January/February 2017

January / February 2017 Vol 7 | No 1 $9.95

METRO’S

CARMEN FORTINO Trends with Traction

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Great Brands of Britain

Golden Pencil Honourees

2016 THIS IS THE YEAR

THAT WAS

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January | February 2017

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Grocery Business January | February, 2017 Volume 7, Number 1

contents

Metro’s Liberty Village, Toronto store

DEPARTMENTS

37

9

Front End

Open Mike

“City slickers” cater to downtown customers

19

Perspective

Walmart’s new standard of trust

Making It Hanes Hummus

41 6

January | February 2017

Launch It, List It

62

It Figures

People & News

17

54

60

New & now discoveries

A need for nutrition

68

In Other Words

Consumers embrace an expanding food landscape

January / February 2017 Vol 7 | No 1 $9.95

ON THE COVER Ontario’s 20 Metro Carmen Fortino

METRO’S

CARMEN FORTINO Trends with Traction

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Great Brands of Britain

Golden Pencil Honourees

64

37 28

FEATURES 27

Mergers & Acquisitions

31

SIAL Paris Recap

37

ave-On-Foods Rocks S Winnipeg

41

Food From Great Britain

53

Spring Cleaning

57

Hitting the Sweet Spot

59

Le Grand Fromage

Four key trends for 2017

Making the most of seasonal peaks

64

Vino With Your Veggies

67

The Millennial Shopper

PHOTO GALLERIES

S 17 D N 20 N O I T E C TRA TWR ITH 28 Flavour Forecast 29 Food Forecast 30 Tech Trends

4 This is the Year That Was 34 Golden Pencil Awards

Sweet but healthy indulgence

Tips from Loblaw’s cheese guru

COVER PHOTO: JOSH RAINHARD

28 January | February 2017

7

TUESDAY MAY 9 to THURSDAY MAY 11 convention.cpma.ca

2017

CANADA’S LARGEST EVENT DEDICATED TO THE FRUIT AND VEGETABLE INDUSTRY

TORONTO 2017

Front End

The very first Costco Business Centre is being built in Scarborough, Ont. Pictured at the December, 2016, groundbreaking are (l-r): Diane Brisebois, president and CEO, Retail Council of Canada; Janet De Silva, president and CEO, Toronto Region Board of Trade; Andrée Brien, senior vicepresident and senior general merchandise manager, Costco Wholesale Canada; Marc-André Bally, vice-president, Business Centre, Costco Wholesale Canada; and James Dalton, general manager, Costco Wholesale Business Centre.

Transitions Following McKesson Corporation’s acquisition of Rexall Health, Domenic Pilla has been appointed CEO of McKesson Canada, and Paula Keays has been named president.

Pilla is a former president and CEO of Shoppers Drug Mart, and Keays most recently was senior vice-president, pharmaceutical distribution and operations, for McKesson Canada.

The Hershey Company has appointed Michele Buck president and CEO, effective March 1, 2017. Buck is currently executive vicepresident and chief operating officer, and will succeed John P. Bilbrey, who is retiring.

Labatt Breweries of Canada has promoted Kyle Norrington to the newly created position of vicepresident marketing, global

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brands. Most recently, Norrington was vice-president, marketing, for Canada. He will be replaced in that role by Todd Allen, previously vice-president of global marketing for Stella Artois.

Blair Ruelens has retired from the position of vicepresident of customer development, PepsiCo Foods Canada. Replacing Ruelens is Cara Keating, who most recently was Ontario Area vice-president.

The next chapter of Ruelens’ career involves working with McMaster University and Humber College to develop future sales leaders.

Bill McEwan has joined the board of directors of Aimia Inc., a marketing and loyalty analytics company. McEwan is a former president and CEO of Sobeys Inc.

Dave Pullar is the new CEO of Cadcan Marketing & Sales Inc. Pullar’s industry experience includes senior roles at Sobeys and Safeway.

Beena Goldenberg, CEO of Hain Celestial’s Canadian operation, has been appointed CEO of Cultivate Ventures, Hain’s new venturing arm.

Robert Sartor, a former financial executive with the Oshawa Group and Kraft General Foods Canada, has been named president and CEO of the Calgary Airport Authority. Previously, Sartor was CEO of Big Rock Brewery.

January | February 2017

9

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May 23–25, 2017 Chicago, IL USA

Front End

Ontario Produce Marketing Association Recognizes Achievement On November 11, 2016, the Ontario Produce Marketing Association hosted its 25th Anniversary Gala and Awards Dinner. The event was attended by close to 600 guests, representing all aspects of the industry – from growers through to retailers.

The OPMA Fresh Award, for industry stars under the age of 40, was presented to Nick VanBerlo of Berlo’s Best (pictured, left), by Frank Bondi of Sobeys.

The OPMA Outstanding Achievement Award was presented to Farm Boy for its contribution to the produce industry through ongoing efforts to improve the quality and the distribution of fruits and vegetables in Ontario.

Accepting the award from Chris Streef, Streef Produce, on behalf of Farm Boy, was its head buyer on the Ontario Food Terminal, Jorge Miranda (pictured, right).

The OPMA Cory Clack-Streef Produce Person of the Year was presented to Jason Verkaik, president of Carron Farms, by Fallon Streef. Verkaik won for his efforts to improve the quality, growing environment, distribution and consumption of fruits and vegetables marketed within or outside the province of Ontario through innovation, cooperation and hard work.

January | February 2017 Volume 7, Number 1

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 Joanna Gibbons, Paul Hamam, Dave Lank, Michael Marinangeli, Tricia Ryan, John F.T. Scott, Maulik Shah, Linda Winick

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

The OPMA Lifetime Achievement Award was presented to Seymour Weinstein of Canadian Fruit & Produce Co. Ltd. (retired). An instrumental member of one of the first wholesalers at the Ontario Food Terminal, Weinstein’s family-run business continues to thrive today, from its humble beginnings selling produce on Colborne Street before the Terminal even existed.

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Subscription changes & updates or general inquiries: info@grocerybusiness.ca

David Wilkes, Retail Council of Canada

Grocery Business Advisory Council 2017

Bill Ivany, Tree of Life Canada

Shaun McKenna, Acosta Sales & Marketing Thomas A. Barlow, Canadian Federation of Independent Grocers Perry Caicco (retired, CIBC) Jim Slomka, Clorox Canada

Mary Dalimonte, Sobeys Cori Bonina, Stong’s Markets

Denis Gendron, United Grocers Inc.

@grocerybusiness Publications Mail Agreement No. PM42211029 ISSN 1927-243X Mailing Address Grocery Business Media 390 Queen’s Quay W., PO Box 40085 Toronto, ON M5V 3A6

© Copyright 2017. All rights reserved.

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

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Mike Longo, Longo Brothers Fruit Markets Michael Marinangeli, MIDEB Consulting Inc. Darrell Jones, Overwaitea Food Group Cheryl Smith, Parmalat Canada

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January | February 2017

11

Front End

2016 Memorable Moments

ON LOCATION

Way to go, Michelle!

November 21, 2016: Michelle Scott, executive director of The Grocery Foundation, scored her second ever hole-in-one while on vacation in Palm Desert, Calif. Using a pitching wedge on the third hole, she drove the ball 103 yards “on the fly,” a rare achievement in golf.

Congratulations, Michelle!

A warm welcome November 14, 2016: Braving the 7 a.m. cold, Clorox Canada’s general manager Mike Pilato (left) and John Marley, sales director, ensured they were on hand to provide a warm welcome to staff from recently acquired Renew Life.

More than 30 Renew Life employees relocated to Clorox’s Brampton, Ont., office that day.

Walter Snow, retired, Tetley Tea (pictured, top), and Mike Marinangeli, of Mideb Consulting, took a break from their holidays in New Zealand and Italy, respectively, to catch up on their Grocery Business reading.

In Memoriam Wayne Robertson Born in Brantford, Ont., Wayne Robertson spent more than 40 years in the grocery industry, starting as a grocery clerk and progressing through senior roles to become director of grocery merchandising at Miracle Food Mart. Robertson stayed with the organization after it was acquired by A&P, retiring in 2002.

Recalling his colleague of many years, Mike Marinangeli, of MIDEB Consulting, said: “Wayne was well respected and highly regarded by his peers and the supplier community at large.”

12

January | February 2017

Jim Slomka, sales director, Clorox Canada, remembers Robertson as someone who had a profound influence on his career: “We worked closely together for 20 years.

Wayne had the highest level of integrity and a real passion for the business while understanding the importance of creating a win-win relationship. He always did what he said he was going to do, and inspired a generation of sales reps to be fully involved and fully accountable.”

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Open Mike

“City slickers” cater to downtown customers

By Michael Marinangeli

Every few months, some colleagues and I spend a day visiting grocery stores throughout Toronto and suburbs. Sometimes, we check out what is happening in ethnic and discount stores, to draw comparisons. Other times, we visit the latest new conventional stores with all the bells and whistles. Recently, we spent the day in downtown Toronto investigating how today’s major retailers are catering to the condo boom and the city’s changing demographics.

Toronto and other major cities in Canada are experiencing business and population growth, as well as employment gains at rates that outpace the surrounding suburbs. Driving this explosive growth are the Echo Boomers – the children of the Baby Boomers – who are buying homes or condos in the city, opting for:

• a shorter commute; • proximity to amenities, workplace and transit; • higher real-estate prices and smaller properties vs. the suburbs.

Our major grocers have been quick to capitalize on these changing demographics, and have spun off smaller and revamped versions of their traditional formats that cater to this market segment. Twenty years ago, this wasn’t even on their radar. Most new stores and formats were then focused solely on the suburbs, where there was more land to accommodate a bigger footprint.

We visited the following stores: The Market by Longo’s; Loblaws at Maple Leaf Gardens; Independent City Market; Metro Liberty Village; Sobeys Urban Fresh; and Longo’s Maple Leaf Square.

I admire how these retailers have adapted their formats to capitalize on this explosive market segment. The Market by Longo’s, Independent City Market and Sobeys Urban Fresh are a smaller grocerybusiness.ca

footprint of their full-size conventional-store format. The emphasis is on service, convenience, fresh and prepared foods.

The Loblaws at Maple Leaf Gardens, Longo’s Maple Leaf Square and Metro Liberty Village locations are full-size conventional stores that carry the best attributes and offerings of their banners. I was amazed at the full shopping carts at the Loblaws store, where customers were undeterred by the inconvenience of underground parking and traffic congestion. The Longo’s Maple Leaf Square customer count rises like a tsunami at lunch and dinner, when office employees and condo dwellers rush in to get their fill of prepared foods at numerous stations throughout the store. Metro’s Liberty Village is a model that can be expanded to other locations throughout the city. The day we visited, the conditions were excellent, and we found the staff fully engaged and eager to serve.

