July / August 2017 Vol 7 | No 4 $9.95
Organic Garage’s Innovative Matt Lurie
+ Grand Prix PM # 42211029
Winners
Grocery Business July | August, 2017 Volume 7, Number 4
contents DEPARTMENTS
PHOTO GALLERY
7
11
3rd Annual Food & Allied 8 Golf Tournament
14
ongo’s Annual Charity L Golf Tournament
61
weets & Snacks Expo, S Chicago
Front End People & News
62
It Figures
65
Launch It, List It
Going for growth
New & now discoveries
14 4
July | August 2017
Organic Garage’s Junction Road Toronto store
ON THE COVER
Garage’s 16 Organic Innovative Matt Lurie
11
49
FEATURES 15 Canada’s New Food
49 Grand Prix New Product
33 United Natural Foods, Inc.
58
40 Advantage Report
59 Deloitte: Capitalize on
Labels
A natural phenomenon
Suppliers slip in retailer ratings
Awards 2016
BrandSpark Canadian Shopper Study 2017 Consumer Insights
43 Amazon Prime Makes Its Move
47 Nielsen: Strategies for Successful Innovation
COVER PHOTO: JOSH RAINHARD
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WHOLE HEALTH 23 What’s Driving the Gut Health Movement? 26 Shopper Intelligence: Prioritizing Health 31 Making It: SPOKES Snacks July | August 2017
5
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Transitions Sobeys recently announced a restructuring of the senior leadership team, including the following appointments: Lyne Castonguay (left), executive vice-president, Merchandising; Jason Potter (right), executive vice-president, Operations; Pierre StLaurent (left), executive vice-president, Quebec; Vivek Sood, executive vice-president, Related Businesses; Clinton Keay (right), executive vicepresident, Technology & TMO; Simon Gagné, executive vice-president, Human Resources; and Rob Adams (left), general manager, Discount Format. This past spring, the company named Mike Vels executive vice-president and CFO. George Weston Limited has appointed Richard Dufresne (left) as president, effective January 1, 2018. Dufresne remains chief financial officer, but is transitioning out of his parallel role as CFO of Loblaw Companies Limited. Darren Myers (right) is joining Loblaw on September 1, 2017, as executive vice-president, finance, and on January 1, 2018, will be appointed Loblaw’s CFO. Acosta executive Shaun McKenna is joining The Grocery Foundation as executive director, effective September 5, 2017. McKenna replaces Michelle Scott, who announced her retirement earlier this year and will leave the Foundation on October 31.
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Front End
Advantage Group International recently announced changes to its executive team: Dwight Konings now heads global client development (North America); Annaliese Jagusch (right) was promoted to senior vice-president, global client development; and Nestor Sanajko (left) was promoted to director, global client business development. Leandro Zalc Bonders has joined Advantage from IRTS Casino Group, and is responsible for Europebased clients. L’Oréal Canada has named Stéphanie Binette chief marketing officer (CMO), effective August 1, 2017. Binette replaces Stéphane Bérubé, who will take on a new role within the L’Oréal Group as CMO for the Western Europe zone. CarrieAnn Arias is the new vice-president of marketing for Naturipe Farms. Previously, Arias was vice-president of marketing for Dole Fresh Vegetables and Berries. David Clark has joined the Canadian Health Food Association as a vice-president with responsibility for managing finance and membership. Previously, Clark was senior director, industry relations, with GS1 Canada. Rick Alcocer (left), senior vice-president of Duda Farm Fresh Foods, has been elected chair of the Canadian Produce Marketing Association board of directors. The executive committee also includes: past chair Sam Silvestro of Sam Silvestro Consulting Company; Les Mallard of Chiquita Brands North America; Oleen Smethurst of Costco Wholesale Canada; and Davis Yung of Fresh Direct Produce Ltd.
VersaCold Logistics Services has named Michele (Mike) Arcamone chief operating officer. His previous roles include senior positions at Bombardier and General Motors. Tom Shurrie has joined the Canadian Federation of Independent Grocers in the newly created role of senior vice-president, chief operating officer. Shurrie was most recently the executive vice-president, customer development and GM, Acosta Canada. Longo Brothers Fruit Markets Inc. has promoted Brian Grigat to senior director, merchandising and category management. Prior to joining Longo’s in 2015, Grigat was senior category director at Loblaw and vice-president category management for Sobeys Ontario. After 12 years as executive director of Daily Bread Food Bank, Gail Nyberg has announced she will retire in early 2018. Nyberg joined Daily Bread in 2005 after a career as a school board trustee. Glenn Murphy, a veteran of grocery, pharma and health and beauty retail businesses, has been appointed to lululemon athletica’s board of directors as co-chairman. Murphy began his career at Loblaw, and is the former CEO of Shoppers Drug Mart, former CEO and president for the retail division of Chapters Inc., and former chairman and CEO of The Gap.
Michael Marinangeli’s column, Open Mike, will return in the September/October issue.
July | August 2017
7
Front End
Olive d’Or 2017 Winners Celebrating the world’s finest olive oils Olive d’Or is the world’s premier platform for showcasing the best in extra virgin olive oil. It is the largest international extra virgin olive oil contest in North America, and this year’s event, at SIAL Canada 2017, featured 113 oils from 15 countries. Olive d’Or held its first Most Beautiful Olive Oil Bottle competition, which this year was won by Picoto, from Portugal.
Strong Fruit
Medium Fruit
Golden Drop: Franci Bio, Frantoio Franci, Italy
Golden Drop: Hispasur Gold, Knolive Oils, S.L., Spain
Silver Drop: Knolive Epicure, Knolive Oils, S.L., Spain
Silver Drop: Sogno del pinzimonio, Caliptra & Mignola, Italy
Bronze Drop: Villa Magra, Frantoio Franci, Italy
Bronze Drop: Zumo Picual, La Gramanosa S.L., Spain
Favourite: Coratina Olio di Dievole SRL - Italy
Favourite: Cladivm, Aceite Aroden Hispania S.L., Spain
Ripe Fruit
Light Fruit
Golden Drop: Oleum Hispania, Molino Virgen de Fátima S.L., Spain
Golden Drop: Oliveira da Serra Goument, Sovena Portugal Consumer Goods S.A., Portugal
Silver Drop: Arbosana, Corto Olive Co., U.S. Bronze Drop: Miller’s Blend, Corto Olive Co., U.S. Favourite: Colinas de Garzon, Argoland S.A., Uruguay
July | August 2017 Volume 7, Number 4
Co-Publisher and Executive Editor Karen James 416-561-4744 KarenJames@grocerybusiness.ca
Executive Vice-President Content and Market Development Dan Bordun 416-817-5278 DanBordun@grocerybusiness.ca Contributing Editors Angela Kryhul, Sally Praskey Contributors Dr. Sara Celik, Rodney Daw, Jennifer Lee, Kelly McGinnis, Josh Rainhard, Mary Scianna, Christine Smith, Rick Wong
Co-Publisher and Content Director Kevin Smith 416-569-5005 KevinSmith@grocerybusiness.ca
8
July | August 2017
Creative Agency Boomerang Art & Design Inc. boomart.net
Silver Drop: Acushla Gold Edition, Acushla, SA, Portugal Bronze Drop: TreFort, Paolo Bonomelli, Italy Favourite: Egregio, Oleoestepa, S.C.A., Spain
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David Wilkes, Retail Council of Canada
Grocery Business Advisory Council 2017
Bill Ivany, Tree of Life Canada
Shaun McKenna, Acosta Sales & Marketing Thomas A. Barlow, Canadian Federation of Independent Grocers Perry Caicco (retired, CIBC) Jim Slomka, Clorox Canada
Mary Dalimonte, Sobeys Cori Bonina, Stong’s Markets
Denis Gendron, United Grocers Inc.
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Mike Longo, Longo Brothers Fruit Markets Michael Marinangeli, MIDEB Consulting Inc. Darrell Jones, Overwaitea Food Group Cheryl Smith, Parmalat Canada
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Front End
Congratulations!
2017 Golden Pencil Award Recipients On November 20, 2017, the Food Industry Association of Canada will celebrate the 2017 recipients of the Golden Pencil Award, the grocery industry’s highest honour.
Shelley Martin, CEO, NestlĂŠ Canada Inc. (Manufacturers/Brokers category)
Darrell Jones, President, Overwaitea Food Group (Wholesalers/Retailers category)
Visit goldenpencilaward.com for more information.
