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grocerybusiness.ca

Grand PrixFinalists

OutstandingInternational Store Design

The Deal of the DecadeLoblaw & Shoppers

A Man with a Mission

May | June 2014Vol 4 | No 3$9.95

Darrell JonesPresident, Overwaitea Food Group

VOTED MOST TRUSTED BRAND BY CANADIANS*

*Voted most trusted brand in a tie Yogourt category by Canadian shoppers based on the 2014 BrandSpark Canadian Shopper Study

TRADEMARKS OWNED OR USED UNDER LICENSE BY PARMALAT CANADA, TORONTO, ON M9C 5J1Trademarks owned or used under license by Parmalat Canada, Toronto, ON M9C 5J1. All rights reserved. © 2014 Parmalat Canada

PARMALAT PROUDLY PRESENTS ITS

Parmalat Canada has a long standing tradition of winning awards

for its market leading products. We are pleased to be recognized

as Finalists by the Canadian Grand Prix

New Product Awards and the Retail Council of Canada.

Grand Prix Finalists...

9”

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contentsDEPARTMENTS6 Front End People & News

11 Open Mike Simplify the shopping experience:

let the dogs out!

13 Perspective It’s time to discuss “the Code”

31 Shelf Life Gluten free is rising

62 Launch It, List It New and now products

64 It Figures Focus on social media

Grocery BusinessMay | June, 2014

Volume 4, Issue 3

Walmart To GoBentonville, Ark.

21Loblaw + Shoppers: The Deal of the Decade

May | June 20144

ON THE COVER

Darrell Jones: A Man With a Mission24

FEATURES9 Is a Grocery Code of Conduct

Next for Canada?

14 The Sweet Truth About Sugar

15 Going Local and Loving It

20 sofi Awards Local goes global

21 Loblaw + Shoppers Drug Mart The deal of the decade

35 Best New Products The consumers’ choice

SNAPSHOTS59 Canadian Produce Marketing Show

66 Grocery Showcase West

39 The Innovators International store design at its best

45 Canadian Grand Prix Award Finalists

60 Nielsen: What’s in Store 2014

Overwaitea Food Group is poised for growth in

Western Canada’s rapidly changing retail landscape

COVER PHOTO: ROBERT KARPA

15 39 59

20The sofi Award

grocerybusiness.ca 5May | June 2014

Executive Vice-PresidentContent and Market DevelopmentDan Bordun [email protected]

Contributing Editors Angela Kryhul, Sally Praskey

Contributing WritersPeter Diekmeyer (Montreal)

Contributors Perry Caicco, Michael Marinangeli, Tricia Ryan, Maisie Vanriel, Robert Thompson, John F.T. Scott, Maureen Atkinson, Carman Allison

Co-Publisher and Content DirectorKevin Smith [email protected]

Co-Publisher and Executive Editor Karen James [email protected]

Creative AgencyBoomerang Art & Design Inc.boomart.net

Subscription changes & updates or general inquiries: [email protected]

Grocery Business Advisory Council

Phil Donne, Campbell Company of Canada

Tom Barlow, Canadian Federation of Independent Grocers

Perry Caicco, CIBC World Markets

Chris Terrio, CROSSMARK Canada Inc.

Nancy Croitoru, Food and Consumer Products of Canada

Tim Berman, Kraft Foods Canada

Michael Marinangeli, MIDEB Consulting Inc.

Cheryl Smith, Parmalat Canada

Mark Ayer, Procter & Gamble Inc.

David Wilkes, Retail Council of Canada

Cori Bonina, Stong’s Market

© Copyright 2014. All rights reserved. No part of this magazine may be reproduced without written permission of the publisher. GST Registration No. 83032 6807 RT0001 Publications Mail Agreement No. PM42211029 ISSN 1927-243X

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

May | June 2014Volume 4, Number 3 @grocerybusinessgrocerybusiness.ca

Sign up for our eNewsletter at grocerybusiness.ca

Montreal-based Dollarama Inc. has appointed Johanne Choinière chief operating officer.

Choinière comes from Metro Inc., where she was senior vice- president of the Ontario Division.

Louis Frenette is the new president and CEO of Parmalat Canada. Previously, Frenette was president and CEO of

Bonduelle North America.

Paul Del Duca has joined Walmart Canada as senior vice-president, Fresh. Del Duca is the former general manager, Ontario, for Sobeys Canada.

Les Mann, senior vice-president, food and consumables, is retiring from Walmart Canada at the end of May. Mann is a Golden Pencil Award winner.

Jeff DeLapp becomes president, North America, for McCain Foods Limited, on June 2.

DeLapp was president of Lamb Weston from 2002 to 2010.

Paul Corney has been appointed president and chief operating officer of Saputo Inc.’s Dairy Foods Division (USA). Corney joined Saputo in 2001.

Dave Dudick was recently named senior vice-president, president, of General Mills Canada. Dudick

replaces Dave Homer, who was named CEO of Cereal Partners Worldwide in Switzerland, a joint venture between General Mills Inc. and Nestlé S.A.

CROSSMARK has named Ben Fischer chief executive officer of the Plano, Texas-based sales and

marketing services company.

Fischer succeeds Joe Crafton, who retired after 26 years with the company.

The North West Company Inc. of Winnipeg has appointed Vi Konkle to its board of directors. Konkle is the past president and CEO of The Brick Ltd., and has held senior execu-tive positions with Loblaw Companies Ltd. and Walmart Canada.

Paul Beesley is joining Hudson’s Bay Company as chief financial officer. Previously, Beesley was executive vice-president and CFO

at Empire Company Limited, and chief corporate development officer at Sobeys Inc.

John Harvie, CEO of Co-op Atlantic until his retirement in 2011, has been named chairperson of the board of directors for The Co-operators Group Limited.

Davide Viola is the new vice-president, chief operating officer for Centric Health. Viola has previously

worked at Maple Leaf Consumer Foods, and Loblaw Companies Ltd.

TransitionsFront End

Alain Bouchard (left) is stepping down as president and CEO of Alimentation Couche-Tard Inc. on Sept. 24, 2014, and will take on a new role as founder and executive chairman of the company’s board of directors. Brian Hannasch, who currently is chief operating officer, will be

promoted to the positions of president and CEO. The responsibilities of chief operating officer will be shared by Couche-Tard’s executive management team.

May | June 20146

Front End

The SIAL Canada 2014 international food and beverage trade show, and SET Canada equipment and technology show, which took place jointly at Montreal’s Palais des congrès in early April, set records for size and atten-dance: The two events attracted 767 exhibitors and brands from 43 countries, as well as 14,685 attendees from more than 60 countries.

“These are record amounts,” said Xavier Poncin, executive director of SIAL Canada. “The gains mean the event, which alternates between

Toronto and Montreal, is now roughly the same size in both cities.”

The big story at SIAL Montreal was the large representation of international exhibitors and attendees. For example, Marianela Martinez, chief operating officer of Secrets of Panama, came to the show to leverage the free trade deal that Canada and Panama signed last year. She decided to introduce the company’s Hot Chombo premium hot style habanero pepper sauce to the Montreal market after seeing quick success in Toronto’s growing Latin and Spanish-speaking communities.

A highlight of SIAL Montreal was Olive d’Or, the largest international extra-virgin olive oil contest in North America. There were a total of 12 winners in four categories.

Some of the category winners: Ripe Fruit: Los Alamos, Agroindustrial Siracusa S.A., Chile; Oleiva Traditional, Slama Huiles, Tunisia.Light Fruit: L’Ottobratico, Olearia San Giorgio, Italy.Medium Fruit: Morellana, Sucesores de Hermanos Lopez S.A., Spain.Strong Fruit: Villa Magra, Frantoio Franci, Italie.

SIAL Canada 2015 will be held in Toronto at the Direct Energy Centre, April 28 - 30.

SIAL Canada 2014 sets new recordsBy Peter Diekmeyer

Xavier Poncin

grocerybusiness.ca May | June 2014 7

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The new Walmart to Go convenience store debuted in the retail giant’s hometown of Bentonville, Arkansas, this past spring. Designed by Tampa, Fla.-based api(+), the new format is Walmart’s first attempt to capture a share of the US$415-billion quick-trip market. Walmart to Go is a non-traditional mix of grocery items, fresh prepared foods and traditional convenience store products.

The prototype store design features vibrant canopies and expansive storefront glass to showcase merchandise and to welcome inside customers who are filling up at the gas pumps. Inside, Walmart offers fresh produce and such grab-and-go items as pizza and sandwiches. There are hundreds of packaged foods and non-edible items, ranging from breakfast cereals to dog food, diapers, magazines and books. Walmart has also partnered with Bentonville Butcher & Deli to operate a quick-serve meat counter in the store.

WALMART REINVENTS C-STORE FORMAT WITH WALMART TO GO

Front End

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“Canada’s increasingly consolidated grocery sector requires new oversight to ensure that there is a vibrant and sustainable marketplace,” says Adam Grachnik, senior director of communications for Food & Consumer Products of Canada, an industry group representing food and CPG manufacturers. “Grocery codes of conduct are emerging as a global trend to provide a more transparent, stable and fair business operating environment.”

Tom Barlow, president of the Canadian Federation of Independent Grocers, agrees. “Large listing fees,

deductions because of ‘shrink,’ refusal by some retailers to accept club packs, and similar practices all reduce competitiveness in the market,” says Barlow. “This is a particular challenge for independents, as they don’t have the leverage to get the same terms as the big guys.”

Barlow says, “We need to see the industry come together on some voluntary guidelines. That includes a clear definition of how business is conducted between suppliers and retailers.”

Codes of conduct (which can be voluntary or statutory) are a fairly recent innovation in the grocery sector. They

Debate is heating up in the wake of calls for guidelines to govern relationships between grocery players. In recent weeks, widespread reports of retailer practices – such as retrospective changes to contracts between suppliers and grocers – have pushed industry groups to respond.

Continued on page 10

Is a grocery code of conduct next for Canada? By Peter Diekmeyer


WHEN DID THE LEGISLATION COME INTO EFFECT?

The Groceries Code Adjudicator Act 2013 was given Royal Assent on April 25, 2013.

WHAT ARE THE RETAILER OBLIGATIONS UNDER THE ACT?

The relevant retailers (the biggest 10 grocery retailers) have a statutory obligation to incorporate the Code of Conduct into all agreements with suppliers. This is laid down in paragraph 5 of the Groceries (Supply Chain Practices) Market Investigation Order 2009.

As a result, the contents of the Code become part of the agreement between those retailers and their suppliers. The obligation to comply becomes a contractual obligation owed to the supplier.