Big or small, all of these retailers have a banner that effectively services the needs and wants of the downtown shopper. Other notables include Urban Fare by Overwaitea in Vancouver, and Metro’s Les 5 Saisons in Montreal. I foresee a steady growth in these types of stores. They are insulated from the aggressive discount formats and superstores in the suburbs, and don’t rely heavily on price to draw traffic.

The rents are high, but so are the margins. Retailers and their customers both win.

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.

January | February 2017

17

2017

â€

Perspective

Walmart’s new standard of trust

By John F.T. Scott

As 2016 drew to a close, much of the discussion in the industry focused on the issues confronting Sobeys, the continued upward march of discount, the increasingly oppressive trade spend and the potential for a Canadian entry of European entities such as Lidl.

Almost lost in the rhetoric was the November statement by Walmart CEO Doug McMillon that the company considers “trust” to now be a point of competitive differentiation.

A few months ago, I wrote a column on the issues pertaining to social licence, and opined that each was becoming more important to the process of procurement. Indeed, Walmart has been in the forefront of most of them by publicly defining acceptable practice in each area.

But now the retailer has combined issues of ethics, provenance, health and sustainability into a bold statement of exactly what it stands for. In doing so, Walmart is appealing to a sense of trust that the values held by consumers are identical to those of the company.

What was remarkable about McMillon’s statement was that it didn’t discuss volume, performance or returns – only that, henceforth, Walmart would reflect the values of its consumer, and therefore, gain sustained trust.

When you reflect on this new competitive position, a few things become obvious. First, it is totally in keeping with this society of disintermediation and transparency; a number of social experts have suggested that the new consumer needs to feel “in sync” with both merchandise and vendors. But I think it’s only the fact that Walmart has been bold enough to make a statement that renders it significant.

I don’t mean that it’s not valid – in fact, I couldn’t agree more with it.

The retail grocery sector is rich in stories of how a company’s values, reflecting those of its consumer, have driven success.

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The best example is Whole Foods, which has parlayed the cohort of consumers dedicated to organic and natural food into a virtual community. Vancouver Island boasts two companies that have secured the trust of the Islanders – Quality Foods and Country Grocer. Likewise, so have Coleman Foods in Newfoundland, and Longo’s in Ontario.

In these examples, the concept of trust was nurtured on the values of the entrepreneurial founders. It’s a terrific competitive advantage, as long as the principles are embraced, honed and maintained.

Massive Walmart has obviously prepared internally to ensure the implementation and execution of every aspect of this initiative.

The cautionary tale is that the road is littered with retailers who either forgot the founding principles of their relationship with the consumer, or were acquired by companies who ignored the fundamentals of success in a drive for financial efficiencies. A loss of consumer trust is a difficult challenge to overcome.

By embracing this new societal standard of trust, Walmart has created an advantage for itself. Few other retailers have the unique processes and dedicated supply chain needed to compete effectively in this space. This new Walmart positioning is a sensible and bold initiative that will challenge everyone in the sector.

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.

January | February 2017

19

CARMEN FORTINO T H E

B U I L D E R

By Sally Praskey and Karen James

MY MENTOR “My Dad, Luciano, was my most important mentor. My parents immigrated to Canada in 1953 from Calabria in southern Italy. I like to say my Dad had an elementary school education but he had his PhD in life, so he had a lot of great advice for me as I was growing up.”

20

January | February 2017

Carmen Fortino considers himself “a builder” – of people, stores, and even precision metal parts in an earlier vocation.

After serving as a machinist apprentice while attending university, Fortino answered the call – literally – from John Fortino, a founder of Hamilton, Ont.-based Fortino’s supermarkets, and first cousin of Carmen’s father, Luciano, to come and work with him.

PHOTOS: JOSH RAINHARD

“

It’s important (for leaders) to have the ability to influence, because people will support what they help create.

”

Recalling those early days, Fortino says that “I grew to really like the grocery industry, especially the people part; the employees, the suppliers you build relationships with and, of course, your own customers.”

Fortino joined Metro Ontario as executive vice-president and Ontario division head in 2014, and is working to build the company’s fleet of Ontario stores into destinations where consumers – whether at discount Food Basics locations or the more service-oriented conventional stores – consistently find good value.

Grocery Business met with Fortino at Metro’s offices in the west end of Toronto to discuss the opportunities and challenges he sees in a business in which he maintains “it’s impossible to be bored.”

What was your career path after joining Fortino’s?

Fortino’s was growing and eventually opened stores in Burlington and Brampton [Ontario], so there was a need for a warehouse, and I became responsible for wholesale services. In 1988, we sold the business to Loblaw. I worked in both the Fortino’s and Zehrs divisions of Loblaw and when I left in 2007, I was running Loblaw’s Ontario operations.

After Loblaw, I got an offer to manage a health-food company, which eventually led to me joining GNC, where I was responsible for business development and running the back end of their operations.

Then a search firm asked if I’d be interested in going back into food retail, in Ontario. I met with Eric La Flèche [president and CEO of Metro Inc.], and our first meeting was supposed to last an hour but we talked for four hours. He introduced me to his vision and the customer promise that we live by here. I told him that if these promises were true, I could add value, but if not, I wouldn’t be able to stay because it would go against my values.

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After several more meetings, I agreed to come back to the food business with Metro Ontario. There’s lots of opportunity here; Metro is a very young brand with just over 10 years in the Ontario marketplace and is still digesting the A&P acquisition.

I’ve learned in the last two and half years that (the Metro) people are very committed to making the business better.

There’s a lot of transparency, and people can be real with each other. At the core of the opportunity is making sure you have great team players who understand where they need to go.

And there’s a focus on the customer, not just in the store but as part of every conversation. This is what really drives the business forward. We know we’re on the right track with the customer when the store becomes “My Metro,” as we say on the conventional side.

January | February 2017

21

Congratulations Carmen Fortino on being awarded the

Pentola D’Oro

BRAVO CARMEN! ON BEING

A RECIPIENT OF THE

PENTOL A D’ORO AWARD

Metro’s Liberty Village store in Toronto is illustrative of many innovations that Fortino and his team have championed in Ontario.

Customers seem to want a conventional-store shopping experience, but with discount pricing. How do you reconcile that?

That’s the conundrum. I don’t think that the two are possible today but there’s probably room to close the gap and create more value for the customer.

The whole emphasis on store efficiency, productivity and simplification is to create a service component that customers recognize and will give you credit for. They will be willing to pay a bit extra for that experience.

In addition to service, through our loyalty program, we are able to filter and curate the mix of products in our stores, which simplifies the shop for our customers.

Obviously, the conventional store is under some pressure but we feel that a vibrant conventional business will remain, and we certainly want to be players in that area.

What’s driving the growth of the discount channel?

At Food Basics, the product assortment has evolved and is appealing to more and more customers. When customers can buy their basics quicker and cheaper and still get high quality, that’s a pretty good motivator for consumers to shop your store. And they’re voting for it in spades. Just look at the market-share numbers in Ontario over the last 10 years and you’ll see it.

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And it’s not only an Ontario phenomenon; because people are living paycheque to paycheque, debt loads are at an all-time high, and so people are looking for good value.

How did your career in health-focused retail help Metro grow in that area?

What I learned through those experiences is that health-conscious consumers are extremely knowledgeable, and very focused because each person’s health is unique to them. A friend of mine put it this way: “Food is the first line of therapy if you want to achieve good health.”

At Metro, the health-conscious consumer is a big focus of ours, so we’ve expanded our product offering as a way to differentiate ourselves. If you go to our Liberty Village location [in Toronto], for example, you’ll see a store-within-a-store stocked with Nature’s Signature, which are professional-grade supplements. And more importantly, staff that is extremely knowledgeable about products and health. The average talk time within that area is 10-15 minutes.

Health-conscious consumers are looking for confidence and trust.

That’s what we try to deliver, and it’s working.

January | February 2017

23

INDUSTRY ICON

JOHN FORTINO “When John would go into a supermarket, it would take him four hours to get out of there because everybody would want to talk to him. He was genuinely Where does ethnic fit in?

Ethnic is a real challenge; in Ontario you have some powerful ethnic players. We try to price competitively, which is a constant learning exercise, and I think that every year we get a little bit better.

compassionate and 100 per cent community. The ‘supermarket with a heart’ does apply.”

What are the industry’s greatest challenges? a) Attracting food-passionate people into our industry. b) Communicating with customers on their terms in this quickly evolving information age. c) Driving costs lower in an essentially fixed-cost business.

How do you define leadership?

A true leader inspires and has a clear vision. I’m not a big believer in perfection; I like to test and try things. Sometimes they go your way and sometimes they don’t. You don’t want to make the same mistake too often, but I think life is about putting one foot in front of the other, and I think business is a lot that way, too.

“

There is no finish line; that’s the beauty of our business. grocerybusiness.ca

”

Carmen Fortino received the 2016 Pentola d’Oro award, presented by The Italian Chamber of Commerce of Ontario (ICCO), in recognition of excellence in support of Italian food and beverage products. Here, Fortino receives the prestigious award from Patrick Pelliccione, representing ICCO.

January | February 2017

25

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Mergers & Acquisitions Four Key Trends for 2017

By Joanna Gibbons, Paul Hamam and Maulik Shah

Canada’s food and beverage industry experienced strong merger and acquisition (M&A) activity in 2016, especially in the bakery, craft brewing, seafood and natural/organic sectors.

We believe four key factors will continue to motivate M&A activity across the industry in 2017. Understanding these trends can help ensure owners and executives are ready to seize opportunities as they arise.

1. Succession and Market Opportunism The Canadian Federation of Independent Business estimates that by 2022, as a generation of owners retire, approximately $1 trillion in small-business assets will change hands. While some owners will pass control to family members or management teams, many will choose to exit by selling their company in order to capitalize on its strong business valuations.

2. The Need for Scale Canada’s food retail market is highly consolidated among a handful of very large players. This makes it challenging for small and mid-sized companies to make significant inroads into national and, eventually, international markets. In response, many organizations are combining operations to achieve scale. This M&A activity is enabling them to build national distribution networks, broaden their customer base, improve their negotiation power and grow to the size they need to, in order to expand across different geographies.

snack innovator EPIC Provisions, and U.S.-based White Wave Foods’ purchase of Vancouver’s Vega, a maker of plant-based natural health and performance nutrition products, are emblematic of this trend.

4. Portfolio Diversification and Rationalization Facing a mature Canadian market and changing consumer trends, food and beverage companies are continually refocusing their strategic direction. Many large companies are diversifying product portfolios by acquiring smaller businesses and proven brands, while pursuing deals that open up new categories and geographies.

At the same time, they are rationalizing existing portfolios and operations, selling off non-core assets and brands or closing nonproductive plants. Saputo, whose foreign acquisitions have been key to its growth, recently announced plans to close plants in Eastern and Atlantic Canada. Clearwater’s acquisition of UK-based Macduff Shellfish exemplifies how Canadian players are pursuing growth through international M&As. These four key trends are poised to continue to drive M&S activity across the North American food and beverage sector in 2017. Do they create opportunities for you and your company? The answers will help you and your management team chart the path forward for your company.

