Page 1

March / April 2014 Vol 4 | No 2

$9.95

exclusive

T&T’s Cindy Lee

Trailblazer

PM # 42211029

The Power of Mentoring Circles

Pg 59

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Grocery Business March | April, 2014 Volume 4, Issue 2

contents DEPARTMENTS 7

Front End

72 It Figures

Elegant Eataly coming to Toronto?

74 Perry’s Point of View

Grocery People

Metro, Sobeys win Foodland Ontario excellence awards

11 Open Mike

Time to Tune up for Spring & Summer

19 Shelf Life

Selling the Sizzle

70 Launch It, List It

4

March | April 2014

New and Now Products

The Healthy Senior

The Forgotten Consumer


ON THE COVER

22

Trailblazer

How Cindy Lee created a modern Asian supermarket shopping experience

68

59

FEATURES 13 Cultivating Public Trust in Agriculture

15 Conference Call

Leslie Sarasin on FMI Connect

16 Are Flyers Effective?

The latest BrandSpark study

27 A World of Opportunity

43 USA: A Trusted Partner

T he U.S. Foreign Agricultural Service places a premium on safe and nutritious food products

67 2014 Best New Product Award Winners

61 The Magic of Medjools 62 CPMA Show Highlights

Program at a Glance

63 Produce by the Numbers

68 Night to Nurture Gala

Canada’s fast-growing ethnic market

31 Nations Fresh Foods

T aking grocery and prepared food in a fresh direction

39 Mentoring Circles

What goes around, comes around

43

C O V E R P H O T O : V E N T U R I + K A R PA

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March | April 2014

5


Front End

MARK YOUR CALENDAR

METRO, SOBEYS WIN FOODLAND ONTARIO EXCELLENCE AWARDS Foodland Ontario has singled out two Ontario Metro Inc. stores, in Mississauga and Orillia, and a Sobeys store in Kitchener, to receive Awards of Excellence for in-store marketing. The province recognized a total of 66 grocery retailers as part of its Foodland Ontario Retailer Awards for their outstanding efforts to promote fresh Ontario food. The store displays increase consumer awareness and education about the variety of fruits and vegetables grown in the province. This year, 3,500 entrants submitted more than 5,000 photographs showcasing their in-store Ontario fresh produce promotional displays. Foodland also singled out Sobeys Inc., Food Basics (Metro Ontario Inc.), and Longo Brothers Fruit Markets Inc. with Vision Awards, which honour retail head offices for outstanding corporate support. “We all have a role to play in making the good things that grow in Ontario our first choice whenever possible, and I want to thank all of the winners for going the extra mile to do just that,” said Kathleen Wynne, Ontario Premier and Minister of Agriculture and Food, who presented the awards at a special luncheon. “Our government is pleased to support the people who work hard to grow, market and promote fresh, Ontario food.”

March | April 2014 Volume 4, Number 2

Co-Publisher and Executive Editor Karen James 416-561-4744 KarenJames@grocerybusiness.ca

Executive Vice-President Content and Market Development Dan Bordun 416-817-5278 DanBordun@grocerybusiness.ca Contributing Editors Angela Kryhul, Sally Praskey

Creative Agency Boomerang Art & Design Inc. boomart.net Subscription changes & updates or general inquiries: info@grocerybusiness.ca

April 2-4 SIAL Canada Montreal April 2-4 Canadian Produce Marketing Association Conference Vancouver April 6-7 Grocery Showcase West Vancouver April 10-11 Canadian Health Food Association Conference Vancouver April 16 FCPC Supply Chain Symposium Mississauga, Ont. April 24 FCPC Health & Wellness Forum: The Spectrum of Sweet Mississauga, Ont.

Co-Publisher and Content Director Kevin Smith 416-569-5005 KevinSmith@grocerybusiness.ca

grocerybusiness.ca

Contributors Perry Caicco, Michael Marinangeli, Margaret Hudson

Grocery Business Advisory Council Phil Donne, Campbell Company of Canada Tom Barlow, Canadian Federation of Independent Grocers

June 3 Excellence in Retailing Awards Gala Toronto June 3-4 Store Conference 2014 Toronto June 4 Grocery & Consumer Goods Leadership Symposium Toronto June 4 Grand Prix New Product Awards Toronto

For a complete list of industry events, visit grocerybusiness.ca/calendar

grocerybusiness.ca Chris Terrio, CROSSMARK Canada Inc. Nancy Croitoru, Food and Consumer Products of Canada Tim Berman, Kraft Foods Canada Michael Marinangeli, MIDEB Consulting Inc. Cheryl Smith, Parmalat Canada

Contributing Writers Peter Diekmeyer (Montreal) Gabriella Nobrega

May 13 FCPC 2013 Sales Symposium Mississauga, Ont.

Mark Ayer, Procter & Gamble Inc. David Wilkes, Retail Council of Canada Cori Bonina, Stong’s Market

@grocerybusiness © Copyright 2014. 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 Mailing Address Grocery Business Media 390 Queen’s Quay W., PO Box 40085 Toronto, ON M5V 3A6

Perry Caicco, CIBC World Markets

Sign up for our eNewsletter at grocerybusiness.ca March | April 2014

7


Front End

Elegant Eataly coming to Toronto? By Sally Praskey

Rumours are rife about Eataly, Italy’s elegant and iconic food emporium opening its first location in Toronto. One article speculates that the food emporium will be situated in the trendy Yorkville neighbourhood in downtown Toronto, while an industry insider is betting on the hot King West district of the city. The company has not confirmed either location. Wherever the specialty food behemoth eventually settles, it will impact the high-end food space currently occupied by Whole Foods Market and Pusateri’s Fine Foods which, are both situated in the Yorkville area. Founded in Founded in 2007 in Turin, Italy, by Oscar Farinetti, an early proponent of the Slow Food movement, Eataly now boasts 27 stores around the globe. The New York City and Chicago locations have proven wildly

popular with foodies. The retailer is expected to be equally welcome in Toronto. Eataly is much more than a store; it is a food experience, encompassing fresh and dry groceries, restaurants, cafes, tasting areas, food stalls and shops, all under one roof. The recently opened Chicago location occupies the spacious former ESPN site just off Michigan Avenue, and boasts more than 10,000 products and 23 eateries – even a Nutella stall – in 63,000 square feet. And there is a Canadian connection; Eataly is said to be in talks with Selfridges, a London, Eng., department store chain owned by the Weston family, who also owns Loblaw. Selfridges is apparently undergoing expansion, although no future plans have been confirmed.

Transitions The Nielsen Company has promoted Carman Allison to the position of vicepresident, consumer insights, North America. Previously, Allison was director of consumer insights North America. Grant LaMontagne has joined Kimberly-Clark North America as president, customer development. Previously, he was senior vice-president and general manager for the Clorox Professional Products business, in the U.S.

8

March | April 2014

Sobeys Inc. has appointed Paul Beesley as chief corporate development officer. Previously, Beesley was the executive vicepresident and chief financial officer of Empire. François Vimard (right), who replaces Beesley as Empire’s CFO, will continue to serve as executive vice-president, Sobeys Inc. Stewart Mahoney (left) will lead the treasury and investor relations functions for both Empire and Sobeys.

Sobeys has promoted Clinton Keay to the position of executive vice-president, finance, from senior vice-president and chief information officer. Paul Jewer has been named chief financial officer of High Liner Foods Inc. of Lunenburg, N.S. Previously, Jewer was CFO of Sobeys Inc. Alix Box is the new president and CEO of Second Cup Ltd. Box comes from luxury department store retailer Holt Renfrew, where she was senior vice-president, retail.


In Memoriam

Carol Christison Carol L. Christison, long-time and well-known International Dairy-Deli-Bakery Association (IDDBA) president, passed away on March 4, 2014. In 1982, Christison left an executive position with the American College of Sports Medicine to take over the reins of what was then called the International Cheese & Deli Association. Over the next 33 years, she built the Madison, Wisconsin-based Association into a leading North American industry organization. Under Carol’s management, the IDDBA grew from 100 corporate members to 1,500, and from fewer than 1,000 attendees to nearly 9,000 at its highly regarded annual trade show and conference. “We are grateful for all that Carol accomplished in over 30 years of service,” said William Klump, current chairman of the board and senior vice-president of marketing at Butterball. A successor has yet to be named.

Rossann Williams has been appointed svp and president, Starbucks Canada. Previously, Williams led the company’s talent acquisition, talent management, diversity, and community investments functions. Andy Gross (left), CEO of discount retailer Giant Tiger, ends his tenure as of August 1, 2014. President Greg Farrell will assume the title and responsibilities of CEO. David Smith has joined Lantic Inc. as marketing manager. Smith was most recently senior manager, customer marketing, at Newell Rubbermaid.


Front End

Retail Council of Canada: New Appointments Susie Grynol joins RCC as vice-president, federal government relations. Previously, Grynol was the vice-president of policy and public affairs with the Association of Consulting Engineering Companies, where she spearheaded the Association’s government advocacy and public relations, and oversaw internal communications and events. Grynol is also president of the board of directors for the Canadian Society of Association Executives - Ottawa Chapter, and a member of the Government Relations Institute of Canada. Greg Wilson has been appointed director, government relations (British Columbia). Based in Vancouver, Wilson will represent the interests of B.C. retail merchants across diverse public policy files, including economic and fiscal policy, labour, and environmental issues. Wilson has provided strategic, policy and operational advice to elected officials, political parties and candidates over a 20-year career.

Carole Fortin joins RCC as director of government relations and public affairs, grocery division. Fortin is now responsible for grocery-related issues in RCC’s Quebec office. Fortin has many years of experience in the Quebec bio-food sector, and a thorough knowledge of its players and its challenges. Kyle Tomlin has joined RCC as director, conferences and events. Previously, Tomlin was senior project manager and team leader at the International Council of Shopping Centers, where he led a team responsible for all Canadian programming, including conferences, educational forums and local events.

Susie Grynol

Greg Wilson

Carole Fortin

Kyle Tomlin


Open Mike

Time to Tune up for

Spring & Summer By Michael Marinangeli

The best retailers are those that do an outstanding job on seasonal merchandising. They are most likely to retain their customer base and enhance their customers’ loyalty. Seasonal merchandising is a key component of your value proposition, and should be treated as a strategic element of your overall store positioning. The spring and summer seasons provide an array of opportunities to showcase your store. After the winter blahs, customers are looking for something to ignite their senses and appeal to their palates. It all starts with a game plan. The planning needs to begin months (in some cases, a year) in advance to allow your procurement people the opportunity to source unique, differentiating and quality products. Having the right items at the right time in the right quantities at compelling prices is a formula for success. Here are five tips to get your spring and summer program in gear. Make sure you are competitively priced The best retailers price their seasonal items on an EDLP pricing platform for the duration. They still run feature prices, but never have foolish prices on the non-feature weeks. Give your store a seasonal tune-up Now that another winter season is finally over, make sure that all cold-weather reminders such as ice salt and Christmas merchandise are removed from the selling area.

grocerybusiness.ca

Then, take the following steps. • Install new in-store signage to create a seasonal mood and appeal to the senses. • Alter the design of your flyers to depict the change of seasons. Allocate sufficient space to showcase sensitive seasonal items at great prices. • Clean thoroughly and paint where required to create a great first impression. Create massive, impactful and well-signed displays Display seasonal items well before consumer demand warrants it. Your customers will take notice and, when the time is right, return to your store to purchase them. Scrutinize your use of technology and loyalty programs • Loyalty programs are reward programs, and are not a substitute for competitive prices. Yes, customers like to collect points, but not at the sake of higher prices. Loyalty programs can be used to augment your offering, but should not be the primary driver. The discounters don’t have loyalty programs, and yet they are gaining share. • Customers are starting to become inundated with promotions on their smartphones. Regardless, don’t cut back on your traditional forms of communication, such as your flyer, since they continue to be effective. • Be cognizant of consumer concerns about privacy and sharing of information.

