Overwaitea Food Group---Celebrating 100 YEARS of Going the Extra Mile

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Celebrating YEA of R S

GOING THE EXTRA MILE

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Published and distributed

by Grocery Business Media

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Overwaitea Food Group

on FOCUSED the FUTURE Celebrating 1 0 0 Y E A R S of

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As the Overwaitea Food Group (OFG) celebrates its 100th anniversary, president Darrell Jones is poised to take the company into the next century of service.

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Darrell Jones President

“It’s always about what our customers want.”

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- Darrell Jones

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FOCUS

“Since 1915, Overwaitea’s focus has always been on the customer – and that will never change. But what will change are the ways that we can best serve folks – whether it’s offering multicultural products, or using technology to simplify grocery shopping. It’s always about what our customers want,” says Jones.

Like all the OFG presidents before him, Darrell Jones has worked his way up, from bagging groceries at a Cranbrook, B.C., supermarket during high school to his current position, to which he was appointed in 2012.

And like his predecessors, he is focused on adapting and expanding the company to meet the changing needs and demands of a new generation of shopper.

In 2014, OFG acquired 15 former Sobeys-owned stores in British Columbia and Alberta, doubling its store count on Vancouver Island and solidifying the company as the largest Western-based food chain in Canada.

With those stores now successfully converted to the Save-On-Foods banner, Jones has set his sights eastward for new growth opportunities. Later this year, OFG is planning to open its first store in Saskatchewan. “And then we have a number of stores in Saskatchewan and into Manitoba,” he says.

The key to eastward expansion is a new 500,000-square-foot distribution centre in Northern Alberta that will open later this year, complementing OFG’s other facilities in B.C. “The second distribution centre will position us well for growth eastward into Saskatchewan and Manitoba,” Jones explains. “Given its geographic location, the provinces of Saskatchewan and Manitoba are well within our ability to expand using that particular facility, so between B.C. and Manitoba are where our goals are at the moment.”

But the company does not add stores without first determining the needs of a particular community and how OFG can best meet them. “We want to make sure that our stores are tailored for the communities that we’re in,” says Jones. “So rather than building a cookie-cutter store that’s

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the same in every marketplace, we want to customize our stores to fit the demographics of the market, whether that be socio-economic, or whether it be ethnic, and usually both.” For example, the PriceSmart Foods banner caters to an ethnic, predominantly Asian, clientele. But recognizing the multicultural composition of some of the communities in which it operates, OFG recently launched PriceSmart Foods International, featuring foods from around the world. “Where there is a really big mix of different cultures within a particular community, that will be PriceSmart Foods International,” Jones explains. The first of these stores opened recently in Surrey, B.C. Jones is a firm believer in not only giving customers what they want, but also a choice of when and how they

Many OFG customers can shop online and have their groceries delivered to their door, or to their car at one of a handful of stores piloting a new “click-and-collect” service.

shop. “We’re always focused on meeting the evolving needs of the diverse communities we serve,” he says. “Our products are one way of doing that, and technology has also been an incredible tool to keep advancing on what customers want.”

For example, many OFG customers can shop online and have their groceries delivered to their door, or to their car at one of a handful of stores piloting a new “click-and-collect” service.

“This is just one example of how we’re innovating for our customers,” says Jones of the company’s e-commerce initiative. “Since 1915, Overwaitea’s focus has always been on the customer – and that will never change. But what will change are the ways that we can best serve folks – whether it’s offering multicultural products, or using technology to simplify grocery shopping. It’s always about what our customers want.” n

Fast FACTS n

N umber of team members: approximately 15,000

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N umber of stores: 145

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Banners: Overwaitea Foods, Save-On-Foods, PriceSmart Foods, PriceSmart Foods International, Bulkley Valley Wholesale, Cooper’s Foods, Urban Fare

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O wnership: acquired by The Jim Pattison Group in 1968

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R etail innovations: first in Western Canada to offer pharmacies, natural foods, bulk foods, exclusive meat programs, wholesale sections within stores, in-store cosmetic departments, in-store banking facilities, and full-service book stores

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HISTORY

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From “Overweight Tea” to Overwaitea A historical snapshot of one of B.C.’s most iconic and enduring companies.

T

he century-old story of Overwaitea’s very first store

begins with one simple and ingenious concept: to provide more for less. While this may seem like a regular modern-day practice, it was virtually unheard of 100 years ago – unheard of, that is, until a clever Irishman in his 40s came along and decided to start a grocery business.

Robert Campbell (R.C.) Kidd

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With a small outlay of $500, Robert Campbell (R.C.) Kidd opened a modest grocery store on March 8, 1915 at 746 Columbia Street in New Westminster. His narrow 12-foot-wide storefront emphasized quality products and exceptional service, but it was his visionary practices that brought real value to his customers.

One of his earliest promotions – and the one for which the store became best known – involved packaging his high-quality teas with 18 ounces in a one-pound package.

The result proved worthwhile, and Kidd soon built a reputation for selling “over-weight-tea,” which quickly became the burgeoning store’s official moniker.

Building on this success, by 1922, Kidd had opened three more stores, in Nanaimo, Penticton and Kelowna.

Seven years later – on October 29, 1929, to be exact – the US stock market crashed and the Great Depression hit, bringing economic turmoil that would last a decade or so.

Despite these difficult conditions, Kidd retained his staff and used his visionary practices to help Overwaitea’s people and its customers weather the economic storm.

