wg jan/feb 05 - part 1 - western...

RETURN UNDELIVERED TO MERCURY PUBLICATIONS LTD., 1313 BORDER STREET _ UN

IT 16,

WINNIPEG MB R3H 0X4 CPM

SALES AGREEMENT #40062509

JULY/AUGUST 2015

(Left to right) Darryll Jones, OFG President; City of Winnipeg Councillor Devi Sharma; David Chomiak, Manitoba Minister of Mineral Resources; Jim Pattison, The Pattison Group and David Northcott, Winnipeg Harvest

15 Lunch Box LogisticsHow retailers can help parents make back to school a mutual win-win.

25 The Consumer’s Call for Fair & CleanDelivering organic & fair trade produce to meet customer demands.

27 The Whole World in Your HandsPriceSmart’s International store caters to changing demographics.

29 Soup’s OnHealth and diversity help stir the pot.

31 Nature’s MilkCoconut milk trends higher because of health halo.

33 More than Potato ChipsCanadians continue to salivate for salty snacks.

37 Candy CrushConsumers seek healthier confectionery but it’s still mostly about the fun.

43 Liquid GoldOils hold broad appeal.

47 Shining a Light on SalesStore lighting systems see major improvements in energy use and quality.

51 Canadian Grand Prix New Products Awards - Winners Announced

57 The Only ConstantChilled HMRs are transforming the retail grocery landscape.

60 Make It Your OwnToday’s baking ingredients let you create how you want.

65 Building BlocksNatural ingredients, artisan varieties, and flavours drive the cheese category.

69 The Hidden Sustainability OpportunityHow retailers can drive sustainable sourcing from the ground up.

71 Alberta Food Report

WWW.WESTERNGROCER.COM 5

On Our Cover

Publisher & Editor, Frank Yeo; Associate Publisher & National Account Manager, Robin Bradley; Western Account Manager, Melanie Bayluk; Editor/Editorial Production Coordinator: Nicole Sherwood;Advertising Production Manager, Marsha Coombe; Creative Manager, Sarra Burton; Circulation Department e-mail: [email protected]; Advertising Consultants: David Bastable, Sheilah Davila,Loren Fox, Elaine Dufault, Edna Saito. Publisher: Western Grocer Magazine is published bi-monthly by Mercury Publications Limited Head Office: 1313 Border Street, Unit 16, Winnipeg, MB R2H 0X4 Tel: (204)954-2085 Fax: (204) 954-2057 www.mercury.mb.ca • e-mail: [email protected] Associated Publications: C-Store Canada Magazine, Votre Dépanneur, Commerce & Industry Magazine, Western Hotelier,Western Restaurant News, and Bar & Beverage Business. Circulation: Western Grocer Magazine serves the grocery and allied non-food industries. Readership includes distributors, brokers,manufacturers, wholesalers, independent grocers, food processors, bakeries, supermarkets, convenience stores, principal food service outlets, food researchers and consultants, government, voluntarygroups and co-ops in the four Western Canadian provinces of Manitoba, Saskatchewan, Alberta, British Columbia, Northern Canada and the Northwest Ontario area. Subscription Rates: $45.00 for oneyear, $63.00 for two years, $93.00 for three years; $5.00 for single copy, plus 7% GST. Canadian rates only. Advertising: Deadline is 25th of the first month. Editorial: The contents of this publication maynot be reproduced in whole or in part without written consent of publisher. Photo credits not given unless requested in writing along with photo submission.

Publication Mail Agreement No: 40062509. ISSN# 0705-906X. Return Undeliverable Canadian addresses to Circulation Dept. at 1313 Border Street, Unit 16, Winnipeg MB R3H 0X4 e-mail: [email protected] Printed in Canada

10 Overwaitea Food GroupBecomes a true regional player.

Cover Photography: Steve Sanilkowski - Chronic Creative

Departments

In this Issue

JULY/AUGUST 2015 • VOLUME 101 , NO.3

Serving Western Canadians for Over 99 Years

33

37

25

4 WWW.WESTERNGROCER.COM

6 Market Update 78 Taking Stock10 Calendar of Events 75 In the Bag41 Category Management

With the recent announcement that Save-On Foods willbe opening two locations in Winnipeg, and plans afoot forexpansion in Saskatchewan, Jimmy Pattison’s OverwaiteaFood Group is making the jump to become a fully regionalplayer in Western Canada, a move that has been anticipatednow for some time. The move makes all the more sense withSobeys’ purchase of Canada Safeway, the consequences ofwhich are now unfolding with greater rationalization through store closures and con-solidation and automation of warehouses throughout the West. Once again, the Westwill have two very strong players vying for the consumer dollar.Save-On Food’s expansion across the West means that it is now very unlikely

that Metro will undertake any initiative here... unless it is making a pitch forSave-On itself, which was also widely rumoured for some time. But it seems prettyclear that the Pattison Group is not very interested in that at this juncture.Indeed, the company seems intent on continuing to build its footprint and withSobeys still shedding locations and closing warehouse operations (it was recentlyannounced that the entire King Edward operation in Winnipeg will be shuttered)there will be plenty of real estate available.Of course, the recent announcements only concern Save-On Foods. Overwaitea also

operates Cooper’s Foods, Urban Fare and PriceSmart Foods (see article this issue) andthese banners may yet make an appearance in Manitoba and Saskatchewan as well. Itall adds up to a very dynamic and fluid market at the moment which no doubt willlead to a re-balancing of market share as time goes by.

Frank Yeo,Publisher & Editor

The Changing Face ofGrocery Retail in the West

publisher’s perspective

Robin Bradley

Associate Publisher &National Account Manager

[email protected]

Melanie Bayluk

Western Account Manager

[email protected]

43

marketupdate

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TASTE THE FUTURE

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Anuga impresses as the most important and largest food trade fair once again in 2015 with a

diverse line-up of international exhibitors. The ten Anuga trade fairs bring the interests of the

exhibitors and the visitors together in a focused manner. Look forward to top-class evening

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save up to 44%: www.anuga.com/tickets

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1


Upcoming EVENTS

September 19-20, 2015CHFA EastMetro Toronto Convention Centre (South Building)Toronto, ONFor more info: www.chfa.ca

September 28-29, 2015Grocery InnovationsCanada 2015Toronto Congress CentreToronto, ONFor more info: www.groceryinnovations.com

October 10-13, 2015National Frozen &Refrigerated Foods ConventionHilton Anatole. Dallas, TX, U.S.AFor more info:www.NFRAweb.org

October 10-14, 2015Anuga 2015Cologne, GermanyFore more info:www.anuga.com

April 4-5, 2016Grocery & SpecialtyFood WestVancouver Convention CentreVancouver, BCFor more info: www.cfig.ca

April 13-15, 2016SIAL CanadaPalais des congresMontreal, QuebecFor more info: www.sialcanada.com

May 7-8, 2016CHFA WestVancouver Convention Cen-tre, West BuildingVancouver, BCFor more info: www.chfa.ca

Anuga 2015 - Fully Booked, Excellent LineupFrom October 10 to 14, around 6,800 exhibitors from all over the world are expected to take part in the most important and biggest summit meeting of theinternational food industry: Anuga 2015.

Anuga spans the entire Cologne fairgrounds, i.e. 284,000 m2 ofgross exhibition space. The leading trade fair, which is held in Cologneevery two years, presents the entire spectrum of the internationaloffer of food and drinks. All 10 trade fairs boast a strong, internationallineup of exhibitors, which is especially underlined by the participa-tion of numerous key players. New country participations are bringing even more diversityand internationality to Anuga. Around 155,000 trade visitors from 187 countries attendedthe last trade fair in 2013.

Once again in 2015, the successful concept of Anuga — “10 trade fairs under one roof”— will ensure a good overview and a well-arranged layout divided up into themed areas. Theoverview of the range of exhibits and the hall plan demonstrate that Anuga is again in 2015the decisive information and sourcing platform of the international food business.

Anuga Fine Food is the biggest of the Anuga trade fairs and bundles the exhibition seg-ments delicatessen, gourmet and basic food. Numerous international pavilions offer thebuyers an overview of the specialities of the respective country. The big country pavilions inthe Anuga Fine Food zone include for instance Italy, France, Greece, Great Britain, Spain andTurkey. Countries such as China, India, Korea, Mexico, Singapore and Thailand are also rep-resented as well as Austria, Switzerland and Poland. Newcomers among the country pavil-ions this year include the Fiji Islands, Georgia, Qatar, Moldavia, Saudi Arabia and the Ukraine.

Among the ten distinct trade fairs, there is frozen foods, meats, dairy, chilled and freshfood, bread and bakery, hot beverages, drinks, organic, foodservice and retail technology.

marketupdate


Johnsonville Connects WithCanadians over Hockey,Multicultural Meals and BackyardBarbecueing

Johnsonville is deepening its connection with Canadians,with a new campaign celebrating its rich history as an experi-enced, successful and the most authentic purveyor of quality

sausages. Johnsonville’s campaign aims to surprise and delight Canadian consumersthrough multiple touchpoints. They include a TV spot and print ads that take Canadiansback to Johnsonville’s humble, small-town beginnings 70 years ago, noting that whilethe butcher shop where it was born might have changed quite a bit since then, the fam-ily recipe that gave birth to Johnsonville’s sumptuous sausages has stayed exactly thesame. The campaign also includes a significant social media component that’s beingbrought to life on platforms including facebook, twitter, Pinterest and Johnsonville’smobile-optimized website, which was launched at the end of June. It will share contentthat, while telling the Johnsonville story, uses four other key storytelling themes — theunique flavour of Johnsonville, the backyard experience, the big game at home and amulticultural feast — to promote things like recipe inspirations and barbecue tips.

PECO Pallet

Promotes Lisa Vegsoto General Manager,Canada and OpensNew Depot inCalgary

PECO Pallet announc-ed that Lisa Vegso hasbeen promoted to theposition of generalmanager, Canada. Inthis new position, Vegsowill have overall respon-sibility for PECO’s sales,service, and operations in Canada. Thecompany recently opened a new pal-let depot in Calgary to service the pal-let pooler’s customers in Calgary andsurrounding areas.

Adrian Potgieter, senior vice-presidentof sales, stated, “Opening a new depot inCalgary reflects PECO Pallet’s commit-ment to serving the Canadian market. Weprovide the highest quality pallets andbest service in the industry and are build-ing a robust infrastructure to supportcontinued growth throughout Canada.”


GraceKennedy Targets Canada’s GrowingLatin American Community

GraceKennedy is firmly committed tobe the leading distributor of Latin Amer-ican food products by supplying thisexciting growth market with brands such asCOLOMBINA, SAN MARCOS and LA FE. “We areready to market this broad range of almost 80 products toCanadian grocery retailers and establish a profitable, well-man-aged Latino section in international aisles to service this grow-ing community. We have operated in Canada for 30 years andhave a long track record of bringing retailers specialty brandsthat consumers trust and love from back home,” says LuckyLankage, GraceKennedy’s president and CEO.

Guru, World’s FirstNatural Energy Drink,Announces CanadaOrganic Certification

GURU Beverage Inc has achieved another company milestoneby obtaining Canada Organic certification for GURU EnergyDrink. The certification, issued by Ecocert Canada, ensures thatGURU beverages are produced without antibiotics, pesticides,irradiation or bioengineering. In addition to this new certifica-tion, GURU beverages are also certified vegan, gluten-free, andnon-GMO Project Verified.

Correction NoticeIn the last issue of Western Grocer Magazine Mark Pelechaty

from Lowe Mechanical was listed as Mark Polecat in the Refrigera-tion article. Western Grocer Magazine apologizes for this error.

Local SnackingCompanyHelps WomenLet Go ofGuilty Snacking

Bringing snackers outof hiding, CheeCha Puffsoffers a healthier alterna-tive that can be eaten withpride and shared with fami-lies and friends. To re-inforcethis, CadCan Marketing islaunching its “Don’t Hide,Have Pride” campaign whichincludes a series of ads illus-trating the fun “Don’t Hide,Have Pride” scenarios offreedom from guilty eating,plus a sequence of ‘Guilt-FreeSnacking’ idioms as socialmedia engagement.

Amerlux RecognizedAmerlux was honoured for three commercial LED indoor lighting

products during the eighth annual Next Generation Luminaires (NGL)Solid-State Lighting Design Competition. MURRO LED Wall Wash,LINEA 1.5 Linear Direct/Indirect LED and FINO Ceiling LED receivedthe awards for excellence and technological development, whichwere sponsored by the United States Department of Energy (DOE),the Illuminating Engineering Society (IES) and the International Asso-ciation of Lighting Designers (IALD) at LightFair International.

“We’re very proud to have won three NGL awards this year, as wehave achieved this extraordinary industry recognition seven out ofthe past eight years,” said Amerlux CEO and President Chuck Cam-pagna. “Murro, Linea and Fino are truly lighting innovations and weare honored that they have been recognized by the NGL’s distin-guished panel of judges.”

Recognized in the categories of Wall Wash and Downlights, FINO Ceiling LED is a 5/8-inch shallow,ceiling mounted wall wash, which runs seamlessly across ceilings without interfering with the studswhile creating a beautiful visual impression. With engineered optics that deliver 630-plus lumens perfoot onto the vertical surface, FINO was acclaimed by the judges who “loved the look and creativedesign of its minimalistic appearance and great thin profile.”

“It’s not an easy feat to achieve NGL recognition,” said DOE Solid-State Lighting Program ManagerJames Brodrick. “The judges are a tough-minded bunch who look for every flaw imaginable and don’tissue their stamp of approval lightly.”

(L-R) James Brodrick, lighting program manager, US Departmentof Energy, building technologiesprogram and Chuck Campagna,Amerlux CEO, President.

Greg Mohr Promoted to VP Business Growthat Bee Maid Honey Limited

Bee Maid Honey Limited has appointed Greg Mohr tothe newly created position of vice president, businessgrowth, accountable for developing Bee Maid business by identifying and assessing pos-sible new business ventures, finding opportunities to leverage existing business andensuring the organization has effective value propositions for both customers andmembers. “Mohr’s proven track record on execution and his vast experience with several world-class organiza-tions will ensure a successful outcome for both Mohr and our organization,” comments Guy Chartier, CEO.

ON OUR COVER


This is in addition toanother 20 stores to openin the B.C. and Alberta

markets, where the companycurrently operates over 140stores. By any standard, this is

a major capital investment and bold statement on how thewestern Canadian grocery industry will begin to look in thewake of Sobeys acquisition of Canada Safeway.At a press conference in Winnipeg, President Daryll

Jones, who was there with Overwaitea Owner Jim Pattison,said the expansion into Manitoba and Saskatchewan willcreate around 4,000 jobs. The first store to open inWinnipeg will be at the Northgate Shopping Centre. Jonesemphasized Overwaitea’s policy of tailoring each store’sassortments to the local demographic and as such the firstlocation will be a Save-On International to cater to thewide ethnic diversity of the area. This store and twoothers — one on St. James Street in a former Future shoplocation and a new build in the Bridgewater Foresttownsite — will open in the fall of 2016. A total of 12stores are being considered for Winnipeg. More stores willopen in other urban centres such as Brandon, Steinbachand Portage la Prairie. Online grocery shopping and homedelivery will be part of the mix.Plans seem to a bit further ahead in Saskatchewan with

the planned roll-out of seven stores next year in Regina,Saskatoon, Yorkton, and Moose Jaw.For now, says Jones, distribution will be conducted out of

their Edmonton warehouse, although he does not dismiss

the idea that a distribution facility could be opened inWinnipeg as well. While Manitoba and Saskatchewan are still experiencing

positive population growth, the addition of this amount ofsquare footage will surely change the competitive landscape,especially as Walmart is very much intent on growingits share of the grocerymarket and Sobeys, whileshuttering stores, willvery much want to main-tain its current combinedsales between Safewayand Sobeys stores.

