May 2013 by annexbusinessmedia

Bakers

The voice of the canadian baking industry

Baking with coconut oil

Meb Gilani, President, Gilani Group, Calgary, Alta

fRiENDS WiTh fiTNESS

Gummy bears are good for your health: True or false?

If you answered false, you are wrong. At least, you are if you generally believe the mainstream media’s health reporting. Gummy bears were reported as “good for you” in a Behind the Headlines study conducted by the National Health Service (NHS) in the U.K. The review analyzed U.K. news reports published between 2007 and 2011. Binge drinking also made the list of items labelled as good for you at one time or another, while water, incredibly, was reported as bad for you somewhere along the line.

The amount of misinformation out there is staggering: NHS found that half of the health stories they analyzed were “spun” or distorted in some way. Although these are U.K. statistics, many of the headlines in their online Behind the Headlines section are the same as the ones showing up in North American pages. Factor in the compounding power of social media and blogging, and we’ve got a downright frenzy of conflicting information on our hands. There are resources online, including NHS, that give guidelines for evaluating news reports. I’ll hazard a guess that they are underutilized.

Considering how difficult it is for accurate and sensible health information to be heard among the gunshots of silver bullets, I encourage bakers to be vigilant in vetting and attributing the information you share. For every angle one author espouses, it seems a contradictory one can be found to question it. Dietitians are great sounding boards, and the “better for you” market would benefit from a louder dietitian voice because it’s an accountable and a highly trained one.

}Because it takes a surprising amount of effort to sift the solid scientific from the rest of it (partly because access to the original research is expensive), bakeries may want to consider the safe bet of increasing their alliance with physical fitness. If you have a special interest in health, but don’t want to be positioned as knowledgeable about it to your customers, consider what one of the world’s biggest brands is up to now.

if you have a special interest in health, but don’t want to be positioned as knowledgeable about it to your customers, consider what one of the world’s biggest brands is up to now.

Coca-Cola has been rolling out a new ad campaign in the U.S. to share the message that it is fighting obesity by pointing out the number of low- or no-calorie brands in their stable, running spots encouraging people to get off their chairs and teaming up with a number of sports and activity initiatives. Naysayers argue it’s just Coke doing good PR, but I say, who cares? The folks at Coca-Cola have a lot of money and if they want to build fitness centres and fund physical programs, I say, thanks, Coca-Cola! The campaign is making its way to Canada, so perhaps we will benefit from programs like Coca-Cola for Fitness, which uses military vets to teach army-style fitness classes to families.

You don’t need to be the size of Coca Cola to support physical activity, but there’s no harm in taking cues from a brand this powerful. You can sponsor kids and adult sports teams, a walking/running club or align with a local gym to hold draws for free memberships or trial classes. Offer picnic-in-the-park baskets to encourage families to get outside and play.

Here’s a twist: why not sponsor an individual athlete? Sports are underfunded in this country (hello abdication of young athletes to the U.S.), and there are Olympic hopefuls out there who need the support of local businesses. A family friend who competed in the last summer Olympics, for example, needed to raise tens of thousands of dollars on her own and she organized a fundraiser to assist her. There are lots of stories like this out there. Is your bakery part of one of them? / BJ

MAY | Vol. 73, no. 4

Editor | laura Aiken editor@bakersjournal.com 416-522-1595 1-888-599-2228 ext. 250

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industry news ¦

briefly | Universities use synchrotron to study hidden world of bread; Canada Bread Company closes a snack cakes bakery in Quebec | for more news in the baking world, check out our website, www.bakersjournal.com

Sights at the CRfA

Toronto – Toronto’s annual Canadian Restaurant and Foodservices Association (CRFA) show touched down at the Direct Energy Centre with the heady buzz of spring and happening things.

Held March 3-5, the event attracted about 13,000 people with more than 1,200 exhibitor booths. This year’s festivities saw a flair-bartending stage, a Breakfast of Champions panel, pop-up bistro, and packed days of chef demos and educational seminars. Vikram Vij, Mark McEwan, Anna Olsen and David Adjey were amongst the celebrity chefs on hand sharing their knowledge.

Mexico had a prominent presence with a pavilion of vanilla, green beans, hot sauces, and of course tequila. The U.S. states of Georgia, Illinois and Pennsylvania had booth presence this year as well. Gourmet Syndicate, a “mobile food infrastructure services company” gave a nod to the continued food truck trend. bakers Journal found one birthday booth: Toronto-based Carole’s Cheesecake Company was celebrating its 41st at the show.

Here’s a roundup of cool new products and show newcomers:

• Callebaut showcased its new line of ready-made decorations, including oriental fans, snowflake-shaped rounds, points, leaves and a variety of other ornaments. The line is brand new, and customers can contact Callebaut for availability of specific

decorations in the coming two to three months.

• Lentia’s booth was featuring Wild Finger Lime Citrus Caviar fruit crystals from the Australian finger lime, available in different colours and intended for dessert/pastry garnish. The company was also showcasing its new Valrhona Dulcey 32 per cent, a blond chocolate, with a creamy texture and a dulce de leche like flavour.

• Armodilo, a first-time exhibitor looking to make waves in the Canadian market, offered a slicklooking stand that turns tablets into interactive kiosks.

• Fondarific, makers of a variety of flavoured and coloured fondants, was exhibiting in Canada for the first time.

• FoodShootr is a new app that lets diners snap photos of their food at restaurants or at home and instantly share them with the world.

