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2018 ANNUAL REPORT

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MESSAGE FROM CHAIR MESSAGE FROM PRESIDENT & CEO BAC VOLUNTEERS CHAPTER REPORTS PUBLIC POLICY BAKERY SHOWCASE & CONFERENCE 2018 2018 SCHOLARSHIPS & BURSARIES INDUSTRY SNAPSHOT RECAP OF 2018 EVENTS BAC BAKING INDUSTRY SURVEY MEMBER BENEFITS

MESSAGE FROM THE CHAIR

MESSAGE FROM THE CHAIR Welcome to what we look forward to being the first of a long series of Annual Reports on the activities of the Baking Association of Canada. We hope that you as members and prospective members will find the following pages informative and enlightening on the activities of BAC on behalf of Canada’s bakers. BAC is a member-driven association. Our National Board of Directors, Committees and Chapters are made up of volunteers, who are the decision-makers for BAC. Here is just a snapshot of BAC’s governance structure:

National Board of Directors Composed of representatives from member companies, the Board is national in composition with representation from bakers, suppliers and tradespeople. The Board is responsible for establishing overall BAC policy on issues such as governance, operations, finance and public policy. Board Committees Within the Board there are a number of Committees with specific areas of responsibility. The Audit Committee is responsible for overseeing BAC’s financial practises including the annual audit. The Public Policy Committee guides the development of the association’s positions on broad-based public policy issues. The Membership Committee is responsible for member retention and enhancement. Lastly, the Executive Committee provides guidance to our President & CEO while working with the Board and Directors on ensuring achievement of BAC’s strategic objectives. Standing Committees BAC establishes a Standing Committee when it’s necessary to access specific industry expertise. BAC used this process to address broad-based industry issues such as Sustainability, Education Training, and on an ongoing basis, our Technical & Nutrition Policy Committee provides detailed analysis of regulatory proposal primarily at the Federal and sometimes Provincial levels. Chapters Regional or Provincial Chapter Committees develop and organize programming at the local level. Chapter programs range from educational seminars to social events such as golf tournaments and holiday socials. Chapters are also involved in providing both program guidance and funding to colleges with bakery programs. BAC Team BAC is fortunate to have a small, professional team working under the leadership of a President & CEO. The BAC team is responsible for implementing Board policy, acting as secretariat to Committees and assisting Chapters with program implementation. I hope the above has provided some insight on the depth of member engagement in BAC’s operations and governance. As I said at the beginning, BAC is member-driven and we encourage all members to get involved, to share your experiences, ideas and passion in support of our industry. If you are not currently a member we invite you to get in touch to further explore how your involvement with BAC can assist in personal/ professional development while also supporting our Canadian baking sector. Sincerely Tom Mattes, BAC Chair

MESSAGE FROM THE PRESIDENT & CEO

MESSAGE FROM THE PRESIDENT & CEO 2018 was an extraordinary year for BAC as organizationally we dealt with an onslaught of public policy issues, the likes of which have not been seen in the 20 years since BAC’s conception in 1997. Chief among these issues were programs, regulatory proposals and legislation stemming from Health Canada’s Healthy Eating Strategy. This report outlines in detail BAC’s representation on behalf of the industry on these issues including our response to Health Canada’s efforts to categorize bread and bread style products as unhealthy for children. Yes, you read correctly, Health Canada has actually launched a proposal that would declare 99% of all breads as unhealthy for children as part of its Restrictions on Marketing of Unhealthy Foods to Children initiative. BAC’s public policy efforts were not restricted to addressing food and nutrition concerns. BAC participated and took leadership positions in a number of organizations to advance the concerns of Canada’s baking sector. I had the honour of serving as Chair of the Healthy Grains Institute, Vice Chair of Provision Coalition, members of the Canadian Food Safety Supply Chain Coalition and organizationally we were active participants with a broad range of industry, health professionals and government organizations. Details on these activities are also within this report.

BAC TEAM Gillian Blakey Member & Events Administrator

Janice Fendley Trade Show Manager

Paul Hetherington President & CEO

Ahmed Mutaher Director, Business Development - Events

Johanne Trudeau

Director, Food and Nutrition Policy

Alongside our public policy initiatives, BAC produced numerous B2B and industry networking programs. In 2018, BAC’s Chapters produced a wide variety of social and education events attracting some 1,000 industry personnel from across the country. The proceeds from these events were in-turn reinvested in the industry via $35,000 in donations to local baking college programs. Bakery Showcase Trade Show and Conference saw the introduction of a new two-day format, which in response, saw a more than 8% attendance increase over the 4,500 attending in 2016. As I said at the beginning, 2018 was extraordinary and 2019, with a Federal Election in October, shows all the signs of building on last year’s demands. With continuing membership support, BAC through the leadership of the National Board, Chapters, and Committees stands ready to respond to these challenges. Paul Hetherington President & CEO

2018 BAC ANNUAL REPORT | www.baking.ca

BAC VOLUNTEERS

THANK YOU TO OUR VOLUNTEERS! 2018 ONTARIO CHAPTER COMMITTEE MEMBERS Dan Peroff (Chapter Chair) Olympic Wholesale Co. Ltd.

Jesse Lamb (Chapter Chair)

Vikram Chowdhury

Portofino Bakery

Redpath Sugar

Martin Barnett

Dieter Claassen

Vancouver Island University

2018-2019 BAKING ASSOCIATION OF CANADA BOARD OF DIRECTORS Chair

Tom Mattes Del’s Pastry Toronto, ON

Secretary Treasurer

Snow Cap Enterprises Ltd.

Lantic Sugar

Fionna Chong

Stepahnie Jewell

Vancouver Community College

Bakers Journal

Past Chair

Glenn Wilde Harvest Bakery Winnipeg, MB

Gary Humphreys

Roxanne Li

Louis Bontorin Calgary Italian Bakery Calgary, AB

Sheri Castellarin

Gary Franklin

Caldic Canada

Maxxam Analytics

President & CEO

Harry Kool

J C Madour

Paul Hetherington Baking Association of Canada Mississauga, ON

Cobs Bread

Lallemand Inc.