What will the outcome be? That depends ultimately onwho the better operator is. Save-On does not have an easyjob ahead given the difficulty of finding ideal locations, atleast in a large saturated urban center like Winnipeg. Butcertainly the determination is there and market timingcould not have been better given the current fluiditycreated by recent consolidation. ●

It has been a longtime coming, but the OverwaiteaFood Group has finally made the leapinto Manitoba andSaskatchewan, vowing to open over40 stores over thenext several years.

2:11:37 PM

Overwaitea Food GroupBecomes True Regional Player

Daryll Jones, OFG President with Jim Pattison.

The atmosphere was electric with close to 2,000 in attendence.

By Frank Yeo

1 6/8/2015 7:41:13 AM 1 6/8/2015 7:38:39 AM


Back to school is both a relief and a time of stress for parents. On one hand the home-stead is finally free of the bedlam associated with summer vacation; on the other,it can be a major task to fill lunch boxes with healthy products that kids enjoy.

It’s up to retailers to make that task as simple as possible. “We start planning at leasta month in advance for what is essentially a two week event — or perhaps three, ifyou’re doing business in a neighbourhood that also has private schools,” says LouisCampbell, store manager for Stong’s Market.Troy Dewinetz, general manager - marketing & merchandising for Buy-Low Foods,

says back to school is also a time that “marks the return of many of our shoppers fromsummer vacations. The foot traffic increases, so it’s vital we merchandise well to takeadvantage and increase our baskets.”Dewinetz and his colleagues go all-out in their merchandising efforts. “We

plan our programs two to three months in advance to ensure we’re readyto go as the season is upon us,” he says, adding that “We generally runback to school promotions and features for two to four weeks,depending on the program.”Buy-Low also acknowledges purchasing trends while planning

its back to school strategies. “For instance, there seems to be ashift away from some of the traditional food items such aspeanut butter due to allergy concerns, and juice boxes due tosugar content, and more of a focus on fresh andhealthy products,” says Dewinetz.Any retailer who doubts the signi-

ficance of back to school needs onlyconsult a Pollara study showing thatCanadians generally spend an average of$428 per child as their kids headback to class, and that thisspending is increasing by as muchas 18 per cent yearly. Meanwhile, a Deloitte survey

provides insights about who doesthe shopping and what informs theshopping experience. Conducted lastyear and involving parents whosechildren attend grades K to 12,the survey found that womenare more price and budgetconscious than menwhen shopping forback to school items(59 per cent buy more

BACK TO SCHOOL By Robin Brunet

`on sale’ products and 32 per cent usemore coupons). Also, nearly one infive respondents said they use socialmedia sites to plan their shopping, andthey are increasingly seeking onlinepurchasing solutions.This doesn’t surprise Jennifer Salter,

director, shopper market-ing, for Kraft Canada.“Ecommerce is one ofthe biggest trends todayand it will continue togrow,” she says.Salter adds, “We work

closely with retailers toensure that our productscan be sold throughtheir online sites andthat shoppers can makea purchase as easily astapping a few keys on their smartphones.” Ryan Johnson, director, customer

insights for Kraft Canada, agrees that socialmedia is playing an increasingly importantrole in helping shoppers plan for backto school. “Brandsparkresearch indicates

that while 85 per cent of shoppers still relyon print flyers to determine what topurchase and check for sales, the digitalrealm — including social media — is wherethe growth is,” he says. Kraft is a master at helping retailers

make the most of the September event.“We’re constantly tryingto understand shoppers’preferences and whatresonates with them,whether it is recipes,website content, or spe-cial promotions andcontests. We provide thisrelevant content throughour own social anddigital vehicles, websites(kraftcanada.com), as wellas through our retailers’

media, whether that be flyers, digital, socialor through loyalty apps,” says Salter. Kraft may not be unique in providing

retailers with anchor displays for itsproducts, but its sales force goes a stepfurther by working closely with storemanagers to determine the optimumplacement for these displays. “We get verycreative in terms of determining what

works and what doesn’t indifferent stores, and since

our sales people havean intimate knowledgeof the communitiesthey serve, they providegenuine tailored so-

lutions,” says Salter.


Kraft has the KraftPeanut Butter Jarpromotion foryounger students,and the KD GoldenNoodle for olderstudents.

Frullo fromSunRypehas 50 percent less sugar and no artificialsweeteners.

Grimm’s Fine Foods haslaunched three varieties of PepBites that go great in school

lunches for those looking for anon-sugary snack.

Mcsweeney’sbeef jerky hasflavours thathighlight Cana-dianna – includ-ing HickorySmoked Bacon andCanadian Maple.

GoGo squeeze from Materneare all fruitdesserts whichhave nopreservatives,food colouringor artificialflavouring.

Ocean Brands’SnacKit is available in sixflavours; includ-ing gluten freeAlbacore Tuna.

New Product Showcase

Tasty treats for the lunchbox

Nearly one in fiverespondents said they

use social media sites toplan their shopping,

and they are increasinglyseeking online

purchasing solutions.

Get these, do this, done!Your customers don’t have time to create new recipes, so we’ll show them how to make their weekly faves amazing again with Kraft Dressings!

This impactful retail campaign will help grow basket size and drive sales for your store by pairing Kraft Dressings with a protein to o�er quick and easy meal solutions consumers will love. To participate and drive sales for your store, talk to your Kraft rep today!

For recipes visit DressUpYourFaves.ca.Program runs from May 4 to October 31.

#

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1 2 10:09 AM

Two new launches from Kraft effec-tively pair promotional content withfood. “At the end of August we’ll unveila limited edition Kraft Peanut Butter Jar,which doubles as a teddy bear keepsakebank, and will be accompanied by acontest for a chance towin $10,000 towards yourchild’s RESP,” says Salter. With a nod towards

older students, Kraft’s KDmulti-packs will be ac-companied by a contest inwhich the winner receivesa solid gold one-pound KDnoodle. “That too willlaunch in August, and theintent of both those prizesis to get everyone thinking about kids’ andyouths’ future,” says Salter.When asked to cite examples of not-

so-effective back to school strategies,Johnson pauses a moment beforereplying, “Some retailers may not thinkabout the fact that the consumer ofproducts isn’t necessarily the shopper,especially at the back to school time-frame. Marketing strategies are built tospecifically address this matter.”Barb Broder, consumer communications

manager for Sun-Rype Products Ltd., saysdisplays are the ideal way to remindmothers to stock up. “It’s a busy time of

year: summer isn’t quite over, but thestresses of planning for that big change inroutine are upon them,” she explains.“Cross promos and displays make it easy formom to re-fill the pantry and save money.”As for retail opportunities that are

occasionally overlooked, Broder pointsout that “Price signage is vital, and wesee that missed sometimes. If Momdoesn’t know the price, she’s not likely topick it up. Also, with so many productsavailable, retailers need to make it easierfor mom to understand the features andbenefits. Using POS to call attention tothe fact a new product like SunRypeFrullo has 50 per cent less sugar with noartificial sweeteners helps mom to makethe right choice.” Broder acknowledges that the other

challenge of back to school is gettingkids to eat healthy. “SunRype offersseveral convenient products that make iteasier,” she says. “Our Fruit Plus VeggiesPlus Fibre juices are 100 per cent fruitand vegetable juices that taste like fruit— so kids love them — but offer thebenefits of veggies too. They alsocontain fibre, but with the same textureand taste as fruit juice.” Peter Boudewyn, national sales

manager for Direct Plus Food Group, notesthat in addition to healthy options, clean

protein items and meatsnacks are on the rise.Grimm’s Fine Foods andMcsweeney’s meat products(available through DirectPlus) are a great additionto parents’ back to schoolshopping lists.Boudewyn says, “Grimm’s

recently launched threevarieties of Pep Bites —Original, Hot, Honey garlic

— which are bite size pieces of premiumquality pepperoni that go great inlunches instead of sugary snacks or cookies.We also offer a naturally formulated turkeypepperoni for consumers looking for


Nature Valleypeanut free LunchBox Double Choco-late flavour granolaand Betty CrockerSoft BakedSnacks fromGeneral Millsprovide greatfuel in lunches.

General Mills Canada hasbeen at the forefront of backto school promotions withitems such as Betty Crocker

and Cheerios.Gluten Free Barfrom Brandseed Marketing isgluten free, vegan, soy freeand corn free but has a tastethat kids will enjoy and par-ents will feel good about.

Wild Garden Hummus Dip isgreat for lunches and has ashelf life of 18 months.

New Product Showcase

Tasty treats for the lunchbox

“Price signage is vital,and we see that

missed sometimes.

If Mom doesn’t knowthe price, she’s notlikely to pick it up.”

C

TUNA FOR TWO

oceanbrands.com

With two delicious � avours to choose from and two tuna Snackits per pack, it’s healthy,

convenient and shareable!

INTRODUCING NEWTWINPAC

KTWINPACK


would compel a typical shopper to buythe product only once, as opposed tocoming back later to purchase differentvariations of the same thing.” Ocean’s contribution to back to school

is the ready to eat Ocean’s SnacKit,available in six flavours including thenew gluten free Albacore Tuna (the tunain the kit is paired with rice crackers).“We’ve also developed SnacKit Dipswhereby younger kids just have to peeloff the package cover and dip theircrackers into the tuna instead of havingto open a can,” says Mendoza.Since arriving in this country in 1954

with the launch of Betty Crocker andCheerios, General Mills Canada has beenat the forefront of back to schoolpromotions, and this year it’s offering`Power Up Your Back to School Hero,’which Marketing Director Emma Erikssondescribes as a turnkey solution thatwill drive great instore traffic. “Power Upwill take the form of in store displaysand POS accompanied by a consumercampaign using television, social mediaand blogger outreach.”Eriksson goes on to explain, “The idea

behind Power Up is that your child isa ‘super hero’ who in September willembark on new challenges and ad-ventures and needs to fuel his/her bodyto be ready for their day.”Some of the new ‘fuel’ from General

Mills includes Nature Valley peanut freeLunch Box Double Chocolate flavourgranola bars; and Betty Crocker SoftBaked Snacks featuring the wildly

popular Minions characters from theDespicable Me movies on the box.These two brands are particularly

relevant to back to school in that both aremade in a peanut free facility. “As a momI know that I can only send peanut freesnacks to school. If it isn’t peanut freeit doesn’t make it onto my grocery list,”says Eriksson. “Peanut products are notallowed in schools or sports facilities, andthat’s why we emphasize our peanut-freeoffering for the back to school season.”

For the record, despite the peanut ban,Ryan Johnson reports that sales of KraftPeanut Butter are not negativelyimpacted during the fall months. “Infact, they’re very strong,” he says. “Don’tforget, back to school isn’t just what isconsumed at school: peanut butter is ahuge before- and after-school food.”The issue of allergies prompts the

question: exactly what health issues doparents worry about when filling theirchildren’s lunch boxes?


an even leaner, healthier option.Mcsweeney’s has recently introduced anumber of new beef jerky varieties thathighlight Canadianna, including a HickorySmoked Bacon Jerky and a CanadianMaple Jerky.”Ravish Kohly, vice-president sales –

general manager of Materne Canada,calls back to school “hugefor retai lers and forcompanies like mine inthe business of makinghealthy fruit-based snacksthat appeal to kids.”Materne is in a partic-

ularly enviable marketbecause while the snack-ing category is growing,sugar-laden puddings arein heavy decline, thuscreating a vacuum that Materne’s GoGosqueeZe products (all fruit desserts thatcontain no preservatives, food colouringor artificial flavouring) ably fill. “Our dataindicates that while the ready to eatdessert category is up four per cent indollar sales and fruit-based desserts likeapple sauce are up 11 per cent, GoGohas enjoyed a 78 per cent jump,” says

Kohly. “So yes, we highly anticipateback to school because it provides ourbiggest sales spike.”Kohly has several tips for retailers.

“The most important thing is to have theright products in the right place, andafter that the right mix at the rightprice. A lot of back to school products are

destination items, socreate multiple points ofinteraction within thestore. GoGo squeeZ issomething that can beput in various aisles anddepartments to maximizesales. Also, retailers shouldorder adequate quantitiesof back to school fare:there’s nothing worsethan being out of stock

during this time.”Stong’s Louis Campbell agrees, but he

says it takes careful planning todetermine correct quantities. “Whenordering for back to school we make surewe don’t over order on our initial ordersas we are aware that we can reorder fromour suppliers on a weekly basis.”Jackie Mendoza, senior brand manager

for Ocean Brands, believes retailersshould be generous with their facingsduring the fall months. “Mothers wantvariety, and therefore five facings of aparticular brand is far more effectivethan just one,” she says. “I’d even arguethat a single facing of a particular brand

“With so manyproduct available,

retailers need to makeit easier for mom to

understand thefeatures and benefits.”


This is exactly what General MillsCanada asked in a recent study, and thefindings may strike some retailers assurprising. “The absolute primary concernof the mothers we asked was that thefood they buy for their children contains

no artificial colours or flavours,” saysEriksson. “This was followed by wholegrains and fibre. Finally, mothers want toknow that products they purchase fortheir children contain an acceptableamount of sugar.”

The procurement team at BrandSeedMarketing Inc. has all bases covered withregards to allergies and health: theirportable foods, snacks, and lunch itemsare nutritious, natural, organic, andgluten-free. “For example, in March wemade available the GFB, or Gluten Free Bar,which, in addition to being gluten freeand vegan, is soy free and corn free buttastes absolutely incredible and is exactlythe food mothers can put into kids’ lunchbuckets without worrying about com-promising on health,” says BrandSeedPresident/Founder Jim Kavanagh.The same can be said of Wild Garden

Hummus Dip, also available from BrandSeed,which has the added bonus of having ashelf life of 18 months.While parents gird themselves for

September, the bottom line for retailers isthat back to school can be a bonanza —especially considering the wealth of productsthat meet the typical parent’s requirementsof nutrition, portability and convenience.But maintaining healthy inventories alone isnot enough: promotions, along with callingattention to price and ingredients, is alsorequired to make the most out of thislimited-time event. ●


Bananas from Ecuador, peppers fromMexico and blueberries from Chile:so common in today’s marketplace,

yet unheard of just a few decades ago.With today’s sophisticated distributionnetworks, the make-up of produce depart-ments has changed irrevocably givingconsumers more choice than ever before.Along with greater variety, the

produce department is changing in otherways with the unrelenting growth inorganic and fair trade produce. Twenty

years ago, organic produce was some-thing primarily grown in backyardgardens and while producers may havebeen growing their crops organically, itwasn’t the buzz term it is today.Requests for organic and fair tradeproduce stem from the grassroots thirstfor knowledge about where food comesfrom, who grows it and how.