3. Product Innovation and Diversification Today’s socially minded, health-conscious, yet time-starved, consumers are seeking more natural, organic and local products, as well as more functional and convenient foods.

Smaller and mid-sized food businesses are often faster to market with innovative products that meet these changing preferences. And larger companies, rather than innovating new products themselves, are opting to buy these smaller companies and their proven “ontrend” product portfolios. General Mills’ acquisition of upmarket meat

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Joanna Gibbons Managing Director with Deloitte Corporate Finance Inc. joannagibbons@deloitte.ca

Paul Hamam Executive Director with Deloitte Corporate Finance Inc. phamam@deloitte.ca

Maulik Shah Senior Manager with Deloitte Canada maulishah@deloitte.ca

January | February 2017

27

7 S 1 0 2 D N N O I T E C A R R TWITH T RTRENDS U O V FLA

McCORMICK’S FLAVOUR FORECAST:

THE SPICE IS RIGHT! RISE & SHINE TO GLOBAL TASTES

PLANCHA: FLAT-OUT GRILLING

EGG YOLKS: THE SUNNY SIDE OF FLAVOUR

SWEET ON PEPPER: ENTER THE NEW SWEET HEAT

Breakfast options – with big, global flavours – are being sought after by a generation of flavour adventurists. Look for breakfast hash to become a morning staple.

Hailing from Spain and Mexico, the plancha (a thick, flat slab of cast iron) creates dishes with a smoky sear and flavourful crust.

Both attributes are currently popular with consumers.

Chefs are pairing eggs – whether poached, fried or cured – with a range of spices, herbs and sauces for lunch and dinner. Eggs also provide the perfect on-thego snack: high in protein and vital nutrients, but low on carbs.

With an up-front bite and lingering sensation, peppercorns are finally capturing the spotlight.

Their cedar and citrus notes pair perfectly with up-and-coming naturally sweet ingredients like dates and dragon fruit.

SPICY SWEET HEAT

Y

FOODTRENDS WITH TRACTION

By Tricia Ryan

At George Brown College’s Food Innovation and Research Studio (FIRSt) in Toronto, we monitor trends while guiding the entrepreneurial spirit that brings to market the next hot innovations in food and beverage.

So what’s resonating with consumers now? Flavour diversity, convenience and indulgence are gaining popularity.

Butter usage is on the rise, and there is a shift back to fuller, richer foods influenced by more conscious consumers who are looking for natural ingredients in their diet.

As the Millennial cohort continues to grow, we are seeing these families stockpile pantry staples and snacks. Both the cooking and consumption habits of grazing have kept Canadians engaged with the centre of the store. Keeping a household well-fed means having starch staples on hand for regular meals, as well as snacks that can be carried throughout the day.

Increasing

Indulgence

Fat is fine

Cooking is cool

Tricia Ryan Director, Food Innovation & Research Studio (FIRSt) George Brown College

While health is the prime driver, consumers continue to look for guilt-free indulgence, such as high-end chocolate and quick-hit comfort foods wherever they can find it.

Diversity drives purchase behaviour At retail, this has also been noted as a shift back to a centre-of-store focus.

The growth of South Asian consumer demographic has had an impact on the stock-up of pantry staples such as rice, sauces and spices.

Driven by Canadians’ taste for new flavour experiences, Filipino, Asian, African and Caribbean inspired cuisines are popular on restaurant menus and with home cooks.

THE

CUTTING EDGE Vegetable butchers are getting pride-of-place in higher-end grocery stores, reflecting the growing dominance of veggies on consumers’ plates. grocerybusiness.ca

Pasta still inspires passion but the latest ones are made from veggies and alternative grains like quinoa, lentils and chickpeas.

The on-the-go trend is gaining momentum: look for swiggable soups and meals-in-a-bowl to be sales drivers.

January | February 2017

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7 S 1 0 2 D N N O I T E C A R R TWITH T ENDS R T H TEC

The Disruptors

By Sally Praskey While retailers have successfully adapted to the lightning pace at which consumer food preferences have evolved in recent years, technology has actually driven the most seismic changes in the food industry.

Grocery Business explores two of the most recent and impactful disruptors.

Vendors stage an end run around retailers When Procter & Gamble launched Tide Wash Club last summer, it joined a growing number of CPG companies selling direct to consumers, a trend known as disintermediation. P&G’s online subscription service for its Tide Pods in the U.S. bypasses traditional retailers, offering free shipping to customers.

A recent report from Montreal-based e-commerce agency Absolunet identifies disintermediation as one of the “Top 10 eCommerce Trends that will Impact Retail in 2017.”

“Millennials want to deal directly with the brands, so it’s only natural that the relationship between end users and brands is becoming less circuitous,” says the report.

“These same brands and manufacturers will pull out all the stops to make the sale with

the end user (direct-to-consumer, or D2C), to the detriment of their traditional distribution channels, the distributors and merchants.”

In one version of direct-to-consumer, Toronto-based same-day grocery delivery service Urbery partnered with Unilever last fall in an on-demand campaign for Ben & Jerry’s Ice Cream. The initiative used an automated chatbot to converse with the customer, in this case via Facebook Messenger.

Engaging with customers directly through chatbots is often referred to as “conversational commerce,” a term coined by Uber’s Chris Messina.

In the Urbery/Unilever campaign, the chatbot verified the customer’s location, informed him/her of the available flavours, and offered instant delivery. Customers

purchased at an integrated checkout page, and could track their orders in real time on their smartphones.

“Direct-to-consumer purchasing is one of the leading trends in the grocery space,” said Urbery founder Mudit Rawat. “As online shopping evolves in the marketplace, customers expect short wait times, and brands are exceedingly interested in creating an eco-system that sells and delivers product directly to their customers.”

Unilever Canada was enthusiastic about the campaign and its use of chatbots to communicate with customers. “We are on a euphoric mission to reach our fans in unique ways,” said Jessica Armstrong, the company’s director, digital-eCommerce & Omni-Channel.

Amazon Go: No cashiers required

PHOTO: AMAZON.COM

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January | February 2017

In what could be a game changer for the industry, Amazon has introduced its first physical grocery store, and it’s lacking one thing that is bound to please busy shoppers: checkout lines.

Seattle-based Amazon Go uses sensors to detect what shoppers have taken from the store shelf, and, unless the item is put back, automatically bills their purchases to their Amazon Prime account.

Customers enter the store using their free Amazon Go app, pick up and bag the products they want,

and just Go!—without having to use a checkout or interact with store staff.

Besides grocery staples, the 1,800-square-foot store offers ready-to-eat breakfasts, lunches, and dinners as well as meal kits, prepared fresh by on-site chefs.

For traditional retailers struggling to find ways to reduce staffing costs without compromising service and quality, this model is a major game changer.

SIAL PARIS:

An International Event

By Linda Winick Innovative food and beverage products that are natural, organic, gluten-free and billed as “good for you” dominated the exhibit hall at SIAL Paris, the global event staged October 16-20, 2016 at the Parc des Expositions de Paris Nord, Villepinte-France.

Some 7,000 exhibitors from 105 countries displayed their wares to about 155,000 attendees from 194 countries.

“All of SIAL’s participants – both exhibitors and visitors – have once again helped us to turn this fair into the major international event for agribusiness, a highly strategic sector,” said Nicolas Trentesaux, director of the SIAL Network.

Retail buyers strolling through the mammoth exhibit halls were drawn to products touted as the way to stay healthy, boost energy and strengthen the body’s immune system. Not surprisingly, organic products were plentiful.

Along with their wide assortment of “good for you” products, food makers promoted “better for you” ingredients, such as honey or stevia instead of refined sugar, plant-based proteins rather than animal-based ones, and dairy alternatives. They also emphasized that many products did not contain gluten, dairy, lactose, cholesterol, GMOs or preservatives.

Also in evidence on the show floor was an emphasis on sustainability in the form of simple labelling and packaging that produces less waste and is biodegradable.

Exhibitors in the Canadian Pavilion focused on the fundamentals, such as maple syrup and grain. In the latter case, there was a special emphasis on one of today’s hottest topics: legumes. The United Nations proclaimed 2016 as “The International Year of Pulses” to raise awareness of the environmental and health benefits of plant-based proteins.

grocerybusiness.ca

SIAL CANADA SIAL Canada will hold its next show May 2-4, 2017 at the Enercare Centre in Toronto. Marie-Christine Sivière, head of communications for SIAL Canada, says SIAL is working with several experts to help develop individual food and related sectors. For SIAL Canada’s “Experts Central Hub 2017,” show organizers have lined up Loblaw’s Gurth Pretty as their cheese ambassador, and B.K. Sethi as their ethnic food expert.

“Food-to-go is another important segment for us,” adds Sivière. “In supermarkets today, one-third of the space is dedicated to that. It’s fresh, it’s gourmet, with a lot of variety.”

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The

GOLDEN PENCIL AWARDS

Don Williams, Hal Campbell, Advantage William M. Dunne

Anthony Longo, Longo Brothers Fruit Markets; John Scott, Scott Management; George Condon, Golden Pencil recipient

Todd Kelly, Kind Snacks; Scott Lorimer, Maple Leaf Foods

Francesca Renda, Patrick Pelliccione, J.K. Overweel

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Frank Rispoli, Nestle Purina Petcare; Les Mann, Golden Pencil recipient

January | February 2017

Vince Scorniaenchi, Fortinos; Paul Higgins, Mother Parkers; Jim Slomka, Clorox Canada

Dan Lafrance, Kraft Heinz Foods; Roger Eacock, Sobeys

Golden Pencil recipients applaud Vince Scorniaenchi

Dave Chapman, Burnbrae Farms; Matt Blixt, Kruger Products

Todd Fisher, Kimberly-Clark; Mahesh Pohoomull, Thomas, Large & Singer

NOVEMBER 14, 2016

VINCE SCORNIAENCHI AND MICHAEL McCAIN WERE HONOURED FOR OUTSTANDING SERVICE BY THE FOOD INDUSTRY ASSOCIATION OF CANADA PHOTOS: STEPHANIE LAKE

Michael McCain, Maple Leaf Foods; Paul Higgins, Mother Parkers; Richard Lan, Maple Leaf Foods (retired)

Grant Burke, Sobeys; Galen Shaw, Parmalat; Chris Powell, Tree of Life

Margaret Hudson, Burnbrae Farms; Ali Davies, Kraft Heinz; Stacey Kravitz, UNFI

Chris Cockle, Michael Catalano, The Wonderful Company

grocerybusiness.ca

Glenn Murphy, formerly of Shoppers Drug Mart; Mary Dalimonte, Sobeys; Vince Scorniaenchi, Fortinos

Mike Lovsin, Freson Bros.; Frank Coleman, Coleman Group of Companies

Nancy Carroll, James Cleary, Clorox Canada

Tom Barlow, CFIG; Jacquelynn Moody, Ontario Ministry of Agriculture

Kevin Smith, Grocery Business; Jim Slomka, Clorox; Carmen Fortino, Metro

January | February 2017

35

CONGRATULATIONS JIM, DARRELL AND THE ENTIRE OVERWAITEA TEAM FOR THE SUCCESSFUL OPENINGS OF THE WINNIPEG STORES Darrell Jones, Reza Bakhtiyari, and Jim Pattison

FROM YOUR FRIENDS AT

The Independent

Save-On-Foods Expansion Rocks Winnipeg Save-On-Foods officially opened the doors to three new stores in Winnipeg in November, marking the Western Canadian grocery chain’s expansion east. The retailer celebrated the milestone with a concert and autograph signing by Winnipeg rock legend Randy Bachman.

