Sunday, October 23 at 6:30 p.m.

Health-conscious consumers are driving demand for products that aim to promote better health, increase longevity and prevent the onset of chronic diseases. What is a functional food? Any food can be considered functional if it is comprised of, or fortified with, nutritional disease-preventing qualities, and whose key nutrients go beyond standard dietary needs by delivering specific and targeted health benefits.

Join us at the Grocery Innovations Canada 2011 Dinner Party with The Fab Four, from Beverly Hills, CA Tuesday, October 25 at 6:00 p.m.

Come out for a night of honours and esteemed recognition. The 49th Annual Canadian Independent Grocer of the Year Awards is the signature event of the year.

Probiotics, pre-biotics, omega-3 fatty acids, phytonutrients, are all examples of the nutraceuticals contained in functional foods. Almost all of the major food manufacturers now offer these nutritionally enhanced products. Wellness 2.0 – a new pavilion at Grocery Innovations Canada – aims to bring you the best of the functional food suppliers, including major national brands and the niche producers of just one or two remarkable products.

retailers – you could drive away a winner! 1

Get a ballot when you register.

Deposit your ballot at the CFIG Member Centre by 4:00pm on October 24.

The winner of the key will be announced at the dinner on Monday, and notified.

MOST INNOVATIVE PRODUCT BALLOT

Try the key on stage on Tuesday. If the car starts, you could win a Ford Mustang Convertible!

TIPS FROM A TWO-TIME BEST BAGGER!

1 BUILD SIDES WITH ANY ITEM, EXCEPT FOR CRUSHABLE ITEMS. PLACE CRUSHABLE ITEMS IN A SEPARATE BAG.

THE SACK BY UTILIZING EVERY AVAILABLE SPACE. PLACING ITEMS ON THEIR SIDES WILL LESSEN CAPACITY AND CREATE A LIGHTER BAG.

Visit the Grocery Innovations Canada trade show floor Monday, October 24th, starting at noon.

3 7

Michelle Souza, Longo Bros. Fruit Markets.

2 FILL OUT THE BOTTOM OF

All you have to do is:

Grocery Innovations Canada Launch Party (Open to ALL Attendees and Exhibitors) Monday, October 24 at 6:00 p.m.

These supplements – often called nutraceuticals – are derived from natural foods and can be added to other foods.

Fill out your ballot for your choice of most innovative product.

And drive away a winner!

3 TO INCREASE ITEM COUNT, PLACE LIGHTER ITEMS (NO CANS, GLASS, HEAVYWEIGHTED ITEMS, JARS, ETC.) ON TOP OF THE BOTTOM LAYER.

August | September 2011

Congratulations to the recipients of the 18th annual Canadian Grand Prix New Product Awards

Every day, customers shop grocery store shelves for new products that will become old favourites. The Canadian Grand Prix New Product Award program recognizes the best of these innovative products brought to market in the last year. “Innovation is the lifeblood of our industry,” said David Wilkes, senior vice-president, grocery division, Retail Council of Canada. This year, Wilkes says, it’s been inspiring to see “the creativeness and responsiveness to the Canadian consumer. We’ve seen some really cool innovative products, which has always been the hallmark of the program. The Grand Prix awards celebrate that success.” In its 18th year, the awards program undertakes the evaluation of food and consumer goods across 26 categories, plus

five special awards. Each entry is graded on: hh uniqueness and innovation; hh product characteristics hh presentation and packaging hh overall consumer value; and hh consumer acceptance (the penetration of the product in consumer households). The long-running award program was initiated by the Canadian Council of Grocery Distributors and is now operated by the Retail Council of Canada. A 32-member jury including consumers, food editors, journalists, advertising executives, packaging designers, and members of the grocery industry evaluated entries. Award winners were announced at a gala event in June. Presenting, the 2010 Canadian Grand Prix New Product Award recipients.

