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CONTENTS
MARCH 2015
39
Focus On: Exports Export markets are often considered an antidote to Alberta’s boom and bust economy. We look at the big picture.
COVER STEVE MCPHEE; PHOTOGRAPH RYAN GIRARD MARCH 2015
ALBERTAVENTURE.COM 3
CONTENTS
DEPARTMENTS
49
MARCH 2015
IR: HEALTH CARE
It Isn’t All About the Price Per Barrel
80
Alberta’s beef industry is getting fat on profit but lean on land; a hitchhiker’s guide to floor crossing in the Alberta legislature; Dot-111s continue to roll
BY ANDREW LEACH
Alberta’s senior housing market is about to see hundreds of new beds. Will it make a difference?
51
83
21
For 50 cents you can buy a dollar – and a lot of land
Moving your business onto the global stage can be an opportunity or a disaster. Here’s how to make it the former and not the latter
BY JODY CHUDLEY
BY SAM MACDONALD
8
Editor’s Note
The effects of the exchange rate, the cost of diluent and other factors all play their role in how well Alberta will weather low oil prices
13
The Briefing
Unhealthy Innovation?
(Don’t Get) Lost in Translation
On the Money
Strategy Session
On flex time, and why now might be exactly the right time to treat your workers well BY MARZENA CZARNECKA
32
Copy Cars
A group of young entrepreneurs watched Car2Go succeed in Calgary but ignore Edmonton. What they did next just makes sense BY TIM QUERENGESSER
C O V E R S T O RY
FOCUS ON: EXPORTS 39
Go for it
There’s no time like now to expand your international markets
86
MEETING & CONVENTION PLANNING GUIDE 55
24
FEATURES 24
Gone to the Dogs
Morinville’s Champion Petfoods has overcome the red tape and is selling into 72 countries
Lunch With ...
Two chefs talk about food, and how to share a vision in an industry with hot personalities BY TIM QUERENGESSER
Meet Up
There’s no question that communication is vitally important to business, and a well-conceived, well-planned, well-run meeting or convention can be a valuable contribution to that end. We help you on your way with our annual planning guide BY SAM MACDONALD
BY MICHAEL GANLEY
42
Measured by patent filings, Alberta lags on innovation in the health-care industry
FINAL ACTS
39
22
Underprepared, Overwhelmed
MEETING CONVENT & IO PLANNING N GUIDE Lists 69
89
You, Only Better
Boutique tube amps from Purdy; Destination: Toronto; galoshes, anyone?
94
Need to Know: Mitch Mercredi
The business development manager for Acden, the business arm of the Athabasca Chipewyan First Nation, is connecting people
44
Temporary Solution, Permanent Problem
Pure Magic
Changes to the Temporary Foreign Worker Program highlight the need for a fairer shake for companies and employees in Alberta BY LYNDSIE BOURGON
The 2011 revolution in Libya decimated Pure Technologies’ international revenue. But boy, has it come back
46
Mascot Maker
Joel Leveille’s world is full of colourful eyeballs, goofy grins and oversized everything
COMING IN APRIL
ALBERTA’S BUBBLY SECRET Few know that Giusti Wines, headquarted in Calgary, is a powerhouse in the international Prosecco market.
TAXING DEBATE With oil prices falling and government deficits looming, we take another look at a sales tax in Alberta, and how business feels about this never-dying debate
Become a fan on Facebook.com/albertaventure.com. Follow us on Twitter @albertaventure
PHOTOGRAPH BRYCE MEYER; ILLUSTRATION DUSHAN MILIC 4 ALBERTAVENTURE.COM M A R C H 2 0 1 5
WHEN YOU SAY “MUST WORK WELL UNDER PRESSURE,” DOES MANAGING A SUPPLY CHAIN IN A COMBAT ZONE COUNT?
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ALBERTAVENTURE.COM
THIS MONTH AT ALBERTAVENTURE.COM
Facelift Time
NEW
You, Only Better!
The magazine is stuffed with stories that get at the heart of doing business in Alberta – the difficulty finding workers and the incredible growth that can result from shrewd innovation. But there’s also a neat link between what’s in the magazine and on the website this month. You read our lifestyles section You, Only Better to sharpen yourself. Well, we’ve done the same, online, and given YOB a facelift. Head here to have a look:
In this month’s new YOB, we feature Edmonton’s boutique amp builder, Purdy Tube Amps. Head to our site to watch and hear local musician Dennis Lenarduzzi put a Purdy through its paces. albertaventure.com/ purdy
VIDEO Pogo vs. Taxi
1. Dave Mowat: Alberta’s Business Person of the Year 2. W hy Edmonton’s 104 Street Is Not a Retailer’s Dream 3. Twin Otter: The Death and Rebirth of a Great Canadian Plane 4. T he Remote Future: More people are working from where they want, when they want 5. Warren’s Alberta Buffet: First Suncor, now AltaLink – what’s next for this guy?
albertaventure.com/thenewyob
VIDEO Turn It Up
5 MOST READ STORIES ALBERTAVENTURE.COM
Edmonton’s Pogo CarShare was started by entrepreneurs looking to emulate the success of car-share companies in other cities, like Calgary has seen with Car2Go. But, um, why bother to use a car share if there are taxis waiting to drive you? Head to our site and watch a head-to-head test drive between Pogo and a cab.
AUDIO Overseas Biz
Tune in for exclusive audio of the CEOs of Champion Petfoods, International Mascot Corp. and Pure Technologies, as they discuss their experiences doing business in export markets. albertaventure.com/ CEOexports
LIST Meeting & Planning Guide
From prairie cities to mountain lodges, we’ve explored it all in our Meeting and Convention Planning Guide. Our full, in-depth list of venues awaits you online. albertaventure.com/ mcpg2015
albertaventure.com/ Pogodemo
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6 ALBERTAVENTURE.COM
MARCH 2015
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Mortgages: How does yours stack up?
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ALBERTA’S
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GOT CASH?
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KEEP IT
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ed Avoid investment scams P.50 s, scal aged chaod the world. They’ve man STOCKWATCH: How Alberta’s 50 biggest conquere and ALBERTA’S performed P.26 mountains PLEpublic BEHINDcompanies IES PEO PANvacation COM MEET THE T-GROWING The hottest properties P.56 FASTES PM #40020055
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VENTURE PUBLISHING TO PRODUCE A MAGAZINE CELEBRATING 5TH ANNIVERSARY OF THE LOIS HOLE HOSPITAL FOR WOMEN
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In 2015, the Lois Hole Hospital for Women will celebrate its fifth anniversary. To commemorate this milestone, Venture Publishing has been selected by the foundation to create a celebratory magazine that will look back at the achievements of the hospital’s first five years and look forward to the opportunities this facility presents for the future. Establishing Edmonton as a leader in health, the Lois Hole Hospital for Women fosters innovation and excellence. The magazine will recognize the people and the innovation that have built this cutting-edge hospital, serving patients from around Alberta and Western Canada. More than 180,000 copies of the magazine will be distributed within Edmonton, throughout Alberta and across Canada ensuring that the story of this first-class Canadian health facility reaches far and wide. Select advertising options are available; please contact Anita McGillis at amcgills@venturepublishing.ca or 403-228-4337 ext. 229 to learn how you can participate in this very special publication.
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EDITOR’S NOTE
UNCERTAIN TIMES Alberta is nervous these days
Join Michael online at BizBeat, where he blogs on major news, including new developments on stories Alberta Venture has covered in the past. albertaventure. com/bizbeat
#AVBIZFIX
The mismanagement of the temporary foreign worker program is a blight on Canada. Whatever good intentions lie behind it, it is ill-suited to solve the diverse labour challenges faced by the provinces. On top of that, it has been co-opted by politics and is unfair to both the people coming from overseas to work, and to the Albertan businesspeople who rely on those workers and who, in many cases, befriend them. Confusion, exacerbated by recent policy changes from Ottawa, has left many in limbo. Those policy changes were meant to crack down on companies abusing the program. As Candace Martin, a community outreach worker at the Calgary Workers’ Resource Centre, says in our cover story this month, “Sometimes employers don’t know the rules and it’s not intentional, but there are the ones that will take advantage of every worker, or the ones who will target more vulnerable people.” What these changes have
resulted in, though, is the many paying for the sins of the few, with the most vulnerable – the TFWs – getting the worst of it (even the acronym – TFW – sticks in the craw. How about “guest worker”?) You can read about some of them, and some of the businesspeople, in our cover story, “Shattered Dreams,” on page 24. The failings of the TFW program only add to the uncertainty facing Albertan businesses. Most discussions these days start with the price of oil, veer around to the value of the Canadian dollar and the strength of the job market, and wind up back with the price of oil. Up or down? When? Those who have lived in Alberta for a couple of decades or have an appreciation for history will recall that Alberta has been through this many times before. In 1989-90, in 1998, and most recently in 2008, following the global financial crisis. And those people with the memory know there is opportunity to grow through crises. Literally. In this
case, a fading Albertan market is an opportunity to branch out and diversify. As the experts say, Albertan businesses should always be working to break into a foreign market or two, to alleviate the pain of the busts. The motivation to do so ramps up during a downturn. Employers look to keep their employees busy and their plants humming. While foreign markets won’t be a salve for all that ails you, they sure can help. In this issue, we bring you our annual focus on exports. We look at the state of foreign markets, speak to a few veterans of the foreign wars and provide a little advice to help you along. We sure hope it works out for you.
Michael Ganley Editor mganley@albertaventure.com @MikeatVenture
PHOTOGRAPH CURTIS TRENT 8 ALBERTAVENTURE.COM M A R C H 2 0 1 5
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THEBRIEFING STEAK HOLDERS
Alberta’s beef industry is both fat and lean
KEEPING CALM
Melissa Blake on how Fort McMurray is holding out
MARCH 2015 CRISS CROSSERS
A voter’s guide to floor crossing in the Alberta legislature
Alberta’s share of Canada’s total population has increased by more than two per cent over the last 30 years
TALKING POINT
CAN ALBERTA SHRINK? Could shrinking oil prices lead to a shrinking Alberta? The short-term evidence suggests that is one disturbing possibility, but history suggests it’s the most unlikely outcome. Still, is this bust different? There have been economic downturns in Alberta since the biggest, back in the 1980s, which lead to recession and stagnation. But the downturns have never led to population losses. From 1980 onward, recession or boom, Alberta has added people year over year as
r eliably as the sun has risen in the east. By 1980 the province was home to more than two million; by 2003, three million; by 2014, four million. By 2041, government estimates say, Alberta’s population will have grown to more than 6.5 million people. And yet there are strange signs emerging in the real estate space. As Alberta Venture went to press, housing markets in Edmonton and Calgary were exhibiting population-leaking symptoms. House prices remained stable
but consider these facts: sales were falling, at rates similar to oil price drops, while new for-sale listings were way up. That appears to be evidence that some are thinking now’s a great time to leave Alberta. At the same time, British Columbia is actively courting laid-off oil patch workers, and a transient population already with weak ties to the province is weighing its options. So this downturn could be the anomaly. But as history seems to argue, do not count on it. – Tim Querengesser
CPIMAGES MARCH 2015
ALBERTAVENTURE.COM 13
THEBRIEFING
74
Percentage of Canadian beef exports that come from Alberta
SPHERE OF INFLUENCE
LAYING STEAKS Alberta’s beef industry faces land battles as healthy prices spur optimism THE BEEF INDUSTRY IS FACING EXCITING TIMES,
and that’s doubly true for Alberta. Think of it as the exact opposite of the price rot currently affecting oil prices: the price of beef is growing, globally, and unlike oil production and supply, which is outstripping demand and killing prices, a shortage of cows is partly behind the spike and resulting windfall for Alberta’s beef producers. For Alberta, some reports say revenues in the industry are up by more than 40 per cent, much of that thanks to strong demand from the Chinese market for finished beef. But, combine the optimism with competition for land among agricultural producers and you realize that 2015 could be decisive for beef, the province’s third-largest agricultural export.
14 ALBERTAVENTURE.COM M A R C H 2 0 1 5
Where’s the beef? Beef producers are optimistic. That’s thanks to strong domestic demand and the potential for growing global demand, spurred by a lower Canadian dollar, growing global population numbers and a strong demand for protein sources in Asia. But there’s a growing – or rather, shrinking – problem: Alberta’s cattle supply is getting smaller. “We haven’t seen any signs that it
will start to expand, yet,” says Rich Smith, executive director of the Alberta Beef Producers. “We’re hoping that we’re sort of the bottom of the inventory, and that it will start to grow. Hopefully, it will happen this year but we haven’t seen signs of that.” The shrinking trend started in 2003, when bovine spongiform encephalopathy (BSE) spread
throughout the herd, restricting Canada’s ability to sell beef internationally, and leading to a herd that peaked between 2005 and 2006, and a subsequent reduction due to low prices. When prices started to increase, the liquidation and reduction of the herd size was in full effect. When prices started rising in the last few years, beef producers started to feel the pinch.
Room to grow Along with a small inventory, there are labour shortages with meat processors and feeding operations that coincide with low cattle inventories, causing worries among cattle producers. “Obviously cattle feeders and the meat processors need the cattle to be here in order to remain viable. There’s a need for [the herd] to begin to grow,” says Smith.
A major challenge facing the cattle industry is competition for land from other agricultural entities – particularly the cropping sector. With limited land, there is also a limitation on herd expansion. Smith says, “We need grassland to raise cows, and the cropping sector has been quite strong. There’s competition for land in this province and that makes it expensive and difficult to acquire.”
Those Blooming Prices Prices for Alberta beef have increased steadily over the past few years, with 2014’s prices being exceptionally high and showing continued growth into 2015. Between January and November 2014, Alberta’s beef exports reached $1.3 billion, up from $962 million in 2013. In the same period, live cattle exports reached $660.8 million. Canfax, an organization that watches trends in the beef industry, reports that in the feedlot sector, those selling
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cattle for cash made record profits in 2014. Cow and calf returns have increased over the course of 2014, too. The number of beef producers with cattle coming into the market who were breaking even steadily increased over the past year, with a marked rise between May and September, Canfax reports.
Increase in the average value of Alberta cull cows over last year
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Step Forward
15-01-28 4:04 PM
THEBRIEFING
was around $10 a barrel. The recession back in 2008 and then the pricing in 2009 were certainly other indicators that we are subject to seeing cyclical pricing. But they’re not as dramatic as people might expect for this one. The nature of the business here is such that the investments are staggering, they’re huge dollars, and it’s not easy for these companies to think about pulling up stakes and going somewhere else that’s more economical. So it’s really a long-term play that we have here and even when we are in the throes of low prices, we still have business to maintain.
Who: MELISSA BLAKE Age: 45 Position: MAYOR, REGIONAL
MUNICIPALITY OF WOOD BUFFALO CV: Born in Quebec; Bachelor of Administration, Athabasca University; formerly worked in HR at Syncrude
AV: Surely the price collapse has reignited talk of the need to diversify your region’s economy, though? MB: That’s always at the forefront of my
mind and many in the community as well. The difficulty that we face is that the dominant industry here, which is the one capable of giving us the means of creating more diversity, is one we would rely on for quite some period of time. But it’s through the developments that are built for that industry that we can make sure we have a viable future, by taking us down a different path. AV: Can you give me some examples? MB: If we look at any of the service supply
VERBATIM
NORTHERN EXPOSURE Let’s face it: the price of oil is all anyone can talk about in Fort McMurray, right? The mayor of the Regional Municipality of Wood Buffalo, Melissa Blake, says it just isn’t so. While the tumbling price of crude has affected her region, she says the energy industry is invested there for the long term. In light of that, Blake says she’s looking to position McMurray for any recovery in commodity
16 ALBERTAVENTURE.COM M A R C H 2 0 1 5
prices in the near horizon, and what she sees as a coming shift northward for resources over the long term. AV: How do you see the municipality and city in light of the downturn in oil prices? MB: To consider the impacts of the low-price
oil environment, we just need to look at our history. When I first got elected in 1998, oil
side, it’s still serving industry directly, but as I consider what that might mean for the future, [Wood Buffalo] isn’t the right place for putting in manufacturing. We have expensive land and we have a limited labour supply. So the future for me is one that will strike a balance somewhere down the road. I think natural resources are a big part of Canada’s legacy to the world. If we think about what we’re experiencing in Wood Buffalo right now with the oil industry and its development, some of that infrastructure will serve the future when we look further north and think what might be happening in the Northwest Territories. And rather than evaporating entirely, it would be nice for us to be able to serve markets further north than us even. AV: Are you saying there’s interest in Fort McMurray in the proposal to build a pipe through the N.W.T., then? MB: No, it’s not about pipe. It’s about service
supply. Just how Edmonton and its regions PHOTOGRAPH JIMMY JEONG
serves the [northern Alberta oil sands] industry right now, because that land supply base being so expensive and labour supply limited and expensive as well, we get things from further south. When the economy starts to shift, we’d like to be a service supply centre that makes it more viable to serve other industries. AV: So essentially Fort McMurray would become the hub for energy production in the N.W.T.? MB: It could potentially be in the future, and
I’m not talking the next two decades; it’s probably a bit further than that. I only know that if we’re creating infrastructure now that it should have that multi-purpose. I just think
that as a nation we need to look at what are our opportunities down the road. AV: But there is still a downturn in your region, no? MB: Yes. Even before lands became available,
we were seeing more housing availability in our marketplace. Things started slowing before the oil price shift had begun, but I would suggest that the slowdown really, in terms of the real estate and peoples’ resale values, it’s just a matter of ensuring we have the ability to turn the tables quickly if that commodity price goes back up. Keep in mind that new developments will be stymied as well.
UPDATE
DOT-111s CONTINUE ROLLING
– As told to Tim Querengesser
OILERS INC.
THE GENERAL (MIS)MANAGER IN DECEMBER, EDMONTON OILERS GENERAL MANAGER Craig MacTavish held a combative press conference to express support for head coach Dallas Eakins (whom he fired a week later), and he famously refused to take responsibility for the team’s failings, saying he’d only been on the job for 18 months. We wondered how that response would play out with the business management crowd, so got in touch with Richard Powers, a senior lecturer at the University of Toronto’s Rotman School of Management.*
On Daryl Katz not being at the press conference: “The owner is like the board of directors. He hires the operational people– the GM and so on – who hire the coach. That’s the hierarchy and that’s
how it works.” Ergo, Katz gets a pass on this one.
On MacTavish avoiding responsibility: “I’m not saying he has to go, but he can’t be saying, ‘This happened before my watch.’ Maybe there’s a year – maybe – where you have that honeymoon period. But after that? It’s yours.” A week later, MacTavish fired Eakins and took some responsibility, saying “There’s blood all over my hands in this, too.” No duh. On the ultimate, final responsibility: The team continues to flounder, with
Lowe and MacTavish still in charge. “It’s a bit unfair to do their performance review through the press, but at the same time, their record speaks for itself. In a corporate environment, they’d be gone. And if [the GM is] not accepting responsibility, that’s where I’d be concerned as an owner.”
*We went outside the province, concerned that an unbiased source could not be found in Alberta – Ed.
EVER SINCE 47 PEOPLE WERE KILLED
in Lac-Mégantic, when puncture-prone DOT-111 tankers carrying crude exploded, Canadians have waited to see what government would do. Last year, Alberta Venture reported on the fallout. Since then, proposals have been plentiful, but progress less so. On April 2013 Transport Canada ordered the 5,000 most dangerous DOT111s – those lacking continuous bottom reinforcement – either immediately removed or repurposed. But it’s unclear how many cars were actually pulled. On January 11, 2014, Transport Canada also ordered new tankers be built with thicker steel, head shields and valve-fitting protection. And 65,000 tankers built before 2014 must be refitted by 2017. While industry complained, it says some 50,000 new tankers, the safer CPC-1232 design, are on order. Still, 265,000 DOT-111s roll around North America. Some railways, including CN and Warren Buffett’s BNSF Railway in the U.S., now charge oil companies a levy to move product in DOT-111s; Canadian National has charged about an extra five per cent since last year. And, on January 1, BNSF began charging an extra $1,000 per older tanker car. – Anthony Davis
MARCH 2015
ALBERTAVENTURE.COM 17
THEBRIEFING ON THE MAKE
BACKPAGE
SCHOOL’S OUT
DOUBLE CROSSERS
Snoday Skis does custom builds, right down to inlaid mahogany veneers
LAST YEAR’S DEFECTION OF NINE WILDROSE
MLAs to the Progressive Conservative party was summarized in the media by pithy ‘un’ words – undemocratic, unconscionable and unprecedented. And yet, while the former words hold true, floor-crossing is a kind of regular event in Alberta. Here’s a who’s who of the crossers in the past five years.
Rob Anderson on • nders Rob A
•• rson nde A b Ro John Hromyk used to race. Now, he makes custom downhill skis
• ith † lle Sm Danie
When Cochrane-based accountant John Hromyk was plying his previous trade as an alpine ski racer in Europe, he visited the “race rooms” of some of the world’s top ski manufacturers. “They were small areas in big factories under tight security and there were a bunch of guys in white lab coats running around building skis,” he says. More than a decade after his racing career ended in 1994, Hromyk created a business that would allow him to continue his passion. The result is Snoday Skis, in Cochrane, which, he says, makes skis well-suited to the eastern slopes of the Rockies, “where in one day we can experience any kind of condition. You can have powder on top and glare ice on the bottom. Rather than having to compromise, we build skis that will tackle it all.”
