July/August 2012 by Grocery Business

July | August 2012 Vol 2 | No 3 $9.95

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People • Products • Promotion • Passion

July | August, 2012 Volume 2, Number 3 www.grocerybusiness.ca Co-Publisher and Executive Editor Karen James 416-561-4744 KarenJames@grocerybusiness.ca Co-Publisher and Content Director Kevin Smith 416-569-5005 KevinSmith@grocerybusiness.ca Executive Vice-President Content and Market Development Dan Bordun 416-817-5278 DanBordun@grocerybusiness.ca Managing and Online Editor Noelle Stapinsky Contributing Editors Sally Praskey, Angela Kryhul Creative Agency Boomerang Art & Design Inc. Contributing Photographers Brien Pieters Subscription changes & updates or general inquiries: info@grocerybusiness.ca

Grocery Business Advisory Council Bill Dunne, Acosta Canada Phil Donne, Campbell Company of Canada John Scott, Canadian Federation of Independent Grocers Perry Caicco, CIBC World Markets Nancy Croitoru, Food and Consumer Products of Canada Tim Berman, Kraft Canada Inc. Mark Ayer, Procter & Gamble Inc. David Wilkes, Retail Council of Canada Cori Bonina, Stong’s Market Michael Marinangeli, MIDEB Consulting Inc. © Copyright 2012. All rights reserved. No part of this magazine may be reproduced without written permission of the publisher. GST Registration No. 83032 6807 RT0001 Publications Mail Agreement No. PM42211029 ISSN 1927-243X Grocery Business Media 390 Queen’s Quay W., PO Box 4085 Toronto, ON M5V 3A6

publishers’MESSAGE The newspaper headlines are stunning: 31,000 new retail jobs are being added as Target and Walmart ramp-up over the next two years. And while most of these new jobs won’t be in the grocery side of the business, the impact will reverberate throughout the entire retail sector. According to Keith Howlett, retail analyst at Desjardins Securities Inc., Toronto: “We’re in a period of great dislocation… it’s going to be an extremely challenging time for retailers.” Howlett may be right. But still, when other sectors of the economy are struggling and tech giants like RIM and Rogers are managing declining workforces, it’s encouraging to note that retail is actually hiring, and even thriving. The engine of growth is always people and, as you’ll read in our cover story “Managing Millennials,” by Dr. Steven Stovall, employers must draw from the emerging pool of talent known as Millennials, or Generation Y. A unique workplace generation gap is developing as these young people – carrying career expectations shaped by seismic social forces – enter the workforce. Dr. Stovall’s article provides valuable insights into how to best manage the shifting employee/ employer dynamic you may already be experiencing in your company. And, just a reminder, to sign up for Grocery Innovations Canada, which kicks off October 1st at the Metro Toronto Convention Centre. It’s the 50th Anniversary of the CFIG, so this year’s event promises to be particularly memorable. karenjames@grocerybusiness.ca kevinsmith@grocerybusiness.ca Follow us on Twitter @grocerybusiness

Grocery Business July | August, 2012 Volume 2, Number 3

contents Departments

Publishers’ Message

Front End

13 Open Mike

Sell a dollar more!

14 CFIG 50th

Anniversary Profile

The Plouffe family of Farnham, Que.

35 6

July | August 2012

49 Shelf Life: Hair Care Trends 56 Launch It, List It 62 It Figures

Nielsen spotlights consumer shopping behaviour

64 Perry’s Point of View

The “buck” stops here

on the cover

25 Managing Millennials

39 58

features 16 Profile: Alimento

Grocery goes hip

19 Strategic Leadership: Yogourt 25 Managing Millennials

A cohort like no other

39 19th Annual Grand Prix

New Product Awards

Check out the 2011 award winners

47 Tough Times at Tesco

What went wrong at an icon?

58 Grocery Business Was There

58 Grocery Showcase West

59 78th annual Food and Allied Industries Golf Tournament

60 Glen Wilson Retires

29 Tea is Trending 35 Grocery Innovations

Canada Preview

50 Health

50 Health Check 53 Healthy collaboration 54 Snack Attacks

15 I Remember: Earl Near

Note Bene: Thanks to our millennial models, Meaghan and Adam

July | August 2012

Front End

Appointments Empire Company Limited and Sobeys have announced that Marc Poulin has been appointed president and CEO of Sobeys Inc., replacing Bill McEwan who recently retired. Poulin has held progressively senior leadership roles, most recently as president, Sobeys IGA Operations. Claude Tessier assumes the role of president, Sobeys IGA Operations in Quebec. Tessier joined Sobeys in 2003 as senior vice-president finance and strategic planning, Sobeys Quebec Operations. Dana McCauley is the new director, product development and innovation at Janes Family Foods. Metro Inc. has appointed Serge Boulanger – who has been with the company since 1996 – as senior vice- president, national procurement and corporate brands. In a related announcement, Marc Giroux, who joined Metro in 2009, was named vice-president and chief marketing and communications officer.

July | August 2012

Tom Shurrie was recently appointed executive vice-president and general manager, Ontario, for Acosta Canada. Shurrie’s career includes senior roles at Conagra, Parmalat and Longo Bros. Fruit Markets.

Paul Cussons (left) and Vincent van der Heijden were recently named as managers, client services, Canada at Advantage International. Cussons has a 10-year CPG background in analytical and key account management and van der Heijden has over six years in CPG key account management and supply chain analytic roles. David Sugarman has been appointed president and CEO of The Allan Candy Company. Sugarman has previously led Sabra Canada and Billy Bee Honey. Tony Allen is now business development manager for the Concord National Prairie Division team. Allen’s previous experience includes roles at Cyba Stevens Management Group and Parmalat.

Bianco and Magliocco to lead new Kraft business units Kraft Canada has named the executives who will lead the creation of two new companies: one a North American grocery organization, and the other a global snacks business. Dino Bianco, currently the president of Kraft Canada, has been named president of the new Canadian grocery company, which includes iconic brands such as Maxwell House and Kraft Salad Dressings. Bianco brings more than 22 years of marketing, strategy, finance and sales experience to the role. Dan Magliocco will lead the new snacks company in Canada, which includes the Biscuit and Cadbury Confectionery businesses. Magliocco, who is currently vice-president, strategy and growth and is leading the separation of the Canadian company and subsequent creation of two new companies, has more than 20 years of consumer packaged goods experience in marketing, consumer insights and strategy. The new grocery company will be headquartered on Moatfield Drive in Don Mills, Ont., while the snacks business head office will be located on Matheson Drive, in Mississauga, Ont.

Front End

Top executives named as

2012 Golden Pencil recipients Peter Singer, chairman of the Food Industry Association of Canada, recently announced this year’s recipients of the Golden Pencil Awards, the food industry’s most prestigious accolade.

Last year’s award recipients were Frank Coleman of Colemans Food Centres in Newfoundland and Phil Donne of Campbell Company of Canada.

On November 19, 2012 in Toronto, Les Mann, senior vice-president of foods and consumables at Walmart Canada, and Michael Higgins and Paul Higgins, CEOs of Mother Parkers Tea & Coffee, will be honoured with a Golden Pencil.

The 2012 awards ceremony will be held at the Royal York Hotel in Toronto. For ticket information contact Bill Sheine at sheine@rogers.com.

The Food Industry Association of Canada, which oversees the awards, reported that there was a record response in nominations this year. Recipients of the Golden Pencil Award are selected for their significant contributions to the Canadian Food industry. This year, Mother Parkers Tea & Coffee is celebrating its 100th anniversary. In fact, Paul Higgins Sr., Michael and Paul’s father, created the Golden Pencil Awards in 1957 to celebrate industry professionals improving Canada’s food industry.

Michael Higgins, Paul Higgins, Mother Parkers Tea & Coffee Mother Parkers Tea & Coffee Les Mann, Walmart Canada

The Canadian Federation of Independent Grocers

Names Four Recipients of the Life Member Designation The Canadian Federation of Independent Grocers (CFIG) recently honoured four grocery industry professionals with its prestigious Life Member Designation. The 2012 recipients are: Ernie Skinner of The Markets on Yates and Millstream; Glen Wilson of Crossmark Canada; Peter Singer of Thomas, Large & Singer; Yuri Stezenko of Quality Market. The recipients will be officially recognized on October 1, at Grocery Innovations Canada (GIC) 2012, during CFIG’s Luncheon of Honour, taking place at the Metro Toronto Convention Centre.

Ernie Skinner

Glen Wilson

Peter Singer

Yuri Stezenko

July | August 2012

Front End

UGI is celebrating its 40th year in 2012. Since its inception in 1972, the company has focused on

collaboration yielding exceptional results for both retailers and

Karen Kuwahara, President of Nestlé Purina Petcare Canada with Jeanne Beker.

vendors. Look for exciting news

about UGI’s anniversary celebraThe UGI team, from left to right: Shay Baksh, Rocco DiMascio, Denis Gendron, Anita Young, Kevin Hayes, Anna Wickens

tions in upcoming issues of Grocery Business.

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July | August 2012

Purina Animal Hall of Fame Honours the 2012 Inductees PawsWay Pet Education Centre in Toronto was the venue chosen to honour four intuitive pet inductees into the Purina Animal Hall of Fame. “Each year, we honour pet heroes and their life-saving acts. Our 2012 inductees struck us not only for their intuitive sixth sense related to life-threatening medical conditions, but also their incredible persistence to act on that intuition,” said Mary Siemiesz, executive director of the Purina PetCare Legacy. Nanook, a Siberian Husky; Bree, a two-year-old Dachshund; Titan, a German Sheppard; and Monty, a ginger tabby, all went above and beyond to protect the lives of those around them. To watch videos of this year’s inductee stories, visit www.youtube.com/PurinaAHOF Among the presenters were Tanya Kim, CTV’s etalk anchor, and Jeanne Beker, host of Fashion Television for 27 years.

Front End

BILL MCEWAN honoured with

Lifetime Achievement Award The Retail Council of Canada (RCC) has presented Bill McEwan, president and CEO of Sobeys Inc., with a Lifetime Achievement Award. “Over his 40 years in the industry, Bill’s visionary leadership, driven by his passion for the grocery business, has inspired all those who have had the opportunity to work with him,” says Diane J. Brisebois, president and CEO, RCC. “His business success is only exceeded by the inspiration and influence he has had on the countless individuals he has worked with throughout his career.” The Lifetime Achievement Award recognizes visionary senior executives with a minimum of 25 consecutive years of retail service, and who have demonstrated outstanding business success and community service throughout his/her career.

THE TOP 20 TECHNOLOGY-DRIVEN TRENDS FOR 2012

With speed-of-light changes affecting every facet of business, it’s important to stay ahead of the trends, says technology strategist, Daniel Burrus. Correctly managed, these game-changers could become your business’s competitive advantage.