It was in that same year – at a time when his empire was rapidly expanding – that he decided to share the profits and shift the company’s ownership to its employees, a concept previously unheard of in British Columbia.

By the end of the Second World War in 1945 – and under Anne Kidd’s direction – some 36 new Overwaitea stores were opened throughout British Columbia.

And while the Great Depression obliterated countless businesses, Overwaitea survived and thrived (as did its people). The continued emphasis on low prices and increased value also meant that its customers had a better chance of surviving the harsh economic times.

In 1930, Kidd – who strongly believed that “Overwaitea is its people” – stepped down from the company’s operations, but remained president and principal director until his death two years later.

Kidd’s wife, Anne, took the reins as president with his passing, helping to guide the company – along with their two children – through the Great Depression, the Second World War and the booming post-war era.

And though the Kidd family held senior positions at Overwaitea for the next several decades (until 1968), it was the general managers who were entrusted with the company’s day-to-day operations.

By the end of the Second World War in 1945 – and under Anne Kidd’s direction – some 36 new Overwaitea stores were opened throughout British Columbia.

Despite this initial boom, business slowed considerably by the 1950s as the mass production of goods created a new ultra-competitive environment. For the company, this translated to minimal growth for the next 15 years or so, which led Overwaitea president C.S. (Stuart) Mitton to take a new direction.

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In 1967, the company introduced its first Prairie Market store in Port Moody – a new retail concept featuring an unconventional, deep-discount, no-frills, “warehouse” shopping experience – to British Columbians.

However, it was a year later – in 1968 – that another more defining shift took place for the company: Jim Pattison’s acquisition of Overwaitea Foods. This acquisition came about, most incredibly, as the result of a single phone call to Pattison from a stranger – someone he didn’t know, hadn’t ever met and hasn’t heard from since.

But, it was the phone call that changed everything – resulting in a new trajectory for this small, stagnating yet resilient B.C. grocery chain.

With its limited capital and drive for change, Overwaitea welcomed this iconic and self-made businessman renowned for his leadership and support.

And so on May 16, 1968, the merger between Pattison’s Neon Products

Under Pattison’s business acumen, guidance and leadership, Overwaitea’s total square footage increased by more than

Limited and Overwaitea Foods was officially complete, and would signify the

140 per cent over the

single most important development for the company since R.C. Kidd opened

next decade, while the

the very first store in 1915.

company’s market share

Under Pattison’s business acumen, guidance and leadership, Overwaitea’s total square footage increased by more than 140 per cent over the next decade,

more than doubled.

while the company’s market share more than doubled.

Three years later, in 1971, Stuart Mitton retired and was succeeded by Clarence Heppell, a prominent company leader who charged Overwaitea towards future growth.

“The early 1970s was an exciting time for us, not the least of which was because of Jimmy Pattison’s positive influence and outlook for the company,” Heppell explains. “Though we only had a small market share back then, there was lots of room for growth and opportunity.”

Indeed, these would prove to be significant years in the company’s overall history, as the capital provided by Pattison enabled the organization to transition from a small-scale entity to a corporation.

Another key factor was the economic climate of the 1970s, which enabled major expansion. B.C.’s natural resources were opening up and people were moving into smaller towns, providing Overwaitea with a larger market and an opportunity to open bigger stores.

As time pressed on, the company also made changes to its Prairie Market stores in 1978, revitalizing and renaming them to Your Mark-It Foods. Just as the name implies, the warehouse store concept was continued and re-captured – this time with some small luxuries to make the shopping experience more comfortable.

Under Heppell’s leadership, the late 1970s and early ’80s continued to prove fortuitous – enabling the company to transform from a standard grocery retailer to a new kind of convenient one-stop shopping experience. In 1982, the company made yet another move to meet consumers’ evolving needs – refreshing and shifting the Prairie Market concept to Save-On-Foods. Along with exceptional value and customer service, Save-On-Foods was the first Western Canadian retailer to offer exclusive meat programs, wholesale sections, in-store cosmetic departments, in-store banking facilities and full-service bookstores all under one roof.

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Celebrating 1 0 0 Y E A R S In 1985, Save-On-Foods opened its first megastore in Richmond, which featured a pharmacy and cut-rate prescription fee – once again becoming an industry trendsetter. That same year, the Overwaitea Food Group also became the first Western Canadian retailer to keep its doors open until midnight, seven days a week. With the enormous success of Overwaitea and its Save-On-Foods brand, the company decided to expand beyond the borders of British Columbia. This time, it was under the leadership of Overwaitea President Doug Townsend, who took over from Clarence Heppell upon his retirement in 1989.

And so, just a year into Townsend’s two-year tenure as Overwaitea president from 1989 to 1991, the company introduced the first Save-On-Foods in West Edmonton.

Overwaitea’s simple yet enduring time-tested strategy of great service, innovation and value paid off as Alberta’s new Save-On-Foods stores charted a new and promising course for the company.

“Our premise in Alberta was a simple one: to continue doing and offering what we had always done – and to put the customer first,” reveals Brian Piwek, president of Overwaitea from 1991 to 1997, who took the lead in the Alberta expansion after Townsend’s retirement in 1991. “We kept things simple by focusing on providing great value, quality products and exceptional customer service.”

Under Piwek’s direction as president through the early and mid-1990s, the company actively expanded its market share within Alberta’s fiercely competitive grocery retail environment.

