MAY/JUNE 2014 RETURN UNDELIVERED TO MERCURY PUBLICATIONS LTD., 1740 WELLINGTON AVENUE, WINNIPEG MB R3H 0E8 CPM SALES AGREEMENT #40062509 NONO PRESERVATIVESPREESSERVATIVESES* INTRODUCINGINTIINNTRODODUCING NNOO GGLUTENLUUTEN NNOO AARTIFICIALRTIIFFICIAL IINGREDIENTSNGRGREEDDIENTS UNIQUE-TO-CATEGORY SHELF EFFICIENT 10 DELICIOUS FLAVOURS PACKAGING VARIETIES BRINGING TASTE INNOVATION TO THE GROWING NATURAL DELI CATEGORY. s t n e i d e r g n i e h t n i g n i r r u c c o y l l a r u t a n e s o h t r o f t p e c x E For trade inquiries call 1-800-663-8695 UQƂPCHQQFUEQO * Serving Western Canadians for Over 98 Years publisher’s perspective 50 Could Loblaw be One Step MAY/JUNE 2014 • VOLUME 100, NO.2 Ahead of the Game? Loblaw’s blockbuster deal to acquire the Shoppers In this Issue Drug Mart chain for over $12 billion has been cited as an example of the continued consolidation in the 9 Moving Forward industry driven by intense competition from U.S.- based retailers Walmart and Target, who are both A look at Grocery Showcase West 2013 with CFIG 17 intent on grabbing a larger share of the relatively President and CEO, Tom Barlow. lucrative grocery market in Canada. Already, we have seen big changes and indications 13 The 2014 Edition of SIAL Canada of future directions with Shoppers now stocking Pres - and SET Canada Montreal ident Choice products and talking about offering fresh goods for a more comprehensive convenience solution for consumers. Intended or Back in Montreal for its 11th edition, the Salon International not, this has the advantage to the country’s largest retailer of increasing the num - de L’Alimentation has once again broken a record for attendance! ber of “touch points” with consumers that may drive more business to their tradi - tional business units, let alone how it will help position Loblaw as the go to for 17 Clean & Crisp health and wellness products, a very strong trend with consumers today. Both the cookie and cracker category offer natural and It appears that this could be a better strategy to follow than what the mass dis - perceived healthy ingredients. counters have counted on: using their massive purchasing power and distribution might to offer low prices and adding square footage devoted to food hoping that con - 21 The World’s Greenest sumers who go there for an array of other consumer products will pick up their gro - Grocery Store? ceries as well. To some extent this has worked for them: traditional grocery stores 23 share of the market has been in decline whereas mass discounters have shown Whole Foods Markets sets industry standard. impressive gains over the last several years. It has certainly worked in the U.S. where Walmart is now the largest single retailer of food products in the country. But in 23 The Canadian Grand Prix Canada the story may now be different. Walmart and Target have scaled back their New Product Awards aggressive expansion plans as results have continued to disappoint. Loblaw, on the other hand, has walked into an already lucrative business and can leverage it to build their grocery brands in a way the others can’t. 29 Whole Lot of Everything Time, of course, will tell where the chips fall but it could well be that Loblaw is Whole grains move beyond trend, and become one step ahead of the game. an everyday way of buying. 33 In ‘N’ Out Optimizing the supply chain. 39 Enhanced Eating Frank Yeo, On Our Cover Publisher & Editor Pets are experiencing the benefits of healthier living. 41 Provincial Power Innovation Awarded 2014 may be a banner year for the BC Food Industry. Top Marks Robin Bradley Melanie Bayluk 45 Guarding Against Loss — Security Canadian food manufacturers shine at the latest product awards. Associate Publisher & Western Account National Account Manager Manager 47 The Cool Factor — Refrigeration Cover Photography: shutterstock.com [email protected] [email protected] 50 Super Seasonings Health-conscious consumers view spice in a new light. Publisher & Editor, Frank Yeo; Associate Publisher & National Account Manager, Robin Bradley; Western Account Manager, Melanie Bayluk; Editor/Editorial Production Coordinator: Nicole Sherwood; Advertising Production Manager, Marsha Coombe; Creative Manager, Sarra Burton; Circulation Department e-mail: [email protected]; Contributing Writers: Robin Brunet, Shayna Wiwierski, 27 Carly Peters, Frank Yeo, Nicole Sherwood, Andrew Raphael, Melanie Franner. 