Canadian Grocer August 2023

Our 2023 Impact What’s next for Reaching the Award Winners plant-based foods? green consumer AUGUST 2023

THE POSITIVE IMPACT ISSUE

COMMITTED TO OUR S U S TA I N A B I L I T Y J O U R N E Y Through Reimagine 2030—our 10-year sustainable development initiative launched in 2021, we are prioritizing the environment and our social impact to make everyday life more comfortable for our employees, consumers, customers, and communities as we continue to grow and evolve. We’re reimagining the future entirely and building our path to get there through this decade of transformative growth and sustainable innovation.

PILLAR: PRODUCTS EMPOWER • FIBRE & FORESTS • PACKAGING • PRODUCT INNOVATION

VISION To be the most trusted, best loved tissue company in North America

MISSION

PILLAR: PLANET POSITIVE • CLIMATE CHANGE • WATER • WASTE

Making everyday life more comfortable

PILLAR: EMPLOYEE IMPACT • HEALTH & SAFETY • DIVERSITY & CULTURE • TRAINING & DEVELOPMENT

OUR 2030 TARGETS

To utilize

100%

third-party certified fibres

To reduce water consumption by

50%*

To reduce Scopes 1 + 2 GHG emissions by

25%*

To reduce virgin plastic packaging in branded products by

50%†

PILLAR: COMMUNITY EMBRACE • COMMUNITY INVESTMENT • EMPLOYEE VOLUNTEERING • COMMUNITY RELATIONS

M A K I N G P R O G R E S S T O WA R D S O U R TA R G E T S CER TIFIED FIBR E

GH G E MISSIO N S

WAT E R U SAG E

P L AST I C PAC KAG I N G

100%

-12%*

-39%*

-3%†

PARTNER

© 2023, ®Registered and TM Trademarks of Kruger Products Inc. | ®’SCOTTIES is a trademark of Kimberly-Clark Worldwide Inc, used under license.

Forest Stewardship Council® and FSC® Logo – Forest Stewardship Council, A.C. *Intensity-based from 2009 baseline | †Intensity-based from 2020 baseline

Contents

August 2023 || Volume 137 - Number 5

29

12

SUSTAINABILITY: SHUTTERSTOCK/ANASTASIA GUBINSKAYA, PUMPKIN SPICE: SHUTTERSTOCK/XPIXEL, PEOPLE COLUMN PORTRAIT: AARON MCKENZIE FRASER

75 Features

Departments

29 S ustainable shopping: Where do we go from here?

7 Front Desk 8 The Buzz 77 New on Shelf

Consumers are shifting focus as food prices remain high, but greener living is still a priority

PEOPLE

12 Trust your gut

The founders of Cove Drinks are making a splash with their kombuchas and sodas

35 Doing the right things

Meet the companies making a difference—the winners of Canadian Grocer’s 2023 Impact Awards

IDEAS

17 Label battle How new

labelling rules could impact the natural health products industry

19 The challenge of green claims Deloitte study finds

63 Grand standings

there’s work to do to win over skeptical consumers

A look at the winners of the 30th Canadian Grand Prix New Product Awards

21 Setting the Scene+

Our 2023 Impact What’s next for Reaching the Award Winners plant-based foods? green consumer AUGUST 2023

On the cover

Empire’s Shawn Bloom on how the grocery company’s big loyalty play is paying off

23 A retail reinvention

Our Positive Impact Issue Illustration by ©Carl Wiens, i2iart.com THE POSITIVE IMPACT ISSUE

Calgary Co-op ups its game with acquisitions and a revamped membership model

COLUMN

26 The power of on-package labels

Ipsos Canada’s Kathy Perrotta on how new regulations will lead to more informed choices AISLES

71 Room to grow

Though interest in some categories wanes, innovation powers the plant-based food movement

74 Sweet emotions

Consumers are turning to chocolate to boost their mood

75 Pumpkin spice: Four things to know

We explore the rising popularity of this fall-inspired flavour EXPRESS LANE

78 Equal opportunities

KDPM Consulting Group CEO Karlyn Percil-Mercieca on how to drive organizational change in DE&I August 2023 || CANADIAN GROCER 5

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EDITORIAL ADVISORY BOARD BONNIE BIROLLO, SOBEYS; RAY HEPWORTH, METRO; KEN KEELOR, CALGARY CO-OP; BRENDA KIRK, PATTISON FOOD GROUP; CHRISTY MCMULLEN, SUMMERHILL MARKET; GIANCARLO TRIMARCHI, PRESIDENT, VINCE’S MARKET

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SHUTTERSTOCK/DOERS

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Contents Copyright © 2023 by EnsembleIQ, may not be reprinted without permission. Canadian Grocer receives unsolicited materials (including letters to the editor, press releases, pro­motional items and images) from time to time. Canadian Grocer, its affiliates and assignees may use, reproduce, publish, republish, distribute, store and archive such submissions in whole or in part in any form or medium whatsoever, without compensation of any sort. ISSN# 0008-3704 PM 42940023 Canadian Grocer is Published by Stagnito Partners Canada Inc., 20 Eglinton Avenue West, Ste. 1800, Toronto, Ontario, M4R 1K8.

Printed in Canada

MAKING A POSITIVE IMPACT As a topic of conversation, weather has moved well beyond idle, watercooler chit-chat. It’s not hard to understand why. Weather, or rather extreme weather events, have dominated news cycles and social media feeds in recent months.

From raging wildfires covering large swathes of North America in smoke to devasting floods and temperatures so hot in July (the world’s hottest month ever recorded, in fact) that UN Secretary-General António Guterres declared in a news briefing late last month that we are moving from an era of global warming to a more horrifying era of “global boiling.”

“Humanity is in the hot seat,” he said, later adding that our predicament “must not inspire despair, but action.”

In this issue, we are saluting those doing just that—the companies across the grocery industry that, through actions big and small, are trying to make our world a better place. The winners of our 2023 IMPACT AWARDS are stepping up to effect positive change in myriad ways— from zero waste and plastic initiatives to responsible sourcing and operational changes like refrigerant conversions that are helping reduce greenhouse gas emissions. But it’s not only about helping the planet, this year’s winning companies are also launching programs to support employees, they’re creating more inclusive workplaces and they’re giving back to the communities they serve. (Read about this year’s Impact Award winners starting on page 35.)

In “Sustainable Shopping: Where Do We Go from Here?” (page 29),we take a closer look at shoppers and how their expectations are evolving when it comes

to sustainability. It turns out that despite economic pressures, sustainable living is still a priority for shoppers but, to win them over, retailers need to be authentic and clear about what they’re doing to be greener. There is no appetite for greenwashing; consumers want real action.

Also in this issue, we dig into plantbased foods to answer the question: what’s next? (page 71) Correspondent Matt Semansky learns that while the movement is currently navigating some growing pains, there’s still plenty of innovation and room for growth in plantbased foods and beverages.

See you next time! CG

Shellee Fitzgerald Editor-in-Chief

sfitzgerald@ensembleiq.com

Keep up to date on the latest news by signing up for our daily e-newsletter. It’s free and we’ll deliver it to your inbox each morning.

Visit canadiangrocer.com to subscribe August 2023 || CANADIAN GROCER 7

The Buzz

The latest news in the grocery biz

Loblaw has plans to open a twofloor CityMarket in Vancouver, and Longo’s has opened a 45,000 sq.-ft.store in Brooklin, Ont.

OPENINGS

Metro’s discount banner FOOD BASICS opened a new store in Oakville, Ont.—its 144th location overall and its third in the lake-side town, which is 40-kilometres southwest of Toronto. The 32,000-sq.-ft.-space, within a newly constructed retail development at the corner of Rebecca Street and Burloak Drive, has all the hallmarks of a Food Basics: locally sourced products, fresh meat and produce, self-checkout lanes and a robust private-label offering.

LONGO’S opened a 45,000-sq.-ft. store in Brooklin— the Ontario-based grocer’s 37th location in the province. The store offers an expanded selection of HMR options, including Roman-style pizzas, chicken and turkey meal deals as well as hot sandwiches; a sushi and poke bar, hand-stretched mozzarella, an

AWARDS/RECOGNITION

DCI, in association with the Canadian Independent Grocery Buyers Alliance (CIGBA), handed out the 2023 Star Awards at its annual business summit on June 6. In all, six awards were presented during a gala dinner, which took place at the Sheraton Toronto Airport and Conference Centre. This year’s winners are: CJR Wholesale Grocers (Partner of the Year), Summerhill Market (Retailer of the Year), Rabba Fine Foods (Social Responsibility Award), Natura Foods (Innovation Award) and Renato Guerini of Sobeys Wholesale (Leader of the Year). And the Lifetime Achievement Award was presented posthumously to Fiesta Farms founder Joe Virgona, who passed away in February at age 80.

8 CANADIAN GROCER || August 2023

antipasto bar, a market-style bakery and deli, and a fresh-squeezed orange juice bar.

A l b e r t a - b a s e d g r o c e r CO M M U N I T Y N AT U R A L FOODS opened its first store outside Calgary. The 10,000-sq.-ft. location—the company’s fourth store overall—is situated in the Edmonton community of Old Strathcona. The store features a selection of organic produce, meat and dairy; a supplement and natural body care section; and a fresh juice, elixir, smoothie and grab n’ go bar.

Loblaw is set to open a two-floor CITYMARKET in Vancouver in early 2026. The 22,000-sq.-ft. store will be located at 1477 W Broadway, and joins additional CityMarket locations on Arbutus Street in Vancouver, Park Royal North in West Vancouver and Lonsdale Avenue in North Vancouver.

Hot off the heels of openings in London, Ajax, Scarborough and Toronto, Ontario-based health and wellness retailer HEALTHY PLANET cut the ribbon on its second Richmond Hill location, bringing its store count to 34. Spanning 8,000 square feet, the new location offers a modern layout and a range of products including fresh organic produce, natural grocery items, dietary supplements, vitamins, sports nutrition, natural beauty products, eco-friendly household products and more.

News to share? Tell us about your openings, comings and goings, etc. by dropping a line to sfitzgerald@ensembleiq.com

CANADIAN GROCER, MCM ARCHITECTS, LONGO’S, DCI

Metro’s discount banner Food Basics brings its store count to 144 with the recent opening of a 32,000-sq.-ft. space in Oakville, Ont.

PEOPLE

Julia Knox

Mohit Grover

Sarah Joyce

Sandra Sanderson

Vivek Sood

Simon Laroche

David Blackmore

Empire Company Limited has made several changes to its executive team as part of the company’s new three-year plan called Project Altitude. Julia Knox has been promoted to the newly created role of chief technology and analytics officer; Mohit Grover (formerly SVP of innovation, sustainability and strategy) has been named SVP of e-commerce, moving Sarah Joyce into the role of SVP of discount; Mike Venton steps into the SVP of execution strategy role; and Sandra Sanderson, formerly SVP of marketing, has been promoted to chief marketing officer. And, after 24 years with Empire, Vivek Sood, EVP of related businesses (pharmacy, fuel and convenience, liquor, wholesale and Big 8) plans to retire in the next fiscal year.

The Kraft Heinz Company has named three new leaders to its North America leadership team. Simon Laroche, who most recently was president of Australia, New Zealand, South Korea and Japan at Kraft Heinz, has been promoted to SVP and president of Canada and the North America coffee business.

Former Unilever executive Helen Davis has joined the company as SVP and head of North America operations, while Rebecca Dunphey, who previously worked for The Clorox Company, has joined Kraft Heinz as SVP and president of fresh, beverages and desserts.

Procter & Gamble Canada’s SVP of sales, David Blackmore, announced he plans to retire on Oct. 1. Since joining the CPG company 23 years ago, Blackmore has led various sales organizations across Canada, Europe and the United States.

He returned to Canada in 2020 to lead the P&G Canada sales organization. Longtime executive Michael Batke, who most recently led the Loblaw Enterprise team at P&G Canada, will succeed Blackmore.

Michael Batke

Paul Werynski

David Wiens

Paul Werynski has been promoted from vice-president to general manager of Carlton Cards. Werynski, who has been with the company for seven years, will be responsible for all daily operations and will continue to report to company president Rod Sturtridge.

David Wiens has been tapped to succeed Pierre Lampron as president of Dairy Farmers of Canada (DFC). Formerly the VP of the board, Wiens farms in Grunthal, Man., where he milks 230 cows and tends 1,600 acres of cropland with his brother, Charles. He also chairs the committee that is reviewing and updating the Code of Practice for the Care and Handling of Dairy Cattle.

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THIS LOGO STANDS FOR This logo represents a commitment to high standards in Canadian milk production. It stands for the sustainable practices that’ll help us reach Net Zero greenhouse gas emissions by 2050. It’s indicative of the way we care for our animals each and every day, and the dedication of Canadian dairy farmers to their communities.

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People

TRUST YOUR GUT! How brothers John and Ryan MacLellan of Cove Drinks went from brewing kombucha in their mother’s kitchen to selling in major grocers coast-to-coast

By Andrea Yu Photography by Aaron McKenzie Fraser

Who you need to know

IT

was in 2016 that Ryan MacLellan first started brewing kombucha. “I was curious about fermented foods,” he says. “A friend of mine had a kombucha culture [SCOBY] and gave me some instructions.”

Ryan, who was pursuing a teaching degree at the time, brewed the kombucha in his mom’s Malignant Cove, N.S. home.

A few weeks later, his brother John tried Ryan’s kombucha and was hooked.

At the time, John was working at Ernst & Young and was looking for a new venture. “I was always tempted to do something entrepreneurial,” John explains.

He teamed up with his brother to turn his home-brewed kombucha into a fullfledged business. By November 2016, John registered them to participate in the Halifax Seaport Farmers’ Market, while Ryan got to work refining recipes and branding their products. “I would be designing labels in between classes and selling kombucha out of my car to friends and fellow students,” Ryan recalls.

Their kombucha, which they named Cove after their mother’s home community, was an instant hit at the market. “We brought 20 bottles on our first day and sold out before lunch,” John recalls. “The next week, we sold out in two hours.”

Shortly after their debut, Ryan and John got requests from restaurant owners to serve their kombucha on tap. That prompted the duo to move production to a certified kitchen. Things escalated from there. By early 2017, Sobeys had reached out about stocking their kombucha as part of a local merchandising program.

“We always had the desire to go bigger than restaurants,” John recalls. “It was an opportunity to take a real run at it and do it full time.” After signing on to supply 125 Sobeys stores in Atlantic Canada with four flavours of their kombucha, Ryan quit teachers’ college. “It was a huge risk,” he recalls. “But I went with my gut and felt really good about the decision.”

Supplying Sobeys meant John and Ryan needed an even larger production facility. So, they partnered with a producer two hours away, in Middleton, N.S., and scaled their recipes. That process wasn’t without its challenges.

“We went from 20-litre batches to 10,000-litre batches,” Ryan explains.

“We used tea powder extract at first, but quickly learned it produced really bad kombucha.” Instead, they found a

company to build a 10,000-litre kettle.

“We dunk these massive tea bags in so, essentially, it’s the same as we did in the kitchen, just a bigger version,” says Ryan.

By August 2018, after launching at Sobeys, John took a leap and quit his job at Ernst & Young. Shortly after that, Cove was invited by Costco to stock their kombucha in six Atlantic Canada stores. “To see our products as part of a big display was a pivotal moment to realize: ‘We can do this’,” John says.

The brothers soon settled into a rhythm. John took care of sales, accounting, operations and logistics, while Ryan handled product development, marketing, packaging and branding. “It’s easy working with my brother because we have complementary skills,” Ryan explains. “We don’t cross over a lot, but we can always ask opinions and collaborate on our vision.”

Sustainability has always been part of the company’s vision. Back in their farmers market days, the brothers donated a portion of proceeds to environmental organizations including the David Suzuki Foundation. As their operation grew, Cove partnered with 1% For The Planet, an environmental philanthropic organization. Their switch from bottles to cans, in 2020, was also a sustainability-motivated decision suggested by a major grocery chain that wanted to stock them.

“Loblaws came to us saying cans are more environmentally friendly because they’re lighter to ship,” John explains. “That got us spinning our wheels.”

Striking that Loblaws deal saw Cove move further west to Ontario in early 2021. The following year, the MacLellans expanded into sodas. “We were hearing from people that wanted zero sugar but still something that’s gut healthy,” says John. So, Ryan developed a line of probiotic sodas, which contribute to a healthy gut flora, just like their kombucha line.

The sodas launched in October 2022.

These days, you can find Cove’s six kombucha flavours and three gut-healthy sodas at 1,500 points of distribution across the country—at both major retailers and independent grocery stores. By the end of 2023, they’ll launch three more soda flavours. U.S. retailers have also been calling, hinting at an international expansion, which excites the brothers.

“We started the company not knowing where things were going to take us,” Ryan says. “It’s been an amazing six years.” CG

30 seconds with …

RYAN AND JOHN What’s your favourite part of the job?

JOHN: I like being part of the natural products community and working on something that brings health to your life.

What was your worst day in the business?

JOHN: We were getting ready to go to the farmers market after a snowstorm. There were eight-foot snow banks and we were throwing product over our shoulders to get it to the market.

