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Food sales become an acquired taste for Canadian Tire
Staff on the store floor grumbled when Canadian Tire began testing food sales, but so far the pilot project is getting good results. In Canadian Tire stores that stock grocery items, such as dairy, cereal, bread and canned goods, food is the most shopped category in the store, says Mike Arnett, president of Canadian Tire Retail. "Everybody needs food; not everybody needs plumbing on a given trip." Source: Canadian Grocer E-Newsletter, March 1, 2010

2009 dismal for most, not so bad for grocers
Sales at supermarkets, grocery stores and convenience stores weathered the recession rather well last year, according to Canadian Grocer's annual Market Survey. Sales in Canada rose 2.8% in 2009 to an all-time high of $81.5 billion. Sales were up 3.9% in 2008. The full Market Survey is available in the February issue of Canadian Grocer, out now. To order copies, contact Michelle Iliescu at » michelle.iliescu@canadiangrocer.rogers.com Source: Canadian Grocer E-Newsletter, March 1, 2010

Wal-Mart speeds up Supercentre expansion
Wal-Mart Canada will add 35 to 40 new Supercentres this year as it tries to gain a larger share of the grocery market. The additions will come through a combination of new stores, relocated stores, and expansion and remodeling of existing discount outlets. Wal-Mart opened 28 Supercentres in 2009, but some of the new stores this year will be much smaller than the company's standard 170,000 sq. ft. The smallest will be around 100,000 sq. ft., containing a grocery department of 15,000 sq. ft. Source: Canadian Grocer E-Newsletter, March 1, 2010

Cheap-chic retailer Target coming to Canada
The much-loved ``cheap-chic'' discount chain, Target Corp., referred to by fans as "Tar-Jay," says it has Canada in its sights as part of a future international expansion plan. Like many U.S. retailers, Target is mulling a move outside its home market after sales and profits took a nosedive in the past year. The announcement comes years after Target was rumoured to be eyeing an entry into Canada through the purchase of Hudson's Bay Co.-owned discounter, Zellers. Hudson's Bay was publicly traded and widely held at the time. Instead, HBC was bought first by South Carolina businessman Jerry Zucker and, after his untimely death, sold to its current owners, NRDC Equity Partners. Target said it would be at least three years before the international expansion plan takes place. In the meantime, the Minneapolis-based retailer said it would focus on updating its existing United States stores. Target plans to invest $1 billion (U.S.) renovating 340 stores, adding more groceries to its general merchandise as hard-pressed consumers continue to buy staple goods. The retailer said it also plans to improve its beauty, home, electronic and video-game departments. Depending on economic, real estate and internal retailer conditions, Target said it would open at most 10 new stores this year in existing markets. That's well below the 58 it opened in the 2009 fiscal year ending Jan. 31 and the 91 it opened in fiscal 2008 It's also developing a new smaller store format, which it plans to open in the "next few years," the company said at an investor meeting in Philadelphia Thursday. "We are excited about the growth potential for Target and believe we have the capital, talent, and right blend of discipline and innovation to deliver meaningful value to our guests and shareholders," Target CEO Gregg Steinhafel said in a statement. The chain has faced tough competition from Wal-Mart Stores Inc., the world's largest retailer. Customers turned away from Target's cheap-chic styles toward retailers they believed were offering lower prices during the recession. But holiday sales improved as Target trumpeted its lower prices and expanded its selection of groceries, necessities that bring in shoppers more frequently. Better-than-expected customer traffic boosted December sales by 1.8 per cent at stores open at least a year. Analysts were expecting a 0.2 per cent drop. Source: Toronto Star, www.thestar.com, Business Section, January 22, 2010

Kraft reaches $19 billion deal for Cadbury
LONDON (CNNMoney.com) -- Kraft reached a $19 billion deal Tuesday to buy Cadbury, finally succeeding in its takeover of the 200-year-old British candy maker after sweetening its offer. Cadbury's board said it was unanimously recommending the bid to shareholders. Facebook Digg Twitter Buzz Up! Email Print The cash-and-stock offer values each Cadbury share at 840 pence, or about $13.72. Shareholders will also be entitled to a 10 pence dividend per share. Under the terms of the deal, for each share they own, Cadbury shareholders will receive 500 pence in cash and 0.1874 new Kraft shares. Cadbury (CBY) shares rose nearly 4% in London. The deal, which creates a global food behemoth, comes after months of back and forth between the two companies. Kraft (KFT, Fortune 500) initially launched a $16 billion takeover bid for Cadbury in September. But the company was repeatedly rebuffed by Cadbury. Kraft, which makes everything from Oreo cookies to American cheese slices, had met resistance from some of its shareholders over its pursuit of Cadbury. Earlier this month, billionaire investor Warren Buffett, whose Berkshire Hathaway is Kraft's biggest shareholder, voted against Kraft's proposal to issue new shares for its takeover bid. Source: cnn.com Jan. 19, 2010

Kraft reaches $19 billion deal for Cadbury
LONDON (CNNMoney.com) -- Kraft reached a $19 billion deal Tuesday to buy Cadbury, finally succeeding in its takeover of the 200-year-old British candy maker after sweetening its offer. Cadbury's board said it was unanimously recommending the bid to shareholders. Facebook Digg Twitter Buzz Up! Email Print The cash-and-stock offer values each Cadbury share at 840 pence, or about $13.72. Shareholders will also be entitled to a 10 pence dividend per share. Under the terms of the deal, for each share they own, Cadbury shareholders will receive 500 pence in cash and 0.1874 new Kraft shares. Cadbury (CBY) shares rose nearly 4% in London. The deal, which creates a global food behemoth, comes after months of back and forth between the two companies. Kraft (KFT, Fortune 500) initially launched a $16 billion takeover bid for Cadbury in September. But the company was repeatedly rebuffed by Cadbury. Kraft, which makes everything from Oreo cookies to American cheese slices, had met resistance from some of its shareholders over its pursuit of Cadbury. Earlier this month, billionaire investor Warren Buffett, whose Berkshire Hathaway is Kraft's biggest shareholder, voted against Kraft's proposal to issue new shares for its takeover bid. Source: cnn.com

Kraft nears agreed takeover deal for Cadbury
LONDON (Reuters) - Kraft Foods was close to announcing a recommended deal to buy Cadbury for around 11.7 billion pounds ($19.2 billion) after it offered more cash in late-night talks to break a four-month impasse over price. The deal would create the world's largest confectionery group ahead of privately owned Mars-Wrigley. "The boards of Kraft Foods Inc and Cadbury Plc confirm that they are finalizing the terms of a recommended offer for Cadbury Plc. A further announcement will be made shortly," Kraft said in a statement on Tuesday. Cadbury shares hit a record high of 835 pence in early trade and were up 3.2 percent 833p by 0815 GMT (3:15 a.m. EST). Kraft's CEO Irene Rosenfeld injected more cash into her bid and raised the overall value to persuade Cadbury's Chairman Roger Carr and his board to recommend her cash and shares hostile offer, worth around 840-850p, after a fiercely fought bid battle, said sources close to the situation. Cadbury had steadfastly rejected Kraft's previous 10.5 billion pound takeover bid since a brief meeting between Rosenfeld and Carr late August, but Kraft came back on Monday with its higher offer prompting high level talks into the night. The recommended offer is likely to include some or all of Cadbury's final 2009 dividend of 12.3p which has been announced but not yet paid to Cadbury shareholders, the sources said. The new bid will consists of over 500p of cash and the rest in new of Kraft shares, compared to Kraft's original offer of 300p and 0.2589 new Kraft shares which valued Cadbury shares back in early September when the deal was first published at 745p, they added. (Reporting by David Jones; editing by Dan Lalor and Sitaraman Shankar) xLONDON (Reuters) - Kraft Foods was close to announcing a recommended deal to buy Cadbury for around 11.7 billion pounds ($19.2 billion) after it offered more cash in late-night talks to break a four-month impasse over price. The deal would create the world's largest confectionery group ahead of privately owned Mars-Wrigley. "The boards of Kraft Foods Inc and Cadbury Plc confirm that they are finalizing the terms of a recommended offer for Cadbury Plc. A further announcement will be made shortly," Kraft said in a statement on Tuesday. Cadbury shares hit a record high of 835 pence in early trade and were up 3.2 percent 833p by 0815 GMT (3:15 a.m. EST). Kraft's CEO Irene Rosenfeld injected more cash into her bid and raised the overall value to persuade Cadbury's Chairman Roger Carr and his board to recommend her cash and shares hostile offer, worth around 840-850p, after a fiercely fought bid battle, said sources close to the situation. Cadbury had steadfastly rejected Kraft's previous 10.5 billion pound takeover bid since a brief meeting between Rosenfeld and Carr late August, but Kraft came back on Monday with its higher offer prompting high level talks into the night. The recommended offer is likely to include some or all of Cadbury's final 2009 dividend of 12.3p which has been announced but not yet paid to Cadbury shareholders, the sources said. The new bid will consists of over 500p of cash and the rest in new of Kraft shares, compared to Kraft's original offer of 300p and 0.2589 new Kraft shares which valued Cadbury shares back in early September when the deal was first published at 745p, they added. (Reporting by David Jones; editing by Dan Lalor and Sitaraman Shankar) Source: Yahoo.com January 19, 2010

Food Safety Progress Limited Due to Lack of Clear Direction: Deloitte Report
According to a new report by Deloitte, Safe to move: Food safety risks are rising, it's time for action, food safety risks are rising and the challenges transcend the entire food supply chain, from farmers and food producers, to distributors, food service companies, product manufacturers and retailers. » Full Story Source: Canadian Grocer E-Newsletter, January 18, 2010

Grocery Sales and Profits Robust in '09: Grocery Trade Review
According to George Morris Centre's latest "Grocery Trade Review," Canadian supermarket sales are going to be above the $72 billion mark in 2009, a 5% increase over 2008. This 5% sales increase is conservative as actual sales could increase by 5.5%—the largest increase in the last five years at least and is driven by higher food prices. » Full Story Source: Canadian Grocer E-Newsletter, January 18, 2010

Couche-Tard Acquires Eight Stores in North Carolina
Alimentation Couche-Tard Inc. announces that it has signed, through its subsidiary Circle K Stores Inc., an agreement to acquire eight stores in central North Carolina from Accel Marketing LLC, which operates under the "Accel" banner. » Full Story Source: Canadian Grocer E-Newsletter, January 18, 2010

Campbell Canada Expands Food Bank Commitment
Campbell Company of Canada and Food Banks Canada announced a comprehensive multi-year agreement that will support hunger relief across Canada through the donation of nutritious food, charitable funds, educational resources and other awareness and community programs. » Full Story Source: Canadian Grocer E-Newsletter, January 18, 2010

T&T Arrives With a Bang
The arrival of T&T Supermarket Inc. in a sprawling 51,000-sq.-ft. store at 224 Hunt Club Rd., near Riverside Drive, Ottawa, on Oct. 28 is being greeted with anticipation in foodie circles and, in some cases, a little anxiety in Chinatown. » Full Story Source: Canadian Grocer E-Newsletter, October 23, 2009

Loblaw to Convert Organic Waste into Electricity
Loblaw Cos. Ltd. and London, Ont.-based StormFisher Biogas have agreed to convert all organic trimmings produced at Loblaw corporate grocery stores in southwestern Ontario into renewable energy. » Full Story Source: Canadian Grocer E-Newsletter, October 23, 2009

Loblaw Rewards Part-time Workers in Full
Nearly 100 unionized grocery store workers in Montreal became the first of 2,000 Loblaw Cos. Ltd. part-time employees across Quebec to be given full-time status as part of the supermarket giant's business strategy. » Full Story Source: Canadian Grocer E-Newsletter, October 23, 2009

Grocer Feeds Victoria's Appetite for Local Produce
The owners of Victoria's Rootseller Village Green Grocer were named the Business Development Bank of Canada's Young Entrepreneurs of the Year for British Columbia. The retailer sells conventional and organic products from nearly 100 growers and suppliers, ranging from small backyard garden operators to large greenhouse operations. » Full Story Source: Canadian Grocer E-Newsletter, October 23, 2009

Tool Helps Shoppers "Eco-Audit" Their Edibles
Vancouver's online organic grocer spud! will release a new web-based tool to help its customers determine the environmental savings of each of their orders. When a customer places an order online at www.spud.ca, it will be evaluated with the new "eco-audit" feature, which looks at six environmental impacts related to grocery shopping. » Full Story Source: Canadian Grocer E-Newsletter, October 23, 2009

Foodland Ontario Retailer Award Winners
On Oct. 20 the innovative efforts of 59 grocery retailers to promote Ontario's fresh food products were recognized with Foodland Ontario Retailer Awards. Top honours went to five stores that received the Foodland Ontario Award of Excellence: Metro #147 in Windsor, Ont.; Victoria Harbour Foodland; Port Sydney Freshmart; Midland Foodland; and Morello's Your Independent Grocer, Peterborough, Ont. Stores submitted photographs of their promotional displays to qualify for the awards. This year there were 868 entrants. www.Ontario.ca/agriculture-news Source: Canadian Grocer E-Newsletter, October 23, 2009

Maple Leaf Opens Innovation Centre
Maple Leaf Foods opened a new $12 million innovation centre in Ontario to concentrate on its bakery and protein businesses. The ThinkFOOD! Centre is a 25,000-sq.-ft. facility situated with the company's Mississauga corporate offices and is intended to act as a hub for product development, consumer research and global trend tracking. » Full Story Source: Canadian Grocer E-Newsletter, October 9, 2009

Loblaw Named One of Canada's Top 100 Employers
Loblaw Cos. Ltd. has been named one of Canada's Top 100 Employers for 2010 in recognition of its efforts to attract and retain employees and create a great workplace environment. Loblaw is the only grocery retailer on the 2010 list. Judy McCrie, executive vice-president, human resources, Loblaw, said: "We are very proud to be recognized as one of Canada's Top 100 Employers, especially as this is the first time we entered the national competition. This distinction is a milestone achievement for Loblaw, as we continue to work to build a culture of success where our colleagues are empowered and supported to meet and exceed customer expectations." www.canadastop100.com/national/ Source: Canadian Grocer E-Newsletter, October 9, 2009

Joe Fresh Moves to Main Street
Loblaw Cos. is taking its Joe Fresh Style brand to main street, signing a deal to open an 8,000-sq.-ft. boutique on Queen Street West in Toronto. The project also includes a 45,000-sq.-ft. Loblaws supermarket on the second floor and is set to open in 2011. » Full Story Source: Canadian Grocer E-Newsletter, August 24th. 2009

Loblaw Focuses on Local Produce
To compete with farmer's markets, Loblaw is running its national "Grown Close to Home" campaign for the second year, which labels local produce. "This year we are running the program from coast-to-coast and it includes all Loblaw banners," said Mike Venton, senior vice-president, produce, Loblaw Cos. Ltd. "There is still the perception that the local produce has to be bought in farmer's markets, so we are trying to change that and assure customers that we do have all these great local products." The program runs from Aug.-Sept. This year Loblaw is improving freshness by having a shorter lead time with their ordering system, so in some cases banners will get deliveries daily. Source: Canadian Grocer Aug. 24th. 2009

Cost of Eating Rises
Even though the overall consumer price index has fallen by 0.9% year over year, Canadians are feeling the pinch as Statistics Canada reported that food prices were 5.6% higher in grocery stores in July than they were a year ago. » Full Story Source: Canadian Grocer Aug. 24, 2009

Loblaw Purchases Asian Grocery Chain
Loblaw Cos. Ltd. announced that it is buying T&T Supermarket, Canada's biggest Asian food retailer, for $225 million. The company is aiming to extend its offerings to what it says is the country's largest growing customer segment. "This is an opportunity for a struggling Loblaw to try and reach out into other ethnic communities. They have traditionally targeted specific ethnic markets in the past with the Fortinos brand, for example," said Richard Talbot, president and CEO, Talbot Consultants International Inc. T&T Supermarket Inc., which runs 17 stores in B.C., Alberta and Ontario, will operate as a separate division."If they are going to stick with the ethnic Chinese market, it can be a tough market to deal with. It is very price conscious and quality of food oriented, which can mean skinny margins. I don't see it as a great pot of gold at the end of the rainbow," said Talbot. However, John Scott, president and CEO, Canadian Federation of Independent Grocers, said that T&T is one of many examples of how independent entrepreneurship works well in the Canadian market. "Their acquisition by Loblaw is a sound strategic move by a major player," he said. http://www.theglobeandmail.com/report-on-business/loblaw-buys-asian-grocery-chain/article1229762/Source: Canadian Grocer E-Newsletter, July 28, 2009

Conveyer Belt Advertising at Sobeys
Recently launched conveyor belt advertising is gliding its way into Eastern Canada stores this month, as part of Sobeys' recent partnership with U.S.-based EnVision Marketing Group, producers of the conveyor belt ad product, Art-N-Line. http://www.mediaincanada.com/articles/mic/20090721/sobeys.html?__s=yes Source: Canadian Grocer E-Newsletter, July 28, 2009

Golden Pencil Recipients Announced
The nominating committee of The Food Industry Association of Canada received record response for nominations of the 2009 Golden Pencil Award, the grocery industry's highest honour. The association's chairman, Paul Higgins Jr. of Mother Parker's Tea & Coffee Inc., announced this year's recipients are: Lem Janes, chairman & CEO, Janes Family Foods Ltd.; Frank Lovsin, chairman, Freson Market Limited; John Scott, president & CEO, Canadian Federation of Independent Grocers. The award ceremony takes place on Nov. 23 at the Royal York Hotel. Tickets are $100, contact: Bill Sheine, secretary-treasurer, Food Industry Association of Canada, 2408–65 Spring Garden Ave., Toronto, ON M2N 6H9 Fax: 416-229-0231; e-mail: sheine@interlog.com Source: Canadian Grocer E-Newsletter, July 8, 2009

Loblaw Makes Commitment to Sustainable Seafood
Loblaw Cos. Ltd. announced a commitment to source all seafood sold in its retail locations from sustainable sources by the end of 2013. The commitment covers all canned, frozen, fresh, wild and farmed seafood products, in all categories. However, according to SeaChoice, Canada's national sustainable seafood program, the new policy is a positive step but needs to be expanded to provide consumers with more opportunities to make truly sustainable decisions. http://www.tradingmarkets.com/.site/news/Stock%20News/2337750/ Source: Canadian Grocer E-Newsletter, May 22, 2009

Walmart Closes Doors at Sam's Clubs
Walmart Canada Corp. announced that it is closing its six Ontario Sam's Club locations in March. The company hopes to minimize job losses among the 1,200 employees at the stores by holding internal job fairs to help workers find jobs at existing Walmart stores. As part of that strategy, the company unveiled plans to launch 26 new Supercentres across the country this year including expansions of 20 existing Walmarts, two relocations and four new stores, bringing its Canadian footprint to 316 stores by the end of 2009. This is expected to create 5,000 new store jobs as well as 5,000 construction jobs, according to the company. http://www.globeinvestor.com/servlet/story/RTGAM.20090226.wwalmart0226/GISto ry/Email Source: Canadian Grocer E-Newsletter,Feb.27,2009

Loblaw Profit Quadruples
Loblaw Cos. Ltd. said fourth-quarter profit more than quadrupled because higher sales and restructuring expenses were lower than the company expected. Net income climbed to $188 million from $40 million a year earlier, the company said in a statement. In other news, while speculation that George Weston Ltd. will take Loblaw Cos. Ltd. private appears to have subsided, the supermarket chain could do well in an era of belt-tightening despite ongoing restructuring, analysts said. "We think Lobaw is the best-positioned Canadian grocer in this challenging economic environment due to its large discount store network and best-in-class private label offering, including the No 'Name' brand," said analyst David Hartley of BMO Capital Markets. Analyst Winston Lee of Credit Suisse, agreed that value pricing will be key in the months ahead as consumers trade down to less expensive goo! ds. But "general merchandise trends at Loblaw are likely to still weaken," and while it has the "strongest platform" of the grocery players "a growing Wal-Mart threat and organizational transition issues keeps us on the sidelines." http://www.bloomberg.com/apps/news?pid=20601082&sid=aeNknK7ALDno&refer=canada Source: Canadian Grocer E-Newsletter, February 20, 2009

Walmart Canada Rebranded
Walmart Canada is planning for a record year of price reductions as it rebranded to operate under a new logo and the slogan: "Save money. Live better." The rebranding addresses the growing customer focus on saving money during difficult economic times and builds upon the company's commitment to having "the best prices." Under the new branding, Walmart Canada's new television commercials ask the question, "What will you do with your Walmart savings?" The ads feature Walmart products used by customers also enjoying family time and popular pastimes. Sales at Walmart Canada grew 6.8% in the fourth quarter, but operating profit and gross margins weakened as customers bought lower-margin food and less clothing, its U.S. parent said. Wal-Mart Stores Inc. reported the Canadian figures as part of a wider release that looked at its global performance. http://cnw.ca/en/releases/archive/February2009/13/c8283.html Source: Canadian Grocer E-Newsletter, February 20, 2009

New Organic Regulations Applauded
On June 30, only products with organic content greater than 95% can be labelled "organic" under new federal regulations, and use a new logo from the Canadian Food Inspection Agency (CFIA). Canada's organic-food industry has praised the new standards and enforcement tools. Matthew Holmes of Canada?s Organic Trade Association described the significantly amended organic products regulations as a consumer's dream. "When they see an organic claim out in the marketplace, it has a very strict definition, the government is behind it, and everybody is meeting the same standards," he said. "When these regulations come into effect this summer, consumers will have a clear idea of what organic is, and will know the CFIA is monitoring and enforcing organic claims in the marketplace." http://www2.canada.com/montrealgazette/features/viewpoints/story.html?id=257d1cc1-6cda-4702-a0d5-42e399e91f2a Source: Canadian Grocer E-Newsletter, February 20, 2009

Call to Regulate Trans Fat
The Heart and Stroke Foundation wants Ottawa to regulate the amount of trans fats that producers can include in foods, instead of relying on companies' voluntary compliance to meet low trans fat targets. The call follows the release of what the foundation described as "disappointing" results from Health Canada's trans fat monitoring program. "Although some companies and sectors have stepped up to the plate and done well, overall the food industry is not sufficiently reducing trans fats voluntarily," said Sally Brown, CEO of the Heart and Stroke Foundation of Canada and co-chair of the Trans Fat Task Force. "So, our view is this data seems to be suggesting quite strongly that it's not going to happen without regulation." Health Canada spokesman John Tessier said no decision has been made on whether legislation will be required to cut trans fat levels in food products. http://www.niagarafallsreview.ca/ArticleDisplay.aspx?e=1437451 Source: Canadian Grocer E-Newsletter, February 20, 2009

Wal-Mart Opens First Vancouver Store
Wal-Mart opened its first Vancouver store Jan. 21 in the old Costco location near Grandview and Broadway. David Cheesewright, Wal-Mart Canada?s CEO, admitted cracking the Vancouver market has been a tough job, even though, by the company?s estimate, Vancouverites make some two million shopping trips per year to its stores outside of the city. The Grandview Wal-Mart opening represents the retailer?s long-sought break into the Vancouver market following the very public and political rejection of its proposed development on Southeast Marine Drive in 2005. Kevin Groh, Wal-Mart Canada?s director of corporate affairs, said the company has spent ?many tens of millions? tearing the old Costco store back to a bare box, and rebuilding it to its modern, sustainable standards. http://www.vancouversun.com/news/Mart+cracks+Vancouver+ market+with+Grandview+store/1195764/story.html Source: Canadian Grocer E-Newsletter, Jan. 30, 2009

Competition Heating Up in Orillia Retail Sector
With Wal-Mart set to open up a 170,000-sq.-ft. Supercentre Jan. 17, a Giant Tiger under construction on Atherley Road and a new location for Shoppers Drug Mart on Westmount Drive, Orillia will see an expanded retail market in the coming months. One quarter of the Supercentre's area will be dedicated to groceries. Giant Tiger, slated to open in late spring, will also offer a number of grocery items. Meanwhile Shoppers Drug Mart's relocation from the Orillia Square mall to Westmount Drive also means an upgrade from around 8,000 sq.ft. to approximately 14,000 and the expansion of a convenience/grocery section. http://orilliapacket.com/ArticleDisplay.aspx?e=1374311&auth= COURTNEY%20WHALEN,%20THE%20PACKET%20AND%20TIMES Source: Canadian Grocer E-Newsletter, Jan. 12, 2009

Maple Leaf Foods CEO Named Business Newsmaker of the Year
Michael McCain, CEO of Maple Leaf Foods, has been named Canada's 2008 Business Newsmaker of the Year, as chosen in an annual survey of editors and broadcasters by the Canadian Press. His response to the listeriosis outbreak this summer showed compassion and cutthroat business sense, and helped the company emerge relatively unscathed from one of the worst food-borne illness outbreaks in Canadian history. http://www.cbc.ca/cp/national/090101/n010119A.html Source: Canadian Grocer E-Newsletter, Jan. 12, 2009

David Jeffs Joins Sobeys Inc.
Sobeys Inc. has announced the appointment of David Jeffs as president operations, Sobeys Ontario. Jeffs, a seasoned and highly qualified food retailer, spent many years at Loblaw's and replaces Craig Gilpin, who has left the company to pursue other opportunities. Source: Canadian Grocer E-Newsletter, Jan.12, 2009

Loblaw Chooses Manhattan Associates
Loblaw Cos., Ltd. selected Atlanta-based Manhattan Associates' Warehouse Management Solution (WMS) to support its distribution centre operations. "Loblaw is focused on improving its warehouse operations to enhance the efficiency and delivery to our stores and customers," said Loblaw SVP, information technology Catherine Booth. "We believe Manhattan Associates provides a proven solution for a grocer of our size that will help us advance our distribution centre operations." Source: Canadian Grocer, Dec. 19, 2008

Agropur Expands U.S. Presence
Agropur, Canada's largest dairy cooperative, announced it has reached an agreement to acquire Schroeder Milk, a milk processing company located in Maplewood, Minn. The operation will continue as Schroeder Milk under the current president, Bob Kirchoff, who will report to Ken Hume, VP, business development, division Natrel. http://www.newswire.ca/en/releases/archive/December2008/16/c2437.html Source: Canadian Grocer E-Newsletter, Dec. 19, 2008

Maple Leaf Unveils Food Safety Campaign
Maple Leaf Foods has launched the second phase of a nationwide damage-control campaign aimed at restoring consumer confidence in the brand. Reporters were invited to inspect the multi-million dollar renovations made to the plant where the contaminated meat came from and review the company's new food safety protocol. A week-long TV commercial blitz has also begun, featuring the company's president and CEO Michael McCain. A spokeswoman said the campaign is the result of a poll that indicated many consumers weren't aware the recall is over. Maple Leaf also hired a chief food safety officer, effective Jan. 5. In other news, Maple Leaf settled the class-action lawsuit with victims of the listeria outbreak, committing to pay between $25 million and $27 million in compensation. Under the agreement, victims of listeria-induced stomach aches stand to receive potentially thousands of dollars from the company. http://www.thestar.com/News/GTA/article/554329 http://www.healthzone.ca/health/article/556248 Source: Canadian Grocer, Dec. 19, 2008

First B.C. Grocer to Offer All Local Opens
Brambles Market, the first grocer in B.C. to offer strictly British Columbia products, recently opened in the town of Courtenay (two-and-a-half hours north of Victoria). Owners James and Angeline Street have been working on the concept of their "all B.C. all the time" grocery store for five years. The Streets use as many local producers as they can, and many of the names in their store are familiar ones from the Comox Valley Farmers' Market, such as Heavenly Goodies Bakery, Estevan Tuna, Island Bison and Big D's Bees honey. http://www.bclocalnews.com/business/36013909.html Source: Canadian Grocer E-Newsletter, Dec. 19, 2008

Wal-Mart Has Record Year on Price Reduction
Wal-Mart Canada is putting hundreds of price reductions on food, in addition to its "Everyday Low Prices." Nationally, the company's Supercentre locations are offering the price reductions so customers can purchase all the items they need to prepare an eight-person Christmas turkey dinner for less than $35. Wal-Mart Canada said it is having a record year in its number of price reductions. "We plan to keep helping Canadians stretch their holiday dollars with price reductions that make a real difference to their wallets," said Les Mann, Wal-Mart Canada's vice-president of food. http://www.newswire.ca/en/releases/archive/December2008/17/c2680.html Source: Canadian Grocer E-Newsletter, Dec. 19, 2008

Dining Out Less Popular: NPD Group
NPD Group's "Eating Patterns in Canada" study suggests most Canadian households are planning to cut down on dining out. Eighty-eight per cent of respondents in the report said they intended to decrease the amount of time spend eating in restaurants. The surveys were mainly conducted up to and including March 2008, before the economic downturn began hitting Canada in a big way. Marion Chan of the NPD Group said that even though people may intend to cut back on eating out, they've come to rely on pre-made foods so much that they're not going to be able to do it. People would be spending less than they did in the past, she said, but still enjoying a prepared meal so food manufacturers should see this as an opportunity, Chan added. http://www.cbc.ca/consumer/story/2008/12/16/food-consumer.html Source: Canadian Grocer E-Newsletter, Dec. 19, 2008

George Weston to Sell U.S. Baked Goods Unit
George Weston Ltd. sold its fresh bread and baked goods business in the U.S. to Mexico?s Grupo Bimbo for US$2.5 billion. Armed with nearly $5 billion from recently announced sales and cash on hand, Canada?s leading bakery, supermarket operator and luxury retailer said it is going shopping for bargains. The company said it is considering buying up the rest of Loblaw Cos. Ltd., boosting its frozen bakery business, or even investing in the luxury goods business. Investors believe Weston could use the proceeds of this recent sale to buy up the 36.7% of Loblaw it doesn't already own. http://www.thestar.com/printArticle/551925 Source: Canadian Grocer E-Newsletter, Dec. 12, 2008

Empire Second-Quarter Profit Increases
Empire Co., the owner of Canada?s second-biggest supermarket chain, said second-quarter profit rose 13% as its Sobeys food stores benefitted from a lull in food-price competition among grocers. Net income increased to $65.7 million from $58.4 million a year earlier, the Stellarton, Nova Scotia-based retailer said in statement. Revenue for the three months through Nov. 1 advanced 7% to $3.73 billion. http://www.bloomberg.com/apps/news?pid=20601082&sid=aJec6jzW.K9o&refer=canada Source: Canadian Grocer E-Newsletter, Dec. 12, 2008

Union Certified at Saskatchewan Wal-Mart Store
Weyburn, Sask., is now home to the only unionized Wal-Mart in Western Canada after a five-year battle between the company and union. The retail store in southeast Saskatchewan has been officially certified, according to a 71-page decision from the Saskatchewan Labour Relations Board. The company, though it plans to fight the decision, has been ordered to begin negotiating a contract with the United Food and Commercial Workers union (UFCW). Wal-Mart had disputed the union's April 2004 certification application before the labour board and the courts, including two bids before the Supreme Court of Canada. Wal-Mart Canada said it will appeal the ruling to unionize, pointing out that many of the employees who signed union cards no longer work at the Weyburn store. http://www.cbc.ca/canada/montreal/story/2008/12/09/wal-mart.html?ref=rss Source: Canadian Grocer E-Newsletter, Dec. 12, 2008