Diane J. Brisebois, President and CEO, Retail Council of Canada (Association category)
C O LO U R T H AT FEELS LIKE SHEER BLISS. New Tinted Lip Oil. Treat your lips to a kiss of colour. 8 hours of moisture in 6 sheer, gloss shades. 100% natural. BurtsBees.ca
83rd ANNUAL FOOD & ALLIED INDUSTRIES GOLF TOURNAMENT JUNE 2, 2017, TORONTO
Mark Ayer, Crossmark
Jim Slomka, Clorox Golf Tournament Committee. Back row (l-r): Forge Francella, Mike Marinangeli, Peter Davies, Grant Campbell, Mike Furgiuele, Michèle McMillan, George Tzogas, Kevin Smith Front row, (l-r): Chris Powell, Jim Hunter, Doug Cussons, Sal Galle, Denis Gendron Absent from photo: Christine Tos, Sam Magnacca
Domenic Calce, retired, Metro Inc.
Shaun McKenna, Acosta; Denis Gendron, UGI; Brian Jackson, Acosta
Alison George, Argyle Public Relations; Kevin Smith, Dan Bordun, Grocery Business; Larry Bonikowsky, Zedcom Tom Shurrie, CFIG; Brian Richardson, Crossmark
grocerybusiness.ca
Sal Galle, Metro; Mike Marinangeli, MIDEB Consulting; Michelle Scott, The Grocery Foundation; Denis Gendron, UGI; Shaun McKenna, Acosta; Chris Powell, Tree of Life; Tom Barlow, CFIG Cheque presentation to The Grocery Foundation for $10,000 P H O T O S : R O D N E Y D AW
• FROZ E N FI SH 2017 • NEW FOR 2017
CURRENT FAVOURITES
Our frozen fish sales are making a splash Janes is excited to be the Category Captain in the frozen fish category of 2017. Our Breaded & Battered fish products are popular in homes across Canada and now we’re excited to launch 8 new fish SKUs that are sure to become family favourites too. JANES IS A GREAT CATCH • Fastest growing brand in Battered & Breaded Frozen Fish† • Highest sales velocity among the top brands† • The only brand that is growing household penetration, share of wallet, $ per buyer and loyalty* • Outpaces competitors in Value & Premium Fish penetration with +14% and +16% growth respectively* CUSTOMERS ARE HOOKED ON JANES • Janes products are MSC certified as sustainable. Why? 7 in 10 Canadian seafood consumers believe that we need to source fish sustainably.** • Janes never uses sodium phosphate in their products. Why? 54% of Canadians are willing to pay more for foods that don’t contain undesirable ingredients.***
NEW FROM JANES:
FROZEN FISH CATEGORY OVERVIEW†
35 51 56 %
Battered & Breaded Frozen Fish is the largest value-added segment in fish with a 35% share and accounting for $126 million
%
%
Pollock is by far the top species in Battered & Breaded Frozen Fish with 50.8% share accounting for $49 million
Value Battered & Breaded Frozen Fish is higher than Premium in terms of units sold with a 56% share
TONNAGE SHARE BY FROZEN FISH SEGMENT TL Pan Seared Fish 5%
TL Glazed/Marinated Fish 4%
TL Smoked Salmon 5%
TL Fish Burgers 3%
35% TL Battered & Breaded Fish
48% TL Frozen Fish Fillets
Janes recently launched 8 new Pollock Fish SKUs in response to market demand.
*Source: The Nielsen Company, Homescan, National,52 Weeks ending April 29, 2017 vs YA **Source: GlobeScan global study into consumer perceptions 2016 Base: Seafood consumers, Canada n=1013 ***Source: Nielsen Category Shopping Fundamentals June 2016 † Source: Nielsen Market Track, National All Channel, L52W ending May 27, 2017 NOTE: Data in charts do not include Control Label, there is no visibility in Market Track
LONGO’S 28th ANNUAL CHARITY GOLF TOURNAMENT JUNE 20, 2017 “To all our vendor-partners who participated by golfing, sponsoring or donating money, prizes or food at this year’s tournament - THANK YOU! Because of you, our tournament was a huge success. We hosted 510 golfers and donated over $300,000 to local hospitals and charities.” – Rosanne Longo, Chair, Longo’s Family Charitable Foundation
Rosanne and Gus Longo
Marie Iuglio and Carolyn Kelly, Longo’s
Joey Longo (left) and Tom Barlow, Canadian Federation of Independent Grocers
P H O T O S : R O D N E Y D AW
14
July | August 2017
Nutrition Facts Table
The Skinny on Canada’s
New Food Labels With consumers demanding ever more transparency about what’s in the food they consume, in 2013, the Government of Canada committed to updating and simplifying the Nutrition Facts Table (NFT). Health Canada introduced the finalized changes to the Food and Drug Regulations in December, 2016, and now food manufacturers have until 2021 to comply.
Rick Wong, senior project manager, NSF
(one egg), but updated consumption data shows that the average person actually eats two eggs at one sitting, so the standard serving size for eggs is now 100 grams.
and listed as “colour”; they must now be declared by their individual common names (e.g., tartrazine, allura red, etc.). As part of the government’s Healthy Eating Strategy and Food Labelling, other proposed changes include:
There are also many changes to the appearance of the ingredient list, for instance: • “Calories” are bolded and more prominent.
These changes are the first major update since food labelling became mandatory in 2002, and it’s important for manufacturers and retailers to understand how this new label is different. Here’s what you need to know.
• Front-of-package labelling to indicate foods that contain high amounts of sugars, sodium and saturated fat.
• All sugar-based ingredients (white sugar, brown sugar, honey, etc.) will be grouped together as “Sugars” with a per cent total daily value for all the sugars in the product.
• Clearer date markings (e.g., best-before dates); standard formats for company contact information and country of origin.
• The previous labelling requirements allowed all permitted food colours to be combined
Just the Facts
ORIGINAL
NEW
• The appearance of serving size and calories will be much more prominent.
Nutrition Facts • Potassium was added nutritive while values for Valeur PerC 1/2 cup removed. (125 mL) vitamins A and were
Calories / Calories 80 Fat / Lipides 0.5 gmanufacturers 1 % • Previous regulations allowed S a t u r a t e d / saturéswhile 0g to set their own serving sizes, 0% + Trans / trans 0 g
Calories is larger and stands out more with bold line below
Sugars / Sucres 15 g
Iron / Fer
2%
Calories 80
Daily Values updated
Fat / Lipides 0.5 g Saturated / saturés 0 g + Trans / trans 0 g
% Daily Value* % valeur quotidienne*
Carbohydrate / Glucides 18 g Fibre / Fibres 2 g Sugars / Sucres 15 g Protein / Protéines 3 g Cholesterol / Cholestérol 0 mg
following recommended ranges. To make it Cholesterol / Cholestérol 0 mg easier for consumers to compare Sodium / Sodium 0 mg different 0 % brands, serving sizes will now be more Carbohydrate / Glucides 18 g 6% consistent for Fibre similar types2ofg foods. / Fibres 8%
Protein / Protéines 3 gamounts Serving sizes will also be based on Vitamin A / to Vitamine A 2% that adhere more closely ways that Vitamin C / Vitamine C 10 % consumers are actually eating. For example, Calcium / Calcium 0% the old serving size for eggs was 50 grams
Serving size stands out more and is more similar on similar foods
Per 1/2 cup (125 mL) pour 1/2 tasse (125 mL )
pour 1/2 tasse (125 mL)
Amount of 100 grams for sugars % Daily Value • A new daily value Teneur % valeur quotidienne was established.
Nutrition Facts Valeur nutritive
mg amounts are shown New % Daily Value footnote
1% 0%
15 %
Sodium 0 mg
0%
Potassium 200 mg Calcium 0 mg
4% 0%
Iron / Fer 0.3 mg
2%
New % Daily Value for total sugars
Updated list of minerals of public health concern
* 5% or less is a little / 5% ou moins c’est peu *15% or more is a lot / 15% ou plus c’est beaucoup Source: Health Canada / Government of Canada
grocerybusiness.ca
July | August 2017
15
An
ORGANIC By Mary Scianna
Organic Garage has achieved what many grocers strive for: a high-end, low-cost shopping experience. Organic Garage’s newest location in west-end Toronto’s hip Junction neighbourhood is the culmination of founder Matt Lurie’s ambitious vision to create an organic food store like no other. Lurie has achieved what many consider the Holy Grail of organic food retailing: a high-end shopping experience without the accompanying high prices. And, at a time when large grocery chains and even Walmart are competitively moving into the organic product market, Lurie has succeeded because he’s willing to break the rules by creating a unique experience for his customers.
THE “WOW” FACTOR When Lurie met with his store design firm to discuss his vision, he said: “Burn the rule book and let’s talk about how to do something different because I don’t want to do what everyone else is doing.” Breaking the rules isn’t just a competitive differentiator for Lurie; it’s about “taking art and design concepts and melding them with form and function” to create a “wow” factor for shoppers. That’s why you see graffiti elements – created by local artists – and construction scaffolding integrated into the store. “The scaffolding around our freezer section creates a visual in the store that fits with our branding, the idea of the yin with the yang that’s in our name, Organic Garage, but it also solves a problem of how you take an
PHOTOS: JOSH RAINHARD
EXPERIENCE
atmosphere that isn’t intimate – a long run of about 40 freezer doors – and turn it into an experience that integrates with the overall design and feel of everything we do to build our brand.”