Execute the basics better than the competition • Make sure your staff members are fully engaged and understand the game plan. • Ensure that key seasonal items are displayed in prime locations at competitive prices. • Position your fresh departments to take full advantage of their seasonal appeal. • Provide adequate staff to service customers, especially during sensitive times of the day. • Ensure that your store is bright and clean. A successful spring and summer program builds a solid foundation for fall merchandising, which holds an abundance of thematic events, such as Back-to-School, Baking, Thanksgiving, Halloween, Grey Cup and Christmas. Building strong momentum early in the year leads to higher sales and profits as the seasons unfold.

Michael Marinangeli is a principal at MIDEB Consulting Inc. and a retailing veteran with more than 40 years of experience. Contact: mjmarinangeli@gmail.com Michael is a founding member of the Grocery Business Advisory Board.

March | April 2014

11


STEVIA leaves contain naturally sweet components.

速 Registered Trademark of Lassonde Industries inc.

For additional information, please contact your Lassonde representative at 1.888.200.9955 or visit LASSONDE.COM


Perspective

CULTIVATING

PUBLIC TRUST IN AGRICULTURE By Margaret Hudson, President, Burnbrae Farms Limited

Margaret Hudson

Farming – feeding Canadians – is an important, demanding and rewarding occupation, and is one of Canada’s most innovative industries. As a farmer, I am proud to contribute to a safe, nutritious and reliable food supply at an affordable price. A century ago, 50 per cent of Canadians farmed; today, farmers make up less than two per cent of the population. According to Farm & Food Care (FCC), productivity on Canadian farms has jumped by 300 per cent since the 1950s, allowing today’s farmers to grow the food we need using fewer resources and less land than ever before. While the number of farmers has dwindled, the role we play in Canadians’ lives has never been more important. On any given day, millions of Canadians purchase and consume the food we have grown or raised. But that doesn’t guarantee that consumers trust us, or what we do. How do we in agriculture foster and maintain public trust? How do we not only ensure environmental stewardship and the well-being of our animals, but communicate our commitment to do what’s right to the public? I believe there are a number of steps that the agriculture community can take.

1. Do the right thing. If you are responsible for animals in your supply chain, then you must ensure their care and welfare is your top priority. Taking care of the animals is a moral imperative and good business. At Burnbrae Farms, our success is dependent upon the quality of care and attention we provide to our hens. We adhere to animal care codes of practice, and work closely with FFC and leading universities to ensure that we integrate new standards for animal care into our practices. 2. Adhere to best practices. It’s not enough to be committed to best practices; we must also ensure these commitments are followed consistently. The best way to assure best practices are being used on the farm is by regularly reviewing processes, continually training staff, and putting in place policies to make certain that proper farm protocols are being followed at all times.

3. Tell your story. More than ever, Canadians expect greater transparency from companies. Consumers want to know more about where their food comes from, and how it was grown or raised. As leaders in Canadian agriculture, we have a responsibility and an opportunity to provide the information they want about our innovations, best practices, and the way responsibly produced food goes from our farms to Canadians’ tables. We have an important story to tell, and can benefit from the opportunity to be more transparent through the multitude of social media channels. By sharing our stories and increasing transparency, agriculture can build bridges and strengthen relationships between farmers and the communities we feed. We, at Burnbrae Farms, are committed to doing all that we can to earn and retain public trust. Doing the right thing not only allows us to sleep well at night, but it is also the best road to sustainable business success.

PHOTO: CHRIS SINCLAIR

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13


Your challenges our solutions

Buy your badge at sialcanada.com and get 35% off

an event by

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april 2, 3 & 4, 2014 Palais des congrès de MontrÊal By Years G R O U P

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Conference Call

June 10-13, 2014, Chicago, Illinois

FMI CONNECT:

THE GLOBAL FOOD RETAIL EXPERIENCE This coming June in Chicago, the Food Marketing Institute (FMI) will host FMI Connect, its “re-imagined” show and conference. FMI Connect has always been a pillar event for North American retailers and vendors. However, the new approach and new format with several co-located partners promises to raise the bar. Grocery Business had an opportunity to sit down with Leslie Sarasin, president and CEO of FMI, to learn more about what the new format will offer retailers and their trading partners. Grocery Business: FMI Connect is being described as a “re-imagined” trade show and conference. What does that mean for attendees? Leslie Sarasin: The goal for our re-imagined initiative, FMI Connect, is to create an annual global food retail experience for attendees that engages all their senses and faculties. We want to inspire them by giving them the sights, sounds, tastes and touches – in short, the experience – of the food retailing world.

We’ll be setting the tone for our event in arguably the food capital of the U.S., Chicago, with an opportunity for attendees to explore the Retail Experience of the Future. FMI Connect will provide solutions to what our members deem the greatest food retail challenges, how to: hh Grow basket size hh Increase customer trips hh Improve margins hh Increase market share hh Develop leadership

GB: Why are you co-locating with other groups? LS: One of FMI’s Strategic Plan pillars is an initiative titled Total Store Collaboration, which calls for FMI to lead in developing an executive forum charged with driving overall industry growth and improving operational efficiencies. This means ever increasing the circle of partners with whom we collaborate up and down the food chain.

Leslie Sarasin President and CEO, Food Marketing Institute

GB: What are some of the show highlights? LS: The food retail business is driven by how well you connect with the customer, and so our global food retail experience at FMI Connect aims to represent a microcosm of this type of engagement for attendees. One of the most exciting and flavourful expressions of FMI Connect will be our second annual Supermarket Chef Showdown. The competition ignites the culinary expertise found in neighbourhood supermarkets. As with all our signature events at FMI, education is a focal point, but the differentiator at FMI Connect will be how we bring the classroom to life through our content. We’re diving into: hh Fresh merchandising hh Retail technology innovation hh Leadership skill development hh Consumer engagement hh Private-brand growth hh Health and wellness strategies GB: What aspects of FMI Connect will help retailers best understand the way forward?

FMI CONNECT WILL BE CO-LOCATED WITH THESE PARTNERS: » United Fresh 2014 » InterBev Beverage

» PMMI – The Association for Packaging and Processing Technologies

» USDA Food Showcase

» The FMI Foundation Retail Food Safety Forum

LS: I’m confident that food retailers will experience innovative ways to create a better shopping experience today and going forward. Food retailers have survived the last 30 years on a one-percent net profit margin, and they’ll continue to offer their customers value and service. For more information, go to fmiconnect.net

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The Consumer

ARE FLYERS EFFECTIVE? Whether the preference is for print or digital, BrandSpark’s latest research says that bargain-hunting shoppers are using flyers more than ever.

Are you reading flyers more, or less, than a year ago?

66

What would encourage you to use digital flyers rather than print?

27

%

%

7%

The ability to add items to a printable personal shopping list

less often

Source: Brandspark Canadian Shopper Study, 2014

Every week

16

20

Every month

March | April 2014

16%

Content and promotions based on my shopping habits

12% 11%

Preferred flyer format among multi-format users

Digital/ Online

29% 27% 27%

18% 22% 21% 10

Faster load times online

20%

39

30

40

50

60

Less than every month

70

80

%

Print

+56% vs. 2013

%

0

17%

84%

17%

Digital/Online Circular

22%

The ability to link to my shopping and/or coupon apps

The ability to save paper

6% 4% 5%

Print Flyer In-Store

28%

Links to more product info

How often do you look at weekly circulars? Print Flyer Received at Home

34%

More info on weekly promotions

more often

THE SAME

78%

Exclusive coupons

80

Never

90


MARKET FRESH

After more than 20 years as a world leader in store technology, Toshiba understands the importance of design in perfecting the in-store experience. And it’s not just about aesthetics. It’s about designing equipment like the TCxWave™ that can withstand the rigors of a messy market – and that runs software as powerful as it is simple. It’s about servicing that won’t interrupt store operations and entire stores that embody a brand promise. We know design. Let’s talk. Discover how Toshiba’s commitment to design makes our POS systems truly stand out by downloading Edison Group’s POS retail-hardening comparison paper at togethercommerce.com/design

Toshiba, Together Commerce, TCxWave and related logos are trademarks of Toshiba Corporation, Toshiba Global Commerce Solutions, Inc. (“TGCS”) or their affiliated companies in Japan, the United States and/or other countries, registered in many jurisdictions worldwide. Referenced Edison comparison paper sponsored by TGCS. Copyright © 2014 TGCS.


DRIVING

G N I L GRIL

INNOVATION

2014 LIMITED EDITION smokehouse maple RUB MARINADE

smouldering smoked applewood

steakhouse onion burger SEASONING

maple bacon SEASONING

smoky cedar & ale RUB MARINADE

JA MM IN’

Jamaican Jerk

SEASONING

86% 86%

Holding Holding dollar share of the dollar share of the Total BBQ Spices and Total BBQ Spices and 1 Seasonings category Seasonings category1

CONSUMER SUPPORT FOR

2014

• TV commercial will air during key times of the grilling season • Digital support through the Club House La Grille Facebook page and the Club House website • PLUS public relations support for new product launches

STOCK UP & Y EARTLE ! OF N

Media plan is subject to change

+7% Growth

The total Club House La Grille portfolio is growing at +7%, outperforming the Total BBQ category which is flat versus prior year.2

1

www.clubhouse.ca 1-800-265-2600

Many Club House La Grille display options are available, contact your McCormick Representative for more details.

Nielsen MarketTrack; National All Channels, 52 weeks ending July 27, 2013 Nielsen MarketTrack, National GB+DR+MM, 12 weeks ending June 29, 2013. Total BBQ = Rub Marinades + Wet Marinades + BBQ Spices + BBQ Sauces. Total Club House La Grille portfolio = Rub Marinades + 30 Minute Marinades + BBQ Spices + BBQ Sauces

Seasonings Floor Display 900962414

2

* Reg. TM/MD McCormick Canada


Shelf Life

SELLING THE

Sizzle Millennials are becoming a generation of grillers, according to the Ipsos 2013 Consumer Grilling Survey. The survey found that grilling is one of the Millennial generation’s favourite summer activities, and all generations – Baby Boomers, Generation X and Millennials – prefer to grill beef, especially burgers and steaks, over other meats.

MERCHANDISING TIP HERE’S THE RUB: Hot flavours are cool… so merchandise barbecue rubs and marinades near your meat displays, and include them in your flyers along with recipes and grilling tips.

80% 74

1. Strip Steaks, Boneless 2. Rib-eye Steak, Boneless 4. T-Bone Steak, Bone-in

RUBS

60%

GRILLING STEAKS 3. Top Sirloin Steak, Boneless

HOW STEAKS ARE PREPARED FOR THE GRILL

75

TOP 5

MARINADES

78

78

5. Rib-eye Steak Bone-in Source: Beef Checkoff

73

65 57

57

40%

WHAT’S UP IN SUMMER SALES? (unit growth)

20%

Gen X/Boomers

Young Millennials

Mature Millennials

Mature Millennials with Kids

grocerybusiness.ca

Frozen Fruit +21% Flavoured Drinks +17%

THE PRIMARY GRILLER?

77% men 23% women

Foccacia Bread +22%

18% of Millennials vs. 12% of older

consumers say they prefer to grill “whatever is on sale”

Carbonated Water +17% Corn Chips +15% Source: Nielsen, BBQ season week of August 24, 2013

March | April 2014

19


VENDOR

Coffee is a dynamic category that continues to draw consumers’ and retailers’ attention. Thanks to innovations, the coffee category

ADVISOR

grew by 30% in the last 2 years, reaching one billion dollars.1 The single-serve segment drove this growth by changing the way people consume coffee and other hot beverages. Make sure to attract and retain these valuable single-serve shoppers by highlighting the technologies they are looking for and by offering a wide variety of products. By giving these important shoppers some extra guidance on the shelves, and organizing your hot beverage aisle in a way that makes shopping easy and encourages additional purchases, you can make your store the go-to destination for their purchases.

