May/June 2016

May March / June / 2016 Vol April6 2016 | No 3 Vol $9.95 6 | No 2 $9.95

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PM # 42211029

50 YEARS 50YEARS EARS + BrandSpark Shopper Study The Innovators International Store Design

Grocery Business May | June, 2016 Volume 6, Number 3

contents

Markthal, Rotterdam, Netherlands

DEPARTMENTS 9

Front End People & News

14

Open Mike

How to boost your margin dollars

74

It Figures

76

In Other Words

Digital double take

Galen G. Weston

23

Perspective

Inspirational entrepreneurs

16 4

May | June 2016

ON THE COVER

31 Buy-Low Celebrates 50 Years

31

63

FEATURES 16

True Patriot Love

Anthony Longo’s Antarctica adventure

24

Leaders on Leadership

27

Plastic Bags

28

BrandSpark 2016 Canadian Shopper Study

Kruger’s Mario Gosselin

PHOTO GALLERY 71

Committing to Cost Reduction

72 Canadian Grand Prix

New Product Award finalists

13 SIAL Canada 2016 68 Grocery & Specialty Food West

73

anadian Produce C Marketing Association Show

An uncertain future

63

The Innovators

The best of international retail design

69 70

73

28

The Costs of Going Green utting the Freeze on P Credit-Card Fees

grocerybusiness.ca

May | June 2016

5

showcasing innovation inspiring retailers

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Transitions Sobeys Inc. has named Beth Newlands Campbell president of the Atlantic/Ontario business unit. She was previously president of Food Lion in the U.S. Uwe Stueckmann has been appointed SVP marketing for both Shoppers Drug Mart and Loblaw following the merger of the two marketing departments. Shelagh Stoneham previously held the SDM marketing role.

Andrew Iacobucci has joined Ahold USA as executive VP of merchandising. Most recently, he was president of the discount division at Loblaw Companies Ltd. Senior industry executive Bill Ivany has been appointed chief operating officer of Tree of Life Canada.

Gilles Froment has joined Parmalat Canada as senior VP, government and industry relations. Previously, Froment was COO of the Canadian Dairy Commission.

grocerybusiness.ca

Kraft Heinz Canada has named Dan Lafrance (left) VP sales, overseeing grocery sales and foodservice.

Brian Kerr (right) is now VP and chief marketing officer, replacing Tony Matta, who has joined Starbucks in the U.S. Glen Smith has been appointed president of Advantage Sales & Marketing, replacing Michael Aucoin, who has joined Agropur as VP, sales. Greg Beehler (right) has been named Advantage’s new VP, sales.

Andrew Foust, formerly VP marketing, has been appointed general manager of McCormick Canada.

Previously at Agropur, Caroline Losson has joined Keurig Canada as VP, marketing.

Todd Kelly has joined KIND Snacks as managing director, Canada. Most recently, Kelly was VP, sales, for Irving Consumer Products.

Dave Lemmon has been promoted to the role of president, Canada and International, from VP, managing director, for The J.M. Smucker Company.

Aleks Djurdjevic Pinnacle Foods is pleased to announce that Aleks Djurdjevic has joined us as Vice President, Sales, effective February 8, 2016.

Aleks brings with him more than 20 years of experience in the food and consumer products industry.

Aleks’ extensive industry experience includes Sr. Director, Sales Planning and Strategy, at Campbell Company of Canada.

Prior to Campbell’s, Aleks held management responsibilities at several companies including Quaker, Tropicana, Gatorade Canada Inc., and General Mills Canada Corp.

May | June 2016

9

Connect with us to bring Canada’s #1 Medjool date brand to your health-minded shoppers: marketing@bvdg.com

Whole Dates

Pitted

Organic

Front End

CLOROX ACQUIRES PROBIOTIC LEADER RENEW LIFE The Clorox Company has acquired Renew Life, a leading brand in dietary health, for US$290 million. Renew Life is the number one brand of probiotics in the natural channel, with a steadily growing share in the food, drug, and mass channel.

“The Renew Life acquisition is consistent with our strategy to accelerate growth through bolt-on acquisitions of leading brands into fast-growing categories with attractive margins,” said Clorox CEO Benno Dorer.

“We’re excited to have added a terrific brand in a high-growth category to our already strong portfolio of products,” Mike Pilato, general manager, Canada, for Clorox told Grocery Business. “The market position of Renew Life in Canada is strong, and we look forward to accelerating growth to bring the benefits of the brand’s digestive health products to even more consumers.”

grocerybusiness.ca

May | June 2016 Volume 6, Number 3

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 Contributors Thomas A. Barlow, Adam Brown, Gary Sands, John F.T. Scott, Michael Marinangeli, Chris Robertson, David Wilkes

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

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

© Copyright 2016. All rights reserved.

No part of this magazine may be reproduced without written permission of the publisher.

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@grocerybusiness

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

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May | June 2016

11

Front End

Anthony Longo honoured

by University of Guelph Anthony Longo, president and CEO of Longo Brothers Fruit Markets Inc., has been honoured with the University of Guelph’s 2016 Distinguished Industry Leader Award.

The Award recognizes leaders who have a made a significant contribution within the Canadian food and agri-business sector, and have conducted business in a manner that exemplifies the principles of sustainable commerce.

Longo became president and CEO of the family-run business in 1998, and since then has grown it from three stores to more than 23 locations. In addition to a commitment to values-based, family-focused business practices, Longo was feted for his leadership contributions to a number of professional and community-focused organizations, including Vineland Research and Innovation Centre, the Canadian Federation of Independent Grocers, Food Marketing Institute, and The Grocery Foundation.

SE EY MA OU Y 9 IN t

o 1 TO 1, RO 20 N 17 T O

!

In Memoriam

CHAIRMAN SPONSORS

Bernard Sabourin Bernard Sabourin, a retired senior industry executive, passed away on April 3, 2016.

Thank you!

CPMA’s 91st Annual Convention and Trade Show in Calgary was a success. Thank you sponsors, for your continued support and enthusiasm.

Born and raised in Fort William (i.e., Thunder Bay, Ont.), Sabourin began his career as an office manager for Kraft Foods when he was just 19 years old. His love of storytelling and gregarious nature made him a natural salesman.

PLATINUM SPONSORS

GOLD SPONSORS

He was regarded as tough but exceedingly fair, and throughout his career was known as a generous mentor. Sabourin retired from Kraft Foods in 1992 as vice-president of sales.

@CPMA_ACDFL

#CPMA2016

Maria Arbulu, Foreign Agricultural Service (FAS); Kathy Boyce, Boyce Strategic Marketing; Sonya Jenkins, FAS

Montreal, Quebec April 13-15, 2016 • Palais des congrès William Crosby, Bridget Oland, Crosby Molasses and Co Ltd.

Bernadette Wiltz, Jonathan Van Balen, SUSTA

BK Sethi, BK Sethi Marketing Inc.

Chef Maurizio Ferrari, Christine Tos, Paul Blake, Finica Food Specialties

Dorina Ceapa, Cornel Ceapa, Pierre Fortier, Acadian Sturgeon and Caviar Inc.

Julie Goyette, Claire Morency, Industrie Gastronomique Cascajares

Sylvie Cloutier, CTAQ

Ines Zomahoun, Aymen Ziouiouch, Brahim & Oleiva Slama, Oleiva

Jonathan Gottfried, Erin Hanagan-Muths, Bard Valley Date Growers

Priya Verma, Gail Morris, State of Georgia Jeff Zimmerman, Foreign Agricultural Service

May | June 2016

13

Open Mike

Want higher margin dollars?

Move more tonnage You take margin dollars, not margin percentages, to the bank.

By Michael Marinangeli

When I worked in merchandising, my staff and I met with store operations every Monday morning to review the previous week’s sales. If sales were soft for an extended period of time, the discussion usually revolved around the strength of our flyer and pricing versus the competition. The operators looked for a quick fix to remedy the sales problem. There was tremendous pressure on merchandising to invest more heavily in deep-cut specials to drive sales. Taking dollars versus percentages to the bank was the favourite argument of the operators.

If the market was heating up, I usually agreed to spend more heavily in the ad to bolster sales. Unfortunately, this kind of margin investment often generated short-term sales gains with little or no margin-dollar gains, since cherry-picking by the bargain hunters became more prevalent. The better approach was always to review our overall value proposition, including the effectiveness of our pricing strategy vis-Ă -vis our competitors. It took more time and effort, but usually delivered a more positive and sustainable result.

The operators weren’t wrong in stating that we take margin dollars to the bank.

However, heating up the front page of the flyer with below-cost features did not deliver more margin dollars, but rather, a lower margin percentage. Managing your gross margin both in dollars and percentages is very important to your business. Grossmargin dollars pay the bills. Gross-margin percentage is the metric that you manage day in and day out to generate gross-margin dollars. When tracking sales, inventory turns and expenses, gross margin is the benchmark for how efficiently your company 14

May | June 2016

Open Mike

or store produces its profits. If gross-margin dollars stay the same each year but the margin percentage declines, your business is losing ground, since you are using more resources to generate the same result. Margin dollars and margin percentages are two different measures: • Retail margin dollars – the difference between the selling price and the landed cost to the store; • Retail margin percentage – the retail margin dollars divided by the retail selling price.

You are in business to make money. Margin percentage isn’t necessarily the best indicator of how profitable an item is versus others in the category. The penny profit you make on an item is a better indicator. The example below illustrates how you can be deceived into believing that the item with the highest margin percentage is more profitable than the one with the lower percentage.

Brand A

Brand B

Retail price

$2.99

$1.99

Gross margin %

40%

50%

Cost of goods

$1.79

$1.00

Gross margin dollars

$1.20

$0.99

The item with the lower margin percentage could actually be more profitable than that with the higher one. The retail price of Brand B would need to be adjusted to $2.19 to make the same penny profit as Brand A. This approach is beneficial when pricing private label versus national brands, since private label usually has a lower selling price and higher margin percentage. If you want to shift sales to private label, you need to ensure that shift delivers the same or better penny profit. This also demonstrates that your pricing strategy and your procurement strategy need to be congruent; you can’t just raise prices to raise penny profit. Often, you have to go back to your procurement people to source product at a lower cost, or review the product specs to ensure they are comparable to your competition.

So, when do you manage margins in dollars versus margin percentages?

Here are examples of how to use both metrics:

Manage for Margin % vs. Manage for Margin $ Weekly ad spend: gross margin % (ad items vs. total department)

Private-label penny profit vs. national brands

Total department budgets

Strategic price points to move tonnage

Vendor trade spending comparisons

National brands SKU profit comparisons

Category targets

Procurement: cost of goods analysis

The best approach to generating more margin dollars is to sell more products to your customers. It sounds obvious, but this is where the biggest opportunity lies. I have often noted that the centre of the store has been maligned and its significance to sales and profitability has been understated or misinterpreted. Recently, some analysts reported that this is the most profitable department. Start focusing on moving more profitable tonnage items by developing strategies in-store to get a fuller shop from your existing customers.

New or alternative retail formats that have ventured into the grocery business in recent years have captured much of the tonnage that used to belong to you. We have disguised some of the lost sales and margins over the years by adding new departments such as HMR, pharmacies and general merchandise, but I believe the amount of lost tonnage and margin dollars in the traditional grocery channel is staggering.