Zachary Haigh, produce specialistwith Pomme Natural Market notes thatthe organic produce market grows inleaps and bounds each and every year.“[Customers] care where their food iscoming from,” he says. “It’s a greattime right now.”Haigh’s observation is supported by

the increase in the number of certifiedorganic farms in B.C. increasing from150 in 1992 to just shy of 500 in 2012.While the growth in B.C. is indicative ofthe industry, organics from around theworld are making their way into Western

PRODUCE By Ronda Payne

avocados. “I think the two hottest itemsare seeing substantial growth in bothorganic and conventional markets,”he comments. “Avocadoes are seeingstupendous growth every year across thecontinent, and kale has exploded overthe past three or four years… and at ourend kale outsells lettuce three to one.That’s a very powerful indicator thatconsumers are reaching out for what theindustry is calling superfoods.”Marron also adds a regular produce

staple to the list. “Bananas would come outvery high on the list,” he says. “Strong,strong double-digit growth. Consumersare looking for organic first of all, butthey are also looking for fairtrade.”Mangoes are another item Marron

comments on, noting they have con-tributed to the growth of fairtrade foodsales of 213 per cent from 2012 to 2013.When it comes to merchandising or-

ganic and fairtrade produce, a retailerlike Pomme Natural Market is in an easierposition than conventional retailers. “My entire world is organic and natural

food,” notes Haigh. “We chose a wayto showcase food… to look like a typicalgrocery store. It’s in a very beautifulformat that people are used to.We merchandise with the customer’sexperience in mind.”Because they only carry organic

produce (even the Fairtrade produce isorganic), there is no need to use signageto identify organic items. For otherretailers however, there are challenges.“Visibility on shelves is the big

challenge that exists,” says Marron.On the plus side, however, Fairtrade

has a complete point of sale programavailable to retailers.“Retailers that put that up see a large

increase in sales,” he notes. “It [Fairtradeproducts] should be merchandised closeto conventional products.”“Produce is hard to market — it’s a

tough category and always has beenbecause there is no real branding,”Hooper says. “However, more than 50 percent of customers recognize the Fairtradelogos. We think that Fairtrade-labelledproducts have the most brand reco-gnition in the produce aisle.Consumers care about their food and

are increasingly aware of their foodchoices. By providing clearly labelledorganic and Fairtrade produce options,retailers are more likely to connect withtheir customers and prove that selectiondriven by customer demand is part of anongoing relationship. ●


Canadian shopping carts. A study by theCanadian Organic Trade Associationestimated the value of Canadian organicfood and beverage sales tobe slightly more than $2.8billion in 2012. “Organic is at maximum

four per cent of the industry[of a l l p roduce] ,” notesHaigh. “But it is growingexponentially.”It isn’t just organic that

has the attention of the con-sumer. Fair trade produce is also in highdemand because shoppers can chooseproduce that supports economic via-bility in exporting countries. Fair trade is defined as a trading

partnership, based on dialogue, trans-parency and respect that seeks greaterequality in international trade; accordingto John Marron, senior retail specialistwith Fairtrade Canada, the Canadiancertification organization. “When a product carries the Fairtrade

mark, it means the producers and tradershave met Fairtrade economic, social andenvironmental standards,” Marron says.“There are designed to address theimbalance of power in trading rela-tionships, unstable markets and the

injustices of conventional trade.”While demand for specific produce is

somewhat seasonal according to Haigh,some items are definitely more sought afterin the organic and fairtrade categories. “Grapes are huge right now,” says

Haigh. “Blueberries finally became a yearround [organic] crop last year or the yearbefore. Kale is such a buzz word andbroccoli has exploded.”Randy Hooper, owner of Discovery

Organics agrees with the growth of kaleand adds another item to the list:

The produce department is changing as consumers look to organic and fairtrade items in this section.

Fairtrade Canada knows that consumers arelooking for fairtrade items as well as organicwhen it comes to their produce, and has seengrowth in both bananas and mangoes.

Zachary Haigh, produce specialist, PommeNatural Market.


Abanner above the entrance of thenew PriceSmart Foods Interna-tional store in the Fleetwood dis-

trict of Surrey, B.C., proudly proclaims,“Explore a world of flavour.” At first the invitation seems at odds

with its surroundings, which aresuburban, working class, low-key.However, Fleetwood has been changingin recent years, evolving from itswestern roots into a community thatincludes a huge range of ethniccultures. As a way to continue to meetthe needs of the customers it serves,PriceSmart Foods decided to make thisstore an even better fit for theircustomers in Fleetwood.PriceSmart Foods, part of Overwaitea

Food Group (OFG) is a familiar face in theneighbourhood, but in order to remainrelevant it didn’t so much have toupgrade or expand (the store has alwaysbeen 60,000 square feet in size) as it didtransform into something that wouldbetter serve the new demographic.Once inside the store, first-time

shoppers are greeted by a massivewelcome sign in multiple languages:the first indication something uniqueis afoot. Past the sign is a kitchen witha fresh sushi bar, soup bar, hot wingbar, pizza oven, as well as South Asian,Mexican and other global cuisine.Gigantic messaging — Seafood, Deli,

Salad Bar, Cheese — lines the perimeterof the interior and enables instant way-finding. Subtle touches, such as woodflooring throughout the checkout area,impart a welcome ambience to the largescale of the building. The 16 aisles are wide and brightly

lit. But it’s only when shoppers walkalong any of these aisles to the store’smidpoint that they truly understandwhat makes this PriceSmart Foodsdifferent. “Essentially, beyond midpointthe types of products in each aisleremain the same but have been sourced

STORE PROFILE

By Robin Brunetphotos courtesy of Robin Brunet

PriceSmart’s International storecaters to changing demographics.

Ken Christensen, store manager.

of it. Directly across the road is a Safeway;behind PriceSmart Foods on another site isa No Frills grocery; and a few minutes’drive away are two T&T Supermarkets anda Walmart Supercentre, plus numeroussmall grocery outlets scattered inbetween. “This is a highly competitiveneighbourhood in which to do business,and we have to stay on our toes at alltimes,” says Christensen.When asked about its future plans for

the international concept OFG states.“We’ve been lucky to have the oppor-tunity to re-focus our PriceSmart Foods

brand, and we feel that it has beenpositioned for future growth andevolution with a continued dual focuson a low price platform with market-specific ethnic offerings that attract newshoppers to our stores.”To which Christensen, who has been

part of the OFG family for 26 years, adds,“If the demographics of other com-munities warrant the development ofanother International store, OFG willbuild one. Meanwhile, Fleetwood is doingvery well: since our March re-launchwe’ve seen a steady growth in weeklytransactions and the store is reallyresonating with its customers.“I think the International concept has

a very bright future.” ●

Foods International is the mostcomprehensive outcome of OFG’s attemptto stay abreast of evolving demographics.In addition to groceries, many of the store’s220-member staff speak other languages(20 in total) in addition to English. “Oneteam member in our pharmacy is fluentin five languages, and we even havesomeone who speaks Siberian,” saysChristensen. “Multilingualism is anenormous asset to customer service: thefact that a staffer in the aisles cancommunicate in the language you grewup with is by itself a strong inducementto make repeat visits to the store.”The conversion of the Fleetwood

PriceSmart was a study in preciseconstruction scheduling. “It took aboutsix months and the store remained openthroughout,” says Christensen. “Crewsworked double shifts, and heavyconstruction work was performed atnight. Temporary walls were erected sothat shoppers wouldn’t have to seeelements such as our kitchen being

built.” The renovation also included anupdating of most of the store’s freezersand other hardware. Purely from a business perspective,

PriceSmart Foods in Fleetwood has in onefell swoop gained enormous traction overthe local competition — and there’s plenty


from different parts of the world, for theconvenience of Asian, Filipino, Italian,Mexican, and British shoppers as well asother cultures thriving in Fleetwood,”says Store Manager Ken Christensen. “Wewant to make sure that we are catering toevery type of customer – so if we canmake dinner or lunch a little bit easierwith our in-store kitchen or incrediblydiverse selection of foods from around theworld, we will take pride in making surethat all of our customers’ needs are met.”PriceSmart Foods International focuses

on three key attiributes — offering aunique world of flavours, service andvalue. PriceSmart Foods’ Internationalformat also appeals to the growingsophistication of western palates:customers can shop for their everydayfavourites and then add global fare totheir baskets without having to journeyto ethnic-only groceries. “OFG noticedthat international cuisine is becomingmore and more popular and found a wayto conveniently offer this to customerswithout taking away what they arealready familiar with,” says Christensen.Overwaitea Food Group (OFG) has spent

years developing an International concept,and the first manifestation was the2011 opening of aPriceSmart Foods“East Meets West”

concept in Richmond catering tothat city’s predominant Asianpopulation: half of the floor spacecontains over 7,000 Asian groceryproducts (with a red colourscheme), and the other half (blue) featuresmainstream, western food so customerscould complete their total shop withouthaving to make more than one stop. Since its opening, the Richmond store

has enjoyed enormous success (OFG doesn’tdisclose sales figures), but PriceSmart


Canadians love their soup. Accord-ing to a September 2014 MintelInsight Report on soup trends in

Canada, per capital consumer spendingfor Canadians far outpaced that of theBritish or Americans. Those living northof the 49th parallel spent an average ofUS$20.94 in 2013, exceeding theUS$15.87 of those in the U.K. and theUS$14.54 of Americans.Mintel reports that the prepared

soup market in Canada was estimatedat $760.3 million in 2013 and hasgrown at a CAGR of 2.5 per cent since2008. The market, adds Mintel, isprojected to grow at an estimated CAGRof 2.7 per cent from 2013 through to2017 to reach $845.7 million.

Innovation drives salesDespite a projected growth rate of less

than three per cent CAGR, the preparedsoup category still offers significantpotential. One of these lucrative areas isin the fresh and frozen soup segment.“In addition to the move from shelf-

stable canned soup to fresh and frozensoups, there has been an explosion of newvarieties,” states Anne Chong, owner &founder, Global Gourmet Foods Inc. “Themain trends we are noticing include theembracing of more ethnic and internationalflavours — not surprising, as more peopletravel and are exposed to different cultures.Exotic flavours fit the bill for many

Canadians but some still prefer the triedand true — but with a twist.

“Folks are either looking for comfort-type foods like tomato soup but with agourmet food experience or they arelooking for something outside the norm,like an ethnic soup with differentflavours,” says Helen Midwood, Canadiansales manager, Pacific Foods. In its Country Report on Soup in

Canada, Euromonitor Internationalreports that certain segments of theCanadian population are consuming soupmore often than others. The report statesthat this is the case for consumers agedabove 45 years, with a strongerconsumption level being increasinglyevident for those over the age of 65.

Courtesy of Shutterstock

SOUP

By Melanie Franner


Coconut water, which contains naturally high levels ofelectrolytes, including potassium, calcium and magne-sium, is the fastest growing beverage category and is

eating into sports drinks and water sales. Globally it’s esti-mated to be an $800 million market, and in Canada repre-sents from two-four per cent of that but with a rapid growthrate. Its growth rate has actually slowed from 2012 when ithit a 70 per cent increase. Growth was 49 per cent for 2013.Coconut oil has been posting its best numbers yet,

growing by 78 per cent in 2013, a momentum it appears tohave maintained through 2014.Coconut milk sales in the U.S. increased 15.5 per cent

from 2013 to 2014 ... from 116 million to 134 million.According to Gail Findlay-Shirras, brand manager for the

Tosca brand at National Importers, coconut milk has had asteady demand as a base in sauces and soups for many years butthe newer interest in coconut water and other coconut productshad a positive effect on the sales of coconut milk as well.Coconut milk is an alternative to dairy and soy milk and a

quick source of energy with its healthy fats that can beconverted to energy really quickly. In addition to the vitamins,minerals and antioxidants it is also a source of lauric acid andhas antibacterial and antiviral properties, so it helps eliminatea variety of disease causing organisms/agents. Lauric acid evenhelps reduce the risk of heart disease. Part of the reason for the growth says Findlay-Shirras is

that consumers are finding new uses for the productincluding skin and hair care. “Also, consumers are starting toget more adventurous in their food preparation, and usecoconut milk as a cream substitute and in more dessert/sweetdishes. It’s not just for curry anymore. Try whipped cream,cake or caramel sauce with a coconut base.”Tosca, says Findlay-Shirras, now has a cleaner ingredient deck

making it easier for consumers to read and understand what’s incoconut milk. The product is also kosher certified with no addedsulphites, which many companies use to bleach the product.“We also noticed that most coconut milks in the

Canadian market are from Thailand. Thailand is not infact a major producer of coconuts, but a distant ninth,well out of the top three nations. This isn’t a bad thing,but I think buying product from a country with a biggerpotential capacity (and sustainability) provides Toscawith another unique identifier, setting us apart on theshelf from the wide-range of competitors.” As consumers

become more familiar with the many uses of coconutmilk, expect to see sales continue to rise. ●

Health top of mindNutrition is another significant trend

in the soup category. Campbell Company ofCanada reports that consumers areincreasingly embracing the homemade souptrend, with its broth segment showingincreased sales as a result. The company is launching a new line

of ready-to-serve soups under theHealthy Request brand (made withnutrient-dense vegetables and nopreservatives), along with new Soup Kitsthat contain all of the ingredientsneeded to form the base of soup.Consumers need only add broth, a freshprotein and/or vegetables.Global Gourmet Foods’ Chong also

recognizes the importance of nutrition inthis category. The company remainspassionate about its Smart Soup line ofAmerican Heart Checked certified, veganand gluten-free products and will beoffering single-serve portion pouches toincrease consumer convenience andprovide a lower price point to drive trial.“Consumers are increasingly seeking

heart-healthy, minimally processed foodswith recognizable and short ingredientlists,” says Chong. “Other major trends

that continue to gain momentum includethe desire for lower salt offerings,gluten-free, vegan and natural soups.”This health sentiment is echoed by

Pacific Food’s Midwood.“I believe there is a trend of mixed

generational (Baby Boomers, GenX andMillennials) to look for what I call authenticfood and authentic companies,” she says.“They are looking for products made fromreal ingredients and from simple recipes butwith great taste. Additionally, people arelooking for these companies to haveintegrity in organic/GMO/sustainability.”To demonstrate its commitment to this

trend, Pacific Foods will likely beincorporating two well recognized healthfoods – kale and quinoa – in some oftheir soup products in Canada in 2016.

Tips from the floorMintel’s Insight Report suggests that

soup companies can take advantage ofthis nutritional element by emphasizingthe number of vegetable servings in soups— a point that has proven to resonatewith the health-conscious consumer.“Manufacturers of healthy, vegetable-rich

foods such as soups have an opportunity to

COCONUT By Frank Yeo

Whether it is milk, oil or water, the market for coconut products has explodedin North America. High in fibre, vitamins and minerals, the coconut provideshealth benefits that consumers can find in few other places.


benefit from campaigns that are focused oneasy ways to incorporate more servings ofvegetables for better health.”Mintel goes on to cite Campbell, which

holds about a 70 per cent market sharein the category, as having begun toemphasize vegetable servings in itslabeling and soup marketing efforts.Other tips to increase retail sales

include innovative displays and bundling.“Promote when the season calls for

fall/winter soups,” says Midwood. “Don’tbe afraid to put case stacks in the producedepartment beside the salads (soup andsalad), in the dairy department besidecheese (soup and grilled cheesesandwiches). Bundle pricing also seems tobe popular with consumers.”According to Jennifer Blackburn, director

of marketing – Campbell’s Soup & SimpleMeals, Campbell Company of Canada, basketbuilding provides opportunities to partnerwith perimeter-fresh items like broth.“The average basket size for Campbell

Aseptic Broth is $181.80 versus $90.20 asthe average for Total Grocery Composite,”she says. “Therefore, the average shoppingbasket with Campbell Aseptic Broth in it is2x larger than the grocery average. ●


Canadians are eatingmore snacks thanever before. Today,

over 25% of all meals in Canada aresnack meals, compared to 22% in 2000,according to the NPD Group. But what youmay find surprising is that the principalgrowth has been focused on fruits and vegeta-bles rather than the traditional salty snack seg-ment. Snacks, indeed, are becoming a meal sub-stitute and evolving into a fourth meal of the day.“People are often in search of a mid-day snack,

so the market is certainly there for those whowant to play,” says Stephanie Grunenfelder,American Peanut Council. In the salty snack segment potato chips

and nuts are still the top-selling items.Midday is the most popular time forconsumption, says Joel Gregoire, food anddrink senior analyst, Mintel, with 51 percent of consumers reaching for nuts while37 per cent still crave the tried and truepotato chip.This marks a significant change

since potato chips once dominated thesegment but now have fallen out of favourfor a growing number of consumers whoare seeking out snacks that offer somehealth benefit.Today’s customers are seeking out

salty snacks that offer more, says JeetuPatel, sales and marketing manager,Gurulucky Snacks and Sweet Ltd., whetherits high protein, high fibre, or simply offeringa wholesome food. Products such as soybeans,quinoa, chia, chickpeas and lentil based snacksare showing increased interest as customers are

SALTY SNACKS By Anne-Marie Hardie



consumers are looking for snacks thatsatisfy their needs,” says Grunenfelder.“This ‘keep up the pace’ lifestyle is actuallyquite beneficial to the snack category. Itprovides an opportunity to offer somethingthat appeals to consumers. “

Play with the FlavoursThe rise of the millennial shopper has

also opened up the opportunity formanufacturers to play with new flavoursand unique offerings. “This consumercohort spends a greater percentage oftheir disposable income on food, morethan any other demographic group,” saidKathryn Matheson, vice-president research& development and innovation, PepsiCoFoods Canada. The millennial consumerwants flavours that appeal to all of theirall senses. Today’s salty snacks haveresponded to this need by offeringproducts with bold flavours and shapes.All which offer a unique eating experienceand reap success from this large market. Innovation is key to staying relatable

to the consumers, says Homenick, it notonly keeps product fresh but also helpsgain household penetration. Thisinnovation can come with new flavors or

other product innovations such as thecontinued growth in veggie snacksexpanding from the traditional potato tobeets, carrots, and even parsnips.