• COFFEE • SINGLE-SERVE BEVERAGES

1 Source: Nielsen MarketTrack, National all channels, 52 weeks ending December 14th 2013

53%

SPONSORED BY

MORE

SINGLE-SERVE COFFEE BUYERS SPEND MORE AVERAGE COFFEE $ HOUSEHOLD EXPENDITURE PER YEAR

$63

$118

TRADITIONAL COFFEE

SINGLESERVE COFFEE

(Bags & Cans)

Source: Nielsen Homescan, National Retail Trade, 52 weeks ending September 28 2013

SINGLE-SERVE SEGMENT GENERATES GROWTH IN VARIOUS CATEGORIES

SINGLE-SERVE SEGMENT IS THE HIGHEST SOURCE OF GAIN AT GROCERY NATIONAL CATEGORY RANK LATEST 52 WKS $135,514

$ VOL % CHG

$132,811

+70%

+44%

+6%

SINGLE-SERVE TEA

SINGLE-SERVE COFFEE

SINGLE-SERVE HOT COCOA

$ GAIN VS. LAST YEAR

$88,172

44%

10%

$54,438

4%

SINGLE-SERVE BEVERAGES (incl. Tea and Hot Chocolate)

YOGURT PRODUCTS REFRIGERATED

NATURAL CHEESE EXACT WEIGHT

7%

LUNCHEON MEAT EXACT WEIGHT

$52,449

25%

PEANUT BUTTER

Make sure you allow the appropriate space to this growing and profitable segment! Source: NIELSEN, Top 500 Category ranking, National All Channels, 52 weeks ending June 1st, 2013 (exclude remaining and unspecified categories, cosmetic, general merchandising and OTC pharmacy) and Nielsen MarketTrack and Strategic Planner (Single-Serve beverages), National All Channels, latest 52 weeks ending Dec 14th 2013

$ VOL % CHG

-8%

-3%

REGULAR COFFEE

INSTANT COFFEE

-2%

REGULAR TEA

0%

REGULAR HOT COCOA

Source: NIELSEN, Cross Category Share Performance - SS Report all cat - 52 wks – December 14th 2013


G M C R C A N A DA - Y O U R P A R T N E R T O B U I L D A S T R O N G E R C AT EG O R Y

SINGLE-SERVE SYSTEMS ARE GETTING MORE IMPORTANT IN THE CANADIAN MARKET

COFFEE MERCHANDISING TIPS

PENETRATION SINGLE SERVE (% of the Canadian households having a single-serve brewer at home)

16%

22%

25%

27%

June 2012

Feb. 2013

June 2013

Dec. 2013

More consumers are looking for products offered in the single-serve format; therefore, it is necessary to attract them with highly visible, dedicated section. Source: At Home Installed base, December 2013

INSIGHT:

SAME COFFEE

14%

SINGLE-SERVE CONSUMERS BUY MANY VARIETIES

86% VARIOUS BLENDS, BRANDS, FLAVOURED, ETC.

Out of the 49% of grocery shoppers that buy more than 1 item

Make sure to have a wide selection of single-serve products to choose from in order to appeal to the consumers and become their DESTINATION for single serve. Source: GMCR Shopper study, SVM, December 2013, 1026 respondants

INSIGHT: INSIGHT:

COFFEE IS A PLANNED PURCHASE BUT SINGLE SERVE HAS A STRONGER IMPULSE SIDE

SINGLE-SERVE COFFEE

REGULAR COFFEE

26% 74%

22% 78%

UNPLANNED PLANNED

UNPLANNED PLANNED

Put secondary displays in strategic locations to help increase impulse purchase! Source: GMCR Shopper study, SVM, December 2013, 1026 respondants

• Allocate proper space to the Hot Beverage categories, which are one of the fastestgrowing categories in the centre store. • Dedicate a section to single-serve products; should now be considered on its own. (The gold-standard section is 16 feet long) • Single-Serve section should be located between coffee and other hot beverages, as many hot beverages are offered in single-serve format. • Conventional banners should still have a Premium/Specialty coffee section to differentiate (Bulk coffee, espresso, whole beans, regional, etc.).

MERCHANDISING IN SINGLESERVE SECTION Products on shelf should be regrouped by: • Brewing system like Keurig® and TASSIMO (Every single-serve brewing system has its own format of container. They are not compatible with each other.) • Type of beverages (highlight categories outside of coffee to increase awareness and impulse sales) • Brand • Price Tier (allow consumer to understand the offer in the category)


exclusive

Trailblazer CINDY LEE NEVER SET OUT TO BECOME AN ACCLAIMED RETAILER AND AWARD-WINNING ENTREPRENEUR. SHE SIMPLY WANTED TO CREATE A COMFORTABLE PLACE WHERE IMMIGRANT HOUSEWIVES AND MOTHERS, LIKE HERSELF, COULD SHOP FOR THE TRADITIONAL ASIAN FARE THAT THEY WERE USED TO BUYING BACK HOME. HER GOAL: A MODERN SUPERMARKET WITH A DIVERSE, FRESH SELECTION, WASHROOMS, SHOPPING CARTS AND PARKING, JUST LIKE MAINSTREAM GROCERY STORES.

by Sally Praskey


Lee has achieved her goal, and so much more. T&T Supermarket Inc. (“T&T” stands for two of the original investors, as well as the names of Lee’s two daughters, Tina and Tiffany) is now Canada’s top Asian grocery chain. Its steady growth over the years did not go unnoticed; in 2009, Loblaw Cos. Ltd. snapped up the chain for $225 million.

“The most enjoyable part is influencing Asian food trends in Canada.”

Born in Taiwan, Lee is one of eight children of an entrepreneurial father who left revolutionary China in 1948. After graduating in finance and taxation from National Chengchi University in Taiwan, she arrived in Vancouver in 1976 with little English. She married her husband, Jack, a food importer and real-estate developer whom she had met at university, in 1978. When Jack needed an anchor store for a mall he was developing in Richmond, B.C., Lee seized the opportunity to realize her vision, and in 1993, T&T Supermarket was born. It has since multiplied to 22 stores, in Greater Vancouver, Calgary, Edmonton, Ottawa, and the Greater Toronto Area. While Lee remains at the helm of the business as CEO, her daughter Tina, executive director of strategy and operations, and heir apparent, plays an active role. In 2004, the Global Federation of Chinese Business Women presented Lee with its Hua Guan Award. Intended to honour outstanding Chinese businesswomen worldwide, it is awarded to 10 recipients every three years. “I am very proud of receiving the award, and will continue to lead my team to work hard to serve our customers and communities,” says Lee.

P H O T O S : V E N T U R I + K A R PA

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Cover Story “Being part of the Loblaw family gives us the opportunity to introduce our new authentic T&T private-label products to mainstream Canadians.”

Grocery Business had an opportunity to speak with Cindy Lee. Grocery Business: Why did you decide to open a supermarket? Cindy Lee: Shopping for Asian goods was a very uncomfortable experience for me as a housewife who had just moved to Canada. There was only Chinatown, which had no parking, no shopping carts, and no washrooms. It made it very difficult for me as a mother – I would have to carry multiple shopping bags while trying to keep my three children close by, often in the rain. I wanted a supermarket that carried all the Asian goods in a comfortable and clean shopping environment – like mainstream supermarkets in our neighbourhood. When my husband asked me to help run a supermarket that would be the anchor tenant for his new shopping mall, I seized the opportunity to go from being a customer to being an operator. GB: Your first year was challenging – what did you learn from that experience? CL: We almost went bankrupt in the first six months. I learned from my father that, in order to succeed, I needed to surround myself with people who shared my vision, had industry experience and had great business sense. I needed to stop thinking I could do it all myself. So, in a critical time for the business, I stopped buying products and stocking shelves, and focused on recruiting the right talent.

24

March | April 2014

GB: The number of T&T stores grew quickly. Do you think this pace will continue? CL: Yes, we expect steady growth in our business, building on two trends that remain strong in Canada: steady immigration from East Asian countries, and an evolving appetite for Asian cuisine from non-Asian Canadians. We plan to reach new customers by opening new stores, and having our products available through Loblaw company stores. GB: What do you consider the biggest challenge to continued growth? CL: We have more competition now than ever before, between new independent operators and mainstream retailers targeting Asian customers. Everyone is trying to get a piece of the pie, so it is getting more difficult to maintain healthy margins. GB: What part of the business do you enjoy the most? CL: The most enjoyable part of running T&T is being able to truly influence Asian food trends in Canada. I treat my job as more than just making money. It is about making life easier for the hardworking housewife, offering her foods that she misses from her home country, and keeping tradition and culture alive for the next generation growing up in Canada. I share this passion with our team and remind them to think as a housewife, not just think for the housewife.


I also enjoy travelling around the world and bringing back good products, business thoughts and solutions that work well in Canada. GB: The acquisition by Loblaw was a milestone. What synergies have you realized as a result? CL: T&T actually operates quite independently from Loblaw, but I would say the best synergies have been real estate, knowledge exchange, and access to new customers. Loblaw’s property group has been instrumental in securing new sites for growth. On knowledge exchange, we have learned a lot, particularly around business planning and data analysis, that helps us improve our operational efficiencies. Lastly, Loblaw brings enormous scale and reach. While the majority of T&T’s core customers are Asian, being part of the Loblaw family gives us the opportunity to introduce our new authentic T&T private-label products to mainstream Canadians. GB: With more mainstream grocery stores carrying Asian food products, what does T&T need to do to maintain its competitive advantage? CL: We must stay focused on our mission and core values. We want to be the best in Asian fresh, and to achieve that I emphasize the importance of innovation that inspires – freshness, like a traditional wet market, and authenticity that touches the heart. If we can deliver these goals together with great customer service, customers will be confident that T&T is the best destination for Asian food products. GB: As ambassadors for Chinese cuisine, you began holding Night Markets, which are wonderful community events. How else are you bringing the Chinese food experience alive for your customers? CL: The Night Markets are definitely our biggest events and provide a great opportunity to introduce many Asian foods to a broad audience. At the Waterfront Night Market in downtown Toronto, we drew 60,000 people over that weekend. In Ontario, we launched a program called Mobile Kitchen, where prominent local Asian chefs demonstrate new brands and seasonal fresh products carried at T&T. We hand out coupons and recipe booklets. One memorable event was a tasty session highlighting T&T’s own Shiitake Mushrooms in Kalbi Sauce. Major suppliers

grocerybusiness.ca

also sponsor the Mobile Kitchen program. Carnation, for example, promoted its evaporated milk in a wonderful Lobster Tom Yum Soup recipe. GB: You recently participated in an episode of Undercover Boss Canada. What did you learn from that experience? CL: It was a wonderful experience, both for my daughter, Tina, and me. We always knew we had a team of hard-working people, but to get to know them personally and have them share their life stories was special. For many of our staff, T&T is their first job in Canada, and it is amazing to hear how they overcame the struggles to get here and start a new life. In general, I am grateful that they chose to work at T&T; many of them came with a great work ethic and determination that helped make T&T successful today.


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The Multicultural Mosaic

A World of

Opportunity Canada’s ethnic consumer market is growing fast. A new Nielsen study details how marketers, retailers and manufacturers can tap into this unprecedented growth opportunity. By Angela Kryhul Canada has always been a nation of immigrants, and it’s never truer than today. According to Statistics Canada, this country has a higher proportion of foreign-born residents than any other G8 country. In fact, 6.8 million residents – almost 21 per cent of the population – are new immigrants. Yet new research by The Nielsen Company has found that, far too often, marketers, retailers and consumer packaged goods manufacturers are ignoring this unique growth opportunity because of the complex and diverse nature of multicultural consumers, and a perceived difficulty in attracting and engaging these consumer segments. Marketing to ethnic consumers is complicated by the variety of countries, languages, consumption patterns, shopping behaviours and multigenerational differences within each

cultural group. However, the size and growth potential of the ethnic market is one that that companies can no longer afford to ignore, according to Nielsen’s Ethnic Consumers: How to Tap into Canada’s Unprecedented Growth Opportunity. It’s important to understand the distinctive patterns of demographics, culture and consumption of ethnic consumers because they will increasingly drive growth in virtually all product and service categories, Nielsen says. “Though reaching ethnic consumers is very much on the minds of many companies, just over a quarter have resources dedicated solely to these initiatives,” says Bernice Cheung, ethnic practice area lead, Nielsen. Of those organizations that do reach out to ethnic consumers, most prioritize marketing to Chinese Canadians over South Asian Canadians, she notes. Powered by

ETHNIC STORES CONTINUE TO CAPTURE A GROWING SHARE OF CANADIAN WALLETS

35

%

MARKET SHARE IN TORONTO

NATIONALLY BY THE NUMBERS

16%

10

shop ethnic stores

$4-5 Billion Est.*

trips per year

SPENDING $

298

PER YEAR

Source: Nielsen *CIBC World Markets; Perry Caicco, Food Industry Analyst

grocerybusiness.ca

March | April 2014

27


“We chose FCC because of their

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” .