WHAT ARE SOME OF THE SPECIFIC ACTIVITIES THAT ARE PROHIBITED?

» Not to make retrospective changes to contractual terms;» To pay suppliers in accordance with contractual terms;» Not to require a supplier to contribute to a range of matters such

as buyer visits, artwork/packaging design, consumer research, store refurbishment costs, and wastage;

» Not to charge listing fees, except for newly listed products;» Not to demand payments for better shelf positioning.

WILL THE GROCERIES CODE ADJUDICATOR HAVE THE ABILITY TO IMPOSE FINES?

It is anticipated that she will. Legislation to that effect is expected to come into force any day now.

Michael Hutchings, a U.K.-based lawyer, has been working with vendors and retailers on the code of conduct issue for more than a decade, and says that, in Britain, an enforceable standard works best.

According to Hutchings, there was recently a big win for suppliers in the U.K.: They can now file complaints anonymously via trade associations. “There tends to be code of silence that develops among suppliers who sell to buyers in a concentrated industry, as they worry they will be blacklisted if they speak out publicly.”

Hutchings spoke with Grocery Business on what the Groceries Code Adjudicator Act means for British retailers and suppliers.

have made headway in countries such as the United Kingdom and Australia, where there is significant retailer concentration; however, those lobbying for an industry code of conduct here in Canada face challenges.

Despite reports that some grocers are moving close to the line, consistent violations of laws or regulations have yet to be demonstrated, and suppliers may be reluctant to speak out.

Grocers, for their part, are less convinced that action is needed. Eric LaFlèche, CEO of Metro Inc., Canada’s third-largest grocery distributor, has publicly rejected calls for a code of conduct, saying that grocers are known to be “easy negotiators.” Sobeys Inc. CEO, Marc Poulin, describes relationships with suppliers as “harmonious.”

David Wilkes, senior vice-president (grocery division) of the Retail Council of Canada, agrees, citing a highly collegial climate that is characterized by close business relationships. “Don’t confuse strong competition with something that requires a regulatory response,” says Wilkes. “The Competition Bureau already has the tools it needs to enforce the [Competition] Act. And don’t forget that pressure in supply channel relationships goes both ways. Suppliers, for example, have been pushing retailers on the issue of minimum prices.”

Wilkes cites a strong sense of collaboration on a wide variety of issues, ranging from food safety to product identifiers and stewardship, as another signal that no intervention is needed.

The United Kingdom: A legislated code of conduct

Michael Hutchings, Solicitor (England and Wales)

Continued from page 9

TURN TO PAGE 13 FOR JOHN SCOTT’S PERSPECTIVE ON A PROPOSED CANADIAN CODE OF CONDUCT

May | June 201410

Simplify the shopping experience – let the dogs out!By Michael Marinangeli

During my recent store visits, I focused my attention on grocery assortment, and came to the conclusion that most stores (including discounters) carry far too many items. The proliferation of line extensions, “me-too” products, and private labels has gotten way out of hand. In one store, I counted 42 shelf labels for one brand of laundry detergent. Thirty years ago, this brand had four SKUs. I’m not singling out one category; this phenom-enon is rampant in many.

How and why did this happen? Who’s to blame – the retailers, manufacturers, or both? I say both are at fault. I believe that the escalation of trade spending to keep the “dogs” on the shelf has been the biggest contributing factor.

As a category manager, the first thing I did when I was assigned a new category was conduct a complete review of the items listed. Every time, I was able to delist at least 10 per cent of the SKUs in the category without adversely affecting sales. My premise was that the “dogs” were taking up too much space, and the “winners” were cramped and prone to

out of stocks due to inadequate shelf alloca-tion. My primary motive was to improve category performance by simplifying the shop, providing better exposure to the items that matter most, and increasing sales by eliminating out of stocks. Before I pulled the plug on these items, I would visit stores on a Friday evening – the busiest time back then – and check the shelves to determine which items had little or no movement. I don’t recall this test ever failing.

Managing assortment is an ongoing endeavour. Although some retailers today list new items only once or twice a year, I never subscribed to or endorsed this approach. Exploring new opportunities and removing weak elements of your offering should be an everyday occurrence. Once I had my SKU count and space allocation set, I abided by two underlying principles.

1. If I listed a new item in a category, I delisted an existing one. (Obviously, if the category was dynamic or growing, I would consider expanding variety.)

Open Mike

2. When doing planograms, each item must have a minimum one-and-a-half case capacity on the shelf to avoid part cases being put in the back room after the shelf was replenished. This makes inventory management at retail easier to control. When suppliers complained, I told them to reduce their pack sizes.

Several years ago, I was working with consultants on developing a new store concept. In discussing assortment strategy, one of the consultants used the expression “the intelligent loss of sales.” I asked him what that meant, and he explained that Sol Price, the founder of Price Club, used this expression to make the point that it is better to walk away from a sale and focus your energy on the items that count the most. Every sale comes at a cost. Make sure the carrying cost is not higher than the profit from the sale. Over the years, this simple expression has left a lasting impression.

Efficient assortment is a key component of your store positioning and value proposition.



1. Simplify your shop and make it a more enjoyable experience for your customers.

2. Reduce out of stocks and increase sales by allocating more space to the items that warrant it.

3. Improve your inventory turns at the warehouse and in the stores to free up working capital for other initiatives.

4. Nine out of 10 new items fail. Give them a chance to succeed by providing adequate shelf space and timely promotional support.

5. Maintain a healthy balance between sales and trade spending in order to focus on sales and gross margin at store level.

6. Follow the 80-20 rule. This applies to almost everything in life, including SKU management.

7. Set up benchmarks and rewards for SKU efficiency with your staff that puts as much or more focus on margin manage-ment as on trade spend.

8. Analyse item velocity on regular shelf movement versus promotional volumes. It’s amazing how many items don’t sell when they are not promoted.

9. Follow the one-in and one-out philosophy. It makes every listing decision more painful, which is what you want.

10. Do a complete annual review of category space allocation throughout the store. Categories grow and decline. Ensure that you stay on top by allocating more space to the categories that warrant it and less to those that have too much exposure.

Maintaining an efficient assortment is like having a green lawn. You have to get rid of the weeds so the grass has room to flourish – and let the dogs out to do their business elsewhere!

Michael Marinangeli is a principal at MIDEB Consulting Inc. and a retailing veteran with more than 40 years of experience. Contact: [email protected]

Michael is a founding member of the Grocery Business Advisory Board.

Open Mike

10 reasons why efficient assortment needs to be on your radar

Continued from page 11

Perspective

competitive balance of the food industry. That deafening silence must be a concern to code proponents, as the concept must be embraced as policy by the political element, and we well know whence their motivation comes!

But wait a minute – a groundswell of consumer complaints didn’t exist in any of the countries now working with a code. In each case, concern evolved gradually to the point where it became an imperative and part of the public trust. Nobody wants that to happen here because it implies the potential for public- sector interference. What, then, is to be done?

My guess is that pressure for a code is not going to go away. If you buy that, then I suggest it’s time for the extended industry to come together and talk it through. Let’s once again embrace that valued, collective approach to ensure we are well ahead of the curve. Folks

– take a hard look and let’s hold the debate.

In the 1990s, the industry developed the concept of Efficient Consumer Response to counter the unheard-of efficiencies that Walmart introduced into food retailing. That collegial work spawned such initiatives as zero-tolerance scanning and the precursor organization to GS1 Canada.

We are now witness to the fledgling Canadian Stewardship Service Alliance, which underscores that each time a critical issue has come knocking, the entire industry takes leadership and embraces the problem in order to achieve a unified direction.

That’s why the apparent lack of interest on the part of many senior leaders regarding the contemplated Code of Conduct – intended to protect suppliers from alleged patterns of egregious behaviour by distributors – is so surprising.

Surely our industry can read the tea leaves. The Australians, many of the E.U. countries, and the U.K. are all in various stages of developing or implementing a Code to facilitate certainty in trade dealings, which in turn should provide a measure of stability in the marketplace. Probably the U.K.’s new Groceries Supply Code of Practice, supported

by all parties and adopted in 2013, holds the most promise for achieving the objective, but it’s early days.

In the wake of two mega deals in our industry, various advocates have suggested that Canada needs that enforceable code. Their voices have been bolstered by the provision of information to the Competition Bureau by companies that have allegedly been disadvantaged. That the Bureau has seriously considered this evidence is obvious by the terms that accompanied the Loblaw – Shoppers Drug Mart approval.

And yet the CEOs of major distributors recently dismissed the idea of a code, commenting that they are tough negotiators but experience good relations with their suppliers. And after all, Canadian consumers enjoy a virtual feast of shopping alternatives that boast arguably the safest food, the most diverse and comfortable shopping environments, and among the lowest prices (as a percentage of disposable income spent on food) in the developed world.

It’s easy to extrapolate that those CEOs were confident they were on safe ground based on the lack of consumer complaints over the

By John F.T. Scott

John F.T. Scott

JOHN F.T. SCOTT is an economist who consults and speaks on the food distribution sector. The author of Perspectives on the Retail Food Industry, he also serves as interim managing director of the George Morris Centre, a non-profit economic research institute dedicated to the agri-food sector.

When the chips are down, the grocery industry has a history of collectively arriving at a solution, often with the support of, but free from, the regulatory clutches of the public sector.

It’s time todiscuss “the Code”


truthWhile the WHO made a strong recommenda-tion to limit the amount of added sugar to 10 per cent of total calories per day, it shocked many experts by indicating it would eventually like to cut that in half to only five per cent. To put that in perspective, all the added sugar consumed in a day should not exceed the amount of naturally occurring sugar found in two eight-ounce glasses of milk. Based on tenuous evidence at best, this unrealistic target has experts around the world buzzing.

These recommendations are part of the WHO’s plan to reduce obesity and dental caries (tooth decay and cavities), which continue to eat up increasing amounts of many countries’ health-care budgets. Everyone supports these

good intentions, but we all have a responsibility to ground policy in sound, established science.

Food & Consumer Products of Canada (FCPC) responded to the WHO’s request for comment on behalf of our members, asking: How did the WHO come to recommend an intake as low as five per cent of total calories per day based on scientific information the WHO itself said was weak?

Welcome to the wonderful world of public health policy.

According to the Institute of Medicine (IOM) – the leading voice for setting Dietary Reference Intakes – which reviews thousands of studies to provide unbiased and authorit-ative advice to decision-makers and the public, there simply isn’t enough evidence to go below 10 per cent of added sugar. Right now, the IOM recommends staying below 25 per cent.