Expand your Snack FootprintAs salty snack offerings expand their

offerings, retailers can maximize thepurchase opportunity by showcasingthese products throughout the store.Healthier offerings increase their appeal,says Vuckovic, by being offered in asection dedicated to health. While

conversely, ethnic snacks seem toincrease market share by gravitatingaway from the ethnic area. In order tocrossover to the mainstream market,Patel recommends offering ethnic saltysnacks in the mainstream aisle.

The reality is that Canadians continue tocrave their salty snacks. Grocery stores canmaximize penetration with this impulse-driven category by offering their customersboth traditional flavours and uniqueproducts that will leave an impact. ●


looking for snacks that bothsatisfy a craving while workingwith their dietary needs.“Gluten free, organic and non-

GMO are the three buzz words thatare standing out,” said JohnVuckovic, director category in-sights, Star Marketing.“Consumers are looking for

product traceability,” says GerryMiller, Fresh is Best Salsa & Co,whether it’s where the productcomes from or simply what theproduct is. Once drawn in by themarketing and price, customersare now picking up the package

and reading its ingredient panel. “We are definitely seeing a more

discerning consumer,” says Kirk Homenick,Hardbite. “They are really starting to lookfor ingredients and products that havewords that they can pronounce. “Saltysnacks are still by and large an impulsepurchase. Although health is starting todrive the decision, manufacturers need toensure that they do not compromiseflavour. “People have busy lives. Betweenwork, balancing family schedules and thedesire for healthy, cost-effective options,

Merchandising TipsShow off your Snacks

Entice the MarketDraw in the millennial audience, with merchandisersthat highlight creative flavours and new offerings.These powerful displays will resonate with a marketthat is ripe for experimentation.

Be BoldSalty snacks are a rapid consumable. Big, impactfuldisplays will encourage your consumers to reachout and add the product into their shopping cart.

Provide AlternativesMaximize the appeal, by offering your consumer options. Showcasing multipleflavours will ensure that your merchandiser reaches a diverse market from thosewanting the tried and true to the shoppers wanting to experiment.

Think Outside of the Snack AisleIncrease impulse purchases by displaying salty snacks in other areas like the delior produce aisle. These unique pairings will provide your shoppers new opportu-nities for their favourite snack food.

Tantalize the Test BudsSmaller offerings provide your consumers with an inexpensive option to try newflavours and products. Entice them to try out these new products, with thehope that they will soon return for more.

American Peanut Council knows that a saltysnack such as peanuts are a great fix forthose in search of a mid-day snack.


According to the National Confectioners Association,candy continues to be enjoyed across every age,demographic group and lifestyle. Consumers are

looking for fun, innovative products but they are also seek-ing healthier options. Some of the new flavours seen at the Sweets and Snacks

Expo held in Chicago in May looked to the past for theirinspiration. There were traditional flavours like s’more,birthday cake, lemonade, marshmallow, cinnamon andpeppermint. Others looked to breakfast foods forinspiration with maple, waffle and bacon flavours. Therewas also a trend towards more sophisticated fruit flavourssuch as blood orange.Innovation is a growth driver within confectionery,

accounting for over 100 per cent of category growth, saysRyan Denys, confectionery marketing leader for NestléCanada. Globally Nestlé is launching a new Kit Kat ChunkyDouble Caramel to address the No. 1 consumer flavourinclusion of caramel. Haribo is launching two new products inCanada this year: Fruity Frutti and Sour Stixx. NorthAmericans tend to skew towards a sour preference,says Marcus Daum, director with MDMC Inc.which represents Haribo in Canada.While consumers are looking to try

new products and flavours, they arelooking for healthier options.According to Nielsen, a globalinformation company, 44 percent of consumers are lookingfor what’s not in the candy, asin no artificial colours orflavours. In response, Nestlé’sremoved the artificial colours

from Smarties in 2009 and the artificial flavours from theirmost popular confectionery products including Smarties,Kit Kat, Aero and Coffee Crisp in 2011.Denys says offering a cleaner ingredient list or products

that contain positive nutrition through real ingredientssuch as nuts, fruit, seeds, dark chocolate, and super fruitsmay be important in a consumer category where there is alot of choice. Portion control sizing is another way to make indulging

in sweet treats more permissible to health-consciousconsumers. Nestlé has divided the regular Smarties boxinto three compartments, with each compartmentcontaining a single portion of 15 Smarties. All of theirseasonal products have also been reduced to singleportions so that people can feel good about giving duringthe various holiday seasons.

CONFECTIONERY By Helen Lammers-Helps


This is part of Nestlé’s global com-mitment to sell only children’s productsthat meet Nestlé’s Nutritional FoundationCriteria for an individual portion. Someproducts that do not meet the criteriasuch as the Smarties king-size box andsome of the larger format seasonal itemshave been discontinued as a result.Although consumers are looking for

healthier options, Nielsen statisticsindicate sixty-four per cent of consumersare also looking for fun and a mood lifterwhen they purchase candy. This seems tofit perfectly with Haribo’s tagline, “Kidsand grownups love it so — the happyworld of Haribo,” says Daum.

In response to a growing “sharing”trend, Nestlé launched Aero Tablets whichare easier to share. Daum says Haribo seesan increase in sales of their gummies insummer when people are picking up a fewpackages to share around the campfire orat a sporting event. It’s also popular toset out a bowl of gummies on the sweetstable at parties, he adds.Another trend at the Sweets and

Snacks Expo were Do-it-Yourself optionsthat give the consumer opportunities

to dip, decorate orcustomize the

experience

Pucker upSour Stixx, a new candy from Haribo, come in five unique fruit flavours with a sour outercoating to satisfy your sour cravings.

This sour treat is sure to become popular with consumers.

Portion control The innovative new Smarties box is physicallydivided into three compartments, each containing a single serving of 15 pieces whichprovides 70 calories and 11 g of sugar.

This packaging is a great help when it comes to portion sizes.

Recyclable packageThe Smarties Cello bag has been redesignedinto a recyclable container with a custom lidthat allows a consumer to measure out a sin-gle portion of 15 Smarties.

This packaging is a great help when it comes to portion sizes.

Take a break with Kit Kat Nestlé has launched the Kit Kat #mybreakcampaign. Kit Kat is all about the breaks,whether it’s a 10-minute break from work or aweekend getaway with friends.

The campaign is supported with TV, digitaland a strong in-store component.

Add some fun to your day Fruity Frutti, a new candy from Haribo, theoriginal maker of gummy bears, is a deliciouscombination of a fruity gummy top, soft foambottom and a fruit-infused filling.

This novel candy is fun to share on your nextcamping trip or backyard barbecue.

Product Showcase

Sweeten Things Up!


Although consumers arelooking for healthier options,Nielsen statistics indicatesixty-four per cent ofconsumers are also lookingfor fun and a mood lifterwhen they purchase candy.

CATEGORY MANAGEMENT By Sue Nicholls

It has evolved – and continues to evolve –as the shopper changes, data and tech-nology become more sophisticated, dig-

ital continues to play a bigger role andorganizations are striving to achieve col-laboration with their retail and vendorpartners. Despite all of these industrychanges, many organizations fail to makethe necessary changes internally to meetthe changing needs.

Who Owns Category Management?

Each unique retailer drives their owncatman process, which should be built on asolid foundation of overarching strategiesassociated with their store format(s), tar-get shopper(s), competitors and privatelabel or store brands (where applicable).

The category management frameworkallows retailers to become more strategic intheir overall approach for total store based ontheir shoppers. The resultant guidelines andprocesses developed in this framework armscategory management, retail operations andprocurement with a toolkit to help them makeeasier and more strategic choices that align tothe bigger picture strategies for the retailer.

Retailers who are able to clearlydefine and articulate their processes,principles and guidelines are much morelikely to be successful in their endeavorsin category management. There’s anopportunity for retailers to review theircategory management foundations –including their strategies and approach –to ensure that they are relevant,refreshed and effectively communicatedboth internally and externally.

The opportunity?

The opportunity is to develop better-defined strategies, guidelines and processesthat are shared both internally and with your

vendor partners.As part of youroverall strategies,you also need to:

Properly define your categoriesand your segments:

• Category Definitions need to startwith the shopper! Maximize youropportunity for success by groupingproducts together based on productsthat deliver the solution to a similarconsumer need, are substitutable inconsumer usage and/or have similari-ties that when managed together cre-ate a total effect for the shopper.

• Category Definitions are affected byretailer format, strategies, category roleand their target shopper.

How the term ‘category’ is defined isalso essential to achieving success for yourstore. A meaningful way to achieve clarityand a shared common business languagedefinition for “category” is to consider itsmany applications. Considerations for yourretail format, programs, store layout, andcategory roles will affect how you definedifferent categories. These definitionsbecome the foundations for your uniqueretailer strategy.

Categories that are larger and moreimportant to the retailer and their shop-pers will usually have a more narrow defin-ition, while ones that are less important willhave a broader one.

It’s important to get your category def-initions right because it directly affectsother areas of the business. Sometimesthe definitions are determined based oninternal and external influences thathave nothing to do with the shopper,including how product is purchased, howa company reports their business, howdata is purchased and how data is seg-mented. The definition of a “category”can also differ between you (the retailer),vendors and third party data vendor (likeNielsen or IRI) definition. And your defin-ition drives all of the data and analysisand results for the category.

Assign category roles togive you more focus

Not all categories are created equal, norshould they be treated equal! Categoryroles allow you to take a broad look at yourcategory mix, determine the category’s rel-ative importance and apply similar tacticalstrategies across categories with the samerole. This is an important foundation ofyour overall retailer strategy. Of note, it’snot the vendors who decide the role thatthe category plays for their retailers – it’sbased on you and the importance of thatcategory to your shoppers.

Once you assign your categories, youneed to establish your own strategic guide-lines and principles across the tacticsbased on the role that is assigned. Forexample, destination categories may havea broader assortment, more promotionalactivity and more competitive market pric-ing strategies. By applying these strategiesbroadly across categories within a specificrole, it makes a category manager’s jobmuch easier when they are making tacticalchoices for their categories.

To summarize — category roles are animportant part of a retailer’s strategiccategory management foundations. Byassigning these roles and formalizing thetactical guidelines for each role, it ensuresa more aligned and consistent approach tocategories across the store.

Think about the diverse backgrounds onyour team and the range of experienceacross individuals. They need to have acommon language and approach to cate-gory management that may not currentlyexist. Getting back to the basics as a teamwill help to get everyone on the same page.It’s also a great learning experience for allteam members. ●


in other ways. On the horizon, we canexpect to see cleaner ingredient listsand more innovative and sustainablepackaging and customizable snacks.According to Nielsen, almost 60 per cent

of confectionery purchases are impulsebuys. Retailers would be wise to provideconfectionery in permanent locations butalso in secondary locations to drive sales,says Daum. Floor stands, clip strips andsidekick displays will enhance visibilityand improve sales, especially during hightraffic seasons, says Daum.Denys agrees that confectionery pur-

chases are highly impulsive. “It’s allabout engaging the shopper,” he says.“It’s critical to leverage multiple points ofengagement throughout the store.” Mostimportantly, there should be con-fectionery displays in high traffic areasaround the perimeter and at everypoint of purchase.While it’s important to display the best

items in the best locations, Denyssuggests retailers should also leverageinnovation to convert shoppers.“Consumers love trying new products anda chocolate bar is a low risk, impulsivepurchase,” he says.

When making a merchandising plan forthe year, Daum recommends retailersinclude sufficient sale opportunities.Canadians are particularly keen onbuying confectionery products whenthey are on sale, he says.Manufacturers are responding to

consumer demand for more health-conscious treats with more naturalingredients and portion control packagingwhile still appealing to the consumer’sdesire for a fun and tasty treat. Retailerscan take advantage of the consumertendency to impulse buy candy bycreating highly visible displays in hightraffic areas of the store. ●

Canadians are particularlykeen on buyingconfectionery productswhen they are on sale.

Sue Nicholls is the founder of “Category Management Knowledge Group”, an online, accredited category management training company. She can be reached at [email protected].

Are You?

Category Management is Evolving.Category Management has been around for a long time. It wasintroduced in the early 1990s as part of Efficient ConsumerResponse to address the industry problems associated with theentire demand and supply operating continuum.



The “malaise” in overall retail sales of edible oils between 2010 and 2012 seems to have given way to a host ofnew product introductions in 2013. Numbers from a May 2014 Mintel Insight Report on Edible Oils show an 83per cent increase in new product launches in 2013 – a trend that the company reports had continued into the

first quarter of 2014.The report identifies two of the most active innovators — Cauvin and Colavita —– as specializing in selling

premium imported oils such as olive, walnut and sesame. It adds that these specialty oils represent but a relatively“niche” part of the retail market in Canada. The largest segment, by far, is canola/rapeseed oil. The segment accounted for 60,000 tons in 2013, as

compared to the second-largest category, which was soybean oil at 42,200 tons.

OILS


By Melanie Franner


sumers need to know the differencebetween them. Are the olives all fromone country or are they a blend? Arethe olives picked when they are ripe orjust before they are ripe in order to tryto get a more fruity taste? What enduse is the oil intended for?”