August | September 2011

SPECIAL AWARDS

18th annual Canadian Grand Prix New Product Awards

Food

18th annual Canadian Grand Prix New Product Awards

Beverages

Smucker Foods of Canada Folgers Black Silk Coffee

Healthy Innovation

Fontaine Santé Foods Humm! Hummus Cocktail

Baking Needs

Unilever Canada Becel Pro-activ

Innovative Packaging

Confectionery

Kraft Canada Inc Cadbury Trident Layers

Method Products Method Laundry Detergent

Adam Zitney, Stephen Kouri – Smucker Foods of Canada

Wally Reveiz, Sandy Bobrovskis – Fontaine Santé Foods

Sharon Macleod, Anne Walsh, Ashley James – Unilever Canada

Mimi Lam, Amanda Chan – Kraft Canada, Confectionery

Dawson Marshall – Method Products Inc.

Consumer Acceptance Canada Bread Company Dempster’s Smart White with 16 Whole Grains

Bakery

Canada Bread Company Dempster’s Oven Fresh Bread

Condiments and Sauces

Kraft Canada Inc Kraft Whipped Peanut Butter and Dip

Dairy

La Fromagerie 1860 du Village Inc. Mini Hors-D’Oeuvre

All Canadian Product AND

Innovation and Originality

La Fromagerie 1860 du Village Inc. Mini Hors-D’oeuvre

K.C. Sheridan – Canada Bread

Ashley Bast – Canada Bread Christopher Bell – Kraft Canada Inc

August | September 2011

FOOD

18th annual Canadian Grand Prix New Product Awards

Deli, Egg, Meat and Seafood

NON-FOOD

18th annual Canadian Grand Prix New Product Awards

Paper, Plastic and Foil

Maple Leaf Maple Leaf Natural Selections Deli Meats

Solo Cup Canada Solo Squared Plates and Bowls

Snack

In Foods In Snax Pita Crisps

Cheria Kyres – In Foods Inc.

Brendan MacNeil, Claire McRonald, Kevin Lake, David Grachnik, Andrew Pollack, Kurt Whitnall, Katie Atkins, Colin Farnum – Maple Leaf Foods

Shelf Stable Prepared Food and Entrees

Innovative Packaging

Method Products Method Laundry Detergent

Unilever Canada Knorr Homestyle Stock

Hector Hofilena, Brad Manning, David Niles – Solo Cup Canada

Baby Care

Health Care

Procter & Gamble Pampers with Dry Max

Frozen or Refrigerated Prepared Food and Entrees Gardein Protein International – Gardein beefless tips and crispy tenders

Bernardin Ltd. – Bernardin Home Canning Starter Kit

Jim Rotz – Jarden Branded Consumables Canada

Dawson Marshall – Method Products Inc.

Sharon Macleod, Anne Walsh – Unilever Canada

General Merchandise

Fruits, Vegetables and Produce

Smucker Foods of Canada – Europe’s Best Antioxidant Fruit Blend

GlaxoSmithKline Consumer Health Care – Sensodyne Iso-Active Toothpaste

Dessert

Lebel Foods – Probiotic Frozen Yogurt Mini Cone

Pet Needs

Mars Canada – Natural Defense Joint Health Premium Snacks for Adult Dogs

Zeeshan Shams – Procter & Gamble

Personal Care Kimberly-Clark U by Kotex

Patrick Eberth – Lebel Foods Inc. Ihab Leheta – Gardein International

Mary Ann Kim, Stephen Kouri, Stephanie Gibbons, Trina Farr – Smucker Foods of Canada

August | September 2011

Vicki Thompson, Charles Azim – Mars Canada

Brian Richardson – Kimberly-Clark Inc.

August | September 2011

Offer SELF SERVICE A convience that is EASY EFFICIENT ACCURATE

private label

Merchandising Tips For A Beverages

Metro Richelieu – Irresistibles Life Smart Nutrient Enhanced Water Beverage

BIZERBA - K CLASS scale systems.

Confectionery, Snack and Dessert

Canada Safeway – Safeway Select Artisan Supreme Cheesecake Sampler

Non-Food

Canada Safeway Safeway Microban Reusable Shopping Bag Martin Turcotte, Marie-France Gibson, Pierre Charron, Francis Coumoyer – Metro Corporate Brands

Bizerba K class Touchscreen scales

Merchandising: Halloween

18th annual

Canadian Grand Prix New Product Awards

Bakery

Sobeys – Compliments Balance Crusty Breads

SPOOKTACULAR Halloween Season Halloween merchandising will convert your store to a seasonal destination; help make it easy for shoppers to find what they are looking for and increase your basket size!