Vincent Messier-Lemoyne, Financial Director, Courchesne Larose.

When you talk financing with FCC, we’ll listen Ready to expand? We learn how you want to grow, then create a financing package that helps you do it. Work with the leading lender to agriculture, agribusiness and agri-food in Canada. Let’s talk business. fccfinancing.ca


The Multicultural Mosaic

% OF POPULATION THAT IS A VISIBLE MINORITY 1 in 3

35 30

1 in 5

25 20 15

1 in 20

10

Source: Statistics Canada 2010 Medium Growth (Reference scenario), 2011 Immigration & Ethno-cultural Diversity in Canada

5 0

1961

1971

1981

1991

1996

2001

2006

2011

2017

2031

SHOPPING HABITS BROUGHT FROM HOME COUNTRIES CHINESE

($/buyer index)

2x 1.5x 1.5x

SOUTH ASIAN

CATEGORIES

($/buyer index)

Dried vegetables/grains

• Pasta/noodles/instant light lunches • Refigerated drinks • Face care • Skin care preparation

2.5x 1.9x 1.5x

CATEGORIES All other prepared foods (e.g., specialty eastern food)

Dried vegetables/grains • Cooking oils and spray • Milk • Yogurt

Source: Nielsen Ethnic Action Package (Syndicated)

Ethnic Consumer Fast Facts The Big Three: 34% of new immigrants come from the Philippines, China and India.

Education: 27% of Chinese immigrants and 25% of South Asian immigrants have a university degree or above, compared to 15% of the Canadian population as a whole.

City Living: Just over 90% of the foreign-born population lives in Canada’s largest metropolitan areas, notably Toronto, Montreal and Vancouver.

Large Families: Ethnic households have more children – 1.8 for recent immigrants versus 1.5 for the general population. South Asians have an average of 2.5 children per household.

Income: Canadian-educated immigrants earn more, on average, than Canadian-born residents. The New Millennials: The median age of newcomers (31.7 years) is younger than the Canadian-born population (37.3 years). Languages: The four fastest-growing languages in Canada are Tagalog, Mandarin, Arabic and Hindi.

Source: Nielsen Homescan Retailer Watch - Canada - 52 weeks to September 28, 2013 VYA.

grocerybusiness.ca

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Nations Fresh Foods, Hamilton, Ontario

International

Appeal

Nations Fresh Foods takes a mix of grocery and prepared food in a new direction by catering to a multi-ethnic customer base. By Angela Kryhul Every weekday at about 11:30 a.m., Hamilton, Ontario’s lunchtime crowd starts streaming into Nations Fresh Foods, a new multi-ethnic supermarket offering a diverse mix of produce, groceries sourced from around the globe, and a vast selection of fresh prepared dishes. Frank Ho, the store manager and vice-president/partner in parent company Oceans Fresh Food Market, likes to quip that Nations is a restaurant squeezed into a grocery store body. grocerybusiness.ca

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Nations’ Fresh Facts

60% GROCERY 40% PREPARED FOOD

200 EMPLOYEES (including 50 kitchen staff)

$8 MILLION

IN STORE RENOVATIONS

55,000 sq.ft. + 10,000 sq.ft. annex

10,000

SHOPPERS

DAILY

He’s not far off in that assessment. Forty per cent of the new store’s selling space is devoted to ready-to-eat, ready-to-heat and ready-tocook fresh-made dishes, and 60 per cent to produce and groceries. Last July, Nations opened in the Jackson Square mall to enthusiastic reviews from downtown residents who’d been without a full-service supermarket for 10 years, and from busy office workers who come into the store for their lunch and to pick up a few items for home, including grab-and-go dinners. The value-added department offers a wide array of fresh, restaurantquality dishes at grocery-store prices. For example, combo meals are affordably priced at $6, $8 and $10, and feature dozens of choices, including poached salmon and butter chicken. Nearby, a comprehensive open-food station lets customers scoop up as much as they want and pay by the weight. The prepared food section also features several refrigerated, pre-packaged ready-to-cook dishes, such as Chicken Alfredo and Honey Garlic Apple Meatballs. University students like to come into the store and stock up on single-serve portions of cut fruit, yogurt, salad and pasta, says Ho.

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March | April 2014

In this section, you’ll also find several food stations, including a pasta bar, salad bar, yogurt station, dim sum counter, teppanyaki grill, sushi station, pho noodle bar, thin-crust pizza counter and bubble tea counter. Every food station is run like a mini quick-service restaurant. All dishes are made from scratch in the on-site kitchen, which is managed by award-winning executive chef Lindsay Vandekamp. Ho, who splits his time between Hamilton and his home in Buffalo, N.Y., modelled Nations’ value-added section on the successful prepared food offering of U.S. grocery chain Wegmans, but with an “East Meets West” twist that he hasn’t seen anywhere else. Nations is offering westernized interpretations of Asian and other ethnic cuisines in order to appeal to a wide customer base, Ho explains. For example, most of the store’s Chinese dishes are similar to recipes one would find in the Mandarin chain of restaurants, he says. In fact, only the Chinese BBQ and the dim sum counter offer authentic Chinese recipes. Traditional groceries account for 60 per cent of the store mix, including a wide selection of produce that appeals to recent immigrants, who tend to cook their meals from scratch, says Ho. There’s an in-store bakery, an extensive centre store, and a large fresh fish market. From Chinese to Italian, Japanese, Filipino, Polish and Caribbean, the store aims to please the city’s diverse ethnic population. Nations’ unique 40-60 ratio of prepared food to grocery is the secret to keeping the store busy every day, Ho explains. Yet, only six months


Nations Fresh Foods, Hamilton, Ontario

after opening, he says Nations is already outgrowing its space. He’s considering cutting back the grocery section to 30 per cent and devoting 70 per cent of floor space to the higher-margin prepared food area. He’s already leased an additional 10,000 square feet of adjacent space where he’ll likely relocate the Nations professional kitchen. Ho says the Nations store is still a work in progress. Among his biggest challenges are consistency, freshness, reducing food waste and improving customer service. Yet his plans for 2014 are ambitious. Ho will offer downtown lunch delivery right to office workers’ desks, and will beef up Nations’ catering business by tapping into demand from corporate offices and hotels. One day, says Ho, he will take the Nations concept to the United States and, perhaps, even to his homeland in China. Says Ho: “We think Hamilton is the best place for us to expand our chain into the mainstream and take it to the whole world.”

Hamilton’s Diverse Population Country of origin for largest immigrant groups: Philippines, India, China, Iraq, United States, Colombia, Pakistan, United Kingdom

Languages spoken: Tagalog, Italian, Polish, Spanish, Portuguese, Arabic, German, Serbian, Croatian, Panjabi

14.3%

of the total population are visible minorities

HAMILTON COMES ALIVE Downtown Hamilton is a hotbed of new development, and that means a growing customer base for the Nations flagship store. hh There are 13,800 people living downtown

hh 24,500 people working in the core

hh 4 ,000 in the office building located directly above the Nations store

hh 2,000 condo units are either occupied or under construction hh Two hotels that feature kitchenettes recently opened downtown

hh McMaster University is building a Family Health Centre that will bring 450 health professionals, patients and students downtown Source: Planning and Economic Development, City of Hamilton

Source: City of Hamilton, Statistics Canada

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33


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“We’vebeenadvertising inthemagazineandusing theGroceryBusiness e-mailprogramforless thanayear,buttheresults havebeenstellar.  Eachtimeoneofourads ore-mailannouncements comesout,I’mcontactedby retailersandwholesalers interestedinlearningabout ournewestproducts.”

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®

Vancouver Convention Centre West Building Conference April 10 & 11 Trade Show April 12 & 13

Celebrating 50 years as the voice of the natural health industry • natural health products • health and beauty • sports nutrition • specialty food • nutraceuticals • organics

FOR COMPLETE DETAILS AND TO REGISTER VISIT chfa.ca CHFA trade shows are not open to the public. Proof of industry status is required in order to gain admission to the conference and trade show. For additional information on the show and our show policies, please visit chfa.ca


BE AT THE HEART OF THE NATURAL HEALTH INDUSTRY We’re planning many exciting events to help commemorate our 50th Anniversary. We hope you’ll join in the celebrations.

THANK YOU TO OUR SHOW SPONSORS: DIAMOND SPONSOR

GOLD SPONSORS

SILVER SPONSORS

Pre-register by March 21st to save time and money! Visit chfa.ca for details.


MESSAGE FROM THE PRESIDENT As an industry, we’ve accomplished a lot in the past 50 years. As an Association, we have proudly empowered and supported our members to promote the growth and advancement of the organic and natural health products industry. That growth is especially Helen Long evident when you attend one of our trade shows. From humble beginnings as a table top event to one of the largest business to business events in the country, CHFA West is a shining example of the passion and entrepreneurial spirit that is the foundation of our industry. Please join us this year for what is sure to be the biggest and best CHFA West to-date!

BIGGER AND BETTER THAN EVER! Expanded Exhibit Hall boasting more than 650 exhibitors Feature Stage with celebrity chefs, authors and demonstrations Celebrations! This will be the most exciting event in CHFA history Attend as our guest! Retailers are invited to register for the trade show as a guest of Grocery Business. Review all the show details at chfa.ca and then click the Register button. Use Code 18 when prompted.* *CHFA West is not open to the public. This code provides complimentary access to the trade show for Retailers only. If you are not a member of the CHFA, proper credentials will be required in order to receive your badge. Attendance policy is available on the chfa website at chfa.ca.

CHFA West • Vancouver Convention Centre, West Building, Conference – April 10 & 11 • Trade Show – April 12 & 13


80%

®

of NHP users indicate these products are very important or somewhat important to their families

Organic food sales represent

$3 billion annually

45%

70% of Canadians use

NHPs on a regular basis

of Canadians

use an NHP

on a daily basis

NHP industry contributes $3 billion annually to the Canadian economy

Vancouver Convention Centre, West Building Conference April 10 & 11 • Trade Show April 12 & 13 I attend CHFA West to keep abreast of the new trends and innovations in the natural and organic categories. I find it is a great way to meet with product suppliers in a casual atmosphere. Also, I take advantage of deals that I can pass on to my customers at the store level. Personally, I enjoy meeting the faces behind the products, and it’s just a fun, social weekend!

As the Head Office grocery purchaser at Quality Greens Farm Markets attending CHFA West showcase each year is a true privilege! Hands on exposure to what’s new and upcoming in the natural and organic grocery industry is invaluable to me. And the extra bonus is getting to see so many of my peers & industry friends, whom I correspond with daily but sometimes only see once each year at the show. It’s a working party at its best! Keep up the good work, CHFA!

Jeff Stewart Store Manager, Western Foods

Lisa Matheson Grocery Coordinator, Quality Greens Farm Market

Awareness and demand for organic and all-natural products is continually increasing and this is the premiere event in B.C. to keep up to date with this growing trend. Eric Olson Store Manager, Nesters Market & Pharmacy

Meet the demand that Canadian consumers are placing on natural health and organic products. Visit CHFA West for the latest products and hottest trends the industry has to offer.