ENVIRONMENT MATTERS For Lurie, the focus is twofold: create a welcoming milieu for customers, and celebrate the preservation of the environment we live in. “We believe in only 100 per cent certified organic produce, and this is a key differentiator for us,” he notes. “We sell good products with no artificial ingredients at good prices that make people happy, make the environment happy and make the world a better place.”
“The Junction Road store takes inspiration from its industrial surroundings and city streetscapes. With an urban vibe, this store is unique. It incorporates architectural details, murals, graffiti, street signs, pavement markings, guardrails, street lights and building signs that give the store a vibrant, urban feel.” Source: api(+), designers of the Organic Garage, Junction Road location
Continued on page 19
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The launch of Organic Garage’s Kitchen Originals private-label line is an opportunity to add value. “We’re not a proponent of private label for the entire store, but there are categories where we can provide extra value for our customers,” says Lurie. The Kitchen Original line will include staples such as sugar, rice, oils and nuts. There are also plans to introduce frozen take-home entrees, “But,” says Lurie, “dry goods are the basics that we’ll focus on.”
Teamwork: Organic Garage staff
Going to great heights with vertical merchandising
Continued from page 17
All of the lighting in the store, from cash-register signage, to Edison-style light bulbs incorporated into produce displays, to lighting in refrigeration units, is energy-efficient LED technology and integrated right into the store design. State-ofthe-art refrigeration units for dairy, meat and frozen products are designed to be as efficient as possible. Lurie also repurposes material whenever possible to create an inviting environment. “For instance, we got wooden apple crates from an apple orchard, branded and put wheels on them so we can move them around the store,” he notes. “We’ll use them to sell produce.”
THE HEIGHT OF MERCHANDISING Organic Garage doesn’t have the space of big-box stores, so Lurie is adamant about maximizing the potential of every square foot. He’s a big believer in vertical merchandising. It solves the problem of limited floor space, but that’s not the main reason Lurie likes the concept. “It’s our job to put on a show for customers, and retailers have lost this element,” he says. “It’s not enough just to have unique elements in a store, and it’s not just about service. It’s about creating an ambiance that allows the customer to indulge in a unique experience, and with vertical merchandising, we can create awe-inspiring visual displays that give customers those experiences.”
SUITED TO A TEA... Organic Garage’s unique marketing approach is highlighted by technologies such as teaBOT, a robotic self-serve kiosk that allows customers to blend and personalize tea. Lurie spotted the potential immediately. “I wanted the element of service without the labour cost, and I wanted to create an animated experience. With teaBOT, we’re able to give our customers something that is cool and different.” A touch-screen interface on the teaBOT kiosk allows consumers to blend their personalized hot tea from 18 available ingredients; it’s ready in seconds.
Even Organic Garage’s demo stations are unique. Lurie has carts on wheels that can be stationed at the end of an aisle and wheeled out of the way when not in use. grocerybusiness.ca
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STORE STATS Locations: 3
Average Store Size:
Organic produce:
New store locations planned for 2018: 2
12,000 to 15,000 sq. ft.
100+ items
THE MEDIUM IS THE MESSAGE Another unique store feature is the static and digital signage about products that addresses general questions customers often have. Installing informative and engaging signage around the store means that it’s not necessary for staff to become experts on every aspect of Organic Garage’s offering. “Anywhere we can pass along information to help customers learn on their own, we will install signage,” says Lurie. It also means there’s no need to hire experts for each department. Instead, the company practices a lean management system: • Each store employs three managers (produce, grocery and cash) and three assistant managers. • Every four months, a different department manager acts as a central conduit to head office as part of Organic Garage’s Manager In Charge (MIC) program, giving every manager the opportunity to learn about all aspects of running a grocery store. 20
July | August 2017
“It’s a simplified management structure,” explains Lurie. “We don’t want to rely on specialized trades, like a butcher or chef, because that’s not our business model.” By stripping out costs and adhering to discount store principles, Lurie can sell organic, healthy food for less than competitors. “We want to be the lowest price on the market for organics,” he says. “To do this, we drive efficiencies with our storage, shelf management, warehousing and distribution models as well as with our SKU mix. Then we invest these savings in price.” The company recently went public to fund expansion. “The organic food market is underserved and the experience we’re able to deliver to our customers is unique,” says Lurie. “I think Ontario can support 20 Organic Garage stores.”
Family inspiration
AN ENTREPRENEURIAL SPIRIT Entrepreneurism is in Matt Lurie’s blood. His great-grandparents opened a store on College Street in Toronto in 1931 that eventually grew to be Sunnybrook Farms Ltd., a 15-store chain. Lurie himself purchased his first Subway franchise at age 19 and eventually grew his portfolio of stores to three. At the age of 25, he changed course to pursue his passion for organics, launching the first Organic Garage store in Oakville, Ont., in 2006. Lurie says he takes pride in his family’s history, noting that his grandfather competed successfully with Knob Hill Farms and Longo’s in the Toronto market. “My grandfather was very supportive when we started Organic Garage. He was a titan of the industry and an inspiration to me.”
WHOLE HEALTH Trends and insights on the health-focused shopper
SPOKES PEOPLE
WHAT’S DRIVING THE GUT HEALTH MOVEMENT? AND MORE…
air
hello
40
CA LORIES PER CUP
KEYLINE DOES NOT PRINT. INDICATES WHITE BORDER AROUND LOGO ART.
THIS EXAMPLE SHOWS THE LOGO AT 3/8” HEIGHT. WE RECOMMEND NO SMALLER THAN THIS FOR READABILITY.
CERTIFICATED
WHAT’S DRIVING THE GUT HEALTH MOVEMENT? By Dr. Sara Celik, ND
Fermented foods, naturally cultured beverages and probiotic-enriched foods are part of a strong trend with consumers. With this in mind, the next decade promises a host of opportunities in the rapidly growing natural health food category. Take a look at the range of unique products lining the tradeshow floor at this year’s Canadian Health Food Association (CHFA) event. From gut shots, pickled asparagus and spicy kimchi to gluten-free probiotic chips, it’s obvious the microbiome food movement has begun and consumers are looking for tasty ways to achieve a healthy gut. So what’s driving this wave of innovation? One of the best ways to initiate gut healing is with probiotic supplements – multiple strains of friendly bacteria that provide health benefits to the host. Researchers have found that probiotics improve intestinal tract health, boost the immune system, enhance the bioavailability of nutrients and decrease the prevalence of food allergies or intolerances.1
5
REASONS WHY GUT FOODS ARE TRENDING
1. Growing awareness of the role of gut health Modern-day science is confirming the wise words of the ancient Greek physician Hippocrates that “all disease begins in the gut.” Indeed, many common conditions are rooted in the digestive system.
2. Gut disorders are on the rise in Canada Researchers are hypothesizing that depleted gut flora from stress, antibiotic use and a poor diet may be triggering the increased incidence of digestive issues.
3. Consumers are seeking to develop a healthy microbiome Three of the fastest-growing health and wellness trends in over-the-counter products are related to digestion. These include fibre (+22%), which helps feed friendly gut bacteria, probiotics (+16%)2 and digestive supplements (+15%).
4. Gut health is in the news With recent news that microbial diversity may reduce food allergies or intolerances, lessen uncomfortable digestive symptoms, and support a healthier immune system, consumers are choosing trendy options such as probiotic-infused juices and non-GMO prebiotic snack bars over traditional snacks.
28
5. Consumers are willing to pay more for healthier options
%
of households have a food intolerance or an allergy
47
%
follow a specific diet that limits specific foods and ingredients4 grocerybusiness.ca
Forty per cent of Boomers and Millennials choose local, natural and organic when possible,3 and many consumers are using food as medicine – spending extra dollars on nutritional supplements, organic alternatives and superfoods. Sources: 1. Parvez S, Malik KA, Ah Kang S, Kim HY. (2006). Probiotics and their fermented food products are beneficial for health. J Appl Microbiol. 110 (6), 1171-85. 2. Nielsen MarketTrack; National All Channels: 52 weeks to January 7, 2017 3. Nielsen Panel Views survey, March 2017 – Canada 4. Nielsen Global Health and Ingredient Sentiment Survey Q1 2016 – Canadian respondents
July | August 2017
23
Pasta Alternatives:
NEW WAVE
NOODLES Neysa Davies
Not Your Grandma’s Pasta
As the mother of two, the weekly struggle for nutritional value on our dinner plates is real. Similar to most parents, a quick and healthy meal solution in our house is a miscellaneous hidden-veggie sauce tossed with pasta. However, consider this: is it possible to up the nutritional-ante by using a healthier pasta option with your veggie sauce? The answer is yes; thanks to a culinary evolution in the pasta category this possibility is now a reality. Today’s consumers increasingly prefer foods that are naturally nutritious, rather than those that have been engineered to meet nutrient priorities. Luckily, through exciting plant-based introductions in the much loved pasta category, our weekly menu rotation just got a bit tastier (and healthier!) As you can imagine, this extension of plant-based ingredients has attributes beyond gluten free and even organic and non-GMO. Answering the growing health and wellness call, ingredients like beans and pulses, remain a superfood and nutritional powerhouse to shoppers who are in search of a hearty fibre and protein rich product.