After all, sugar has been with us throughout history, and it certainly has its place in rounding out our diet and making it more enjoyable.

At FCPC, we know obesity is a complex issue. Physical activity, availability of fruits and vegetables, income, genetics, sleep, and happiness can all play a role. We look at

programs to reduce obesity and dental caries; we support the ones that are scientific and evidence-based.

Canada’s food and beverage manufacturers have for many years developed “healthier-for-you” products that focus on all aspects of a healthier diet. We are helping Canadians to reduce their intake of calories, sodium, saturated fats, trans fats and added sugars while increasing their intake of vitamins and minerals. And we look forward to continuing to provide Canadians with the products, tools, information and choices they need to achieve and maintain a healthy lifestyle.

As our submission to the WHO makes clear, FCPC would support the organization in the pursuit of strong scientific evidence on this topic. It’s our duty and responsibility to ensure that, while the bees will always buzz, we are swatting away the nonsense.

By Maisie Vanriel

We heard more buzz around sugar this spring than 1,000 honeybee hives could generate. Most of the noise resulted from the release of the World Health Organization (WHO) recommendations for the intake of added sugar for adults and children.

How did the WHO come to recommend an intake as low as five per cent of total calories per day based on scientific information the WHO itself said was weak?

Maisie Vanriel is a registered dietitian and vice-president, scientific and regulatory affairs, food policy, Food & Consumer Products of Canada (FCPC).

Commentary

the sweet

May | June 201414

A 2013 Conference Board of Canada report titled Cultivating Opportunities: Canada’s Growing Appetite for Local Food found that locavorism – the desire to eat locally produced food – has surged in the last 10 years, “driven in part by concerns about food quality, health and nutrition, food safety, local economies and farmers, and the environment. Local food is a way for consumers to express their values and beliefs about the food system.”

Across Canada, 20 per cent of food is consumed within the same province in which it is produced (a widely used definition of local food).

But there is still plenty of opportunity to grow. “We’re finding that there is room to expand the role of local food systems in Canada, and that in doing so, there are significant economic benefits to be realized,” says Michael Bloom, the Board’s vice-president, organizational effectiveness and learning.

Here’s a sampling of some local-food initiatives across the country.

Producers, retailers and consumers in Quebec are benefitting from a program called Aliments du Québec – Foods of Quebec – that began about a dozen years ago. Eligible foods include any product made entirely from ingredients sourced in Quebec, or composed of a minimum of 85 per cent of main ingredients from Quebec. All processing and packaging must be done in the province as well.

“The model is very interesting because the brand is owned by everybody in the supply chain, from production to distribution,” explains Sylvie

Cloutier, president and CEO, Quebec Food Manufacturers Association, which represents the food processors. Thanks to the provincial government’s investment in the program, all the major retailers now feature generic Aliments du Québec advertising in their weekly flyers, on their websites, and on their shelf labels.

That exposure has prompted more food processors to register with the program, says Cloutier. “Within a few years, the program went from 3,000 to at least 15,000 products registered with the database of Aliments du Québec.”

QUEBEC: ALIMENTS DU QUÉBEC

Canadians are hungering for local food – both fresh and locally processed – and grocers across the country are stepping up to provide it.

FEEDING THE DEMAND FOR LOCAL FOODBy Sally Praskey



Andrew & Emily’s No frills Food Basics #932Food Basics #697 Food Basics #877

Metro #73 Metro #170Metro #147 Metro #453

Metro #479 Sobeys Ira NeedlesMetro #771 Stewart’s Town & Country Market

Congratulations

Metro #73 Metro #479 Sobeys Ira Needles

T he 26th annual Foodland Ontario Retailer Awards Ceremony recognized 30 grocery retailers for their in-store promotion

of fresh Ontario food. The displays increase consumer awareness of the variety of fruits and vegetables grown in

the province. Stores submit photographs of their promotional displays to qualify for the awards. There are five award categories

that recognize the support for promoting in-season local food. From individual store displays to overall retail banner endorsement,

the Retailer Awards program is a true celebration of our Retailers’ commitment to sourcing local food.

Award of Excellence

Platinum

Foodland Ontario Retailer Award Winners

Cayuga Foodland Metro #139 Metro #266

Metro #252 Metro #853Metro #808 Zehrs #515

Food Basics #620 Metro #83Food Basics #676 Sobeys #866

Gold Creative

Food Basics Longo’s Sobeys

Vision Award

Congratulations

Morello’s Independent Grocer

Gold Cross Merchandised

Gold Seasonal

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They’ve helped us take home 34 awards.Proudly promoting Ontario-grown produce has earned Metro and Food Basics stores 34 Ontario Retailer awards this year. Thank you Foodland Ontario and lovers of freshness province-wide.

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RETAILER INITIATIVESSNAPSHOT

66%

DO YOU CONSCIOUSLY TRY TO PURCHASE FOODS THAT ARE LOCAL?RESPONDENTS ANSWERING “YES”

Source: BrandSpark study, 2014.

NOVA SCOTIA: COUNTRY MAGIC

Nova Scotia’s Annapolis Valley is the unique growing area where Country Magic products are cultivated for Nova Agri. Introduced in the 1980s to brand the company’s potato crop, Country Magic products are produced by fourth-generation farmers in different microclimates across 2,500 acres. The line now includes high-bush blueberries, yellow and red onions, potatoes, strawberries, grape tomatoes, blackberries, cooking greens, beans, Asian vegetables, lettuce, and, most recently, bloo juice, a 100 per cent pure blueberry juice.

Country Magic has grown from a local brand to distribution across Canada, Iceland, the U.S. and Europe.

Brands feature Taste the Colours, a proprietary labelling program that illustrates each product’s vitamins and micronutrients in order to educate consumers in-store.

ONTARIO: LEGISLATING LOCAL

With the passage, last November, of the Local Food Act – the first legislation of its kind in Canada – the province of Ontario will increase awareness and boost sales of local foods by setting goals and targets in consultation with sector partners.

According to the Ontario Ministry of Agriculture and Food, the Act requires the government to produce an annual report on its activities to support local food. It also proclaims an annual Local Food Week.

“The Local Food Act will benefit people by making the connection between buying local and helping grow an important Ontario industry,” says Kathleen Wynne, premier of Ontario and Minister of Agriculture and Food. “If we increase demand to homegrown food, we will create jobs and boost the agri-food sector’s contributions to our economy.”

The province has also expanded its Foodland Ontario program, which has traditionally focused on produce, to include meat, dairy and egg.

METRO EXPANDS LOCAL PURCHASING PROGRAMFollowing the establishment of a Local Purchasing Policy last year, Metro Inc. recently welcomed 68 new products from the Chaudière-Appalaches region into five Metro and two Super C stores. Customers at the participating stores can purchase sauces and tapenades, jellies and jams, syrups and oils, flours and seasonings, and more, all prominently displayed and identified as “Colours and Flavours of Chaudière-Appalaches.” Suppliers of fresh products also participate in the program. The pilot project is the second in a series of three, all intended to make Metro a prime showcase for regional products.

QUALITY FOODS Vancouver Island-based Quality Foods lists local suppliers on its website. Founding partner Noel Hayward points out that the retailer uses its produce wholesaler for supply chain management, so the producer has only one drop to make. “This works well, but because people don’t always see the farm trucks delivering direct to the store, the perception may be that we are not buying locally,” he notes.

CO-OP ATLANTIC Based in Moncton, N.B., Co-op Atlantic works with producers to help them grow the food that the stores sell. It sells producers the seed, feed, and other products they need, and advises them on best agricultural practices. On the consumer end, the retailer holds the Eat Atlantic Awards, whereby consumers can vote for their favourite Atlantic foods in a buy-local campaign.

LOBLAW COS. LTD. The six-year-old “Grown Close to Home” campaign sources 40 per cent of the produce sold seasonally in Loblaw-owned stores from Canadian growers, and 31 per cent year-round. During the annual campaign, customers can meet the growers in the stores. The chain has vendor development managers in each region who support local growers on a full-time basis, and help connect growers and buyers. The company also holds regional annual produce grower meetings.

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They’ve helped us take home 34 awards.Proudly promoting Ontario-grown produce has earned Metro and Food Basics stores 34 Ontario Retailer awards this year. Thank you Foodland Ontario and lovers of freshness province-wide.

We’ve helped Ontarians take home

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The Specialty Food Association’s sofi Awards are a way for “local” Canadian companies to gain international recognition – and sales. Over the years, many Canadian products have won sofi Awards, and have leveraged those wins to attain distribution in other markets.

Grocery Business spoke with Ken Seiter, chief marketing officer of the Specialty Food Association, to find out more about the Awards and how

Canadian companies can parlay local success into worldwide acclaim.

What are the sofi Awards?The sofi Awards have honoured the best of the best in specialty foods and beverages since 1972. The Awards represent outstanding culinary innovation in the U.S. and around the globe.

What are some of the benefits of being a sofi winner? The Specialty Food Association provides winners and finalists with a marketing tool kit that includes sales materials, presentations, catalogues and press releases to help promote their win. Winners have

While local food products are in great demand in their own neighbourhoods, they can be popular elsewhere as well.

exclusive rights to use the sofi logo in promotions and on packaging.

The sofi logo and marketing materials are a proven way for specialty food makers to demonstrate to retailers, press and potential new accounts the craft, care and joy that goes into the development of their products.

Several Canadian companies have won Gold sofi Awards over the last few years. Are you seeing more international companies competing for these awards?Yes, we are seeing an increase in international companies. Canadian specialty food makers, in particular, made an impressive showing in 2013: Gold winners included Gourmet du Village, Lesley Stowe Fine Foods, and Wildly Delicious Fine Foods.

How does one enter?The sofi Awards are open to the 3,200 member companies of the Specialty Food Association. All entry forms, contest rules and FAQs are posted at specialtyfood.com/sofi.

What is the judging process?This year, a panel of specialty food professionals evaluated 2,025 specialty foods and beverages across 30 categories to come up with their list of 109 finalists. Among the finalists is Raincoast Crisps – Cranberry Hazelnut, made by Vancouver-based Lesley Stowe Fine Foods.

Products are judged on several characteristics:» Taste» Quality» Innovation» Ingredient profile» Merchandisability» Best in its class

Every product is evaluated, and feedback from each judge will be sent to every participating company.

The final judging takes place during the Summer Fancy Food Show in New York (which runs June 29 to July 1, 2014), with the winners announced on June 30.