Tip #1 Allocate the right amount of space based on percentage of Halloween sales each category generates.

Prepared Food and Entrees

Canada Safeway O Organic Fresh Soup

Chocolate Candy

66%

23%

Salty Snacks

10%

Gum

Tip #2 Dairy, Eggs, Meat and Seafood

Canada Safeway – Waterfront Bistro Frozen Fish Fillet

Within each category, it’s important to allocate space based on volume within each size format and then by manufacturer within the format. CHOCOLATE X-Large Large Medium Small All others

Suzanne Gagnon – Sobeys Inc.

39% 27% 21%

7% 6%

CANDY

... Ideas ... Change the World

X-Large Large Medium Small

Condiments and Sauces

62% 23% 11%

Metro Richelieu – Selection Marinade Shish Taouk and Shawarma

SALTY SNACKS Large

Medium

32% 30%

Bizerba North America In Canada: Tel. 905 816 0498 Fax. 905 816 0497 E-mail. sales @ Bizerba.ca www.bizerba-na.com

Bill Sexsmith, Dave Pullar – Canada Safeway Ltd.

Martin Turcotte, Marie-France Gibson, Pierre Charron, Francis Coumoyer – Metro Corporate Brands

Small

All others

36% 2%

Maria Dileo, Channel, Category Sales Development Champion, Seasonal Confectionery Lead Nestlé Canada

Tip #3 Enhance the shopping experience by converting browsers to shoppers using POS material that will attract, guide and influence your shoppers. It’s important to use strong colours associated with the season, i.e., orange and black. HOW TO ATTRACT YOUR CUSTOMERS Your seasonal display should be placed in an area that has the highest traffic, ideally close to the entrance, in the first 15 feet of the store or at the back of the store. Make the area look festive by incorporating Halloween-themed decorations and POS. This can be further amplified by creating retail theatre. Themed items that you can use include: hh inflatables hh floor graphics hh over-head signage hh grocery cart ads The key is to highlight the assortment and potentially play up the value that is important to the shopper, i.e., “Everything Halloween ... for frighteningly less.”

that you are selling, as well as the size formats that are available. Food categories: hh Vertically merchandise/block first by category: chocolate (red), candy (purple), gum (grey) and chips (green) hh Vertically merchandise/block second by size: XL, L, M, S. hh Merchandise/block third by manufacturer (within the size). HOW TO INFLUENCE YOUR CUSTOMERS Have the right SKU assortment and mix. Educational POS is also useful to remind shoppers when Halloween falls during the week. Other influencers that can be used include: shelf talkers, tear pads, wobblers and danglers. These can communicate peanut-free, recipe ideas, discounts, promotional messages or value adds.

HOW TO GUIDE YOUR CUSTOMERS Use in-aisle and shelf signage to direct shoppers to the Halloween section. Clear segmentation using colour-coded in-aisle blades and shelf strips will help identify the various Halloween categories

Did you know? hh The top 25 Halloween SKUs drive 77% of total Halloween sales. hh 56% of chocolate sales are peanut-free. hh Assorted packs drive 75% of total sales. The top 10 SKUs are assorted.

Tip #4 Use the same festive motif throughout the store. Cross merchandise high adjacency categories, i.e., treat-size chocolate with Halloween movies, writing Instruments, lunch kits, boxes, and fruit beverages.

August | September 2011

Profile

photo : C hristopher S cott

CFIG expands its membership base

We talk to John Scott about the Canadian Federation of Independent Grocers’ new distribution council.

John F.T. Scott, president and CEO, Canadian Federation of Independent Grocers

It came as a surprise to many in the industry when the Canadian Council of Grocery Distributors (CCGD) ceased operations at the end of February. Since then, four former CCGD members decided to join the Canadian Federation of Independent Grocers (CFIG). CFIG represents privately held grocers in Canada ranging from single-store operators to large, multi-store companies.

Q: Why did these organizations choose to join CFIG? “When the membership of CCGD decided to dissolve their association, it left a number of companies without a grocery-dedicated, experienced advocate. We offered both that and the unique opportunity to build great industry relationships with like-minded retailers,” he said. “I know that each company carefully considered their alternatives and we were thrilled that they chose to approach us.” Scott noted that only privately held companies can join CFIG. Some of CCGD’s publicly-owned members approached the Retail Council of Canada about membership.

