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1 1 10:00 AM Serving Western Canadians for 100 Years publisher’s perspective

MAY/JUNE 2016 • VOLUME 102, NO.2 Western Grocer Celebrates 100 Years!

In this Issue 1916 was a heady year in Western Canada with the First World War in full swing and the region’s 29 economy bursting at the seams, especially the 11 The 2016 SIAL Canada and SET 21 grocery industry where Winnipeg had already established itself as the supply Canada in Montreal centre for all of the West. That year the Winnipeg and Western Grocer Back in Montreal for its 13th edition, the SIAL International magazine put out its first issue. Food Show reached record attendance! One hundred years later, Western Grocer magazine continues to provide the much needed coverage of an industry that is just as dynamic as it was in 21 Only Getting Better those early years, despite major changes in how the business works. While Western Canadians still love their favourite snack options Winnipeg is still an important commercial centre for the industry, many of – cookies and crackers. the head offices have moved to other points west where population and 26 Grocery & Specialty Food West Takes wealth have concentrated. And, while independents are still a major part of a Bite Out of Vancouver the landscape, especially in Western Canada, chains and discount banners have assumed a much larger profile. Concentration has been a key feature in A record number of the grocery industry gathered at the annual exhibition out west in April. the industry with major chains merging and suppliers looking for economies of scale to battle the headwinds of change. 29 Cultured Cash Cow But behind all these changes the industry has stayed the same in one Despite changing tastes, yogurt remains a crucial way: the need to engage the consumer by delivering fair prices and powerhouse category. excellent customer service. Western Grocer is dedicated to helping store 31 Finalists Revealed for Canada’s managers, merchandisers and company executives navigate the constant Top Prize for Grocery Newcomers changes, understand the consumer and provide that level of service for which it has become a beacon in retail business. Revamped Canadian Grand Prix Awards honours best new brands on the shelves. More importantly, we would like to extend our congratulations and thanks to all our loyal readers, many of whom are second and third generation 39 Putting the Chill on Energy Costs grocers who have been receiving the magazine for decades. Thanks to you we With energy prices on the rise and greenhouse gas can continue to provide the information needed to be successful in levels a clear concern, improving your store’s energy 14 challenging times! efficiency isn’t really an option anymore. 43 Top Picks 31 On Our Cover Knowledgeable produce managers and staff are Frank Yeo, the key to a successful produce department in Publisher & Editor times of high prices. 14 Western Grocer 47 Making A Niche a Powerhouse Celebrates 100 Years From retail operations to food processing and exporting, Over the last one hundred years Robin Bradley B.C’s food industry is on fire. the grocery industry has been Melanie Bayluk fundamentally transformed; although 51 Beyond Dietary Law - Associate Publisher & Western Account the principles of good service and National Account Manager customer first remains the same. Manager 55 Responsive Security [email protected] [email protected] Technology that keeps customer service top of mind. Cover Photography: shutterstock.com / Mercury Publications.

Publisher & Editor, Frank Yeo; Associate Publisher & National Account Manager, Robin Bradley; Western Account Manager, Melanie Bayluk; Editor/Editorial Production Coordinator: Nicole Sherwood; Advertising Departments 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- 205 7 www.mercury.mb.ca • e-mail: [email protected] Associated Publications: C-Store Canada Magazine, Votre Dépanneur, Commerce & Industry Magazine, Western Hotelier, Western Restaurant News, Health 43 & Wellness Retailer, Western Food Processor and Bar & Beverage Business . Circulation: Western Grocer Magazine serves the grocery and allied non-food industries. Readership includes distributors, brokers, 6 Market Update 59 In the Bag manufacturers, wholesalers, independent grocers, food processors, bakeries, supermarkets, convenience stores, principal food service outlets, food researchers and consultants, government, voluntary groups 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 one year, $63.00 for 10 Calendar of Events 62 Retail Collaboration 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 may not 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

4 WWW. WESTERNGROCER .COM WWW. WESTERNGROCER .COM 5 market update Fresh Direct Named Nature’s Path Earns First Zero Waste One of Canada’s Best Facility Certification In Canada Catelli Foods’ Picture Perfect Family Managed Companies Nature’s Path has announced that their company’s facility in Delta, BC — home of their Que Pasa Mexican Foods brand — has been Catelli is taking a journey with Canadians in a new campaign that celebrates certified at the Gold Level by the U.S. Zero Waste Business Council. the role of pasta in today’s modern family mosaic. As a leader in green business and sustainable food manufacturing, Nature’s Path has the first and only facility in Canada to become Zero To help launch the campaign, Catelli Foods has created a new spot that showcases our love Waste certified by the council. of pasta by celebrating the special moments in our lives today. Having recently premiered dur - Fresh Direct Nature’s Paths’ Delta facility currently diverts 95 per cent of waste from landfills, totaling ing the 58th annual Grammy Awards, Picture Perfect utilizes a series of vignettes to show the Produce Ltd. has 1.2 million pounds (equivalent in weight to 350 midsize cars or three blue whales) and sur - moments that families experience today and the joy that comes with them. In addition to the been named one passing the criteria of diverting 90 per cent of waste produced away from the landfill which of Canada’s Best Managed Companies for is achieved through recycling and composting. The company conducts independent, third five consecutive years. This prestigious party waste audits every two years. national award is sponsored by CIBC, Annie Moss of Deloitte, National Post, Queen’s School of Discovery Organics Business, and MacKay CEO Forums. “Our team is honoured to receive the Receives Award Best Managed Award for the fifth year in a row. We continue to learn and prosper Annie Moss, president, Discovery from our dedication to this esteemed pro - Organics, was given the Brad Reid gram, and it shows in our ability to plan, Memorial Award at the 2016 execute, expand our capacity, and develop our capabilities. In the last year we have Certified Organic Association of significantly expanded our product lines of British Columbia’s annual conference. organics, and pre-packed produce for qual - spots, Catelli Foods has launched a multi-layered communications campaign. This includes ity grocery retailers across Western Cana - The award is given in honour of members extensive public and influencer relations leveraging partnerships with top Canadian chefs da. We are now looking forward to our of the organic community who demon - — Cory Vitiello, Martin Juneau and Michael Allemeier — a newly built website (www.catelli.ca) expansion into a larger facility in Calgary at strate outstanding service in moving featuring an extensive collection of recipes and pasta loving content from several more influ - the end of this year,” says President and organics forward. Moss has dedicated ential Canadian foodies, as well as updated packaging and events across the country. Co-Founder Davis Yung. many years to the organic movement, and Rexall Drug Store Chain to be Sold to as an importer/wholesale of organic produce for over 15 years, she has helped McKesson in $3 Billion Deal raise the profile of organic farmers, had Bill Ivany Joins input on policy and standards, and has Tree of Life McKesson Corp.’s $3 billion acquisition of drug chain Rexall will give the U.S. health- been a mentor to many who wanted to care services and technology giant a national retail store network deeper pockets to enter the world of organic produce. battle Loblaw-owned Shoppers Drug Mart and will likely spur more consolidation in the Bill Ivany will be joining Tree of Life sector, experts say. in the newly created role of chief operating officer.

“Our company and Strategic Acquisition Reinforces Stingray’s Position the grocery industry in as Leader in the Field of In-Store Media Solutions Canada are going through a period of Stingray Digital Group Inc. announced that it has acquired Nümedia, a company that counts Cogeco Data Services (a subsidiary of dramatic change in a Cogeco Communications Inc.) as one of its minority shareholders. Nümedia provides intelligent media solutions to its clients by enabling climate of economic in-venue music, experiences, communication, engagement, and activation. The transaction is valued at $2 million. “This transaction rep - headwinds, retail con - resents another milestone for Stingray Business, our commercial services division, and represents an opportunity to leverage the com - solidation, currency plementary strength of both companies,” said Eric Boyko, president, co-founder, and CEO of Stingray. “The acquisition of Nümedia will volatility, technologi - enhance our competitiveness and confirm our leadership position in the field of in-store media solutions. We look forward to integrating cal upheaval and other the Nümedia team, to learning from their solid track record, and to developing long-term relationships with our new clients.” marketplace disrup - tors. To best prepare ourselves for this changing world, I felt it was opportune to bring in another accomplished senior exec - utive. As the saying goes, anyone can sail in smooth waters; it is only when the seas are rough that you are truly tested. Bill brings an impressive skill set that I know will help us navi - gate these waters”, says Jamie Moody, president, Tree of Life Canada ULC. Ivany comes to Tree of Life from Marsham Nat - ural Food Brokers, where he was president. Prior to this, he was the president of Melitta Cof - fee Canada, a post he held for 14 years. His previous experience with William Dunne Food Brokers and ConAgra set him up well to take the Melitta brand to new heights of success in Canada.

6 WWW. WESTERNGROCER .COM WWW. WESTERNGROCER .COM 7 market update Honey Nut Cheerios Looking to Create Buzz Around Bringing Back the Bees Torani & Single Cup Coffee Win Product Canada’s bees need help. So Honey Nut Chee - SIAL Canada Unveils The 2016 rios, a General Mills cereal product that has of the Year made the bee and honey a central part of its SIAL Innovation Grand Prize brand signature, is calling upon Canadians to Single Cup Coffee, makers of Keurig-com - help bring them back. patible single serve coffee cups, has ninth edition In the face of unstable bee populations, announced that its Torani line of coffees, Honey Nut Cheerios has launched “Bring Back including Salted Caramel and Coconut Mac - Essence Desserts, Canada were awarded the SIAL Innovation 2016 Grand Prize. The Bees,” a multi-pronged marketing cam - aroon, have won the Product of the Year A $135,000 value made available to winners: paign that aims to raise awareness of this Canada award in the K-Cups category. important cause and to inspire and empower Wi nning in the K-Cup category, Torani • Nielsen will provide a project worth $50,000 to winners to help them get their product to market. Canadians to help support Canada’s bees by Salted Caramel and Torani Coconut Maca - • The SIAL Network will provide an exhibition space for free at all of the SIALs, including Paris. planting wildflowers in their communities. roon Coffees are made with 100 per cent • The grand prize winner, will travel around the globe as they visit all of the SIAL network’s shows, In a bold move, General Mills has added an Arabica coffee beans, expertly roasted which will be held in Canada, China, the Philippines, Indonesia, Paris and Abu Dhabi. important statement to the campaign by with the same care and craftsmanship removing Buzz, the beloved Honey Nut Chee - that goes in to all Torani products. SIAL Innovation is the only international contest with a presence in the four corners of the rios mascot, from the front of the box for a six- “We are incredibly thrilled that Torani world. Made up of food professionals and presided over by Xavier Terlet and the XTC World week period to drive home the brand’s message was selected as the top K-Cup Innovation firm, the jury is made up of 10 finalists and will hand out one Grand Prize. that bees need our help. Product of the Year,” “This is the first time in the brand’s history said Tracey Noakes, Colleen Dyck, Founder of that we’ve taken ‘Buzz’ off the box,” said senior director, retail Emma Eriksson, director of marketing for General Mills Canada. “One third of the foods marketing at Single GORP Clean Energy Bars, we depend on for our survival are made possible by the natural pollination work that Cup Coffee. “We bees provide. With ongoing losses in bee populations being reported across Canada, worked closely with Wins the 2016 Mompreneur we wanted to leverage our packaging to draw attention to this important cause and Torani to create the Award of Excellence issue a call to action to Canadians to help plant 35 million wildflowers — one for every ultimate coffee indul - person in Canada.” genc e that anyone Niverville’s Colleen Dyck of GORP Clean Energy Bar A fully integrated marketing and communications campaign which includes promotion - can make and enjoy in their own home has been crowned one of Canada’s Top moms in busi - BC-based al packaging, a new TV spot and online video, a microsite, contesting, consumer sampling and now to be recognized as the best in ness by her peers and the community. and PR will support the program. The campaign is being spearheaded by an online video. Canada is a wonderful feeling.” Four winners were selected from an incredible list of Fresh St. Market 20 finalists, close to 200 nominees and Unveils First The BringBackTheBees campaign will run from March to July 2016. 17,000 candidates from across the For more information, visit www.bringbackthebees.ca . country. A diverse panel of business Refrigerated Click leaders judged the finalist entries. The winner was chosen based on a set of & Collect Lockers specific criteria including track in Canada record of success, innovation of business idea, and British Columbians are now able to impact on community. order groceries on-the-go and pick up Colleen Dyck, of GORP 24/7 with Fresh St. Market’s new Click Clean Energy Bar from Niverville, MB won the Mompreneur of the Year Award. & Collect refrigerated locker system. GORP Clean Energy Bar is an all natural energy bar made on the family farm in the Cana - The BC-based grocer is the first retail - dian Prairies. It’s packed full of many local healthy ingredients and contains no fake er in Canada to bring remote refriger - or . ated lockers for self-serve pickup of fresh and frozen grocery via smart - Loblaw to Invest $1.3 billion, create approximately phone technology. “Fresh St. Market’s refrigerated Click 20,000 jobs in 2016 & Collect is another evolution in the future of grocery shopping,” explains Loblaw Companies Limited, will invest Mark McCurdy, spokesperson for Fresh approximately $1 billion into its Canadian retail St. Market. “Customers can now put in business in 2016, with the balance invested by their orders at any time of day, drive up, Choice Properties REIT. The investment cycle up or walk up to our locker units includes construction projects for approximately and pick up their groceries. With a few 50 new stores and 150 renovations to existing clicks and a code at the lockers, you stores, increased e-commerce expansion, and IT have your shopping done in minutes.” infrastructure and supply chain projects. In A customer orders their groceries addition, Choice Properties REIT, expects to on the Fresh St. Market website, invest in the growth, development and quality of selects a time frame to pick up, a Fresh its retail real estate portfolio which includes the St. personal shopper secures the order construction of approximately 730,000 square feet of gross leasable area. in the Click & Collect locker, which can Loblaw remains Canada’s largest network of corpo - include anything from cereal, canned rate and independently owned retail stores, each goods to fresh produce and ice cream. employing between 20 and 300 employees. This invest - The customer is sent a text with a code ment is expected to create nearly 20,000 jobs through to their smartphone, advising the store staffing and construction. order is ready for pickup. The cus - “We continue to invest in our business in ways that tomer punches in the code at the lock - matter for the Canadian economy and the millions of er, the locker opens, and the customer Canadians who shop with us each week,” said Galen G. Weston, executive chairman and pres - collects their items. ident, Loblaw Companies Limited. “Our investment will create local jobs and bring nutrition and wellness solutions closer to home.”