BEYOND BORDERS: LOCAL GOES GLOBAL

For more information on the sofi awards, please e-mail [email protected] or call the sofi hotline at 212-482-6440.

Awards

20 May | June 2014

Loblaw’s $12.4-billion purchase of Shoppers Drug Mart is a bold play on demographic trends, the future shape of retail, and the care and feeding of Canadians.

It is one of Canada’s most stalwart businesses, with a nearly century-old tried-and-tested business model, but Loblaw executive chair Galen G. Weston and the company’s presi-dent Vicente Trius are willing to go all in on a bet staked by the country’s changing population. The gamble is a big one – the $12.4-billion acquisition of Shoppers Drug Mart, which, when combined with Loblaw, encompasses more than 2,300 stores, including 1,800 pharmacies, and $42 billion in revenue.

Mitigating the risk, perhaps, is the fact that the wager is based on long-term opportunities in demographic and social trends rather than short-term aims like taking out a competi-tor, cutting redundant employees, or finding synergies in distribution and computer operating systems. Instead of

waiting to see what their competitors would do next, Weston and Trius, who joined Loblaw as CEO in 2011 when it was struggling, rolled the dice that the market would transition the way they expected.

The transaction is about Loblaw driving “a disruptive change in the Canadian grocery and drug retail landscape,” said retail analyst Derek Dley of Canaccord Genuity when the deal was announced. Such potential impact, executed at a scale that leaves even U.S. invaders Wal-Mart Stores, Inc. and Target Corp. playing catch up, is why Loblaw’s takeover of Shoppers is considered by many to be the industry deal of the decade.

The Deal of the DecadeIt’s a deal: (from left) Shoppers Drug Mart president and CEO Domenic

Pilla; Loblaw executive chair Galen G. Weston; Holger Kluge, former chair of Shoppers; and Vicente Trius, president of Loblaw Cos. Ltd.

By Robert Thompson

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based independent research organization that focuses on the food industry. “The real story is that Walmart, Costco and Target have been eating into the traditional grocer’s share, and it isn’t going to get any better.”

Seeking synergiesWeston’s company has been in transition for

several years as the American chains began aggressively entering Canada. Walmart has been investing heavily in the food sector, pumping in $450 million to expand its offerings in its Canadian stores as Target opened its first 124 stores in Canada. In the process, it has increased its food sales in Canada by $700 million last year alone. Sobeys also entered the fray earlier in 2013, launching a $5.8-billion takeover of more than 200 Safeway stores in a bid to fend off the Walmart juggernaut. During this time of turmoil, Loblaw has seen more revenue shuffle to its No Frills and Superstore brands, a move that hits the company’s margins.

Loblaw expects to save $300 million over three years once the two companies are fully connected, money that it says will be used to pay down the debt level to about three times EBITDA. But overall, Trius said the process would take longer as Loblaw attempts the delicate dance of balancing the cultures of the two businesses, a process that could take up to five years. “Having done a couple of integrations before, to me, a successful integration is about the synergies, but it is a lot more about having integrated processes and one culture that works together,” he said. “It is setting up a stage so that everyone recog-nizes the end stage is this company.”

A transformational deal

In striking this deal, Loblaw execs envision a time in the near future when Canadian consumers are more urbanized, rely on their cars less, and are prepared to pay a premium to buy food and health goods on demand from smaller, easily accessible stores. If they are right, it is a “transformational” deal, said Trius in a conference call last summer, a little more than a month after the acquisition had been announced.

Transformational “because it combines two companies [that] when you bring them together then have the largest small-store format in the country,” he explained. “When we look in the future in Canada, it will be a lot more about small stores than large stores.”

Smaller stores where customers pay a premium for emerging health-related products, added Weston, speaking at the time of the deal. “We are confident that the two great companies will come together to serve our customers better and create shareholder value,” he said. “We are building on a strong foundation.”

That foundation has been shaken in recent years, especially as large American big-box chains such as Costco Wholesale Corp., Walmart, and Target push into the traditional grocery market, stripping away market share from Canadian companies like Loblaw. That’s why some observers see the acquisition as a calculated reaction that’s more about everyday competition in the grocery sector and the allure of healthier margins in the drugstore business than it is about changing longer-term consumer trends.

“The notion that this deal is about health and wellness and smaller stores, that’s just the backdrop,” says Kevin Grier, senior analyst with the George Morris Centre, a Guelph, Ont.-

A big betThe end stage in this case is Loblaw’s big bet,

something Weston said he had been pondering for years, and that he’d discussed with Holger Kluge, then Shoppers’ chair, for several years.

“We have had approaches from many firms,” Kluge said when the deal was announced. “And in the end, it just happened to be the right time, when these two minds came together, and came together quickly, at what we believe at the right price for our shareholders.”

Weston’s comments at the time spoke to both the long- and short-term potential of the deal. “I have long believed that becoming a Canadian health and wellness and nutrition champion represented a powerful next chapter for the company,” he said. “But to be frank, if we were really going to be serious about it, we had to go out and add the very best pharmacy retailer in Canada. And that is just what we have done.”

Winning with real estate

Another key to the deal is real estate. Less than two weeks before announcing the acquisition, Weston completed the IPO for Choice Properties Real Estate Investment Trust. At the time, that included 415 retail

Domenic Pilla and Galen Weston

22 May | June 2014

properties, representing about 75 per cent of Loblaw’s holdings, with a value of approxi-mately $7 billion.

Valuable retail space is clearly part of the plan moving forward. Shoppers’ stores are often located centrally in Canadian cities, whereas Loblaw and other large grocery chains are based in more suburban settings. Trius acknowledged that his vision of the future of food sales in Canada included large superstores with 80,000 to 90,000 square feet in space, but that those vast warehouses would also likely offer less growth. There are much bigger opportunities, he said, in stores one-third the size of the big-box retailers.

“Real estate is pricey, and Loblaw [by buying Shoppers] got access to real estate in nice urban centres to help move their private-label products,” says Charlebois, noting he thinks a key to the deal is moving Loblaw’s private-label brands into the smaller Shoppers stores.

Speaking at an investor conference in September, Trius acknowledged an early intention to move more food into Shoppers stores, in part by replacing big space-eating services like photo finishing. “As you do that . . . you can put in a more comprehensive offer, leveraging the space in food,” he said. “To us, this means you can buy your breakfast, lunch and dinner when you go to Shoppers.”

Focus on the futureThe Competition Bureau placed several

conditions on the closing, including forcing Loblaw to sell 18 stores and nine pharmacies it controlled to an independent operator. Additional “behavioural restrictions” were placed on the company’s interaction with suppliers for up to five years.

Still, the deal left the combined company with 2,300 stores, and nearly 1,800 pharma-cies. Of particular note, said Trius, would be the appointment of an executive vice-president of

integration and an executive vice-president of speed of change.

Analyst Grier warns that looking into a crystal ball and trying to position a company ahead of an emerging trend is a tricky business.

What’s especially worrisome, he says, is that Loblaw has struggled with its execution in recent years. Consequently, Grier remains skeptical of the company’s abilities to fully realize the potential of the Shoppers transaction. “To make this deal into something different will be based on execution, and they’ve had challenges doing that,” he says.

But Weston said he saw this transaction as a business with a long history in Canada adapting to changing demographics and competitive realities. And even if it meant relinquishing his family’s coveted 51-per-cent ownership stake in the business (the Westons now hold 46 per cent of Loblaw voting stock), it was worth the risk.

“The timing of the transaction right now is optimal,” said Weston. “It is optimal from a leadership perspective. It is optimal from a culture perspective. It is optimal from a regula-tory perspective, and it is optimal from a fundamental sales and earnings trend perspec-tive for both of these businesses.”

All that remains, then, is to find out whether Canada will evolve to match the business Weston and Trius are creating.

The Deal of the Decade

Robert Thompson has written for The Financial Post and other business publications. This article was adapted from Listed magazine.

The combined company

&

With the Shoppers’ acquisition, Loblaw will be the clearinghouse for around one-quarter of all prescriptions for medication in Canada.

“To the extent that, over time, the Canadian population is increasing in urban environments, this makes sense,” says Sylvain Charlebois, professor in food distribution and policy at the University of Guelph. “People aren’t doing their commuting or travelling by car, and once you think about that in the context of shopping, location is important.”

Trius also noted that, by 2025, 25 per cent of the Canadian population would be over the age of 65. “If you look at Canadians across all social classes – it doesn’t matter – it is about health and wellness.”

Others agree. “The deal reflects how consumers perceive food and how they want to connect with food,” says David Soberman, Canadian national chair of strategic marketing at Rotman School of Management in Toronto. “I do believe that to enable growth in the food industry is to sell products at a premium by focusing on health products. The Shoppers deal makes sense by reaching out to market factions that are looking for products with health benefits.”

HEALTH & CONVENIENCE

stores

1,800pharmacies

nearly

2,300


By Sally Praskey

Darrell Jones:

A MANWITH A MISSIONAfter a period of relative stability, the retail landscape in Western Canada is

undergoing a major shakeup. With the purchase of 15 stores from Sobeys Inc.,

Overwaitea Food Group (OFG) is right in the thick of it and poised for further growth,

not only in its current provinces of British Columbia and Alberta, but beyond.

Leading the charge is Darrell

Jones, whom OFG owner Jim

Pattison appointed as president

in 2012, upon the retirement of

longtime company executive Steve

van der Leest. Jones, a 39-year

veteran of the company, got his

start bagging groceries after

school in Cranbrook, B.C. Over

the years, he has worked in 23

different stores in various parts of

the province while rising through

the ranks. “It’s something that

happens when you are fortunate

enough to work for a great

organization with terrific ownership

that’s privately held,” he says of

his achievements. “Those are big

advantages when you’re in any

business, particularly in the retail

food business.”

By tailoring its stores to fit each

community in which it operates,

OFG is uniquely positioned to

take advantage of changing

consumer demographics. Under

Jones’ leadership, it is moving

forward on a number of fronts,

including online shopping and the

construction of a new distribution

centre to support a move

eastward.

Grocery Business had an

opportunity to speak with

Jones about his plans for the

recently acquired stores and the

company’s future.

OVERWAITEA FOOD GROUP

NUMBER OF STORES: 129

BANNERS: Save-on-Foods, Overwaitea Foods, Cooper’s Foods, Urban Fare, PriceSmart Foods, and Bulkley Valley Wholesale

CURRENT LOCATIONS: British Columbia and Alberta

EMPLOYEES: More than 14,000

OWNERSHIP: Part of the Food & Beverage operating division of The Jim Pattison Group, the second-largest private company in Canada

SNAPSHOT

PHOTO: ROBERT KARPA

May | June 2014 25

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Overwaitea recently acquired 15 stores from Sobeys. What does this acquisition bring to the organization?