• The Women’s Foodservice Forum has been around for 23 years but this was its first appearance at CRFA. The association is a developmental resource for women in food service. Their next event will be held May 2 at the International Centre in Mississauga, Ont. bakers Journal will be touching down in Vancouver from May 5-6 for Bakery Congress. Look for our coverage in a future issue.

Mimac Glaze celebrates 35 years

Mimac Glaze is proudly celebrating its 35th anniversary in May. Dave Miles, president, is a highly recognized and well respected baker and creative mind in the industry.

Mimac Glaze, as the name implies, supplies glazes, as well as icings for many applications. The company is a nut free facility and have been HACCP certified for over 12 years. This year, Mimac Glaze will also become gluten free certified through a recently launched audit program endorsed by the Canadian Celiac Association. Recent product development has led to the launch of rolled fondant.

Miles has also created Paragon Glaze Consulting, which allows him to share his expertise and extensive creativity with others. Congratulations to Miles and the staff of Mimac Glaze on this colourful milestone!

For more news and information, follow us on Twitter @BakersJournal and you can find us on Facebook. Don’t forget to check out the 2013 Bakers Journal Business Awards at www.bakersjournal.com/bakerbizawards. We are now accepting nominations. The deadline for entries is July 31!

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Product of the USA

MoffAt InC APPoInts neW

exeCutIVe Chef

Moffat Inc. has appointed Peter Carroll as executive chef for Moffat U.S.

Carroll will be responsible for providing executive chef services with respect to new product development, new customer development, and ongoing product and customer support, with a focus on national accounts. He has more than 30 years of experience in the foodservice industry, most recently as an executive chef for International Traders, Inc. In this position he assisted with R&D and was responsible for menu development and

ideation showings for all food products from vendors within the ITI system. Prior to that, he was with Ali Group North America for nine years in various roles.

leMAtIC APPoInts neW

DIreCtor of sAles

LeMatic Inc. has appointed Brandon Woods as its director of sales. Woods will be responsible for leading LeMatic’s growing sales team in its domestic and global markets and will pilot the effort to expand LeMatic’s growing customer base. Woods has served as sales executive with LeMatic since 2008. He lives in Manchester, Mich., with his wife Amelia and four children.

thoMAs DouglAss JoIns

CArAVAn IngreDIents

Thomas Douglass has been named fortification director for Caravan Ingredients. In this marketing role, Douglass will be responsible for the development and execution of category growth strategies within the fortification platform. In addition, he will work to identify business development opportunities to grow Caravan Ingredients’ fortification business. Douglass most recently joins Caravan

Ingredients from Glanbia Nutritionals, where he worked as a sales manager in its eastern territory. Prior to this role, Douglass held executive leadership positions with Flavor & Fragrance Specialities and Allied Blending and Ingredients. He brings to Caravan Ingredients 28 years of experience in the food industry.

PfeIffer PresenteD WIth lIfetIMe

AChIeVeMent AWArD

Every other year, the Fine Chocolate Industry Association (FCIA) hosts its Recognition of Excellence ceremony to award individuals and businesses that have contributed to this diverse community of chocolate makers. On Jan. 19, Chef Jacquy Pfeiffer received the FCIA’s Lifetime Achievement Award for his role in co-founding the French Pastry School of Kennedy-King College at City Colleges of Chicago and mentoring future generations of chocolatiers. Other honorees at the San Francisco ceremony included Santiago Peralta for Outstanding Fine Chocolate Maker, Andal Balu for Innovation in Fine Chocolate Products and Mary Jo Stojak for Outstanding Service to the Industry.

Pfeiffer’s career has often highlighted the versatility of chocolate both as a candy and as an art form. He has won honours at international competitions such as Master of Chocolate, Coupe du Monde de la Pâtisserie and the National Pastry Championship. Pfeiffer was also featured in the 2009 documentary Kings of pastry, which tracked his experience in the Meilleurs Ouvriers de France and introduced the art of pastry and chocolate to an international audience. Throughout his time as a chef instructor, he has influenced students from around the world, many of whom have gone on to open chocolate shops from Chicago to Las Vegas and beyond.

P E R F E C T B R O W N I E

A T R U E S T O R Y : A Reiser customer was using a Vemag Depositor to successfully portion gourmet cookies and scones. She wanted to expand into brownie products and decided to purchase a piston filler to do the job. She quickly discovered the limitations of the piston filler – the batter had to be made less viscous to run through the machine and it required hand-spreading to fill the tray corners. Realizing how happy she was with her Vemag, she asked Reiser’s bakery specialists to engineer a solution. The result was a Reiser 18-inch Rotary Sheeter that attached to the Vemag. This heavy-duty device allowed her to make the brownies as thick and chocolatey as she originally envisioned. The Sheeter’s full-width extrusion completely filled the pan, eliminating all hand lab or It was the perfect solution! Her vocal support resulted in sales at other plants as she spread the word of Vemag’s ability to sheet viscous batters and cookie doughs

Sales of coconut products are reportedly on fire. Here’s a look at coconut oil. | BY

JulIe fItz-gerAlD

A touch of the tropics

tropics

We’re nearly halfway through the year, and coconut oil is proving to be one of the big trends. Chefs, bakers and consumers alike are busy experimenting with this tropical oil as a replacement for butter and more traditional oils. But, how well does it work?