8 WWW. WESTERNGROCER .COM WWW. WESTERNGROCER .COM 9 market update events post-show review calendar THE 2016 Next-Generation Sustainability Guidance June 1, 2016 Released for Seafood Industry Security EDITION OF The Conservation Alliance for Seafood Solutions released Canada Ottawa the first update since 2008 to a resource used by 80 per cent Ottawa Conference of the North American grocery and institutional foodservice markets. The updated Common Vision for Sustainable Seafood and Event Centre, Ottawa, ON is the first to address the next generation of issues affecting sustainable seafood including social issues like human rights www.securitycanadaexpo.com SIAL violations and labour exploitation and verifying sustainability by tracing products back through the supply chain. “A decade ago, responsible business leaders wanted guid - June 5-7, 2016 ance on environmental sustainability,” said Susanna Fuller, Dairy-Deli-Bake CANADA marine conservation coordinator for the Ecology Action Cen - tre and a member of the SeaChoice science team. “Today, Seminar & Expo they’re looking at how to deepen those conserva - AND tion commitments, address social issues, and George R. Brown Convention Center increase traceability.” Houston, TX, USA The Conservation Alliance also released a bank of online resources to complement the www.securitycanadaexpo.com Common Vision and support businesses imple - menting sustainable seafood commitments. The initial set includes resources on social SET issues and traceability, as well as real-world examples of sustainable seafood commitments. June 15, 2016 The Conservation Alliance expects to expand this resource bank over time. Security “Share a Coke” and Unlock the Soundtracks of Summer Canada West CANADA on Specially-Marked Coca-Cola Bottles River Rock Casino Resort, Richmond, BC www.securitycanadaexpo.com Coca-Cola is getting into the summer spirit with “Play a Coke”, a new twist on one of the company’s most successful programs of all time, “Share a Coke”. Unique to Canada, “Play a IN MONTREAL Coke” will swap the logos on over 60 million Coca-Cola, Diet Coke and Coca-Cola Zero bottles September 21, 2016 for over 185 unique, shareable moments, each linked to a Spotify playlist that brings that moment to life. Fans will be able to access specially-curated playlists for moments such as Security Back in Montreal for its 13th edition, the SIAL International “First Kiss”, “Road Trip” and “True North, Strong”, simply by downloading the Play a Coke app, Canada Atlantic pointing their smartphone at their Coca-Cola bottle or fountain cup and pressing play. Food Show reached record attendance! “Like an ice cold Coca-Cola, music finds a way to bring people together, regardless of who Casino New Brunswick, Moncton, NB we are, how old we are, where we live or where we come from,” says Michael Samoszewski, www.securitycanadaexpo.com A Record Edition products, equipment and services!” vice-president, sparkling business unit, Coca-Cola Ltd. “This summer, we are tapping into the That last assertion is confirmed by the universal love of music and inviting Canadians to ‘Share a Coke’ and the soundtracks to their That Shattered Expectations! 81 files submitted this year for the 9th edi - special moments.” tion of the SIAL Innovation contest, which Through the “Play a Coke” app, which was developed in Canada specifically for the Cana - October 16-20, 2016 With 928 exhibitors and brands from witnessed Essence Desserts’ Assorted dian market, fans will be able to digitally interact with their bottle of Coca-Cola like never SIAL 50 countries, exhibiting on more than Chocolates with Sorbet and Ice Cream Cen - before. Once a playlist is unlocked, users can play, pause and control song selection through 200,000 square feet, and some 17,300 ters, a Canadian product, taking home the their smartphone by twisting the bottle back and forth. The campaign will also include limit - Parc de Expositions de Paris-Nord professional visitors from more than 60 2016 Grand Prize. ed-edition releases of Cherry Coke and Vanilla Coke, the two Coca-Cola flavours requested Villepinte, Paris Nord Villepinte, France countries, this year’s SIAL Canada and SET The event kicked off with the official most often by Canadians. Canada has once again proven to be a opening — and with the United States as The excitement continues all summer long with a second release of “Play a Coke” launching www.sialparis.com success, both in terms of its offerings and the country of honour — where a number in early July, which will feature even more summer moments on bottles. The multi-faceted its visitors. According to Xavier Poncin, of Canadian and international dignitaries, campaign includes a number of additional consumer touch points, including experiential acti - executive director at SIAL Canada, the including Bruce A. Heyman (United States vations, online paid media, in-store marketing and social media engagement. October 17-18, 2016 2016 edition has proven that SIAL Canada Ambassador to Canada); Pierre Paradis is the not-to-be-missed meeting for retail, (Quebec Minister of Agriculture, Fisheries Grocery Innovations foodservice, and food processing, with and Food); Jean-Claude Poissant (Parlia - Safe Plant-Based Probiotics to Fight Bugs strong local representation, a unique inter - mentary Secretary of the Canadian Min - Without Drugs Canada national presence and a variety of innovations istry of Agriculture and Agri-Food); and Toronto Congress Centre, Toronto,ON developed by exhibitors of all kinds — which Richard Bergeron (Montreal City Hall For the first time ever, the same natural substance together makes up this unique event’s win - Executive Committee Member Responsi - that your body manufactures and deploys to fend off https://cfig.ca he 13th edition of the international ning formula. “If we want to look at the ble for the Downtown Strategy); as well as and kill pathogenic invaders has been replicated food & beverage tradeshow (SIAL highlights for this year, first off, there were many other international ministers such through a state of the art ecosystem found exclusively at the growing facilities of Sproutz.com Inc. TCanada) and the equipment and a record number of visitors, with 17,300 as Hungary’s Minister of Agriculture, Mr. in Brantford, Ontario and Innisfail, Alberta. The impossible task of seed sterilization, along with pro - September 17-18, 2016 technology section (SET Canada), which professionals from every agri-food sector Fazekas. The Networking Event of the viding a hygienic growing environment, has been perfected without compromising the integrity and took place from April 13th to 15th, at Mon - (retail, HRI and food processing), and from Agri-Food Industry, organized by the Agri- ‘life-giving’ probiotics in these little plants. “Our process provides an alkaline water-based bio-secu - CHFA East treal’s Palais des Congrès, just wrapped up all over Canada and the United States. Food Export Group on the show’s first day, rity force field, utilizing millivolts of power to maintain a hygienic growing and packaging environ - Metro Toronto Convention Centre, a historic edition. With its everything- This constitutes growth of 17 per cent was a triumph with 400 guests attending ment. What’s more, our delivery system is also the median the sprout’s microorganisms use to under-one-roof offerings, SIAL Canada and as compared to 2014. SIAL Canada has from all over Canada and the United materialize and feed the plant. Consuming dissolved oxygen as its food source, the sprout becomes South Building, Toronto, ON SET Canada have established themselves confirmed its unique position as a major States. It was an opportunity to hand out a one with this bio-security force field because the plant itself is comprises up to 90 per cent of this www.chfa.ca as the not-to-be-missed happening for the North American one-stop-shop trade number of prizes, including the SIAL Inno - watery solution,” says Robert Sinnamon, president of Living Foods. North American agri-food industry. show, offering equal parts innovative food vation’s grand prize.

10 WWW. WESTERNGROCER .COM WWW. WESTERNGROCER .COM 11 A Range of Exclusive, The LAB In its third edition, placed its focus on SIAL Canada at a Glance: Captivating Events the senses, as well as on culinary chem - istry. Yan Garzon, the corporate chef at This year, the show was host to no less Testek, took on the role of “Chief • A total surface area of more than than 25 conferences touching on pressing Chemist” at SIAL Canada. Over the 200,000 square feet — for the first topics. Added to that, more than 20 course of three days, he managed four time, the entire second floor has demonstration and discovery workshops CONGRATULATIONS discovery stations where everyone’s were made available to promote our arti - been reserved. senses were busy taking in new gastron - sans’ products and know-how. omy experiences and learning more TO THE 2016 SIAL INNOVATION about the latest practices in foodservice. • 928 exhibitors from nearly 50 countries SIAL FOOD HUB With “Food-Service Costing and Increas - Graduate Speed-Dating CONTEST’S 10 FINALISTS ing Profitability” as a topic, the first edi - • Growth of 21 per cent in terms of In partnership with AQFORTH, culinary tion of SIAL Food Hub was a success: 50- exhibitor-reserved space graduates up to tackle any culinary chal - odd foodservice professionals gathered to lenge came to SIAL Canada to showcase Congratulations to the discuss a major issue of the day. Over sev - their talents. Over a one-hour period, • 17,318 visitors from 60 countries eral hours, 11 guest experts put together a Grand Award winner! four participants were able to demon - variety of recommendations which, in a strate their know-how for potential few weeks, will be made available to par - • 17 per cent growth in terms of ASSORTED CHOCOLATES industry recruiters. ticipants via a “white paper”. number of visitors WITH SORBET AND ICE CREAM CE NTE RS BY ES SE NCE DES SE RTS OLIVE D’OR • More than 50 workshops and These ice - cream chocolates aren ’t The biggest international extra- just chocolates , and not simply frozen virgin olive oil contest in North conferences at the show, including delights , but a delicate marriage of America, attracted record num - for the first time anywhere in both of these sweet treats. Available bers with more than 100 partici - the world: SIAL Food Hub. in seven flavours. pating oils from 15 countries. The SIAL Canada is an integral part of the SIAL network, the leading global network of shows dedicated to the food industry, with eight shows (SIAL Paris, SIAL Canada Mon - treal, SIAL Canada Toronto, SIAL China, ExpoVinis Brasil, SIAL Middle East, SIAL M E S U R ACC L AB E LLI NG POUTI N E BITE S S MOKE D SALMON AN D InterFOOD Jakarta, and SIAL ASEAN Manila) VE RI FICATION SYSTE M BY ST H U B E RT CREAM CH E E S E CAKE BY B LE U M E R that bring together 14,000 exhibitors and Mesu rACC is a tool Frozen bites of cheese in 330,000 visitors from 200 countries. Estab - designed to check that a brown sa uce that are This cheesecake -st yle la belling ad heres to wra pped in a potato coating , smoked -salmon treat comes lished in 2001, SIAL Canada is the fruit of regulatory typographical they ’re sold in 3 3 5 - gra m in a plate that featu res 24 three agencies’ labour, all of whom are requirements. boxes which are ready to pre - cut individ ual slices . shareholders in the event: the ADAQ (Asso - be sha red any tim e. 12 best extra-virgin olive ciation des détaillants en alimentation du oils submitted by pro - Québec), the Agri-Food Export Group Que - ducers from around the bec-Canada, and Comexposium. world were selected to SIAL Canada is the only show with sup - CH IOS GARD E N S be named the Golden, DATE BITE S BY SALMON TARTARE Cheese by SIAL port from Agriculture and Agri-Food Cana - FRU IT J U ICE S BARD VALLEY BY G RIZZ LY Silver or Bronze Drops Was a huge success, benefit - da; the Ministère de l’Agriculture, des Each juice box is presented Availa ble in fou r gou rmet The prod uc t is very in their respective cate - ted from a unique 6,000-ft 2 Pêcheries et de l’Alimentation du Québec; with the n u m ber of fruits versions that play with taste prac tical , but is also rich in gories. The level of qual - space for its third edition, with and the Ontario Ministry of Agriculture, that were pres sed to ma ke a nd textu re , as well as a protein a nd low in calories . ity at this year’s contest its contents . dozens of cheeses from Que - Food and Rural Affairs. va riet y of coating options . increases each time, to the point that in bec, Ontario and outside the country 2016, the jury also selected four favourites made available for tasting throughout We’d like to thank to join the ranks of the best olive oils. the show, along with six highly-knowl - our partners: edgeable on-site artisans to share their LA CUISINE by SIAL passion. The workshops were a true suc - Canadian Packaging Magazine, ET VOI L À! CAM E LI NA H E RITAG E HAM TRIO BY S NACK FORMAT HAM Reinvented itself this year by offering up cess as the art of cheese-tasting attract - Le Must Magazine, L’Actualité alimentaire OI L BY OLI M EGA ARTU RO SÁNCH E Z BY ARTU RO SÁNCH E Z the high-tech, avant-garde kitchen that ed a number of visitors. magazine, Les Dépendances, Restaurants Cam elina oil has very This bellota ham trio is aged Ava ila ble in individ ual , every foodservice professional dreams of: With its new SOSIAL commitment, SIAL Canada,Testek high levels of fatt y acids , using d ifferent techniq ues ready-to-eat portions. one that’s ergonomic, cost-effective in Canada is proud to have taken on its social Instruments, La Tablée des Chefs, Mois - including omegas 3 , 6 a nd in a lim ited - edition box a nd 9. terms of energy consumption, and one responsibility with the new SoSIAL program son Montréal, Digital Retail which allows recipes to be knocked out as and its spokesperson, young chef Guillaume Conference (DTLQC), GS1 Canada, Supply quickly as is needed. Jérôme Ferrer was Cantin. This program aims to reduce food Chain Management also at the heart of that dream kitchen to wastage by redistributing nearly 1,000 por - Association (SCMA), Dairy Farmers talk about the importance of taste, and tions of surplus food and food products of Canada, Les Producteurs de lait du See you in Toronto on May 2 nd to 4 th, the ways in which the five core flavours from the show. SIAL Canada is also provid - Québec (PLQ), Gordon Food Service, 2017 for the 14 th edition of SIAL Canada can be married together. In this way, ing support to Moisson Montréal and La Doyon Cuisine, Tourisme Montréal, Asso - Jérôme was able to share a few culinary Tablée des Chefs by presenting the two ciation of Food Industries, an event by tips with the enthusiasts in attendance! organizations with a $15,000 cheque. Association des restaurateurs du Québec (ARQ), Government of Québec SIAL, a subsidiary of the Comexposium Group About SIAL Canada SIAL Canada and SET Canada is the only show to offer up a complete range of food-related products, all under one roof – and in so doing, simultaneously fulfil the needs of the retail, foodservice, and food processing sectors. It’s an ideal “one-stop shop” experience that’s one of a kind in North America. MANY THANKS TO To have a look at the photo highlights from each of these events and activities, visit sialcanada.com. OUR PARTNERS The next SIAL Canada and SET Canada trade show will be held from May 2nd to 4th, 2017, at Toronto’s Enercare Centre. sialcanada.com #SIALMTL16 12 WWW. WESTERNGROCER .COM