So start focusing on moving tonnage to generate more margin dollars. A lost sale delivers zero profits for you and more margin dollars for the competition.

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.

grocerybusiness.ca

May | June 2016

15

Giving Back

TRUE PATRIOT LOVE

By Sally Praskey

Anthony Longo in full gear at the summit of Mount Vinson, Antarctica.

“After hearing about how we can help our Canadian military, I thought: how can I not do it?” said Anthony Longo.

Longo, president and CEO of Longo Brothers Fruit Markets Inc., was explaining to Grocery Business his decision to participate in a gruelling expedition to the summit of Vinson Massif, the highest peak on the continent of Antarctica, to raise money for the True Patriot Love Foundation in support of members of the Canadian military, their families, and Canada’s veterans.

And raise money he did, even exceeding his ambitious goal of $100,000, thanks to the generosity of the Longo family and friends, as well as his colleagues in the industry. “These funds are needed for military men and women who are suffering from PTSD or are transitioning to civilian life because they are injured and have to leave the military,” says Longo.

Upon signing up for the expedition last May, Longo embarked on a rigorous training program that included a four-day training camp at Alberta’s Columbia Icefield, where participants learned how to walk with crampons (spikes on the bottom of boots for walking on ice), as well as many other skills. Longo, who has always exercised regularly, stepped up his usual regimen with boot-camp classes and personal training on weekdays – “my mornings were earlier than usual!” – capped off by running or hiking on the weekends.

16

May | June 2016

The expedition team, comprising 15 Canadian civilians, eight wounded Canadian soldiers, and five specialists, arrived in Antarctica on January 9, 2016, reaching the 16,000-foot summit eight days later. The 12 days spent on the continent proved to be a “life-changing experience” for Longo. “The importance of teamwork and communication and building trust early on is critical in a trip like this.”

The toughest day, he says, was a 1.2-kilometer, 45-degree climb from Camp 1 to High Camp, which took an arduous nine hours. From High Camp, it was another eight-and-a-half hours to the summit. “I was glad I made it there,” says Longo, “but when I reflect back, it was really the whole journey, not the summit itself, that gave me the satisfaction.”

During those long climbs, separated from other team members by six metres of rope, Longo had much time for quiet reflection. “You think about the things you want to do, the things you need to do, the things you need to stop doing, and who are the important people in your life that you want to spend more time with – those kinds of personal lessons.”

Not surprisingly for a grocery retailer, his greatest challenge was the food. “You can do a few days with the food that we had, but almost two weeks was really tough,” he recalls with a chuckle. “The most you can

Giving Back

2016 Mount Vinson, Antarctica Expedition for the True Patriot Love Foundation.

“We take our democracy and our quality of life for granted sometimes, and we shouldn’t.”

- Anthony Longo

Longo preparing for his climb.

CLIMB THE HIGHEST MOUNTAIN do is boil water and put dehydrated food in it. But you get through it and you get home and you eat!”

For 2017, the Foundation is planning three shorter destinations of seven to 10 days that will be accessible to more people. Longo’s advice for prospective participants: “pick the destination that has the most personal interest for you, and just do it. Once you jump in, you’ll be forced to be ready physically and to train hard.”

Longo remains deeply committed to the cause. “We really need to be supporting our military families,” he urges. “Just because we’re not in combat right now doesn’t mean they don’t need support, because they’re still suffering the effects of the physical injuries they sustained.

“We take our democracy and our quality of life for granted sometimes, and we shouldn’t. These are great people, and any time we can help, whether it’s interviewing them for jobs in our companies in senior or manager roles of some kind – they have great skills – we should talk to them about what they do, and try and help them along if we can.”

VINSON MASSIF

is one of the “Seven Summits” – the highest peak on each of the seven continents.

ELEVATION:

4,897m (16,067ft.)

DISTANCE FROM THE SOUTH POLE: 1,200km (746 miles)

FIRST ASCENT: 1966

For more information about the Foundation and its activities, visit truepatriotlove.com.

grocerybusiness.ca

May | June 2016

17

The Global Language of Business

ECCnet Phase 2 eCommerce

The CPG industry and its retailer customers are facing massive shifts to the way consumers shop for products. With so many consumers browsing and buying online – there are 3.5 billion Google searches conducted per day, and 1.2 trillion each year – both retailers and manufacturers need to deliver on the promise of a seamless omni-channel experience, or risk losing sales.

What Industry is Saying “GS1 Canada’s ECCnet Phase 2 – eCommerce is an important single source of accurate data. It will support our business and allow our customers to make more informed buying decisions in-store and online. This initiative meets not only our needs, but the needs of the grocery industry as a whole. It’s a major undertaking, but one worth investing in to deliver the right product, at the right price, at the right time.”

- Grant Froese, Chief Operating Officer, Loblaw Companies Ltd.

A new industry-driven initiative, called ECCnet Phase 2 - eCommerce, is a service to help trading partners serve these consumers.

www.gs1a.org/drivingecommerce

“ECCnet Phase 2 - eCommerce is a great initiative put forward by GS1 Canada to help increase manufacturer and retailer efficiencies. . .By using this solution for the entire industry, it is helping to accelerate and grow the eCommerce category for everyone.”

- Jordan Demeo, eRetail Manager, L’Oréal Canada

67%

OF CONSUMERS DELAY CHOOSING A PRODUCT IF NO IMAGE IS AVAILABLE

What is ECCnet Phase 2 – eCommerce?

EILEEN MAC DONALD President, GS1 Canada GS1 Canada and its Board of Governors are proud to announce the launch of ECCnet Phase 2 – eCommerce for online listing. An industry-driven, standards-based, cost-effective

This industry-driven initiative was launched to help manufacturers and retailers better serve their customers’ online shopping needs.

This initiative launched after industry asked GS1 Canada to develop and administer a non-proprietary, perpetually cleansed, standardsbased industry solution.

Based on consumers’ response to shopping, researching and

solution, ECCnet Phase 2 meets the evolving

buying online, this initiative will ensure that every product (in the

needs of consumers in today’s marketplace and

identified product categories for the first wave) is ready to meet

delivers the information they demand about

eCommerce business requirements with high-quality, standardized

the products they buy and consume. Capitalizing

photographs and access to all on-pack information — all helping

on the success and trust built with ECCnet

customers to make informed decisions before purchasing online.

Phase 1 for bricks and mortar, this new solution enables trading partners to efficiently exchange critical eCommerce information that is validated and perpetually-cleansed.

Who is driving this initiative, and why is GS1 involved?

ECCnet Phase 2 – eCommerce is supported by major industry associations and the majority of Canada’s grocery retailers.

Industry asked GS1 Canada to develop and administer a nonproprietary, perpetually cleansed, standards-based industry solution. ECCnet Phase 2 uses the same principles as ECCnet Phase 1 when it was founded by a group of industry associations in 2001 to meet industry supply-chain requirements. Originally funded by Industry Canada, ECCnet Registry has a strong, current user-base of more than 4,500 users.

% 33

SALES UPLIFT WITH

out-of-pack shots providing additional context

The above groups and other industry representatives are collaborating with GS1 Canada to develop and administer a cost-effective, streamlined industry-wide solution. Because GS1 Canada is a neutral third party, working on a cost-recovery model, it can develop solutions that fit both retailers’ and manufacturers’ requirements.

Every manufacturer selling products to major Canadian grocery retailers, in the identified categories, is requested to participate in this initiative.

Why is this initiative important now?

Much of the information in the marketplace today is crowd-sourced, and is not always accurate or up-to-date. ECCnet Phase 2 will ensure that the consumer experience online equals their experience on-shelf.

In other countries, the grocery sector is very familiar with online supermarkets, and retailers are increasing in sophistication and service. Canada is at a point where it needs to ensure accuracy and

www.gs1a.org/drivingecommerce

ECCnet Phase 2 - eCommerce ensures that: * every product that is listed in the database will be ready to meet eCommerce business requirements. * all the images and information that consumers see online will be consistent with what they would have access to when they see that product on-shelf, in a bricks-and-mortar store.

consistency in product information and images so it can meet

How does the process work?

current needs and build a solid foundation for online

Digital, standardized on-pack information and images are

success going forward.

entered once into the GS1 Canada solution, and are then

ECCnet Phase 2’s depth of information not only allows

distributed to all the manufacturers’ trading partners.

consumers to consistently view the product clearly, but it allows

Creating one industry solution that all trading partners can

the brand marketers to add incremental information to help

access means that manufacturers only need to add their

consumers with their buying decision.

product information once and any subsequent changes automatically update. With ECCnet Phase 2, the solution

What are the benefits to manufacturers?

can be updated to all the retail partners at once, eliminating

• Increased sales opportunities: Customers will buy products

the need for duplicate processes.

online when they can see product images and have access to detailed information.

• Accurate on-package information: About ingredients, nutrition, warnings, and use or care instructions.

• Improved efficiency: Submit products once and they can be shared with all trading partners. There is no need to go through a different process or requirement for each retail partner, which saves time and money, and reduces the risk of inaccurate

40

%

SALES UPLIFT IF MULTIPLE PRODUCT IMAGES ARE AVAILABLE

information.

• Reduced brand risk: Ensures that all information received by customers has been third party validated and/or certified by the brand owner. Manufacturers can control their brand and message.

What are the benefits to retailers?

• Improved shopping experience for customers: High-quality, accurate images and data close the gap between the online environment and traditional bricks-and-mortar stores.

• Consistency: With standardized images, retailers can offer a consistent consumer experience across their

Lesley McKeever, Senior Vice-President,

entire range.

Grocery and Foodservice, GS1 Canada

• Validated product information: On everything from product claims to nutrition information.

• Reduced retailer risk: Ensures that all information the

“With eCommerce growing six times faster than traditional bricks-and-mortar retailers, manufacturers need to accelerate their eCommerce initiatives, or risk

customer receives has been third party validated and/or

becoming irrelevant and losing share to competitors

certified by the brand owner.

who capitalize on this growing opportunity.

• Sales promoted: Delivers the right product, with the right image at the right time.

67%

of online shoppers say that information and the quality of product images is very important to their process of selecting and purchasing products.

Consumers are shifting their behaviour to shop online, and to research online before they make a decision to buy. Those buying decisions are based on finding the right product with the right image and at the right time.

A lack of the required level of detail and appropriate images results in lost sales.”

www.gs1a.org/drivingecommerce

96% HIGHER

click-through rate with large images that shoppers can zoom in on

What product categories are included in the first wave of this initiative?

Nicole Gourley, Senior Vice-President,

Baby

Cosmetics Cleaning/ Household/ Paper

Health and beauty aids

Industry Relations,

Pharmacy (over the counter)

Food and natural food

GS1 Canada

Pet

“ECCnet Phase 2 -

Alcohol

eCommerce delivers value to all industry stakeholders, including brand

. . . And many more categories to come.

What will consumers see when they search for these products on retailers’ websites?

• High-quality, standardized images and data.

• Accurate listing of all on-package information, including ingredients, nutrition, allergens, warnings and usage instruction.

owners, retailers and eTailers, distributors and trade associations.

Capturing publicly available, accurate and up-to-date image and data from the product package is absolutely vital for eCommerce success in Canada. By capturing this content, a consumer can have the same or better experience, as they would if they were viewing the product on the shelf. If inaccurate, it has a direct impact on all parties – most notably the consumer, who is

• Enhanced marketing information.

• Trusted, accurate content to make informed buying decisions.