Jack Kuyer

Kate Nugent

Valley Bakery

Gala Bakery

Directors

Tony Llewellyn

Phil Robinson 6

2018 BRITISH COLUMBIA CHAPTER COMMITTEE MEMBERS

Snow Cap Enterprises Ltd.

Dawn Foods

Tess Mitchell

Frank Safian

L. V. Lomas

Caldic Canada

David Nolan

David Shutiak

Vancouver Island University

Packaging Machinery Concepts Ltd.

Kate Tomic

2018 ATLANTIC CHAPTER

Caldic Canada

Mike Raftus (Chapter Chair) Ardent Mills

Martin Barnett

Blair Hyslop

Vancouver Island University Nanaimo, BC

Mrs. Dunster’s Sussex, NB

Dominique Bohec

Carla Marett

Conseil de la Boulangerie du Quebec Granby, QC

Weston Foods Toronto, ON

Michel Dion

The Chefs’ Warehouse Vancouver, BC

Lallemand Inc. Montreal, QC

Denise Eddy Coleman Foods St. John’s, NL

Darrell Chapman Ardent Mills

Arthur Gunn

Yves Dastous AMCA Sales and Marketing

Gunn’s Bakery Winnipeg, MB

TECHNICAL & FOOD POLICY COMMITTEE

Christian Mitzel

Dan Peroff Olympic Wholesale Co. Ltd. Ajax, ON

Teresa Schoonings Bimbo Canada Etobicoke, ON

EX OFFICIO MEMBERS

Sheilagh Arney

Neelam Dhull

Mike Hudson

Tiffany Money

ADM

Give & Go Prepared Foods

Lallemand

Puratos

Jennifer Eynon

Marta Laszczewski

Carolyn O’Brien

Caldic Canada

(Chair) Bimbo Canada

Conseil de la Boulangerie du Québec

Rupika Malhortra

Brian Portteus

Weston Foods

Lee Sanders

Jenny Manalo

Rebecca Steen

American Bakers Association

Jennifer Bedworth Rich Products of Canada

Jessica Camua Weston Foods

Baharak Chegeni

Rich Products of Canada

Gord Harrison CNMA

Dimitri Fraeys de Veubeke

Tembi Harvey

Give & Go Prepared Foods

Caldic Canada

Backerhaus Veit

Rasma Zvaners

Jacinthe Côté

Give & Go Prepared Foods

Carla Marett

Dunja Sumanac TDL Group

American Bakers Association

Lallemand

Maria Darroch Puratos

Tanya Hook COBS Bread

Weston Foods

Al Mazrouy Del’s Pastry

Gozde Yamaner Give & Go Prepared Foods

CHAPTER REPORTS

2018 IN REVIEW ATLANTIC CHAPTER CHAIR Mike Raftus, Ardent Mills

ONTARIO CHAPTER CHAIR Dan Peroff, Olympic Wholesale

The BAC Atlantic Chapter held two key events in 2018, which brought together association members and their guests for good collaboration, fun and fellowship activity. The first event was BAC Hockey Night, held March 14th at the Halifax Mooseheads game. Our members and guests got to enjoy a great hockey event from the comfort of a private VIP Box at Scotiabank Centre. Adding to the fun, participants tried to predict the game’s outcome for a chance to win prizes.

The Ontario Chapter welcomed two new board members at the start of this year: Gary Franklin of Lantic Sugar, and David Shutiak with Packaging Machinery Concepts, both in valued membership roles. On the social activities front, the annual Night at the Races in March held strong as one of the best-attended spring events for our industry. The Bakery Showcase, hosted in Toronto this year, drew in many familiar faces from across Canada and was our largest-attended event to date. We also continued the tradition of holding our June Spring Golf Tournament at Carlisle Golf Course. While our numbers were slightly down from the previous year, the event was still considered a hit by all who came.

Our second Atlantic Chapter event was the annual BAC golf tournament, held in September at Mountain Woods Golf Club in Moncton. The weather was supportive with overcast skies and close to 50 golfers out to enjoy a day of scramble golf followed by a steak dinner and prizes at the reception. This is the fifth year we’ve been awarding the Snair Cup Championship Trophy in recognition of the late Greg Snair, principal owner of Snair’s Golden Grain Bakery and long-time BAC Atlantic Member. Blair Hyslop, owner of Mrs. Dunsters Bakery and Atlantic BAC Board Member, presented the trophy to the 2018 champions—my very own Ardent Mills’ team, which included myself, Darrell Chapman, Alan MacDonald and Yves Dastous. Finally, I would like to thank the association sponsors and attendees for their participation in the 2018 BAC Atlantic Chapter Activities and look forward to all their continued support throughout 2019.

In September, the Fall Golf Tournament at Station Creek golf course went extremely well. As most of you know, the Ontario Chapter has been hosting two separate golf tournaments for the past 50 years, the first organized by BPCO (Bakery Production Club of Ontario) and the second, Allied Trades of Ontario. For 2019 the Chapter has voted to merge these two tournaments into one larger event. We look forward to sharing the results of this merger. On the education front, we have continued with our support of the Ontario Colleges by sponsoring many students in their endeavours to become bakers for our trade. This is still our central focus in helping us grow the industry. Finally, the year wrapped up with the annual “Holiday Social” at the end of November. With its “Hawaiian Christmas” theme, we have no doubt those who attended enjoyed the Hawaiian dancers, festive foods and networking opportunity the event provided.

2018 BAC ANNUAL REPORT | www.baking.ca

CHAPTER REPORTS B.C. CHAPTER CHAIR Jesse Lamb, Portofino Bakery As B.C. Chapter Chair, I would like to start off by thanking our Chapter Committee Members for their hard work in helping to promote and strengthen our baking industry. Our B.C. Chapter mandate is to hold two educational workshops and two social events per year. For our spring 2018 educational activity, we sponsored a BAC Spring Educational Bus Tour to Rogers Flour Mill and Vanderpoll Eggs back in April. With a bus full of baking students, it was an informative and fun day for all. In June we put on our annual BAC B.C. Chapter Fundraising Golf Tournament. With an increase in sponsors, a host of new prizes and a turnout of 79 players, it was a great networking event for everyone involved. In October at Vancouver Island University, our Fall Workshop featuring Tracey Muzzolini from Christies Mayfair Bakery in Saskatoon was attended by 50 registrants. This was one of our most talked about events, and an informative afternoon of baking and demonstrations that proved these workshops do not disappoint! Our Festive Night at the Races, held on November 23rd, was not only well-attended but a great evening of horse-racing and networking. At the B.C. Chapter, our main focus is to promote our baking industry, schools and our students. Our Chapter believes that our contributions, student bursaries, and three renewed scholarships will play a role in helping to attract quality people to our industry. 8

The B.C. Chapter has also added a new scholarship at Vancouver Community College and Vancouver Island University. Without the $10,000 we received in donations this year towards baking education programs none of this could have been possible, so thank you to our generous B.C. Chapter Sponsors.