RYAN: I remember not always liking those moments, but I also remember it being a thrill—being on that new path and not knowing what was going to happen next.

What was your best day in the business?

RYAN: Getting into our first production facility and seeing our product be made by machines and being filled by these amazing state-of-the-art bottling lines.

What are your favourite products from your lineup?

JOHN: The strawberry lemonade kombucha, but the orange soda is a close second.

RYAN: The root beer we haven’t released yet. It’s so good.

How do you spend your time off?

RYAN: I like to play tennis and pickleball. I like playing music.

I grew up playing guitar and singing. My first degree was in physics and music, so I learned how to play jazz bass in school.

JOHN: I spend time with my two-year-old son and 10-weekold daughter. We go on a lot of walks together.

August 2023 || CANADIAN GROCER 13

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RETAILERS || SUPPLIERS || SHOPPERS || INSIGHTS

GOVERNMENT REGULATIONS

GETTY IMAGES/GITUSIK

LABEL BATTLE New labelling requirements for natural health products are a tough pill to swallow for the sector. In July 2022, Health Canada published amendments to the Natural Health Products (NHP) Regulations that are set to take effect in 2025.

The intent is to make information on labels clear and consistent, and to make it easy for consumers and health professionals to locate, read and compare important safety information.

According to Health Canada, “Poor communication of key information on health product labels can lead to incorrect purchases and preventable harms.”

But opponents argue it’s a bunch of red tape that will lead to increased costs and fewer products on Canadian shelves. The Canadian Health Food Association (CHFA) argues that Health Canada didn’t consider feedback on the labelling changes or back up the changes with science.

“If you look at the table requirements, prescription updates, and font sizes and designs, there’s no validation on why that’s needed or how that’s going to help increase Canadians’ ability

to access those products safely,” says CHFA president and CEO Aaron Skelton. “If anything, it has required industry to invest a significant amount of dollars in revamping labelling and design, and buying new equipment that can install this new labelling.”

The impacts will be wide-ranging, according to CHFA, which notes that natural health products include vitamins, minerals, probiotics, herbals, traditional and homeopathic medicines, and certain topical products such as toothpaste and sunscreen.

To find out how the changes will impact industry, CHFA conducted an economic impact study with Deloitte. In a survey of businesses throughout the supply chain, 76% of brands said they would need to pull product from the market because of the new regulations, one in five companies said they were seriously considering leaving the Canadian market, and 83% indicated they had a low capacity to absorb the costs of the legislative changes.

“Overall, the theme of the study was a thriving industry [$13.2 billion and growing] that is being throttled by overregulation by the government,” says Skelton.—Rebecca Harris

August 2023 || CANADIAN GROCER 17

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THE CHALLENGE OF GREEN CLAIMS

SHUTTERSTOCK/HOLLYHARRY

New survey finds there’s work to do to win over skeptical consumers By Chris Daniels DESPITE ALL THE talk, brands have largely failed to earn the trust of consumers on sustainability claims made about their products.

That is a key finding from a new report from Deloitte Canada, which surveyed both shoppers and consumer-based business leaders nationwide.

In its Creating Value for Sustainable Products report, Deloitte found the majority of Canadians (57%) don’t believe most green or sustainable claims that brands make. Of this group, the survey found nearly half (49%) are skeptical about the authenticity of the claims, while about one-in-four (23%) are frustrated by how hard it is to separate authentic claims from those made to sell products.

Authentic claims are particularly important in the grocery sector. Deloitte’s research found nearly two-thirds (65%) of Canadians said sustainability claims were a factor in buying grocery items, followed by personal care items (56%)—also a key category for most grocers—apparel (53%) and home care items (51%).

Yet, Deloitte’s report found businesses do not seem to grasp the extent of the problem. In fact, more than 70% of business leaders think the public has a “significant” or “moderate” level of trust in the authenticity of green claims.

A good number of leaders also seem unconcerned about how their sustainable products might be perceived in the marketplace, with only 41% feeling at risk of greenwashing accusations if they pursue sustainability goals.

“That was one of the report’s big, big surprises for us,” says Joe Solly, partner, risk advisory and national consumer leader for sustainability and climate change at Deloitte Canada. “We didn’t expect to see that much of a disconnect between the trust business leaders think they have with consumers on their sustainability claims and the trust consumers actually have in the claims.”

Solly says a problem lies with manufacturers bringing sustainable claims to a product without making sustainability a strategic part of their entire value chain.

“They’re slapping a sustainability claim on a product that may be true in isolation, but perhaps isn’t robust or super meaningful because they know there hasn’t been much regulatory action on sustainability and won’t be taken to task,” says Solly.

However, he warns that “these companies are operating under a false sense of security. Women and youth have a higher interest in sustainability, and expectations will continue to rise for these claims to be well-supported. Next year, I think

we’re going to be hearing a lot more on greenwashing and going to see more lawsuits and regulatory action.”

More rigorous regulation has already been ramping up. Proposed earlier this year, the European Commission’s Green Claims Directive would ban seemingly climate-friendly phrases such as “carbon neutral,” “net zero” and “eco-friendly” in advertising, social media or packaging— including food and beverage—across the European Union unless substantiated and verified. Penalties for non-compliance could include confiscation of the offending product as well as seizure of any revenues derived from its sale.

Solly says opportunity continues to be ripe for brands and grocers to make thoughtful investments in sustainability.

He notes, for instance, 62% of Canadians show a willingness to pay a price premium of 20% or more for products, wanting brands to make their products sustainable by default and/or having clearer sustainability information.

“There is a lot of money to be made on growing a business with sustainable products, not only because shoppers will pay more, but because of the trust the brand will earn from consumers,” explains Solly. “Those brands are going to differentiate themselves and win in the marketplace.”

The Deloitte report was generated from a survey conducted in April 2023 of 311 Canadian consumer business leaders and an online survey of 1,008 respondents, which was a nationally representative sample of Canadian consumers aged 18 and above.

August 2023 || CANADIAN GROCER 19

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SETTING THE SCENE+

With abundant data and insights, Empire Company’s big loyalty play is paying off By Chris Daniels A LITTLE MORE than a year ago, Empire Company Limited grabbed headlines when it became part owner in the S cene+ loyalty pro gram alongside founders Scotiabank and Cineplex.

Today, the program has rolled out across most of the grocery company’s banners including Sobeys, Foodland, FreshCo and Safeway, as well as its e-commerce platform Voilà.

Shawn Bloom (pictured), who spent nine years with Scene before joining Empire as vice-president of loyalty in 2018, chatted with Canadian Grocer about personalization and what the company is learning about its shoppers. The interview has been edited for length and clarity.

Did the Scene+ launch meet objectives?

We’re well ahead of expectations on loyalty sales penetration, active members and new member sign-ups. The program has grown to more than 13 million members [from 10 million] since Empire joined.

What do you credit for the successful launch? It was always going to be how

EMPIRE COMPANY LIMITED

the Scene+ program came to life in our stores. You can get the technology and the value proposition right, but if the stores aren’t behind the program and can’t get customers engaged, the program will fail. So, our most important challenge was converting our 131,000 employees across Canada into Scene+ ambassadors.

How did you meet that challenge? We

invested a tremendous amount of time building employee training and engagement plans. The training guided them through interactive modules about the program and tested their knowledge. In

total, we created more than 70 learning assets for our front-line operators and drove more than 2.5 million minutes of training, with record-setting completion rates across the organization.

on their grocery bill … We have become one of the top redemption choices in the Scene+ program. There are 100 different gift cards for redemption and we’re also the No. 1 gift card.

What is one of the best ways you engaged staff in the program? One of our

than about changing programs; it was centred on our ability to create deeper customer connections, and that required a complete digital, data and loyalty transformation. We spent a significant amount of time building personalization capabilities from the ground up with new technology, people processes, consolidating our data to provide a more unified view of the customer and improving how we connect with customers through digital channels. The capabilities that we’ve invested in have started to pay off in the response rates and incremental sales we’re driving from personalized communications.

KPIs [key performance indicators] is the percentage of sales on Scene+, and so we created friendly competition between stores to see who could drive the most swipes. Individuals would score team points based on their performance and stores could win celebrations like staff pizza parties. It got employees excited to talk about the program with customers.

Empire previously partnered with Air Miles. Was there concern about converting those members to Scene+? Our biggest fear in this process was what the transition would mean for Air Miles customers. Would they continue to be loyal to our formats? Or would they follow Air Miles to another store? But, we’ve had a lot of success in converting those existing customers into Scene+ members and that was one of our biggest priorities.

Is the program helping mitigate the impact of inflation for customers? Cana-

dians are very savvy in stretching their dollars and we did a great job, particularly at launch, of demonstrating the value of shopping at our stores with strong Scene+ point promotions that ran for many weeks in each region. We also introduced member pricing, which gives customers the ability to earn savings on everyday products by swiping their cards.

Lots of customers have been redeeming lots of points over the last year to save

How is Scene+ helping drive personalized outreach? Our loyalty strategy was more

What else are you learning from customer data? It’s the first time our discount banner FreshCo has had a loyalty program and we’ve gained a better understanding of a more value-oriented shopper. This insight has allowed us to tailor our merchandising and drive more personalized marketing to that group. It also allows us to see a broader picture of that customer spend across banners. In Ontario, for instance, where we have Sobeys, Foodland, FreshCo and Voilà, Scene+ allows us to better understand the visits that occur between formats, like where customers buy fresh versus centre-store products.

That’s a big advantage! It’s a powerful decision-making tool for merchants and store operators. That’s what loyalty is— an investment in data and insights to create deeper relationships with customers.

August 2023 || CANADIAN GROCER 21

Ideas Calgary Co-op is transforming itself via acquisitions, products and more

Calgary Co-op CEO Ken Keelor

A retail reinvention

PORTRAIT OF KEN KEELOR BY COLIN WAY, EXTERIORS AND PRODUCT BY CALGARY CO-OP

Through acquisitions, expanded product lines and an overhaul of its membership model, Calgary Co-op is upping its game and taking aim at younger shoppers By Shellee Fitzgerald FOR A 67-YEAR-OLD RETAILER, Calgary Co-op isn’t easing into its senior years.

In fact, as the company’s CEO Ken Keelor tells it, Calgary Co-op is undergoing a period of “major transformation” that he says will help future-proof the business.

“We’ve been working for a few years now and transforming our co-operative,” says Keelor, who has led Calgary Co-op, one of North America’s largest co-operatives, since 2014. To mark this new era, the company started rebranding Co-op to Calgary Co-op last fall and introduced a new visual identity across all its lines of business—which include food, pharmacy, gas stations, liquor, cannabis and home health care stores—that the company describes as modern and meaningful and that will help it continue to build a strong presence in its communities.

Here’s what else Calgary Co-op has been up to:

Acquisitions & openings

Earlier this year, Calgary Co-op acquired Willow Park Wines & Spirits, which Keelor describes as an iconic Calgary brand that’s been operating in the city for nearly 30 years. The deal included two Calgary stores, one in Regina as well as its B2B operations and distribution centres. A new Willow Park location is slated to open in Saskatoon in November, further helping the co-op grow outside of its home base of Alberta. Prior to Willow Park, Calgary Co-op set its sights on Community Natural Foods, another

well- established Calgary business, acquiring its three stores in the city in late 2019. In June, Community Natural Foods moved beyond Calgary, debuting a new location in Edmonton. And in the last year, Calgary Co-op also added to its network with the acquisition of two Beacon pharmacies in Calgary as well as The Organic Box, an Alberta-based e-commerce delivery company.

Revamping the membership model

One of the organization’s biggest recent efforts has been the revamping of its membership model. Calgary Co-op is owned by its 400,000-plus members who earn equity in the co-operative and the opportunity to earn cash back on purchases. While the current equity model is complicated and can take time for members to earn cash, Keelor says the new enhanced model, which will be introduced at the end of September, will be simpler, more transparent and more immediate. “In the new model, cash will come faster,” he says. In the same timeframe, Calgary Co-op is launching a member app—currently being tested on its nearly 4,000 employees—where members will be able to watch their shares and cash accumulate. The app will also offer “spin and win” games with prizes, shopping lists, personalized offers as well as a bonus cash program. “When you shop you’ll earn store credits in the form of what we call ‘bonus cash’ and they’ll go right into our app.” The app will also store

receipts, removing the need for paper versions. “It’s going to be more competitive,” says Keelor. “Our competitors offer points. This is cash. A dollar is a dollar, we can’t change the value and we think it’ll appeal to younger customers.”

A new vision for food

In 2020, Calgary Co-op took the plunge and added two new private brands to its assortment. Called Cal & Gary’s and Founders & Farmers, the brands feature fun graphics, cheeky taglines and a sharp focus on local producers. “Our two new labels have been curated for the tastes and preferences of the city,” said Keelor at the time of the launch. The brands have been well received and today about 1,000 private-label products occupy shelf space at Calgary Co-op food stores. “Cal & Gary’s has been very well received. It has high awareness in Calgary and the surrounding areas,” says Keelor. In addition to its private brands, the retailer now offers more than 2,500 local items.

While Calgary Co-op appeals to a wide range of people, Keelor says the company is focused on what he calls “taste makers, mindful movers and ready-tospenders.” He adds that the focus will be on trying to “tease out” Calgary Co-op’s offering, including products, services, presentation, décor and more, in a way that appeals to these three target groups.

“We’re building a new model,” says Keelor, “and we’re calling it the ‘food store of the future.’”

August 2023 || CANADIAN GROCER 23

RECOGNIZE RISING TALENT IN THE GROCERY BIZ!

In association with The Golden Pencil Award, Canadian Grocer is accepting nominations for the 2023 Generation Next Awards, which recognize emerging leaders (under age 40) in the grocery and consumer packaged goods industries

NOW ACCEPTING NOMINATIONS Deadline to enter: September 15, 2023 For full details, visit: cggennext.ca Presented by

Exclusive GenNext Partner

Ideas

Catching up with Generation Next Since 2011, Canadian Grocer’s Generation Next Awards have celebrated emerging leaders (under 40) who are shaping Canada’s grocery industry. We checked in with a few past winners to find out how their careers have been shaping up By Kristin Laird

Éric Côté 2015 WINNER

Jacky Ho 2017 WINNER

Job then: Vice-president of customer experience for Metro in Quebec Job now: Vicepresident, general manager of Groupe Première Moisson

Job then: Store manager, Price Smart Foods, Overwaitea Food Group Job now: Regional director, SaveOn-Foods & PriceSmart Foods

What has changed in your career since winning the Generation Next Award?

What has changed in your career since winning the Generation Next Award?

When I won, I was just promoted to vice-president of customer experience for the Metro banner in Quebec. Subsequently, I transitioned to the role of vice-president of central procurement grocery for Metro. It allowed me to work for both the Quebec and Ontario divisions and collaborate with all banners of Metro, including Jean Coutu after the acquisition in 2018. Finally, since March 2020, I have had the privilege of leading the Première Moisson group, an artisanal bakery in Quebec.

Describe what you do. I’m responsible for

the overall management of the company.

We have two divisions: retail and bakery plants. In the retail division, I oversee 23 stores in Quebec, where our breads and viennoiseries are baked fresh daily. I have an exceptional team. Additionally, I oversee two plants in the Greater Montreal Area. One plant, in Vaudreuil-Dorion, specializes in our artisanal bread. The other plant in Baie-d’Urfé is where we craft our baguettes, ciabattas and other varieties. We also have two pastry lines creating our croissants. All these products are distributed to grocery stores in Canada and the United States.

Since winning the Generation Next Award, Save-On-Foods has given me an opportunity to become a regional director. I am very thankful for this recognition and experience as it has allowed me to continue to grow my career and continue my learning. I currently support the PriceSmart Foods banner and some SaveOn-Foods stores in British Columbia.

What’s your favourite thing about working in this industry? There’s no one favourite

thing, rather a group of things that make this industry fun and exciting. I love being able to interact with so many people in different areas of our business who are passionate about what they do. There are so many career paths in the grocery industry that allow you to explore and learn. This creates a great opportunity to find something you love and excel at as you journey through your career. The people in this industry have big hearts and I loved seeing how our company and supplier partners came together to support people in need during recent floods in B.C., to get food to areas that were impacted. And, of course, the food! Being able to see, taste and experience different foods is amazing.

Sarah Au 2021 WINNER Job then: Director of marketing Job now: Senior director of marketing

What has changed in your career since winning the Generation Next Award?

My portfolio now includes Muskoka Brewery, Muskoka Spirits, Vancouver Island Brewing and Rally Beer Co. With the change in consumption habits over the past few years, we are ensuring we have a portfolio to meet those needs.

This includes expanding into spirits with canned cocktails for a more premium experience, non-alcoholic beers and tea infusions for those looking to break up their alcohol consumption, and functional beverages crafted for an active lifestyle.

What career advice would you give your younger self?

1. Focus less on titles, career “timelines” and what is a “cool brand” to work on, and focus more on how each role can build out your skillset to make you a better marketer and leader.

2. Find the value in every piece of feedback or criticism—it is intended to make you better! Being defensive is counterproductive.