4:00 PM on our cover middle of an economic and demographic boom. On Sixty-four per cent of the prairie population lived on the world stage, the Great War was in full swing. the farm and 73 per cent of the region’s income was By Frank Yeo Canadians, despite rancor over issues such as derived from agriculture, but while the farmer was king conscription, found common ground under Prime he was a king whose coffers were empty. Grain prices Minister Borden’s Union government and were swept were falling below $3.00 a bushel and the problem of up in the heady enthusiasm of the war years. Under credit to farmers was one of which Winnipeg and the imperatives of wartime production, eastern food Western Grocer (W & WG) devoted much space. Things manufacturers retooled their factories and organized were to improve as the West diversified its economy S production more efficiently. They looked more and away from agriculture and prospects became better as more towards the West as a market for their goods. wheat prices and global commerce improved. manufacturers to the Western market. After the surge of consumer confidence and a R frenzy of public spending during the latter half of the ‘20s the world was plunged into economic collapse. The W & WG sought to help the food industry with A timely articles on the issues of the day. Efficiency was key to survival during this period of

E hard money policy. Overhead had to be shaved and while credit was a way of life for consumers, businesses AFTER A CENTURY could not be expected to shoulder unreasonable debt Y THE WESTERN

GROCER REMAINS DEVOTED TO THE

0 TASKS ORIGINALLY SET DOWN BY

0 JACKSON AND WILSON IN 1916:

1 “TO REMAIN A THOROUGHLY LIVE, ENTERPRISING AND FORCEFUL PAPER” G AND TO MAINTAIN “SYSTEMATIC

N CO-OPERATION

I BETWEEN SUBSCRIBER, ADVERTISER AND PAPER.” T A R

The West’s new B Over the last one hundred years the grocery industry has been food industry maga- zine, Winnipeg and Western Grocer, supported

E fundamentally transformed; although the principles of good the trade with market quotes, retail store service and customer first remains the same. efficiency reports and a campaign to introduce loans. Credit policy motor trucks to store delivery. was examined yet again and the magazine made L n 1916 the grocery industry in Western Canada manager editor Robert Wilson, alluded to the Unlike the previous decade, which had seen the recommendations which aimed to increase the was bursting with energy and enthusiasm, con - industry’s maturity in the opening editorial and sod turned on Manitoba’s grand new legislative likelihood of retail and wholesale survival during tough

E Ifident enough of its size and strength to have a commented on the important role a trade journal building and a public spirit filled with vigor and economic ti mes. These ranged from ne w methods journal devoted solely to its interests. can play in its further development. certainty, the ‘20s began during an economic for store layout and efficiency, new advertising When Western Grocer first began publishing in Jackson’s and Wilson’s remarks couldn’t have been recession and were anything but roaring. Not until techniques for in-store display to the cash versus

C 1916, the magazine’s publisher John L. Jackson and closer to the truth. In 1916 the West was in the 1925 did the economic tide change for the better. credit debate and the rise of large chain supermarkets. continued on page 20

14 WWW. WESTERNGROCER .COM WWW. WESTERNGROCER .COM 15 1 4/18/16 3:39 PM

Company Spotlight

By Melanie Franner Taking Stock: New Opportunities with Premium SKUs from Carlton Cards

arlton Cards Ltd., has long established itself as the No.1 greeting card company in Canada. Not one to rest on its laurels, the company has continued to develop and Cgrow. Its acquistion of the Papyrus brand and the Recycled Paper Greetings brand of cards is a testament to this commitment — and has opened up new sales opportuni - ties for grocers of all shapes and sizes. Partner Savvy “The grocery channel in Western Canada is our second-largest market, behind only the drug-store channel,” states Tammy Barrett, director marketing and trade development, Carlton Cards. “It’s a very important market for us and has continued to grow over the last five years.” Contributing to this growth, in part, is the increasing appeal of premium cards. These cards typically range in price from $5.95-$9.95 and offer beautifully crafted, trend forward, premium designs with handmade details and high end embellishments such as gems, charms embroidery and unique fabrics like faux leather and fur. “Acquiring the Papyrus and Recycled Paper Greetings brands opened up the ability for us to offer a multi-brand strategy to our retail partners,” says Barrett. “It brought the added advantage of supplementing the traditional greeting card department within a grocery store with a premium section. This attracts a different type of customer and can result in increased sales for the grocer. Our consumer insights show that customers place a high value on quality paper, intricate finishings and carefully crafted wording. The Papyrus brand excels in all of these noted qualities.” The type of person attracted to the premium greeting cards, adds Barrett, is typically a woman (70 per cent of all card purchases are made by women) with a university education, is more affluent with a bit more disposable income and is looking for something higher-end to mark that special occasion. “Some of our retail partners have seen a great deal of success in using a multi-brand strategy,” says Barrett. Capping Off Increased Sales According to Barrett, the breadth of premium greetings cards to be offered by a grocer will depend upon the store, the space available and the demographic of the neighbourhood. “At the minimum, we would recommend taking an end cap and putting a premium end cap on it, which is typically two spinners of product,” she says, adding that the company would tailor the specific mix of product to the store – based on research and past experience. “The process of getting the renovation into the store is relatively quick. We manage everything — from start to finish.” With some 250+ million greeting cards being exchanged in Canada each year, it’s easy to see how a greeting card section can be a worthy contributor to a grocery store’s bottom line. Supplementing that section with a range of higher-priced premium cards may not only increase that bottom line, it may attract a more affluent customer — and that can only prove to be more advantageous in the long run. ●

16 WWW. WESTERNGROCER .COM Company Spotlight

By Robin Brunet New Digs, Old Values Bosa Foods Celebrates its 60th Anniversary with a New Store Launch

he surest sign of success for a neighbourhood food retailer is when a move to anoth - er location generates newspaper headlines. That was the case last fall in Vancouver Twhen the Italian specialty grocer Bosa Foods, whose Victoria Drive store had been a perennial favourite of locals for the past 60 years, moved to Commercial Drive. Fortunately, it’s a temporary situation. Next summer, Bosa will return to the same Victoria address, but to a new ground-level 6,500 square foot store with 27 apartment rental units above. “We wanted to maintain our original presence as well as contribute to Vancouver’s affordable rental inventory,” explains A. Bosa & Co. Ltd. President Bruno Benedet Jr. Benedet adds that it would be an understatement to say the new facility — which will showcase the company’s 7,000-plus skus of Italian, Spanish, and other imports along with 17 in-house brands — will be a far cry from the days when Bosa founder Augusto Bosa developed a landmark business in only 2,500 square feet of tight aisles and uneven floors. “But the one thing that remains constant for us is change,” he reasons. “Since I assumed management of the business in 1993, we’ve grown from being strictly an Italian food importer catering to Italian immigrants to a broad range private label brand owner and importer of speciality products sourced from around the world – for every conceivable type of shopper.” The biggest focus for Bosa, however, is not so much a new venue as it is a fundamental shift into the realm of distribution — and it’s this realm that the president and his 135-member staff expect their future growth to flourish. “In the mid-1990s we decided to develop our own in-house brands, mainly to control the quality of what we sold and its distribution, and since then things have really taken off with terrific support from the retail communi ty,” he explains. The 17 brands include over 2,000 products, which 10 years ago obliged Benedet to build a 60,000 square foot distribution centre and flagship store (with a wall of over 70 different olive oils) in East Vancouver. “Then, last year, we opened a secondary 65,000 square foot distribution centre nearby,” he says. But while the future of Bosa lies in distribution, Benedet says it won’t be at the expense of retail — or the heritage his family has scrupulously developed over six decades. “It may sound old-fashioned considering our flagship store enjoys the most foot traffic by far, but it’s important for us to maintain our Victoria Drive roots,” he says. Just as important is the quality of imports Bosa brings into Canada. “We have a European office in Italy so that we can determine eating trends as they develop over there and be fresh and cutting edge with our offerings here,” Benedet says. Benedet pauses to contemplate his new facility; then he says by way of conclusion, “Augusto built Bosa on three values: customer service, quality, and affordability. These values will always remain. We will always be proudly Italian, and part of the neighbourhood.” ●

