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Ideas Lab-grown meat has potential but it’s not yet ready for prime time, says Jo-Ann McArthur, president of Nourish Food Marketing in Toronto. “It’s going to be quite niche for a while because it doesn’t really have any proven commercial viability.” In Canada, it will likely show up first in fine dining restaurants to build cachet and interest early adopters and influencers. She adds consumers will have to be convinced the process makes meat in a more beneficial way than traditionally raised beef, for instance. It may be easier for consumers to support sustainably raised, certified humane or grass-fed beef. On the other hand, “consumers have been very accepting of vertical farming,” which McArthur describes as more of a tech play than a traditional farming play. As well, younger generations tend to be open to the marriage of science and food. “They understand that science is probably going to be a big part of feeding the world,” in the future, McArthur says. Getting the name right will be another critical step, she says. Terms like “labg rown” o r “c e l l u l ar m e a t” a re n o t consumer-friendly, while “cultivated” or “clean meat” are. Advocates of the technology should also learn from the poorly handled launch of GMOs, says CFIN’s McCauley. Communication and education will be key in avoiding consumer confusion. Somogyi notes that research suggests cultivated meat produces about onethird of the carbon-dioxide of beef production. In addition, “the speed at which the energy efficiency of cultivated meat is becoming more efficient is far greater than the efforts at making conventional meat more efficient.” He forecasts that by 2030, conventional meat production could lose 20% of its market share to cultured meat and plant-based meat replacements. The first lab-grown meats will be in the form of chicken nuggets or hamburgers that will be sold in the frozen section of grocery stores. Once the technology can mimic steak and other meats, “I would suspect it is likely to be sold next to conventional meat,” says Somogyi. McCauley says it could take 50 years before lab-grown meat results in a major shift in agriculture. “I don’t think it’s the end of farming or the end of going to a steakhouse. That behaviour is ingrained culturally in Canada.”
WHO’S ON TOP? New Deloitte report reveals the world’s biggest retailers IT’S BEEN QUITE a year (or two), but despite ongoing disruption, global retail remains resilient. The total retail revenue of the top 250 retailers around the world grew by 5.2% to US$5.1 trillion in fiscal 2020 (July 1, 2020 to June 30, 2021), according to Deloitte’s new Global Powers of Retailing 2022 report. That’s up from 4.4% growth in the previous period. However, 69 companies reported declining sales, 14 more than in the previous year. “Despite a year of economic fits and starts, retail appears to be on an upward trajectory, with innovation in digital and sustainability as exciting bright spots in the face of the disruption and uncertainty,” said Evan Sheehan, Deloitte’s global retail, wholesale and distribution leader, in the report. “Unfortunately, churn is likely to stick with us for a while, so anticipating customer needs has never been more critical. The retailers that can get consumers what they want, where they want it, and when they want it will be the ones that continue to win—no matter where they operate.” The top three global retailers all held on to their spots: Walmart is No. 1, with US$559.15 billion in retail revenue, followed by Amazon (US$213.57 billion), and Costco (US$166.76 billion). Other grocery, pharmacy and mass merchandise retailers in the top 10 are Kroger at No. 6 (US$131.62 billion), Walgreens Boots Alliance at No. 7 (US$117.7 billion), Aldi in the eighth spot (US$117.04 billion), and Target at No. 10 (US$92.4 billion). What makes the top three tops? Walmart’s 6.7% revenue growth was fuelled by growth in comparable store sales, along with a rapid rise in e-commerce sales. The report notes that U.S. e-comm sales grew by
79%, as Walmart made significant investments in this space. At No. 2, Amazon achieved the highest retail revenue growth among the top 10. Retail revenue (first-party retail sales only) soared by 34.8% as consumers did more online shopping during the COVID-19 pandemic. However, the report notes that higher demand was partially offset by fulfillment network capacity and supply chain constraints. In third place, Costco’s retail revenue was up by 9.2%, driven by an 8% increase in comparable sales, along with new warehouse openings, including nine in the United States and one in Canada. How did Canada’s “big three” grocers fare? Loblaw ranked 25th on the top 250 list, with US$38.66 billion in retail revenue, up six spots from the previous fiscal year. Empire landed at No. 50 with US$21.58 billion in retail revenue, up five spots from the previous period. Metro is No. 79, with US$13.37 billion in retail revenue, up five spots from the previous period. Also are on list: Alimentation Couche-Tard, which landed at No. 88 with US$12.11 billion in retail revenue; and Save-On-Foods, which holds the 201st spot with US$5.48 billion in retail revenue. CG —Rebecca Harris
March/April 2022 || CANADIAN GROCER
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