More Shoppers Turning To Kosher Items
The kosher food market is in the midst of a record boom. The business is worth $575 million in Canada, according to a USDA Foreign Agricultural Services study, and growing annually by almost 20%. In 2007, Chicago-based food consultancy Mintel's Global New Products Database reported that "kosher" was the most frequently used claim on new products launched in the U.S. and Canada, more popular than "all natural," "organic," "low fat" and even "no additives or preservatives." Many consumers aren't aware that roughly 65% of all products on supermarket shelves are now certified kosher. Perrier, Heinz ketchup and President's Choice taco shells are among kosher certified items. http://www.citynews.ca/news/news_29971.aspx Source: Canadian Grocer E-Newsletter, Dec. 12, 2008

Bigger Profits for Metro/A&P
Bigger Profit for Metro as Rebranding Rolls Out Metro Inc. is expecting to ring in a stronger holiday-shopping season as intense competition in Ontario has declined from last year. The supermarket chain said it's well positioned to compete with discount and conventional store banners in Quebec and Ontario. Montreal-based Metro's summer-quarter profit soared 25.5% to $72.3 million from year-ago earnings that were reduced by the integration of A&P stores. Profit in the 12 weeks ended Sept. 27 was $2.48 billion in sales. That was up from $57.6 million in the year-ago period, when sales were $2.43 billion. Excluding one-time items, notably the A&P Canada acquisition-related costs a year ago, profit was up 8.2 % from last year. http://www.theglobeandmail.com/servlet/story/ LAC.20081120.RTICKERMETRO20//TPStory/Business Source: Canadian Grocer E-Newsletter, November 21, 2008

Canadian Tire to Test Groceries
Canadian Tire Corp. Ltd. is considering an expansion into the grocery business. The retailer will start testing a range of foods, from bread and cereal to milk and frozen pizza, at two Ontario stores next month, in a bid to tackle a consumer segment thought to be resilient to economic downturns. Mike Arnett, who heads its retail division, said that grocery is a sector that is of growing interest to the retailer. "It wouldn't be unreasonable to expand that, going forward," he said. ttp://www.theglobeandmail.com/servlet/story/LAC.20081028.RTIRE28/TPStory/Business Source: Canadian Grocer E-Newsletter, Oct. 31, 2008

PepsiCo Reorganizes Structure
PepsiCo businesses in Canada are moving to a realigned organizational structure to strengthen the company?s current leadership position and drive future growth. Frito Lay Canada and Pepsi-QTG Canada, are reorganizing into two new operating units to align with the rest of the Americas. PepsiCo Americas Foods Canada (PAFC) will include Frito Lay Canada and the Quaker Foods & Snacks business. Marc Guay, currently president of Frito Lay Canada and a 22-year company veteran, will become president of PAFC. PepsiCo Americas Beverages Canada (PABC) will include Pepsi-Cola Canada, Gatorade and Tropicana. Stacy Reichert, currently president of Pepsi-QTG Canada and an 18-year PepsiCo executive, will become President of PABC. Source: Canadian Grocer E-Newsletter, October 24, 2008

Saputo to Buy Weston's Neilson Unit
Cheesemaker Saputo Inc. has agreed to buy the Neilson Dairy unit from George Weston Ltd. for $465 million and will become the biggest milk producer in Canada. The acquisition will add about $600 million in annual dairy sales, increasing total revenue by about 12%, Montreal-based Saputo said in a statement. The Neilson Dairy deal will bulk up Saputo's presence in the Ontario fluid milk and cream market, said a Saputo spokeswoman. http://www.theglobeandmail.com/servlet/story/LAC.20081023.RSAPUTO23/ TPStory/Business Source: Canadian Grocer E-Newsletter, October 24, 2008

Alberto Culver Announces Noxzema Acquisition
Alberto Culver Company announced that it had closed the transaction to acquire the worldwide rights and trademarks to the Noxzema skin care brand from The Procter & Gamble Company, which includes the existing business in the United States, Canada and portions of Latin America. Procter & Gamble will continue to operate its existing Noxzema shave care, antiperspirant/deodorant, body wash and body soap business in portions of Western Europe. http://www.marketwatch.com/news/story/alberto-culver-announces-completion-noxzema/ story.aspx?guid=%7BFF9433EE-BDA6-4F2A-8DCA-C3FE34571513%7D&dist=hppr Source: Canadian Grocer E-Newsletter, October 3, 2008

Metro Banner Launches in Ontario
With the conversion of six Dominion locations in Toronto, the Metro banner was launched in Ontario last week. This evolution is part of a strategy adopted following the acquisition of A&P in 2005 that strives to make Metro the largest grocery banner in Ontario. Its five conventional grocery banners in Ontario (Dominion, A&P, Loeb, The Barn and Ultra) will all fall under the Metro banner over the next 15 months. All of the Dominion, Ultra and The Barn stores will be converted before the end of the year, while Loeb stores will be converted during the first half of 2009, and A&P stores will be converted by the end of 2009. At present, the 158 Ontario locations with the Metro name will be added to the 218 Metro stores in Quebec. Food Basics stores are not affected by these changes because they fall into the discount stores category. http://www.globeinvestor.com/servlet/story/CNW.20080925.C8375/GIStory Source: Canadian Grocer E-Newsletter, October 3, 2008

Wal-Mart Applies to Open Bank in Canada
Wal-Mart Canada Corp. has applied for a licence to set up a bank, a move that would allow the retail giant to expand financial services in the country. The retailer's Canadian unit applied to the minister of finance to establish a bank under the name Wal-Mart Canada Bank and, in French, La Banque Wal-Mart du Canada. Wal-Mart would have competition in the Canadian banking business; Loblaw Cos., the country's largest supermarket chain, and auto-supplies retailer Canadian Tire Corp., have each obtained charters to operate banks that offer loans through their credit-card operations. http://www.canada.com/montrealgazette/news/business/story.html? id=937b5d4d-9fa8-4e62-94ec-4e99311de4cd Source: Canadian Grocer E-Newsletter, September 26, 2008

Sobeys Launches its Own Card
Grocery banner Sobeys Inc. is the latest retailer to enter the co-branded credit-card segment. The Nova-Scotia based grocery chain announced it is launching a Club Sobeys loyalty card and a Club Sobeys MasterCard at its 194 Sobeys banner stores in Ontario and Western Canada. Club Sobeys members will earn one point for every dollar spent, with additional opportunities to earn bonus points through in-store product promotions. Points are redeemable for in-store savings at the checkout counter, as well as food-related rewards from the retailer's online catalogue. They can also be automatically converted into Aeroplan Miles. http://www.financialpost.com/story.html id=794995 Source: Canadian Grocer E-Newsletter, September 26, 2008

Metro to Price Match on Staple Items
Metro Inc. said that its Food Basics discount stores will be competitive in price-matching staple products as it faces stiff competition from rivals such as Wal-Mart Canada . CEO Eric La Fleche said during a retail conference that Metro has already matched prices on milk and has cut its price on bread to below its competitors'. Late last month, Wal-Mart decided to cut prices on food staples such as milk and bread in Ontario, Canada's most populated province, in a bid to attract consumers who have been hit hard by the economic slowdown. http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN1651345820080916 Source: Canadian Grocer E-Newsletter September 26,2008

Analyst Says Canadian Grocery Shares Worth a Look
Investors are warming once again to the shares of Canadian food retailers as a profit squeeze from food inflation nears an end, according to a Dundee Capital Markets analyst. In the recent past, intense competition has prevented Canadian supermarket operators from passing on price increases to customers and many of them cut prices to stay competitive as discounter Wal-Mart expanded its food business in Canada. But that trend reversed in the second quarter, said Dundee portfolio strategist and quantitative analyst Martin Roberge. "Retail food prices are posting their strongest year-to-date advance in years, 5.5%, and are now surpassing (the rate of) of raw food inflation, 2.9%," he said in a note. "In other words, the squeeze on companies' margins from soaring food inflation is nearly over." http://ca.reuters.com/article/businessNews/idCAN1244105620080912 Source: Canadian Grocer E-Newsletter, September 26, 2008

Shoppers to Launch Luxury Beauty Chain
Shoppers Drug Mart Corp. is preparing to launch a free-standing luxury beauty chain later this year. The Murale stores will feature premium skin care, cosmetics and fragrances, along with expert service, for customers willing to pay for them. Two Murale stores will open this year, the first in Ottawa's Place D'Orleans mall this November, followed by a flagship store in Montreal's Galerie Place Ville-Marie. Five to seven more stores are slated to open in 2009 in major urban centres, which could include Toronto, Calgary and Vancouver. The stores will be between 5,000 to 8,000 square feet, and will include a pharmacist and a small pharmacy. http://www.reportonbusiness.com/servlet/story/RTGAM.20080902.wmurale 0802/BNStory/Business/?cid=al_gam_nletter_maropen Source: Canadian Grocer E-Newsletter, September 5, 2008

Wal-Mart Cuts Staple Food Prices
Wal-Mart Stores Inc. said it would cut prices on bread, milk, butter and eggs in the province of Ontario, putting pressure on its rivals. The discount retailer said price cuts of up to 35% on staple foods in some locations would help consumers in the heavily industrialized province. Of its 104 stores in the province, 22 are Supercentres with a broad range of groceries, with the remaining traditional stores carrying a more basic selection. http://ca.reuters.com/article/businessNews/idCAN2939973620080829 Source: Canadian Grocer E-Newsletter, September 5, 2008

Loblaw Chooses Distribution Hub
Loblaw Cos. Ltd. has chosen Saskatchewan as the new location for its western Canadian distribution facility. This facility will be located adjacent to the Canadian Pacific Railway. The announcement is a direct result of the intermodal facility announced last December, according to Saskatchewan Premier Brad Wall. Construction on the centre is expected to begin this fall. The new distribution centre is considered great news for the province, both in terms of jobs and economic momentum, said Wall. Source: Canadian E-Newsletter, August 8, 2008

Metro to Drop A&P and Dominion Names
Metro Inc. announced that it will merge its five conventional food store banners in Ontario under the Metro name starting in September 2008. The launch of Metro in Ontario will be supported by a $200 million investment in upgraded store facilities, food offering and marketing to create the province's largest grocery banner with 158 stores. Over a 15-month period, all current Dominion, A&P, Loeb, The Barn and Ultra banners will be converted to the Metro name. The only banner not included in the change is Food Basics, which competes in the discount food segment.http://www.cbc.ca/consumer/story/2008/08/07/metro.html Source: Canadian E-Newsletter, August 8, 2008

Metro Net Earnings Increased in Q3
Metro Inc. realized net earnings of $92.6 million in the third quarter of 2008, compared with $89.3 million for the corresponding period of the previous fiscal year, an increase of 3.7%, and fully diluted net earnings per share of $0.82 compared with $0.77 last year, an increase of 6.5%. The Company's 2008 third quarter sales of $3,370.0 million were up 0.9% over the $3,341.0 million for the corresponding quarter last year. Excluding decreased sales of tobacco products, sales were up 1.5% over last year. Source: Canadian Grocer E-Newsletter, August 8, 2008

Loblaw Moves Ahead with 40-store Expansion
Loblaw Cos. Ltd. reported a modest 1.5% increase in sales, but profit rose 18% as Canada's largest grocery-store chain faced reduced restructuring charges during the quarter. The Toronto-based company reported a rise in profit to $140-million, from $119-million in the year-earlier quarter. Loblaw announced in April that it plans to hire an additional 1,000 employees, and Allan Leighton, Loblaw president, said the company is continuing with plans to open 40 new stores under its No Frills discount banner in 2009. ttp://www.nationalpost.com/todays_paper/story.html?id=681288 Source: Canadian Grocer E-Newsletter, August 1, 2008

M&M Meat Shops to Open Stores in U.S.
M&M Meat Shops Ltd., the country's largest specialty frozen foods retailer, is taking its concept to the United States under the name MyMenu to reflect that its products go beyond just meat. The 467-store chain will announce that it is launching its first five stores next month in Madison , Wis., an area that it says is similar in climate and demographics to its home base of Kitchener, Ont. http://www.theglobeandmail.com/servlet/story/ RTGAM.20080730.wrmm30/BNStory/Business/ Source: Canadian Grocer E-Newsletter, August 1, 2008

Shoppers Q2 Results Beat Bay Street Estimates
Shoppers Drug Mart Corp. posted second-quarter results that beat Bay Street estimates and showed up very well against other major publicly owned drugstore chains in North America. Same-store prescription sales climbed 6.4% from a year earlier, while front-of-the-store sales rose 3%. Vishal Shreedhar, who follows Shoppers for UBS Securities Canada Inc., compared Shoppers' latest numbers with those of Walgreen Co., Rite Aid Corp., CVS Caremark Corp. and Jean Coutu Group Inc. and found they are among the strongest in North America. Rite Aid, for example, saw its drug sales increase just 1.9% in the latest quarter and its front-of-the-store sales increase by just 0.8%. http://www.theglobeandmail.com/servlet/story/LAC.20080722.REDGE22//TPStory/Business Source: Canadian Grocer E-Newsletter, July 25, 2008

New Food Labels for Allergy Sufferers
Allergy sufferers will have a clearer indication whether prepackaged foods contain such ingredients as peanuts, milk, eggs, wheat and shellfish under new labelling requirements unveiled by the federal government. The announcement, made by Health Minister Tony Clement, comes after extensive lobbying from food-allergy groups. Mr. Clement said the more stringent regulations represent an important step forward, adding that, for some Canadians, allergen information can be “a matter of life or death.” Source: Canadian Grocer E-Newsletter July 25, 2008

Campbell Purchases Wolfgang Puck Soup
Campbell Soup Co. has purchased the Wolfgang Puck soup business from Country Gourmet Foods. Campbell said it struck a master licensing agreement with Wolfgang Puck Worldwide, Inc. for the use of the Wolfgang Puck brand, one of the leading organic brands in the U.S., on soup, stock, and broth products in North American retail locations, with an option to extend the brand into other related categories and channels. Source: Canadian Grocer E-Newsletter, July 4th. 2008

Unilever in Talks to Sell Laundry Business
Unilever is in late-stage talks to sell its North American laundry business to Huish Detergents. The deal would turn the category's leading U.S. private-label manufacturer into the biggest premium-brand challenger to Procter & Gamble Co. The deal would also position equity fund Vestar Capital Management as the leader in North American laundry products, potentially ahead of Henkel, owner of Church & Dwight. Source: Canadian Grocer E-Newsletter, July 4th. 2008

Smucker Acquires Folgers from P&G
J.M. Smucker Co. announced that it would acquire the Folgers coffee business from Procter & Gamble Co. for stock valued at US$2.95-billion plus the assumption of $350 million in debt. The deal would give P&G shareholders a 53.5% stake in the company. Smucker said the deal would add to fiscal 2009 earnings per share by about 9% if the company owns Folgers the entire fiscal year, excluding merger and integration costs, but including the effect of the special dividend. The addition of Folgers will add to the products Smucker brings to retailers ¿ allowing for more marketing options, while Folgers also is well known to consumers, Richard Smucker, president and co-chief executive of Smucker, said. Source: Canadian Grocer E-Newsletter, June 6, 2008

Coca-Cola Deploys Canada's Largest Hybrid Trucks
Coco-Cola Bottling Company announced that it will introduce 10 heavy-duty hybrid-electric trucks to its fleet in Toronto. The model GVW 33000 trucks, the largest hybrid-electric delivery vehicles in North America, improve fuel consumption by 37%, reduce emissions by 32% and create less noise and emissions when stopped in traffic. Coca-Cola Bottling Company will welcome a total of 22 heavy-duty hybrid delivery vehicles to its operations across Canada. In 2008, Coca-Cola Enterprises Inc. will add 120 of these vehicles to its fleet, bringing its total to 142. Source: Canadian Grocer E-Newsletter, June 6, 2008

Expansion Plan at Wal-Mart Canada
Wal-Mart Canada Corp., which will open its 300th store in Canada this spring, has announced plans for up to 27 new real estate projects by the end of January next year. Half of the projects will involve the building of new stores – with almost all of them classified as "supercentres" – and will sell a full range of groceries in addition to general merchandise. The rest will involve the expansion or relocation of existing stores, according to the retailer. http://www.reportonbusiness.com/servlet/story/ RTGAM.20080508.wwalmart0508/BNStory/Business/home Spurce: Canadian Grocer E-Newsletter, May 14, 2008

George Weston Profit Up After Loblaw Cuts Costs
George Weston Ltd.'s first- quarter profit rose 26% after its Loblaw food unit reduced expenses. Net income climbed to $131 million in the period through March 22 from $104 million a year earlier. Sales rose to $7.34 billion from $7.22 billion. Weston's Loblaw Cos. Ltd. reported earnings gained for the second consecutive quarter as restructuring costs decreased. Weston's bakery unit closed inefficient bakeries and raised prices as costs for flour advanced and it developed whole-wheat breads. http://www.bloomberg.com/apps/news?pid=20601082&sid=ar5VljSdwDLM&refer=canada Source: Canadian Grocer, E-Newsletter, May 14, 2008

Sobeys Debuts 'Urban' Store in Edmonton
Sobeys unveiled its "Urban Fresh" store format in Edmonton last week. The 18,000-sq.-ft. store is Sobeys' first banner in the downtown area and features a smaller selection than the company's suburban grocery stores, while emphasizing fresh and prepared foods in a European-inspired design. Reports said Sobeys is preparing a second Urban Fresh store in Edmonton to open later this year. Source: Canadian Grocer E-Newsletter, May 12, 2008

Baskin-Robbins Co-founder Passes Away at 90
Irvine Robbins passed away at his home in California last week at the age of 90. Robbins was born in Winnipeg in 1917 and opened his first ice cream store in 1945. His brother-in-law, the late Burton Baskin, opened his own ice cream store in Pasadena a year later and the two eventually joined forces. Source: Canadian Grocer E-Newsletter, May 12, 2008

Shoppers to Open New Beauty Stores
Shoppers Drug Mart is going after a higher stake in the Canadian beauty market by launching a new store banner. Aside from a full-service pharmacy, the new stores are intended to offer an upscale beauty experience with an extensive selection of skin care and dermatological products, full range of prestige cosmetics and fragrance brands. The new banners will not run under the Shoppers Drug Mart name, though a new name has not been made public. Source: Canadian Grocer E-Newsletter, March 28, 2008.

Wal-Mart Plans Biggest U.S. Store
Wal-Mart plans to open its biggest U.S. store on the outskirts of Albany, NY, report US media sources. The store—a two-storey, 260,000 sq.- ft. supercentre—will sell department store merchandise as well as groceries, liquor and provide automotive services. Source: Canadian Grocer E-Newsletter, March 28.2008

Wal-Mart Brand Milk in U.S. Hormone Free
U.S. Wal-Mart Stores Inc. is selling milk free of bovine growth hormone under its own label as part of an expansion of organic and health-oriented goods. The milk will be sold under the Great value brand at Wal-Mart and Sam's Club stores. Source: Canadian Grocer E-Newsletter, March 24, 2008.

GSW Launches Opportunities Pavilion
One of the attractions of Grocery Showcase West, produced by the Canadian Federation of Independent Grocers, will be the launch of the new 2010 Olympic Opportunities Pavilion. The 16 exhibit "super pavilion" will feature unique and innovative products from Western Canada. The trade show, in Vancouver, will take place April 27 to 28. Source: Canadian Grocer E-Newsletter, March 24, 2008.

Wal-Mart set to open 'green' store
BENTONVILLE, Ark. – Wal-Mart Stores Inc. will open its latest generation of energy-efficient test stores this week with a Las Vegas Supercenter that uses new cooling technology to cut overall energy use by up to 45 per cent. The Las Vegas store opening Wednesday builds on advances in earlier pilot stores that reduced energy use in areas including lighting, refrigeration and water flow. The previous pilot stores in the Midwest cut energy use up to 25 per cent compared to a typical Supercenter built in 2005, the year Wal-Mart launched a broad environmental program to reduce energy use and packaging waste and to sell more sustainable products. Wal-Mart said the new Las Vegas store adds to those savings with a new cooling system based on water evaporation for total energy savings of between 35 per cent and 45 per cent. Wal-Mart has said it is the biggest private user of electricity in the world and has huge potential to cut back on greenhouse gases from fossil fuels burned to create electricity. It aims to use technologies proven in the pilot stores to develop a prototype in 2009 for all new Supercenters that will be between 25 per cent and 30 per cent more energy efficient. An outside engineering and efficiency expert said Wal-Mart's advances in saving energy, including the new Las Vegas store, are leading the field for big-box retailers. "This is not just a baby step. This is a big step," said Terry Townsend, past president of the American Society of Heating, Refrigerating and Air-Conditioning Engineers. Townsend said Wal-Mart's pilot stores are important because they show other retailers how to use available technology to improve energy efficiency. Wal-Mart says it is sharing its lessons with retail industry groups. The latest store is built specifically for the arid climate of Western states, where water evaporates faster than in the more-humid East. It uses rooftop cooling towers to chill water that then runs in conduits under the floor of the store. The radiant cooling from the floor replaces traditional electricity-powered air conditioning. The store also incorporates innovations from the previous pilot stores that include recycling heat from refrigerators and combining low-power LED lights in freezer cases with sensors that turn off those lights when no customers are around. Source: Marcus Kabel ASSOCIATED PRESS, Toronto Star March 18, 2008

SDM to Debut Organic Food Line
In the second quarter of this year Shoppers Drug Mart Corp. will debut a new line of organic products called Nativa. According to CEO Jurgen Schreiber, people are buying more organic products and they accept slightly higher prices. A pilot test of Nativa conducted in a handful of stores was successful, according to Schreiber. The line will include 170 packaged food items nationally. Source: Canadian Grocer E-Newsletter, March 7, 2008.

J.M. Smucker to Acquire Europe's Best
The J.M. Smucker Company has announced that it has entered into an agreement, through subsidiary, to acquire Europe's Best, Inc., a privately owed company headquartered in Montreal that specializes in frozen fruit. Europe's Best is expected to add $70 million in net sales and be slightly accretive to earnings for fiscal 2009. Europe's Best's administrative functions will relocate from Montreal to Markham, ON. Source: Canadian Grocer E-Newsleter, March 7, 2008.

J.M. Smucker to Acquire Europe's Best
The J.M. Smucker Company has announced that it has entered into an agreement, through subsidiary, to acquire Europe's Best, Inc., a privately owed company headquartered in Montreal that specializes in frozen fruit. Europe's Best is expected to add $70 million in net sales and be slightly accretive to earnings for fiscal 2009. Europe's Best's administrative functions will relocate from Montreal to Markham, ON.

Sobeys Store at Calgary Polytechnic
Sobeys has opened a convenience store at Calgary's Southern Alberta Institute of Technology Polytechnic. This is the first convenience store for Sobeys in the West. In addition to basic grocery and fresh food items for students and guests staying at on-campus residences, the store will also feature a selection of fresh in-store made meal solutions. Source: Canadian Grocer E-Newsletter, February 29, 2008.

SKUs Sooner to Shelves—Loblaw
Loblaw Cos. Ltd. says it can cut the time it takes to get products on shelves in half by overhauling the supply chain that gets goods from suppliers to stores. A new system, called "Flow," will eventually replace Loblaw's current 'stock and ship' method. The grocery chain also announced plans to revamp stores and drop prices as part of its five -year turnaround strategy. Source: Canadian Grocer E-Newsletter, February 29, 2008.

Grocery Stores Try Digital Coupons
Supermarket chains are experimenting with paperless, or digital, coupons, to help eco-minded shoppers save time and money. Shoppers load the online discounts on to their store loyalty cards, receiving the credit at the checkout. Grocers see the innovation as a way to build customer loyalty, drawing customers to their websites and ultimately, their stores. Kroger Co., the largest traditional grocery chain in the United States, and Procter & Gamble Co., the largest consumer products company, have partnered in a digital coupon trial that began in December. Source: Canadian Grocer E-Newsletter, January 25, 2008

Sears to break into several companies
HOFFMAN ESTATES, Ill. (AP) -- Sears Holdings Corp. plans to reorganize into several companies in another bid to pull the ailing 121-year-old retailer out the doldrums, according to a report published Saturday. The restructuring could create separate units to manage Sears (SHLD, Fortune 500) real-estate holdings and run brands such as Diehard and Craftsman, the Wall Street Journal reported. Edward Lampert, the hedge fund kingpin and Sears Holdings chairman, sees the move as a way to revitalize the company in the face of tough competition from companies like Wal-Mart Stores Inc., (WMT, Fortune 500) the newspaper said, citing unnamed people familiar with the situation. Details, including which units might run the Hoffman Estates, Ill.-based company's 3,800 Sears and Kmart stores in the United States and Canada, weren't clear. Spokeswoman Kimberly Freely issued a short statement Saturday confirming Sears Holdings is "introducing an organizational structure that provides operating businesses with greater control, authority and autonomy." She declined to comment further. Analysts say the changes contemplated by Lampert - who acquired Kmart in 2003 and Sears, Roebuck and Co. in 2005 - run against prevailing trends where retailers try to craft a single, cohesive business image. Sears' problems deepen "He's looking to turn it around by using a different approach," said retail consultant Walter Loeb. "I think it's risky." On Monday, Sears Holdings told investors it would likely post fourth-quarter earnings well below Wall Street forecasts as eroding sales push its profit down as much as 57 percent. It expects to earn between $350 million and $470 million, or $2.59 to $3.48 per share, for the quarter ending Feb. 2 - far less than the $4.43 per share sought by analysts surveyed by Thomson Financial. Sears earned $820 million in the fourth quarter a year earlier. Sears blamed growing competition, a slowdown in the housing market and consumers' credit fears for slumping sales figures. Source: CNN.com January 19, 2008

Canadian Grocer Voted One of Canada's Most Influential Magazines
Canadian Grocer has been named one of Canada's most influential magazines of all time by Masthead magazine, a trade publication covering the Canadian magazine industry. "If a trade magazine's influence is best weighed within the business community it serves, then Canadian Grocer is the watermelon of b-t-b titles in this country," wrote Marco Ursi editor of Masthead in the publication's January/February issue. A panel of five industry experts made the selection. Other magazines on the 20 most influential list were Chatelaine, Maclean's, Flare and Canadian Business. Source: Canadian Grocer E-Newsletter, January 18, 2008

Wal-Mart U.S. to Test Smaller Grocery Stores
Wal-Mart Stores Inc. will open four small-format grocery stores under the name "Marketside" to rival British retailer Tesco. According to Wal-Mart, the new 20,000- sq.-ft. units will open in Arizona this year and are aimed at shoppers who find big stores inconvenient. Some industry observers believe the new format stores are Wal-Mart's way of competing with Tesco's new Fresh & Easy stores just opened in the United States. Canadian Grocer E-Newsletter, January 18, 2008

Ontario Will Not Ban Plastic Bags
Premier Dalton McGuinty of Ontario said his government has no plans to ban plastic shopping bags. However, a Toronto city task force is working on a plan to sharply reduce packaging such as shopping bags, throw away coffee cups and "clamshell" takeout containers. Mayor David Miller said the city does not have the legal jurisdiction to ban in-store packaging. Environmental activists have said that if voluntary measures don't work, they would call for a ban. They have suggested that the province charge 20 cents a bag. Loblaw Cos. Ltd. recently reported that it's on track to achieve its goal of diverting one billion plastic bags a year from landfills. The grocer opened Canada's first bag-less store in Milton, Ont. last August. http://www.thestar.com/article/292025 Source: Canadian E-Newsletter, January 18, 2008

Produce Traceability Lays Groundwork for Standards Program
The steering committee of the Produce Traceability Initiative, launched by the Canadian Produce Marketing Association (CPMA), Produce Marketing Association (PMA) and United Fresh Produce Association (United), has laid the groundwork for a produce traceability initiative. The move is an industry-led effort to adopt traceability throughout the produce supply chain. The committee concluded that an application of common standards across the supply chain is needed to enhance industry-wide traceability, building the next step beyond many of the internal systems that now exist. The committee agreed that the GS1 produce traceability standard is the most efficient worldwide approach to achieve system-wide tracking. A formal timeline for adoption of standards is needed, said the committee. In addition, it concluded traceability standards should be adopted at the case level initially. However, businesses were encouraged to move toward item level coding as feasible. The steering commi! ttee will meet in the next two months to form subcommittees that would address these specific initiatives. Source: Canadian Grocer E-Newsletter, January 18, 2008.

Wal-Mart's Round-the-clock Strategy
During the recent holidays, 190 Wal-Mart stores remained open 24/7. The chain's original plan was to open 80 stores but popular response, said Wal-Mart, encouraged it to more than double the number of stores. Following the holidays, a select number of stores, located in smaller cities as well as the Greater Toronto Area, were chosen to remain open 24/7. Wal-Mart says the new hours will serve shift industry workers and families with tough schedules. Store traffic tends to peak between midnight and 2 a.m. and in the pre-morning rush, starting at about 5 a.m. Source: Canadian Grocer E-Newsletter, January 11, 2008.