While proponents of coconut oil cite a long list of health benefits, including stress relief, increased immune function, higher metabolism, weight loss, and a reduction in kidney problems and heart disease, the medical community is still on the fence about how healthy it really is. The debate centres on coconut oil’s high saturated fat content of almost 90 per cent. The Heart & Stroke Foundation and Canada’s Food Guide recommend that Canadians drastically limit their saturated fat intake because of its link to increased levels of LDL cholesterol or “bad” cholesterol. The difference with coconut oil, however, is that its saturated fat content is made up of medium-chain fatty acids, which are smaller molecules that are easily digested by the body and converted into energy. This is in contrast to long-chain fatty acids that make up the saturated fat found in most other vegetable and seed oils, as well as in butter. Long-chain fatty acids are large molecules that the body has trouble breaking down, ultimately storing them as fat and contributing to higher levels of LDL cholesterol.

}Some coconut oil is labelled “extra virgin,” but keep in mind that there is no set industry standard for the use of this term.

Interestingly, coconut oil has been heavily used in Pacific Island populations for centuries, where heart health is surprisingly good. According to an article printed in The Huffington Post by Dr. Joseph Mecola on March 4, Pacific Island populations get 30 to 60 per cent of their total caloric intake from saturated coconut oil, yet they have nearly nonexistent rates of cardiovascular disease. It is perhaps data like this that has consumers drawing their own conclusions on the product, however it must be kept in mind

that cultural biology can play a roll and comparing North Americans to Pacific Island populations may be akin to apples and oranges. Judging by the coconut’s recent popularity in the United States and Canada, a large number of people are buying into its health benefits as we’ve seen with the recent surge in coconut water products.

WhAt’s It lIke to BAke WIth?

The oil comes in solid form and melts when heat is applied, with a high melting point of 24 C (76 F). It has a smoke point of 177 C (350 F), so it can only be used for certain frying applications below that temperature, such as pan searing.

Christopher Ennew, C.C.C., executive chef at Ste. Anne’s Spa, has been

experimenting with coconut oil over the last few months and loves the life that it breathes into his dishes. The mellow, pleasant taste that the oil affords to his baking and cooking has been garnering a great response from guests at the spa.

“The response has been very positive, especially for those who have allergies. And then there’s the alternative eater who wants to try different things and wants to experience something more interesting with their food. It satisfies different palates and tastes.”

Ennew has been using coconut oil in various applications, including soups, warm couscous or quinoa salads, brownies topped with dairy-free icing, and cookies, to name just a few. Used as a butter substitute, the oil has also been satisfying the growing needs of dairy-free and vegan diners alike.

“The biggest benefit is to accommodate more of my guests with their health issues. When I see a smiling guest

Coconut oil can be used as a butter replacement for cookies and other baked goods.

enjoying a dish that they haven’t been able to have in a while due to a health issue or diet choice, it’s very exciting. Food is a huge part of people’s lives.”

Because the oil begins to solidify as soon as it’s exposed to cooler temperatures, it is tricky to use in salad dressings. However, Ennew has found that by bringing greens to room temperature prior to serving, he still has success with the oil in this application. Because coconut oil reacts differently depending on the application and is not a straightforward exchange for butter or other oils, Ennew suggests experimenting with it in small recipes to start.

“Like with any new product, use small recipes. Substitute a small amount in the beginning, start with half and work your way up until you get the texture and flavour that you want, because every product reacts differently when added to other things. Sugar and flours play a big part, so you have to take your time with it. There are a lot of people out there who have already done a lot of work on it, so you don’t have to reinvent the wheel. You can get on some blogs and see how others fared.”

When selecting a coconut oil, remember that not all are made equal. According to www.coconutoil.com, a source for original and peer-reviewed research on the subject, there are two types of coconut oil on the market today: refined and virgin. Refined coconut oil is bleached and deodorized to eliminate the taste and smell of the coconut. Virgin coconut oil is achieved by pressing the oil out of fresh coconut meat, without using chemicals or high heat for further refining.

Manufacturing virgin coconut oil generally is done in two

ways: cold-pressing and wet-milling. Cold-pressed coconut oil is created through the process of quick-drying fresh coconut meat and then mechanically pressing out the oil. It is the most common type of virgin coconut oil on the market today. Wet-milling is the process of extracting oil from fresh coconut meat that has not been dried first. The coconut meat is pressed in order to squeeze out the coconut milk, which is then further separated to divide the oil from the water. Some coconut oil is labelled “extra virgin,” but keep in mind that there is no set industry standard for the use of this term.

the PrICe PoInt

Here’s a look at a couple different cost options, just to give you an idea of how it compares to what you’re currently using. A popular coconut oil among consumers, according to online forums and blogs, is Tropical Traditions Gold Label Virgin Coconut Oil, which is certified organic. In Canada, health food distributor T.T. Ultimate Products sells this oil in a five-gallon pail for $445 and a one-gallon pail for $121.95. Alternatively, Nutiva’s Organic Extra Virgin Coconut Oil can be purchased in Canada in one-gallon quantities for $59.99. Coconut oil can also be found in the health food section of many grocery stores in smaller quantities.

With consumer knowledge and demand for coconut oil increasing, it could prove to be a trend with staying power. Adding a taste of the tropics to your dishes may provide just the boost that you’ve been looking for. Ennew encourages others to try it out for themselves.

“It’s an enjoyable product to work with and you only need a little bit, so I would say, give it a whirl, give it a try. I was quite surprised when I first started using it and I was quite excited about coming up with something different that I could make. Offering somebody a dish or dessert that they haven’t been able to have for a couple of years because of allergies or illness: it’s exciting to see a smile on someone’s face when you get to do that.”

/ BJ

Julie Fitz-Gerald is a freelance writer based in Uxbridge, Ont., and is a regular contributor to Bakers Journal.