What are the images and data used for?

unable to make their purchase decision.

ECCnet Phase 2 – eCommerce provides a central registry of eCommerce content. GS1 Canada ensures

• To promote products online and in marketing materials.

the accuracy of this registry with a “two pass”

• To develop retailer promotions, including healthy eating plans

validation process. This process ensures content has been accurately captured from the package, in

and menu suggestions.

• To give customers access to all on-pack data when shopping online.

• To provide trusted, accurate, brand-authorized content that can be used online and offline for trading partner relationships.

• To foster customer loyalty and consumer safety, and preserve brand

both English and French. Brand owners are also provided with an additional data integrity step to enhance and control the brand through a certification.

This step includes the ability for brand owners to “top up” on-package content with additional features and benefits, as well as certify content that was

reputation.

• To populate various applications and tools.

captured by GS1 Canada.”

Who is GS1 Canada?

GS1 Canada, the Canadian arm of GS1 Global, is a neutral, not–for–profit organization that enables its more than 20,000 subscribers — organizations of all sizes from over 20 sectors across Canada — to enhance their efficiency and cost effectiveness by adopting

electronic business supply chain best practices.

GS1 standards enable organizations to identify, capture and share information smoothly, creating a common language that underpins systems and processes all over the world.

Source: Brandbank

ECCnet Phase 2 – eCommerce is supported by:

Perspective

Inspirational Entrepreneurs

By John F.T. Scott

Several years ago, in a meeting with a federal cabinet minister, the CEO of a well-respected independent grocery retailer was pointedly asked the difference between a corporation and an independent. “If I’m the CEO of a corporation,” he replied, “and I build a store but make a serious mistake, all that might happen is that I would lose my job but be rewarded with a substantial severance package.

As an independent, if I make a serious mistake, I place the financial future of my company, its employees and my family at risk because there is no safety net for an entrepreneur.”

I remembered that story after attending the opening of Will and Ingrid Willemsen’s new Sunripe at Hyde Park in London, Ont., where I had seen the magic of entrepreneurship at its best. Family members were proudly in evidence as their new investment was officially unveiled to an obviously appreciative consumer.

It’s not just that the new Sunripe portrays an exceptional image of fresh. Nor is it the signature prepared foods, attractively arrayed in enticing displays and demonstration areas. Neither is it that the warm culture has been effectively transferred, despite very few experienced staff working in the new setting. No, it’s that the Willemsen family is pervasive in every aspect of the store – the products, the atmosphere and, most of all, the customer service. It’s obvious with the presence of the next generation (an amazing photo of Will and son Ryall greet you on entry) that the family passion to serve the consumer with nothing but the best in freshness and quality is in good hands.

Last May, the industry applauded as Stong’s Market announced their return to Vancouver’s North Shore after an

grocerybusiness.ca

absence of 25 years, while at the same time announcing a new offering to replace the well-respected Shaughnessy location in the next year. Once again, a courageous move by owner Cori Bonina, who is one of Canada’s most respected grocery entrepreneurs. Several years ago, she recognized that the existing store would be difficult to redevelop to modern standards, so she seized the opportunity when new locations came available. I know from conversations with the family that the decision to move forward was a challenging one, but having come to a positive conclusion, it has been full steam ahead in planning and executing an unbelievable offering that is the first available to consumers on the North Shore. How admirable to have the confidence to know exactly what will delight a discerning customer.

These are just two examples of the entrepreneurship that defines our independent community. Both owners have heavily invested, secure in the knowledge that their assessment, industry background and unique brand will resonate in their respective communities. As you visit these stores (and you must), perhaps you will recall my opening story – that it’s all on the line for these incredible entrepreneurs. They, and others like them, create the true excitement and opportunity in this industry.

John F.T. Scott speaks, writes and consults on the food distribution sector. He is the author of “Perspectives on the Retail Food Industry,” an itinerant publication that explores various aspects of the industry.

May | June 2016

23

MARIO GOSSELIN CHIEF EXECUTIVE OFFICER KRUGER PRODUCTS, L.P.

How would you define your leadership style?

By surrounding myself with experienced leaders whose functional knowledge I can depend upon, I’ve been able to create an environment of empowerment which allows our leaders and their teams to accomplish the company’s objectives.

How were you able to work during the day while going to school in the evenings?

A company like Kruger will give you a lot of flexibility. I think I’m a good example of that. I started at the bottom and was given many opportunities to take on new responsibilities as my career progressed. It was very fulfilling and motivating.

What is the most important piece of career advice you received?

Be willing to take calculated risks. Standing still and playing it safe isn’t what leadership is about.

What accomplishments are you most proud of?

I am trained as an accountant but wanted to further my education to develop my general management knowledge.

I am particularly proud of completing my MBA because I took courses part-time on Saturdays, but also because I completed it at Concordia – an English university – at a time when my English was really poor. It’s a great source of pride for me.

C-Suite

LEADERS ON LEADERSHIP

BIO BRIEF CAREER MILESTONES • 17-year-old summer student at Kruger Inc. doing tasks such as sweeping floors and cutting rolls of paper.

• 1978: Joined Kruger as an accounting assistant while completing studies in the evening.

• 1999: Vice-president finance, Scott Paper Ltd. (now Kruger Products)

Driven by the evolution of the consumer, the CPG industry is going through a period of disruption; how can the industry best respond?

This really is an exciting time filled with many changes. And with retailer consolidation, emerging channels such as e-commerce and the changing needs of consumers, we must face these challenges directly as an industry.

Understanding the evolving consumer is more important than ever. For example, today more men are shopping; Canada’s ethnic diversity continues to explode; social media makes us all more accountable. Increasingly, we understand how sustainability issues affect the supply chain. New ways of addressing these issues is imperative, and retailers and their vendors have an opportunity to more closely collaborate on solutions.

Can you please describe a career highlight?

In 1997, Kruger purchased Scott Paper Ltd. and its existing brands, which we were able to use for 10 years, but we knew we had to launch our own brands by the end of that period. That transition was an exciting but unchartered time.

grocerybusiness.ca

Whose leadership style do you most admire?

Jeff Bezos, Tim Cook and Warren Buffet would be at the top of my list; all visionaries in their own way.

Can you share something people may be surprised to know about you?

Several years ago, I took up cycling, and each summer I ride about 3,000 km. I enjoy the freedom cycling affords, and it allows me time to just relax and to clear my mind. It’s great!

As they enter this rather volatile business environment, what advice would you offer to young people?

A lot has been written about Millennial employees and how different they are versus my generation. That may be true, but to me, there are some constants – the opportunity to contribute energy, ideas and tenacity to your work remains the same. It’s okay to respectfully challenge the way things have always been done before; I think most organizations would welcome a fresh perspective.

In an era when young professionals typically work for several companies over their careers, retaining them is a greater challenge, and it’s up to us to make sure we have the right programs in place.

• 2012: Chief Executive Officer, Kruger Products EDUCATIONAL BACKGROUND • Bachelor’s Degree, Accounting Sciences, University of Québec, Trois Rivières • MBA, Concordia University INDUSTRY BOARDS • Food and Consumer Products of Canada Board of Directors • KP Tissue Inc. Board of Directors PERSONAL INTERESTS Biking, golfing, classic sports cars FAMILY Mario and his wife Suzi live in Oakville, Ont., and have two grown children.

FAVOURITE BAND(S) Led Zeppelin and The Who FAVOURITE HOCKEY TEAM Chicago Black Hawks!

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Join the STRIDE gum relaunch that will blow your shoppers’ minds: • Electrifying NEW LOOK (Vertical Orientation Pack) designed to stand out and help drive category engagement at shelf • Improved SHELF PRODUCTIVITY within existing footprint • NEW dual-layered product with CRUNCH REACTORS Contact your Mondelēz Canada representative at 1-855-219-6672.

© Mondelez ¯ International group

Retail Intelligence

Plastic Bags –

An Uncertain Future

By David Wilkes

The plastic bag has been part of the retail landscape for decades, and has long been a symbol of customer service and convenience. However, the future of the plastic bag is now the centre of a debate, with a number of municipalities across the country – including Montreal, Victoria and Vancouver – announcing their intention to ban thinner plastic bags.

Before municipalities rush into populist bag bans, the pause button must be hit to ensure that all the facts are gathered and the right decision is made, not a seemingly easy one.

The following facts must be considered as we move forward.

Retail Council of Canada (RCC) members recognize the need to ensure that bags are disposed of properly and do not end up littering public streets. Members have implemented several programs to reduce the number of bags that are distributed and ensure that those used by consumers are recycled. Initiatives include charging for plastic bags, providing reusable bags and educating consumers to use fewer bags when taking home their purchases.

grocerybusiness.ca

These have been successful in reducing the distribution of plastic bags by more than 50 per cent in most Canadian provinces.

These efforts will continue.

Banning plastic bags may also affect recycling programs across the country.

Plastic bags are recycled up to 80 per cent of the time where facilities exist. Industry pays municipal costs for the collection, transportation and sorting of this material in five provinces. The plastic film is valuable to recyclers and is resold to help offset costs associated with running recycling programs.

Banning bags would affect the viability of these recycling programs.

Before bans are considered, there are several proactive steps that municipalities should take to reduce litter and distribution of bags, including ensuring all municipalities collect plastic bags as part of their recycling program and that comprehensive public education programs are implemented to inform consumers that plastic bags can be recycled and should not be thrown away.

Finally, municipalities must make decisions based on proper data. RCC is committed to

working with municipalities to gather information on the use of plastic bags.

This information is expected to be available this fall, and will provide important data to ensure informed decisions are made. In the meantime, RCC is urging all municipalities to pause before enacting bans in order to make the best environmental decision.

The next several months will indeed define the future of plastic bags for Canadian retailers. RCC will continue to work with municipalities and members across the country to ensure that facts, not perceptions, are at the centre of this debate. Our goals are simple, and RCC will work to ensure all the facts are brought to the table, and that municipalities implement a harmonized, consistent approach to the treatment of plastic bags across the country.

Stay tuned. It’s going to be an interesting ride.

David Wilkes is senior vice-president, Government Relations & Grocery Division, Retail Council of Canada.

Contact: dwilkes@retailcouncil.org

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The Consumer

Highlights from BrandSpark’s 2016 Canadian Shopper Study How shoppers shop now TYPE OF SHOPPING TRIP MADE MOST RECENTLY

54%

1%

ONLY

8% REPORT

7%

Other

Stock-up trip for more than a week’s worth of a few items

Regular grocery shopping trip

BUYING GROCERIES ONLINE

39%

Trip for a few needed items (small basket)

Total

TYPE OF SHOPPING TRIP

BY RETAIL LOCATION Other

7%

7% 15

8

%

6%

3%

4%

7%

%

28%

25%

39%

39% 42

41%

%

45%

Stock up Trip for a few needed items Regular grocery shopping trip

69%

54%

Small Basket Index To Total

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60%

50%

63%

54%

Costco

Walmart

Loblaw Discount

Other Discount

0.65

1.09

0.72

1.01

56%

49%

Loblaw Other Conventional Conventional

1.06

1.16

22% Shoppers Drug Mart

1.78

Among those shoppers who do buy groceries online, Walmart Pickup and Loblaws Click & Collect were the most broadly used

39%

Walmart Pickup

24%

Loblaws Click & Collect

19% 18%

IGA Online Grocery Grocery Gateway

6%

Smart City Foods

DELIVERY TO HOME VS. AT-THE-STORE PICKUP

75% 25% Prefer delivery direct to home

Prefer pickup at a local store

FOR THOSE WHO HAVE NOT BOUGHT GROCERIES ONLINE, THERE IS POTENTIAL FOR GROWTH, BUT INTEREST IS CURRENTLY LIMITED

9% 10% 25% 19% 20% 17% Definitely Would

grocerybusiness.ca

Very Likely

Somewhat Likely

Somewhat Unlikely

Very Unlikely

Definitely Would Not

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Congratulations Buy-Low Foods on 50 years!