Ambitious Growth Plans for Canadian Tire
Canadian Tire plans to open 60 to 70 new stores per year over the next five year, boosting retail revenue by 6% each year. The 468-store chain plans to invest more than $2.6 billion to realize its expansion strategy. The company has experienced healthy results at its gas bars and financial services division helping increase profit 11% to $105 million in the third quarter, despite the impact of Canada's rising dollar on jobs in the manufacturing sector and weaker than usual sales in Quebec and Ontario. Source: Canadian Grocer E-Newsletter, Nov. 30, 2007

Some Wal-Mart Stores to Stay Open 24 Hours a Day
About 80 of Wal-Mart's 298 Canadian stores will open 24 hours a day from Dec. 1 to Christmas Eve. Last year, 59 of its stores were open 24 hours a day for a week starting on Dec. 18. In deciding which stores would be open for 24 hours during the holiday season, Wal-Mart pored over sales date, market information and local bylaws. The company will make public the store locations on a special website, www.walmart24hours.ca, after Dec. 5. In addition to boosting sales, delivering convenience to holiday shoppers was the main driver in the decision to open the stores, said Wal-Mart.Source: Canadian Grocer E-Newsletter, Nov. 30., 2007

A&P U.S. Sells Its Metro Inc. Shares
The Great Atlantic & Pacific Tea Company has sold all of its 11,726,645 shares of Metro Inc. for approximately US$347 million. Some 1,500,000 of the shares were bought by Metro. The sale will help A&P finance its purchase of Pathmark Stores in the United States. Montvale, N.J.-based A&P expects that it would complete its US$1.3 billion acquisition in early December. The A&P/Pathmark transaction was delayed by anti-trust investigation by the Federal Trade Commission (FTC). A&P has now agreed to sell an unspecified number of stores at the behest of the FTC. A&P operates 337 supermarkets and Pathmark has 140 in New Jersey, New York and Philadelphia. Source: Canadian Grocer E-Newsletter, Nov. 30, 2007

Clorox Co. Buys Burt's Bees
Clorox Co. has purchased beauty product manufacturer Burt's Bees for US$925 million. Burt's Bees, a North Carolina-based company, manufactures beauty products that contain a least 95% natural ingredients. The purchase is part of the Clorox strategy to expand into the natural beauty products industry. Source: Canadian Grocer E-Newsletter, November 2, 2007

GIC Trade Show and Conference "Fantastic"
John F.T. Scott, president and CEO of the Canadian Federation of Independent Grocers, which produces the Grocery Innovations Canada (GIC) trade show and conference, described this year's (Oct. 29 to 30) version of the gathering in Toronto as "fantastic." He said that GIC 2007 "was the most valuable event Canadian independent grocers have ever attended. The board of directors was overwhelmed by the positive feedback received." The gathering featured 500 exhibits, panel discussions, notable speakers and award ceremonies. Source: Canadian Grocer E-Newsletter, November 2, 2007

Wal-Mart Canada to Introduce George Home
George Home is scheduled to arrive soon into Wal-Mart Canada stores. United Kingdom-based George Home brand includes bed, bath, dining and home accessories, with 270 product 'lines' averaging $20 million per month in sales. With Wal-Mart sales slowing down in the United States, the company said that 80% of new store square-footage expansion will take place in Canada, Mexico and China. Source: Canadian Grocer E-Newsletter, Oct. 31, 2007

Flaherty Pressures Retailers to Lower Prices
Finance Minister Jim Flaherty has urged Canadian retailers to lower their prices to reflect the strong dollar but many say they don't control costs. Retailers say their suppliers are charging unfair rates and they're in a difficult predicament. If they lower their prices to reflect the strong dollar, they'll lose money. But if they keep prices the same, they'll lose customers to the U.S. Some retailers have already started lowering prices in response to a massive consumer backlash and rise in cross-border shopping. Wal-Mart Canada has rolled back prices on about 8,000 items in the past few months, ranging from 10 to 25%, and is selling some video games at the U.S. price. Zellers has cut prices on 250 household products. "With the strength of the loonie and customer expectations climbing, there is a new standard for price leadership," said Mario Pilozzi, Wal-Mart's CEO. Source: Canadian Grocer E-Newsletter, Oct. 31, 2007

Lassonde Acquires McCain Foods Ready-to-Drink Fruit Drinks
A. Lassonde Inc. and parent company Lassonde Industries Inc., based in Rougemont, Que., has announced that it has concluded an agreement to acquire assets related to the manufacture and marketing of McCain Foods (Canada) ready-to-drink fruit juices and fruit drinks. The deal is worth $13.9 million and will also see Lassonde acquiring a juice plant in Calgary, production equipment being transferred from Toronto and Grand Falls, N.B., and trademarks and licensed use of the McCain trademark for periods of up to three years. Source: Canadian Grocer E-Newsletter, Oct. 31, 2007

Ethanol Popularity Increases Food Prices
Conversion of corn to ethanol is raising food prices while delivering dubious energy benefits, according to Jeff Rubin, chief economist at CIBC World Markets. Corn prices have rocketed by 60% in the past two years as United States producers have expanded capacity. Rubin said that next year food inflation will hit the 5% mark and in 2009 it will approach 7%, its highest level in more than 25 years. "Soaring corn prices not only pass directly into animal feed costs and corn-based food prices like tortillas, but they are having an impact on other grain prices as farmers attempt to expand corn production at the expense of other crops," said the economist. Source: Canadian Grocer E-Newsletter, Oct. 31, 2007

Unit Sales Help Raise Maple Leaf Foods Profit
Maple Leaf Foods posted significant profit ($220.4 million) in its third quarter helped by the sale of its livestock-feed business. The strong Canadian dollar and the rising grain costs hurt the company's meat and bakery business. The profit included $217.7 million gain from the sale of its livestock business to a Dutch food group. "The food industry continued to battle unprecedented food inflation related to wheat, corn and other input costs, in addition to the ongoing rise in the Canadian dollar," said chief executive Michael McCain. Source: Canadian Grocer E-Newsletter, Oct. 31, 2007

GIC '07 Promises Fresh Ideas
The 8th annual Grocery Innovations Canada (GIC) trade show and conference (Oct. 29-30) at the Toronto Congress Centre, promises to offer attendees plenty of information on trends, issues and innovations impacting grocery stores. The GIC '07 will feature more than 500 exhibits and will attract more than 6,000 grocery industry representatives. Speakers at the conference will include Tim Penner, president of Proctor & Gamble and Bill McEwan, president & CEO of Sobeys. A panel discussion will also provide insights into some of the best-managed companies in Canada and will be comprised of Frank Coleman of Colemans Food Centre, Newfoundland; Anthony Longo of Longo Brothers Fruit Markets in Ontario; and Milford Sorensen of Thrifty Foods in British Columbia (stores recently sold to Sobeys.) A luncheon on Monday will honour industry achievers including entrepreneur, Jim Pattison, who ! will be receiving the Canadian Federation of Independent Grocers' "Spirit of the Independent Award." Source: Canadian Grocer E-Newsletter, October 5, 2007.

Carnation Acquired by J.M. Smucker
The J.M. Smucker Company has announced its subsidiary, Smucker Foods of Canada Co., has acquired the Canadian Carnation brand canned milk products business from Nestlé Canada. Terms of the transaction were not disclosed. The current line of Carnation branded milk products marketed in Canada has an annual net sales of approximately $50 million. Source: Canadian Grocer E-Newsletter, October 5, 2005.

Health Canada Looks to Clearer Labels
Health Canada and the Canadian Food Inspection Agency are responding to consumers who are confused by the statements about the possible presence of allergens in food. Health Canada said it is reviewing the labelling of items often associated with food allergies and allergic-type reactions. Food manufacturers, importers, distributors and retailers are being notified of the proposed changes. Proposed terms include "may contain..." or "Not suitable for consumption by persons with an allergy to..." Source: Canadian Grocer E-Newsletter, October 5, 2007.

High Liner Swings to Profit in Q4
High Liner Foods Inc. says it has rebounded in its fourth-quarter, posting a profit of $1.3 million, which compares to a loss of $44.5 million that the company posted a year ago. In Q4 of 2005 the Lunenburg, N.S.-based company was impacted by a huge write-down related to the sale of its Italian Village pasta business. With renewed focus on its core seafood business, High Liner said sales for the quarter ending December 31, 2006, increased 5.5% reaching $65.7 million. Source: Canadian Grocer E-Newsletter, February 23, 2007.

Canadian Grocery Shoppers Ready for RFID, Survey
Although RFID tagging is still in the experimental stage in Canadian grocery stores, a new survey by TNS Canadian Facts reveals Canadians are keen on the technology. The market information group said its recent online survey of 1,056 primary grocery shoppers revealed that three-quarters of respondents said they would be willing to try out a checkout lane enabled with RFID technology and more than half (56%) said they would prefer using an RFID lane to ring up their purchases. With industry studies showing that waiting times at checkouts could be reduced by 30% with this technology, consumers are attracted to the convenience and time-saving benefits of RFID, says TNS. And while 40% of those surveyed had some concerns over security, privacy and safety regarding RFID, TNS said about three-quarters of respondents were more worried about the cost of the technology and that it might not work properly. Source: Canadian Grocer, E-Newsletter, February 23, 2007.

U.S. retailer buyout activity increasing in Canada
Without a doubt, we are really seeing the Americanization of the Canadian retail sector. And with the world awash in private-equity money and cheap credit, more potential foreign buyers have put Canadian retailers on their radar screens. In the past six years, foreigners have bought some of Canada's biggest and best-known retailers. Much has obviously changed since Wal-Mart entered Canada in 1994, not least that Canadians have learned to expect better from their retailers. Now that shoppers have become better served, investors are starting to benefit as well. Thanks to the strength of the Canadian economy, retail has ended its long drought as one of Canada's most moribund sectors for investors. The retailers and buyout firms see a Canadian economy that is strong - and possibly more resilient than the economy of the United States. The retail sector is also less competitive than it is in the U.S., which has more stores per capita. All that is missing are Canadian buyers. There are few private-equity firms of any consequence in Canada. National Post - 12/23/06 Prediction: Supermarkets to accommodate drive-through shoppers Source: Vancouver Sun Expect a new kind of fast-food in 2007. This year a major supermarket group will introduce a drive-through concept that will allow working moms and other time-challenged consumers to buy prepared and ready-for-microwave meals from the comfort and security of their ride. That prediction comes from Harry Balzer, vice-president of the consumer marketing research firm NPD Group and an expert on food and diet trends who has studied North American eating habits for 25 years. Vancouver Sun - 01/08/07 Source: Lana Holmes & Associates Ltd. with Tim Carter & Associates Inc.

More changes in high places for Loblaw
Troubled Loblaw [has taken] another big step in trying to restore its battered supermarket franchise. In comes the stylish Dalton Philips, 38, as Loblaw's chief operating officer, after a short stint as CEO of Brown Thomas, the 157-year-old Irish retailer that, like Loblaw, is part of the Weston family empire. Out goes Dave Jeffs, 48, a 28-year Loblaw veteran whose major sin is that he was part of a senior team headed by former president John Lederer, which is being tarred with the faulty execution of the chain's Stop Wal-Mart strategy. The changes herald a revolution in style as much as substance, as new Loblaw boss, 34-year-old family scion Galen Weston Jr., puts his stamp on leadership. Loblaw spokesman Geoff Wilson said there will be more executive changes as Mr. Weston Jr., the executive chairman, continues to look at ways to streamline his company and restock his management ranks. Source: Lana Holmes & Associates Ltd. with Tim Carter & Associates Inc. Globe and Mail - 01/06/07

Canadian food retailers jumping onto high-tech bandwagon
Canadian retailers are shopping for the future [and] store owners are now turning their attention to high-tech marvels that will ultimately transform the shopping experience. In this new landscape, self-serve checkouts will get smarter, displays will point customers directly to the product they're looking for and downloading will no longer be limited to Internet websites. The change has already started. In Wal-Mart's new Canadian Supercentres - larger stores that offer a full line of groceries - shoppers have already been introduced to 32-inch LCD screens strategically placed above the cash registers. Initially, this in-store television network will broadcast a combination of store-specific advertising content and company information directly to customers while they shop. As the program expands, larger 46-inch LCD screens will start to appear in departments such as fashion and produce. They will feature department-specific information ranging from updates on the newest clothing items to food-preparation tips. Source: Lana Holmes & Associates Ltd. with Tim Carter & Associates Inc. Business Edge -12/22/06

Loblaw Liquidating Excess Non-Food Goods
Loblaw says it will liquidate its excess inventories of kitchen accessories, bed and bath products, electronics and more—a move that will cost the retailer a pre-tax charge of between $100 and $120 million in Q4. Toronto-based Loblaw will continue selling these types of products, but says eliminating the excess inventory will help improve the efficiency of its supply chain operations. The retailer, which has been struggling with supply chain issues as it faces heightened competition from Wal-Mart, said it is focused on simplifying, innovating and growing its business. Source: Canadian Grocer E-Newsletter, Jan. 5, 2007.

Nestlé to Buy Novartis Food Unit
The world's biggest food and drink company, Nestlé SA has reached a US$2.5 billion deal to buy the medical nutrition unit of Swiss pharmaceutical giant Novartis. The deal does not include, however, Novartis' infant nutrition division, Gerber Products. Nestlé says the acquisition is in line with its focus on becoming a nutrition, health and wellness company and follows its recent US$600 million purchase of U.S. food company Jenny Craig. The deal, which is still subject to regulatory approval, is expected to wrap up in the second half of 2007. Source: Canadian Grocer E-Newsletter, December 15, 2006.

7-Eleven Plans North American Expansion
Competition from supermarkets and rival c-stores has prompted 7-Eleven to start serving up hot meals and to expand its number of North American outlets by 30%. North America's largest convenience store chain says it will open about 2,000 new stores in Canada and the United States by 2010; 7-Eleven currently operates 6,100 outlets in the two countries. The company also said it will cater to North America's growing appetite for prepared meals by offering such things as hot pasta dishes, meat loaf and mashed potatoes at it outlets. Source: Canadian Grocer E-Newsletter, December 15, 2006.

Sobeys Posts Slightly Higher Earnings
Higher sales helped Sobeys' second-quarter earnings edge up slightly to $47.2 million from $45.8 million a year ago. The Stellarton, N.S.-based grocery retailer also reported that sales for the period ending November 4, 2006 increased 2% to $3.25 billion from $3.19 billion while same-store sales were up 2.4%. Sobeys' parent Empire Company also reported a profit rise with earnings reaching $57.2 million, up from $48.6 million a year ago, with revenues reaching $3.31 billion (up 2%). Source: Canadian Grocer E-Newsletter, December 15, 2006.

Sobey Brothers Named to Hall of Fame
David Sobey, chairman emeritus of Sobeys Inc., and Donald Sobey, chairman emeritus of Empire Company Ltd., are to be inducted into The Canadian Business Hall of Fame. Both will enter the Hall of Fame—which recognizes outstanding business achievements and contribution to society—in 2007 as Sobeys marks its 100th year. The two brothers follow their father Frank Sobey who was inducted to The Canadian Business Hall of Fame in 1984. Source: Canadian Grocer E-Newsletter, December 15, 2006.

Get Ready for Grocery Showcase West
April 15-16: CFIG's Grocery Showcase West, 18 th Annual Spring Conference and Trade Show, Vancouver Convention & Exhibition Centre, www.cfig.ca. Source: Canadian Grocer E-Newsletter, December 11, 2006.

Five Retailers Elected to CFIG's Board
The Canadian Federation of Independent Grocers has announced the election of five retailers to its board of directors: John Briuolo of Quality Foods; Joey Longo, Longo Bros. Fruit Markets; Pete Luckett of Pete's Frootique; Dave Powell, Powell's Supermarket Ltd.; and Mark Vickars of Choices Market. The association also announced that Bill Dunne, president of Acosta Canada has been elected to its Associate Member's Council. Source: Canadian Grocer E-Newsletter, December 11, 2006.

Coca-Cola Appoints COO
The Coca-Cola Co. has named Muhtar Kent its president and chief operating officer, filling a role that has been vacant since 2004. Kent, formerly the president of the company's international operations, will now oversee all of Coca-Cola's worldwide units. Alexander Douglas of the North American unit will report to Kent. Source: Canadian Grocer E-Newsletter, December 11, 2006.

Wal-Mart Sets its Sights on India
India appears to be the next frontier for retail giant Wal-Mart Stores Inc. as the company unveils plans to open hundreds of stores to grab its share of India's estimated $250 billion retail market. Wal-Mart has joined forces with Indian telecommunications firm Bharti Enterprises to help it get past restrictions in place that hinder foreign companies from setting up retail chains. Although financial terms of its arrangement with Bharti have not been revealed it is expected that the stores in India will be set up under franchise agreements. According to reports, the first stores are expected to appear in August 2007. Wal-Mart's foray into India—one of the world's fastest-growing retail markets and still largely dominated by "mom and pop" operations—follows disastrous stints in Germany and South Korea. Source: Canadian Grocer E-Newsletter, December 1, 2006.

Maple Leaf to Shed Animal Feed Business
Maple Leaf Foods Inc. has enlisted the help of a financial advisor to assist in the sale of its Maple Leaf Animal Nutrition and related businesses. The company announced plans to shed the business in October as it turns its focus to the value added meats and meals markets. Maple Leaf said it plans to keep only those feed mills necessary to service its own hog production operations in Western Canada. The process of selling the unit, which is Canada’s largest feed business, is expected to start in January. Source: Canadian Grocer E-Newsletter, December 1, 2006.

Couche-Tard Posts 35% Profit Jump
Higher margins on gasoline sales as well as the expansion of its U.S. network helped Alimentation Couche-Tard's second-quarter profit jump 35% to US$74.7 million. Quebec-based Couche-Tard—North America's third-largest convenience store operator—said revenue during the Q2 period ending October 15, climbed 15.4% to US$2.76 billion, compared to US$2.39 billion a year ago. During the second-quarter Couche-Tard added 157 c-stores to its network, while shuttering 67. Source: Canadian Grocer E-Newsletter, November 24, 2006.

Sobeys to Build New Distribution Centre Near Toronto
Sobeys Inc. has announced plans to build a state-of-the-art grocery distribution centre in Vaughn, Ont.—north of Toronto. The Nova Scotia-based retailer says the new facility—which is expected to be fully operational in 2009—to significantly increase its warehouse and distribution capacity, while reducing costs. Sobeys also said "a significant number" of jobs at its Whitby and Milton (both in the Greater Toronto Area) distribution centres could be eliminated by 2009. Source: Canadian Grocer E-Newsletter, November 24, 2006.

Higher Sales Boost George Weston's Q3
Canadian food processing and distributing giant, George Weston Ltd. says its third-quarter net income rose nearly 15% to $226 million, helped by higher sales during the period. Toronto-based Weston, which owns 63% of Loblaw Cos. Ltd., said sales were up 4% reaching $10.9 billion during the third-quarter ending October 7, up from $9.69 billion a year ago. Source: Canadian Grocer E-Newsletter, November 24, 2006.

Golden Pencil Winners Honoured
Anthony Longo of Longo Bros. Fruit Markets and Christi Strauss of General Mills Canada were honoured as the 2006 recipients of the Golden Pencil Award at a ceremony in Toronto on November 20. Celebrating its 50th anniversary, the Golden Pencil Award recognizes those who have made an outstanding contribution to the Canadian food industry. Source: Canadian Grocer E-Newsletter, November 24. 2006.

Profits Climb 15% at Shoppers Drug Mart
Higher sales helped Shoppers Drug Mart post a 15.1% earnings jump to $124 million in its third quarter, compared to $108 million a year ago. The Toronto-based drugstore chain said the continued rollout of its larger-format stores and the addition of more high-end products to its offering helped it achieve sales of $2.32 billion in Q3, an increase of 8.9%. Shoppers also said that prescription sales were up 9.7%, while front store sales jumped 8.3%. The retailer also enjoyed same-store sales of 6.6% during the quarter ended October 7, 2006. Source: Canadian Grocer E-Newsletter, November 15, 2006.

Earnings Up at Saputo
Strong sales in Canada helped dairy giant Saputo's profit increase 5.6% to $58.3 million, despite a weaker performance in the United States in its second quarter. The Montreal-based company also reported that revenues had slipped to $994 million, from $1.03 billion. The revenue drop was attributed to a decline in U.S. sales volumes, a stronger Canadian dollar and lower cheese prices. Saputo said that while its Canadian and other revenues increased by $23.9 million, its U.S. dairy products unit saw revenues drop by $66.5 million, compared to last year. Source: Canadian Grocer E-Newsletter, November 15, 2006.

Sobeys Debuts Reusable Shopping Bag
Sobeys is the latest retailer to launch a reusable grocery bag in an effort to "divert plastic bags from the waste stream". The Nova Scotia-based retailer's "Green Bag for Life" is available to customers for $1.99 and is guaranteed for life; in the event that the recyclable bag does wear out, Sobeys says consumers can return it for a free replacement. The bag, which holds up to 20 kilograms of groceries is available at Sobeys, IGA, Foodland and Price Chopper outlets across the country—with the exception of Quebec, where a reusable bag program already exists. Source: Canadian Grocer E-Newsletter, November 15, 2006.

Wal-Mart Canada unveils grocery force to be reckoned with; 17 Supercentres planned by end of '07
Wal-Mart Canada Corp. will have up to 17 of its giant hybrid grocery stores open by the end of next year, executives said at a preview of a Supercentre in Stouffville, north of Toronto. Three of the megastores, which combine a traditional Wal-Mart with an enhanced discount grocery store, [had] their grand opening in Ontario [Nov. 8]. Fresh food is a lightning rod in Canada's grocery war. Early customers will likely be most intrigued by the retailer's selection of groceries, and Wal-Mart will take full advantage of their curiosity, [with] a number of limited time promotions on popular items. Other packaged goods are priced at or below the regular prices of discount grocery chains such as No Frills or Price Chopper. But unlike those stores, the Supercentre has a fairly broad lineup of organic and natural foods, higher-end products, and three fresh food departments with staffed counters: ready-to-go meals, a deli and a bakery. Source: National Post, Lana Holmes & Associates Ltd. with Tim Carter & Associates Inc. - 11/07/06

Food chain wraps up RFID pilot
A few weeks after completing its first RFID [radio frequency identification] pilot, Loblaw Companies Ltd. announced that the preliminary results have already helped the retailer identify ways to improve the flow of product into its stores. Still, Loblaw said it has no immediate plans to roll out any type of tagging requirement or mandate to its suppliers, acknowledging that deploying the technology is no simple task. Source: RFID Journal, Lana Holmes & Associates Ltd. with Tim Carter & Associates Inc.- 11/10/06

Loblaw pledges to respect heritage of Maple Leaf Gardens
Loblaw Companies Limited purchased the Gardens in 2004 and plans are underway to [transform it into] a flagship grocery store. "Through design and heritage interpretation, Loblaw is working with the community to ensure that the architectural and construction elements of Maple Leaf Gardens will be preserved and enhanced and the story of Maple Leaf Gardens will be told in downtown Toronto" said David Crombie, former Mayor of Toronto and currently President and CEO of the Canadian Urban Institute. Source: CNW Group, Lana Holmes & Associates Ltd. with Tim Carter & Associates Inc. - 11/10/06

Safeway rumoured to be takeover target
Speculation circulated [Nov. 9] on Wall Street that Safeway Inc. may be a takeover target for Sears Holdings Corp., the parent of the Sears and Kmart department store chains. Analysts said the deal could be worth $20 billion. Officials from Safeway and Sears declined to comment on the report that investment research firm Briefing.com published [Nov. 8]. Source: Topix.net - Lana Holmes & Associates Ltd. with Tim Carter & Associates Inc. 11/10/06

Wal-Mart Canada Mulls Banking
Banking is the latest business that Wal-Mart Canada Inc. is considering expanding into as the grocery wars heat up with the opening of Wal-Mart's Supercentres earlier this month. According to a report in the National Post, Wal-Mart Canada recently hired Trudy Fahie—formerly of American Express Canada—to assess the company's options in the banking sector. Wal-Mart spokesperson Andrew Pelletier was quoted saying that in the next six months the company will explore a range of possible financial services it may offer its customers. The company has not, however, applied to become a bank as Canadian Tire Corp. has done. In the United States, regulatory barriers have hampered the retail giant's attempts too make inroads in banking. Source: Canadian Grocer E-Newsletter, October 31, 2006.

Wal-Mart Eyes Downtown Toronto
Wal-Mart developer Mitch Goldhar has acquired a 50% stake in a downtown Toronto site raising speculation that the city may soon be getting its first downtown big box. According to a report in the Toronto Star, Goldhar's SmartCentres Inc.—the largest developer of power centres in Canada—paid $14 million for its share of the property, the current home of the Toronto Film Studios. According to the report, Goldhar said he purchased the property as a potential site for a centre, but that there were no immediate plans to build. Source: Canadian Grocer E-Newsletter October 31, 2006.

Calloway Pays $1 Billion for Wal-Mart Anchored Malls
Calloway Real Estate Investment Fund has agreed to pay $1 billion to buy 16 shopping centre properties from privately owned SmartCentres, run by developer Mitch Goldhar. The deal includes nine existing shopping centres and seven still being developed. Wal-Mart stores anchor most of the properties, and about half of the sites are located in the Toronto area, while the others are in New Brunswick, Quebec and other Ontario locations. After the deal is wrapped up, in December, Calloway will own five of the locations occupied by Wal-Mart supercentres in Canada. Source: Canadian Grocer E-Newsletter, October 31, 2006.

Wal-Mart Supercentres Arrive
The battle for the fresh food dollar is heating up in Ontario with the much-anticipated debut of two Wal-Mart Supercentres in the province. The outlets, located in London, Ont., and Ancaster, Ont. (near Hamilton) sport a "Your Fresh Market" banner, an indication of the expanded food offering inside, which includes fresh food including natural and organic products, an in-house bakery, deli and take-out food area. The two outlets are expansions of existing Wal-Mart outlets, but the retailer has plans to open a brand new Your Fresh Market site in Stouffville, Ont. next month. Source: Canadian Grocer E-Newsletter, October 24, 2006.

Heinz Buys Renée's Gourmet
Heinz Canada has purchased salad dressing maker Renée's Gourmet for an undisclosed amount. Toronto-based Renée's, Canada's largest maker of refrigerated salad dressings, will add about $60 million in annual sales to Heinz. Heinz intends to retain the Renée's name and according to a report in the Globe and Mail , Renée Unger, founder and former president of the company, will remain as a consultant at the company, while ex-husband Arnie, former CEO, will leave the company at the end of the month. Source: Canadian Grocer E-Newsletter, October 24, 2006.

Pareto Buys Secom Plus
Toronto-based marketing services company, Pareto Corporation says it has purchased Montreal-based Secom Plus, a retail sales and merchandising company. Although terms of the deal were undisclosed, Pareto says the acquisition of Secom Plus—a firm with a client list that includes major retail and packaged companies such as L'Oreal, Bayer, Metro and Shoppers Drug Mart—is expected to generate "in excess of" $10 million in revenues next year. According to a release Secom Plus will continue to be managed by its founders Louis Demers and Johanne Jetté. http://www.pareto.ca/investor/ Source: Canadian Grocer E-Newsletter, October 10, 2006.

Couche-Tard Expands Again
Again Quebec-based convenience store operator Alimentation Couche-Tard is expanding its U.S. network once again, with the purchase of 236 stores and gas stations in four states. Although the price of the purchase from Shell Oil Products U.S. was not disclosed, analysts estimate the acquisition will generate about $900 million in motor fuel and merchandise revenues for Couche-Tard. Couche-Tard is the second-largest c-store operator in North America with a network of some 5,200 stores. Quebec-based convenience store operator Alimentation Couche-Tard is expanding its U.S. network once again, with the purchase of 236 stores and gas stations in four states. Although the price of the purchase from Shell Oil Products U.S. was not disclosed, analysts estimate the acquisition will generate about $900 million in motor fuel and merchandise revenues for Couche-Tard. Couche-Tard is the second-largest c-store operator in North America with a network of some 5,200 stores. Source: Canadian Grocer E-Newsletter, October 10, 2006.

Changes at Coca-Cola Bottling Co.
The Coca-Cola Bottling company has promoted Alain Robichaud to the role of vice-president, sales operations. Robichaud previously held the position of market unit vice-president, Quebec/Atlantic. In addition, David Moore has been named the company's vice-president, national home market sales; Desmond White is now vice-president, immediate consumption channels; and Christina Smith is director, government and industry relations. Source: Canadian Grocer E-Newsletter, October 10, 2006.

Loblaw and Wal-Mart "Cheap Chic" Push
With Loblaw and Wal-Mart stepping up promotion of their Joe Fresh and George clothing lines respectively, fashion is emerging as the latest category for these retailers to do battle. According to a report in the Toronto Star, both retailers are fixed on grabbing a bigger slice of the $18.7 billion Canadian apparel market with their "cheap chic" (high fashion at low prices) offerings. To make its Joe Fresh label more accessible (outside of its Real Canadian Superstores), Loblaw just announced the launch of two Joe Fresh Style "Studio" stores—replacing the former Caban stores—in Toronto. Wal-Mart, meanwhile, is expanding its edgy George line, to 272 of its outlets (from about 150 currently) by next year. Source: Canadian Grocer E-Newsletter, September 29, 2006.

German food retailer separates scanning and payment to speed up checkout
This summer, German-based retail giant The Metro Group, started quietly experimenting with a radical change in supermarket layout and procedure: physically separating where groceries get scanned and where customers make their payments. The move is designed to both cut costs and accelerate customers through the checkout process said Gerd Wolfram, the group's chief technology officer and the managing director of Metro Group Information Technology. Metro Group offers both self-checkout and cashier checkout. "The customer comes to the scanning area, then we - as a service - scan the things or the customer scans the things," he said. "The customer receives the bar code ticket for his goods, and he goes to a payment machine. If he pays cash, he can just throw in the coins." Beyond speed and cost-savings, Wolfram said the chain is hoping the new system will be seen as improving payment privacy "because there is nobody looking over their shoulder." Source: eWeek.com - 09/13/06 Prepared by: Lana Holmes & Associates Ltd.with Tim Carter & Associates Inc.

Canadian Tire Steps Up Plans for Larger Stores
Encouraged by strong sales, Toronto-based Canadian Tire Corp. says it plans to step up the rollout of its larger-format outlets. Speaking at a retail conference, Canadian Tire CFO Huw Thomas said his company plans to have 300 stores conforming to its larger Concept 20/20 store model by 2009—about a $900 million investment. The Concept 20/20 stores—which the company says are more popular with shoppers—range from 65,000 to 100,000 square-feet. About 200 existing stores will be retrofitted and the remainder will be new stores in both suburban power centres as well as more "inner city" development. Source: Canadian Grocer E-Newsletter, September 22nd. 2006.

Shoppers Unveils Big Plans
Shoppers Drug Mart Corp. says plans are in the works to open up to 300 big box stores over the next five years. Toronto-based Shoppers has been focused on enlarging its outlets over the last four years and the new stores are expected to be between 10,000 to 12,000 square feet, significantly larger than the chain's current store average of 8,300 square feet. Speaking at a conference recently, Shoppers chief Glenn Murphy said the company would continue expanding its high-end cosmetics department, introduce digital photo processing units to its stores and re-launch its Optimum loyalty card. The company has also started introducing new pharmacy services to help fend off competition from other retailers such as grocers. Source: Canadian Grocer E-Newsletter, September 22nd. 2006

Sobeys to Convert Ontario IGA Outlets
Under a new corporate restructuring plan, Sobeys Inc. is about to convert most IGA outlets in Ontario to either the Sobeys, Foodland or Price Chopper banners. According to a CBC report, citing a confidential letter from Sobeys to Ontario IGA franchisees, Sobeys is offering to buy out any of the IGA independent franchisees that do not wish to convert their stores. Reports say Sobeys is planning to see all of its stores fall into one of five formats: full service (Sobeys), community service (Foodland), fresh service (Sobeys), price service (Price Chopper) or convenience (Sobeys Express). The conversions are to take place over the next few months. IGA's advisory committee says its lawyers are reviewing the situation and will monitor to ensure Sobeys respects its contractual obligations under the IGA franchise agreements. Source: Canadian Grocer E-Newsletter, September 8, 2006.

Coca-Cola Looks to Coffee and Tea to Heat Up Sales
With the fizz gone out of soda sales, Coca-Cola is setting its sights on the hot beverage market with its debut of a new line of coffees and teas. Canada will be the test market for Coke's new Far Coast hot beverage brand (coffee, tea, lattes, espressos), which will be available to restaurants and hotels. The company has also introduced Chaqwa, a brand of coffees and teas available at fast food outlets and convenience stores and aimed at on-the-go consumers. The introductions follow the recent launch of Coke's Coca-Cola Blãk, a coffee-flavoured cola, to the Canadian market. Coke's foray into hot beverages comes at a time when sales of soft drinks are slumping and specialty coffees and teas among the fastest-growing categories. Source: Canadian Grocer E-Newsletter, September 8, 2006.