Falesca Importing offers a broadselection of oils, ranging in

different brands, qualitiesand flavours. Its Colavitaand Basso oils, forexample, are moremainstream, while itsFrantoi Cutrera ispremium. Education is also on

the radar for DianneHunter, marketing sales

manager, Mountainview Farming.“Education is, by far, lacking at this

stage,” she says. “It is coming, but we allneed to work together to overcome pastperceptions and opinions of canola.”Mountainview Farming offers a high-

quality cold-pressed canola oil, rich inOmega 3, 6 and 9 fatty acids. The com-pany offers bulk, 17-litre jugs, 1-litre,500 ml and now, a 250 ml bottle. “There is a real need for in-store demos,”

says Hunter, who adds that trade shows andsocial media are other avenues that can beused to help educate consumers.Mass concedes that retailers do a good

job with oils.“It’s hard to determine whatoil will do well on the shelf,” he says.“Retailers tend to look at consumertrends and consumer buying power tomake their decisions. High product

turnover and visibility mean pro-fitability. They may want the next bestthing but if the manufacturer doesn’tprovide the consumer with a reason tobuy it or education on the product, thenthere’s a greater chance of failure. It’simportant for manufacturers to show theretailer that they are proactive inpromoting the product, getting it intothe hands of people who can help spreadthe word. There are many avenues ofsocial marketing that prove effective andconsumer trends are moving towardshealthy balanced oils. Versatility in an

The world’s your oyster“We focus primarily on the olive oil

segment,” says Frank DeMichino, COO,Italpasta Ltd., who describes hiscompany’s strategy as two-tier: theeveryday one that includes differentolive oils in lighter blends; and thepremium one in which they partner withother brands.“We’ve seen a lot more specialty oils

come in recently,” continues DeMichino.“Everybody is looking for somethingdifferent in terms of quality of oil. Forexample, are the olives from Italy only orare they mixed with olives from Greece?We’re also seeing flavoured oils, like lemonand pepper, that are geared towards dishesbeing made by weekend gourmets.”The “foodie” is certainly one reason

why specialty oils are seeing increasedconsumer interest. Another is the trendto lead a more healthy lifestyle.“People are looking for natural oils,”

continues DeMichino, who adds that oneof the brands carried by his company —Costa d’Ora Il Grezzo — is a 100 per centItalian unfiltered, extra virgin olive oil.“Olive oil is still considered by manypeople to be a healthy alternative.” Adam Mass, director of sales and

product development BG Health GroupInc., also speaks to the growing use ofoils as part of a healthy diet.“In 2003, salad/cooking oils represented

31 per cent of the total and fat and oilgroup,” he says. “By 2020, this share willhave increased to 44 per cent.Substitutions within the oil and fatcategory have, and will likely continue

to occur, as con-sumer accept-ance of ‘healthy’fats like non-hy-drogenated canolaand olive oil continues.Switching of fats is also afunction of the adoption of Medi-terranean cuisine.”BG Health Group is focused on building

its Alligga brand of flax oil, which is richin Omega 3 essential fatty acids – evenafter heating at high temperatures.

E is for education“There are so many different oils

available,” says Tania Gallina, generalmanager, Falesca Importing Ltd. “Con

Costa d’Ora Il Grezzo from Italpasta Ltd. is 100 per cent Italianunfiltered, extravirgin olive oil.

Alligga from BG Health Group is a flax oil that is rich in Omega 3essential fattyacids.

Mountainview Farming provideshigh-quality, cold-pressed oil that is rich in Omega 3,6 and 9 fatty acids.

Colavita and FrantoiCutrera are just two of the broadselection of oils thatFalesca Importingoffers.


oil is also a great consideration whenlooking at new oils.”

Choice aboundsIt would seem that retailers have an

ever-increasing array of mainstream andspecialty oils from which to stock theirshelves. But with an increase in skuscomes an increase in consumer con-fusion. Demos, hang tags and othereducational initiatives may be what’sneeded to help drive trial of specialtyoils in particular and to help withmainstream substitutions as well. ●

Distributed by Bosa Foods 1465 Kootenay Street, Vancouver, BC, V5K 4Y3

Order Desk and Sales Inquiries: Phone: 604.253.5578 Fax: 604.253.5656 Email: [email protected] www.bosafoods.com

Prodotti Dal Sole is a line of premium products, most of which are organic, all-natural, and health-conscious options, perfect for

those seeking high-quality and healthy culinary choices.

Benefits to you…


STORE DESIGN

By Helen Lammers-Helps

While shoppers may not be aware of it, store lighting has a big impact onthe overall shopping experience. “The right light influences sales in every corner of

every store,” says Bill Plageman, vice-president of marketing and product managementwith Amerlux. Every corner of every market has a different purpose, different mer-chandise and different clientele so different lighting is required, he adds.Store lighting and merchandising systems are undergoing major improvements with

changing technology. “For the past five to seven years, lighting quality has made dramaticimprovements,” says Bruce Schneider, a sales specialist at Hussmann. Three out of fourdecisions to purchase are made in the store and the lighting can make the product pop so yousell more, he adds.In general, lighting has to look good, work even better, deliver high efficiency and low

maintenance to achieve maximum return on investment, notes Plageman. It also has todeliver the right intensity to read labels clearly and represent the colour of fruit, vegetables,floral and packaging to their truest most vivid colour, he continues.

Lighting systems are becoming increasingly energy efficient. LED lights can reduceenergy use by as much as 70 per cent.

“With lighting accounting for about 30 per cent of the energy used in mostretail stores, replacing fluorescent lights with LED lights can have a bigimpact on a store’s energy use,” explains Michael Parker, vice-president

of operations and sustainability at EcoLight LED Solutions.“This is the low-hanging fruit when it comes toimproving energy efficiency,” says Parker. With

the financial incentives availablefrom many power utilities it’susually very cost-effective, hesays, adding that it’s possible toretrofit existing fixtures. In addition to energy effici-

ency, LED lights have many otheradvantages. “They produce significantly less

heat which means air conditioning



and cooling systems don’t have to workas hard and will be more energyefficient,” says Parker. There is also lessmaintenance as LED lights can last forseveral years which saves the cost offrequently replacing bulbs. They are alsomore environmentally friendly since they

don’t contain mercury and many arecompletely recyclable.Putting doors on refrigerated display

cases is another way to save energy andmoney but some grocers have beenconcerned that putting products behindglass doors would make them less visible

and discourage shoppers frompurchasing, notes Schneider.However, Schneider saysthose fears are un-founded.Focalpoint LED lighting onbrackets within the displaycases makes it possible toadjust the lighting formaximum effect. “Lightingis no longer an after-thought,” he says.One of the big im-

provements in lighting hasbeen in the Colour Rendering

Index (CRI). This is a measurementof how well a light source shows the truecolours of an object in comparison withan ideal or natural light source.Fluorescent lights didn’t give truecolours, explains Parker.The right lighting can also draw people

from other parts of the store, continuesSchneider. The floral or service deli canbe a destination department. “Thecolours of the department will pop.”Another way to attract customer

interest is by using a combination ofcolour and motion. Hussmann’s Splashsystem makes it possible to highlightproducts on promotion or draw attentionto specific items or new brands.

“The colour of the lighting can beprogrammed to match the product youare selling,” says Schneider. You can alsoprogram flashing, blinking and wavemotions to create a billboard effect.In the past, with tight profit margins,

traditional grocers have put less atten-

Amerlux knows that lighting needs to deliverthe right intensity to read labels clearly andrepresent items to their truest most vivid colour.

EcoLight LED Solutions knows the advantages of LED lights when it comes to energy efficiencyamong other things.

The right lighting can also draw people from other parts of the store.

Change the way you view aisle lighting.

Introducing Stellina.

Thin. Curvy. Flexible. Revolutionary. Stellina Direct and Stellina 22 luminaires deliver advanced optics and output control that maximize energy savings and compel customers to purchase more. Learn more about Stellina at amerlux.com/stellina.

Follow us @AmerluxLighting.

For use in:

Commercial Exterior Retail SupermarketHospitality

1 6 4:28 PM

Has your grocery store recently:• opened?• done renovations?• had a change in management?• expanded?• celebrated an anniversary?• rebranded?

If yes, please contact Robin BradleyTel: 1-800-337-6372 or email: [email protected]

WHAT MAKESYOUR STORE

SO SPECIAL?

Let us tell the West Why Your Store is so Special!


Gay Lea Foods Co-Operative Ltd. andNutrinor Cooperative were the big win-ners of the night at the annual Canadian

Grand Prix New Product Awards. Gay Lea FoodsCo-Operative Ltd. was presented two awards forits Gay Lea Foods Real Coconut Whipped Cream(best Condiment & Sauce, and the coveted AllCanadian Special Award). Nutrinor Cooperativewas presented two awards for its Organic NordicMilk (best Dairy Product, and the much sought-after Healthy Innovation Special Award).During the June 3rd gala at the Toronto

Congress Centre, attended by industry insidersfrom across the country, the awards programrecognized the top new grocery products infood, non-food and private label categories inCanada. A total of 34 awards were presented,as selected by a 30-member jury.“The Canadian Grand Prix New Product

Awards Program is key to our industry as itcelebrates creativity and innovation. Invest-ing in new products is the lifeblood of thegrocery industry and it is instrumental indriving its success,” says Diane J. Brisebois,president & CEO, Retail Council of Canada. There was a three-way tie for winning three

awards each: Procter & Gamble Inc. wonawards for Health Care, Personal Care,

and Paper, Plastic & Foil; Sobeys Inc.won awards for Confectionery,Snack & Dessert, Condiments &Sauces, and Dairy, Eggs, Meat &Seafood; Walmart Canada wonfor Bakery, Baby Care, andPaper, Plastic & Foil.

The only other company to win multipleCanadian Grand Prix New Product Awards wasMetro Brands, G.P., which grabbed private labelawards in the Prepared Foods & Entrees categoryfor Irresistibles Flatbread and in the HouseholdProducts category for Irresistibles Dish Soap.In the three other special awards categories,

Parmalat Canada Astro Original won ConsumerAcceptance. Veg Pro International Inc. Asian-StyleStir Fries won Innovation and Originality.The Clorox Company of Canada, Ltd. LIQUID-PLUMR – Hair Clog Eliminator won InnovativePackaging. “Canadian Grand Prix New Product Awards

Winners are a testament to the very best inproduct development and consumer satis-faction,” says Brisebois. “We are proud torecognize the teams and brands behind theseoutstanding new products.” The jury comprised consumer goods experts

and Marcus Von Albrecht, a B.C. chef andpresident of Mava Foods, who served as chair.They evaluated the food and private labelproducts in March at Montreal’s Institut detourisme et d’hôtellerie du Québec, and assessedthe non-food products at home over six weeks.Through a rigorous judging process, the jury

graded each entry on five criteria: uniquenessand innovation, product characteristics,presentation and packaging, overall consumervalue, and consumer acceptance (householdpenetration rate of a product). Among the award presenters at the gala

were representatives from sponsors CHEPCanada, Dairy Farmers of Canada, Interac, andTC Media & TC Transcontinental Printing.This year’s Canadian Grand Prix New

Product Awards Program was open tomanufacturers and distributors of all sizes, forproducts introduced during the 2014 calendaryear. Winners and finalists can use theCanadian Grand Prix New Product Awards logoon their packaging for the next two years. ●


tion on the lighting in the centre aisles.Plageman says that’s changing. “It’s nosecret that the centre aisles have longbeen the “stepchildren” of the super-market but we’re starting to challengethat notion with powerhouses like the

Producer or Stellina models.”Parker advises store managers to

consider lighting requirements in allareas of the store. For instance, back ofhouse lighting needs are different fromthe front. He recommends paying

special attention to areas that are lit24/7 such as stairwells. It’s alsopossible to measure light levels at eyelevel to more accurately reflect the

shopper experience.And when choosing lights,

Parker advises looking foreither the Energy Star or theDesignLights Consortium (DLC)rating. These certifying orga-nizations ensure lights meetminimum standards.While shoppers may not

be aware of the impact ofin-store lighting, having theright lights in the right

place can engage the shopper and havethem buying more. And choosing theright lights will not only improve theshopper experience, but also savemoney while improving energy ef-ficiency and sustainability. ●

Hussmann knows that the right lighting can draw consumers from other areas of the store and make it a destination department.

Another way to attract customerinterest is by using a combinationof colour and motion.


TREE OF LIFE CANADA ULCMADD Virgin Craft Brewed Lager

SOFINA FOODS INC.Deli Naturally!

SCOTSBURN DAIRY GROUPScotsburn Premium Inclusion

Ice Cream Bars

NUTRINOR COOPERATIVEOrganic Nordic Milk

NUPASTA INC.NuPasta

MARS CANADA INC.M&M’S® Bottles

KRAFT CANADAKraft Peanut Butter - Holiday Cookie Kit

INDUSTRIE GASTRONOMIQUE CASCAJARESPorchetta Festive Box

GAY LEA FOODS CO-OPERATIVE LTD.Gay Lea Foods Real Coconut

Whipped CreamGARDEINGardein™

DARE FOODS LTD.Dare Cookie Chips

The Canadian Grand Prix New Product Awards™recognize food, non-food and private label categories,

29 categories in all from dairy to personal care.

Winners Food

WESTON BAKERIES LIMITEDCountry Harvest

Winners Special Awards


GAY LEA FOODS CO-OPERATIVE LTD.Gay Lea Foods Real Coconut

Whipped CreamPARMALAT CANADA

Astro® OriginalNUTRINOR COOPERATIVE

Organic Nordic MilkVEG PRO INTERNATIONAL INC.

Asian-Style Stir FriesTHE CLOROX COMPANY OF CANADA, LTD.

LIQUID-PLUMR® - Hair Clog Eliminator™

PROCTER & GAMBLE INC.Charmin Basics®

PROCTER & GAMBLE INC.Crest® Sensi-Relief™ Whitening + Scope®

PROCTER & GAMBLE INC.Gillette® Fusion® ProGlide®

with FlexBall™ Technology

S. C. JOHNSON AND SON, LIMITEDScrubbing Bubbles® Mega Shower Foamer®

with Ultra Cling – Rain Shower®

Winners Private Label

SOBEYS INC.Compliments presents Jamie

Oliver Sausages

WALMART CANADAGreat Value Paper Towels – Strong and

Absorbent (Family Size)METRO BRANDS, G.P.Irresistibles Dish Soap

WALMART CANADAOur Finest Mini Croissants

METRO BRANDS, G.P.Irresistibles Life Smart Juice Blend

SOBEYS INC.Compliments presents Jamie

Oliver Condiments

MONDOUVetdiet® - Care

SOBEYS INC.Compliments Balance Fruit &

Vegetable Bars

WALMART CANADAParent’s Choice Infant Formula (For babies sensitive to lactose)

METRO BRANDS, G.P.Irresistibles Flatbread

DLM FOODS CANADA CORP.Milk-Bone® Brushing Chews

BERNARDIN LTD. [JARDEN BRANDED CONSUMABLES CANADA]

Bernardin™ Sip & Straw LidsBABY GOURMET FOODS LTD.

Baby Gourmet Plus

WinnersNon-Food

All Canadian Consumer Acceptance Healthy Innovation Innovation & Originality Innovative Packaging


Anew wind started blowing into theretail grocery sector in the 1950swith the advent of frozen TV din-

ners, and has since developed into part ofa broad new category that’s become a realforce to be reckoned with. That wind iscalled home meal replacements, or HMRs,and it’s causing quite the dust-up in Cana-da, the U.S., and pretty much every othercountry around the world.The main reason is that HMRs are

turning out to be one of the few growthcentres left in an otherwise cut-throatindustry, where profit margins for pre-packaged grocery items have becomerazor-thin due to intense competition.The popularity of HMRs has grown

out of dramatic changes in demo-graphics and consumer attitudes. Mil-lennials are exerting a big influence.They’re visiting restaurants less often inlieu of meals they can buy fromsupermarkets, convenience stores andother retail outlets and bring themhome for supper. Think time, think

CONVENIENT MEALS

By Jaan Koel

The OnlyConstant

cost. The NPD Group, a leading globalinformation company based in the U.S.,predicts that by 2022 instances ofprepared food purchased at retailers forat-home consumption will increase byten per cent, compared to a four percent increase in restaurant traffic. According to NPD’s study “A Look into

the Future of Foodservice,” HMRs meetthe needs of different groups in differentways. For instance, adults 35 years andolder are more likely than 18-34 yearolds to use prepared foods from retail tomeet their in-home supper needs. Lunch-at-home interests are also met by theseretailers, especially for seniors 65 andover. Meanwhile, consumers 18-24 aremore inclined than others to makepurchases from these retail outlets tosatisfy their interest in afternoon orevening snacks.