18 WWW. WESTERNGROCER .COM In September of 1939 Canada declared war against us one step closer to the present. cookies & crackers Germany and her allies. War, though a bitter pill to Food Store Manager was stripped from the title and By Carly Peters swallow was the malaise of the past decade. Thousands of masthead in the August 1977 issue with all reference Canadians rushed to join the services and the war effort to the previous name being fully deleted by the provided an insatiable appetite for goods, the result was following January. high employment and renewed prosperity for industry. The 1980s saw a new Western Grocer emerge. Gone The self service convenience of wide aisle super - were the black and white pages of old as the magazine markets with their massive array of products and all adopted a full colour presentation and began the sophisticated merchandising was born of the concentrating additionally on category analysis, changes initiated during the war years (1939 to 1945). reflecting the grocery industry’s own new focus on AFTER 100 YEARS W & WG spotlighted the changes and offered advice category management. The industry also began to SERVING THE in regular features to ease the industry throughout change in the West as cities such as Vancouver and INDUSTRY, TODAY’S the massive transition of the dynamic period. The Calgary began to exert more power. Slowly, but surely, WESTERN GROCER pages of W & WG began featuring the challenges of Winnipeg lost its pre-eminence as the head office the returning troops as they came home to start new centre for the major chains and wholesalers. This IS STILL AN food businesses. We examined the growth of was the beginning of a period of consolidation that INDUSTRY LEADER independent chain operators as well as the big would last throughout the 1990s and ultimately led WITH INSIGHTFUL brothers of the industry like Dominion Stores. to the centralization of buying and a major period COMMENTARY, The fifties was a period of consolidation for the of adjustment for suppliers and retailers alike. One massive changes that happened during the previous of these adjustments was that food brokers found INDUSTRY REPORTS, decade. W & WG highlighted new efficiency in the it necessary to undergo their own industry COMPANY PROFILES self-serve outlets as well as the new move towards consolidation with the result that today, the number AND HELPFUL sales enticements like coupons and loss leaders. of brokers has drastically declined. As the decade progressed so too did the magazine. During this time, the number of independents INFORMATION ON With the onset of Mercury Publications as new would decline as well, by over 10,000 nationally, or PRODUCTS AND owners, W & WG began to take shape as a more around 50 per cent, while corporate grocery stores MERCHANDISING. modern trade journal. A new layout that provided would increase by over 4,000 nationally, or 45 per easier access to the stories and information, more cent, a trend fully visible in the West. Indeed, one of the peculiarities of the industry in the West was the earlier emergence of large format stores, due to regional population growth and the consequent opportunity this provided for grocers to revamp when opening new stores. The consolidation throughout the 1990s prepared the backdrop to a new trend that would emerge with force in the 2000s: Channel blurring brought about by significant new competitors who eyed the grocery channel’s strong sales base with envy. The large discount mass merchandisers and wholesale clubs were formats that increasingly incorporated low-priced food, attracting a percentage The 1980s saw a new of the population that was the Western Grocer emerge. most price conscious. Gone were the black In this new context, and white pages of Western Grocer had to adapt old as the magazine adopted a full colour its editorial to focus more on presentation and helping grocers develop he cookie and cracker category players — from big name brands to preservatives, and made with only four began concentrating strategies to compete against hasn’t crumbled under the pressure imported items. But across the board ingredients. “Consumers are seeking more additionally on category these retail giants. Articles Tof balancing a clean ingredient list the category is trending towards clean information about the products they are analysis, reflecting the grocery industry’s on home meal replacement, while satisfying customers’ cravings. New ingredients that still offer that indulge nce consuming — even in more indulgent own new focus on new store designs and formats (think thinner) and flavours customers want in a cookie. categories like cookies. More and more category management. developing fresh offerings paired with reformulated recipes are “Trends within the cookie and cracker brands are coming out with better for you industry reports and an expanded scope through more began to appear with more regularity. ensuring customers can keep an eye on category include high end, more premium options within the cookie and cracker regional writers and representatives enabled us to After 100 years serving the industry, today’s Western their health but have that cookie too. offerings with a healthy component,” categories. Consumers want to understand greatly improve our service to the industry. Grocer is still an industry leader with insightful According to Nielsen, 52 weeks, ending explains Lisa Zdunich, sales and marketing how their products are made and where The name of the publication was formally changed commentary, industry reports, company profiles and January 9, 2016, the cookie category in manager, Canada, Walkers Shortbread Ltd, ingredients are coming from. in the September 1958 issue. The merging of helpful information on products and merchandising. It is general was up three per cent in sales adding Walkers Shortbread falls into each One way companies are keeping their Vancouver’s Foods Stores in Western Canada with the our hope that we may continue providing the dollar and and up two per cent in units in 2015. The of these categories by featuring traditional indulgence but in a more healthy manner Winnipeg and Western Grocer resulted in the new cents facts to grocers, producers and brokers on Western category is estimated at approximately shortbread that’s all natural and non GMO, is modifying (for the better) ingredients Western Grocer and Food Store Manager and brought Canada’s food industry for yet another century. ● $700 million and is comprises numerous free of artificial colours, flavourings, and in already established brands.

20 WWW. WESTERNGROCER .COM Courtesy of Shutterstock WWW. WESTERNGROCER .COM 21 Cookies and crackers are still an indulgence Merchandising Tips that consumers are enjoying. Serve it up The best way to convey the high quality of a product is to run sample programs, which is why we promote sam - pling activities in stores with trained staff able to explain to

the consumer the product, its fea - tures and all the added values and nutritional benefits in terms of ingredients used, all while having the oppor - tunity to taste the quality. - Frank DeMichino, COO, Italpasta Go Off Shelf Cookies, especially those like Walkers Short - Delicious bread, are impulsive. The best ways to display are off shelf, in other areas of the store if at all possible. The prod - Indulgent uct needs to be in front of the consumer so they can pick it up. Misura and Colossi biscuits, two of the most well-known Italian cookie At seasonal times of year, for gifting purposes, Gluten Free the same is true. Off shelf displays are best. brands brought to Canada by Italpasta, have always been made without Create a destination section within your store to GMOs or preservatives, but new for 2016, the high-quality biscuits will also attract consumers. be made without palm oil, which has come under scrutiny for its - Lisa Zdunich, sales and marketing manager, environmental impact in order for it to be produced. Canada, Walkers Shortbread Ltd. “Research shows increasing No Compromise Old School consumer attention to green issues. PPK displayers, To respond to this attention, Misura Now The World’s Finest Shortbread demos with bev - an d Colussi products are now made erages, and just without palm oil giving consumers a can be enjoyed by all! some good old- double benefit: a benefit for the The same pure-butter taste, aroma fashioned creative tie- ins on end aisles, environment to combat deforestation and texture, but without the gluten. wings, tables displays… and a benefit to the consumer, it’s not hard, you just because products without palm oil have to do it. Ethnic supermarkets across the conta in a lower percentage of country are doing a great job of it and honestly Also available : they are winning with this good old-fashioned saturated fatty acids and less saturated approach. - Anthony Morello, Aurora Importing fatty acids means better health,” explains both Frank DeMichino, COO, Clean Living Italpasta and Marco Ferrari, export Additionally, as part of manager, Colussi Group of Companies continuing efforts to in Italy, adding in response to the build our power Gluten Free Ginger & Lemon Shortbread Gluten Free Chocolate Chip Shortbread brands and the base, reformulation the brands will launch we’re working to maxi - new packaging design and some new mize impact in store by skus of tastes and formats. focusing on shelving Even mainstream brands under- mix, display, and strategic points of stand the importance of cleaning up Toronto: 1-800-263-7054 interruption. As category leaders, it’s important to Montreal: 1-800-363-2606 ensure that in-store the shelf is clean, easy to their ingredient lists — Pepperidge Calgary: 1-800-665-1298 shop, and draws attention to the brands con - Farm announced in July 2015 it would eliminate high fructose corn syrup Vancouver: 1-800-661-9655 sumers are looking at. from many of its products by the end of fiscal 2017, while The Kellogg www.treeoflife.ca - Mackenzie Davison, category general manager, Biscuit Canada, Mondelez Canada Company recently debuted Nutri-Grain Breakfast Biscuits made with whole grains and no artificial flavours, preservatives, or high fructose corn syrup. www.walkersshortbread.com

22 WWW. WESTERNGROCER .COM While the better-for-you trend has “Great programming continues to drive brand loyalty, empower small businesses that share the resulted in reformulations and new belief that inspired creativity starts with ingredients, its latest effect is the which is critical for in-store purchase conversion.” something simple. downsizing of some products — claiming “Great programming continues to drive thinner is better. continues to celebrate the foundation of brand loyalty, which is critical for in- Mondelez Canada, which produces its history — simple ingredients and store purchase conversion,” explains many of the country’s, leading cookie great flavour combinations that offer up Davison of Mondelez Canada, adding Ritz brands, including Chips Ahoy!, belVita a blank canvas for foodies — with award- and Premium Plus — similar to their Breakfast Biscuits, Peek Freans, and winning flavours (Triscuit Balsamic and cookie brands — are names people trust OREO, recently launched OREO Thins in Basil variety just won a Best New Product and look to in-store. both Original and Golden flavours for Award, as voted by consumers) and Whether it’s a trusted brand or an those customers looking for a more commitment to food innovation. The indulgent import, crackers and cookies delicate and crisp option to satisfy that brand recently flash funded over 50 food are keeping snackers happy with their “need-something-sweet moment”. makers’ campaigns on Indiegogo to balance of health and satisfaction. ● “OREO Thins were launched in the U.S. last year as a way of bringing new users into the category — consumers who have grown up and are looking for a more grown up taste,” explains Mackenzie Davison, category general manager, biscuit Canada, for Mondelez Canada, adding the thin, crisp and delicate taste and texture of OREO Thins were specially designed for fans who love the taste of OREO but are looking for a lighter-textured more delicate option. The company continues to reinvigorate the brand with innovative flavours, such as Red Velvet and S’mores, and now with OREO Thins, in order to offer new formats

and snacking experiences. “We are always challenging ourselves and RELIABLE FOOD our business partners to be inspired to introduce new flavours and formats,” PROCESSING EQUIPMENT states Anthony Morello of Aurora Importing www.birosaw.com which imports traditional Italian-style cookies such as Allessia Cantuccini, Aurora Savioardi, Aurora Amaretti, Aurora Puff Pastry Cookies, and Reko Pizzelle Cookies; the gluten-free, yet indulgent, Le Veneziane cookies, and Loacker, a global iconic brand that is experiencing tremendous growth in Canada. Md. B300M “Loacker is sold in 110 countries and 12” Manual Feed Slicer Md. B350Comfort most of the growth in Canada for this 13 3/4” Semi-Automatic Single-Speed Slicer iconic brand comes from the immigrants coming to Canada who grew up with it and there is an immediate recognition and attachment when they see it,” he says. “Being able to share the story of this brand’s heritage, the consistency, quality and brand recognition among old Md. B350A and new Canadians has been the winning 13 3/4” Semi-Automatic Md. B350M Multi-Speed Slicer recipe for growth in this indulgent sector 13 3/4” Manual Feed Slicer of the cookie and biscuit category.” %,520DQXIDFWXULQJ&RPSDQ\ Take a Crack at it 0DUEOHKHDG2+86$ )D[ For over 100 years, Triscuit has been ZZZELURVDZFRP5% the beloved cracker trusted for starting with three simple ingredients. Triscuit

24 WWW. WESTERNGROCER .COM WWW. WESTERNGROCER .COM 25 post-show review Grocery & Specialty Food West Announces the Top 10 Most Innovative Products

A record-number of the grocery The Top 10 Most Innovative products were announced from the annual Grocery & Specialty Food West. Each year the show highlights industry gathered at the annual some of the most innovative new products, featuring everything from crazy new flavour combinations, to new labels and packaging. exhibition out West in April The show took place from April 4-5, 2016 at the Vancouver Con - vention Centre East, and brought together more than 300 booths and over 160 exhibitors, on the 65,000-sq.-ft. trade floor. Expert judges in food and media handpicked 10 products from the New Product showcase based on uniqueness, buzz and innovation. Grocer y & Top 10 Most Innovative Products (no particular order): Specialty Food West Almond Milk Puddings (Dark Chocolate, Dulce de Leche, Jams (Sour Cherry, Rose Hip, & Fig), Bosa Foods Takes a Bite Out Vanilla Bean), Lakeview Farms of Vancouver

Creamed Raw Prairie Honey, Wendell Estate Honey Oasis SmoOthies, A. Lassonde

sessions. Speakers included leading retail expert Ready to Eat Quinoa (Mango & Jalapeno, Artichoke Blackberry Ginger Ale (Naturally Flavoured), Harold Lloyd, leading retail; Tom Furphy, CEO of Seattle- & Roasted Peppers, Spicy Jalapeno & Roasted Peppers, Coca Cola based Consumer Equity Partner; Kevin Coupe, Author and Basil, Pesto), Tree of Life and “Content Guy” for MorningNewsBeat.com; Meghan Dear, & Ashley Good of Localize; Ga ry Sands, VP of Public Policy at CFIG; Robert Graybill of FMS; Chris Yli-Luoma of @Freshguru; and Frank Yeo, Editor of Western Grocer magazine. ● ver two full days, Canada’s top retailers and produc - ers converged in Vancouver for the only grocery Oexhibition in Western Canada. On April 4 and 5, Crim City Soda, DD Beverage Co. Tortilla Bowls, General Mills Grocery & Specialty Food West (GSFW) brought together Save the date for next year’s show: over 3,000 key stakeholders from across Canada to discuss innovation, best practices, and industry insights for the March 20 & 21, 2017 at the thriving $100-billion annual industry, while showcasing Vancouver Convention Centre. the latest consumer products and grocery trends for 2016. www.GSFShow.com This year’s Grocery & Specialty Food West featured a fantastic lineup of informative workshops and speaker Don’t miss the Toronto show! sessions both in the morning conferences and trade show October 17 & 18, 2016!

GroceryInnovations.com SKYR Icelandic Style Yogurt, Fish Fillets, Cold Fish Seafood Company Dairy Farmers of Canada (Lekker Foods) 26 WWW. WESTERNGROCER .COM WWW. WESTERNGROCER .COM 27 yogurt

By Robin Brunet

NEW! LARGE FORMAT POUCHES

Help your consumers experience the convenience with innovative GOODNESS SEALED™ packaging. or a food that is overwhelming - ly associated with health, Also available in IÖGO Greek, Fyogurt is one of the more versa - tile and resilient categories out there. IÖGO Probio and IÖGO Original. Danone Inc. external communications manager Natacha Gouveia notes that the popular but pricier Greek yogurt segment led to consumers buying less quantity in 2014, thus slowing yogurt growth overall. “But since July of 2015 yogurt is now growing again, thanks to health and snacking trends having a positive impact on consumer choices.” Euromonitor International notes that yogurt and sour milk products increased by four per cent in Canadian retail current value terms in 2015, to reach $2.8 billion, and whereas Greek was the big trend three years ago, the fastest growing product today is kefir and ryazhenka (which are technically yogurts), posting a five per cent growth in retail volume terms. Simon Small, marketing vice-president for Ultima Foods (whose Olympic and iOGO brands are the top and second-most fastest growing yogurts in Canada, with a 14.3 and 13.6 growth in the 52 weeks ending in January of this year), says even though the category “is off the boil sales-wise compared to the double-digit growth it enjoyed for a solid decade, the No.1 usage of yogurt today is snacking — and this has enormous upscale potential.” “Also, 50 per cent of all Canadians still don’t consider yogurt a breakfast item; this too can be exploited. And yogurt drinks for kids have enormous growth prospects,” Small adds. Moreover, Small points out that achieving growth is easy, in theory: “If we can encourage light Discover all of our easy recipes at iogorecipes.ca yogurt consumers to eat just 100 grams more per month, the result is a 10 per cent category gain.”