When Steve van der Leest took over as Overwaitea president in 1997, he led the company in yet another new and exciting direction, with two acquisitions and two launches, totalling four new company banners – including Urban Fare.

The first Urban Fare launched in Yaletown in 1999, and blew away most people’s expectations of what grocery shopping could or should be, with its colourful square watermelons and bread flown in fresh from Paris.

And while the store made news in its early days for the price and luxury of some items, it didn’t take long for locals to embrace the concept and realize that, beyond the quirky fruit and authentic Parisian bread, Urban Fare was a truly community enterprise.

Over the next several years, van der Leest and his team launched three more banners under the Overwaitea Food Group. Two of those banners were acquisitions of Cooper’s Foods and Bulkley Valley Wholesale in Smithers, B.C. The third was by creating

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Celebrating 1 0 0 Y E A R S an entirely new brand: PriceSmart Foods – a valuecentred no-frills store that caters to its distinct communities, while offering significant savings and value.

Though Overwaitea Foods and its sister stores (Save-On-Foods, PriceSmart Foods, Cooper’s Foods, Urban Fare and Bulkley Valley Wholesale) have become household names in Western Canada, it’s hard to imagine the company started with just one humble shop on Columbia Street in New Westminster 100 years ago.

There is no doubt that Overwaitea’s long and storied journey has taken it through some major historical moments and milestones, including two world wars, the Great Depression, rapid technological advancements and changing demographics.

Through it all, though, there’s no denying the significant impacts of two gentlemen: R.C. Kidd, who created the company with his visionary practices, big dreams and a modest $500; and Jim Pattison, whose contributions and leadership injected new life, new hope and a new trajectory for this resilient B.C. company. n

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PEOPLE

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POWER W

hen team members at the Overwaitea Food Group (OFG) say they are like a big family, they really mean it. Many present-day team

members are part of multi-generational families whose parents, and even grandparents, have held decades-long positions at the retailer.

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After all, OFG has one of the longest-serving employee bases in the industry. Every year, the company celebrates remarkable service milestones, starting at five years and going all the way to 45. “On an average year, we would have anywhere between 1,700 and 2,000 people who are celebrating those milestones,” says Allen Bordeleau, vice-president, people. “At our last service awards, we had over 400 team members who had more than 25 years of service. Some years, we’ve had as many as eight or 10 who are celebrating 40 or even 45 years with us.”

Many of these long-serving employees have moved

Team pictured with store manager Phil Swift (fourth from left) in Abbotsford, B.C.; circa 1946.

around to numerous stores to help build the company.

At each new location, there is invariably someone they

“There is one simple reason for the

know or with whom they have friends in common, making

company’s 100 years of continued

for an instant connection.

growth and success – and that is a

OFG has its roots as a family company; when

team of determined, competitive,

entrepreneur Jim Pattison bought the company in 1968

creative people who are totally

from the children of founder R.C. Kidd and a limited

committed to satisfying the needs

number of employees, he says he “quickly found out what

of their customers every day.”

a very special group of people the Overwaitea folks were.”

At that time, the company had small grocery stores in several

- Darrell Jones, president, the Overwaitea Food Group

towns in British Columbia. “They were like a tightly knit family – dedicated, hard-working people who cared about their customers and each other more than any other group I had ever come across in my business life. And they still do!”

Opportunity for growth One reason the company boasts such a high employee retention rate is its philosophy of promoting from within, which dates all the way back to its inception. All six of OFG’s presidents – starting with Stuart Mitton, the company’s first president outside the Kidd family – have worked their way up through the ranks. Clarence Heppell, for example, was hired in 1946 as a teenager, and promoted to president 25 years later. “All of them started at a young age with the company, and all of them were promoted to their positions after many years with the company,” says Bordeleau, who himself began as a grocery clerk more than 30 years ago and worked in a wide variety of positions before assuming his current role. The same holds true for many other senior leaders in the company.

“We have thousands of long-serving team members, many of whom started working in our stores as a part-time job, and for them, it ended up being a career,” says president Darrell Jones, who began his career at OFG by bagging groceries as a 16-year-old high-school student, and worked at 23 different locations around the province along the way. “Every step of the way, we’ve always prioritized

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our people, and have made a real commitment to help develop their skills. The company is only as good as its people, and the folks here know they are part of something special.”

Like founder R.C. Kidd, Pattison is also a proponent of promoting internally. “Every team member here is part of the Overwaitea family, and we make it a point to promote from within to acknowledge and reward their efforts,” he says.

“Our people are empowered to think and make decisions on behalf of the company. We have faith in their decisions to do the right thing – for our

“Every team member here is part of the

customers and for our business.”

While bringing in new talent from time to time is important to any organization, the vast majority of opportunities at OFG are filled internally.

Overwaitea family, and we make it a point to promote from within to acknowledge and reward their efforts.” - Jim Pattison

Provide training tools To help team members acquire the skills to progress within the company, OFG provides a number of professional-development tools. It offers team members and their families academic scholarships in a number of different fields, from environmental stewardship to business development.