Rapid growth of big data. Capture and utilize increasing streams of data using high-speed analytics

Smart phones/tablets become primary personal computers; mobile-web is musthave capability

Cloud computing/services. Public/private/ hybrid clouds will cut costs and functions

Tablet computers use enterprise level Web apps to transform sales and service

On-demand services to customize business and maximize return

10 Intelligent electronic agents use natural

Virtualization. Virtual storage, desktops, applications and networking increase processing power and allow mobile devices to access supercomputer capabilities

Consumerization of IT. Shared productivity will enhance consumer technology

Gamification of training and education. Game-like simulators and software make learning easier

Social business shifts "information" to "communication." Speak with, not at, your customers

language voice commands (electronic concierge/assistant)

11 Digital identity management allows users to manage multiple identities/businesses

15 Smart TV apps will create a major shift in home viewing

16 Multiple app stores create abundant

distribution and sales ecosystem (explosive growth)

17 3D displays for smart phones/tablets will drive 3D computing

18 eBooks, eNewspapers, and eMagazines pass the tipping point; eBook readers reach the masses

12 Visual communications will integrate with

19 Interactive multimedia eTextbooks free new

13 Enhanced location awareness apps take

20 Wireless machine-to-machine apps, such as

video conferencing, phones, tablets, television

geo-social marketing and sales to new levels

14 Geo-spatial visualization combines geo-

graphic info with location-aware data and other sensors

publishers to create compelling and engaging content

two-way meter reading, surveillance, vending machine and point-of-sale solutions, takeoff thanks to faster wireless data networks SOURCE: IDDBA Digest, June 2012; Burrus Research, Inc.

July | August 2012

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packaged goods, and supply chain executives from DuPont, Havi Global, Nestle, Procter and Gamble, Target, and Walmart and hear how these industry giants are leading the path forward to a more sustainable world.

Other important subjects include policy that is shaping the landscape; the Three Creators of Next Life Packaging Solutions will share their inspiring economics of green jobs and the future of the packaging Industry. solutions including Tom Szaky of TerraCycle who will demonstrate how Hear about best-in-class Sustainable Innovation of product and process from to outsmart waste; Ian Yolles of Recyclebank, who rewards you for your Paper, Plastics, Carton Council, Glass and Packaging Machinery leaders. waste and Rod Bryden, one of Ottawa’s foremost innovators who will share the Plasco story of converting municipal solid waste into an energyRegister online at pac.ca. rich fuel. Learn from the experts who are designing in end-of-life rather than sorting it out when it arrives at the recovery center. Join retail, consumer

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Open Mike

Sell a Dollar More! By Michael Marinangeli

Every time I read an article on the state of the food industry in Canada, there seems to be lots of doom and gloom about flat or declining comparable store sales, more unneeded square footage being added and relentless margin pressures.

“Sell a dollar more” is not about investing margin to

drive sales; it’s about having your employees engaged in

the business by delivering better and cohesive execution throughout all facets of your organization.

Walk around your stores and challenge yourself and

your staff on ways to increase your average transaction It’s not going to get any easier, so what are you doing to make sure that your business continues to grow

Walk around your stores and challenge yourself and your staff on ways to increase your average transaction by a buck every week.

and thrive?

In addition to attracting new customers, we all should

be working hard to sell more groceries to our existing

impactful displays and signage and strategically placed impulse items are good places to start. You already

have the customer in the store; help them plan their purchases by tying in related items.

In-store sampling works so why aren’t we doing more

customers and, in my experience, one of the most

of it? And it’s important to get a head-start on seasonal

driven staff.

really in the business and have all the key items priced

effective tools to accomplish this is through a salesSales-driven organizations will be the winners in the

coming years with store managers, department manag-

ers, clerks, cashiers, merchandisers, and distribution people

merchandising. Show your customers that you are

competitively. Seasonal merchandising isn’t a one-day event; plan and execute for the entire period.

With store and department managers quarterbacking

working as a team to grow the business.

the execution of the weekly offering and various

a simple objective for everyone to rally around, such as

goal of “Sell a dollar more” is easier to attain.

To keep the focus where it counts, why not start with

“Sell a dollar more” to each customer? If you can pull it Michael Marinangeli is a principal at MIDEB Consulting Inc., a founding member of the Grocery Business Advisory Board and a retailing veteran with more than 40 years of experience. mjmarinangeli@gmail.com

by a buck every week. Creative cross-merchandising,

off, the benefits are huge. The math is simple: If you

have 30,000 customers a week and you can increase

the average transaction size by a buck, your sales will

departments complementing each other’s efforts, the Head office and senior management can play a part by

spending more time visiting stores, and talking to the staff and customers about how to serve them better.

Continuously growing your sales is based on more

increase by $30,000 per week – very doable! The

than the occasional sales push. It has to be internalized

with no incremental cost. For larger chains, the rewards

the company to the clerk filling the shelves. Because if

profits on these sales all fall to the bottom line and are phenomenal.

into your organization’s DNA – from the president of you’re not growing, someone else is.

July | August 2012

CFIG 50th Anniversary Profile

Plouffe family delights in serving up

the unexpected

Daniel, Jean-Claude & Patrick Plouffe

By Sally Praskey

There is something special about being in a Plouffe family store. It’s more than the exceptional customer service that the friendly and skilled employees provide, or the charming and impeccably merchandised décor, or even the fresh and discerning selection of unique products. It’s the sensation that you are part of a phenomenon created by the people who bring it to life with one unified goal: to bring you the freshest, the best and the most delicious, with pride. The story began in 1955 when patriarch Jean-Claude Plouffe, a butcher by profession, and his wife Luce opened their first store in Farnham, a rural town an hour from Montreal. The humble 1,600-sq.ft. shop resembled a dépanneur, or convenience store, more than a supermarket at the time. In 1960, after it joined the Métro-Richelieu group, the store underwent its first of three expansions, followed by the construction of a new building in 1981. A complete overhaul in 1999 brought the surface area to its current 23,000 sq.ft.

“I had ambition from the very beginning, but I never thought at the time it would be as important an enterprise.” In 1985, with sons Daniel and Patrick involved in the family business since 1981, Jean-Claude acquired his second store, an existing 3,000-sq.ft. establishment with 15

July | August 2012

employees in the nearby town of Bedford. Within three years, the family had transformed the store into a 22,000-sq.ft. business employing 60 people. In 1993, the Plouffe family purchased two stores in Magog, located in the Eastern Townships tourist region. Armed with the Midas touch and determined to prove that success could be achieved in the winter months just as in the busier summertime, the Plouffe family was once again triumphant, resulting in the downtown store’s move in 1996 to a locale almost double in size. The family sold the second store to focus on the larger location. The Plouffes made their most recent acquisition of two stores, in Granby and Bromont, in 2011. Today, the family operates seven successful stores that inhabit a variety of environments – rural, metropolitan, and resort areas – and employ more than 500 people. “I had ambition from the very beginning, but I never thought at the time it would be as important an enterprise,” says Jean-Claude. While any successful business will agree that the right employees are crucial to its development, the Plouffe family has an uncanny ability to identify talent and, more importantly, passion among its people. “Even if you have money; even if you have everything, human capital is what leads to progress,” explains Michel Lefebvre, operations manager. In a business that’s always looking for innovative ways to surprise its customers,

Métro Plouffe Inc., Farnham, Que. more traditional store events – such as sampling, mascots and outdoor displays – are often upstaged by the less common horsedrawn carriage rides, live orchestras, mariachi bands, and local micro-brewery beer tastings. As one customer asked, “What are you going to do next?” For a family intent on finding and sharing the delightfully unexpected, the only sure answer is that it will be something more. Whatever it may be, it will not only be seen in the quality of the stores’ offerings, but also felt by everyone who is proud to be part of the ever-growing Plouffe family tradition.

Earl Near I remember... By Michael Marinangeli

An industry legend and good friend, Earl Near passed away suddenly earlier this year. He was only 68 years old. Earl retired from A&P in 2002, and those of us who had the pleasure of working or doing business with him know the contributions he made to his company and the food industry at large. Earl started his career in the meat department at Miracle Food Mart. In his early twenties, he became a grocery buyer at the Miracle head office, where I first worked with him. We all knew there was something special about Earl. He was as sharp as a tack, and made the most difficult tasks look easy. We often said that Earl would run the joint someday – all he had to do was want it. We were right. In his thirties, Earl took night school courses, graduating with a business degree. After working in a variety of portfolios, he was promoted to vice-president of marketing and merchandising.

Others in the company started to recognize Earl’s talents, and in 1987 he was appointed president of Miracle Food Mart. When A&P bought Miracle Food Mart in 1990, it didn’t take long for the new owner to realize the gem it had gotten as part of the acquisition; shortly thereafter, Earl was promoted to president of A&P Canada. His accomplishments at A&P included the launch of Food Basics in Ontario, which ultimately became the tremendous success that continues to this day. Many would argue that it was Earl Near who was the major contributor to the A&P turnaround to profitability in the mid ’90s. Earl touched the lives of many of us, and will be dearly missed. He was a great colleague, boss and friend. His leadership style encouraged confidence, job satisfaction and personal development; he had a profound influence on so many careers. The food industry would do well to remember Earl’s accomplishments and contributions over the five decades that he served it.

Earl with Shadow

July | August 2012

Profile

Elementary

Alimento By Noelle Stapinsky

Being hip in a trendy downtown Toronto neighbourhood means constantly changing to suit customer needs.

limento Fine Food Emporium opened only seven

outlets. But today, with condos popping up on every

historic buildings at the corner of King and

high-end diners and nightlife seekers.

months ago in one of Toronto’s downtown

Brant streets. The concept was originally meant to be a

residents,” says Colin McLellan, general manager. “They

of renovations, which unveiled the building’s stunning

time, so they want delicious, ready-on-the-spot food to

Italian cheese manufacturer. But during the 18 months natural interior with high ceilings, post-and-beam

structure, hardwood floors and rustic brickwork, the

are young, with fairly high incomes and not a lot of free go. And when our customers see that we make the takeout food here, they trust our quality.”

Dividing the supermarket area from the chic Italian

supermarket with an adjoining restaurant.

restaurant is a large glass refrigerated wall displaying

twist on an Italian mercato. With a well-edited dry

Parmesan and other hard-to-find (even in Toronto)

Alimento (which means “food” in Italian) is an urban

grocery offering, a long charcuterie and meat counter, antipasto and olive bar, and a central cheese counter

that catches the eye as soon as you enter, Alimento is a unique destination in deepest downtown Toronto.

Ten years ago, this section of King Street was home to

textile businesses, architectural firms and furniture

July | August 2012

“The large majority of our customers are local

retail extension of Grande Cheese, a Toronto-based

business focus shifted to opening an authentic Italian

available stamp of land, it has become a hot spot for

some of Grande Cheese’s renowned wheels of Italian cheeses.

The restaurant’s lighting is ambient and inviting.

Jazz plays over the house sound system, and patrons

have a choice of sitting at contemporary glass tables or communally at a stunning white marble bar that also hosts an open-concept salad prep-station.

Profile

Left: The restaurant bar and "wall of cheese" Below: The marble, communal table with salad prep area

Diners can see for themselves that freshness is the

For example, if a customer spends more than $50 in the

With 26 employees working in the restaurant, the

Alimento olive oil – an in-house blend sold in returnable

key ingredient here.

kitchen and the market, McLellan and supermarket

manager Tammy Vitale say they look for staff who are

restaurant, he or she can receive a free bottle of glass bottles.