18 ALBERTAVENTURE.COM M A R C H 2 0 1 5
The company has also managed to find favour with heli-skiers who want big powder skis and the back- country crowd who like theirs light. “The key is that the technology is scalable now,” Hromyk says. “What was unavailable to us 15 years ago is available now, through computer-controlled routering and other processes. That gives us the precision we need and at the same time we handcraft the finish and can make a made-to-measure product.” Right now, Snoday produces about 200 pairs of skis a year, although Hromyk’s goal is 500. He expects some of that growth to come from the corporate sector. “We give them the option of buying branded skis and writing them off for their business,” he says. “That’s where the accounting side of my world comes in.”
Jason Hale •
PHOTOGRAPH CHRIS WEDMAN
THE CROSSERS Wildrose
Gordon Dirks ‡
2014 2014 2014 2014 2014 2014 2014 2014 2014 2014 2014
Ian Donovan Kerry Towle Danielle Smith Gary Bikman Rod Fox Danielle Smith Bruce McAllister Blake Pedersen Bruce Rowe Jeff Wilson Rob Anderson
Wild –> PC Wild –> PC Wild –> PC Wild –> PC Wild –> PC Wild –> PC Wild –> PC Wild –> PC Wild –> PC Wild –> PC Wild –> PC
Progressive Conservative
2010 Dave Taylor Lib –> Ind 2011 Bridget Pastoor Lib –> PC
2009 2010 2010 2010
Independent 2010 Guy Boutilier 2011 Raj Sherman
Ind –> Wild Ind –> Lib
No crossers for the NDP
PC –> Ind PC –> Wild PC –> Ind PC –> Wild
THE OUTSIDERS 2014 2014 2014 2015 2015
New Democrat
Guy Boutilier Rob Anderson Raj Sherman Heather Forsyth
Alison Redford Stephen Mandel Gordon Dirks Rob Anderson Raj Sherman
PC –> Palm Springs Retirement –> PC Sask. Legislature –> PC PC –> Private Sector Lib –> Private Sector
Raj Sherman †
Gary Bik man
Liberal
•
Blake Pedersen •
Ro dF ox •
Heather Forsyth •
Jeff Wilson • llister • Bruce McA
Gu yB ou til ier
• Rowe Bruce
Bridget Pastoor •
Raj She rma n• •
••
Dave Taylor • Raj Sher man • Guy Boutilier •
Stephen Mandel ‡
Alison Redford †
† ‡
Former Party Leader Minister
• ••
First Floor Crossing Second Floor Crossing
*Seating Plan based off the 28th Legislature Third Session (Fall Sitting)
MARCH 2015
ALBERTAVENTURE.COM 19
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ON THE MONEY BY JODY CHUDLEY
WHEN CASH IS KING
For 50 cents you can buy a dollar, and a lot of land THE PLAY Do you know anyone interested in buying land in a highly prospective new horizontal light oil play? No, seriously do you? Because I can’t seem to find anyone. The companies that you would usually expect to have an appetite for such oil bearing land have bigger concerns. Their stock charts basically look the same over the past six months, down and to the right. The very worst charts are reserved for the more leveraged and smaller companies, many of which have balance sheets designed for oil prices that are twice the current level. And the lenders who helped them build those balance sheets are now more interested in getting their money
back than lending more. We just don’t know if oil prices are going to stay down for three months or three years. Welcome to the roller coaster ride that is the oil business. For a while there, oil prices stayed in a pretty narrow (and high) range and we forgot that the oil game could be a bumpy ride. But we sure remember now. Only the very strong hands are able to even think about making an acquisition in this environment. But while the oil producers hunker down and focus on survival, it seems hard to believe that this isn’t a tremendous opportunity for investors. Not only are stock prices of energy producers beaten down, but
the stock prices of companies with pristine balance sheets are beaten down too. It isn’t often you can pay a bargain price for high quality. Usually, bargains come with more than a few strings attached. But there are a few to be had, and one of them is in the Torquay formation (known as the Three Forks in North Dakota) which lies underneath the Bakken in southeast Saskatchewan. Crescent Point Energy tipped the investing world to the potential of the Torquay back in April of 2014 when it announced that it had accumulated Torquay acreage that had the potential to be equivalent in size to the company’s Viewfield Bakken play.
THE PICK
Powder Mountain Energy (TSX.V: PDM) 1.2
0.8
0.4
0
Jul 2013
Sep 2013
Nov 2014
Jan 2014
Powder Mountain Energy is a small, Calgary-based company that isn’t leveraged. In fact it has a pristine balance sheet. The company was formed part way through 2014 when Passport Energy (which had assets) merged with Amarok Energy (which had cash) and a private placement was completed. Powder Mountain has an interesting land base with 40 sections of exposure to the Torquay. As you might imagine, with oil prices under $50, interest in a company like Powder Mountain that has raw land but little production is limited. The reality is that at $50 per barrel oil, raw land in a horizontal oil play is worthless. However, if you believe oil will hit $80 per barrel at some point in the next couple of years and that it oil averages that kind of price and higher over the next 10 then that acreage likely has considerable value.
And Powder Mountain has something else worth considering: cash. It has 48 million shares and a share price of $0.37. That equates to a market capitalization of just $17 million. As of September 30 (last financial statement date) Powder Mountain had $34 million of cash on its balance sheet and no debt. In its January 2015 news release the company confirmed that it still had $33.3 million of net cash. A stock price of $0.37 and a value of net cash per share of $0.70. That seems like a good deal. Plus they have a significant amount of land that at one point was thought to be worth quite a bit of money. If you could buy the entire company for the current share price of $0.37 per share you could then dividend out to yourself $0.70 per share in cash and still sit on 40 sections of land in an area that larger players were quite keen on in a better oil-price environment.
THE POSTSCRIPT This one seems like a good way to play a rebound in oil prices. There is likely a pretty easy double or triple here if oil gets back above $80 and to get that exposure you are paying half of the value of the cash the company has. At current prices Powder Mountain seems to be heavy on the reward, and pretty light on risk. That is the way we like it.
Jody Chudley is the author of The Punchcard Portfolio, a value-oriented newsletter with a focus on Canadian oil and gas stocks. He does not own shares of Powder Mountain Energy
MARCH 2015
ALBERTAVENTURE.COM 21
THE STRATEGY SESSION BY MARZENA CZARNECKA
LEVERAGING FLEX WORK IN A DOWNTURN Now might be exactly the right time to treat your workers well
H
ey. I’m calling you because of Sue. You know Sue? Your top potential who’s been negotiating with you for the last few months about formalizing her flex-work arrangement, getting it all down in writing? Yeah. So Sue says you’ve just sent out a memo – on paper, no less; what’s wrong with you? Do you hate trees? – giving your employees the heads-up that because of the current economic climate, you’re tightening the belt, battening down the hatches and doing all the responsible and necessary things to ride out the storm. (A cute if tautological use of clichéd metaphors – we all do it when we get stressed, but hitting those three in one sentence, that took some effort.) And Sue’s terrified this means her three-days-in-the-office, the-rest-wherever-the-hell-she-likes-so-long-as-she-gets-her-work-done arrangement is going to … What? I see. You’re laying off two of Sue’s colleagues and so she’s going to need to work harder – and she should be happy that she’s getting to keep her job – and you need her on the spot to ensure that she’s producing … Oh, sweetie. I am so disappointed. I expected better from you. No, it’s not because I’m in Sue’s corner. Obviously, I am. I am the unabashed advocate for everyone and anyone who doesn’t want to languish in a corporate tower five days a week, who chooses to step off the “this is the way our forefathers have done it and so it shalt be” beaten path. I am so disappointed because I thought you – being so quick-and-clever and forward-looking and all, so much more so than your competition – I expected that you would know better. I get the tendency to react to a crisis (I’m sorry; I did promise to stop calling it a crisis, didn’t I? I guess I lied, but I promise you, I won’t call it a bust, not this time; it’s not, just a downturn) by putting a full stop on change and moving forward. Never mind that it’s stupid and costly and almost never the right thing to do: it’s the reptilian brain instinct and we all do it. Freeze! So here’s the thing. Put that plant on hold, don’t take on new office space, can the plan to redesign your logo if you must, but keep on bending over backwards to let Sue and her cohort work where and how they want to. Here’s why. First, she’s already doing it anyway. She’s more productive – in the way you define it – in the two days out of office she spends working her way. That’s when she gets most of her work done. The time she clocks in at the tower? At least some of it’s just for show. And it’s not just her. You know this, right? It’s you too.
“Show me an executive that doesn’t workshift,” says Robyn Bews, executive director of Calgary-based WORKshift. “Show me an executive that comes into the office at eight and punches out at five or six. That’s just not the way people work.” But we’ve been through this before, right? And you bought into it. You get the arguments for … but that was when things were good and oil was high, or at least, not in the toilet. But now … But now, baby, it’s more important and more beneficial to you than ever. Listen – you just laid off two of Sue’s colleagues, right? Does that mean Sue is going to do less work? No, of course not: she’s going to need to do more. With less support, in a more stressful environment. Here are the questions you should be asking yourself as you look at Sue. To quote Bews: “How do I make you happy? How do I keep you from burning out? How can I give you more respect and more control, as a professional, over your schedule?” Here’s the answer: follow through on your flex-work arrangement with Sue! And everyone else who wants one. Wait, I haven’t got to the really good part yet. You’ll appreciate this, as you tighten your belt (by the way, it doesn’t work unless you actually lose the weight, you know what I mean?). Bews has an assignment for you. It’s, what, 9:15 a.m.? Perfect. Walk through your company. And count the empty desks and offices. Now ask yourself … why in Peter Lougheed’s name are you paying for all this empty real estate? “In most organizations, people are already working remotely,” Bews says. “They’re working in coffee shops, at partner sites, on airplanes, at home – wherever they need to. And yet organizations continue to pay for a piece of real estate that is grossly underutilized.” You’ve just laid off (yes, I’m going to keep on saying lay off – because you did it – and it’s a word – and it’s a fact of life in cyclical Calgary – and not talking about unpleasant things does not make them disappear; suck it up, princeling) two of Sue’s colleagues. You’re still paying for their desks … think about that. No, I’m not telling you to sublet your space! Who’d take it now? But we’re all Albertans here. We know how this goes. As Bews puts it, “When we come back, we come back fast and we come back strong.” And then, we pay through the nose for those desks nobody uses. ILLUSTRATION CHRISTIAN ROSEKAT
22 ALBERTAVENTURE.COM M A R C H 2 0 1 5
So be smart and do this. Ask yourself, can you use your existing footprint to accommodate more people as you grow in the future? When we’re firing on all cylinders, we don’t have time to think and reflect. Do it now. Revisit your real estate strategy. Do you need a desk for every single person in your office? Maybe what you need instead is more collaborative spaces for your people to hang out and brainstorm and socialize? (Yes, some of your people only need to come into the office to socialize. You know this. I know this. How about you make that part of your planned space? Crazy, I know.)
“ Every other part of our lives has changed, from the way we communicate with our spouses, the way we shop, plan vacations – everything. Except this. Too many of us still work like we did in 1997.” – Robyn Bews, executive director, WORKshift
Repeat after me, very slowly, and as many times as necessary for it to really sink in: flex-work arrangements do not cost you money. They save you money. What? But there was that one time you tried telecommuting and it was a disaster … Right. That was in 1987. And the world has changed. “We live in 2015, but we work in 1992,” says Bews. (She’s quoting a workshift meme, by the way, but we cannot find its original source). “Every other part of our lives has changed, from the way we communicate with our spouses, the way we shop, plan vacations – everything. The world has changed, and we’ve changed with it – in almost every way. Except
this. Too many of us still work like we did in 1997.” Except … we don’t, right? Not really. We work the way we have to in 2015 … within the constraints of a world and a work culture created in the 1900s. Let’s stop. So. Back to Sue. Who’s going to be stressed, overworked and under-supported. Staring at empty desks … hating you for not following through on your word … keeping her resumé nice and current so as soon as the economy picks up – and you know it will – she can jump ship to someone who’ll give her that work arrangement she needs. When you get off the phone with me, I want you to text her – no, for heaven’s sake, don’t call her, that’s so intrusive! (I’m sorry I called, by the way, but this was really important; I wanted you to hear me scream) – I want you to text her and tell her you’ll ink her flex-work plan. In fact, if she thinks two days, or three mornings, at the office is all that she needs – you’re good with that. You value her. You trust her – that’s why you hired her, kept on promoting her. You know she’ll do the work. And you hope she stays with you during the batten-down-thehatches storm. Thank you. Oh, I do realize you should be thanking me. I’ve totally saved your butt – let you keep Sue, who would have been out of there come first available opportunity – and possibly halved your lease costs. But you know. I do appreciate you doing the difficult thing. And moving forward. Progressing. Changing. Even though your reptilian brain is telling you to freeze. AV
Marzena Czarnecka is a Calgary-based business and legal affairs writer. She can be reached at paddleink@gmail.com, stalked @paddleink on Twitter, and visited at calgarybusinesswriter.com. For more insight on managing your business, visit albertaventure.com/ strategysession
OUR EXPERTS RECOMMEND Rebooting Work: Transform How You Work in the Age of Entrepreneurship, by Maynard Wood
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C O V E R S T O RY
TEMPORARY SOLUTION, PERMANENT PROBLEM BY LYNDSIE BOURGON | PHOTOGRAPHY BRYCE MEYER
Changes to the Temporary Foreign Worker Program highlight – for both Alberta businesses and their temporary employees – the need for a clearer path to permanent residency >
24 ALBERTAVENTURE.COM M A R C H 2 0 1 5
“You know that feeling, when you’re sleeping at night and your phone rings, you don’t know what it’s going to be? Am I going to have to leave Canada?” – JUAN DE LA CRUZ
MARCH 2015
ALBERTAVENTURE.COM 25
It was March 2013 and Lenore Rivera*
arrived in Calgary from Makati, a city outside Manila, in the Philippines. At a job fair in Manila, a representative of a fast-food outlet within a convenience store in Canada offered her a two-year contract to manage one of its locations, and she accepted. A hotel in Kuwait was also offering her a front-of-house management job but Rivera turned it down for job in Canada, leaving her two daughters in the Philippines and her budding career in hotel management behind. “I was full of hope,” she says. Rivera is in her 40s. She’s slight but confident and punchy, someone who seems up for a challenge. And she’s got one. Rivera is in Canada as a temporary foreign worker, or TFW. This spring will mark the second anniversary of her arrival. She earns about $17 per hour managing the fast-food outpost, where she works full time. But on March 17, her work permit ends, and as of early January she still had no idea if she would be able to stay. A year ago, on February 5, 2014, Rivera filed an application for permanent residency with Citizenship and Immigration Canada, which her employer supported financially. She received an initial file number for her case but little has happened since. “So, I will celebrate that anniversary, and I’m still hoping I can get my papers before my contract ends [in March],” Rivera says. “I haven’t heard anything. They told us just to wait.” Rivera is trapped within a shifting web of red tape. The new rules Ottawa introduced for temporary workers have left thousands of workers and the businesses that depend on them in Alberta in a similarly frustrating and expensive limbo. The stricter rules were created last summer as public pressure mounted, thanks to high-profile cases of program abuse. But they have also created a murky outlook for those already in Canada. All through the winter holidays and into the New Year, Rivera continued to work, attending information sessions and speaking with a CIC consultant about her application for permanent residency. Meanwhile, the company she works for appealed a decision to deny their application to renew her work permit, as is. Service Canada now wants them to increase Rivera’s wage to $24.75 per hour, a salary they have told Rivera they can’t afford. “This is my agony,” Rivera says. “I’m helpless.” So too are the businesses in Alberta that depend on people like Rivera in the face of a lack of Canadian citizens willing to do the job they have to fill.
The Temporary Foreign Worker
Program (TFWP) is actually a catch-all term that encompasses a variety of different paths people who are not immigrating to Canada can take to work here, whether that be as live-in caregivers, vegetable pickers, construction workers in the oil patch or as frontline staff in the retail sector. As of 2013 there were 44,989 temporary workers in Alberta (the highest number in any province in Canada), compared to 36,366 permanent residents. While the number of temporary foreign workers has increased substantially in most provinces, it’s been most remarkable in Alberta, which is now home to about 20 per cent of all such workers in the country.
26 ALBERTAVENTURE.COM M A R C H 2 0 1 5
But businesses using TFWs have come under increasing public scrutiny. In early 2013, RBC found itself embroiled in scandal after news broke that it was replacing Canadian workers with temporary workers (and having the Canadians train their replacements, no less). Soon after, the C.D. Howe Institute released a report suggesting that the foreign worker program had spurred unemployment in some parts of the country. A backlash ensued and Ottawa responded, in April 2014, placing a moratorium on the ability of the food service sector to access the program. It promised a complete program overhaul by June. For once, Ottawa kept its promise. Changes to the program include the introduction (and subsequent increase) of application fees for TFW applications by businesses, and new assessment criteria and stricter rules for the food services, retail and accommodation sectors. A cap on the proportion of low-wage temporary workers a company can hire will also be slowly phased in over two years. It’s thought that the cap could cut the number of temporary workers entering the country in half. Workers can now only stay one year (instead of two) before having to renew their permit, and employers have to jump through more hoops in the job posting and interviewing process to ensure Canadians can’t fill the roles they are hiring. Business owners in Alberta say the effects will be almost crippling. Perry Batke, general manager of two Best Western and Days Inn hotels in the Leduc area, outlines the many steps he’s taken to get Canadians to work in his hotels: when his company was hiring a front desk agent last year he received applications from 20 people and he extended interview invitations to all of them. Only five agreed to an interview and only one prospect showed up. “It’s a challenge,” Batke says. “There have been some companies that have made mistakes [using the TFWP] and you can’t hide from that, but it clouds the vast majority of people involved in this program that are honest and operating at the highest levels of integrity.”
All changes to the TFWP are felt
acutely in Alberta because of the province’s endemic labour shortages and low unemployment numbers. Still, critics of the TFWP – and there are many – argue that foreign workers are being prioritized for positions over Canadians because, they contend, these workers’ cost employers less. The government counters that, on average, temporary workers are paid market wages and always above minimum wage. Nonetheless, public perception came to believe that masses of workers were in low-paid service positions, taking jobs from Canadians that needed work and putting up with harsh work conditions that Canadians would be more likely to complain about. The Calgary Workers’ Resource Centre, an advocacy and legal assistance group, says its temporary worker caseload is disproportionate – only about four per cent of all Calgarians are temporary workers, but about 11 per cent of the centre’s clients are. “Sometimes employers don’t know the rules and it’s not intentional,” says Candace Martin, a community outreach worker at the CWRC. “But there are the ones that will take advantage of every worker, or the ones who will target more vulnerable people.” In 2014, the CWRC saw 88 clients who identified as TFWs. > *Names of all temporary workers have been changed to protect their privacy
“I’m still hoping I can get my papers before my contract ends [in March]. I haven’t heard anything. They told us just to wait.” – LENORE RIVERA
MARCH 2015
ALBERTAVENTURE.COM 27
“There’s a structural labour gap in Canada.” – PERRY BATKE, GENERAL MANAGER OF TWO BEST WESTERN AND DAYS INN HOTEL LOCATIONS IN THE LEDUC AREA
28 ALBERTAVENTURE.COM M A R C H 2 0 1 5
In part, the stricter TFW rules are meant to address this criticism. But the difficulty business and workers have understanding these shifting rules is evident. With Ottawa’s changes to the program, businesses now have to commit to recommended hourly wage rates and must advertise the positions to Canadians across four separate platforms for four weeks. There is a cap on the percentage of a business’s workforce that can be temporary workers, which will eventually amount to 10 per cent. And the Labour Market Opinion process, which proves the need for a particular job to be filled by a foreign worker, has been replaced with a more rigorous Labour Market Impact Assessment, which now costs $1,000 instead of the previous $275. The fee itself was only instated in April 2014. (To add to the confusion, as Alberta Venture went to press, Employment Minister Jason Kenney announced transitional measures to allow TFWs who arrived in Alberta in 2011 or earlier a stay of deportation. Previously, these work contracts were set to expire on April 1, but Kenney has offered these workers eligibilty for a one-time, one-year ‘bridging’ permit.) Batke has been relying on the TFWP since 2005. At first, the temporary workers he hired were filling housekeeping and room attendant positions. But now they’ve broadened it out, hiring food and beverage servers, line cooks and front desk agents. “Absolutely, we need them,” he says, of the 27 foreign workers he currently employs. “There’s a structural labour gap in Canada. We go to job fairs, advertise, work with internships programs and hire people from Eastern Canada, but what we’ve experienced is there’s not enough Canadians that want to do these jobs that are available.” Batke says at the moment that about 30 per cent of his company’s employees are temporary workers. But ever since June’s changes, Batke says he has been bogged down by process. He says the labour market application forms have structurally changed multiple times, and that even Service Canada employees seem to be confused about what requirements must be met. He likens the changes in the program to a yo-yo for both his business and the TFWs he employs. Already, one of his line cooks was forced to return home in November, and that position is still vacant. “It’s throwing them into turmoil,” he says.
assessment, and so she waits for either permit to come through. The processing time for spousal sponsorship applications is 16 months. “It’s our future, our lives and our family,” Castilleo says. “It’s really frustrating.” “There seems to be no confirmed process,” adds Rivera. “We came from a Third World country where the system sucks, but now what is this?” The issues that plague the TFW program are complex because they quickly become about more than just economics – you cannot separate the business side of the TFW situation from the political and social sides. “People come to work so they can live,” says Beba Svigir, CEO of the Calgary Immigrant Women’s Association. What many of Alberta’s businesses, and many temporary workers, are calling for is predictability. Right now, unstable ground isn’t good for anyone. “Businesses are feeling set adrift by these changes,” says Dan Kelly, president of the Canadian Federation of Independent Business. “A response to a political problem has sadly created a major challenge for small and medium enterprises in Canada.” His membership needs junior level staff that can work consistently, picking up the slack when part-time Canadian workers can’t fill in. “But right now, they have virtually no access to the program,” he says. And the workers feel that they are not provided with accurate, up-todate information. During the meeting at CIWA, one woman mentions that her husband’s application could take six months to process. “No, currently it’s 24 months,” Castilleo says. “The last I heard was 16-18 months, but they changed that again,” says Rivera. “But there is no explanation whatsoever.” “I don’t believe anything they say,” Castilleo says. Ken Kobly, president and CEO of the Alberta Chambers of Commerce, says most businesses use TFWs because even a full stable of part-time Canadian workers won’t provide the stability they need. “They can cover the base level with temporaries, to handle the rush hours in food service, for example,” he says. And the argument that it’s cheaper to hire a TFW doesn’t hold. “When you factor in the price of a Labour Market Opinion, the cost of bringing them from another country and putting them up, we estimate that number to be $14,000 per foreign worker.”