From a nutritional standpoint, many of the pasta alternatives onshelf today have nutritional benefits that far outweigh traditional pasta: • Beans and pulses may help lower cholesterol due to the high fibre content and aid in reducing the risk of diabetes as they are low glycemic, they are also very high in potassium which can help lower blood pressure by counteracting the effects of sodium. • Pulses are a complex carbohydrate and are naturally low in fat and are a great source of protein for vegans and/or vegetarians. • Plant-based ingredients such as konjac, a tuberous vegetable, is a rich source of soluble fibre promoting fullness while being low in calories. • The inclusion of superfoods to pasta, such as kale, spinach and broccoli, provides essential nutrients and additional fibre delivering a more satiating meal than the traditional variety. As consumers become more conscious of the nutritional value of the food that they consume, innovation using plant-based ingredients will quickly become mainstream in the pasta category. Brands that focus on nutritional content such as protein and fibre, while at the same time offer consumers a great tasting and quality product will continue to drive consumer awareness and sales volume in the pasta category.
PRIORITIZING HEALTH
Consumers rate the grocery channel By Kelly McGinnis
Kelly McGinnis, President, Lucros Partners - Shopper Intelligence
Consumers are increasingly looking to their local grocery store to lead when it comes to matters of health. Our recent Shopper Intelligence study indicates that while consumers are satisfied with top-ranked grocery categories, there’s plenty of opportunity for retailers to go further in meeting their customers’ health needs.
“Helps Health” Importance
Category
1
Vegetarian Substitutes
80%
2
Fresh Fruit
79%
3
Fresh Vegetables
80%
4
Vitamins & Supplements
76%
5
Baby Food
66%
6
Fresh Seafood
74%
7
Pre-packaged Salads/Dressings
67%
8 Yogurt
9
10
81%
Served Seafood
76%
Oral Care
74%
Regionally, the grocery channel was rated highest in these categories 26
Satisfaction level
July | August 2017
Although the top categories for “Helps Health” are being met, nationally, consumers give grocers an overall satisfaction rating of only
31%,
providing an opportunity to fill an important customer need. Satisfaction level
Nationally
Vegetarian Substitutes + Fresh Vegetables
80%
Atlantic
Fresh Fruit
87%
Quebec
Vegetarian Substitutes
83%
Ontario
Fresh Vegetables
79%
West
Vitamins & Supplements
83%
plan to attend! TM
the path to retail excellence.
2017
conference: september 14 & 15 trade show: september 16 & 17 metro toronto convention centre, south building
CHFA East Fun Facts (based on survey results from retailers attending CHFA East 2016)
Satisfaction with the variety of products Average times attending CHFA East Average # of NEW SUPPLIERS sourced
extremely % 91 satisfied
6 5
Average # of NEW PRODUCTS found
12
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Making It
SPOKES People From home kitchen to countrywide distribution, SPOKES is proving that potato snacks can be both healthy and tasty. Dave Pullar, CEO, Left Field Foods
By Sally Praskey
Like many successful start-ups, SPOKES air-puffed potato snacks had its beginning in a home-based business – in this case, the kitchen of a passionate and forward-thinking entrepreneur. Eighteen years ago, Elaine Cadrin was looking to create a great-tasting, low-calorie, healthier snack for her family. She came up with the idea of cooking potatoes in a hot-air popcorn maker, rather than frying, and began marketing them under the name CheeCha Puffs. Although the former teacher had no packaged-goods experience, she had worked hard to earn an MBA in preparation for starting her own business. Following several years of steady sales – and a pitch on Dragon’s Den that resulted in a deal on the show, but that didn’t work out in the end – Cadrin was ready to take her healthy snacks to the next level, and eventually ease into a well-deserved retirement. Enter private-equity investor Avrio Capital Inc., which recruited Dave Pullar, a grocery retail veteran, as CEO of Left Field Foods, the operating name for the corporation. Backed by Avrio, Pullar set about rebuilding the brand from the ground up. Based on extensive consumer research, the company renamed the product SPOKES to reflect its wagon-wheel shape, and retained a world-class packaging design agency to help deliver the message of a “simple, great-tasting snack” to its target consumer of female Millennials. “We knew we had nailed the design when we heard in our focus groups that our consumers would intentionally leave the packaging out on their counters when visitors came over,” Pullar says.
As part of the rebranding, the company has built relationships with the female Millennial consumer through digital and social-media strategy. As well, “we are driving a lot of trial through consumer events,” says Pullar. With SPOKES now available at major retailers across the country, Pullar’s merchandising experience led to the creation of efficient, display-ready cases and merchandising solutions to help drive sales. “We’re really thinking about ways to help the retailer sell the products,” he says. The future promises more exciting developments for Left Field Foods. Pullar plans to take the SPOKES brand to the U.S. market, “and then start working on the next big thing in natural snacking.” He is particularly interested in the potential of plant-based proteins. But whatever snacks are developed in the future, Pullar vows, “we will keep our local, sustainable and better-for-you focus as we grow.”
The entire SPOKES line is now Certified Gluten-Free and Non-GMO Project Verified as well as vegan, preservative-free, and made in a peanut-free facility using simple, clean ingredients. After they are popped, the air-puffed (never fried!) snacks are misted with sunflower oil to help the seasonings – which are aligned with the flavours of popular potato chips – stick. With only 40 calories per cup, SPOKES are the lowest-calorie potato snack on the market. grocerybusiness.ca
July | August 2017
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Enriching people’s lives, one spoonful at a time!
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United Natural Foods, Inc.
A NATURAL PHENOMENON The only national distributor for all categories of natural, organic and specialty foods, UNFI Canada has undergone a major restructuring to better serve its customers and retailers.
A Natural Beginning United Natural Foods, Inc. – the largest distributor to the natural,
lines. UNFI’s Canadian division has since acquired other
organic and specialty industry in the United States and Canada
companies, and now has four distribution centres – two in
– had its U.S. beginnings in 1977, when health-food pioneer
British Columbia, one in Ontario and one in Quebec – all located
Michael Funk began selling organic produce out of the back of
in areas chosen to facilitate speed to market.
his Volkswagen van. He soon established Mountain People’s Warehouse in Auburn, Calif., which became the largest natural-
The integration of the various acquired companies proved
foods distributor in the Western U.S., and then steadily grew the
challenging, and in 2016, the U.S. parent company made
business through a series of acquisitions and mergers.
management changes that resulted in the hiring of an allCanadian leadership team with extensive retail and
UNFI Canada was established in 2010, when UNFI purchased
manufacturing expertise.
SunOpta Distribution Group, Canada’s first coast-to-coast natural and organic food distributor. The purchase included
Now, a year into UNFI Canada’s revitalization, the senior
Pro-Organics, a Vancouver-based premium distributor of
executive team shares its insights about the unique
high-quality, certified organic fresh food, featuring fresh produce,
advantages the company brings to its relationship with both
dairy, dried fruit, nuts, beans, grains, flour and select grocery
retailers and vendors.
Peter Brennan, President
Having come through a period of change, restructuring and revitalization, president Peter Brennan says: In the past year, we were very focused on getting the business back to basics and doing a great job on the fundamentals. Now that we’re there, the feedback from our customers, our brokers and our vendors is extremely positive.
34
Our values guide every step toward our mission Passion for the planet Seeing the big picture – doing what’s right for people and the earth.
Many routes – one direction We live our mission – bringing healthier food options to people.
Adapt to serve We embrace change to discover what’s next.
Together we’re better Collaboration delivers success for us all.
Integrity comes naturally Every day we do the right thing.
UNFI U.S. is a leader in philanthropy and sustainability, and UNFI Canada is committed to these core values. Volunteerism
Food Donations
UNFI Foundation
Organic Advocacy
Sustainability
Green Design
UNFI Canada has several unique advantages. For
Additionally, UNFI Canada has an industry-leading
example, we are the only national distributor of all
quality-control department to ensure product
categories of natural, organic and kosher food,
compliance for quality as well as labelling legislation
including dry, frozen and refrigerated products; it’s a
that meets CFIA requirements. Vendors can be
one-stop shop for retailers, who don’t have to deal with
assured that if they distribute through UNFI Canada,
different distributors in different provinces.
they are meeting all the Canadian standards.