Looking forward to many more years of partnership.

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0 RETA I 12312 -0456 LER 0123 -0789 -01129-46 WWW.B CLC.C OM

A 50-Year Commitment to Quality and Value

Congratulations BUY-LOW FOODS

50

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Anniversary

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FROM YOUR FRIENDS AT

We value our partnership and look forward to a long and prosperous future together.

Love the taste every time.

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As Buy-Low Foods Ltd. celebrates 50 years serving consumers and, more recently, independent grocers, president Dan Bregg shares his views on how the company has thrived in the face of an intensely competitive grocery landscape.

DAN BREGG, PRESIDENT BUY-LOW FOODS LTD.

By Sally Praskey

“We have grown and prospered over five decades because we put “People First,” he says. “This philosophy is based on the belief that every person on the team can – and must – make a difference to the consumer’s or our wholesale customer’s experience. We are, after all, only as good as the people who deliver the quality and service our customers expect. We focus on our staff, because if we care about our own people, they in turn will care about the customer.”

Although the company has evolved with the times, its values have remained steadfast: people, communication, service and integrity.

On the Cover – The Leadership Team: Dan Bregg (top); from left to right – Larry Chmielewski, Leonard Jang, Aaron Bregg, Ian Dickson, Clark Wong, Sandra Stelting, Atanu Dalal, Troy Dewinetz, Albert Lum, Dereck Hein, Sam Corea.

grocerybusiness.ca

PHOTOS: VICTOR CHAN

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TULATIONS BUY-LOW FOODS ON 50 YEARS CONGRA

Congratulations On Your 50th Anniversary ______________ ______________

Visit us at Snoboy.com or email us at Snoboy@amerifresh.com

twitter.com/SnoboyProduce

facebook.com/amerifresh

amerifresh.com

T O B U Y- L O W F O O D S GROWING WITH YOU T H R O U G H I N N O VAT I O N !

Mann Packing Co., Inc., Salinas, CA • 800.884.6266

The Beginning When Bob Eastman, Merv Johnston, Carl Ruby and Lorne Pearson opened a small grocery store in 1966 at 16th Avenue and Arbutus Street in Vancouver, little could they have imagined that their modest operation was the beginning of the retail and wholesale enterprise that would become Buy-Low Foods.

A scant month later, Buy-Low Foods acquired the assets of G&H Marketing, which included a grocery distribution centre – now the organization’s facility and head office – as well as a produce distribution centre, and eight corporate and four franchise stores operating as Giant Foods or Shop N Save stores.

The following 29 years saw dramatic growth, with the addition of several corporate and franchise stores, as well as a small distribution centre.

Then followed a period of consolidation, as the company merged the operations of Buy-Low Foods and G&H Marketing, and closed some under-performing stores. By late 1997, Buy-Low had been reorganized to comprise a grocery wholesale division, Westcoast Produce wholesale operation, and 12 corporate and six franchise stores.

Then came a watershed year in 1995 when The Jim Pattison Group purchased Buy-Low Foods, which then consisted of four corporate and four franchise stores.

CONGRATULATIONS TO BUY-LOW ON YEARS!

720_Buy_Low_Foods_4.375x5.375.indd 1

#1700 – 33 BLOOR ST EAST, TORONTO, ON, CANADA M4W 3T4 • T 416 925 9819 • F 416 921 4180

Artwork2016-03-18 12:26 PM

Revisions REV. # 0

On behalf of Canada Bread, we would like to congratulate the entire Buy-Low Foods team on their

Date: Docket #: Brand: Description:

2016, Mar 17 SMT CAM P63720 Campbells Buy Low Foods Flyer Ad

File Name: Live: Trim: Bleed: Colours:

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IMPORTANT: This art has been checked and proofed for accuracy by all signed.

Client:

Campbells

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Art Director: Stan

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Signature

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ART DIRECTOR

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Account Exec.: Erika Operator: Andrew B.

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and for the strong partnership that we have enjoyed over these years.

2016021AO_a 2016

MEINHARDT FINE FOODS AND NESTERS MARKET EACH WELCOME CUSTOMERS WITH THEIR OWN UNIQUE COMBINATION OF QUALITY PRODUCTS AND EXCEPTIONAL VALUE-ADDED SERVICES.

The Beginning (continued)

In subsequent years, the company made a series of acquisitions, including its first store in Alberta in 1998. Its purchase of Associated Grocers Inc. from the Overwaitea Food Group in 1999 made Buy-Low Foods the largest wholesaler to independent retailers in Western Canada. With the 2001 purchase of Vancouver’s Van-Whole Produce, it also became the market leader in produce wholesale in Western Canada.

As the 21st century dawned, the company took a new direction when it acquired Nesters Market in Whistler, B.C., serving the upscale, organic and natural demands of this niche market. It opened 11 more Nesters Market grocerybusiness.ca

stores, both new and rebranded, in Alberta and British Columbia, including Woodward’s Food Floor by Nesters Market in the redeveloped Woodward’s site in Vancouver in 2009. Similarly, the 2012 acquisition of Meinhardt Fine Foods in South Granville, Vancouver, marked BuyLow Foods’ entry into the gourmet and specialty grocery niche. Most recently, Meinhardt launched Meinhardt Express in the Pacific Centre Gourmet “grab-and-go” Urban Market.

Growth through acquisitions and renovations continued through 2015, to a total of 38 corporate and franchise stores under the company’s proprietary store formats, and servicing more than 650 independents through its wholesale grocery division, and more than 1,200 retailers, restaurants and wholesalers through its produce operations.

That’s a long way from 16th Avenue and Arbutus Street!

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ID Foods Corporation congratulates and extends their best wishes to Buy-Low Foods for their 50 years of success in the Canadian grocery industry.

www.idfoods.com

A proud supplier to

Congratulations on your 50th anniversary.

Wishing you continued success!

Looking Back…

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Congratulations to Buy-Low Foods on your 50th Anniversary

Happy 50 Birthday th

M PROUDLY FRO Y IR A OUR D IN DELTA, BC

BUY-

ODS O

WF LO

www.centennialfoodservice.com

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LOOKING FORWARD TO THE NEXT 50 YEARS!

Catering to the Community Buy-Low Foods caters to many different kinds of customers, in urban, suburban and rural communities throughout British Columbia and Alberta.

To best meet the needs of each community it serves, the company operates several banners. Its 35 corporate and three franchise stores include 18 Buy-Low Foods, 12 Nesters Market stores, four AG Foods, two Meinhardt Fine Foods, one Budget Foods, and one Buy and Save Foods. While all have strong roots in their communities, each format has its own unique style and offering.

For example, the Nesters Market locations are full-service supermarkets offering an extensive selection of valueadded products, as well as fresh bakery, deli, meat and produce. The acquisition of the first Nesters outlet in Whistler, B.C., back in 2003 was Buy-Low’s entry to a niche market serving an upscale clientele with a yearning for natural and organic foods.

grocerybusiness.ca

On the other hand, customers have been able to count on Buy-Low Foods stores for “low low” prices on top-quality produce, meat and national-brand products for more than 50 years. Buy-Low Foods and Budget Foods are neighbourhood supermarkets that aim to be the value leaders in the communities they serve.

While each banner is distinct, they all share a commitment to delivering quality products at “low low” prices, as well as a mandate to give back to the communities they serve through the schools and various organizations that seek assistance. “We do our best to provide groceries to those that can use them to fundraise or set up events, such as hotdog sales, bake sales and other functions,” says Bregg.

“Our goal is to build relationships within our community that have people saying, ‘that is my store’.”

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Congratulations to Buy-Low Foods on your 50th Anniversary 6 19

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Concord National is proud to have been a partner for 47 years and we look forward to continued growth & success for many more years.

SOY FREE

www.concordnational.com

GLUTEN FREE

LACTOSE FREE

NO MSG ADDED

Long Term Partners

9018 DP - Grimms Buy-Low Print Ad - v03-OUTLINE.indd 1

03/03/2016 10:18:19 AM

With

Long Term Success United Poultry Co. Ltd.

Congratulations on a truly impressive milestone!

We are proud to have been a part of your journey and look forward to our continued success in the future.

A Wholesale Success Buy-Low Foods is more than a retailer; it is also Western Canada’s largest food wholesale distributor to independent grocers.

BUY-LOW AND NESTERS MARKET: A SHOWCASE OF FRESH.

That puts the company in the unique position of having one division leverage the other. “We look at our business as two pillars of a bridge,” explains Bregg. “Each of the pillars helps to support the other, and creates a connection between the two such that one side of the business supports the other. As a wholesaler and a retailer, we have the opportunity to partner directly with the finest suppliers and growers and producers from around the world, and to bring our retail and wholesale customers the best possible offering every day.” grocerybusiness.ca

For over 89 years, Associated Grocers has served Western Canadian retailers. Through Associated Grocers, Buy-Low Foods services more than 650 independent retailers in British Columbia, Alberta and Saskatchewan, from distribution centres in Surrey, B.C., and Calgary, Alta. Independent retailers gain access to the cost-effective marketing, advertising, point-ofsale technology and merchandising support services they need in their ongoing battle to maintain their niche market positions.

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CONGRATULATIONS ON YOUR

to

BUY-LOW FOODS on achieving

AR V ERS I N N t h A L OW BU Y

50

50 YEARS

Y

of

BUSINESS SUCCESS from your friends at

FROM ALL YOUR

FRIENDS AT GENERAL MILLS

w_Anniversary_Ad_EN_Final.indd 1

Paper, Packaging and Cleaning Supplies

2016-03-02 1:46 PM

A Wholesale Success (continued)

Those retailers include members of the Canadian Federation of Independent Grocers (CFIG) in British Columbia and parts of Alberta.

“Buy-Low develops personal relationships with our members,” says CFIG president and CEO Thomas Barlow. “They treat them like they would want to be treated if they were a store operator.

They take the time to understand our members’ needs, and they help customize a solution that works for their customer.”

A second wholesale division, Vancouverbased Van-Whole Produce, services more than 1,200 ethnic and traditional produce markets, restaurants and other wholesalers throughout B.C., through the prairie provinces, and as far east as Ontario. Recognized as Western Canada’s leading produce wholesaler, with a network of over 600 growers from 40 countries, Van-Whole Produce sources, purchases and delivers more than 450 varieties of fresh fruits and vegetables to its customers.

“Our retail operations are a unique combination of formats, each designed to suit the needs of the STAFF STOCKING-UP AT MEINHARDT

neighbourhoods that we serve,” says Bregg.

“And when you combine this with our in-house wholesale expertise, it leaves us very well positioned to bring the best knowledge and experience to the table and to help each location compete in their marketplace, whether it’s an independent, a franchise, or a corporate location. The combined strength of our wholesale and retail operations gives us the ability to leverage our experience with independent operators and, at the same time, helps us to retain our family-owned and -operated philosophy in all of our corporate locations.”