3. Don’t be afraid to reach out for mentorship or advice. I have been pleasantly surprised at how generous C-suite and senior-level leaders were with their time and expertise. CG

GENERATION NEXT 2023 – CALL FOR NOMINATIONS! Do you know a rising star in the grocery industry?

Nominate by Sept. 15 at cggennext.ca August 2023 || CANADIAN GROCER 25

EATING IN CANADA || Kathy Perrotta in April 2023), are the following: (1) Recyclable packaging (2) farmed responsibly (3) vegan/vegetarian (4) made with plant-based ingredients (5) good source of protein (6) dairy free (7) low sugar.

The power of on-package labels New regulations will help customers make more informed food and beverage purchases

When consulting a product’s nutrition facts table, Canadians remain most concerned about calories, sugar, sodium and the list of ingredients

As an increasing number of consumers desire healthier products, they are also seeking product information that aligns with their beliefs and priorities. Key to information gathering is enhanced product labelling, which has reached nearly every product available on Canadian grocery shelves.

Today, on-pack information extends beyond the nutrition facts table that was introduced in 2007. A growing number of symbols and certifications touting organic, gluten free, vegetarian and non-GMO attributes—with a host of other sourcing, production benefits and product descriptors—are popping up on Canadian food and beverage products.

The grocery industry has good reason to expand its labelling information. The Ipsos FIVE Consumption Tracking Study reveals 64% of consumers regularly consult either the nutrition facts table details, on-package flashes or ingredient labels, with 60% of shoppers reporting that these details influence their buying decisions.

Interestingly, Canadians buying beverages are more likely to consult on-package information than those purchasing food. Additionally, buyers of private-label brands are somewhat more likely to consult labels than those buying national brands, revealing the ongoing importance of having the right labels in the right place at the right time.

TOP LABELS When consulting a product’s nutrition facts table, Canadians remain most concerned about calories, sugar, sodium and the list of ingredients. The top label flashes of importance are benefits around country of origin, expiry/freshness dates, product naturalness and the presence of sugar.

The fastest-growing label flashes, according to the Ipsos FIVE Consumption Tracking Study (conducted

26 CANADIAN GROCER || August 2023

RISING LABEL SKEPTICISM While Canadians demand that labels provide insight into nearly every aspect of a product, overall reading rates have softened over the past five years, with 10% fewer individuals reporting they regularly consult on-pack labels.

Top factors impacting declining reading rates include the absence of specific information most pertinent to unique dietary beliefs and restrictions; confidence that consumers already know product features and benefits; and, most importantly, a rising skepticism among consumers that labels are misleading, inauthentic or a marketing ploy.

NEW FRONT-OF-PACKAGE LABEL INFORMATION To help Canadians make informed choices about what they buy and eat, Health Canada recently announced new nutrition labelling regulations for many packaged foods and beverages. These regulations will require packaged products that are high in saturated fat, sugars and/or sodium, display a front-of-pack symbol in accordance with government standards. (Manufacturers have until Jan. 1, 2026 to comply.)

The Ipsos FIVE Study has been tracking the impact these new labels will have on future buying decisions since the proposal was introduced in early 2020, and approximately two-thirds of Canadians say this detail will influence their buying choices.

This finding underscores the importance of understanding whether a product reformulation or a labelling strategy should be considered prior to the 2026 deadline.

LABELS REMAIN A POWERFUL COMMUNICATION TOOL As Canada’s population continues to age, the correlation between what we eat and drink and our overall health will no doubt continue to increase. While there may be skepticism, label scrutinization seems a logical place to start for individuals to take control of their overall well-being.

To distinguish their brands, it’s important that retailers and manufacturers feature clear, straightforward product information to educate consumers on the values of their products. In addition to on-pack presentation, consider a QR code that communicates relevant product information, on-shelf initiatives and social media channels. CG

Kathy Perrotta is a VP of market strategy and understanding with Ipsos Canada and leads the FIVE ser­vice, a daily diary tracking of what individuals ate and drank yesterday across all categ­ories/brands, occasions and venues.

Kathy.perrotta@ipsos.com

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Sustainability

sustainable shopping: where do we go from here?

SHUTTERSTOCK/ANASTASIA GUBINSKAYA

Consumers are shifting focus as food prices remain high, but greener living is still a priority By Rosalind Stefanac WITH WILDFIRES RAGING ACROSS THE COUNTRY, and ongoing natural disasters happening around the world, it’s no surprise that our Earth’s sustainability is weighing heavy on consumers’ minds. According to Kantar’s 2022 Sustainable Sector Index, consumers across the globe feel businesses should be focused on reducing water and air pollution, along with improving conditions for workers, as their top sustainability issues to address.

The report notes that more than half (54%) of consumers pay attention to environmental and societal issues in the news and 47% are prepared to invest in companies that try to do good. In the Americas, 84% take careful note or sometimes consider the causes brands support when making purchase decisions.

Yet, inflation is an ongoing reality. As food prices remain high and shoppers are more conscious about

what they’re putting in their grocery baskets, sustainable shopping habits are being impacted. Natalie Babbage, a global director in Kantar’s Worldpanel Division and the company’s leading expert on sustainability in fast-moving consumer goods (FMCG), says after three years of steady growth among “eco actives” (environmentally conscious consumers taking action), the decline in activity last year was, in part, due to inflation. “When they were shopping, they were much more concerned about price changes and worried about what they could afford, rather than spending time looking at the labels and checking if something is fair trade,” she says.

Another contributing factor was the premium price placed on sustainable products across the board, says Babbage. “If you look at glass packaging in soft drinks, it’s only the premium brands that are

August 2023 || CANADIAN GROCER 29

Sustainability using them and that’s just not affordable when you’re starting to make concessions in spending.” She also points to the inconvenience of some sustainable practices such as having to go to another location to refill containers or find greener options.

But in spite of inflation woes, early data for 2023 is showing a rebound of eco activism as people become accustomed to higher food prices, she adds.

In fact, as shoppers realize the climate issues surrounding them aren’t going away, Babbage says they will be looking to brands and retailers to solve the problem for them.

“You’re asking individuals to make changes, but that’s maybe not the most effective approach,” she says. “If brands and retailers were thinking more creatively, rather than how they can add a price premium, we could make more progress and consumers would be happier.”

To that end, grocery giant Carrefour launched a supplier sustainability forum—“Together for Better”—this summer in Dubai, United Arab Emirates, which brought together 13 leading FMCGs with the goal of adopting sustainable best practices and identifying long-term solutions. In its 2026 strategic plan, Carrefour committed to delisting any of its top 100 suppliers who do not deliver on promises for rapid emission reduction as part of the pathway to limit global warming to 1.5 C to avoid the worst consequences of climate change.

SHUTTERSTOCK/PETRMALINAK

IMPACT OF DEMOGRAPHICS AND INCOME ON SUSTAINABLE SHOPPING

In the meantime, grocers who are still on the fence about taking a stronger sustainability stand may risk alienating certain demographics in doing so. While boomers tend to be more focused on “value for money” right now, Tiffany Wong, EY’s director of environmental, social and governance (ESG) for Canada, says millennials and gen Zs—who will be the most influential consuming cohort by 2030—will be far more willing to vote for sustainability with their wallets. “We are already seeing this in their behaviour today,” says Wong. “They are reading the packaging labels carefully, looking for recycled content and certification and focusing on brands with purpose.”

Wong says these consumers don’t differentiate between the retailer and the brand and they expect a collaborative effort in how to deliver on sustainability. Discerning shoppers like these also expect companies to be transparent about their efforts around sustainability. “It’s about being open and honest about where you are today and where you’re heading and showing progress,” she says. “It’s also about matching their ambition with the problem and thinking about how to get tactical with the portfolio of solutions that will get them there.”

Given the premium prices of many green products, income is also playing a key factor in who is shopping sustainably these days—and will continue to do so, says Shelley Balanko, senior vice-president of the Hartman Group, which will be releasing its 2023 Sustainability & Transparency report later this fall. In hypothesizing on what those results will reveal, she says higher income earners will continue to place value on sustainable attributes, even if they’re pricier. “When we went into the pandemic, everyone thought sustainability would absolutely take a backseat and it didn’t,” she says. “It actually raised consumer awareness about some of the key social issues that are part of sustainability.”

Balanko says those who can afford to keep purchasing products that align with their values will do so, knowing there is “a ripple effect beyond their own personal gain.”

FUTURE SUSTAINABILITY TRENDS AND CONCERNS

Going forward, industry watchers say there are some key areas gaining favour in sustainable practices that retailers should keep on their radar. One is circular economies, where the goal is to extend the lifecycle of products for as long as possible. This year, Canada held its inaugural Circular Economy Summit in Toronto, which attracted more than 450 attendees including brands, retailers, waste management companies and academia.

As producers take more responsibility around the lifecycle of the products they sell, EY’s Wong says consumers will be engaging with retailers in different ways. “So, think about refillable packages for free in bulk shopping, or recycling and payback programs,” she says. “We don’t necessarily see that in many stores today, but it’s definitely something to watch.”

The regenerative agriculture movement is another key area, as consumers shift towards being more proactive about sustainable food systems—including how to promote better soil health and discourage over-harvesting. Wong says retailers are starting to think more about the entire supply chain, too, in terms of how they can collaborate with farmers and other suppliers.

“They’re recognizing they have a sphere of influence in being able to bring sustainable products to their customers,” she says.

Martin Gooch is CEO of Oakville, Ont.-based Value Chain Management International (VCMI), which helps businesses create environmentally and financially sustainable supply chains. He says if retailers really believe sustainability will be a differentiating factor, it’s key they figure out how to place themselves ahead of the curve now by collaborating across the supply chain. A recent report from VCMI, Low Carbon Food Production: How farmers and food businesses can profit from decarbonizing, delves into strategies on ways to do this.

August 2023 || CANADIAN GROCER 31

SNACKING’S SUSTAINABLE

PROGRESS HIGHLIGHTS

FUTURE

100% Of COCOa uSEd

How Mondelēz International is advancing its ‘Snacking Made Right’ ESG goals towards a better planet

SOuRCEd SuSTaInabLy THROuGH COCOa LIfE

In Canada,

in OREO and all Mondelez chocolate brands is

What’s the right way to snack? It starts with making them the right way. For Mondelēz International, one of the world’s largest snack companies, that means reducing its environmental footprint and making a positive impact on people, while driving more sustainable business growth.

“Every day at Mondelez, we are inspired to go the extra mile to lead the future of snacking in Canada and around the world.”

Karla Schlieper, President of Mondelez Canada.

96%

of all packaging in Canada from Mondelez was designed to be recyclable

Here’s how Mondelēz is leading the future of sustainable snacking in Canada: Packaging

Mondēlez is making packaging “light and right” by reducing the amount of packaging it uses and using recyclable materials.

By 2025, Mondelēz aims to make 100% of its packaging designed for recycling and reduce virgin plastic packaging by 25%.

Ingredients

A more sustainable supply of raw materials is essential to the success of Mondelēz and the communities and landscapes producing them.

The company’s goal is to source 100% of cocoa volume for chocolate brands globally through its program, Cocoa Life, by 2025.

Environment

Mondelēz is taking bold action on climate change, working toward net-zero carbon emissions by 2050.

To reduce its carbon footprint, Mondelēz is being more energy-efficient, using more renewable sources, reducing water use, and reducing waste, among other efforts.

Social Sustainability

On the people side, Mondelēz is committed to human rights across the whole value chain, from growers to suppliers to employees.

A key goal is to have 100% of Cocoa Life communities in West Africa covered by Child Labor Monitoring & Remediation Systems (CLMRS) by 2025.

230,000 farmers participated in the Cocoa Life program in 2022

CO2 emission

reductions were

reduced by 25%

across the company’s manufacturing operations by 2022 (vs. 2018 baseline)

39%

of the electricity Mondelez used in its manufacturing sites was renewable

Mondelez reduced water usage

Source: SNACKING MADE RIGHT 2022 ESG REPORT

by approximately 4% at priority sites where water is most scarce, reduced food waste in internal manufacturing sites by 25%, and reduced food waste from distribution by 58%

Sustainability He says a barrier to progress in this area is that some retailers don’t have a good handle on what sustainable really means to their target shoppers, which is preventing them from seizing opportunities. “It’s difficult to target consumers’ sustainability issues if you don't know what they are to begin with,” he says.

“I’m also not convinced that consumers factor sustainability alone in their purchasing—you have to make it meaningful, so how do you make the food system more efficient and then communicate that to your customers.”

Kantar’s Babbage agrees, noting that some retailers and brands think sustainability will sell itself because there will always be people willing to pay more for these products. “I don’t think that’s true because sustainability is something people care about when it’s woven into other aspects of the brand,” she says.

“Otherwise, [grocers and brands] are attracting a niche audience and it’s got so much more potential than that.”

WHAT GROCERS ARE DOING RIGHT

In staying ahead of the curve in sustainability practices, grocers like Ontario-based Goodness Me! have made concerted efforts to ban plastic bags in their stores well before government regulations against plastics kicked in. “We were offering earthfriendly, compostable bags to our customers years and years back, and we’ve always offered eco-friendly solutions for food storage,” says head merchant Kathleen Carroll. In the organic bulk food section, customers are encouraged to bring in their own reusable food storage containers and the weight of each carrier is deducted at cash. “We have bamboo-made bento boxes for lunch and larger food storage solutions, too.”

A new initiative across its 10 stores and on social media this year is a push to educate people around sustainable living practices. “Anyone new to sustainable living can come to us to get that content,” says Carroll. “Our staff is living this life and

talking to customers, so what differentiates us is having roots in this education already.”

When it comes to sustainability initiatives, Longo’s is making good on a series of commitments to reduce greenhouse gas emissions, reduce food waste and source responsibly. The grocer eliminated the use of single-use plastic bags from all its stores by the end of 2022 and established a recycling program for all waxed cardboard and plastic case wraps to divert from landfill. (One of its sustainability goals is to divert 90% of waste from landfills by 2025.) It also partnered with a global organization called Too Good To Go, a service with a mobile application that connects customers to stores with surplus, unsold food at a discount. At Longo’s, customers can purchase a bakery or prepared food bag at a fraction of its original price. “We noticed huge, huge interest among our guests for this program, and in 2022, 20,000 meals were saved using the app,” says Sara Olivieri, Longo’s sustainability specialist. “Guests still want to get that Longo’s quality product and it’s coming at a really great value.”

The grocery chain is also on track to meet its goal of having 100% of stores using refrigerants with a lower global warming potential or a natural refrigerant by 2030, which coincides with its targets for reducing greenhouse gas emissions by 55% by the same year. In addition, Longo’s has made it a priority to source locally, and was the first retailer in North America to offer fairtrade bananas exclusively across its stores.

Olivieri says shoppers are made aware of all these initiatives through the company’s annual sustainability report, which is posted on Longo’s website and through its newsletter and social media. “We’re working toward the highest standards out there in the grocery industry when it comes to corporate sustainability,” she says. “We continually seek feedback from our guests to understand their needs and ensure we are meeting—and exceeding—their expectations.” CG

Sustainable efforts that stick retailers looking to

implement sustainable practices and draw ecoconscious consumers to their stores in the process, need to be authentic and clear about what they’re doing to be greener, say industry experts. Here are suggestions for sustainability efforts that will resonate with shoppers.

1

Figure out what green standards you want to implement and be transparent about promoting and adhering to them, says Hartman

Group's Shelley Balanko.

“As a consumer, once I know that a retailer’s values align with mine, I can go into their environment—virtual or physical—and not have to scrutinize everything.”

2

Provide concrete evidence and mea­ surable outcomes of your sustainability initiatives, through certification reports done in-house or through third-party audits. Make this information easily accessible (even when you miss your targets), so consumers know you’re

not just greenwashing but serious about making progress.

3

Empower your employees to join your sustainability efforts.

When they’re excited and knowledgeable about sustainable products and practices in-store, your customers will be, too.

4

Find efficiencies by collaborating with other retailers (e.g. seek collective discounts from sustainable suppliers you’re all sourcing from).

5

Do your research to tap into what your shoppers care about most in terms of sustainability, so you can provide more targeted green initiatives in-store.

6

Make sustainable options more accessible.

When it’s much more expensive to buy the refill option than the original item, there has to be a better way, says Kantar’s Natalie Babbage. “And no one has time to go to separate shops for refills or compost options,” she says.

August 2023 || CANADIAN GROCER 33

SUSTAINABILITY IS CORE TO CANADIAN CHICKEN FARMING THE CANADIAN CHICKEN INDUSTRY HAS ONE OF THE LOWEST CARBON FOOTPRINTS GLOBALLY. In the past 40 years, the sector’s carbon footprint was reduced by 37%.

The sector reduced water consumption by 45% during the last 40 years.

62% of the sector’s energy use comes from renewable sources.

Canadian chicken farmers take their role as stewards of our land seriously, and they are proud of their work to care for their flocks and the environment.

YOU CAN FIND OUT MORE AT CHICKENFARMERS.CA.

Doing the right things Meet the companies making a difference—the winners of Canadian Grocer’s 2023 Impact Awards In actions big and small, in communities and workplaces all across the country, Canada’s grocery industry is stepping up to bring about meaningful change. To recognize these efforts, a few years back we launched the Canadian Grocer Impact Awards and we’re delighted to shine a light on this year’s winning initiatives. Read on to learn about 40 ways the industry is making a positive impact in four key areas: sustainability; supporting employees; diversity, equity and inclusion; and community service.