“I know I speak for our entire team when I say I am thrilled with what Save-On-Foods has to offer the fantastic people of Winnipeg,” said Save-On-Foods president Darrell Jones. “Since we announced our expansion to Winnipeg last year, we’ve been working hard to tailor these three stores to their unique communities based on what our neighbours have told us they want, and we’re confident these stores will wow our new customers.”

The Northgate, St. James and Bridgewater Save-On-Foods stores feature fresh, made-in-store meal solutions: freshly cut meat, housemade sausages and hand-cut bacon; an in-store pasta maker that will produce ravioli and nine varieties of pierogis; an in-store tortilla maker; and a wide selection of seafood.

Continued on page 39

Randy Bachman, Winnipeg rock legend

Dave Morris, Canadian Fishing Co.; Jamie Nelson, Overwaitea; Kevin Smith, Grocery Business

Dean Yuzdepski, Darryl Rowe, Weston Bakeries

Darrell Jones, Overwaitea; Chris Powell, Tree of Life

Josianne Legare, A. Lassonde; Darrell Jones, Overwaitea; Carla Anger, Kimberly-Clark; Stacey Kravitz, UNFI

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January | February 2017

37

BRAVO! Save-On-Foods on your FRESH growth May | June 2014 Vol 4 | No 3 $9.95 March / April 2016 2 Vol 6 | No $9.95

March y / Jun / e 201 Apr Vol il6 201 | No63 6 Vol $9.95 6 | No 2 $9.95

BUY-L OW C ELEBR ATES

A Man with a Mission Darrell Jones

029 PM # 42211

ture Gala Night to Nur

+produce MANAGER

Outstanding International Store Design

PM # 42211029

d Group aitea Foo s | Overw Jim Waite

Grand Prix Finalists The Deal of the Decade Loblaw & Shoppers

50 YE ARS

PM # 42211029

es’ t i a W D WORL

President, Overwaitea Food Group

grocerybusiness.ca

+ BrandSpa

Shoppe rk r Stud y

The In novato rs D

Interna tional Store

The Independent Continued from page 37 The 60,000-square-foot Northgate Save-On-Foods International store is tailor-made for the people of Winnipeg: a full traditional grocery featuring more than 6,000 products from around the world, along with the best selection of seafood in the city. The store also features a Starbucks, a frozen yogurt machine, and an array of hot meals reflecting international cuisine.

As part of the opening celebrations, Save-On-Foods also gave away three trips to the Philippines, Mexico and Southeast Asia – locations inspired by the flavours of the world at SaveOn-Foods International.

Save-On-Foods is Western Canada’s largest grocery retailer, with more than 150 stores in B.C., Alberta, Saskatchewan and now Manitoba. The company is on a path of rapid growth, with more than 50 stores planned in the next five years in B.C., Alberta, Saskatchewan, Manitoba, and the Yukon.

Terri Newell, Shannen Lohnes, Horizon Distributors

Jim Waites, Overwaitea; Ron Lemaire, Canadian Produce Marketing Association

Darrell Jones, Overwaitea, officially opening the store and welcoming guests

Scott Lindsay, Coca-Cola; Steve Fox, Nestlé

Darrell Jones, Overwaitea; Reza Bakhtiyari, Millennium Pacific Greenhouses; Jim Pattison, Pattison Group

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January | February 2017

39

www.great.gov.uk

The British are here, and they have brought all manner of exciting, unique and innovative food and drink – from the traditional to the modern.

UK retail brands have a world-class reputation, and the UK has a significant influence on global shopping habits. It’s one of the most highly regarded locations in the world for manufacturing food and drink, renowned for its high quality, wholesome raw materials and safe production methods.

And thanks to some regulatory changes and impending tariff reductions, retailers will be able to take advantage of opportunities to showcase an even wider range of outstanding products.

In a word, brilliant!

grocerybusiness.ca

FAST FACTS 16,000

new products are introduced in the UK annually.

66%

of raw materials

used in UK manufacturing are sourced in the UK.

The UK accounts for

worldwide 4.2% ofagri-food

published patents, ranking it eighth in the world.

January | February 2017

41

Taste of the UK

Cheese, please… and biscuits Britain is known for its famous cheddar and stilton cheeses, as well as for innovative blended cheeses. Examples of stand-out British cheeses available in Canada include Oak Manor’s Wensleydale with Orange, Apricot and Amaretto, Snowdonia’s Black Bomber, Inverloch’s Isle of Kintyre Scottish Applewood Cheddar, and Coombe Castle’s Ford Farm Truffler Cheddar.

And there is much more to come: Canada has agreed, under the Canada EU Trade Agreement (CETA), to increase the EU’s high quality cheese import quota by 16,000 tonnes, bringing the total to 31,972 tonnes.

Given its rich cheese-making heritage, it’s only natural that the UK would develop the perfect cracker complements to its masterworks. Britain has introduced several unique products, such as charcoal crackers from the Fine English Cheese Co., and biscuits from Wales-based Cradoc’s that are infused with Earl Grey tea – a match made in heaven.

Canada has imported more than

218M

$

of black tea from Britain over the past 5 years.

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January | February 2017

Taste of the UK

The UK produces over

700 named cheeses.

Tea time Though only a small amount of tea is grown in the UK, Britain’s passion for a proper cuppa has made it a quintessentially British product, and an integral part of British culture. It’s therefore unsurprising that the Brits would be prominent tea evangelists in Canada.

UK tea brands are well-known, and have an offering for every need – from comforting traditional brews sought out by British expats and purists, to organic fair-trade cuppas for the conscientious consumer.

Highly popular UK tea brands in Canada include Typhoo Tea, Yorkshire Tea, Twinings Tea and Clipper Tea.

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January | February 2017

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Taste of the UK

Brews and bubbly The British are famous for their beers, and Canadians are enjoying them too. There are a number of unique styles and brands available for grocers to sell under new opportunities in Ontario specifically.

Canada is Scottish craft beer brewer Innis & Gunn’s largest export market, and it has even developed bespoke brews celebrating Canada Day. For those looking for something a little different, Charles Wells Brewery offers innovative flavours like Wells Banana Bread Beer and Young’s Double Chocolate Stout. Trooper Beer, handcrafted at Robinson’s Brewery in Stockport, has a built-in customer base with Canadian Iron Maiden fans.

The UK climate is also ideal for producing sparkling wine. In fact, England now enjoys the same average number of warm days as France’s Champagne region did in the 1970s. Wineries such as Hush Heath and Chapel Down are making initial inroads into Canada through LCBO e-commerce listings. As English wines gain recognition in the Canadian market, they will look to take advantage of future opportunities, such as the sale of wine in Ontario grocery stores.

There are 1,424 breweries in the UK.

3 new ones open up every week.

The meat of the matter British meat is known for its strong native breeds heritage, regional variations, high welfare standards, thorough traceability and diversity of feed – no growth-promoting hormones.

Welsh lamb, in particular, gained traction in the Canadian market in 2016, driven by increased retail listings across Canada.

British beef may soon become just as popular as lamb, due to two recent developments. In 2015, beef from UK facilities registered with the CFIA became eligible for export to Canada. In addition, CETA, which is expected to come into force this year, will eliminate the customs duty payable on imported UK beef, giving it the same duty-free access that pork and lamb producers already enjoy.

Proof of the distinctive character of UK meats, both Scotch and Welsh beef and lamb have been awarded European PGI (Protected Geographical Indication) status, recognising their special regional significance.

©CROWNCOPYRIGHT

January | February 2017

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For over 35 years Coombe Castle have been exploring the length of Great Britain and Ireland searching for unique, flavourful cheeses and sharing them with Canada.

www.coombecastle.com

What a catch!

The UK is known for producing premium salmon, whitefish and shellfish, with the majority of processing taking place in the regions of Scotland and Yorkshire & The Humber. Scotland, with its cold, clear lochs, is particularly suited to salmon production, and is home to the third-largest salmon industry in the world.

Scottish farmed salmon was the first non-French food to receive the highly prized Label Rouge designation, a quality mark granted by the French Ministry for Agriculture. This level of prestige has led Canadian retailers to be increasingly interested in developing private-label products using Scottish seafood products. Brown crab, sourced from Scotland and Wales, is one of the most popular shellfish imports from the UK into Canada; Scottish langoustines are also particularly renowned here.

©CROWNCOPYRIGHT

There are more than 100 species of seafood fished in the UK.

The Saucy Fish Co. Icelandic Seachill’s Saucy Fish Co. products, available in Loblaw stores since September, exemplify UK leadership in product development and branding. The sustainably sourced fish and sauce combinations are easy to cook straight from frozen, making them a convenient, low-fuss option for busy Canadian shoppers. Cheeky, eye-catching branding and interesting flavour profiles like Chili, Lime and Ginger with Atlantic salmon, have earned Saucy Fish Co. a spot on the UK’s CoolBrands list, a rare coup for a seafood brand.

Sourcing the next great UK product Are you looking to source new products from the UK? We provide a free service to help Canadian companies identify the best British products to boost your business. Send us a description of your requirements, and we will solicit interest from UK suppliers on your behalf. Our team filters the responses and sends you a list of export-ready

grocerybusiness.ca

supplier leads, then facilitates introductions to those that are of interest to you.

Your company name and information are kept private until you’ve decided which companies you want to connect with, so you won’t receive unsolicited enquiries.

To use the service, please contact Dana Dickerson, Food & Drink Campaign Officer UK Department for International Trade Dana.Dickerson@mobile.trade.gov.uk

January | February 2017

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Taste of the UK

A knack for snacks The UK shines in the grocery aisles, with innovative products, packaging, and flavours. Take, for example, Mackie’s Haggis and Cracked Black Pepper Crisps, which are suitable for vegans. New to Canada this year are The Bay Tree’s artisanal chutneys and preserves, which incorporate a cleverly-placed Union Jack and cheese pairing suggestion into their labels. Products like The Bay Tree will get a boost when CETA comes into force and eliminates tariffs of up to 12.5 per cent on preserves, sauces and condiments. UK companies export a significant number of jam products here: in 2014, Britain was the second-largest exporter of citrus fruit preserves to Canada, behind only the U.S. Diet-specific options are also coming to the forefront. Walker’s, known for its legendary shortbread, has introduced a new gluten-free line to Canada.