Whether customers go there to dine, grocery shop or

passionate about Italian food. In fact, several employees

grab a fresh ready-to-eat eggplant lasagna, Alimento

restaurant is to sell the products that we have in the

food, in whatever form customers desire, Alimento has

have Italian as a first language. “Our focus in the

supermarket,” says McLellan, adding that it helps the process when staff members are well versed in the

provenance of the food they are serving. The delicious olive oils, cheeses and deli offerings served in the

restaurant are also for sale in the adjoining supermarket. Addressing the evolving needs of their busy urban

customers, McLellan and Vitale are amping up their supermarket ready-to-eat offerings by adding an expanded lunch counter, fresh and frozen pizzas,

lasagna, prepared sauces and soups, and a salad bar.

offers them a variety of choices. With the focus on great experienced a noticeable sales increase over the past

Tammy Vitale Supermarket Manager

couple of months. To keep up the momentum, the team is now setting its sights on offering delivery and catering services.

“Alimento’s supermarket offering is evolving to suit

the needs of our customers,” says McLellan. “We’re constantly changing it up to keep it fresh – our

customers are telling us what they want, and we’re adapting to that.”

Colin McLellan General Manager

They are also cross-promoting with the restaurant.

July | August 2012

Not all opinions are impartial. Ours is.

Why do Canadian consumers trust the Health Check logo? Because it means a product meets criteria developed by the Heart and Stroke Foundation. Canadians know our mission is to improve their health. Thatâ€™s why 70% of them are more likely to purchase products with the familiar red and white checkmark. For more information about how your healthy products can carry the Health Check logo, call Anna Butko at (613) 569-4361 ext. 324 or email abutko@hsf.ca TM

The Heart and Stroke Foundation word mark and logo and Health Check word mark and logo are trademarks of the Heart and Stroke Foundation of Canada and are used under license.

ategiclead Strategicl icleadersh Strategic leadership yogourt

CONSUMERS are saying “yes” to yogourt

ecause they are continuously looking for healthy and great tasting products with all-natural and better-for-you ingredients, and are turning to the dairy case for alternatives. Yogourt’s healthy attributes and added benefits such as probiotics, omega 3s and protein, are key reasons consumers choose yogourt for healthy snacking.

NEED TO KNOW:

TOTAL YOGOURT in TUBS by SEGMENT – All Sales Total All Other 0.1% (NA%) $535,000

CONSUMER CONSUMPTION CONTINUES TO RISE

»»Yogourt continues to be a dynamic and growing category at retail, valued at $1.2 billion. Yogourt in tubs continues to be the dominant segment making up 81.9% of the total dollar sales. »»Within total yogourt in tubs, weight management and functional make up 56% of the total yogourt segment in dollars with the growth being driven by the All Natural/Organic/Greek segment which is in-line with consumer demand for all natural products. »»Drinkable yogourt is also a key reason behind continued category growth; the drinkable segment accounts for 12.6 dollar share or $154 million.

Total Taste Tub 13.8% (-7%) $139,702,000

Total Natural/ Organic/ Greek Tub 29.5% (58%) $298,941,000

S o u r c e : N i e l s e n , N at i o n a l G B + M M + D RU G L 5 2 w e e k s e nd i ng J u n e 2 , 2 0 1 2 .

Natural/Organic/Greek segment growth is being driven by » All Natural Plains, Fruit-on-the-Bottom, Flavoured and Greek product offerings.

strategic leadership

Total Weight Management Tub 26.1% (-11%) $264,143,000

Total Functional Tub 30.5% (-11%) $309,192,000

WHAT IS GREEK YOGOURT? »»Greek yogourt is made with three times more milk than regular yogourt, which delivers its rich and creamy texture. »»Consumers are drawn to Greek yogourt because of the added benefit of two times more protein than regular yogourt as well as the smooth and creamy taste. »»Greek yogourt is a traditional base for dips, which fits in perfectly with the healthy snacking trend.

TOTAL NATURAL/ORGANIC/GREEK YOGOURT SEGMENT - ALL SALES

Growth within the TL Natural/Organic/ Greek segment is coming from both All Natural, a segment in which Astro Original dominates, as well as Greek.

Total Natural Tub 12.9% (4%) $130,725,000

Total Organic Tub 3.9% (-10%) $39,380,000

Total Greek Tub 12.7% (574%) $128,836,000 S o u r c e : N i e l s e n , N at i o n a l G B + M M + D RU G L 5 2 w e e k s e nd i ng J u n e 2 , 2 0 1 2 .

did you know that your consumers: »»Buy yogourt two-to-three times a month »»Purchase one-to-two units per trip »»Consume yogourt approximately four times per week »»Consume yogourt throughout the day: »»38% – breakfast/morning snack »»12% – lunch »»16% – afternoon snack »»34% – after dinner/dessert S o u r c e : R M G U & A S t u d y.

Consumption in the after dinner/evening part of the day is being driven by indulgent flavour offerings.

Yogourt rules! It’s important to merchandise the yogourt section to reflect the way consumers shop the category (consumers shop across various segments within yogourt).

TIP

Key consumer yogourt segments should include: • weight management • functional health • natural/organic/greek (plain and flavoured) • traditional taste • kids • drinkable yogourt

TIP

• To help them make the right choice, be sure to educate consumers at-shelf, on the different varieties and health benefits of each offering. • Product demos, information/recipe cards and couponing can result in an impulse purchase.

TIP

Have the proper assortment offering SKUs with unique functional benefits, innovative flavours and convenient formats contributing to incremental category sales and profits

TIP

Ensure space allocated to each segment (i.e. all natural/organic/greek) is in proportion to sales velocity.

#2 #3 #4

strategic leadership

MANAGING MILLENNIALS By Steven Austin Stovall, PhD

In the recent past, it was a teenage rite of passage to work in the local grocery store. It meant extra pocket money while learning the fundamentals of how to be a good employee; showing up on time and doing more than what was asked, while giving some consideration to the grocery industry as a career.

ut for the current generation, the grocery industry seems to lack

curb appeal, and as you probably already know, attracting young employees has become very challenging. The Millennials, or

Generation Y, include those born between 1982 and 1999, and have never known a time when computers and instant information were not a defining principle.

Millennials have lived their entire lives in a fast-paced environment

and have experienced (vicariously through their parents) incredibly

good economic times followed by upheaval. Quick acceptance of new realities is one of their strengths.

When you approached your career, you probably looked at each job

as a stepping stone to the next, in a linear progression. Millennials do not. Where you see “paying your dues” as part of earning your next

promotion, they see a series of experiences. Millennials will take on a

job for a year or so, and then move on to something else that intrigues them. It may be a lateral move, a step down, or even a different field of work altogether.

There’s no doubt that it takes a different mindset to manage this

cohort of employees. Here are the key things about them that you, as an employer, need to know.

July | August 2012

MANAGING MILLENNIALS

They expect to be treated as business equals Growing up in an egalitarian environment where parents and teachers approved of their ideas

and opinions, Millennials expect older adults to

treat them with regard and respect. They have a

strong sense of the concept of fairness, reacting unfavourably when that concept is breached.

The realities of the business environment, with its

traditional top-down management style, may not

dovetail well with Millennials’ workplace expecta-

tions, resulting in an increased rate of turnover. And because Millennials often live with their parents

and are starting their families later, they’ll leave a job they dislike simply because they can.

STRATEGY: Be sure that they know that you

appreciate their point of view. Organize (or better

yet, let them organize) a social media seminar with Millennials presenting the how-to session to their

older colleagues. Or consider reverse mentoring by pairing a Millennial with a baby boomer who

needs support to get up to speed on technology. It’s a great way to have both groups appreciate each other’s strengths.

Why are egalitarian business environments important?

independently, Millennials have a natural

in the group to be included in initiatives, not just

Why are experiences rather than experience so important to Millennials?

They prefer to work in teams

Unlike Generation Xers (those now in their

mid-30s and 40s), who tend to enjoy working tendency to work in teams. They expect everyone a select few, and have grown accustomed to readily connecting with strangers in online

environments. They rely heavily on their social

networks for recommendations and support. You may notice that many Millennials will struggle

with a project that they are expected to tackle on their own, inundating you with questions about

My generation wants a “series of experiences” because we have seen what our parents have gone through in the workplace. The promise of working very hard and reaping the rewards doesn’t seem to really be true, so we are more likely to work at something that is fulfilling, even if it doesn't pay as well or have a career trajectory.

What about multi-tasking:

STRATEGY: Place them on teams and committees

It’s the way we work! I feel more productive when I’m doing many things at once.

ties to develop junior staff by pairing them up

Why do you like working in teams?

working on complex projects. Look for opportuniwith Generation Xers. As long as they feel their ideas are respected, Millennials will accept

mentoring and suggestions much more easily than prior generations.

July | August 2012

We felt that it was only fair that we include their point of view, so we asked several Millennials for their feedback on this article. A compilation of their responses is below:

We expect to be treated as equals because we were brought up in an education system that taught us about social justice and fairness. We’re hard-wired to expect equal pay for equal work. The concept of seniority doesn’t make sense to us. Plus, we were raised to think that we have a valuable contribution to make.

how a task is to be done.

Millennials Bite Back:

Well, we like to work in teams but we also want to be recognized for our individual contributions. Responsibility for a project, outside of my regular job, makes me feel appreciated and is likely to make me work harder overall. We may work well in teams but we do it independently.

They excel at multi-tasking

Maybe because we grew up during the tech bubble where we saw very young people become very successful quickly (without putting in years of work). It’s probably unrealistic, but these people became our career role models – quick success is something we like to think is possible for us too.

quickly become bored with working on one

Do you feel that your generation is particularly adaptable?

talking to them, most Millennials do not see this

Definitely. We like change. We’re always checking job posting sites to make sure there’s not a better opportunity we’re missing out on.

Why do you think the grocery industry is having a tough time attracting Millennials as employees? Since many of us still live at home, food and shelter are a given. As a result, we don’t go to grocery stores very often. Spending our money at a grocery store (other than Joe Fresh at Loblaws) or grocery shopping as an activity, is not on our radar screen. Grocery retailing as a career wouldn’t be something that would occur to us. We want to work somewhere that is in our area of interest. So, if we like clothes, a clothing store; music, a record shop; food, a restaurant. When we were teenagers and looking for a part-time job, we wanted to work for companies that gave us deals on things we wanted, and at jobs that gave us a sense of importance.

Millennials thrive on multi-tasking, and can project. The Internet, mobile phones, cable TV, and video games have provided them with

multiple ways to connect, often simultaneously.

And although social decorum would dictate that they stop texting their friend while you’re

behaviour as rude because they feel they can completely understand and absorb both

conversations. You may feel differently, but their prowess with technology can make them

productivity prodigies and able to complete tasks in record time.

STRATEGY: Take advantage of Millennials’

multi-tasking talents. Keep them engaged by regularly assigning them a new project,

particularly if it’s something that requires quick mastery. And be patient and flexible with what seems like distracted behaviour – it’s more

productive to judge their work on the results.

They have a sense of entitlement

You’re probably not surprised to learn that

Millennials have a strong sense of entitlement.