By Shellee Fitzgerald, Rebecca Harris, Jessica Huras and Danny Kucharsky Illustration by Carl Wiens August 2023 || CANADIAN GROCER 35

Proud Recipient of the 2023

Supporting Employees and Sustainability At Nestlé Canada, we take pride in being Our work is guided by our desire to contribute to nutritious and sustainable diets, to help protect, renew and restore the environment, strengthen communities and operate responsibly.

This commitment is rooted in who we are, and it starts with our people; their desire to do more ultimately drives our business forward.

Creating a work environment that empowers and supports our employees’ needs is our top priority.

PROUD WINNER OF TWO 2 0 2 3 I M PA C T A WA R D S I N S U S TA I N A B I L I T Y A N D D I V E R S I T Y, E Q U I T Y, A N D INCLUSION B y 2 0 2 5 , 1 0 0 % o f B i m b o C a n a d a ’s packaging will support a circular economy. We were the first national bakery company to transition from plastic bread bag closures to recyclable and municipally compostable cardboard c l i p s w h i c h re d u c e s o u r p l a s t i c u s e b y approximately 200 metric tonnes annually.

We ’ r e a l s o s t r i v i n g t o c r e a t e a s a f e , diverse, and inclusive workplace.

In partnership with the Gord Downie & Chanie Wenjack Fund, we have four Legacy Spaces to build cultural understanding, connections and a path to reconciliation with Indigenous P e o p l e s . A d d i t i o n a l l y, a l l a s s o c i a t e s have access to formalized training and initiatives that support our diversity, equity, and inclusion jour ney.

MD

Visit BimboCanada.com/sustainability for more information on our 10- y e a r s u s t a in a b ilit y s t r a t e g y.

Sustainability BIMBO CANADA

In 2022, Bimbo Canada became the first national bakery company to adopt cardboard bread bag closures, a move that has reduced its use of single-use plastic bag closures by about 200 metric tons annually.

It’s all part of the baker’s ambitious target that will see 100% of its packaging supporting a circular economy by 2025 by being reusable, recyclable, biodegradable or compostable.

Plastic bread bag closures are not easy to recycle. Most end up in landfills or as pollutants in other waste streams. The cardboard clips are made of 100% recycled cardboard that can be composted in municipal programs. They biodegrade in 84 days, compared to hundreds of years for polystyrene plastic bag closures.

Though the clips are small, Bimbo Canada’s transition to cardboard has had a material environmental impact—if laid side by side, they would stretch more than 10,000 kilometres.

“At Bimbo Canada, we believe that small things add up to big things. The transition to cardboard bread bag closures was an exciting opportunity for us because it let us help consumers make a small change towards being more sustainable at home, with a big impact for our environment,” says Jeff Robertson, director, environment and sustainability at Bimbo Canada.

BIMBO CANADA, CIRCULR, COCA-COLA CANADA BOTTLING

CIRCULR

Circulr was built to help the grocery sector be more sustainable by participating in the circular economy.

With a mission to make zero-waste the norm in Canada, the company operates the back-end infrastructure for the reuse of CPG product packaging, mainly glass jars. Circulr collects, washes and returns the jars to brands to be refilled and put back on store shelves. Circulr also operates an app that tracks packaging for brands, and facilitates the distribution of deposit money and rewards to consumers who drop the jars off at collection points at participating grocery stores.

In operation for just over a year, Circulr has so far reused more than 12,000 glass jars, resulting in the avoidance of roughly 2,500 kilograms of greenhouse gas emissions from glass production.

Over the next year, Circulr is aiming to expand the program to more brands and

reuse 60,000 jars. The company currently operates across Toronto and the Waterloo-Wellington region in Ontario.

“It’s been great to see more and more people get behind Circulr and the idea of reuse generally over the last few months,” says co-founder Tyler De Sousa. “We’re now supporting over 20 brands and collecting at over 20 retailers, comparing that to where we were a year ago really shows how quickly things are changing and how much we can accomplish in the future.”

COCA-COLA CANADA BOTTLING

To reduce carbon emissions, Coca-Cola Canada Bottling is integrating six Volvo VNR Electric trucks this year into its iconic “Red Fleet” customer delivery routes throughout the Montreal area. It’s part of the company’s plan to reduce carbon emissions from direct sources and supplied energy by 46.2% by 2030.

“As we strive to become the leading beverage partner in Canada, we’ve made it our mission to put environmental sustainability at the heart of our business, which is why we’re extremely proud to have partnered with Volvo Trucks on this exciting initiative,” says Stephen du Toit, president and chief operating officer at Coca-Cola Canada Bottling. “We recognize we have a responsibility to effectively manage our environmental impact across the country and are continuously working to find innovative solutions to decrease the emissions from our fleet.”

Bimbo Canada's cardboard bag closures are cutting its singleuse plastic by 200 metric tons annually

2023 IMPACT AWARDS The battery-electric fleet provides a range of up to 440 kilometres on a charge, making it well-suited for average daily round trips of 150 kilometres.

The bottler has installed three 150 kW DC chargers with nine dispensers at its Montreal distribution centre to charge the fleet. It plans to incorporate additional battery-electric trucks into its fleet where it makes sense.

CONAGRA BRANDS CANADA

M o re t h a n a d e c a d e a g o, C o n a g r a launched its Zero Waste Champions program to recognize facilities within its operations that use environmentally responsible practices to avoid waste and reduce greenhouse gas emissions.

Conagra Brands Canada’s two Canadian manufacturing facilities—in Dresden, Ont. and Richmond, B.C.—have been recognized internally as Zero Waste Champions for diverting more than 90% of waste materials from landfills by using waste-reduction measures such as proper waste separation and recycling.

To help reduce carbon emissions, Coca-Cola Bottling is integrating six Volvo VNR Electric trucks to its fleet in the Montreal area

Circulr is helping companies recapture and reuse packaging to reduce waste

August 2023 || CANADIAN GROCER 37

Maple Leaf Foods is a Proud Partner of CJR Wholesale Grocers Congratulations on Winning DCI Partner of the year

2023 IMPACT AWARDS

Sustainability continued

When an employee at the Dresden facility—which grows and packs nonGMO Aylmer Tomatoes—noticed there was considerable water loss in the section of the flumes that transport produce, he used salvaged scrap metal and valves to improve flow and reduce water spillage.

This simple adjustment reduced water consumption by 33,000 gallons per day and 1.4 million gallons over Conagra’s fresh pack season.

All 17 of Conagra’s Zero Waste Champion facilities network wide “are leading the company’s efforts to nourish the planet and reduce waste at the source,” says Michael Fazio, Canadian head of sustainability at Conagra Brands Canada. In fiscal 2022, the facilities diverted more than 183,000 tons of waste.

“Our teams consistently strive to meet environmental challenges head on, underscoring Conagra’s commitment to nourishing and restoring the planet,” says Fazio.

DANONE CANADA

Danone Canada’s facility in Boucherville, Que. achieved Zero Waste to Landfill status at the end of 2022.

The zero waste goal, an initiative for Danone’s manufacturing facilities in North America, involves a strong commitment to eliminating waste, not just treating it, by optimizing the choice and usage of materials.

According to Danone Canada’s definition of zero waste, less than 1% of non-hazardous waste is disposed to landfill and no hazardous waste is sent to landfill. In addition, incineration without energy recovery is prohibited (except for hazardous waste disposal as required by law).

B y f o l l ow i n g t h e s e c r i te r i a , t h e Boucherville facility is setting new company standards in terms of waste produced during its food and beverage production.

“At Danone, we are deeply committed to innovation, optimization and

Ontario honey producer Dutchman’s Gold launched the Bee Friendly Promise to address the decline in honeybee populations

CONAGRA BRANDS CANADA, DUTCHMAN’S GOLD

Conagra Brands Canada’s manufacturing facilities are recognized as Zero Waste Champions for diverting waste materials from landfills

sustainability, especially when it comes to waste reduction and packaging circularity in our operations,” says Pascal Lachance, sustainability director at Danone Canada. “By achieving our Zero Waste to Landfill goal at our Boucherville plant, it demonstrates not only that commitment, but that we walk the talk when it comes to doing our part.”

DUTCHMAN’S GOLD

Canadian beekeepers are losing more than a quarter of their honeybee colonies each winter due to a combination of pesticides exposure, habitat loss and the effects of climate change. It is a significant loss, given that one-third of crops rely on honeybees and other pollinators.

Enter the Bee Friendly Promise, an initiative launched by Dutchman’s Gold to address this decline, raise awareness about the importance of honeybees and take action to support their well-being.

“We need honeybees to be healthy and thriving,” says Dutchman’s Gold co-owner Angela Van Alten-Ysseldyk, who, along with her husband in 2018, purchased the Carlisle, Ont.-based company founded by her father in 1981.

“Growing up on the Dutchman’s Gold honey farm taught me the importance of staying connected to farmers, beekeepers and biodiversity for a healthy honey crop,” she says.

The initiative aims to protect the supply chain, support local beekeepers, promote sustainable packaging and address the decline in honeybee populations.

Actions include a virtual education series for retail partners and site tours for distributors and retailers.

The Bee Friendly Promise seal will be included in the next production run of all Dutchman’s Gold products.

“Consumers want to know they’re consuming something that’s good for their body, but also something that’s good for the planet, too,” says Van Alten-Ysseldyk.

“I think that really resonates.”

ECO GUARDIAN

Eco Guardian has b een pro ducing organic and eco-friendly food packaging since 2004. With its latest launch, the Ontario-based company is taking on household paper to address growing environmental concerns over single-use paper products and deforestation. Made

August 2023 || CANADIAN GROCER 39

2023 AWARD WINNER

COMMUNITY AND SUSTAINABILITY COMMUNITY

SUSTAINABILITY

At Freybe, we’re passionate about creating & maintaining sustainable practices and investing in people; Not only in our business, but in our community as well. From providing awards & scholarships like the Ulrich Freybe Memorial Scholarship in Food Nutrition and Health, to being mental health advocates with the Not Myself Today program, to actively supporting local events and organizations, we have the same unwavering commitment to the products we make as we do to the communities we support.

Over the past year, LED lighting upgrades have reduced 242,000 KWH related to usage/KG. This energy savings is equivalent to powering 86 houses or 163 cars in BC for a month.

freybe.com

In the first three months of 2022, water usage was reduced by 5,600 m3 of water, equivalent to 56,000 showers.

Annually, plastic waste has been reduced by over 50% with the use of Post Recyclable Packaging innovation.

Food waste projects have diverted 60% of waste from landfills, with the goal of diverting 80% by 2025.

Soon to come, our plant has been approved for a Fortis BC Pilot project that will significantly reduce the emissions from their boiler & recapture the carbon that otherwise would have been emitted to the atmosphere.

2023 IMPACT AWARDS

Sustainability continued

from unbleached bamboo, the Bamboolia product line covers household paper products ranging from bath and facial tissues to paper towels and napkins.

“As a culture we have become accustomed to household paper being one way—white and fluffy, and at the cost of our forests,” says Swapnil Abrol, vicepresident, special projects for Eco Guardian and founder of Bamboolia. Bamboo, by contrast, requires no replanting, grows 10 times faster than trees, and requires less water to support its growth and harvest. “We developed Bamboolia to prove that paper doesn’t need to come from trees, but rather can come from a super sustainable crop that grows like crazy and still produces a high-quality product,” explains Abrol. In addition to offering Canadian shoppers an alternative to tree-based household paper, Eco Guardian allocates a portion of proceeds from every Bamboolia item sold to various environmental efforts, including tree replanting in Canada.

The Flashfood app connects shoppers to discounts on good food at grocery stores that is nearing its expiry date—helping reduce waste

Greenhouse Juice Co. is on a mission to cut its plastic usage by 95% by 2025

Eco Guardian’s Bamboolia line uses fast-growing, sustainable bamboo, rather than trees, in its household paper products

GREENHOUSE, FLASHFOOD, ECO GUARDIAN

FLASHFOOD

Flashfood’s mission is to eliminate retail food waste by offering retailers and shoppers a simple and affordable way to feed families, not landfills. The app-based marketplace connects consumers to great discounts on high-quality groceries including fresh produce, meat, dairy and bakery items.

How does it work? Grocers do daily date checks, identify items for Flashfood, upload them to the app, and place the items in the Flashfood Zone. Shoppers browse and purchase the items through the app and pick up their orders in-store.

Today, Flashfood operates in nearly 2,000 grocery stores throughout Canada and the United States. In 2022, Flashfood and Loblaw—its biggest partner in Canada—celebrated a milestone of 40 million pounds of food diverted, including more than seven million pounds of produce.

Eliminating food waste at the retail level by diverting it to dinner tables not only reduces harmful emissions at landfills, but it also addresses the connected problems of hunger and food insecurity. Flashfood also helps retailers recover lost profits and achieve their sustainability goals.

“Flashfood wouldn’t be here without our retail partners who hustle behind the scenes to make our platform and our

mission possible,” says founder and CEO Josh Domingues. “Looking ahead, we’ve got our sights set on accessibility—being available in more places and at more stores with the goal of saving consumers money on groceries and rescuing millions more pounds of food from landfill.”

FREYBE GOURMET FOODS

Freybe Gourmet Foods achieved significant sustainability milestones in 2022 as part of its action plan to reduce emissions, electricity, packaging and food waste. Last year, Freybe successfully diverted 60% of its food waste from landfills by partnering with West Coast Reduction to convert the waste into animal feed and renewable energy. Freybe also cut its water usage by 22.8K cubic metres, the equivalent of 640,000 showers, by upgrading its facilities with low-flow toilets and tap aerators as well as through changes to its salami production process.

The company’s LED lighting improvements have saved 1.03 million KWH in electricity usage, while its eco-friendly

packaging initiatives brought about an annual reduction of 96 kilograms in paper, 96 kilograms in plastic, and 2,260 kilograms in corrugate. Moreover, Freybe was recently approved for a FortisBC pilot project, which will significantly decrease its boiler emissions and repurpose captured carbon for soap and cleaning supplies. This year, Freybe also plans to upgrade its wastewater treatment system and work with a smart recycle waste broker to further develop its waste diversion and management initiatives.

GREENHOUSE JUICE CO.

Organic beverage company Greenhouse Juice Co.’s Fight Against Plastic and Microplastic Pollution initiative is driven by its commitment to the health of both its customers and the environment, according to co-founder and CEO Anthony Green. “When I learned that the top two contributors to plastic pollution were beverage giants, it became clear to us that Greenhouse needed to take accountability and be a part of the

August 2023 || CANADIAN GROCER 41

2023 IMPACT AWARDS

Sustainability continued

solution,” says Green. To combat this crisis, the company is taking innovative steps towards plastic-free packaging, including switching to recyclable aluminum caps and using post-consumer paper waste for its product labels. Greenhouse predicts these updates will prevent more than 100,000 kilograms of plastic waste from entering the environment within the next 12 months.

Additionally, Greenhouse is educating consumers through an online microsite linked via QR code to its new cap, which shares information about plastic pollution and the company’s goal of achieving a completely plastic-free supply chain.

Greenhouse wants to inspire larger beverage businesses by setting aggressive sustainability goals and transparently communicating its progress and challenges. Greenhouse’s ultimate vision is to reduce its current plastic usage by more than 95% by the end of 2025 and implement a comprehensive closed-loop reuse program for its bottles.

KOOTENAY CO-OP

GROUP BEL CANADA

Since plant-based products are part of the solution to growing environmental challenges, Group Bel Canada has set a goal to offer a balanced range of fruit-and-plantbased and dairy products by 2030.

It’s well on its way. In the past three years, the company has diversified its plant-based product offerings and has implemented measures to reduce its environmental impact.

With the construction of its new plant in Sorel-Tracy, Que., the company is prioritizing local production and avoiding shipping from Europe. About 90% of Group Bel Canada’s products are now produced in Canada.

The plant is thermally insulated to be energy efficient, with air systems designed to allow for energy recovery, and its sustainable design is reducing its carbon footprint.

In collaboration with The Climate Fresk NGO, the company has established a training program to raise awareness of climate change. More than 80 employees have been trained.

“At Group Bel Canada, I feel that every day we get to live our mission to provide healthy and responsible snacks for all,” says Cristine Laforest, CEO of Group Bel Canada. “We have an opportunity to

influence positive innovation, consumers’ eating habits and help take care of the planet at the same time. We have a responsibility as manufacturers to do our part to provide more sustainable solutions in this fast-changing world.”

KOOTENAY CO-OP

“We work with our community’s needs, and values [are] at the heart of everything we do,” says Daniel Eisen, outreach co-ordinator for Kootenay Co-op.

“Knowing how important and urgent the climate crisis is to our community and the lands we rely on, we knew that we had to act and place sustainability at the forefront of our operations.” Recognizing the environmental impact of food waste in landfills, the community-owned grocer launched a program that sees safe-to-consume but unsaleable goods offered to staff or donated to local food banks. The program is estimated to now rescue thousands of kilos of food waste each year. Kootenay Co-op further minimizes food waste through its rigorous compost program, which gives members access to compost for home use or farming.