¦ concepts for success ¦

By Di ANE Chi ASS o N

WARM up youR BAkERy foR SuMMER

Spring is in the air and it’s time to let the sun in! Here are 12 great ways to brighten up your bakery.

Summertime is all about bright, fun colours and sunshine. If your bakery is looking a bit pale and stagnant after a long winter, it might be a good idea to add some pizzazz and energy to your operation. There are several inexpensive ways to give your bakery a new look this summer. Pick a theme and colour scheme, and run with it!

1. ChAnge uP PlAtes

If you are currently displaying all of your pastries and cakes on white or dark plates, consider picking up more seasonal plates with stripes, polka dots or gingham designs at the dollar store. This small change will make a huge difference to your displays.

2. use CAnDY

Get some clear glass jars and fill them up with an array of pastel-coloured candies, marshmallows, tall, swirly lollipops and other fun items to use as display items around your bakery. You can also set up large jars of candies around your cash register, and sell candy in little paper cups by bulk to customers as an add-on sale.

3. WrAP CArDBoArD Boxes

Create merchandising displays using colourful round or rectangular cardboard boxes, or wrap boxes using pastel-coloured wrapping paper, and use them as risers. Place them at varying heights, and intersperse the display with vases filled with bright, fresh flowers and jars of candy.

4. MAke DIsPlAYs froM gIft BAgs

Buy various sizes of colourful or patterned gift bags filled with shredded tissue, and stick big swirly lollipops and cakepops into them. Stand the bags up on your countertop or other display areas.

5. use orIgAMI

Fold patterned or coloured paper into

origami boxes or envelopes, and use them to sell cookies, pastries and other treats. Display the origami boxes around the bakery as well.

6. BrIghten WIth rIBBons

Tie up your bags of breads and other treats using colourful ribbon. That small extra touch of colour can make a drastic difference to a wooden basket filled with brown breads.

7. ADD PAtIo lIghts

Pick up strands of mini patio lights at your local party supply shop and string them around your bakery. Patio lights always create a festive and playful atmosphere.

8. use PlAnt Potters

Invest in some inexpensive ceramic plant potters in bright blues, reds and yellows, and use them to hold cakepops or other treats. If you offer dine-in services, use them to hold utensils and napkins.

9. BrIghten Yourself

Brighten up your own look by donning a more colourful apron or wearing a fun hat. You and your staff are part of your bakery’s décor, and should dress to match.

10. Put uP BrAnDeD uMBrellAs

Place colourful umbrellas branded with your logo or, if available, free umbrellas from your suppliers, and set up an

outdoor patio area in front of your bakery where customers can sit and enjoy their baked treat and a beverage.

11. ADD ChAlkBoArDs

Give your guests an opportunity to write glowing testimonials about your bakery and your products by adding a chalkboard to your bakery. Purchase chalkboard contact paper at any hardware or crafts store, and just peel and stick to a wall that is easily accessible to guests. Leave out cups of neon coloured chalk. The chalkboard will also help keep little kids entertained while their parents shop in your bakery.

12. groW A gArDen

Set up a few plant potters outside your bakery and grow fresh herbs, tomatoes and lettuce – items that require minimal work. Feature your freshly-grown produce in your products like a fresh tomato sandwich or loaves of herb bread. Nothing says “local” like something grown right outside your door!

Try out these 12 ideas to put a little spring in your bakery’s step./ BJ

Diane Chiasson, FCSI, president of Chiasson Consultants Inc., has been helping restaurant, foodservice, hospitality and retail operators increase sales for more than 30 years. Contact by e-mail at chiasson@chiassonconsultants.com, or visit www.chiassonconsultants.com

Fill clear glass jars with bright, colourful candy to display around your bakery.

Are you tA pping?

Adopting the latest technology is not just for the big boys of business. Everyone can put a horse in this race. Today, there’s one defining technology with the best odds in the sports book: Near field communication (NFC). You know it as the little sound wave you may have on your bank cards, or as the pay wave option you have seen people using at Starbucks or some gas stations. NFC is the ESP of the account transaction world. One NFC chip enabled device can share anything with another enabled device just by touching it. The information can be exchanged between cards, smartphones, key fobs and terminals.

“Within 12 to 18 months, you will start to see this occurring in more restau-

rants, where payment is made by tapping a card,” predicts Wayne Edwards, a partner in Merchant Mobile Apps. He adds: “We know what’s coming is going to involve mobile payments: what’s possible is anybody’s guess.”

NFC is also the technology behind mobile wallets. Mobile wallets allow users to download their payment and loyalty cards to their phone, eliminating the need to carry them. NFC technology has been around for a while, and detractors have pointed out that it hasn’t revolutionized the world yet, but the short-range and secure wireless system requires an equipment and mentality overhaul that will take time. For now, and as it appears from the actions of the major banking players,

The Road From Garments To Bagels Paved With Success

Joe Puiia began his professional career when he joined father, Vito, in the garment industry. As the industry began to send work overseas, the two sought new business opportunities.

In February 1989, they opened J. P. Bagel Express in Hoboken, New Jersey, which was an immediate success. In June 1989, Joe’s brother, Jerry opened a similar business called Bagel Stop in Vernon, Connecticut. In 1990, Joe moved to South Windsor, Connecticut, to join Jerry in opening a second Bagel Stop. Today, Joe and Jerry own the Bagel Stop Production Company that supplies a variety of baked goods to Joe and Jerry’s newer company, Between Rounds Cafes. Combining several marketing concepts, Between Rounds Cafes offer bagels, gourmet sandwiches, salads and gourmet coffee. Joe and Jerry have a total of six Between Rounds locations in two states, offer catering services for large events and are building a franchise business.