LoSalt, a reduced-sodium salt alternative now available in Canada, offers the flavour of the British seaside but has 66 per cent less sodium than regular table salt.

“Canada is a highly sophisticated market with a fabulous food offering of its own. In 2017, British brands are meeting this challenge in exciting ways. We’re seeing particular traction with products that emphasise their unique provenance and heritage, demonstrate craftsmanship, and push the envelope on innovation and branding. Joe & Seph’s Gin and Tonic Caramel Popcorn, and Mackie’s Haggis and Black Pepper Crisps, for example, pay tribute to iconic British flavours in a contemporary way.”

—Dana Dickerson, Food & Drink Campaign Officer, UK Department for International Trade

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Taste of the UK

Canadian Importers, Distributors & Suppliers of British Food & Drink Products A.G. BROWN & SONS LTD

(Atlantic Canada only) T: 902 454 6407 E: agbrown@agbrown.ca W: www.agbrown.ca Contact: Mr. Jim Brown, vice-president Brand/Product Coleman’s: Mustard Powder Cross & Blackwell: Condiments Mrs Ball’s: Chutneys Wilkinsons: Jam Marmite: Yeast Spread Camp Coffee: Coffee and Chicory Essence BAXTERS CANADA INC.

T: 905 813 8678 E: baxtersenquiries@baxters.com W:www.baxters.com Contact: Mr. Ashley Kanary, VP sales Brand/Product Baxters: Canned Soup BEDESSEE IMPORTS LTD

T: 416 292 2400 E: rayman@bedessee.com invor@bedessee.com W: www.bedessee.com Contacts: Mr. Rayman Bedessee, general manager Mr. Invor Bedessee, sales Brand/Product Andrews Salts Bells & Sons: Castor Oil, Eucalyptus Oil, Almond Oil Hacks: Flavoured Sweets Horlicks: Ovaltine Malted Drink Mixes Liquifruta: Cough Syrup Lucozade: Energy Drink Seven Seas: Cod Liver Oil Tunnocks: Caramel Wafer Biscuits Vimto: Soft Drinks C.B. POWELL LTD

T: 905 625 4000 E: cglaysher@cbpowell.com W: www.cbpowell.com Contact: Mr. Colin Glaysher, executive VP Brand/Product Mamade: Marmalade Typhoo Tea: Teas (London Fruit & Herb Teas, Typhoo Teas, Typhoo Heath and Heather organic teas, Ridgway Organic Tea)

DOLAN FOODS INC

T: 416 207 8813 E: pdolan@dolanfoods.com W: www.dolanfoods.com Contact: Mr. Pearse Dolan, import manager Brand/Product Welsh Lamb DOVE TALE COLLECTIONS

T: 1 877 746 6698 E: susan@dovetalecollections.com W: www.dovetalecollections.com Contact: Ms. Susan Jacobson, president Brand/Product Artisan Bakers: Cheese Crackers and Biscuits Barts: Spices Brew Tea Co: Loose & Bagged Teas Cawston Press: Apple juices Cullisse: Scottish Rapeseed Oils Chocolate & Love: Chocolate Bars Duchy Originals: Biscuits, Tea Fine Cheese Company: Crackers and Condiments for Cheese Grown Up Chocolate: Chocolate Joe & Seph’s: Gourmet Popcorn Kirremuir: Gingerbread (Christmas only) London Tea: Teas Mackays: Mackays & Mrs Bridges Preserves and Condiments Makers and Merchants: Preserves, Condiments, Confectionery Opie: Pickles and Condiments Piper’s Crisps: Potato Chips Rude Health: Cereals Shortbread House of Edinburgh: Shortbread (Christmas only) Silver & Green: Olives Summerdown: Chocolate and Tea Sussex Valley: Mayonnaise The Fresh Olive Company: Belazu Olive Oil, Vinegar and Tapenades Veeraswamy: Curry Pastes and Chutneys Willie’s Cacao: Chocolate Your Piece Baking Co.: Scottish Oatmeal and Porridge Cakes ELCO FINE FOODS LTD

T: 604 324 1551 E: info@elcofinefoods.com W: www.elcofinefoods.com Brand/Product John West: Canned Fish EURO-EXCELLENCE

T: 450 632 9440 E: info@euro-excellence.ca W: www.euro-excellence.ca

Brand/Product English Tea Shop: Tea FINICA FOOD SPECIALTIES LIMITED

T: 905 696 2770 E: geninfo@finica.on.ca W: www.finica.com

Brand/Product Snowdonia: Cheese Collier’s: Powerful Welsh Cheddar FAR-MET IMPORTERS LTD

T: 604 876 2241 E: info@far-met.com W: www.far-met.com Contacts: Mr. Yves Farges, president Ms. Jodi McKinnon, chief operating officer Brand/Product Maldon Crystal Salt Co.: Maldon Crystal Salt & Pepper, Tidman’s Salt The Wiltshire Tracklement Co.: Tracklement Chutney, Jelly, Horseradish Bennett Opie Ltd: Opies Sauces and misc. items GLEN ECHO FINE FOODS

T: 416 255 5573 E: gvisser@custanfoods.com W: www.glenechofinefoods.com Contacts: Gerry Visser, owner Brand/Product Isle of Kintyre: Scottish Applewood Cheddar Wensleydale Creamery: Wensleydale Caramelized Onion Cheese, Wensleydale with Cranberries Long Clawson Dairy: White Stilton with Mango and Ginger, Double Gloucester with Stilton Belton Farm: Red Fox Aged Leicester HUSKY FOOD IMPORTERS & DISTRIBUTORS LTD

T: 905 850 8288 E: info@huskyfoods.com W: www.huskyfoods.com

Brand/Product Deans: Shortbread Mrs Tilly’s: Fudge Taylors of Harrogate: Yorkshire Tea I-D FOODS CORPORATION

- HQ

I-D FOODS CORPORATION

- CENTRAL DIVISION

T: 450 687 2680 E: info@idfoods.com W: www.idfoods.com T: 416 679 0833

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January | February 2017

I-D FOODS CORPORATION - WESTERN DIVISION

T: 403 236 7871 (Calgary) T: 604 942 6022 (Vancouver)

Brand/Product Camp Coffee: Coffee and Chicory Essence Colman’s: Mustard Crosse & Blackwell: Gourmet Sauces and Chutneys Marmite: Yeast Spread Patak’s: Indian Sauces Wilkin & Sons Ltd: ‘Tiptree’ Preserves JAN K. OVERWEEL LTD. - HQ

T: 905 850 9010 E: ppelliccione@jkoverweel.com W: www.jkoverweel.com Contact: Mr. Pat Pelliccione JAN K. OVERWEEL LTD. - WESTERN DIVISION

T: 604 464 4744 T: 1 800 595 4744 E: kanderson@jkoverweel.com Contact: Mr. Kevin Anderson

JAN K. OVERWEEL LTD. - EASTERN DIVISION

T: 450 665 1055 T: 1 888 494 9021 E: ftrimarco@jkoverweel.com Contact: Mr. Frank Trimarco

Brand/Product Oak Manor English Cheese: Range includes Blue Stilton, Shropshire Blue, Vintage Organic Cheddar, Double Gloucester, Red Leicester, Cheshire, Lancashire, Wensleydale, Double Gloucester Onions & Chives, Cheddar & Balsamic Onion, Wensleydale & Cranberries, White Stilton with Apricots/Cranberries/Mango & Ginger, Redwood, Bollywood, Cosmopolitan, Wensleydale Orange Apricot & Amaretto, Wensleydale Orange & Champagne, Mature Cheddar Truckles, Mature Cheddar with Beer Truckles, Mature Cheddar with Whiskey Truckles J.E. HASTINGS LTD

T: 506 856 8888 T: 1 800 268 0001 E: info@jehastings.com W: www.jehastings.com Contact: Mr. John Hastings Brand/Product Mini Moo: Dairy & GlutenFree, Vegan Chocolate Buchanan’s: Candies, Fudge, Edinburgh Rock Simpkins: Tinned Travel Sweets Walkers Toffee: Toffees

Taste of the UK

MORGAN-WILLIAMS INTERNATIONAL INC.

Brand/Product Maldon Crystal Salt Co.: Maldon Crystal Salt & Pepper, Tidman’s Salt The Wiltshire Tracklement Co.: Tracklement Chutney, Jelly, Horseradish Bennett Opie Ltd: Opies Sauces and misc. items

Brand/Product Crawfords: Biscuits Hayward and Branston: Pickle Products Hills: Biscuits Lancashire Eccles Cakes: Eccles Cakes London Cuppa: Tea Nestle UK: Walnut Whips, Yorkie, Milkybar Robinson’s: Juice Rowntree: Fruit Gums, Pastilles, Jelly Tots Soreen: Malt Loaves Stockan’s: Oatcakes Tavener’s: Proper Sweets Thorntons: Toffee Tunnocks: Chocolate Biscuits PG Tips: Tea Walkers: Nonsuch Toffee

SCOTT-BATHGATE LTD - CENTRAL DIVISION

T: 905 696 0226 E: jim@morganwilliams.ca brittany@morganwilliams.ca W: www.morganwilliams.ca Contact: Mr. Jim Picard, Owner – ext 222 Ms. Brittany Picard – ext 236

PREMIER BRANDS CANADA LTD.

T: 416 750 8807 E: brianh@premierbrands.net W: www.waterbridge.net Contact: Mr. Brian Hicks, managing director Brand/Product Baronie United Kingdom: Waterbridge Occasions – Chocolate Toffee Assortments Tangerine Confectionery: Waterbridge Gums/ Jellies/Wine Gums/Waterbridge Liquorice Allsorts Country confectionery: Waterbridge Toffees and Fudges Fox’s Biscuits: Waterbridge All Gold Biscuits and Fox’s Traditional British Biscuits Big Bear Confectionery: Waterbridge Mini Eggs and Panned Chocolate Items Patersons: Scottish Shortbread QUALIFIRST FOODS LTD.