Culturally, it’s a very good fit. In each and every one of the locations, we have agreed to keep all of the staff and all of the store management. And they’re great people who have a tremendous amount of experience, so we feel very good about that.

You’ve said that the acquisition positions you for further growth. How do you see this growth playing out?

We are starting to build a second warehouse in Edmonton. That will allow us to look to markets, not only in Alberta, but east into Saskatchewan and Manitoba.

Overwaitea recently implemented a new store start-up fee of one free case of all listed items per new store. What has been the reaction from the vendor community?

Well, the vendor community is always supportive. This is something that has been done for quite some time with most of the major players. We’re looking for the same types of opportunities that have been in play with the other major retailers.

What role does PriceSmart play in your growth strategy?

PriceSmart Foods has a very important role in our strategy. As you know, the demographics are changing in the West and in all of Canada; the ethnic customer base is growing, particularly in major metropolitan areas. PriceSmart Foods allows us to better service the ethnic customer with stores that are what we call mosaic, or East meets West.

For example, our Richmond, [B.C.], store has a full Asian supermarket combined with a western-style supermarket.

We try to ensure that our stores fit the demographics of the community so we don’t put the same cookie-cutter store everywhere. And we give our store managers a tremendous amount of flexibility to purchase local products that suit the communities they serve.

We believe that it’s critical to be unique and to be the best possible place in each and every community for our customers to shop. For example, there’s a supplier who makes potato chips in Cranbrook, so we’ll have those potato chips in our stores. The local person who makes sausages – we’ll have those sausages.

Q&AQ | Q |

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with Darrell Jones


Technology is changing consumers’ shopping habits. How is Overwaitea adapting to this new environment?

We want to deliver great service to our customers in the form that suits them best. Aside from the shopping apps we’ve introduced, we’re launching an online grocery shopping test in three major markets in September. We’re just putting the final pieces together, but customers will be able to purchase groceries online and have them delivered, or they can pick them up at one of our set locations. That’s exciting for us. Basically, it’s Save-on-Foods anywhere, anytime.

Can you tell us where those test markets will be?

No, we’re not quite ready to do that, but they will be in Greater Vancouver.

What do you see as Overwaitea’s greatest challenge going forward?

Managing the extraordinary speed of change that’s happening in the retail business. Whether it’s online shopping or changing customer expectations, we have to make sure that we know what our customers want.

Is there anything you’d like to add?

To be successful, it’s critical for our stores to reflect the communities they’re in and to have store management that has the autonomy to do what’s right for the people in the community. That’s the unique thing about our stores – we’re the local guys!

HOW WOULD YOU DEFINE LEADERSHIP?

It was best coined by [management consultant] Peter Drucker, who said: “Management is doing things right. Leadership is doing the right things.” For me, leadership is all about doing what is right for your business, your people and your community. Therefore, important decisions need to be made always looking with a broad perspective, not just immediate easy solutions. DID YOU HAVE A MENTOR?

Yes, Clarence Heppell, who was the president of the Overwaitea Food Group for 18 years. He transformed the company. Clarence worked for Overwaitea for a total of 42 years, and he taught us that this business is a “people business,” not a “food business.” That context still shapes how we think about our business today: We put our customers and our people first. WHAT IS THE BEST CAREER ADVICE YOU EVER RECEIVED?

If you can find a job you love, you will never work a day in your life. WHAT ADVICE WOULD YOU GIVE TO YOUNG PEOPLE CONSIDERING A CAREER IN THE GROCERY INDUSTRY?

My advice would be to give whatever you do, everything you’ve got. The only limitations you will ever have in the grocery business or in anything you do will be the limitations you put on yourself. Never listen to people who tell you that you cannot do something. Believe in yourself! I once read: “If you work hard on your job, you will make a living. If you work hard in yourself, you can make a fortune!” Great advice!

DARRELLJONES ON

LEADERSHIP

Q |

Q |

Q |

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Q&Acontinued


grocerybusiness.ca

Consumers seem to have an unwavering focus on digestive health these days, and, according to market research firm Mintel Group, that will drive a 48-per-cent increase in sales of gluten-free products over the next few years.

Interesting fact: only one per cent of the population have been diagnosed with celiac disease, and just 7 per cent with gluten sensitivity. Despite this, it’s estimated that 23 per cent of North Americans are now adopting a gluten-free diet for numerous “non-medical reasons.”

So what are the key drivers behind the popularity of gluten-free foods?

The main reasons consumers have embraced a gluten-free lifestyle, according to Hartman Research, are digestive harmony and overall health.

Gluten-free defined Gluten-free foods are those that do not contain the protein gluten (and other reactive proteins), which exists in all forms of wheat, including: faro, durum, semolina, spelt, kamut and einkorn, and all related grains, including barley and rye.

Gluten can be found in baked goods and pastas, as well as in unidentified starches,

Q. Can a gluten-free product also be tasty and nutritious?

A. Our research shows that there is a gap in the market for great-tasting gluten-free products that also offer nutrition. We’ve found a lot of room for improvement in both the health and taste profiles of gluten-free products so that the consumer doesn’t have to compromise.

As well, 57% of gluten-free consumers tell us that they will change brands for increased fibre and better taste in a baked good.

Q. What is different about Promise products?

A. Bakery represents 51% of the Canadian gluten-free food market. Gluten-free consumers are totally frustrated by not getting the quality of baked goods that they need in terms of taste, texture and nutritional value. The vast majority of consumers who go gluten free do so for overall health reasons, for nutritional value or to lose weight. Unfortunately, products on the market in Canada today do not deliver on these key consumer needs; in fact, many are inherently unhealthy, with high fat content, low fibre and high sugar.

Many people who go on a gluten-free diet can actually gain weight unless they are very careful. Promise is different because it has the taste of “normal bread.” In addition, it is low in fat – as low as just 1.7% compared with 9% fat, which is commonplace in others. Promise has very high fibre content and has less sugar, lower calories and lower carbs. It really is nu-tritionally better than anything else out there, and we can’t wait for Canadian gluten-free consumers to try it as we launch here in the coming weeks.

Q. Who is buying gluten-free products?

A. The growth of the gluten-free market is coming from the non-celiac consumer, from people who have chosen to go gluten free, and they do not want to compromise on the taste or nutritional value of the products they buy.

GUT FEEL

Why Consumers Go Gluten-Free47% Digestive and Overall Health

33% Nutritional Value

Tom Doyle, President of Promise Gluten-Free Bakery

Shelf Life

binders, fillers and malts. It can even be found as an additive or ingredient in a variety of foods, such as cold cuts, soups, soy sauce and jelly beans.

When eaten by people with celiac disease or sensitivities, gluten can trigger the production of antibodies that damage the lining of the small intestine, leading to numerous complex health issues.

From a marketing perspective, what do grocers need to know about the gluten-free consumer?

According to Catalina Marketing, the typical dollar ring of gluten-free consumers can be more than three times that of average consumers in supermarket-purchased products.

The reason? Gluten-free consumers create more “from scratch” meals for themselves and/or their families. Plus, they are more likely to purchase higher-margin, premium food products or hard-to-find items that figure into a restricted diet.

26% Weight Loss

22% Improved Mental Function/Concentration

Source: Hartman Research

Q. What is the role of third-party gluten-free certification programs?

A. It is key for manufacturers to reassure consumers that their products are certified gluten free. Initiatives such as the Gluten-Free Certification Program are used to ensure that any foods labelled gluten free do not contain 20 ppm (parts per million) or more of gluten. The certification tool kit includes:

» Conducting in-house gluten testing of starting ingredients or finished foods;

» Employing a third-party laboratory to conduct in-house gluten testing;

» Requesting certificates of gluten analysis from ingredient suppliers;

» Participating in a third-party gluten-free certification program.

Shelf Life

Q. Why is it important to have third-party certification?

A. These programs add value in a number of ways:

» The Gluten-Free Certification Program mark provides a significant third-party market differentiator versus “self-declared” claims, and will be the “mark of trust” when consumers shop for gluten-free products.

» Third-party claims help to remove bias and set standards for a food manufacturer, as well as for the consumer buying these gluten-free products.

» Third-party gluten-free certifications differentiate brands and give consumers added reassurance that they are purchasing the right products for them.

The Gluten-Free Certification Program is endorsed by the Canadian Celiac Association.

Q&A with Paul Valder, president of Allergen Control Group Inc., administrator of the Gluten-Free Certification Program on behalf of the Canadian Celiac Association.

• Artisantasteandqualitysince2001• Certifiedgluten-free• Nostarchyfillers• Zerotransfat• Allnatural• NoGMO’s• Kosher www.patsypie.com

grocerybusiness.ca

“ “Shelf Life

Manufacturers are taking the opportunity to tap into several markets: soy-free, dairy-free, gluten-free, non-GMO and organic. When you consider the “free-from” product claims, it’s interesting that the gluten-free opportunity is actually one of the only ‘allergen claims’ that has a specific diet attached to it. Perhaps this is part of its allure and success.—Tricia Ryan, vice-president, Allergen Control Group

I have reduced my gluten-free consumption because of:

Gluten-Free Market by Retail Format (2013)

RETAIL FORMAT REVENUE ($MILLIONS) MARKET SHARE %

Stand Alone Natural 10.8 11.9

Natural Chains 16.3 18.0

Grocery 48.5 53.4

Mass 7.7 8.5

Club 4.5 4.9

Drug 0.1 0.1

Other 3.0 3.3

Total 90.9 100.0

Source: Nielsen Syndicated Study on Health & Wellness, Canada, 2013Source: Nielsen Syndicated Study on Health & Wellness, Canada, 2013

Source: Markets & Markets 2013

10% Doctor’s instructions

Categories feeling the gluten-free fallout

Breads

Flours

Cookies

56% Personal choice

Among gluten-free adopters, 19% have switched completely to gluten-free products.

May | June 2014 33

• Artisantasteandqualitysince2001• Certifiedgluten-free• Nostarchyfillers• Zerotransfat• Allnatural• NoGMO’s• Kosher www.patsypie.com

WITH

ODOUR GUARD®

2 0 1 4

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VOTED BY CONSUMERSBY CONSUMERS VOTED

VOTED VOTED BY CONSUMERSBY CONSUMERS

IN THE HOUSEHOLD CONVENIENCE CATEGORY

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CONTACT: Ashley P, Michelle T TYPE SAFETY: 8” x 9.875 FILE PREPARED AT: 100%

APR 25, 2014 VERSION: DATE REQUIRED: April 28 PROOF OUTPUT AT: 100%

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1210 Sheppard Avenue East, Suite 700, Toronto ON M2K 1E3

main 416 446 7758 fax 416 446 1923 @6deg www.6deg.caintegrated communications corp.