CONSEIL DE BOULANGERIE QUÉBEC A member of BAC, the Conseil de Boulangerie Québec brings together members of the bakery and confectionery sector of Quebec’s food processing industry. Boulangerie Québec’s mission is to support the development of member companies and to represent all grain processors in the food processing industry while representing the industry to government.

2018 BAC ANNUAL REPORT | www.baking.ca

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PUBLIC POLICY

2018 PUBLIC POLICY REPORT Throughout the past year, BAC has continued to strengthen and develop trusted relationships with representatives at Health Canada, CFIA and the Senate. With proactive discussion and scientific data, BAC was called to shape and influence public and food policy in Canada. HEALTH CANADA Front of Package Labelling (FOP) BAC continues to strongly oppose the proposed FOP symbols. The criteria that trigger the FOP is based on 15% of the DV, which according to Health Canada, is a “rule of thumb”—meaning unscientific criteria.

BAC’s own analysis has shown that about 30% of pantry breads, buns and rolls will carry a FOP for sodium as will 100% of baguettes and ciabattas. Sweet goods will carry a FOP for either sugar or saturated fat or both. BAC, including its largest members, participated in a packaging expert workshop which highlighted more issues—including feasibility and financial issues that could lead to lowering the offering of food products to Canadians with the proposed regulations for which Health Canada does not have a solution. Partially Hydrogenated Oil Prohibition (PHO) As of September 17, 2018, the prohibition of the use of PHO came in effect, which did not have much of an impact on bakers since they had already voluntarily and proactively removed PHO from their products. Sodium Bakers contributed to the voluntary sodium reduction targets from 2010 to 2016. Breads and baked products are among the 26 categories that met Phase 1 in the three phases of sodium reduction. Bakers are collaborating with Health Canada in the development of the next stage for voluntary sodium reduction in Canada. Health Canada published the report on sodium intake in Canada, which showed that since 2010, the average daily sodium intake of Canadians has reduced from 3,400 mg to 2,760 mg. This drop represents a 60% advancement towards Health Canada’s target of 2,300 mg/day. Canada’s sodium reduction has outpaced other jurisdictions, such as the UK where after 11 years of sodium reduction education campaigning and industry voluntary initiatives, the daily intake still exceeds 3,200 mg. Similarly, the current

2018 BAC ANNUAL REPORT | www.baking.ca

PUBLIC POLICY

US daily sodium intake is estimated at 3,400 mg. Bakers contributed significantly to that decrease in sodium intake by almost doubling the food industry average sodium reduction of 8%. Between 2009 and 2015 sodium levels were reduced in white pantry breads by 13% and wheat pantry breads by 16%, even though sodium is an important functional ingredient. Canada’s Food Guide Bakers participated in various consultations on Canada’s Food Guide, fundamentally disagreeing with Health Canada’s narrow approach to healthy eating, which simplifies the cause of obesity to higher intakes of sugar, sodium and saturated fat. BAC quoted the McKinsey Global Institute report on obesity, saying: “Obesity is a complex, systemic, multi-causal problem, rooted in the sedentary nature of modern postindustrial life, more widely available and more affordable food, a change in the nature and mix of diets, psychological stimuli such as stress and epigenetic triggers, and potentially even physiological disruption to the gut microbiome.” Eat a variety of healthy foods each day

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Eat protein foods

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Prohibition of Marketing to Kids Marketing to kids became a major issue for bakers when Health Canada introduced new criteria to define unhealthy foods. That criteria, based on nutrient content claims for sugar, sodium and saturated fat, signifies that 99% of all breads, including whole grains, whole wheat and white, will be declared unhealthy due to sodium content. BAC demonstrated that the criteria used to define unhealthy for children is unscientific, unique in the world, restrictive and not intuitive. BAC appeared twice in front of the Senate to influence changes on S-228 including removing “unhealthy” and keeping the Act closer to the language on the Quebec prohibition. BAC worked in collaboration with other allied associations to re-write S-228 in order that bakery products would not be judged nutritionally based on three nutrients.

Canada.ca/FoodGuide

BAC also defended enriched grain products as a great source of folic acid citing Canadian public health studies that show that this measure has increased folate intake and improved folate status in Canadian women of childbearing age. BAC has researched the positive health outcomes of folic acid fortification, sharing that since it was introduced in 1998, it has saved more than 5,000 children and families from the nightmares of Neural Tube Diseases with a corresponding estimated savings to the Canadian healthcare system between $3.5 and $4.5 billion in direct cost, not including billions more in indirect and opportunity costs. While Canada’s Food Guide, launched in January 2019, encourages whole grains consumption, BAC notes that it does not promote negative messages about enriched flour.

BAC shared with the Senate and Health Canada research findings from University of Saskatchewan’s 2015 Canadian Community Health Survey (CCHS-2015) demonstrating that bread provides nutrient density in the diet of children 2-13 years of age. For about 10% of energy and 14% of sodium, breads contribute 21% of dietary folate, 19% of iron, 18% of dietary fibre, 18% of thiamin, 13% of niacin, and 11% of riboflavin in the total diet of children.

Eliminating breads from their diets, solely due to sodium contribution, may have unintended nutrient intake and public health consequences in Canadian children. In addition adding breads to the restricted foods list may lead to unintended nutrient and diet quality consequences in several populations (i.e. children and women of child-bearing age). Edible Cannabis BAC consulted with the membership regarding the consultation in Canada Gazette Part I to allow the production and sale of Cannabis Edibles in Canada by October 17, 2019. The proposed regulations are cost prohibitive for the majority of members mainly because of the requirement for a separate manufacturing facility and for single dose packaging.