Leadership

M

MENTORING CIRCLES:

WHAT GOES AROUND, COMES AROUND By Gabriella Nobrega

The value of one-on-one mentoring is widely accepted. Group mentoring – as the Network of Executive Women (NEW) has demonstrated over the past year – can also be a powerful tool to develop talent in Canada’s retail and consumer goods industry. “NEW’s Mentoring Circles put mentoring best practices to work in a group environment,” says Cathy Elliot, partner, Key Search Group, and lead of NEW’s Toronto Mentoring Committee. Eight mentees are paired with two mentors in an interactive and informal environment where emerging leaders benefit from a unique opportunity to tap into a wealth of insights and expertise from mentors and peers, while building their network. “We weren’t sure what to expect,” says Elliot. “We hoped up-andcoming leaders would seize the opportunity to connect with a

1

2

MARY DALIMONTE

STEVE FOX

SENIOR VICE-PRESIDENT, SOBEYS INC.

SENIOR VICE-PRESIDENT, CUSTOMER DEVELOPMENT, NESTLÉ CANADA INC.

I was surprised at the level of frustration and self doubt displayed by these talented young professionals. You quickly saw a sense of comfort emerge as the discussions proceeded. Participants were internalizing the coaching and thinking about how they could apply the learnings to gain, and put to good use, their seat at the boardroom table. NEW is the future, helping women lead with conviction from the head and heart, with logic and passion. These events have an important role in cultivating leaders. It’s also very important that NEW welcomes men. We’re excited that our president, Jason Potter, is looking to join the ranks of future mentors.

grocerybusiness.ca

You accept, thinking it’s the right thing to do, and not expecting to walk away feeling pumped. But that’s exactly what happened. I was also blown away by the challenges that women in our industry face. I left with a new appreciation that will help me be a better leader. It was evident these future leaders want to learn, share and grow. There was tremendous diversity of talent, enabling so much to be accomplished in such a short time. Once a foundation of trust was set, the magic happened. Ironically, I’m not certain that they fully understood how much I got out of it, too.

stellar line-up of mentors. The response was far beyond what we could have envisioned, both in terms of engagement and effectiveness.” NEW’s first event, in May 2013, focused on Career Advancement and Planning. It was the Toronto region’s highest-ranking event since its fall 2010 launch. Fifty-five mentees participated, committing to action plans intended to integrate with organization-led professional development initiatives. NEW held a second Mentoring Circle last fall, this time for a modest fee. Twenty-six mentors and 105 mentees participated in the sold-out event focused on Getting a Seat at the Table. We asked a few participants about the impact of the Mentoring Circles on their career development.

March | April 2014

39


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Looking ahead, NEW's Cathy Elliot references the momentum NEW Toronto is building while supporting its mission to advance women into leadership positions. “We’re committed to making these Mentoring Circles among the most talked-about events in industry,” she says. “They say ‘it takes a village to raise a child.’ It takes a village to grow a leader, too.”

5

MATHIEU ROBITAILLE MARKETING MANAGER, COCA-COLA REFRESHMENTS CANADA

Mathieu Robitaille is among the growing ranks of men who are engaging in NEW, as both mentors and mentees. The event really reinforced the importance of networking and taking control of your career. Sometimes our generation doesn't capitalize on the willingness of leaders to help; we're moving so fast to climb the ladder. It's a really important part of the leadership journey. We have to continue to take advantage of these forums. NEW’s group mentoring is informal, so you gain candid insight; at the same time, it is very focused and effective. Leaders really open up on getting ahead, something we all want to do. I was fortunate to be involved, and would absolutely attend again.

JENNY LONGO

DIRECTOR, PRIVATE BRANDS, LONGO BROS. FRUIT MARKETS

These events turned the notion of traditional 1:1 mentoring or a 'mentor for life' on its head. While the relationships you develop are different, as is the application of the insights and experience gained, you can't underestimate the value of this dynamic format. Mentors also gain a lot: We get to hear what’s on the minds of these leaders – who are also our customers – and help shape their path. Beyond the talent, conviction and passion, the participants’ capacity to change and adapt was also very inspiring. Everyone came prepared to listen, learn and grow.

6

4

STEVE KAVANAGH DIRECTOR OF SALES, JOHNSON & JOHNSON INC.

Joining as a new mentor was Steve Kavanagh, director of sales, Johnson & Johnson. It's helpful any time you can gain insight and ideas on career development from people outside of your own organization and in different functional areas. We all know there are multiple paths to a desired destination, and it is valuable to our future leaders to hear first-hand different avenues and experiences. I encourage other leaders to get involved. Beyond being an efficient way of interacting with a number of people in the CPG industry at one time, it was also very engaging; the enthusiasm was terrific from the onset.

3

M

Leadership

Julia Sisnett has seen NEW's mentoring initiative from several perspectives. She's not only one of the emerging leaders on the Network's volunteer committee, but has also been a participant. NEW has had a profound impact on my development over the past two years, affording me unique opportunities to network with senior leaders on committees and at events. I consider myself fortunate to have found NEW early in my career, and have already put the insights I’ve gained into action. I’ve also seen the benefits of group mentoring first-hand. It provided a safe and rich learning environment. Because of the group dynamic, you gain perspectives from many vantage points.

“ grocerybusiness.ca

JULIA SISNETT BUSINESS DEVELOPMENT MANAGER, JOHNSON & JOHNSON INC.

March | April 2014

41


Get into the dance Our dancing cows spot for IÖGO Greko has created quite a buzz. We’ve already had nearly 800,000 hits on YouTube. We’ve also been a big hit on Facebook and Twitter with lots of people asking “where can I get it?” Well, we’d like it to be your store. You’ll not only profit from the increased interest; you’ll be selling a great Greek yogurt that’s nice and thick with twice the protein,* and a taste that speaks for itself. Stock up now, and get into the dance. IÖGO. Owned by Canadian dairy farmers.

iogogreko.ca *compared to our regular yogurts


Foreign Agricultural Service SPECIAL REPORT

A Trusted

Partner U.S. produce, beverage and packaged-food producers are renowned for shipping high-quality products to the Canadian market. In fact, the United States accounts for more than 64 per cent of Canada’s value-added food imports. Canadians place a premium on safe and nutritious products, and prefer U.S.-sourced foods over any other country. By Angela Kryhul

March | April 2014

43


Remarks by Former Secretary of State Hillary Rodham Clinton

Steve Forbes Leadership From the Ancient World to Today

Capt. Richard Phillips Steering Your Ship Through Rough Waters

Peyton Manning What It Takes to Be a Champion

Gary Vaynerchuk Riding the Hashtag in Social Media Marketing

Bobby Flay From High School Drop-Out to Culinary Star

Harold Lloyd Fishin’ for Sales? Better Change Lures!

Harry Balzer Eating Patterns in America

The Big Adventure. You won’t want to miss the best Show

in the dairy, deli, bakery, and foodservice business. Camp Foodie is a 3-day adventure in the Mile-High City of Denver, complete with a roster of attendees including the best food buyers, merchandisers, and marketers in the industry; all gathered to network and learn about new products, trends, and new business opportunities.

Set Your Sights High. Pack up your gear and your best

hiking shoes as you make your way west at an elevation of 5,280 feet to explore over 1,800 booths, 3 days of top speakers, a 10,0 00 sq. ft. Show & Sell merchandising pavilion, and other industry events; while you network and exchange ideas with nearly 9,000 of your fellow campers.

Come Celebrate. We’re celebrating 50 years in business by lining up some great business, food, sports, and political speakers to share their knowledge on deli and bakery research, food and consumption trends, emerging technologies, social media, marketing trends, consumer behavior, merchandising ideas, and leadership. IDDBA’s Show & Sell Center 2014. This idea center

delivers peak merchandising ideas, creative sets, new themes, & signage – the creative thought starters you need to help create a better selling environment in your stores. Complete with onsite merchandising advice and an Idea and Photo CD; your whole team will benefit from the creativity and imagination of retail merchandisers in a real store setting.

Register Now • Seminars • Show Planner • Hotels • Exhibits • Show & Sell Center International Dairy-Deli-Bakery Association P.O. Box 5528 • Madison, WI 53705 • call 608.310.5000 • fax 608.238.6330 • visit www.iddba.org


Foreign Agricultural Service SPECIAL REPORT

$21 billion

Partners in Opportunity Jeff Zimmerman, Agricultural Attaché, Foreign Agricultural Service (FAS), United States Department of Agriculture (USDA), Jeff Zimmerman addresses how U.S. producers are working hard to meet the needs of Canadian grocery retailers. Grocery Business: How does the FAS help U.S. producers and agricultural commodity organizations comply with Canadian regulations? Jeff Zimmerman: The FAS offers educational programs ranging from guidance on exporting requirements and certificates, to encouraging U.S. executives to exhibit in Canadian trade shows (such as SIAL Canada and the Canadian Produce Marketing Association) and learn first-hand about the Canadian landscape. Through these U.S. agricultural partners that are recognized as cooperators, some U.S. small and medium-

sized enterprises are eligible for reimbursable funding to help offset their promotional and marketing costs, especially those associated with bilingual labelling. We’re also happy to answer questions from Canadian retailers about any difficulties they may have getting U.S. products on the shelf. GB: How are U.S. suppliers responding to key trends in the Canadian market? JZ: Canada is a unique marketplace where we see very health-conscious consumers coupled with a fast-growing ethnic and Asian demographic. These combined factors provide explosive opportunities for niche products to gain almost mainstream market share over a relatively short period of time. U.S. cooperators have demonstrated their ability to supply these markets through the many unique products being imported by Canadian retailers.

The total value of food products imported by Canada from the U.S. each year GB: On the subject of food safety, Canada and the U.S. have been working closely together to achieve regulatory alignment. What’s the benefit for Canadian grocery retailers? JZ: This is the most progressive regulatory alignment to date, and will provide an unmatched level of confidence in food safety for the retailer and consumer. With social media now at everybody’s fingertips, the value of reducing consumer complaints on the food quality in one’s establishment cannot be overestimated. Canadian retailers that source from U.S. producers can be assured that these products meet the USDA mission objective of safe, nutritious and affordable food. As this alignment progresses, Canadian retailers will also benefit from further streamlined import procedures that will bolster their bottom lines. Find out more about the variety of products available through 40 U.S. cooperators at tasteus.ca/contact-us

the 2011

Joint Canada–United States Regulatory Cooperation Council Action Plan is an “unprecedented initiative in terms of the depth of communication and efforts to align regulatory approaches between Canada and the United States.” – Jeff Zimmerman

grocerybusiness.ca

March | April 2014

45


Foreign Agricultural Service SPECIAL REPORT

Fresh Insights

With taste, nutritional value and price top of mind, Canadian shoppers strongly favour the U.S. over any other country for food imports. Canadians have more trust in American food-safety standards compared to other countries, according to the 2014 BrandSpark Canadian Shopper Study. The shorter transporting distances from the U.S. to Canada drive perceptions of greater freshness and better value than produce coming from elsewhere.

What elements are most important to you when purchasing fresh fruits and vegetables? 96%

Taste Nutrition

88%

Appearance

88%

71%

87%

Price

81%

Guarantee of Safety

73%

Naturalness

68%

Convenience

55%

Geographic Origin

51%

Environmental Impact

48%

Economic Fairness of Production Organic

28%

How often do you actively search for labels that indicate the origin of your food when shopping for the following products?

Almost Always Sometimes Rarely

51 46 33

Never

42 33

40 31

31

29 22

22 14

12 9

9

6

Fresh produce grocerybusiness.ca

Fresh meat or poultry

of respondents said they are confident in the safety of food imported from the United States.

24 23

12 9

Fresh fish or seafood

Processed products

Beer, wine and/or spirits

The 2014 BrandSpark Canadian Shopper Study was conducted online among grocery shoppers aged 18-plus. The data collection took place October 17 to November 8, 2013.