Training has always been critical to OFG. Even during a tumultuous economic climate at the turn of this century, then-president Steve van der Leest made an unprecedented investment in people. Part of this commitment comprised an online learning management system so employees could self-train, as he insisted that people values should not be sacrificed for the sake of short-term profit. “We made some significant investments in those tools for our team members, despite the fact

Fast FACTS n

its approximately 15,000 team members collectively mark more than 26,000 years

that we were in a recession,” notes Bordeleau. New orientation programs and job-training tools were

of service. n

developed and implemented in every corner of the

many as 45. n

of Retail Leadership Excellence Programs. Rather than focusing on the mechanics of running a supermarket, these programs centred on how to inspire employees

M any team members have celebrated 40 years with the company, and some as

organization, and a new generation of leaders was introduced to the “Overwaitea Way” through a series

A s OFG celebrates its centennial this year,

O FG was named one of British Columbia’s top employers in both 2014 and 2015.

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I n 2015, Save-On-Foods was named B.C.’s Most Loved Brand.

to excellence, so they in turn would provide superior customer service.

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OFG also recognizes excellence through an internal awards program for store managers and senior leaders. The awards recognize leaders not only for financial results, but equally for their commitment to their employees and their customers.

In a store environment, team members can develop their skills by working in more than one department. For example, a cashier could also work in the meat department or bakery to gain additional hours and knowledge.

“The opportunities have always been available within the company, and making sure everyone understands those opportunities is important for us,” says Jones. “Team members know they don’t have to leave the company to achieve career advancement, or even get the opportunity to try a brand

“Team members know they don’t

new career.”

have to leave the company to achieve

One hundred years ago, R.C. Kidd opened his first

career advancement, or even get the

Overwaitea store in New Westminster, B.C., with the claim that

opportunity to try a brand

“Overwaitea is its people.” A century later, Overwaitea is still

new career.” - Darrell Jones

its people. n

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CUSTOMfit F

or the Overwaitea Food Group (OFG) president Darrell Jones, customization of individual stores to their community is a concept that is “absolutely critical” to

the company’s growth strategy. Rejecting the “cookie-cutter” approach to retail, Jones maintains that each store must fit the demographic and socio-economic makeup of the community in which it operates.

To determine what kind of store is best for a particular location, OFG analyzes the most recent census, talks to residents – in fact, talks to “everyone we can, to find out what the mix is and what the people in that community are looking for,” says Jones. “You want to deliver to your customers what they want, not necessarily just what you want to put in your stores. This strategy is more costly, and it takes longer, but we think it’s worth it.”

For example, the company launched the PriceSmart Foods banner – referred to as its “east meets west” philosophy – in Richmond, B.C., when it converted a flagging Save-On-Foods store in 2011, explains Blendle Scott, senior vice president, merchandising

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and business development. PriceSmart Foods stores feature more than 50 per cent Asian foods alongside a traditional product offering, to better serve the local demographic, says Scott. After all, close to half of the residents in the city of Richmond are of Chinese heritage, and visible minorities comprise approximately 70 per cent of the total population of more than 200,000. There are now five PriceSmart Foods stores in British Columbia, including the newly opened PriceSmart Foods International, which caters to multicultural communities comprising many different ethnic groups, from Asian to European.

Beyond PriceSmart Foods, OFG’s other banners serve different clientele: the upscale Urban Fare in downtown Vancouver and Kelowna, with gourmet offerings that appeal to foodies; Cooper’s Foods neighbourhood markets; Bulkley Valley

“We give our store managers a tremendous amount of flexibility to purchase local products.”

- Darrell Jones

Wholesale, serving families and businesses in Smithers, B.C.; the original Overwaitea Foods banner in small towns; and, of course, the ubiquitous Save-On-Foods stores, many featuring the new “Kitchen” restaurant-style prepared-foods offering – or a scaled-down version of it, depending on the demographics.

“We have a mix of banners to ensure that the stores we put into the cities and towns in Western Canada are the best possible ones for those communities, because we want our customers to have the kind of shopping experience that’s right for them,” says Jones. “That’s really important for us, and we think it’s important to the communities that we go into.”

But the customization concept extends even beyond the banners, to the individual store.

“We work with the store managers, the people who work in the stores, and the customers to figure out what we should be selling or doing differently to match the needs of the community better,” says Jamie Nelson, senior vice president, retail operations.

For example, there is a high percentage of Maritimers in Fort McMurray, Alta., so the Save-On-Foods store there devotes a section to products that these shoppers would find “down home.” “We talked to our customers and asked: ‘what are the items that you miss from home?’ And we brought them in,” says Nelson. “We do that community by community, the best we can, to be able to provide to the customers the grocery items they’re looking for based on their needs and their shopping habits.”

And that also means a strong emphasis on local items. “We give our store managers a tremendous amount of flexibility to purchase local products,” says Jones. “We believe that the way to be successful in the food business is for the stores to reflect the community they’re in, and to have management within the stores who have the autonomy to do what’s right for the people in their community.” n

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VALUE PROPOSITION A Western Family affair The Overwaitea Food Group (OFG) didn’t reach its 100th anniversary by resting on its laurels. The company continues to build value for its customers, whether it be through its focus on competitive pricing, customized offerings in each distinct community it serves, choice of when and how to shop, or many other initiatives. One of the most noteworthy of these is OFG’s Western Family group of private-label products.

Some 40 years ago, OFG made the auspicious decision to introduce its own line of high-quality products at low prices to bring increased value to customers.

To achieve this, the company, then under the leadership of president Clarence Heppell, turned to United Grocers Inc. (then called United Grocers Wholesalers), the buying group of which OFG was a founding member.

And so was born the Western Family line of products. As OFG continued to develop the brand, it began to bring the product development fully in-house. What started out as a humble endeavour with just a few items has blossomed into a portfolio comprising thousands of family-favourite products,

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LOYALTY

Celebrating 1 0 0 Y E A R S many of which are produced locally, including Western Family Classics, Western Family Organics, and Western Family Envirowise.