Beyond PizzaHMRs cover a wide range of food items, but

one of the most significant for retailers iswhat’s happening beyond snacks, frozenpizza, hot dogs, burgers, and cooked chicken— namely the chilled prepared food sectionsof grocery stores, which are populated bynumerous high quality and nutritiousvarieties of fresh bean, grain, vegetable, andshrimp salads, sandwiches, and other foods.There’s an interesting difference

between hot and chilled, says John Scott,a well-known retail food specialist basedin Niagara-on-the-Lake, Ontario. “Withhot, there’s always an issue to maintainquality. With chilled, not so much.Frozen is a whole different thing,” henotes. “There’s still definitely a strongmarket for that, but if you want a quickmeal with the greatest fresh appeal,chilled seems to be the growing choice.”

Chilled HMRs are transforming the retail grocery landscape.Courtesy of Shutterstock

Indianlife Food Corp of Burnaby, BritishColumbia. The company’s President &CEO Rakesh Raniga makes a point aboutproducts being not too spicy, so everyonecan enjoy them, but more importantlythat they have low sodium content.

“Demand for products like ours has gonecrazy all over the world,” he says. “Lowsodium is becoming more and more of anissue, and our products offer that along withgood fibre content. In B.C., one out of fourpeople suffers from health issues connectedwith low fibre. We’re also looking intoincreasing protein levels, which is also veryimportant for good health.” ●

The trend is toward chilled HMRs at alow cost with the greatest flavour and asclose to restaurant quality as possible.And there are more and more productsout there — and grocery stores — thatare delivering them.That said, proponents of

frozen HMRs point outthere’s less waste comparedto chilled prepared foodshaving to be tossed if theydon’t sell fast enough, andnutrients that remain intact.

Low sodiumThose are some of the

many reasons the frozencategory is definitely stillholding its own. An exampleis the range of El Montereyfrozen Mexican entrees offered by RuizFoods based in California’s Central SanJoaquin Valley. El Monterey is now themost popular brand of frozen Mexicanfood sold both in Canada and the UnitedStates. The range consists of taquitos,burritos, breakfast burritos, chimi-changas, tamales, and quesadillas.

“Canadian eating habits are similar tothose in the U.S.,” says Ruiz FoodProducts President & CEO Rachel Cullen.“Canadian consumers want convenience,quality, great taste and value. And theirschedules are not only busy, but gettingbusier all the time.”Another example is the range of frozen

Indian food products manufactured by


No Longer anOption

John Scott, aretail food consul-tant based in Nia-gara-on-the-Lakehas the followingtips retailersshould consider when developing HMRsales from their chilled sections:

First of all, find a consultantwho has experience and fullyunderstands the logistics ofconvenience foods.

Store layout is critical. Be sureto place the fresh chilled cabi-nets in highly visible and well-trafficked areas.

Give careful thought to whatkind of equipment is needed,both for preparing the variousitems in the chilled aisle, as wellas cabinets that display them inthe most appealing manner.

Engage an experienced chefwho is able to design the rightproducts that will sell and bethe most profitable. Keep inmind consumers are lookingfor variety, and also be sure tosteer toward the special prefer-ences of local communitiesincluding ethnic consumers.

Keep in mind the need forproper advice from experts,because the cost of redesigninga store to accommodate chilledHMRs can be substantial and, ifnot designed properly, can sinkyou. Nonetheless, it’s no longeran option just to stock shelveswith pre-packaged items.Chilled HMRs are here to stayand a component that everyretailer needs to look at.

1

2

3

4

5

InterruptionInovata Foods of Edmonton, AB, is a large national frozen entrée manufac-

turer with plants in western and eastern Canada, selling frozen meat lasagnaunder the Bassilli’s Best brand as well as a large variety of private label frozenentrées in trays. “Consumers are always looking for convenient, nutritious and easy-to-pre-

pare meals,” says National Sales Manager Mike Thurstan. What advice forretailers in selling these sorts of items? “It would be good to have additionalpoints of interruption during key selling periods for the products, such astheme events and seasonal tie-in’s.”On the prepared food side, time-pressed consumers want convenience and

more importantly nutrition in their take-away fare. It’s a multi-billion dollarindustry in Canada and the fastest growing one as grocery operators continueto try to lure empty-fridge consumers away from restaurants to their preparedfood cabinets instead of local fast food pizza or other outlets.The dust-up continues. Frozen may be flat, but TV dinners remain. Pre-pack-

aged is cut-throat. Chilled is growing, and becoming more a competitive advan-tage and a profit centre to competitors from Loblaws and Overwaitea to Sobeysand Metro. The new wind used to be about convenience. That’s continued. Butnow that wind has been intensified by needs for variety, taste, quality, nutritionand health, not to mention increased environmental performance.


BAKING INGREDIENTS

By Carly Peters

One cake does not fit all. With more and more specialized dietary concerns — gluten-free, reduced sugar, lactose-free,etc. - consumers are in need of ingredients that can help them both bake something that meets those requirements,but also tastes great.

Sugar has been on many people’s healthy hit list. According to Smucker Foods of Canada the Nielsen statistics they’vereceived show strong total category flour sales with increases over 10 per cent in Western Canada, which they attributeto an increase in scratch baking. Overall total sugar sales have declined by two per cent1 likely due to health concerns, asthe Tubinado Sugar and Stevia sub-categories are increasing.“Honey in general continues to see steady growth year over year as consumers are looking for healthier alternatives to

refined sugar,” states Shannon Bowden of Bee Maid Honey. “Liquid honey outsells creamed honey due to its versatility inbeing used in baking, cooking, sauces, smoothies etc.”While honey is an excellent sweetener for baking purposes, it also acts as a flavour enhancer, she adds. The naturally

occurring organic acids in honey, such as gluconic acid, enhance the flavours of spices, fruits and nuts, and when used


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with cinnamon, herbs, spices or other flavours, honey helpsbring out those taste and aromas.“Probably the biggest benefit I’ve seen is how much fresher

my baked goods stay when I’ve used honey. Oatmeal cookies Imade recently, remained soft and chewy for two weeks afterbaking. Family members thought they had been freshlybaked. Baked goods that use honey dry out more slowly andhave less of a tendency to crack,” explains Bowden, addinghoney is about one and a half times sweeter than sugar sooften you can use less. Bee Maid has a sugar to honey converter on their website to

make the replacement of sugar to honey easy (www.beemaid.com/recipe-converter). Bowden notes, honey’s acidic nature requiresthe addition of a small amount of baking soda when usinglarge amounts of honey — about one teaspoon for every cupof honey — and you’ll also want to reduce the oventemperature by about 25˚F to prevent over-browning. During baking season, it’s great to place honey on an end

aisle to remind consumers to pick it up before they getbaking, adds Bowden. “Some retailers will create bakingdisplays, where the honey is merchandised with otherbaking ingredients like baking chips, flour etc.”

Pinterest WorthyWith everyone posting their creative cakes, or crush-

worthy cupcakes on Instagram and Pinterest, the pressure ison to make baking memorable. General Mills’ Betty Crockerline, which includes mixes for cookies, brownies, cakes, andmuffins, gluten-free baking mixes, as well as frostingoptions, ensures that no matter what you’re making itcomes out perfect every time.

“Our promise is ‘Bake like a pro with Betty Crocker,’” statesCatherine Jackson, director, corporate communications,General Mills Canada, who suggests customers take a Bettyproduct as a base and turn it into something unique. “Youcan use your own individual creativity; make it your own.But you can be confident with a Betty Crocker mix whateveryou bake will turn out.”She also points to General Mills Canada’s Life Made

Delicious website which offers up some unique ways to usethe mixes and frostings for any occasion.“Baking doesn’t have to be occasion- based. Baking is a

fun thing to do with your family anytime. Have a cupcakeday at the cottage, or make a cake on a rainy day,” states


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Jackson, adding retailers should create“everyday” baking displays to encouragecustomers to move beyond just bakingfor birthdays.

Multiple TimesSmucker Foods of Canada , which

oversees baking brands such as RobinHood flour, Carnation Evaporated Milk,Eagle Brand Sweetened Condensed Milk,Crisco Shortening and Oil, Sugar in TheRaw, and Stevia in The Raw, is launchinga new gluten-free banana flavoured quickbread mix under their Robin Hood Quick

Bread Mix line. Gluten free continues tobe a key consumer trend, growing at 10per cent a year, and brings in a premiumshopper and bigger basket. The mixescategory is certainly an area of growth forgluten free, seeing 28 new skus enteringthe category last year. To push quickdistribution at launch and continuemomentum through the prime fall bakingseason, the company will offer retailers afloor stand which can easily be placedwithin a variety of areas in-store.The company also suggests creating a better

buying experience for the baker. Engage in-

store with multi-ingredient displays, inspirewith lifestyle and recipe imagery, tips andrecipes to remove the disconnect betweenthe emotion they feel when baking andthe activity of bake shopping.According to JMS Baking Moments

Shopper Study conducted in 2013 — 77per cent of Western bakers bake withfresh produce during the summermonths. Seasonal produce inspiresbakers, bringing on a desire to bake withfresh; and the baking activity increasesproduce consumption. The study’ssuggested action states grocers can drivecross-category basket growth throughsummer baking with fresh themes andcross-merchandising. With options for a variety of dietary

concerns, day-parts, and occasions,today’s baking ingredients ensurecustomers can serve up the perfect sliceof whatever they chose. ●

1 Market Track and Strategic Planner, TL WestAll Channels, Latest 52 Weeks Period EndingJanuary 10, 2015

Retailers should create“everyday” baking displaysto encourage customers to move beyond just bakingfor birthdays.

By Franco Amantea

Franco Amantea is the chief marketing and operations officer, SEVA Maple Water Inc.

Over the last few years, we haveseen the functional beverage cate-gory grow tremendously. With the

increasing popularity of coconut water; tothe introduction of new plant waters suchas maple water and even cactus water;consumers and retail buyers are left withmore choice than ever. Such beverage andbrand diversity has left consumers won-dering which brands to buy, and why.

The MarketIndustry expert Julian Mellentin of New

Nutrition Business predicts that treewaters, specifically maple and birch, willreach a $2B market by 2025. In fact, thenumber of maple water brands enteringthe market has tripled across North Amer-ica since 2012. Maple water is described aspure nutrient-rich maple sap – the clearand light water that naturally flows frommaple trees each spring. Pioneeringbrands such as Canada’s SEVA MapleWater have experienced first hand the ris-ing trend and global demand for maplewater. In 2014, they saw sales increase byover 150 per cent and exports grow fromtwo countries to 12. In the brand’s first sixmonths in 2015, they’ve seen those num-bers increase even more dramatically.

“The positive effects surrounding theincreasing availability of a product likemaple water are its contribution to soci-ety’s movement toward healthier foodchoices, and a rising and sustainableCanadian maple farming industry,” saysDenis Normandin, president-CEO ofSEVA Maple Water Inc. “By supportinglocal products, we’re reducing our car-bon footprint, and giving our farmers analternative source of revenue beyondcutting down trees for lumber. Con-sumers are thirsty to be a part of some-

thing bigger. They wanttheir purchases to begood for them, and forour communities.”

According to Agricul-ture and Agri-Food Cana-da, Canada was responsiblefor $277.9 million in mapleproduct exports in 2013, with theUS at $26.4 million. What this meansfor Canadians is that this internationaland local demand for maple productswill help drive more research and devel-opment around the nutritional benefitsof maple water, further supporting thecategory’s growth.

Nutrient Claims Existing studies such as that by Dr Yves

Desjardins (Institut des Neutraceutiqueset des Aliments Fonctionnels) reveal thatmaple water (also known as maple sap)contains abscisic acid, which is known tobe important in the fight against dia-betes. The University of Rhode Islandexplored the chemical composition (sug-ars, amino and organic acids, mineralsetc) and antioxidant activity in sterilizedmaple sap and found that even after ster-ilization, maple sap maintained its 46+diverse and unique bioactive nutrientcompounds. Key to preserving these nat-ural nutrients is aseptic packaging suchas Tetra Pak. While these studies areessential to proving maple water’s nutri-tional benefits, the category’s key playersare ready for more research to secure thealready existing scientific claims.

The Search for StandardsThe category’s earliest and most chal-

lenging hurdle was educating the con-

sumer. The wealth of media attention andbuzz since the product was first intro-duced to the market, has certainly paveda path for maple water. The category’snext challenge is simply differentiation.Most commonly, ‘maple water’ is 100 percent pure maple sap from maple trees.With the rising popularity of the bever-age, new brands are emerging and usingthe common name ‘maple water’ fordiluted maple sap, maple permeate,mixes, and even maple flavoured mineralwater. Fortunately, consumers are morelabel savvy than we think.

The industry’s major players appreci-ate a consumer’s curiosity for readinglabels but feel standards around thelabeling of maple water are very neces-sary. Fortunately, The Federation of Que-bec Maple Syrup Producers (FPAQ) hasset up a certification scheme, NAPSI,which addresses some of the standardsthat the industry is looking for. Industrystakeholders from across North Americahave gathered to explore other varioustesting and regulatory standards thatcould be put in place to ensure authentic-ity and quality of maple sap products.

What’s Next?As on trend with coconut water, maple

water brands are feeling the excitementaround the product and are alreadylaunching line extensions. Flavour pro-files and new size options are hitting theshelves as soft drinks and juices moveout and natural functional beveragesmove in. With a wealth of new options todiscover, buyers can look forward toexploring a deeper side to maple waterswhen making purchase decisions. ●

Merchandising Tips • Ask vendors to support sales with demonstrations• Book these demonstrations between 5-10 p.m. on weekends or 3-7 p.m. earlier in the week• Strategically place single-serve maple water products in the deli or cooler to cater to the consumer group’s impulsive nature

• Ask vendors to provide shelf talkers• Support brands by building displays and showcase POS material• Encourage vendors to promote your store on their social networks to help Millennials find your store

What You Need to Know About

Maple Water


The deli is about to get more sophisticated.While traditional cheddar will always havespace on people’s plates, artisanal varieties, cleaner ingre-

dients, and imported cheese are the products keeping the over-all category growing.According to Gilles M-Deschênes, assistant-director, market

development-retail, Dairy Farmers of Canada, the Nielsen datathey’ve received shows, in tonnage, every-day cheese sales are flatfor the latest 52 weeks, however there is an increase of 4.5 percent in occasional cheeses and 2.2 per cent in fine cheeses. Totalcheese sales nationally, pre-packaged and deli cheese, were up 2.7per cent on volume with 43 per cent being sold at a temporaryprice reduction. Current year to date, Manitoba/Saskatchewan isup 2.1 per cent; Alberta is up 1.2 per cent; and B.C. is also up at

four per cent. He adds an interesting trend being seen is naturalcheese sales are up four per cent and processed cheese sales areslightly down by one per cent.“The stats show that consumers are more and more interested in

discovering new natural cheeses, over and above the regular onesthey buy weekly like cheddar or mozzarella. They are veryinterested in local cheeses and learning about the cheeses butespecially the cheesemakers,” states M-Deschênes. “Cheese is likewine, it is handcrafted by artisans and if deli staff is knowledgeableand can tell the consumers about the artisan and the cheese, whatmakes it special, where it is made, the land that the cows graze on,etc. they will sell that expensive piece of cheese and notnecessarily at a reduced price. With knowledge comes passion soconsult your cheese suppliers to help you train your staff.”