On a snowy January afternoon,
Rivera and three other temporary workers from the Philippines (most of Canada’s temporary workers are from there) met in a windowless room at the Calgary Immigrant Women’s Association. They are all experiencing troubles through the program. Some were now unable to work and waiting for permits, and have spent time volunteering at CIWA. Rivera sat next to Angel Castilleo, who came to Alberta as a food and beverage server in 2012. When she arrived, her employer asked her to take on jobs in different departments and she felt uncomfortable, so she quit. “There are a lot of unfair situations, but sometimes employees are afraid to complain because they can lose their job,” she says. Now she’s trying two separate routes to stay in the country – her common-law partner has applied to sponsor her to stay in Canada (which would give her an open permit, meaning she could apply for any job), and she’s found a job that’s technically classified as highskilled. That employer has submitted a labour market impact
Juan De La Cruz is one of those
“stable temporaries” at a fast food restaurant. Since 2009 he has been working at a fast food chicken restaurant that hired him at a job fair in the Philippines in 2009. He was 42 at the time, “kind of old back home,” he says, and he had worked for 18 years at a pizza company. “I was lucky to be picked,” he says. “Out of 1,000 people there, [they chose] less than 30.” In November 2013, De La Cruz and his company filed an application to renew his TFW permit. But eventually, the company’s HR department said he was denied because Service Canada had asked them to advertise the position on a broader scale. Then June came, with its changes and moratoriums and limbo. “You know that feeling, when you’re sleeping at night and your phone rings, you don’t know what it’s going to be?” he says. “Am I going to have to leave Canada?” > MARCH 2015
ALBERTAVENTURE.COM 29
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He was out of work for six months, while he tried to settle his permit problems. De La Cruz has a friend who is an immigration consultant, who helped him renew his permit. “It’s been really hard without any work,” he says. “I was looking at the dictionary and I think I was on the border of anxiety and depression, because how you can survive without supporting yourself?” He had opened a TFSA when he arrived in 2009 and had been saving small amounts of money each month, but he used that money for living expenses when he was out of work this fall. And he had to pay $1,200 out of pocket for the additional consultant work. He says he found solace in daily phone calls with his wife back home, and through his church. De La Cruz received his renewed permit on December 23, 2014, and as of the beginning of January was waiting to hear from his employer when he could go back to work. He is hoping to be approved for his permanent resident application, so that he can bring his wife and 17-year-old daughter over from the Philippines. “The TFW program was arguably a Band-Aid solution for us, anyway,” says Dave Kaiser, president of the Alberta Hotel and Lodging Association, an industry that relies heavily on temporary workers. In many cases their membership has found it difficult to find staff for remote lodges that require 24-7 service. “Our need is for a more permanent immigration solution. There is demand from foreign workers who want to stay permanently. If we could do it in a way that we’re prioritizing some positions and where they’re needed, that should work,” he says. Batke, who’s part of the AHLA, says nationwide programs like the TFWP lack regional understanding. “What exists in Ontario is a different situation than when you’re in a region with four to five per cent unemployment,” he says. “I implore the government to look at regional needs.” Both the Alberta Chambers of Commerce and the CFIB have presented alternative permit programs that they hope the federal government might consider. For Kobly and the Chambers, that means implementing a system where the provinces have more control over their immigration system. “We need something controlled by people who understand Alberta,” he says. “It’s a systemic issue that’s not going to go away, but we know what’s happening on the ground in our own province.” The CFIB is proposing an “Intro to Canada” visa, which would replicate the TFWP to permanent residency path for foreign workers. “They would come for a one-to two-year period, and after that they would automatically qualify for permanent residency as long as they met the objective and abided by the rules,” Kelly says. “It would replace the temporary with a pathway to permanent residency.” Kolby focuses on semantics, too. “They need to get rid of the name ‘temporary’ and even ‘foreign’,” he says. “Why don’t we just call them guest workers? It’s common elsewhere in the world.” He says that Canada has broken a promise, and that the TFW program could be used in a more effective way as a screening for permanent residency. “What a great probationary period for Canadian citizenship,” he says. “It creates stronger communities.” He echoes the sentiments of Prentice earlier this year – Alberta is not a work camp. “We need people to move here who are willing to stay here. That’s the real issue.” And, he notes, it’s not like we have the luxury of turning anyone away. “We can’t just sit back and say that we’ll choose who will come. The immigrant is choosing where they shall go.” AV
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Adam Rozenhart takes a look at Pogo albertaventure.com/pogodemo
32 ALBERTAVENTURE.COM M A R C H 2 0 1 5
Copy
Cars A GROUP OF YOUNG ENTREPRENEURS BRINGS CAR-SHARING TO EDMONTON. BUT WHAT’S THE END GAME? By Tim Querengesser Photo-illustration Ryan Girard
>>
MARCH 2015
ALBERTAVENTURE.COM 33
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few years ago, Kieran Ryan would walk to work in downtown Calgary and see Car2Go Smart Cars parked everywhere. He owned a car, but only drove it on weekends and considered selling it. So, when the Daimler-backed car-share company arrived in Calgary, in July 2012, Ryan became a member and loved the convenience – it was a car where and when he needed it, without the hassles of ownership. And every time he walked by the cars or drove them, Ryan’s mind drifted to his hometown, Edmonton. Why wasn’t Car2Go there, too? Today, the 29-year-old entrepreneur has quit his high-paying job at a Calgary energy company and returned to Edmonton. He’s here to help run a new startup, Pogo CarShare, which he co-founded. And Ryan came to Edmonton in no small way because Car2Go, the largest car-share company in the world, said it was not. Back in May, Alberta Venture asked Car2Go if it planned to expand to Edmonton in light of its Calgary success. “Although we are certainly interested in bringing our car-sharing service to Edmonton and have received multiple suggestions to expand, we are currently not deploying any vehicles to the city,” said Margot Piper, a spokesperson for the company. Piper’s answer was frustrating for some. “I was envious of Calgary,” says Hannah MacDonald, a 27-year-old environmental scientist in Edmonton who had seen Car2Go on visits to the city and who is now a Pogo member. “[Car2Go] seemed like an obvious thing to have in a city of our size.” Indeed. By the fall of last year, Edmonton, Canada’s sixth-largest city with 845,000 people – and one of its fastest growing and youngest – was the biggest in North America without a commercial car share. Even Winnipeg had one. For some it was a mark of the city’s lack of urban hipness. But for Ryan, who has business degree from the University of Alberta, Car2Go’s statement was akin to a company validating and seeding demand for a disruptive business model, only to announce it would ignore a lucrative market. In other words, it was an opportunity. “There’s a lot of similarities between Calgary and Edmonton,” Ryan says at an Edmonton coffee shop, sitting beside another co-founder, Alexis Alchorn. “I had the view at the time that Car2Go would just come to Edmonton, but we started hearing that they weren’t going to come, that they weren’t interested. So that was sort of the foundation of Pogo.” In October, with just 18 cars and $500,000 in startup capital that he and four other founding partners raised from friends and family, Ryan, Alchorn and the other founders flicked the “on” switch for their solution to Car2Go’s indifference to Edmonton. Pogo was a go.
What a customer pays
for in a car-sharing service is convenience. Gas, insurance, maintenance, parking – all the typical hassles of car ownership – are covered in the per-minute charge. This emulates how 34 ALBERTAVENTURE.COM M A R C H 2 0 1 5
LAST YEAR, WE ASKED CAR2GO IF IT PLANNED TO BRING ITS CAR-SHARE MODEL TO EDMONTON. THE COMPANY SAID NO.
many actually use their cars, driving from one place to another on short trips, then parking, while freeing them of the ownership burdens they hate. “I find owning a car really stressful,” says Alchorn, a Pogo co-founder, who reluctantly bought a car after moving back to Edmonton from New York City, where she used car shares. “There’s a lot of cost involved and it can be really variable. And, from the practical standpoint, you have to think about where you’re going to park it, oil changes, maintaining it.” This reasoning makes increasing sense in an age of austerity budgets, the widening wage gap and, in Europe, chronic underemployment. In some regions car ownership is shifting to be seen as a luxury. That trend is already here in car-loving Alberta, too. The department of transportation confirms that the proportion of young people with a licence in Calgary has dropped by 6.6 per cent since 2001; in Edmonton by 11.6 per cent. Frost & Sullivan, a consulting company, forecasts that by 2020 in Europe, car-share memberships could grow by a factor of 20, to 15 million members. For perspective, that’s 2.5 million more members than the number of cars Europe bought in 2013. Here in North America, where auto sales eclipsed 18 million in 2014, Car2Go has started taking some cities by storm. Combined with its European and U.S. operations, Chongqing in China and Calgary, Vancouver, Toronto and Montreal in Canada, the company surpassed one million members, with deployments in 36 cities. But there is a but. Point-to-point car-share businesses have yet to prove consistently profitable. Last year, Car2Go’s resolution was simply to break even, as it’s profitable in just three of 18 cities in Europe, according to Bloomberg. Last year, just one year after its launch there, the company curtly tweeted to the U.K. that it was pulling out of London and Birmingham. “We’ve listened closely to customer feedback and taking the U.K.’s strong culture and tradition of private vehicle ownership into account, we have decided to withdraw from the U.K. marketplace,” a Car2Go spokesperson told the Birmingham Mail. Savvy business writers have also noted that Car2Go is not just a car-share company, but rather a marketing tool for Daimler’s Smart Car, as well as a production driver – as Daimler sells its own company its own cars. Indeed, the model could be the next one for the auto industry, with evidence of that coming from emulation. Daimler competitor BMW has recently launched DriveNow in Europe, a partnership between itself and Sixt, a rental company. That brings us back to Pogo. Can the company make money, given that it has no corporate backing, it’s not trying to sell its products to itself and that Edmonton’s density rates are far lower than cities in Europe? Profit is the end goal, Ryan says. “We didn’t do it just to set up a car share. We wanted to do it to make sure it worked and it could pay our salaries at the end of the day. But there was a strong motivation. I wouldn’t put it from an activist standpoint, but this is a service that Edmonton should have.” For Ryan, doubts are best countered by viewing Car2Go’s success in Calgary. The similarities between the cities are bigger than the differences, he says, given how young they are compared to the Canadian average, and how wealthy residents are. Both are strong supporting factors for a car share’s success. >
“ I don’t think Car2Go has ever gone head-to-head with the same style of service, a point-to-point service. Our objective is just to grow quickly, because if you have scale and size, then you’re in a position to compete.”
MARCH 2015
ALBERTAVENTURE.COM 35
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But what about competition from other forms of mobility – public transit, taxis and car rental companies? “Generally speaking, we see ourselves as complimentary to public transit,” Ryan says. “People who take LRT downtown are more likely to use our service. We’ve heard from a lot of people that they drive downtown simply because they need a car two times a week to go visit a client. This type of service changes that, and they can now use public transit, which they’ve always wanted to do.” Ryan also dismisses doubters on Edmonton’s density for car-sharing. “From our perspective, the fact that Edmonton is spread out actually supports car-sharing,” he says. “You need some density for car-sharing, but if you need to drive somewhere, if the city is laid out in a way where there are pockets that you’re not going to walk to – the university, Whyte Avenue – that’s when our service is almost perfect because you can take a trip for less than $5 and get between those centres.” He adds that unlike Calgary, where many trips end in the downtown, clustering cars and requiring Car2Go staff to redistribute them, Edmonton’s dispersed centres make distribution organic.
“ Although we are certainly interested in bringing our car-sharing service to Edmonton and have received multiple suggestions to expand, we are currently not deploying any vehicles to the city.”
THE INNER WORKINGS If Calgary and Edmonton are similar, so are Pogo and Car2Go, at least when it comes to business execution. Both are car-share companies built on a “floating” lending model. A traditional car-renting or car-sharing company has one or a few centralized locations. A user must go to these to get the car, and then return it to the same place once done. What Car2Go has shown as workable since Daimler AG first launched it in Europe, in 2008, is to radically expand the size of the area where cars can be sourced and left once done, all while removing interaction
with administrative staff. Car2Go and Pogo have no central office or locations in cities, other than a bordered service area covering, in most cases, the downtown core like the boundaries of a sports playing field. A user pays for a membership, finds a GPS-located car using either the website or smartphone app, gets inside it using a supplied key fob, gets the ignition key through a pin-code password, pays for their usage by the minute and, finally, leaves the car where they drive to, as long as it’s back within the service area (drivers are free to leave this area during their trips).
– MARGOT PIPER, CAR2GO, MAY 2014
Pogo, it should be noted, is different than Car2Go in several critical ways. It offers compact cars with five seats (Kia Rios and Nissan Versas) rather than the two-seat Smart Car. And Ryan says while the per-minute fee is higher, the rates were intentionally lowered for longer trips. “We’re trying to offer a service that’s more flexible and the cars can be used for more uses, and the pricing reflects that.” In Calgary, Car2Go charges $0.41 per minute, $14.99 per hour and a daily maximum rate of $84.99. Pogo currently charges $0.47 per minute, $14.99 per hour and a daily maximum of $70.
BACK IN 2013, pogo’s foundations
were laid as Ryan and his partners Alchorn, James Kiran, Dennis Lam and Patrick Finnegan started looking at technology providers, insurance options and parking permit agreements with the City of Edmonton. At every step, the problem and opportunity encountered was newness. The technology installed in the cars allows a member to unlock it through a key fob reader behind the windshield, punch in a pin code and enable the car’s ignition. That proprietary technology came from a German company. For insurance, which Ryan says is the largest fixed cost for the company, finding a provider took negotiations with several companies before Alberta’s Peace Hills was selected, as it was willing to back the model of insuring a car with a pool of pre-screened drivers rather than a driver. The agreement for how much Pogo will pay the City of Edmonton for its parking permit has yet to be finalized, Alchorn says. Early indications are that despite its newness, Edmonton is embracing Pogo in a similar way to how Calgary embraced Car2Go. After launching with 18 cars in October, the company (as of press time) has 26 cars and has signed 350 members. The plan, says Alchorn, is to continue expanding the company’s fleet and the size of the service area. Once the first zone reaches about 50 cars, the company will examine creating new zones. The ultimate goal is 150 cars. What about taking on obvious gaps in public transit fails, such as a service to the airport? It’s one of many things being looked at, Ryan says. Another is offering a Pogo link to new condo developments to entice younger, hipper residents while also allowing the condo developer to avoid parking minimums.
As Ryan has suggested, Pogo complements other mobility services and allows users to get around without owning a car while still needing to drive. Adam Rozenhart is one. The 34-year-old digital strategist is “trying to assess whether or not I can go carless” by using Pogo along with walking, transit and Uber, the international ride share service that is trying to gain a foothold in the city. He requires a car to go to client meetings, but since joining Pogo in December, he’s noticed that his 2001 Acura EL has barely moved. “Owning a car is a pain,” he says, hinting that he’ll likely sell the car. But aside from this confirmation that Pogo’s read of its market was correct, it’s when asked about the potential endgame of Pogo that things truly get interesting. As Ryan notes, the game at the moment is scale. Pogo needs to make money – it’s covering operating expenses with revenues already – and to prepare for competitors. Car2Go will possibly reassess whether Edmonton is a market it wants to enter, and Ryan, Alchorn and the others need to prepare. “I don’t think Car2Go has ever gone head-to-head with the same style of service, a pointto-point service,” Ryan says. “Our objective is just to grow quickly, because if you have scale and size, then you’re in a position to compete.” The other endgame is acquisition. Car rental companies have been buying up car shares rather than building their own. In 2013, Avis acquired one of the original car-share companies, ZipCar, for US$491 million. “There’s some crossover there,” Ryan says of car share and car-rental drivers. “Our dayto-day customers are not replacing car rental trips. They’re using this service for trips that are a few hours at most, often less than half an hour. There’s no way you’re going to rent a car for that. But I think rental companies are correct in seeing the convenience offered by this type of service as a threat to the traditional car rental model.” But even there, he sees a silver lining. “If we get to scale and size, there are companies in the market to buy a company like this.” AV MARCH 2015
ALBERTAVENTURE.COM 37
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Time to Explore
There’s no time like now to expand your international markets By Michael Ganley / Illustration Dushan Milic
D
oes a discussion of tackling international markets begin, as so many do these days, with the price of oil? Yes and no. Sure, oil prices are redrawing trade maps, with producing nations suffering and consumers benefiting. But oil producers saw similar downturns in 1989, 1998 and 2008, and it’s at just such times that the motivation for a company to spread its wings can ramp up. >
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ALBERTAVENTURE.COM 39
“W
“
Other countries have oil sands and the kinds of operations we have here. They’re still ripe for the technical competence that Albertan companies have been developing over the last decades.” – PAUL DRAGER, BUSINESS AND INTERNATIONAL TRADE LAWYER, NORTON ROSE FULBRIGHT
40 ALBERTAVENTURE.COM M A R C H 2 0 1 5
hen you get a downturn, you’ll really see companies starting to look toward the export markets,” says Paul Drager, a business and international trade lawyer with Norton Rose Fulbright in Calgary. “They start saying, ‘How do we keep our shops occupied? How do we keep the employees that we want to have going, the research and development continuing?’ ” Exploring international options won’t bring a significant turnaround in the next month or two, he says, but it could in the next couple of years, and then provide stability through the next downturn. “Sometimes it’s too little too late, but for a lot of them, if they’re serious about it and put the effort in, it can be very beneficial.” The U.S. is far and away Alberta’s biggest export market, taking in 88 per cent of the $103 billion worth of goods shipped from Alberta in 2013. And most of that comes from Alberta’s dominant export: oil. This reliance on the U.S. market is a double-edged sword. It’s a large, wealthy country with a voracious appetite. But it’s been so good to Albertan companies that the incentive to dedicate the time and money to break into other markets often has been lacking. So here’s their chance. Drager says oil-producing nations will want to keep their
industries going: they need the jobs and the foreign currency that oil exports bring. This is true even for – maybe particularly for – the oil-drenched nations of the Middle East. It’s estimated that Saudi Arabia needs $100 oil to balance its lavish budget. And Albertan companies have the technologies and capabilities to help them drive down their production costs. “They have proven capacities,” Drager says. “Other countries have oil sands and the kinds of operations we have here.” Some of his favourite picks: Indonesia, Vietnam, Burma, Columbia, Kazakhstan, Mexico and India. “They’re still ripe for the technical competence that Albertan companies have been developing over the last decades.” Looking a little further east, Drager says Russia is a troubling prospect for the oil and gas patch because of the ill-defined trade sanctions in place as a result of Russia’s aggression in Ukraine. “Companies are trying to figure out what the rules are, and the federal government quite frankly is not being very diligent in its definition of the rules,” Drager says. The bottom line? It can be hard to know if your widget is subject to sanctions, and where there’s uncertainty there’s a decision not to proceed. (But if you’re not in oil and gas, Russia may still be a viable market despite the plunging ruble. See the story of Morinvillebased Champion Petfoods on page 46.) And what of Alberta’s second-largest foreign market? The province sends a measly 3.2 per cent of its exports to China, but that’s
Alberta’s Export Destinations in 2013 (% share)
Latin America & Caribbean 16% Other 8%
Japan 16% United States 88%
Other 12% China 28%
Mexico 8%
European Union 10%
All Other 14% Other 18%
Asia-Pacific 62%
still the second highest proportion. Successive Albertan governments and the business sector have made much of trade missions to China and of opening a trade office there, recognizing the long-term importance of doing business with the world’s most populous nation. And Edy Wong, the director of the Centre for International Business Studies at the University of Alberta, says China has a lot
of upside for Albertan businesses, if only they could figure out how they fit in the supply chain and come to understand the business culture. “The most important thing is that we don’t understand the processes,” Wong says. “We go into the boardroom, open up our laptop and say, ‘Here’s my presentation.’ But in Asia, often the first meeting is not for that. The first meeting is to become
Get help! Any company thinking of developing a foreign market should take advantage of available resources, and that includes federal and provincial trade offices and private-sector organizations. “You can get a lot of really good initial advice,” says Drager. 1. Alberta’s Department of International and Intergovernmental Relations is one place to look 2. T he Canadian Trade Commissioner Service has offices in Calgary, Edmonton and most countries in the world
3. Business-to-business organizations, like the Canadian Council for the Americas, the Canadian Council on Africa and CERBA, the Canada Eurasia Russia Business Association 4. Find an international financial institution for your banking needs
5. Then come the lawyers and accountants: Once you get serious enough, turn to international law and accounting firms, who can walk you through the details of establishing subsidiaries with appropriate tax structures
c omfortable with each other.” That means business trips have to be a bit longer, and more frequent. “We do our due diligence up front,” Wong says. “They do their due diligence in the middle of the process.” Wong emphasizes the need for government support of small- and medium-sized enterprises that want to break into China. “Small firms don’t have deep enough pockets to penetrate the market properly,” he says. “Chinese culture is also geared toward doing business with big companies. Small companies need more support to build up credibility.” Going forward, he’d like to see increased focus on what he calls “the firm level issues”: business processes and fit in the market. “It’s difficult selling to the Chinese,” he says. “Buying from them is easy, but when you’re trying to sell to the Chinese, then the market is extremely competitive. You’re not competing just with Chinese firms. You’re competing with Siemens and Schlumberger and all the big international firms.” But with the biggest economy in the world (having overtaken the U.S. just last October), getting even a tiny fraction of a piece of that market will smooth over just about any bust. AV
MARCH 2015
ALBERTAVENTURE.COM 41
Gone to the Dogs
Morinville’s Champion Petfoods has overcome red tape to sell to 72 countries Champion Petfoods, Morinville / CEO: Frank Burdzy / Primary international markets: U.S., European Union Percentage of revenue from international markets: 66
A
bout six years ago, Champion Petfoods coined the phrase “biologically appropriate” to describe its products. President and CEO Frank Burdzy says it means the foods will match the anatomy of the cats and dogs – read, more meat – who consume them. “Pet lovers know that nutrition is number one and how you provide that nutrition is through as natural and robust ingredients as you can,” Burdzy says, “and we fit the bill.” Champion’s best international markets are in eastern and central Europe, where it’s been active for 25 years. Its first success was in Germany, then Poland, Romania, Czech Republic, the Ukraine and Russia. Wait, Russia, even now, with the plunging ruble? “We’re watching that market closely but we have an extremely strong and loyal following and a great distributor there.”