This stems from parents and teachers who have provided them with constant reassurance that

they are doing everything “just great,” and from coaches who have told them that everyone is always a winner. As a result of this parenting and teaching style, many Millennials feel

CANADA’S FOUR GENERATIONAL WORKFORCE, 2011

MANAGING MILLENNIALS

Why do you think Millennials have such a strong sense of entitlement?

entitled to jobs and other benefits that

traditionally have been reserved for employees

with more experience. For older managers this is the great paradox – Millennials want high-pay-

31.9 %

16.2 %

29.0 22.9

ing, high-profile positions immediately, but may

not be keen to put in the time and work required. This can be frustrating for the manager who wants to grow and develop a young new employee who wants it all, now.

STRATEGY: While you can’t change the

entitlement phenomenon, know that equating

time with experience won’t work for Millennials.

Mature / Baby WWII Boomers Generation

Generation Generation X Y/ Millennials

Take advantage of their need for new experi-

ences. So, instead of saying, “You need five years of experience to be a department manager,”

explain that “These are the six things where you Source: Statistics Canada, 2011

need solid experience in before you can manage a department.”

July | August 2012

MANAGING MILLENNIALS

They are very adaptable

As a manager, you likely were very careful with

the timing of major change in the organization and choose your words carefully and strategically when explaining it to your staff. With

Millennials, although you’ll need to explain

openly and honestly why change is happening, shrug off the news. Even if it means the loss of

their job or an adjustment in their pay or working because they’ve grown up with social change.

Millennials can take bad news in stride because

they know they will be changing jobs sometime soon anyway. In short, while you’re explaining what’s to come, they’ve already adapted.

They expect a flexible work environment

Flexibility to manage their time, their way, is a key

Millennial characteristic. A rigid, nine-to-five work environment is a non-starter with this group, and employers that haven’t already internalized

flextime will be well advised to do so. Millennials

are rewriting the rules of workplace engagement

and a top-down management style, on this point in particular, will have Millennials voting with their feet.

STRATEGY: This issue ties back into Millennials’

sense of fairness (after all, it is their schedule) so be sure to include them in any discussions

regarding flextime or work-from-home days and be prepared to be flexible.

Whatever the challenges of having four generations in the workplace are, the reality is that

Millennials are the future of your business; the leaders of tomorrow. Managing them with

understanding will help you reduce turnover and enable you, as a manager, to adapt to a business

environment that is fast becoming the new normal.

Dr. Steven Austin Stovall, a Gen Xer who works with Millennials on a daily basis, is Professor of Management at Wilmington College in Wilmington, Ohio. He is also a consultant and trainer on all aspects of management and marketing. He can be reached at: steven_stovall@wilmington.edu.

July | August 2012

with Charles Lee

you may be surprised at how quickly they’ll

hours, Millennials won’t really be surprised

Q&A

Millennials’ attitudes seem somewhat at cross purposes with current corporate culture. How do you see that tension playing out? Both parties will have to adjust their expectations. Millennials will have to flex to the rigours of work life and companies must recognize that one size does not fit all. Baby boomers are retiring and Millennials, with their very different perspective, are stepping up. We live in a society with an increasing focus on individual rights versus the realities of the hierarchical workplace. These tensions have been brewing for years, but they are more acute now because Millennials are becoming a significant force. Employee engagement will be a much greater challenge for all managers, and I expect employee turnover will rise significantly once the economy improves. In your view, what are the key things that employers need to do to keep Millennials engaged and excited about their jobs? Millennials have gone through an educational system where participation and group work are cornerstones. Companies should be actively developing formal strategies to create a Millennial-friendly workplace. They need to consider: A. An enlightened management team that can create an overarching, collegial environment. B. Institutionalizing job rotation rather than just job promotions. Millennials love change and expect it. C. Creating a professional development program: Millennials are all about skill acquisition and investing in them can slow the rate of turnover. What are the key strengths Millennials bring to their employers? A. Well-educated and smart with very strong verbal skills. B. Open to change and thrive on juggling a variety of projects, which is great for productivity. C. Capable of producing a lot of excellent work if managed well. D. A different and valuable perspective – just ask any parent of a Millennial!

Charles Lee is a partner with the consulting firm David Quinn & Associates, and with M2 Communications. His career includes over 15 years as head of Human Resources for Rogers Publishing Ltd. and partner, VP & Chief People Officer for HKMB International.

Tea is trending Tea in Canada is steeped with culture. With such a diverse population hailing from countries worldwide, where teas are cultural and ceremonious, the popularity of specialty teas is growing. By Noelle Stapinsky

Discover the mouthwatering flavours of

Twinings Herbal Teas ÂŽ

Twinings Is Driving the Herbal Tea Segment Dollar Growth Versus Year Ago1 +16%

20% 15% 10% 5%

+1%

Twiningsâ€™ BestTasting Flavours

Consumer flavour tests yielded high scores, above industry norms2

High-Impact Packaging

86% top-2 box purchase intent2

Strong Retail Productivity

Twinings is the fastest-growing national brand in herbal teas1

0% Total Market

Twinings

1 2

Nielsen MarketTrack, National, GB+MM+DR, 52 weeks ending June 2, 2012 Twinings proprietary packaging research, Canada 2011

Western Canada: 1-888-894-6464 Eastern Canada: 1-800-268-7480 www.nationalimporters.com

"Canadians

like their tea hot and special,” says Louise Roberge, president of the Tea Association of Canada. “Our culture and background connects us to the English. But now we have new Canadians from all over the world. And for many cultures, tea is the most important beverage after water. Tea imports have grown six per cent in the last year.”

“Herbal tea sales were flat until last year. There’s been a resurgence driven by the entry of new flavour profiles, line extensions and specialty herbal teas such as Rooibos entering the market,” says Ron Sadler, chairman of the Tea Association of Canada. Canada’s imports from India are over 30 per cent higher than they were a year or two ago, which, Roberge points out, means that people are drinking more Darjeeling and Chai teas. Louise Roberge, President, Tea Association of Canada

Indeed, much like wine aficionados who enjoy the nuances and terroir of a fine wine, Canadian tea drinkers are becoming more sophisticated and adventurous. And now with the introduction of single serve teas, developed for the ultra fast, single cup brewing machines by Tassimo and Keurig, overall tea consumption is growing.

Tea Totals

Herbal is Happening…Again

ith the inclusion of fruits and spices to the herbal line-up, new flavour profiles are winning over Canadian consumers. “The herbal segment sales volume and share is now the largest it has ever been,” says Joyce O’Connor, brand manager at Tetley Hot Tea. “It has surpassed green tea within the last two years to become the largest segment in the specialty tea category.” “Within herbal, Rooibos tea has been a popular drink in South Africa for generations and research shows it’s rich in antioxidants,” says O’Connor. “Rooibos is now one of the top herbal varieties in Canada.”

TOTAL TEA CONSUMPTION

$ VOL

$ VOL % CHG

$ SHR

$ SHR % CHG

NATIONAL ALL CHANNEL

415,120,812

100.0

0.0

MARITIMES ALL CHANNEL

23,570,921

-2%

5.7

-0.2

QUEBEC ALL CHANNEL

65,530,050

15.8

0.0

ONTARIO ALL CHANNEL

169,192,218

40.8

0.1

TL WEST ALL CHANNEL

156,827,314

37.8

0.1

Man+Sask All Channel

35,184,176

8.5

0.3

Alberta All Channel

61,876,783

14.9

0.3

B.C. All Channel

59,766,712

-2%

14.4

-0.5

TOTAL TEA BAGS

211,772,250

51.0

-0.2

TOTAL REGULAR TEA BAGS

87,791,588

-2%

21.1

-0.8

TOTAL SPECIALTY TEA BAGS

123,980,662

29.9

0.5

Total specialty flavoured tea bags

35,755,385

11%

8.6

0.8

Total specialty green tea bags

40,213,494

-5%

9.7

-0.6

Total specialty herbal tea bags

47,107,576

11.3

0.2

Nielsen Company, MarketTrack, National all channels, 52 weeks ending, June 2, 2012

July | August 2012

Canadaâ€™s Grocery Magazine

A Better Reach A Better Read A Better Value For more on how Grocery help you reach For more information information on how to reach Business Canadiancan grocery retailers, retailers, please contact us at: please contact: Dan Bordun info@grocerybusiness.ca danbordun@grocerybusiness.ca 416-817-5278 And check out our new website

www.grocerybusinessmedia.ca

Health

Hot Health Trends

“The advantage tea has over water is that it does have natural plant-based

compounds that are not only comprised of taste, but health protective affects for

such things as heart disease and cancer,” says Dr. Carol Greenwood of the department of nutritional sciences at the

University of Toronto. “It’s the polyphenol

compounds found in tea that people are interested in.”

Besides being a zero-calorie beverage option,

Dr. Greenwood points out that because

Canadians have such low fruit and vegetable

intakes, tea can help them increase their

exposure to plant-based compounds.

Polyphenols act as an antioxidant that protects body chemicals and cells from damage caused by free radicals. They can also block the action of enzymes that cancers need to grow.

Small But Mighty

ith the growing popularity of

great coffee, and then expanding their

single-serve hot beverage brewing

consumption to tea and other beverages,”

machines – a la Tassimo and Keurig –

says Mathieu Gadbois, director of trade

single-serve teas are blazing a new trail for

marketing for GMCR. “Once a customer has

tea and increasing overall consumption.

bought a specific brewer technology,

According to Green Mountain Coffee Roasters, Inc. (GMCR) in Canada, more and

he or she will be looking for other products offered for that particular system.”

more Canadians have single-serve brewers on their countertops, and the company

Total Tea Single Serve (latest 12 weeks)

predicts that this trend will increase in the coming years. “The single serve teas have energized the tea category and brought in incremental volume as some consumers are buying the

Sales:

$3,870,034

% $ Growth (vs. 2011):

139%

$ Share (on Total Tea):

7.5%

Source: Holding GMCR Canada Inc.

brewers for the convenience of making

Tea Takes Centre Ice The experience for The Tea Emporium owner, Shabnam Weber, has been fantastic since the company opened an in-store tea counter in Loblaws’ flagship urban concept in Toronto’s historic Maple Leaf Gardens late last year. “We’re finding that the Loblaws customer curiosity to try new teas is equal to any of our stand-alone locations. “What I find most revolutionary about what Loblaws has done at this location, is that they took something that already existed – tea – and added another SKU, the tea expert,” says Weber. This provides the customer with an indispensable added value.”

Teaching the Art of Tea Much like the art of tasting a fine wine and understanding grape varietals and geographic nuances, tea sommeliers have fine-tuned palates that identify many of the same attributes. For industry professionals looking to increase their tea knowledge, the Tea Association of Canada is currently offering a Tea Sommelier course at various colleges and institutions across Canada. The course takes about 150 hours and is divided into eight sessions. Once these are completed, the student is eligible to sit for the Tea Sommelier TM, examination, which is certified by the Tea Association of Canada. Paul Higgins III, territory sales manager and tea specialist at Mother Parkers Tea & Coffee Inc., participated in the program and is now a certified Tea Sommelier. “I enrolled in the program because part of my roll at Mother Parkers is to develop our tea business by educating the sales force,” says Higgins. “With the knowledge I gained from this course, my appreciation for tea has increased greatly. I am now a more well-rounded and confident cupper.” The program explores tea types, regions, production, sustainability, preparation and health attributes. “For me, the highlight of this program had to be the different cupping sessions and presentations we did almost every day,” says Higgins. “These two parts of the course really allowed you to experience the nuances of tea and develop a palette that you never thought you could have.”