Now synonymous with OFG, its banner stores (such as Save-On-Foods), and the Western Canadian lifestyle of eating and living right, the Western Family brand has become the choice for many families across British Columbia and Alberta.

“We now have thousands of lines of products that go all across the store, including the fresh areas,” says Ken Clark, general manager of corporate brands. “Our beef and our chicken are all local, as are thousands of our centre-store items. We have also won national and international awards for the package design of our Western Family products. It’s a big part of our offer to the consumer.”

More Rewarding Another cornerstone in OFG’s strategy to build value for customers is its loyalty program, aptly named “More Rewards.”

Started in the 1990s as the “Select Plus” program by then-president Brian Piwek, More Rewards is now one of the most popular loyalty programs in Canada. It allows customers to accumulate points with every purchase at OFG stores, as well as with participating partners like More Rewards Mastercard™, Chevron, Jim Pattison Auto Group, and Avis. Members can even earn points from the comfort of their home, by shopping online at The Mall, at morerewards.ca. Online shoppers can choose from a variety of categories, including: Apparel & Accessories; Electronics, Toys & Books; Department Store & General; Travel & Leisure; Real Estate, Office & Finance; and Home Improvement & Décor.

Mall partners include such favourites as The Gap, the Apple Store, and The Bay. Members can redeem their points for a wide selection of rewards, like travel, electronics, and free groceries.

Over the past 20 years, OFG’s customer loyalty program has evolved from Select Plus, to Save-0n-More with a black and orange card, to a blue and yellow card, to its current card, More Rewards.

“Earning points is now more convenient than ever,” says Ian Ricketts, managing director, More Rewards. “More Rewards has a variety of retail and online partners where customers can earn points for their everyday spending. With nearly 500 retail locations, our partners are local, which means more points for our members, faster than ever before.” n

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LOYALTY

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Living LOCAL

A

t the Overwaitea Food Group (OFG), “local” means many different things. First, it’s sourcing from local suppliers as much as

possible. While much has been made of the local food movement over the past few years, it has long been a focus of OFG. “We’re proudly local,” says Mike Olson, vice-president, fresh merchandising.

“As a Western Canadian company, we are the number one supporter of local suppliers, producers, and growers in our communities and across Western Canada. We source local products first, whenever possible. We work with more than 1,200 growers, ranchers and producers to bring our customers the best that Western Canada has to offer.”

More than half of the 300 varieties of fresh vegetables and fruits the stores sell come from family-operated farms in British Columbia and Alberta, says Olson. “We also feature a variety of fresh, local cheeses made especially for the stores, and more than 85 per cent of the selection available in our bakery is produced in Western Canada.”

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LOCAL

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Under the company’s own Western Family label, it offers 100 per cent Western Canadian beef, chicken, and pork. In fact, thousands of its private-label products are sourced locally – pet food from Chilliwack, ice cream from Vancouver Island, pop from Coquitlam – the list goes on and on.

When asked for a comment from the company, OFG fondly recalls the story of a local radio reporter who requested a comment on a flood in the Kellogg’s waffle plant in Atlanta, Ga., that was expected to trigger a severe shortage of waffles. “How would OFG deal with this impending shortage?” he asked. OFG replied: “Well, the good news is, we make our waffles in New Westminster [B.C.], so we don’t have anything to worry about. If you want waffles, you

Whether it’s natural, organic, eco-friendly, or ethnic items, each store has a product line-up that best meets the needs of the local community.

can come and get ours.”

The concept of buying local extends right through to the individual communities where stores are based. As long as all the food-safety and other criteria are met, stores can work with small local producers in their area. Save-On-Foods, for example, focuses on offering products tailored to each distinct neighbourhood the company serves. “Whether it’s natural, organic, eco-friendly, or ethnic items, each store has a product line-up that best meets the needs of the local community,” says Blendle Scott, senior vice-president, merchandising and business development. “We simply listen to customers and deliver exactly what they are looking for.”

These products are merchandised in dedicated sections to draw attention to what individual stores are doing from an über-local perspective, says Scott. “That’s where you would find the item that they’re making in Qualicum Beach at the French Creek store over on the Island, for example.”

OFG’s philosophy has always been “buy local first,” says Scott. “At the end of the day, if you can, you give the business to our local companies because we live here too, and that’s good for everybody.”

Commitment to community OFG’s unwavering commitment to “local” also embodies the support it gives to each community in which its stores operate. While the company does its share of monetary donations, “we are better known for rolling up our sleeves, getting in and helping out,” says Jamie Nelson, senior vice president, retail operations. For example, instead of sending a gift or a cheque to a community fundraising event, OFG will send a crew of team members to lend a hand. At the grassroots level, stores support everything from minor sports to community events and local charities – whatever matters most to their customers.

Sometimes an individual store identifies a cause that a group of stores, or even the whole company, gets behind, such as the little girl

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Celebrating 1 0 0 Y E A R S in Alberta suffering from terminal cancer who wanted to build a playground for her friends. One department manager brought the cause to his manager, who met with other store managers, and eventually head office. “We got on board

LOCAL

Fast FACTS n

O FG is B.C. Children’s Hospital’s largest retail donor, well on its way to fulfilling a $20-million pledge to help give kids the help they need closer to their hometowns.

n

and helped her get her wish,” says Nelson. “That is an example of things that

•

I n a typical year, OFG stores donate over $5 million in cash and goods to support local food banks.

n

W hen areas of Alberta were hit with a devastating flood,

go on in our communities, big and small,

Save-On-Foods donated trailer loads of “Welcome Home”

because our stores get behind what

packs to provide household essentials to those who had

matters to their customers and their

been displaced from their homes.

communities, and help.”