The B.C. grocer has also achieved a 15% reduction in plastic bag usage by At B.C.’s Kootenay Co-op, thousands of kilos of good, but unsaleable food is rescued each year

introducing a discount for customers who bring their own containers to refill bulk items, while the installation of three nylon reusable pallet wraps has helped the store make additional strides in reducing its single-use plastics. Furthermore, Kootenay Co-op has tackled energy efficiency through the installation of electric vehicle charging stations, e-bike charging stations, and a heating system that operates without external electrical or hydro input.

LONGO’S

Longo’s stated purpose is “fuelling happier and healthier lives,” something that guides everything the 67-year-old grocery chain does, including its approach to sustainability.

Recognizing the significant environmental impact grocery stores can have on the planet—through operations and supply chain—Longo’s has committed to combat those effects through actions such as reducing greenhouse gas emissions (GHG). In fact, in 2022, Longo’s saw a 45% reduction in GHG emissions from 2020—a feat largely achieved through refrigerant conversions.

Longo’s determined the most significant source of its scope 1 (direct GHG emissions released from its operations) were from refrigerant leaks. Commonly used hydrofluorocarbon refrigerants, for instance, are potent GHG that trap thousands of times more heat in the atmosphere than carbon dioxide. So, to reduce its climate impact, all new Longo’s stores since 2012 have been built using a CO2 refrigerant system with an ultra-low global warming potential (GWP).

“Refrigerant leaks are one of our main sources of greenhouse gas emissions and represent a risk as leaks are unpredictable. By converting to a lower global warming potential refrigerant, we have an opportunity of reducing the GWP by 65%, further reducing the climate impact of our refrigeration systems,” explains Dave Mastroieni, vice-president, central procurement and facility management at Longo’s.

To date, 44% of Longo’s locations use a CO2 system and in its 2022 Sustainability Report, Longo’s made the commitment that 100% of its stores (currently it has 37) will use refrigerants with lower GWP or a natural refrigerant system by 2030.

August 2023 || CANADIAN GROCER 43

PROUD WINNER OF THE 2023 DANONE CANADA IS PROUD TO HAVE BEEN RECOGNIZED IN THE SUSTAINABILITY CATEGORY

ZERO WASTE TO LANDFILL

REDUCE FOOD WASTE

SUPPORT THE 10X20X30 INITIATIVE

At least 99% of waste generated by food production in Boucherville’s manufacturing facility is diverted from landfill, aligned with Danone’s top standards.

Danone’s Two Good yogurt brand is partnering with Second Harvest, the country’s largest food rescue organization, to help combat food waste in the hope to save more than 80,000 meals.

Danone Canada is engaged in the 10x20x30 Initiative, encouraging food retailers and suppliers to halve food loss and waste by 2030.

2023 IMPACT AWARDS

Sustainability continued

NESTLÉ CANADA

As the world’s largest producer of food and beverage, Nestlé recognizes it plays a significant role in creating a more sustainable future. At the core of this journey is the company’s Net Zero Roadmap, which launched in 2020 and aims to drive down Nestlé’s greenhouse gas emissions and get to net zero by 2050.

“Our net zero commitment is at the core of our sustainability journey. Even as we grow, we will continue to endeavour to drive down our emissions and get to net zero,” says Catherine O’Brien, senior vice-president, corporate affairs, regulatory, government relations and sustainability. “Our commitment is guided by our desire to help protect, renew and restore the environment, strengthen communities and operate responsibly.”

Nestlé is reimagining all aspects of the business, from the ingredients and packaging it uses, to how it makes and transports products, to how it supports local communities. For example, the Nestlé Cocoa Plan addresses complex challenges faced by farming communities—focused

on the Ivory Coast—such as training and educating local farmers.

Nestlé’s four core confectionery products—KitKat, Aero, Coffee Crisp and Smarties—are made using 100% sustainable cocoa certified by Rainforest Alliance. In 2022, Nescafé announced its plan to help make coffee farming more sustainable through the Nescafé Plan 2030, which includes helping transition coffee farmers to regenerative agriculture.

Nestlé is also on a journey to make all of its packaging recyclable or reusable by 2025 and to reduce its use of virgin plastics by one-third in the same period. Nestlé’s popular Smarties brand uses paper packaging that is responsibly sourced and certified by third-party organizations including the Forest Stewardship Council (FSC) and Sustainable Forestry Initiative (SFI).

PATTISON FOOD GROUP

B.C.’s Pattison Food Group (PFG)—whose retail banners include Save-On-Foods, Buy-Low Foods, Urban Fare, and others— has a long track record of environmental leadership. The company is making a

NESTLÉ CANADA, PATTISON FOOD GROUP

Nestlé is reimaging all aspects of its business from how it makes products to supporting local communities

Among the many ways Pattison Food Group is making a positive impact is ensuring unsaleable, surplus food is put to its highest use

positive impact in myriad ways including its ongoing efforts to achieve zero waste by reducing its operational waste to prevent surplus plastics, packaging and food waste being sent to landfill. PFG stores across Western Canada currently divert more than 90% of unsaleable food to community organizations, food banks, family farms, and to make compost— putting edible, surplus food to its highest use. When building new stores, the company uses smart tech designed to reduce energy consumption. At the company’s largest banner, Save- On-Foods, LED lighting conversions are reducing energy consumption by more than 30% yearover-year, while refrigeration conversions are reducing environmental impact.

Along its sustainability journey, the company has forged strong partnerships with several organizations, among them: local food banks, Canadian Centre for Food Integrity, Food Mesh, Ocean Wise, Mercy for Animals and Call2Recycle.

The latter group named Save-On-Foods its 2022 Leader in Sustainability for helping divert nearly 4.4 million kilograms of batteries from landfills last year.

“Our commitment to sustainability stems from how much our customers and team members care about building a greener future,” says Heidi Ferriman,

senior vice-president of people and corporate affairs. “We are proud of the partnerships we’ve formed with local organizations and also of the commitment we see from our teams—both [of] which have enabled us to positively impact millions of Canadians through our sustainability efforts.”

August 2023 || CANADIAN GROCER 45

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2023 IMPACT AWARDS

Sustainability continued

RABBA FINE FOODS

Rabba Fine Foods is developing solar energy systems that will substantially reduce its carbon footprint.

When completed, the solar energy systems will generate more than 1.5 million kWh of electricity annually, offsetting most of the electricity requirements for the retailer’s Mississauga, Ont. distribution facilities.

The project, conducted in collaboration with Green Integrations and Star Energy Solutions, will reduce the company’s reliance on traditional electricity generation and will ensure the products Rabba sells have been delivered using renewable energy.

“The decision to invest in environmental initiatives like solar panels is one of the many ways in which Rabba Fine Foods is working to become a more sustainable business,” says Rick Rabba, the company’s president. “We take pride in the fact that we are playing our part to make positive change in our industry.”

The company’s solar energy project is an extension of retrofit and upgrade projects started several years ago by Rabba that include the elimination of older electrical fixtures in favour of more energyefficient options.

Rabba is also phasing in digital smart labels, which will eliminate the need for label printing, minimizing the grocer’s reliance on paper printing in stores.

reaching more than 4.3 million Canadians facing food insecurity. Second Harvest’s work has also prevented the release of approximately 162 million pounds of greenhouse gas emissions and conserved 31.2 billion litres of water. Going forward, Second Harvest aims to further increase its impact by redistributing 75% more healthy perishable food in the next three years, amounting to more than 72 million pounds of nutritious food redirected to Canadians in need.

WONDERFUL PISTACHIOS

Since 2019, Wonderful Pistachios, one of the largest nut processors in North America, has been working to transition its operations to 100% renewable electricity. “We believe that agriculture must be part of the solution to address greenhouse gas emissions globally,” says Mike Hohmann, Wonderful Pistachios’ executive vice-president and chief financial officer. Aiming to meet its renewable

electricity goal by 2025, Wonderful Pistachios has invested more than US$130 million to install major solar projects across its facilities in California’s San Joaquin Valley, the largest of which spans more than 100 acres. These solar facilities now deliver 75% of Wonderful’s electricity needs for pistachio and almond processing, generating emission reductions comparable to eliminating 4,000 gas-fuelled vehicles from the road each year. Additionally, the company has converted 100% of its pistachio farming vehicles from fossil diesel to renewable diesel, amounting to an estimated reduction of 9,800 metric tonnes of greenhouse gas emissions in 2022. “Wonderful Pistachios’ energy transformation initiative has been successful because it engages farm vehicle operators, electricians, facility teams, and procurement professionals,” says Hohmann. “We’re able to enact change across our organization at every stage of the process.”

Last year, Second Harvest rescued and redistributed 53.3 million pounds of food to more than 3,700 organizations

RABBA FINE FOODS, SECOND HARVEST, WONDERFUL PISTACHIOS

SECOND HARVEST

Canada’s largest food rescue organization, Second Harvest, has been at the forefront of the fight against climate change since 1985. Its decades-long efforts took on even greater significance over the past year as demand for charitable food services increased by 134%, according to a December 2022 survey. “Food rescue connects great, healthy food to people who need it,” explains Lori Nikkel, chief executive officer at Second Harvest.

“This was more important than ever in 2023 due to the rising cost of food, the increase in food insecure Canadians and the very real detrimental damage food waste in landfill is having on our climate.” In 2022 alone, Second Harvest rescued and redistributed 53.3 million pounds of food to more than 3,700 non-profit organizations,

Nut processor Wonderful Pistachios is transitioning its operations to 100% renewable electricity

Rabba’s solar energy systems will generate more than 1.5 million kWh of electricity annually

August 2023 || CANADIAN GROCER 47

2023 IMPACT AWARDS

Diversity, Equity & Inclusion BIMBO CANADA

When the discovery of mass, unmarked graves at a former residential school in British Columbia hit the news in May 2021, Bimbo Canada associates made it clear the company needed to learn more about the issue as part of its commitment to reconciliation.

Bimbo chose to work with the Gord Downie & Chanie Wenjack Fund (DWF), which aims to build understanding, raise awareness and create a path toward reconciliation between Indigenous and non-Indigenous Peoples in Canada.

In partnership with DWF, the company launched a five-year commitment in 2022 to educate and spread awareness. Actions last year included online training, virtual tours of the first residential school in Canada and guest speakers at events through the year. The company contributed more than $54,000 in 2022 to Indigenous organizations and completed 39 reconciliACTIONs (as DWF calls them).

This year, activities have included educational sponsorship for two Indigenous youth and a TED Talk-style education session on the residential school system.

“To change the future, we must first acknowledge our past,” says Teresa Schoonings, senior director, sustainability at Bimbo Canada. “Reconciliation is a responsibility of all Canadians and Bimbo Canada is proud to take action towards building a brighter future through cultural understanding, awareness and connections between all people in Canada.”

FEDERATED CO-OPERATIVES LIMITED

BIMBO CANADA, FEDERATED CO-OPERATIVES LIMITED, LOBLAW

In 2022, Federated Co-op launched a co-branded line of bison products in

collaboration with Wanuskewin Heritage Park, a traditional gathering place for all Northern Plains Indigenous Nations for more than 6,400 years.

The Co-op Gold private-label bison products include jerky, meat sticks, smokies and burgers, from recipes developed at Wanuskewin and brought to life by the Co-op team. The packaging includes artwork by Linus Woods, an Ojibway-Dakota artist from the Long Plain First Nation in Southern Manitoba. For Co-op, the bison initiative is an opportunity to appreciate Indigenous culture, while being committed to Truth and Reconciliation and understanding Indigenous history.

“Bison is so important in the Indigenous culture, so it was clear from the beginning that it would be the backbone of our product line,” says Federated Co-op’s store brands manager Sav Bellissimo. “Working with Wanuskewin to create, promote and distribute these items across Western Canada and supporting the cultural programming at the park through a portion of the proceeds is a fantastic collaboration.” The products can be purchased at Co-op Food stores

across Western Canada, with a portion of proceeds going to support cultural education programs at Wanuskewin.

LOBLAW / JOE FRESH

The apparel industry has historically struggled with a lack of inclusivity. The Joe Fresh brand set out to help change that with its spring adult activewear campaign, JF in Motion, that embraced diversity while highlighting different body types and abilities. It featured products in an extended size range of XS to 3X and was built around messaging that all bodies are beautiful. Model and advocate Allison Lang, who uses a prosthetic leg, was cast as one of the campaign’s stars.

The campaign exceeded expectations.

Customers reposted and shared images from the campaign, including a young girl born without a hand posing in front of the in-store Lang campaign imagery.

“At Joe Fresh, we’re always working to better represent our Canadian customer and create an environment that is inclusive,” says Meghan Lengyell, vice-president of marketing and communications at Joe Fresh. “With the JF in Motion campaign, we wanted to amplify

Federated Co-op has partnered with Wanuskewin Heritage Park on a line of bison products The JF in Motion campaign from Loblaw/Joe Fresh addresses the lack of inclusivity in the apparel industry by featuring different body types and abilities

Bimbo Canada is working to build cultural understanding between Indigenous and non-Indigenous Peoples in Canada

August 2023 || CANADIAN GROCER 49

General Mills Canada is a proud recipient of the 2023 Grocer Impact Award.

Community Service, Local Impact and Giving Back

2023 Impact Award Winner Community Service, Local & Giving Back Sustainability

Congratulations Pattison Food Group team members and all 2023 Impact Award winners!

2023 IMPACT AWARDS

Diversity, Equity & Inclusion continued

our values around body positivity, representation, and accessibility in the activewear space—and some great Canadian talent really helped us tell that story.”

MONDELĒZ INTERNATIONAL

Mondelēz Canada is on a mission to nourish a culture of inclusivity. In 2020, the company took a significant step towards prioritizing diversity, equity, and inclusion (DE&I) within its organization with the formation of the Diversity, Equity, and Inclusion Impact Team that, in turn, led to the development of the Employee Inclusion Groups (EIGs) program. “Employee Inclusion Groups were launched in response to feedback from our employees on DE&I priorities,” says Noah Farber, director, corporate and government affairs. “We wanted to take action in an authentic, meaningful and impactful way, so our program reflected that.” The EIGs organize inclusive events, providing learning, development and networking opportunities for employees. The groups also influence internal

policies by collecting self-identification data on race and ethnicity to help measure Mondelēz’s progress in diversity and inclusion. Additionally, the EIGs work to affect positive change beyond Mondelēz, partnering with external organizations to support initiatives within the wider BIPOC (Black, Indigenous, People of Colour) community. “We attribute the program’s success to our engaged colleagues and leaders, as well as our commitment to listening and actioning change; however, we acknowledge that change takes time,” adds Farber. “While we’re thrilled with the success we’ve seen so far, we continue to look for ways to grow, evolve and improve the program moving forward.”

WALMART CANADA

To accelerate the advancement of women within its workforce, in 2020, Walmart Canada launched the Women in Retail Rising Star Program. The year-long program focuses on empowerment, experience and exposure and is supported by

functional sponsors and in-store mentors to accelerate the readiness of high-potential female talent to step up to the challenge of their next-level role within a year of joining the program.

The program includes networking and development activities, leadership skill building, and total “box experience” (exposing candidates to all facets of leading the facility) and exposure to the “day in the life” of senior leaders.

“While women represent 53% of our total workforce, we have an organizational goal to reach gender parity across all functions and roles. Using data, we quickly understood the need to focus first on accelerating women into store manager roles,” says Jennifer Pierce, the retailer’s vice-president, talent management. “In year two, we broadened our question to be inclusive of accelerating female leaders to all internal functions and expanded the Rising Star Program to supply chain and finance. Moving into our third year, we are adding e-commerce and tech to the program.”

Supporting Employees

LACTALIS CANADA

LACTALIS CANADA

Lactalis Canada aims to be an employer of choice by introducing several initiatives and enhancements to its Total Rewards and Development programs. For example, the company’s wellness, pension, vacation, compensation, training, continuous professional development and flexible work arrangement programs and policies have all been improved.

Lactalis increased its investment in training by 31%, and its contribution to the salaried defined pension plan by 50%.

Through its launch of educational plant and farm visits, Lactalis is also giving employees farm-to-fork insights into the workings of its supply chain, dairy processing and farming. Lactalis also launched NEXT Ventures, an annual program that empowers employees and leverages internal crowdsourcing to explore ideas and bring to market new products, processes, technologies and business models.

The initiatives are already bearing results, with Lactalis Canada having b e en name d to Forbes 2022 lis t of Canada’s Best Employers. “At Lactalis Canada, we’re inspired to build a modern collective where we foster a culture of belonging, listening, garnering feedback

Lactalis Canada launched educational plant and farm visits to enhance its team members’ understanding of the supply chain, dairy processing and farming

and sourcing ideas from across the organization and are committed to evolving and enhancing our To tal Rewards and Development programs to ensure we are an employer of choice,” s ay s M a r k Tay l o r, t h e c o m p a n y ’s president and CEO.

August 2023 || CANADIAN GROCER 51

2023 Award Winner SUSTAINABILITY We are honoured to be a recipient of an Impact Award in the Sustainability category, presented by Canadian Grocer. At Longo’s, our purpose of fuelling happy and healthier lives guides everything we do, particularly our approach to sustainability.