August | September 2011

The new members are: hh Co-op Atlantic, Moncton, N.B.; hh Federated Co-op, Saskatoon, Sask.; hh H.Y. Louie Co. Ltd., Burnaby, B.C.; and hh Wallace and Carey Inc., Calgary, Alta. These additions move CFIG even further into the distribution side of the industry. We asked John Scott, CFIG’s president and C.E.O., about the impact on the organization.

Q: Is the new emphasis on distribution a challenge? “It’s a valuable extension of what we offer,” says Scott. “We’ve always been at the table on matters of industry governance but we have been less active on those focusing purely on distribution. I’m confident that we are familiar and competent with the key issues. But I must admit, to be more effective, we will need to augment our capabilities. You can look at it as a strong, healthy kick towards an area we should have been pursing with greater veracity.” In fact, he notes, “There are more existing members of CFIG that fall into the distribution category than there are new members joining us.” The organization will maintain retail as its focus. “We’ll continue to grow our demonstrated and respected capabilities in retail where we know we are very good. Our advocacy and program areas are both exceptional – in fact some of the new members have already profited from that.”

Q: How will the organization change in response? “CFIG operates through committees and share groups,” explains Scott. “Non-competing retailers now meet a couple of times a year to share experiences and discuss issues of relevance to them. What is very exciting is that some of our larger existing members, together with the new companies, have come together to form a distribution council. “That council will meet a couple of times a year, both face-to-face and by conference call, to work on common, nonproprietary problems and opportunities in distribution,” he says. “The council will help us identify and take action in areas that require attention. There are a myriad of topics that come into this realm including transportation or warehouse logistics to name just two.”

Q: Will the expanded mandate affect advocacy activities? “We have a very good reputation, both provincially and federally,” says Scott. The expansion in mandate and numbers “will definitely make our voice stronger.” “The change has had some unanticipated consequences,” he says. “For one thing, we have a much higher profile than we did before, and we’re doing a lot more media interviews.” Q: What operational changes will CFIG make? “Like all organizations CFIG must evolve with the times. Our first adjustment was to strengthen our member services and we have brought in a dynamic person to be our new director of member resources. We’ll be looking at more adaptations in the months ahead. Like John Harvie (former CEO of Co-op Atlantic ) said: ‘We need to give this new entity some time to breathe.’”

Q: Were the current members concerned about the changes? “Our board was solid, “That’s a great question! CFIG members and in terms of what staff are very proud of our culture. We are we could and could confident of who we are, what not do and what we we are, and what we offer,” says Scott. could and would “The new companies are large but we’ve had not accept. It creates experience integrating even larger players, a lot of confidence Q: What other changes do you foresee? such as Overwaitea Food Group, which we “We’ll cooperate with the manufacturing absorbed several years ago and that has been when you know community more than we have in the past, a happy and valued marriage. We know the all of that before the so I expect our relationship with FCPC (Food process to follow and have learned how to phone rings.” and Consumer Products of Canada), the minimize the impact on our members.” manufacturers’ trade association, to become So at this point the larger group has closer,” says Scott. created a lot of curiosity but no real concern, says Scott. “Our membership wasn’t worried Q: Are you pleased with the progress to date? about it. They just wanted to make sure that we would “We’re very pleased with the integration, to this point,” says absorb the new members in the right way.” Scott. “We’ve heard nothing but positives from our members. I’m looking forward to Grocery Innovations Canada in Q: What process did you follow? October where everyone will get to know each other. I think “There was a lot of discussion, before any of these companies that’s really exciting. approached us. Our board met in January for a day and we had “In the interim, the CFIG management group has now met a facilitator in to talk about how it would work. We looked with the new members individually to make sure we know at questions such as what CFIG is, how that might change and each other in the early stages,” he explains. “We have taken our we did, I admit, talk a lot about the impact on our culture.” time with this. The group came to consensus. “Our board was solid, in terms “The dissolution of CCGD was unanticipated, but the industry of what we could and could not do and what we would and would not accept. It creates a lot of confidence when you know must move on. Together with all of our members we’re looking forward to building a much stronger CFIG.” all of that before the phone rings.”