ASSOCIATED GROCERS MISSION STATEMENT Associated Grocers is committed to providing exceptional and innovative service to the independent retail grocer in Western Canada. We pledge our ongoing support to the growth and development of a profitable partnership with the independent customers we serve.

® Registered trademarks of Kruger Products L.P. © 2016 Kruger Products L.P. ®’ used under license.

Gr-Trh-at’s eat!

ANNIVERSARY! * © 2016, Trademark of Kellogg Company used under licence by Kellogg Canada Inc.

AD_4_375X5_375_50eAnnBuyLowFoods.indd 1

2016-03-14 1:43 PM

Congratulations to Buy-Low Foods on 50 years of success

Commitment to the Customer Buy-Low Foods believes it is only as good as the people who work there.

That’s why the company focuses on its staff, presuming that if it cares about its own people, they in turn will care about the customers.

To that end, the company’s more than 2,000 retail employees have been trained to deliver the prompt, personalized service that customers deserve.

Buy-Low’s goal is to distinguish itself by giving the customer a greater level of service than he or she expects, and by giving back to the communities it serves, says Sam Corea, director of retail operations.

The company is also a firm believer in “service recovery.” In other words, when things go wrong, as they inevitably will in any organization, BuyLow’s goal is to make sure that the customer leaves with the quality, service and satisfaction that he or she originally should have received, but also knowing that Buy-Low’s people care and are taking steps to ensure it doesn’t happen again.

SAM COREA DIRECTOR OF RETAIL OPERATIONS

Corea cites the grocer’s delivery service as an example of how it differentiates itself from its competitors.

“If people need help putting away their groceries, our drivers will do it. People really appreciate that.” Over the years, staff have changed flat tires, driven customers to the hospital, helped people retrieve keys locked in their cars – the list goes on.

“We have built relationships and managed to grow our business because day in and day out, we put people first,” Corea says.

grocerybusiness.ca

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17761RZ

Rita Zietsma

MLF

Description

BuyLow Anniversary Ad

Requestor Production

905-285-1991

rita.zietsma@mapleleaf.com

Version

1

RK NA

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NA

Job# 17761RZ_a Date Feb 8, 2016

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Maple Leaf Foods Inc. 6897 Financial Dr Mississauga, ON, Canada L5N 0A8

Congratulations, Buy-Low Foods, on your 50th anniversary!

Together, with the following vendor partners, we are committed to contributing to your continued growth and success.

PRODUCT OF CALIFORNIA

www.acosta.com

Meinhardt Fine Foods: Fresh new concept

Buy-Low Foods’ 2012 purchase of Meinhardt Fine Foods took the company in yet another direction. The store, established in the stylish South Granville shopping district of Vancouver in 1997, has earned a reputation for imported and specialized grocery products, spices, condiments and gourmet offerings, as well as an extensive hot and cold ready-to-eat home meal replacement program.

“I couldn’t be more excited to introduce our new concept of healthy grab-and-go fare within our boutique marketplace,” said general manager Michael Meinhardt on the occasion of the opening. “We realize that time is the new currency for urban customers, and we want to offer them a fun and exciting culinary hotspot where they can feed their curiosity.”

In 2015, nearly two decades after the debut of the original store, Meinhardt launched the convenience-focused Pacific Centre Gourmet grab-and-go Urban Market. Similar in concept to a New York-style bodega, the 3,500-sq.ft. store features old-growth Douglas-Fir wood shelving salvaged from a 1905 dairy barn in the Fraser Valley.

Managed by an executive chef, the latest innovation satisfies urbanites’ desire for a home-cooked meal on the go. Among its unique offerings are 36 feet of chef-prepared signature dishes, eight feet of sushi offerings prepared daily, and 12 feet of hot bar featuring Meinhardt traditions like butter chicken, palak paneer, and beef vindaloo daily.

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FEED YOUR ADVENTURE

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Congratulations on 50 years!

CONGRATULATIONS ON 50 YEARS! WWW.MARSHAM.CA

WWW.MARSHAM.CA

Crusading for Kids Whether through a golf tournament, an auction, or any other event in a long list, Buy-Low Foods is committed to raising money for Variety – the Children’s Charity.

For more than 26 years, the company has raised over $3 million for Variety. In 2015 alone, it raised more than $216,000, a new record. The funds go toward helping children who have special needs, by providing lifesaving medications and trips to out-of-community hospitals for critical care; mobility and communication equipment and therapies; and opportunities to attend special schools and summer camps. Variety has assisted more than 60 organizations in British Columbia, ensuring it reaches as many children as possible.

The company organizes and supports many other events as well. For example, The Annual Variety Auction and Vintage Market features a Buy-Low Foods store set up at the Westin Bayshore Vancouver hotel, with everyday grocery items on sale for up to 70 per cent off the regular price. There is also a live and silent auction, as well as an extensive craft fair. The 34th annual event in 2015 raised a whopping $94,000.

Buy-Low’s relationship with Variety began in 1990, when the charity approached the company to organize a carnival during the annual Telethon event. Despite taking place on a frigid day in February, the carnival went off flawlessly. The following year, Variety asked Buy-Low to extend its participation by being the food sponsor. The company eagerly accepted, and the Telethon has become a flagship fundraising event in Buy-Low.

$3 MILLION RAISED OVER 26 YEARS

$216,000

RAISED IN 2015

grocerybusiness.ca

WINDSETFARMS.COM

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CONGRATULATIONS BUY-LOW FOODS

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CHEERS TO 50 YEARS

OF SUCCESS!

The trademarks that appear are the property of their respective trademark owners.

All trademarks are owned or used under license by Parmalat Canada, Toronto, ON, M9C 5J1. © Parmalat Canada, 2015. All rights reserved.

All trademarks are owned or used under license by Parmalat Canada, Toronto, ON, M9C 5J1. © Parmalat Canada, 2015. All rights reserved.

DOCKET#: 16-CB3-476

FILE NAME: Buy Low 1/4 Page Tribute Ad

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Sharing the moment with BUY LOW FOODS, Happy 50th Anniversary!

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Feel Good Fuel

oceanbrands.com

Congratulations to 6 19 YO

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Crusading for Kids (continued)

“This has always been a team-focused event for us,” says Bregg. “Staff volunteer their time running the Market, our suppliers donate the grocery items, and we have a lot of fun. Supporting Variety for all of these years is just one of the ways we demonstrate our commitment to giving back to the communities that we serve.”

Other regular events include the Kids Champion Coin Drive, a friendly competition among all the stores under the Buy-Low Foods umbrella; and the Variety Golf Classic, now celebrating 19 years, and having raised $77,000 in 2015. Also in the spirit of friendly competition, all the stores in British Columbia and Alberta sell Gold Heart collectable pins; the company helps the cause by rewarding the store that sells the most. Buy-Low provides goods and services for Variety’s Boat for Hope in Kelowna and Vancouver, which gives children with needs a chance to enjoy an adventure on a flotilla of “pirate ships,” and for the charity’s Picnic in the Park.

“Fifty years ago, Buy-Low’s founders made a commitment to give back to the communities they serve, a philosophy we continue to enthusiastically embrace today,” says Corea.

“Variety has generously given us the opportunity to serve our mission through the excellent work they do. For both Variety and Buy-Low, supporting families is key. Variety is more than our partner in this mission – they are our friends and our family, and the events we participate in are what we do together as a family.”

For more information on Variety, visit: variety.bc.ca/how-we-help/organizations-helped

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Congratulations on 50 Years!

From

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Congratulations Buy-Low Foods on 50 Years of successful business from your friends at

OLD SKOOL TRUCKING LTD. Old Skool Trucking Ltd. has been a proud partner for over 30 years servicing the Buy-Low Foods team, proudly striving to deliver old school standards and values in customer and employee service.

Safety and Service are Our Mission.

Call us at 778-298-1170 or E-mail us at billing@oldskooltrucking.com

RADIUS TRANSPORT LTD. “THE DEPENDABLE FOOD CARRIER”

The Radius Group is privileged to provide our exceptional refrigerated services to Buy-Low Foods in the GVA for the past 20 years. We are all looking forward to another 50 years of continued growth and success together. Congratulations Buy-Low. Whether you have one case or a full trailer load we have you covered.

30 plus units serving the GVA daily. We are 100% HACCP compliant.

604-882-0010 • www.radiusvancouver.com

Engaging Employees When it comes to choosing a workplace, in a recent survey, team members at Buy-Low ranked “Working with great people/team” as the number one reason for their overall satisfaction with their job. That was followed by “Supportive management and inspiring leadership,” “Wage rates,” and “Flexibility of work hours.” “Being recognized/valued for performance” rounded out the top five attractions for employees.

Consequently, it’s not surprising that the company boasts so many long-term employees. Bregg himself celebrates his 30th anniversary with Buy-Low this year after being recruited from an auditing firm as an accountant, and adding responsibilities along the way. Corea, now in his 38th year, began by cleaning the offices at the original headquarters after school, and rose through the ranks with the company’s expansion.

To enable staff to deliver the level of service for which stores in the Buy-Low Foods umbrella are known, the company provides training programs in customer service, cashier, fresh department, meat-cutting apprenticeships, and retail management and leadership development.

“At our service awards last year, we celebrated several people’s 40th year,” notes Bregg.

As Bregg explains, there are opportunities for advancement at both the retail stores and the wholesale operational level, as well as in office and administration, for suitable candidates. Besides the extensive training programs, Buy-Low offers flexible schedules, industry-competitive wages, company-matched RRSP contributions, industry scholarships, a comfortable work environment, and opportunities for community involvement.

grocerybusiness.ca

But at the same time, the company is looking to hire young people to replenish the ranks of those approaching retirement.

“Buy-Low Foods and Nesters Market are looking for people who lead enthusiastically by example, create a fun environment and take a genuine interest in fellow employees; and who have excellent interpersonal skills, and provide leadership in delivering store operating standards and merchandising excellence,” says Bregg.

DESIGN + BUILD CUSTOMIZED MILLWORK PROJECT MANAGEMENT Congratulations to BUY-LOW FOODS on their 50th Anniversary 6 19

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RECO DECORATION GROUP INC. 604-273-2932 WWW.RECODECO.COM RECO@RECODECO.COM

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Engaging Employees (continued)

“We are definitely in a growth mode, and we’re constantly needing to attract and develop a new generation of leaders. The retail grocery industry is not necessarily viewed as a career choice the way it once was. But it can be,” Bregg explains. “I only have to look at my own experience and some of the young people who are coming up through our company today – 47 per cent are under the age of 30.

We’re working really hard to educate our people on the opportunities that are available in retail, and to reposition ourselves as a place where you really can grow a career.”

So far, so good. “Particularly of late, we’ve had some of our younger folks move up into middle and upper management roles, and demonstrate to people in their age group that there really are opportunities in this business, and particularly in Buy-Low and Associated Grocers,” says Bregg.

“We hire people who want to learn and improve,” adds Corea. “I encourage people to seek a career in the grocery business,” he urges. “After 38 years, I am still inspired to give it my very best every day. If you like people, this industry is for you.” grocerybusiness.ca

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CONGRATULATIONS ON 50 YEARS!

Congratulations 6 19

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50 Anniversary!