Joe recognizes that a business needs to change in order to grow. ‘‘If you are not competitive in a crowded market, you will lose customers to the next guy,” he said. ‘‘I believe our success comes from our ability to stay competitive, and the work ethic we learned from our father.”

Joe relies on International® Bakers Services (IBS) to stay competitive.

‘‘IBS is the most professional company in terms of meeting their customers’ needs, said Joe. ‘‘They also let their customers know they are appreciated.” For their famous bagels, Between Rounds uses Blueberry Flavor, Maple Flavor, Apple Cinnamon Flavor and seasonally, International’s Pumpkin Pie Spice Blend.

If you want flavors that help you compete in a crowded market, rely on International® Bakers Services. Contact us toll-free at (800) 345-7175, by fax at (574) 287-7161, or in writing at 1902 North Sheridan Ave., South Bend, Indiana 46628. We have the flavors your customers deserve.

use of the technology is indeed expanding and moving forward.

Last November, Rogers and CIBC rolled out the country’s first “tap-and-go” digital payment app that allows credit card purchases through a smartphone. The Financial Post reported: “For Rogers, mobile payments represents a potentially massive new market. The wireless giant believes that by 2016, four in five devices will be equipped with NFC technology and total purchases will

surge to $14.2-billion.”

RBC announced plans in late 2012 for its own virtual wallet. It is likely all of Canada’s big banks are sewing suits of similar stripes. In the U.S., Wal-Mart stores have been busy piloting a “Scan & Go” program that lets customers pay using their smartphones.

Zomaron Merchant Services, a company that clinched #15 on Profit magazine’s Hot 50 list in 2012, is right on the cusp of hot emerging technology.

Zomaron aims to offer better rates and better customer service to merchants. Joseph Jongsma and Tarique Al Ansari founded the company in a joint decision to serve the market better.

Jongsma shares the current tide of enthusiasm for the possibilities NFC technology is bringing to the marketplace. For now, he says, we will have tap and pay cards and mobile wallet smartphones in the market because older generations prefer to use the physical cards.

Darlene Wallace of Zomaron, a wireless technology vet, thinks men will be the first big adopters of the technology because it suits their need to carry less, being the purse-less sex of course. Convenience and speed will be two big advantages. The system is faster than either swiping or insert/pin payment.

“You’re going to see separate lines for this eventually. People are able to order their coffee and muffin and go into the store and go right up to that line to pay because it will be ready,” says Jongsma.

The latest hardware – terminals and the like – being deployed in the market are NFC equipped, says Jongsma. However, it’s unlikely your service provider is going to send you an upgraded terminal unless your current one breaks down, he adds, so if you want to get NFC-ready you may need to start the ball rolling yourself. As it filters through the bigger chains and big-box shops, more and more customers will expect it. Changing technology doesn’t necessarily mean higher prices. An NFC terminal is pretty much the same price as what merchants are paying now, says Jongsma.

“If it costs the same, it makes sense to get that technology into your business right away.”

the VIrtuAl MerChAnt: IDeAl for DelIVerY

The market is seeing growing use of NFC, or tap and pay technology, and mobile wallets, which download the user’s banks cards to their smartphone enabling it to be used as a payment device. It seems the ultimate fusion of these technologies is the virtual merchant, offered by Zomaron, which may have some big appeal for places with delivery drivers.

Virtual merchant mobile processing allows delivery drivers to accept payment at the door through their own

smartphone. The payment information collected is stored on a cloud, and drivers use a server ID through an app to make transactions. When using virtual merchant, operators would not need to send out drivers with long-range terminals, eliminating the monthly fees associated with these units. Operators can get reports and see live transactions through this system as well.

Wallace notes that the system allows for signature capture and the virtual merchant costs 80 per cent less in hardware costs than what a place with multiple drivers on the road would be paying today. Pricing is also linked to sales volume.

Currently, virtual merchant is able to process Visa and MasterCard only, as is much NFC technology, but Jongsma says things are about to change.

“In July, Zomaron is expected to be one of the only companies in Canada having access to Interac debit, Visa and MasterCard through chip technology through the phone and that’s huge. That’s going to change the market incredibly.”

the neW loYAltY CArD

Payment service isn’t the only market tapping into tap and pay. The loyalty program market is also coming up with new ways to foster patronage. Spoonity, an Ottawa-based company founded by Max Bailey and Myron Gomes, offer a tablet and key fob set up for restaurants and guests to facilitate an easy rewards program. Spoonity got rolling in early 2011, then launched in November of that year with four restaurants on board. NFC was selected as the technology of choice due to its simplicity and growth in the mobile space, says Bailey, who suspects it will become the dominant player in this arena.

Single independents pay between $60 to $100 a month for the tablet, says Bailey, with small to medium-sized restaurants being the company’s target market, but they are also equipped to roll the automated system out for a chain. The cost is linked to features, he says. For small shops, it will replace their punch card, and the amount of report data they obtain varies depending on the package signed on for. Operators can learn who their customers are, how many are earning rewards, e-mail addresses, frequency and who has stopped coming in the last 30, 60 or 90

days. Then, there is the option of sending those lapsed customers messages.