August | September 2011

Collaboration: UGI

Kevin Perron, business team leader, General Mills Canada

Speed to market

Teamwork builds profits for UGI members and suppliers

General Mills Canada identified an eightweek window as crucial to the launch of several new products. Believing that new products are most successful in the long term if they get early distribution and display, General Mills approached UGI to collaborate on a program that would speed to market several snacks and cereals, says Kevin Perron, business team leader at General Mills, Toronto.

Collaboration means win-win-win

In a market characterized by intense competition, retail members of United Grocers Inc. (UGI) boost sales and profits through supplier partnerships. “The supplier programs are examples of how a group [of grocers] can work in collaboration with the manufacturers to deliver positive sales, positive profits, and positive growth for mutual benefit—and the benefit of the consumer,” explains Mike Marinangeli, president of UGI, which is headquartered in Mississauga, Ont. UGI is comprised of nine prominent Canadian grocery retailers operating across every province in Canada. They are: 1. 2. 3. 4. 5.

Overwaitea H.Y. Louie Canada Safeway Federated Co-operatives The North West Co.

6. 7. 8. 9.

Longo Bros. Metro Richelieu Co-op Atlantic Focenco (Coleman’s)

Since 1972, UGI has provided national procurement, merchandising and promotional opportunities to its members. Marinangeli describes the organization as a catalyst, intermediary and facilitator between suppliers and its members. UGI prides itself on working closely with manufacturers and all group initiatives are usually memberdriven and endorsed, he emphasizes. Ideas for programs typically arise at the group’s merchandising committee meetings. UGI takes its research seriously when starting a new project. They review Nielsen data for each category to determine requirements, gaps and market-share information.

August | September 2011

The next step is to ask members for input and then consult the suppliers for opportunities, challenges and feasibility of plans. “We’ll meet with the vendors and ask them to frame something up and present it at the next meeting,” says Marinangeli. The vendors then go to work within their own organizations. They come up with ideas to present to the UGI members. Once the members sign on to a project, they start to work with the manufacturers on implementation – planning, merchandising, promotions and establishing mutually agreed-upon objectives. UGI monitors the process continually, updating members with a series of consolidated reports. Collaboration works. The following programs are great examples of how retailers and vendors can partner to create incremental profits for themselves and benefits to the consumer.

collaboration = profit growth Kruger Inc. launched a national promotion campaign, in collaboration with UGI, for its Cashmere, Purex, SpongeTowels and Scotties paper products brands. The first campaign originated in 2006, when Kruger presented its rebranding strategy—Cottonelle had been renamed Cashmere and Scott Towels became SpongeTowels. UGI members across Canada promoted these products simultaneously, says Kruger’s Matt Blixt, regional vice-president, consumer sales. And the success of that program led to the next. The focus this time was on promoting large packs of bathroom tissue, paper towels and facial tissue. The collaborative program resulted in record sales increases.

The current program focuses on EnviroCare products. Targets were established both for individual members and the UGI team as a whole. If the targets are reached, there is an opportunity for incremental margin enhancement for the group. Kruger’s existing POS materials were used and each member had full freedom to craft and execute the program as required. The EnviroCare program resulted in strong year-overyear increases. “It’s now a question of what to do next,” says Blixt.

Earth Week promotion through UGI helped Kraft achieve its “best reach yet.”

Promoting Sustainable Products Kraft Canada Inc., in conjunction with UGI, tied into Earth Week in April to promote its four-week, national program focusing on its sustainable products. In its third year, this program, which is exclusive to UGI, focuses on cross-promoting sustainable products such as Fair Trade Dairy Milk Chocolate, Nabob Coffee with Rain Forest Alliance coffee beans and retailer re-usable bags. “This year is probably our best reach yet, with almost all members participating,” says Stacey Kravitz, customer vice-president, regional accounts. Kraft supplied POS material for in-store displays, and in-flyer activity to support the program. The POS materials and participating brands vary by member so each retailer can put its own mark on the product, explains Kravitz. “There’s a lot of flexibility. It has to match the strategic direction of that particular retailer.” This product promotion has done extremely well. Even the participating stores’ employees are engaged and enthused about the program. “Every year, we learn and hope to make it bigger and better,” says Kravitz.