Also, we are able to tailor our offering to suit the needs
With these advantages and with our re-aligned
of the customer, including direct-to-store, warehouse
organization, we’re now positioned to grow our
delivery and e-commerce. We can ship nationally when
business through product expansion and acquisition;
and where the customer requires the product. We have
we definitely are looking to expand within Canada.
the ability to be flexible because every customer is unique and has different needs. July | August 2017
35
New
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Pizza
veggitaly F I R E R O A S T E D V E G E TA B L E S & G O AT C H E E S E
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HAND TOSSED | ÉTIRÉE À LA MAIN STONE BAKED | CUITE SUR PIERRE
435g [15.34oz] KEEP FROZEN | GARDER CONGELÉ
Planet Organic Market Proud to Partner with UNFI
GLUTEN FREE|SANS GLUTEN
Pizza
SPINACI ALFREDO SPINACH, RED ONION & ALFREDO SAUCE
ÉPINARDS, OIGNONS ROUGES & SAUCE ALFREDO HAND TOSSED | ÉTIRÉE À LA MAIN STONE BAKED | CUIT SUR PIERRE
KEEP FROZEN | GARDER CONGELÉ
450 g [15.9oz]
www.oggifoods.com
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FRUIT THAT’S A SNACK, NOT A FRUIT SNACK. Give KIND a try. ®
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Celebrating 21 years of Canadian Business
Patrick Heffernan, Vice-President of Supply Chain and Supplier Relations A dynamic and smoothly functioning supply-chain operation is key to any distributor’s success. Patrick Heffernan explains UNFI Canada’s recent initiatives: Although there were many challenges to overcome, UNFI Canada’s supply chain has improved dramatically over the past year; we now have one of the highest fill rates in the industry. We have been able to achieve this by ensuring that the entire supply-
UNFI Distribution Centres
chain organization is focused on our customers’ needs. For example, measurements were established to meet our customers’ unique requirements as well as our own internal metrics around forecasting and overall communication. In addition to improving the supply chain, we are focused on improving supplier relations and providing better category insights for our customers. Consumers are more educated than ever about the food products they are buying; they are using social media and a variety of tools to research and share the newest product innovations, and are looking for their local retailers to carry many of these items. UNFI Canada can help retailers identify the products, among the thousands out there, that are in most demand with consumers. An important value-added service we provide is to advise retailers on how to determine trends versus fads in the natural/organic product world.
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Stacey Kravitz, Vice-President of Sales A high-functioning sales team is the engine that drives any successful organization. Stacey Kravitz, vice-president of sales, discusses how UNFI Canada set about reorganizing and rejuvenating the Canadian sales organization: Our first priority was to fully understand our customers’ “Go to Market” strategies and vendor marketing needs, and then reorganize the sales team around those needs. From there, our goal was to establish a “customer-obsessed” mentality from both a vendor and retailer point of view. Central to that goal was creating an environment of openness and transparency where, if an error is made, we quickly acknowledge it and, of course, correct it as quickly as possible. In the past year, we’ve assembled a team of highly trained and knowledgeable experts who are able to provide category insight and data-supported advice relating to each customer’s strategy. We established a customer business team structure with a highly skilled leadership team, creating focus and alignment. Our team is focused on forming partnerships based on trust, integrity, customer satisfaction and loyalty. One of the features that makes our sales team unique is our support of smaller vendors. Many of these companies are just getting started so, as an experienced distributor, we have the expertise to educate them about and support them in a challenging market. We have achieved this by collaborating on customer-specific strategies, and leveraging trends and POS data to gain a deeper understanding of each customer’s needs. As an organization, we’re striving to always provide the highest-quality natural, organic and specialty food products. We’re also striving to offer
UNFI CANADA FAST FACTS 800 vendors and approximately 10,000 SKUs 100 sales reps calling on over 5,000 accounts 4 distribution centres
highly competitive pricing, and are opening up our value proposition beyond that to include service, category management and a wide array of tools that will help facilitate execution at retail. 39
THE ADVANTAGE RETAILER REPORT
SUPPLIERS SLIP IN RETAILER RATINGS By Sally Praskey
After two promising years of improvement, retailer/supplier relationships faltered in 2017, according to the latest Advantage Report, the annual survey of grocery, mass, club and drug retailers conducted by Toronto-based Advantage. Average net favourable scores showed a drop in every performance area, except one that remained the same. The sharpest decline was in the category of Personnel, which plummeted to a score of 22, down from 29 in 2016 (ironically, that was the area that showed the greatest improvement last year). Chalk it up in large part to an inability on the part of suppliers to understand retailers’ unique strategies and goals, notes Vincent van der Heijden, senior director, country manager Canada, Advantage. “Similarly, suppliers’ perceived lack of authority to make decisions also had a significant
impact on the Personnel category,” he says. “This is now the lowest-rated practice within the area of Personnel.” Meanwhile, Category Development is this year’s lowest-rated performance area, down to 19 from 22 in 2016. “After experiencing a significant increase in 2016, ‘providing objective recommendations’ contributed most significantly to the decline in Category Development,” says van der Heijden. Retailers are looking for suppliers who take a non-biased approach, based on consumer insights applied to the category. As the survey results indicate, retailers’ and suppliers’ approaches to the business are beginning to diverge in key areas. Identifying and addressing these misalignments early will be critical in reversing this negative trend.
TAKING THE TEMPERATURE Key Performance Areas on the decline across the board
2015
2016
35
33
Average Net Favourable
30
31
31
29 25
29
26 24
20
22
22 20
23
22
23
23 20
19
15
10
5
Overall Performance
40
Business Relationship and Support
July | August 2017
Personnel
Category Development
Consumer Marketing Support
Customer Marketing/ Promotion Practices
Supply Chain Management
Customer Service/ Support
ON THE DECLINE: UNDERSTANDS AND RESPONDS TO UNIQUE STRATEGIES AND GOALS
21
2014
We need companies that understand the nuances between different banners. They should be able to speak our language.
26
2015
18
2016
–Retailer survey respondent
Average Net Favourable
ON THE DECLINE: DEMONSTRATES AUTHORITY TO MAKE DECISIONS We need people who can make decisions and take those right up the ladder.
19
2014
23
2015
–Retailer survey respondent
15
2016
Average Net Favourable
ON THE DECLINE: TAKES AN OBJECTIVE CATEGORY APPROACH
13
Average Net Favourable
9 7
A best-in-class company takes actual consumer insights and applies them to the category. We appreciate their honesty when they come in with non-biased suggestions. –Retailer survey respondent
2014
2015
2016
July | August 2017
41
TM
TOP PRIORITIES AS IDENTIFIED BY SENIOR RETAIL MANAGEMENT
IMPORTANCE RATING
2016
2017
1
1
Communicates effectively with us
76
5
2
Works with us to develop plans that help us meet our category objectives
75
3
2
Manages promotions effectively
75
RETAILER VIEW: E-COMMERCE There continues to be uncertainty as to how e-commerce will change the dynamic of the grocery retail world. Retailers and suppliers continue to invest in e-commerce to not be left behind. “E-commerce is growing by leaps and bounds. For our suppliers, it does heighten our expectation that we are in a good in-stock position at all times. Suppliers need to be sure our warehouse orders are filled consistently so shorts to the stores are minimized.” —Retailer survey respondent
“We all fear what tomorrow is going to bring. We do not know how Millennials are going to grow and change the dynamic and so we are watching it closely. We are trying test pilots with home delivery and in-store pick-up. Technology is like a highway, and we are going faster and faster in that highway and we have to keep up.” —Retailer survey respondent
Founded in Canada in 1986, Advantage operates internationally. Its jointly sponsored programs provide an ongoing industry benchmark for retailers and manufacturers to measure and track their relationships with key business partners.
42
July | August 2017
For more information or to participate, contact Vincent van der Heijden at: 416-863-0685 ext. 134; vvanderheijden@advantagegroup.com
Prime Mover
“We are always looking to add more benefits for customers in Canada.” —Kaan Yalkin, public relations, Amazon Canada
By Sally Praskey
Winning in online grocery – and particularly in fresh – has proven elusive, even for mighty Amazon, so the e-tailer’s impending purchase of Whole Foods Market could be seen as an admission that bricks and mortar still rules when it comes to perishable foods. It’s clear that Amazon will continue to experiment in both the physical and online space, particularly with its variety of Prime offerings designed to lock in customers. And given its enormous net worth and Wall Street’s “no-pressure-for-profit” approach to the company, Amazon can easily afford to test a variety of formats as it seeks to dominate in grocery – retail’s last bastion.