Food and Beverage Store Sales up 2%
Food and Beverage store sales went up by 2.0% in the first half of 2006 compared to last year. In its national survey of retail sales released last month, J.C. Williams research and consulting firm of Toronto reported that by June 2006 food and beverage store sales had risen to $7.7 billion compared to $7.4 billion in 2005. Retail sales, including automotive, were $185 billion compared to $173 billion last year (+7.0%). Pharmacies and personal care store sales soared by 10.7% (from $11.4 billion to $12.7 billion. The highest increase (11.7%) was registered by the building and outdoor home supplies as the sector sales increased from $10.6 billion to $11.9 billion. Source: Canadian Grocer E-Newsletter, August 25, 2006

Management Buyout at Groupe Danone's Canadian Bottled H20 Business
Birch Hill Equity Partners Inc., a private-equity company spun from Toronto-Dominion Bank, has backed a management buyout of Groupe Danone's Canadian bottled-water business, reports Financial Post. Terms were not disclosed. The company, which produces water under the Canadian Springs and Labrador Source brands, will be named Aquaterra Corp. and run by veteran bottled water executive Richard Stephens. Source: Canadian Grocer E-Newsletter, August 25, 2006.

Florida Shopping Spree for Couche-Tard
Laval, Que.-based Couche-Tard convenience store chain has announced that it would purchase 24 c-stores in west-central Florida from Sparky's Oil Co. and 54 Ohio c-stores from Holland Oil Co. The acquisition will increase the company's Florida network to 570 stores and add about US$84 million in sales in that state. Seven of the new Couche-Tard stores have drive-through car washes and 17 have quick-service restaurants. All 24 stores will be converted to the Circle K banner. The stores are on highly visible and well-travelled roads, according to Mick Parker, Couche-Tard's Florida-Gulf division vice-president of operations. The Ohio acquisition—all company owned and selling gas—will make the Quebec company the biggest player in the Cleveland area. Analysts believe Couche-Tard will make more acquisitions in southeaster and southwestern United States. With 5,000 c-stores, the company is already the second-largest independent c-store operator in North America. Source: Canadian Grocer E-Newsletter, August 25, 2006.

A&P Acquisition Fuels Metro Profit
Metro Inc.'s third-quarter profit zoomed 50% after the Montreal-based supermarket chain digested its $1.7 billion purchase of A&P last year. In its August 10th report the company said it earned $85.1 million, or 73 cents a share. That is up from a year earlier profit of $56.9 million, or 58 cents a share. Sales jumped 76% to $3.34 billion from $1.9 billion as Metro added A&P Canada's 236 Dominion and A&P stores to its network. Excluding the A&P acquisition, third-quarter sales were up 2.9%. The company said it realized $15.5 million in synergies in the third quarter and is confident it would exceed its target of $35 million for the first year following the acquisition. Source: Canadian Grocer E-Newsletter, August 25, 2006.

Wal-Mart Canada Advises Suppliers on Price
Wal-Mart Canada Corp. has advised its suppliers to explore new ways to lower prices. In a letter signed by Mike Huffaker, chief merchandising officer, and Jim Thompson, senior vice-president, merchandising, Canada's biggest retailer said that the Canadian dollar is "trading at near-historic highs, providing unanticipated inflation of profit margins" among the company's suppliers. Wal-Mart said the healthy Canadian dollar is an "opportunity to lower prices for Canadians." One money-saving tip in the internal letter is for suppliers of package goods being sold in Canada and the United States to do so in English, French and Spanish, erasing the cost of separate packaging print runs. Source: Canadian Grocer E-Newsletter, August 25, 2006.

Jean Coutu Group To Sell U.S. Drugstores
Longueuil, Que.-based Jean Coutu Group Inc. will sell its United States drugstore chains Eckerd and Brooks to Rite Aid Corp national drugstore group for US$1.45 billion in cash, stock and $850 assumed debt. As a result of the transaction, Jean Coutu Group will have a 32% stake in the U.S. chain, making it the biggest stockholder. Two years ago the Quebec company paid about US$2.4 billion for 1,549 Eckerd stores and has faced challenges in integrating them. The company now has 1,521 Eckerd stores, 337 Brooks stores, in addition to six distribution centres, mainly on the East Coast. "We see this transaction as a unique strategic opportunity to optimize our U.S. presence by transforming our investment in a regional drugstore chain into the leading ownership position in a major national chain with the scale to better compete in the growing U.S. drugstore industry," said Jean Coutu, chairman and CEO of Jean Coutu Group. Source: Canadian Grocer E-Newsletter, August 25, 2006.

Strong Q2 for E.D. Smith
Revenue growth, spurred by acquisitions, helped E.D. Smith Income Fund earn a profit of $4.6 million in its second quarter. The Winona, Ont.-based maker of jams, jellies and other food products said its revenues were up 11% in the quarter, reaching $58.3 million. The company, which became an income trust last year, said acquisitions of Seaforth Creamery and the grocery products division of Golden Valley Foods as well as revamped product packaging, contributed to its strong performance during the quarter. Source: Canadian Grocer E-Newsletter, August 19,2006.

PepsiCo Names First Woman CEO
Indra Nooyi will assume the top position at global beverage giant PepsiCo Inc., in October. Nooyi joined PepsiCo in 1994 and has served as its chief financial officer since 2001. Nooyi will be the first woman to lead the company. Source: Canadian Grocer E-Newsletter, August 19,2006.

Wal-Mart wins B.C. union ruling
Wal-Mart Canada Corp. says the British Columbia Labour Relations Board has ruled in favour of Wal-Mart in a case involving attempts by the United Food and Commercial Workers Union to unionize 10 workers in the auto department of a B.C. Wal-Mart store. The union attempted to unionize the Tire Lube Express Department workers in a Surrey West store "after losing several store-wide votes of Wal-Mart workers in various locations across Canada," Wal-Mart said. It said the latest decision follows a similar ruling by the board last month that dismissed the union's application to carve out 10 auto-department workers from a Wal-Mart store in Cranbrook, B.C. Wal-Mart said it believes the "carving out of a very small group of select workers from the total team of a! ssociates in a store environment is unrepresentative and undemocratic." Source: National Post/CFIG E-News, August 14, 2006.

Metro's A&P takeover factors positively into Q3 results
Metro Inc.'s third-quarter profit increased nearly 50 per cent to $85.1 million, thanks in large part to its 2005 acquisition of A&P Canada. Sales also increased 75.8 per cent to more than $3.33 billion in the quarter, compared to $1.9 billion last year in the same period, the Quebec-based grocer reported. [Including A&P Canada stores, third quarter same-store sales rose 0.8%.] President and CEO Pierre Lessard said Metro will continue to invest in its retail network in both Ontario and Quebec, noting 46 stores have been renovated or expanded and 16 new stores have been opened over the year. He said the arrival of Wal-Mart superstores in Ontario that sell food shouldn't hurt Metro, adding Metro has discount grocer Food Basics in that province. Source: Canada.com/CFIG E-News, August 14, 2006.

Sobeys makes move into Quebec
Sobeys Inc. announced [August 9] it will buy the distribution assets of Quebec-based Achille de la Chevrotiere and its associated companies ADL. The company will pay $82 million and will close the deal during the second quarter, pending regulatory approval, it said. Included in the purchase are 25 retail stores, other wholesale supply agreements and distribution facilities. Sobeys said the aggregate annual sales from the assets it has purchased were $270 million. The Sobeys name will not be placed on the newly purchased stores. IGA, IGA Extra, Marche Bonichoix banners will go up. Source: Halifax Daily News/CFIG E-News, August 14, 2006.

Wal-Mart food format begins southern Ontario invasion
Wal-Mart is Canada's single largest non-food retailer with an estimated $13 billion a year in sales. It's [now] preparing to take on the supermarket industry in a battle for control of Canada's $70 billion a year grocery business. By this time next year the Scarborough store [Warden and Eglinton, Toronto] will be one of seven Wal-Marts - all in Ontario - that will carry everything from lettuce to chicken legs. The U.S. based retailer has confirmed that it will open three of these behemoths this fall, one each in Ancaster, London, and Stouffville. The other three schedule! d to open early next year are in Vaughan, Brampton, and Sarnia. Wal-Mart has been gradually adding more food to its stores. But until recently it was confined to dried goods, frozen foods and dairy products. Customers had to go elsewhere to buy fresh meat, produce or baked goods. Source: Toronto Star/CFIG E-News, August 14, 2006.

SunOpta Unveils Plan for Ethanol Plant
A Brampton, Ont.-based distributor of natural, organic and specialty foods has set its sights on building the first commercial plant for producing ethanol from biomass. According to a report in the Toronto Star, the company has ambitions to become a major producer of "cellulosic" ethanol made from wheat straw and wood waste and will open a five-million litre a year commercial demonstration plant in Spain later this year. As the market for biofuels heats up—Canada, for instance, is expected to mandate that gasoline contain at least 5% ethanol by 2010—a number of companies are racing to build commercial ethanol plants. www.sunopta.com Source: Canadian Grocer E-Newsletter, August 11, 2006.

Coutu to Revamp U.S. Stores
Quebec-based Jean Coutu Group Inc. says it will spend US$250 upgrading its U.S. network of stores. Coutu—North America's fourth-largest drugstore chain—says plans are in the works to revamp about 800 of its Eckerd and Brooks stores to make them more competitive. Digital photo processing kiosks will also be added to many of the stores. Coutu has been struggling to integrate the stores since it purchased the Eckerd chain for $2.4 billion in 2004. The unveiling of the plan followed the company's announcement that its fourth-quarter profit fell 34%, a result of rising interest and administrative costs. Source: Canadian Grocer E-Newsletter, August 11, 2006.

Grocers Won't Face Charges Over Sunday Shopping
Crown prosecutors and police in Nova Scotia say they will not lay charges against Loblaw-owned Atlantic Superstore and Sobeys over alleged violations to the province's Sunday shopping ban. Although the N.S. government recently introduced new rules to clamp down on large retailers using a loophole to skirt the ban, Halifax police said they are satisfied that the current openings are within the law. Crown prosecutors agree with the decision to not lay charges. Source: Canadian Grocer E-Newsletter, August 11, 2006.

Sobeys to Buy Achille de la Chevrotière
Sobeys Inc. has agreed to pay $82 million to acquire the food distribution assets of Quebec-based Achille de la Chevrotière Ltèe. The transaction will see Stellarton, N.S.-based Sobeys gain 25 retail stores in Quebec and Northern Ontario as well as a distribution centre in Rouyn-Noranda, Que. Sobeys is expected to operate the stores, which generate about $270 million in annual sales, under either its IGA or IGA Extra banner. Sobeys said it expects to complete the deal, which is subject to regulatory approval, in its second quarter. Source: Canadian Grocer E-Newsletter, August 11, 2006.

Metro's Profit Jumps 50%
Higher sales following its acquisition of A&P Canada a year ago helped Metro Inc. boost its profit by nearly 50%. Montreal-based Metro says it earned $85.1 million in the third-quarter ending July 1, 2006, compared to earnings of $56.9 million a year ago. Excluding non-recurring items such as integration and rationalization costs of $3.9 million and a tax gain of $9.4 million, Metro said adjusted net earnings would have been $78.3 million. The retailer also reported a 75.8% rise in sales to $3.3 billion. Source: Canadian Grocer E-Newsletter, August 11, 2006.

Whole Foods Considers Tweaking Prices
With sales falling short of analysts' forecasts, Whole Foods Market is considering lowering its prices on certain items to be more competitive with other food retailers. The Austin, Tex.-based company--which operates 180 outlets in the United States, Canada and the United Kingdom--known for charging higher prices than other food stores, said it is rethinking its pricing of products that can be found in other stores such as branded organic and natural foods. The retailer reported sales of US$1.34 billion for its third quarter, up from US$1.13 billion a year ago. Although Whole Foods posted an 18% rise in sales, analysts are worried that consumers being pinched at the gas pumps will cut back spending on higher-end foods. Whole Foods has set a goal of US$12 billion in annual sales by 2010. Source: Canadian Grocer E-Newsletter, August 5, 2006.

General Mills President from Down Under
Dave Homer is the new president at General Mills Canada, succeeding Christi Strauss. Homer was managing director of Australasia, responsible for Australia and New Zealand. Source: Canadian Grocer E-Newsletter, August 5, 2006.

New Chief at Shoppers Drug Mart
Jurgen Schreiber has been named the new president and chief operating officer at Shoppers Drug Mart. Schrieber is a former executive with Hutchison Whampoa's A.S. Watson unit, one of the world's largest health and beauty retailers. Schreiber will assume his new position in September. Source: Canadian Grocer E-Newsletter, August 5,2006.

New Rules Protect N.S. Retail Workers
Grocery retailers in Nova Scotia operating outlets greater than 4,000 square feet must offer staff the right to refuse to work on Sundays and holidays, according to a new rules introduced by the provincial government. The government—which has been attempting to clamp down on grocery chains using a legal loophole to skirt a Sunday shopping ban—says the new rules apply to related grocery business operating in the same building or in close proximity. The government's labour minister said the changes would protect retail workers who have not historically had to work on Sundays as well as businesses being forced to open on Sundays by their landlords. Canadian Grocer E-Newsletter, July 29, 2006.

Kraft Partners with Meal-Assembly Chain
U.S.-based Kraft Foods Inc. has announced plans to collaborate with Dinner by Design, a leader in the home meal assembly business. Under the agreement Kraft, through its North American foodservice unit, will lend a variety of its brands—including A.1 steak sauce, Oreo cookies and Stove Top stuffing—to Dinner by Design for use in the chain's entrees. Meal assembly is the latest trend in the food industry, allowing busy consumers to save time, stress and mess by using prepared ingredients and recipes provided by meal-assembly outlets to quickly create a home-cooked meal. Kraft says helping time-pressed consumers live and eat better by offering added convenience is a key strategy of the company. Source: Canadian Grocer E-Newsletter, July 29, 2006.

Wal-Mart Exits Germany
Wal-Mart Stores Inc. has announced it is pulling out of Germany, selling its 85 supercentres to rival Metro Group. Explaining the move, the retail giant said that in the German marketplace it "would be difficult to obtain the scale and results we desire." Wal-Mart had experienced a number of difficulties during its eight-year stint in Germany including trouble securing prime real estate and a misunderstanding of German tastes and shopping habits, which contributed to a lack of profitability for the unit. Although terms of the deal were undisclosed, it is reported Wal-Mart will take a $1-billion pre tax loss on the sale. Source: Canadian Grocer E-Newsletter, July 29, 2006.

Golden Pencil Winners Named
Anthony Longo, president and CEO of Longo Brothers Fruit Markets, and Christi Strauss, former president of General Mills Canada and now CEO, Cereal Partners Worldwide in Switzerland, will receive the Golden Pencil award this year. This marks the 50th year of the Golden Pencil—the Canadian food industry's highest honour. Source: Canadian Grocer E-Newsletter, July 29,2006.

Key Fall Events to Mark on your Calendar
October 23-24: Grocery Innovations Canada 2006, Toronto Congress Centre, Toronto. Visit www.cfig.ca. October 29-November 2: Pack Expo International 2006, McCormick Place, Chicago. Visit www.packexpo.com. Source: Canadian Grocer E-Newsletter, July 21, 2006.

Profits Climb 18% at Shoppers Drug Mart
Strong second-quarter sales across the country helped Shoppers Drug Mart Corp. boost its profit by 18% to $94 million. The Toronto-based retailer said the 8.9% jump in sales during the Q2 period ending June 17, was helped by an increase in prescription drug sales. Sales reached $1.77 billion from $1.62 billion a year ago and same store sales increased 7%. Commenting on the chain's performance, chairman and chief exec Glenn Murphy said: "In the back half of the year we will focus on executing our real estate plan, strengthening our mix and improving operating leverage." Source: Canadian Grocer E-Newsletter, July 21, 2006.

Executive Moves
Sobeys Exec Moves to Canadian Tire Duncan Reith is now senior vice-president, Canadian Tire Retail. Reith was previously chief merchandising officer at Sobeys Inc. New VP at McCain Darryl Rowe is the new vice-president of retail sales at McCain Foods Canada. Rowe was previously vice-president and general manager, retail business unit, at Coca-Cola Beverages Ltd. New Chief at Kellogg Canada Francois Rouilly is the new president and chief executive officer of Kellogg Canada. Rouilly is responsible for all Canadian operations including the Kellogg manufacturing plant in London, Ont. Source: Canadian Grocer E-Newsletter, July 21, 2006.

Vancouver versus the Big Box
The debate over big boxes continues in Vancouver with city council reconsidering whether it will allow big boxes such as Wal-Mart and Canadian Tire to set up shop within city limits. Last summer, city council rejected proposals from the two retailers to build stores on industrial land near the city's Marine Drive—an area where at one time it was permissible to build bigger outlets. Now, the city is revisiting its policy to determine which of three courses to take: to accept new applications from these retailers under its highway-oriented retail policy or ban big boxes altogether or impose conditions that would limit big boxes to "occasional purchase" stores such as furniture and carpet outlets—not, however, general merchandise retailers such as Wal-Mart. Source: Canadian Grocer E-Newsletter, July 11, 2006.

Food industry gets a taste of RFID's potential
A cabal of Canadian food companies have agreed to share their findings as they embark on a joint RFID pilot project, scheduled to begin later this month. The pilot is the work of the Canadian RFID Centre, which first opened its doors last year at an IBM Canada facility in Markham, Ont., as well as retailers, suppliers and food industry organizations. The marquee names include Loblaw Companies Ltd., Maple Leaf Foods, General Mills Canada, Scott Paper and Unilever Canada. Loblaw's is offering up its distribution centres and stores as a test bed for the six-month pilot; the other participants will mark a small selection of their inventory with RFID tags to measure the effectiveness of using the technology in a grocery store supply chain. RFID (radio frequency identification) is beginning to come into its own as a retail technology. The tags are being used at the case and pallet level to track retail items through the supply chain. For the food industry, that could mean less spoilage and more efficient delivery. This pilot is one among many currently underway in Canada and around the world, but is more collaborative than most, said Shai Verma, RFID practice leader for IBM Canada’s business consulting services. “One of the objectives is to show how RFID can be implemented where not only the retailers see benefit – it’s been shown that the retailers can see a lot – but also where the manufacturers can see some benefit,” said Verma. “That’s a different approach that’s been seen in some different geographies, like Wal-Mart for example or other retailers in the States. “For manufacturers, it’s not a slam dunk that the ROI for RFID adoption is positive.” For that reason, the participants are trialing the technology on a very limited basis. Bill Langlois, director of customer service for Toronto-based Unilever Canada, said his company is testing tags on two of its dry-food products. Unilever has participated in other RFID pilots globally (it maintains dual headquarters in the U.K. and the Netherlands) but the attraction of this pilot is the number of companies that have agreed to participate openly. “Because it’s collaborative by nature, it could be used as something on a go-forward basis, if and when RFID becomes mainstream,” said Langlois. “The intent of this is really assessment and to develop a business case for the industry as a whole.” The pilot will also examine the feasibility of testing fresh and frozen foods with RFID tags, which is a relatively new area for RFID supply chain projects, said Verma. Some of the pilot’s participants wanted to start with those food categories, he added, because they have “not necessarily been well addressed in the RFID space” to date. The reason for the beta is to conduct a rigorous examination of RFID in the grocery business, said Elaine Smith, senior vice-president of industry affairs for Food and Consumer Products of Canada, one of the industry organizations that is providing oversight for the project. “It’s not a cheap thing to do,” she said. “If you don’t get the cost benefit out of it and you aren’t able to better serve consumers by reducing out-of-stocks, why bother? I think eventually, there will be a time where RFID will be prevalent in the supply chain, but it might take some time to get there.” Other pilot participants include the Canadian Council of Grocery Distributors, EPCglobal Canada, Intermec Inc. and Symbol Technologies. Source: itbusiness.ca Canadian Technology News July 11, 2006.

It's Grocery Innovation Time Again this Fall
The 7th edition of Grocery Innovations Canada 2006 is recognized as a critical business booster for the grocery industry. With over 500 exhibits comprised of grocery products from national brand, imported and Canadian food processors as well as the newest store equipment and services, Grocery Innovations Canada is a microcosm of supermarket trends. The event is considered a must-attend by key industry players and attracts more than 6,000 industry attendees. Grocery Innovations Canada 2006 is presented by the Canadian Federation of Independent Grocers (CFIG); in association with the Food and Consumer Products of Canada (FCPC); the Canadian Association of Sales and Marketing Agencies (CASMA) and GS1 Canada, with support from Agriculture and Agri-Food Canada and Canadian Grocer. The organizations represent the strength, innovations and leadership behind Canada's $70.1 billion grocery industry. DATES: October 23 & 24, 2006 LOCATION: Toronto Congress Centre, 650 Dixon Road, Toronto, ON, Canada M9W 1J1 NUMBER OF EXHIBITS: 500+ NUMBER OF ATTENDEES: More than 6,000 industry attendees TRADE SHOW HOURS: 11:00 AM - 5:00 PM CONFERENCE HOURS: 7:15 AM - 11:00 AM REGISTRATION HOURS: On-site Trade Show Only Registration – including Customer Invitations - located at the Hall D Entrance Monday, October 23, 2006 11:00 am – 5:00 pm Tuesday, October 24, 2006 11:00 am – 3:30 pm Pre-Registration Badge Pick-Up located in the E. Mirvish Room Sunday, October 22, 2006 9:00 am – 5:00 pm Monday, October 23, 2006 7:00 am – 7:00 pm Tuesday, October 24, 2006 7:00 am – 7:00 pm Contact Info: Grocery Innovations Canada 2006 2235 Sheppard Avenue East, Suite 902 Willowdale, ON M2J 5B5 Tel: 416.492.2325 Toll Free: 1.800.387.0175 Fax: 416.492.2347 info@cfig.ca www.groceryinnovations.com

Manitoba facing the same labour market challenges as Alberta
Manitoba is in dire need of workers - from engineers, and company leaders to grocery store cashiers. Employers across a large swath of the provincial economy are finding it difficult to find the workers they need. Statistics Canada pegged Manitoba's June unemployment rate at 3.6 per cent, the lowest in the province's history, and just a shade higher than nation-leading Alberta's 3.5 per cent. Canada Safeway needs 300 workers right now at its 35 Manitoba stores, says a company spokesman. Small businesses are also affected by a shortage of labour. The president of the Manitoba Chambers of Commerce said a longtime concern of his organization is that the province has some of the lowest wages in the country. That, he said, doesn't bode well for its ability to attract needed workers. However, he said, government must do its part. The province must create a more favourable business climate by reforming taxation policies that now discourage job creation. Source: Winnipeg Free Press - CFIG E-News, July 10, 2006.

GST changeover goes 'smoothly'
Retailers experienced relatively few problems in adjusting to the one-per-cent cut in the Goods and Services Tax over the holiday weekend. The Canada Revenue Agency kept open its GST hotline during the Canada Day weekend, on Saturday, the day the tax cut took effect, and also on Monday. But there was no flood of calls from consumers and businesses. On Saturday, there were only 89 calls to the GST toll-free line. On Monday, there were 279 calls, according to the agency. Source: Canada.com - CFIG E-News July 10, 2006.

Independent seeks out new tastes
Starting June 1, products [from] New Zealand [such as] liquid kiwifruit, steamed puddings, handmade soups and organic hot sauces will be available at Longo's grocery stores. As well, Michael Bonacini, chef and owner of five restaurants in the [greater Toronto area], is teaming up with Longo's to produce several recipes that will be made available in-store to customers and on Longo's website. "As part of our Adventures in Food philosophy, our buyers spent considerable time researching New Zealand's food culture to determine which products will be most appreciated by our discerning customers," says Anthony Longo, president and CEO, Longo's. Source: CFIG Electronic Broadcast - Canadian Grocer May 29, 2006.

Major e-retailer moves into U.S. grocery business
Amazon.com has launched a new grocery section on its site that features some 14,000 items and the ability to get free shipping through either the company's Super Saver Shipping program or prepaid Amazon Prime program. [Amazon.com will ship anywhere in the continental United States.] The new Grocery section expands on Amazon's previous efforts to sell food online. In certain cases Amazon will be carrying entire lines of products, far more than might be carried by a supermarket - such as more than 80 varieties of Jello. This is not a third party-driven site, or a portal to another service; Amazon is selling the products online, stocking them in a warehouse, and handling all the shipping. Source: CFIG Electronic Broadcast - Canadian Grocer May 29, 2006.

Safeway to convert all North American outlets to 'lifestyle' format
Attributing its strong sales and earnings growth largely to the rollout of its 'lifestyle' stores, Safeway Inc. says it now plans to convert all of its 1,772 Canadian and U.S. outlets to the lifestyle format by the close of fiscal 2009. Safeway Inc. CEO Steve Burd made the announcement at the company's recent annual shareholder's meeting, where he said the new format stores-with expanded product categories and more upscale design - typically have sales 23% higher than other remodeled Safeway outlets. Source: CFIG Electronic Broadcast - Canadian Grocer May 29,2006.

Earnings Up At Premium Brands
Premium Brands Income Fund—producer, marketer and distributor of specialty banded consumer food products—reported that first quarter earnings climbed to $1.8 million, compared to a loss of $0.3 million during the same period last year. The Vancouver-based company—which owns brands such as Grimm's, McSweeney's and Harvest—also reported that sales during the quarter ending April 1, jumped 14.4% to $47.1 million. Source: Canadian Grocer E-Newsletter, May 19, 2006.

Strong Q1 for Connor Bros
Toronto-based fish processor Connor Bros. Income Fund said its first-quarter profit jumped 75% to US$12 million, from US$6.9 million a year ago, surpassing its expectations. The fund, which indirectly owns Clover Leaf Seafoods and Bumble Bee Foods, also said its revenues for the first quarter ending April 1, increased to US$244.1 million from US$211.7 million. Connor Bros. attributes the increase to strong volumes and savings gained from it acquisition of Castleberry's and Sweet Sue-Bryan. Source: Canadian Grocer E-Newsletter, May 19, 2006.

Canada Grabs Two SIAL D'Or Awards
Canadian products captured two of eight prestigious SIAL d'Or awards, indicating they are the best new products in the world, at the competition held recently in Paris, France. Winner in the Savory Grocery Product category was Campbell's Soup at Hand and winner in the Alcoholic Beverages category was French Rabbit, wine in Tetra Paks that has been one of the most successful new wine launches in Canadian history. Other Canadian products also did well. President's Choice Decadent Molten Chocolate Cakes came second in its category, while Burnbrae Farms' Egg Creations and Europe's Best Vegetables each scored third place in their respective categories. The SIAL d'Or award starts with nominations from the grocery trade, which is asked to submit suggestions for products that are innovative and are selling well for a specific period from launch. Canadian Grocer represents SIAL d'Or in Canada. Twenty-seven countries were involved in this year's competition. Other Canadian entries were: Stouffer's Bistro Crustini, Sun-Rype Fruit Plus Essential Nutrients and Nature Valley Sweet and Salty Nut Bars. Source: Canadian Grocer E-Newsletter, May 19, 2006.

2006 National Grocery Conference Gears Up
The 2006 National Grocery Conference—which gets underway in St. John's, Nfld,. May 27 to 29—will provide close to 1,000 food industry leaders with "outstanding" networking opportunities as well as full lineup of business sessions featuring top-rated speakers such as author Paco Underhill, Globe & Mail columnist Jeffrey Simpson and Capital C founder and CEO Tony Chapman—say conference organizers. Another highlight of the event, presented jointly by the Canadian Council of Grocery Distributors and the Food and Consumer Products of Canada, will be the Canadian Grand Prix New product Awards Gala Banquet, which will wrap up the three-day event. For more information on the conference please visit www.ccgd.ca or www.fcpc.ca. Source: Canadian Grocer E-Newsletter, April 28, 2006.

Maple Leaf Reports Higher Earnings
Canadian food processing giant Maple Leaf Foods Inc. posted earnings of $17.3 million during its first-quarter, up from $12.7 million during the same period last year. Sales for the Q1 period ending March 31, 2006, slipped 5% to $1.4 billion, from $1.5 billion a year ago; the company attributed the decline to the lower commodity prices of export products. "We made good progress in earnings recovery during our first quarter of 2006, as we addressed factors that challenged us in late 2005," said Michael H. McCain, Maple Leaf's president and CEO. "However, as expected, protein markets were weak on a number of fronts coming into this year." Source: Canadian Grocer E-Newsletter, April 28, 2006.

Profits Rise at Canada Bread
Net earnings for Canada Bread Company Limited climbed 28% to $19.4 million in its first quarter, from $15.1 million a year ago. The Toronto-based company also reported that sales for the first-quarter period ending March 31, 2006, increased 4% to $301.6 million—driven mostly by improved product mix. "We had an exceptional quarter, driven by significant growth in our higher nutrition, higher margin grain breads," said company president and CEO Richard Lan, adding that the company was continuing to offset inflationary pressures, including rising fuel and freight costs, through ongoing price increases. Source; Canadian Grocer E-Newsletter, April 28, 2006.

E.D. Smith to Buy Seaforth Creamery
E.D. Smith Income Fund, maker of jams, jellies, marinades and other food products—both branded and private label—has agreed to purchase Seaforth Creamery Inc., of Seaforth, Ont., for $95.2 million. Privately owned, family-operated Seaforth Creamery is Canada's largest producer of private-label salad dressings with annual revenues of $106 million. Winona, Ont.-based E.D. Smith said Seaforth had a strong presence in the United States and that the acquisition would provide it with "significant" cross-selling opportunities in addition to further broadening its customer base, which will include the top four food retailers in the United States. The deal is expected to wrap up in mid May. Source: Canadian Grocer E-Newsletter, April 28, 2006.

Cott Looks to Energy Drinks to Boost Sales
With the fizz gone out of pop sales in North America, Cott Corp., the world's largest maker of store-brand soft drinks, says in 2006 it will focus on increasing its presence in non-carbonated beverages, including the fast-growing energy drink segment. Toronto-based Cott says so far this year it has already inked deals to make store-brand energy drinks for six new retail customers. In its latest quarter, Cott reported a net loss of US$2.1M, compared to a US$8.3M profit a year ago—impacted by restructuring costs and stock option expenses. The beverage maker's first-quarter sales slipped to US$394.2M from US$395.5M a year ago. Although Cott warned of lower profits in 2006, company president and chief exec John K. Sheppard said the results "reflect the progress of our North American realignment in stabilizing the business. The results are in line with our plan as we continue taking aggressive action to position Cott for longer term profitability." Source: Canadian Grocer E-Newsletter, April 25, 2006.

Organics Standards Needed to Legitimize Industry
A lack of national organics standards in Canada is leaving consumers skeptical, growers frustrated and may threaten valuable exports, says a report in the Financial Post . Canada is one of the few Western countries that has not implemented national rules for organically produced food resulting, according to sources cited in the report, a "free-for-all" where consumers have no way of determining whether the organic foods offered at the grocery store live up to claims touted on their labels. According to the report, the Canadian Food Inspection Agency says its plans to have regulations ready for publication earlier this month have been delayed, but the agency says it expects to have national organic standards in place by the end of the year. If this timeline isn't met, organic growers risk huge losses as the European Union—which imports tens of millions of dollars worth of organic food from Canada annually—says it will ban imports of Canadian organics effective January 1, 2007. Source: Canadian Grocer E-Newsletter, April 25, 2006.