Incentives were given to UGI retailers who achieved specific case-volume objectives within the eight-week period. The new products had to be distributed to stores quickly. The incentives drew strong retail support. UGI members worked closely with General Mills’ sales team on merchandising that included flyers and displays. The new products included Banana Nut Cheerios and Fibre 1 cereal in a family-sized format. Also involved were new granola bars: Fibre 1 Dark Chocolate and Nuts, Fibre 1 Dark Chocolate Chunks, Fibre 1 100-Calorie Peanut, Fibre 1 100-Calorie Chocolate, and a Nature Valley Crunchy Fruit Cranberry Strawberry Bar. All of these products are doing extremely well now, according to Perron, proving General Mills’ hypothesis about speed-tomarket. The World Junior Hockey Championship program, a separate UGI/General Mills collaboration, also won enthusiastic support from UGI members. It focused on retailers who had a loyalty program and was exclusive to UGI. The winners were invited to a series of games in Buffalo, N.Y., leading up to the final, gold-medal game.

August | September 2011

Exit Interview

In general, the future for co-operative business is strong and bright, and we will adapt and change with the times.

Born Educated Sheffield Mills, N.S.

Nova Scotia Agricultural College; B.Sc. Agriculture, Macdonald College, Montreal

P hoto : D an C allis

Worked

John Harvie By Sally Praskey

After 27 years in the co-operative system, including the last nine as CEO of Co-op Atlantic, John Harvie stepped down this year on May 28 at the company’s annual general meeting. He spoke with Grocery Business about his past experiences and future plans. 62

August | September 2011

Co-op Atlantic, 1976; Scotsburn Dairies Co-operative, 1981; Co-op Atlantic, vice-president agriculture, 1995; vice-president consumer products merchandising and distribution, 2001; CEO, 2002

Family

Married to Celia Munro and they have two sons

Grocery Business: What did you find most rewarding about your career with Co-op Atlantic? John Harvie: In the Co-op world, people are certainly important, and I have met so many hundreds of very interesting and devoted people. I have learned from virtually all of them in one way or another. I’m not the type of person who pays much attention to climbing the corporate ladder, but I have to admit that when it did happen and I became the CEO, it was pretty exciting. So I would say most rewarding was probably in 2002, when the board made the decision to offer the position to me. GB: How has the grocery industry changed over the years since you’ve been involved? JH: Bigger players. Recently, I was asked about the potential for predatory pricing related to mergers, and it suddenly dawned on me that, in this part of the world, the effects of a merger are pretty insignificant because there’s really nothing left. Twenty years ago, there were dozens of independent distributors and privately owned grocers, and now there are only three. There isn’t much regional influence anymore, other than Co-op Atlantic and Coleman’s in Newfoundland. It’s harder to compete; it’s harder to make a buck. It’s more regulated than it used to be. There’s something important in diversity, and as we see fewer and fewer players in our industry, I think we lose a cultural quality that needs to be considered. I don’t want it to sound like I’m just picking at the big guys. It’s simply that it comes back to this whole concept of community and diversity and culture. All of that is watered down when you get too big.

GB: What did you find the most challenging in your position as CEO of Co-op Atlantic? JH: Our diversity. This organization is very complex in many ways. The fact that it’s a co-operative makes it more complex, I believe, than a regular company. Another challenge is the fact that we serve so many different cultures in Atlantic Canada. The obvious one is the differences between Francophone and Anglophone communities. You ignore those differences at your peril. But that’s just the start of it when it comes to cultural differences. Cape Breton has a culture all its own, which in the marketplace is markedly different from, say, P.E.l. or Newfoundland. GB: What are you most proud of during your tenure as CEO? JH: We have to be sensitive to all the different cultures that we serve, and I’m proud of the fact that we’ve done that pretty well. I also believe the focus of the organization to be vastly improved from what it was. From an employee point of view, I think we are all pulling in the same direction. And profitability: I said it’s not easy to make a buck, but we are making a buck, and I’m proud of that. GB: What is most rewarding about working for a co-operative? JH: Co-operatives are a huge commercial and international phenomenon. They show up in