Number of languages on a bag of Champion dog food? Sixteen, “and we hand-label for certain countries because we can’t get enough languages on the bag.” The company is in expansion mode, building a new $5.9-million lab and kitchen in Morinville and another kitchen in Kentucky. “We were running out of capacity here in Canada, so we went to the heartland of our fastest growing market,” says Burdzy. After a cross-country search,
Champion found that the greatest proportion of fresh, regional ingredients was available in Kentucky. “Plus Kentucky was aggressive,” he says. “They have an excellent agriculture group that wants to attract new business.” In keeping with the company’s policy of sourcing as many local ingredients as possible, Burdzy has a team of people meeting with farmers and small processors. The hardest thing to find? Fresh fish. For the Kentucky plant, Champion is sourcing fish from the Atlantic Ocean and the Gulf of Mexico. “We’ve found some good small businesses and family businesses that we like to deal with,” he says. “Then we’re working with some local fish processors that will custom-grow some catfish for us.” Burdzy says the company’s international success is built on its “biologically appropriate” branding, its network of distributors and on Alberta’s reputation – at least from the food production point of view – as a land of fresh, local ingredients. “You talk to anyone in the food world, and they see Canada and Alberta as pristine waters and clean air and fresh food,” he says. “We don’t get tainted with the oil sands image. It’s quite refreshing.” Champion’s biggest challenge is staying on top of regulatory regimes in the 72 countries it sells into. The company simplified the process by choosing to have all its products meet the highest standards of all – those imposed by the European Union. “Even if we’re selling in Canada or the U.S. or Asia, we manufacture to the EU standard,” Burdzy says. “Once we learned and understood that well and could work with our ingredient suppliers to get up to that standard, we’ve been very successful.” AV
Champion Petfoods CEO Frank Burdzy
PHOTOGRAPH RYAN GIRARD 42 ALBERTAVENTURE.COM M A R C H 2 0 1 5
CHAMPION PETFOODS’ MARKETS
MARCH 2015
ALBERTAVENTURE.COM 43
PURE TECHNOLOGIES’ MARKETS
Pure Technologies CEO Jack Elliot
44 ALBERTAVENTURE.COM M A R C H 2 0 1 5
Pure Magic
The 2011 revolution in Libya decimated Pure Technologies’ international revenue. But boy, has it come back Pure Technologies, Calgary / CEO: Jack Elliot / TSX: PUR / Primary international markets: U.S., Qatar, Australia Revenue: $61 million / Percentage of revenue from international markets: 85
P
ure Technologies learned about the potential vagaries of international markets the hard way in 2011. At the time, the company had been working – quite successfully – in Libya for more than a decade. Then, in February of 2011, the revolution to topple former prime minister Moammar Gadhafi happened. “Prior to that, Libya made up 40 per cent of our revenue,” says Pure Technologies’ president and CEO, Jack Elliott. “Now, it accounts for less than one per cent.” But he doesn’t look back on that time with bitterness. The years in Libya gave the company a depth of experience in international work and a good financial footing to build out the business elsewhere. And it has done so in spades. Elliott says 85 per cent of the company’s revenue comes from export markets, primarily the U.S. but many others, too: In 2014, the company worked in 28 U.S. states, eight provinces and 24 other countries. Pure Technologies is a global leader in the inline inspection of municipal and regional water pipelines. The company has a suite of tools it uses to inspect the structural integrity of pipelines from the inside, like pigging in the oil and gas industry. Pure Technologies inserts fibre optic cables and uses acoustics to determine pipeline integrity. “If we see deterioration, we can warn the owner that that particular section
The Takeaway 1. FACE TIME: Go there yourself, especially if you have a highly technical project. “It’s hard to farm that out to agents or distributors.”
of pipeline may be in danger of failing,” says Elliott. “They can replace it before it does so.” With the purchase of Edmonton’s Hunter McDonnell Pipeline Services last year, Pure Technologies has branched into oil and gas. Elliott says the greatest challenge he’s faced when breaking into a new market is the amount of time and money it takes. “There are long lead-times to establish the value proposition for the clients and to make them comfortable with the credibility of the technologies,” he says. “And decision-making can be quite slow in these agencies, particularly overseas.” He says it can take between two and four years to move from first contact to a contract, with a lot of faceto-face time along the way. “You’re sending highly technically qualified individuals overseas,” he says. “It’s a time-consuming and expensive business.” Nonetheless, Pure Technologies will continue down the export path. Elliott sees growth opportunities in the Gulf Cooperation Council states (in particular Saudi Arabia and Qatar, where the company is already at work on a multimillion-dollar project), Australia, Southeast Asia and South Africa. “But our main focus is on North America. The U.S. has been a terrific market for us and it will continue to be. So we’ll continue to invest there and in Canada. And we’ll look at high-value, high-growth opportunities in selected international markets.” AV
THREE KEYS TO SUCCESS
2. FORGE REAL RELATIONSHIPS:
“A lot of these developing countries are tired of seeing companies come in, promise the moon and then they buy something and there’s nobody there to support it.”
3. MAKE IT CLEAR THAT YOU WILL
ONLY OPERATE WITH INTEGRITY “Just say, ‘No, we’re not going to do that.’ Zero tolerance is critical, not only with your own people, but also with your local agents.”
PHOTOGRAPH CHRIS WEDMAN MARCH 2015
ALBERTAVENTURE.COM 45
Mascot Maker
Joel Leveille’s world is full of colourful eyeballs, goofy grins and oversized everything International Mascot Corp., Edmonton / CEO: Joel Leveille / Number of countries sold into last year: 12 Over the life of IMC: 60+ / Percentage of revenue from international markets: 92
I
n the early 1980s, Joel Leveille was running a small event planning agency called Scheme-ADream and, to meet the business’s needs, making costumes on the side. People began asking where he got the costumes, and a new sideline was born. “We quickly saw that it was a huge marketplace,” he says, “although, at the time, we didn’t know how big.” In 1983, he and his partner, Brian Baker, won big by getting the contract to build 64 sets of Hidy and Howdy costumes for the Calgary Olympics. That launched their business in a new direction. They sold the event planning side and began to focus on mascots. They launched International Mascot Corp. and started hitting the trade shows. They got their hands on a listing of every convenience store chain in the U.S. and did a mail-out. “We were saying, ‘Perhaps you need a character to represent your stores, just like Winks and Mac’s have,’” Leveille says. “7-Eleven bought a bunch of costumes from us.” And they went after the big, independent amusement parks (Disney does its own stuff) like Six Flags Amusement Parks in the U.S., which uses the Warner Bros characters. “We’d build so many Bugs Bunnies and so many Foghorn Leghorns and so on,” he says. They went on to build Care Bears and Smurfs and Nestlé Quick bunnies and Hershey’s Kisses. They’ve worked for teams in every major North American sports league and for FIFA leagues
The Takeaway 1. Get insurance through Export Development Canada to help protect yourself
internationally. They’ve also worked on four Olympic Games, the last being Vancouver in 2010, for which IMC built dozens of Migas, Quatchis and Sumis. Many of the companies IMC was contracting with were huge multinationals, and the IMC creations were being sent all over the world. Their international work, beyond the U.S., grew out of that exposure. “We began fulfilling orders from all over,” Leveille says. “I remember we got a soft drink company on the island of Réunion, which is off the coast of Madagascar.” The company grew gradually through reputation and referrals. It was helped over the years by the relatively low value of the Canadian dollar and the development of its website. The company has also, when appropriate, turned a client in a foreign country into a r epresentative. “Then you have someone who speaks the lingo and understands local business practices,” Leveille says. “It makes it a lot easier to conduct b usiness.” IMC now has production facilities in Edmonton and Atlanta, Georgia, with marketing offices in New York and Madrid. It employs about 48 people and makes about 1,000 costumes a year. Leveille says there really aren’t many competitors in this niche for high-end m ascots. There are inexpensive, mass-produced costumes coming out of China, “but if you want a custom-made product that’s going to be properly serviced, you need to build it here,” he says. AV
JOEL’S THREE TIPS FOR SUCCESS
2. Have a good financial partner, meaning one with a presence in the countries you do business in
3. Find a good logistics partner who can give you a rate that allows you to stay competitive
International Mascot Corp. CEO Joel Leveille
PHOTOGRAPH RYAN GIRARD 46 ALBERTAVENTURE.COM M A R C H 2 0 1 5
INTERNATIONAL MASCOT CORP.’s MARKETS
MARCH 2015
ALBERTAVENTURE.COM 47
In World Business Class we’ll tune into your rhythm You may cross one or more time zones during your journey. Whatever rhythm your body and mind are in, we accommodate our service to your sense of time. When do you want to sleep? When and what do you want to eat from our menu? Other wishes? We’ll get it just right for you. Visit klm.ca for more information. New: KLM Edmonton-Amsterdam flights start May 5, 2015
FOCUS ON: EXPORTS
It Isn’t All About the Price Per Barrel The exchange rate, the cost of diluent and the discount rate all play a role in the value of Alberta’s primary export BY ANDREW LEACH
F
or an oil sands project, there are four key factors that determine supply costs: the costs of building and operating the project, the discount between light oil and diluted bitumen, the costs of diluent, and the Canadian dollar exchange rate. While oil prices have dropped significantly, and have commanded much of the news coverage, the other factors in this calculation have changed significantly as well. >
Energy exports accounted for 74 per cent of Alberta’s exports in 2013. With Western Canada Select trading around $45 per barrel recently, there’s plenty of concern among Alberta’s business community. But there are countervailing influences, too. In a November, 2014 column for Maclean’s magazine, University of Alberta professor Andrew Leach addressed those influences.
MARCH 2015
ALBERTAVENTURE.COM 49
To give you some context, one of the studies cited by the State Department in developing its supply cost estimates is the May 2013 Canadian Oil Sands Supply Costs and Development Projects (2012-2046). This study assumes that oil sands projects will not be built if they yield less than a 10 per cent real (12 per cent nominal) rate of return and shows that the lion’s share of new oil sands projects would require a WTI-equivalent price, in Canadian dollars, of between $78 and $100 per barrel to earn that level of return. The CERI study assumed that natural gas prices would increase above inflation, from $3.50/GJ initially and rising to $6/GJ in real dollar terms by 2040. The study also assumed that heavy crudes trade at a discount of US$15 to light crude, and a five per cent premium over the value of light oil for diluents. Most important, they assumed that the Canadian dollar would trade at parity with the U.S. dollar over the study period, so supply costs in Canadian dollar terms convert directly to U.S. dollar WTI prices. Now, consider what has happened since this report was released: yes, oil prices have dropped significantly, with WTI front-month contracts closing in November at US$4.53, but the Canadian dollar has followed and closed at US$88.14 cents per Canadian dollar, meaning that WTI in Canadian dollar terms was worth $84.55. In terms of heavy oil, Western Canada Select, the Canadian benchmark heavy crude, was posted at that same time at C$71.67 (US$63.36), a differential to WTI of only a little more than $11, while lighter condensates traded Wednesday at C$83.62 (US$73.93), a slight discount to WTI. Combine all of these factors together, and the differences are stark. Taking a WTI price of US$74.53, using the assumptions in the CERI (2013) study, you’d have heavy oil trading at C$58.53, but containing 30 per cent of a barrel of condensate worth C$23.48, leading to an implied bitumen value of approximately $50 per barrel in Canadian dollar terms. Take the
“
While oil prices have certainly moved against oil sands production, other factors that are just as important have moved favourably.”
same WTI price, with favourable exchange rates and other oil prices, and you’ve got a barrel of bitumen that is worth significantly more: about C$66.55 per barrel. If you compare C$66.50 bitumen prices to plant gate supply costs, you see why there’s less panic than you might expect from the oil sands sector based solely on older estimates of WTI-equivalent supply costs such as those reported by the State Department. Even a more expensive new mine, such as Suncor’s Fort Hills currently under development, would expect to earn a reasonable rate of return on invested capital if the effective bitumen price remains at November’s levels of C$66 – not quite 12 per cent if you used CERI’s numbers, but still well above traditional mining hurdle rates of nine to 10 per cent. In fact, when Suncor approved the project, it stated that returns would exceed their cost of capital with bitumen prices in the $50 to $60 per barrel range. New in situ facilities, such as those from Cenovus, claim supply costs in lower still: in the $35-$60 WTI range given adjustments for these new market realities.
If you are looking at a Canadian bitumen project, your pricing outlook has no doubt taken a hit in recent months, just as all other oil projects have, but it’s by no means clear that the relative position of oil sands projects has suffered that much, nor is this the most difficult period for oil sands pricing in recent history. In Canadian dollar terms, implied bitumen prices fell significantly in October and November, but have also been significantly below those levels 78 weeks out of the previous five years – 30 per cent of the time – in Canadian dollar terms. So, don’t assume that just because WTI prices have decreased that you can apply these so-called break-even costs assuming all else is equal. It isn’t. While oil prices have certainly moved against oil sands production, other factors that are just as important have moved favourably. There’s still a point where oil sands projects would be sensitive to increased transportation costs, and there will always be a marginal project, but it’s hard to see how, at this point, you’re likely to see oil sands production constrained. AV Originally published in Maclean’s
50 ALBERTAVENTURE.COM M A R C H 2 0 1 5
FOCUS ON: EXPORTS
(Don’t Get)
Lost in Translation
Moving your business onto the global stage can be a big opportunity or a disaster waiting to happen. So how do you make it the former and not the latter? BY SAM MACDONALD
T
ADAPT
FIND THE PRICE AND TIME NECESSARY
OBTAIN CULTURAL COMPETENCY
“
COMMUNICATE
We were able to strip out some of the physical features of our product and lower the price, and that really caught fire in the U.S.” – MARK SCANTLEBURY, PRESIDENT AND CEO, EXTREME TELEMATICS
here’s no single solution to successfully entering a foreign market. Each one is, by definition, different from the other. But there is some consistent advice if you want to make your mark. It begins by ensuring that you’re going after the right market in the first place, says Michèle Hecken, CEO and founder of Alpha Global Experts, a Spruce Grove-based consultancy firm that helps build cross-cultural competence. “There’s language, there are cultural barriers and there’s business risk,” she says. “It’s really important to understand not just the language of a foreign market, but also the culture and how those people operate.” For instance, consider the signing of a contract. When done in Canada, it generally means you have a pretty solid agreement that you could take to court if necessary. Not so in every country. “The meaning is very different and basically means you’re still negotiating in some countries,” Hecken says. “If you don’t know those sorts of things and have a contract signed, you can start putting resources in places like producing when the other party isn’t ready.” Or consider the matter of business timelines. In Canada, they tend to be sequential, while those of other cultures can differ. “In some cultures, they will start five projects at once,” Hecken says. “Based on our understanding, they’re behind, but in their understanding, they’re not.” >
ILLUSTRATION DUSHAN MILIC MARCH 2015
ALBERTAVENTURE.COM 51
Mark Scantlebury, president and CEO of Calgary-based Extreme Telematics, recently had the opportunity to expand into the U.S. His company builds sensors and controls for oil and gas wells, and had to modify the way it operated to adapt, even to our closest neighbour. “Since our products are hazardous location certified, we had to update our certification to meet U.S. standards,” he says. But that was just the beginning. More importantly, Extreme had to find the right price point for its products. “We were able to strip out some of the physical features of our product and lower the price, and that really caught fire in the U.S,” he says. “We found the package that would sell there, and couldn’t just do the things we’d always done here. Once we hit that sweet spot, we went from one reseller to nearly 20.” The strategy paid off. In the last year, the proportion of revenues that have come from the U.S. has climbed from 17 to 60 per cent. It’s made for the best year in the company’s history. Scantlebury and Extreme Telematics also sell to markets outside of North America through resellers. One of those resellers is Definitive Optimization, whose general manager, Clint Mason, has recently spent some time breaking into markets in India and Oman. “The Indian market seems to be upfront, and most similar to ours,” he says. “We make deals with them and it’s all on very similar terms.” But the situation is different in Oman. “The market in Oman doesn’t seem to be that way,” Mason says. Business goes at a slower pace, with a moving target. “We’ve had to negotiate deals three or four times, and they always want to readjust prices and change the amounts.” Hecken agrees there’s no such thing as “business as usual.” “Often when we go into a different market, we think ‘When in Rome, do as the Romans do,’ but it’s really the worst thing you can do in business,” she says. Instead, she recommends bringing one’s own business practices to a foreign market, and adapting them with the market’s own practices, to get the best of both worlds. The resulting cultural diversity “can lead to a great deal of innovation, as well as competitive advantages in business,” Hecken says. “It’s not just in your target market but also in your home market. You can get an edge over your local competitors because they may not have a global reach.” AV
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The Globetrotter’s top 10 Tips for successfully opening an international market
Realistically figure out how much capital and time you need to successfully do business in a foreign market
1. FIND THE PRICE AND TIME NECESSARY Realistically figure out how much capital and time you need to successfully do business in a foreign market. 2. PICK THE RIGHT MARKET It’s often assumed that just because everyone else is in a certain market that it’s a good fit for you and your business. Often, this is not the case. Understanding and choosing the right market for your company and product are essential. 3. ADAPT Once you’ve identified your market, get an understanding of the regulatory and legal environment of a foreign market so that your business can function efficiently in it. 4. GET ENOUGH RESOURCES A corollary to the previous tip is to ensure you have sufficient resources, and that they are available to your company. That way there are no necessary demands that you can’t fulfil when they arise.
5. PREPARE FOR ROADBLOCKS A potential roadblock in expanding one’s business into a foreign market is differences in cultural customs. For example, not being familiar with local holidays can disrupt business operations, supply chains or production. 7. GAIN LOCAL MARKET INSIGHT Learning from partners in the market or a local expert can give you a feel for what goes on in the foreign market. Keeping your finger on the pulse is a good way to learn and be prepared, getting a sense of what to expect. 7. TRUST AND VERIFY You can’t trust too heavily at first. People in a local market (this can include potential partners) all have their own agenda. It is helpful to be cautious initially until you build a solid partnership over time. 8. BUILD A TEAM It’s important to build a team, integrating both the home and foreign markets, to ensure that communication and workflow are optimal on all levels.
9. COMMUNICATE It is necessary to communicate clearly, concisely and frequently. There are so many possible misunderstandings and misinterpretations in a foreign market. 10. OBTAIN CULTURAL COMPETENCY To do business in a foreign market, you must understand the culture in which that market exists. There are all sorts of features of the culture that lead to business being done differently. Understand them and you’ll safeguard your success.
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MEET UP
The why, where and how of a successful meeting or convention
YOUR GUIDE TO BUILDING THE PERFECT EVENT
PHOTOGRAPH RYAN GIRARD MARCH 2015
ALBERTAVENTURE.COM 55
NO SUBSTITUTE FOR PROPER FACE-TO-FACE COMMUNICATION
THERE’S NO QUESTION THAT COMMUNICATION IS VITALLY IMPORTANT TO BUSINESS, and a well-conceived, well-planned, well-run meeting or convention can be a valuable contributor to that end. Whether it’s to provide networking, education, collaboration or to share best practices, the value of gathering together – face to face – should not be overlooked.
Creating an effective gathering begins with asking yourself why you want an event and what you hope to get out of it. “Whether small or large, an honest conversation on the expected outcome is needed,” says Jewel Buksa, president of Buksa Strategic Conference Services, “so you know if you’re going to hit your target.” Then you start planning, giving yourself as much time for it as humanly possible. “You’d be surprised at how many groups don’t provide sufficient time to do things properly,” says Joan Currie, founder and president of Currie Communications. “You need time to market and implement it.” There are a million little details that need to be taken into account in the planning stages. When to hold it? Where to host? If you’re inviting people from outside your organization, who to invite?