BUY-LOW on yourFOODS th

From your partners at Unilever

Star Marketing, a Leader in Specialty Food Distribution

Tel: 778-574-0778 • Email: info@starmarketingcanada.com Trade-mark owned or used under license by Unilever Canada, Toronto, Ontario M4W 3R2

5675 BuyLow50th 1/4MagAd

www.starmarketingcanada.com

Page: 1

Future Focus Building on Buy-Low Foods’ dramatic growth of the past 50 years, Bregg expects the next half century will be just as strong. “My goal, and the goal for the entire management team, is to continue to grow and expand into new markets, to enhance the services and supports that we need to facilitate the growth opportunities for ourselves and for our independent customers,” he says. This includes not only growth geographically, but also opportunities to source more specialty, unique items to help the wholesaler’s independent customers differentiate themselves in the marketplace.

At the time Corea started, there were only five corporate stores. “We were one of the first food discounters,” he says. “As the corporate and franchise stores grew, we added a warehouse, extended our décor, and became a full-service grocery store.” The entry of other discount grocers into the market “served as a huge wakeup call,” he says. “It forced us to innovate and brought us back to our core values.”

In the long run, Buy-Low’s reputation for integrity, and the family-owned approach that allows it to connect with consumers and communities, will sustain the company through the next five decades of growth – and beyond.

AMAZING FRESH SCENT. SAME POWERFUL CLEAN.

DESTROYS TOUGH HAIR CLOGS* IN MINUTES.

*Use as directed

CONGRATULATIONS ON 50 YEARS OF EXCELLENCE WISHING YOU CONTINUED SUCCESS FROM

TOTAL # OF EMPLOYEES GROCERY DIVISION: INDEPENDENTS SERVED THROUGH THE WHOLESALE GROCERY DIVISION

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from your friends at

Made with fresh roasted peanuts and a dash of salt.

No preservatives No added sugar No trans fat No hydrogenated fat No stabilizers No compromises

adamspeanutbutter.ca

©/® Smucker Foods of Canada Corp. or its affiliates.

International

The INNOVATORS THE BEST OF INTERNATIONAL RETAIL DESIGN

2016

By Maureen Atkinson Senior partner, research insights, J.C. Williams Group

This year, food has emerged as the real hero of innovation, with many new ways of serving the customer.

Certainly one of the defining themes around all the retail innovation in this article is the consumer experience.

The store has become so much more than just a place to buy products. It is a place to meet up with people, learn, be entertained and enjoy new tastes.

Another key theme for many of the food innovators is supporting the local, environmental and health concerns of customers. This is not only about featuring local producers or sometimes becoming the producer, but really reflecting and supporting the local community.

This can take the form of anything from serving local “street� food, to hiring students from the local cooking school, to making sure that food does not go to waste. The stores have purpose beyond just selling products.

Food also shows up in some really innovative places, like a vintage theatre or a historic farmhouse, thus enhancing the experience.

While not all of these themes can be reflected in an established supermarket, the ability to integrate experience and newness into the store are key elements to drawing consumers into your stores.

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63

International

Whole Foods Brooklyn, USA

Key Trend: Sustainability & Local Why is it innovative?

• Hyper-local with Brooklyn-centric and market-specific products.

•

A rooftop urban garden that produces 150 tons of produce annually.

•

Seating for 350 in the eating areas, including on the rooftop.

MAD Cooperativet Copenhagen, Denmark Key Trend: Healthy Convenience Why is it innovative?

• MAD Cooperativet (the Food Cooperative) is a contemporary C-store located in Copenhagen’s Grand Central train station.

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May | June 2016

•

he store’s focus is on offering a well-curated selection of fresh and T healthy meals-to-go for the thousands of people who travel through the station every day.

•

he store has a “vegetable butcher” and a “street kitchen” where T customers can clean produce for immediate consumption.

•

local TV show starring celebrity chefs is broadcast daily from the A store, immediately creating a theatre atmosphere while providing the store with broad exposure.

International

Platea

Madrid, Spain Key Trend: Experience Why is it innovative?

• T he building – formerly a five-storey cinema – houses 20 high-end food stands, a bistro, cocktail bar and specialty kitchen store.

•

grocerybusiness.ca

T he building also functions as an entertainment and event space. Platea is able to show sport events on its large screen, and host live theatre and concerts on its stage.

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65

International

Il Mercato del Duomo Autogrill Milan, Italy

Key Trend: Taste Experience Why is it innovative?

• A “Temple of Taste” with several floors dedicated to different food experiences.

For example, the first floor is a market with an Ovo Bar featuring a selection of egg varieties.

•

Mega Image Equilibrium Health & Wellness Bucharest, Romania Key Trend: Health & Wellness Why is it innovative?

• Mega Image (part of the Delhaize Group supermarket chain) has built a full supermarket-within-a-supermarket, dedicated to organic and sustainable health and wellness products.

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•

With a focus on education, a well-trained, knowledgeable staff is available to offer personalized service.

•

The customer service aspect extends to numerous free in-store workshops with nutritionists and medical specialists tailored to specific groups such as new mothers.

May | June 2016

T he Autogrill is designed as a multi-faceted store allowing customers to create their own food experiences. Whether it’s shopping for groceries, interacting with the pasta-making chefs or sipping wine while people-watching in the Bistro overlooking Milan’s main square, the Autogrill aims to create a delicious, sustainable and elegant food experience.

International

Markthal

Rotterdam, Netherlands Key Trend: Sustainability & Experience Why is it innovative?

• M ulti-use building with an apartment complex arched above a fresh food market and shops.

About J.C. Williams Group J.C. Williams Group is a leading full-service retail and marketing consulting firm providing clients with in-depth knowledge designed to enhance their retail operations. jcwg.com

grocerybusiness.ca

•

T he energy-efficient structure provides energy for a number of surrounding buildings.

•

S tate-of-the-art architecture creates a visually stunning shopping experience.

About Ebeltoft Group Ebeltoft Group is a global alliance of 23 consulting companies sharing an in-depth level of retail experience. Since 1990, Ebeltoft Group has advised retailers, as well as suppliers to the retail sector, on how to remain competitive by blending global retail expertise with each member’s local insight. ebeltoftgroup.com

About Retail Innovations 11th Edition Retail lnnovations 11 is Ebeltoft Group’s latest compilation of leading-edge retail innovation, highlighting individual ideas and the key themes that emerge from studying the whole. This year’s edition includes seven global innovation trends, and showcases 47 innovation cases from 26 countries.

To obtain a copy of this publication, visit: jcwg.com

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CANADIAN FEDERATION OF INDEPENDENT GROCERS GROCERY & SPECIALTY FOOD WEST Vancouver, B.C. – April 4-5, 2016

David Dasilva and Marc Lynch, ConAgra Foods Dave Powell, Powell’s Supermarket; and Steve Peers, Pinnacle Foods Canada

Mark Ehleben and Robert Graybill, FMS Solutions

Chris Powell, Tree of Life

Steve Fox, Nestlé, with Vicki and Jim Bexis, Sun Valley Supermarket Tom Shurrie, Acosta Brent Scowan, Acosta Sofia Thompson and Jeff Chiang, Kraft Heinz Canada

Giancarlo Trimarchi, Vince’s Market Ken Schley, Quality Foods; and Fred Fray, Cavendish Farms

Kevin Smith, Grocery Business; and Doug Lovsin, Freson Bros.

Bal Sekand, Steven Caviggia and Rachelle Broome, Mondelez International

Cheryl Smith (centre) with the Parmalat team

Raymond Ho and Samuel Chui, Van-Whole Produce

Shannon Forner and Joan McMurray, Valu-Plus Foods

Reza Baktiyari and Moe Eddine, Millennium Pacific

Tony Morello (fourth from left) and the Aurora Importing and Distributing team Robert Slykhuis and Ian Longley, Bizerba

Independents’ Day

The Costs of

Going Green How do grocers turn green into gold?

By Thomas A. Barlow

With the federal Liberals focusing on more sustainable solutions, we in the grocery business can stand proud of our efforts to date. The greening of grocery has been going on for a while, from consumers asking for more organic options, to reusable bags at the checkout. So it makes sense that grocers are looking for greener options when it comes to their store operations and technologies, especially if it means a savings to their bottom line. Easy wins, such as investing in in-store lighting solutions, for the most part, have been done. Now the heavy lifting begins.

Grocery retailers are Canada’s largest users of electricity. Canadian grocery stores consume approximately 9.9 billion kilowatt-hours of electricity each year – enough to power a city the size of Ottawa for one year. Of that, 30 to 50 per cent is used for refrigeration, with the balance consisting of lighting, heating, space cooling, baking and other uses. Interestingly, air conditioning accounts for a very small portion of a store’s annual energy bill.

According to the 2015 Canadian Federation of Independent Grocers Financial Survey by FMS, remodels drive store development –

grocerybusiness.ca

with more than 70 per cent of retailers conducting major remodels. Several of our members here at the Canadian Federation of Independent Grocers (CFIG) have invested in retrofitting their stores, energy audits and signing up for various programs that offer financial incentives and technical help for energy-efficiency projects.

But what happens when stores have done all the necessary retrofits and the savings are not materializing as promised? Last year, total expenses increased on average, driven by labour and benefit costs as well as utility costs, including water and electricity.

One of our members in Ontario, after investing over $1 million in store retrofits, hasn’t seen much in financial savings, and he’s not alone. The quick response is, “imagine what your bill would have been if you had not made the investment.” But why should grocers have to foot the bill for years of mismanagement by provincial governments? We know that grocers operate on low margins. Utility costs on average account for over 12 per cent of a retailer’s expenses, and are one of the fastest growing expense categories.

So, what can be done? Talk to your equipment suppliers. I recently made a presentation at a conference hosted by Emerson Climate Technologies. The feedback I consistently got was, “how do we get the retailers’ attention?” The point of this conference was to identify the needs of the end-users, and then work together to find solutions. Everyone recognized that it is not a one-size-fits-all solution; financing and financial models need to meet all retailers’ needs. However, this will happen only if we are talking to our providers. There’s an opportunity to keep the conversation going when it comes to greening grocers, while ensuring that benefits, both environmental and at the till, are met.

Let’s work together to turn green into gold.

Thomas A. Barlow is president and CEO of the Canadian Federation of Independent Grocers, which represents more than 4,000 independent grocery retailers across Canada.

Email: tbarlow@cfig.ca

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Independents’ Day

UPDATE:

THE FREEZE

ON CREDIT-CARD FEES

By Gary Sands

One of the major issues that the Small Business Matters Coalition (SBMC) took forward to all candidates in last year’s federal election was that of interchange swipe fees paid by retailers.

As the Competition Bureau of Canada pointed out just a few years ago, credit-card swipe fees paid by merchants (and invisible to consumers) amounted to between five and seven billion dollars annually. The Bureau also pointed out that such fees have a disproportionate impact on small and medium-sized businesses. The ever-spiralling cost of these fees, along with the higher fees associated with premium cards, provoked a backlash in the retailer merchant community.

The SBM Coalition – of which the Canadian Federation of Independent Grocers (CFIG) is a member, and which now represents some 100,000 businesses across Canada – has identified credit-card fees as our top priority.