C-store Owners Protest Ontario's Tough Tobacco Laws
Hundreds of Korean-Canadian convenience store owners rallied outside of the Ontario legislature last week to protest the government's tough anti-smoking policies, which they say are causing them severe economic hardship. The Ontario Korean Businessmen's Association, organizer of the protest, says tax hikes on tobacco, higher insurance rates—a result of a surge in tobacco-related robberies—and costs associated with a new law requiring the removal of cigarette displays as of 2008, is driving many small operators to the brink of bankruptcy. Organizers of the protest say they want the same consideration from the government that the province's tobacco growers received when, last fall, that group was allocated $100M to facilitate a switch to other crops. Canadian Grocer E-Newsletter, April 25, 2006.

Robert Wegman Dies at 87
Robert Wegman, chairman of family-owned Wegmans Food Markets Inc., has died at age 87. Wegman had served as chair of the 90-year-old grocery chain, based in Rochester, N.Y., since 1969. Source: Canadian Grocer E-Newsletter, April 25, 2006.

Grocery Pioneer Steve Stavro Dies at 78
Steve Stavro, the founder of Knob Hill Farms grocery chain and one-time owner of the Toronto Maple Leafs, has died at age 78—reportedly of a heart attack. A legend in the Canadian grocery industry, Stavro—known as "The Honest Grocer"—created a buzz in 1962 when he opened a 60,000-sq.-ft. Knob Hill Farms "food terminal" in Toronto. Stavro was a founding member of the Canadian Federation of Independent Grocers and the recipient of the industry's most prestigious award—The Golden Pencil. Stavro, who came to Canada at age 7 from Macedonia, was awarded the Order of Canada in 1992. Source: Canadian Grocer E-Newsletter, April 25, 2006.

Couche-Tard Expands Again
Canadian convenience-store giant, Alimentation Couche-Tard Inc. says it has inked a deal—through its Circle K Stores Inc. subsidiary—to purchase 90 convenience outlets from Spectrum Holding Inc. Although terms of the deal were not disclosed, Laval, Que.-based Couche-Tard said the stores, located in Georgia and Alabama, would add sales of US$325M to its revenues and contribute to its earnings on an annualized basis. With its network of 4,909 stores, Couche-Tard is the third-largest c-store retailer in North America. Source: Canadian Grocer E-Newsletter, April 13, 2006.

E.D. Smith to Buy Grocery Unit of Golden Valley Foods
Winona, Ont.-based E.D. Smith Income Fund says it has signed a letter of intent to acquire the grocery products division of Golden Valley Foods Ltd., for an undisclosed amount. British Columbia-based Golden Valley Foods, a leading manufacturer of private label and branded jams, jellies, marmalades and salsa in Western Canada, generates annual sales of $14.1M. The E.D. Smith fund says it expects the acquisition will immediately add to distributable income and result in cost-saving synergies related to distribution. The deal is expected to wrap up in early May. Source: Canadian Grocer E-Newsletter, April 13, 2006.

Metro's Earnings Up 27%, Propelled by A&P
Propelled by its acquisition of A&P Canada, Metro Inc. saw its second-quarter earnings jump 27.5% to $57M. Canada's third-largest grocery retailer said sales for the Q2 period ending March 11, swelled 75.5% to $2.4 billion. Same-store sales, including the A&P stores, rose 1.6%. Montreal-based Metro, which purchased A&P Canada last July for $1.7 billion, said that over the next few quarters it will concentrate on finding savings from its acquisition of the 236 A&P Canada stores. The retailer said it is aiming to achieve savings of $35M this year and a further $25M in 2007. Metro's president and CEO Pierre H. Lessard added: "We will also work on implementing our integration and rationalization, and our information systems to A&P Canada's operations." Source: Canadian Grocer E-Newsletter, April 13, 2004.

Saputo Enters Europe
Canadian dairy giant Saputo Inc. has agreed to purchase German cheesemaker Spezialitaten-Kaserei De Lucia GmbH for an undisclosed amount. The German company makes and sells Italian cheeses such as mozzarella and ricotta, largely under the De Lucia brand. The company—which employs about 60 people at its facility in Heiden, Germany—generated revenue of 20 million euros ($28.2 million) in 2004. Montreal-based Saputo, one of North America's largest dairy processors, said the German acquisition complements its activities in Canada, the United States and Argentina. Source: Canadian Grocer E-Newsletter, April 12, 2006.

Sobeys Unloads Cash and Carry Outlets
Sobeys Inc. has announced it has sold off 11 of its cash and carry outlets in Ontario to The Skor Food Group Inc. for $13.5 million. Canada's second-largest grocery retailer also said it plans to shutter its three remaining cash and carry outlets in Ontario and Quebec. Sobeys said the cash and carry operations contributed $210 million in annual sales of tobacco and other products and that disposal of these assets will have a net $1.5 million pre-tax negative impact on its 2006 earnings, but will help annual earnings. The retailer added that the sale and closures are "consistent with the company's stated focus on its core food retailing and distribution business." Mississauga, Ont.-based Skor said it has no plans to layoff the 200 employees of the 11 southern Ontario outlets, which operate under the Lumsden Brothers banner. Some 28 employees of the stores set for closure in Ottawa, Montreal and Matane, Que., however, will be displaced. Source: Canadian Grocer E-Newsletter, April 12, 2006.

Canada Bread Buys U.K. Bakery
Toronto-based Canada Bread Company Ltd. has expanded its U.K. operations with the purchase of Walsall, England-based Harvestime Ltd. bakery, for an undisclosed amount. Harvestime, which employees 250 people and generates annual sales of about $39 million, is a producer of par-baked breads, rolls and specialty bakery products largely for retail customers in the United Kingdom. "The U.K. and European specialty bakery market is a high growth opportunity for Canada Bread," said company president and CEO Richard Lan, "The acquisition of the Walsall bakery immediately provides us with a stronger presence in the retail bakery market and broadens our base in bagel manufacturing to other specialty par-baked produtcts." Source: Canadian Grocer E-Newsletter, April 7, 2006.

FPI Denies Any Wrongdoing in Export Dispute
Seafood processor Fishery Products International (FPI) Ltd. is denying claims made by Newfoundland's fisheries minister Tom Rideout that it is guilty of shipping unprocessed fish out of the province without permission. In a recent release, the Newfoundland-based company said its exports of non-commercial fish were carried out legally and that "any insinuation that the company concealed or attempted to conceal any shipments is completely false." In addition to the consultation with department officials, FPI said every pound of fish in every shipment was approved for export, duly documented, signed and sealed by the Canadian Food Inspection Agency. Minister Rideout levelled the accusations against FPI during a rally in which workers were protesting the company's plans to cut jobs and close plants in the province. Source: Canadian Grocer E-Newsletter, April 7, 2006.

Head of CMA Calls for Fat Tax
A tax on junk food should be imposed to battle Canada's growing obesity problem, urges Dr. Ruth Collins-Nakai, president of the Canadian Medical Association. According to Statistics Canada (2004 numbers) 8% of children and 23% of Canadians are obese. Collins-Nakai suggests that a tax on fatty foods would make them less desirable to consumers, noting that a similar strategy has worked to combat cigarette consumption. The doctor noted that fat taxes could be imposed several ways; for instance, higher costs passed on to consumers or a surtax on food companies that use unhealthy additives. Source: Canadian Grocer E-Newsletter, April 7,2006.

No Mass Closures for HBC—Zucker
The Hudson's Bay Company's (HBC) new owner, Jerry Zucker, has squashed rumours that plans were in the works to unload as many as 80 HBC outlets by unveiling a real estate strategy that includes revitalizing and improving the company's real estate portfolio. Rumours had been swirling that Zucker had circulated a list of underperforming sites—which were potentially up for grabs—to retailers such as Sobeys, Metro and Canadian Tire; HBC denies a list existed. Said Zucker in a recent release: "I am truly excited about this company's opportunities and we intend to grow HBC's five formats by improving our portfolio, not through mass closures. That's just not in the cards and anyone speculating that it is, is not informed of my vision for HBC. Source: Canadian Grocer E-Newsletter, April 7, 2006.

Grocers Hear the Call of the Mall?
Grocery retailers are considering returning to traditional shopping malls—according to a recent report in the Toronto Star. With the future of department stores or "anchor" tenants such as the Hudson's Bay Company and Sears uncertain, mall managers are looking at other possibilities for this "real estate." In the report, Paul Brundage, executive vice-president of real estate management at Oxford Properties—owner of a number of shopping malls in the Greater Toronto Area—said supermarket chains, for instance, are looking at getting back into malls. The report noted that Oxford Properties recently signed a deal with Loblaw Cos. Ltd. to build a grocery store on the lot outside of the Scarborough Town Centre. Source: Canadian Grocer E-Newsletter, April 7, 2006.

Old Dutch to Buy Humpty Dumpty
Old Dutch Foods Ltd. has agreed to purchase Kitchener, Ont.-based Humpty Dumpty Snack Foods Inc. for $26.7 million in cash. The move would help Winnipeg-based Old Dutch better compete against snack food giant Frito-Lay Canada. Under the terms of the deal, the brand Humpty Dumpty will remain, but the company would become a subsidiary of HD Snax Ltd. — a subsidiary of Old Dutch. A deal struck by the two companies last year was dropped when a group of shareholders, objecting to the terms of the bid, threatened legal action. Old Dutch said it was too early to determine if the new deal would result in job losses. Source: Canadian Grocer E-Newsletter, March 26th. 2006.

Sobeys' Q3 Spurred by Strong Sales
Helped by robust sales and improved productivity, Sobeys Inc. said its third-quarter earnings climbed to $45.7 million, up from $44.8 million a year ago. The Stellarton, N.S.-based grocery retailer said sales during the period ending February 4, 2006, jumped 8.7% to $3.17 billion, with a 4.1% increase in same-store sales. "Our steadfast focus on food and improved execution drove strong same-store sales again this quarter," said Sobeys' president and CEO Bill McEwan. "In addition, our ongoing productivity initiatives and our extensive Ontario business process, supply chain and systems transformation initiative remains right on track." Source: Canadian Grocer E-Newsletter, March 29th. 2006.

Loblaw Unveils Joe Fresh
As it continues to battle Wal-Mart, Loblaw Cos. Ltd. is hoping to grab the attention of budget-conscious shoppers with its new Joe Fresh Style private-label clothing collection. Toronto-based master brand developer Joe Mimram's—the design force behind Club Monaco and Caban—name is tied directly to the stylish offerings, which are currently available in 40 of Loblaw's Real Canadian Superstores. The collection features some 400 styles for men and women—skirts, pants, footwear and accessories—that have an average price point of $14. Source: Canadian Grocer E-Newsletter, March 29th, 2006.

L'Oreal buys Body Shop
LONDON — Body Shop International PLC, the British retailer which promotes natural-based cosmetics, said Friday it has agreed to be taken over by L'Oreal of France in a $1.14 billion(U.S.) cash deal. Body Shop will retain a separate identity and its current management, the companies said. Source: Mar. 17, 2006. 06:21 AM ASSOCIATED PRESS

Weston Profits Enjoy Healthy Spike
George Weston Ltd. has posted positive numbers in its fourth quarter, thanks mainly to its baking business. The latter has enjoyed a lift from its focus on more whole-grain products. Weston posted net income of $249 million, or $1.85 a share, compared with a loss of $1million (six cents a share) in the same period a year earlier. Sales of whole-grain products did particularly well in Q4, with an overall increase of 7% in bakery unit sales. In the past year, Weston restructured its bakery operations by adding new products, closing plants and increasing prices. Source: Canadian Grocer E-Newsletter, March 3rd. 2006.

Frito Lay Works to Capture Ethnic Market
Frito Lay is introducing a new line of Asian-inspired potato chips and snacks in an attempt to capture Canada 's largest ethnic group. Wasabi- and spicy-curry-flavoured potato chips hit the Toronto and Vancouver markets in February. Their launch is being supported by a targeted marketing campaign in Chinese-language newspapers and television stations. Chips account for more than 50% of Canada 's $1.1-billion salty snack-food market. According to NPD Canada, 32% of Canadians eat chips at least once a week. Research suggests that Canadians are starting to seek out more intense and exotic flavours. Frito Lay created and tested roughly 40 different chip flavours, including seaweed, cucumber and green tea, before choosing wasabi and spicy curry. Source: Canadian Grocer E-Newsletter, March 3rd. 2006.

Loblaw Bears Down on Technology
Predicting future consumer demand, Loblaw Cos. Ltd. is leading the charge on putting point-of-sale data to effective use. Loblaw has been using software for the past 18 months to forecast demand and drive replenishment at hundreds of its more than 1,000 stores. Up next is a plan to manage warehouse inventory and other corporate assets using the same data. Ideally, say company executives, the software will be able to account for seasonal changes and react to peaks and valleys in such a way that Loblaw could better ensure in-stock levels for its customers. The company is converting all of its stores from frame-relay communications to a DSL-based high-speed network. It is also working to upgrade its self-checkout software. In one store, the retailer is testing a new "two-handed" U-Scan system from Fujitsu that will allow two items to be scanned at once. Source: Canadian Grocer E-Newsletter, March 3rd. 2006.

Coutu Canadian Sales Rise; American Sales Drop
Jean Coutu Group Inc. has said that, while sales at its American stores are on the decline (same-store sales at its US network fell 0.1% in January), sales at its Canadian outlets are on the rise. The company bought 1,549 US Eckerd drugstores in July 2004 (for US$2.4 billion) and has struggled with their integration. Total US sales fell 1.4% to $709.4 million in January, reflecting, in part, the closing of 78 Eckerd stores. Meanwhile, overall sales at Jean Coutu's Canadian stores rose 3% to $186 million. Source: Canadian Grocer E-Newsletter, March 3rd. 2006.

Loblaw Introduces Clothing Line
Loblaw Cos. Ltd. has announced plans to launch a low-priced, private-label apparel line, in a further effort to increase its competitiveness against Wal-Mart Canada. The company hopes that its Joe Fresh rollout will counter the disappointing financial results it has encountered with a number of non-grocery introductions. Loblaw will redesign some of its superstores to accommodate the expanded apparel section. Meanwhile, Wal-Mart Canada is getting ready to unveil more food and apparel at its larger superstores across the country, late this year or early next. Source: Canadian Grocer E-Newsletter, March 3rd. 2005.

Canadian Tire eyes Mortgages, GIC's
Canadian Tire Corp., the iconic retailer known for printing it's own "money", is considering offering mortgages, investment savings accounts and other financial products to it's customers. The strategy is meant to fuel growth over the next five years for the retail chain, which has about 1,100 stores, gas stations and car washes in communities coast to coast. "We are evaluating new products and services within Canadian Tire Financial Services to include things like mortgages, things like high-rate savings (accounts)" and guaranteed investment certificates, chief executive Wayne Sales said at a retail conference held by CIBC World Markets yesterday. Source: Madhavi Acharya-Tom Yew-Toronto Star Business Section, March 2, 2006.

Giant Tiger coming to GTA soon
Giant Tiger plans to open stores in Mississauga and Brampton this spring. In Mississauga, a 26,000 square-foot is set to open March 18 at 3200 Erin Mills Parkway in a former Food Basics location. In Brampton, a 38,000 square-foot store is to open April 1 in the Kingspoint Plaza at 370 Main St. N. (Highway 10) in a former A&P grocery store. Jeff York, the president of Ottawa-based Giant Tiger Stores Ltd., says the company has had good response to its new stores in Ajax, Newmarket, Bradford, Bolton and Acton. "We have had numerous requests from customers to open more stores in the area", he says. Giant Tiger, a privately held Canadian company, was established in 1961 in Ottawa's Byward Market and now has 159 locations throughout Ontario, Quebec, Manitoba, Saskatchewan, Alberta and New Brunswick. There are 99 stores in Ontario. Source: Toronto Star, Saturday edition, February 18, 2006, Food section.

Capers Certified as First Organic Grocer
Capers Community Markets, a natural and organic foods retailer based in Vancouver, has become the first certified organic grocer in Western Canada. Capers has been certified by Quality Assurance International (QAI), an independent third-party certification organization in the US that recognizes compliance with strict national quality standards, as governed by the USDA’s National Organic Program (NOP) Standard. (Canada doesn’t currently have a national standard and certification system, but it is currently in the process of developing and implementing one.) A grocer must successfully pass a rigorous voluntary organic grocer certification process to receive this designation. Capers is the first company in Canada to do so. All of Capers’ three Greater Vancouver locations are now certified in produce, bulk grocery and pre-packaged goods. www.capersmarkets.com. Source: Canadian Grocer E-Newsletter, February 3, 2006.

Giant Tiger Stores Come to Metro Toronto
Giant Tiger Stores Limited has announced plans to move into the Greater Toronto Area. The Ottawa-based private company will open two stores in the GTA this spring: one in Brampton, another in Mississauga. The former will be a 38,000-sq.-ft. store, the latter a 26,000-sq.-ft. store. Giant Tiger recently opened locations in Ajax, Newmarket, Bradford, Bolton and Acton, Ont. Giant Tiger is a discount store known for its selection of clothing, groceries and everyday basic needs. Established (1961) in Ottawa's Byward Market, it has grown to 159 locations (99 in Ontario) throughout Ontario, Quebec, New Brunswick, Manitoba, Saskatchewan and Alberta. www.gianttiger.com Source: Canadian Grocer E-Newsletter, February 3, 2006.

Consumers Seek Balance in Food Intake
Canadian consumers are looking for balance among taste, nutrition and convenience while demanding easier meal-preparation solutions, according to the recent NPD Group report. The 8th annual Epic report, by the global grocery consumption research company, also indicated that meals continue to move out of home, and that ageing and obesity are leading to three trends: nutrition versus indulgence; consumers looking for a point of differentiation in food; and preventative measures. "The rate of dieting in Canada is trending up," said Marion Chan, vice-president of the NPD Group. Last year, 19% of Canadians were on a regular diet compared to 16% in 2001. Older Canadians are imposing diets on themselves as a preventative measure, said Chan. While in 2000 some 23% of Canadians depended on their doctor's advice regarding diet, that number tumbled to 16% last year. The Canadian Food Guide also lost ground, as fewer Canadians (42% last year, down from 50% five years ago) indicated that they followed the government guidelines. While CFG has lost some of its relevance to a significant number of consumers, 61% of Canadians over the age of 45 reported that they frequently check labels to determine whether the food they’re considering purchasing contains anything they’re trying to avoid. The annual Epic report covered food consumption at breakfast, lunch and dinner. Source: Canadian Grocer E-Newsletter, February 3, 2006.

Humpty Dumpty Appoints CEO
Humpty Dumpty Snack Foods Inc. has appointed Darek Nowakowski president and chief executive officer. Most recently, Nowakowski was general manager and vice-president of the fresh foods group for Maple Leaf Foods Ltd. Source: Canadian Grocer E-Newsletter, February 3, 2006.

Empire to Establish REIT
Empire Co., which controls Sobeys Inc., has announced plans to set up a real estate investment trust that will focus on developments outside eastern Canada. The Stellarton, NS-based company plans to retain a 49.5% ownership stake in Crombie Real Estate Investment Trust, subject to the effects of a 5% overallotment option granted to the underwriters. The REIT will initially own a mixed portfolio of 44 properties, including strip malls, enclosed shopping centres and office buildings. It will capitalize on its relationship with Sobeys to drive expansion in neighbourhood shopping centres. Grocery-store-anchored malls have proven a successful cash-flow generator. Empire has a long-standing real-estate subsidiary that has developed sites for other arms of the Sobey family holdings. These include Sobeys Inc. and Empire Theatres Ltd. Source: Canadian Grocer E-Newsletter, January 30, 2005.

Metro Suffers Profit Hit; Still on Acquisition Trail
Following its acquisition of A&P Canada, Metro Inc. continues to look for potential properties—in spite of shrinking profits. Canada's third-largest supermarket chain posted a 17% loss in profits in its third quarter. Company president and CEO Pierre Lessard said: "If an opportunity arrived in Canada I think we'd be quite interested in looking at any acquisition." He also indicated that the company has its eye particularly on western Canada. Expansion in the West would help the Montreal-based company become a national chain. Metro's first-quarter profits came in at $32 million, or 28 cents a share. That compares with $38.6 million, or 40 cents, in the year-earlier period. The company chalks its drop mostly up to the costs of integrating its 236 newly acquired A&P and Dominion stores. Metro sales for the quarter, meanwhile, rose 74% to $2.52 billion. Source: Canadian Grocer E-Newsletter, January 30, 2006.

CCC Shuts Down Seven Stores
Consumer Community Co-operative (CCC), Canada 's second-largest retail food co-operative, closed seven of its stores in Atlantic Canada in January in response to poor sales. An eighth store will be converted to private, independent ownership. The news did not come as a surprise to industry insiders; according to one source, some CCC retail outlets have been unprofitable for a decade. Four of the closing stores are in Nova Scotia: in Bras d'Or, Amherst, Middleton and Bridgewater. The rest are in Fredericton and Saint John, NB; and Corner Brook, NL. The closures leave approximately 130 full-time and part-time employees out of work. The CCC outlet in Summerside, PEI, is still operational, pending discussions of its transfer to an independent. In all, the CCC will now operate 18 stores. Source: Canadian Grocer E-Newsletter, January 30, 2006.

Supervalu to Buy Albertson's
Albertson's Inc. has agreed to be purchased by an investor group led by Supervalu Inc., a deal that will divide the grocery chain among retailers and financial buyers. The purchasers will pay US$9.7 billion in cash and stock. They will also assume US$7.7 billion in Albertson's debt. With the announcement, the closely watched and complicated auction for the struggling chain comes to a close. The deal features the takeover of 1,124 stores by Supervalu, making the Minneapolis-based company the second-largest supermarket company in the United States, after Kroger. Source: Canadian Grocer E-Newsletter, January 30th. 2006.

Hudson Bay sells to Zucker
The board of Hudson's Bay Co., Canada's oldest company, unanimously agreed Thursday to a sweetened $15.25-a-share offer from U.S. billionaire Jerry Zucker's investment firm. Mr. Zucker's Maple Leaf Heritage Investments Acquisition Corp. will pay about $860.4-million plus debt for the shares it doesn't already own, up from its previous offer of $832.2-million. That's 50 cents per share more than its last offer. The move comes after several other parties expressed interest in buying the 336-year-old retailer, among them U.S. equity firm Cerberus Capital Management LP and buyout powerhouse Onex Corp. with mall developer Mitchell Goldhar, the Globe and Mail reported. Today's offer, however, likely seals the deal, analysts said. “I can't imagine that there's going to be a white knight that comes out of the woodwork,” Lori Wachs, president and portfolio manager at Delaware Investments, told Report on Business Television. “I would imagine that everyone's looking to close it sooner rather than later.” Advertisements Hudson's Bay, established in 1670, is Canada's largest department store retailer. It has 550 stores as part of the Bay, Zellers and Home Outfitters chains. The company employs almost 70,000 people across Canada. “The board has conducted a thorough process to maximize value for the shareholders of HBC, and after considering several offers for the company, has unanimously endorsed and is recommending that shareholders tender to the amended offer,” Yves Fortier, Hudson's Bay's governor, said in a statement. “We are satisfied that the amended offer constitutes full and fair value for the company.” Hudson's Bay shares jumped $1.10 or 7.9 per cent to $15.03 in Toronto with 10.7 million shares changing hands. The conditions on the offer, which expires Feb. 24, have been significantly reduced. The amended offer is conditional on a minimum of 662/3 per cent of the shares of HBC being tendered (from a 90-per-cent threshold in its last offer), tender of a majority of HBC's unsecured subordinated debentures under the offer and the receipt of all necessary regulatory approvals. “On behalf of the management of HBC, we are pleased with the outcome of the auction process and fully support Mr. Zucker's enhanced offer,” said George Heller, HBC's president and chief executive. Mr. Zucker has also offered to buy all of the outstanding 7.5 per cent convertible unsecured subordinated debentures due in 2008 at $1,010 for each $1,000 principal amount of debentures, the company said. “We are pleased to have reached this agreement with HBC today and to be associated with a company with such a long and proud history,” Mr. Zucker said in a statement. “Through the implementation of more efficient methods we will positively differentiate HBC from its competitors.” Maple Leaf will mail the amended offer by Feb. 10. Maple Leaf's Robert Johnston told ROB-TV his firm boosted the price after a closer look at HBC's books and with the intention of changing the offer to friendly from hostile. There is a break fee, he said, though he didn't specify how much. He said Maple Leaf doesn't plan to sell large chunks of the Canadian retailer. “In a large part, we have no plans to sell any major assets to any other retailers,” he said. Apart from his pursuit of Hudson's Bay, Mr. Zucker isn't widely known in Canada. Few of the secretive billionaire's investments are household names or marquee properties. His Charleston, S.C.-based holding company InterTech Group Inc. owns mainly obscure chemical and engineered product makers. Mr. Zucker also owns electronics companies, hockey rinks, laser tag centres, banking machine suppliers, two Charleston restaurants and commercial real estate. At various times, he's also owned banks and textile makers, including Montreal-based Dominion Textile Inc. His ragtag collection of businesses generated an impressive $3-billion (U.S.) in revenue last year, making InterTech one of the largest private companies in the United States, according to Forbes Magazine. The magazine also ranked Mr. Zucker as the 346th wealthiest American in 2004, with an estimated fortune of more than $1-billion. He grew up in Florida and South Carolina, where his parents settled, and went to the University of Florida, where he earned undergraduate degrees in math and science, plus a masters in electrical engineering. Mr. Zucker's first notable business deal was in 1982, when he was still in his early thirties. He and a colleague bought a division of the textile manufacturer where they worked, RM Engineered Products. He used the investment as a springboard for a series of increasingly larger manufacturing acquisitions in the 1980s, including several divisions of then-shrinking chemicals giant E.I. du Pont de Nemours & Co. Maple Leaf owned about 18.8 per cent of HBC in October when he began bidding for the company. Source: By TAVIA GRANT Thursday, January 26, 2006 Posted at 2:40 PM EST Globe and Mail Update

Turnaround for Jean Coutu
The Jean Coutu Group Inc. has posted a profit of US$30.8 million in its second quarter. This comes on the heels of a loss a year ago. With more than 2,000 drugstores in the U.S. and Canada, the Montreal-based company's earnings for the quarter ended November 26 amounted to 12 cents a share. This contrasts sharply with the US$4-million (or four-cent-a-share) loss the company posted a year earlier. The previous quarter's results included a foreign-exchange loss on monetary items of US$19.7 million. Revenue, meanwhile, enjoyed a slight rise, to US$2.71 billion from US$2.7 billion. Company officials have credited the turnaround to improved sales growth in the U.S., partially offset by issues associated with supply chain disruptions. Source: Canadian Grocer E-Newsletter, January 16, 2006.

Kraft Foods May be Spun off?
Industry speculation is in full throttle on the timing of Altria Group's predicted spin-off of the company. The company owns 85% of Kraft Foods. The spin-off is of particular interest in Canada, in the wake of Kraft's announcement of the sale of some of its Canadian operations. The Illinois Supreme Court's decision last month to toss out a US$10.1 billion class-action lawsuit against Altria's Philip Morris USA unit, has added further interest in Altria's next move.

Safeway Turns Spotlight on Private Label
According to Supermarket News, Safeway has announced plans to focus on itself as a brand in the coming year, with an expanded marketing push in that direction. Executive vice-president, marketing, Brian Cornell, has referred to the company's design to move "from a fragmented portfolio [of corporate brands] to a clear, broad architecture" that will consolidate Safeway's existing 70 labels into 10 "power brands." This will essentially create a consumer packaged goods company within the larger corporation. Source: Canadian Grocer E-Newsletter, January 16, 2006.

MasterCard Commits to Chip-Enabled Cards
Chip-enabled payment cards promise to be the wave of the future, if the 12 MasterCard card issuers and five payment processors make good on their recent promise to introduce these sophisticated improvements to our retail existence by 2010. This unprecedented commitment to chip technology means increased security (they require the use of a PIN), convenience and value to consumers and businesses. A chip card contains a microchip akin to a small computer processor with memory, logic and a set of software applications. Chip cards have the capacity to store more information than the current magnetic-strip cards, and therefore the capability to implement sophisticated payment applications and customized programs. For example, businesses can design more flexible reward programs that can be activated instantaneously when a customer chooses to use a certain payment application. Source: Canadian Grocer E-Newsletter, Jan. 6,2006.

Green, Specialty Tea Sales Enjoy Healthy Spike
Sales of green and specialty tea have surpassed the standard black variety, according to ACNielsen. Green tea sales grew by 37% this year, following a 31% increase the year before. Specialty tea sales now account for more than half of all tea sales. This is especially the case in western Canada, where green and flavoured teas have been outselling regular black for a few years. (In the Atlantic provinces, specialty teas had only 20% market share). The shift to green and specialty teas seems to be powered by an increased interest in health and wellness. Recent research suggests that tea is rich in natural antioxidants—flavonoids—that enjoy a reputation for reducing the risk of heart disease, strokes and certain types of cancer. Green tea is said also to be a protective agent against a range of other health conditions, such as blood clots and the common cold. Tetley Canada is the country's biggest tea seller. It has a 43% share of regular tea, and a 23% share of specialty tea. Among the latter category, the company sells 27 types, including seven kinds of green. Source: Canadian Grocer E-Newsletter, Jan.6,2006.

Canadian Beef Returns to Japan
Canadian beef was back in some Tokyo supermarkets on December 27, for the first time in two years. Canadian beef has been absent from Japanese shops since BSE was discovered in an Alberta cow in 2003. Hanamasa Co., a Tokyo-based operator of supermarkets and restaurants, imported about eight tonnes of beef from Ontario for its 10 outlets in the Tokyo area. The company plans to launch full-scale sales of Canadian beef in late January or February, with prices comparable to those before the ban. Canada exported between 10,000 and 20,000 tonnes of beef a year to Japan before the ban. Prior to the import halt, Japan was the third-largest importer of Canadian beef, after the United States and Mexico. There have been 21 cases of mad-cow disease reported in Japan since 2001. Source: Canadian Grocer E-Newsletter, Jan.6, 2006.

Kraft to Sell Five Canadian Plants
Kraft Foods Inc. will sell five of its Canadian grocery assets to US-based buyout firms. The financial terms of the transaction, which includes the sale of Kraft's Aylmer vegetables and Primo pasta brands to two private US equity firms, were not disclosed. Kraft Foods has said that its five Canadian production facilities had total annual sales of about $300 million last year. The transaction includes a plant at Chambly, Que., and four plants in Ontario: St. David's, Dresden, Exeter and Toronto. The sale, which is expected to close in the first quarter of 2006, will affect about 800 workers. The announcement is in line with Kraft's strategy to restructure by shedding its portfolio of slower-growing businesses and regional assets in favour of global brands such as Maxwell House, Cracker Barrel and Post cereals. The two buyers, in this case, are Sun Capital Partners Inc. and EG Capital Group LLC. EG Capital was part of a US-led consortium that paid $27.6 million for control of Laura Secord in 2004, when the chocolatier ran into financial problems. Source: Canadian Grocer E-Newsletter, Jan. 6, 2006.