July | August 2012

THE FUTURE IIS  HERE

GROCERY INNOVATIONS AATIONS CANADA 2012 METRO TORONTO CONVENTION CENTRE WELCOME

OCTOBER 1 & 2 2012 HOME

Grocery Innovations Canada 2012 The Future of Grocery Retailing Starts Here

Grocery Innovations Canada (GIC) is the premier event developed BY our industry FOR our industry. Invest in yourself, your people and your organization - Attend Grocery Innovations Canada! Here’s why: • GIC is the only event in Canada that delivers TWO full days of grocery-specific conference and trade show. • GIC provides exceptional networking opportunities with forward-thinking innovators. • GIC has been designed with you in mind so that you can maximize your time and improve your operations – get the information you want today, while learning tips that you can put into action tomorrow. • GIC is at the forefront of innovation – you will find products and services at our trade show that will keep you on the cutting edge.

IT’S ALL AT GROCERY INNOVATIONS CANADA! Register today at groceryinnovations.com

The Mustang’s Back and Better Than Ever!! Don’t miss YOUR chance to drive away from Grocery Innovations Canada in an ALL-NEW design 2013 Ford Mustang Convertible! ONLY Full Delegate Canadian Retailers are eligible to win this amazing Grand Prize. Make sure you register today!

July | August 2012

Grocery Innovations Canada 2012 Featured Conference Speakers SUNDAY, SEPTEMBER 30 Intercontinental Toronto Centre Hotel 12:00 pm

CFIG Annual General Meeting & Luncheon (For CFIG Members Only)

5:30 pm

Grocery Innovations Canada Welcome Reception (Open to ALL Attendees and Exhibitors)

Monday, October 1

Perry Caicco CIBC World Markets

Michael Sansolo Retail Food Industry Consultant

Carman Allison The Nielsen Company, Canada

Robert Deluce Porter Airlines

Ken Schley Quality Foods

Metro Toronto Convention Centre 7:15 am

ALL NEW Brain Food Power Breakfast

8:30 am to 11:30

Grocery Innovations Canada Keynote and Conference Sessions

11:30 am

Luncheon of Honour (Open Only to Full Delegates & Invited Guests)

TRADE SHOW Monday, October 1st, & Tuesday, October 2nd, 2012 12:00 PM to 5:00 PM Metro Toronto Convention Centre – North Hall

Tuesday, October 2 Metro Toronto Convention Centre 7:15 am

ALL NEW Brain Food Power Breakfast

8:30 am Grocery Innovations Canada Keynote and to 11:30 Conference Sessions 11:30 am

Incoming Chair’s Luncheon (Open Only to Full Delegates & Invited Guests)

July | August 2012

Grocery Innovations Canada 2012 Trade Show featuring: • Made in Canada • First Time Exhibitors Pavilion • Enhanced New Product Showcase • CFIG 50th Anniversary Museum • Connection Lounge • 8th Annual Canadian Best Bagger Contest • 3rd Annual Top 10 Most Innovative Products Contest

NEW for 2012 • Start your show days off with a boost of “start me up” learning at the ALL NEW Brain Food Power Breakfasts • A groundbreaking Trade Media panel featuring the publishers of: Grocery Business, Canadian Grocer and Western Grocer • Everything Retailers Need to Know About Payment Processing (*But were afraid to ask…) Two fabulous Luncheons celebrating: • The CFIG Life Members • The Spirit of the Independent • The Incoming Chair of the CFIG Board of Directors • The CFIG Scholarship Program • The 50th Anniversary of the Canadian Federation of Independent Grocers. (Both Luncheons open ONLY to registered Full Delegates and special invited guests.)

EVENING EVENTS Monday, October 1st @ 7:00 pm Join us at the Grocery Innovations Canada’s “Taste of Toronto” party at the Steam Whistle Brewing Roundhouse – home of Canada’s Premium Pilsner Tuesday, October 2nd @ 5:30 pm Come out for a night of honours and esteemed recognition. Join us for the CFIG Award of Merit Dinner followed by the 50th Annual Canadian Independent Grocer of the Year Awards gala, and celebrate in grand style!

1 BUILD SIDES WITH ANY ITEM, EXCEPT FOR CRUSHABLE ITEMS. PLACE CRUSHABLE ITEMS IN A SEPARATE BAG.

retailers – you could drive away a winner!

2 FILL OUT THE BOTTOM OF THE SACK BY UTILIZING EVERY AVAILABLE SPACE. PLACING ITEMS ON THEIR SIDES WILL LESSEN CAPACITY AND CREATE A LIGHTER BAG.

All you have to do is:

a ballot 1 Get when you register.

MOST INNOVATIVE PRODUCT BALLOT

the Grocery Innova2 Visit tions Canada trade show floor Monday, October 1st, starting at noon.

your ballot 4 Deposit at the CFIG Member

out your ballot 3 Fillfor your choice of "The Most Innovative Product."

Centre by 4:00pm on October 1st.

winner 5 The of the key will be announced at the dinner on Monday night, and notified.

Best bagger tips

the key 6 Tryon stage on Tuesday. If the car starts, you could win a Ford Mustang Convertible!

drive 7 And away a winner!

3 TO INCREASE ITEM COUNT, PLACE LIGHTER ITEMS (NO CANS, GLASS, HEAVYWEIGHTED ITEMS, JARS, ETC.) ON TOP OF THE BOTTOM LAYER.

July | August 2012

INTRODUCING

The Award Winning Brita® Bottle with a Filter Inside ‡

General Merchandise Award ‡

Innovation and Originality Award

Enjoy Brita®-filtered tap water anywhere. 1 Brita® Bottle filter can replace as many as 300 water bottles*

Floor display 24 ct. Bottles and 12 ct. Filter replacement 2 packs.

Reduces Chlorine (Taste & Odour) *Standard 500ml bottles. ‡Logos are the property of RCC.

Congratulations! TO THE RECIPIENTS OF THE 19TH ANNUAL CANADIAN GRAND PRIX NEW PRODUCT AWARDS

Innovation is the engine of the industry and nowhere is that better

exemplified than with the Grand Prix program. A 32-member jury â€“ which includes consumers, food editors, journalists, advertising executives, packaging designers and members of the grocery industry â€“ evaluate dozens of entries, with the winners announced at the Grand Prix gala evening on June 14, 2012. The products selected are truly the best of the best.

Presenting, the 2011 Canadian Grand Prix New Product Award recipients

special awards

19TH ANNUAL

CANADIAN GRAND PRIX NEW PRODUCT AWARDS

CANADIAN GRAND PRIX HEALTHY INNOVATION NEW PRODUCT AWARD INNOVATION & ORIGINALITY AWARD

Sasha Teska, Onder Ozturk, Trevor Wojick, Andrew Pollock, Vanessa Cruz, Nicole Montgomery, Sabrina Vieira, Pam Kellogg

MAPLE LEAF CONSUMER FOODS INC. Maple Leaf® Prime Naturally Chicken Breast Portions

Todd Kelly, Soula Kioussis, Faroek Hanif

THE CLOROX COMPANY OF CANADA, LTD. Brita Bottle

ALL CANADIAN AWARD

INNOVATIVE PACKAGING AWARD

Les Tomaszewski

DANONE CANADA

OIKOS, Greek Yogurt Bruce Bugden, Jesse Swartz, Fadi Dawood, Matt Wilson, Leanne Ivany, Stephanie Barcena, Julie Vu

CONSUMER ACCEPTANCE AWARD

UNILEVER CANADA Nexxus Pro.Mend

Brian Harrison, Todd Cooney, Sharen Hills, Susan Molenda, Sal Polito, Reid Barla, Brieanna Harburn, Angela Cotton, Karen Kuwahara, Christiane How, Arshika Patel

July | August 2012

NESTLÉ PURINA PETCARE Purina ONE® SMARTBlend™

FOOD

Andrew Dixon

19TH ANNUAL

CANADIAN GRAND PRIX NEW PRODUCT AWARDS

Lisa Dahl

JANES FAMILY FOODS LTD.

Janes Wild Sockeye Salmon Burgers

WESTON BAKERIES

Première Fournée de Weston Breads

Alain Patenaude, Felipe Gallon

SOLO FRUIT INC.

Geraldine Demerchant, Paul Gallagher, Lyndsey Clabby

Sorbet

McCAIN FOODS (CANADA)

McCain® Ultra Thin Crust Pizza

Tom Hare, Cathy Haynes, Shelby Standring Ihab Leheta

DARE FOODS LIMITED GARDEN PROTEIN INTERNATIONAL gardein™

Bear Paws Cereal & Fruit

July | August 2012

Thank You Grand Prix Committee for selecting Janes Wild Sockeye Salmon Burgers as the

Best Innovation in the

Deli, Egg, Meat & Seafood Category

More great products from Janes Family Foods

GENUINE SCOTTISH BREADED HADDOCK

GENUINE SCOTTISH BATTERED HADDOCK

TAVERN BATTERED COD

PUB STYLE FISH FILLETS

MULTIGRAIN BREADED HADDOCK

www.janesfamilyfoods.com

LEMON PEPPER COD

FILET OF SOLE

FOOD

19TH ANNUAL

CANADIAN GRAND PRIX NEW PRODUCT AWARDS

Pierre L'Heureux, Jean Gattuso, Peter Mattson

KC Shendelman

CANADA BREAD BAKERY

A. LASSONDE INC.

Cadbury Creme Egg Snack Cakes

Alex Fossella

NEW AGE MARKETING & BRAND MANAGEMENT INC.

Oasis® Health Break CholestPrevent

Les Tomaszewski

Darren Mahaffy

Simply Delish Chunky Dips

NATURE'S PATH FOODS INC. Love Crunch™

DANONE CANADA

OIKOS, Greek Yogurt

Sasha Teska, Onder Ozturk, Trevor Wojick, Andrew Pollock, Vanessa Cruz, Nicole Montgomery, Sabrina Vieira, Pam Kellogg

MAPLE LEAF CONSUMER FOODS INC. Maple Leaf® Prime Naturally Chicken Breast Portions

LeeAnne Mele, Jeremy Oxley, Amanda Attard

KRAFT CANADA INC.

Cadbury Caramilk Secrets

July | August 2012

Oasis Health Break continues to innovate ®

and generates growth in the refrigerated segment (+ 10% latest 12 weeks)

Now available!

Increase your sales with the new flavour of Oasis Health Break CholesPrevent : “Pineapple and Tropical Fruits”! ®

Source: ACNielsen Market track, National, Tonnage volume period ending June 2nd, 2012 ® Trademark of Lassonde Industries Inc.

NON-FOOD

19TH ANNUAL

CANADIAN GRAND PRIX NEW PRODUCT AWARDS

PROCTER & GAMBLE INC. Bounce® Dryer Bar Pampers Cruisers with 3 Way Fit

Gord Meyer, Ata Haftchenary

Todd Kelly, Soula Kioussis, Faroek Hanif

THE CLOROX COMPANY OF CANADA, LTD. Brita Bottle

Peter Fausten, Jessica Reid, Heidi Chiu

JOHNSON & JOHNSON INC.