We have made commitments to do everything we can to combat the adverse effects grocery stores can have on our planet.

100% of our stores will use refrigerants with lower global warming potential or a natural refrigerant system by 2030.

2023 IMPACT AWARDS

Supporting Employees continued

Nestlé Canada is empowering its employees with its FlexWork program

Vince’s Market’s Years of Service Recognition Program rewards team members for service and commitment

VINCE’S MARKET

NESTLÉ CANADA, VINCE’S MARKET

NESTLÉ CANADA

In response to employees’ evolving needs, Nestlé Canada reimagined its work environment in 2022 through its FlexWork program. The program empowers people to have flexibility in how and where work gets done.

The program includes a flexible work option that combines working at the office two days per week (minimum) with the flexibility to work remotely. When in the office, Nestlé believes employees’ time should be purposeful and meaningful, so the office remains a hub for collaboration, networking and culture.

To support this, Nestlé created “Connect Tuesday,” with opportunities for in-person learning and networking.

Some of the activities launched this year include brand sampling days, Lunar New Year and Eid al-Fitr celebrations, nutrition talks with Nestlé’s consumer wellness team, learning and development workshops, panel discussions and more.

Another aspect of the FlexWork program allows eligible employees to accrue time off through extra hours worked. In a survey, 97% of those who took advantage of this option found value in it.

“For us at Nestlé Canada, our employees come first and our effort to create a work environment that supports their needs is our top priority,” says Karine Laverdière, senior vice-president of human resources. “We strive to empower our employees to have flexibility in how and where work gets done, which has resulted in our office becoming a destination for learning, networking and collaboration—bringing our culture to life.”

Like most grocers in a tight labour market, Vince’s Market has found it challenging to fill supervisor and clerk positions in recent years. The Ontario-based independent grocer decided its recruiting and retention programs required a significant review and re-commitment to its people.

On the retention front, the company developed the annual Vince’s Market Years of Service Recognition Program, which ensures that recognizing tenured team members is the norm in the business—and not the exception. In developing the program, Vince’s management team created tiers it felt properly recognized tenure. They also came up with a selection of rewards they thought staff would find relevant.

At the company’s annual team holiday

party in 2022, Vince’s Market introduced the program to its 300 team members.

Each one received a commemorative certificate or plaque and a reward they selected from the tier of service they most recently completed. Though it’s too early to measure the program’s success to date, Vince’s Market says the response has been phenomenal and reinforces how Vince’s appreciates its team members and rewards them for service and commitment.

“Finding new ways to recognize and reward our team members has been front and centre over the past several years,” says Giancarlo Trimarchi, president, Vince’s Market. “While employee recognition programs are not new, with our program we have tailored it to regularly impact our team members with rewards that are valuable to them.”

Community Service BARILLA CANADA

For the past eight years, Barilla Canada has partnered with Toronto’s Covenant House—a non-profit serving youth who are homeless, trafficked or at risk—to support its Cooking for Life program. The interactive, hands-on training program teaches essential cooking skills necessary for employment in the hospitality industry and promotes the value of a nutritious Mediterranean diet.

More than 400 young people have graduated from the program, with 83% earning their food handler’s certificate,

50% retaining employment with their placement employer, and 50% securing a position with another employer or going back to school.

This year’s partnership kicked off with a two-day Cooking for Life workshop hosted by the company’s executive chef, Tim Minefee. Barilla has also strengthened its collaboration with Covenant House by employing skilled graduates from the program.

While learning to cook can open the door to new employment opportunities for these youths, the program extends far

August 2023 || CANADIAN GROCER 53

METRO’s Healthy Together campaign wins an Impact Award As part of the actions taken by METRO to help reduce social inequalities in the communities we serve, especially as they pertain to food and health, this initiative raised $2.8 million for food banks in Ontario, Quebec and New Brunswick.

Thanks to our store teams, affiliated pharmacy networks and customers.

Federated Co-operatives Limited is proud to receive the

2023 CANADIAN GROCER IMPACT AWARD for Diversity, Equity & Inclusion.

Bison raised in Fort Macleod, Alberta.

At the heart of this win are our CO-OP GOLD® Bison products: the result of a truly Western Canadian collaboration.

Recipes in collaboration with Wanuskewin Heritage Park’s culinary team and processed by Drake Meats in Saskatchewan.

Featuring artwork by Linus Woods, a Dakota/Ojibway artist from Long Plain First Nation in Manitoba.

A portion of the proceeds support cultural education programs at Wanuskewin Heritage Park. Congratulations Federated Co-operatives Limited team members and all 2023 Impact Award winners!

22500 - Canadian Grocer Award Ad.indd 1

2023-07-26 2:43 PM

2023 IMPACT AWARDS

Community Service continued

beyond new culinary skills. “Providing a meal may sustain them for a day, but teaching them to cook a quality pasta in accordance with the Mediterranean diet empowers them to maintain a healthy lifestyle throughout their lives,” says Gino Rulli, vice-president and general manager of Barilla Canada. “There has never been a more opportune moment to educate students about the significance of crafting nourishing meals using accessible and affordable ingredients.”

BURNBRAE FARMS

As Canada’s largest egg producer, Burnbrae Farms has made “doing its bit”— giving back to the communities in which it operates—a foundation of its culture.

Each Burnbrae facility is allocated a budget for use towards at least two charitable initiatives or local donations, and many Burnbrae employees volunteer their time delivering eggs and participating in community events. All Burnbrae facilities conduct local environmental protection initiatives such as roadside cleanups and tree planting.

“Everyone should ‘do their bit’—that’s what my mother, Mary Hudson, was known for saying,” says Burnbrae Farms

BARILLA CANADA, BURNBRAE FARMS, FRESON BROS.

Barilla Canada’s Cooking for Life program equips at-risk youths with skills for employment

Giving back or “doing its bit” is at the core of egg producer Burnbrae Farms’ culture

president and CEO Margaret Hudson.

“It’s very important to us as a family and a business that the communities in which we operate and live, see and feel the impact of our charitable giving and our colleague volunteerism.”

Soon after Russia invaded Ukraine, Burnbrae donated $5,000 to the Canadian Red Cross to assist with relief efforts in the war-torn country. The Burnbrae Farms Foundation also donated $1,000 to Veterinarians Without Borders in Ukraine to help more than 100,000 pets in urgent need of food, water, medicine and veterinary care. And more than 800,000 eggs were donated to Canadian communities in 2023. Burnbrae aims to donate one million eggs or egg equivalents every year.

FRESON BROS.

When Fox Creek, Alta. was devastated by wildfires in May, leading to a mandatory evacuation of the town, Freson Bros. Fox Creek store manager Kyle Amos sprang into action.

After his family evacuated, Amos returned to Fox Creek to support the firefighters who were trying to save the town, cooking meals for them and keeping the store open so they could pick up any supplies they needed. As the only grocery store in town, “I came to the conclusion that it was my responsibility to take care of the community,” Amos says. “If I didn’t do what I did, then the process might have been a lot more difficult than it had to be for our emergency services.”

Amos, joined by Freson Bros. Red Seal chefs and a baker, worked tirelessly to

prepare more than 100 meals daily for the firefighters and other emergency workers. And every morning, the fire crew would go to the store and grab any necessities they needed. Amos was also on call 24/7. “They didn’t really have any other option except for us. They needed sunscreen and they needed Vaseline for their feet and Hall’s (cough drops) because of the smoke.”

Says Amos: “I couldn’t go and fight the fire. I just could do what I do best.”

FREYBE GOURMET FOODS

Since 1884, Freybe Gourmet Foods has made a name for itself not only as a producer of premium meat products, but as one of British Columbia’s most community-minded corporations. Freybe supports various charities, fundraisers, societies and other worthwhile groups and causes throughout Western Canada each year. One of the company’s proudest recent contributions to the community was its sponsorship of the Interpretative Gardens at The Salishan Place in Fort Langley, B.C., an outdoor community space developed in partnership with the four land-based q̓ic̓əy̓ (Katzie), q̓ʷɑ:n̓ƛ̓ən̓ (Kwantlen), Máthxwi (Matsqui), and Se’mya’me (Semiahmoo) First Nations.

“Investing in Salishan Place by the River is a collaborative way for us to participate in activities that move us towards truth and meaningful reconciliation,” says Angela Doro, president, Freybe Gourmet Foods. Doro also noted Freybe’s work with the school district in Surrey, B.C. in sponsoring Maple Green Elementary’s

Freson Bros. Fox Creek stepped up to help with meals and supplies when the town was devastated by wildfires in May

August 2023 || CANADIAN GROCER 55

WHAT’S

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SPECIAL PROMOTIONAL FEATURE IN CANADIAN GROCER || August 2023

2023 IMPACT AWARDS

Community Service continued

Kellogg’s Better Days Promise aims to create better days for three billion people by the end of 2030

Giving back is baked into the culture at General Mills where the volunteerism rate is over 85% in programs like the United Way and Breakfast for Kids

Sensory Safe Mental Health Room, a dedicated space designed to promote mental health inclusivity. “As an employer, we have a strong mental health program here because we believe it’s important that people are able to bring their whole selves to work,” says Doro. “These children need a safe space for learning if they are to bring their best to school.”

GENERAL MILLS, KELLOGG CANADA, KRAFT HEINZ CANADA

GENERAL MILLS

General Mills Canada believes doing good and good business go hand in hand and the company practices this daily.

As such, the company’s national volunteerism rate is more than 85% in programs such as the United Way/Centraide campaign, Global Volunteer Week, Breakfast for Kids program and World Food Day drive. Employees volunteered for 972 hours on company time during the United Way/Centraide campaign, doing everything from tree planting to preparing meals at food banks.

The company has supported the Breakfast for Kids program at Brian W. Fleming Public School in Ontario’s Peel Region for more than 17 years, with employees volunteering daily at the school to ensure all children have breakfast. In 2022, General Mills Canada also donated $75,000 to the school to build a playground.

Last year, Moisson Montréal, The Mississauga Food Bank, and United Way Greater Toronto each received US$33,000 from the General Mills Hometown Grant

Since its inception, Kraft Hockeyville has awarded $4.5 million to communities

program, which allows employees to nominate charities to apply.

“General Mills Canada has a long-­ standing reputation of giving back and supporting local communities. One of our key commitments as an organization is Standing for Good. We are very proud of the strong partnerships we have established with local non-profit organizations focused on charitable giving, fighting food insecurity and employee volunteerism,” says General Mills Canada president Vince Mendes de Franca.

KELLOGG CANADA

Kellogg has long been on a journey to positively impact people and the planet.

Central to its environment, social and governance (ESG) strategy is the Kellogg’s Better Days Promise, which aims to create better days for three billion people by the end of 2030.

In Canada, the program comes to life in a variety of ways, including consumer activations, employee giving efforts, corporate in-kind and financial donations and volunteer activities. For example, during National Volunteer Week this year, Kellogg Canada hosted a community appreciation breakfast event at Daily Bread Food Bank, which included a power hour of food sorting and a financial donation of $50,000. It was all part of the company’s annual purpose-led initiative, KCI Day of Caring.

Kellogg is also a founding partner of

Food Banks Canada’s “After the Bell” summer hunger initiative, which gives children access to nutritious foods when school programs are closed for the summer. At this year’s volunteer packing day, more than 50 Kellogg Canada head office employees helped put together 185,000 meal packs, which included an in-kind donation of 185,000 Kellogg’s Rice Krispies Squares Bars.

“At Kellogg, we have a deep commitment to advancing sustainable and equitable access to food for all,” says Lores Tomé, director, communications & corporate affairs, Kellogg Canada. “As food insecurity continues to grow at record levels in Canada, it’s more important than ever to come together and give back to the communities where we live, work and play. Volunteering is one of the many ways that we show up and live our K Values—always striving to create better days and a place at the table for those who need it most.”

KRAFT HEINZ CANADA

Since 2006, Kraft Hockeyville has supported Canadian communities by making an impact on local hockey. The program is dedicated to building stronger, more inclusive communities across the country through the love of hockey. To date, Kraft Hockeyville has awarded $4.5 million to 93 communities across Canada.

“For many communities, hockey is more than a sport and being crowned the Kraft Hockeyville champion is more than a title. It represents a passion, a way to connect and feel like their community is part of something bigger,” says Matt Bruce, senior brand manager, Kraft Heinz Canada. “We love seeing that excitement come through every year in the nomination stories, the local and virtual rallies, and the NHL pre-season game. The Kraft Hockeyville legacy is a powerful tool to ignite community spirit, which feels more necessary than ever for Canadians.”

Recently, West Lorne, Ont. was named Kraft Hockeyville 2023. In addition to $250,000 in arena upgrades, the community will receive $10,000 worth of youth hockey equipment from the NHLPA Goals & Dreams fund and the opportunity to host an NHL pre-season game.

As the number of minor hockey registrants grows to record levels, the community is running out of space. Winning

August 2023 || CANADIAN GROCER 57

Community Service continued

Through its Big Assist program, Kruger Products is removing barriers to participation in hockey in Canada

Kraft Hockeyville will help with a range of upgrades including a new front entrance, new dressing rooms and an expanded warm room for families and fans. In addition, three finalists will each receive $25,000 in arena upgrades: Saint-Anselme, Que., Ste. Anne, Man. and Maple Ridge, B.C.

KRUGER PRODUCTS

LACTALIS CANADA

P’tit Quebec cheese has been a fixture in the lives of Quebecers, especially rural Quebecers, for 60 years. Realizing its role, P’tit Quebec launched the P’tits Projets pas si P’tits (which translates to not-so-small, small projects) in 2021 to help towns in the province with small but meaningful community projects they often lack the resources to complete.

“We started a unique program, P’tits 58 CANADIAN GROCER || August 2023

From tree planting to restoring docks, P’tits Projets pas si P’tits helps small Quebec communities

Projects pas si P’tits, which strengthens our commitment toward local communities in Quebec,” says Vince Vetere, general manager, cheese and table spreads at Lactalis Canada. “This unique, locally-focused initiative helps support communities with a hands-on approach including repairing, building and enhancing community infrastructure.”

Based on the success of its inaugural P’tits Projets pas si P’tits in SainteRose-du-Nord, Lactalis Canada’s P’tit Quebec brand wanted to make an even bigger impact with the program in 2022.

In June of last year, P’tit Quebec visited the community of Sainte-Aurélie in the Chaudière-Appalaches region of Quebec (population: 910). More than $55,000 was spent to help Sainte-Aurélie with several projects including: restoring the floating dock; building out a beachfront location; installing a shed for the community with garden tools; repairing the community sandbox; repairing the school’s soccer nets; creating a reading nook in the library; planting trees in the park; replacing bases and benches at the community baseball diamond; donating grocery carts to the recovering grocery store; and a donation of $10,000 towards other community-building initiatives.

long-time partners Feed Ontario, Food Banks of Quebec and New Brunswick Food Depot Alimentaire, bringing the total to $2.8 million.

Given that food banks can provide three meals for every $1 received, the donations represented nearly 8.4 million meals for those who need them most.

“It’s important for Metro to take concrete actions that can help reduce social inequalities, especially as they pertain to food and health,” says Marie-Claude Bacon, vice-president, public affairs and communications. Inflation and the continued impact of the pandemic have worsened food insecurity, she says.

“Our Healthy Together initiative enables us to mobilize customers, our store teams and affiliated pharmacy networks around a common purpose, and to make a difference in the many communities in which we operate in Quebec, Ontario and New Brunswick. This inaugural edition allowed us to bring together all our banners for the very first time, in our three provinces of activity, to serve a shared cause.”

METRO

P&G CANADA

Metro’s first company-wide fundraising campaign, Healthy Together, raised $2.2 million to help fight food insecurity. It was all thanks to the generosity of Metro, Food Basics, Super C, Première Moisson, Adonis, Jean Coutu and Brunet customers, who were invited last November and December to add $2, $5 or $10 to their bill.

Metro donated an additional $550,000 to

A few years back, P&G’s Pampers brand partnered with neonatal intensive care unit (NICU) nurses to develop a special diaper for preterm babies weighing as little as one pound, the first major diaper brand to do so. To mark Prematurity Awareness Month in 2020, the company donated $200,000 in NICU technology grants. One year later, the company

KRUGER PRODUCTS, LACTALIS CANADA

Kruger Products is making hockey more accessible to Canadians through its Kruger Big Assist program, which removes barriers to participation in the sport.

Since 2020, the program has committed more than $600,000 to address issues such as declines in registration, a lack of inclusivity and to welcome new immigrants to the sport.

“Sports play an important role in building healthy and happy communities and, when it comes to hockey, we believe every assist counts both on and off the ice,” says Susan Irving, the company’s chief marketing officer. “Our mission to make everyday life more comfortable for Canadians is reflected in the Kruger Big Assist, which underscores our commitment to continue helping more families have access to Canada’s game.”

This year, six Canadian minor hockey associations each received $25,000 Kruger Big Assist donations to subsidize player enrolment fees for those in need.

Recipients were also invited to apply for the Second Assist, a $50,000 grant that recognizes the importance of diversity, equity and inclusion in hockey.