every walk of life, from daycare to food stores to farm stores to lumber to fisheries. Because of that, there’s a great connectivity with people in other parts of the world that I find to be very functional. Even though we may be strangers, we have this co-operative business philosophy in common. It’s a business/ cultural thing that draws us together before we even meet. And when we do meet, you can make acquaintance and do business and have discussions very quickly and in a very interesting way. GB: How do you see the future for co-operatives? JH: Obviously, it’s changing along with everything else. We have to remain relevant and competitive. We have been successful in many communities, and I see no reason why this will not continue. In general, the future for co-operative business is strong and bright, and we will adapt and change with the times. GB: What’s next for you? JH: I retired from Co-op Atlantic, but I’m not retiring from work. I think I have an opportunity now to do something for fun, something for the immediate reward, rather than the long-term gratification that came from my previous position. It could be international; it may be co-op. I’m pretty flexible. Sally Praskey lives in Cheticamp, N.S., where she shops at her local Co-op Atlantic store.

August | September 2011

New products you need to know about

list it Gluten-free

Rice Chex and Honey Nut Chex from General Mills

Three-and-half-million Canadians are looking for gluten-free products. Does your store offer them? Requests for gluten-free products increased 800% in the past year, so why not give your customers what they want. New gluten-free Rice Chex and Honey Nut Chex now are available across Canada for positioning in the regular cereal aisle. www.generalmills.ca

Marcy’s Bread Pudding Marcy’s Bread Pudding will become the new staple in comfort food. All the “at home” chef has to do is add milk and eggs for the ultimate in convenience during a busy time of year. Cross Merchandising Idea: Display near Marcy’s Cranberry & Orange Stuffing Mix to help your customers create a fully festive food experience.

Discover How Easy & Exciting Indian Flavours Can Be With Patak’s! At Patak’s, we’re all about fresh flavours, authentic Indian taste and convenience. And now we’re excited to announce some flavourful new additions to our award-winning lineup of Patak’s Indian sauces, pastes, chutneys, pickles and pappadums. Curry Pastes for Two These are ideal for summer barbequing. Use them for a traditional Indian dish or as marinades or rubs for your favourite grilled meats, poultry, seafood or vegetables. Available in Madras and Tikka Masala varieties. Oven Bake Biryani Sauce This savoury cooking sauce is a quick and easy way to make a classic Indian restaurant favourite. A traditional one-dish Indian meal made simple. All you need is chicken, rice and an oven. Available in 2 delicious flavours, Mild & Fruity , and Medium & Aromatic.» www.pataks.ca

Spice Up

Your Festive Displays with new “Fiery Olives” from Sable and Rosenfeld Fiery, hot, crunchy and delicious, this newest addition to the Sable and Rosenfeld’s “Tipsy” line of cocktail condiments is the perfect item to add to your store’s festive seasonal displays. www.sableandrosenfeld.com

Three New Healthy Greek-Style

Marcy’s Cranberry & Orange Stuffing Mix Made from freshly toasted Calabrese bread and delicately enhanced with seasonings, Marcy’s Cranberry and Orange Stuffing Mix is made to complement the best of your customers’ holiday offerings. Cross Merchandising Idea: Display near poultry cases or the produce section of your store to build incremental sales www.marcys.tv 64

August | September 2011

Yogurt Dips for Everyday! The light, creamy texture of Otria Greek Yogurt Veggie Dip makes it perfect for everyday use with your favourite vegetables. Otria Greek Yogurt veggie dips reward the daily dieter, providing healthier snacking options. With only 60 calories per serving, Otria is a refreshing alternative for the well-balanced diet. Revitalize and expand your produce category with these great flavours— Cucumber Dill Feta, Spinach Artichoke and Garden Herb Ranch. A new line extension from Marzetti. Contact Priority Brands. www.prioritybrands.com