PRO TIP
The location will naturally depend on the size of the event and the needs of organizers and attendees. “Some clients just need meeting space, some need bedroom space for their delegates and some require both,” Currie says. “One of the first things you need to understand is the scope of their needs.” Cost will certainly factor in, whether you’re looking for something lavish, or for something on the frugal side. Currie says you should watch for the opportunity to partner on this one. “A lot of companies have corporate rates with hotels, and sometimes the corporate rate is better than the rate the hotel will quote me,” he says, “so I will see where some alliances are.” Vinit Kumar, food and beverage director with Sawridge Group, says the selection of a location should take into account local attractions,
to incorporate recreation or entertainment into an event. “Here in Fort McMurray, there are the northern lights, which are another factor that can be thrown in for bringing people from the outside,” he says. “Seeing them at midnight can be a lifetime experience for guests.” Determining location early will give you time to get your invitations out. “It’s really important to give your guests and attendees a reasonable amount of time to RSVP,” says Chris Macklon, owner of Whisk Catering. “Make it mandatory, for the most part, that they RSVP. It’s going to help your budgeting.” The question will also arise as to how much technology you want to weave into your event. Live polls, Twitter questions, Eventbrite. How much is too much? Christine Tenove, a marketing and communications specialist with Lloyd Sadd Insurance, says that while social media and technology have augmented communication, they are no substitute for proper face-to-face communication. “We’re i nundated with technology in the office, and I think it’s important for people to make personal connections with each other,” she says. “It’s a different type of connection than anything you’ll get online, when you have a conversation with someone, and it’s a necessary skill in business.” So many questions to answer and decisions to make. Now it’s time to delve a little deeper into a few aspects of running a great event. AV
Structure is important. Know how all the components of a meeting fit together with its purpose in mind
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BON APPÉTIT Navigating the challenges of catering your event
IF YOU’RE GOING TO FEED YOUR GUESTS, FEED THEM RIGHT
PHOTOGRAPH RYAN GIRARD 58 ALBERTAVENTURE.COM M A R C H 2 0 1 5
Nobody wants to meet on an empty stomach, and event planners don’t want their guests grumbling about a grumbling stomach. But giving your guests something to eat and, if the event calls for it, something to drink entails a number of challenges in planning and implementation. Fiona Dobbs, director of sales and marketing with the Metropolitan Conference Centre in Calgary, says there is a “mind-boggling” range of things that have to be considered, particularly relating to guests’ dietary restrictions.
CONSIDER THE HOUR Often, catering choices are dependent on the time of day that the event takes place. “If you’re hosting something at dinner hour, you’d be looking at needing more of a meal, but remember to keep it easy to eat,” says Chris Macklon, owner of Whisk Catering, in Edmonton.
FOCUS ON FINGERS Macklon says the most important thing about catering is that whatever food is being served is popular. To do this, he recommends finding a planner who is up to date on the ever-evolving field of catering and its concerns. “Often you’ll go to an event and they’ll have some sort of taco bar and it’s really not nice to eat that kind of food when you’re either dressed up at a party or at some sort of professional event,” Macklon says. “Hors d’oeuvres are easy to eat, and they’re often your best bet at both meetings and conventions.”
THE 100-DIET MEETING Making sure people with dietary requirements, including allergies and sensitivities to certain foods, are accommodated is vitally important when choosing food. To make it easier on yourself, stay away from unconventional ingredients, such as strong spices and seafood, since they are often allergy triggers. “It’s not just vegetarians, and [people who are] lactose and gluten intolerant,” Dobbs says. “It’s vegans and pescetarians and others,” whose needs a host must be aware of. “Guests want to see creativity, healthiness and comfort food, too,” she says. “Building a menu for all that is quite an i nteresting feat for chefs.” Etiquette is always an important aspect of catering when trying to find food that suits everyone’s tastes. “I wouldn’t serve lamb if it was a group of people that I didn’t necessarily know personally, in more of a work-related thing,” says Macklon. Instead, he recommends serving something more popular, like chicken. “It’s something you can bet, more often than not, people will like.”
“ You have to understand what moves on a buffet, or what group is receptive to what kinds of food”
DON’T COME UP SHORT
THE BAR SERVICE
Macklon recommends ordering just a little more food than you expect to need. At the same time, nobody wants to see waste. “It’s a fine line between not having enough and having too much,” he says. “It’s never nice to have too much food.” For larger gatherings, special care must be taken to be aware of what’s being ordered to ensure it’s popular and actually gets eaten by guests. “You have to understand what moves on a buffet, or what group is receptive to what kinds of food,” says Dobbs. Often, guests at an event appreciate an overall theme to tie the meeting and the menu together. Macklon recommends taking it on a case-to-case basis, since the best dishes and themes are dependent on the particular event, how big it is and when it takes place.
Depending on when your event takes place, you might consider serving alcohol. It can quickly increase your costs (in a somewhat unpredictable way), so careful thought should be given to making it an open bar, distributing just a few tickets per guest or making it straight cash. Regardless of which way you go with the alcoholic beverages, be sure to consider those who don’t drink alcohol. Macklon recommends having non-alcoholic punch available at an event where drinks are offered. “It shows that some time and thought were put into wanting to please people that aren’t drinking too,” Macklon says. “That’s better than just offering soft drinks and water. It’s nice to have something that looks special and maybe is served in a wine glass or martini glass.” AV
MARCH 2015
ALBERTAVENTURE.COM 59
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FIND THE BEST FIT FOR YOUR AUDIENCE
START IN THE RIGHT KEY A proper keynote speaker is the lynchpin of a good event
The keynote speech sets the tone of an event, tying in all the important themes and concerns of a meeting or conference. It’s vital that the speaker conveying all these things is the right fit for the job. That means, before you even start to consider who to approach to deliver your keynote, there needs to be a clear goal and purpose for an event. You will then need to clearly communicate that purpose to the speaker, who should want a lot of back and forth discussion before even accepting a gig. So let’s back things way up. First you figure out your audience, then you need to plan your approach, research potential keynotes and sign a speaker.
IN THE BEGINNING The first thing that a host should look for in a keynote speaker is the ability to relate to the audience, says Sarah Mitchell, an event planner with River City Events in Edmonton. For that, you need to know the audience. “Break it down into age, category, likes and dislikes,” she says. “A good speaker will want to know the targeted audience. They will ask you questions ahead of time to be prepared for who they’re speaking to. They can tailor their presentation to several different types of groups.” >
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DO YOUR RESEARCH Get as familiar as possible with the speaker you’re looking to hire. People tend to listen more to a speaker who’s animated, smiling, and moving around the space they’re in. “You want to find someone who can hold a room for a keynote speech,” says Brittney Gamache, sales and catering co-ordinator with the Nisku Inn and Conference Centre. “People generally don’t have long attention spans. If you involve them, it keeps them on their toes a bit more and you engage them.” Many speakers will have had past keynotes recorded. Ask to see one or more. “I wouldn’t hire a speaker unless I could see a video of them,” says Lisa Marin, a trade show manager with Travel Trade Canada. “You need to get some idea of how dynamic they are in action.”
ASK AROUND Consult with colleagues to see if they’ve seen or heard of anyone good recently who might also be appropriate for your audience. There are also a number of private agencies – like the Speakers’ Bureau of Alberta and the National Speakers Bureau, that have a roster of names you can look into.If you’re using an external meeting planner, ask them for suggestions. A proper speaker for your event has at least three good references that check out. “Any speaker can design a great website that makes them look amazing, but check references,” Mitchell says.
HOW MUCH WILL YOU BE SPENDING? This is up to you, of course, but know that the costs of hiring a speaker vary widely, depending on who you’re going after. Occasionally, speakers see a gig as a good opportunity to market themselves, and may waive their fee (or at least be willing to negotiate), saving you a great deal on expenses. “Sometimes the most you’ll have to cover will be travel and accommodation expenses,” says Joan Currie, founder and president of Currie Communications. “Or it could be a situation where you are covering travel and dealing with speaker fees as well.” Mitchell advises to be clear about any unusual demands a speaker may have. “Each speaker will come up with a laundry list of requests and demands,” Mitchell says. “Sometimes this is to provide accommodations, meals and space to prep before they speak. However, some may have many more
PRO TIP
“ There are a lot of cheap keynote speakers out in the world. Anyone who has made a few bucks is calling themselves a professional nowadays. Look for quality, spend a bit more, and that will be the best choice for your event.” – Sarah Mitchell, River City Events
demands including only pink M&Ms. It’s similar to hiring a famous band or actor.”
DON’T BE AFRAID TO NEGOTIATE When hiring a speaker, prices generally are negotiable until you start looking at the speakers who are more well-known and in higher demand. Hiring usually takes place by proxy, through an agency or a manager. “You can negotiate rates most of the time, so unless it’s busy season, don’t take the first offer,” Mitchell says. “If the speaker is someone incredibly famous, it’s different. Take what you can get and be thrilled they’ve accepted.” AV
Do your research. Learn everything you can about a particular speaker to make sure they’re the right fit
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THE RETURN OF THE TRADE SHOW NINJA No need for masks and swords – just good planning
BE ALERT
The trade show ninja is an effective exhibitor among the endless booths and crowds. With an eye for a good deal and a mind set on practicality, she is never taken off guard, and always leaves a trade show with what she came for – contacts. The trade show ninja’s best weapon? Wisdom.
TAKE TIME TO PLAN, YOUNG GRASSHOPPER
HAVE A STRATEGY
64 ALBERTAVENTURE.COM M A R C H 2 0 1 5
Lisa Marin, a trade show manager with Travel Trade Canada, says there are far too few people who form a good strategy to get the most out of trade shows. She recommends the aspiring trade show ninja set concrete goals, such as a specific number of contacts to walk away with at the end of the show.
N O I T U R L O RESLENDA CA
SET YOUR GOAL Marin recommends figuring out how many potential contacts you can meet and talk to within the time limits of the show. “You’re usually working on about 25 per cent of people who walk through the door walking past your booth. If you take 100 people and you’ve got four hours of trade show, that means you’ll talk to about 25 people per hour,” Marin says. “Perhaps only 25 per cent will be interested in your product. That’s going to drop the number down even more, and that’s where you start setting your goals.”
VERTICAL VS. HORIZONTAL The trade show ninja understands her competition, and the laws of supply and demand, taking time to figure out what kind of market she’s working with at a show. The trade show ninja adjusts her expectations accordingly. “If you’re at a ski show and people are looking for ski equipment or a ski adventure, that would be a vertical market show,” Marin says. “If you have a software product at a show, but have one of 3,000 products for 20 different industries, it’s more of a horizontal show. Not everyone walking through the door is going to want your product.”
BE EVER-PRESENT No self-respecting ninja would be caught distracted, eating lunch, drinking coffee or reading the paper during trade show hours when there are contacts to be made. “You need to be alert, and watching to make eye contact, and you should have a list of open-ended questions for when you connect with people,” says Marin.
DRESS FOR SUCCESS Sarah Mitchell, an event planner with River City Events, advises ninjas to avoid blending in by dressing to impress
Use the Resolution Calendar and plan your most successful year yet!
A YEAR-LONG GUIDE TO SMALL BUSINESS SUCCESS PRO TIP
“ You need to be alert, and watching to make eye contact, and you should have a list of open-ended questions for when you connect with people.” and by creating a booth with function and flair. “A plain black-draped booth with a table and one sign is incredibly boring, and people passing by will feel the same way,” she says. “If you put no effort into your booth, appearance and stature, they’ll wonder if you put effort into your client’s needs.”
SHOW YOUR CARING SIDE Though ruthless and cunning, the trade show ninja has a soft side and cares for the needs of others. Instead of broadcasting the achievements of his own company, he seeks to demonstrate his ability by solving the problems of others. “It’s about what you can do for them and their issues,” Marin says. “Talk to them about what kinds of products you have that they might be interested in.” AV
THE RESOLUTION CALENDAR is a collaboration between Alberta Venture and ATB Business to help small businesses in Alberta grow and thrive. Featuring a different topic every month, we cover everything from product development to succession planning and everything in between – marketing practices, finance growth, joint ventures and so much more! We focus on issues that are essential to small business owners no matter where they are in the business lifecycle.
Watch for updates and new content every month at smallbusiness. albertaventure.com/ resolutioncalendar
H MARCDEVELOPMENT INPRODUCT L APRIGROWTH INFINANCE
TECHNOLOGY CAN HELP YOU BUILD A GREAT EVENT
BUT THERE ARE SOME TIPS YOU SHOULD KNOW
CAN YOU HEAR ME NOW? Effective communication should drive the technology needs for a business event
Technology continues to be an integral component of meetings and conferences, with a growing demand for it at events of every size. “Technology is huge, and there’s an expectation these days that venues will have it all,” says Fiona Dobbs, director of sales and marketing with the Metropolitan Conference Centre in Calgary. She says most people planning to host an event expect the venue to be equipped with state-of-the-art technology, and that it be efficient and free. Wireless internet access is a must at any event, and there is a growing
PRO TIP
demand for it that many venues are struggling to meet. “Wi-Fi is at forefront of everything, and always at the top of the list,” Dobbs says. And often it’s not just one person looking to connect with one device either. “It’s not just, ‘I’m on my iPhone.’ It’s ‘I’m on my iPhone, iPad, and laptop.’ There are people with all three in the room,” she says. “If you have a big enough conference, that could be more than 600 devices all trying to connect at the same time.” Joan Currie, founder and president of Currie Communications, says tech trends that are still common in
meetings and conventions include webcasting, live streaming and other online services that allow people to participate remotely. “In addition to delegates actually physically being there, things are being broadcast to people who aren’t there,” she says. Dobbs recommends a slightly different approach to communication than traditional teleconferencing, conference calling and telecasting. She says there is a decline in those mediums, with trends moving toward newer technologies. “I haven’t seen people do a lot of teleconferencing in years,” she says. >
Technology can do a lot, but it’s not always built with an understanding of how humans interact with one another
MARCH 2015
ALBERTAVENTURE.COM 67
MAKE TECH ABOUT PEOPLE, EXPERTS SAY
With expectations for quick connections and people running meetings with participants in a number of different locations, Skype is a favourite. “Skype’s growing popularity is in how much more simple and straightforward it is than other communication services available for the same purposes,” Dobbs says. Jewel Buksa, president of Buksa Strategic Conference Services, says there’s an app or shareware available for almost any purpose, but at the same time, improper planning and “human factors” can lead to trouble. “We see tension with clients saying, ‘We tried that and it did not work,’ ” she says. “Technology can do a lot, but it’s not always built with an understanding of how humans interact with it and one another.”
FEWER, BIGGER, BETTER Dobbs says she has noticed a decline in the number in conferences being offered with an increase in their size.
She says technology has played a role in that change. “Because of Skype and Facebook and all those elements, it’s getting easier to bring people together,” she says. “There are fewer conferences but they are larger,” says Dobbs. Currie says nobody needs to be an expert on all technology available for events, but that clients need to be asked questions upfront about their desired outcomes from the use of technology. Those questions help determine what technology, if any, needs to be used to achieve those outcomes.
BEWARE TECHNOLOGICAL OVERKILL Too much reliance on technology can cause more problems than it solves. “Sometimes, clients need to go back and look at their plans and say, ‘Is this, in fact, a need for us?’” says Currie. “Maybe they don’t need to broadcast every single session and only need a
broadcast of the plenary, because of a high-level keynote speaker they want a wider audience to view.” Buksa agrees, saying, “Tech is great, but it’s built by technologists. You need human interface to be successful. It should be limited to places where it makes sense, not for major problem-solving.” AV
Drumheller, Alberta Phone: (403) 823-1338 Email: mflater@dinosaurvalley.com www.dinosaurvalley.com
A Retreat Close to Home........ A meeting or conference held in the unique atmosphere of the Badlands Community Facility, nestled along the Drumheller River Valley, is sure to motivate your team! · 11,900 square feet of modern and versatile conference and banquet facilities, accommodating groups up to 600 · 20,900 square feet of open space ideal for exhibitions and team building · State- of- the -art audio visual system · Extensive fitness facilities, library, art gallery and outdoor terrace overlooking Drumheller’s breathtaking landscapes · World class attractions including the Royal Tyrrell Museum of Paleontology, Atlas Coal Mine, the World’s Largest Dinosaur and more · Centrally located to Drumheller’s finest accommodations Our exceptional staff is ready to assist you to make your visit enjoyable, professional and successful. We invite you to experience the Badlands Community Facility.
Catering BBQ BusinessServices AV Equipment Internet ExhibitAccess Pool Exercise Golf(<5mins.) Hiking HealthServices
CALGARY & AREA
Group Size
Meeting Rooms
Guest Rooms
Parking
Arts Commons CALGARY
15-1,800
7
-
825
Best Western Port O'Call Hotel CALGARY
10-250
14
201
820
Best Western Village Park Inn CALGARY
15-220
9
159
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Blackfoot Inn CALGARY
2-327
9
200
400
Calgary Marriott
5-160
8
384
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•
10-10,000
16
-
4,700
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4,000
36
1,100
410
30-500
5
-
1,800
150
2
-
5-500
13
Coast Plaza Hotel & Conference Centre CALGARY
10-1,100
Commonwealth Centre CALGARY
Calgary Stampede Meetings & Conventions Calgary Calgary Zoo
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100
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157
800
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13
248
800
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50-1,400
6
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300
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Crossing at Ghost River COCHRANE
10-100
7
24
50
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Days Inn Calgary South
5-300
7
134
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Deerfoot Inn & Casino CALGARY
5-450
15
188
Delta Bow Valley Hotel CALGARY
220-500
10
Delta Calgary Airport
4-200
Delta Calgary South
Carriage House Inn CALGARY
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20,000 sq. ft. of meeting space; many of the meeting rooms boast natural light.
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Eleven well-appointed function rooms that vary in size and capacity, offering flexibility for all meetings and events.
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With PCMAA-trained conference service managers and one-hour response time, Delta is committed to your success.
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2,000
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394
160
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18
296
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16
252
464
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Econo Lodge Inn & Suites University CALGARY
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82
62
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Econo Lodge Motel Village CALGARY
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55
42
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60-350
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500
7
201
268
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Four Points by Sheraton Calgary West
10-200
6
150
100
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Glenbow Museum CALGARY
210-600
7
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70
4
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100
20-1,500
10
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1,400
Hilton Garden Inn Calgary Airport
1,700
3
135
200
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Holiday Inn Calgary Macleod Trail South
5-300
7
151
217
Hotel Alma at the University of Calgary
12-125
6
96
Hotel Arts CALGARY
10-600
9
Hotel le Germain Calgary
5-100
9
Heritage Park Historical Village CALGARY
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South Calgary's largest full-service hotel with easy access from all areas of the city.
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Located in the heart of town, providing easy access to many local points of interest, including the U of C.
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Guests will appreciate the hotel's many amenities, including free Easy Starts breakfast and free local calls. Bright, open spaces; designed for efficiency; LEED Platinum certified, and equipped with a 30 ft. screen and sound system.
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250
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143
197
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Event venue of choice in Calgary with a service commitment to our clients from planning to execution.
8,000 sq. ft. meeting space, full service in-house catering, AV equipment and economical prices.
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Featuring 20,000 sq. ft. of event facilities on the main floor with two conference entrances and complimentary parking.
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Global Business Centre CALGARY
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Located on Macleod Trail between two major shopping centres.
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Executive Royal Hotel North Calgary
It is a beautiful and impressive site to host an event. Plenty of free parking, access to catering, free Wi-Fi.
A natural setting with all of the modern amenities to allow your company to realize real progress and see results.
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Situated on an island in the Bow River, the Calgary Zoo offers a totally unique meeting and event venue.
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Energy Environment Experiential Learning at the University of Calgary
Connected to three four-star hotels; 122,000 sq. ft. of flexible meeting space.
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Stampede Park is your one-stop event planning solution.
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Directly attached to the Calgary Telus Convention Centre.
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Conveniently located, complimentary parking, featuring over 14,000 sq. ft. of meeting space.
With 201 newly designed guest rooms, you can find guest rooms to suit your travelling needs. Full-service hotel conveniently situated within walking distance of the University of Calgary and McMahon Stadium.
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Cardel Theatre CALGARY
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Offering 25 years of know-how, Epcor Centre is known for providing rental clients with exceptional experiences.
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A personal touch to arranging grand occasions, conferences, seminars, social events and weddings.
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Experience a 100 per cent smoke-free environment; dedicated to providing a clean, comfortable and relaxing atmosphere.
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Spaces featuring art, culture and Alberta history. Tiered auditorium seats 210; space for 600-person receptions.
The Global Business Centre is a unique business resource located in downtown Calgary on 8th Avenue.
Distinctive period venues offer an escape from the ordinary. Your guests will rave about the outstanding experience.
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Professional catering services to help make your event a success; 1,500 sq. ft. of divisible meeting space.
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5,000 sq. ft. flexible function space, offering free parking and a wide range of day package options.
Located in the heart of the University of Calgary campus; C-Train access on campus; 10 minutes from the downtown core. •
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Expanded 11,500 sq. ft. meeting facility; award-winning menu. Designed with a fusion of style and substance, the hotel is located in the heart of downtown Calgary.