March | April 2014

47


State Regional Trade Groups

Export Success When U.S. producers of high-value food and agricultural products need to make connections in the Canadian market, they call upon the resources and expertise of their local State Regional Trade Group (SRTG). The four SRTGs – Food Export Association of the Midwest USA; Food Export USA–Northeast; Southern United States Trade Association (SUSTA); and Western United States Agricultural Trade Association (WUSATA) – help companies become export ready by educating them about Canadian food regulations, packaging and labelling; and connecting them to distributors and brokers north of the border. “SUSTA, its member states, and its consultants in Canada work to identify companies that have established distribution in the

United States, capacity to grow their business through export, and products that are unique, original and fill a market need in Canada,” explains Alison George, vice-president of Argyle Communications, and consultant to SUSTA in Canada. SRTGs also organize inbound and outbound trade missions, and participate in select trade shows to help connect Canadian buyers with U.S. specialty food producers. SUSTA and Food Export will be present at SIAL Canada, which takes place in Montreal this April. “We do market research and viability studies for companies so that they know what’s going on in their categories and whether their product can be competitive in Canada,” says trade specialist Kathy Boyce of Boyce Strategic Marketing, who represents Food Export and other groups in Canada. The biggest challenge for U.S. companies hoping to expand into the Canadian market is to understand that Canada has its own rules. “What works in the States doesn’t always work here,” Boyce adds. Ultimately, it’s all about giving small and medium-sized companies the tools they need to achieve export success.

at your service

Food Export Association of the Midwest USA, and Food Export USA–Northeast: foodexport.org Southern United States Trade Association: susta.org Western United States Agricultural Trade Association: wusata.org

Meet US Face-to-Face

SIAL Canada and the Canadian Produce Marketing Association show are two terrific opportunities to meet the many dedicated people representing innovative food products from the U.S.

SIAL CANADA

April 2-4, 2014 Palais des congrès de Montréal A listing of USA Pavilion Exhibitors Foreign Agricultural Service/ USDA; U.S. Embassy Ottawa www.fas.usda.gov Atlantic Natural Foods Atlanticnaturalfoods.com Bone Doctors’ BBQ Sauce bonedoctorsbbq.com Cordoba Foods LLC gauchoranchfoods.com Daniele Inc. danielefoods.com

Dell’Amore dellamore.com

Jody’s Popcorn jodyspopcorn.com

Food Export – Northeast & Midwest foodexport.org

Johnsonville Sausage johnsonville.ca

Ford’s Gourmet Foods Bonesuckin.com Greek Island Spice Greekislandspice.com Gringo Jack’s gringojacks.com Imagilin Technology Imagilin.net Indalco Foods Corp. dulcedeleche.com J&M Foods Corporation Jm-foods.com

Kent Precision Foods Group precisionfoods.com Kontos Foods, Inc. kontos.com La Tourangelle, Inc. latourangelle.com Miller’s Mustard millersmustard.com Montebello Kitchens montebellokitchens.com Original Gourmet Food Company ogfc.net

Safie Specialty Foods Company, Inc. safiespecialtyfoods.com

The Peanut Shop Thepeanutshop.com

Salwa Foods Salwafoods.com

U.S. Pecans/National Pecan Growers Council uspecans.org

Select Harvest U.S.A. selectharvestusa.com

Vermont Harvest vtharvest.com

Simply Incredible Foods simplyincrediblefoods.com

Virginia Department of Agriculture & Consumer Services vdacs.virginia.gov

Sonoma Syrup Company sonomasyrup.com Southern Art Company Southernartco.com Southern United States Trade Association (SUSTA) susta.org Tee Lee Popcorn teeleepopcorn.com

White House Foods/National Fruit Product Company Whitehousefoods.com

CPMA Convention & Trade Show April 1-4, 2014 Vancouver Convention Centre


Foreign Agricultural Service

Power Snacking

SPECIAL REPORT

When it’s time to snack, Canadians can’t help but grab a handful of nuts. Canadians are changing their perceptions of nuts as a snack food, thanks to a slew of new research showing the health benefits of daily nut consumption. One of the most talked about new studies reveals that eating a handful of nuts every day can prolong one’s life and help with weight control. The study, conducted by the DanaFarber Cancer Institute, Brigham and Women’s Hospital, and the Harvard School of Public Health, examined the association between consuming a variety of nuts, and subsequent mortality among 119,000 male and female health-care professionals.

Published in the New England Journal of Medicine (NEJM), the study found a 29-per-cent reduction in deaths from heart disease among the tested group, and an 11-per-cent reduction in the risk of dying from cancer. The NEJM has also published excerpts from the study Prevención con Dieta Mediterránea (PREDIMED), which found that a daily handful of nuts (walnuts, hazelnuts and almonds) can reduce the incidence of cardiovascular disease by 28 per cent. That’s good news for nut producers, who say Canadians have a positive attitude towards nuts. According to the American Peanut

76%

say peanut butter

is a staple in their pantry

A listing of U.S. cooperators, firms and organizations affiliated with tasteUS! * An exhibitor at the CPMA 2014, Vancouver

Almond Board of California almondboard.com American Peanut Council* peanutbureau.ca

California Cherry Advisory Marketing Research Board calcherry.com California Cling Peach Growers calclingpeach.com California Fig Advisory Board californiafigs.com California Pear Advisory Board* calpear.com

California Strawberry Commission* Bard Valley Medjool Date Growers calstrawberry.com Association* California Tomato Farmers* natural-delights.ca/ ctf-canada.com Blue Diamond Growers bluediamondgrowers.com California Blueberry Commission* calblueberry.org

California Table Grape Commission* freshcaliforniagrapes.com

Florida Department of Citrus floridajuice.com Florida Tomato Committee* floridatomatoes.org National Sunflower Association sunflowernsa.com National Watermelon Promotion Board* watermelon.org Northwest Cherries* nwcherries.com Organic Trade Association ota.com Paramount Citrus/Farms/POM Wonderful* paramountfarms.com pomwonderful.com

Council, a 2014 Erikson Research study revealed that the number of households consuming peanut butter at least once per week rose to 80 per cent in 2013, from 75 per cent in 2012. Nearly all Canadian households consume peanuts, with 95 per cent eating peanuts at least every few months. Of those Canadians who eat peanuts, 68 per cent do so in the evening, according to the study. The preferred time to eat peanut butter has not changed over the past years, with breakfast (71 per cent) still being the most popular time. The study also found that peanuts are the second-most-preferred snack food, after chips, and 90 per cent of respondents think peanuts or peanut butter are a healthy food choice. “Snacking is a large opportunity in Canada,” says a spokesman for Paramount Farms, whose brands include Wonderful Pistachios and Wonderful Almonds. “We know that snacks constitute 24 per cent of all meals consumed by Canadians. With the snack nut category growing at 10 per cent a year, there is a significant opportunity for grocery retailers to provide healthier snacks for their shoppers.”

Pear Bureau Northwest/USA Pears* usapears.org Sunkist Growers, Inc. * sunkistgrowers.com Synergistic Hawaii Agricultural Council hawaiipapaya.com U.S. Highbush Blueberry Council ushbc.org USA Pecans uspecans.org USA Rice Federation riceinfo.com Washington Apple Commission* bestapples.com

Washington State Fruit Commission* wastatefruit.com State Members of the National Association of State Departments of Agriculture (NASDA) nasda.org Florida Department of Agriculture* freshfromflorida.com North Carolina Department of Agriculture* www.ncfreshlink.com Virginia Department of Agriculture* vdacs.virginia.gov


Delicious

Fresh

Florida Produce

Bursting with Flavor. Available Now.


Case in Point

Foreign Agricultural Service SPECIAL REPORT

How Sweet It Is Wonderful Halos is the ultimate kid-friendly food brand

Hawaii Tempts Canada with a Taste of Paradise Three of Hawaii’s top agricultural associations representing papaya, coffee, and flower and plant growers, have identified Canada as an ideal export market. Two years ago, the Hawaii Papaya Industry Association (HPIA), the Hawaii Coffee Association (HCA), and the Hawaii Floriculture and Nursery Association (HFNA) combined resources to create the Synergistic Hawaii Agriculture Council (SHAC). The group represents more than 540 businesses, and hosts inbound trade missions so that Canadian buyers can get to know first-hand what Hawaii has to offer, says SHAC management consultant Rod Yonemura. HCA has earmarked funds in 2014 to promote Hawaiian coffees in Canada, including a branding campaign and an updated website. The HPIA typically reaches Canadian buyers by participating in trade shows hosted by the Canadian Produce Marketing Association, and in consumer shows like the Eat! Vancouver Food + Cooking Festival, Yonemura says. The HFNA is poised to tap the Canadian market, Yonemura says. Nine Canadian buyers will visit Hawaii this year, and the Association is talking with a private shipping company to ready a fleet of temperature-controlled trucks that would ensure fresh delivery of Hawaiian flowers to retail clients.

Sales by SHAC members

It takes a great deal of marketing savvy to brand a commodity like citrus fruit. But that’s what Paramount Citrus, America’s largest citrus grower, has done with its new Wonderful Halos brand of sweet, seedless, easy-peel mandarin oranges. Since the tiny, perfect food is just the right size for pint-sized consumers, the Halos brand debuted last November with a marketing and advertising campaign aimed squarely at moms and kids as a healthy alternative to junk snacks. The launch includes television, print, online and social media, trade and outdoor advertising, free-standing inserts, point-of-sale displays, retailer promotions, consumer events, and public-relations activities. There’s a kid-friendly website and blog (halosfun.com), as well as a free mobile app called Halos Fun featuring more than 100 levels of game play. Sticker codes found on Halos fruit reveal new game levels and secret treasures. The California-based company is spending US$100 million over five years to market the new Wonderful Halos brand, which represents 65 per cent of California’s mandarin crop. Halos are a hit in Canada, according to Chris Cockle, Canada country manager for Wonderful Brands. “We know that shoppers make decisions in stores; thus, it’s important to have a cart-stopping presence,” he says. “Our in-store display items include high-graphic packaging and bin bases, and eye-catching point-of-sale items, such as Iron Man signs and display posters.”

total more than

$120 million grocerybusiness.ca

March | April 2014

51


A taste of

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

CALIFORNIA...

Peach & Boston Lettuce Salad 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 Nutrition Information: 130 g (1/2 cup) Cling Peaches in light syrup: 80 Calories, 0g Fat, 20g Carbohydrate, < 1g Protein.

For more recipe ideas visit:

www.calclingpeach.ca

Canned peaches are a better value than fresh peaches, coming in at $0.08 per cup less than fresh according to an MSU study.

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

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

An Oregon State University study revealed that vitamin C levels are almost 4x higher and antioxidants are 1.5x higher in canned than fresh while retaining those levels over a 3 month storage period.

In a recent Time Magazine cover story, "The Anti Food-Snob Diet", Dr. Mehmet Oz makes a nutritional case for canned peaches as "stalwarts of a healthy diet" and "the winner over their fresh counterparts".

Dr. Oz says that "studies indicate that carotenes, which can reduce cancer rates and eye problems, may be more available to the body following the routine heat treatment [of canning]."

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


Case in Point

Foreign Agricultural Service SPECIAL REPORT

Washington Apples Fill Void When Disaster Strikes Apple farmers in Eastern Canada will remember 2012 as one of the worst seasons in recent memory, when more than 80 per cent of the crop was wiped out due to frost and severe weather. Grocery retailers scrambled to source apples from outside the region, contacting growers across Canada and the U.S., including Washington State – the largest apple grower south of the border. Washington shipped about 6.3 million cartons of apples to Canada during the 2012/13 season, says Rebecca Lyons, international marketing director for the Washington Apple Commission (WAC). Canada is an important export market for Washington’s organic apples, says Lyons. Over the past five years, Washington has doubled its organic shipments north of the border. “Last season, we shipped a record 572,982 bushel cartons of organic apples to Canada, but that reflects the record crop size in Washington, and the lack of Canadian supplies in the east due to adverse weather,” she says. Six months into the 2013/14 apple season (which runs from September 1 to August 31), Washington’s shipments to Canada are down about 10 per cent compared to a year ago, Lyons says. That’s not unexpected, she explains, since Eastern Canada crops rebounded during 2013. According to Lyons, Canadians favour Gala organic apples, but WAC also ships Red Delicious, Golden Delicious, Granny Smith, Fuji and Cripps Pink. WAC’s promotions in Canada are focused on co-op ads with major retailers, she says.