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Congratulations Thank you for making this year our biggest year ever! The Best New Product Awards remain the country’s largest and most credible CPG Awards program in both the number of categories and the 90,000 consumers who participate. We’re proud to be working with our retail partner Walmart to bring the Best New Product Award winners

to as many shoppers as possible through shelf talkers, online and flyers, and also through other Best New Product Award media/PR programs.

This year, we have expanded the depth of the BNPA product and trend research with our new OptiSpark custom research option, our new Canadian Ethnic Shopper Report and the new BrandSpark Shopper Retailer Report. We are also excited to launch the first annual BrandSpark Most Trusted Award for CPG brands, as voted by 95,000 Canadians. I congratulate the 2014 winners, and thank all those involved with this year’s awards.

Robert LevyPresident & Founder, Best New Product AwardsBrandSpark International

to the 2014 Best New Product Award Winners!

When 90,000 consumers vote for

their favourite products, the winners

are bound to be good. That’s why the

Best New Product Awards (BNPAs),

now in its 11th year, is Canada’s largest

and most credible consumer packaged-

goods (CPG) awards program. This

year, Canadians voted 88 products

as winners in the Food & Beverage,

Health & Beauty, Household, and Kids

categories.

“The Best New Product Awards are 100

per cent consumer voted,” says Robert

Levy, president and CEO of BrandSpark

International market research firm and

founder of the BNPAs. “It’s the real

People’s Choice Awards for products

we buy every day. When shoppers

purchase a Best New Product Award

winner, it means that they’re buying

a product that has been tried and

endorsed by thousands of Canadians

just like them. Consumers believe

that is the most trustworthy source of

recommendations besides their own

friends and family.”

In addition to voting, consumers

participate in the BrandSpark Canadian

Shopper Study, providing feedback

about their everyday purchasing

decisions and their attitudes towards

such topics as food and nutrition,

health, media habits, the economy, the

environment, and new technology.

BEST NEW PRODUCT AWARDS: The People’s ChoiceBy Sally Praskey

Avg. Trial Rate in 2014 BNPA (Among Category Shoppers)

DRIVING ADOPTION OF NEW PRODUCTS IS HARD:

Avg. Awareness of New Products in 2014 BNPA (Among Category Shoppers)

41%

17%

2 0 1 4


COVERGIRL® Clump Crusher Mascara by LashBlast

Pampers® Natural Clean Wipes

Gillette® Pro-Glide™ Sensitive Shave Prep

Pampers® Baby Dry Diapers

Bounty® DuraTowel

TIDE® Plus Febreze® Freshness™ Sport HE Liquid Laundry Detergent

Pepto-Bismol™ To-Go

Gillette® MACH3® Sensitive Men’s Razor

Oral-B® Professional™ Deep Sweep™ Triaction 1000™

Wolfthorn™ Body Wash

Hawkridge™ Body Wash

Touching lives, improving life.TM

Venus & Olay™ Razor in Sugarberry

*BNPA Category winners are chosen using consumer appeal and repurchase intent measures proprietary to BrandSpark International. Winners are based on the highest numerical scores, and not necessarily on statistical significance. For more information visit www.bestnewproductawards.bizThe Best New Products Award logo is a trademark of Best New Products Awards Inc., used under license.

*DRIVE SALES, with these product winners; voted #1 in 2014 by Canadian Consumers*

2 0 1 4

TM

56%

Source: 2014 BrandSpark Canadian Shopper Study.

CANADIAN SHOPPER TRENDS

say they always or sometimes use written shopping lists, but they still purchased items they did not plan to buy on 49% of trips

ARE WILLING TO PAY MORE FOR ENVIRONMENTALLY- FRIENDLY PRODUCTS

84% CHECK GROCERY-STORE FLYERS EVERY WEEK

FLYERS WERE CHECKED BEFORE 51% OF HOUSEHOLD SHOPPING TRIPS

are trying to improve their food consumption habits by

paying attention to the daily intake values shown on product packaging

PREFER TO BUY BRAND-NAME PRODUCTS WHEN THEY’RE ON SALE, AS OPPOSED TO PURCHASING A PRIVATE-LABEL EQUIVALENT

ARE LESS LOYAL TO

COMPANIES NOW THAN BEFORE THE LATEST RECESSION

76%33% 87%

ONLY 39%

Best New Product Awards

A Matter of Trust This year, the company launched the BrandSpark Most Trusted Awards, identifying the brands that Canadian shoppers trust the most in key Food, Beverage, Beauty, Personal Care, Health, Baby & Kids, and Household Care categories. “We had 60 categories this year for the inaugural edition,” explains Levy.

The winning brands are those that consumers cited, unaided, when asked in the Canadian Shopper Study to name their most trusted brands. So far, several major brands are already starting to actively promote the credential.

“We’re very excited about that new credential,” says Levy. “Our study shows that more than 70 per cent of Canadians place a high importance on established trust in a brand when purchasing a product.”

grocerybusiness.ca

COVERGIRL® Clump Crusher Mascara by LashBlast

Pampers® Natural Clean Wipes

Gillette® Pro-Glide™ Sensitive Shave Prep

Pampers® Baby Dry Diapers

Bounty® DuraTowel

TIDE® Plus Febreze® Freshness™ Sport HE Liquid Laundry Detergent

Pepto-Bismol™ To-Go

Gillette® MACH3® Sensitive Men’s Razor

Oral-B® Professional™ Deep Sweep™ Triaction 1000™

Wolfthorn™ Body Wash

Hawkridge™ Body Wash

Touching lives, improving life.TM

Venus & Olay™ Razor in Sugarberry

*BNPA Category winners are chosen using consumer appeal and repurchase intent measures proprietary to BrandSpark International. Winners are based on the highest numerical scores, and not necessarily on statistical significance. For more information visit www.bestnewproductawards.bizThe Best New Products Award logo is a trademark of Best New Products Awards Inc., used under license.

*DRIVE SALES, with these product winners; voted #1 in 2014 by Canadian Consumers*

2 0 1 4

TM

May | June 2014 37

Levy and his team of researchers identified several trends in consumer shopping habits that prevailed in the 2014 Canadian Shopper Study.

Shoppers continue to seek ways to save money on their shopping, he says. While they will generally buy one of a set of preferred brands, they will choose that which offers the best promotion that week. In their efforts to save money, consumers are increasingly shopping at banners that they feel offer everyday low prices.

Levy also notes that, while readership for digital flyers is increasing, “they remain secondary in use to the traditional print

format. Canadians are among the highest readers of print flyers in the western world.”

Increasing numbers of shoppers are using their smartphones in-store, says Levy, with many leveraging coupon apps like SnapSaves (coupon scanning for cash-back rewards). However, the paper coupon still holds sway, being redeemed on three in 10 household shopping trips. And although consumers are spending more time online, traditional retailer channels remain strong; shoppers continue to cite in-store samples, flyers, direct-mail coupons, and retail displays as the most effective means to learn about new products.

OTHER TRENDS:• Consumers are increasingly concerned with

sugars and artificial sweeteners; • Natural foods are increasing in popularity; • Organics remain appealing, but for three in

four shoppers, only at the same price or a minimal price premium;

• An emerging issue for Canadians is genetically modified organisms (GMOs), which four in 10 shoppers cited as a concern.

For more information on how to access the insights from the BrandSpark Canadian Shopper Study, please contact Philip Scrutton: [email protected] or 647-727-3590.

Tracking Shoppers’ Trends

INNOVATORS By Maureen Atkinson

Retail innovators think about an existing business in a completely different way, often shattering the tried-and-true methods of distribution and selling. They may seamlessly blend the online and offline retail experience, allowing customers to shop where and how they want, at any time, and offering them the best of the physical and virtual worlds. Often, these new models force one to rethink the very nature of what retailing can be.

Those are the conclusions of Ebeltoft Group’s Retail Innovations 9, its latest compilation of leading-edge innovation, which highlights individual ideas and identifies emerging themes. With 21 members in 20 countries – in-cluding J.C. Williams Group in Canada – the company spans the world in its search for retail innovators, selecting examples from 22 countries for its ninth edition. Here we highlight six examples that are particularly relevant to the grocery industry.

“In the competitive retail world, it’s critical, especially in the grocery sector, to not compete on a commodity basis and to truly differenti-ate your retail, service and product offering. Brick-and-mortar innovation is crucial for developing new incen-tives and experiences that will motivate consumers to visit the store.”

– John Williams, senior partner, strategy and new concepts; and Maureen Atkinson, senior partner, research insights, J.C. Williams Group

International

Retail innovators are notable for their ability to adapt many game-changing ideas, as well as their penchant for looking beyond their own category for inspiration. They create new business models that may incorporate elements of cross-channel retailing, deep customer involvement, experiential shopping, and the intelligent use of new technologies.

TheThe


International

ArcimboArcimbo uses an interesting and obvious complement to an online store/drive-to-warehouse concept. Customers can order groceries online and pickup in-store, but during the same trip they can hand-pick the items they care about most, like fresh produce. This allows for customers to have a quick and efficient trip to the grocery store while at the same time provides a solution for the retailer who has struggled to persuade customers to purchase fresh foods online.

Let’s face it, most of us prefer to feel the firmness of a mango or a peach ourselves before we can be convinced of buying it!

arcimbo.fr

FRANCE

40 May | June 2014

International

Mega Image Concept StoreEveryone talks about differentiation, but very few actually do it. Mega Image uses a variety of tactics to communicate to customers how it is unique, such as incorporating distinctive store design features (e.g., specialized food islands, wooden furnishings) and superior technology to keep produce fresh, as well as focusing on the exclusive grocery segment (80 per cent of shelf space is devoted to exclusive products).

mega-image.ro

Continente StoresContinente Stores brings together the benefits of the very large and the very small to offer its customers a total shopping experience that includes several specialty stores within a mass hypermarket. Continente takes the hypermarket concept even further to include services that aren’t normally associated with food, such as a nail salon, in an attempt to create a one-stop-shopping destination.

continente.pt

ROMANIA

PORTUGAL

41May | June 2014

BreadTalkBreadTalk has been a closely watched concept in food retail since its inception. What could be mundane is made fascinating, and the company has refreshed its stores to combine the old and the new. BreadTalk also promotes healthy living, which is not normally associated with bread.

breadtalk.com

Petra MoraPetra Mora is a retailer that is learning from other retail sectors, such as fashion. It offers affordable private-label gourmet products, both in-store and online.