Spoonity rewards customers through three spoon levels: a teaspoon for occasional guests, a tablespoon for loyal customers and a big spoon for regulars. The system helps enable servers and delivery staff address customers by name. The company has a little over 100 restaurants confirmed for this year, says Bailey. While emerging technology can seem

like something in the shadows of everyday business, it is only a matter of time before it becomes a customer demand. It seems to be the generally accepted and agreed upon future that one day the smartphone will be the dominant way to pay. It could be the right horse to bet on in the race. Right now, having the latest technology could not only set you apart from the competition, but also save you money. This raises the question, why wait? / BJ

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By DAvi

DiviDED By TWo

Income

splitting may be a viable option for business owners

It’s no secret that the Canada Revenue Agency (CRA) doesn’t make it easy to minimize your tax burden, but there is one often overlooked opportunity to do just that – if you meet the requirements. It’s a strategy called income splitting. Think of it as sharing the wealth in order to save on tax.

Of course, income splitting only works if there is a clear high earner and a lower or no-income earner. That’s because Canada’s tax system is based on marginal tax rates, which ensure higher-earning individuals are taxed at a higher rate than lower-earning individuals. These marginal rates vary between provinces and territories, but it typically holds true that someone who earns $100,000 in taxable income each year can pay up to $10,000 more in personal income tax than two people who earn $50,000 each.

Put simply, income splitting involves redirecting income from higher-earning family members to lower-earning members. This will help lower the marginal tax rate of the high-earning family member, in effect, maximizing the benefits of the lower marginal tax rates.

Of course, the CRA has attribution rules in place to ensure the person who earned the income claims it, but there are a few exceptions. For example, retirees are permitted to income split their retirement income such as Canada Pension Plan, annuities from RRSPs and RRIFs, and life annuities from company pension plans.

Business owners have a few more options. For example, it may make sense to hire family members who have little or no income. This does not mean you can simply add them to the payroll. They have to be earning a reasonable wage. The CRA does not take kindly to any misuse of the income-splitting rules in order to take advantage of lower marginal tax rates.

That said, in Ontario, if you are a business owner and hire your spouse for a legitimate job that they are in fact capable of and carry out, the savings can be

significant. Consider this scenario: if you have annual earnings more than $200,000, then you will be required to pay the highest marginal income tax rate of 46 per cent. Now, let’s assume you have a spouse with no earnings at all. By hiring and paying your spouse a salary, you can lower your income and potentially your marginal tax rate, and the income shared with your spouse will be taxed at a lower marginal rate still. In this example, your spouse will be taxed at 20.05 per cent for the first $39,020, 24.15 per cent for the next $3,687 and 32.98 per cent for the next $26,007, eventually reaching 47.97 per cent on income higher than $500,000. If you can pay your spouse $42,707, the resulting savings would be $10,952. On the next $42,707 of income, you could save an additional $5,855.

Since the government allows you to earn $11,000 tax-free, the benefit from income splitting is greatest for the first $11,000. In addition to dollars saved, income splitting has other benefits. It helps build up RRSP contribution room for the spouse who previously had no income. It allows families where there was previously only one income earner to claim child-care expenses up to two-thirds of the lower earner’s income.

That said, there are potential dangers to income splitting if the rules are not followed to the letter. It is absolutely

critical that if you do hire your spouse, they make a real contribution to your business and his or her salary is appropriate for that level of contribution. If this is not the case, you risk a CRA audit. If the audit concludes that you have not proven the value of your spouse as an employee to the business, the CRA will deem his or her salary not a bona fide expense for the corporation. This means that he or she will pay tax on the income but the company cannot deduct the salary. In effect, you will be hit with a double taxation.

Keep it real, stay reasonable and make the most of income splitting. / BJ

David D’Cruz is partner in Fuller Landau’s Audit and Assurance practice. To contact David directly, please call 416-645-6538 or e-mail ddcruz@fullerlandau.com.

Ask the BusIness ADVIsor:

I am planning to get financing from the bank to expand my product line. I’ve been told I need to have a report prepared by an accountant included with my financial statements. What is the bank looking for and what does it mean for my business? For the answer, visit www.bakersjournal.com and click on The Business Advisor link.

Income splitting involves redirecting income from a higher-earning family member to a lowerearning family member, maximizing tax savings.

soci A lly sAvvy

It may sound overly simplistic, but every business starts with a single idea. Typically, that idea is born out of passion, and that is certainly the case with Kelly Childs’ idea for a business. If you spend any length of time strolling the streets of downtown Burlington, Ont., you will undoubtedly encounter a quaint organic and all-natural vegan bakery, café and juice bar named Kindfood. Its bright pink and apple green colouring catches the eye, and commands attention. When you step through the doors, you step into Childs’ vegan wonderland. It’s an environment that she conceived of as a child while baking mud pies, and it has developed into one of the most successful cafés in Burlington. The café offers a wide variety of burgers, soups and sandwiches, which are all 100 per cent plant based, gluten-free, and use ingredients purchased from local growers.

Fittingly, the success of Kindfood has been organic in nature. Childs’ husband Ken previously owned a pub, and Kelly created some vegan dishes for the menu. As it turns out, the vegan dishes were so successful that Ken sold the pub, and the couple opened Kindfood. The café has since earned the titles of best café, best lunch, best overall service and best specialty food store by the Burlington Post. Many of the bestselling items at Kindfood, such as the Mile High Brownie, are baked goods, and that success led to the

creation and opening of Kelly’s Bake Shoppe in December 2012. Despite its relative infancy, the shop was voted best bakery, and also voted as having the best cupcakes by the Burlington Post. While the accolades are impressive, they pale in comparison to the true success of the business, which is, quite simply, getting people to walk through the door.

Kelly’s Bake Shoppe had its grand opening on Dec. 8, and they had a lineup wrapped outside of the building. Over 500 people walked through the door that day. So how did Ken and Kelly Childs, as well as Kelly’s daughter Erinn Weatherbie, command that kind of attention? They did it by creating an online community.