The 2023 Second Assist recipient, the Flin Flon Minor Hockey Association, is using the grant to create an inclusive environment in which all children can participate to the best of their abilities.

The association is also encouraging young Canadian immigrants and local Indigenous communities to play hockey.

2023 IMPACT AWARDS

Throughout the year, Vancouver’s Stong’s Market supports deserving local organizations in a variety of ways including fundraising, event sponsorship and donations

launched a Preemie Family’s Mental Health Awareness campaign to shed light on the struggles experienced by some families of preterm babies. The campaign has become a multi-year effort, with donations to Canadian Premature Babies Foundation (CPBF) and Préma-Quebec. Pampers has donated $40,000 to provide 100 families with therapy sessions.

P&G continues to build on its work to support preemie families. In partnership with Walmart Canada, it is donating to the two organizations for every Pampers Swaddlers diaper pack sold at Walmart during campaign periods.

“As an aunt to preemie twins, I have witnessed first-hand how important it is to support parents of premature babies,” says Irena Kahn, brand director, Pampers Canada. “I am so proud of this long-standing Pampers program, in partnership with Walmart, that has donated over $240,000 and more than 200,000 diapers over the past four years to support families of premature babies across Canada.”

STONG’S MARKET

SAVE-ON-FOODS

In 2022, Save- On-Foods successfully raised $1.5 million for five children’s hospitals across Western Canada through its partnership with Funding Innovation and the Art Easel Program. “Save-OnFoods has been a huge supporter of children’s hospitals for decades and the Art Easel Program was a great opportunity to magnify our impact on Western Canadian families’ lives,” says Heidi Ferriman, senior vice-president of people and corporate affairs. Through this program, retail partners display art easels with Canadian-made prints for customers to purchase in silent auctions. At least

75% of net proceeds from each sale are donated to charity. Clown therapy, music therapy, vital research and urgently needed equipment are among the children’s hospital initiatives supported by the program.

Save-On-Foods has been one of Art Easel’s leading retail partners since 2016, expanding the program to 147 of its grocery stores across Western Canada. “The Art Easel Program is turnkey for retailers, and simple for our customers. Each month there is a new and unique art print displayed in store that appeals to our very diverse customer base,” explains Ferriman. “Our regular shoppers love bidding on interesting art prints, while at the same time giving back to their communities in a quick and easy way.”

SOBEYS

In 2020, Sobeys made a commitment to child and youth mental health by creating the “Family of Support: Child and Youth Mental Health Initiative,” and launched its inaugural partnership with The Sobey Foundation and Canada’s Children’s Hospital Foundations (CCHF).

The partnership, developed alongside Canada’s 13 children’s hospital foundations, invests millions of dollars and raises awareness for early interventions in mental health treatment. To date, more than $12 million has been raised and donated, 36 new treatment spaces have been created, 7,000 health-care providers have been trained, and more than 20,000 mental health assessments have been completed.

“Early intervention and access to mental health support gives children and youth the best possible chance to thrive,” says Sandra Sanderson, chief marketing

officer for Empire Company. “We are proud of the impact Family of Support has had to date through the combined efforts of generous Canadians, our fellow teammates, and 13 children’s hospital foundations. Together we will continue to decrease stigma, increase early access to support and help address the local mental health needs for kids across the country.”

As part of the annual Family of Support campaign in 2022, Sobeys shared the inspiring stories of six patient ambassadors who received early intervention support funded by Family of Support.

The company also created the TV spot “Clear the Clouds,” which showed how mental health challenges can start small, but don’t always stay that way. Customers were invited to support the initiative by donating in-store across Sobeys grocery banners. Over a two-day period in August, the company matched in-store customer donations, donating an additional $210,000. In total, the grocer raised $2.1 million to support early intervention programming for children and youths.

STONG’S MARKET

Since its opening in 1931, Stong’s Market has been committed to supporting local communities and charities in Vancouver.

“Getting to develop friendships with wonderful people and organizations within our community is a privilege,” explains Tamsin Carling, marketing director for the indie grocer. “Giving back to people who live and work in proximity to our Stong’s Market locations is important to us and builds a strong association with our stores.”

Throughout the year, Stong’s supports local organizations through checkout fundraising campaigns, product and monetary donations, event and youth sport sponsorship, as well as bulk gift card and school rebate programs.

Highlights of Stong’s Market’s recent charitable contributions include the donation of more than $75,000 to date to Canuck Place Children’s Hospice; and in the 2021/2022 school year alone, the grocer helped raise more than $21,000 for local Parent Advisory Councils through its online grocery order school rebate program. Stong’s also partners with Food Stash Foundation to redistribute perishable food nearing expiration to Vancouverites facing food insecurity. CG

August 2023 || CANADIAN GROCER 59

Grand Prix Winners

Grand

STANDINGS A look at the most notable new food and consumer goods products launched in the Canadian market in 2022

FROM EASY-to-prepare breakfast bites to easy-to-cook curry kits and meal helpers, the winners of the Retail Council of Canada’s (rcc) 30th annual Canadian Grand Prix New Product Awards embody what consumers are seeking today: convenience, quality and value.

“This exceptional line­up of new items reflects a growing alignment between product developers and the voices of consumers,” said Diane J. Brisebois, president and ceo of rcc, in a press release.

Here’s a look at this year’s winners:

NATIONAL BRANDS FOOD Beverages A. LASSONDE || Simple Drop Enhanced Water Beverage

Fruit, Vegetable & Produce (Fresh/Refrigerated or Frozen) ARCTIC GARDENS || Roastable Market Harvest

Bakery Fresh/Par-Baked BIMBO CANADA || Dempster’s Zero Zero Bread

Baking Needs & Dried Bakery CORA || Cora Crepe Mix

Dairy (Milk, Yogurt, Cheese & Spreadables) FINICA FOOD SPECIALTIES || Sheep’s

Milk Cheese

Snack (Savoury) NATURALLY HOMEGROWN FOODS || Hardbite Rugged

August 2023 || CANADIAN GROCER 63

At Metro, we strive to offer high quality, innovative products that keep up with consumers’ evolving needs. That’s why we are so proud of our 11 private brands innovation awards, adding a little more value to your offering, more unique and relevant than ever.

Exclusively* at Metro, Super C, Food Basics, Jean Coutu and Brunet.

*DEPENDING ON IN-STORE AVAILABILITY.

Grand Prix Winners NATIONAL BRANDS FOOD

NATIONAL BRANDS NONFOOD

continued

Frozen or Refrigerated Prepared Foods & Entrees OGGI FOODS || Four Cheese Tortellini Pasta

Condiments & Sauces PATREATS || Infus'd Fruit Gourmet Spread

General Merchandise CARLTON CARDS || Magic Moments Birthday

Confectionery & Shelf Stable Desserts PURDYS CHOCOLATIER || Vegan Hawaiian Black Salt Caramels

Health Care – Over the Counter JOHNSON & JOHNSON || Children’s Tylenol Easy Dissolve Powder, 16 Packs

Deli Meats & Cheeses QUALITY CHEESE || ­

Household Products

Stracciatella

Meat, Egg & Seafood (Fresh/Refrigerated or Frozen)

PRELAM ENTERPRISES || EZ Pur Eco Concentrated Laundry Detergent

ROSSDOWN FARMS & NATURAL FOODS ||

Appliance & Cookware

Shelf Stable Prepared Foods & Entrees

Health Care – Oral Hygiene

SODASTREAM || Soda­Stream Art Sparkling Water Maker

Marinated Meal Helpers

THE SPICE TAILOR || The Spice

Tailor Asian Curry Kits

SUNSTAR AMERICAS || GUM Dual-Defence Twisted Floss

Snack (Sweet)

Pet Needs

THREE FARMERS FOODS || Dark

THE J.M. SMUCKER COMPANY || Nature’s Recipe

Chocolate Roasted Chickpeas

Premium Paté Recipes

Desserts (Fresh, Refrigerated, or Frozen) TIM HORTONS || Tim Hortons

Ice Cream

Special Awards Innovation & Originality CANADIAN TIRE || Paderno

Innovative Packaging METRO || Advent Calendar

Signature 10-Piece Stacking Stainless Steel Cookware Set

All Canadian

Overall Consumer Value

Excellence in Ethnic Products

FINICA FOOD SPECIALTIES ||

THE SPICE TAILOR || The

Sheep’s Milk Cheese

METRO || Irresistibles Ice Creams

Spice Tailor Asian Curry Kits August 2023 || CANADIAN GROCER 65

NEW PRODUCT AWARD WINNER

Whey Protein Powder Concentrate • Made in Canada • Non-GMO certified • 24g protein per serving • Vegetarian • Source of calcium • Natural flavour

To find a Rexall location near you, visit Rexall.ca

Grand Prix Winners

PRIVATE LABEL FOOD Beverages FARM BOY || Farm Boy Organic

Flavoured Sparkling Water Snack (Sweet)

LONGO BROTHERS FRUIT MARKETS || Longo's Candied

Fruit, Vegetable & Produce (Fresh/Refrigerated or Frozen) PATTISON FOOD GROUP || Only Goodness Smoothie Blend with Dragon Fruit, Pineapple, Mango and Sliced Bananas

Almonds

Snack (Savoury)

Deli Meats & Cheeses

PATTISON FOOD GROUP || Western Family

LONGO BROTHERS FRUIT MARKETS || Longo's Curato

Uno Spuntino

Confectionery & Shelf Stable Desserts METRO || Irresistibles Advent

Spicy All Dressed Flavoured Kettle Cooked Potato Chips Meat, Egg & Seafood (Fresh/Refrigerated or Frozen) PATTISON FOOD GROUP || Western Family

Calendar

4 Cheese Breakfast Bites

Desserts (Fresh, Refrigerated, or Frozen)

Baking Needs & Dried Bakery

METRO || Irresistibles Ice

Creams

Desserts (Fresh, Refrigerated, or Frozen) METRO || Irresistibles Plant-

Based Frozen Bars

SOBEYS || Compliments Baking Chips

Frozen or Refrigerated Prepared Foods & Entrees SOBEYS || Panache French Onion Soup Bites

Shelf Stable Prepared Foods & Entrees METRO || Life Smart PlantBased Sauces

Dairy (Milk, Yogurt, Cheese & Spreadables) METRO || Irresistibles Probiotics Yogurts

Bakery Fresh (Par-Baked) METRO || Irresistibles Raisin Loaf

Condiments & Sauces PATTISON FOOD GROUP || Only Goodness Plant-Based Almond Dip Garlic & Herb

August 2023 || CANADIAN GROCER 67

Grand Prix Winners

PRIVATE LABEL NON-FOOD

Personal Care

General Merchandise

CALGARY CO-OPERATIVE ASSOCIATION ||

Cal & Gary's Bar Soap

MASTERMIND TOYS || Mastermind Toys DIY Fort Construction Set

Appliance & Cookware

Hair Care

CANADIAN TIRE || Paderno

Signature 10-Piece Stacking Stainless Steel Cookware Set Home Improvement & Maintenance CANADIAN TIRE || Stainless Steel Patio Heater

METRO || Personnelle Nature's

Secrets Repairing Shampoo Health Care – Oral Hygiene METRO || Personnelle Whitening Mouthwash

Paper, Plastic & Foil

Household Products

METRO || Selection Eco Compostable Sandwich Bags

FEDERATED CO-OPERATIVES || Co-op Gold

Health Care – Over the Counter

Baby Care

Protein Concentrate Powder

Multi-Purpose Cleaner MASTERMIND TOYS ||

Mastermind Toys Baby Stacking Wave Puzzle 8 Pieces

REXALL PHARMACY GROUP || Be Better Whey

Pet Needs PET VALU || Performatrin Ultra Freeze-Dried Raw Bites

#1

VOTED*

Only the best* for your little one

*Best New Product for Children's Pain Medication in a 2023 BrandSpark® survey. The Best New Product Awards logo is a trademark of Best New Product Awards Inc., used under license. The Canadian Grand Prix New Product Awards are a registered trademark owned by the Retail Council of Canada. IMPORTANT: Take ONLY ONE medicine containing acetaminophen at a time. To be sure any of these products are right for your child, always read and follow the labels. © Johnson & Johnson Inc. 2023

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PRODUCTS || STORE OPS || CUSTOMERS || TRENDS

PLANT-BASED FOOD TRENDS

SHUTTERSTOCK/ANTONINA VLASOVA

ROOM TO GROW Though interest in some categories has waned, innovation continues to power the plant-based food movement

By Matt Semansky

Plant-based meat and dairy alternatives continue to pique the interest of consumers in Canada and around the world. With benefits—real and perceived—to individual health, animal welfare and the environment, plant-based products have captured a higher percentage of market share in recent years.

As for the future of plant-based food, however, predictions vary. Statistically speaking, the outlook is bright, with the Business Research Company expecting the value of the global plant-based market to rise from US$44.5 billion in 2022 to $50.4 billion in 2023. The firm, which predicts this number will rise to $82.1 billion by 2027, also reports that North American consumers are leading the charge.

However, there are reasons to serve this optimism with a side of caution. Over the past year, for example, Beyond Meat—whose products have

August 2023 || CANADIAN GROCER 71

served as an entry point into the world of meat alternatives for countless consumers—has seen its stock prices drop precipitously, with the company itself citing pressures ranging from inflation to insufficient consumer demand. Maple Leaf Foods, meanwhile, blamed lower-than-expected sales when it cut its plant-based division, Greenleaf Foods, by 25% in August 2022.

Are developments such as these a harbinger of a society losing its appetite for meatless? Given the statistical projections and the number of new companies and products in the sector, it appears more likely that the plant-based market might just be navigating some growing pains.

Jo -Ann McArthur, president and founding partner of Nourish Food Marketing in Toronto, says the industry has struggled to communicate the needs that plant-based alternatives are meant to address, and for whom. Carnivores looking to cut down on meat fit a different profile than committed vegetarians, after all, and a wide variance of motivations are in play even within these groups.

McArthur and Joel Gregoire, associate director of food and drink at Mintel, both indicate that plant-based consumers skew younger, a cohort that tends to list sustainability and environmental reasons for reducing meat consumption. Older purchasers are more likely to indicate health as a reason for shifting their eating habits towards “flexitarianism.” New Canadians are also highly represented among plantbased purchasers, with many bringing traditionally vegetarian diets with them from their cultures of origin.

Each one of these consumer groups, to varying degrees, has reason to seek out plant-based foods and beverages. But whether their initial trials evolve into long-term habits remains to be seen. “You might have a plant-based burger at a barbecue,” says Gregoire, “but are you going to do that all the time?”

As McArthur and Gregoire put it, carnivores—even those who are looking to cut back on meat-eating—tend to circle back to animal protein for its flavour, especially given that the cost and health advantages of plant-based products are, in many cases, negligible. For vegans and vegetarians—approximately 7% of the Canadian population, according to Mintel—food that mimics meat is inherently less appealing.

“I talk to our customers and they’re 72 CANADIAN GROCER || August 2023

not looking for something that tastes like meat,” says Robert Mayer, creative director at Toronto-based restaurant and menu consulting firm Gemaro Solutions, and a chef with more than 25 years of experience in the food industry. “People want whole ingredients, rather than ingredients that have been beaten down (and processed) until they taste like something else.”

Skepticism aside, there is no shortage of ideas and products in the plant-based pipeline. These are the innovations the industry is counting on to deepen the roots of plant-based foods and beverages.

HYBRID AND CELL-BASED PRODUCTION McArthur sees hope in the emerging trend of hybrid products that blend meat and plant proteins. This production process, she says, has the potential to reach the significant number of consumers who crave the authentic taste of meat, but also want to reduce, at least to some extent, their environmental impact. Earlier this year, for example, Saba Fazeli, Beyond Meat’s first R&D engineer, launched Momentum Foods and its branded extension, Paul’s Table, a venture anchored in hybrid production. “I think we might see that make plant-based more accessible to people,” McArthur says.

SHUTTERSTOCK/ANTONINA VLASOVA

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Aisles Mintel’s Gregoire, meanwhile, points out that many plant-based products such as almond milk, use a large amount of water or other environmental resources in their production, offsetting the benefits of bypassing animal agricultural processes. Creating food through the laboratory replication of plant cells, while hardly au naturel, grapples with this issue. “If the environment is a concern, the cell-based products take care of that because they don’t use a lot of fossil fuels or natural gas or what have you,” he says.

BEYOND THE BURGER Consumers’ dalliances with plant-based meat alternatives such as burgers may be on the wane, but the menu continues to expand.

“Plant-based foods and beverages taste substantially better than they did when they were first introduced to the marketplace, and there are an abundance of options in many different categories,” says Digs Dorfman, CEO of the Toronto grocery retailer The Sweet Potato.

Among the most notable recent trends, he says, is the rise of seafood alternatives offered by companies such as Good Catch. “There are a lot of plant-based seafood options, and there were virtually none five years ago,” he says.

Grant Daisley, senior local forager at Whole Foods Market Canada, echoes this sentiment. “Seafood is seeing an increase

in plant-based offerings, which includes a variety of tastes and textures as part of a packaged meal or as a single ingredient,” he says. “Konscious Foods’ Plant-Based California Rolls, made with the root vegetable konjac, and Save da Sea Plant-Based Smoked Salmon, made from carrots, are a couple of examples of this we’re seeing.”