Courtesy of Shutterstock WWW. WESTERNGROCER .COM 29 Product Sidebar Gouveia offers another intriguing fact about con- Courtesy of Shutterstock sumption that could be exploited to the advantage of yogurt manufacturers and retailers. “A recent survey lead One-two Punch by Léger and Activia revealed that 77 per cent of Canadian Goat Milk Kefir from Happy Days Dairies Ltd. combines the women consider food containing probiotics to have health benefits of probiotics with the nutritious impact of goat milk. Donat Koller, founder stresses that this yogurt beneficial effects on health if consumed regularly,” she product be placed in the health or natural food aisles “in says. “However, only 35 per cent of them regularly order to promote the incredible benefits of this beverage.” consume food that contains probiotics.” Small’s message to retailers: “You have to fundamentally Two of a Kind better merchandise yogurt as an expandable category.” A good example of a retailer well aware of yogurt’s Activia Drink from Danone Inc. is the same great yogurt product in beverage form that provides one billion BL Regu - expandability is Stong’s Market of Vancouver. Assistant laris bacteria, a probiotic culture exclusive to Activia, per Store Manager Dom Hetti says his customers are “going serving. Natacha Gouveia, external communications manager more for healthy options like low and low fat, and says, “Make sure that both the regular and the drinkable for - we do everything from cross-merchandise to solution- and mat are displayed as one cohesive unit in the dairy section, to appeal to the same consumers as regular Activia while pro - occasion-based merchandising strategies. We bundle for viding them with a broader range of flavours and textures.” snacking occasions, although with yogurt we bring products to the refrigerated aisles rather than the other Size Matters way around, of course.” As for the future of this category, Happy Days Dairies The new larger pouch format for Ultima Foods’ iOGO makes for a more substantial presence in home refrigerators and fits Ltd. founder Donat Koller believes consumers are slowly easily into the door wells. Simon Small, marketing vice-presi - becoming more appreciative of yogurt in its purer forms. dent suggests merchandising the pouches “in the produce “They’re starting to realize that the ideal yogurt should section to give shoppers the clear idea that this product is only have two ingredients: milk and bacterial culture, and ideal for blending with fruit.” none of the additives and huge amounts of sugar you see in big brand products,” he says. Snack Appeal Frederique Delagrave, yogurt marketing director for iOGO Nano for children is a real fruit puree and yogurt mix in a General Mills, agrees. “Plain is growing, and consumers are convenient pouch with re-sealable cap. Simon Small, marketing using it as a canvas: blending it with fruit, using it in vice-president says although Nano’s merchandising potential is cooking, and as a substitute for sour cream and confined to the refrigerator aisles, “plenty of advertising will mayonnaise,” she says. “Savoury and even salty yogurts draw attention to the fact that this is a kids’ snack.” are starting to become noticed, although it’ll The fact that yogurt Maximum Exposure take a while for those Yoplait Minigo is the only true yogurt pouch offered in an types of products to can take on so on-the-go format that has the nutrients needed for childrens’ catch on.” They are the grocery products that made the biggest impact Also strongly in evidence is the desire for growth and development. Frederique Delagrave, yogurt mar - To which Hetti adds, many forms – from convenience, what Von Albrecht described keting director says that due to the small size of the pouches, in 2015. On April 12th Retail Council of Canada (RCC) “The market is starting as “more time at home and quality food to “they require good visibility on store shelves, with beveled drinkable to frozen enjoy quickly.” to see Icelandic yogurt announced the finalists for the 23rd annual Canadian Grand facing and plenty of pouches per shelf, because shoppers will To become a finalist, a product must multi-buy this item.” and products from the – bodes well for Prix New Product Awards. score of at least 70 per cent in judging. This Middle East — which is an year, 93 products reached that mark. To exciting development.” long- as well as The award program celebrates new prod - today’s demanding grocery shoppers.” view the complete list of finalists, visit: ucts across food and non-food categories, The expert panel judging the awards www.RCCGrandPrix.ca. All In the Family The fact that yogurt Oikos Creation is a new line of gourmet Greek Yogurt from short-term growth. as selected by a 37-member jury. Winners comprises consumers, food journalists, Along with the food and non-food can take on so many Danone inspired by the delicate flavours of banana, lemon, will be announced June 1, 2016 at the packaging designers and marketing execu- category winners, the Canadian Grand Prix raspberry, chocolate and coconut. Natasha Gouveia, external forms — from drinkable Toronto Congress Centre as part of STORE tives. Evaluations were conducted in Febru - will hand out five special awards — the communications manager says it’s important with new to frozen — bodes well for long- as well as short-term 2016, Canada’s largest and most important ary and March, both in homes and in the All-Canadian Award, Innovation and Origi - retail conference. test kitchen at the Institut de tourisme et nality Award, Healthy Innovation Award, Danone products to complement the shopping experience, growth. Euromonitor believes consumers’ perpetual therefore Oikos Creation should be displayed with the com - Like the new products they highlight, the d’hôtellerie du Québec in Montreal. Each Packaging Award, and Consumer Accep - obsession with health will cause the category to increase pany’s other Greek items to offer “more variety in terms of Canadian Grand Prix is new and improved. entry was graded on presentation and pack - tance Award (highest score from Nielsen’s texture and flavour.” by a compound annual growth rate of four per cent, to This year, the categories have been updat - aging, product attributes, innovation and Homescan program). reach $3.4 billion in 2020; and the growth rate of sour ed to better represent how retailers mer - originality overall value to the consumer. Finalists and winners can use the Canadian chandise and market their products. Final - By heralding the new products that are Grand Prix logo on their packaging for two milk products such as kefir will surpass that of traditional ists were selected under separate con - creating the most buzz on supermarket years. RCC also supports the awards with Focus on the Greek yogurt, at a CAGR of five per cent. sumer packaged goods and private label shelves, the Canadian Grand Prix Awards extensive consumer and trade marketing.. Liberte Greek Muesli is the perfect mix of cereals, crunchy As for yogurt demand turning from sweet to salty, categories. program is also pointing the way to the RCC’s Grocery Division represents Cana - nuts and juicy fruit, while Liberte’s Kefir line is made from a Delagrave is not the only person to foresee this possibility “Individually, each of this year’s finalists future of the grocery sector in Canada. da’s largest grocery retailers, encompass - pure and short ingredient list with two billion bacteria per sets a new benchmark for delivering excel- Jury chair and celebrated chef Marcus Von ing over 90 per cent of all grocery sales. It happening further down the road. Sterling-Rice Group serving. Frederique Delagrave, yogurt marketing director says lence in product development, marketing Albrecht notes, for example, the on-trend is a source of information, advice and the former item “should be merchandised with our other recently acknowledged a growing excitement in culinary and distribution,” says Diane J. Brisebois, move among the finalists to products with expertise on all matters affecting food Greek products,” while the Kefir “can be cross-merchandised circles for the thick, salted Middle Eastern yogurt known as president and CEO of RCC. “And taken a “cleaner ingredient list” — reflecting a retail, including and recall, with our Greek line during promotions.” Labneh; it suggests this could be the next breakout trend, together, they demonstrate quite brilliantly hunger for more natural formulations. “We labelling, nutrition, health and wellness, how adept the industry is in pinpointing also saw more products that were regional product packaging, supply chain issues and giving retailers a host of new merchandising options. ● and satisfying the wants and desires of with local ingredients.” environmental stewardship.

30 WWW. WESTERNGROCER .COM WWW. WESTERNGROCER .COM 31 The Canadian Grand Prix New Product Awards™ recognize food, non-food and private label categories, 93 finalists in all from dairy to personal care. Finalists Food

A. Lassonde Inc. A. Lassonde Inc. Agropur Dairy Cooperative Flamingo nuggets Oasis 70 Calories Oasis NutriSolution OKA L’Artisan Smoke is proud to be finalist at the

Canada Bread Company Ltd. Canada Bread Company Ltd. Canada Pure Cavendish Farms Clover Leaf Seafoods Harvest Grain with Apple Homestyle Louis Francois Marcotte Canada Pure Sparkling Water Beverage FlavourCrisp Toppers

Coca-Cola Ltd. ConAgra Foods Canada Inc. ConAgra Foods Canada Inc. Dare Foods Ltd. Dare Foods Ltd. Dasani Sparkling Marie Callender’s Orville Redenbacher’s® Popcorn Chips Breton Artisanal Whippet

Fruit d’Or inc. Dare Foods Ltd. Direct Plus Food Group Emmi Canada Finica Food Specialties Ltd. Patience™ Fruit & Co Organic, Bear Paws Dipped McSweeney’s Jerky Emmi Fondoü All-In-One Zerto Smoked Fresh Mozzarella dried cranberries

* Granny’s Poultry Farmers Gay Lea Foods Gay Lea Foods Cooperative Hain-Celestial Canada Gardein Protein International Co-operatives Ltd. Co-operatives Ltd. Slow Cooker Seasoned Boneless Yves Veggie Cuisine Kale & Root Vegetable * Used under licence. Gardein Nordica Smooth Cottage Cheese Ivanhoe Nothing But Cheese Turkey Roast Patties 12x97g (1.16kg)

WWW. WESTERNGROCER .COM 33

Industrie Gastronomique Innerseasonings Hain-Celestial Canada Happy Planet Foods Happy Planet Foods Cascajares International Inc. Europe’s Best® Greens and Grains™ Happy Planet Nut Smoothies Happy Planet Grab & Go Fresh Soups Turkey drumstick fully cooked Tunnel Bar-B-Q Sauces 0 calories and delicious, in one stir. Lantic or Rogers Stevia is the perfect sweetener for your coffee, tea and beverages. L’Ancêtre Cheese Factory Lantic Inc. Maple Lodge Farms It also tastes great sprinkled on fruit, cereal Le Boucané Bio, L’Ancêtre Organic Double Laiterie Chalifoux Lantic Stevia Individual Envelopes Maple Lodge Farms Naturally From the Mars Canada Inc. and all of your favourite treats. Applewood Smoked Cheddar Riviera petit pot set-style yogourt - Natural & Zero Calories Farm Hickory Smoked Chicken Bacon M&M’S MINIS® Holiday 4-Pack

Naturally Homegrown Olymel Foods Ltd. Ocean Brands Flamingo - Super Crunchy and Gluten Parmalat Canada Prairie Harvest Canada Ltd. Hardbite Chips Ocean’s Snackit Dips Free Chicken Nuggets XOXO Astro ® Athentikos Greek Yogourt Prairie Harvest Organic Coconut Blend Pasta

Single Cup Coffee Single Cup Coffee Smucker Foods of Canada Corp. Skinnygirl® Cocktail-Inspired Torani® Naturally Flavoured Robin Hood Quick Bread Gluten St-Hubert Weston Bakeries Limited Single Serve Tea Cups Single Serve Coffee Cups Free Banana Poutine Bites Country Harvest Apple Bread Finalists Non-Food

Carlton Cards Kruger Products L.P Nestlé Purina Nestlé Purina S.C. Johnson and Son, Limited Party Poppers SpongeTowels Ultra Strong paper towel DentaLife Chews Tidy Cats LightWeight Litter OFF! Familycare Bite and Itch Relief Pen

S.C. Johnson and Son, Limited Smucker Foods of S.C. Johnson and Son, Limited Ziploc® brand Freezer Bags Canada Corp. Unilever Canada Glade Large Jar Candle with Easy Open Tabs Milk Bone Dog Treats Dove Dry Spray

34 WWW. WESTERNGROCER .COM WWW. WESTERNGROCER .COM 35 Finalists Private Label

FOOD PRODUCTS Sobeys Inc. - Sensations by Compliments Extra Virgin Olive Oil - Jamie Oliver by Compliments - Sensations by Compliments Butter & Cheese Puff Pastry Biscuits Canadian Tire Retail It takes a lot to be in such - FRANK Classic Medium Roast Coffee K-Cup ® - FRANK Chips Walmart Canada - FRANK Milk Chocolate-Covered Almonds - Great Value Better for you Entrée - Our Finest Ethnic Entrées - Our Finest Thick Cut Chips Federated Co-Operatives Limited - Our Finest Soft Baked Cookies great Canadian company. - Co-op Gold Aioli - Co-op Gold Whisky Caramel Sauce - Co-op Gold PURE Wagyu Beef Burger - Co-op Gold PURE Dark Chocolate - Co-op Gold PURE Granola NON-FOOD PRODUCTS

Longo’s - Indulgent Chocolate Mousse Cups Canadian Tire Retail - Big Boss Insta Mop - FRANK Shiwala Metro Brands, g.p. - Canvas Megan Table Lamp - Irresistibles- Life Smart Smoothie - Canvas Henrik Chair - Irresistibles- Olive oil for dipping - Canvas Quinn Floor Lamp - Irresistibles- Sauce- Marinade - Canvas 16 pc Wild Rose Porcelain Dinnerware Set - Irresistibles- Dry Sausage - Irresistibles- Avalanche ice cream Mondou - Irresistibles- Brownie in the centre - O’select Dog Snacks - Irresistibles Artisan- Deep dish pie, 750 g. - Vetdiet Pill Covers - Irresistibles- Les hors-d’oeuvres asparagus - O’select Washable Training Pads - Irresistibles- Les hors d’oeuvres - Crab Cake - Vetdiet Treats - Tender delights - Irresistibles- La pizza - Irresistibles- Potato Gratin Walmart Canada - Irresistibles – Old Fashioned Potato Chips - Pure Balance Grain-Free Formula Dog Food - Irresistibles – Cookies

Not just anyone makes it to the table. It takes a lot of focus to produce a great Canadian product, and we’re honoured to be nominated as a nalist for Retail Council of Canada’s Canadian Grand Prix New Product Awards. Just as honoured as having a place on your shelves.

