Sobeys Inc... Yesterday… Today… Tomorrow Mario Bellizzi Cutting Through the Greenwash III April, 2011 Sobeys…. Our History • Our Beginnings: – In 1907 John William Sobey started a meat delivery business, in Stellarton, Nova Scotia, using a horse-drawn cart he purchased and collected livestock from local farmers for resale • Our Growth: – The Sobey family started opening grocery stores in areas surrounding Stellarton. In 1947 we opened our first modern supermarket – Growth continued as the family opened supermarkets across Atlantic Canada – In 1987 annual sales reached $1 billion, and we opened our first store outside of Atlantic Canada (in Guelph ON) Our History (continued) • Our Growth (con’t): – In 1998 we tripled our size and became a national company when we acquired The Oshawa Group (a Toronto-based supplier to Canada's IGA stores) – In 2005 we introduced our exclusive Compliments private label products….. what we believe to the best combination of quality, price and exceptional food experience on the market today – In 2007 we expanded our presence in British Columbia through the acquisition of Thrifty Foods (a chain of 20 full service supermarkets primarily on Vancouver Island) – In 2009 opened the Vaughan distribution centre….. a first- in-Canada automated grocery distribution centre Sobeys…. Today • A wholly-owned subsidiary of Empire Company Ltd. • Annual sales: $15+ billion • Over 1,300 corporate and franchised food stores across Canada in five formats: – full service (Sobeys, IGA extra, Thrifty Foods); – fresh service (Sobeys Urban Fresh, IGA (Quebec)); – discount (Price Chopper, FreshCo); – community service (Foodland, Marché Bonichoix, Les Marchés Tradition); – convenience service (Needs) • over 70 Lawtons pharmacies across Atlantic Canada • over 20 Rachelle-Béry stores in Quebec (organic/natural food stores) • 10 fuel service stations Sobeys…. Today (con’t) • Over 85,000 employees and franchise affiliates • Serve over 800 communities across Canada • Offer over 5,000 private label products…. under the Compliments, Balance, Sensations, Organic, Green Care, and S!GNAL labels • Our Vision: “To be the most worthwhile experience for everyone who touches our business” Sobeys and the Environment • Committed to: – reducing CO²e emission intensity by 15%; and, – reducing waste intensity by 30% (includes “waste to landfill”, product packaging, consumer plastic bags), by end of 2013 from our base year (2008) levels. • Built the first LEED-certified refrigerated distribution centre in Canada • Built the first LEED-certified grocery store in the country • Introduction of unique Sustainable Seafood Policy, partnering with Sustainable Fisheries Partnership • Installation of over 20 industry leading CO refrigeration systems (eliminate the global warming impacts of HFCs) Sobeys and the Environment (con’t) • Over past two years implemented hundreds of energy conversation/efficiency projects (expected to reduce our electricity consumption by 40+ million kWh/year (equivalent to the annual electricity consumption of 3,600 average Canadian homes) • Implemented measures reducing our fleets’ fuel consumption (e.g. idling reduction technology, driver training, automated routing systems) • Actively involved in industry and supply chain partner initiatives aimed at developing national/international standards and practices including: – Global Packaging Project – Global Social Compliance Program – Canadian Agricultural Sustainability Dialogue – Retail Council of Canada • Committed to buy local, when vendors are able to meet our procurement standards/requirements Thank you.