OFG’s overall mission is to support the health and wellness of children and their families in the communities it serves. To this end, the organization has supported B.C. Children’s Hospital since its first telethon broadcast in 1988.

To date, OFG has provided nearly $18 million in support of various initiatives identified as urgent needs of the hospital.

In 2007, OFG made a whopping $20-million pledge to support Child Health B.C., to help kids in the province get the care they need, closer to home. The company has now fulfilled more than

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LOCAL

three-quarters of that pledge, thanks to dedicated fundraising efforts by

OFG partners with the B.C.

customers, suppliers, and team members, including OFG’s annual Classics

Agriculture in the Classroom

Fore Kids golf tournament, started in 1995, and its annual participation in the B.C. Children’s Hospital Miracle Weekend telethon.

In Alberta, Save-On-Foods stores in the north and south of the

Foundation as the primary distributor for the B.C. School

province have supported the Stollery Children’s Hospital Foundation and

Fruit and Vegetable Nutritional

Alberta Children’s Hospital, respectively, with annual fundraising drives for

Program, which distributes

more than two decades.

locally grown fruits and

As part of OFG’s platform of food security for families, stores also

vegetables to over 500,000

provide ongoing support to local food banks in British Columbia and

school-aged children in the

Alberta, through fundraising campaigns, collections at checkout, and the

province.

donation of goods directly. In a typical year, the stores donate over $5 million in cash and goods.

On another front, OFG partners with the B.C. Agriculture in the

Classroom Foundation as the primary distributor for the B.C. School Fruit and Vegetable Nutritional Program, which distributes locally grown fruits and vegetables to over 500,000 school-aged children in the province throughout the school year – the perfect marriage of local food, health and wellness, and community support. n

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E-COMMERCE

“Once your order is placed, your Personal Shopper will follow your list to fill and carefully pack your order. Prefer your bananas a little green?

No problem – just let us know.”

- OFG website to online shoppers

CONNECTING WITH

O

CUSTOMERS

verwaitea Food Group (OFG) president Darrell Jones is a firm believer in giving customers what they want, as well as where, when, and how they want it. And so

the company is constantly seeking new ways to serve its customers. “We recognize the changing needs of consumers, and we want to deliver our customers great service in any form that best suits them,” says Jones. “That’s what our goal is.”

OFG views technology as simply a tool to help it accomplish that. The company’s e-commerce service, for example, enables customers to shop online for their groceries, and have them delivered to their homes. With OFG’s new mobile shopping app, customers can browse the current flyer, view instore offers, download coupons, create a shopping list, scan/add items, and e-mail their shopping list.

Most recently, Save-On-Foods launched online shopping and home delivery service, along with a “click-and-collect” service to give customers yet another option. “Click and collect is for anyone who

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E-COMMERCE

wants to shop with us but would prefer the convenience of driving up to the store and having someone bring their groceries to them and load them in their car,” says Wayne Currie, vice-president, supply chain and e-commerce. “It’s a service that recognizes our customers’ busy lifestyles and gives them a new way to shop that frees them up to do what they want to be doing with their precious free time.”

Although the service was launched only late last year, “it’s very popular and growing every week,” says Currie. To ensure

Click-and-collect service

customers get the same-quality products they would if they were choosing them themselves, OFG uses personal shoppers “who are dedicated to the role and passionate about picking the best produce for their customers.”

The company deliberately started the service slowly to be sure it would run smoothly. Currently, it is available at Save-On-Foods stores in Port Coquitlam, Surrey, North Vancouver, and Abbotsford.

“We plan to launch more locations when the timing makes sense,” says Currie.

Online and click-and-collect shopping are really just extensions of what the company has always done, notes general manager, e-commerce, Brian Heppell. “Because of the unique geography of our province and the locations of our stores, we’ve been doing call-in orders one way or another, whether they were technology-based or not, for decades.” For example, OFG stores have long sold to the fishing boats out of Prince Rupert. “Our stores get orders in from the fishing boats every week,” he explains. “They shop the orders, box them up, and take them down to the boats.

Sometimes they drop them on the boats; sometimes they drop them on lighthouses.”

Like Jones, Heppell maintains that “e-commerce for us is an extension of our desire all this time to find ways to meet the needs of our customers – the way they want their groceries, where they want their groceries, and how they want their groceries delivered.”

Service via social media Similarly, OFG views social media, such as Facebook and Twitter, as an extension of its customerservice function. While the company is well developed in areas of social marketing – it regularly holds contests and other promotional events – customers primarily want to use social-media channels – and Facebook in particular – as a customer-service conduit, says Heidi Ferriman, director of communications.

“That’s our first priority,” she says. “We market through social media when we can, but really, it’s a way of having another kind of unique one-on-one dialogue with our customers, to find out what they’re thinking, what they care about, and how we can better help them.” n

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Celebrating 1 0 0 Y E A R S The new “Kitchen” restaurant-style prepared-foods offering in a Save-On-Foods store in Calgary.