Premium Jerky & Meat Snacks www.mcsweeneys.ca

WWW. WESTERNGROCER .COM 37 store design: refrigeration

WITH ENERGY By Carolyn Camilleri

PRICES ON THE RISE It’s expensive to run a grocery store. You know that. And of all the expenses you are faced with every day, energy for refrigeration is one of the biggest. AND GREENHOUSE Energy Star research indicates that grocery stores are the most electricity-intensive type GAS LEVELS A of commercial buildings and use an average of 50 kilowatt-hours (kWh) of electricity, plus 50 cubic feet of natural gas, per square foot (ft 2), every year, generating an annual average CLEAR CONCERN, cost of more than $4 per ft 2. Next to labour, energy expenses represent the most significant portion of your annual operating budget, says Energy Star. IMPROVING YOUR Originating in the U.S., Energy Star has become the international standard for energy- efficient products and has been fully adopted and backed by the Canadian government. It STORE’S ENERGY has expanded far beyond consumer-product labelling into a series of commercial standards EFFICIENCY ISN’T and programs, including for grocery stores. According to the report, “How will the ENERGY STAR® Benefit my Supermarket,” Energy REALLY AN OPTION Star-certified supermarkets consistently use 35 per cent less energy than their peers. The report further states that every dollar in energy savings is equivalent to $59 in increased ANYMORE. sales. While that is a U.S.-dollar estimate, there is no doubt any cost reduction is beneficial.

Courtesy of Shutterstock WWW. WESTERNGROCER .COM 39 Product Showcase Food-safe Cooling

In the deli, handling hot foods safely and controlling waste is a daily issue. Properly handled, yesterday’s roast chick - ens can be today’s chicken salad, as long as those chickens have been properly cooled. Traulsen Blast Chillers, available through Hobart Canada, make cooling hot foods to safe temperatures easy and energy efficient. Hot and Cold, But saving money is only one benefit. materials and webinars, as well as tips to Side by Side Being more energy efficient demonstrates reduce energy use, are available on the environmental leadership and supports NRCan website. Southern CaseArts merchandisers sustainability initiatives, something your To find out your store’s Energy Star from ADN Refrigeration allow for staff and customers expect these days. score, you need to first gather details, such optimal visibility and seamless integration of hot and cold prod - Help is out there. Federal programs and as floor area, number of cash registers and tools to assist with energy efficiency are computers, number of main-shift workers, available and may be effective for your length of refrigerated/frozen-food display operation. For new store builds or major cases, and postal code to retrieve weather renovations, for example, CAN-QUEST is new data. For the most accurate measurement, software available for free from Natural energy billing for 12 consecutive months expect more. Resources Canada (NRCan) for modelling can also be included. building energy use and can be used to Once you are in the Portfolio Manager When you invest in a refrigeration system, you should demonstrate performance-path compliance system, you can monitor your progress and ucts within your deli line up. Each expect sound guidance, custom solutions, superior with the National Energy Code of Canada for work towards improving energy efficiency. of their merchandisers has com - equipment and unparalleled customer service. Buildings. Based on eQUEST 3.62, a popular Keeping a handle on it requires inputting plementary refrigerated counter - With Kysor/Warren, your expectations are reality. By American tool, CAN-QUEST includes such new energy data regularly, reviewing data for parts, which allows for an uninter - working closely with you, Kysor/Warren gets to know rupted, efficient display. features as Canadian weather data, support accuracy, and monitoring trend reports. Most your business, engineering refrigeration systems for metric and imperial measurements, and importantly, it registers the effectiveness of A New View that help you achieve your goals for lowering cost of English and French interfaces. improvements, for example, from procedure OWNERSHIPÒANDÒIMPROVINGÒPROµTABILITYÒ+YSOR7ARRENÒ Energy Star Portfolio Manager is another changes and equipment upgrades. on Bakery HFC-free and standard refrigeration systems give you tool available through NRCan and serves to Of course, equipment upgrades are OPTIONSÒTOÒREDUCEÒMAINTENANCEÒCOSTS ÒIMPROVEÒENERGYÒEFµCIENCY Ò establish baselines and set energy goals. It expensive, with the payoff coming from Master-Bilt bakery and deli maintain product integrity and much more. is the only standard national platform for energy savings over time — provided you display cases energy benchmarking in Canada and is pay attention to the equipment you buy. from ADN Expect more with Kysor/Warren. already in use for thousands of commercial ENERGY STAR® is the mark of high- Refrigeration and institutional buildings across the efficiency products in Canada and means allow you to display and country. Now, with the release in winter that the products have been tested and store food in 2015 of Energy Star scores for benchmarking certified to meet strict technical speci- open contain - the retail food industry, grocery stores can fications. NRCan says Energy Star-certified ers, reducing rank their energy performance against products are typically in the top 15 to 30 packaging costs and pro - similar competitors. per cent of their class. A level up is ENERGY viding quicker An Energy Star score is an energy- STAR Most Efficient, an annual designation service. Fea - performance assessment of a property, awarded to the best of the best. tures include front glass tilts out taking into account climate and business For commercial refrigeration equipment, for easy cleaning and loading, stainless steel top and sides, and activities. Participating in the Energy Star a key feature to be cognizant of relates to lighted, adjustable, epoxy-coated Benchmarking program is free and training manufacturing. NRCan says commercial and wire shelves. www.kysorwarren.com

40 WWW. WESTERNGROCER .COM a hefty price tag. While rebate and produce department incentive programs for grocery retailers By Carly Peters are available provincially, Phil Beauvais, market manager at Hobart, describes them as “pretty convoluted.” “It really is a challenge to get to a program that may apply specifically for grocers,” says Beauvais. That said, Beauvais points to provincial programs available through utility providers such as BC Hydro, Fortis BC, Sask Energy, and Manitoba Hydro, and notes that the various programs can change. “Anytime [grocers] are looking for programs, they’re probably best off to Photo Credit: Arthouse Design Denver contact their utility provider directly to see if there is a new program in place,” he says. institutional buildings that have refrigerants or use natural refrigerants The next steps are to find out what the refrigeration systems are a primary like ammonia, which radically reduces requirements are to qualify for rebates, source of greenhouse gas emissions, greenhouse gas emissions due to followed by discussions with equipment partly because of higher energy synthetic refrigerant leaks. suppliers to get the needed docu- consumption but also because of their NRCan says, “CoolSolution® demons- mentation to claim a rebate. use of synthetic refrigerants. tration projects showed that it is possible With conscientious equipment up- Federally approved CanmetENERGY, to reduce energy consumption by almost grades and careful procedures, energy a Quebec-based organization that designs 50 per cent in arenas and curling rinks savings will come. In the meantime, your and implements clean energy solutions, and by 25 per cent in supermarkets, as efforts will win staff and customer recommends the “CoolSolution® ” ap- well as reduce synthetic refrigerant leaks approval, as well as your peace of mind proach. CoolSolution® products use only by 75 per cent.” knowing you are doing the right thing a very small charge of synthetic Equipment of that calibre often carries for the planet. ●

etween January 2015 and 2016, Canadian food prices rose four per cent, according to Statistics Canada’s consumer price index. Fresh fruit and vegeta - Bbles showed some of the biggest increases, shooting up 12.9 and 18.2 per cent respectively. According to an April 2016 Angus Reid Institute survey on rising food costs, 42 per cent of respondents stated they are reducing their vegetable and fruit purchases because of cost. But it doesn’t have to be this way. Grocers hold the key to helping customers get their greens — even if it’s not necessarily the ones they had on their list — through a knowledgeable produce staff. “The reality is there is affordable produce. It’s just lack of food skills that deters people,” explains Ron Lemaire, president of the Canadian Produce Marketing Association. This is why knowledge is the key to a successful produce department. Along with the produce manager, Lemaire states that staff need to be fully equipped to answer questions about produce, how to prepare it, and alternatives if that item isn’t available or affordable. “If someone comes in looking for cauliflower, but you don’t have it or the price is too high, staff should be able to give them an alternative suggestion: ’why don’t you try broccoli instead?’ and here’s how to prepare it in different ways”.

42 WWW. WESTERNGROCER .COM Courtesy of Shutterstock WWW. WESTERNGROCER .COM 43 He adds if a store knows they are going to be short on an item make sure you are equipped to set up displays that will satisfy customers’ needs with a different product. Retailers can take it Discovery Organ - ics notes that one step further by creating a meal solution with that product retailers need to — add a salad dressing, or meat suggestion so customers can make consumers better understand how to use the item, aware of how cli - which also increases total basket sales. mate changes and economics can raise pro - Meeting expectations duce prices – not Produce managers and staff also the store or the need to have meetings before shifts to producers. discuss what’s happening in the world T of produce that will affect their department for the day — whether it’s a drought in California that will raise the price of strawberries or a declining examples such as warmer weather bringing some crops on very Canadian dollar that will increase other early. “Produce managers need to get the message across that’s pointing to stores such as Whole Foods Ron Lemaire, president, Canadian Produce imported produce prices. it’s things like climate changes and economics that force those and Choices Markets as examples of stores Marketing Association “Consumers typically do not follow the prices, not the store or the producers.” that convey that message well through in- logistic chain of where their food comes When it comes to organic produce, it’s again the produce store signage and consumer information. from so they may not understand why a certain piece of produce’s What better way to get customers to try price is going through the roof,” explains Damien Bryan, general something organic or a new vegetable than manager for Discovery Organics, an independently-owned Canadian to actually taste it? Lemaire says never distributor for Certified Organic and Fair Trade produce. He points underestimate the power of sampling, to a recent earthquake in Ecuador, where a good portion of especially if customer’s “favourites” are not Canada’s bananas come from, as an example of an event that may as readily available or out of budget reach. effect a produce’s price. Also consider your store’s demographic “The bananas may not have been disturbed, but the ports and when selecting produce — your store may infrastructure to ship out those bananas may have been, which have more seniors so they don’t want volume, in turn may mean a shortage,” he states, citing additional whereas a store that caters more to families requires more bulk. “It’s makes the produce section much more personal,” he states. Since Western Canada is so culturally diversified the produce department is also manager and staff that need to impart their knowledge to the having to become that way. Lemaire states customer so they understand the price variance from traditional. the “choy” family — like bok choy and su “When a retailer gets the message across about benefits of choy — are becoming more prominent organic and Fair Trade, customers are more likely to spend that thanks to the Asian community, while extra few dollars for that organic produce product,” says Bryan, Middle Eastern influences can be felt with

the rise of zucchini and squash. Okra and eggplant are two other examples of once culture-specific produce items that are being picked up by the mainstream consumer. This ability to source a wide range of Join the STRIDE gum relaunch that items has created an interesting problem for retailers though. will blow your shoppers’ minds: “We’ve done such a good job at global • Electrifying NEW LOOK (Vertical Orientation Pack) designed sourcing people expect all these produce to stand out and help drive category engagement at shelf items year round and at a certain price they • Improved SHELF PRODUCTIVITY within existing footprint are used to. We’ve created expectations,” • NEW dual-layered product with CRUNCH REACTORS states Lemaire, adding consumers “expect” to pay $5 for a speciality coffee but Contact your Mondelēz Canada representative at 1-855-219-6672. will think twice about a $5 cauliflower — a mindset that needs to change. With the help of produce managers and staff, consumers can better understand produce prices — and why they may be

in flux — as well as how they can find © Mondel¯ez International group alternatives to the produce they love when they are beyond the budget. ●

44 WWW. WESTERNGROCER .COM WWW. WESTERNGROCER .COM 45 BC food report

By Robin Brunet

sk anyone involved in the B.C. food sector how business is in 2016, and the answer usu - Aally focuses on the glories of Canada’s West Coast. Case in point: Alistair Johnston, board member representing post farm gate for the Investment Agriculture Foundation of B.C., says, “Business is going great guns. How could it not out here?” This may seem like puffery, but Johnston’s comment cuts to the heart of why the industry is so robust. “The elements that drive our growth and demand are incredible,” he further explains. “First is a populace with healthy disposable incomes who have a keen interest in food. For export, we’re closer to the Asian market than other provinces. Finally, people are moving to B.C. in droves — so the industry is constantly growing.” Growing enough, in fact, for Johnston and many colleagues to predict that Victoria’s goal of increasing provincial agrifood and seafood revenues to $15-billion yearly by 2020 is well within reach (it has hovered between $11-and $13-billion in recent years). The numbers may be small compared to Ontario, whose food and beverage processing sector alone earns $41 billion annually, but on a per capita basis it amounts to being a central pillar of B.C.’s overall economy. Another crucial element propelling the industry forward is innovation, and nowhere is this more evident than in the processing sector. A prime example is Sarah Clarke, co-founder of FreeYumm allergen-free snack bars and cookies. Clarke and her husband moved to B.C. four years ago to start their own business; upon deciding to enter the food industry, they developed the idea of FreeYumm and received support from organizations such as the BC Food Processors Association and established processors like Naturally Homegrown Foods Ltd. president Kirk Homenick.