August | September 2011

I remember… John Fortino

World Trade Center Miami presents

By Gerry Prins

November 14-15, 2011 Miami Beach Convention Center

This year the grocery industry lost the supermarket boss with heart. Giovanni (John) Fortino died May 17, 2011. Admired company president, John mentored many people over the years as he built Fortinos supermarkets into one of Ontario’s most successful independent grocery chains. Recognized for his community contributions, he earned several distinctions including the Order of Italy, the Italo-Canadian Citizen of the Year, and the Canadian Achiever Award, among many other accolades. John was 76. The last time I saw John Fortino was five years ago. But we had always kept in touch by phone or email. And last April, as my wife and I were sailing on the Queen Mary between Sicily and Calabria, I thought of John because he was originally from Cosenza, a city in Calabria. At the time, I didn’t know he was ill or that he would die a month later. I miss John. We met for the first time in 1961. I was a salesman for Essex Packers, a Hamilton meat company that no longer exists today, and John had just opened his first grocery store. He was an Italian immigrant and I was a Dutch immigrant. We hit it off right away. Our minds were on the same wavelength. He was honest, sincere and kind, and he could make people do things for him that were above and beyond their job description. I would go into Fortinos and if he was short a meat cutter, I would be pushed into service. I remember once he was short a cashier so he pushed me behind the counter. In 1974, he asked me to be general manager of Fortinos. I accepted and worked with him for three years. During this time, I really got to know John. His formal education in Italy was minimal but boy was he smart. He had a mind like a sponge— whatever he learned stuck with him. He could lay out a store, purchase equipment and know where everything needed to go—he had all this knowledge in his head. 66

August | September 2011

15TH AMERICAS FOOD & BEVERAGE SHOW & CONFERENCE VISIT the USA Pavilion featuring specialties from every region in the US DISCOVER the New Products Showcase where you can see the newest products in the US and in the Americas introduced in the last 12 months TASTE products produced in 17 countries with major pavilions from South America and the Caribbean Giovanni (John) Fortino November 02, 1934 – May 17, 2011

John was a visionary. He was among the founders of a buying group that helped members grow and be more competitive through cost reductions and higher volume rebates. He was also one of the people instrumental in negotiating with National Grocers to tie in with the Ontario Food Alliance. He loved the business. He gave consumers what they wanted: great meat, great produce and great service. That’s how he built Fortinos into a unique company. It’s loved by customers. And it’s beloved in Hamilton. Just like John. When people learned that John had died, they lined up in the thousands to pay their respects. The church was packed. John touched so many people’s lives. He had a huge impact on my life. He was my great friend, and always will be. Gerry Prins is a retired veteran of the grocery industry whose career included senior roles with McCain Foods, Canada Bread, Distribution Canada Inc., and Fortinos. He is currently chairman of the Retail Merchants’ Association of Canada (Ontario).

SCHEDULE personal appointments in advance of the show with leading producers FORM strategic alliances with small and mid-sized companies in the U.S. to increase your product diversity and offerings NETWORK with 7,000 of your industry peers from 83 countries at innovative seminars and sessions focused on methods to increase business MEET over 400 exhibitors and taste some of the industry’s most outstanding products Special Priority Registration Code: TGB Sponsors:

Contact: 305-871-7910 or afb@worldtrade.org

TASSIMO is Canada’s #1 On Demand System for the 5th Consecutive Year! TASSIMO is the leader within coffee’s most exciting category! • On Demand coffee sales are up triple digits vs. YAG, and TASSIMO continues to lead with 63% market share. • T DISC sales are up 106% since YAG and represent over twice the sales of the closest On-Demand competitor.

The secret to the perfect cup isn’t just in the beans, it’s in the barcode. • TASSIMO is the only home system with barcode technology to brew a variety of café beverages to perfection right at home; from coffees, to teas, cappuccinos, lattes, and hot chocolates. • Enjoy some of your favourite brands at the touch of a button, including NABOB, GEVALIA, MAXWELL HOUSE, SUCHARD and TWININGS® • Get the latest TASSIMO innovation! Now shipping NABOB French Vanilla Coffee, NABOB Decaf Cappuccino and TWININGS® Orange Pekoe Tea!

www.TASSIMO.ca

Nielsen Market Track, Coffee, National XNFLD GB + MM + DR, 5 yrs ending Dec 2010 NPD Brewer Sales Data, 5 years, ending December 2010 Nielsen Market Track, L52 weeks, National XNFLD GB + MM + DR, period ending June 2011.