COOKING UP

A FRESH OFFERING W

ith the launch of the first Save-On-Foods Kitchen in Calgary in October 2013, the Overwaitea Food Group (OFG) has taken restaurant-style offerings to a whole new level.

The new format dishes up tantalizing family favourites, such as 14-hour slow smoked brisket at the Smoke and Flame BBQ, authentic stone oven pizza, gourmet sandwiches made to order, chicken wings with cool (and hot!) flavours, salad and sushi bar, and much more – all made fresh, right in front of the customer. Take it home, or eat it in the designated seating area.

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KITCHEN

Celebrating 1 0 0 Y E A R S Restaurant-style foods – which go well beyond home meal replacement – give consumers the choice, right in the grocery store, to not only stock their pantries but also to solve their dinner dilemma in one fell swoop, says Mike Olson, vice president, fresh merchandising.

“Let’s say Mom wants a salad for dinner, Dad wants prime rib, and the teenaged daughter is a vegetarian,” says Olson. “They all want something different for dinner, and the primary caregiver in the household is trying to figure out how to deal with all that in an economical way. The grocery store is the economical solution. Families can’t afford to go out for dinner every day, so we look to provide them not only with a high-quality good-value restaurant experience, but also with what they need for their grocery shop. It’s a way of keeping on top of trends in this new day and age when the trend is toward trying to cater to the needs of the individual in the household instead of just the meal.”

The Save-On-Foods Kitchen is another example of OFG president Darrell Jones’ vision of customizing the store to the community it serves.

While the Calgary store was the first of its kind, there are now several Kitchen offerings in Alberta and B.C. “The goal is to provide it to the customers if that’s what the neighbourhood needs and the customers are looking for it,” says Olson. n

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KITCHEN

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TRACKING & SETTING TRENDS You might say the Overwaitea Food Group (OFG) is not only on top of trends, but over the years, it has led many of them.

For example, the retailer has been offering bulk foods for more than 30 years – and technically, since 1915, when founder R.C. Kidd began selling 18 ounces of tea for the price of a pound.

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SUSTAINABILITY

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SUSTAINABILITY

The company began sourcing and selling organically grown produce in the 1980s – long before it became mainstream – and continues to lead in the area of organics and natural foods, with more than 2,300 such products in its stores.

“We are, and always have been, an organization that looks for ways to identify emerging trends,” says Blendle Scott, senior vice-president, merchandising and business

GREEN GOALS

To help focus its environmental efforts, OFG has set out three measurable green goals.

1. SELL ECO-FRIENDLY PRODUCTS: Today, over 90 per cent of the products OFG sells in its stores are recyclable.

development. “This lines up with our customer-service sensibility.” Ethnic foods, health and wellness, and glutenfree are just a few examples in which OFG has been well ahead of the curve, he says.

“We figure out what our customers are looking for, either from a global perspective or in the local communities, and then work to address that quickly and find unique ways to deliver it to them.”

2. ZERO WASTE: OFG pursues ways to eliminate waste, such as: recycle 100 per cent of cardboard, organics, and plastics; reduce solid waste by 20 per cent; reduce water usage by 20 per cent; reduce Western Family packaging by 25 per cent.

3. 100 PER CENT RENEWABLE ENERGY: OFG is improving energy efficiency by

LONG GONE GREEN

upgrading equipment, store designs, and

When it comes to sustainability, OFG has also played

operating procedures. Renewable energy

a leadership role. In fact, its commitment to the

goal is for new stores to be 30 per cent

environment dates all the way back to Kidd’s practice

more efficient than benchmark stores.

of reusing bottles, envelopes, and sacks.

Over the years, the company has established an impressive record for social and environmental stewardship, earning its first national award in 1993, and no fewer than eight awards and accolades since the early 1990s. The company has also been recognized nationally and internationally by several organizations for its industry-leading sustainability initiatives.

Today, through all of its stores and its Western Family private-label brand, the company offers its customers quality eco-friendly products and environmentally sustainable choices like reusable shopping bags, bulk foods, organics, sustainable seafood, ethical sourcing, and local, Western Canadian products.

Fast FACTS n

I n an average year, OFG recovers nearly 200 metric tonnes of plastic film wrap and plastic shopping bags, which are used to make other plastic products.

n

T hrough energy efficiencies in its British Columbia stores alone, OFG saves enough electricity to power nearly 6,000 family homes annually.

n

In 2014, OFG won its seventh award from B.C. Hydro for energy leadership and conservation.

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SUSTAINABILITY

On another front, OFG recycles more than 90 per cent of recyclable materials coming through its stores. Going back to 1990, the retailer established a cardboard recycling program, and recycles up to 90 per cent of the cardboard that comes into its stores – more than 15,000 tonnes every year.

OFG is also committed to developing, building, and renovating stores to be 25 per cent more energy-efficient than 10 years ago. The retailer has been recognized many times by B.C. Hydro for this effort, most recently with the utility’s highest honour, the Power Smart Leader award.

The majority of OFG stores feature a variety of smart technologies designed to reduce energy consumption. For example: • High-efficiency lighting and sensors in freezer cases; • Energy-reduced refrigeration systems certified through B.C. Hydro’s Power Smart High Performance Building program; • Energy-efficient freezer doors; • High-efficiency timed lighting bakery ovens; • Heat recovery and reclaim systems; • Building automation systems that adjust lighting, heating, and air conditioning as needed.