Both Dorfman and Daisley also note the increased presence of plant-based condiments and flavour enhancers, such as Humble Seedz Saucy Dipz, which are made from sunflower and buckwheat seeds. Dairy-free cheeses, including specialty-style cheese, is also beginning to penetrate the market.

Food manufacturers ranging from large producers like Conagra Brands to newer entrants like Green Bowl Foods are getting in on the action. According to Paul Hogan, vice-president and general manager, Conagra Brands Canada, the company’s Gardein line of plant-based foods continues to add new offerings.

“We are especially proud of our Gardein Suprême lineup and the new Gardein Suprême Chick’n Filets, Gardein Suprême Chick’n Nuggets, and Gardein Suprême Saus’ge Links, which are launching later this summer,” he says.

Conagra is also responding to changing population trends by adding fare inspired by global cultures. “Newcomers are leaving a mark on their communities and spreading more awareness of global foods

and flavours,” says Hogan, who points to the expansion of Gardein’s offerings to include black bean and falafel burgers.

Max Jamshidian, founder and CEO of Green Bowl Foods, touts the convenience and sustainable production techniques that go into his company’s plant-based products. Green Bowl upcycles food by-products to create meals that appeal to customers’ ethics, health interests and time constraints. “This unique method not only addresses the pressing issue of food waste,” he says, “but also results in high-quality, shelf-stable products that are rich in fibre and nutrients.”

And more producers continue to enter the market. By the fall, Plantropy’s line of frozen jackfruit-based nuggets, meatballs, kebabs, breakfast sausages and other offerings will be launched into grocery stores in Canada. “People had been working with jackfruit for about five years, but no one had made it convenient,” says Eric Hart, a lead executive at Plantropy. “That’s the need we saw.”

Other ingredients that are trending upward in plant-based food production include kelp and seaweed, cashews, oats and mushrooms. These ingredients, and the products derived from them, may or may not capture taste buds and dollars—but the sheer volume of players and innovative ideas in the space suggests the seeds of plant-based eating will continue to grow for years to come.

GETTY IMAGES/AAMULYA

PLANTING THE SEEDS FOR SALES GROWTH JO-ANN MCARTHUR of Nourish Food Marketing, believes retailers are among many food industry players that can do more to maximize plant-based products. “I don’t see a lot of shopper solutions,” she says. “Make it easy and call out the benefits.”

McArthur does see opportunity in basing meal kits—which grocers have had success with—around plantbased foods. She adds that plant-first consumers gravitate towards shopping online, suggesting that retailers would do well to strengthen their

presence in the digital space.

To educate consumers, grocers must first educate their front-line employees about the value of plant-based foods.

“Front-line staff being well informed is key,” says Robert Mayer of Gemaro Solutions.

In addition, Mayer says, merchandising products effectively is equally important.

“You need to have signage in place, and make it look good, and make it clear what it is.”

Manufacturers and retailers are working together and heeding the call. “We will do Q and As with category

managers, visit as many stores as possible and speak to department heads,” says Plantropy ‘s Eric Hart of the company’s plans for its launch into Canadian grocery stores.

“We’re increasing our investment in modern, in-store marketing at the point of purchase, particularly in the plant-based and frozen categories,” says Tim Lute, vicepresident, commercial strategy, insights and transformation, Conagra Brands Canada.

“One of the ways we’ve done this is through enhancing our shopper marketing campaigns.

Standard retailer-specific tactics like endcaps, in-store blades and in-app offers are part of the campaign, alongside keywordtargeted ads.”

August 2023 || CANADIAN GROCER 73

SWEET EMOTIONS

More than just a treat, consumers are turning to chocolate to boost their mood By Chris Powell WE LIVE IN DIVISIVE TIMES, but it seems the one thing just about everyone can agree on is chocolate.

The average Canadian eats about 6.4 kilograms of chocolate per year, or the equivalent of 160 bars, according to the Inter-American Institute for Cooperation on Agriculture.

In a September 2023 survey of 2,000 adults, Mintel Canada found 86% of respondents had eaten some chocolate in the last three months. But, after rising during the pandemic, year-over-year chocolate consumption remained relatively flat—with most respondents (60%) indicating they were eating about the same amount as they did the previous year.

Among the 21% of respondents who are eating less chocolate, many cited a desire to moderate their sugar intake as the primary reason. “The challenges for the confectionery industry are really around health,” says Joel Gregoire, associate director of food and drink at Mintel.

Working in chocolate’s favour, he says, is that people continue to turn to it for an emotional lift. When asked if they agreed or disagreed with the statement that it’s good for someone’s mental health to indulge occasionally, an overwhelming majority of respondents (92%) agreed.

“Chocolate may not be good for the belly, but it can help soothe the soul,” says Gregoire, citing a line from the study. “More than any other stat in this report, that 92% crystallizes there’s a time, a place and a benefit to indulging from time to time.”

Not even a recent sharp rise in cocoa prices, and a corresponding price increase at shelf level, has been enough to turn consumers away, says Jo-Ann McArthur, president and founding partner of Toronto consultancy Nourish Food Marketing.

In fact, she says, consumers are willing to pay more for what many consider an emotional reward.

And unlike other food indulgences, even expensive 74 CANADIAN GROCER || August 2023

chocolate is within the grasp of most Canadians.

“Permissible indulgence, the lipstick effect, or revenge living—take your pick,” says McArthur.

“Emotional health is part of the whole health definition now, and consumers continue to want those affordable indulgences.”

Brands have been quick to seize on that emotional aspect. A U.S. brand called Moodibar, for example, has created a line of chocolate bars catering to different mood states. They include the “Blah” bar (which lists “gooey caramel” as its primary ingredient), as well as “Hungover” (toffee, pretzel, sea salt, milk chocolate) and “Grumpy” (54% dark chocolate).

Global chocolate sales are expected to reach US$128 billion this year, according to Euromonitor International, with volume growth of 1.9% per year through 2025. Innovation is expected to play a key role in category growth, as new consumer attitudes— particularly among younger generations—require a new approach from manufacturers.

Barbara Cooper, marketing director at Mars Wrigley Canada, says today’s snacking trends are changing at “warp speed.” “Given the enormous disruption we have all experienced in the last few years, it’s more important than ever that we accelerate pace of change and find innovative ways to reach consumers, particularly gen Z,” she says.

This has led to line extensions within the major confectionery manufacturers. Mars, for example, launched Mars Bar Cookie Dough flavour, and Nestlé’s line of Aero Truffle bars includes such flavours as chocolate mousse, tiramisu, black forest cake and Nanaimo bar.

Recent years have also seen the chocolate category diversify to meet the needs of health-conscious consumers, as well as people seeking more ethical treats that aren’t derived from animal-based products or controversial resources such as palm oil.

Nestlé created a vegan version of its KitKat candy bar in 2021 and, earlier this year, Camino launched two plant-based options made with oat milk: Hazelnuts & Salted Caramel and Creamy Chocol-oat.

Interestingly, when asked which options for chocolate and candy they’d be interested in, only 9% of respondents said vegan chocolate, according to Mintel’s study.

The top area of interest? Resealable packaging, cited by 47% of respondents. It’s something that addresses consumer demand for both snacking in moderation and greater value, says Gregoire.

Nourish’s McArthur says consumers prefer smaller portions rather than eliminating real sugar because it possesses certain traits—taste, texture, mouth feel, etc.—that artificial sweeteners can’t replicate.

The emphasis on smaller portions is good for manufacturers since chocolate is a category often accused of shrinkflation. The trend dates to before the pandemic, but seems to have accelerated amid the rising cost of raw goods.

SHUTTERSTOCK/BAIBAZ

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SHUTTERSTOCK/XPIXEL

1 FLAVOUR OF FALL

If autumn has an aroma, pumpkin spice is it. What’s curious about pumpkin spice is the absence of pumpkin in it! The blend of cinnamon, nutmeg, ginger and allspice (or some variation of these), got its name for being used in fall baking recipes such as pumpkin pie.

The fruit—yup, pumpkin is a fruit—is rich in potassium and vitamins A and C. Many pumpkin spice products outside of pies and muffins now include the fruit as an ingredient, usually in purée form.

Califia Farms, for instance, uses pumpkin purée to make its dairy-free, plant-based pumpkin-flavoured products including Pumpkin Spice Latte, Pumpkin Spice Creamer and Pumpkin Spice Oat Barista.

“Pumpkin and spices like cinnamon and nutmeg trigger positive vibes associated with the changing of the seasons,” says Suzanne Ginestro, chief marketing officer for California-based Califia Farms, of the flavour’s popularity.

Pumpkin spice Four things to know

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3 BEYOND BAKERY From 2008 to 2022, four in five pumpkin spice-flavoured food and beverage product launches were from North America, with baked goods making up 29% of them in 2022, according to a June 2023 report from Innova Market Insights.

That was followed by dairy

By Chris Daniels and hot beverages (13% each), soft drinks (10%), alcoholic beverages (9%), cereals (8%), desserts and The global 2 OH MY GOURD! cream (7%). pumpkin spice iceWhile The pumpkin spice every fall, The craze is going strong market is expected Big Carrot bakes and showing no signs to be worth US$2.4 pumpkin spice of slowing down. Future muffins and cookies Market Insights pegs its billion by 2033: in-store, the hot items market value at US$1.5 Future Market are cereal, yogurt billion and estimates it to Insights and granola, says the top $2.4 billion by 2033.

Popular brands in Canada Toronto grocer’s operations with a seasonal pumpkin manager John Gousvaris. spice flavour are seeing “The appetite for pumpkin annual growth. Since its spice has extended well 2018 debut and return to beyond just the baking Canadian shelves every category,” agrees Lu Ann autumn since, limitedWilliams, global insights edition Pumpkin Spice director at Innova Market Cheerios (PSC) has grown Insights. “From snack mixes 17% year-over-year, says and ice cream to baby drinks Zack Bloch, associate brand manager, Cheerios and alcoholic beverages, the at General Mills. “PSC is market globally has been our most popular limitedseeing a lot of innovations edition product.” (Other with pumpkin spice flavour seasonal General Mills from various subcategories.” staples include HalloweenAmong the 2023 launches themed Count Chocula in Canada, the Innova report and spring/Easter-themed highlights Pumpkin Spice Reese’s Puffs Bunnies.)

Cappuccino Blend Powdered Mix For Breastfeeding Moms from Saskatoon-based nutritional brand Milkin’ More.

4 AUTUMN IN AUGUST Halloween treats won’t be the only products hitting store shelves before fall’s official start on Sept. 23. Pumpkin Spice Cheerios has been launching “earlier over the past few years so the item can hit the shelf prior to September,” says Bloch. “It allows our grocers a longer period to build awareness.”

Ginestro of Califia Farms agrees that pumpkin spice season starts in August, “and we

continue to see strong sales through December.” This year, the company is partnering with Sobeys and Loblaws on a national program to create “a dedicated perimeter display for the season to bring more visibility to this growing category.” Pumpkin Spice Oat Barista, which doesn’t require refrigeration, “will be found on endcaps,” she says. “It’s a new point of interruption to engage consumers and help drive trial.”

August 2023 || CANADIAN GROCER 75

Presented by

Featuring these great speakers:

Keynote Speaker Brenda Kirk

Panelist Randa Hassanie

PATTISON FOOD GROUP

TREE OF LIFE CANADA

Panelist Karen White-Boswell

Panelist Lori Verna

Panelist Julie Filipuzzi

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New on shelf!

1 FLAIR CIDER COCKTAIL Combine cider with flavours inspired by classic cocktails and you’ve got some Flair!

This line of ready-to-drink hard beverages— available at grocery retailers across Ontario— includes Peach To My Bellini (sweet peach flavour), Ms. Sour Rita (sour lemon and lime flavours with a hint of salt) and Ginger Mule (sharp ginger notes and a hint of lime). The new SKUs join Los Sangria (a fruity cider blended with grapes and berry juice), which launched last year.

2 AMY’S KITCHEN MAC & 3 CHEESE BOWLS Made with organic cauliflower, gluten-free rice pasta and a signature three cheese sauce—a blend of cheddar, Monterey jack and parmesan—Amy’s Kitchen Mac & 3 Cheese Bowls are tree nut-free, soy-free and kosher.

They can be found in the freezer section at major food retailers and independent natural health food stores across Canada.

3 NOTCHICKEN There are new nuggets, burgers and tenders in town and they’re NotChicken! These frozen, plant-based alternatives are nonGMO, cholesterol-free and formulated using a combination of such ingredients as peach, bamboo fibre and fava bean. NotChicken products are made in Canada and are available at grocery stores across the country.

Aisles The latest products hitting shelves

1

2

3 4

4 SACHILI GOURMET VEGAN POPCORN Sachili, a Canadian maker of infused chili toppings and spices, is getting into the snack space with the launch of its vegan, gluten-free popcorn in two flavours: Savoury Superfood (coated with a blend of chia seeds, goji berries, ginger, pomegranate and moringa) and Savoury Chili (flavoured with the brand’s original chili spice topping).

5 ESSENTIA WATER Essentia Water, a brand of bottled ionized alkaline water that launched in the United States more than two decades ago, has made its way to grocery store shelves in Ontario. Using what the company calls a “proprietary ionization process,” Essentia delivers water with a pH of 9.5 or higher and a clean, smooth taste. It’s sold individually in 1-litre bottles or cases of 12. CG

5 August 2023 || CANADIAN GROCER 77

Express Lane

EQUAL OPPORTUNITIES

Driving organizational change in DE&I requires C-suite buy-in, employee feedback and moving beyond the status quo

By Kristin Laird

Over the past few years, organizations have taken steps to build DE&I into their policies and hiring practices. Overall, how successful have they been in moving the needle in a positive direction?

I think some have [been successful]. You have organizations having the conversation and they do have a DE&I policy in place, but they don’t necessarily put it into practice—it’s not a part of the day-today. Some companies are starting the conversation, some are now looking at their policies with an equity lens and they’re updating it. You also have organizations that haven’t even started the conversation. I think progress or success must be defined based on where each organization is on the human equity continuum, which they must define for themselves.

But, any organization having a conversation with racial equity as a starting point has begun the journey of success. And, of course, the conversation needs to lead to action. Action is where it’s at.

78 CANADIAN GROCER || August 2023

Which areas are in need of improvement?

I would still say it’s racial equity. Organizations, individuals, leaders are still afraid to have the race conversation. As much as we talk about Canada being the most diverse—and we have a lot of the ingredients to be best in class in terms of what belonging can look like—we’re far from this. We still haven’t acknowledged the genocide of Indigenous Peoples. So, we still have a lot of work to do. But, if we start having the conversation around the genocide of Indigenous Peoples, if we start the conversation around racial equity, it’s a good indication we want to do the work.

When you look at the Truth and Reconciliation report, the action steps are there.

We should have 100% implementation and success markers from that action plan. That would’ve been a good place to start, but we’re still debating lived experiences. When we to try to figure out who deserves full humanity and who doesn’t, we move further behind. Also, for organizations that have updated or changed their policies, my question always is: Have you operationalized that policy? Because a policy on paper does not necessarily mean there will be a cultural shift.

How can a company bake DE&I learning into the culture day-to-day rather than peppering it throughout the year?

That is where everything comes to the table: your programs, policies, procurement process. Where do I go to source suppliers? Is it always the same circle?

This is where disrupting that status quo in terms of your policies and practices comes into play. Maybe you need to add

more groups to the table. Are you hiring from the same schools?

You need to have some learning opportunities, which could be watching a film together, having a discussion guide and embedding the learning throughout.

What conferences are your staff going to? Who are you hiring for culture days or empowerment sessions? If you look at the employee experience, your products, your services, there are ways organizations can embed that learning through a cultural equity lens and this will help shift the status quo.

How should companies with office and front-line staff approach DE&I? Every individual can contribute towards cultural norms in the workplace, but research shows we look up to those in power. So, when you look at your C-suite leaders, who are the people having the conversation on diversity, equity and inclusion? How are these leaders demonstrating their commitment to human equity? If leaders have an opportunity to shift the equity status and they’re not doing it, they’re simply upholding the status quo and I would say those leaders are failing the front-line and office staff.

Also, do your front-line employees feel safe to speak up? Will their feedback be weaponized against them, or will they be heard? And are you equipping your leaders with the right skills, the right tools and the right community of support to lead their teams to success? CG FOR MORE Q&A WITH KARLYN PERCIL-MERCIECA VISIT CANADIANGROCER.COM

JELANI LE’BOURNE

THOUGH CORPORATE Canada has been embracing diversity, equity and inclusion (DE&I) practices on a grander scale in recent years—in the face of widening public conversation about race and justice— there’s still work to be done to bridge the gap between rhetoric and reality. We chatted with Karlyn Percil-Mercieca, CEO of KDPM Consulting Group—a Toronto-based firm specializing in leadership and DE&I, which counts RBC, Deloitte and Starbucks among its clients—on creating a company culture that promotes acceptance and belonging. This interview has been edited for clarity and length.

Grocery Connex Monday, November 20, 2023

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