Fact: The U.S. is the leading organic apple producer in the world, with Washington State growing more than 80% of U.S. certified organic apples.

A Fresh Fruit Hat Trick They say three’s a charm, and that proved true last fall when U.S. apple, pear and Medjool date growers joined forces to sample their wares in 30 Sobeys stores throughout Ontario. “There’s always great value in combining non-competitive partners that work well together,” says Ken Berger, principal of R.E.P.S. Inc. and who, in Canada, represents the Datepac/Bard Valley Medjool Date Growers Association, as well as the U.S. Apple Export Council, the California Pear Advisory Board, and the Buy California Marketing Agreement. Demonstrators in places like Hamilton, North Bay and Windsor handed out samples of Medjool dates, Granny Smith apples, and California Bartlett pears on the weekend of Sept. 21 and 22, 2013. “All three are great out-of-hand fruits,” says Berger. “They can be eaten on the run, and they’re all very high in nutrients and low in fat.” The stores experienced a double-digit lift in sales for all three products during the week of the demo, Berger says.

Ken Berger

grocerybusiness.ca

March | April 2014

53


POWERFUL HEART HEALTH. EASY OPEN PACKAGE.

9

9 powerful grams of plant-based protein

0

Nothing beats a handful a day for heart health

15

Source of 15 essential vitamins and nutrients

1

The most preferred nut in Canada


Foreign Agricultural Service SPECIAL REPORT

Ian Wugalter (left) and Robbie Cohen

The Gluten-free Guys How two Montreal entrepreneurs are growing the category For Montreal-based Zero Gluten, sourcing the highest-quality gluten-free foods isn’t just a business; it’s a family affair. Ian Wugalter began eating gluten-free when he and his daughter were diagnosed with Celiac disease. Finding gluten-free products in Canada was a challenge, so he began ordering from U.S.-based retailers. Soon, Wugalter and his friend, Robbie Cohen, were bringing in so much gluten-free product for personal use that they decided to turn it into a business. The two men established Zero Gluten in September, 2011, and now distribute specialty foods to independent health stores and major retailers such as Sobeys, IGA, Shoppers Drug Mart, Pharmaprix and Jean Coutu. Zero Gluten also supplies foods to hospitals and long-term-care facilities. Zero Gluten represents a wide range of items – everything from bread and cake mixes, to potato chips, corn chips, soups, oatmeal and BBQ sauces – with 60 per cent of the company’s line sourced from the U.S. Wugalter and Cohen make a point of exhibiting at major trade and consumer shows in the U.S. and Canada. It was at a Canadian Health Food Association show that they met

Kathy Boyce of Boyce Strategic Marketing Inc., who told them how Food Export could help facilitate connections with U.S. suppliers. Some of the products that Zero Gluten wanted to bring into Canada weren’t part of the Food Export program. So Boyce informed Wugalter and Cohen about the benefits of the program, as well as about additional companies that were already educated on the Canadian market and were truly prepared to work with a Canadian partner. “I’ve spent time with [Zero Gluten] at their warehouse so that I understand who they are,” Boyce explains. When companies with gluten-free products come to Food Export and express an interest in Canada, Boyce will suggest meetings with companies like Zero Gluten. She also sends product samples and literature to Canadian distributors, and will do any market research the U.S. company might require. Says Boyce: “We’re here to facilitate bringing qualified people together with U.S. companies that are anxious to come into the Canadian market.”

Zero Gluten is working with Food Export to promote and distribute Viki’s Granola.

grocerybusiness.ca

March | April 2014

55


California Wins with Wine Rick Slomka, Canadian director, Wine Institute of California, explains why Canadians are embracing California wines. Grocery Business: Why have California wines become so popular in Canada? Rick Slomka: California wines have a taste and a style profile that appeals to Canadians. Innovative new product introductions, along with some really attractive packaging, have been very popular with the new generation of wine drinkers. And during the last five years or so, exchange rates have been very favourable so that California wines offer good value to consumers. GB: How do wine preferences differ from one region of Canada to another? RS: Quebec consumers tend to favour European wines. In Ontario and British Columbia, there is a very strong following for Canadian products. We’re seeing

the strongest market shares for California wines in the West. In Alberta, for example, California has 25 per cent of the market. Our overall market share in Canada is 12.8 per cent, so Alberta is double our national average.

Fact: California is the world’s fourth-largest wine producer, and represents 90% of U.S. wine production

GB: Are people in their twenties more savvy about wine? RS: Wine is more popular now with people in their twenties than it ever was with previous generations at that age. They’re more educated about wine in general, and about food and wine pairings. I also think that Canadian consumers identify with the California lifestyle. The image is positive and aspirational, and people perhaps see wine as representative of that lifestyle.

Canada and California make a perfect pear. bartlett

bosc

sunsprite

comice

forelle

butter french

seckel

red pear

taylor gold

(Actually, we make quite a few of them.) You’re probably familiar with the sweet, flavourful Bartlett pear, but there’s a whole lot more where that came from. The tiny, colourful Forelle is an ideal appetizer, and the buttery smooth Comice makes for a sweet snack. In fact — from the aromatic Bosc to the adorably delicious Seckel — you’ll find a perfect pear in season any time from July through November. It’s no wonder California pears are a tasty supplement to Canada’s own homegrown selection. Partner with us for a juicy addition to your produce section. contact merchandising representative Ken Berger at 416-200-7207 ken.berger@rogers.com 56

March | April 2014


Foreign Agricultural Service SPECIAL REPORT

U.S. Showcase Montebello Kitchens Genteel gourmet foods

Tiny Fruits by Little Duck Organics 100% fruit snack

Tiny Fruits by Little Duck Organics are bite-sized snacks made from 100 per cent fruit for kids aged 12 months and older. Cut small for tiny hands, Tiny Fruits dissolve easily in little mouths. All ingredients are sourced from certified organic farms, and are dried slowly to preserve essential nutrients. The result is a nutritious snack that is gluten-free, kosher and non-GMO Project verified, with no added sugars, salts, colours or preservatives. littleduckorganics.com

Family-owned Montebello Kitchens takes great pride in producing genteel gourmet foods carrying the Virginia Finest trademark distinction of quality. All of the company’s products are made in the artisan style – by hand, in small batches, and honouring Virginia traditions and heritage. Curry, chipotle and jalapeno-flavoured ketchup varieties are nutrient dense, while Montebello Kitchens’ Peanut Soup mixes have received international recognition. montebellokitchens.com

La Tourangelle Artisan Oils All-natural flavoured oils

Handcrafted in the spirit of traditional French oil-making methods, La Tourangelle organic, all-natural and non-GMO certified artisan nut oils are expeller-pressed in Woodland, Calif. These premium oils now come with the convenience and efficiency of an all-natural, non-aerosol spray can. latourangelle.com

Formella Gourmet

An authentic taste of Sicily E. Formella & Sons, Inc. got its start more than 100 years ago when Sicilian Enrico Formella landed in Chicago and, together with his wife Rosina, built an international family food business. Giardiniera, a pepper and vegetable mix recipe, has been in the Formella family for more than a century. Among the company’s most popular products sold in Canada: Hot and Mild Giardiniera, Eggplant Salad, Hot & Spicy Pizza Topping, and Muffuletta Salad. This year, the company will introduce flexible, single-serve pouch containers so that Formella products can be enjoyed on the go. formellagourmet.com


SELLING OUT FAST!

JOIN US IN

CELEBRATING THE

80 TH

ANNIVERSARY OF THE FOOD & ALLIED

INDUSTRIES

GOLF

TOURNAMENT

Don’t Miss This Food Industry Tradition! FRIDAY, JUNE 6TH, 2014 REGISTER & PAY ONLINE! www.foodandalliedgolf.ca/registration.php 4 GREAT COURSES • Eagles Nest Golf Club • Kings Riding Golf Club • Copper Creek Golf Club • The Country Club

In Support of


March | April 2014

CPMA Show Agenda by the Numbers

The magic of Medjools


Growing It

DATE LINE

THE MAGIC OF MEDJOOLS By Sally Praskey

Canadians love their dates, and none more so than Medjools – a sweet, flavourful variety loaded with nutrition. The proof is in the numbers. Sales of Natural Delights, a co-operative of growers based in Yuma, Ariz., grew a whopping 123 per cent over the last five years. The organic category is equally healthy; between 2012 and 2013, organic SKUs of Natural Delights soared between 50 and 178 per cent. “Canadians seem to know food, and they have a better understanding of what they want to eat,” says Gusmar Nuñez, a grower and the chairman of Datepac, LLC, the largest Medjool date packing and marketing facility in the U.S. “They have no problem putting out a bit more money for quality product, especially if it’s something that’s good for you, like Medjool dates.” Indeed, the dates boast 16 essential vitamins and minerals, as well as low-glycemic sugars. A newly launched ad campaign capitalizes on Natural Delights’ nutritional value, touting them as “Nature’s Power Fruit.” The brand is further enhanced by its growing environment. The Bard Valley, where Natural Delights dates are cultivated, is unique because of its hot, dry climate and plentiful groundwater. The increasing popularity of Natural Delights led to the formation of Datepac in 2002. Although the growers already had an association, each member still maintained its own packing house and did its own marketing. Datepac allows the five

grocerybusiness.ca

grower partners to achieve economy of scale by combining their packing in one facility and employing a common sales force. In 2010, they laid the groundwork for further expansion by hiring produce veteran Edward O’Malley as president and CEO. O’Malley and his team have Edward O’Malley President and CEO, Datepac, LLC since developed several smaller-sized packages – including portable four-ounce Snack Packs in pouches – and value-added products such as date rolls coated with coconut, almond, pistachio, or chili lime. “We know that the entry way to building the category is the smaller packages – the 12-ounce, eight-ounce, and Snack Pack – along with the date rolls, which will get light or non-users into the category,” says O’Malley. The strategy is paying off; volume has tripled since the formation of Datepac, says O’Malley, “and is going to double again in the next eight years.”

Gusmar Nuñez Chairman, Datepac, LLC

A GROWING BUSINESS When Isabel Nuñez immigrated to the U.S. from Mexico in 1958 as a date-farm labourer, little did he know he was sowing the seeds of a family dynasty. The 10 acres of farmland he purchased a decade later have since multiplied to 4,000. His three children now operate the business, although Isabel still lends a hand. Cultivating dates is a labour-intensive art, explains his son Gusmar. The trees put out some 35 fruit arms, each with up to 300 strands of dates. To optimize the quality, growers limit the number of arms, as well as the strands per arm and the dates on each strand. “When you’re all done, you probably eliminate anywhere from 85 to 90 per cent of the original fruit set,” says Gusmar. Medjool date palms are also sought after as ornamental trees, and have been adorning boulevards and countless other locations in the southern United States for decades.

March | April 2014

61


Program at a glance

CANADIAN PRODUCE MARKETING CONFERENCE & SHOW APRIL 1-4, 2014, VANCOUVER, B.C.