Brian Harrison, Todd Cooney, Sharen Hills, Susan Molenda, Sal Polito, Reid Barla, Brieanna Harburn, Angela Cotton, Karen Kuwahara, Christiane How, Arshika Patel

NESTLÉ PURINA PETCARE

POLYSPORIN® Cold Sore Healing Patch

Purina ONE® SMARTBlend™

SOLO CUP CANADA René Roy, Cécile Choyau, Sophie Hénault

PROLAV SOAP INC.

Bessie Ketsilis, Brad Manning, Hector Hofilena

Solo Squared™ Kids Combo Pack

Bio-Vert™ Hand Soap 2L Refill Bag

July | August 2012

PRIVATE LABEL

19TH ANNUAL

CANADIAN GRAND PRIX NEW PRODUCT AWARDS

Chuck Maier, Paul Flinton, Linda Hodgkinson, Mary Dalimonte, Victoria Yee Ching, Kathy Allen, Brian Dalfen

SOBEYS INC.

Sensations by Compliments Certified

Sustainable & Responsibly Caught Seafood

AWARD Innovation O

Jason Knights, Martin Turcotte, Marie-France Gibson, Francis Cournoyer

METRO RICHELIEU INC.

Irresistibles Frozen French Fries Ice Cream Limited Edition

Tessa Blair, Dave Pullar. Veronica Murray

Tropical Fruits; Orange, Mango, Cranberry. It is destined to people who wish to either reduce a high cholesterol level or prevent cholesterol absorption.

CANADA SAFEWAY LIMITED Safeway Select Tea Eating Right Ancient Grains Tortillas with Chia

July | August 2012

asis Health Break CholesPrevent® contains plant sterols! Oasis Health Break CholesPrevent® combines the natural benefits of plant sterols with a refreshing fruit taste. A serving (250 mL) of Oasis Health Break CholestPrevent® provides 50% of the daily amount of plant sterols shown to reduce cholesterol in adults. High cholesterol is a risk factor for heart disease. Quench your thirst while maintaining a healthy level of cholesterol! Plant sterols otherwise known as phytosterols are naturally found in vegetables, fruits, vegetable oils, nuts and cereals and help lower “bad” cholesterol. Oasis Health Break CholesPrevent® is now offered in two delicious NEW flavours: NEW Pinneaple & FLAVOUR!

Tough Times at Tesco By Emma Ludlow

Retail giant Tesco is facing challenging times. Dwindling sales, failed price incentives and slipping standards have seen Tesco’s market share plummet and billions wiped from its value. This stands in stark contrast to the brilliant retailer that for several decades set the standard for strategy and execution in the grocery world. Even some of Canada’s largest retailers took their cues from Tesco when it was flying high. So what happened? Grocery Business examines the trajectory of Tesco’s fortunes, and questions what the future holds for the British supermarket chain. It is ironic that Tesco is floundering in this recessionary climate, as the last downturn proved the catalyst for its ascent. In the early 1990s, Tesco gained massive market share, fending off Walmart’s entry into the U.K. with the purchase of Asda, the aggressive expansion of Kwik Save, and the arrival of European cost-cutters. Tesco responded to competition by launching its own value brand range, followed by the upmarket Finest range and mid-range Tesco brand. These enormously successful lines helped shape Tesco’s brand identity, as well as reposition the chain as a mid-price rather than discount retailer. Tesco is now in the unique position of being able to appeal to all sections of the market.

The 1995 launch of Tesco Club Card cemented the retailer’s success. The hugely popular loyalty card enabled Tesco to collect vast amounts of valuable data about shoppers’ buying behaviour, as well as reward customers for high-value purchases. Add to that an innovative approach to store design and a new set of people-focused values, and Tesco had an alchemic formula for success. The trouble started in 2008 when Tesco’s U.K. sales growth stalled. Then, disaster struck in January 2012 when the retailer’s market share dipped below 30 per cent for the first time in seven years. Share prices dropped by nearly 16 per cent, and around $8 billion was wiped off

What Went Wrong “Tesco has disinvested from its U.K. customer proposition via price, private-label quality and service since 2007. Tesco’s underlying samestore sales in the U.K. have been weak for five years and, in order to protect profitability, it has had to reduce investment in its customer offer over that time. Unless Tesco accepts the need to reduce short-term profitability, it will underperform.” – Edouard Aubin, analyst, Morgan Stanley

Tesco’s value. The figures came hot on the heels of a failed cost-cutting promotion, “The Big Price Drop,” which was launched with much fanfare last October. Tesco invested $800 million in lowering prices across the board, but to fund this, it ended its popular double discounts Club Card scheme. Over Christmas, it became clear the strategy hadn’t worked. The promotion failed to win over shoppers, many of whom were skeptical that prices were any lower and missed their Club Card voucher fix. Tesco’s woes weren’t just the result of a poorly judged price promotion. The retailer’s ambitious expansion and diversification plans, both at home and abroad, left the core U.K. grocery business under-resourced. From the ’90s, Tesco used U.K. profits to open stores in the U.S. with its Fresh & Easy banner and in emerging markets such as China, India and Eastern Europe. There was much to be gained, particularly in China, now the world’s largest food and grocery retail market. But, in its quest to conquer that country, Tesco under-invested in the U.K. In Britain, a strategy of relentless store openings combined with rapid diversification into areas such as clothes, second-hand cars and home services left the business overstretched. As the company took its eye off the U.K. grocery business to grow its international business, more focused competitors gained ground. In the past, Tesco could boast its food was cheaper than that of Sainsbury’s and Waitrose, and better quality than Asda’s. However, the higher-end supermarkets had improved their offer with innovative promotions, heavy

July | August 2012

couponing, and the introduction of low-cost offerings, while Asda had significantly upped the freshness and diversity of its produce. By Tesco’s own admission, product availability, service and quality of food haven’t been up to scratch. Certain service metrics have been cut in a bid to protect profit margins and invest in price positioning. This is particularly evident in the shabby outdated appearance of stores and the deterioration of customer service. According to research by JP Morgan, Tesco currently employs 4.8 staff per 1,000 square feet, down from 6.3 staff in 2006. This puts the retailer well behind rivals such as Morrisons, which employs nearly 7 staff for the same space. Tesco has taken note. In April, the company unveiled a $1.6-billion investment program that it hopes will restore the U.K. operation to its former glory. CEO Philip Clarke acknowledged that Tesco needs to invest in more than just lowering prices and opening new stores. Instead, it will focus on improving the overall shopping experience by refreshing 430 existing stores and deploying 8,000 new staff to the shop floor. By increasing staff hours and training, and ensuring employee availability to help shoppers, Tesco hopes to deliver new levels of excellence in customer service. Tesco will extend its expertise in key areas where it has fallen behind rivals, with fresh produce, fresh meat, bakery and counter services at the top of the list. Investment in Tesco’s online business is also set to rise. The new Tesco Direct website has launched, and 80,000 lines will be available online by Christmas, compared with 40,000 currently. Tesco will make it easier for customers to use their smartphones to shop, and will extend its “click & collect” scheme, which makes it more convenient to purchase goods online and then collect them in-store.

As the company took its eye off the U.K. grocery business to grow its international business, more focused competitors gained ground. 48

July | August 2012

Tesco Snapshot Tesco’s story began in 1919 when Jack Cohen started selling surplus groceries from a stall in London. Cohen built the supermarket chain from scratch, launching his first own-brand product, Tesco tea, in 1924 and opening the U.K.’s first modern food warehouse 10 years later. Today, Tesco is the world’s third-largest retailer, with stores in 14 countries across Europe, Asia and North America. Its core business is groceries, consumer goods, financial services and telecoms, but it operates in markets as diverse as music downloads and gold exchange. The mid-price retailer enjoys an annual turnover of around $96 billion, with over 60 per cent of sales coming from U.K. businesses. Tesco has a U.K. market share of around 30 per cent, followed by Walmart-owned Asda with 17.5 per cent, Sainsbury’s with 16.7 per cent, Morrisons with 12.3 per cent, and Waitrose with 4.3 per cent*. *Source: Kantar Worldpanel 12 weeks to 22 January 2012.

TESCO U.K. RETAIL STATISTICS FIVE-YEAR SUMMARY

2008

2009

2010

2011

2012

Number of stores

2,137

2,306

2,507

2,715

2,979

Total sales area - 000 sq. ft.

30,457

32,389

34,237

36,722

39,082

Avg. full-time equivalent employees

193,917

194,420

196,604

200,966

205,852

Revenue per employee - £

179,840

193,436

196,120

199,621

207,907

Weekly sales per sq. ft. - £

25.43

25.34

25.22

24.95

24.87

Source: www.tesco.com

CEO Philip Clarke is confident these new measures will arrest the slide and re-engage U.K. consumers. “The last few months have seen us drive a faster pace of change in Tesco, particularly in the U.K., reflecting our determined focus on the immediate objectives for the group that were set out last April,” he says. “While our international business is delivering excellent growth, contributing $1.8 billion of profit to the group, we fully recognize that we need to raise our game in the U.K. As we improve the shopping trip for our customers, it

will follow that our sales growth and financial performance will improve too.” It will take time before Tesco sees a return on investment in the U.K. This year’s profits will be reduced by the $960 million needed to revitalize U.K. stores, making it highly unlikely the company’s profits will increase this year. However, with the retailer putting such significant investment behind its plans, it may claw back lost market share to reclaim its crown as undisputed king of the U.K. retail scene. Emma Ludlow is a U.K.-based writer.

Shelf Life

Beauty and the Bottom Line By Noelle Stapinsky With runway looks and European trends influencing North American beauty, hair care is one of the largest and fastest-growing categories. “The total hair category is approaching $1 billion in Canada and is one of the biggest health and beauty care segments nationally,” says Judi Hoffman, Canadian hair care category brand manager, P&G Beauty & Grooming. Able to adapt quickly to the realities of both the young and aging consumer, there is no more innovative category than hair care. The grocery channel is underdeveloped in this category, so including new offerings is a simple way to build basket size while stocking the products your customers are looking for. According to The Nielsen Company data, consumers purchase hair care products, on average, seven times per year. And this category has gone far beyond basic shampoo, conditioner, hairspray, gel and mousse. Products that mimic those found in professional salons are now starting to show up on grocery store shelves. Products such as argon-based styling oils, dry shampoos and volumizing powders and sprays are in high demand. However, Beth Witkowski, brand manager for John Frieda, Kao Brands Canada Inc., points out that many grocery retailers are underdeveloped within the hair care category and can to grow their share. “We know that women are busier than ever and they are seeking ways to simplify their lives. Most are willing to purchase their hair care items on a routine trip to the grocery store, but often the selection isn’t as broad as they would like,” she says.

Head Masters – On-the-Go Solutions

Consumers purchase hair care products, on average,

per year

And if you thought that hair care was heavily sku-ed already, just a heads-up that time-starved consumers are looking for new solutions to hair dilemmas. That means innovation in the category is ramping up. The Dry Clean The popularity of dry shampoos is growing, and it’s no surprise. With a couple quick sprays to the root area, hair is revitalized and refreshed, allowing consumers to extend the time between washings.

Striking Oil “A hot trend for 2012 is using exotic oils for styling. Many consumers are moving away from the serums and moving into the oils,” says Genevieve Zimanyi, sales director, Henkel Consumer Goods Canada Inc.

The New Hue Many hair colour companies are releasing foam-based applications with non-drip formulas for easy application.