Leading retailers don’t just look at companies in their own category; they go beyond and look at other product ranges to search for solutions and opportunities from the retail industry as a whole.

petramora.com

SINGAPORE

SPAIN

International

About J.C. Williams GroupJ.C. Williams Group retail consultancy has offices in Toronto, Montreal and internationally. The company has senior advisor specialists in a variety of areas, including market research, strategy/new concepts and branding.jcwg.com

About Ebeltoft GroupEbeltoft Group is a global alliance of 21 consultancy companies with a focus on retail. Since 1990, the company has helped retailers, as well as suppliers to the retail sector, remain competitive by blending global retail expertise with each member’s local insight. ebeltoftgroup.com

About Retail Innovations 9th EditionRetail lnnovations 9 is Ebeltoft Group’s latest compilation of leading-edge retail innovation. To obtain a copy of this publication, go to: jcwg.com/pages/library

International

Olive Market (CJ Foods)Olive Market is a retail showcase for manufacturer CJ Foods. The store displays a wide variety of merchandise, while demonstrat-ing how various products are used in cooking. Refrigerated and prepared foods, TV displays featuring company-sponsored cooking shows and food service stations all work to create a unique “market hall” experience.

cjfoods.com

KOREA

43May | June 2014

wellpict.com

If you’re looking for big profi ts, the smart money is on Well•Pict’s Premium Berries. Withtheir superior size, fabulous fl avor and abundant health benefi ts, it’s no wonder customersask for them by name. So order these red beauties today, and make yourself some green.

USA 831-722-3871

grocerybusiness.ca

PARMALATAstro® Original Greek Yogourt, Banana Cream Pie

Food

Healthy food options, diverse flavours and easy to prepare foods dominate the shortlist of new products vying for the 21st annual Canadian Grand Prix New Product Awards. Retail Council of Canada (RCC) announced 89 finalist products in 26 food, non-food and private-label categories, as selected by a 32-member jury.

Winners will be announced at the Grand Prix Gala on June 4, 2014 at the Toronto Congress Centre, as part of the STORE 2014 retail conference presented by RCC.

Congratulations TO THE FINALISTS…

21ST ANNUAL CANADIAN GRAND PRIX NEW PRODUCT AWARDS

MONDELEZ CANADAPotato Thins

45May | June 2014

filename: 399_DN_DELI_Grocery_E

2client: Sofina bleed: 9.5” x 11.375” colours: 4/0

docket: 399 trim: 9” x 10.875” spot:

job description: Deli Naturally live: 8” x 9.875” built at: 100%510 Front Street W., Suite 300, Toronto, ON 416.252.1450 | 1401 West 8th Avenue, Suite 210, Vancouver, BC 604.687.0544

REVISION

INTRODUCINGNO PRESERVATIVES*

NO GLUTEN NO ARTIFICIAL INGREDIENTS

For trade inquiries call 1-800-663-8695 sofinafoods.com

UNIqUe-TO-CATeGORY FLAVOURS

10 deLICIOUS VARIeTIeS

SheLF eFFICIeNT pACkAGING

* Ex

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for t

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in th

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BRINGING TASTe INNOVATION TO The GROwING NATURAL deLI CATeGORY.

grocerybusiness.ca

CLEARWATER SEAFOODSScallops & Sauce

DARE FOODS LTD.Boulangerie Grissol® Sweet Thins

FERRERO CANADATic Tac

B&G FOODSCrockPot Seasoning Mixes

CANADA BREAD COMPANYDempster’s Garden Vegetable Bread

COUNTRY MAGICBloo Juice - Blueberry Citrus and Blueberry

MORE FINALISTS

GAY LEA FOODSCinnamon & Brown Sugar Spreadables

A. LASSONDE INC.Del Monte World

Food

May | June 2014 47

Food

DARE FOODSBreton® Popped!™ - Sea Salt and BBQ

DELTA DAILY FOODFleury Michon Surimi Rolls

FINICA FOOD SPECIALTIES LTD.Zerto Fresh Mozzarella Pre-Sliced

MORE FINALISTS

GARDEN PROTEIN INTERNATIONALGardein

HAPPY PLANET FOODSHappy Planet Fresh Soup

KRAFT CANADA INC.Philadelphia Chocolate SpreadMade with Cream Cheese

KRAFT CANADA INC.Kraft Fruit & Veg

KRAFT CANADA INC.Cracker Barrel

KRAFT CANADA INC.Kraft Peanut Butter Flavours

May | June 201448

grocerybusiness.ca

Food

HAPPY PLANET FOODSHappy Planet Fresh Soup

LECLERC Go Pure

MAPLE LEAFSchneiders® Country Naturals® Burgers

MAPLE LEAFSchneiders® Country Naturals® Sausage Snacks

MAPLE LEAFSchneiders® Country Naturals® Pork Sausagein Lamb Casing

ULTIMA FOODSIÖGO 0% with Stevia Extract

GENERAL MILLSFibre 1 with Protein

May | June 2014 49

PAC K AG I N G CO N S O R T I U M

TM

• Day 1: Key note speakers will open with current and future retail trends driving consumer engagementand sustainable supply chain innovation. A collaborative workshop will feature a retailer, brand owner, package maker, waste manager and government leader demonstrating sustainable design life-cyclethinking for our imaginary product.• Day 2 : The journey will continue and feature disruptive packaging innovation, creativity from graphicdesign students and celebration.• Day 3 : Next life value-added solutions for packaging waste therefore closing the loop on our imaginarypackaged product.

Presented by:

Tom SzakyEric Ashworth Donna Razik Al Metauro Ron Davis Bromlyn Bethune Karina Espinel Liberatore Trombetta

PAC Symposium, Toronto Sept. 30, Oct. 1 & 2, 2014

Food

NESTLÉ CANADAAero®

NEW ERA NUTRITION INC.Solo Gl Energy and Nutrition Bars

NUTRINORLaura Secord Chocolate Milk

SMUCKER FOODSRobin Hood® Nutri Flour Blend™

UNILEVER CANADAFruttare™ Frozen Fruit Bars

WESTON BAKERIES LIMITED Country Harvest™ Veggie Bread

MORE FINALISTS

PACIFIC FOODSOrganic Mushroom Broth

A&V 2000 INC.NuTerra™ Granola

Thank You!

Visit cpma.ca to see the full list of sponsors!

89th ANNUAL

CHAIRMAN’S CLUB ($25,000 and up)C.H. Robinson Canadian Grocer Chiquita Brands North America Stemilt Growers Inc.Sunkist Growers The Oppenheimer GroupThe Packer PLATINUM ($17,500 – $24,999)Del Monte Fresh Produce Inc.Mucci Farms Paramount Citrus/POM WonderfulWonderful Pistachios/Wonderful AlmondsThe Produce News The Star GroupWindset Farms Inc.

GOLD ($10,000 – $17,499)Association québécoise de la distribution de fruits

et légumes • BCfresh • BC Tree Fruits Ltd. • California

Strawberry Commission • California Tomato Farmers/

Florida Tomato Committee • Dole Food Company

FirstFruits Marketing of WA LLC • Fresh Direct Produce

Ltd. • Giumarra Companies • H&W Produce Corp.

Highline Mushrooms • Ippolito Fruit & Produce Ltd.

JemD Farms • Krown Produce/The Lid Company

Loblaws • Mastronardi Produce • Pear Bureau

Northwest • Rainier Fruit Company • Sobeys • Target

Transport Ltd. • Washington Apple Commission

On behalf of CPMA, the organizing committee and the produce industry, we would like to express sincere thanks to all of our sponsors for their support of CPMA’s 89th Annual Convention and Trade Show.

Our sponsors are an integral part of this annual event, going above and beyond to assist with the business, social, companion programs, and more. Their active participation ensured that the Canadian Produce Marketing Association’s 2014 Convention & Trade Show was memorable for all.

Size: 9 x 5.375” Bleeds: Yes Screen: 150 lpi

CMYK604.879.9222

Docket #: 53216 Client: CPMAJob: Grocery Business AdDate: March 19, 2014Version: FINAL

grocerybusiness.ca

Food

McCORMICKClub House Gluten-Free Gravy Mix

PREMIÈRE MOISSON Mini Pastries 189 Harwood

WAFU INC. WAFU® MAYONAIZU®

TREE OF LIFEGreen & Black’s Organic Chocolate

QUAKERQuaker™ Harvest Crunch® Quinoa Bars

YOPLAITYopa!™ Stirred Greek Yogurt

B&G FOODSMrs Dash® Seasoning Mix Packets

May | June 2014 53

Thank You!

Visit cpma.ca to see the full list of sponsors!

89th ANNUAL

CHAIRMAN’S CLUB ($25,000 and up)C.H. Robinson Canadian Grocer Chiquita Brands North America Stemilt Growers Inc.Sunkist Growers The Oppenheimer GroupThe Packer PLATINUM ($17,500 – $24,999)Del Monte Fresh Produce Inc.Mucci Farms Paramount Citrus/POM WonderfulWonderful Pistachios/Wonderful AlmondsThe Produce News The Star GroupWindset Farms Inc.

GOLD ($10,000 – $17,499)Association québécoise de la distribution de fruits

et légumes • BCfresh • BC Tree Fruits Ltd. • California

Strawberry Commission • California Tomato Farmers/

Florida Tomato Committee • Dole Food Company

FirstFruits Marketing of WA LLC • Fresh Direct Produce

Ltd. • Giumarra Companies • H&W Produce Corp.

Highline Mushrooms • Ippolito Fruit & Produce Ltd.

JemD Farms • Krown Produce/The Lid Company

Loblaws • Mastronardi Produce • Pear Bureau

Northwest • Rainier Fruit Company • Sobeys • Target

Transport Ltd. • Washington Apple Commission

On behalf of CPMA, the organizing committee and the produce industry, we would like to express sincere thanks to all of our sponsors for their support of CPMA’s 89th Annual Convention and Trade Show.

Our sponsors are an integral part of this annual event, going above and beyond to assist with the business, social, companion programs, and more. Their active participation ensured that the Canadian Produce Marketing Association’s 2014 Convention & Trade Show was memorable for all.