PROGRAM AT A GLANCE TUESDAY, APRIL 1

THURSDAY, APRIL 3

FRIDAY, APRIL 4

7:30 am – 5:00 pm Registration

7:00 am – 6:00 pm Registration

7:30 am – 4:30 pm Registration

8:00 pm – 10:00 pm Directors & New Members’ Reception (By invitation only)

8:00 am – 9:45 am Delegate and Companion Breakfast • Keynote Speaker • Fresh Health Award

8:00 am – 9:45 am Awards Breakfast • Mary FitzGerald Award • The Packer’s Produce Person of the Year Award • CPMA Lifetime Achievement Award

WEDNESDAY, APRIL 2 7:30 am – 6:00 pm Registration 8:15 am – 1:00 pm Retail Tour 1:00 pm – 2:30 pm CPMA Members’ Annual General Meeting 8:00 pm – 11:00 pm Chair’s Welcome Reception

9:00 am – 11:15 am Retail Produce Manager Session 9:00 am – 11:15 am Foodservice Professional Session 10:00 am – 11:15 am Business Sessions (2) 10:00 am – 4:30 pm Companion Program 11:30 am – 1:15 pm Delegate Luncheon • Keynote Speaker 1:30 pm – 5:30 pm Trade Show

10:00 am – 11:15 am Business Sessions 10:00 am – 12:20 pm Retail Produce Manager Session 11:30 am – 4:30 pm Trade Show 6:30 pm – 7:30 pm Annual Banquet Reception 7:30 pm – 11:00 pm Annual Banquet

8:30 pm – Midnight Variety Night

For more information, visit cpma.ca 62

March | April 2014


Produce Manager

PRODUCE BY THE NUMBERS PRODUCE OCCUPIES

19

%

OF FLOOR SPACE

GENERATES

21

%

OF REVENUE

75% of Canadians regularly purchase a produce item that they werenâ&#x20AC;&#x2122;t purchasing 5 years ago

WHAT MARKETING SUPPORT DO GROCERS WANT FROM PRODUCE VENDORS?

35%

want recipe sheets and cooking tips

24%

18%

want quality produce with marketing ideas

want to build brands through social media

Source: Canadian Produce Marketing Association Study, 2013

MOST FREQUENTLY SHOPPED FOR ITEMS

82% buy leafy greens 80% buy tomatoes 76% buy apples and pears 74% buy bananas and mangoes grocerybusiness.ca

March | April 2014

63


e v i s ion u l t c a x E orm Inf

Regional Meetings

It’s Never Been More Important To Be A Member Of The Canadian Federation Of Independent Grocers!

Industry Consolidation: The Implications For The Independent And What We Need To Do Together

Be Prepared! CFIA Continues Blitz Inspections: Coming To A Location Near You!

What They Are Looking For And How To Be Prepared

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VANCOUVER N A N A I M O

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To Reserve Your Spot, Contact Elaine Martyn 1-800-661-2344 x. 242 OR emartyn@cfig.ca

Presented By:


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A S p e c i a l Th a n k s To O u r G a l a S p o n s o r s The Grocery Foundation would like to thank the following Platinum Sponsors for their ongoing support of the Night to Nurture Gala:

P l at in um

Fo od Sp on sors

C orp orate Sp onsor s

C entrepieces

Win e Sp on sor

P rin t in g

C oat C h e ck Sp onsor


Best New Product Awards

Congratulations

to the 2014 Best New Product Award winners!

There’s nothing else like it in Canada. The Best New Product Awards are 100 per cent consumer voted – it’s the real People’s Choice Awards for products Canadians buy every day, according to Robert Levy, president and CEO of BrandSpark International and founder of the BNPAs. Now in its 11th year, the BNPAs are Canada’s largest consumer packaged goods awards program. This year, 90,000 Canadians participating in the BrandSpark Canadian Shopper Study, voted 88 products as winners in the Food & Beverage, Health & Beauty, Household, and Kids and Baby Products categories.

Robert Levy

2014 BEST NEW PRODUCT WINNERS BEST FOOD & BEVERAGE PRODUCTS

BEST HEALTH & BEAUTY PRODUCTS

»» Bacardi Real JÜS

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March | April 2014

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01

NIGHT TO NURTURE GALA FEBRUARY 1, 2014, TORONTO With over 4,100 guests in attendance, the 2014 Night to Nurture Gala raised $2 million in support of Ontario youth.

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March | April 2014

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Night to Nurture Gala

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01 D  eb Craven, Chair, Kids Help Phone; AndrĂŠ GagnĂŠ, Chair, The Grocery Foundation 02 Chris and Philip Tucker, Clorox Canada 03 Sue and Margaret Hudson, Burnbrae Farms 04 Thanks to the volunteers 05 Sponsor banners 06 Philip Donne, Campbell Canada 07 Adam Levine, Maroon 5 08 Sue and John Violin, Irving Tissue 09 D  an Bordun, Karen James, Tina and Kevin Smith, Debbie and Michael Marinangeli, Grocery Business magazine 10 Maroon 5 on stage 11 Pre-dinner gathering and silent auction 12 S  haron Wood, President and CEO of Kids Help Phone 13 Reception statues

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14 L isa Orpen, winner of the 2014 Lexus; Charles Grant, General Manager, Don Valley North Lexus 15 John and Michelle Scott, The Grocery Foundation 16 Sarah Fisher, star of Degrassi 17 C  hris and Susan Terrio, CROSSMARK Canada 18 A  nna Maria Tremonti, of CBC Radio, hosted the panel discussion

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16 P H O T O S : R O D N E Y D AW

grocerybusiness.ca

March | April 2014

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New and now products

LIST IT

Première Moisson debuts 189 Harwood Première Moisson, a Québec bakery chain specializing in high-end gourmet products, recently launched the 189 Harwood line: a new label developed specifically for grocery and superstore consumers. The first products debuting under this new label are bake-at-home mini-pastries. All go directly from freezer to oven and are ready in 30 minutes or less. They are made from top-quality ingredients for exceptional taste and texture. premieremoisson.com/en

The Zesty Taste of Spain

Piller’s introduces Campofrio deli meats Campofrio, Spain’s #1 brand of handcrafted, cured meats, is now available in Canada via Piller’s Fine Foods. The Campofrio line features Jamón Ibérico and Jamón Serrano, the finest of dry cured hams, and other Spanish charcuterie, including Chorizo Clásico and Chorizo Sarta. vivacampofrio.com

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March | April 2014


Taste It To Believe It Pepsi Next is a new, naturally sweetened cola with 30 per cent less sugar and calories than the leading regular cola. Pepsi Next is sweetened with sugar and stevia extract, and contains 100 calories per 355mL can. pepsico.ca

Gardein expands veggie burger line Garden Protein International Inc. introduces three new gluten-free products to the Gardein line: beefless ground, veggie burger and black bean burger. These meatless products are made with non-GMO soy, pea proteins and veggies. Gardein beefless ground contains 84 per cent less fat than regular ground beef and has a real, meat-like texture. gardein.com

ThreeWorks Apple Ch!ps ThreeWorks Apple Ch!ps has added two new flavours to its line: Mango and Cherry Love. ThreeWorks Apple Ch!ps products are made from fresh apples, are fat- and gluten-free, never fried, kosher and nut- and peanut-free. This Torontobased snacking company was featured on CBC’s Dragon’s Den, and found a backer in Jim Treliving. threeworks.ca

grocerybusiness.ca

March | April 2014

71


it figures

The

HEALTHY

2/3

SENIOR

2/3 of consumers believe stores are not fully catering to the needs of older consumers

47%

49%

find easy-to-read

locating easy-to-

say itâ&#x20AC;&#x2122;s difficult to product labels

have trouble

open packaging

Takeaway Many older consumers have more time to shop and money to spend than younger shoppers, so get to know your consumer and create excitement with a heightened store experience.

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March | April 2014

14% of Canadians say they are already ordering groceries online for home delivery

33%

are willing to try it

Takeaway In the short term, online shopping will likely not replace grocery shopping store trips. However, digital usage is making significant inroads. As millions of baby boomers become seniors, health issues may inhibit driving. Using the Internet to grocery shop is a natural evolution.


1/3

Over of all meal occasions in consumers 55+ are focused on health concerns; however, more than 45% cannot find foods that meet special nutritional diets.

Takeaway On the product front, more work is necessary to cater to older consumers, who often have special nutritional diets or physical limitations.

52%

52% of aging consumers say that

eating healthy is the most important priority Takeaway Itâ&#x20AC;&#x2122;s important to uncover opportunities to offer products and services that resonate with seniorsâ&#x20AC;&#x2122; nutritional needs.

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

Carman Allison

grocerybusiness.ca

A L L S TAT S C O U RT E S Y: N I E L S E N

March | April 2014

73


Perry’s Point of View

THE FORGOTTEN CONSUMER In 2014, Canadians will spend about $93 billion on food for consumption at home. That’s about $2,650 per person, or about $50 per week. Canadians will spend another $20 a week eating out. The dollars spent on food in Canada climb only with population growth and food inflation. Population grows at just over one per cent; food inflation (as reported by grocers) is negligible. So, for grocers, where will real growth come from? Based on the 2013 Hunger Count survey by Food Banks Canada, about 800,000 Canadians use a food bank every month; over the course of a year, 1.7 million individuals make an estimated 14 million food bank visits. Given that food banks generally provide about five days’ worth of food to an individual or family, they are likely providing the retail equivalent of about $1.5 billion worth of food to Canadians. Since food banks regularly run out of food (38 per cent of those surveyed have had to short their clients due to lack of donations), the actual retail value of the “need” is probably $2 billion – over two per cent of the entire retail food market that is basically unserved by grocers (not including the estimated 50 million meals served by soup kitchens, shelters and school breakfast initiatives). Clearly, there is a massive need for even more affordable food than our hundreds of “discount” grocery and mass merchant stores

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March | April 2014

are providing. And in that need lies a route to new growth. Of course, the problem is that the 1.7 million individuals accessing food banks simply cannot afford to spend the equivalent of $2 billion on food, and so it’s all too easy for the food industry to dismiss these consumers as inaccessible. But what if there was a halfway point between the food industry’s need for growth and the 1.7 million Canadians in need of more affordable food options? Is it any coincidence that the fastest-growing formats in the food industry are discount; or that the percentage of food being bought at promotional prices rises every year? And although it’s fun and interesting to open upscale food stores, the bigger growth opportunity is at the bottom end. So, why can’t the food industry come up with lower-cost models that could deliver even lower prices than the discount format? For examples, look to players like Aldi and Lidl; to dollar stores; to cash-and-carry outlets; to innovations like the Daily Table; to affordable meal programs; and even to food banks themselves. The grocery industry can choose to leave it to governments to solve the problem of inadequate access to nutrition, but that also

runs the risk of wealth transfers turning up in higher taxes. Instead, the retail food industry can begin to address the problem itself – and grab some real growth – through cheaper distribution formats, lower-cost stores and, ultimately, more affordable food.

2%

of consumers are not being served by grocers

An industry this steeped in technology, logistics, purchasing power and real estate expertise should, at the very least, be able to develop streamlined formats delivering nutritious lower-cost food to an untapped, and largely forgotten, customer base.

Perry Caicco is the managing director for CIBC World Markets. His experience includes 15 years in the supermarket, general merchandise, and packaged goods industries with companies such as Coca-Cola, Consumers Distributing, and Loblaw Companies Ltd. Perry is a founding member of the Grocery Business Advisory Board.


9

?

items

TRY

the

or less

exact

opposite.

If it’s out there,

it’s in here.

FMI Connect is the new FMI show, redesigned so that every aisle, exhibit and education session is loaded with inspiration and ideas. Stock up on solutions for your entire store and every aspect of your business, including:

More fresh and perishables to keep customers coming back Retail technology to enhance the shopping experience New product innovations to boost margins in every department Basket-filling temptations and the latest taste trends

Join industry peers from every channel at food retail’s defining event.

Co-located with:

BEVERAGE

Register today at fmiconnect.net!


Canadian dairy farmers dedicate their lives to producing milk of the highest quality. When a dairy product bears our symbol, it helps consumers identify that there is quality Canadian milk inside. Itâ&#x20AC;&#x2122;s a symbol of origin that consumers look for and trust. So to everyone who proudly displays the 100% Canadian Milk symbol on their products and supports our hard-working farmers,

To find out how your business can participate, contact Gilles DeschĂŞnes at 1-800-361-4632 or gilles.deschenes@dfc-plc.ca

Keith Irving, Pugwash, Nova Scotia

March/April 2014  

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