The Root of the Problem For time-starved consumers, root touch-up products are an easy and convenient solution.

Merchandising ideas The hair care aisle is complex, so be sure your consumers can navigate it as easily with these merchandising tips: Keep it together “With so many brands and options, it can be daunting for the consumer to shop this section,” says Beth Witkowski, John Frieda brand manager. “Block brands together and utilize shelfmerchandising units for unity.” Pop it out “Having out-of-section displays will help drive awareness for consumers during their weekly shopping trip,” says Judi Hoffman, Canadian hair care category brand manager for P&G Beauty & Grooming. Simplify the experience Canadian shoppers are purchasing branded, large-format shampoos and conditioners (in 750 ml or 1 litre bottles) as a trend, according Jennilee Dunwoody of the L’Oréal Paris hair care marketing team.

July | August 2012

Health Check

What’s happening at

Health Check? TM

Carol Dombrow, Heart and Stroke Foundation registered dietitian, prepares a healthy meal

On the Move

rice, taste and convenience top the chart when it comes to what consumers want. These three factors sometimes override nutrition. But this doesn’t have to be the case. A recent trend gaining popularity across Canada is the availability of retailer meal solutions. This type of food attracts a wide range of consumers who want convenient, quality foods at a reasonable price. Retailer meal solutions are in many ways replacing restaurants and giving the power to grocery and convenience stores to attract their shoppers for an after-shopping snack or dinner. Fifty per cent of all purchasing decisions at a grocery store are unplanned, which gives grocery stores the opportunity to

attract consumers to their ever-growing deli counters filled with tasty and convenient meals; a purchase that might have been made at a nearby restaurant otherwise. Health Check has responded to the growing trend of expanding deli counters in stores with an offering of healthy entrées. Currently, British Columbians can find several Health Check ready-to-eat meals in Mac’s Convenience stores and select grocery stores.

Salts shaky future

Health Check app

The Health Check Recipe Helper app is updated weekly and continues to get positive reviews in the media. The free easy-to-use app provides consumers with recipes and allows them to make a shopping list on the go. There are more than 70 recipes in 10 different categories, including desserts, soups, main dishes and vegetarian options, among others. Currently, more than 3,300 Canadians are grocery shopping with the pocket-sized chef. Available at www.heartandstroke.ca/mobileapps

While a small amount of sodium is necessary to maintain health, Canadians are consuming on average approximately 3,400 mg of sodium per day when they should be consuming no more than 2,300 mg per day. More than three-quarters (77 per cent) of the sodium Canadians consume comes from processed food sold in grocery stores and in food service outlets. The Heart and Stroke Foundation is committed to helping Canadians reduce the amount of sodium in their diets. Challenging food companies to reduce the amount of sodium in their products is one practical way that Health Check does this. A study highlighting significant sodium reductions in Canadian food products,

July | August 2012

prompted by the Health Check program, was released in the Canadian Journal of Dietetic Practice and Research in February 2012. The study by Jane Dummer, registered dietitian, identified the role Health Check nutrient criteria played in triggering industry program participants to reduce sodium in their products from 2004 to 2008. The study concluded that 150 products reduced sodium levels to meet the Health Check criteria for a total reduction of 800,000 kg of salt (or 322, 000 kg of sodium), an amount equivalent to 88 dump trucks of salt being driven out of the Canadian food supply.

Health Check

Health Check is talking to Canadians

Health Check develops healthy eating editorials for ofdaily, thesecommunity and online French and English publications throughout the year. Impressions: 11.8 million Health Check healthy eating consumer e-update readership has grown since it was launched in February 2011 to 15,500 English subscribers and 900 French (as of May 17, 2012). Healthcheck.org website traffic: over 250,000 visits annually (over 21,000 per month).

Health Check Back to School Consumer Campaign 2011 • The Health Check Back to School Eat Well & Win Contest (at healthcheck.org) encouraged families to make a healthy start to the school year, and included 10 grand prizes of $1,000 grocery gift cards as well as daily prizes. The two-and-a-half week contest (August 22 – September 9) received over 27,000 entries and 2,000 healthy eating tips. The contest was promoted on online media channels, Facebook, Google AdWords, blogs and on Twitter. healthcheck.org

Health Check continues to be active in social media: Twitter – Health Check and registered dietitians tweeting. Follow us @HSFHealthCheck Pinterest – 10 boards.

YouTube channel – 24 videos Blogs – on healthcheck.org and as guest bloggers Flickr page

What else is 800,000 kg of salt equal to?

17 135 11 17,636 5,161

It would fill nearly 17 backyard pools Would weigh about the same as 135 elephants Would fill 11 single-car garages Would weigh about the same as 17,636 pterodactyls

• The accompanying earned media tour with Heart and Stroke registered dietitians across the country resulted in over 1.7 million impressions with pick-up in print, radio and TV outlets from B.C. to P.E.I. Health Check products were highlighted in an online video and several TV spots. • The 2012 Health Check Back-to-School Time To Start Contest launches August 20 as Canadian families are getting ready for the new school year.

Watch out for the summer 2012 edition of Canadian Health / Santé canadienne for a two-page Health Check education supplement focusing on risk factors and healthy eating. This bilingual consumer magazine is published and distributed by the Canadian Medical Association with a readership of over 2 million. The Health Check Heart & Stroke Healthy Living Calendar 2013, including original healthy and easy everyday recipes, will be distributed to 550,000 Canadian households and feature Health Check licensees.

More studies – and dump trucks – are on the way A follow-up to the sodium study will commence in spring 2012, led by Dr. Mary L’Abbé, Earle W. McHenry professor and chair, Department of Nutritional Sciences, Faculty of Medicine, University of Toronto. This study will examine reductions in sodium levels in Health Check program grocery products between January 2009 and December 2011. During this period, changes to the Health Check sodium criteria came into effect with reductions of between 25 per cent and 70 per cent in many categories. This study will also take an even more comprehensive approach by examining other nutrients.

Would salt approximately 5,161 km of a two-lane highway

™The Health Check logo, Health Check word mark, Heart and Stroke Foundation logo and Heart and Stroke Foundation word mark are trademarks of the Heart and Stroke Foundation of Canada used under licence.

July | August 2012

A taste of CALIFORNIA...

Emphasizing vegetables and fruit is part of healthy eating. California Cling Peaches financially supports the Health CheckTM Program. This is not an endorsement. See www.healthcheck.org 130 g (1/2 cup) Cling Peaches in light syrup: 80 Calories, 0g Fat, 20g Carbohydrate,< 1g Protein.

Tex Mex Bean, Sweet Peppers & Peach Salad

Bring the taste of California to your table with quality canned California Cling Peaches! •

Convenient and economical, especially when fresh fruit is not in season.

•

We start with the freshest California Cling Peaches - hand sorted and quality inspected.

•

They are harvested and canned at their peak, sealing in their valuable nutrients and fresh taste.

•

California canned fruits are packed in either juice or light syrup with absolutely no additives or preservatives used in the canning process.

•

The canning process is one of the safest forms of packing – the high heat and vacuum seal prevent micro-organisms that cause food- borne illness.

For more recipe ideas visit the California Cling Peach Board at:

www.calclingpeach.ca

A participant of Heart & Stroke Foundation of Canada’s Health CheckTM Program

Health Trends

A Healthy

Collaboration The federal government steps up with a national health education program for all stakeholders By Noelle Stapinsky

The number of Canadians suffering with non-communicable diseases such as obesity, high blood pressure and heart disease is rapidly growing. Perhaps not at the astronomical rate of our neighbours to the south, but the deteriorating health of Canadians is costing our health-care system billions of dollars. In response earlier this year, the federal government announced funding for a $4-million countrywide, multi-year Healthy Eating Awareness and Education Initiative.

"I THINK that the way you make substantial and transformational change is to educate."

Retailers have long worked to educate consumers on the right choices. “They’re all responding to consumer demand for increased information,” says David Wilkes, senior vice-president of the Retail Council of Canada (RCC) grocery division. “And addressing these issues is not just about the foods you’re eating or the choices you make from a dietary perspective, it’s about your whole lifestyle.” What’s unique about this program is the huge partnership opportunity it provides to the grocery retailers to work with other

stakeholders nationally, to educate consumers suggestions around appropriate food serving sizes and sugar or sodium intake. “Those about healthy food and lifestyle options. types of things are the opportunities we’re According to a Public Health Agency of looking to work with the government on,” Canada study conducted recently, obesity says Wilkes. rates in Canada doubled in the last 30 years, Although it’s early days and the amount of costing the economy between $4.6 and $7.1 government funding for this initiative is yet to billion. And the Canadian Health Measures be announced, such a forward-looking Survey states that of children and youth – initiative is a unique, national opportunity for ages six to 17 – 17 per cent are overweight and grocers to collaborate on programs with 8.6 per cent are obese. government, health organizations, suppliers If that’s not alarming enough, the fact that and manufacturers to promote healthier these numbers continue to grow should be. foods and better choices for consumers. “We are fully supportive of programs and policies that allow us to partner with the government to provide Health of all Canadians consumers with education on how to make the right Condition 2003 (%) 2010 (%) choices,” says Wilkes. “It’s the Overweight or obese 48.1 50.6 right policy and philosophical Overweight 33.2 33.1 direction because, I think, the way you make sustainable Obese 14.9 17.5 and transformational change Arthritis 16.1 13.6 is to educate.” Diabetes 4.2 5.4 Wilkes suggests educational Asthma 8.5 8.6 communication can be done through a variety of media. High blood pressure 13.0 14.2 The message could be Mood disorder 5.1 6.4 promoted through in-store Pain or discomfort, moderate or severe 9.6 10.6 and online programs, and the Pain or discomfort that prevents activities 10.0 11.4 Canada Food Guide through Source: Statistics Canada 2011, Health Trends

July | August 2012

Health Trends

Snack Attacks on the Rise

Number of Snack Occasions by Daypart

By Joel Gregoire

Measure: Annual Meals Per CapitaL Morning Snacks

The most noticeable change in Canadiansâ€™ diet over the past decade is the growth in snacking, which has been driven largely by a more on-the-go lifestyle. As consumers increasingly embrace mobile computing, and the app revolution allows them to customize their online experience, they are demanding more convenience and on-the-go flexibility from the foods they choose. Enter snacking. Much of the buzz surrounding this growing meal occasion is around health. But while healthier eating is undoubtedly a consideration in consumersâ€™ snack decisions, it should be put into its proper perspective: When asked why they chose a particular snack food, consumers most often cited taste. Health, by contrast, ranked only seventh on the list, surpassed by indulgence and convenience.

Afternoon Snacks

Evening Snacks

120 100 80 60 40 20

2001 2006 2011 Source: The NPD Group/National Eating Trends Canada; Years ending September

Top REASONS FOR CHOOSING SNACK FOODS

26%

21% 11%

Enjoyment

Indulgence

Meal Accompaniment/ replacement

A Routine Habit

Convenience

Health/Weight Control

Oral Health

3% Sharing

Source: The NPD Group/SnackTrack - Canada; Year Ending December 2011

July | August 2012

Average Number of Snack Occasions Measure: Annual Meals Per CapitaL

262

299

308

2001

2006

2011

However, this doesn’t negate the importance of health as a factor in the choice of snack foods. It’s interesting to note that fresh fruit, yogourt, snack bars, and nuts were listed among the top 10 categories. Combined, these categories have shown strong growth over the past five years, well ahead of snack foods in total. Snacking as an important component in maintaining a healthy body weight is supported by our data. Canadian adults of optimal weight had a snack on average 316 times over the 12 months ending September 2011. By contrast, Canadians classified as obese ate substantially fewer snacks – 285 occasions – over the same time frame.