Coolbrands Signs Disney
Coolbrands International Inc. has made a deal with Disney Consumer Products, the licensing arm of Walt Disney Co., in the hopes that the latter's popular characters will yank the frozen treat maker out of a slump. Coolbrands, which posted a US$74 million annual loss recently, took a massive hit to its earnings with the loss of a Weight Watchers licensing agreement, along with the virtual collapse of its Atkins diet-branded products (and a $55.5 million goodwill impairment charge). In the quarter ended August 31, the company, whose products include Eskimo Pie, Breyers Yogurt and Yoplait Frozen Yogurt, lost $64 million. The Markham, Ont.-based firm will launch five new frozen novelty items, based on animated characters in the US market, in March. Among them will be Mickey Mouse, ice cream bars based on Finding Nemo and ice cream cones based on The Incredibles. Coolbrands' CEO David Stein has said that the company plans to focus on three brands: Godiva, Yoplait and Disney. Source: Canadian Grocer E-Newsletter, December 23, 2005.

Shoppers Poised for Success in New Drugstore Scene
The drugstore business is thriving, and Canada's largest player stands to benefit nicely from the trend. An ageing demographic spells an increased demand for medication and health products. That demographic change is just one of several factors that explain why Shoppers' shares have enjoyed such a ride, of late. The stock gained 8.2% in December alone and, among analysts who follow Shoppers, about 71% surveyed by Bloomberg Business News gave the stock a "buy" rating. Overall, analysts say those retailers who play into the demonstrated demand for fancy new stores and who build upon customer loyalty will enjoy the most success in this promising new landscape. Independent retailers, meanwhile, might have a job ahead of them winning allegiance from customers and support from vendors. Source Canadian Grocer E-Newsletter, December 23, 2005.

Wal-Mart Announces Superstores
Wal-Mart Canada Corp. has announced plans to open supercentres late next year, complete with an expanded grocery section. The first of three supercentres will open in London, Ont. It has long been speculated that the retail behemoth would import the massive discount stores that populate the landscape south of the border, to Canada. Some sources suggest that Wal-Mart may introduce supercentres in Canada by converting its six Sam's Club stores. Loblaw and other supermarket chains have enhanced their discount divisions and lowered their prices in recent years, in preparation of the supercentre's crossing of the border. In the United States, supercentres have a full selection of grocery products along with general merchandise. They have hurt major grocery chains there by taking an ever-larger market share. It is widely expected that supercentre's arrival in Canada will result in eroded profit margins and an intensified promotional activity across the board. Source: Canadian Grocer E-Newsletter, December 23, 2005.

Kellogg to use beans to reduce fat
Grand Rapids Mich. - Starting early next year, some products made by Kellogg Co. will contain oils derived from genetically modified soybeans to reduce or eliminate trans fatty acids and minimize saturated fats, the cereal maker said yesterday. Source: Toronto Star, December 10, 2005.

Pattison Makes a Splash in Niagara Falls
Jimmy Pattison, the owner of Overwaitea Food Group, is moving into hotel/resort development in Niagara Falls. He has announced plans to develop the 100,000-sq.-ft. Great Wolf Lodge park and hotel in the tourist town. In addition to the water-park-centred undertaking, the company is also developing an aquarium on an adjoining site. The Jim Pattison Group will invest more than $200 million in the two attractions.The Vancouver tycoon has also leased two parcels of land on Clifton Hill, Niagara Falls, Ont., the area that contains the greatest concentration of tourist sites, to develop more attractions. Pattison said he expects the Great Wolf Lodge Niagara Falls to be completed in April 2006. Source: Canadian Grocer E-Newsletter, December 5, 2005.

E.D. Smith's Profits Mount
The E.D. Smith Income Fund has a strategic U.S. acquisition and a new line of healthier products to thank for the boost its third-quarter profit. The jam and condiment maker posted a $2.3 million profit for the period ending October 1, or 17 cents a unit diluted, compared with $1.3 million—or 15 cents—in the same period a year earlier. Sales for the three-month period increased 30.1% to $49.2-million from $37.8 million. The rise in profit was also marked by 3% organic growth—from core businesses excluding new acquisitions—in E.D. Smith's Canadian retail and foodservice divisions. Source: Canadian Grocer E-Newsletter, November 17, 2005.

Coffee Supply on Track After Katrina
Procter & Gamble Co.'s Folgers coffee plant is running at full capacity, having recovered from Katrina's impact. The hurricane, in August, left the company running at reduced capacity and suffering supply disruptions. The company announced its intention to be operating at full capacity by early December. The Cincinnati-based company also predicted that its Folgers coffee deliveries to retailers will have returned to normal by early December. Folgers is the top-selling U.S. retail coffee brand by volume, and it has about a 40% share of the U.S. market for coffee sold at supermarkets and chains including Wal-Mart Stores Inc. The company closed all four of its coffee facilities in the New Orleans area on August 27, including a storage plant for green coffee. P&G gets US$1.6 billion, or about 3% of sales, from coffee. Source: Canadian Grocer E-Newsletter, November 17, 2005.

Jean Coutu Reassumes Company Control
In an unexpected shakeup in North America's fourth-largest drugstore chain, family patriarch Jean Coutu has reassumed the chief executive post of his eponymous company. The 78-year-old founder, chairman and controlling shareholder, who stepped down from that role three years ago, replaces his 50-year-old son Francois. The younger Coutu will take up the title of vice-chairman at the Longueuil, Que.-based firm, and will remain president of the Canadian operations. Brother Michel, 52, meanwhile, will carry on as head of the US division. And Pierre Legault—who is head of the dermatology division of Paris-based pharmaceutical giant Sanofi-Aventis SA and is one of the company directors—has been appointed executive vice-president, in charge of the integration of the Eckerd stores as of mid-January. It is believed that Jean Coutu's return to the helm is an effort to fix the struggling Eckerd stores in the US, and to restore uneasy investor confidence. Last year, the company bought 1,549 Eckerd stores for US$2.4 billion. The Jean Coutu Group Inc. had its debt rating cut one level by Moody's Investors Service recently. The rating, which applies to US$2.9 billion of debt, was cut to B2 from B1, five levels below investment grade. As well, Moody's is not closing the door on the possibility of making further cuts. Source: Canadian Grocer E-Newsletter, November 17, 2005.

J&J to Buy Rembrandt
Johnson & Johnson has announced its plans to buy the Rembrandt brand of oral care products from Procter & Gamble’s Gillette Co. As part of the deal, J&J will acquire all of the Rembrandt products, including toothpastes, whitening strips, whitening systems and mouth rinses. The company said the sale likely will close before year's end, but has yet to disclose a sale price. Source: Canadian Grocer E-Newsletter, Nov. 11, 2005.

Shoppers’ Earnings Soar
Store-network expansion, increased sales of cosmetics and food, reduced interest expenses and a lower income tax rate have helped increase Shoppers Drug Mart’s net earnings by 19% in the third quarter. The country’s largest drugstore chain earned $108 million, or 50 cents per share, in the period ended October 8. That compares with $90 million (42 cents) in the same period a year earlier. During the same period, sales at Shoppers, which has 985 stores across Canada, grew in all categories and in all regions. Specifically, they increased 8.3% to $2.14 billion, and same-store sales rose by 5.2%. Meanwhile, prescription sales increased 8.6% in the third quarter to $1 billion (6.6% on a same-store basis). Source: Canadian Grocer E-Newsletter, Nov. 11, 2005.

A&P Enters Kids’ Clothing Game
A&P Canada has launched Simply Kids, a new private-label clothing and baby care products line. In addition to clothing suitable for children aged newborn to seven, the brand will include diapers, baby food, toiletry items, and accessories such as pacifiers, teething rings and blankets. The company contends that Simply Kids' quality will be "on par with department store national brands but will retail for approximately 10% to 15% less." Simply Kids, which is part of the which will be carried in all 235 of its A&P, Dominion, Ultra Food & Drug, The Barn and Food Basics retail locations across Ontario. Source: Canadian Grocer E-Newsletter, Nov. 11, 2005.

Wal-Mart Confirms Impact of EPC/RFID
Wal-Mart has confirmed that electronic product code (EPC)/radio frequency identification (RFID) technology has had a significant impact in reducing out-of-stocks. A recent University of Arkansas study concluded that Wal-Mart customers could find items they wanted in stock more often thanks to the retailer’s cutting-edge technology. Wal-Mart is encouraging its suppliers to adopt EPCglobal's recently ratified Gen2 global standard. Doing so on a widespread scale, says the retailer, would drive faster reduction in the technology’s cost, and would lead to acceleration in adoption. The 29-week Arkansas study, which was the first to compare the impact of EPCs on merchandise availability in functioning stores, also showed that out-of-stock items with EPCs were replenished three times faster than comparable items using standard bar-code technology. Wal-Mart also experienced a meaningful reduction in manual orders resulting in a reduction of excess inventory. The giant retailer is executing its rollout plan to bring additional stores, clubs and distribution centres online, both through this year and next. Source: Canadian Grocer E-Newsletter, October 21,2005.

Cott Takes Steps to Improve Results
Cott Takes Steps to Improve Results In an effort to compete against soft drink behemoths Coca-Cola and Pepsi, Cott Corp. has announced plans to rationalize its product lines and to shake up its management. Specifically, Cott will eliminate underperforming assets and focus its marketing on high-potential accounts. It's a major restructuring that is expected to cost as much as US$80 million over the next year-and-a-half. These moves take place against a backdrop that's seen the private-label soft drinks giant struggle against rising costs for plastics and aluminum, as well as changing consumer tastes away from soft drinks to lower-margin water and energy drinks. On top of this, the company's executive vice-president, Robert Flaherty, is moving on to pursue other interests. Flaherty was brought in to revive Cott's US operations nine months ago. Concurrently, Cott has announced a plan to realign its Canadian and US businesses, so its management can improve its supply-chain efficiencies and marketing efforts on a North American basis. This, say some analysts, is the response of a company to a state of being overwhelmed. Cott's shares fell 40 cents to $21 on the Toronto Stock Exchange on the day these announcements were made. Source: Canadian Grocer E-Newsletter, October 13, 2005.

Sobeys Doesn't Blink
Its loss to Metro Inc. of A&P Canada notwithstanding, Sobeys Inc. is in good shape. So said Sobeys chief executive Bill McEwan at a recent Scotia-Capital-funded conference. His company, he said, hasn't "lost any momentum in Ontario." He went on to concede that Canada's biggest province "has been, and will be for the foreseeable future, our biggest challenge and our biggest opportunity." McEwan added: "It would be inappropriate to leave any impression that we are disappointed in any way." Indeed, McEwan said Sobeys will benefit from a business that is poised for rejuvenation, now that the competition has ceased. He noted that the retailer has converted 72 stores to the Sobeys banner in western Canada, refocused the grocery business around groceries and shaved retail prices by 15% across the board in order to make the business more competitive. In the first quarter ended August 6, profit at Sobeys rose 3.4% to $48.2 million, or 74 cents a share, from $46.6 million (71 cents) a year ago. Sales rose 9.6% to $3.3 billion. Source: Canadian Grocer E-Newsletter, October 13, 2005.

Canadian RFID Centre Opens Doors
The new RFID Centre has opened its doors in Markham, Ont., offering Canadian companies the opportunity to experience business processes in the perishables, consumer packaged goods and retail industries that are based on the wireless system known as Radio Frequency Identification. The Canadian RFID Centre, which was launched with an initial investment of $1.7 million, is designed to give Canadian food producers, manufacturers, distributors and retailers the chance to better understand, experience, experiment with and test the latest RFID technologies and to demonstrate the potential business case for tracking products. According to IDC, worldwide RFID consulting, implementation and managed services expenditures are forecast to be approximately US$800 million in 2006. The Centre's founding partners are: the Canadian Council of Grocery Distributors, the Canadian Federation of Independent Grocers, the Canadian Produce Marketing Association, EPCglobal Canada (GS1 Canada), Food and Consumer Products of Canada, IBM Canada Ltd., Intermec Technologies Corporation, Symbol Technologies Inc., and Agriculture and Agri-Food Canada. Source: Canadian Grocer E-Newsletter, October 13,2005.

What's Happening
October 24-25: Grocery Innovations Canada, Toronto Congress Centre, Toronto. Tel. 416-492-2311, x222, or visit www.cfig.ca. See you there! Source: Canadian Grocer E-Newsletter, Sept. 23, 2005.

Couche-Tarde Regroups After Katrina
Some 200 of Alimentation Couche-Tarde Inc.'s employees are still unaccounted for, following Hurricane Katrina. The convenience store giant, which runs 4,861 stores across Canada and the United States, was forced to close 34 Circle K stores that were destroyed or seriously damaged (in Alabama, Louisiana and Mississippi) in the storm. In addition, many stores that sell gas were hit with shortages. Chief executive Alain Bouchard said the company would continue to pay uprooted workers, and will offer employees at its 11 New Orleans-area Circle K locations destroyed by Katrina the option of relocating. It isn't the first time Couche-Tarde has taken a big hit from Mother Nature. Last year, the company lost $3.5-million in pretax profit when four hurricanes struck Florida, resulting in the temporary closure of 34 stores and damage to 250 others. The company's stores and merchandise are insured, but not lost sales. Just the same, Couche-Tarde anticipates mitigating sales increases in places such as Baton Rouge, La., where refugees have arrived en masse. Source: Canadian Grocer E-Newsletter, Sept. 23, 2005.

Albertsons Considers Sale
Albertsons, the second-largest grocery chain in the United States, is exploring the possibility of selling underperforming, non-core assets. The decision was made in an effort to become leaner and more profitable. The company refused to discuss the results of its recent strategic review until its board of directors had approved a deal. While the Idaho-based chain's financial results have improved markedly over a year ago (in June, it announced that its quarterly profit had tripled from a year earlier, and its second-quarter net earnings were US$107 million, up from US$104 million in last year's second quarter), management has conceded that it has been hurt by increased competition from companies such as Wal-Mart. Management insists that Albertsons will not slow down or lose focus while negotiations are underway. Albertsons owns approximately 70 million sq. ft.—or more than 60% of its nearly 120 million sq. ft. of real estate. Source; Canadian Grocer E-Newsletter, Sept. 23, 2005.

Longo's Launches Healthy-Breakfast Campaign
In response to concerns about the impact of poor nutrition on childhood obesity, Longo's of Greater Toronto Area is launching a curriculum-based campaign to encourage families to eat healthier, better-balanced breakfasts. Longo's School Grocery Store Nutrition Tour program is intended to help teachers educate children—from pre-school through grade five—about good nutrition in a fun and interactive way. The program was developed by Longo's registered dietitians and food experts in consultation with students, teachers and parents. It provides important nutrition information that is based on the health and physical education curriculum of the Ontario Ministry of Education. The one-hour tours are free for schools. Upon completion, teachers and students receive literature, a teacher feedback form and nutritional resource lists. To register, schools can call or visit their local Longo's store. Source; Canadian Grocer E-Newsletter Sept. 23, 2005.

Van Houtte Expands into Mac's Chain
Van Houtte Inc. is moving to grab a bigger chunk of the North American convenience-store market. Most notably, the gourmet coffee company has inked a deal to install self-service bars in 500 Mac's stores in Ontario. Mac's stores are part of the Alimentation Couche-Tard Inc. giant convenience store chain. The Van Houtte coffee will be Mac's private-label brand. The Montreal-based company, which gets about 65% of its revenue from serving the office coffee market, has also signed an agreement with U.S oil giant Chevron Corp. for a pilot program to test run its coffee-service kiosks at 45 Chevron stores in the Seattle area. Van Houtte already has a deal for self-service coffee bars in 115 Chevron Canada gas station stores in B.C, under its brand name. Van Houtte president and CEO Jean-Yves Monette called the expansion potential to North America's 130,000 convenience stores "phenomenal." Source: Canadian Grocer E-Newsletter. Sept. 23, 2005.

Solution Providers Join Forces to Highlight RFID
Major solution providers offering Radio Frequency Identification (RFID) products or services in Canada have joined a Strategic Advisory Council (SAC). Formed by EPCglobal Canada, SAC's mandate is to develop and implement strategic initiatives that will increase awareness and adoption of the Electronic Product Code (EPC) and RFID technologies within the Canadian supply chain. Founding members of SAC include Accenture, Allstream, Bell Canada, Cactus Commerce, Capgemini, Celestica, EDS, GXS, IBM, Intermec Technologies, Rogers Communications, Sun Microsystems and Symbol Technologies. In addition, three SAC sub-committees have been formed: a Targeted Industry Committee to identify then engage specific industry sectors; an Education and Training Committee to develop, deliver and maintain an education series; and a Marketing, Communications and Events Committee to identify activities that will increase awareness of RFID technology. Source; Canadian Grocer E-Newsletter, Sept. 23, 2005.

Scott Paper Gives Paper Towel New Name
ScotTowels is changing its name to SpongeTowels. ScotTowels is one of the best recognized product names in Canada. Scott Paper, a subsidiary of Kruger Inc. and manufacturer of new SpongeTowels, is poised to launch a massive national advertising and marketing campaign to support the product launch. The new SpongeTowel differs from the old ScotTowel with its embossed swirls—called Circles and Ovals—which make it stronger and more absorbent. Paper towels are a highly commoditized category that is extremely price-driven. In Canada, the category is worth $280 million. Source; Canadian Grocer E-Newsletter, Sept. 23, 2005.

Unit Sales Lift Empire Profit
Unit Sales Lift Empire Profit Empire Co. Ltd., Sobeys' parent company, reported first-quarter profit of $73.8 million, up $44.2 million from a year ago. This comes in part thanks to a gain of $24.2 million on the sale of Wajax Income Fund units (in June, Empire sold 2.5 million fund units of the Wajax Income Fund, an industrial services operator, for $44 million, to pay down debt). The grocery, cinema and real estate conglomerate's profit for the three months ended August 6 amounted to $1.12 a share, up from 67 cents a year ago. Analysts had been looking for earnings of 75 cents a share, according to a survey by Thomson Financial. CEO Paul Sobey told the company's annual meeting that Empire's management is pleased with the start to fiscal 2006. Meanwhile, revenue for the period was $3.36 billion, up 9.4%. The company said its profit before the capital gain and other items was $49.6 million, and amounted to share profit of 75 cents. Source; Canadian Grocer E-Newsletter, Jan. 23, 2005.

Sobeys Reports 4.1% Same-Store Sales Gain
Sobeys Inc. reported a slight hike in its profits in the first quarter thanks to a combination of new outlets, higher sales, effective merchandising strategies and investment in its stores. Specifically, the company enjoyed an overall sales gain of 9.6% and comparable-store increases of 4.1% during the fiscal first quarter ended August 6. Sobeys earned $48.2 million on sales of $3.3 billion during the quarter. In addition, Sobeys reported $0.74 of earnings, below its $0.79 forecast. Almost all of the difference was due to depreciation. Sales and EBITDA—with the exception of some M&A costs—were almost in line. In addition to cutting costs, the Stellarton, N.S.-based company added three new stores and renovated three outlets in the quarter. Sobeys Inc. announced an aggressive merchandising plan in a particularly competitive Ontario market. CEO Bill McEwan said he is "bullish" about the future. Source Canadian Grocer E-Newsletter, Sept. 23, 2005.

Loblaw Drops E-Grocery Arm
After a five-year run, Loblaw Cos. Ltd. is closing down its Internet grocery business. Rising oil prices and price-conscious consumers were blamed for the decision. Loblaw's Egrocer was launched in 2000 in Mississauga, Ont. It will close on September 23. In a notice to its 3,500 customers, Loblaw explained that most people were "not willing to spend more to have their groceries delivered to their front door." To soften the inconvenience, the company will mail a $25 gift card to its Egrocer customers. Egrocer staff will be redeployed within Loblaw. Source: Canadian Grocer E-Newsletter, Sept. 23, 2005.

Canadian RFID Centre Opens Its Doors
More than 75 grocery and related industry executives attended the official opening of the new RFID Centre in Markham, Ont., on Sept. 21. Located within IBM's Solutions Delivery plant, the $1.7-million "lab" will enable the Canadian industry to better understand, experience, experiment with and test the latest RFID technologies and demonstrate the potential business case for tracking products. The centre was created by nine founding partner organizations. "IBM has created other RFID briefing centres and labs around the globe, and this facility is truly a first for Canada," said Shai Verma, RFID practice leader, IBM Canada. The centre is the first in North America to demonstrate the use of Generation 2 technology which increases its applicability and stability to operate in different industries and environments. Built as a permanent facility, the centre will act as a focal point for Canadian industry RFID discussions. In coming weeks and months grocery industry executives are expected visit the centre and familiarize themselves with the various benefits of the new technology. Source: Canadian Grocer E-Newsletter, Sept. 23, 2005.

Shoppers Denies Walgreen-Takeover Speculation
Despite company claims to the contrary, Shoppers Drug Mart may be entertaining the possibility of being taken over by Walgreen Co., the largest drug-store chain in the States. Sales at Shoppers have gone gangbusters of late, thanks to an ambitious expansion; the introduction of new grocery, seasonal and high-end beauty lines; and strong profit increases. Just the same, Shoppers thrives in spite of a dispensing fee that, at $11.99, is about twice as high as that of its big-name competition. And prescription sales account for about 47% of Shoppers' $6.5-billion annual sales. The might of Walgreen's US$37.5-billion in sales would almost certainly have an impact on Shoppers' performance in this area. Source: Canadian Grocer E-Newsletter, Sept.2nd.,2005.

Lassonde Industries Announces Q2 Results
For the quarter ending July 2, 2005, Lassonde Industries Inc.'s net sales totaled $85 million, up 32% over net sales of $64.4 million recorded for the second quarter of 2004. At $158.3 million for the first six-month period of 2005, net sales were 27.5% higher than the results in 2004 for the same period. Operating income was $7.9 million for the quarter compared with $4.9 million for the same quarter the previous year, an increase of 61.5%. Operating income for the six-month period in 2005, meanwhile, was $13 million. That compares with $9.2 million for the same period in the previous year, an increase of 41.9%. Source: Canadian Grocer E-Newsletter, Sept.2nd.,2005.

Canadian Beef Bounces Back
Twenty-six months after news of the first case of bovine spongiform encephalopathy in an Alberta cow hit the airwaves, Canadian consumption of beef has actually increased. Canadians eat 1% more beef today than they did in 2002, before the BSE case emerged. And in the 12 months following the May 20, 2003, announcement, consumption increased an amazing 5%. What's more, industry surveys show consumer confidence in our beef remains at pre-BSE levels of 88%. In the meantime, the States and Mexico have reopened their borders to Canadian beef and Statistics Canada figures show that, by 2004, meat exports were back to 75% of pre-2003 levels. Source: Canadian Grocer E-Newsletter, Sept.2nd.,2005.

Maple Leaf Foods Files Notice of Intention
Maple Leaf Foods Files Notice of Intention Maple Leaf Foods Inc. has announced that it has filed a Notice of Intention to make a normal course issuer bid with The Toronto Stock Exchange and that the TSX has accepted the Notice of Intention. Under the bid, the company will have the right to purchase up to a maximum of 5,249,796—or about 5% of its total—of its common shares over the following 12 months. Source: Canadian Grocer E-Newsletter, Sept.2nd.,2005.

LCBO Pushes Wine in Tetra Pak
For the first time in Ontario, a premium French wine is being offered in a juice pack. The one-litre Tetra Pak holds a third more liquid (or two extra glasses of wine) for the same price as a traditional 750-mL bottle. It also costs less to handle and is more environmentally friendly because you can flatten it in the recycling bin. The first product sold in this revolutionary packaging is French Rabbit, made by Boisset, France's third-largest wine company. The Liquor Control Board of Ontario, the biggest wine buyer in the world, had put out a call for cost-cutting ideas. Source: Canadian Grocer E-Newsletter, Sept.2nd.,2005.

Jean Coutu to Close Some Eckerd Stores
The Jean Coutu Group has announced plans to close 78 of its Eckerd outlets in the States. The stores, head of US operations Michel Coutu says, are losing money. Jean Coutu bought 1,549 Eckerd stores in 2004. The purchase positioned the Montreal-based company as North America's fourth-largest drugstore chain. Source: Canadian Grocer E-Newsletter, Sept.2nd.,2005.

Softwood Lumber Dispute Might Squeeze US OJ
Fallout from the long-running softwood-lumber dispute between Canada and its trading partner to the south may reach grocers' shelves. In a recent round of developments, Canada has sought permission from the World Trade Organization to impose duties on US products to counteract the American decision to impose duties on Canadian softwood lumber, despite a North American free-trade agreement. Although Industry Minister David Emerson has yet to declare which US imports could be targeted for duties, Florida orange juice has been cited as a likely candidate. Source: Canadian Grocer E-Newsletter, Sept.2nd.,2005.

Kraft Foods Sweetens Quarterly Dividend Again
Well into a three-year restructuring effort begun in early 2004 to cut costs and boost investment in its brands, Kraft Foods Inc. recently sweetened its quarterly common dividend, for the fourth year in a row. The new disbursement on Class A and Class B stock will be 23 cents, up 12% from 20.5 cents. The company's CEO announced that this dividend increase reflects confidence in the company's ability to grow cash-flow and its commitment to returning value to shareholders. Source: September 2nd.,2005.

Metro Inc. retains A&P Canada name
Metro Inc.'s acquisition of A&P Canada will translate into "significant new growth opportunities for several national, regional and corporate brand vendors," according to a letter the company recently distributed to its suppliers. The letter, which was signed by Tony Morello, senior vice-president and chief merchandising officer, A&P Canada; and Johanne Choiniere, senior vice-president and general manager, Super C, indicated that focusing much of Metro-A&P's "immediate energy in pursuit of synergies" tops its agenda. The letter, dated August 22, featured a "A New Canadian Grocery POWER" logo below its dual name letterhead of Metro Inc. and A&P Canada. Morello and Choiniere said a business review is imminent—to identify potential synergies in the corporate brands, grocery, perishable and pharmacy areas of the company. It also expressed dedication to achieving synergies through cost optimization by leveraging the new collective size and scale in "every category while maintaining principles of category management, satisfying our customer expectation and creating value to all stakeholders." The company will provide more detailed information at two breakfast meetings: on September 13 at the Sheraton Laval, near Montreal, and on September 15 at the Toronto Congress Centre, near Pearson International Airport. Source: Canadian Grocer E-Newsletter, September 2nd.,2005.

Golden Pencil Winners Announced
The Food Industry Association of Canada has announced that Bill McEwan, president and CEO of Sobeys Inc., and Tim Penner, president of Procter & Gamble Inc., are this year's winners of the Golden Pencil award. The award ceremony will be held Nov. 21 at the Fairmont Royal York Hotel in Toronto. Source: Canadian Grocer E-Newsletter, September 2nd., 2005.

Loblaw Launches Wireless Service
After much speculation about Loblaw Cos. Ltd.'s next extension of its branded concept, the company has moved into the wireless business. The President's Choice private-label cellphone service, industry observers predict, could mark the start of a trend that will lead to an overall lowering of wireless rates. Customers can sign up for PC mobile service at Loblaw's supermarkets in Alberta. British Columbia, Ontario, and Quebec are expected to follow in coming weeks. PC mobile charges 20 cents a minute for local calls, according to the website. Bell Mobility, by comparison, charges 30 cents a minute for the first two minutes, and then five cents per minute thereafter. Other retailers have sold major wireless carriers' phones and prepaid offers for years. But the Loblaw offering is among the first examples of a branded cellphone service. Sears Canada Inc. offers wireless service through SearsConnect and 7-Eleven Inc. introduced its Speak Out Wireless service in the States last year. Source; Canadian Grocer E-Newsletter, August 19, 2005.

Alain Brisebois Heads A&P Canada
Alain Brisebois, Metro Inc. senior vice-president and 18-year veteran of the company, has moved to Toronto to take the helm at A&P Canada. In addition to running Metro Inc.'s $1.7-billion acquisition, Brisebois will spearhead the anticipated integration effort. Metro expects to reduce annual costs by $60-million in the process of integrating the A&P stores. In an exclusive interview with Canadian Grocer, Brisebois said Metro Inc. expects to complete integration within 24 months. "It's my main priority," said Brisebois. Looking for synergies and IT implementation will be top of mind, said the new head of A&P Canada. "We (Metro and A&P) have similar strategies. We have similar focus on discount and fresh. As well, we have two strong management teams. The integration should be straightforward. There is a bit of 'culture' difference but there's no overlap. We are pretty much complementary," Brisebois said. He added that the integration will provide diversification and scale, making the company number two in Canada's two largest markets. "There will be significant operational upside too," said Brisebois. Earlier this week Brisebois met A&P Canada's senior management team to explain the integration plan. "A letter will be sent to all employees very soon to explain the integration plan," he said. "At the end of two years the synergies of the two groups and the IT integration will make for a better corporation . . . We will pick the best practices of both Metro and A&P, rather than make A&P become Metro. A&P Canada will retain its name but drop the 'Limited,' since it's now a division of Metro Inc.," said Brisebois. There will be no change in A&P executive structure, said Brisebois. Referring to the widely speculated change in the name of either discount chain Super C in Quebec or that of Food Basics in Ontario, Brisebois said, "First we will assess . . . One of the first major steps of integration would be to look at Super C and to Food Basics." "This is a great personal challenge. I am very enthusiastic about the challenge to create a new powerhouse. We will keep A&P growing . . . To make it stand alone and grow by itself. We will definitely make a lot of noise," said Brisebois. Robert Sawyer, vice-president, retail operations, Metro Inc., succeeds Brisebois. Both will report to COO Eric la Fleche. Source: Canadian Grocer E-Newsletter,August 19, 2005.

Zellers Tests Grocery Concept
Zellers is unveiling a new face in an effort to be more things to more shoppers. Among its new features is a grocery section, called Neighbourhood Markets. Except in cases where mall operators have existing contracts promising exclusivity to grocery retailers, all new stores will include the new department, which will sell frozen and refrigerated food. The retailer’s recently opened prototype store in Toronto’s Cloverdale Mall is 100,000 sq. ft. In addition to the grocery section, it also has a large cosmetics counter, take-out food available from in-store diners and an array of exclusive fashion brands, including Alfred Sung Home furniture. Of Zellers 298 stores nationwide, parent company Hudson’s Bay Co. has renovated 176. It plans to close some of its older locations. By 2007, it will operate 275 stores, all of them designed to the 100,000-sq.-ft. prototype. Source: Canadian Grocer E-Newsletter, Aug.12,05.