T: 416 244 1177 T: 1 800 206 1177 E: info@qualifirst.com W: www.qualifirst.com Contact: Mr. Yves Farges, president Ms. Jodi McKinnon, chief operating officer

T: 204 943 8525 E: sales@scottbathgate.com W: www.scottbathgate.com Contact: Mr. J C Burt SCOTT-BATHGATE LTD

- WESTERN DIVISION

T: 604 946 8684 E: gmacdowell@scottbathgate.com Contact: Mr. Angus MacDowell Brand/Product A.L. Simpkins: Assorted Travel Candies Churchills: Confectionery Walkers’ Toffee: Toffee Burtons Biscuits: Biscuits Grandma Wilds: Biscuits Cadbury UK: Chocolate Bars London Sweets: Wafer Bars Dorset Teas: Teas Reids: Scottish Shortbread & Biscuits Hills Biscuits: Biscuits TFB & ASSOCIATES LTD

TWININGS NORTH AMERICA

T: 647 376 5514 E: henry.evans@twinings.ca W: www.twinings.ca Contact: Mr. Henry Evans, VP - Canada Brand/Product Tea: Twinings of London® tea bags, loose teas, K-Cup® Pods WORLDWIDE SPECIALTY FOODS LTD

T: 403 255 6262 E: tjames@worldwidespecfoods.com Contact: Mr. Tony James

Toronto Office T: 905 507 6161 T: 1 800 263 7054 E: Chantal.seguin@treeoflife.com Contact: Ms. Chantal Seguin Vancouver Office T: 604 881 7100 T: 1 800 661 9655 E: Leeola.zanetti@treeoflife.com Contact: Ms. Leeola Zanetti

Brand/Product AAK Ltd: International Collection Brand Olive, Nut and Seed Oils in pour and spray formats A.G. Barr PLC: IRN-BRU Soft Drinks Belvoir Fruit Farms: Flavoured Sparkling Beverages & Cordials Campbell’s: Scottish Shortbread Chivers: Lemon Curd, Marmalades and Preserves Coles: Christmas Pudding and Sauces Cornish Sea Salt: Plain & Flavoured Sea Salts Dorset Cereals: Muesli and Granola Fever Tree Premium Mixers: Tonic Water, Ginger Beer, Ginger Ale, Soda Water, Lemon Tonic Gardiners of Scotland: Gardiners Fudge & Toffees

helps UK-based companies succeed in the global economy. We link Canadian importers, distributors and retailers with the right UK partners and suppliers. We also organise meet-the-buyer events, networking receptions and product launches.

grocerybusiness.ca

W: www.treeoflife.ca

- HQ

The UK’s Department for International Trade (DIT)

Tyrrell’s: Potato Chips United Biscuits: Carr’s Crackers & McVitie’s Biscuits Jordans: Cereals Walkers: Shortbread Wensleydale Creamery: Cheese Wexford: Cheese

TREE OF LIFE CANADA, A KEHE COMPANY

T: 905 940 0889 E: briddell@tfb.ca W: www.tfb.ca Contact: Mr. Bob Riddell, president

Get in touch

Kerrys Foods: Greens Yorkshire Pudding Mix, Pearce Duffs Custard Mix Lofthouse of Fleetwood: Fisherman’s Friend Medicated Lozenges LoSalt: Reduced Sodium Salt Alternative Mackies of Scotland: Potato Crisps Matthew Walker: Christmas Puddings McDonnell’s: Curry Powders Nairn’s: Oat Crackers, Biscuits and Gluten free Cookies, Crackers Premier Foods: Homepride Sauces and Batchelors Dry Peas Qcumber: Sparkling Water Renshaw Napier: Scott’s Jams Preserves and Whiskey Marmalades Simpkins: Confectionery Stahly Foods: Canned Haggis

Brand/Product Ambrosia: Custards & Puddings Barbers: Cheese Belton Farms: Cheese Bottle Green: Drinks Cahills: Cheese Clipper Tea: Teas Coombe Castle: Cheese Cradoc’s: Crackers Eat Naked: Nutritious Snack Bars Ford Farms: Cheese Green & Black’s: Chocolates Ilchester: Cheese Long Clawson: Cheese McVitie’s: Club Orange Chocolates Mrs. Crimble’s: Gluten Free Snacks & Desserts Mull of Kintyre: Cheese Orkney: Cheese Robertsons: Preserves Ryvita: Crispbread Sharwoods: Marinades, Sauces, Chutneys

If you are looking to source or learn more about UK products in Canada, please contact: Dana Dickerson, Food & Drink Campaign Officer UK Department for International Trade Dana.Dickerson@mobile.trade.gov.uk

Brand/Product A.G. Barr PLC: IRN-BRU Soft Drinks Ambrosia: Custard, Rice Pudding Barry’s Tea: Tea Belvoir: Flavoured Waters & Cordials Cadbury: Biscuits United Biscuits/Carr’s: Crackers McVities Biscuits Dorset: Cereal Duncan’s: Biscuits Fentiman’s: Beverages Fever Tree: Drinks Inverloch: Cheese Marmite: Condiment Nairns: Oat Cakes Oak Manor: British Cheese Scott’s: Jams Simply Cornish: Shortbread Typhoo: Tea

Whereas every effort has been made to ensure that the information provided is accurate, the UK Department for International Trade accepts no responsibility for any errors, omissions or misleading statements in that information and no warranty is given or responsibility is accepted as to the standing of any firm, company or individual mentioned.

For those interested in Scottish products specifically, please contact our partners at Scottish Development International: Lorraine Bruce-Helmkay Scottish Development International Lorraine.BruceHelmkay@scotent.co.uk

January | February 2017

51

Merchandising

Spring Cleaning: Making the most of seasonal peaks After a long Canadian winter, consumers look to freshen up their homes by embarking on a purposeful deep clean. But retailers should be aware that cleaning behaviour has changed. It’s no longer just about a routine weekend deep clean, but about a combination of planned cleaning events such as washing the floors and disinfecting the bathrooms.

Consumer insights firm Dunnhumby says that spring represents a “seasonal peak,” which can be a sales driver for several categories, including cleaning products. Its research indicates that retailers can take advantage of this short but strong selling period, and see a

26%

According to Lindsey Frimet, marketing manager and category team lead, cleaning, at The Clorox Company, consumers are looking for cleaning products that are efficacious, convenient and provide value. Frimet notes that, in order to remind consumers of the various cleaning tasks involved, it’s important to cross-merchandise items such as: • Drain cleaners • Bucket dilutables • Disinfecting sprays and wipes

Potential sales increase

with these strategies: • Working with vendors to identify opportunities • Planning promotional activities well in advance • Creating a “Spring Cleaning” promotional week in flyers and around the store • Staging simultaneous promotions across subcategories • Ramping up in-store communication with off-fixture displays and POS materials

Scent is playing a bigger role. Consumers continue to look for products that are efficacious and affordable, but they are also looking for products with pleasant scents.

BrandSpark’s 2016 Shopper Survey indicates that

32% of consumers say it’s important to be able to get all their household products in one stop

grocerybusiness.ca

25%

of grocery-driven shopping trips included household care items

January | February 2017

53

Making It

A DIP IN THE RIGHT DIRECTION

Yohannes Petros Founder, Hanes Hummus

Hanes Hummus is on a mission to spread healthy goodness.

By Dave Lank Yohannes Petros, a former yoga instructor, understands the importance of keeping things simple. For the creator and owner of Hanes Hummus, that means making hummus using only a few basic and fresh ingredients. The result is a taste that is winning over consumers, and shelf space against the big players who dominate the market.

Once found mainly in Middle Eastern restaurants and health food stores, over the last 15 years, hummus has become a

54

January | February 2017

grocery store staple as shoppers fill their baskets with healthier food options.

Petros never set out to be a food entrepreneur. His journey started in 2000 in his own kitchen while he was still a student and teaching yoga in Vancouver. It was there that he crafted small batches of hummus to supplement his diet and, to their delight, share with friends. When those friends couldn’t seem to get enough of his signature hummus, he knew he might be on to something.

Making It

When Petros moved back to his hometown of Saskatoon in 2009, the idea of starting his own hummus business began to solidify. His cousin, who consistently raided Petros’s fridge in search of hummus, brought some to the restaurant where she worked. She shared it with co-workers and the restaurant’s owner, and the taste stopped them all in their tracks. The restaurant became his first customer.

Soon, Petros was selling his hummus to thousands at the city’s annual Folkfest event, and then to local health food stores in Saskatoon and Regina.

Today, Hanes Hummus is listed in over 120 health food stores and markets (and counting) in the western provinces, including Co-op stores throughout Saskatchewan, and Choices and Whole Foods in Vancouver. Petros employs five part-time workers to help with production out of a commercial kitchen. He delivers product himself (except for a distributor to service the Lower Mainland), and can be found almost daily in stores doing demos.

He recognizes that it takes time to build a brand, as well as strong relationships and trust with retailers. His goal in the next five years is for Hanes Hummus to become a recognized brand available nationally and in select markets within the U.S. “I’m building that demand slowly,” he explains,”by being persistent and believing in what it is that I’m doing.” With an uncompromising commitment to quality and with a taste that’s keeping an everincreasing legion of fans dipping for more, Hanes Hummus is proving that sometimes the little guys do win.

FAST FACTS Origin of name: Hanes is Yohannes Petros’s nickname

Home base: IN 2015, HE EXHIBITED AT THE CANADIAN HEALTH FOOD ASSOCIATION TRADE SHOW IN VANCOUVER. “IT WAS AT THAT SHOW,” HE SAYS, “THAT I WAS REALLY ABLE TO SEE THE POSSIBILITIES IF I WANTED TO TAKE THE CHANCE AND TRY TO GROW MY BUSINESS.” THE REST IS HUMMUS HISTORY.

Being based in Saskatchewan provides a natural competitive advantage. The province is one of the world’s largest chickpea producers, so the majority of Hanes Hummus ingredients are local.

Although hummus has become mainstream, the biggest challenge for Petros is educating retailers, who already carry mass-produced brands of the product, on why they should sell his. “I say, ‘I know that you have hummus, but you don’t have Hanes Hummus,’” explains Petros on how he approaches retailers. “They’re always talking about wanting something different,” he adds, “and everything about Hanes Hummus, from the packaging to the recipes to the quality of the ingredients, is different from everything that’s out there.”

Hanes Hummus also differs in that it’s not heat-pasteurized.

Although heat pasteurization, along with preservatives, extends a product’s shelf life, it diminishes many of the good nutrients found naturally in the food. That’s something Petros is not willing to forfeit.

grocerybusiness.ca

Saskatoon, Saskatchewan

Established: 2009

Flavours: The Original, Roasted Garlic & Dill, and Hot Date!

Best seller: Roasted Garlic & Dill

Number of employees: Five part-time

Legal briefs: Hanes Hummus made international news in 2013 when Hanes the underwear company unsuccessfully tried to sue for name infringement.

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55

Confectionery Trends

Hitting the

Sweet Spot Sweet but healthy indulgence, emboldened with lively flavours and presented in variety packs, is driving growth of the category and drawing consumers into the confectionery aisle.

Sales Driver #1: Lots of Luxury Premium chocolate sales are on a roll. The winning combination of delicious and healthful – particularly when products are infused with unique ingredients such as muscadine grape and Himalayan sea salt – are making premium chocolate treats a hit with consumers.

Sales Driver #2: Thin-sational Big treats in small packages, with no compromise in premium quality and taste.

Sales Driver #3: Nuts and Fruit A winning combination, a variety of fruit and nut products are hitting retailers’ shelves. New products featuring such flavour pairings as chocolate with mango, or fig and vanilla, are popular with consumers.