Size: 9 x 5.375” Bleeds: Yes Screen: 150 lpi

CMYK604.879.9222

Docket #: 53216 Client: CPMAJob: Grocery Business AdDate: March 19, 2014Version: FINAL

Non-Food

DLM FOODS CANADAMeow Mix Tender CentersPaté Toppers

GROUP SEBT-Fal OptiGrill

JARDEN BRANDED CONSUMABLESFirst Alert ATOM Smoke Alarm

JOHNSON & JOHNSONPolysporin Eczema Essentials

MORE FINALISTS

CARLTON CARDSSparkle Knits

PROCTER & GAMBLEGillette Venus & Olay Exfoliating Razor

PROCTER & GAMBLEPantene Pro-V Expert Collection AgeDefy Shampoo and Conditioner

PROCTER & GAMBLECascade Platinum Citrus

PROCTER & GAMBLEOld Spice Wild Collection Body Wash

IRVING CONSUMER PRODUCTSRoyal Tiger Towel

WHIRLPOOL CORPORATIONAffresh Coffeemaker Cleaner

May | June 201454

CKF INC.Royal Chinet

Non-Food

PROCTER & GAMBLEZzzQuil Liquicaps Sleep-AidIAMs So Good with Savory ChickenSecret ClinicalTampax Radiant CompakBounty DuraTowelFebreze Stick and Refresh

S C JOHNSONGlade Wax Melts

MORE FINALISTS

CARLTON CARDSSparkle Knits

NESTLÉ PURINA PETCAREPurina Beneful Baked Delights

KRUGERCashmere UltraLuxe

Non-Food

SAVONS PROLAVBio-Vert

SOLO CUP CANADASolo Varietal Plastic Wine Glasses

TRUE EARTH PAPER CORPORATIONTrue Earth Paper - Dragon Towels

MORE FINALISTS CLOROXGlad Compostable OdorShield

CLOROXgüd from Burt’s Bees

CLOROXGlad Easy-Tie Kitchen Catchers

CLOROXClorox Bleach Foamer

grocerybusiness.ca

Private Label

METRO INC.Irresistables Puff PastriesSelection Ice CreamIrresistables ShrimpIrresistables Gluten Free Frozen Meal Selection Soft Dairy Swirl Ice Cream

MORE FINALISTS

CLOROXGlad Easy-Tie Kitchen Catchers

FEDERATED COOPGold Saskatoon Berry Ice Cream

FEDERATED COOPGold Strawberry, Yogurt & Banana Smoothie

LONGO’SChicken Pad Thai

LONGO’SWhite Balsamic Vinegar

METROMini Sorbet Bars

METROLife Smart Smoothie

May | June 2014 57

SOBEYS INC.Sensations Chocolate Extravagance Ice CreamSensations Stuffed BurgerDebi Lilly Fluted Petite Vase

WALMART CANADAOur Finest Peanut Butter Burst Cookies

MORE FINALISTS

Private Label

SOBEYS INC.Sensations Netherlands Pays - Bas Speculoos Spiced Cookie Crumble Ice Cream

WALMARTOur Finest Chocolates

WALMARTOur Finest Preserve Style Spread

SOBEYS INC.Compliments presents Jamie Oliver Flattened Chicken

SOBEYS INC.Sensations No Limits BBQ Sauce

SOBEYS INC.Edwards Tassimo

May | June 201458

CANADIAN PRODUCE MARKETING ASSOCIATION TRADE SHOW AND CONFERENCEAPRIL 2-4, 2014, VANCOUVER, B.C.

grocery BUSINESS WAS THERE

grocerybusiness.ca

WALMARTOur Finest Chocolates

WALMARTOur Finest Preserve Style Spread

May | June 2014 59

Research

WHAT’S IN STORE 2014ENGAGING THE ELUSIVE CONSUMER

+8% Vegetables

+8% Home Meal Replacements

+6% Hot Beverages

+6% Processed Meat

+5% Fruit

TOP 5

-5% Deli Meat

-4% Natural Cheese

-4% Cold Beverages

-1% Shaving

-1% Household Products

BOTTOM 5

“ “

2014 - NIELSEN SALES FORECASTTOTAL SALES

The No. 1 global consumer concern after the economy is health

IN 2013 THERE WERE MIXED RESULTS

GROW IT OR BUY IT: CAPITALIZE ON AN UNSATURATED MARKETDon’t be caught with a healthand wellness void

DOLLARS UNITS

1.5 - 2% 0 - .5%

In its recent study, What’s in Store 2014, Engaging the Elusive Consumer, Nielsen found that Canadian shoppers are looking for value, eating healthier and shopping outside traditional channels.

May | June 201460

grocerybusiness.ca

Research

FIND YOUR CONSUMER• Find them – Segmentation and Precision

• Have a laser focus on your consumer

• Know them better than they know themselves

LIVE TO INNOVATE• Innovation is as much a mindset as it is a product

launch

• Communicate LESS about me and more about you

• Innovate along the path to purchase

• Demand, assortment, shopability, functionality, social sharing

208

173ANNUAL SHOPPING TRIPS

IN 2008

IN 2013

“ “SOCIALRESPONSIBILITY

CUSTOMIZATION

NICHE PRODUCTS SHOPPING LESS,

ENGAGING MORE

WIN THE ELUSIVE CONSUMER

CREATE A REASON AND THEY WILL BUY

Rate of change is only going to increase; windows of opportunity exist everywhere, but will only be won by those with an unwavering focus on the consumer.

-16%

• Align innovation to deeper trends such as wellness

MEET CONSUMERS WHERE THEY ARE• Be deliberate about how you connect with them

• Technology and lifestyles are creating opportunities for profitable growth

• Close the loyalty gap

• Plan, buy and evaluate media across all platforms in real time

• Leverage the small cost/big impact media

• Underdogs can become top dogs

May | June 2014 61

LIST IT New products you need to know about!

Creamy Icings Made with Real YogurtCake Mate’s new Yogurt Crème icings are made with real yogurt and offer a smooth and creamy yogurt taste. Yogurt Crème is easy to use, is gluten free and shelf stable, and comes in three delicious flavours: Vanilla Bean, Chocolate and Strawberry.

cakemate.com

New Spreadable Fine CheesesParmalat introduces a new line of spreadable fine cheeses: President Spreadable Brie, a rich, creamy essence of Brie, without the rind; and President Spreadable Feta, the rich, creamy essence of Feta, without the crumble.

For more details, contact your Parmalat sales representative at 1-800-563-1515

62 May | June 2014

grocerybusiness.ca

A Complete Protein SnackMaple Leaf Natural Selections Protinis is a new, complete protein snack made with delicious oven-roasted seasoned chicken or combinations of oven-roasted chicken and dried fruit. Made with natural ingredients, Protinis is a smart and satisfying snack option available in eight flavours.

protinis.ca

The Leading EdgeGeneral Mills is rejuvenating the cereal category with Edge with Protein. Edge is a flake cereal that offers the stacked nutrition of 11g of protein, is high in vitamin B and very high in fibre.

generalmills.ca

New Veggies & Hummus TraysMann’s convenient new snack trays feature fresh-cut vegetables and Sabra hummus. These vegetable trays feature micro-perforation technology, which holds veggies in place, keeping them fresh and helping to extend shelf life.

veggiesmadeeasy.com

New Snacking DelightsFibre 1 expands the nutritious portable snacks category with two new Delights flavours: Lemon and Chocolate Chip.

generalmills.ca

May | June 2014 63

it figures

Takeaway Your online presence is important, so have an easy-to-navigate site that is mobile friendly. It’s just as important as having an engaging storefront.

Takeaway Ensure that your app is used. Communicate with consumers often, to get feedback about what’s working and what is relevant to them.

Takeaway Social media is redefining word of mouth as consumers trust family and friends’ feedback more than advertising.

Engage your customer in a conversation – foster a dialogue, not a monologue.

SOCIAL MEDIA

of Canadians use social media to help make purchase decisions

51%20%

of consumers have downloaded retailer-specific applications on their phones, with grocery being the most popular (51%)

51% of Canadians own a smartphone, 12% are expected to buy one in the next year

64 May | June 2014

54%

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

Carman Allison

Takeaway How do you establish a social media presence that’s influential and personal? Build your network by daily searching, reading, tagging and asking questions.

Takeaway Through social media, you have access to the largest, most unaided focus group, so ask for feedback, reciprocate and respond to inquiries. Be genuine in your interactions – today’s consumers are passing your comments on to others.

68% OF CONSUMERS VISIT SOCIAL MEDIA SITES

54% of consumers are willing to get more involved in new product input, 48% in product reviews

Takeaway Consumers are more willing to share and get involved when you are interested and listen. Position yourself to be found by industry influencers and interested consumers.

Consumers are most willing to connect with loyalty programs (29%) and grocery retailers (25%) using social media

ALL STATS COURTESY: NIELSEN

81% OF THEM ARE UNDER 35 YEARS OLD

65May | June 2014

CANADIAN FEDERATION OF INDEPENDENT GROCERS GROCERY SHOWCASE WESTAPRIL 6-7, 2014, VANCOUVER, B.C.

grocery BUSINESS WAS THERE

“PERRY’S POINT OF VIEW” WILL RETURN.

May | June 201466

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

Celebrating 50 years as the voice of the natural health industry

• natural health products • health and beauty • sports nutrition • specialty food • nutraceuticals • organics

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

Celebrating 50 years as the voice of the natural health industry

• natural health products • health and beauty • sports nutrition • specialty food • nutraceuticals • organics

®

Metro Toronto Convention Centre, South Building

Conference September 11 & 12Trade Show September 13 & 14

NEW LOCATION

CMYK

CHFA 14-8960

CHFA East – GB AD 2014

April 30, 2014

Date:Signature:Approved By:

PLEASE CHECK CAREFULLY BEFORE SIGNING.You are responsible for its final approval so check all copy, check all dimensions and check colour separation. WHAT YOU SEE HERE IS WHAT WILL BE PRINTED.

Client: Date:Docket #

Size:

Ver.#

Project:

Underground Productions Inc.

56 Shorting Road, Toronto, ON M1S 3S3T 416·289·6649 F 416·289·2812

studio@undergroundproductionsinc.comwww.undergroundproductionsinc.com

9” x 10.875”

PLAN TO ATTEND!

Scallops made simple.

Scallops & Sauce - simple to prepare. Simply delicious. Wild-caught scallops coated in one of three signature sauces. Sauté in six minutes and customize with your favourite ingredients. Add them to your seafood lineup today.

Alsoavailable!available!

clearwater.ca/scallopsandsauce • (905) 858-9514 • [email protected]

May/June 2014

Documents

Transcript of May/June 2014