2018 BAC ANNUAL REPORT | www.baking.ca

PUBLIC POLICY

CANADIAN FOOD Safe Food for Canadian Regulations INSPECTION AGENCY BAC has been very active in supporting the development and coming into force of the Canadian Food Inspection Agency (CFIA) Safe Food for Canadian Regulations (SFCR). As a member of the former CFIA Ad-Hoc Industry Advisory Committee, BAC was the voice of bakers to the CFIA ensuring that requirements under SFCR were realistic and feasible while ensuring a strong food safety program. The final regulations were published in June 2018 and before they came into force this January, BAC arranged for the board of directors to meet face-to-face with representatives of CFIA to express their concerns directly and to hear CFIA responses to their questions. Of interest to BAC members is the exemption to the SFCR requirements that applies to online orders. BAC continues to be the link between CFIA and BAC members on upcoming issues and questions to allow a smooth implementation of the new regulations and encourage compliance.

Labelling Tool With the new nutrition labelling regulations published, it is essential for bakers to consult CFIA labelling guidance before making any changes to package labelling. BAC had been advocating CFIA to publish its labelling guidance in the online industry tool way in advance of the coming into force of Health Canada’s new labelling regulations in December 2022. In May 2018, the CFIA published the updated Industry Labelling Tool (ILT) to reflect the December 14, 2016 amendments to the Food and Drug Regulations related to nutrition labelling, list of ingredients and food colour requirements. Open Transparency Consultation BAC commented on “Enhancing Openness and Transparency at the CFIA” recommending a complete and more detailed consultation was necessary in order to provide educated comments and proper guidance to the Agency. BAC provided support to the Canadian Supply Chain Food Safety Coalition and added comments regarding public and stakeholders’ access to inspection reports – especially when it comes to non-health and safety issues, in order to protect confidentiality of inspection reports regarding members’ business. BAC pointed out that currently its members experience different interpretations of the guidance by different inspectors leading to different rulings. Not only should the CFIA inspectorate be consistent using the same interpretation of the guidance documents, these documents should also be available to industry. Labelling Modernization Throughout consultations during the past four years, BAC has maintained close connections with its members’ needs and expectations in order to avoid unnecessary regulations under the CFIA Labelling Modernization. While waiting for the proposed regulations, BAC continues to put pressure on CFIA to align with Health Canada’s timing for implementation of the Nutrition Labelling new regulations and to provide flexibility to industry in the development of new labelling requirements and in updating current labelling requirements.

2018 BAC ANNUAL REPORT | www.baking.ca

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PUBLIC POLICY

TREASURY BOARD REGULATORY REVIEW OF THE AGRI-FOOD SECTOR

The Government of Canada via the Advisory Council on Economic Growth and the 2017 Federal Budget recognized Canada’s Agri-Food industry as a strategic growth sector for the Canadian economy. However, while the Council’s “Unleashing the Growth Potential of Key Sectors, Advisory Council on Economic Growth February 6, 2017” recommended steps to be taken to identify the most important obstacles to growth and to take clear policy actions to overcome these obstacles, Canada’s regulatory environment has hindered such a renaissance. BAC joined the Canadian National Miller Association to respond to the consultation, highlighting the concerns of the Canadian baking and milling industries regarding the regulatory development process as a result of engagement with Health Canada’s Healthy Eating Strategy, the Safe Food for Canadian Regulations and other regulatory modernization activity of Health Canada and the CFIA.

Some of the key issues that were brought forward in this consultation include:

• the lack of macro strategic oversight of the multitude of regulatory initiatives impacting sector growth; • the lack of evidence-based information to support regulatory development; • the repetitive and contradictory regulatory proposals; • not using the most recent evidence in support of regulatory rule-making (i.e. not referring to the most recent 2015 Canadian Community Health Survey to support their assumptions; • submitting cost-benefit analysis that lacks consistency, completeness and transparency; • and lastly, not providing accountability and transparency in measuring stated regulatory objectives.

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PUBLIC POLICY

ISSUES MANAGEMENT

Throughout the past year BAC defended the position of bakers against a list of issues that impact their business. 1. GMO Labelling BAC continues to participate in roundtables in anticipation of GMO labelling in Canada and measuring the impact of GMO labelling regulations for bakers’ products exported to the US. 2. Food Policy in Canada BAC continues to demand a Food Policy in Canada that supports the bakery industry and opposes proposed taxation for “unhealthy foods.”

3. Glyphosate Glyphosate is one of those issues that is beyond the control of bakers but that impacts their business. BAC monitors the issues from a North American point of view and keeps the membership informed on a regular basis. 4. BHT In the past year, Health Canada requested information from bakers on their use of BHT. BAC was happy to report back that there are insignificant levels of BHT in finished baked goods. 5. Potassium Chloride Sodium reduction in breads is not easy given the essential role of sodium in baking. There is an opportunity for bakers to substitute salt with potassium without changing the taste and texture of breads. However the name of the substitute is potassium chloride, which is not friendly especially for an industry trying to adopt a clean label to meet consumer needs. BAC has supported an initiative to change the name of potassium chloride to potassium salts, which would give bakers a better opportunity for salt replacement in their continued commitment to lowering sodium in their products.

BAC CONTINUES TO DEMAND A FOOD POLICY IN CANADA THAT SUPPORTS THE BAKERY INDUSTRY AND OPPOSES PROPOSED TAXATION FOR “UNHEALTHY FOODS”

2018 BAC ANNUAL REPORT | www.baking.ca

PUBLIC POLICY

BAC is also a member and takes leadership roles in a number of groups that support the interests of Canada’s baking community. HEALTHY GRAINS INSTITUTE

The Healthy Grains Institute (HGI) was the first organization in Canada to provide a unified, national and scientifically backed voice supporting grain-based foods. The HGI was created in November 2012, and successfully delivered on its mandate to promote the science-based health benefits of grains, adding an important voice to Canada’s conversation about healthy eating. BAC’s President & CEO Paul Hetherington served as Chair of the Board for 2017 & 2018. Key HGI achievements include:

• Articles in scientific journals challenging misinformation in William Davis’s Wheat Belly • Proper representation of the science-based health benefits of grains in an hour-long CBC The Fifth Estate segment “The War on Wheat”, reaching 2.5 million viewers • Production of numerous free communication tools for the industry • Responses to the Senate Standing Committee on Obesity and to the Minister of Health correcting inaccurate claims • Sharing a new University of Saskatchewan study on nutritional benefits of both whole and enriched grains

At the end of 2018 HGI ceased independent operation and transferred its assets to Cereals Canada which is continuing this work.