Courtesy of Shutterstock

46 WWW. WESTERNGROCER .COM WWW. WESTERNGROCER .COM 47 THEY’RE WHAT MAKES 150 stores (under the Save-On-Foods, Overwaitea Foods, Cooper’s Foods, Urban B.C. SPECIAL. Fare, PriceSmart Foods, and other banners) earlier this year acquired three Marketplace IGA stores in Metro Vancouver from H.Y. BECAUSE OF THEM, Louie Co. Limited. Other openings have followed. Darrell GROCERS HAVE A HUGE Jones, president, Overwaitea, says, “The opening of our first store in Saskatchewan RANGE OF UNIQUE PRODUCTS and the recent announcement of our plans to enter Whitehorse, Yukon are two ON THEIR SHELVES. more great examples of our commitment to growing in the West.” OFG is also responsible for rolling out a full eCommerce grocery offering in Metro Vancouver and major markets on Vancouver Island. B.C.’s retail sector will also this year see the opening of Canada’s first plastic- and packaging-free grocer: Zero Waste Market, which will offer locally Working with non-profit associations and ethically sourced products and dry and government Grounded Strategies Inc. offers programs to start-up companies goods like granola, nuts, and seeds - all on a group basis. sold in bulk form. Much has been said of upcoming Debra Hellbach, who presides over (L-R) Debra Hellbach, industry engagement challenges to B.C.’s food industry, one industry engagement and program & program development Grounded Strategies being the Trans-Pacific Partnership, which development at Grounded Strategies Inc. Inc., Gayle Palas, project management critics believe will create an uneven (which, like the IAFBC, is part of a broad & marketing strategy playing field due to lower-price foods network of government and private The result is that FreeYumm last year imports on shelves that aren’t required to organizations supporting new entrants quadrupled its revenue and this year is meet Canadian quality standards. to the food sector), agrees. “And given expanding into US markets (the company But IAFBC’s Johnston that we see electricians, also won the BCFPA’s 2015 Product of the thinks the challenges mothers with kids who have Year award). Clarke says, “This is one of are more internal than allergies, and even former the few industries left where if you have external. “The big retail oil field workers entering a good idea and basic business sense, you chains have lots of buying our industry, improving can make a go of it.” leverage, and this can be their efficiency isn’ t too But innovation is hardly the domain of tough for the smaller difficult,” she says. the processors. The B.C. retail sector has players trying to gain Grounded Strategies works been widely credited for its efficiency and access,” he explains. “So with non-profit associations can-do spirit, and these attributes are I think manufacturers’ stronger than ever in 2016. Overwaitea ongoing goal should be Alistair Johnston, board member representing Post Farm Gate, Food Group (OFG), the largest Western- to continue to improve Investment Agriculture based Canadian food store chain with over margins and productivity.” Foundation of B.C.

48 WWW. WESTERNGROCER .COM Overwaitea Food Group has been in operation kosher foods for over 100 years and continues to grow. By Ronda Payne

Of the sheer volume of people with no formal food experience trying to carve a niche for themselves in the industry, Hellbach says, “They’re what makes B.C. special. Because of them, grocers have a huge range of unique products on their shelves. And their cumulative influence is such that BRITISH COLUMBIA global brands imitate what they make.” Given the can-do attitude of retailers, IS A FOOD MECCA processors and everyone else involved in and government to offer programs to B.C.’s food industry, it’s a safe bet that WITH A CAN-DO ATTITUDE start-up companies on a group basis. “We new levels of self-improvement will be help get them over the initial growth achieved, guaranteeing that the province’s FOR EVERYONE INVOLVED. challenges, assuming their products have status as a food mecca will remain intact promise,” says Hellbach. for a long time to co me. ●

osher products are merging into the mainstream marketplace for a variety of reasons. Items pre - Kpared according to Jewish dietary law () are finding new tables, fridges and pantry shelves to call home with those looking for food that fits other industry has grown to more than $200 billion in dietary needs. worldwide annual sales of kosher certified products, The growth in kosher products is due primarily to $500 million of which is in Canada, according to non-Jewish consumers. According to Mintel, in the U.S., Agriculture and Agrifoods Canada. less than two per cent of Americans are Jewish, but in “There are only about 450,000 Jews in Canada, so 2014, more than 40 per cent of new packaged food and we’re the minority,” notes Wood. drink included kosher labelling. Mike Raftis, vice-president sales, marketing and Richard Wood, director, business and marketing with communications with Bothwell Cheese adds, “The B.C.’s Kosher Check notes the kosher market is growing Canadian Jewish and non-Jewish consumer of retail at 15 per cent year over year. kosher products are estimated to be one million people.” “It outpaces organic and gluten-free, all-natural and With only 15 per cent of kosher consumers being Jewish, other food certifications,” he says. the non-Jewish kosher market is definitely on the rise. Ontario’s Kosher Certification in Windsor notes the Another study from Mintel reported that 62 per cent of

50 WWW. WESTERNGROCER .COM Courtesy of Shutterstock WWW. WESTERNGROCER .COM 51 symbols on products are obvious, they are not the only aspect retailers need to Buy-Low Foods may create a kosher section in the future as recommends highlighting new or specialty know. For example, there are several it is becoming more important to their customers. products that are kosher certified but may groups of products within kosher, have a perception of being non-kosher. mainly: meat, dairy and or parve “[Keep] ethnic kosher items in the which contains neither meat nor dairy. kosher counter, but you want to have all “There are vegans, vegetarians, people your regular items within the rest of the with lactose intolerance, Muslims, Seventh products so it’s easier to buy,” says Raftis. Day Adventists, all are people buying It seems that everyone can appreciate Kosher because they know, or they the value of going kosher. Even Canadian believe, that a rabbi is not going to buy a Girl Guide cookies were certified kosher in product if a company is not meeting food 2014. It’s part of a growing trend to ensure safety requirements,” says Wood. another popular food segment is receiving The parve group of food is often sought the products consumers demand. ● out by vegetarians, vegans and those with B.C.’s Kosher Check notes that many commonly used dairy intolerances. There is also kosher for “The best source is from your items are already certified kosher. Passover which eliminates gluten and other customers. The customers will tell you consumers who purchased kosher foods did point category for retailers. Many grains and is popular for gluten allergies. what they want. It’s your job to go out so because of their belief in the quality. popular products are already kosher as Shellfish is not kosher, so individuals with and find it,” he says. “Have a distinct Steve Hertzman, owner of the Kosher Morello explains. shellfish allergies look for kosher products. kosher section. Dedicate a specified area Food Warehouse, feels this comes from the “One of our biggest brands is Baci Morello stresses, “pretending to to it. In the large stores I think they perception of products being healthier Chocolates and this year they will be know [all about kosher] can do more probably have to rely on their sales rep due to the extra level of inspection. launching as fully kosher,” he says. “Another harm than good,” therefore a basic recommendations. Tell them, ‘I want the “There is a much stricter level of big, iconic, global brand we have is Loacker understanding is helpful, but unless a 12 or 15 best-selling kosher items’.” supervision in meat and poultry,” he notes. and they also are completely kosher.” staff member eats kosher, don’t claim to Raftis notes kosher consumer demands Anthony Morello, president of Troy Dewinetz, general manager know the category. mirror the general population. Aurora Importing and Distribution, with Buy-Low Foods explains his “Popular trends and opportunities are adds that there is also a percepti on company’s approach. products that offer portability, con- that kosher foods are safer. “We always consider kosher as an venience and snack inspired features and Regardless of the reasoning, added consideration when listing a benefits,” he says. with consumer interest comes an new product,” he says. “It is not the Morello agrees with Hertzman’s sug- increase in products and a focal- only reason we would list an item, gestion to have a distinct kosher section. but it certainly gives a product “I believe it needs to be called out Aurora Importing and Distribution additional weight in our listing better or perhaps [have a] segregated set notes that staff shouldn’t claim to know the category unless they eat kosher, decisions.” of kosher foods to really highlight as it can do more harm than good. While the kosher certification assortment and variety,” he says. At Buy-Low, the move has not yet been made to create a kosher section or Bothwell Cheese notes that kosher consumer bring attention to Kosher products, but demands mirror the general population as it may be coming in the future. they look for products that offer portability and convenience. “We call-out new products, private label products, local products and organic Products like North Prairie Gold Extra products on our shelves using Virgin Canola Oil are, by nature, kosher, branded shelf-talkers,” but Rick Pender, president and CEO Dewinetz says. “Currently, we of Virtex Farm Foods says kosher do not have a shelf-talker certification is an assurance. for kosher, but as the area “It’s a specialty canola oil,” he notes. becomes more important to “What we have to certify is that it hasn’t our customers I can envision come into contact with anything in our us developing one.” plant that wouldn’t be certified.” Wood feels regular day-to- Wood adds that many commonly used day items should be kept with items are already certified kosher. regular products, but not “Pick up a can of soup, or a can of Heinz specialty kosher items. Raftis baked beans, or milk, they are kosher certified,” he says. “You may not know it, North Prairie Gold Extra Virgin but there is a little symbol on there.” Canola Oil notes that kosher Hertzman feels the best way for certification is an assurance that the product hasn’t come retailers to bring in the right products is into contact with any non-certi - to listen to customers. fied items at the plant.

52 WWW. WESTERNGROCER .COM WWW. WESTERNGROCER .COM 53 store security

By Anne-Marie Hardie 1 3 7 8 0

s d o o F

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educing shrinkage from theft is becoming an in creasing concern as grocery retailers carry R more higher priced merchandise including health and beauty items, small appliances and alco - hol. Higher-priced food items such as infant formu - la, higher grades of meats and specialty cheeses are high risk areas. While in the area, the staff’s focus also at risk. Grocers need to be aware of their high- should be on customer service taking the time to risk areas to ensure that the technology chosen connect with the customers. addresses their core issues. The staff greeting does more than provide a high Before selecting your security solutions, Mike Reynolds, level of customer service, it can also prevent theft from Simply Prepared - Pure Fruit marketing manager, security products, Panasonic Canada occurring. “Criminals don’t want you to pay attention to Inc. recommends having a technical specialist evaluate them; they want to remain unnoticed,” says Sangha. the risks and provide potential solutions. no shortcuts, no refined sugars or additives Say Cheese Know your High Risk Areas Security cameras are usually the first item Ravinder Sangha, marketing manager, Halo Metrics considered when it comes to preventing theft. To be Inc. agrees, emphasizing that before investing in effective both the type of camera and the placement of EDEN Apple Sauces - a blend of organically grown family orchard technology, retailers should take a detailed look at it needs to be carefully considered. “The image of a fruit from the Great Lakes’ region. The fruit did not need sugar added, the store layout. “Thieves gravitate towards the dark camera needs to be large enough to capture the areas areas in the stores,” says Sangha. High displays and that it intends to,” says Reynolds, “The tighter the Pure & Purifying ™ only protection from adulteration. These superb apple sauces are kettle dark corners create barriers to visibility. To prevent shot, the more cameras you will need.” Ideally, the free recipes at edenfoods.com cooked the traditional way with nothing else, whatsoever, added. loss, grocers can rearrange product to create a more camera should be placed in a location that will capture open environment or strategically place staff in these the information needed without impacting the

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customer experience. One for top theft items,” says Sangha. “It’s both Halo Metrics Inc. recommends The Future of Halo Metrics smart response technology taking a detailed look at the Technology way to maintain this freezer and microwave friendly, making it store layout before investing. can be used for customer support while positive atmosphere, ideal for specialty food items like meat and In fact, video analytics can help also evaluating potential concerns. “What suggests Reynolds, cheese.” Alarms can also be used to prevent not only prevent shrinkage but is interesting now is with this smart is to opt for cameras removing the product from its packaging, a also enhance overall marketing. response service, we have extra sensors that are smaller and common occurrence for products such as “We have a 360-degree camera that where one can sense motion or activity,” discretely placed in the high risk areas. infant formula, razor blades or cosmetics. can provide a heat map,” says says Sangha. “The sensitivity of the setting Traditionally, theft prone items were Loss does not only occur from external Reynolds. “The heat map con monitor can be adjusted to show heightened placed behind the counter, however this customers; a prevention strategy for where people are congregating the activity in a store, both alerting staff to detracts both from sales and the customer internal theft should also be put into most, so the retailers can analyze both experience. An alternative is equipping place. One way to do this is incorporating where people are walking or areas that Howell Data Systems’ goods with electronic article surveillance smart technology that can seamlessly they are avoiding.” Retailers can choose security systems have IT based technology, which permits remote viewing on Internet- (EAS), preventing theft while keeping the connect data from the cash register to to respond to the high traffic areas enabled devices. product accessible. “The alarm is designed video footage. This will allow managers to with additional staff, while also looking at ways to make the other areas more appealing.