Amazon’s grocery activities: A snapshot AmazonFresh: Launched in Seattle in 2007, AmazonFresh allows customers to order from more than 500,000 items – including fresh foods and prepared meals – for same-day and early morning delivery. Currently available in more than 20 U.S. cities as well as Tokyo, Berlin and London. AmazonFresh Pickup: Two pickup kiosks in Seattle for Amazon Prime members, to compete with the click-and-collect options of supermarket and big-box competitors. A twist on its standard delivery Fresh service. Amazon Go: Convenience store format where shoppers check in with their smartphone, pick up goods, and leave without having to check out. Still in beta test mode and open only to employees. Was to have opened to the public early this year, but was delayed due to technical difficulties. Name and slogan apparently trademarked with Canadian Intellectual Property Office.
Prime Pantry: Everyday essentials in everyday package sizes – like a single box of cereal – delivered directly to a Prime customer’s home. Prime Now: Restaurant and local store delivery and groceries (including fresh) in a one- or two-hour window in many U.S. cities. Wickedly Prime: Private-label line of premium snacks and beverages available for shipping across all Prime delivery services. Prime Discount: In an apparent salvo at Walmart, discounting Prime membership to $5.99 per month (compared with $10.99 previously) for those on U.S. government assistance programs. Meal Kits: Partnered with Tyson Foods and Martha & Marley Spoon to deliver home-cooked meal kits. Tyson meal kits available exclusively through AmazonFresh. Subscribe & Save: Discounts to Amazon customers who sign up for periodic delivery of items frequently purchased in grocery stores, such as laundry detergent, toothpaste, diapers and paper towels.
Amazon.ca Prime Registrations GROWTH
80 2016
%
ANNUAL FEE
79 + Taxes $
Source: Amazon Canada
grocerybusiness.ca
July | August 2017
43
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Innovation
The Recipe for Successful Innovation By Christine Smith Christine Smith, Vice-president, Innovation Analytics, Nielson
Innovation in any category is difficult and requires both discipline and creativity: it takes attention to detail and a passion for turning excellent ideas into products that consumers want. Great innovators can make it look easy, but the reality is millions of dollars are spent developing and launching new products every year in Canada; however, only 15 per cent will succeed long term. The biggest challenge in innovation is creating something that is not only distinctive and relevant, but a product that can endure within the market and make its mark on the retail landscape. Knowing what critical factors play a role in success is a great start to developing a winning product. So what are the fundamental factors manufacturers should be aware of? Distinct Proposition: Manufacturers must put something meaningfully different in front of consumers than what exists in the marketplace today. Retailers also need to be convinced as to why a product deserves to be on the shelf, compared to similar products offered by competitors. Attention Catching: No matter how innovative and appealing the item is, it needs to grab consumers’ attention. The key is that the packaging should stand out at shelf.
Message Connection: Product messages need to be conveyed in a clear way that results in a clear mission statement being understood by the consumer.
value. The value in this sense can be anything from the actual retail price point to benefits such as reduced calorie count or simple preparation instructions.
Clear, Concise Message: Messages must be broadcast in a simple manner without clutter.
Product Delivery: When the consumer tries a product, it must deliver on its promises in order to secure a repeat purchase.
Need/Desire: New products must be relevant to consumer needs and/or wants, and must be able to solve a consumer problem.
Product Loyalty: New products must have the strength to defend against competition over time through ongoing differentiation and an enduring value proposition.
Advantage: Innovative products will meet consumer needs in a way other products do not, providing a distinct solution or advantage. Credibility: Manufacturers must provide consumers with sufficient reason to believe their product will deliver on promises. Acceptable Downsides: Products must be free of detriments, such as negative side effects, that prevent consumers from converting their interest into action. Findability: If consumers cannot find your product, they cannot buy it. Securing the right shelf space in the right stores is key to consumers spotting the product amongst competitors. Acceptable Costs: The consumer must feel comfortable that the product offers good
grocerybusiness.ca
Outstanding performance on just a few of these factors is not enough; a new product is only as strong as its weakest link, so it’s important to pinpoint and correct shortcomings prior to launch. Understanding and mitigating that risk allows manufacturers to pursue more successful launches with confidence.
75%
CHANCE OF SUCCESS IF THESE 12 FACTORS ARE MET
Source: Nielsen
July | August 2017
47
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To learn more, contact: American Peanut Council 1500 King Street, Suite 301, Alexandria, VA 22314 USA, +1-703-838-9500 info@peanutsusa.com For consumer information and recipes visit peanutbureau.ca
U.S. peanut processors follow stringent food safety practices to ensure that consistency, safety and quality are present in every aspect of USA peanut production. Peanuts are naturally sustainable. They replenish soil with the essential nitrogen depleted by other crops, resulting in less greenhouse emissions.
Presenting the 2016 Canadian Grand Prix New Product Award Winners.
Congratulations! Grand Prix New Product Award Winners 2016
The Retail Council of Canada celebrated the 24th annual Canadian Grand Prix New Product Awards, a highlight of the STORE 2017 conference in Toronto. The awards recognize excellence and innovation in quality, production design and marketing, in food, non-food and private-label grocery products introduced during the 2016 calendar year.
grocerybusiness.ca
July | August 2017
49
SPECIAL AWARDS Innovative Packaging Innovation and Originality
Les Tomaszewski
ARLA FOODS INC. Castello Decorated Cream Cheese Spread
All Canadian Award Overall Consumer Value
Jean-François Duquesne
BRIDOR INC. Au Pain Doré Origine Pastries Kathleen Hébert, Martin Valiquette, Véronique Legault-Roussel
RIVIERA GMO-Free Set Style Coffee Yogourt
50
July | August 2017
FOOD
CANADIAN GRAND PRIX NEW PRODUCT AWARD WINNERS
Bakery Fresh Condiments & Sauces Beverages
Jean-François Duquesne Robert Ignagni
BRIDOR INC. Au Pain Doré Origine Pastries
Pierre L’Heureux, Solange Doré, Jean Gattuso
A. LASSONDE INC.
MAX + MARCUS GOURMET PRODUCTS INC. Max + Marcus Dijon Mustard
Oasis Active
Confectionery & Shelf Stable Desserts Dairy (Milk, Yogurt, Cheese & Spreadables) Arla Lactose Free Cream Cheese Spread
Deli Meats & Cheeses
Castello Decorated Cream Cheese Spread
Sacha Laflamme
THEOBROMA CHOCOLAT PAR VIGNEAULT CHOCOLATIER LTÉE Organic Chocolate 80g packaging “resealable” Les Tomaszewski
ARLA FOODS INC. grocerybusiness.ca
July | August 2017
51
FOOD Desserts, Fresh/ Refrigerated or Frozen
Snack (Savoury)
Martin Lemire
Takashi Katsunoi, François Raymond
FONTAINE SANTÉ
CALBEE NORTH AMERICA
Organic Sorbet
Whole Cuts
Frozen or Refrigerated Prepared Foods & Entrees
Snack (Sweet)
Meat, Egg & Seafood (Refrigerated or Frozen)
Frédéric Parisien
SOUPESOUP
Andrée Brasseur, Michele Poulin, Marie-Michele Le Moine
Soupesoup
PATIENCE FRUIT & CO BY FRUIT D’OR Artisan Blend
Nathalie Vendette
MITO SUSHI INC. Maki 2 Go
52
July | August 2017
NON-FOOD
CANADIAN GRAND PRIX NEW PRODUCT AWARD WINNERS
General Merchandise
Healthcare - OTC
Jim Driscoll, Rod Sturtridge, Tammy Barrett
Greg Staley (Prosante)
CARLTON CARDS LTD.
INQPHARM NORTH AMERICA, LLC
Twirly Treasures
bmiSmart I-REMOVE
Paper, Plastic & Foil Household Products Personal Care
Steve Turner, Kristina Koprivica, Michel Manseau
SUN PRODUCTS CANADA Sunlight 4-in-1 PowerCore Pacs
KRUGER PRODUCTS LP SpongeTowels Ultra Strong Minis
Marianne Taggio, Bernadette Taggio
GEBR, WEYERSBERG INC.- KING’S CROWN King’s Crown Ultimate Beard Box
grocerybusiness.ca
July | August 2017
53
Arla Foods wins four Grand Prix Awards! Arla Foods cream cheese products won a remarkable four awards at the Retail Council of Canada’s prestigious Grand Prix, held recently in Toronto. Castello Decorated Cream Cheese Spread won three awards for: • Innovation and originality • Innovative packaging
Les Tomaszewski, vice president of sales, Arla Foods
• Best product in the Deli Meats and Cheese category. Castello Decorated Cream Cheese Spreads meets the And Arla’s Lactose Free Creamy Cheese Spread won for
needs of the specialty cheese buyers and consumers
best new product in the dairy (Milk, Yoghurt, Cheese
who look for unique flavours and entertainment-ready
and Spreadables) category.
packaging solutions. The product is available in a variety of flavours and the black packaging tray can
A winning combination
be used as a serving tray.