The ongoing pressure applied by the Coalition and other associations, such as Retail Council of Canada and the Canadian Federation of Independent Business, resulted in the Harper government bringing forward a

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five-year freeze on credit-card fees, and a promise by both Visa and MasterCard to start implementing reductions no later than April 2015 in order to bring the rate paid by retailers to the credit card companies to 1.5 per cent. However, Nesbitt Burns has said that that level of rate cut would have “no positive financial impact.”

The Harper government also promised “annual verification by an independent third party to ensure compliance.” But with no word on who will be conducting the audit, CFIG has implemented a monthly verification process to track our members’ reductions in swipe fees. Our data showed that, after one year, neither MasterCard nor VISA had achieved the targeted level of 1.5 per cent.

As well, MasterCard had signed a one-off deal with Costco for a co-branded credit card. Since our tracking showed MasterCard lagging further behind Visa in achieving the promised rate reduction, did this special fee deal with Costco get thrown into the overall aggregate totals being reported by MasterCard? If so, it could be argued that Main Street is subsidizing a deal struck on

Bay Street. The Coalition has been raising these questions with the new federal government. A bill has been brought forward to review the entire issue, which, when it goes to Committee for review, will throw a spotlight on the payments file once again.

In the meantime, we are making progress. A few weeks ago, Visa informed CFIG of a further reduction in its grocery rate to 1.23 per cent. The Visa Infinite fee is being reduced to 1.42 per cent. One CFIG member happily informed me that it would result in savings to her store of over $40,000 that can now be used to reinvest in stores, hire new staff and support communities.

Visa has also been more engaged with the Coalition and CFIG in a constructive dialogue.

We applaud that approach and the company’s rate reduction for grocers. If we can make progress in a spirit of partnership, so much the better.

Gary Sands is vice-president of the Canadian Federation of Independent Grocers and chair of the Small Business Matters Coalition.

Financial Performance

COMMITTING TO COST REDUCTION

Adam Brown Partner

Chris Robertson Senior Manager

adbrown@deloitte.ca

chrisrobertson@deloitte.ca

Deloitte Financial Advisory Services

Grocers’ financial performance is under pressure from all sides.

Commodity prices are rising. The emergence of ready-to-go meals offered by convenience and specialty food stores is creating new competition; customer behaviours are more sophisticated. Omnichannel demands are growing. Legacy processes and structures continue to pose ongoing, costly challenges. And these, of course, are in addition to grocers’ notoriously thin margins and years of low growth.

This high-pressure reality is driving grocers to find new ways to reduce costs, improve efficiencies and optimize performance, all without compromising growth initiatives and disrupting consumers’ in-store experiences.

Since it is becoming more difficult to deliver cost savings through traditional opportunities, and new approaches are likely to bring added complexity, grocers will need to bring more rigour, discipline and structure to the table. Here’s an outline of how to set your course.

Set a solid plan and don’t underestimate preparation.

It’s vital to set clear cost-cutting targets and well-defined initiatives to achieve them. This should include using robust analysis to validate hypotheses on where to cut costs, and working with the store network and support functions to ensure savings are achievable within the timeline defined.

Commit talented resources to deliver and govern the program. Savings can be achieved as long as there is strong governance and a committed team in place to make it happen.

Cost reduction is an ongoing process, not a part-time job.

Execute with focus on defined initiatives, and track them to drive accountability. Grocers must ensure a clearly defined baseline is used to closely monitor the execution of their costreduction program once it has begun to realize anticipated savings well beyond the initial execution.

IT CAN BE DONE!

1.3 % grocery sector growth

In today’s intensely competitive, stubbornly low-growth environment, the complexity of legacy processes and structures will continue to present cost-savings opportunities for grocers. The good news is that these approaches don’t have to be overly complicated to get results and to keep costs from creeping back in.

from 2011-2015

Source: Stats Canada

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Congratulations!

CANADIAN GRAND PRIX

New Product Awards Finalists The Retail Council of Canada (RCC) has unveiled the finalists for the 23rd annual Canadian Grand Prix New Product Awards.

Along with food and non-food category winners, the Canadian Grand Prix will present five special awards at the June gala: the All-Canadian Award; Innovation and Originality Award; Healthy Innovation Award; Packaging Award; and Consumer Acceptance Award.

Winners will be announced June 1, 2016 at the Toronto Congress Centre as part of STORE 2016, Canada’s largest retail conference. rccgrandprix.ca FINICA _ ZERTO BRAND _ SMOKED FRESH MOZZARELLA CONCEPT 151221

FOOD A. LASSONDE INC. Oasis 70 Calories Oasis NutriSolution AGROPUR DAIRY COOPERATIVE OKA L’Artisan Smoke CANADA BREAD COMPANY, LIMITED Harvest Grain with Apple Homestyle Louis Francois Marcotte CANADA PURE Canada Pure Sparkling Water Beverage CAVENDISH FARMS FlavourCrisp CLOVER LEAF SEAFOODS Toppers

FINICA FOOD SPECIALTIES LTD. Zerto Smoked Fresh Mozzarella FRUITS D’OR INC. Patience Fruit & Co. Organic

Smoked

FRESH MOZZARELLA MOZZARELLA FRAIS

Fumé

250g Nutrition Facts Valeur nutritive

60% 20%

Serving Size 1 inch cube (30 g) Portion 1 pouce cube (30 g) Amount % Daily Value INGREDIENTS: PASTEURIZED MILK, SALT, Teneur % valeur quotidienne CALCIUM CHLORIDE, MICROBIAL ENZYME, BACTERIAL CULTURE, WOOD SMOKE Calories / Calories 100 Fat / Lipides 6 g 9 % INGREDIENTS : LAIT PASTEURISÉ, SEL, Saturated / saturés 3.5 g 19 % CHLORURE DE CALCIUM, ENZYME + Trans / trans 0.3 g MICROBIENNE, CULTURE BACTÉRIENNE, Cholesterol / Cholestérol 25 mg FUMÉE EN BOIS 4% Sodium / Sodium 105 mg KEEP REFRIGERATED 2% Carbohydrate / Glucides 7 g 1406 GARDER AU FROID 0% Fibre / Fibres 0 g Sugars / Sucres 0 g Protein / Protéines 5 g Vitamin A / Vitamine A 6% Vitamin C / Vitamine C 0% Calcium / Calcium 2% Iron / Fer 0% DISTRIBUTED BY FINICA FOOD SPECIALTIES LTD. MISSISSAUGA, ON L5T 2X9 finica.com

INGREDIENTS: PASTEURIZED MILK, SALT, CALCIUM CHLORIDE, MICROBIAL ENZYME, BACTERIAL CULTURE, WOOD SMOKE INGREDIENTS : LAIT PASTEURISÉ, SEL, CHLORURE DE CALCIUM, ENZYME MICROBIENNE, CULTURE BACTÉRIENNE, FUMÉE EN BOIS KEEP REFRIGERATED GARDER AU FROID

MARS CANADA INC. M&M’S MINIS Holiday 4-Pack

GAY LEA FOODS CO-OPERATIVE LTD. Nordica Smooth Cottage Cheese Ivanhoe Nothing But Cheese

NATURALLY HOMEGROWN FOODS LTD. Hardbite Chips

GRANNY’S POULTRY COOPERATIVE Slow Cooker Turkey Roast

OCEAN BRANDS Ocean’s Snackit Dips

HAIN CELESTIAL CANADA Yves Veggie Cuisine Kale & Root Vegetable Patties

OLYMEL Flamingo - Super Crunchy and Gluten Free Chicken Nuggets XOXO

6 28520 24508 6

Europe’s Best Greens and Grains

COCA-COLA LIMITED Dasani Sparkling CONAGRA FOODS CANADA INC. Marie Callender’s Orville Redenbacher’s Popcorn Chips

INDUSTRIE GASTRONOMIQUE CASCAJARES Turkey drumstick fully cooked

DARE FOODS LIMITED Breton Artisanal Whippet Bear Paws Dipped

INNERSEASONINGS INTERNATIONAL INC. Tunnel Bar-B-Q (TBQ) Sauces

DIRECT PLUS FOOD GROUP McSweeney’s Jerky

L’ANCÊTRE CHEESE FACTORY Le Boucané Bio, L’Ancêtre Organic Double Applewood Smoked Cheddar

EMMI CANADA Emmi Fondü All-In-One

LAITERIE CHALIFOUX Riviera Petit Pot Set-Style Yogourt

May | June 2016

MAPLE LODGE FARMS Maple Lodge Farms Naturally From the Farm Hickory Smoked Chicken Bacon Style

GARDEIN PROTEIN INTERNATIONAL FPO Gardein

HAPPY PLANET FOODS, INC. Happy Planet Nut Smoothies Happy Planet Grab & Go Fresh Soups

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LANTIC INC. Lantic Stevia Individual Sugar Envelopes-Natural & Zero Calories

ST-HUBERT Poutine Bites WESTON BAKERIES LIMITED Country Harvest Apple Bread

NON-FOOD CARLTON CARDS LTD. Party Poppers KRUGER PRODUCTS L.P. SpongeTowels Ultra Strong paper towel NESTLÉ PURINA PETCARE CANADA DentaLife Chews Tidy Cats LightWeight Litter S.C JOHNSON AND SON, LIMITED OFF! Familycare Bite and Itch Relief Pen Glade Large Jar Candle Ziploc brand Freezer Bags with Easy Open Tabs SMUCKER FOODS OF CANADA Milk Bone Dog Treats

All rights reserved. No part of this project may be reproduced in any form without written permission from CrunchMedia Branding + Communications Inc. All images have been reproduced with the knowledge and prior consent of the artists and designers concerned.

PARMALAT CANADA INC. Astro Athentikos Greek Yogourt President Feta PRAIRIE HARVEST CANADA LTD. Prairie Harvest Organic Coconut Blend Pasta SINGLE CUP COFFEE Skinnygirl Cocktail-Inspired Single Serve Tea Cups Torani Naturally Flavoured Single Serve Coffee Cups SMUCKER FOODS OF CANADA Robin Hood Quick Bread Gluten Free Banana

UNILEVER CANADA Dove Dry Spray

PRIVATE LABEL FOOD CANADIAN TIRE RETAIL FRANK Classic Medium Roast Coffee K-CUP FRANK Chips FRANK Chocolate Almonds FEDERATED CO-OPERATIVES LIMITED Co-op Gold Aioli Co-op Gold Whisky Caramel Sauce Co-op Gold PURE Wagyu Beef Burger Co-op Gold PURE Dark Chocolate Co-op Gold PURE Granola LONGO’S Indulgent Chocolate Mousse Cups

METRO BRANDS, G.P. IRRESISTIBLES BRAND: Life Smart Smoothie Olive Oil for Dipping Sauce, Marinade Dry Sausage Avalanche Ice cream Brownie in the Centre Artisan-Deep Dish Pie Les hors d’oeuvres Asparagus Les hors d’oeuvres Crab Cake La Pizza Potato Gratin Old Fashioned Potato Chips Cookies SOBEYS INC. Sensations by Compliments Extra Virgin Olive Oil Jamie Oliver by Compliments Cornbread-Topped Chili Con Carne Sensations Butter & Cheese Puff Pastry Biscuits WALMART CANADA Great Value Better for you Entrée Our Finest Ethnic Entrées Our Finest Thick Cut Chips Our Finest Soft Baked Cookies

PRIVATE LABEL NON-FOOD CANADIAN TIRE RETAIL Big Boss Insta Mop FRANK Shiwala Canvas Megan Table Lamp Canvas Henrik Chair Canvas Quinn Floor Lamp Canvas 16 pc Wild Rose Porcelain Dinnerware Set MONDOU O’select Dog Snacks Vetdiet Pill Covers O’select Washable Training Pads Vetdiet Treats - Tender delights WALMART CANADA Pure Balance Grain-Free Formula Dog Food

CANADIAN PRODUCE MARKETING ASSOCIATION TRADE SHOW AND CONFERENCE April 12-14, 2016 Calgary, Alberta

Dennis Christou, Del Monte Fresh

Brad Brownsey, Florida Tomato Committee

Jim Waites, Overwaitea; Bob DiPiazza, Sun Pacific

Mackenzie Keller, Peanut Bureau Laurie Gray, Brian Faulkner, BC Fresh

Meredith Irving, David Keedwell, Cavendish Produce

The colourful Chiquita booth

Breanne Khasigian and Jim Grabowski, Well-Pict Berries

Joan Wickham with the new Cara Cara Display Cases, Sunkist Growers

Ron Lemaire, CPMA; Larry McIntosh, Peak of the Market

Ron and Simrin Brar, Evergreen Herbs

Cathy Antinozzi, Greg Beehler, Advantage Sales & Marketing

Tim Gibson, Mimo Franzone, Longo Bros. Fruit Market Julia Smith, Kathy Stephenson and Prentice Dent, Pear Bureau Northwest

Spero Moukas, PECO Pallet Canada Inc.