PROVISION COALITION

Provision Coalition made significant progress over the past year in supporting the sustainable and profitable growth of the F&B manufacturing sector. This included:

• Preventing food loss and waste by initiating 35 assessments across Canada through a cost-share program with the Walmart Foundation. The average cost savings found was $335,000! • Delivering Provision’s Purpose to Profit program in partnership with the Ontario Trillium Foundation. Average revenue increase and cost savings was 5 to 10% per company! • Through the Canadian Agricultural Partnership, Provision Coalition: • Completed a feasibility study to determine if its KPI Dashboard could be used to aggregate carbon reduction to issue offsets; • Established an Executive Collaborative to provide professional development and facility tours to support collaboration; • Evaluated the use of data loggers to stream live energy and water data directly to Provision’s KPI Dashboard; • Executed a two-day conference for 145 stakeholders on Using the Power of Data for Making Food Sustainably.

2018 BAC ANNUAL REPORT | www.baking.ca

PUBLIC POLICY

THE CANADIAN SUPPLY CHAIN FOOD SAFETY COALITION

Activities throughout 2018 focused on the finalization of the Safe Food for Canadians Act regulations and in charting the course forward. With the publication of the Canada Gazette Part I version of the regulations in early 2017, the Coalition identified a significant number of deficiencies and subsequently proposed changes. In 2018 when it became evident that few, if any, of the proposed changes were to be included, the Coalition developed a 10-point plan for moving forward and wrote to the Minister of Health requesting firm assurances that a “second round” of legislative, regulatory and policy initiatives would be announced and commence immediately upon the publication of the revised proposed regulations in the Canada Gazette Part II. The Minister responded positively and the Coalition supported the final version of the regulations published in June. On a parallel track, the Coalition responded to members’ concerns about the use of risk management tools—i.e. a food safety objective (FSO) of “less than detectable” presence of a pathogen—as a sign that Health Canada and CFIA would be using these tools in the new “outcome-based” food safety regime without a clear set of policies and procedures. The need for a government/industry dialogue was identified and plans were put in place for holding this in 2019.

Stay up-to-date with BAC’s public policy efforts. For questions or concerns, please visit www.baking.ca or email us at: info@baking.ca

SPONSORED CONTENT

THE FUTURE OF BREAD, INSPIRED BY THE PAST Consumer tastes vary widely, but when it comes to bread the consensus is clear. With appetites turning towards traditional tastes and more natural ingredients, sourdough is fast becoming the ingredient of choice. “In our research, it is clear that breads based on natural fermentation, that have always been part of our history, are also the future,” says Danielle Aucoin, Product Manager Bakery with Puratos Canada. Indeed, in Puratos wide-scale study of Canadian consumers, 68% of respondents said they believed traditional processes are natural and easier to understand than modern methods, which were perceived as artificial. Moreover, in a 2018 survey of 175 chefs, restaurateurs, and food experts, fermented dough was named among the year’s top food trends. “Once the favourite of a selected few, sourdough has emerged as the most fashionable loaf. Its crackling crust, addictive tang and complex flavour are now becoming adored worldwide,” Danielle Aucoin adds. A rising legacy Known by many names (levain, masa madre, lievito naturale or Sauerteig), sourdough is a natural leavening ingredient consisting of flour and water. It consists of micro-organisms that use the starches and minerals found in flour to ferment and increase the volume of bread, while organic molecules create the flavours. This natural form of leavening enhances the taste and nutritional value of baked bread products. It also enables bakers to vary their breads, as different types of sourdough bring out different product qualities. The popularity of sourdough is nothing new. Its origins date back to the times of ancient Egypt when it quickly became a

staple of early leavening techniques. Over the generations, sourdough methods and recipes have been passed down through generations around the world. While other breads and artisanal options have come to the forefront, Aucoin says sourdough has remained undeniably classic: “When we asked consumers to describe their favourite breads, they continuously referred to bread from the good old days, when grandma pulled it fresh out of the oven and onto the kitchen table. Unfortunately, there was no consensus about what this bread looked like.” Preserving the past Puratos has spent the last several years researching the history of sourdough and its many variations. That research has led it to several exciting finds, including a 37 BC text by Horace, the book of Satires, which alluded to “Altamura” bread as being the best in Horace’s region of Italy. “In the case of Altamura, up to 400 micro-organisms could have possibly been responsible for this great fermentation and thus, the profile of this bread,” explains Aucoin. “Therefore, Puratos collected these micro-organisms, tested them in breads, had them evaluated by consumers through our sensory analysis research and as a result, 40 micro-organisms compatible with today’s taste preferences were retained.” This research inspired Puratos to open its Sourdough Library at the Center for Bread Flavour in Saint-Vith, Belgium. Launched in 2013, the non-profit library is dedicated to the conservation and promotion of sourdoughs from all over the world. To date, it has collected over 100 sourdoughs. In

2018, two Canadian sourdoughs were added to the collection: one was a 120-year-old sourdough from Yukon (#106) and the other is Blackbird Bakery’s sourdough (#105) from Toronto. “We aim to preserve the biodiversity of leaven agents and the know-how on using sourdough in the bakery,” says Aucoin. “It is Puratos’ way of contributing to the wonderful world of natural ferments and the technology of fermentation while guaranteeing bakers the safeguard of their sourdough. It also helps us to become better at our job, thanks to the study of their composition.” The Bread for the Future, inspired by the past The enduring popularity of sourdough has inspired many in the baking industry. For Puratos in particular, it has led to the creation of not only the company’s Sourdough Library, but its Sapore line of ready-to-use sourdough flavours, its sourdough-based O-tentic active ingredient, and its Softgrain line of ready-to-use tender whole grains and seeds enriched with natural fermentation flavours. “We are convinced that The Future of Bread Lies In Its Past,” says Aucoin, adding, “We continue to work with our customers to create tasty, high-quality breads that remind consumers of the good old days.”