It’s worth noting that when promoting a health message, the time of day matters; Canadians say they are twice as concerned about health when choosing a snack food in the morning. And although consumers often start with the best of intentions when it comes to healthier choices, indulgence takes priority as the day goes on. With the aging population, health is likely to become a growing factor in consumers’ food choices. But it’s important to remember that when deciding on snack foods, taste and indulgence remain top priorities for consumers of any age, so health messages should not be communicated at the expense of taste.

Top Snack Foods Fresh Fruit. . . . . . . . . . . . . . . . . . . . . . . 23%

Snack Bars. . . . . . . . . . . . . . . . . . . . . . . 4%

Yogourt . . . . . . . . . . . . . . . . . . . . . . . . . 6%

Nuts . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3%

Gum. . . . . . . . . . . . . . . . . . . . . . . . . . . . 9%

Potato Chips. . . . . . . . . . . . . . . . . . . . . 4%

Chocolate Candy . . . . . . . . . . . . . . . . . 4%

Cookies . . . . . . . . . . . . . . . . . . . . . . . . . 4% Ice Cream. . . . . . . . . . . . . . . . . . . . . . . . 3%

Breath Mints/Candy Mints . . . . . . . . 3% Source: The NPD Group/SnackTrack - Canada; Year Ending December 2011

When asked why they chose a particular snack food, consumers most often cited taste.

The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, Joel Gregoire more than 1,800 manufacturers, retailers and service companies rely on NPD to help them drive critical business decisions at the global, national and local market levels.

July | August 2012

New products you need to know about!

list it There’s more to moomoo bars Moomoo bars are a healthy snack made from fresh Canadian cheese. Full of calcium and protein, they are a healthy alternative choice to ice cream bars and are perfect for today’s on-the-go active lifestyle. DairyLicious Inc. www.moomoobars.com

“Honey I’m Strong” Shampoo, Conditioner and Rinse-Out Treatment from Herbal Essences Infused with honey, this new collection is designed to help protect against breakage caused from everyday styling. Procter & Gamble www.pg.ca

July | August 2012

Apple Ch!ps Have Appeal

ThreeWorks Apple Ch!ps, now available fat and gluten-free and non-fried, are made with all-natural Ingredients. Apple Ch!ps come in six crunchy flavours, two sizes and one cool can. ThreeWorks Inc. www.threeworks.ca

Versatile Scotties Pocket Packs Available in singles and display-ready 8-packs, new premium quality, 3-ply Scotties Pocket Packs, with their six contemporary designs, are a convenient and functional pocket, purse or bag accessory. Kruger Inc. www.scotties.ca

How Sweet It Is! Sugaresque, the no calorie sweetener, is launching in Canada. With zero calories, all natural ingredients and no aftertaste, Sugaresque is ideal for anyone interested in reducing their consumption of carbohydrates. I-D Foods Corporation www.idfoods.com

July | August 2012

grocery Business Was There

grocery showcase west april 22-23, 2012

Canadian Federation of Independent Grocers staff

Steve Fox, NestlĂŠ (left), Scott Lindsay, Coca-Cola Doug Lovsin Freson Market Ltd.

Brent Battistelli, Chair of CFIG, and Jane Hamel at the 1960s evening event

Kevin Smith, Grocery Business (left), Peter Cavin, Country Grocer

John Scott CFIG President and CEO

Cori Bonina, Stong's Market, at the 1960s evening event

Albert Lum, Buy-Low Foods Honourary Chair of GSW

July | August 2012

Darryl Rowe, McCain Foods (left), Doug Gingrich, Maple Leaf

grocery Business Was There 78th annual

Food and Allied industries Golf Tournament june 1, 2012 Demonstrating their commitment to a great cause, just under 500 golfers braved inclement weather to participate in the 78th Annual Food and Allied Industries Golf Tournament which raised $15,000 for The Grocery Foundation. Next year’s tournament will be held on June 7. For more information go to: www.foodandalliedgolf.ca

Cheque Presentation $15,000 donated to The Grocery Foundation ↑ F rom l eft to right:

Forge Francella, Coca-Cola; Rory Lesperance, Food and Allied Industries Golf Committee; Michelle Scott, The Grocery Foundation

T h e G o l f C o m m i tt e e ↑ F rom l eft to right:

Grant Campbell, Cavendish Farms Christine Tos, Kozy Shack Ent. Peter Davies, Katz Group Canada Michael Furgiuele, Advantage CKN Kevin Smith, Grocery Business Magazine Doug Cussons, DGC Sales & Marketing Inc. Dave Spry, Metro Ontario Michael Marinangeli, MIDEB Consulting Inc. Ray Ibsen, Advantage CKN Forge Francella, Coca-Cola Ltd. Rory Lesperance Angelo Raso, Campbell Company of Canada Jim Hunter, Gay Lea Foods Michele McMillan, Sobeys National

Thanks!

To everyone who turned out to make the day a success. July | August 2012

grocery Business Was There

GLEN WILSON RETIREMENT

MAY 24, 2012, Marriott Hotel, Toronto Glen Wilson retires as chairman of Crossmark Canada after 12 years of distinguished service.

Don Martin, CFO, and Ben Fischer, COO, CROSSMARK USA; Glen Wilson; John Thompson, CEO, CROSSMARK USA; Chris Terrio, CEO, CROSSMARK Canada

Glen and Janet Wilson

Dino Bianco, President Kraft Foods Canada, Mark Ayer, VP Sales, Procter & Gamble

Paul Del Duca, General Manager, Sobeys, Ontario

Brian Carley, Crossmark Canada (retired), Dan Cooney, Sr. Account Executive, Crossmark Canada

Tim Berman, VP Sales, Kraft Foods Canada

July | August 2012

it figures

The

Cautious Consumer

73% 31% of Canadians consider themselves worse off financially than a year ago – versus only 21% better off. 62

July | August 2012

of consumers are trying to spend less on their grocery bill (76% of women, 66% of men)

Takeaway Canadians have become more polarized. Overall, the “value card” is being played to meet those in need, but don’t forget about the higher end consumers who are less concerned about price. Manufacturers and retailers should focus on service, quality, variety and selection to attract these higher income households.

Takeaway With the threat of rising food prices, consumers are trying to do more with less. Value-focused activities will continue to dictate consumer trends in the near future – buying on promotion, shopping at discount retailers and stocking up during deals.

77%

of consumers prepare a shopping list in advance of shopping Takeaway Look for ways to connect with the consumer before they enter the store. Consumers are doing their homework by reading store flyers and surfing online coupon sites. These are key motivators in deciding where to shop and what to buy.

46%

71%

are using coupons as a savings strategy

Takeaway Coupons are back in vogue and are a great way to reward consumers with a price reduction. The benefit is that they are less likely to switch brands if they have a coupon in hand. However, 90% want to save on their current purchase versus a coupon on their next purchase.

Of consumers tend to buy only what they need when they go into the store

Takeaway The majority of consumers are impulsive and they can be motivated to buy once in the store. Focus on in-store merchandising activities to grow basket size.

82% of consumers would rather have a reduction in price versus a bonus product at regular price Takeaway Bonus products may give consumers more, but in the end they would rather pay 25% less for the regular size versus getting 25% more product for the regular price. Consider the costs of launching bonus products â€“ consumers donâ€™t see them as valuable as immediate savings in their pocket.

Carman Allison is Director of Consumer Insights for Nielsen in Canada and is responsible for creating thought leadership insights for CPG manufacturers and retailers.

all stats courtesy: N ielsen

Carman Allison

July | August 2012

Perry’s Point of View

THE “BUCK” STOPS HERE T

here is no faster-growing segment in Canadian retailing than dollar stores. There are about 1,400 chain dollar stores in Canada and a few hundred more mom-and-pop stores selling similar goods. The category is growing at about 9 per cent per year, and 10 years from now Canada could easily have 3,500 to 4,000 of these stores doing $10 to $12 billion in total sales. Given that this entire segment barely existed 10 years ago, this is an impressive run, and tough to ignore. What consumers love about dollar stores, besides the pricing, is the convenience and simplicity. The stores are small, close by and carry a limited selection in a wide range of notional categories, from pencils to pregnancy tests. These categories include some dry food, particularly in the snack, boxed-meals and baking segments. Not one grocer in Canada has noticed any negative impact on sales when a dollar store opens nearby. Like warehouse clubs, dollar stores are stealthy merchants, eschewing advertising, carrying a limited and everchanging assortment, and entirely focused on their own store as a unique destination shopping trip. Branded food suppliers seeking to capture some of the dollar-store growth have had to treat this format almost like warehouse clubs, adapting their offerings to the unique needs of the channel by developing packages and programs largely unsuitable

July | August 2012

for the mainstream trade. Nevertheless, numerous grocers, starved for growth, have tried to latch onto the dollarmerchandise trend, some by offering entire zones of dollar merchandise, others by bringing in smaller sections or occasional large presentations of these types of goods. The results have been almost uniformly brutal. Recognizing that the procurement skill set for dollar merchandise bears as much resemblance to food buying as it does to line dancing, grocers quickly turned to brokers and rack-jobbers, who stuffed the sections with goods that met profit targets, rather than goods customers wanted. This is not dissimilar to the efforts made by grocers to capture the warehouse club shopper 15 years ago, which resulted in numerous failed programs, a wasteful diversion of resources, and no slowdown in the growth of the clubs. Sometimes, the trick to successful management is deciding what not to do. In the case of dollar stores, it’s best to ignore them. Like warehouse clubs before them, they are a specialized business that is difficult to duplicate and impossible to blunt. Instead, be knowledgeable of packages and offerings that suppliers are placing into the channel – not to stop them or copy them, but to learn about

convenience products and price points. You might be surprised that, in many cases, the price per weight of a branded grocery product

Not one grocer in Canada has noticed any negative impact on sales when a dollar store opens nearby. in the dollar channel is not any lower than in your own store. Be cognizant of the type of traffic that co-located dollar stores can bring to your parking lot, since the concepts have a broad appeal across all ethnic, age and income levels. Embrace your nearby dollar store and don’t waste resources trying to duplicate it.

Perry Caicco is Managing Director at CIBC World Markets. He has worked for 15 years in the supermarket, general merchandise and packaged goods industries with Loblaw Companies Ltd. and Coca-Cola. Perry is a founding Grocery Business Advisory Board member.

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Interac, the Interac logo, Interac Flash, “Everyday Simply” and the armoured truck design are trade-marks of Interac Inc. Used under license.

Wake Up Your Biscuit Sales With

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Start Ship July 16, 2012 • Contact Your Kraft Sales Representative Today! 1 BASES II December 2011

July/August 2012

Published on Aug 7, 2012

The newspaper headlines are stunning: 31,000 new retail jobs are being added as Target and Walmart ramp-up over the next two years. And whil...

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