MARCH 2014
ALBERTAVENTURE.COM 69
Catering BBQ BusinessServices AV Equipment Internet ExhibitAccess Pool Exercise Golf(<5mins.) Hiking HealthServices
CALGARY & AREA
Group Size
Meeting Rooms
Guest Rooms
Parking
Hyatt Regency CALGARY
10-1,300
22
355
164
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International Hotel Suites Calgary
10-100
7
248
100
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Specializing in customized intimate meetings, banquets and special events for groups between 10 and 100.
Kahanoff Conference Centre CALGARY
2-250
6
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Kahanoff staff are there to assist with every stage of your event, from the initial planning to last-minute requests.
Kensington Riverside Inn CALGARY
10-60
2
19
14
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Lakeview Signature Inn Calgary Airport
2-100
2
120
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100
1,500
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Metropolitan Conference Centre CALGARY
2-600
8
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Mount Royal University Events & Conference Services CALGARY
1-600
20
3
1,175
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14
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Olympic Volunteer Centre at the University of Calgary
10-900
1
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192
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Radisson Hotel Calgary Airport
2-450
12
185
300
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300
11
201
90
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Ramada Plaza Calgary Airport Hotel & Conference Centre
5-500
8
210
425
SAIT Polytechnic CALGARY
8-540
37
1,170
2,100
Sandman Hotel & Suites Calgary Airport
2-110
4
200
200
Sandman Hotel & Suites Calgary South
2-120
4
177
Sandman Hotel Calgary City Centre
10-150
3
15-17,000 2-40
Lynnwood Ranch ALDERSYDE MacEwan Event Centre CALGARY
Nuvo Hotel Suites CALGARY
Ramada Hotel Downtown Calgary
Scotiabank Saddledome CALGARY Service Plus Inns & Suites CALGARY
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With the city's largest hotel ballroom, Hyatt Regency is one of Calgary's premier venues for meetings and special events.
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Available for booking in its entirety, Kensington Riverside Inn's intimate size is perfectly suited to executive retreats.
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Large rooms, divisible to two equal units. Total space accommodates 100 guests.
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Offers a relaxed and private atmosphere in a country setting. •
A student-owned non-profit where 100 per cent of proceeds are dedicated to supporting 25,000 U of C students.
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This conference centre is a contemporary non-residential facility with 20,000 sq. ft. of meeting space.
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A Gold LEED certified facility, state-of-the-art AV equipment, on-site professional co-ordinators and full catering amenities.
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A Calgary boutique apartment hotel where contemporary design meets the convenience of home.
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Exceptional service and quality all at a reasonable price with a personal touch. We specialize in intimate meetings.
200
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Within a five-minute drive from Silverwing Golf Course; indoor pool, bike path and ethernet plug-ins.
301
200
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Located in the downtown core directly on the C-train line; underground parking.
3
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900
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Overlooking McMahon Stadium football field, home of the Calgary Stampeders; 2,400 sq. ft. hardwood dance floor; full services offered. Ten minutes from both the airport and downtown; easy access to shopping, entertainment and business districts. The Ramada Hotel Downtown Calgary offers 201 tastefully appointed rooms in downtown Calgary. Conveniently located in Calgary's NE business district (Barlow & 32 Avenue); offering full services and facilities. Central location, affordable rates and a wide range of facilities.
Plan a memorable meeting for your guests that includes dinner, a hockey game or a concert. The Emerald Room, with its natural light, can be split into two smaller rooms with on-site AV and free Internet.
Thank You! On behalf of Alberta Venture, our program partner KPMG Enterprise and sponsors ATB Business, Executrade Consultants, Field Law and Strategic Group, thank you to everyone who attended the Fast Growth 50 Conference and Awards Reception!
Alberta Venture would also like to thank its sponsors for their support in making the conference such a success. Your generous contributions make it possible for us to recognize and celebrate the achievements of Alberta’s fastest growing companies. FOR EXCLUSIVE WEB COVERAGE OF THE CONFERENCE VISIT: ALBERTAVENTURE.COM/FG50HOME Presented By
Sponsored By
Meeting Rooms
Guest Rooms
Parking
Sheraton Cavalier Hotel Calgary
10-375
16
306
350
Sheraton Suites Calgary Eau Claire
10-350
11
323
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Southern Alberta Jubilee Auditorium CALGARY
2,500
8
-
Spruce Meadows CALGARY
8-400
4
450
Catering BBQ BusinessServices AV Equipment Internet ExhibitAccess Pool Exercise Golf(<5mins.) Hiking HealthServices
Group Size
CALGARY & AREA
For a complete listing of Vancouver, Lower Mainland, and Vancouver Island meeting spaces, visit albertaventure.com/mcpg2015
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Calgary's four-star destination convention hotel; dedicated on-site meeting specialists and experienced catering team.
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11,000 sq. ft. of flexible meeting space will provide your team a comfortable environment to achieve their goals.
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The stage for a truly memorable experience for you and your guests, blending imagination and sophistication for any event.
1
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400
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A facility that can provide a 120-item buffet in addition to full access to our stage and professional AV equipment.
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254
200
A cost-effective meeting space with attention to detail; staff will assist with planning, meeting set-up and room configuration.
24-300
12
100
500
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24
525
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1-1,500
5
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1,200
Art Gallery of Alberta EDMONTON
10-500
5
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-
Best Western Cedar Park Inn EDMONTON
12-150
4
192
125
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Best Western Denham Inn & Suites LEDUC
12-250
6
95
200
Best Western South Edmonton Inn & Suites
20-50
1
105
Best Western Westwood Inn EDMONTON
10-500
9
Campus Tower Suite Hotel EDMONTON
2-100
Stage West Theatre Restaurant CALGARY Travelodge Calgary Macleod Trail CALGARY
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Calgary's premier performing arts venue is suited for any event.
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300
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Holding an impressive 10,000 sq. ft. of banquet facilities, located on Stony Plain Road.
3
90
100
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Located in the heart of the University of Alberta's main campus, five minutes from downtown. Panoramic views.
60
1
44
18
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Chateau Lacombe Hotel EDMONTON
5-1,100
14
307
600
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Chateau Louis Hotel & Conference Centre EDMONTON
10-330
12
138
400
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Chateau Nova Edmonton
10-250
4
153
160
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University of Calgary-Meetings and Special Events Westin Calgary WinSport Canada Olympic Park CALGARY
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Over 42,000 sq. ft. of meeting and event space, with 12 meeting and large event spaces.
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25 updated meeting rooms are 100 per cent wind-powered and offer over 26,000 sq. ft. of space for your next conference. WinSport is Calgary’s premier venue with outstanding staff that will help make your event unlike any other you've experienced.
EDMONTON & AREA
Canterra Suites Hotel EDMONTON
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Soaring spaces and state-of-the-art features. AGA is an exceptional venue for private functions.
Located on Edmonton's main thoroughfare and just minutes away from historic Old Strathcona.
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This facility offers large business and mini-suites; all-inclusive, one-day meeting packages available.
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This Edmonton hotel is minutes away from the Old Strathcona District, the Royal Alberta Museum and shopping.
A good site for meetings lasting several days with lots of natural light. 14,000 sq. ft. of meeting space across 14 conference rooms; committed to your successful meeting. Located across from City Centre Airport. Superior soundproofing, SMART Boards in select rooms. Nova Hotels offers competitive rates and exceptional service.
YOUR MEETING AND CONVENTION DESTINATION! Engage and inspire your delegates when you make the Edmonton EXPO Centre your next destination for your meeting or convention. Conveniently located minutes from the downtown core with 522,000 sq. ft. of conference, meeting and exhibit space, this premiere venue features: • Natural Light • Customizable Space • Expertly prepared dining experiences complete with authentic local foods edmontonexpocentre.com
Catering BBQ BusinessServices AV Equipment Internet ExhibitAccess Pool Exercise Golf(<5mins.) Hiking HealthServices
Group Size
Meeting Rooms
Guest Rooms
Parking
Citadel Theatre EDMONTON
10-680
12
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Coast Edmonton East Hotel SHERWOOD PARK
8-800
17
258
600
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Coast Edmonton Plaza Hotel
2-600
9
299
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Comfort Inn & Suites EDMONTON
50
1
108
50
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Comfort Inn West Edmonton
20
1
100
80
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Courtyard by Marriott Edmonton Downtown
50-80
5
177
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Days Inn & Suites West Edmonton
2-250
3
108
100
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1
76
100
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10-400
9
169
169
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10-1,800
20
237
450
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DoubleTree by Hilton West Edmonton
10-600
15
238
800
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Edmonton Hotel & Convention Centre
25-400
6
168
700
Edmonton Marriott at River Cree Resort
10-600
18
249
Executive Express Hotel Leduc NISKU
75
1
10-350
EDMONTON & AREA
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Professional, down-to-earth meeting planners will help personalize your event to ensure a great impression.
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Centrally located backdrop for your next meeting or special event.
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Catering professionals take care to ensure a successful experience. One kilometre from the Alberta Legislature and the Shaw Conference Centre. Located near West Edmonton Mall and offering business class rooms with enhanced features for corporate travellers.
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Renovated in 2012, located on the riverbank. The perfect facility for your next event with a team committed to customer satisfaction. Recently renovated; the perfect facility to host your next event. We ensure great food and quality service.
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Conveniently located to handle your important business meetings and conferences with 11,000 sq. ft. of space.
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Upscale conference space featuring a 13,000 sq. ft. ballroom and panoramic view of the city.
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1,900
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This hotel offers 44,000 sq. ft. of meeting space, luxurious guest rooms and 4.5-star service.
107
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A large 1,800 sq. ft. boardroom with breakout area is available to host any function you require.
7
235
200
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8,000 sq. ft. of meeting space with banquet and catering services. Guest room renovations complete.
15-4,000
16
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6,200
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5-350
8
199
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10-1,000
7
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500
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Four Points by Sheraton Edmonton South
15-350
12
139
217
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Francis Winspear Centre for Music EDMONTON
15-1,716
6
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Hampton Inn & Suites by Hilton EDMONTON WEST
12
1
103
100
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Business travellers will appreciate the intimate boardroom setting and complimentary high-speed Internet.
Hampton Inn by Hilton Edmonton South
70
2
100
150
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Comfortable beds; free high-speed Internet; bright multi-purpose meeting space.
Hilton Garden Inn West Edmonton
150
5
160
160
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Holiday Inn Conference Center Edmonton South
5-400
7
224
200
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Holiday Inn Express & Suites EDMONTON
10-100
4
102
150
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•
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Holiday Inn Express & Suites NISKU
5-40
1
120
150
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Holiday Inn Express Edmonton Downtown
1-200
6
140
75
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127
120
80
1
29
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10-2,000
60
409
1,700
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400
6
184
80
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Days Inn Downtown Edmonton Delta Edmonton Centre Suite Hotel Delta Edmonton South Hotel & Conference Centre
Executive Royal Inn West Edmonton Edmonton Expo Centre EDMONTON Fairmont Hotel Macdonald EDMONTON Fort Edmonton Park
Home2 Suites by Hilton West Edmonton Hotel Selkirk at Fort Edmonton Park MacEwan University EDMONTON Matrix Hotel EDMONTON
72 ALBERTAVENTURE.COM M A R C H 2 0 1 3
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Perfect for business meetings, conferences, events and weddings. Newly renovated West Edmonton hotel offers 38,000 sq. ft. of event space.
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Offers period facilities with modern amenities.
The state-of-the-art boardroom, ballroom and breakout rooms are equipped with Internet and full media services.
Edmonton's preferred facility for music performances, corporate or private meetings, receptions and fundraisers.
Focused on the business traveller, offering free amenities for each guest. Designed with both comfort and efficiency in mind, the meeting facilities offer easy access and natural lighting. Professional and easy-going environment with on-site catering.
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Perfect location for the smaller meetings. Quiet, modern and very accommodating.
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Professional and easy-going environment with excellent catering. Extended-stay hotel with Wi-fi, HDTV, full kitchen, free breakfast, and patio barbecue grill. Also includes saline pool, gym, laundry services.
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Located downtown with views of the river valley, this landmark hotel features function space with unique characteristics.
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15,800 sq. ft. of meeting space and 14 flexible meeting spaces. Extensive menu selections, free Internet access and parking.
Western Canada’s largest conference and trade show facility, with 522,000 square feet of possibilities.
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Newly renovated property; non-smoking hotel; 950 sq. ft. meeting room.
Quiet corporate retreat facility in beautifully wooded Edmonton river valley.
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Conveniently located in downtown Edmonton, MacEwan offers an ideal learning environment in a modern meeting facility. Edmonton's newest boutique hotel and conference space.
Catering BBQ BusinessServices AV Equipment Internet ExhibitAccess Pool Exercise Golf(<5mins.) Hiking HealthServices
Group Size
Meeting Rooms
Guest Rooms
Parking
35
3
98
-
15-1,500
6
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900
NAIT EDMONTON
40-45
18
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Nisku Inn & Conference Centre
10-400
10
156
250
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Northern Alberta Jubilee Auditorium EDMONTON
2,500
4
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910
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Northlands EDMONTON
20,000
34
-
6,500
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Nova Inn Acheson
10-40
1
103
110
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350-720
4
-
230
5-75
5
159
200
10-1,200
17
235
Ramada Edmonton Hotel & Conference Centre
15-800
24
Rexall Place
18,500
Sandman Hotel Edmonton West
EDMONTON & AREA Metterra Hotel EDMONTON
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400
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428
900
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6,200
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6-300
5
149
700
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Sands Hotel & Conference Centre EDMONTON
10-400
4
53
300
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Sawridge Inn & Conference Centre Edmonton South
10-200
7
136
92
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Servus Credit Union Place ST. ALBERT
10-2,000
4
-
1,250
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Shaw Conference Centre EDMONTON
15-6,000
26
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-
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10-600
9
313
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10-2,000
7
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300
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25-125
3
90
350
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15
1
219
250
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Union Bank Inn EDMONTON
10-130
3
34
34
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University of Alberta - Alumni House EDMONTON
10-100
6
-
11
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University of Alberta - Enterprise Square EDMONTON
1-400
8
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University of Alberta - Lister Centre EDMONTON
10-300
9
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500
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Varscona Hotel EDMONTON
4-120
7
89
200
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15-18,000
9
300
20,000
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5-1,100
16
416
143
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2-120
4
105
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10-500
15
250
300
Millennium Place SHERWOOD PARK
Oasis Centre - Corporate & Social Event Venue EDMONTON Quality Inn West Harvest EDMONTON Radisson Hotel Edmonton South
Sutton Place Hotel EDMONTON Telus World of Science EDMONTON Travelodge Edmonton East Travelodge Edmonton South
West Edmonton Mall Westin Edmonton Wingate by Wyndham EDMONTON
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Ideally suited for boardroom meetings and training sessions.
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Newly renovated, with banquet facilities for 1,280 guests and amenities for tournament and sporting competitions.
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Offers technical support, full catering and breakout spaces.
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For a complete listing of Vancouver, Lower Mainland, and Vancouver Island meeting spaces, visit albertaventure.com/mcpg2015
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Full-service hotel located three minutes from EIA and equipped to host your next conference for up to 400 people. A state-of-the-art facility for large group presentations.
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Offers space for corporate and education events, including conferences, product launches and award ceremonies.
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Choice Hotels gold winner for service & hospitality. Alberta Hotel & Lodging Assn. housekeeping award of excellence winner.
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The Radisson Hotel Edmonton South offers the new state-of-the-art Silverbirch Conference Centre.
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An affordable alternative in northeast Edmonton. Excellent food and easy access throughout the city. •
Edmonton's flagship convention centre offers 150,000 sq. ft. of versatile exhibition and meeting space. •
Edmonton's premier business address, located in the centre of town and within the arts and entertainment district. This facility provides distinct areas for corporate product launches, meetings and intimate wine-and-cheese receptions.
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Full-service hotel with 9,000 sq. ft. of meeting space, artfully presented catering; complimentary shuttle. Offers meeting rooms, a 2,000-seat performance arena and extensive fitness facilities including three NHL-sized hockey arenas.
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Sandman Hotel Edmonton West is a full-service hotel for families or corporate travellers.
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Offers up 40,000 sq. ft. of conference and meeting space with full-service conference and banquet facilities. An 18,500 seat arena consistently ranked as one of the top entertainment destinations in North America
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Nova Hotels offers competitive rates and exceptional service.
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Western Canada's largest exhibition space.
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Perfect for small groups looking for a personalized meeting service at an economical price; able to accommodate on short notice.
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Located 15 minutes from the airport, downtown and West Edmonton Mall.
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At Union Bank Inn all three of our banquet facilities boast stunning fireplaces, exceptional service and quality food.
This bungalow-style home features four meeting areas plus living room/dining room.
The atrium is a bright open space ideal for receptions, gala dinners, tradeshows and networking events.
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Our facilities offer bright and spacious meeting rooms with large windows available year round.
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Classic facilities in which to conduct meetings, product launches, receptions and training sessions. Located on Whyte Avenue.
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WEM's attractions are perfect for large company gatherings. Edmonton's most inspiring venue for business meetings, banquets and social affairs. Spacious meeting rooms offer natural light.
CENTRAL ALBERTA Augustana Campus, University of Alberta CAMROSE
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Augustana is a growing rural campus of the U of A. Perfect for meetings, workshops and gatherings.
MARCH 2014
ALBERTAVENTURE.COM 73
Catering BBQ BusinessServices AV Equipment Internet ExhibitAccess Pool Exercise Golf(<5mins.) Hiking HealthServices
Group Size
Meeting Rooms
Guest Rooms
Parking
600
2
-
236
Best Western Plus Camrose Resort Casino
20-400
3
113
200
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Black Knight Inn RED DEER
5-350
8
98
200
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Holiday Inn & Suites South Red Deer
12-410
5
114
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Holiday Inn 67 Street RED DEER
10-350
8
142
350
Lloydminster Exhibition Association
5-3,000
8
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-
Ramada Inn & Suites RED DEER
2-70
2
90
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Red Deer Lodge Hotel & Conference Centre
4-120
11
233
700
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40
1
80
130
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10-2,500
14
241
750
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50
1
44
100
10-7,187
13
-
4,200
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50-1,600
6
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350
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Best Western Hotel & Suites Grande Prairie
35-250
2
100
100
Chateau Nova Fort McMurray
10-150
4
165
Dunvegan Inn & Suites FAIRVIEW
10-275
5
Executive House Suites Hotel & Conference Centre HIGH LEVEL
5-150
Holiday Inn & Suites Conference Centre Grande Prairie
CENTRAL ALBERTA Badlands Community Facility DRUMHELLER
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11,900 square feet of flexible event space, 20,900 square feet of open trade show space with a variety of local caterers to meet your culinary tastes!
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Our state-of-the-art meeting rooms feature lots of natural light with fresh air access windows.
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Located in downtown Red Deer with 9,000 sq. ft. of event space. An in-house AV supplier will assist with events.
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170
80
100
4
32
75
5-800
6
146
146
Nova Inn Slave Lake
10-40
1
89
Pomeroy Hotel & Conference Centre Grande Prairie
10-500
7
Pomeroy Inn & Suites Grande Prairie
5-200
Quality Hotel & Conference Centre FORT MCMURRAY
Royal Hotel LLOYDMINSTER Sheraton Red Deer Hotel Vegreville Garden Inn
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The 6,996 sq. ft. ballroom can accommodate up to 500 people for a seated banquet. The boardroom accommodates up to 16 people.
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The Black Knight Inn aspires to create memorable experiences through genuine hospitality.
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A dynamic multi-purpose hotel that offers first-class amenities with entertainment, conference and meeting facilities.
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15,800 sq. ft. of meeting space, 14 meeting rooms with AV equipment and technical support. Lloydminster's largest convention centre featuring newly constructed rooms for meetings, galas and trade shows.
Lloydminster's finest setting for banquets and meetings. Spacious and modern rooms.
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Sheraton Red Deer Hotel features over 53,000 sq. ft. of conference space in 14 meeting rooms.
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Vegreville Garden Inn offers competitive rates and great service.
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Hosts over 1,500 events, and 1.5 million visitors. Central Alberta’s largest convention, trade, agriculture, entertainment, and sports facility.
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Over 100,000 sq. ft. of multi-use space that is ideal for conferences, trade fairs, seminars and more.
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This hotel offers 2,500 sq. ft. of meeting and banquet space, available for weddings, corporate functions and board meetings.
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100
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204
250
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4
152
152
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15-600
6
153
250
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Sawridge Inn & Conference Centre FORT MCMURRAY
10-800
8
188
450
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Sawridge Inn & Conference Centre PEACE RIVER
5-300
6
142
250
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Stonebridge Hotel GRANDE PRAIRIE
6-300
5
124
200
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The Stonebridge Hotel is known in Grande Prairie as a great place to host all styles and sizes of meetings and events.
Stonebridge Hotel Fort McMurray
20-350
4
135
200
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Known throughout Fort McMurray as one of the best venues for meetings, conferences, weddings and banquets.
TEC Centre at Evergreen Park GRANDE PRAIRIE
8-2,000
8
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2,500
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2-180
1
97
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24
1
35
45
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Westerner Park RED DEER
NORTHERN ALBERTA Athabasca Regional Multiplex
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Nova Hotels takes pride in offering competitive rates and exceptional service.
Let our 40 years of hospitality experience work for you. We do it all, from small afternoon meetings to week-long conferences.
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With all amenities to meet your every need and a team to answer all your questions, you can't go wrong.
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Over 12,000 sq. ft. of meeting and banquet space, available for corporate functions, meetings and trade shows.
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Nova Hotels offers competitive rates and exceptional service.