Catered tastes According to Puratos Canada’s research, 62% of Canadian consumers are willing to pay more for artisan, handcrafted products. For sourdough ingredients, recipes, and more information visit Puratos.ca.

Puratos Clean(er) Label

SIMPLY BETT(ER)

Looking to clean up your labels? Puratos strives to be your partner in clean(er) label for bakery and patisserie through innovation and renovation without compromising on quality, taste, texture, safety and visual appeal throughout the shelf life of our products. Discover our range of Clean(er) Label solutions such as improvers, bread mixes, sourdoughs, enzyme technologies, fillings, chocolate, glazes, cake mixes and icings. We are able to help create shorter and clearer ingredient lists for your breads and sweet goods.

For more information, visit puratos.ca or contact a Puratos Sales representative.

BAKERY SHOWCASE & CONFERENCE 2018

HIGHLIGHTS FROM CANADA’S NATIONAL BAKING INDUSTRY EVENT Drawing more than 4,500 baking and food industry professionals from across Canada and beyond, the 2018 Bakery Showcase & Conference in Toronto was a huge success. Exhibitors were up by 10% and attendance was up by 8%, while more than 400 booths occupied the 100,000 square-foot trade show floor. 20 countries were represented throughout the two-day event, held April 29th & 30th at the International Centre. The Show featured a range of companies including manufacturers, marketers and distributers of baking goods, services and supplies. Exhibitors benefitted from the opportunity to meet and conduct business with food industry buyers and professionals from all across North America. The bustling trade show floor provided a great space to showcase new products, hand out tasty samples, demonstrate equipment, launch merchandise, and attract new and old customers alike.

Attendees benefitted just as much from seeing the latest technology, connecting with peers, sampling products and gaining insight into the emerging trends and opportunities that will be impacting business in the upcoming years. With the support of Ontario Ministry of Agriculture, Food & Rural Affairs (OMAFRA) a new Ontario Bakery Pavilion featured small- and medium-sized bakeries—an addition that was deemed a tremendous success. The ever-popular College Creative Challenge returned with Baking & Pastry Arts students from Centennial, George Brown, Georgian and Humber Colleges competing in a fun, friendly competition. Congratulations to George Brown College for being recognized by attendees as this year’s winner.

Thank you to our Bakery Showcase 2018 Sponsors: Platinum Sponsors

2018 BAC ANNUAL REPORT | www.baking.ca

Gold Sponsors

BAKERY SHOWCASE & CONFERENCE 2018 10% Services

Ingredients 36%

EXHIBITOR PROFILE % by product category

Finished & Frozen Baked 12% Goods

38% Equipment

4% Decorations

Foodservice 14.5%

Foodservice

Bakers/ Retailers Bakers/ Foodservice Retailers 82% Foodservice

Other Bakers Other 5.5% Bakers

Grocery Head Ofﬁce In-Store Grocery Head 4% Ofﬁce In-Store

5.5%

MORE 2018 HIGHLIGHTS: Government/

10% Media/Schools/Other

Government/

10% Media/Schools/Other

14.5%

AUDIENCE PROFILE AUDIENCE % by business PROFILE

82%

% by business

Retail Bakers 38% Retail Bakers 38%

Suppliers

Wholesale/

20% Commercial/

Volume Bakers Wholesale/ 20% Commercial/ Volume Bakers

20%

Sales/Marketing

20%

Manager/ 15% Supervisor Manager/ 15% Supervisor

10% Other*

AUDIENCE PROFILE AUDIENCE % by occupation PROFILE % by occupation

provided 100,000 square feet of trade show floor space, conveniently located just minutes from Toronto Pearson International Airport.

• International representation included the Fédération des Entreprises de Boulangerie France (FEB) delegation led by Matthieu Labbe, a Brazilian business delegation exploring potential partnerships, and a trade mission of bakers and pastry apprentices from Nice, France.

23 23

• The Puratos Sensobus “Sensory Lab on

10% Other* Sales/Marketing

• The International Centre in Mississauga

Owner

35% Partner Part

President Owner

35% Director Part Partner

20%

President Director

Wheels” was a great addition to the Show. The Sensobus is a newly refurbished, fully equipped mobile sensory lab used to target demographics, determine preferences, and understand consumer buying habits.

• This year, some 350 attendees offered their perspective on sourdough and salt reduced breads.

Baker/Chef/Cook/ 20% Decorator/Pâtisser Baker/Chef/Cook/ *Plant Operations/ Engineering/Technical Service Rep R&DDecorator/Pâtisser Companion/ Family/Teachers/ Students *Plant Operations/ Engineering/Technical Service Rep R&D Companion/ Family/Teachers/ Students

WE LOOK FORWARD TO BAKERY SHOWCASE 2019 ON MAY 5TH & 6TH AT THE PALAIS DES CONGRÈS DE MONTRÉAL. Silver Sponsor

Media Sponsors

Premier Media Sponsor

2018 BAC ANNUAL REPORT | www.baking.ca

2018 SCHOLARSHIPS & BURSARIES

INVESTING IN THE FUTURE Supporting Tomorrow’s Bakers Today!

BAC and its Chapters are proud to provide support for Canada’s baking colleges through ongoing volunteer commitments and funding. Collectively, our Chapters contribute upwards of $30,000 annually towards student scholarships and baking programs that help develop new talent, instill a passion for baking in young people, and foster long-term industry growth. B.C. CHAPTER Along with renewing three scholarship programs in 2018, the B.C. Chapter contributed funds towards baking programs offered at Vancouver Community College (VCC) and Vancouver Island University (VIU). At VCC, a $750 scholarship was awarded to Queenie Li who was chosen as 2018’s most promising full-time student.

BAC’s contributions in 2018 also helped finance an “Industry Night” dinner, as well as a student field trip to Rogers Flour Mill and Vanderpol Eggs.