Arla Foods, a dairy co-operative with 12,000 farmer owners, is the fourth largest dairy company in the world
The Lactose Free Creamy Cheese Spread
and the biggest organic dairy. Company cows graze
Winning a Grand Prix in the Dairy Category, Lactose Free
outside of the Arla Foods’ new innovation centre in
Creamy Cheese Spread serves the needs of the nearly
Denmark, where some of the world’s top food scientists’
20 per cent of lactose-intolerant Canadians who want a
work. And a new pilot plant has the ability to produce
lactose free product made from clean ingredients with no
almost any type of dairy product as part of its R&D
artificial flavourings (the product has only five ingredients
efforts in new product development.
with the fifth being the natural enzyme lactase) with the satisfying taste and texture of dairy.
Castello Decorated Cream Cheese Spread With its four Grand Prix wins, Arla Foods’ Castello
Nancy Strauss, marketing manager for Arla Foods, says
Decorated Cream Cheese Spreads and its Lactose Free
that when “creating functional based foods, especially
Creamy Cheese Spread reflect the company’s vision to
cheeses, when you take the lactose out, you often
create natural, healthy and innovative dairy products
sacrifice flavour and texture and at Arla we don’t want
that bring health and inspiration to consumers, says
to sacrifice these; we strive to balance functionality
Les Tomaszewski, vice president of sales for Arla Foods.
and great taste with a cream cheese texture that
“We’re driven by our focus on creating the most clean
spreads well.”
deck of ingredients in natural products with no preservatives and no flavourings.”
www.arlafoods.ca
PRIVATE LABEL FOOD
Condiments & Sauces Frozen or Refrigerated Prepared Foods & Entrees
Bakery Fresh
Deleo de Leonardis, Lyne Castonguay, Gillian Kerr
SOBEYS INC. Sensations by Compliments Spirited Mickie Jennifer Gordon Chris Cooke
COSTCO WHOLESALE
SAVE-ON-FOODS
Kirkland Signature Pepperoni Pizza Hand Stretched Crust 4 Pack
Western Family Wraps
Confectionery & Shelf Stable Desserts
Meat, Egg & Seafood
Desserts (Fresh, Refrigerated or Frozen)
Sav Bellissimo
FEDERATED COOPERATIVES LIMITED Co-op Gold Buttercrunch Toffee Chocolate Frank Spadafina, Barbara Harrison Marv Kowalchuk, Sav Bellissimo
FEDERATED CO-OPERATIVES LIMITED Co-op Gold Sorbetto
56
July | August 2017
WALMART CANADA Your Fresh Market Kansas City Style BBQ
PRIVATE LABEL
CANADIAN GRAND PRIX NEW PRODUCT AWARD WINNERS
Shelf Stable Prepared Foods & Entrees
Snack (Sweet)
Snack (Savoury)
Lyne Castonguay, Gillian Kerr, Deleo de Leonardis
Ingrid Weckers, Guillaume Cantin
SOBEYS INC.
METRO BRANDS, G.P.
Compliments Super Squeeze Fruit Purée and Vegetable Juice Snack
Irresistibles Organics Whole Grain Quinoa Tanja Ignjatovic, Mélissa Weiskopf
METRO BRANDS, G.P. Irresistibles Vegetable Chips
NON-FOOD Pet Needs General Merchandise
Tammy Maddock, Czerny Vanden Heuvel, Teresa Hunter Natalie Miall, Tammy Chen, Jeff Labalestra, Emma Horner
CANADIAN TIRE CORPORATION
PETSMART Only Natural Pet Food
FRANK + Full Circle Program (14 Products, 3 Refills) Kitchen Compost Collector & Dust Whisperer Microfiber Duster
grocerybusiness.ca
July | August 2017
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2017 While consumer needs are stable, with taste, health, convenience and value guiding preferences, shoppers are evolving. Not only are shoppers focusing their choices on brands they’ve had positive experiences with in the past, trust is being established earlier in the cycle because of exposure to the experiences of other consumers via reviews.
r e p p ho 10
GENERATION SHIFTS Millennials a consumer force, Boomers have more spending power.
1
VALUE Canadian shoppers are on the hunt for deals.
2
53%
52%
Canadians demand that cultural food products taste authentic
Millennials prefer digital flyers "Financially Comfortable"
9
OMNI-CHANNEL Shoppers are comparing across channels and online content is influencing in-store decisions.
11
DIVERSITY Increased diversity in culture and personal tastes is impacting decisions.
49%
vs. Millennials
88%
59%
Trusted Sources for Recommendations
48%
shop online monthly
62%
focus on quality over quantity
regularly share their own product reviews
look for product reviews
2 3 will try new products from the brands they trust most
TRUST In the absence of a reason to trust something new, shoppers default to brands they know and trust.
Family & Friends 87% Consumer Awards 69% Consumer Reviews 59% Social Network Peers 43% Retailers 40%
Proud to get value
Boomers
62%
Hunting for deals makes shopping fun
88%
cision Drivers r De pe op Sh
volving C The E an ad ia n
S
BrandSpark International
3
67%
will pay a little more for a better product
PERFORMANCE Shoppers will pay more for products with meaningful superiority.
BrandSpark Canadian Shopper Study and BrandSpark Critical Shopper Factors are trademarks of Best New Product Awards Inc. and BrandSpark International. All Rights Reserved. www.BrandSpark.com www.BestNewProductAwards.biz | www.BrandSparkMostTrusted.com active|members Cook dinner at home at least 3 times a week
8
79%
own
CONNECTIONS Connected to media via mobile and to each other via social.
47%
7
Like trying new products
58
July | August 2017
ur ce :
20 17
84% Nutrition prevents illness
actively look for new products when in-store
INNOVATION New products are interesting, but need to stand out to shoppers. So
Proximity drives retailer choice for more shopping trips than even low prices
Bra nd Spa r
kC
ana dian Sh
Changing to live healthier
52%
When shopping, I look for inspiring meal ideas
73%
5
6
CONVENIENCE Busy shoppers appreciate quick & easy shopping trips, and products that save them time.
HEALTH Shoppers are looking for easy ways to live healthier, without sacrifice.
ig ll R c. A l In a n o i rnat opper k Inte dSpar St udy Š Co pyright 2017 Bran
d ve er es R hts
.
4
ENJOYMENT Shopping is a time to find products that the family will enjoy.
DELOITTE
Capitalizing on Insights:
A team approach By Jennifer Lee, Partner and National Retail and Omnichannel Leader, Deloitte
The retail landscape grows more competitive by the day, and grocery is no exception. As margins tighten and the customer path to purchase divides into premium and discount, it’s becoming clear that winning the retail battle requires companies to capitalize on customer insights to deliver a superior brand experience and engage high-value customers. And that means grocers will need to redouble their investments in analytics.
change managers, subject-matter experts and political navigators – are vital to persuading organizations to embrace an analytics mindset.
Analytics has become an indispensable tool for delivering the personalized experience customers demand. As datasets grow larger, artificial intelligence, machine learning and other analytics techniques are enabling companies to uncover vital insights from the massive daily flow of information.
A more feasible option is one where retailers build a purple team that combines internal staff and external partners. This co-created approach enables retailers to overcome one of the biggest challenges of the analytics era: recruiting talent that’s in high demand around the world.
As grocers and other retailers move forward with executing their analytics strategies, they should keep the following points in mind.
Analytics is a collaborative effort Analytics isn’t just another IT project – it’s an enterprise-wide effort that requires engagement among all stakeholders. Analytics should be driven by the business, working in close collaboration with IT and other stakeholder groups across the organization.
Getting the talent mix right Grocery retailers also need to ensure that their analytics teams are staffed with the right mix of people. The combination of technically savvy “red skills” people and seasoned “blue skills” business communicators create “purple” teams that can build the kind of insight-driven organization that thrives in today’s hypercompetitive areas. Companies that try to win at analytics by hiring mainly “red” talent, such as data scientists and technology architects, are likely to struggle. In recent years, it’s become very clear that “blue” talent – the
grocerybusiness.ca
This doesn’t mean grocers need to build their entire purple team in-house: in fact, they probably shouldn’t. Analytics continues to advance at a blistering pace, making it challenging for companies to keep up, particularly when it’s not their core business.