Laurel Dobell, McCormick Canada; Dean Koch, Advantage Sales & Marketing

Mac Riggan, Devon Jell, Stewart Lang, Bill Dinham, Chelan Fresh Marketing Virginia Zimm, Simone Weber, Ontario Produce Marketing Assoc.

Stephen Cowan, Emily Murracas, Danny Mucci, Mucci Farms

Chris Cockle, Wonderful Company

May | June 2016

73

it figures

Digital

Double Take

29% of men agree that shopping for groceries online

gives them a more personalized experience, vs. 17% of women

Takeaway Knowing who’s roaming the e-aisles will give your store a competitive advantage and ability to feature the right product mix.

28% of women agree that

shopping for groceries online is a time saver, vs. 35% of men Takeaway Convenience should be the #1 priority, with easy-to-browse categories and a seamless and fast checkout process.

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May | June 2016

36% of Canadians research grocery products online before purchasing them in-store

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.

A L L S TAT S C O U RT E S Y: NIELSEN

Takeaway Successful grocers build online relationships by having an open dialogue, and know that it’s important to keep the conversations real and authentic.

23% of men

16%

of women

Use social media to help make grocery purchase decisions

61

%

of women think that shopping for groceries in real stores is more fun than online shopping, vs. 50% of men

Takeaway Building a brand has gone digital, and social media is a strong platform. Brands need to engage, listen and communicate. grocerybusiness.ca

Takeaway For consumers, a sense of discovery and adventure has to be part of the in-store experience.

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In Other Words

“ Discount is very responsive to promotion offers. Our promo was not as strong as it should have been.

We backed off too much, while our competitors ramped up.”

Galen G. Weston, executive chairman, Loblaw Companies Ltd., speaking with analysts regarding the grocery division’s soft Q1, 2016 results.

Perry’s Point of View Perry Caicco is taking time to study the various aspects of the food industry, and we are looking forward to having his column return soon.

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Refreshing NEWS FROM

As warm weather approaches, parents are increasingly in search of new, thirstquenching beverage options for kids that they can feel good about – at home, school or on the go.

Launching in June 2016 for a limited time, Kool-Aid Clear is a new line of fruit-flavoured water-based beverages with 50% less sugar than leading juice boxes1 and no artificial ingredients. A win for parents, with four bold, fruity flavours kids will love!

“Kool-Aid Clear will appeal to a new cohort of consumers who seek to balance kid-pleasing treats with a healthier lifestyle.”

Kevin Smith, Head of Beverages, Kraft Heinz Canada

68% of Canadians claim they do not drink beverages with artificial sweeteners.2

73% of Canadian consumers are concerned about the amount of sugar in the beverages they consume.2

Sources: 1 Nielsen, Strat Planner, Juices & Drinks Shelf Stable, $ Vol, L52 Weeks Period Ending February 6, 2016. Versus leading competitors representing 11% of the total market.

2

raft Heinz Internal Custom Research – Canadian Food & Beverage K Consumer Segmentation. Feb 2015.

67% of Canadians are concerned about the artificial colours in the beverages they drink.2

CANADA’S

#

1

Coffee Manufacturer

1

CONTINUES TO DRIVE GROWTH IN THE COFFEE AISLE!

With powerhouse brands, a robust innovation plan and a pulse on the consumer, Kraft Heinz Canada is committed to growing the category.

Kraft Heinz Canada is the #1 coffee manufacturer1 in Canada, and is more than twice the size of the next branded competitor2. Not only does Kraft Heinz Canada play in more formats than any other manufacturer, but it has

some of the most loved coffee brands in the country. Kraft Heinz Canada has the #1 or #2 brand in every coffee format, and brings the most incremental buyers3 to the category, all while serving the distinct needs of consumers.

NABOB #1 Single Serve coffee brand in Canada1 #1 Premium coffee brand in Canada1 2016 ITQI* Superior Taste Award winner for Nabob BOLD Lineup

MAXWELL HOUSE #1 Coffee Brand in Canada1 7 million4 cups of Maxwell House are consumed daily Only brand with products in all formats

1 2 3 4

Nielsen MarketTrack: NAT XNFLD GB +DR +MM - All Sales - L52 Wks l Period Ending 27FEB16_1 Branded Competitor: Manufacturers excluding Private Label.

Nielsen, Shopper Optimizer - Coffee, L52 weeks as of September 12, 2014.

Based on market, usage and demographic data.

*

The ITQI Superior Taste Award crowns products having met or exceeded an expert panel of judges’ expectations in terms of taste through blind sensory analysis and is an international stamp of recognition.

SETTING THE

22%

Coffee Landscape

16%

TOTAL KEURIG

Coffee continues to be one of the only segments that experiences sustained growth within the centre of store, outpacing sales in perimeter sections such as produce1. Despite the category generating dollar growth of 10% in 2015, consumers are not drinking more coffee than they did 15 years ago2. However the emergence of Single Serve brewing systems, such as TASSIMO and Keurig®, has sparked a shift in consumption as coffee drinkers look for greater beverage variety and convenience. In July, Kraft Heinz Canada will generate excitement in the Single Serve category through its Keurig® Compatible Pods* Platform launch.

TOTAL CONTROL LABEL

®

20%

43%

TOTAL OTHER

TOTAL KRAFT HEINZ

TOTAL Tassimo 35%

Kraft Heinz Canada has been a key player in driving growth for the single serve category. Kraft Heinz Canada’s TASSIMO system accounts for 35% market share3 and as a result of TASSIMO’s success, the Kraft Heinz Company’s own Nabob is the #1 Single Serve coffee brand4.

TOTAL Kraft Heinz Pods* 7% Total Single Serve household penetration has increased +195% in the last 5 years.6 Kraft Heinz Canada makes up 43% of the total Single Serve category6.

With the expertise gained from the TASSIMO business, the company now has its sights set to win on the Keurig® system, where it is poised to mirror the success it has achieved in other coffee formats.

Single Serve brewers have more variety and are convenient.7

Total Single Serve Household Penetration5 29.8

33.1

35.4

40

21.1 20

12.0 2011

*W orks with Keurig® K-Cup® and Keurig 2.0™ brewing systems. Not compatible with Keurig Vue™ coffee makers.

Keurig®, Keurig Vue™, Keurig 2.0™ and K-Cup® are trademarks of Keurig Green Mountain, Inc. and its related companies. Kraft Heinz Canada is not affiliated with Keurig Green Mountain, Inc. and its related companies.

2012

2013

2014

2015

Sources: 1 Nielsen MarketTrack GB+DR+MM, TL Coffee, L52 weeks ending Sept 26, 2015 2 Coffee Association of Canada, 2014 Canadian Coffee Drinking Trends, Tracking Report, Dig Insights, July 2014 3 Nielsen MarketTrack, National GB+DR+MM, On Demand Coffee, 2015.

4 Nielsen MarketTrack NAT XNFLD GB +DR +MM - All Sales - L52 Wks l Period Ending 27FEB16_1 5 Nielsen Homescan, National All Channel - Household Penetration, 2011 to 2015 PE September 26, 2015.

6 NPD, Small Appliances Category, 2015 7 Coffee Association of Canada, 2015 Canadian Coffee Drinking Trends, Tracking Report, Dig Insight

TASSIMO TASSIMO is one of Canada’s leading Single Serve brewing systems.

With 10 different brands to choose from and a vast assortment of beverage varieties, TASSIMO is perfect for all occasions.

IMPACTFUL

Innovation

The Launch: 8 New SKUs, 6 New Merchandisers In July 2016, Kraft Heinz Canada will launch eight innovations into the Pods* category. Leveraging the #1 Coffee Brand and the #1 Single Serve Brand, Maxwell House1 and NABOB2, respectively, Kraft Heinz Canada will extend its most successful flavours and roasts in TASSIMO and R&G to the variety-seeking Keurig® owner.

COUNT

COUNT

COUNT

As our Roastmaster’s original coffee, over 115 years of coffee expertise goes into his perfectly balanced medium roast.

12

12

12

12

COUNT

An authentic rich and Full City Dark roast, this NABOB BOLD blend explodes with smoky, velvety smooth, full-bodied flavour.

30

30

COUNT

COUNT

An aromatic treat, this medium-roast coffee is complemented by rich French vanilla flavours.

A classic, medium-roast, full-bodied coffee ideal for morning, evening or anytime in between.

30

30

COUNT

COUNT

A medium-roast coffee with a full-bodied and balanced flavour.

For an unmatched aromatic finish, brew a cup of this bright, citrusy medium roast.

An authentic rich and Full City Dark roast, this NABOB BOLD blend explodes with smoky, velvety smooth, full-bodied flavour.

A beacon of light for dark-roast lovers.

THE ENVIRONMENTAL ADVANTAGE

Nielsen, MarketTrack, TL Coffee, Dollar Sales, 2015 Nielsen, MarketTrack, TL Coffee, Item Ranking, 2015 *W orks with Keurig® K-Cup® and Keurig 2.0™ brewing systems. Not compatible with Keurig Vue™ coffee makers.

Keurig®, Keurig Vue™, Keurig 2.0™ and K-Cup® are trademarks of Keurig Green Mountain, Inc. and its related companies. Kraft Heinz Canada is not affiliated with Keurig Green Mountain, Inc. and its related companies.

1 2

Kraft Heinz Canada Pods* will have patented EcoCup™ technology. With three quick steps, consumers can now separate their Kraft Heinz Canada Pods* and recycle the outer cups where #6 plastic is accepted. Check with your local municipality today.

New

NEWS FOR 2016

continues to win in Single Serve by delivering the brands consumers love, in the varieties they want.

MAXWELL HOUSE IS THE #1 COFFEE BRAND IN CANADA*

NABOB IS THE #1 SINGLE SERVE BRAND IN CANADA* *Nielsen MarketTrack: NAT XNFLD GB +DR +MM - All Sales - L52 Wks l Period Ending 27FEB16_1