“We’re building some of the most environmentally sensitive grocery stores in Canada, with leading-edge, energy-saving technology,” says president Darrell Jones. n

1/2 pg AD4 Gladclorox

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ANNIVERSARY EVENTS

CELEBRATING A CENTURY! After 100 years in business, it’s time for OFG to celebrate that success.

“We see it as a year-long celebration of events designed to engage and thank the communities for their support of our company for all these years, give them some awesome offers, and have some fun with it,” says president Darrell Jones. The centennial festivities kicked off in February with OFG’s annual Business Leaders Conference. That event culminated in a gala birthday party for trade, partners,

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Celebrating 1 0 0 Y E A R S alumni, media, and local businesses that OFG has supported over the years – more than 900 guests in all. The party also marked the launch of the retailer’s 100th anniversary commemorative book, as well as the first of a trio of three-week in-store promotions, focused on tying OFG’s history and heritage to key pillars of value and innovation. For the first promotion, the company brought back

•

ANNIVERSARY EVENTS

The Travelling Road Show – scheduled to last 100 days – will kick off in late May, visiting every community in which OFG operates.

unique heritage items that it once sold, like Overwaitea Old Fashioned Pink Kettle Corn, Root Beer, and, in a nostalgic nod to its roots, Pure Ceylon Tea. A highlight of those three weeks was a celebration at every store on OFG’s actual birthday – March 8. To mark this occasion, OFG staged a special community event in New Westminster – right near the spot where it all started! The same day, the company debuted its Travelling Road Show installation, featuring a 1915 Model T Ford and other historical artifacts.

The Travelling Road Show – scheduled to last 100 days – will kick off in late May, visiting every community in which OFG operates. The display tells the main story of the retailer within a History Timeline, supplemented by “Fun facts” and “Did you know?” interactive features. Visitors will move

Celebrating DATES

We’re

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February 23-25

Leaders In Action conference

•

February 25-26

OFG alumni reunion •

March 8

Birthday celebration at stores

• February/March; May/June; September

Merchandising and marketing promotions

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May 24 plus 100 days

Travelling Road Show birthday tour

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ANNIVERSARY EVENTS

through a series of information graphics and historical artifact museum displays, mixed with high-tech engagement. The exhibit area showcases OFG’s world-renowned retail innovations, the best and latest in technology, and the economic impact the retailer has had in the communities it has served over the past 100 years.

A major attraction of the Road Show is the Storefront and Antique Car photo opportunity.

Visitors can gather in front of the 1915 Model T, which is positioned in front of a replica of the original 100-year-old Overwaitea storefront.

Automated digital technologies will produce a keepsake that will become a lasting legacy of

A 1915 Model T sits in front of a replica of the original Overwaitea storefront in the Travelling Road Show installation.

their visit.

At the end of their tour, consumers will earn store discounts as a thank-you for their visit. Kids – and the young at heart – will receive a replica tea delivery truck from the early years, bringing the story of the “Overweight Tea” full circle! n

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THE NEXT 100 YEARS

THE NEXT G R OW I NG TO GE TH E R As the Overwaitea Food Group looks forward to the next century – to expansion eastward, new retail formats, and a host of other ambitious plans – it pays tribute to its team members – past and present – who made it all possible.

“The story of Overwaitea is a story of thousands,” says president Darrell Jones. “Everyone who has been – and continues to be – a part of the Overwaitea family has made an immeasurable contribution to the company’s success over the past century. After all, a company does not achieve a 100-year birthday without thousands of people contributing in a big way to make that happen.”

At the same time, the company acknowledges its wide circle of trading partners, with whom it has cultivated longstanding, mutually beneficial relationships.

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THE NEXT 100 YEARS

Locally, OFG’s 1,200 growers, producers, and suppliers in communities across British Columbia and Alberta are very important, not only to the retailer itself, but also to the economic and physical health of the communities they serve, notes Blendle Scott, senior vice-president, merchandising and business development.

On a larger scale, OFG collaborates with suppliers and fellow retailers across the country through memberships in various industry associations. It was a founding member of United Grocers Inc. (UGI) national procurement organization in 1972, created to help smaller retailers and wholesalers remain competitive against the large chains. OFG “is an important member and great supporter of UGI activities,” says Denis Gendron, president of UGI. He explains that “the support and partnership Overwaitea entertains with the UGI suppliers is a win–win scenario that has helped it become the strong retailer it is,”

united grocers inc.

adding that “the future is just as promising.”

“Overwaitea Foods has been, and continues to be, a leader in the Canadian grocery channel,” says Thomas Barlow, president and CEO, Canadian Federation of Independent Grocers (CFIG).

“Over the years, they have successfully adapted to meet their customers’ needs. Their ability to model their stores to suit the needs of the community they serve is a prime reason why, after 100 years in the Canadian grocery business, they continue to grow. We at the Canadian Federation of Independent Grocers are proud that the Overwaitea Food Group and their affiliates are members.”

Industry and supplier partnerships like these have been instrumental, not only in the success of OFG over the years, but also in the betterment of the grocery industry as a whole, says Jamie Nelson, senior vice president, retail operations.

“From its unwavering support of local growers and producers to its contribution to industry organizations, OFG has had an impact that extends beyond its own business.”

OFG’s colourful and storied journey over the past century has taken it from being “B.C.’s very own food people” to serving millions of customers across two – and soon more – provinces as Canada’s largest Western-based grocery retailer. It will be exciting to see what’s “in store” for the next 100 years. n