P&G Profits, Costs Rise
Strong sales of such profitable products as Olay face lotions and Crest toothpaste, along with growing business in developing markets, have nudged Procter & Gamble Co.’s fourth-quarter profits up by 9%. But costs for such ingredients as pulp, coffee and oil have worked against this trend and depressed the company’s gross profit margins. So, too, has a tough pricing environment in some categories. Overall, the Cincinnati-based company’s profit for the quarter ended June 30 increased to US$1.49 billion, or 56 cents a share. That’s up from US$1.37 billion, or 50 cents a share, a year earlier. Sales, meanwhile, rose 10%, to US$14.26 billion. Source: Canadian Grocer E-Newsletter, Aug.12, 05.

Kraft Sets Up to Sell Two Units
In what investment banking sources are predicting to result in a US$200-million bidding war, Kraft Foods Inc. is considering selling two of its principal domestic units. Canada’s biggest pasta makers are expected to compete in this transaction with income trusts. The Primo line of pastas, sauces, soups and cooking oils and the Del Monte canned vegetables and canned and jarred fruits lines are believed to be the units that are poised to go on the block. The two units together did $300 million in sales last year. Kraft tried to sell these businesses four years ago, but took the divisions off the market when they didn’t attract the desired price. Source: Canadian Grocer E-Newsletter Aug. 12, 05.

Atkins Nutritionals Files for Bankruptcy
In the face of waning enthusiasm for the Atkins diet, Atkins Nutritionals has filed for Chapter 11 bankruptcy protection. The company, founded by Dr. Robert Atkins, was struggling to redefine itself in an era when consumers are looking beyond low-carb diet regimes as a means to lose weight. Published reports say that the company owes some US$325 million in principal and interest. In Canada, Atkins Nutritionals Inc. will ask a court to prevent the seizure of its assets as the company reorganizes in the States. Source: Canadian Grocer E-Newsletter, August 12,05.

Metro's A&P Purchase Biggest Canadian Grocery Acquisition in Years
Despite all indications that Sobeys would be the victor, Metro Inc. has purchased Great Atlantic & Pacific Tea Co. The Montreal firm will pay $1.7 billion ($1.2 billion in cash; $500 million in Metro stock) for the network of 579 food stores with sales of close to $11 billion. Metro Inc., which owns Metro, Metro Plus, Super C, Loeb and Brunet banners, has annual sales of $6.1 billion and 33,000 employees. A&P Canada, which operates 236 food stores in Ontario under the Dominion, Food Basics, A&P, The Barn and Ultra Food & Drug banners, has annual sales of $4.4 billion and more than 32,000 employees. The transaction is the biggest acquisition in Canadian grocery industry since Sobeys bought Oshawa Group Ltd.'s IGA stores in Ontario. Source: Canadian Grocer E-Newsletter, July 29,2005.

New Address for United Grocers Inc.
New Address for United Grocers Inc. On August 17, United Grocers Inc. will move from its present address (191 The West Mall, Suite 905, Toronto, ON M9C 5K8 ) to 295 The West Mall, Suite 100, Toronto, ON M9C 4Z4. The new telephone number will be (416) 626-6554. Source: Canadian Grocer E-Newsletter, July 29, 2005.

Shoppers Profit Up 16%
The addition of new cosmetics and food sections are believed to be behind Shoppers Drug Mart Corp.'s increase in second-quarter profit. The country's biggest pharmacy's net income climbed to $80 million, or 37 cents a share, an increase of 16%. The company has recently increased its offerings of convenience food, expanded the number of products it offers under its own label and added cosmetic brand names such as Dior to its wares. It also opened or expanded 18 stores in the second quarter. Source: Canadian Grocer E-Newsletter, July 29, 2005.

PepsiCo's Second Quarter Surges
PepsiCo's second-quarter profit was up 13%—outranking even the most optimistic analysts' estimates—thanks to surging demand in overseas markets. Drinks such as Gatorade in Europe and Asia are the clear growth drivers. International sales increased by 15% after PepsiCo expanded its distribution of sports drinks and Tropicana juices in markets such as China, and boosted promotions for the Mirinda soft drink brand in Argentina. Like rival Coca-Cola Co., PepsiCo has been suffering weak U.S. carbonated soft-drink sales. PepsiCo gets two-thirds of its revenue from the U.S. market. International beverage volume increased 10% in the last quarter, led by gains in the Middle East and China, as noncarbonated drinks surged more than 10%. Source: Canadian Grocer E-Newsletter, July 29, 2005.

Alcan May Sell Plastic Bottle Business
Alcan Inc., the world's second-largest aluminum producer, is considering divesting itself of its food packaging plastic bottle business to concentrate on more lucrative food packaging products. The plastic bottle unit employs about 495 across five plants: three in the United States, one in Canada and one in France. It had sales last year of $130 million. Montreal-based Alcan has hired a unit of JP Morgan Chase & Co. to assist in the possible sale. Source: Canadian Grocer E-Newsletter, July 29, 2005.

Couche-Tarde Poised to Expand—Again
Convenience store behemoth Alimentation Couche-Tard Inc. has announced its readiness to grow once more by acquisition. Couche-Tard CEO Alain Bouchard has intimated that his firm is in a financial position to handle a deal for $1 billion or more. Bouchard nixed the idea of a bid for the Dunkin' Donuts enterprise. More likely purchase candidates, say industry experts, are a handful of corner-store chains. Couche-Tard has led the consolidation of c-store chains in North America. Almost two years ago, the Laval, Que.-based company bought the American Circle K chain. In its last fiscal year, the company bought 49 stores, opened 44 c-store-contained fast-food restaurant counters and renovated 223 stores. With 4,845 convenience stores in North America, Couche-Tarde is the second largest, behind 7-Eleven Inc. Source: Canadian Grocer E-Newsletter, July 29, 2005.

Soft Drink Manufacturers Get Warned
A U.S. consumer group has called for soft drink manufacturers to introduce cigarette-style warnings on their packaging to alert consumers to the health risks associated with the sugar-laden beverages. People who overindulge in pop are more likely than their abstaining counterparts to be overweight, to develop diabetes, to have decaying teeth and to suffer other health problems, the Center for Science in the Public Interest has said in a petition to the U.S. Food and Drug Administration. The warnings are particularly warranted, it points out, because of the growing number of youth who drink pop Source: Canadian Grocer E-Newsletter, July 29,2005.

Ontario Health Minister Declares War on Obesity
Just as smoking was public-health enemy number-one for the 20 th century, it seems obesity will replace it in the 21 st century. So says Ontario 's new minister of health promotion, Jim Watson. "Fat is the new tobacco," Watson announced recently. Targeting obesity, he said, is one way to curb health costs related to diabetes, heart disease and other problems. To that end, Watson has scheduled a meeting with the Compass Group, one of the largest cafeteria operators in Ontario, to discuss improving the range of healthy foods available at operations in schools, hospitals and government buildings. Source: Canadian Grocer E-Newsletter, July 29,2005.

7-Eleven Revamping its Image
7 Eleven might not be the first place consumers would think of when considering their dinner options, but the convenience store retailer would like to change that. To change the way consumers regard it, the company is unveiling a plan whose objective is to make convenience stores less about pop and chips, and more about sandwiches, salads and meals-to-go. 7-Eleven also intends to locate more stores in the downtown cores of some of the largest North American cities. In Canada, the concept is being tested in downtown Vancouver, which has nine stores, and is expected to move east—hitting Calgary, Edmonton, Winnipeg and Toronto. The daily delivery of fresh food will be a unique selling feature for the company. Most convenience stores get their food every couple of days; at 7-Eleven, bakery products are wheeled out daily, along with sandwiches and produce. These developments unfold against a background of increasing competition in the convenience store sector, and rampant speculation that industry consolidation is imminent. Source: Canadian Grocer E-Newsletter, July 30, 2005.

Gillette, P&G to Merge
It was a close shave for a bit, but shareholders of Gillette Co. have overwhelmingly approved the company's US$57-billion acquisition by Procter & Gamble. With the two firms' merger, they become the world's largest maker of consumer products. Gillette chief executive, James Kilts, has said the combined company will "grow and prosper." The deal is the largest in the history of 167-year-old P&G. Its range of flagship brands includes Crest, Tide and Head & Shoulders. Among other products, Boston-based Gillette makes razors, electric shavers, Oral-B toothbrushes and Duracell batteries. Source: Canadian Grocer E-Newsletter, July 29, 2005.

Canadian Cattle Ban Lifted
Canadian cattle have started moving across the border into the United States again. Southward cattle sales ground to a halt when a case of bovine spongiform encephalopathy (BSE) was discovered in an Alberta cow in May 2003. The United States was about to lift the ban in March when U.S. District Judge Richard Cebull granted an injunction to a ranchers' group. It argued that trade with Canada would pose a threat to American consumers and cattle producers. The first shipment took place in mid-July, from Ontario to New York. The U.S. border is now open to a broad range of meat products, including cattle and bison that are less than 30 months of age, and goats and sheep that are less than 12 months of age. The cattle might have crossed even earlier, say a three-judge Circuit Court of Appeals panel that recently ruled that Cebull overstated the potential harm of allowing limited shipments of Canadian cattle into the States. The more-than-two-year moratorium on cattle exports has cost Canadian beef producers an estimated $7 billion. Source: Canadian Grocer E-Newsletter, July 29, 2005.

Wal-Mart Gets BC Rejection—Twice
Just days after Vancouver City Council famously turned down an application for a new Wal-Mart, Campbell River has rejected another proposal from the world's biggest retailer. After three nights of public hearings on the rezoning that would be necessary to accommodate the proposed 111,000-sq.-ft. store on a site close to the river, council made a decision that reflected the town's overwhelming opposition to the plan. The store was to have been on a 33-acre site close to Campbell River's downtown, in an area considered environmentally sensitive. The overwhelming concern articulated during the hearings was protection of the estuary. Source: Canadian Grocer E-Newsletter, July 29, 2005.

Loblaw Second-Quarter Profits Rise 7.1%
Loblaw Cos. Ltd.'s second-quarter profit, for the three-month period ending June 18, was $211 million, or 76 cents a share compared with $197 million or 71 cents a share in the year-earlier period. While an improvement over last year's numbers, the results are lower than those predicted by most analysts. Sales at Loblaws stores that have been open a year or longer have been virtually flat. "The number of greatest concern was the same-store sales, which came in at zero, including 2% inflation," said Perry Caicco, managing director, CIBC World Markets. "Adjusting for Easter boosts the number to 1%—still not healthy." Competitive square footage growth and Real Canadian Superstore cannibalization in Ontario, and supply-chain problems in western Canada depressed sales, said the CIBC analyst. "The massive back-end reorganization continues to impact front-end execution, and sales could be slow to rebuild," he predicted. Source: Canadian Grocer E-Newsletter, July 29, 2005.

Metro Inc. in deal to buy A&P Canada for $1.7B
Last Updated Tue, 19 Jul 2005 16:07:24 EDT CBC News Shares of Metro Inc. surged more than 13 per cent after the company said it is buying the A&P Canada chain of supermarkets for $1.7 billion in cash and shares. Metro shares were up $3.75 at $31.25 on the TSX. Montreal-based Metro is offering $1.2 billion plus $500 million of its class A shares to acquire the Canadian chain from The Great Atlantic & Pacific Tea Co. and its subsidiary A&P Luxembourg. The deal marks a major move for Metro into the Ontario market. A&P Canada operates 236 food stores throughout Ontario under the A&P, Dominion, Food Basics, The Barn and Ultra Food & Drug banners. A&P Canada has annual sales of $4.4 billion and more than 32,000 employees. When the deal is complete, Metro said it will have 579 food stores, including 283 outlets in Ontario, with annual sales approaching $11 billion. Metro already operates stores in Quebec and eastern Ontario under the Metro, Metro Plus, Super C, Loeb and Brunet banners. It has annual sales of $6.1 billion and more than 33,000 employees. "This is a unique opportunity to transform Metro's strong regional base into a significantly larger platform with increased scale and geographic diversification," said Pierre Lessard, the company's president and CEO. Metro said the deal, which is scheduled to close in August 2005, is expected to boost its earnings per share in 2006. Metro will assume some A&P debt. A&P said the Metro stock will give it a 15.8 per cent stake in the company, and it appoint two members to the Metro board. Source: CBC.CA Tuesday, July 19, 2005

Cadbury Introduces Eight New Bars
In the biggest chocolate launch in its history, Cadbury Adams Canada is rolling out eight new bars. The country's largest confectionery company is also repackaging its entire chocolate lineup in deep purple, its signature hue. Both moves are part of a rebranding initiative aimed at revitalizing sales and grabbing more face time in a competitive segment. Cadbury's rollout includes Cadbury Thins, Cadbury Delight, Cadbury Crisps, Dairy Milk Bubbly, Cadbury Peanut Butter, Mr. Chew Big, Caramilk Maple and Caramilk 2 Thick (the latter four are exclusive to the Canadian market). Other chocolate companies have made similar moves lately, including Nestlé, which has six versions of its classic KitKat bar, as well as new versions of its Aero, Coffee Crisp and Smarties lines. Source: Canadian Grocer E-Newsletter, July 8, 2005.

Pop Shoppe Comes Back
In a nostalgic move that's sure to tickle a certain generation of Canadians' memories, a Stoney Creek, Ont., businessman is resurrecting Pop Shoppe. Food and beverage entrepreneur Brian Alger started the trademark process of bringing back the Pop Shoppe brand in the spring of 2002. In its heyday, there were about 1,000 Pop Shoppes across the country where sugar-happy customers could pick up 24-packs of their favourites from among 30 flavours, including Bubblegum, Black Cherry, Pineapple and Lime Ricky.

Gillette to Relabel M3 Power Razor Packages
According to Advertising Age, Gillette Co. must abide by a US District Court ruling that will require it to "re-label millions of M3 Power razors on store shelves and in warehouses." This undertaking, which could cost as much as US $1.6 million (all told, say court documents, there are some 6.5 million packages that need to be changed), follows an earlier decision by the court that Gillette had to stop making claims that its battery-powered vibrating razor lifts facial hair to make it easier to cut. Initially, Gillette understood this ruling to apply only to animations and graphics—not assertions made on its packaging. Gillette competitor Schick, owned by Energizer, is apparently driving the demand for this alteration. Source: Canadian Grocer E-Newsletter, July 8, 2005.

Heinz to Purchase HP Foods
In a move that would group some of the world's best-known sauces, H. J. Heinz Co. is poised to purchase HP Foods Ltd. The US$860-million deal would put Lea & Perrins, Heinz 57 steak sauce and Heinz ketchup under the same umbrella. HP Foods is wholly owned by France's Groupe Danone SA. Danone's sauce brands, marketed primarily in Britain, the US and Canada, accounted for close to $292-million in revenue last year. Pittsburgh-based H. J. Heinz Co., the largest ketchup maker in North America, is said to be making this move so as to focus more on core areas such as condiments, meals and snacks, and infant nutrition. Analysts predict that the move might position Heinz to gain global control of the sauce market. Source: Canadian Grocer E-Newsletter, July 8, 2005.

E. D. Smith Revamps and Goes Public
E.D. Smith, the Ontario-based jam and private-label sauce maker, is undergoing a makeover in an effort to keep up with its competitors and to be more of a player on the world stage. To that end, the 114-year-old company has gone public, with the closing of a $110-million IPO and the creation of the E.D. Smith Income Fund. President and CEO Michael Burrows said the company plans to expand its private-label program and to join forces with more retailers. Source: Canadian Grocer E-Newsletter, July 8, 2005.

Cott Leads Private-Label Growth
Cott Corp., the world's largest private-label soft-drink manufacturer, bettered its sales by 16% last year, to US$1.65 billion. The private-label soft-drink category is growing as a whole, with US sales increasing by a fifth over the past two years. This segment now accounts for 11% of the US$24-billion market. Cott has 66% market share. Source: Canadian Grocer E-Newsletter, July 8, 2005.

Weston Sells Heritage
George Weston Ltd. has cut bait on the last of its fishing lines by selling Heritage Salmon, its east coast aquaculture operation. Weston, best known for its majority stake in Loblaw, sold Heritage to St. George, NB-based Cooke Aquaculture Inc. Heritage Salmon, based in Blacks Harbour, NB, operates in New Brunswick, Maine and British Columbia. Weston has also entered into an agreement to sell its American east coast aquaculture operations to Cooke, subject to regulatory approvals from the state of Maine. Weston expects to sell its British Columbia salmon business in the third quarter. The company did not disclose the financial details of the transaction, but when the deal was first announced in February, Weston took a non-cash charge of $147 million as the aquaculture business was declared a discontinued operation in its fourth-quarter results. This resulted in a $1-million net loss for the company for that period. Source: Canadian Grocer E-Newsletter, July 8, 2005.

Loblaw Calls Up Another Source of Business
Like several other Canadian retailers, Loblaw Cos. Ltd. is planning to expand its retail offerings to include cell-phone service. Retailer-branded cellular service—touted to be the cheaper alternative to conventional offerings courtesy of the existence of its existing sales staff and real estate—will piggyback wireless carriers' service in the hopes of exploiting brand loyalty among retail shoppers. Loblaw's plans to unveil a President's Choice wireless service through its grocery stores comes at the heels of 7-Eleven Inc.'s announcement that it would launch its Speak Out wireless service in Canada. Sears Canada, which already sells cellular service as an agent, is also said to be planning a similar service. In each case, the retailers will offer prepaid service (resold under a house brand) in partnership with one of Canada's big-three cellular service providers—Rogers Wireless, Bell Mobility or Telus Mobility. Source: Canadian Grocer E-Newsletter, July 8, 2005.

Wrigley Takes Candy
Gum giant Wm. Wrigley Jr. Co. has agreed to purchase a group of iconic candy brands, including Life Savers and Altoids, from Kraft Foods. The sale is for US$1.48 billion cash, and includes ownership of the Creme Savers brand, as well as Trolli gummy candies, Sugus candies, various regional and local brands, and additional production capabilities in the United States, Europe, Indonesia and Thailand. All told, these brands generate roughly US$500 million in sales for Northfield, Ill.-based Kraft Foods. According to published reports, the deal refocuses Kraft's attention on its trademark supermarket products. It also gives Chicago-based Wrigley the opportunity to shift its marketing might somewhat from gum to candy. Canadian Grocer E-Newsletter, July 8, 2005.

City Stares Down a Goliath
Vancouver has closed the lid on the possibility of Wal-Mart opening up inside its city limits. In a controversial city council vote, the world's largest retailer's plans to open Vancouver's first Wal-Mart were struck down. Only three of the 11 city council members, including the mayor, voted in its favour. The City Council rejected the Wal-Mart plan in spite of the many environmentally friendly features the proposed design for the 140,000-sq.-ft. outlet included, such as a windmill for generating electricity, skylights to take the place of standard fluorescent bulbs and a parking lot that doubled as an orchard. When Wal-Mart's proposal was made five years ago, it was immediately met with complaints from community groups about the deleterious impact such a development would have on local retailers. But the retail giant made significant efforts to meet its critics' concerns, including financing studies on area traffic and consulting extensively with the community. A spokesman for Wal-Mart Canada reportedly said that the company is "disappointed and surprised" at the decision. Wal-Mart already has locations in several Vancouver suburbs. Source: Canadian Grocer E-Newsletter, July 8, 2005.

Sobeys' Q4 Results in Line with Growth Plan
Exceeding analysts and internal expectations, Sobeys posted strong fourth-quarter earnings. Sobeys closed out with share prices (excluding VIE impacts) of $0.75—ahead of its $0.71 target—and a net income of $48.1 million. It reported a 26% spike in profits in the fourth quarter. Same-store sales were reported at +4.5%. And, allowing for anomalies such as the extra week in this quarter and inflation, ¿unit¿ same-store sales were up about 2.5%. Sobeys opened 13 stores in the fourth quarter, bringing its total expansion count in the last fiscal year to 41. To challenge Loblaw, Sobeys is said to be preparing a bid for 236 A&P, Dominion and Food Basics stores in Ontario owned by Great Atlantic & Pacific Tea Co. Source: Canadian Grocer E-Newsletter, July 8, 2005.

Biscuits Leclerc Spends $40 million on New Facility
Cookie maker Biscuits Leclerc has announced it has purchased a new facility in Quebec City for $40 million. The St-Augustin-de-Desmaures, Que.-based company said the new 200,000-sq.-ft. factory will be used to manufacture its own chocolate, increasing its capability to produce upscale pure chocolate cookies. The investment in the new facility, which the company boasts will be the most modern chocolate factory in North America, is, according to president and CEO Jean LeClerc: "In line with our constant desire to control the maximum elements . . . in order to assure the quality standards established by the company." Biscuits Leclerc—which also makes snack bars, cereals and pretzels—currently operates five plants in Canada and the United States, employing more than 480 people. Source; Canadian Grocer E-newsletter, June 17,2005.

General Mills Touts Whole Grains
Already a "pioneer" of whole grain cereals, General Mills Canada now boasts that whole grains are the primary ingredient in every one of its cereals, including popular varieties such as Cheerios, Oatmeal Crisp and Lucky Charms. The Mississauga, Ont.-based company says it is currently the only leading Canadian food manufacturer offering whole grains in all of its cereal brands. And for consumers who have difficulty identifying whole grain foods on store shelves, General Mills will feature banners on its packaging indicating the product is made of whole grains. The company has also launched a new website, www.wholegrainlife.ca, to further educate consumers about the benefits of whole grains. In a statement Christi Strauss, president of General Mills Canada said: "We believe our investment in whole grain will be good for the health of consumers and for the health of the cereal category in general." Source: Canadian Grocer E-newsletter, June 17,2005.

Costco Aiming to Expand Categories
Costco Wholesale Canada Ltd. wants to add a few new categories to its offering. The wholesale club, which has about 6.5 million members in Canada, says that by the end of the year it wants to start up a travel service—either online or through a telephone hotline—and add gas stations at most of its outlets. Canada's fourth-largest retailer—trailing only Loblaw, Wal-Mart and Empire/Sobeys in sales—says it is also trying to find a way to sell wine and spirits at all of its outlets. Costco already sells alcohol at its Quebec locations—and soon in Alberta—but regulations, says the company, are a hurdle in other provinces. The company also wants to take another stab at selling cars—which it tested, unsuccessfully, about a year ago but must first convince reluctant car manufacturers to agree to the idea. Source: Canadian Grocer E-newsletter, June 17,2005.

Wal-Mart to Target Wealthier Shoppers
In an effort to boost its bottom line, Wal-Mart Stores Inc. has unveiled a strategy to woo more affluent shoppers. At its recent annual meeting, Wal-Mart executives said they plan to target wealthier shoppers by sprucing up stores and offering more upscale, higher-margin products, particularly in the clothing and housewares categories. In addition to enhancing the shopping experience, the world's largest retailer also said it needs to make the company a better place to work. The new plan follows a less than stellar first quarter, where Wal-Mart missed profit forecasts, and a run of bad publicity for the retail giant. Source: Canadian Grocer E-newsletter, June 17,2005.

Sobeys Debuts New Magazine and Website
Canada's second-largest grocery retailer, Sobeys Inc., is stepping up its marketing efforts with the launch, last week, of a new magazine and website. The Stellarton, N.S.-based retailer says the two new communication vehicles are "designed to make food shopping easier and inspire Canadians with better food choices and information." It's also an opportunity for Sobeys to promote its private-label Compliments brand. Inspired magazine, for instance, will deliver information on more than 2,500 Compliments products along with articles, meal ideas, lifestyle tips and household solutions. The magazine will be distributed at all of the company's banners as well as to homes across Canada three times per year to support the Compliments brand's seasonal offerings—Likewise the compliments.ca website will feature lifestyle and product information. Both will also feature recipes created by chefs at its new Sobeys and Compliments Culinary Centre, which the retailer launched earlier this year. Source: June 17,2005.

Survey Says: President¿s Choice and Loblaws Among Best Managed Brands
Canada's business community has once again placed President's Choice and Loblaws among the top five best-managed brands in the country. Nearly 1,000 respondents of the second annual The Best Managed Brands In Canada survey ranked companies on a number of attributes related to delivery of its brand promise including consumer focus, customer service, value and trustworthiness. Tim Hortons topped the list for the second year running with a 52% ranking, followed by President's Choice with a 26% ranking (up from 20% in 2004) and Loblaws with 20% (up from 18% last year). Cirque de Soleil (19%) and Canadian Tire (16%) rounded out the top five. The survey, which appeared in a recent edition of Canadian Business magazine was commissioned by Toronto-based design and branding firm Cundari/Spencer Francey Peters (SFP). Source: Canadian Grocer E-newsletter, June 17,2005.

Heinz to Shed Weak European Units
Ketchup maker H.J. Heinz Co. says it plans to sell off some of its underperforming European businesses to focus on bigger, more profitable brands. The Pittsburg, Penn.-based company says it will sell its Hak line of European prepared vegetables and is considering selling various European seafood and frozen food businesses as well as its Tegel poultry operation in New Zealand. Heinz says it expects the overhaul to cost between US$75 million and US$100 million in pre-tax charges. The announcement came as the company reported a 5.1% rise in fourth-quarter profits (to US$206.5 million) for the period ending April 27, 2005. Sales rose 5% during the period on higher volumes and the benefit of a weak U.S. dollar. Source: Canadian Grocer E-Newsletter, May 31,2005.

Strong Sales Boost Campbell's Q3
Robust international soup sales as well as strong U.S. sales of snacks and baking products helped boost third-quarter earnings at the Campbell Soup Co. The largest soup maker in the United States posted a net profit of US$146 million, during the three-month period ended May 1, 2005, up from US$142 million a year ago. The Camden, N.J.-based company also reported a 4% increase in net sales, which reached US$1.74 billion in Q3. Douglas R. Conant, Campbell's president and CEO said of the results: "As planned, we have strengthened our margins, leveraging the pricing action and continuing our aggressive cost management...We expect a solid fourth quarter as the impact of the price increase on volume moderates. We are also looking forward to next year with new product introductions and a continued emphasis on enhancing product quality, convenience and availability." Source: Canadian Grocer E-Newsletter, May 31,2005.

Retail Sales Up in March
Increased consumer spending in the food and general merchandise sectors helped boost Canadian retailers' sales to $30.4 billion during March, according to Statistics Canada. The 0.2% increase in retail sales for March, from February, was unexpected, as analysts had forecast a 0.3% decline. While Statistics Canada said consumers had cut back on spending in four of the eight retail sectors—furniture (-1.5%), automotive (-0.8%), clothing (-0.7%) and building supplies (-0.6%)—higher consumer spending occurred in the food (+1.7%), general merchandise (+1.1%), pharmacy (+1.0%) and miscellaneous (+0.9%) sectors. Statscan said that consumer spending in retail stores has have been increasing in almost every month since the beginning of 2004, with the exception of declines in December and April of that year. Over the course of the period, consumer spending in stores has jumped nearly 10%. Source: Canadian Grocer E-Newsletter, May 31,2005.

Wal-Mart Gaining Ground in Canada
Now that Wal-Mart has eclipsed sales of Sobeys, Hudson's Bay Company, Canadian Tire and Sears Canada, The Globe and Mail, in a recent report, asked if Loblaw could be next. According to the report, in Canada Wal-Mart trails only Loblaw in total sales but the retail giant's recent first-quarter financial results show that it continues to gain market share on this side of the border with a 10% jump in sales and a 6% increase in same-store sales. In comparison, Loblaw, in its most recent quarter, reported same-store sales growth of 2.4%. In related news Wal-Mart Stores Inc. has once again landed the top spot in Planet Retail's annual list of top 30 grocers globally. According to Planet Retail Wal-Mart has expanded to nearly 6,000 outlets in 13 countries, ringing up sales of US$309 billion in 2004. Source: Canadian Grocer E-Newsletter, May 31,2005.

Grand Prix Winners Unveiled
A Quebec food manufacturer, Canada's biggest grocery chain and one the country's biggest non-food manufacturers were the big winners at the Canadian Council of Grocery Distributors (CCGD) 12th Annual Canadian Grand Prix New Product 2004-2005 Awards in Montreal Sunday night. A. Lassonde Inc. of Rougemont, Que., walked away with the All Canadian Award, in addition to the healthy innovation and cold beverage category awards for its Oasis Health Break (1.89-L). The Oasis beverage will represent Canada at next year's SIAL Paris international food competition. Loblaw Brands Limited won the beverage category in private brands for its President's Choice Green Apple Sparkling Soda and in the confectionery, snacks and dessert category for its The Decadent Molten Chocolate Cakes. The company's Mini Chefs Jungle Buddies won the award for frozen foods (private brands). Procter & Gamble Inc. dominated the non-food category with triple awards: Feel 'n Learn (baby care); Olay Moisturinse (body care) and Mr. Clean AutoDry Carwash (general merchandise). In private brands, Canada Safeway won the condiments and sauces category with its Select Jazz & Spice marinades and in prepared foods for its Signature Soups. More than 800 grocery executives attended the gala event, one of the highlights of CCGD's annual conference, which this year—for the first time—was held jointly with the Food and Consumer Products of Canada. A total of 1,050 people attended the three-day annual gathering. Source: Canadian Grocer E-Newsletter, May 31,2005.

COTY AGREES TO BUY UNILEVER'S FRAGRANCE BUSINESS
New York - Coty Inc. one of the world's top perfume and cologne makers, says it is buying Unilever's fragrance business for $800 million (U.S.), including megabrand Calvin Klein and other lines such as Vera Wang and Chloe. The deal was worth about $1 Billion (Canadian) at yesterday's exchange rate. Privately held Coty, based in New York, wants to rank among the five largest beauty products companies worldwide and said yesterday that adding Unilever's business, with sales of more than $600 million (U.S.) last year, will help advance that goal for the company. Consumer products giant Unilever, the Anglo-Dutch maker of Ben & Jerry's ice cream, Lipton drinks and Dove soap, has been shifting resources toward the heart of the company's business, food and personal care. Source: Christopher Wang, with files from Bloomberg News, Toronto Star, Business Section, May 21, 2005.

Earnings Up at Shoppers Drug Mart
Strong sales across the country and cost cutting helped Shoppers Drug Mart Corp. post a 20% profit increase during the first quarter of 2005. Canada's largest drugstore chain said its net income climbed to $61.7 million during the first quarter ended March 26, 2005, up from $51.3 million a year earlier. Sales during the period were up 10% reaching $1.56 billion, while same-store sales (at outlets open for more than a year) rose 6.7%. Quarterly sales for the Toronto-based retailer also benefited from an earlier Easter (it typically falls in Q2), which boosted seasonal merchandise. Shoppers Drug Mart also expanded its network of stores during the period by opening or acquiring 20 outlets. Glenn Murphy, chairman and CEO said of the results: "Fiscal 2005 is off to a good start on all fronts and we are pleased with our first quarter results. Our strong real estate program, combined with a focus on operational efficiency and margin management, continue to result in increased sales, market share gains and enhanced profitability." Source: Canadian Grocer, May 20,2005.