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: 1740 Wellington Ave., Winnipeg, Manitoba R3H 0E8 Tel: (204) 954-2085 Fax: (204) 954-2057 www.mercury.mb.ca • e-mail: Departments [email protected] Associated Publications: C-Store Canada Magazine, Votre Dépanneur, Commerce & Industry Magazine, Western Hotelier, Western Restaurant News, and Bar & Beverage Business . Circulation: Western Grocer Magazine serves the grocery and allied non-food industries. Readership includes distributors, brokers, manufacturers, wholesalers, independent grocers, food processors, bakeries, supermarkets, convenience stores, principal food service outlets, food researchers and consultants, government, 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 two years, $93.00 for three years; $5.00 for 6 Market Update 37 Commentary 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. 8 Calendar of Events 53 In the Bag Publication Mail Agreement No: 40062509. ISSN# 0705-906X. Return Undeliverable Canadian addresses to Circulation Dept. at 1740 Wellington Ave., Winnipeg MB R3H 0E8 e-mail: [email protected] Printed in Canada 4 WWW. WESTERNGROCER .COM WWW. WESTERNGROCER .COM 5 market update Fresh Direct Produce Canada’s Best Managed Companies for 2013 BC Ag Goes Global! market Fresh Direct Produce Ltd. has been cho - sen as one of Canada’s Best Managed From the U.S. to the U.K., throughout Companies for the third consecutive year. This prestigious national award is sponsored by Asia and the Middle East, BC agrifoods CIBC, Deloitte, National Post, Queen’s School of Business, and MacKay CEO Forums. have been circling the globe in pursuit of “It is very exciting and humbling to be chosen again for the Canada’s Best Managed Com - update new markets, thanks to the BC Agrifoods panies award. Fresh Direct Produce has continued to experience strong double digit growth, Export Program. In less than three months and has increased its service offerings over the past year. Passion, people, and persistence are from its November 2013 launch, IAF com - the three key drivers of this growth. We appreciate the support from our business partners, mitted over $600,000 of federal and customers, vendors, as well as from our staff and their families,” says President and Co- Alberta Meat Convention Competition provincial funding into projects to help Founder Davis Yung. Fresh Direct is one of Western Canada’s premier fresh produce importers, Winners Announced BC’s agriculture, food and seafood sectors wholesalers, and marketers with distribution centres in Vancouver and Calgary. Bothwell Cheese showcase their products around the world. Companies like vitamin manufacturer The 2014 Meat Con - Announces Leadership Herbaland Naturals, and Nutraex Food, a vention was held in developer of natural sweeteners for mass Olds, AB on March 14- Transition produced foods, used export funding to 16, 2014 The Friday Night People’s Choice Com - Ivan Balenovic, president & CEO of travel to Southern California and attend petition had 16 entries with 119 ballots cast. Bothwell Cheese has announced his Natural Products Expo West, one of the The winners were: retirement and the divesture of his equity world’s largest natural health product and Spragg’s Meats for Best Deli Tray in Bothwell Cheese Inc. effective June 1st, supplement tradeshows. Calahoo Meats for Best Jerky 2014. Len Thomson and Kevin Thomson, Meyer Family Vineyards also headed Reg’s Meat Shop for Best Pepperoni. president and vice-president respectively south for the World of Pinot Noir Sympo - This year’s processed meat competition included eight entry classes with 10 participat - of Paradise Island Foods will acquire sium in Santa Barbara, where they pre - ing companies; 84 products and 47 ribbons (24 bronze; 13 silver and 10 gold). The Cured Balenovic’s shares. sented their Okanagan-produced wines to Meat Aggregate winner was YB Quality Meats; the Sausage Aggregate was Big Bend Mar - Under Balenovic’s leadership, Bothwell California consumers. The Meyers were ket and the Overall Award went to YB Quality Meats. (see picture above) Cheese has achieved significant growth, also able to travel to London to promote becoming Canada’s largest independently their award-winning pinot noir and AFPA Appoints Marilynn Boehm owned nationally distributed cheese manu - chardonnay at trade and media tastings. facturers. Balenovic is proud of the compa - BC Gourmet Foods pursued target The Board of Directors of the Alberta Food Processors Association ny’s accomplishments and is confident that export markets in Dubai and the Middle (AFPA) and staff are pleased to announce the appointment of Marilynn it is well positioned to continue building on East for their new premium seafood and Boehm as president of AFPA. its successes. He attributes much of the wild mushroom product. As a result of pro - Boehm recently retired from the Alberta Government after 34 years company’s achievements to the dedicated ject funding, the company is currently in of service.