CHEESEBy Carly Peters


M-Deschênes adds the top retailers now havecheese experts on their head-office deli staffthat ensure that the right cheeses are carried ineach province, depending on availability, sincesome cheesemakers are only provinciallylicensed, so can only be sold in that province,while others are federally licensed and can besold across Canada. “Those retailer cheese gurus look at listings

per region, ensure that the optimum varietyis carried and train store staff throughcourses, on-site training, e-learnings, news-letters, etc… Western Canada is full ofamazing artisan cheesemakers and you shouldmake it a point to discover which ones are

near you, often only available in yourprovince,” he states. “Retailers that go thisextra mile become better cheese experts totalk to consumers, educate them, makesuggestions, and hand out recipes versus justchecking date codes on cheeses.”“There is definitely increased interest by

consumers to look beyond larger mainstreambrands. People want to explore and connectwith the brands that they purchase, lookingbeyond price as the onlydriver of purchase deci-sions. People will pay morefor quality, uniqueness, anda product that aligns totheir belief systems,” ex-plains Mike Raftis, director,sales and marketing forManitoba-based BothwellCheese, adding this trend isnot exclusive to the cheesesector and can been seen inother industries such ascraft beer, which helpscreate a spillover effect intoall industries.Along with paying atten-

tion to who’s making thecheese, and where it comes from, consumersare also reading labels and ingredients moreclosely, he states, adding there is definitely ashift to more natural products versus productswith modified ingredients or other additives.“We have seen strong growth across natural

cheese of +3.9 per cent over the past threeyears,” explains Lainey Chodirker, seniorbrand manager with Kraft Canada, which

recently launched a new line of productsunder the Kraft Natural Cheese brand with theintroduction of Kraft Block and KraftShreds. “The search for ‘real’ and simpleingredient lines continues to be increasinglyimportant for consumers.”There is a trend towards cheese that offers

better health and wellness options — lactosefree, organic and non-processed, non GMO,non-chemical additive cheese — adds DavidHazzard, brand manager, fresh, for Tree of Life,a company always searching for new specialtycheese from around the world to introduce tothe Canadian market. “Today we find thatmothers are looking for the healthier ‘all-

natural’ snack optionsto send with theirchildren to school.Snack pack cheeses arebecoming a ‘must have’item when shoppingfor their families.”

Flavour innovation has also been asignificant driver of growth. The rise of spicyflavours/offerings across all cheese segments(natural, cream, process) in recent years, alongwith sweet innovation in the cream cheesesegment (chocolate, cinnamon brown sugar,mixed berry) provides consumers with abroader range of offerings to satisfy and meetagainst their different need states andoccasions, states Kraft’s Chodirker.

“We have seen an increased demand forvarieties that offer smoked and spicy flavourprofiles,” concurs Bothwell Cheese’s Raftis,who points to their two most popular blocksJalapeño Monterey Jack and Smoked Gouda. Whether it’s a touch of smoke, or an organic

variety, deli-quality cheese is what consumersare looking for at their grocery store.

●

ProductShowcasePrep Placement“Retailers should think outside the deli, and lookto implement various shopper marketing tacticsto drive interest in the deli. Guiding shoppers inhow to use the product is a great start. In themeat section place Horseradish Cheddar next toprime rib, Jalapeño Monterey Jack in the meatsection next to pre-made hamburger patties, orplace shredded cheddar next to the eggs.”

- Mike Raftis, Bothwell Cheese

Get in a Group“The most successful deli displays out there willregroup all the aged cheddars together or all theblue cheeses together and then identify them bycountry of origin, often using small signs or coun-try flags. So if I am shopping for a blue cheese, Idon’t want to walk around all your displays look-ing for all of them. They are all together withCanadian blues together and clearly identifiedand then the French, the British, the Danish, etc.”

- Gilles M-Deschênes, Dairy Farmersof Canada

Good Info“Point of sale cards help – letting consumersknow what type of milk is used, what region thecheese is made from, how long it’s aged, theflavour and texture, pairings, etc. Having a cheesecounter staffed with an expert to engage theconsumer, and to provide insights and samplesdrives significant sales.”

- Sue Merckx, Sartori Cheese

Just a Taste“Having demos so consumers can taste the vari-ous cheese varieties will always spur interest andsales. Many best loved cheeses are first discov-ered by consumers at their local retailer fromsampling a new cheese on demo.”

- David Hazzard, Tree of Life

Grab and Go“We have seen growth in smaller, portion-sized,fixed-weight cheeses in the grocery channel, dueto their ease of merchandizing, and the smallerdollar amount per sale for a consumer that wouldlike to “grab and go.” We are now adding on anumber of new items to the list of products wedistribute that fit this bill…Anna’s Country Kitchenbrand Triple Cream Brie in a fixed-weight 300gsize, and an Italian mascarpone in a 500g size.”

- Chris MacDonald, Bosa Foods


Consumers are interested in discovering new natural cheese and finding deli-qualitycheeses when they go to the store.


Canadian consumers are increasingly interested in ensuringthat their food and beverage purchases come from ethical,environmentally-friendly sources — in fact, six in ten Cana-

dians consider themselves to be ethical purchasers. Retailers, asthe bridge between food producers, food manufacturers, and con-sumers are in a unique position to capitalize on this trend. Butretailers can also feel excluded from the sustainability conversa-tion, since most decisions on sourcing policies or requirements aremade by brands or manufacturers. However, there is a hiddenopportunity for retailers to help drive sustainability at the groundlevel by implementing sustainable sourcing standards for suppliersand their own private label lines.

Sustainability and Food: What role do retailers play?In many markets, retailers have begun to play a larger role in

product assortment decisions, as well as in direct competitionwith brands through private label programs. In 2012, theCanadian private label packaged food market reached C$6.4billion and attained a market share of 12.7 per cent.1 This

means that retailers can havesignificant influence on thesourcing decisions related to food,beverage, and other ingredients orproducts, and could potentially

even be held accountable for unsustainable practices in theirprivate label supply chains. There are a few keys steps that retailers can take to get

started on the path to sustainable sourcing, such as defining keycategories or ingredients, creating a strong sustainable sourcingpolicy, and following other retailers’ examples.

Identifying key categories or ingredientsFirst, retailers should determine what their goals are with

regards to making their private label products, or their suppliers’products, more sustainable. For example, some companies areconcerned about potential direct or indirect impacts ondeforestation, human rights, or climate change. Broadlyspeaking, there are a few product categories that are usually

SUSTAINABILITY

By Nicole Pasricha



high priority among retailers due to theirpotential negative environmental andsocial impacts in the supply chain.

Beverages: Coffee and tea jump to thetop of the list, given consumer awarenessaround sustainable production practicesfor these products. Many retailers havetheir own brand coffees and teas that dowell in-store, making it an attractive andeasy place to focus sustainable sourcing.

Confectionery and chocolate: Cocoasupply chains are often associated withunsustainable or unethical practices,such as child labour, especially in WestAfrica where 90 per cent of the world’scocoa is produced.

Tropical produce: Bananas, pineapples,grapes, oranges and other popular fruitssourced from outside of North Americaalso present opportunities for moresustainable purchasing decisions,ensuring lower environmental impact, aswell as worker well-being on plantationestates. Canned or frozen fruits can alsobe considered under this category.

Fresh cut flowers: For retailers with floralsections, many tropical blooms are sourcedfrom South America, where sustainableoptions are becoming more available.

Home paper products: Bathroom tissue,paper towels, and other home paper productscan be sourced from manufacturers thatwork with sustainably managed forests, toensure they are produced withoutdeforestation or inappropriate socialpractices in Canada or abroad.

Bakery and snacks: Many bakeryproducts, whether fresh or packaged,contain palm oil, which is considered tobe one of the major contributors todeforestation in Southeast Asia.Sustainable palm oil options are also nowavailable in the marketplace.

There are other categories to consider,and each retailer will have slightlydifferent priorities, depending on theirstrongest product categories, privatelabels, and customer demand.

Key Elements of Strong Sustainable Sourcing PoliciesLuckily, many companies now publish their

sustainable sourcing commitments publicly,and other organizations have also developedresources to help retailers create strongpolicies. For example, the Consumer GoodsForum (http://www.theconsumergoodsfo-rum.com/) has published guidelines forits members on sustainable sourcingpolicies for forest-derived products(paper and pulp), beef, soy, and mostrecently palm oil. In addition, therecently launched webportal, SupplyChange (www.supply-change.org) wasdeveloped to share company policycommitments and progress in keycommodity areas, and has many linksback to company policies that are helpfulreading for retailers wishing to designtheir own programs.

In general, retailers shouldfocus on a few main elements indrafting their sustainablesourcing policies:

1) Policies are usually stronger (and easierto defend) when the requirement is draftedto an internationally recognized set ofstandards. For example, standards developed by multi-stakeholder groups such as the ForestStewardship Council (FSC), the MarineStewardship Council (MSC), the Rainforest Allianceand Sustainable Agriculture Network (SAN), andother groups have already gained stakeholderbuy-in, and prevent the retailer from having todetermine what is considered sustainable byenvironmental, social, and conservation experts.

2) Policies should include time-boundcommitments to achieving compliance.Consider the statement “We will strive topurchase sustainable palm oil as it is possible”versus this commitment by the Delhaize Group“By 2020, 100 per cent of palm oil in our ownbrands will be traceable and deforestation-free.”Wal-Mart has clear, time-bound commitments forpalm oil, soy, and beef. Smaller retailers need nothave such comprehensive policies, but evennarrow policies must have clear goals,commitments, and timeframes.

3) Include a regular and public method of communicating your progress againstpolicy commitments.This shows a high level of accountability andtransparency, and demonstrates to the retailer’sstakeholders - investors, employees, customers,and community - that sustainable sourcing is animportant part of the organization’s strategy andmission. A good example is Ahold’s “ResponsibleRetailing Scorecard”, which shows each of theircommitments with per cent achieved to date.

Overall, Canadian retailers can takeadvantage of the existing tools andresources for sustainable sourcing, andget started on their own path in showingCanadians that private labels can bedelicious – and sustainable. ●

Nicole Pasricha is manager of markets transformation,Rainforest Alliance

1 Agriculture and Agri-Food Canada. “Private Label Trends: Packaged Food in Canada.” June 2013.

There is a hidden

opportunity for

retailers to help drive

sustainability at

the ground level

by implementing

sustainable sourcing

standards for suppliers

and their own private label lines.


The Alberta economy has been on somewhat shaky ground as the energysector continues to feel the effects of low oil prices, but so far theprovince’s food industry has remained strong and resilient.

On the retail side, the effect of the downturn can be seen with moreconsumers turning to discounters as budgets tighten. This has not stoppedCanada’s second largest grocer from continuing the restructuring of its westernCanadian operations in the wake of the 2013 acquisition of Canada Safeway. Thecompany recently announced the closure of several stores in western Canada

and the consolidation of its western Canadian operations in Alberta. Anew fully automated distribution centre acquired from Target Canada

for $50 million will open north of Calgary followed by the closureof several older, inefficient facilities.

Marilynn Boehm is president of the Alberta FoodProcessors Association, an organization representing allsegments of the food and beverage industry in the province.The AFPA’s membership includes growers, processors andretailers and their fundamental purpose is to build acompetitive advantage for their members while being therepresentative voice of the Alberta food industry. According to

Boehm, the food industry hasn’t been strongly influenced by thedownturn in the energy sector. Manufacturing sales for Alberta’s

food and beverage processing industry totaled an impressive $13.7billion in 2014, according to Alberta Agriculture and Rural Development.

“I think from our perspective that downturn hasn’t really affectedour members’ products, but what has happened is that there have

been more people from the oil and gas industry who areapplying for jobs in the food processing industry,” explainsBoehm. She immediately adds that managers in the foodbusiness realize that this situation is temporary, andthat if the price of oil increases many candidates willchoose to return to the oil and gas industry. “Ourindustry is still having trouble getting enough workers,especially outside of Calgary, Edmonton and the majorcentres. I believe we are still short about 1,000 workers.”

PROVINCIAL REPORT

By Jaqueline Chartier



our foreign workers to become Canadiancitizens and remain a permanent part of ourworkforce. We’re not interested in arevolving door,” she insists.Meanwhile, the Alberta food industry is

constantly undergoing transformationand new developments are occurring everyday. Members of both the retail and foodprocessing sectors of the industry mustremain alert and be extremely shrewd insuch an unpredictable environment. Boehmsays that there has been a big shift in thepublic’s demand for local food in recentyears and that this is a strong movementwithin the industry. Aging consumerscombined with a rising awareness of therelationship between food choices andpersonal health is influencing the type offood products that consumers demand.Healthy eating has become a way of life formany consumers, and they are increasinglydemanding fresh, local and organic products.The Alberta Food Processors Associa-

tion has a buy localprogram in collabo-ration with Safeway.December 2012 sawthe launch of theprovince-wide cam-paign called BuyAlberta. The programinvolves a collabora-tive effort betweenthe Alberta FoodProcessors Associa-tion, Safeway Canadaand the Government of Alberta. Thecampaign’s key goal is to promote thepurchasing and consumption of Albertaproducts. As part of Buy Alberta, labelinghas been added to about 1800 items inSafeway stores. This allows shoppers tomore easily identify which products aregrown or manufactured in Alberta.

Marilynn Boehm, president, Alberta FoodProcessors Association.

This issue is particularly critical for theprovince’s meat packing plants. Meatmanufacturing is by far the largest categoryof food manufacturing in the province witha 51.2 per cent share of food and beveragemanufacturing. These plants, including theCargill facility near High River, are amongAlberta’s largest employers. Cargill, likeother major players in the Canadian meatpacking industry, has been required tosupplement its domestic hiring withtemporary foreign workers. There has beencontroversy surrounding the Canadiangovernment’s Temporary Foreign WorkerProgram, with some implying that the foodindustry exploits this labour force. Boehmstrongly denies such allegations. “We want

Approximately 1,800 items have beenlabelled in Safeway stores as part of the Buy Alberta campaign.

in the baginthe

bag What’s new & improved in the grocery aisle

Tyrrell’s Hand-Cooked English ChipsTyrrells has introduced a new barbecue chip. The company cooks their chips by hand in small batches and they always

leave the jackets on. Tyrrells new Barbecue chips are Vegan, Gluten Free and free of Trans Fats –Enjoy!” Contact your local Tree of Life Canada representative for more information.

Jarritos:We’re Not from HereJarritos is a premium soft drink made with 100 per cent natural fruit flavours, using only the most authentic and

natural fruits from Mexico. Jarritos soft drinks are made with natural cane sugar, never high-fructuse corn syrup! Jar-ritos soft drinks come in 370 ml premium glass bottles, with crown seal caps which provide a great sense of satisfaction

when opened. Jarritos has subtle flavours and are lightly carbonated, making them easier and moreenjoyable to drink! Tree of Life welcomes two new flavours; Cola and Strawberry!

Contact your local Tree of Life Canada representative for more information.

Bringing the Heat and the Flavour!The Cholula difference is all in its exclusive blend of piquin and arbol peppers, ground into a delicate pepper paste then com-

bined with signature seasonings and natural ingredients. The result is a flavourful hot sauce with a balanced heat for which itis fondly referred to as “The Flavourful Fire”. Cholula’s new Chili Lime Hot Sauce gives you all of what you love most aboutCholula’s original Flavourful Fire but with the distinctively delicious, tangy hint of fresh lime. It’s a hot ‘n’ tangy flavour sensationthat is incredible on tortilla chips, seafood, chicken, salad dressing and more!

Contact your local Tree of Life Canada representative for more information.