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Over 11,000 sq. ft. of modern function space, including two large formal, divisible ballrooms. The region’s premier, full-service hotel.
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Over 1,400 sq. ft. of meeting and banquet space for corporate functions, board meetings and training sessions.
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Convenient conference facilities, featuring alternative menu creations in Fort McMurray. •
11,000 sq. ft. of meeting space with an elegant entrance and pre-function area; professional catering. Largest meeting facilities in town, full-service hotel with flexible menus and professional event planners.
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Over 115,000 sq. ft. of exhibit space and breakout rooms for small or large events/functions.
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Offering spectacular mountain views, the hotel features 97 nicely appointed guest rooms and is close to town centre.
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An idyllic venue to host executive mountain retreats featuring a beautiful meeting room.
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ROCKY MOUNTAINS Amethyst Lodge JASPER Baker Creek Chalets & Bistro LAKE LOUISE
74 ALBERTAVENTURE.COM M A R C H 2 0 1 3
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Catering BBQ BusinessServices AV Equipment Internet ExhibitAccess Pool Exercise Golf(<5mins.) Hiking HealthServices
Group Size
Meeting Rooms
Guest Rooms
Parking
5-30
1
89
55
5-1,000
60
400
225
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Banff Park Lodge Resort Hotel & Conference Centre
5-500
19
211
176
Banff Voyager Inn
6-150
5
88
60
Bayshore Inn Resort & Spa WATERTON PARK
15-200
3
70
100
Best Western Jasper Inn & Suites
70
2
143
100
Black Cat Guest Ranch HINTON
32
2
16
20
Blackstone Mountain Lodge CANMORE
80
1
120
200
Brewster's Mountain Lodge BANFF
30
2
77
46
5-120
5
108
60
60
2
119
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-
-
5
20
Delta Banff Royal Canadian Lodge
10-80
3
99
60
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Delta Lodge at Kananaskis
10-500
24
412
250
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Fairmont Banff Springs
1,000
52
768
450
Fairmont Chateau Lake Louise
12-750
26
554
Fairmont Jasper Park Lodge
15-600
15
18
Grande Rockies Resort CANMORE
ROCKY MOUNTAINS Banff Aspen Lodge Banff Centre
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For a complete listing of Vancouver, Lower Mainland, and Vancouver Island meeting spaces, visit albertaventure.com/mcpg2015
An ideal setting for smaller meetings. Modern guest rooms and personalized service to ensure your event is a success.
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The Centre is renowned for Canadian and international business, scientific and educational meetings.
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Centrally located in downtown Banff. Well-appointed resort-style hotel with full conference facilities and services.
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Offers facilities for small- to medium-sized conferences, meetings and retreats of up to 150 delegates. •
Successfully hosts and caters business meetings and conventions on a beautiful lakefront property.
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Located in Jasper National Park, offering a banquet room for groups of up to 70 people for meetings and retreats.
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A unique scenic location in the Rocky Mountains for undisturbed, productive business meetings.
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250
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446
100
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2
20
20
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6-100
5
150
150
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Holiday Inn Canmore
15-150
4
99
100
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Jasper Riding Stables
2-200
1
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Juniper Hotel & Bistro BANFF
10-100
3
52
80
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Lobstick Lodge JASPER
90
1
96
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Marmot Lodge JASPER
100
1
75
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Mount Royal Hotel BANFF
5-60
3
135
80
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Nova Inn Edson
10-40
1
144
200
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Nova Lodge Hinton
20-60
1
103
110
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Num-Ti-Jah Lodge LAKE LOUISE
30-40
1
16
30
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A rustic resort located 30 minutes north of Lake Louise. Offering a relaxing, intimate location for functions and meetings.
Overlander Mountain Lodge HINTON
30
2
38
30
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Authentic mountain lodge meetings happen at the Overlander Lodge. Groups will enjoy spectacular views.
Pocahontas Cabins JASPER
70
1
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Close to Miette Hot Springs, great service banquet venue for corporate retreats for up to 70 people.
Quality Resort Chateau Canmore
120
3
93
93
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Buffalo Mountain Lodge BANFF Chateau Jasper Crowsnest Mountain Resort COLEMAN
Georgetown Inn CANMORE
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With a focus on Rocky Mountain cuisine, this lodge offers modern meeting facilities in a rustic, peaceful setting.
Easily accessible from Hwy 3 and open year-round. A secluded and quiet location for undisturbed retreats.
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This resort offers a combination of meeting/event space, exciting activities, convenient flight and travel access.
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Journey to this chateau on a scenic road featuring vistas of soaring mountains and abundant wildlife.
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Situated between captivating mountains and sparkling lakes, this location provides the perfect backdrop for your meeting.
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Beautifully appointed, professionally staffed banquet rooms, conference centre and meeting facilities.
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This hotel nestled right in the Canadian Rockies will offer a beautiful getaway with a relaxing night's sleep.
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Offers corporate retreats as an adventure: the opportunity to explore the Rocky Mountains on horseback.
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Creates an ambience for your Banff meeting, providing inspiration and serenity to fuel creativity, ingenuity and teamwork.
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This hotel is located at the base of the Rockies, only five minutes from downtown Jasper.
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Located at the east end of town, the hotel provides 106 well-appointed guest rooms and is close to Jasper's town centre.
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Brewster's only offers one meeting space, so any event/meeting will always have its full attention, care and hospitality.
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Provides 119 luxury guest rooms ideally located near downtown and featuring an award-winning dining room.
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This property has something for everyone with fully furnished suites and breathtaking views of the Rockies.
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Elegance and true Canadian tradition in the heart of Kananaskis.
Ideal for small groups. One boardroom table and gas fireplace.
This historic hotel is moments from activities, attractions and sites and features charming accommodations.
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Elegance and true Canadian tradition in the heart of Banff National Park.
Nova Hotels offers competitive rates and exceptional service. Nova Hotels offers competitive rates and exceptional service.
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All-inclusive conference packages. Quiet meeting rooms for groups of all sizes.
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Catering BBQ BusinessServices AV Equipment Internet ExhibitAccess Pool Exercise Golf(<5mins.) Hiking HealthServices
Group Size
Meeting Rooms
Guest Rooms
Parking
Radisson Hotel & Conference Center Canmore/Banff
8-460
10
164
150
Rafter Six Ranch Resort EXSHAW
10-150
3
29
1,000
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Rimrock Resort Hotel BANFF
1-500
18
346
240
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10-300
8
153
100
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18
1
40
75
2-300
8
-
300
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300
3
215
200
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Spruce Grove Inn BANFF
6-150
5
120
0
Stoney Nakoda Resort & Casino MORLEY
14-450
5
111
250
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Waterton Lakes Lodge Resort
10-120
3
80
100
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25
2
50
90
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Coast Lethbridge Hotel & 20-800 Conference Centre visitlethbridge.com
5
103
142
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Coast Medicine Hat Hotel
2-100
2
42
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Esplanade Arts & Heritage Centre MEDICINE HAT
15-400
5
-
110
Heritage Inn & Suites BROOKS
6-40
1
61
50
Heritage Inn Hotel & Convention Centre HIGH RIVER
5-400
4
73
Heritage Inn Hotel & Convention Centre PINCHER CREEK
5-260
3
Heritage Inn Hotel & Convention Centre TABER
5-300
Heritage Inn Hotel & Convention Centre BROOKS
ROCKY MOUNTAINS
Sawridge Inn & Conference Centre JASPER Silver Creek Lodge CANMORE Silvertip Resort CANMORE Solara Resort & Spa CANMORE
Windtower Lodge & Suites CANMORE
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Sales and catering team works to guarantee 100 per cent satisfaction.
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Offers exceptional views of the Rocky Mountains, exceptional service and world-class cuisine.
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Full service hotel with spacious facilities; perfect for conferences, retreats and weddings. World-class cuisine and spa.
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Offers a unique environment with all the comforts of a cosmopolitan lifestyle in the Canadian Rockies.
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Located beside Banff Voyager Inn which offers facilities for small- to medium-sized conferences, meetings and retreats.
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Offering an authentic western atmosphere and experience where groups can focus on their goals and recharge.
State-of-the-art conference facility, rustic elegance, 360 degrees of mountain views. •
Three Peaks Conference Centre is a state-of-the-art conference facility equipped with the latest AV technology.
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Offers productive and relaxing meeting and event space for your corporate retreats, complete with shuttle service.
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Located in beautiful Waterton National Park and open all year, offering exclusive group rates and multiple venue options.
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For meetings that are productive and motivating, experience Windtower's "Mountain Meetings in Minutes."
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Let their professional meeting planners assist you in personalizing your event to ensure a great impression.
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SOUTHERN ALBERTA
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A unique setting for weddings, receptions, workshops and seminars. Spectacular views of the river valley.
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This boutique hotel offers superior customer service, meeting space and menu selection for smaller groups.
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Ideal alternative to Calgary without sacrificing quality. Superior banquet and meeting facilities, menu selection and service.
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A full-service hotel near Waterton Lakes National Park with superior banquet/meeting facilities, menu selection and customer service.
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A full-service hotel located off Highway 3 with superior banquet and meeting facilities, menu selection and customer service.
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A full-service hotel located off Highway 1 with superior banquet and meeting facilities, menu selection and customer service.
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Exhibition Park promotes agriculture, trade, tourism, education and recreational events that benefit the economy.
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The Lethbridge Lodge provides ample parking and we pride ourself on our ability to address all of your conference needs.
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Professional, down-to-earth meeting planners will help personalize your event to ensure a great impression.
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Professional, down-to-earth meeting planners will help personalize your event to ensure a great impression.
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70
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16-500
5
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100
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15-1,800
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Lethbridge Lodge Hotel & 10-850 Conference Centre visitlethbridge.com
9
189
450
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Medicine Hat Lodge Resort
550
9
223
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Ramada Lethbridge
2-180
5
119
250
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Travelodge Strathmore
10-270
4
121
100
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The Coast Hotel is very accommodating and will do its best to be sure your function is the best it can be.
Lethbridge Exhibition Park
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The hotel's catering and banquet staff boast many years of experience and professionalism in servicing a variety of events. Provides full-service on-site food, beverage and AV rentals. Executive suites available. Fridge and microwave in every room.
VANCOUVER & LOWER MAINLAND Beach Gardens Resort & Marina POWELL RIVER
0-200
3
48
300
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Cedars Inn Hotel & Convention Centre GIBSONS
200
2
45
100
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Coast Abbotsford Hotel & Suites
70
2
60
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Coast Plaza Hotel & Suites VANCOUVER
10-600
22
269
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Coast Tsawwassen Inn DELTA
2-200
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90
100
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76 ALBERTAVENTURE.COM M A R C H 2 0 1 3
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Full facility hotel with deluxe waterfront accommodations, conference rooms, restaurant/pub, beer & wine store, indoor pool/weight room. Central location with ample courtyard areas to relax and regroup.
Complimentary continental breakfast. Easy access to Vancouver, Richmond, U.S. border and Vancouver Island.
Catering BBQ BusinessServices AV Equipment Internet ExhibitAccess Pool Exercise Golf(<5mins.) Hiking HealthServices
VANCOUVER & LOWER MAINLAND
For a complete listing of Vancouver, Lower Mainland, and Vancouver Island meeting spaces, visit albertaventure.com/mcpg2015
Group Size
Meeting Rooms
Guest Rooms
Parking
700
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1,500
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Features 200 guest rooms and suites and 10 meeting spaces (including the 7,500 sq. ft. Grand Villa Ballroom).
Delta Vancouver Airport RICHMOND
2-600
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Situated in a beautiful garden setting on the banks of the Fraser River with a 138-ship marina.
Empire Landmark Hotel & Conference Centre VANCOUVER
10-320
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Hold your next event in versatile facilities with over 13,500 sq. ft. plus the Cloud 9 Revolving Restaurant.
Fairmont Chateau Whistler
2-1,300
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550
308
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Whistler's largest conference facility and resort hotel with over 20 years experience.
Fairmont Hotel Vancouver
1,500
12
556
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Granville Island Hotel VANCOUVER
2-100
5
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Hyatt Regency Vancouver
2,000
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Pacific Inn Resort SURREY
2-800
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Location, price, service and far enough away that your conference participants will not be distracted.
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Experienced banquet staff will help plan your event. Intimate atmosphere for meetings of up to 20 people.
5-500
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A conference destination with exceptional customer service, an award winning culinary team and close to the YXX Int'l Airport.
Sheraton Vancouver Wall Centre Hotel
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Host any size of event. Meeting specialists will work with you to ensure your expectations are exceeded.
St. Regis Hotel VANCOUVER
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Highly rated based on guest review sites. Rate inclusions make The St. Regis Hotel a business person's hotel.
10-300
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Skilled catering team, innovative menus, state-of-the-art AV equipment, elegant surroundings with natural light.
20-14,000
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Offers 471,000 sq. ft. of meeting space, unparalleled technical service and culinary excellence.
2,000
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Exceptional group venue in Whistler, the 6,500 sq. ft. facility regularly hosts special events and conferences.
15-250
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Newly renovated guest rooms, full-service meeting and conference facilities with top-notch catering services available.
Campbell River Maritime Heritage Centre
1-180
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Waterfront property. Gorgeous facility. Plenty of FREE parking. Close to accommodations, restaurants & shopping.
Chateau Victoria Hotel and Suites
1-50
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Walk to shopping, attractions, nature and conference centre. Extra large suites, free parking and a reputation for being "authentically local."
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Unique Canadian Tented Safari, all inclusive experience with the most adventure activities on land and sea.
Coast Bastion Hotel NANAIMO
8-400
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Professional, down-to-earth meeting planners will help personalize your event to ensure a great impression.
Coast Discovery Inn & Marina CAMPBELL RIVER
2-295
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Professional, down-to-earth meeting planners will help personalize your event to ensure a great impression.
180
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Professional, down-to-earth meeting planners will help personalize your event to ensure a great impression.
Delta Burnaby Hotel and Conference Centre
Quality Hotel Vancouver - Inn at False Creek Ramada Plaza & Conference Centre ABBOTSFORD
Sutton Place Hotel VANCOUVER Vancouver Convention Centre Whistler Conference Centre
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Located in the heart of downtown shopping and entertainment. Just steps from the famous public market and local galleries. In the heart of the business and shopping districts.
VANCOUVER ISLAND Best Western Tin Wis Resort - Tofino
Clayoquot Wilderness Resort TOFINO
Coast Victoria Harbourside Hotel & Marina
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5000 sq. ft of space with views of our practice facilities & greens and 4.5 star course-side accommodations.
Crowne Isle Resort & Golf COURTENAY
2-200
Delta Victoria Ocean Pointe Resort and Spa
10-400
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Fairmont Empress VICTORIA
10-1,500
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Inn On Long Lake NANAIMO
50
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Sooke Harbour House
2-150
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Tigh-Na-Mara Seaside Spa Resort PARKSVILLE
2-300
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Vancouver Island Conference Centre NANAIMO
10-1,300
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Victoria Conference Centre
10-1,500
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Ideally located directly on Victoria's beautiful inner harbour overlooking the city and Legislative Buildings.
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The Fairmont Empress is conveniently located in the heart of Victoria and is the city's landmark hotel.
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All guest and meeting rooms overlook beautiful Long Lake. Continental breakfast included for all overnight guests.
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Sooke's Harbour House takes pride in its unique and genuinely West Coast presence.
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The resort's conference centre is able to accommodate small meetings or large groups up to 300.
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West Coast decor and 38,000 sq. ft of space. A desirable venue for hosting your next conference. Downtown Victoria by the spectacular Inner Harbour. Bright, modern and technically advanced meeting place.
MARCH 2014
ALBERTAVENTURE.COM 77
April 22, 2015
Host Misha Glouberman Communication expert, teacher, and author
April 22, 2015
Unthink Erik Wahl Internationally recognized graffiti artist, author and entrepreneur April 23, 2015
Give and Take Adam Grant Award-winning teacher, researcher, and professor at Wharton School
ESB
ENERGY SERVICES BREAKFAST
CALLING ALL ENERGY SERVICES COMPANIES!
The first breakfast event in our 2015 series focuses on issues facing energy services companies of all sizes. This session will give tips and advice on how to survive in a low-price environment. Start your day off right by learning how to master your business from a panel of industry experts
March 18 | 7:30am-9:30am Nisku Inn & Conference Centre Nisku, AB
TICKETS: $65 + GST TABLE OF EIGHT: $520 + GST
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INDUSTRY REPORT
HEALTH CARE T H E V I TA L S
5.2
Average annual employment growth rate, 2011-2015
2.5%
219,300
Alberta Health Services
Albertans Employed
LARGEST EMPLOYER
PER CENT of Alberta’s GDP
THE PULSE
PREMIUM HEALTH
S
pending on health care is a mix of public and private dollars, with the public sector accounting for about 71 per cent of the total. In 2014, the Alberta government will spend about $18.5 billion on health care, or almost 40 per cent of its budget. Yet the system is frequently the target of accusations of poor planning and mismanagement. Part of the problem is Alberta’s dependence on resource revenues, which makes funding unpredictable. The president of the Alberta Medical Association recently called for a return of health premiums, which Albertans paid until 2009 in the amount of about $1,000 per family and half that for single people.
$18.5 billion Provincial spending on health care, 2014
THE NUMBERS
PER CAPITA SPENDING
(PUBLIC AND PRIVATE) Per person, Albertans spend the second most on health care of any province
Nfld & Lab $6,953 Alberta $6,783 Canadian Average $6,045
But as a percentage of provincial GDP, Alberta spends the least, at eight per cent
B.C. $5,865 Quebec $5,616
80
Underprepared, Overwhelmed Will new beds make a difference to the seniors’ housing market?
83
Unhealthy Innovation? Measured by patent filings, Alberta lags on innovation in health care
MARCH 2015
ALBERTAVENTURE.COM 79
I.R.HEALTH CARE
UNDERPREPARED, OVERWHELMED Alberta’s senior housing market is about to get more beds, but will it make a difference? BY J E S S E S N Y D E R In late 2014, media outlets in Alberta published first-hand accounts of seniors living in the province’s continuing care system. Taken together, they gave a grim account of the industry. A socalled “chronic shortage” of beds was pushing the costs of living for seniors to the highest levels in recent memory, seniors’ advocates claimed. Smatterings of stories, from mid2014 into early 2015, gradually added onto the mounting claims of over-occupancy. The statistics suggest there was good reason for the discontent. Canada’s long-term care system – and indeed Alberta’s – has been bursting at the seams for some years now. The industry is well aware of the statistics: average rates rose from $1,995 per suite in 2013 to $2,043 in 2014, among the highest ever recorded. According to the Canada Mortgage and Housing Corporation, which issues an annual report on senior care housing, Canada’s vacancy rate for seniors fell to 9.7 per cent in 2014, down from 10.3 per cent in 2013. Alberta is among the tightest of those markets. The lowest vacancy rate of major cities countrywide was Calgary, with 4.8 per cent vacancy; in Edmonton it was 7.1. But following the precipitous slide in oil prices beginning the end of 2014, there is reason to believe that Alberta could soon witness a reversal of that trend. With labour costs expected to fall amid the recent oil rout, some observers see new capacity coming online within a few years. Combined with a Canadian population quickly growing old, the potential has hardly been greater for companies providing seniors care and for the companies who own seniors’ residences. The question for industry is how to prepare for a potential overbuild resulting from this expected new capacity, and how to manage its reputation at a time when public trust seems decidedly low.
80 ALBERTAVENTURE.COM M A R C H 2 0 1 5
VACANCY RATES FOR SENIOR CARE HOUSING Vancouver Edmonton Calgary Toronto Ottawa-Gatineau Montreal Quebec City
2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014
11.4% 11.4% 7.3% 7.1% 7.5% 4.8% 16.2% 17.6% 13.0% 14.1% 8.4% 7.0% 6.3% 5.7%
AVERAGE MONTHLY RENTS FOR SENIOR CARE HOUSING Quebec Ontario Saskatchewan Alberta British Columbia
2013 2014 2013 2014 2013 2014 2013 2014 2013 2014
$2,577 $2,656 $4,584 $4,640 $3,597 $4,309 $3,784 $4.329 $5,720 $5,999
A central concern for senior care providers is that if enough companies expand at the same time, the result is a glut of new residences without the people to fill them. “This business has a relatively low barrier to entry; basically anybody can go and build a retirement residence,” says Vlad Volodarski, the CFO of Chartwell Retirement Residences, a REIT that invests in and operates long-term care facilities across Canada. “In provinces outside Alberta, we had situations where markets were overbuilt because developers who really are not operators decide it’s a good market to be in,” he says. “That’s another thing that worries us because we have no control over that.” A case in point is Toronto, which saw an average 17.6 per cent vacancy rate in 2014. Chartwell is one of the largest private providers of seniors’ care in the country, with a portfolio of over 200 facilities. But it plans to grow those numbers in coming years. Already in Alberta, there are signs that new capacity will be coming online: in October Premier Jim Prentice announced $120 million in funding to construct an additional 1,200 seniors’ care spaces around the province. The market for both long-term care and assisted living in Alberta has consistently paid off for investors. Between 1999 and 2009, the average return on investment in long-term care was 2.1 per cent, and 9.1 per cent for assisted living. But there are concerns that the market will be saturated in the near term, particularly after Prentice increased funding to continuing care providers in late 2014. Further threatening to overbuild the market is the movement of large U.S. corporations buying real estate in Canada, lured in by a shortage of senior care residences. Health-care REIT, a company with more than 1,200 healthcare facilities in its portfolio, many of which are senior care residences, has made its way into the Canadian market in recent years (it is partnered with Chartwell on 42 residences). Ventas, a Chicago-based company with more than 750 senior care facilities in its portfolio and a market cap of $22 billion, is also looking to increase its presence in Canada.