Twenty years ago, small business owners had precious few options when it came to advertising and building their business. Newspaper and television advertisements were prevalent; however, if you couldn’t afford them, you relied on word of mouth. Nowadays, the game has truly changed. With the advent of social media, small business owners are now firmly in control of their image, brand and message. Kindfood and Kelly’s Bake Shoppe are demonstrating that the effective use of social media can drive sales, and build a brand.

Kindfood has more than 7,000 “likes” on Facebook and more than 7,500 “followers” on Twitter. The business also has an e-mail

Erinn Weatherbie and Kelly Childs of Kindfood and Kelly’s Bake Shoppe, which opened in December with a lineup wrapped outside the building.

database that contains all of its customers, and staff have used these free digital advertising opportunities to build a network. Here’s the best news: customers never feel spammed with useless information because they opted in to these social programs. Kindfood and the Bake Shoppe have used social media to create a lifestyle brand with a significant following.

Successful social media campaigns are always embedded with a call to action. The customer has to engage, participate and/or interact. After all, social media can only exist in the context of a community. If no one pays attention, there’s nothing social about it. This is where the Childs family has truly struck success.

When a customer walks through the door at either Kindfood or Kelly’s Bake Shoppe, they are immediately faced with promotional opportunities. Childs credits her husband as being the marketing mastermind, and he has designed some truly effective campaigns. For instance, at the grand opening of Kelly’s Bake Shoppe, he was insistent that free cupcakes should be handed out to everyone who walked through the door. Predictably, Childs and her daughter were non-committal. After all, what small business owner wants to give away that much free product? However, the family spent weeks promoting the big day through Twitter, Facebook and Youtube. Just as Ken predicted, people came out in droves to accept a free cupcake, and because the products were so good, most people stuck around to make purchases. Childs estimates that the shop sold over 2,000 cupcakes that day. More important than the sales, the family was able to create brand recognition on the first day of business, increase their online following, and build goodwill with customers that are likely to return.

Ken has also created an incredibly successful social campaign in which customers can tweet a picture of themselves inside Kindfood or Kelly’s Bake Shoppe. It’s a mutually beneficial promotion that’s simple, and brilliant. The customer submits a picture to enter a weekly draw for a $25 gift card, and in doing so, the customer has effortlessly promoted the business to everyone they know on Facebook and Twitter.

Sales are clearly the lifeblood of every business; however, there is more than one way to build relationships with customers. While Ken has created effective promotions, his wife and Erinn have focused on fostering an online community of like-minded individuals. Kelly has an active blog, “Are YOU living your life yet?”, in which she writes about healthy eating alternatives and exercise, and also provides recipes. Erinn estimates that they spend four or five hours per day communicating with customers and connecting with businesses, but it has turned out to be a worthwhile venture. As a byproduct of creating this content, Kelly and Erinn have branded themselves as experts in the booming industry of healthy living. In fact, Kelly Childs was recently voted best health and wellness motivator in Canada for 2012 by Natural Health Care.

Owning a business is no easy task. Ken, Kelly, and Erinn face the same staffing, distribution and scheduling issues that make business ownership a 24/7 gig. However, through intelligent marketing and content creation, they have managed to create a lifestyle brand that is sustained and supported by its customers. / BJ

Tom Yawney is a writer and media strategist with CanEye Media. You can check out his blog at www.unsportsmanlike.ca.

M A king A stAte M ent

Wedding season is in full swing, which, if you’re a cake designer, means the pages of your order books are likely filled with requests for cakes to mark the occasion. More and more, brides and grooms are coming up with their own ideas, but if you’re looking for a little inspiration, Bakers Journal chatted with four wedding cake designers across Canada to see what’s on trend for the 2013 wedding season.

the BIgger the Better?

If 2011 and 2012 were the years for cupcakes, 2013 is the year for grandeur.

“I think there will always be couples who request cupcakes, but we are doing fewer cupcake orders [for weddings] this year than we have in the past,” notes Chrissie Boon, owner of Too Nice to Slice in Kitchener, Ont. Boon isn’t alone in noticing this trend. Sheila Comer, owner of Pink Ribbon Bakery in Vancouver, notes the same: “In 2012, the cupcake trend started to fizzle out a little, and so far, I have no cupcake orders for 2013.” That said, 2013 is the year of cake – and a lot of it. “There aren’t as many dummy cakes,” Comer says, adding that people are opting for lots of cake. Olivia Nguyen, of I Do Wedding Cakes in Toronto, agrees. “Last year we saw more cost-effective

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cakes,” she says. This year, Nguyen is noticing that there is a shift into a much grander cake. On the east cost, Shauna Austin, owner of City Girl Cakes in Dartmouth, N.S., says she’s still seeing orders for smaller cakes, for intimate, backyard weddings. “Three-tier is our average, most popular size, though,” she says.

ruffles, roMAnCe

AnD rICh hues

In terms of themes, colours and décor, all four designers agree that rustic details are very on trend this year. “I’ve noticed a lot of rustic buttercream finishes,” Comer says, adding that fondant finishes aren’t as popular this year as they have been previously. In Toronto, Nguyen has lots of requests for lace, ruffles and vintage-themed cakes, with ornate details. Both agree that sugar flowers are making a comeback, and the simple cakes that were popular last year have been replaced with detailed elements, like lace, ruffles and piping work. Boon notes that customization is more important to her customers this year. “This year, I find we’re having more people coming in with a specific theme . . . we’re getting the opportunity to design more custom cakes as opposed to a traditional three-tier cake with a ribbon border and fresh flowers on top.” Austin says that although simple cakes are still on trend, many couples want to personalize their cake with something outside the box. “Everything else about the wedding is traditional but the cake is totally different,” she says. “I’m doing a lot more scenery cakes.”