Sales Driver #4: Flavour Fusions Strong international flavours are making their mark, and sweets are no exception. Sweet treats infused with flavours such as sriracha or chimichurri are packing a punch in the confectionery aisle.

+11

Consumers vote for variety

+ 5.4

% Variety Packs

70% Want a variety of flavours

+.09

%

60% Want portioncontrol packs

Multipacks

59%

Want a variety of products for family members

%

premium chocolate growth

35

%

prefer gourmet flavours and/or gourmet quality products

Source: IRI Sweets & Snacks study

Source: Candy USA State of Industry

grocerybusiness.ca

January | February 2017

57

Dairy, Deli, Bakery & Foodservice Professionals,

NETWORKING BEGINS HERE

YOU’LL SEE: 9,000 Professionals 700 Exhibitors Retail Decision-Makers Top Speakers Trends Research And More...

Jim Belushi

and The Board of Comedy

New Concepts Merchandising Retail Takeaways Unique Displays

Doug Rauch

Former President of Trader Joe’s

Latest Trends Hundreds Of Items Mike Eardley

EXPERT

President/CEO of IDDBA

NEIGHBORHOOD

One-on-One Expert Advice The Industry’s Premier Event

Arnold Schwarzenegger California’s 38th Governor

REGISTER TODAY!

IDDBA.ORG 608.310.5000

Cheese

LE GRAND FROMAGE Gurth Pretty, senior category manager, deli cheese special projects, at Loblaw Companies Limited, and SIAL Canada’s Cheese Ambassador, shares expert advice on what it takes to make your store a cheese destination.

Why has cheese become such a hot item?

Cheese is sexy! And there are so many varieties – brie, cheddar, blue, feta, chèvre – made with different kinds of milk (cow, goat, sheep and water buffalo), originating in so many different countries, such as France, Canada, England, Italy, Greece, U.S.A.….

Plus, retailers are always on the lookout for cheese varieties that will differentiate them from their competitors.

What elements are key to building a successful cheese department?

Assortment: Offer cheese made of different types of milk and that meets different religious or dietary requirements (i.e., kosher, halal, vegetarian, lactose or gluten-free).

Sampling: “Sampling is believing!”

Consumers will be able to appreciate how good a specific cheese is only if they have an opportunity to taste it.

Eventing: Give your customers reasons to regularly visit your store by creating excitement. Crack big wheels of cheese in front of your customers, and invite cheesemakers to lead special presentations and tastings.

Cooking Innovation: Via interactive demos, show your customers how to cook with a variety of different cheeses. And provide recipe cards. Imagine how much more cheese would be purchased if it was included in seven different meals every week.

Cross-Promotion: Matching other grocery products to cheese increases basket size. For example: bread, deli meat, olives, nuts, fresh and dried fruit, beer, wine, fresh meat, eggs.

Plus, complementary cheese wares, such as serving knives, platters, fondue pots, raclette, cheese paper, identification tags, graters, etc., can generate more sales.

Knowledeable Staff: It’s essential that staff understand the product so that they can

+3.6

Whole Fat Cheese

-3.9

%

Reduced Fat

-12.4

%

Fat Free

Source: IDDBA, six months ended June, 2016

grocerybusiness.ca

How can retailers prepare themselves for CETA*?

• Discuss and negotiate with your distributors how to access the new European cheeses that will become available.

• Attend trade shows, such as SIAL Toronto in May, to meet potential suppliers and to discover new types of cheese. It’s important to be curious about and active in the industry. * Canada-European Union Comprehensive Economic and Trade Agreement (CETA)

GURTH’S TAKE ON WHAT’S TRENDING Retailers with their own quota for European and non-European cheese Convenience of pre-sliced products for families

Consumers’ tastes are shifting towards indulgence

%

answer customers’ questions, suggest related products and close the sale. So, invest in your staff’s product knowledge, and their selling and customer-service skills.

Portion packs Cheese familiar to newly arrived Canadians Cheese containing less lactose Naturally-smoked cheese

January | February 2017

59

LIST IT

NEW & NOW DISCOVERIES

Lactantia adds to its buttery lineup Lactantia’s new European Style Butter is churned to a higher fat (82% M.F.), resembling European butter. This style of cultured butter is extra creamy and rich, ideal in baking and cooking. Lactantia’s new Tomato Basil Butter and Maple Flavoured Butter will add an unexpected savoury or sweet twist to any recipe.

lactantia.ca

Nourish Bowls: A balanced meal in a bowl In tune with what consumers are asking for, Mann’s single-serve Nourish Bowls combine fresh flavour and a variety of tastes into one delicious and convenient presentation.

Mann’s Nourish Bowls were honoured with the 2016 Produce Marketing Award for Excellence in Packaging.

nourishbowls.com

60

January | February 2017

New flavours from Astro Athentikos!

For a hearty and nutritious breakfast, consumers are choosing Astro Athentikos Ancient Grains. Made with thick and creamy Greek yogourt, fruit and ancient grains quinoa, chia seeds, buckwheat, and amaranth, it’s a delicious way to start the day. Astro Athentikos Ancient Grains is available in Mixed Berry, Strawberry and Peach.

Astro Athentikos Chocolate Chunk is a rich and creamy yogourt with real chocolate chunks. This light and decadent treat is available in Cherry, Banana, Chocolate and Dulce De Leche.

astro.ca

Tropical Refreshment!

Ocean Spray introduces its newest flavour, Cran•Pineapple Cocktail. Also available in a diet format, with only 10 calories per serving, this refreshing blend of cranberry and sweet, tropical pineapple offers 100 per cent of the recommended daily value of vitamin C.

oceanspray.ca

Delectable Tango Tomatoes Windset Farms’ new Tango Tomatoes are greenhouse grown for year-round availability. These tomatoes are super sweet with a big crunch, and are packaged for sustainable snacking in new easy-to-use top seal dry pints.

windset.com

grocerybusiness.ca

61

it figures

A Need for

Nutrition 64

%

actively seek products with healthy ingredients

Savvy consumers are demanding more from the foods they eat, and some are prioritizing ingredients over brands. Think of merchandising more healthful foods and better-for-you brands in the centre of the store.

Takeaway

39

%

prefer to shop at retailers that offer products for dietary needs Carry healthful products throughout, across categories and departments. Sales in one category, for example, organic bread, can drive the sale of related products, such as natural peanut butter.

Takeaway

62

January | February 2017

Carman Allison is vice-president

73

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

feel better about companies that are transparent about their products

65

%

6% are vegetarian 7%

are gluten-free

6%

are lactose-free

of Canadians pay close attention to the ingredients they consume Canadians are willing to put their money where their mouths are. Grocers who help consumers eat more healthfully by offering a solid selection of right-priced items will see the results in their bottom lines.

Takeaway

grocerybusiness.ca

January | February 2017

63

VINO WITH YOUR VEGGIES There are now 67 grocery stores selling wine in Ontario. It’s a start.

By Sally Praskey It may have been a long time coming, but shoppers in 67 supermarkets – including 20 independents – across Ontario can now add bottles of imported or domestic wine to their grocery lists.

While the Canadian Federation of Independent Grocers (CFIG) did not agree with the government’s incremental approach, maintaining that the sale of wine and beer (57 stores began selling beer in December 2015) should have been open to all grocery stores from the outset, it’s a first step.

Ultimately, 300 stores will be permitted to sell wine, and 450 to sell beer and cider.

time,” says Gary Sands, vice-president, public policy, at CFIG. “I am optimistic that you are going to see those 450 stores filled by the time the next election comes around in June 2018.”

Sands believes consumers will drive much of this progress. “The public is going to see that this is very convenient.”

“It should be a good fit for impulse buys and [reducing] some incremental trips for the consumer,” adds Philip Scrutton, director, consumer insights, BrandSpark International research consultancy. “Shoppers feel they are likely to pick up an extra bottle if it’s available at the grocery store – it’s easier than making an extra stop.”

“I believe this system will continue to evolve and change and become more open over

WHAT’S YOUR PREFERENCE? • Traditionally, white wines are consumed more in the summer, with sales 15 per cent higher. Similarly, sales of rosé wines are 40 per cent higher in the summer than the monthly average.

• The past two summers, Pino Grigio and Sauvignon Blanc have been the most popular white wines.

• Pino Grigio is the number one white varietal, and Cabernet Sauvignon the number one red varietal in Ontario.

• Most consumers purchase wine within the $12 to $15 price point.

Source: Constellation Brands Canada Inc.

64

January | February 2017

PHOTO: API(+)

TAKEAWAY TIPS • A strong assortment of wines in important wine regions and varietals is key to success. For example, because New Zealand is known for Sauvignon Blanc – with over 70 per cent of its wines in that grape – that country is an important part of the Sauvignon Blanc selection.

• It’s easy for consumers to get overwhelmed by wine choice, so education and sampling helps them choose wine with confidence.

ONTARIANS CONSUMING

M O R E The ultimate in wine merchandising: Schnucks, a U.S. grocery retailer, leads the field in upscale wine retail design in its stores.

• Because consumers are loyal to format and colour, keep similar formats and colours together. • Organizing wines by country helps shoppers find the varieties they traditionally purchase from the LCBO. N.B.: According to the Alcohol and Gaming Commission of Ontario, wine may not be merchandised with food, so there may be no secondary displays outside the wine grocerybusiness.ca

section, nor any incentive to purchase wine with food. Therefore, any crosspromotional opportunities come from merchandising displays of food near wine and talking to the pairing as consumer education, and not as an incentive.

Samples can be provided and consumed only within a designated area adjacent to the wine display area inside the grocery store.

Source: Constellation Brands Canada Inc.

5.1%

9%

3.2%

60.2%

Increase in wine sales in Ontario, 2015 vs. 2014

Volume increase in imported wines, 2015

Volume increase in domestic wines, 2015

Percentage of total sales represented by imported wines

Most popular countries, sales by volume:

Canada, Italy, U.S., Australia, France Source: LCBO Annual Report, 2014-15

January | February 2017

65

Here’s to great brands Whether celebrating big moments or enjoying quiet ones, Constellation Brands Canada offers premium wine to elevate life at every occasion.

consumer.help@cbrands.com or call 1.877.919.7587

PLEASE ENJOY RESPONSIBLY.

BrandSpark Insights: The Millennial Shopper GOOD NEWS FOR GROCERS:

72% 66%

65%

Millennials are cooking at home more often than any other age group

54% 38% 26%

26%

MORE OFTEN

20%

THE SAME

8%

LESS OFTEN

TOTAL

Overall

Millennials

Walmart/Walmart Supercentre 49% 53%

MILLENNIALS

Gen X

Baby Boomers

53% 44%

Costco 36% 30% 37% 38% No Frills 27% 23% 28% 28% 20%

25% 24%

Real Canadian SuperStore 23% 23%

22% 24%

Shoppers Drug Mart/ Pharmaprix 23%

Metro 21% 19% 19% 23% Sobeys 18% 14% 17% 21% Loblaws/Loblaws Superstore 16% 17%

9%

8%

16% 15%

GEN X

8%

BABY BOOMERS

WHERE DO CONSUMERS SHOP FOR FOOD AND BEVERAGE PRODUCTS? Although all generations shop at the same mix of stores, Millennials frequent Costco’s suburban stores less often, likely because of their higher rates of “urban” living and smaller households.