The Gluten Free BarThe Gluten Free Bar makes among the world’s best gluten-free high-protein snacks through a

relentless focus on creating amazing taste with simple, quality ingredients. All of their bars are: Cer-tified Gluten-Free, Non-GMO Project Verified, High in Protein 10-12g, Certified Vegan, Soy-Free,Dairy-Free, All Natural, Source of Omega-3, Low Sodium, Certified Kosher, Trans-Fat Free, Choles-terol Free and made in a dedicated gluten-free facility. For more information visit www.theglutenfreebar.com. To place orders in Eastern Canada

contact Neal Brothers Foods 1-800-738-7955 [email protected]. In Western Canada contact Left Coast Naturals1-877-769-6887 [email protected] or BrandSeed Marketing www.brandseedmarketing.ca

GBS Expands LinesGBS Foodservice Equipment has introduced their newest addition to the GBS product line: ITV Ice Makers of

Valencia, Spain and Miami, Florida. Founded in 1981, ITV has been successfully manufacturing ice makers withworldwide distribution to in excess of 100 countries and every continent. With over 30 years of experience, ITVoffers a top-quality range of products which focus on state-of-the-art cube style and flake ice machines, dis-pensers and storage bins as well as filtration systems, parts and accessories.

Snacking just got perfect, REESE Snacksters have arrived!You may have already heard the buzz about the new REESE Snacksters. REESE Snacksters are perfect for on-the-go

snacking, delivering the authentic, one-of-a-kind, perfect combination of chocolate and peanut butter taste REESE Candylovers know and love in a convenient single-serve pack to enjoy anytime, anywhere.


Boehm stresses that buy local initiativesare an advantage for the province’s smallfood processors, but for larger moreestablished processors their betteropportunity is often to expand into otherCanadian and U.S. markets. A fewexporters, especially in the Alberta meatindustry, might even choose to look beyondNorth America. Across the emerging world,an army of newly rich consumers is growingand the numbers are impressive. Brazil hasbeen adding five million annually to itsmiddle class. Indonesia exceeds that, atseven million a year. Go to India, and

Mia’s Kitchenmakes it RightMia’s Kitchen creates handcrafted pasta sauces from the finest and freshest ingredients grown in Sonoma, the

heart of California’s Wine Country, which the Sebastiani Family calls home. All of their pasta sauces are Non-GMOas well as Gluten Free and come in four great flavours: Bistro Marinara, Portobello, Tomato Basil and Sriracha.

Contact your local UNFI representative or BrandSeed Marketing www.brandseedmarketing.ca for more information.

AFPAAnnounces 2015Competition CategoriesAward Winners

Best finished product using beef as aprimary ingredient

Spragg’s Meat ShopBacon Wrapped MeatballsGreg and Bonnie SpraggT: (403) 378 3800, Rosemary ABwww.spraggsmeatshop.com

Best snack food or confectionery

Cococo ChocolatiersCanadian Icewine TrufflesKristen Halpen and Kristi MehrT: (403) 265 5777, Calgary AB www.bernardcallebaut.com

Best dairy product, baked product or sauce

MacKay’s Cochrane Ice CreamHaskap Berry Ice CreamMark and Meghan TayfelT: (403) 932 2455, Cochrane ABwww.mackaysicecream.com

Most Innovative

Mountain Meadows Food ProcessingNo Nuts Chocolate Peabutter portion paks Caryll and Norman CarruthersT: (780) 961 2470, Sturgeon County AB www.peabutter.ca

potential opportunities are even greater —their annual number is between 10 and 20million, and they hope to reach 30 millionin the near future.As far as the future is concerned

competition in the Alberta food industry ispredicted to remain keen. Successful foodretailers and manufacturers will be the oneswho are able to pay attention to detail andadapt to changing conditions. Innovationin the food industry will remain critical forbrands to keep pace with emerging trendsand enable the industry as a whole tocontinue to grow and develop. ●

76 WWW.WESTERNGROCER.COM WWW.WESTERNGROCER.COM 77

in the baginthe

bag What’s new & improved in the grocery aisle

Refreshing Mint Chocolate Bar from Green & BlacksGreen & Blacks is proud to introduce a new refreshing mint chocolate bar with infused peppermint oil. This new bar from

Green & Blacks delivers the smooth indulgence of dark chocolate with a strong hit of refreshing peppermint flavour. Thepeppermint oil works together in perfect harmony with the 60 per cent dark chocolate.

Please contact your Tree of Life representative for further information.

Hi I’m Skinny Here is a snack that is super tasty, convenient, good for you and doesn’t make the scales or your

skinny jeans a scary thought! Hi I’m Skinny is just that and is packed full of simple, real ingredients,such as quinoa, whole grains, chia seeds, sweet potatoes, and real vegetables. This guilt-free snackis full of flavour and has the perfect crunch! It contains no artificial colours or flavours, is certifiedgluten-free, non-GMO Project Verified, and vegan. Please contact your local Star Marketing repre-sentative for more information. Visit www.starmarketingcanada.com

Prema Chai Spices Up The Tea Aisle

This summer, a traditionally brewed, ready-to drink chai is launching to the Canadian marketplace. PremaChai takes the labour-intensive process of preparing traditional Indian tea, and transforms it with a ready-to-drink format perfect for enjoyment in a busy, modern world.

Prema, the Sanskrit word for love, is the inspiration behind Perma Chai. It was created by Tas Cheema, aSurrey-based entrepreneur, using a family recipe passed down through generations. He saw the need for anauthentic chai that met the needs of his modern South Asian family.

New Flavours from NoNutsNoNuts Peabutter has 3 delicious new flavours-Extra Creamy, Cinnamon, and Chocolate! Like the Orig-

inal flavour, the new ones are free of the top 11 allergens, making this safe for peanut/ nut restricted loca-tions such as schools. NoNuts Cinnamon flavour is a delicious, nutritious dip for sliced apples. NoNutsChocolate has less than half the sugar, per serving, of the leading chocolate spread and NoNuts ExtraCreamy makes wonderful sandwiches. NoNuts is available in a variety of sizes for retail and food service.

For further information call 1-800-961-2470 or email [email protected].

Healthy, Convenient, Delicious and Sustainable Snacks FromOcean’s

Ocean’s has introduced a new Gluten Free Snackit variant: Lemon&Pepper Snackit. With this well loved flavourpaired with rice crackers, it is a perfect healthy snack for people on the go! Also new is the FAD Free Lemon&Pep-per Tuna. With just the right balance between lemon & pepper, this makes for a delicious, healthy meal or snack.Caught responsibly, it is good for you and the environment.

For further information, email: [email protected] or visit www.oceanbrands.com.

NEW Burt’s Bees Facial Cleansing TowelettesBurt’s Bees Facial Cleansing Towelettes are a fresh new option for your daily beauty rou-

tine. Now available in Pink Grapefruit as well as Exfoliating Peach & Willow Bark, these nat-ural face wipes allow you to remove make-up, cleanse and tone in one easy step, revealing abeautiful complexion. The cloths are Forest Stewardship Council certified and are infusedwith natural ingredients to keep your skin looking and feeling great. Burt’s Bees Facial

Cleansing Towelettes are also available in White Tea and Sensitive with Cotton Extract variants. Burt’s Bees has been offering distinctive,earth-friendly natural beauty care products for 30 years.

HARIBO, the Original Gummy Bear, Adds New Flavoursto Canada

HARIBO, the German confectionery giant, continues to gain ground in the Canadian marketplace byadding two new flavours to its current lineup of official Canadian products. HARIBO has an exciting range ofsugar confectionery that set themselves apart from competitors with a focus on natural ingredients, highquality detail in their gummy designs, innovative shapes and flavours, and a world-famous brand name. FruityFrutti is HARIBO’s most innovative new sku; it consists of three parts; a foam bottom, berry shaped gummy top, and an infu-sion of sweet, fruity filling. HARIBO’s Sour Stixx is known for its tangy and sour finish; they anticipate it will be popular with the average Cana-dian consumer who loves sour candy. HARIBO’s gummies are made with no artificial colours, and its unique flavours are derived from plantand fruit concentrates. Contact your local National Importers representative for more information.

Original Gourmet Innovation Unveiling atSweets and Snacks Expo 2015

Original Gourmet has introduced Squrtz, a new line of soft chewy candy with a juicy orsour burst of flavour inside! Squrtz will be available as peg bags, plastic containers or a600g tin of individually wrapped candy. Original Gourmet has also expanded their capabil-ity to create hand-pulled swirl style lollipops, using a technique that offers extra shine, vibrant colour and vivid fruity flavours in a variety ofsizes, paddles and unicorn pops are available as well as fun seasonal shapes to sweeten consumer festivities and decor. Bella Chocolate brings

Original Gourmet into the sharable chocolate category with a line of milk and dark chocolate-coated caramel pieces as wellas chocolate covered candies with assorted fruit (orange, strawberry, and pineapple) or coffee filling.

NEW Bee Maid Proudly Canadian Beaver! Bee Maid is celebrating 60 years of packing only 100 per cent pure Canadian honey with the launch of their special edi-

tion 750g Beaver. With Bee Maid’s new blow molding equipment, bottle design creations are now virtually limitless. Work-ing with a marketing agency, the beaver’s eye-catching shrink sleeve label came to life. Available for shipping in summer

2015, this Canadian beaver is sure to sweeten up the honey category. As always, it contains the deli-cious 100 per cent pure Canadian honey consumers know and love.

GH Cretors Introduces New FormatGH Cretors is now available in a 42g single serve bag, perfect for an on-the-go treat! This convenient and portion

controlled size offers a blend of caramel and cheese corn with simultaneous hits of sweet, salty, crunchy, and cheesyall in one bite. It is gluten-free, certified Kosher, and made with all-natural ingredients, completely free of GMOs,artificial colours, flavours, and preservatives. This new 42g bag is now available. Please contact your local Star Mar-keting representative for more information. Visit www.starmarketingcanada.com

Casa Giulia Agavi Award-Winning Products

Casa Giulia Agavi has introduced innovative low glycemic index fruitspreads sweetened with agave nectar. The product was recently named oneof the Top 10 Most Innovative Products at Grocery & Specialty Food West Trade Show.

For further information contact [email protected] 604-929-5711

AFPA .......................................................................72

American Peanut Council .............................32

Amerlux ................................................................49

BC Hydro .........................................................OBC

Bee Maid Honey Ltd. .......................................62

BG Health Group Inc .......................................44

Biro Manufacturing Company ......................61

Bosa Foods ......................................................... 45

Bothwell Cheese ...............................................64

Carlton Cards Ltd................................................ 3

CFIG....................................................... 11, 12, 13, 14

CHFA.................................................................... IBC

Direct Plus Food Group................................. 23

Discovery Organics ..........................................24

Ecolight LED Solutions Corp ...................... 50

Eden Foods......................................................... 68

Elias Honey........................................................... 61

Etalex .....................................................................48

Falesca Importing ............................................42

Fresh is Best Salsa & Co................................ 35

Gardein ..................................................................53

General Mills Canada .................................9, 20

Guru Lucky Snacks ...........................................34

Hussmann Canada Inc ...................................46

Inovata Foods .................................................... 56

Koelnmesse Inc. - Anuga .................................7

Kraft Canada .........................................................17

Loacker USA .......................................................39

Materne Canada .................................................21Mondelez Canada Inc .....................................36National Importers ..................................... 8, 40NuPasta Inc .........................................................55Ocean Brands ......................................................19Olaf Packaging Group Inc .............................73Original Prema Chai Inc ...................................6Pacific Foods...................................................... 30Precision Water Systems ................................74Ruiz Foods........................................................... 59Sartori ....................................................................67Sparks Eggs .........................................................72Star Marketing.................................................... 35Tree of Life ..........................................................FC West Coast Reduction Ltd ...........................73Ziyad Brothers Importing .............................22

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PLAN TO ATTEND

conference: september 17 & 18trade show: september 19 & 20metro toronto convention centre, south building

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TAKING STOCK

Building and sustaining a suc-cessful food and beverage busi-ness requires a constantly evolv-

ing strategy that embraces consumertrends and turns them into opportuni-ties. Consumer trends are ever-chang-ing and food and beverage companiesneed to adapt their tactics to fit withthis fluid landscape. Here are sometrends that you may want considerincorporating into your strategy:

ConvenienceWhile there are a number of consumer

trendsimpactingprocessors,convenienceis one of the most important and willcontinue to be so in the future.Consumers are willing to pay more forconvenience as their work habits andlifestyles change. Also, some consumersare becoming more disconnected fromfood preparation. Shopping and eatinghabits are sporadic, meal-planningcycles shorter, snacking is replacingcourses as well as whole meals andfood is becoming more portable. Thesetrends will have implications for bothfood and packaging waste.

Healthy EatingHealthy eating is another critically

important trend that has considerableinfluence over company strategies.But while consumers want “healthy,”some consumers aren’t willing to payfor healthy food or are confused bywhat healthy means. Food processorsneed to continue to effectivelycommunicate to consumers the healthbenefits of their products.

Food Through Social MediaFood’s interface with social media

continues to be one of the mostexciting trends in the food andbeverage industry. Through socialmedia, Canadians are expressing theirlove for food and finding out aboutfood in a variety of ways — throughfood apps, food blogs, and other socialmedia platforms such as YouTube,Pinterest, facebook, Instagram andtwitter. Also, consumers want to beinformed and more are utilizing socialmedia to get their information aboutfood. Understanding how to leveragesocial media to inform and engagewith consumers is key to developingconsumer-driven strategies.

Changing DemographicsWith growing and ethnically diverse

populations coming into Canada,immigration continues to be a drivingfactor of food innovation. Foodproducers need to respond withdiversification, fusion and blendedcuisines and learn to deal withunfamiliar food ingredients, cookingmethods and presentation styles.

Organics and Non-GMO FoodsDemand for organics, at a modest

price premium, continues to rise, asquality and availability matches thatof conventionally produced foods.

Farm-to-ForkThere will be increased emphasis on

the farm-to-fork journey. Shopperscontinue to ask questions about wherefood comes from and there is addedemphasis on the farmer’s role in the foodproduction and preparation process.

Food Safety and TrustConsumer confidence in foods tends

to shift with the news of the day.Whether it is based on reality orfiction, consumer perception drivessales. Canadian processors need to bevigilant at ensuring safe food andcommunicating the facts aboutingredients, process and commitmentto food safety.

A Sustainable Responseto Trends: StrategySucceeding in the food and

beverage industry is not just aboutspotting trends, it’s about how toeffectively analyze and respond tonew trends. Understanding trends willonly help your business if there is astrategic process in place to respond.Consumer trends are changing quicklyand are not always apparent until it’stoo late. No matter what successesyou’re seeing right now, rememberwhat’s working today for consumersmay not work tomorrow.What Dan Millan wrote in 1980

holds true today: “The secret ofchange is to focus all of your energy,not on fighting the old, but onbuilding the new.”Those who take active steps

towards developing a strategy thatpositions them to effectively tap intochanging consumer trends will reapthe greatest rewards. ●

By S, Alexander

Cultivate Your Strategy to Embrace Trends

Ken Bulthuis, CPA, CA leads MNP’s Food and Ag Processing practice in B.C. Maria Gonzalez, is a Senior Consultant in the consulting practice of MNP who provides clients with market research and analysis, strategy and planning support.

For more information, contact Ken at [email protected] or 604.463.8831.

Restaurant owners receive an average incentive of $2,477* by participating in the Power Smart Express program. The incentive, plus the money you save on energy bills each year, means you can reinvest back into what matters most—your business. And yes, that could include even more kitchen gadgets. Five minutes is all it takes to get started or to request more information about your potential savings.

Save power and money at bchydro.com/express.

THE DOLLARS ADD UP

*Incentive amount based on an average of 1,009 projects completed between 2010 and 2013.

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