But, the designers say, bold colours and patterns still have their place in the crowd. Ombre cakes, with colours going from light to dark, or dark to light, are popular from coast to coast to coast, and unique patterns and colour combinations are hot. “People are definitely staying away from black and white damask prints,” says Comer, noting that a

Standard, white wedding cakes are a thing of the past. This year, brides and grooms are looking for grander cakes with unique details.

chevron pattern has been popular. Neutrals are still popular among Nguyen’s customers, but bold colours, like turquoise, hot pink and deep purple, are making their mark too, report the rest of the designers.

extrA touChes

In keeping with the customization theme, many couples –brides, in particular – are incorporating extra details in tribute to their groom. Groom’s cakes are growing in popularity, and Nguyen says she is seeing more of them recently. “They’re definitely more novelty-themed, as a small token of the groom’s interest.” But even more popular are elements added to or hidden within the cake to reflect the groom’s personality. “This year, I think the bride is letting the groom have more control over the actual wedding cake,” Comer says, referring to an order for a custom cake topper of a bride and Batman. Video game and sports-related elements are popular among Nguyen’s and Boon’s clients. These elements are most often a surprise to the groom; something that the bride arranges after the initial consultation.

No matter the location, all four of these designers agree that customization is the hottest trend this year. Whether it be with a rustic theme, bold colour palette or hidden detail, brides and grooms know what they want for their cakes, and aren’t afraid of going outside the box for something unique. / BJ

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By JANE D u MMER

ChooSiNG ChiA

The tiny seed with a big nutritional impact has evolved from a 1980s fad to a super seed

Chia seeds were introduced to me during my childhood; not as a part of my breakfast, but in the form of the Chia Pet. The seeds used for Chia Pets are actually edible, and chia seeds are experiencing a popularity surge in both the Canadian and American marketplaces. They are an ancient food that the Aztecs consumed for many years. They belong to the mint family and were originally harvested and continue to grow in Mexico, South and Central America. Today, chia seeds are grown in Australia, which has become the leading producer. Like quinoa, chia seeds are tiny. They have a mild, nutty flavour, are very versatile, and offer a gluten-free nutritional punch.

}When I was researching this column I discovered how salba fits into the chia landscape. Both chia and salba are varieties of the Salvia hispanica plant. The first difference is that most chia seeds are black and salba is white. Dr. Vladimir Vuksan, from the departments of medicine and nutritional sciences, faculty of medicine at the University of Toronto, has researched the effects of salba on human health for more than 13 years. Vuksan’s research has shown salba may decrease certain risks for cardiovascular disease in type 2 diabetics.

Chia seeds gained popularity through the Chia Pet, but they are full of nutritional value.

protein, antioxidants, vitamins and minerals. Salba’s nutrient profile is consistent and repeatable; therefore this variety is best used when studying

Chia seeds will have varying amounts of linoleic acid or ALA, fibre (both soluble and insoluble), protein, antioxidants, vitamins and minerals.

“There are many different varieties of chia. Similar to any other crop, the variety and growing conditions influence the nutritional qualities,” he explains. “The growing of salba as a single variety is highly regulated, producing a repeatable nutritional profile, whereas many varieties of chia can grow wild, resulting in inconsistent nutritional compositions.”

So what does this mean when it comes to nutritional content? Chia seeds will have varying amounts of linoleic acid or ALA (an essential omega-3 fatty acid), fibre (both soluble and insoluble),

specific effects on human health. ALA can help decrease inflammation in the body. Although the studies have mixed findings about the exact mechanism at work, ALA does offer a heart health benefit. Focusing on the soluble fibre, salba has an extremely high amount of viscous fibre activity for seed. When I think viscous fibre, both oats and barley come to mind, not salba or chia. However, the viscosity is an important factor to consider when using salba and chia as ingredients in a recipe.

Besides tasting great, chia seeds have become a recent marketing trend, making them a very popular, healthy ingredient for baked goods. Andrew Gunn, the product development manager of COBS Bread (BD Canada Ltd) in Vancouver, says the company uses chia seeds in 11 of its bread products, ranging from mini loaves and buns to a fruit loaf and log. “We use anywhere from seven to 15 per cent in the recipes,” Gunn says of

the process of using chia seeds. “We bake using whole chia seeds, which means the flavour does not change. There is a change in texture, but it is only slight. The actual functionalities of the dough do not change at all, providing you add the seeds at the correct stage of mixing. The final product retains a lot more moisture throughout the baking process, which results in a slightly increased shelf life.” The only caution Dunn has for other bakers: “You need to be careful about how the seeds absorb water.”

From the Chia Pet to the tiny, fashionable seed with a big nutritional impact, this is one more food we can add to our daily diet to improve health. Do you use chia seeds in your favourite recipes? If not, experiment by adding them to your baked goods and breads.

reCIPe lInk

Coconut and Almond Flour Muffins with Macadamia Nuts (Gluten-free) by Celebrity Chef Kate McAloon, www. thechiaco.com.au/chia_recipes/Bake%20 with%20Chia. / BJ

Jane Dummer, RD, is a leading dietitian for the Canadian food and nutrition industry. Jane offers services specializing in agri-food, functional foods and food safety. For more information, visit www.janedummer.com.

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