ONTARIO CHAPTER

Home to several colleges known for their baking and pastry arts programs, Ontario is raising a fine batch of future bakers. In 2018, the following students received scholarships:

• Luis Romero and Victoria Clayson of Niagara College’s Baking and Pastry Arts Program • Marina Guadagnali and Wendy Ling Yang of the Culinary and Baking Arts Program at George Brown College • Kelsey Mercer and Dan Luo of Algonquin College’s Baking and Pastry Arts Program • Brianna Ford, Tia Misty and Aditi Himanshu Shirmal of Humber College’s Baking and Pastry Arts Management Program • Kimberleen Barbadillo and the late Cathy Blenman who attended the Baking and Pastry Arts Management Program offered at Centennial College

Baking and pastry arts programs combine hands-on training with the business skills necessary to work in a bakery or restaurant. Courses typically include:

NUTRITION

BAKING AND INGREDIENT THEORY

BREAD AND DESSERT MAKING

CAKE DECORATING

EQUIPMENT USED IN RESTAURANTS, HOTELS, BAKERIES AND PASTRY SHOPS

PASTRY PRODUCTION

PLACEMENT OPPORTUNITIES

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INDUSTRY SNAPSHOT

SPOTLIGHT ON CANADA’S BAKING INDUSTRY Healthy eating trends and shifting consumer tastes were at the forefront of baking industry challenges and opportunities in 2018. With nutritional concerns driving more Canadians to seek out healthier alternatives, the industry responded with a variety of whole grain and organic options to meet this growing demand.

“The biggest challenge that the baking industry still faces moving forward is the perception that wheat-based products and the methods used by industrial bakers contribute to health issues,” said Martin Barnett, Principal at Seraphina’s Oven, Director of the BAC Board of Directors and Adjunct Professor with Vancouver Island University, Professional Baking and Pastry Program. “Successful companies will recognize that traditional baking methods incorporating whole grains and long-fermentation processes contribute to a healthy diet.” The elimination of ersatz ingredients and a move away from chemically enhanced growing methods for cheaper grains will also position the industry to regain the trust of the consumer, he noted—adding that, “Proper training and remuneration of bakery workers is an essential component to ensuring the healthy survival of the Canadian baking industry.” Sodium reduction and the need for science-backed government policies are what marked 2018 for Teresa Schoonings, Senior Director, Government Relations & Sustainability at Bimbo Canada. “Over the past couple of years, BAC has been significantly engaged on Health Canada issues related to sodium reduction in the bakery category and lobbying Health Canada for science-based policies related to their Healthy Eating Strategy,” she said. “This has included providing Health Canada with clarification of the challenges our industry faces in reducing sodium across the category, while also providing a forum for industry experts to share information. We highly leverage the insights of BAC’s Scientific and Technical Committee and rely on BAC to support our lobbying efforts related to key issues impacting the bakery industry.”

BAC EVENTS RECAP

“HEALTHY LIVING” GOALS AND ATTITUDES THAT MOST IMPACTED BAKERS IN 2018:

BAC EVENTS RECAP BAC is proud to host a variety of industry events each year. These annual gatherings provide a wonderful opportunity for members to come together and build new relationships; learn about new policies and baking techniques; expand their networks; or simply reward themselves for a job well done. Industry veterans and newcomers alike benefit from engaging with industry peers, and 2018 saw a great turnout! Our event line-up included:

SALT REDUCTION

TRADESHOW & CONFERENCE

The largest and only baking industry B2B tradeshow produced in Canada, drawing over 4,500 industry professionals.

SPORTING EVENTS

From hockey to horseracing, our BAC Chapters love nothing more than to host a fun night out at a thrilling venue for members and their guests.

EDUCATIONAL OPPORTUNITIES

Nothing benefits baking professionals like learning from the best. Whether it’s a night out to see a guest speaker or a live demonstration, opportunities to learn abound.

GOLF TOURNAMENTS

From B.C. to Atlantic Canada, BAC members love to golf…and our attendance at our various golf tournaments prove it.

HOLIDAY PARTY

The final festive party of the year, featuring food, fun, and live entertainment.

SUGAR REDUCTION

TRANS FAT ELIMINATION

ORGANIC

HIGH PROTEIN

NON-GMO

2018 BAC ANNUAL REPORT | www.baking.ca

BAC BAKING INDUSTRY SURVEY

THE INDUSTRY SPEAKS! In March of 2019, BAC conducted a membership-wide survey to compile current data reflecting perceptions, opportunities, trends and challenges facing the Canadian baking industry today. Thank you for your participation! With close to 400 respondents in total (60% bakers, 40% suppliers) the results are in, and it seems Canada’s baking professionals are resoundingly optimistic about the future of the industry. The following pages offer a snapshot of the feedback we received. 28

SUMMARY OF RESPONDENTS: COMMERCIAL/WHOLESALE:

47%

RETAIL/STORE FRONT/FRANCHISE:

BAKERS:

222 (60%)

IN-GROCERY STORE:

BAKING INGREDIENTS:

61%

BAKING EQUIPMENT/TECHNOLOGY:

SUPPLIERS:

151 (40%) 2018 BAC ANNUAL REPORT | www.baking.ca

51%

BUSINESS/SERVICES:

15%

24%

BAC BAKING INDUSTRY SURVEY

BREAKDOWN OF ROLES: OWNERS/PARTNERS/PRESIDENTS/MANAGERS & SUPERVISORS

(46%) FOLLOWED BY TECHNICAL SERVICE REPRESENTATIVES (10%). REPRESENTED THE LARGEST GROUP OF RESPONDENTS

41% OF RESPONDENTS SAID THEIR BUSINESSES OPERATE INTERNATIONALLY; 18% DOMESTICALLY AND 41%

TOP 4 REASONS FOR BEING OPTIMISTIC INCLUDE: NEW AND INNOVATIVE PRODUCT OFFERINGS

PROVINCIALLY, WITH THE MAJORITY BASED IN ONTARIO, FOLLOWED BY QUEBEC AND B.C.

GROWTH IN SALES

OPTIMISTIC OR PESSIMISTIC?

342 RESPONDENTS WHO COMPLETED THIS SECTION, THE LARGEST GROUP (49%) SAID THEY ARE “SOMEWHAT OPTIMISTIC” ABOUT THE FUTURE OF THE INDUSTRY, WHILE 39%

INCREASED CONSUMER DEMAND

OF THE

SAID THEY WERE “VERY OPTIMISTIC”.

