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This Week Making Reflect Canada’S Increasingly Diverse Consumer Base

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This Week Making Reflect Canada’S Increasingly Diverse Consumer Base July 29, 2013 Changing Food Retail Landscape conditions, demographic shifts, changes in consumer behaviour and technology innovations,” in Canada and Alberta says Jeewani Fernando, provincial consumer market analyst with Alberta Agriculture and Rural Development. “Compared to the U.S., Canada’s economic conditions are suitable for retail market The Canadian Food Retail industry is changing. As expansion. Canada’s GDP has shown a modest big-box stores continue to open across Canada, growth. Unemployment is declining and consumer numerous ethnic (largely Asian) large-format prices are trending towards long-term stability. grocery stores are also being built across the Canada has demonstrated less volatility; however, country. Empire Co., the parent company of the exchange rate advantage over U.S. dollar has Canada's second-largest grocery chain Sobeys, disappeared and this will become a bigger issue for acquired Safeway Inc.'s Canadian operations in June Canadian grocers.” 2013. This positions Sobeys as a leading grocer in Western Canada and the largest grocer in Alberta with 234 stores combined. The changes retailers are This Week making reflect Canada’s increasingly diverse consumer base. Industry sales for food retail stores are estimated Changing Food Retail Landscape in $85.5 billion in 2011, and it is projected to grow at a Canada and Alberta 1 rate of 4.6 per cent annually, as more Canadians choose to eat at home. The grocery market is highly Off the Beaten Palate – Alberta 2 concentrated and vertically integrated into food distribution. The top retailers are Loblaws, Sobeys, Farm Equipment Repair Parts Warranty Metro, Costco, Safeway and Walmart, and they account for about 80 per cent of total food sales. and Availability 3 According to Canadian Grocer (Executive Report Small Scale Livestock CSA Field Day 3 2012-2013), it is forecasted that convenience stores, hypermarkets (Walmart, Costco and Supercentres) New and Revised Crop Information on and speciality food stores grow in value with higher Alberta Agriculture's Website 4 percentages. Developing a New Vaccine for Poultry 4 “Canadian retail industry has been transforming due to combination of factors such as economic According to Nielsen, despite the fact that Canadian consumers is one such example.” recession is officially ended, 49 per cent of consumers say that Canada is in a recession. Recent developments in the Canadian retail food However, Canadian consumer confidence continues landscape have intensified the market competition. to increase, but they are still showing spending In general, this situation is beneficial for consumers restraints. as choice will continue to expand. However, consumers may be concerned about higher prices “Baby boomers are expected to account for 21 per due to retail concentration in their local shopping cent of Canadians in 2026,” says Fernando. “As the areas. population ages, consumer products and services will need to adapt to meet their changing needs. “Concentrated retailers’ buyer powers are high,” Another demographic shift which is shaping says Fernando. “Retail buyers will constantly look Canada’s market place is Millennials. Their to reduce price, improve product quality and extend influence on the market is strongly related to their the product range. This situation is challenging for financial power. small and medium scale food producers, processors They value quality over quantity, have a real and suppliers to begin with.” passion for social causes and have grown up using internet for everything. Retailers who can appeal to Additional information, as well as charts and graphs this demographic section and offer them the on this subject, can be found on Alberta products and experiences they value will be the Agriculture’s Consumer Corner webpage. most successful.” Contact: The other biggest change is the increasing ethnic Jeewani Fernando diversity in Canada. Increased importance of 780-415-9773 ethnicity will continue to redefine produce trends with more diverse selections and offerings. Aging consumers and rising awareness of the relationship between food choices and personal Off the Beaten Palate – Alberta health is influencing the type of food products that consumers demand. Healthy eating has become a trend and is a significant change in consumer Alberta food and tourism were profiled on the T.V. behaviour. Consumers are increasingly demanding program Off the Beaten Palate. The Alberta episode fresh, natural and organic products. Consumers are was broadcast in the spring of 2013 on PBS/Detroit also seeking ways to maximize the limited time they Public Television to 18.6 millions of viewers, have for food preparation and this had created a travelers and food industry aficionados across North great demand for convenience products. America. Technological innovations such as mobile Off the Beaten Palate – Alberta follows host platforms, smart sensors and social media have