Panasonic Canada Inc. advises having a tech - Loss Prevention nical specialist evaluate the store’s risks and “The benefit of having the provide potential solutions. video and data, is that the potential customer service concerns or We’re On Guard When You Can’t Be! preventing suspicious activity.” store can actually see that the With a vast amount of security tech- nology available, it is essential that the INVISI-SHIELD® cashier is placing a steak in grocery retailers understand their primary • Audible alert sounds when panels slide left or right to expose a single product. the shopping bag and yet risk areas. This will ensure that they are • Mounts seamlessly to the underside of shelves. putting in place a system that both responds scanned a pack of gum.” to their needs while still maintaining a positive consumer experience. ●

Retailers operating with less sta will be challenged to maintain customer service levels.

LOCK BOX

• Products can only be accessed with the assistance of a store associate. Contact Halo Metrics to learn • Mounts directly onto store shelf. how Smart Response Loss does not technology can: only occur from Send shopper external customers; assistance alerts a prevention strategy to sta that the store can actually see that the for internal theft Track how long it cashier is placing a steak in the shopping takes sta to SECURE MERCHANDISER SHELF bag and yet scanned a pack of gum.” should also be respond to alerts • Spring-loaded pushers keep merchandise up front and visible at all times. Security systems are designed to put into place. protect both the staff and customers. • System allows access to one product at a time. Alert managers & • Security alarm is activated when door is opened. To ensure that this occurs, all of the (battery powered) sta to suspicious review specific transactions such as security systems that Howell Data • Shelf unlocks and slides out for easy reloading. activity frequent voids and returns to confirm if Systems installs has IT based technology. any suspicious activity is occurring. This technology permits remote viewing And much more! “There is a phenomenon called sweet on Internet-enabled devices ensuring Call 1.800.667.9199 hearting, where instead of scanning a T- that the high risk areas are monitored at to learn more. bone steak, the cashier scans a small all times. With technology becoming in- item, like a pack of gum,” says Paul creasingly more intelligent, retailers are www.displaypeople.com Howell, owner, Howell Data Systems. “The able to install security systems that are 1 800 410-0264 • (905) 738-0888 benefit of having the video and data, is responsive instead of reactive. Visit: smartresponse.halometrics.com

56 WWW. WESTERNGROCER .COM WWW. WESTERNGROCER .COM 57 in the bag WHAT’S NEW & IMPROVED IN THE GROCERY AISLE

New Non-GMO North The New Amerlux Velato LED Prairie Gold Cold-Pressed Reveals Concealed Beams of Light Canola Oil Defined by Your Imagination

New from North Prairie Family Farms is a non-GMO extra-virgin, cold-pressed Saskatchewan canola oil. North Prairie Gold canola oil is minimally processed to maximize nutrition resulting in a good source of vitamin E, antioxidants and provides 1.5 grams of omega-3s. It also has half the saturated fats of olive oil and best of all it has a wonderful nutty Amerlux has introduced the architectural minimalistic, yet ver - , great for sautéing, salads and baking. It satile Velato LED family of HHP Recessed Adjustable Multiples is identity preserved directly from our farms to fixtures, which are available in one, two and three light configura - your table and is Non-GMO Project Verified. tions for accent and display lighting in retail, commercial and hospitality environments. Velato is offered in both trimless and For more information contact: 1877-575-5085 trimmed styles. Velato Hornet High Power (HHP) Recessed Slot email: [email protected] Adjustable Trimless and Trimmed Multiples are offered in 16 and 18 watt models in one-, two- and three-light configurations.

New Instant Miso Soups - Red and White

Eden has introduced new instant Red and White EDEN Miso Soups. This high quali - ty product comes as freeze-dried cubes in two flavour options ready in minutes. Organic kuzu, silky organic nigari tofu Tomarchio Italian Sodas cubes, organic green onion, and EDEN Arrive in Canada wakame sea vegetable balance, add appropri - Just in time for the hot summer these Italian sodas are made ate flavor, texture, and nutrients for full flavour and satisfac - in Sicily using local Sicilian fruits and volcanic water from Etna tion, which is guaranteed. Both the Red and White Miso Soups allowing a unique carbonation that is like no other soda on the are tested gluten free to a 5ppm sensitivity, tested non-GMO, market. They are to be enjoyed right out of the glass bottle or and have zero (MSG), autolyzed yeast used to make mixed drinks that will definitely impress. extract, or any other untoward additives. Available from Aurora Importers.

New Probiotic to Drink On the Go

With 14 active cul - tures, six grams of pro - teins and over two mil - lion of probiotics per 190 ml bottle, the new iögo Probio kefir con - tributes to the health Grisbi by Maltilde Vicenzi of the intestinal flora in addition of being a These are the famous shortbread cookies filled with velvet good source of calcium. Made of natural cream that are still made with the original recipe created by ingredients (milk and fruits), its format is Matilde Vicenzi. The Vicenzi company has been in operation practical and ideal for snacks on the go. since 1905. Try kefir in smoothies, for breakfast or as a snack! Available from Aurora Importers.

58 WWW. WESTERNGROCER .COM WWW. WESTERNGROCER .COM 59 in the bag WHAT’S NEW & IMPROVED IN THE GROCERY AISLE

Organic Black Basso Oils Bean and Kale This heritage company has been owned and operated by the Basso Fibre-rich black beans and family since 1904 in southern antioxidant-rich kale are the Italy. Basso offers authentic Italian stars in Organic Spicy Black Bean Extra Virgin, Unfiltered, Organic & Kale soup from Pacific. or Grapeseed oils made using Loaded with nutritionally dense renewable energy resources and ingredients, and with a mildly certified BRC, IFS, and ISO spicy kick, it will be hard to stop 14001,22000, & 9001. with just one bowl. Available from Aurora Importers.

Nature’s Path Introduces Sustainability Meets Affordability the First Organic Superfood and Raincoast Trading, well known for leading the way in sustain - Sprouted Grain Flake Cereal able seafood, is going global. Working with the Marine Stew - ardship Council, Raincoast Trading has sourced sustainable Nature’s Path is once again revolutionizing the cereal cate - pole and line-caught wild skipjack tuna in the Maldives for gory with the introduction of Qi’a Superflakes, the industry’s their new product line: Raincoast Global. Raincoast Global first organic superfood and sprouted grain flake cereal. High Wild Skipjack Tuna is available in two varieties: with natural in protein and fibre to provide all-day lasting energy, the new sea salt and salt-free. Both contain low levels of mercury with flakes are low in sugar, certified organic, certified gluten-free, no added flavouring or preservatives. Non-GMO Project Verified.

Aurora New Asparagus Kosher Salt Line from Peru Anna’s Country Kitchen has From an ancient Sicilian salt mine this all introduced a new line of aspara - natural Kosher salt is without additives and gus from Peru. All natural, preser - packed in a cylinder shaker that allows for vative free, the asparagus comes precise and controlled seasoning of meat, fish in three varieties: green, white, and vegetables. Kosher, OU and P certified. and grilled. This delicious healthy choice savory vegetable contains Available from Aurora Importers. an exceptional blend of nutrients. Contact Bosa Foods for more information. advertisers index

ADN Refrigeration Ltd ...... 42 Falesca Importing ...... IBC Mondelez Canada Inc ...... 45 Aliments Ultima ...... 28 General Mills Cda ...... IFC Olymel ...... 32 American Peanut Council ...... 3 Guru Lucky Snacks ...... 58 Original Prema Chai Inc ...... 7 Aurora Importing & Distributing ...... 25 Hallmark Canada ...... OBC Paradise Mountain Organic Coffee ...... 6 BC Food Processors Assoc...... 50 Halo Metrics Inc ...... 57 Polar Industries Ltd ...... 58 Biro Manufacturing Company ...... 24 Heatcraft Kyso/Warren ...... 41 Prairie Harvest Cda Ltd ...... 37 Bosa Foods ...... 19 Hussmann Canada Inc ...... 38 Rose’s Shortbread ...... 7 Carlton Cards Ltd ...... 17 Iceberg Cold Storage Ltd...... 44 SIAL Canada ...... 13 Direct Plus Food Group ...... 36 Italpasta Ltd...... 24 SIAL Paris ...... 61 Discovery Organics ...... 44 Lantic Inc ...... 34 Single Cup Coffee ...... 34 Eden Foods ...... 54 Marketing Impact Ltd ...... 56 Tree of Life Canada ...... 23 Elias Honey ...... 48 Meadow Valley Meats ...... 50 Virtex Group of Companies ...... 53 Etalex ...... 52 MNP ...... 49 Willow Creek Organic Grain Co. Inc ...... 9

60 WWW. WESTERNGROCER .COM retail collaboration CBy Jeff Douocette stco – The Undercover Supermarket

How the members-only warehouse is winning in your high margin categories.

ot so long ago when you thought Atlantic salmon. This is a category that is produce department needs to be the of Costco, images of enormous at the heart of a grocery store and Costco smile that greets your shoppers and the Npacks of toilet paper or mayon - seems to be doing it right with a great meat department should drive demand naise came to mind. Famously, Jerry mix of quality cuts and price. Costco is with solid imagery of products that are Seinfeld even did a whole episode that even rumoured to be opening its own hot off the grill and make you salivate. centred around the ridiculous purchases chicken plant in the U.S. to help them One secret weapon grocers have (or of Kramer at Price Club (the predecessor meet demand. should have) is the staff advantage. to modern day Costco) including a four Fresh produce is also a strong Costco orders pallets of blueberries and pound can of olives and a can of tuna category at Costco again driven by price drops them in the cold-room. Your store the size of a curling rock. and quality. On weekends there is often has produce and meat specialists that But today, your shoppers feel dif- a queue to get into the refrigerated should be actively engaging with shoppers ferent about Costco. Yes, the large packs produce room in the store and Costco is and should aim to be seen as the are still part of the deal, but this assisting farmers in purchasing land to neighborhood expert on their products. retailer has gotten smarter about help drive its insatiable appetite for Get these highly skilled specialists offering its members what they want at Organic produce. out mingling with the shoppers. No one prices that are hard to beat. So, how do you compete with a should ever need to ring the bell at your One of the biggest shifts is how retailer at which people pay to shop, meat counter looking for the hamburger Canadian shoppers are using Costco like only charges a maximum 14 per cent that is in the flyer but is out-of-stock. a traditional grocery store. A recent gross margin and can buy products from Speaking of meat, our recent “State study conducted by Field Agent showed suppliers by the trailer-load? of the Grill 2016 report” shows that that 50 per cent of the items purchased Traditional grocers need to focus on 61 per cent of Canadians would head at Costco were products that are the battle for the perimeter. It doesn’t to Costco if they were preparing for typically purchased at grocery stores. make sense to try to go head to head a barbecue. That makes Costco the With total sales exceeding $15 billion with one of the world’s largest retailers No.1 destination for barbecue foods in Canada, that means that Costco is on the price of packaged goods. and supplies. selling approximately $7.5 billion in It all starts at the buying desk making While price will always be a factor in food and household products. That’s sure that the fresh meat and produce that is grocery shopping and it is impossible to quite impressive for a purchased is top-quality, run a grocery perimeter on 14 per cent chain that only has 80 One secret weapon without compromise. gross margin; there is an opportunity stores! The second part of for retailers that have competitive While packaged foods grocers have (or the battle is the supply prices, high quality products and are still ubiquitous at should have) is the chain and ensuring that excellent customer service to win back Costco, the retailer is products get to stores these lost sales. However, you can’t dedicating more efforts staff advantage. with the maximum compromise. You have to be “all-in”. and space to fresh foods, amount of freshness As we enter the summer season the time which means a huge impact for and unfortunately, it has become all too to start winning back your customers is now! traditional grocers. familiar to see produce being placed on Be sure to arm yourself with all the One key category that is extremely the shelves that looks like it should insights you need for success this popular with Costco members is fresh meat already be on the markdown rack. grilling season and download a free with its large trays of steaks, hamburger, The final battlefield is the in-store copy of Field Agent’s State of the Grill chicken and pork merchandised at the environment itself. Great merchandising 2016 report. You can find it at our blog back of the store near its displays of in produce should not be optional. The at www.fieldagentcanada.com/client ●

Jeff Doucette is the founder of “Field Agent Canada” a smartphone driven audit service that is revolutionizing how retail audits and mystery shops are completed in Canada. He can be reached at [email protected]

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