IGA 16% 16% 15% 16% Food Basics 15% 13% 15% 16%

Although Millennials are operating on tight budgets, they are less likely than other groups to search flyers, promos and discounts in preparation for shopping trips.

Overall

Millennials

Gen X

Baby Boomers

I will stock up when one of my favourite products is on sale

87%

82%

87%

90%

I feel proud when I get great value for my money

87% 75%

86% 67%

88% 75%

87% 79%

I study flyers, promotions and discounts before my shopping trips grocerybusiness.ca

January | February 2017

67

In Other Words

CONSUMERS EMBRACE AN EXPANDING FOOD LANDSCAPE

Retailers are competing in a highly segmented market.

Source: Acosta; Technomic; % of U.S. Diners – M ethod of Food Consumption in the Past 3 Months

68

January | February 2017

1

#

CANADA’S CHEESE MANUFACTURER

*(1)

THINKING DIFFERENTLY ABOUT INNOVAT!ON

With powerhouse brands, a robust innovation pipeline and a consumer-driven mindset, Kraft Heinz Canada is committed to spearheading category growth.

*branded retail

This spring, Kraft Heinz Canada will

manufacturer,(1) and has proven that

launch 29 SKUs of Cheese innovation,

developing powerhouse brands means

all inspired by consumer and category-

committing to thinking big, challenging

driven insights. Kraft Heinz has stepped

conventions, and delivering better and

up its game as Canada’s #1 cheese

bolder ideas.

Expanding PHILADELPHIA Listening to Consumer Needs and Unlocking Category Opportunity Since 1872, the creamy taste of PHILADELPHIA has been a household favourite near and far. The brand is the category share leader, with 4 times the brand equity of its nearest competitor.(2) In March 2017, this loved and trusted brand is launching new innovation in cream cheese and beyond.

Convenient Wholesome Mornings The yogurt category is a $1.6-billion business, and growing(3), but over-indexes in its focus on kids.(4) PHILADELPHIA capitalizes on unique adult-focused positioning.

PHILADELPHIA VIVA Expands Drinkable Yogurt Category with Unique Adult Positioning Household type: buyer index(4) Younger Bustling Families

210.1

Older Bustling Families

180.4

Young Households

85.4

Independent Singles Senior Singles

Varieties: Vanilla, Blueberry, Strawberry Sold in 4-pack units

Category today: Over-indexes in kid-focus

60.5

capitalizing on category opportunity

44.8

INSIGHT

INNOVAT!ON

• 75% of consumers are looking

• Tying together category and consumer

for convenient and healthier

insights, PHILADELPHIA understands that

snack options , with protein

mornings can be hectic. Packing 8g of

and fibre being top

protein and 2g of fibre in every bottle,

considerations.

PHILADELPHIA VIVA’s protein yogurt smoothie

(5)

(6)

delivers a nutritious yet convenient fix.

Spiced-Up Snacking

INNOVAT!ON • Whipped to perfection with real milk and cream and no artificial colours, PHILADELPHIA is transforming the everyday snack.

INSIGHT • Snacking currently represents 67% of all food and beverage occasions, and is expected to grow to $12.6 billion dollars.(7) • Bold-flavoured snack launches are growing 36% YoY in North America (8), with Jalapeño, Sriracha and Pepper ranking within top 10 flavours among global cheese innovation.

Varieties: Jalapeño Cheddar, Cracked Pepper & Garlic, Creamy Sriracha

Everyday Permissible Indulgence INSIGHT

INNOVAT!ON

• Consumers are spending more

• PHILADELPHIA Cheesecake

on Refrigerated Ready to Eat

Crèmes are made with

products offering natural, less

PHILADELPHIA cream cheese,

processed ingredients.

real fruit and unsweetened

(9)

• The category is rooted in kid-focused lunchbox snacks or decadent indulgent desserts.(4) Varieties: Chocolate, Cherry, Strawberry

chocolate, and no artificial colour or flavours.

Canada’s #1 Natural Cheese Brand Continues Category-Leading Innovation! *(1)

CRACKER BARREL has been expertly crafting quality cheeses since 1954. Today, CRACKER BARREL is Canada’s #1 brand of natural cheese,*(1) and continues to bring Canadians new and exciting innovation. From classic block to convenient shreds, along with launching new formats this year, there’s a right cheese for every occasion. *retail brand

Consumers love the value-added “flip and shake” packaging.

Shaking Up the Dairy Case Feta is the 3rd largest natural cheese type, and outpacing category growth by 1.8x.(10) CRACKER BARREL is launching a convenient pre-crumbled and brine-free feta in a “flip and shake” package. Made with 100% Canadian milk, it offers a rich creamy texture and full flavour that consumers love!

CRACKER BARREL is scaling up feta in three delicious flavours: Original, Light and Herb & Garlic.

Key barriers to purchase Feta – accessibility and price – are addressed by CRACKER BARREL! (11)

“too expensive”

Varieties: Original, Light, Herb & Garlic

Expanding Growing Deli Flavours Across Dairy Formats

Lower ASP/lb vs top crumbled offerings in deli (12)

“not available where I shop”

“not familiar with the brands”

Increase accessibility by listing dairy

Leverage #1 brand of natural cheese to mainstream feta

Gone are the days when deli flavours were more exciting than dairy offerings! In the deli, spicy flavours are growing 18%, and herb & garlic is growing 7%.(13) CRACKER BARREL continues to pioneer the deli-to-dairy experience across multiple formats.

EXCITING NEW FLAVOUR LAUNCHES

BLOCK: Habanero 400g and 600g

SHREDS: Herb & Garlic 320g

SLICES: Herb & Garlic and Habanero 200g (11 slices)

CRACKER BARREL Natural Slices Just Got Bigger and Better OPPORTUNITY

INNOVAT!ON • New 360g size delivers on overall value and convenience. The product is offered in consumer-friendly re-sealable zipper packaging and customer-friendly retail-ready packaging.

• Large value-size formats in cheese are outperforming the category by +9 points.(14) • With its category and equity leadership, CRACKER BARREL is giving consumers more of the cheese slices they love!

Sales $

$ Chg

$%Chg

TL Nat Slices

174

19

12

0-200g

81

1

2

201-300g

44

9

25

300g+

50

9

21

(14)

Quebec’s #1 Natural Cheese is Going Big in 2017!

(1)

6 new launches, a new-to-retail shredded format, and a graphics refresh!

INSIGHT • P’TIT QUEBEC has an unmatched right to win!

- The #1 brand equity (13 pts above closest competitor).(15) - Buyer metrics outpacing category growth.(15) - Category-leading conversion funnel.(15) • Stronger cheese flavours (medium & old) are outpacing growth of milder flavours in Quebec.(16)

Varieties: Medium, Marble

INNOVAT!ON • P’TIT QUEBEC is providing more assortment options by launching Medium, Old, and Marble Cheddar varieties in block and shreds.

• P’TIT QUEBEC is also launching a 2x450g shredded cheese value format with new, first-to-retail packaging, in Quebec’s top 2 flavours.

• With 6 new launches and dedicated marketing support, Kraft Heinz Canada is investing to give Quebecois consumers more of the brand they love.

KRAFT SINGLES Brings a Bigger “Ooey Gooey” Melt with Bolder Flavours KRAFT SINGLES is the #1 sliced cheese (17) in Canada. Its signature “ooey gooey” melt satisfies comfort-food cravings in almost half of all households (4) coast to coast. However, little do most consumers know that Kraft Heinz Canada houses a special gem in Quebec: Extra Cheddar, a non-individually wrapped cheese sliced thicker than individually wrapped processed slices.

INSIGHT

INNOVAT!ON

• Opportunity to leverage Quebec

• Kraft Heinz Canada will

success nationally!

bring critical mass to the

• Extra cheddar is sliced 50% thicker

shelf with a proven product

and is a category-leading SKU

that has room to grow.

• This March, KRAFT

#3 CATEGORY (18) $ VOLUME

SINGLES is expanding this Quebecois treasure

#5 IN UNIT (18) SPPD

Region

%ACV

Quebec

97

Atlantic

39

Ontario

55

West

24

to the nation in four BOLD flavours. The thickest, cheesiest slice that brings adventurous flavour to every bite.

Varieties: Extra Cheddar, Sriracha, Jalapeño, Bacon

continues to spearhead category growth by delivering the brands consumers love with the innovation they want. Don’t miss out! Contact your Kraft Heinz representative for more information.

All products (except PHILADELPHIA Cheesecake Crème) start ship March 27th, 2017. PHILADELPHIA Cheesecake Crème starts ship February 6th, 2017.

SOURCES: 1. Nielsen MarketTrack L52W PE November 26, 2016 2. Cream Cheese Brand Health Study, Ipsos ASI, January 2016 3. Nielsen Strategic Planner, Yogurt Category, L52wks ending August 2016 4. Nielsen Homescan Consumer Facts, L52wks ending April 2, 2016 5. More consumers choose smoothies and juices for breakfast Jun 1, 2016 RH Editors http://restaurant-hospitality.com/consumer-trends/breakfast-think-smoothies 6. Mintel: Global Market Research & Market Insight http://www.mintel.com/blog/foodmarket-news/a-balancing-act-six-trends-in-snacking-for-2016 7. Ipsos FIVE Q’1/2/3/4 Data to period ending December 2013; Nielsen MarketTrack National All Channels + C&G - 52 week periods ending September 20, 2014 8. Mintel Consumer Data Charts PE 2014; Mintel Report, PE Jan 2013-August 2016, Flavours: Peppercorn, Jalapeno Cheddar, Chili

9. Nielsen MarketTrack, NAC, RRTE Category, L52wks ending May 28, 2016 10. Nielsen MarketTrack, L52W ending Oct 1, 2016 11. Ipsos IdeaFactory Research – Feta Cheese, 2011 12. Nielsen, L52 wks weekly periods ending Nov. 21, 2015 13. Nielsen MarketTrack, National, TL flavour growth across deli SKUs (incl. CL) L52 Wks Ending Oct 1 vs YA 14. The Nielsen Company, MarketTrack, National, 52 Weeks ending August 15. Ipsos BVC Study - Quebec 16. The Nielsen Company, MarketTrack, Quebec, 52 Weeks ending August vs YA 17. Nielsen MarketTrack Nat GDM Cheese Slices and Natural Slices YTD PE Oct. 2016 18. Nielsen MarketTrack All Sales - L52 wks, Period Ending 01Oct.16_1