Michael-Ann Rowe on a food and culture journey to enabled new ways of shopping. Shopping on mobile explore the province. Rowe travels north, south, east devices have made it possible for online offers to be and west of Calgary, where she meets with breeders localized and personalized. As more stores adapt to of Angus cattle and tries Rocky Mountain cuisine. Wi-Fi and the use of smart sensors around the store, shoppers will be able to use location-based services She also meets with producers of free roaming pigs, which include checking product availability, experiences canola harvesting and learns about the locating products and identifying alternatives and significance of Head Smashed-In Buffalo Jump (a complementary products. Tomorrow’s ‘smart Unesco World Heritage Site). consumers’ will require all retailers to address the new ways they want to shop and how they will The Alberta episode features prairie feasts that expect to be served. include bison short ribs, steak prepared by the Beef Geek, as well as a trip to a micro-brewery. “Retailing strategies used by companies reflect complex retail food market place,” says Fernando. The episode can be viewed from a link on Alberta “Loblaw’s Guiding Stars nutrition navigation Agriculture’s website. system with in-store registered dieticians to support Contact: Contact: Paola Deneault Robert Martin 780-422-1762 310-3276 Farm Equipment Repair Parts Small Scale Livestock CSA Field Warranty and Availability Day A field day focusing on small scale livestock Every sale of a new farm implement in Alberta production will be held in Red Deer County, west of carries a warranty that repair parts will be made Bowden on August 26, 2013 available for 10 years from the date of the sale . agreement and must be available within a time As part of the field day, there will be a visit to determined by the Farm Implement Act White Creek Meats, an operation that includes Regulations. These original equipment manufacturer laying hens, broiler chickens, turkeys, bison and (OEM) repair parts carry a 90-day warranty, stating cattle. White Creek Meats direct market meat and that they are free of defects in material and eggs to local customers through word of mouth and workmanship from the date the parts are first used their website. The farm is managed as a whole, in the first normal season of use. being as holistic as possible and realizing all . systems work together. To this end, they use “To obtain emergency repair parts in the season of principles such as rotational grazing, electric use, farmers must let the dealer parts manager know fencing and grass finishing. The farm is also off- the implement is down and emergency repair parts grid, and relies on solar power to provide their are required,” says Robert Martin, farm implement electrical needs. Additional on-farm innovations inspector with the Farmers’ Advocate Office. “Most include building their own energy-free waterers and distributors have a machine-down order system that all of their own pens and buildings. will expedite the parts order. Repair parts must be made available to the producer in three working The on-farm field day starts at 11:30 a.m. with days within the implement season of use.” lunch, followed by the farm tour. Cameras and questions are welcome. This is a free event; It is illegal for the distributor or dealer to use however, pre-registration is required so that anything other than OEM parts when repairing an organizers know how many people to expect and implement under warranty. The dealer and feed. distributor must use parts that are new and of the standard quality and size prescribed by the More information about White Creek Meats is manufacturer for that implement. However, the available on the internet. farmer may waive this requirement by authorizing the substitution in writing. To preregister for the field day, contact Krista toll- free at 1-800-661-2642. For more details about the Should there be a delay in the delivery of repair tour, contact Bert Dening at 780-674-8247. parts for reasons beyond the control of the dealer or distributor, such as a strike, transportation problem The Alberta Farm Fresh Producers Association or some other factor, neither the dealer nor website has directions to the farm. distributor would be held responsible as the delay is out of their control. The Farmers’ Advocate Office maintains an Obsolete Parts Directory for hard to find parts that are past the 10-year requirement. Producers needing to source such parts, or should producers have any questions on warranty repair parts, contact Robert Martin, toll-free in Alberta, at 310-3276. New and Revised Crop To learn more, click here to read ALMA’s latest Information on Alberta information bulletin. Agriculture's Website Alberta Agriculture and Rural Development hosts a vast amount of information on its website. Producers can find factsheets on almost any crop, livestock, production or processing topic they can name. As an ongoing commitment to Alberta producers, new factsheets are written and posted and existing factsheets are reviewed and revised as new information comes available.
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