Building analytics capabilities: start small and place the focus on people What really differentiates grocers’ analytics success are the people involved. Companies that focus on four key areas of people advantage will be better positioned to transform analytics insights into superior business performance: • Leadership: Pick transformation-savvy executive sponsors from growing, profitable business functions. • Operating model: Make the best use of scarce analytics talent. Centralize scattered talent into a hub or centre of excellence. • Talent/capability development: Concentrate on building an analytics ecosystem. • Culture and change management: Be strategically bold by demonstrating a willingness to change business norms. Be tactically astute by focusing on practical use cases. Customer experience now provides the crucial winning edge in the highly competitive world of grocery retail, and analytics is key to keeping that edge sharp. July | August 2017
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READERSHIP RESULTS FROM
I just want to say a quick thank-you for the fantastic article and coverage. I’ve already received calls from retailers who have seen the article and are interested in carrying the product line.
Making It
GREAT GHEE By Bonnie Schiedel I fell in love,” says Lee “When I made that first batch of ghee, so good and it’s good for Dare, founder of Lee’s Provisions. “It tastes is made by simmering you.” Ghee, also known as clarified butter, , which are skimmed off. The butter to separate out the milk proteins with a very high smoke point result is a concentrated form of butter even personal care. Toronto that can be used in baking, cooking and ghee in the top 10 of its 2017 food and beverage agency THP touted Flavour & Trend forecast.
s,” says Dare, who continues “That was a turning point for the busines the show aired in late 2016, to be the company’s sole employee. After ss about the brand and I got “there was a huge increase in awarene the taping, Dare added an inquiries from all over the country.” After y website, scaled down her e-commerce component to her compan moved production to a seven SKUs to the five most popular and -licensed dairy plant in 12-person manufacturing team at a federally of organic milk. Quebec, which has a larger ready supply
something small, something I “I was originally thinking this would be “But it just took off.” By would sell at farmers’ markets,” says Dare. and begun producing her lineup 2015, she had founded the company customers to skew younger, of ghees. And while Dare expected her who like it as a butter it’s actually health-conscious baby-boomers lactose and casein for the alternative that contains only traces of dairy-sensitive.
to stores in British Columbia, The company will expand distribution and is on track to enter the Quebec and Saskatchewan this year, changed the company name American market in two years. Dare also to reflect a planned broader from Lee’s Ghees to Lee’s Provisions, range of products.
via industry events such as The company started getting exposure shows. And then after Canadian Health Food Association trade neur Canada program that arranging a starter loan through a Futurpre knocking on doors and supports young entrepreneurs, Dare started , including Whole Foods making cold calls to build her first 50 retailers . and Foodland locations in southern Ontario production and distribution, When it came to finding funds to expand Dragon’s Den in April 2016. Dare decided to make her pitch on CBC’s (who debated her company’s She piqued the interest of several judges popcorn), and she ultimately merits while munching on ghee-topped partnered with investor Joe Mimran.
It reflects the company’s And how about that elephant on the logo? its profits to a non-governmental commitment to donate 10 per cent of works to secure elephant organization called Elephant Family that parts of Asia, helping to wildlife corridors across India and other elephant population. “It’s a way protect the world’s endangered Asian originated,” says Dare. to give back to the country where ghee
es “We put Lee’s Provisions on our shelv is such a because the organic flavoured ghee well with our unique product. It does extremely flavours.” of p lineu the of customers because —Tara Longo, owner, The Healthy Butche
r, Toronto
March | April 2017 grocerybusiness.ca
Canada’s premier grocery magazine: Kevin Smith: kevinsmith@grocerybusiness.ca Dan Bordun: danbordun@grocerybusiness.ca Karen James: karenjames@grocerybusiness.ca
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Lee Dare, president, Lee’s Provisions
SWEETS & SNACKS EXPO, CHICAGO May 23–25, 2017
Robert Schwarzli with BMC Universal Technologies’ traffic-stopping Automated Candy Dispensing Machine
Michael Petcherski and Alan Shang, ThreeWorks Snacks
Linda Seiler with Jelina Chocolatier’s Fair Trade Chocolate offerings
Virgil Rubini, Axenta Confections
Saloua Peeters with Duo Penotti Portion Paks distributed by National Importers
John Burgess, Ganong Bros., with new Sunkist branded treats
Shelley Wallace, The Chocolate Princess from Hagensborg Chocolates
grocerybusiness.ca
OMG! Bites’ Larry Finnson and Mary Kate Gorski
Mark Cigos, Temple Lifestyle, with the Sweets & Snacks 2017 Small Business Innovator Award
Awake Chocolate’s Matt Schnarr with Bulk Barn’s Brooke Dickie and Angela Di Vincenzo
Craig Bliss with Karma Candy’s EggSquisites Mini Eggs
Covered Bridge’s Ryan Albright and Brook Dickinson with newly launched Pop It Kettlecorn
Kirk Homenick and Kevin Burk with Hardbite new Avocado and Lime Chips
David Howard and Jay Klein, The PUR Company
Lamontagne Chocolate’s Jennifer Landry, Richard Lamontagne, Tina Lamontagne, Martin Cournoyer and Julie Begin-Huppe
Acosta Sales & Marketing’s Fred Rosen and Shaun McKenna
Grace Kwan with Big Sky’s terrific mints
Logan Martin, Martin’s Family Farms
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it figures
Going for Growth In 2016 & 2017, consumer goods regular prices dropped 1.5% while featured prices rose 3.2% Takeaway It’s a buyers’ market and a challenging operating environment. While the rate of dollar growth is slowing, consumption growth remains relatively static at 1%, adding to margin pressure. Smarter promotions are key to driving profit.
% 54
of Canadians say they are willing to pay more for products without undesirable ingredients Takeaway Canadians’ desire for a healthier lifestyle creates an opportunity in a slow-growth environment.
Millennials make 116 store trips annually compared to 193 trips for older shoppers
of consumer insights for Nielsen in Canada, and is responsible for creating thought leadership insights for CPG manufacturers and retailers.
Takeaway Make the most of those store trips. Eye-catching in-store displays in key Millennial categories, quick checkout lanes and an easy in-and-out-of-store experience will increase chances of repeat visits.
E-commerce channels in 2016 are of the market
Carman Allison is vice-president
A L L S TAT S C O U RT E S Y: NIELSEN
1.9%
By 2020, $ share is projected to exceed
5%
Takeaway Retailers who are able to provide an exceptional e-commerce experience and excellent stores will win with the omnichannel shopper.
In 2016, Canadian consumers
made 2.3 billion shopping trips,
7% from 2012
Takeaway Fewer store trips equal fewer connection points with shoppers. However, increased online platforms have opened the path to new and innovative ways to get consumers’ attention.
ONTARIO
+3%
BRITISH COLUMBIA
+4%
are both driving dollar growth Takeaway Growth is challenging but some areas are performing well. This is a good opportunity to incentivize consumption through marketing programs. July | August 2017
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PMA
WITH US, CONNECTIONS ARE NEVER IN SHORT SUPPLY. Costco Wholesale joined PMA to support their rapidly growing fresh produce offering. But along the way, they discovered they were also rapidly growing relationships. From finding new suppliers to developing new talent, PMA helps you forge global connections across the industry.
GLOBAL CONNECTIONS—THAT’S THE PMA ADVANTAGE. What’s your business challenge? We can help. CONTACT US FOR A FREE CONSULTATION. Paula Gonzalez, Director, Member Relations: +1 (302) 738-7100 | pgonzalez@pma.com
“THANKS TO PMA, WE ARE IDENTIFYING GROWERS AROUND THE GLOBE THAT OFFER HIGH QUALITY AND INCREDIBLE FLAVOR PROFILES.” OLEEN SMETHURST General Merchandise Manager Costco Wholesale | Retailer | CANADA
See her PMA story at pma.com/stories/OleenS
LIST IT
NEW & NOW DISCOVERIES
Top beef by Top Grass Goodbye “wilt guilt” Gourmet Garden Lightly Dried Herbs and Spices are simply fresh seasonings that have been lightly dried so that, once opened, they will last for four weeks in the refrigerator. Non-GMO and USDA organic.
Top Grass Cattle Co. meatballs and beef burgers are made from Alberta-raised beef without the use of added hormones or antibiotics. The cattle are free range and grass fed to produce the healthiest animals possible.
topgrass.ca
gourmetgarden.com
Superfood Ice Pops Farmers Land Food introduces Smoothie Ice Pops. Vegan, 100 per cent natural and with no additives, these icy treats are available in four distinct flavour combinations: Super Green, Balance, Active and Vitalize.
farmersland.de
grocerybusiness.ca
Cool down with Herbal Iced Teas Tetley’s new Herbal Iced Teas are made with real herbal extracts and come in three flavours. They are caffeine-free with no artificial flavours, colours, sweeteners or preservatives.
tetley.ca July | August 2017
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