ONLY

INFLUX OF NEW/YOUNG ENTREPRENEURS

12% OF RESPONDENTS COMBINED INDICATED THEY WERE

“SOMEWHAT” OR “VERY” PESSIMISTIC.

2018 BAC ANNUAL REPORT | www.baking.ca

BAC BAKING INDUSTRY SURVEY TOP 4 REASONS FOR BEING PESSIMISTIC INCLUDE:

ARE YOU OPTIMISTIC OR PESSIMISTIC ABOUT FUTURE OF THE CANADIAN BAKING INDUSTRY? Very Pessimistic Somewhat Pessimistic

Very Optimistic

LABOUR AND WORKFORCE CHALLENGES

Somewhat Optimistic

LACK OF SALES GROWTH 30

CHALLENGE OR OPPORTUNITY? OF THE

278 RESPONDENTS WHO COMPLETED THIS SECTION,

“FOOD SAFETY” EMERGED AS THE TOP OPPORTUNITY FOLLOWED ADVERSE GOVERNMENT RELATIONS

BY SUGAR, SODIUM AND FOOD WASTE REDUCTION. OTHER OPPORTUNITIES CITED INCLUDE: TRANS-FAT ELIMINATION AND SUSTAINABILITY.

DIET TRENDS

SURPRISINGLY, EDIBLE CANNABIS RECEIVED THE FEWEST NUMBER OF VOTES WITH JUST

5% INDICATING THIS AS A

FUTURE BUSINESS OPPORTUNITY.

LABOUR AND WORKFORCE REPRESENTS THE PRIMARY CHALLENGE AS WE HEAD INTO 2019.

2018 BAC ANNUAL REPORT | www.baking.ca

FUTURE OPPORTUNITIES: Sodium Reduction Sugar Reduction Trans Fat Elimination

Your best choice for eggs.

Food Safety Food Waste Reduction

Burnbrae Farms is a 5th generation Canadian egg business, owned and operated by the Hudson family.

Sustainability Plant Protein or High Protein Products Edible Cannabis Organic Products & Ingredients Non-GMO Products & Ingredients Carbon Foot Print Reduction

Proud suppliers of innovative premium quality egg products.

Clean Label 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Thank you for taking the time to share your thoughts. If you were unable to participate in the survey or have more to add to the conversation, please email us at: info@baking.ca.

burnbraefarms.com 2018 BAC ANNUAL REPORT | www.baking.ca

BAC MEMBER BENEFITS

BAC MEMBER BENEFITS As Canada’s baking industry not-for-profit trade association, BAC represents the country’s $8 billion baking industry comprised of retail, in-store and commercial bakers and industry suppliers. Our members produce roughly 75% of the nation’s breads and rolls, cakes, pastries, cookies and other sweet goods. On behalf of members, our mandate is to:

PROVIDE A VOICE FOR THE INDUSTRY Today’s consumer is bombarded with contradictory dietary messages on a daily basis, much of it negative about wheat-based goods. In response, BAC helped create the Healthy Grains Institute whose mission for the past six years has been to inform and enhance Canadians’ knowledge of the health benefits of wheat and other grains. Today, Cereals Canada is continuing with this work through advocacy programs and content designed to raise awareness around the nutritional value of these staple ingredients. LOBBY FOR BAKERS’ RIGHTS Government advocacy on behalf of Canada’s retail, in-store and commercial bakers is a big part of what we do. Our leadership on issues including nutrition policy, the environment and product labelling, saves members millions of dollars annually. Working alone or in coalitions BAC is the only organization in Canada specifically representing this sector. INFORM, EDUCATE AND SUPPORT FUTURE BAKERS BAC and its Chapters are proud to provide ongoing support to Canada’s baking colleges, both in volunteer commitments and funding. BAC’s Chapters provide $30,000 annually towards scholarship and other baking programs at community colleges across the country. CONNECT MEMBERS WITH PROFESSIONAL RESOURCES BAC’s high performance team is available free of charge to assist members as they navigate today’s regulatory environment. Members seeking advice on labelling, formulation, the domestic market and exports can count on us for expert consultation; as can those looking to connect with fellow bakers, suppliers, or seeking exporting assistance.

BAC MEMBER BENEFITS

BAC’S HIGH PERFORMANCE TEAM IS AVAILABLE FREE OF CHARGE TO ASSIST MEMBERS AS THEY NAVIGATE TODAY’S REGULATORY ENVIRONMENT. BRING INDUSTRY PROFESSIONALS TOGETHER Nationally and through its regional Chapters, the BAC produces several social and educational events annually, allowing bakers and the baking community at large to connect in groups or one-on-one. These events enable members to meet and share advice, or explore other B2B opportunities. PRODUCE THE BAC TRADE SHOW & CONFERENCE BAC produces Bakery Showcase, Canada’s only bakery-specific trade show and conference in Toronto, Montreal and Vancouver. Bakery Showcase is the place to see, taste and touch innovative products and services, and seek out cost-saving opportunities. INFORM AND UPDATE ON INDUSTRY MATTERS BAC provides numerous education and communication tools to keep members abreast of industry developments. These include: Chapter workshops, the E Bulletin Newsletter published bi-monthly, free copy of Bakers Journal Magazine, free copy of Food in Canada Magazine, and “The Bulletin” newsletter published 10 times per year. PROVIDE COST-SAVING OPPORTUNITIES & PROMOTIONAL SERVICES Our numerous programs and services are designed to help members save. These include: a member hotline 1.888.674.2253 to access BAC’s professional resources; a specially designed Property and Liability Insurance Program exclusively for BAC members; group RRSP through Nesbitt Burns; special discounts on exhibit space at Bakery Showcase; usage rights to the BAC logo to enhance brand credibility; member discounts on Chapter programs; FREE job board and classified ad postings on BAC’s website; and more.

BAC MEMBERS PRODUCE AND MANUFACTURE: BAKED GOODS (SEMI-FINISHED, FINISHED, FROZEN)

BAKING INGREDIENTS 33

EQUIPMENT

PACKAGING

DECORATIONS

TECHNOLOGY

SERVICES

For more information, please visit www.baking.ca. You can also email us at info@baking.ca or call toll free: 1-888-674-2253.

2018 BAC ANNUAL REPORT | www.baking.ca