To many, this incoming capital, combined with falling construction costs in Alberta, would suggest the province’s senior care system is about to feel some relief, resulting in better services for customers. “It is good from the consumer perspective when you have a lot of competition,” Volodarski says. “If the consumer has choices, and their needs are not being met – even though it may charge less for these services – they would just move to a new residence.”
McEwen. McEwen’s daughter, who was stopping in for a visit, found her mother in an unstable condition, hardly able to breathe. All the while, staff went about their duties without seeming to notice. A ruling in late 2014 by the Protection for Persons in Care (PPC) confirmed the allegations, and held that McEwen’s treatment constituted “abuse.” It is unclear precisely how widespread such issues are. An annual report from the PPC
“ This business has a relatively low barrier to entry; basically anybody can go and build a retirement residence.” – VLAD VOLODARSKI, CFO, CHARTWELL RETIREMENT RESIDENCES
Bill Moore-Kilgannon, executive director of Public Interest Alberta, says that may be true for high-wealth seniors, but for many others it is not. Under the province’s First Available Bed system, which assigns seniors to residences anywhere within a 100-kilometre range, seniors can be fined for moving into a continuing care residency that hasn’t been designated to them. According to Moore-Kilgannon, such policies are a symptom of a deeper issue. The current capacity shortage, he says, has forced government to offload more responsibility on private companies. That dependence, the argument goes, gives way to companies focused on their bottom lines, creating a business model that allows for understaffing and oversight. “You are dealing with complex medical needs; you’re partnering with the provincial governments and the families and, in particular, the seniors’ [conditions] are changing and varying all the time,” he says. “So you can’t have a cookie-cutter approach to these things.” That flaw seemed clear in January 2014, when staff at Rutherford Heights, a seniors’ care facility in Edmonton operated by All Seniors Care Living Centres, allegedly failed to properly assess the medical needs of one of its patients, a senior named Marion
found 318 allegations of abuse in all levels of health care in Alberta between April 2013 and March 2014. In seniors’ homes and other facilities under private management, there were 25 allegations of abuse. The resulting question for privately run, long-term care and assisted living providers is whether such incidents have brought the credibility of the industry as a whole into question. Volodarski says there is certainly pressure on some companies, particularly small ones, to keep costs down in any way possible. “You have to at least cover your costs, so the negative impact of that could be that people will start cutting corners and providing this shared accommodation services and that could negatively impact the residences,” he says. “But I don’t think overall it will hurt the credibility of the industry.” Broadly speaking, Volodarski says, such incidents are rare, and tend to occur at companies with little experience in providing continuing care, and with limited capital to administer it. The greatest concern remains preparing for an overbuild in capacity during the next one to three years. Eventually, the thinking goes, that trend will balance itself out in Alberta, where the population of seniors is expected to grow to one million within the next 20 years. AV
MARCH 2015
ALBERTAVENTURE.COM 81
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Venture Publishing is proud to have been selected to redesign and relaunch National, the official quarterly magazine of the Canadian Bar Association. This Canadian professional magazine will engage the membership of the CBA informing members and speaking to them as their industry authority. It will celebrate the work of lawyers across the country, profiling notable professionals and speaking to the issues lawyers face today. Venture takes over ad sales with the spring and summer issues of National, and is already at work on a grand redesign slated for the fall 2015 issue. This publication is one to inspire the modern lawyer.
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I.R.HEALTH CARE
UNHEALTHY INNOVATION? Measured by patent filings, Alberta lags on innovation in the health-care industry BY T I M Q U E R E N G E S S E R To check the pulse of a region’s innovation, patent filings are one of few places to start. How does Alberta measure on this metric of innovation, then? The answer is all about the details, and whether one asks specifically how the province is doing in the health-care industry. Last November, the C.D. Howe Institute released the findings of a compilation of patent applications between 1980 and 2013 with the Canadian Intellectual Property Office. More than one million filings were added, allowing the researchers to compare the filing rate of regions against the national average. Examined for raw filing numbers, Alberta and Ontario led the rest of the country. Between 2010 and 2013, for example, Albertans filed an average of 140 patents for every million residents, while the Canadian average was 120, the low was 40, in Atlantic Canada, and the high was 150, in Ontario. “Across Canada, Alberta and Ontario consistently outperform national averages in domestic patent applications per capita, while the Atlantic provinces are dramatically below average,” the report’s authors conclude. The caveat is health care, says Aaron Jacobs, a co-author on the C.D. Howe report. After crunching the numbers for Alberta Venture, Jacobs says Alberta has performed comparatively well in certain industries and poorly in others. Is the health-care industry one where the province excels? “The answer is no,” Jacobs says. In Alberta, he explains, the resource sectors – construction, mining, oil and gas – perform relatively better than the Canadian average. On the other hand, in the pharmaceutical and medical technology space, the patent trend is “low and getting lower,”
he says. Compared to the Canadian average, Jacobs adds, Alberta’s patents are more skewed toward resources and construction. While there are no hard numbers at her fingertips to support the conclusion that Alberta lags on health patents, Joanna Preston, senior manager of technology management, health sciences, with TEC Edmonton, which oversees academic-commercial linkages from
research with the University of Alberta, says it would not surprise her. “I will tell you that it is very much reflective of the maturity of the industries that you’re looking at,” she says of Jacobs’ findings. “Our industry is very young and it’s really not generating a tremendous number of patent applications outside of the academic institutions, where the majority of the research is taking place.” Preston says >
MARCH 2015
ALBERTAVENTURE.COM 83
Quebec has a mature pharmaceutical industry and B.C. has a high number of pharmaceutical startups, while Alberta is later to the game and thus does not. Innovation is often viewed as an unquantified good but that has not stopped some from attempting to lasso a metric to it. In intellectual property terms, patents have been used by some as the most quantifiable innovation measure, though this is not without its flaws. Critics point out that the correlation between the number of patent filings an organization makes and its overall innovation rate is weak and often non-existent, and that a better measure is patent citations – when a patent is cited by another company. Indeed, patent citations have been shown to correlate with stock market valuations; the higher the citation number, typically, the higher a company’s worth. Regardless, since patents are fiercely filed and guarded to protect innovation in the healthcare and pharmaceutical industry, applying the measure to Alberta’s sector is the best place to begin asking questions about its raw innovation rate. The C.D. Howe report notes that innovation is “a talisman for economic growth,” and this is a worldview shared by the Alberta government, even when it thinks about health care. In 2010, Alberta launched the Health Research and Innovation Strategy, a road map for the generations ahead. The strategy noted that investments in health research were not only a public-health good but would create economic benefits, “related to the commercialization of new health products and services.” Given this rhetoric, and the guarding of innovation using patents that’s a hallmark of the health care and pharmaceutical industry, one would expect that each new product or service would link to a patent filing. And yet, we do not seem to see evidence of this in Alberta. So what happened?
84 ALBERTAVENTURE.COM M A R C H 2 0 1 5
For one, a comparatively poor showing on patent filings in the health-care industry isn’t for a lack of government investment, says Reg Joseph, vice-president of translational product and technology innovation with Alberta Innovates Health Solutions, a publicly funded corporation with a mandate to improve health in Alberta using research and innovation. Joseph says investments have increased from $73 million in 2010, when the strategy was launched, to $95 million in 2014. “That’s one lever we use in terms of driving health innovation,” he says.
a general trend in the nation’s pharmaceuticals and medical equipment space. That trend saw the health sector create the lowest patent filing output amongst all others. Indeed, Canada in many ways mirrored Alberta on patent trends, with the construction, oil and gas, and computer and electronics sectors leading the filings. Also, from a pure numbers point of view, there are also a few positives within the findings. The C.D. Howe study found, for instance, that patent applications across Canada are in comparative decline over the last decade; the application peak was during
In the health-care industry in Alberta, the patent trend is “low and getting lower.” – AARON JACOBS, C.D. HOWE INSTITUTE
For another, he says, patents are not the only way to measure innovation. He points to investments made in a program called the Partnership for Research and Innovation in the Health System, Health Services, with $14.7 million in funding in 2014. The partnership is an attempt to target “highimpact research activities,” according to its website, though not specifically aimed at commercialization. “Many of these types of innovations are not necessarily going to be patentable technologies per se, but they are going to have an impact on the health system,” Joseph says. And he points to the Strategic Pipeline to Accelerate Research and Innovations into Care (SPARC), a new attempt to examine investments government is making in order to ensure there is coordination to realize the largest results. As Joseph says, SPARC is now looking at all government agencies and innovation funding to find better ways to drive innovation, “all with the eye to increased commercialization.” “Right now it’s not necessarily being done in a co-ordinated fashion,” he says. Regardless if it is the de facto measure of innovation, Alberta’s patent numbers do reflect
the 1990 to 2007 period. But this does not hold true for Alberta’s health industry space, Jacobs says. Instead, he notes that the sheer number of patent filings in this space in Alberta has actually increased since 1990. Still, it’s all about relative gains. As Jacobs notes, “Those gains don’t stack up to gains made in other industries.” Another mitigating factor to consider is where patents are filed. As Jacobs says, patents are clustered in industries where the internal market is strong. Health care, however, is an international marketplace, and this could be one possible explanation for the low numbers of filings in the industry, both in Canada and in Alberta. “Obviously Canada has a large pharmaceutical industry, but because of the nature of globalization of pharmaceuticals, it wouldn’t be surprising if the Canadian pharmaceutical industry is focused on exports to the U.S. and Europe,” he says. He notes that patents filed by Canadian companies and individuals outside of Canada are not captured in the data the C.D. Howe Institute examined. “It’s easy to suggest that that’s one of the reasons [for the low numbers], because it’s very globalized.” AV
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THE DINERS YOUNG CHEF
Nicole Gomes HISTORY
Gomes studied French cuisine in Vancouver before moving to Calgary and working at several restaurants. She now owns her own catering company, Nicole Gourmet. She won’t reveal when but she says she plans to open an upscale fast-lunch restaurant in Calgary with a business partner. Many know Gomes through her appearance on Top Chef Canada, or as a Top 40 under 40 award winner in Avenue Calgary LUNCH
Spaghetti with chicken, white wine VETERAN CHEF
Michael Noble HISTORY
On top of opening Notable, which bucked the trend for its location in the suburbs, and The Nash and Offcut Bar, Noble has headed popular places like Catch & Oyster Bar. He worked as a chef internationally, including in Monaco. His nickname is Iron Chef. He was once head of the Earls chain’s food consultation LUNCH
Arctic char PHOTO
Michael Noble and Nicole Gomes at The Nash, Calgary
BETTER FAST FOOD
Two chefs talk about food – that’s no surprise – but also how to share a vision in an industry with hot personalities
Y
ou rarely see two chefs dine at a restaurant owned by one and talking about the restaurant ambitions of the other. With restaurants being one of the hardest ways to make money, and with chefs being known for their egos, it just doesn’t happen. And so when Nicole Gomes, 37, and her longtime mentor, Calgary chef Michael Noble – owner and head chef of Notable and the newly opened The Nash – have lunch to talk about Gomes’s aspirations for an upscale, fastcasual restaurant in Calgary, the food gods surely take notice. Gomes has known Noble for more than a decade. She arrived in Calgary from Vancouver 13 years ago and started working for him at his then-restaurant, Catch & Oyster Bar. She says she was attracted to Catch because of Noble and his willingness to guide her passion for the food business. Gomes may be new to the
restaurant owner game, but she’s not a stranger to running a food business. She owns Nicole Gourmet, a boutique catering service that’s highly sought after, and recently appeared on Top Chef Canada, in which she went further than any other woman on the show. She studied food in Vancouver before joining Catch. She then went on to be the opening chef at Mercato. But she’s asked Noble for lunch to pick his brain for delicious nuggets of advice as she’s about to be just like him – a chef-proprietor. The discussion starts with staff. “For me it’s always about a team that is willing to row the boat in the same direction,” Noble says. “In a kitchen you have a lot of hot personalities but ultimately they have to work together. That’s always been the biggest thing that I teach.” Noble is used to mentoring younger chefs like this. He says he was mentored by a Swiss chef in his early days and decided to
offer advice and help to whomever he liked in the industry. And he clearly likes Gomes. He smiles when she displays her drive and vision. And she clearly likes that he answers her questions. “I’ve actually asked chef – I call him ‘chef’ still – for a lot of advice,” Gomes says. Then she turns to him. “One of the things with openings, you have to expect delays. Staffing’s a huge issue. How are you retaining staff, how much turnover have you had already? And the logistics of the build-out. It seems you got it together quite quick.” Noble has a lot to chew on with the questions. “The biggest thing I’ll tell you is let go of the notion that it’s going to be perfect,” he says. “There’s so many things you don’t have control of. You really just have to focus on things that you have control of. Contractors and timing and suppliers, all that stuff, it’s amazing [how many problems arise]. Don’t get down and disappointed.” PHOTOGRAPH ROB MCMORRIS
86 ALBERTAVENTURE.COM M A R C H 2 0 1 5
The Nash is the second restaurant Noble has opened as a chef-proprietor but the eighth he’s opened as a chef. That experience spurs Noble to ask Gomes where she’s getting her money for her opening. “It’s my money, and the bank,” she says. “It’s a great way to go,” Noble says. “There’s a lot of freedom in that.” “Maybe we’ll need another $100,000?” to open another location, she says. “I might need to go to other people. I’m trying to do it on my own.” Her comment sparks a question. “If I do that, tell me about silent partners – are they really silent?” “I’ve figured a way to keep them silent, to not have them come in and say ‘I’m an owner so I should get my dinner for free,’ ” Nash says, grinning. “That was a real conundrum for me when I was developing Notable. How to engage people but still run my business the way I feel it should be run, to not have a big board table who think they know about restaurants give you their opinion. So I organize a return on their investment based on profit, at a certain return and there’s a cap on their return. I just said to them ‘Trust me to run a great business, and I’ll return your investment with a return.’ They got all their money back in four years. It never bothered my cash flow – their return was always based on my cash flow. So I had to solicit a lot of great advice from people with a business mind.” “Typically, restaurants do a very short profit,” Noble continues. “If you’re so overcommitted to banks and sugar daddies that want 20 per cent return no matter how well you’re doing, well, it’s not good.”
Gomes says she’s planning her first location with an eye on future expansion. “If you knock it out of the park on the first one, and I know you will, you get a bunch of people who are really interested [in investing in another location],” Noble says, still thinking of capital. So then, what about space? How much space should the kitchen have? “What’s the average square footage that I would have to allot for the kitchen?” Gomes asks.
“ Typically, restaurants do a very short profit. If you’re so overcommitted to banks and sugar daddies that want 20 per cent return no matter how well you’re doing, well, it’s not good.” – Michael Noble
“So, like, how big, or what percentage?” “How much you would allot for the budget?” she replies. “I’ve always done it a little intuitively,” Noble says. “At Notable, the kitchen was about $325,000. It’s about a quarter of the entire space, about 1,200 square feet. I wouldn’t want it any smaller. Typically chef-owners go 45 per cent of the square footage for their kitchen.”
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“You went a quarter?” Gomes says, surprised. “We’re having a problem with the building right now. So we’ve gone from 1,300 to 900 all-day [this is the lingo for the customer side of the restaurant, excluding the kitchen], but it is a quick-service restaurant.” The food arrives – Noble ordered Gomes’s dish because he wanted her to try his boutique spaghetti. He dines on Arctic char. Gomes loves the food and compliments her mentor. As he eats, Noble continues with his advice. “Go with your best thought on revenues,” he says. “Go with a conservative revenue number and then all your numbers below that. It’s really a great exercise. “We’re going with the low,” Gomes replies. “We have a low, medium and high.” “That’s a great way to keep your business going,” Noble says. “Hit the low numbers. Because if it all makes sense at low, then you know everything above that …” It’s evidently an approach that worked for him. “I knew I could keep [Notable] open at $2.4 million, that I’d be working a lot, but that I could do it,” he says. “Then we did $4.3 million.” Gomes’s eyes light up a little with the dollar figure being shared. “I think for however long it takes for you to transfer your vision into the hands of people working it every day, that’s all you need to do,” Noble says. “The beautiful thing is your vision is in a smaller box. You’re going to be able to transmit that into other peoples’ hands. Once they’re leaning in and committed to it, everything follows.” AV
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THERE ISN’T AN ELECTRIC GUITAR PLAYER alive that doesn’t lust after a ’58 Fender Twin or a ’63 Vox AC30 amplifier. The craftsmanship from the period makes these amps sound pure and soulful. The problem is that they’re scarce, expensive and prone to breaking. The solution is an explosion in boutique amp manufacturing. A boutique amp is often a reinterpretation of a vintage tube-amplifier, built by hand with modern improvements. Because they are built using equal parts science and romance, their appeal is subjective. And for those looking for a boutique amp with Alberta flavour, Edmonton’s
Purdy Tube Amps has been selling modern takes on the classics since 2009. Peter Purdy is a self-taught electronics magician who started fixing amps after his brother removed the tubes from his ’60s Ampeg and reinstalled them incorrectly. “When I turned it on it was a light show,” he says, chuckling. For 40 years, playing as a musician (while working for CN), Purdy, 61, became the go-to guy for musicians when an amp needed fixing. When he retired seven years ago, he decided to put his knowledge to use, building modern tributes to amps from the golden age. And yes, the volume does go up to 12. >
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DESTINATION:
TORONTO
Toronto is unjustly disliked by Canadians who’ve never been there.
It’s among the most multi-cultural cities in the world, has become the fourth largest in North America and somehow survived being run by Rob Ford for four years. Here are five things you can’t forget if you’re going.
Move The Queen streetcar (in T.O. parlance, the “Queen Car”) runs 25-kilometres from The Beaches to the Long Branch loop in the city’s west end. Ride it and you’ll hit Corktown, Yonge Street, Queen Station, the Eaton Centre, The Bay, Nathan Phillips Square, Trinity Bellwoods Park, Ossington Avenue and more.
Build There’s a half-house at 54 ½ Patrick Street. One half was claimed by a developer, the other half, well, wasn’t. The R.C. Harris Water Filtration Plant (2701 Queen Street East) is an art deco masterpiece. The Arts & Letters Club (14 Elm Street) is an old-leather lair for old-money oil barons, while Maple Leaf Gardens (60 Carlton Street) is now a place to get groceries.
Eat In Kensington Market, that is. Aside from fruit, vegetable and spice vendors, some sleuthing will find you a restaurant called The Grilled Cheese as well as empanadas, Cuban steak sandwiches, butter chicken pies, and a truffle bar. Go hungry. Leave fatter.
Mix Toronto is world travel without a passport. Visit Koreatown (near Christie Pits Park), Greektown (Danforth Avenue), Little India (Gerrard Street), Little Italy (College Street West) and Chinatown east and west, but also Little Burma (Bloor Street) and Little Pakistan (Gerrard).
Drink A few top drink haunts: The Communist’s Daughter (1149 Dundas Street), Sweaty Betty’s (13 Ossington Avenue), Wvrst (609 King Street), Three Speed (1163 Bloor Street), The Dakota (249 Ossington Avenue), Hair of the Dog (425 Church Street).
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NEEDTOKNOW
Acden’s business development manager
Mitch Mercredi
is bringing people together
DOB: 1981 BORN AND GREW UP IN:
Fort Chipewyan
HIGHER EDUCATION:
Diploma in civil engineering, NAIT FIRST JOB: Salesman for Forzani Sporting Goods, in Grade 10
THE PERSON Mitch Mercredi is the business development manager for Acden, the business arm of the Athabasca Chipewyan First Nation. He grew up in Fort Chipewyan, where his father had car and Ski-Doo dealerships. His father also built the ice road every year between Fort Chipewyan and the Peter Lougheed Bridge, better known as the Bridge to Nowhere (north of Fort MacKay). He is married with two young children, and is also the president of the Northeastern Alberta Aboriginal Business Association. THE PAST Mercredi’s family moved to Fort McMurray when he was in Grade 10 because his father’s Fort Chipewyan-based businesses were in decline but his ice-road-building skills were in demand further south. “He started getting contracts with oil sands companies,” Mercredi says. “It was a better business.” After earning his diploma from NAIT, he worked for Syncrude in a variety of positions for six years before rejoining his father in his ventures, Lakeshore Helicopters and Lakeshore Contracting. He joined Acden just last October. THE PRESENT There are 18 companies in the Acden group, employing more than 3,000 people. The company’s motto is “from trees up to trees up.” “We can go in right at the beginning and do an environmental assessment,” Mercredi says. “Once operations are up we get into the maintenance side of it, and we have several companies that can help with reclamation.” He says that final step can happen. “We want to reclaim,” he says. “What better people than my people to be the ones who reclaim it.” THE FUTURE Aside from building Acden’s various businesses, Mercredi will continue to serve as the president of the Northeastern Alberta Aboriginal Business Association. “The organization started many years ago because aboriginal companies in Wood Buffalo were having a hard time getting work with industry,” Mercredi says. “They knew how to work, but they didn’t know who to talk to.” NAABA serves like a chamber of commerce for the 100-plus aboriginal-owned member companies and the 150 non-aboriginal-owned ones. “We connect people together,” he says. He also plans to make the time to earn his MBA through Athabasca University. – Michael Ganley
PHOTOGRAPH COLTON PONTO 94 ALBERTAVENTURE.COM M A R C H 2 0 1 5
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