Gillette's Profits Rise 19%
Robust sales of razors and batteries helped propel first-quarter profits by 19% at Gillette Co. The Boston-based company—which is being acquired by Procter & Gamble—said net income swelled to US$449 million during the period, compared to US$376 million a year earlier. Gillette—maker of Mach3 razors and Duracell batteries—also reported that Q1 sales jumped 17% to US$2.61 billion. The company has also announced that it plans to raise North American battery prices by as much as 7% in August. Last January, Gillette agreed to be acquired by Procter & Gamble for US$57 billion; the deal is expected to wrap up in the second quarter of 2005. Canadian Grocer, May 20, 2005.

Saputo to Acquire U.S. Cheese Company
Montreal-based Saputo Inc., Canada's largest dairy processor, has agreed to acquire the activities of U.S.-based Schneider Cheese, Inc. for US$23.9 million. Wisconsin-based Schneider Cheese makes string cheeses and cheese sticks sold under the Schneider brand and other private labels. The company, which has 160 employees, generates annual revenues of US$40 million. Saputo says Schneider's assets will complement its U.S. activities. The deal is expected to wrap up at the end of the month. Source: Canadian Grocer, May 20, 2005.

A&P Canada Up for Sale
The race is on for bidders to secure what's being touted as "the deal of the decade,"—ownership of A&P Canada. Montvale, N.J.-based the Great Atlantic & Pacific Tea Co. Inc. confirmed last week that it has hired banker JP Morgan & Chase to find a buyer for its profitable Canadian business, which accounted for about one-third of the debt-ridden U.S. retailer's revenue last year. Up for grabs are 235 outlets in Ontario (operating under the A&P, Dominion, Ultra Food & Drug, The Barn and Food Basics banners), which are expected to fetch up to $1.9 billion, more than 10-times A&P Canada's earnings before EBITDA, according to analysts. Potential buyers are widely believed to be rival Canadian grocers Sobeys Inc. and Metro Inc., for which A&P would be a strategic asset, boosting their market share and putting them in a better position to compete with leader Loblaw. Citing competition regulatory issues, Loblaw, which commands 34% of the Canadian market, said it won't be making a bid for A&P Canada. Although rumours of the sale of A&P's Canadian business have been swirling for ages, Eric Claus, president and CEO of A&P Canada, told Canadian Grocer that now was the perfect time "to realize the best value for the Canadian assets." He added: "We are in no rush to sell. We have lots of liquidity. This is the time to get the best value for stakeholders, including shareholders and employees. Our Q1 was excellent. Last year's numbers were great also. Our relations with unions are excellent. We have prime locations." Source: Canadian Grocer, May 20, 2005.

Drug store chain plans expansion
Shoppers Drug Mart Corp. is driving forward this year with a twofold plan to expand its Canadian retail chain - by building more stores and making one quarter of its stores larger than 10,000 square feet. Shoppers Drug forecasts that 270 stores of the chain's current 925 regular drug stores and 49 Shoppers Home Health Care stores will meet that target this year, CEO Glenn Murphy told shareholders yesterday at the company's annual meeting. In the first quarter, Shoppers opened 20 drug stores, seven of which were relocations. Three outlets were closed. Source: Toronto Star, May 12, 2005

Loblaw Won't bid for A&P
Metro Inc., Sobeys most likely buyers. Loblaw Cos. Ltd., won't make a bid for rival A&P Canada because of competition regulatory issues, the chairman of parent company George Weston Ltd. said yesterday. Observers have said the most likely bidders for the Canadian division are supermarket chains Metro Inc. which operates predominantly in Quebec, and Sobeys Inc., of Stellerton, N.S. the Number 2 player in the grocery sector after Loblaw. Source: Toronto Star, May 12, 2005.

Record Quarter for Wrigley
Chewing gum giant the Wm. Wrigley Jr. Company reported record sales and earnings for the first quarter of fiscal 2005. Increased sales and a boost from a weaker U.S. dollar helped boost the Chicago-based company's Q1 profit 18% to US4131 million, up from US$111 million a year ago. Sales for the maker of Juicy Fruit and Hubba Bubba, grew by 17% reaching US$950.4 million for the period ending March 31, 2005. Sales were boosted by the company's 2004 purchase of the Joyco gum and candy businesses, which accounted for about one-third of the sales gains in Europe (up 16%) and Asia (up 39%). Source; Canadian Grocer, May 6, 2005.

Earnings Up at Kellogg
New products and increased marketing helped boost cereal giant Kellogg Co.'s quarterly profit 16%. The Battle Creek, Mich., maker of Rice Krispies and Eggo waffles, said its first-quarter net income increased to US$254.7 million, up from US$219.8 million in the same period last year, surpassing analysts' expectations. Sales during the period ending April 2, 2005, jumped 8% reaching US$2.6 billion, excluding the impact of a weaker U.S. dollar sales increased 6%. Source; Canadian Grocer E-Newsletter, May 6, 2005.

Coke to Buy Danone's Stake in Water Venture
The Coca-Cola Company has agreed to buy out French food company Group Danone's 49% stake in the companies' joint North American bottled water venture, for an undisclosed amount. Under the revised agreement between the companies, Coca-Cola will attain full ownership of five U.S. spring water bottling plants and will boost advertising spending for the flagship Evian brand by 20% over the next five years. Coca-Cola and Group Danone teamed up in 2002 to sell and market Dannon, Sparkletts and other water brands in North America. Source; Canadian Grocer E-Newsletter, May 6, 2005.

High Liner to Hold the Fats
High Liner Foods Inc. has announced that by year end all of its products will be trans fat free, have lower saturated fats and contain no added hydrogenated oils. The Lunenburg, N.S.-based company, which is one of North America's largest processors and marketers of frozen seafood and pasta, says the move is the result of the largest research and development effort in the company's 106-year history. High Liner also says the move is being made to "ensure every one of its products would give consumers a healthy meal choice." More than half of the company's products bearing these health claims are already on-shelf and High Liner says an additional 22 reformulated products will arrive in grocery stores by the fall. "Our goal was to maintain the great taste while enhancing nutrition," said High Liner president and CEO Henry Demone. "Reformulating our lineup is helping us to continue to lead our industry by providing healthy and nutritious food choices for consumers." Source; Canadian Grocer E-Newsletter, May 6,2005.

Rival Grocer More Likely to Buy A&P Canada, Report
A "determined strategic buyer," such as Sobeys or Metro, rather than a financial player is likely to place the winning bid for A&P Canada, should it be sold, according to The Globe and Mail. In a recent report, Globe reporter Andrew Willis wrote that A&P Canada—the bidding for which is expected to start around $1.2 billion—would likely be too pricey for players in the private equity community. While rival grocers will likely be willing to pay nine-times the company's earnings, before EBITDA, private equity funds traditionally pay five or six times a company's EBITDA, said the report. Further, a rival grocer is in a better position to quickly cut costs and improve the bottom line by combining operations. According to the report: "For anyone other than a rival grocery chain to buy A&P Canada would point to a massive change in the way private equity funds value acquisitions." Source: Canadian Grocer E-Newsletter, May 6,2005

PEPSICO JUICE LINE GROWS
Pepsico.Inc. the second-largest U.S. beverage maker, said yesterday it agreed to acquire Punica Gertranke Gambh, a top German maker of fruit juices and drinks, from Boston-based buyout firm J.W. Childs Associates LP for an undisclosed amount. Source: Toronto Star, May 3, 2005

RADIO SHACK READY TO SWITCH TO NEW CIRCUIT CITY BANNER
After 35 years as Radio Shack, one of the country's best-known consumer electronics retailers is changing its name to The Source by Circuit City. The move, to be formally announced today, comes after the retailer lost a court battle in the U.S. last month. RadioShack Corp. in the U.S. said the Canadian retailer, formerly owned by InterTan Inc., of Barrie, had violated its licensing agreement when InterTan agreed to be bought by rival U.S. consumer electronics retailer Circuit City Stores Inc. InterTan was Radio Shack's parent company in Canada. The name change is just one of several changes the Canadian unit will make this year, president and chief executive Brian Levy said yesterday. The 840-store chain said it plans to add more digital products. It will also begin experimenting with larger stores, doubling size to 5,500 square feet, Levy said. Source: Toronto Star, Business, April 27.2005

WRIGLEY INCOME HIGHER ON SWEETS AQUISITION
Chicago - Wm. Wrigley Jr. Co., the world's largest chewing-gum maker, said yesterday profit rose 18 per cent in its first quarter, beating analyst's estimates, helped by international sales after buying a candy business. Net income climbed to $131 million (U.S.), or 58 cents a share, from $111 million, or 49 cents a share, a year earlier. Sales increased 17 per cent to $950.4 million, the Chicago-based company said. Wrigley's Joyco candy business, which it bought last year, contributed about a third of the 39 per cent increase in Europe. Chief executive William Wrigley Jr. is extending beyond chewing gum with the agreement in November to buy Kraft Foods Inc.'s candy business including Life Savers and Altoids mints for 1.48 billion. Source: Toronto Star, Business, April 27,2005.

HY & ZEL'S SEEKS PROTECTION
Thronhill-based discount pharmacy trying to restructure. Market seeing more competition form Wal-Mart, Loblaw. Source: Dana Flavelle, Toronto Star Business, April 30/05

COUCHE-TARD EXPANDING IN U.S.
Alimentation Couche-Tard Inc., North America's fourth largest convenience-store operator, is acquiring 10 more U.S. stores and gas bars. One deal by the Laval, Quebec based company is for five convenience stores operated by Thornton Oil Corp., four in central Ohio and one in southern Indiana. The other is for four stores in central Illinois owned and operated by Broadus Oil Corp. under the Pit Stop banner with Citgo motor fuel. One independent store in western Illinois selling fuel under the BP banner will also be acquired. Source: Toronto Star, Thursday, April 7, 2005.

LEGO LOSS GROWS
Lego AS, Europe's largest toy maker, posted its third annual loss in five years yesterday as more consumers opted for electronic toys over traditional blocks and the company scaled down its business to adjust to a shrinking market. Source; Toronto Star, Thursday, April 7,2005

WAL-MART TOP FORTUNE 500
The retailer leads for the fourth straight year; Here are the top 5: • 1. Wal-Mart Stores • 2. Exxon Mobil • 3. General Motors • 4. Ford Motor • 5. General Electric. Source: CNN.COM, April 4, 2005

BEER GIANT TO CLOSE TORONTO BREWERY
Labatt Breweries of Canada announced yesterday the closure of its Toronto brewery this November, throwing 263 employees, many of them near retirement, out of work and leaving only one other plant in the province. Source: Toronto Star Business, April 1, 2005.

LOBLAW CLOSING OLDER DEPOTS
Canada's largest supermarket chain is closing six warehouses in Ontario and Quebec at a cost of 1,400 jobs over the next three years. Loblaw Cos. Ltd. announced the closings late yesterday, saying they were part of a previously disclosed plan to cut costs in the distribution system. Loblaw, which operated Loblaws, No Frills, Real Canadian Superstores and Zehr's, said some of the warehouses will be closed "within months". The last to close, and also the largest, is in Mississauga's Erin Mills community, Loblaw spokesperson Geoff Wilson said. The warehouse and associated trucking centre will close sometime in 2007 at a cost of 800 jobs, he said. The warehouses are not being replaced, he added. The company has recently opened several newer, state of the art facilities and now has "excess capacity", Wilson said. The newer warehouses are in Cambridge and Pickering and another on is planned for Ajax. Source: Toronto Star, Mar. 30, 2005, Dana Flavelle Reporter.

Coutu Invests in Canadian Operations
Longueuil, Que.-based Jean Coutu Group says it plans to double staff at its recently expanded Information Technology Centre in Longueuil, Que. by hiring 130 full-time employees. Coutu says it spent $6 million doubling the size of the 60,000-sq.-ft. facility that is used to keep track of customer prescriptions. Coutu, North America's fourth-largest drug store chain, says it will invest $18 million constructing a 250,000-sq.ft. distribution centre in Hawkesbury, Ont. The company says the move is necessary as its Longueuil distribution centre has expanded its limit and there'snot enough room to support continued growth of the Canadian network. Source: Canadian E-Newsletter, Mar.11,2005.

Canadian Tire Teams with Sobeys at its New Q Outlets
To appeal to time-poor customers and bolster thin margins, Canadian Tire has debuted an attractive new convenience store format called Q that offers everything from gas to branded coffee and groceries. Canadian Tire recently launched two Q test stores—which, the company says, stands for quality food, quick service, no questions—in Windsor and in Milton, both in Ontario, with an expanded convenience offering that includes a Starbucks drive-through and café, a Richtree Market restaurant and by the spring will also offer a 4,000-sq.-ft. Sobeys Express market. Emphasizing "fresh" Sobeys Express at Q will offer produce, flowers and a refrigerated deli case with cheese, meats and sandwiches. The new Q outlets are about 10-times the size of Canadian Tire's existing c-stores and Peter Kilty, head of the company's petroleum division said Q responds to a growing demand from Canadians for retailers to meet basic everyday needs in one location featuring convenience, quality, attractive pricing and an enjoyable shopping atmosphere. Source: Canadian E-Newsletter, Mar.11, 2005.

Strong Q4 for Canada Bread
Helped by strong sales of its healthier positioned bakery and specialty products, Canada Bread Company Ltd., reported a sharp jump in fourth-quarter earnings. The Toronto-based company—which is 86.9% owned by Maple Leaf Foods—saw its Q4 net earnings rise 63% to $19.3 million versus $11.8 million a year ago. Sales at Canada Bread increased to $348.1 million for the period ending December 31, 2004, up from $317 million last year. "In the fourth quarter and throughout 2004 we achieved very solid earnings growth, supported by our strong position in healthy, premium quality products, and our success in increasing manufacturing and distribution efficiencies across our bakery network," said Richard Lan, president and CEO of Canada Bread. Source: Canadian Grocer E-Newsletter, Mar.11,2005.

Beefy Profits for Maple Leaf
Canadian food processing giant Maple Leaf Foods Inc. saw its fourth-quarter earnings swell 23% to $33.2 million, compared to $27 million a year earlier. Sales for Toronto-based Maple Leaf rose 40% reaching $1.8 billion during the quarter versus $1.3 billion last year. Full year sales reached $6.4 billion, compared to $5 billion last year, helped by the acquisition of Schneider Foods. Excluding Schneider Foods, sales increased 11% in Q4 and 5% in 2004. "Our performance in 2004 reflects the underlying strength of our balanced portfolio of bakery and protein value chain operations," said Maple Leaf president and CEO Michael McCain. "We are maintaining our disciplined focus on earnings growth, increasing our value-added product mix and successfully integrating the Schneider Foods organization into Maple Leaf." Source: Canadian Grocer E-Newsletter, Mar.11,2005.

Canadians' Apt to Eat Healthier than Americans, Study
When it comes to eating, Canadians and their U.S. neighbours have very different habits, according to the NPD Group's recently released 2004 Eating Patterns in Canada (EPIC) report. According to the study, Canadians are more concerned about choosing healthy snacks than Americans with fresh fruit being the fastest-growing snack (40%) in Canada whereas in the United States chocolate candy (35%) is among the fastest-growing snacks. The study also revealed that for Americans, carbonated soft drinks are the most popular lunch beverage choice (30%) whereas Canadians prefer milk (29%). EPIC also found that although obesity is a problem in both countries, Canadians rely less on diets than Americans and place more emphasis on overall nutrition than on specific ingredients. Both Americans and Canadians did have one thing in common: both oppose trans fats. Marion Chan, director, NPD Group Canada says: "The trend against trans fats sends a clear message to all manufacturers and operators that they need to be more proactive in addressing these concerns." Source: Canadian Grocer, E-Newsletter, Mar.11,2005.

Earnings rise at Sobeys.
Helped by higher sales, Sobeys Inc. said its third-quarter net earnings rose 3% to $44.9 million, up from $44 million a year ago. Canada's second-largest retailer saw its sales climb 6.4% in the period ending January 29, 2005, reaching $2.92 billion, up from $2.74 billion last year. Same store sales increased 3.8%. "Improvements in merchandising and pricing and our ongoing investment in store network renewal continue to drive strong sales growth across the company," said Bill McEwan, president and CEO of the Stellarton, N.S.-based company of the results. "We continue to be pleased with the execution of our store productivity initiatives and we clearly recognize the opportunity and need to further reduce our overall cost structure." Source: Canadian Grocer E-Newsletter, Mar. 11, 2005.

A&P Canada not for sale.
The Financial Post is reporting that executives at A&P Canada recently held a conference call with its store managers to crush rumours that it is about to be sold. Quoting unnamed sources the report said CEO Eric Claus and senior vice-president of operations Vince Bertrand said the division was "strong" and "not for sale." Rumours have been swirling that U.S.-based Great Atlantic & Pacific Tea Co. Inc. is considering selling-off the profitable Canadian business; a move that some industry observers speculate could earn the struggling retailer a $1-billion injection of cash. Sobeys Inc. and Metro Inc. are widely regarded as the obvious buyers of A&P's 237-store Canadian operation, with both chains believed to be eager to bolster their position in the Ontario market to compete more effectively with Loblaw. Source: Canadian Grocer E-Newsletter, Mar.11,2005.

Strong Quarter for Shoppers Drug Mart
Meeting analysts' expectations, Toronto-based Shoppers Drug Mart Corp. reported that its fourth-quarter profit swelled 27% to $85.3 million, up from $67.2 million a year ago. Canada's largest drug store chain also said sales rose to $1.21 billion, from $1.21 billion in the year earlier period, which had an extra week. Shoppers Drug Mart chairman and CEO Glenn Murphy said: "Going forward, profitable growth through real estate development remains a top priority for our Company. At the same time, we are confident that the business will continue to generate more cash flow than is necessary to fund our stepped-up capital investment program." The company opened 29 drug stores during the quarter, 10 of which were relocations. Source: Canadian Grocer E-Newsletter Feb.22/05.

J.M. Smucker Posts Record Sales
Helped by its Multifoods acquisition last year, the J.M. Smucker Company has reported its third-quarter sales were up a record 60%. The Orrville, Ohio-based food company said its sales for the period ending January 31, 2005 were US$550.2 million, compared to US$343.8 million a year ago. The Multifoods businesses contributed $187.6 million to sales in the quarter. J.M. Smucker—the largest producer of jams, jellies and preserves in the United States—saw its net earnings rise 15% to US$36.1 million from US$31.3 during the same period last year. Source: Canadian Grocer E-Newsletter, Feb.22/05.

Healthy and Convenient Products Grow
Food and consumer products that save time and promote feeling and looking healthy are among the fastest-growing items at Canadian retail outlets, according to a recent report by ACNielsen. “What we’re seeing is the momentum toward self-care and time-saving devices continues to grow fueling a 5.2% growth in retail sales and a 1.8% growth in related manufacturing,” says Nancy Croitoru, president and CEO of Food and Consumer Products of Canada, who commissioned the biennial state of the industry report jointly with the Canadian Federation of Independent Grocers and the Canadian Council of Grocery Distributors. The report notes that the fastest-growing categories include: bagged leaf vegetables (38%), refrigerated entrees (65%), frozen fruit (35%), natural health supplements (29%) dietary aids (18%) and spot removers (33%). Indulgent products also made their mark with chocolate bars growing (41%), as well as cocktail mixes (28%). Source: Canadian Grocer E-Newsletter, Feb.22/05.

Earnings Up at High Liner
Lunenburg, N.S.-based High Liner Foods Inc. saw its fourth quarter net income increase to $3 million, up from $0.7 million a year ago. The frozen fish and pasta company said the rise in income reflects the contribution of its Arnold's Cove assets, which were disposed of during the quarter ending January 1, 2005. After adjusting for the strong Canadian dollar, High Liner also reported that its sales were down 10% to $62.1 million during Q4. Source: Canadian Grocer E-Newsletter, Feb.22/05.

Sobeys Launches Culinary Centre
Sobeys Inc., Canada's second-largest grocery retailer, has teamed up with two leading Canadian culinary schools to create the Compliments Culinary Centre. Named after Sobeys' private label brand, Compliments, the new centre will be used to develop new products for the retailer. Belinda Youngs, Sobeys Inc.'s executive vice-president and general manager, consumer brands and innovation, said: "We know our customers are looking for quality, convenience, selection and value—and they're looking for exciting new products. By reaching out to the talent and enthusiasm in our country's leading culinary colleges, we can continue to meet and exceed our customers' needs." The two schools participating in the project are Toronto's George Brown College and the Nova Scotia Community College, which has locations throughout the province. Source: Canadian Grocer E-Newsletter, Feb.22/05.

Clorox Co.'s Q2 Boosted by Henkel Deal
Oakland, Calif.-based Clorox Co. said its second-quarter profit increased more than 500%, helped by the transfer of some of its brands to German consumer goods giant Henkel in exchange for its 29% stake in the company. Clorox reported that its Q2 net income rose to US$699 million from US$109 million a year ago. Sales during the period ending December 31, 2004 climbed 8.7% to US$1 billion. The household goods company is hoping that the introduction of new products and increased marketing will help it fend off rivals such as Procter & Gamble. Source: Canadian Grocer E-Newsletter, Feb.9,2005.

Profits Rise at PepsiCo
The world's second-largest beverage maker is reporting an 8% jump in earnings for its fourth quarter. Purchase, N.Y.-based PepsiCo Inc. said its Q4 net income increased to US$985 million from US$914 million a year ago and is attributing the rise to higher volumes and beneficial foreign exchange rates. Limited-time only promotions also helped the beverage company's sales to increase 9% to US$8.8 billion. PepsiCo also announced that it plans to reduce its stake in the Pepsi Bottling Group Inc. from 42% to 35% by unloading 7.5 million shares. Source: Canadian Grocer E-Newsletter, Feb.9,2005.

Sweet Returns for Hershey
U.S.-based Hershey Foods Corporation reported a record fourth-quarter performance with profit soaring 17%. Surpassing analysts expectations, Hershey said its net earnings for the period ending December 31, 2004 rose to US$170.3 million, up from US$144.9 million a year ago. The chocolate maker is attributing its strong gains to robust sales of new and limited edition products, which boosted sales 7.5% during Q4 to US$1.27 billion. Last December, to offset the rising costs of raw and packaging materials, as well as employee benefits, Hershey raised its chocolate bar prices nearly 6%. Source: Canadian Grocer E-Newsletter, Feb.9,2005.

Costco Set to Launch Online Canadian Store
Hoping to woo customers seeking bargains, warehouse retailer Costco Wholesale Corp. is set to roll out an online store for the Canadian market in mid-February. Industry observers say that this latest move by Costco in Canada—which sells everything from butter to big screen TVs—will help it retain its lead over its Wal-Mart-owned rival, Sam's Club. The company says a shifting assortment of about 1,200 items will be offered for sale on the website, about one-third of what it sells at its warehouses. Bob Nelson, VP of financial planning & investor relations at Costco, told a CIBC World Markets retail investor conference last week that the company expects to generate first-year sales of $80 million from the online store. Source: Canadian Grocer E-Newsletter, Feb.9,2005.

Couche-Tard Expands Again
Alimentation Couche-Tard, North America's fourth-largest convenience store operator, has grown again. The Quebec-based retailer has signed an agreement to buy 19 gas bar outlets in the Augusta, Ga. area for an undisclosed amount from QVS Inc. and Brosious & Holt Properties. The stores, which operate under the Pump N Shop banner, are expected to add US$60 million to Couche-Tard's annual revenues. The company says the move "compliments their expansion plans" in the Southeastern United States where the company is aiming to eventually operate 500 stores. The Pump N Shop stores will boost Couche-Tard's presence in the area to 274 outlets. The deal is expected to wrap up at the end of March. Source: Canadian Grocer, Feb.9,2005.

Wal-Mart Proposes "Green" Store for Vancouver
Hoping to, at last, gain a foothold within Vancouver's city limits; Wal-Mart Canada is pitching an environmentally-friendly store design to sway city council. Plans were submitted to the council last week and the proposed $30-million dollar project boasts power-generating wind turbines, climate-controlled skylights and geothermal heating, which are expected to cut energy use by 37%, water use by 48% and carbon dioxide emissions by 40%. Wal-Mart has been attempting to get the site, on Vancouver's Southeast Marine Drive, rezoned since 2001 and in 2003 the city told it to come up with a "green" design for the proposed 120,000-sq.-ft. store. Wal-Mart's plans to set up shop in Vancouver has sparked heated debate in the city and it will likely take several months before the retail giant finds out whether its bid has been successful. Source: Canadian Grocer E-Newsletter, Feb.9,2005.

Strong Q3 for Saputo
Montreal-based dairy giant Saputo Inc. saw its profits rise sharply by 16.6% in the third-quarter period reaching $58.3 million. The company attributes the increase mainly to its Canadian operations "which showed positive volume growth." During the quarter, the company said it also benefited from a one-time tax reduction against future tax balances. Saputo—which produces cheese, milk and snack cakes—also reported that its revenues were up 5.6%, reaching $942.2 million in the quarter ending December 31, 2004. Source: Canadian Grocer E-Newsletter, Feb.9,2005.

Earnings Up at Loblaw
Loblaw Cos. Ltd., Canada's largest grocery retailer, saw its fourth-quarter earnings rise 14.6% to $337 million, up from $294 million a year ago, and its full-year earnings rise to $968 million, also a 14.6% increase. Toronto-based Loblaw also reported that its fourth-quarter sales were down 0.7% to $6.3 billion, noting that on a comparable 12-week basis—there was an extra week in same 2003 period—its Q4 sales grew 6.8%. Same store sales were up 1.4%, after adjusting for the extra week. In its report to shareholders the company said in 2005 it “will look to reach several new important milestones” including the opening of its new headquarters in Brampton, Ont. during the third quarter and its internal reorganization of its merchandising, procurement and operations groups. Source: Canadian Grocer E-Newsletter, Feb.9,2005.

COUCHE-TARD Georgia on its mind
Convenience-store operator Alimentation Couche-Tard Inc. has picked up 19 gas-bar stores in the Augusta, Ga., area with about $60 million (U.S.) in annual sales. Laval, Que.-based Couche-Tard and other outlets in Canada and 23 American states, said yesterday the purchase from QVS Inc. and Brosious & Holt Properties LLC is expected to close at the end of March. Couche Tard did not disclose financial details. Source: Toronto Star Business Section, Feb.4, 2005.

Associations Launch Campaigns to Help Fight Child Obesity
To combat criticism about their contribution to childhood obesity and to fend off further government regulations, two associations in the United States have recently launched campaigns aimed at fighting the problem. Representing vending machine equipment manufacturers and product suppliers, the National Automatic Merchandising Association (NAMA) is striving to show consumers there's a wide array of balanced food choices available in vending machines. NAMA says it plans to colour-code products sold in its machines—green for healthier choices and red for products that are not as healthy. Meanwhile, the Sugar Association is set to launch a multi-million dollar campaign to help improve sugar's image, which has been battered, the association says, by the low-carb trend and by manufacturers of artificial sweeteners. Part of the campaign will stress that one teaspoon of sugar is a mere 15 calories and not harmful if taken in moderation. Source: Canadian Grocer E-Newsletter, Jan.28, 2005.

U.S. Unveils New Dietary Guidelines
Eating less and exercising more are keys to maintaining a healthy weight, according to the U.S. government's most recent dietary guidelines. Dietary Guidelines for Americans 2005, contains 41 key recommendations that emphasize such things as eating more fruits and vegetables, whole grains and low fat dairy products while limiting consumption of fats, particularly trans fats. The 2005 edition of the guidelines—they're revamped every five years—also stresses the link between diet and exercise and recommends Americans engage in 60 to 90 minutes of daily physical activity. The new guidelines are being unveiled at a time when a staggering two-thirds of Americans or either overweight or obese. Source: Canadian Grocer E-Newsletter, Jan. 28, 2005.

Kraft to Stop Targeting Kids with Sugary Snack Advertisements
With childhood obesity rates on the rise, Kraft Foods Inc. says it will no longer advertise its sugary foods to kids under the age of 12. In 2005 the Northfield, Ill.-based food giant says it will shift the mix of products it advertises in television, radio and print media viewed primarily by children aged six to 11. This means Kraft will no longer target younger kids with ads for products such as Oreo and Chips Ahoy! cookies, sugary Post cereals and Kool-Aid beverages. Instead the company will replace these ads with those for products the company deems are healthier. "We recognize that parents are concerned about the mix of food products being advertised to younger children," said Kraft executive VP, global corporate affairs, Mark Berlind. "The initiatives we're announcing today are part of our ongoing efforts to help address that concern." Source: Canadian Grocer E-Newsletter, Jan. 28, 2005.

Chinese Supermarket Chain Opens Third Store in GTA
Capitalizing on the huge and growing Asian population in the Greater Toronto Area (GTA), T&T Supermarket of Richmond, B.C. has opened its third outlet in the city's east end. The 65,500-sq. ft.-store—T&T's 12th Canadian outlet—will be the chain's largest, and will also house Asian sub-tenants, including a food-court, gift and service operations. The new store, whose aisles are 45% wider than the industry average, has an in-house bakery a barbecue counter, an Asian deli and sushi bar. The company says it may open another store in Vancouver this year and is considering another in the GTA—probably in Mississauga or North York. A second Calgary store is also under consideration. Ottawa and Montreal will be in T&T's plans within two to three years. Canadian Grocer E-Newsletter, Jan.28 2005.

Shoppers Drug Mart Backs Off Controversial Supplier Fee
Angry reaction from suppliers has forced Shoppers Drug Mart Corp. to retreat from an unusual move, made last month, of imposing a 20% "preferred vendor" charge on its key suppliers. According to the Financial Post, at least four big suppliers of Shoppers Drug Mart's Life and Quo brands have had the controversial charge waived, leading some analysts to believe the retailer will have to scrap it altogether or face a "supplier revolt" from those not yet excused from the fee. The retailer sparked outrage last month when it issued a letter to all of its private label suppliers announcing a 20% deduction from its November-December payments to them to cover an allowance for marketing and merchandising programs. The move has also caused the investment community to react with at least one analyst downgrading the retailer's stock. Some analysts are speculating that Shoppers, facing a weak fourth quarter, made the unprecedented move to improve its financial results. The company has announced it will release its Q4 results on February 10. Source: Canadian Grocer E-Newsletter, Jan. 28,2005.

Ontario Reviews Liquor Business
The Ontario government has launched a major review of the province's monopoly Liquor Control Board of Ontario (LCBO). An independent panel has been given the task of looking at how liquor, beer and wine are distributed and sold in Ontario and examining the options that are open to the province, which may include such things as permitting wine and beer to be sold at corner stores to establishing LCBO franchises or turning it into an income trust. Greg Sorbara, the provincial finance minister, insists the LCBO—a cash-cow for the province, generating $3.3 billion in annual sales with about a third of that paid to the government in taxes—is not for sale, but that the review has been launched to see if more value can be created for taxpayers and to overhaul a "patchwork of polices and agreements" surrounding alcohol distribution, which have not seriously been looked at since the 1920s. Source: Canadian Grocer E-Newsletter, Jan. 28, 2005.

PepsiCo's Smart Spot Comes to Canada
PepsiCo is the latest food company to appeal to consumers' growing appetite for healthier food choices with the unveiling of its Smart Spot program in Canada. PepsiCo has stamped the packaging of more than 100 of its food and beverage products with a bright green Smart Spot symbol to clearly indicate to consumers that it considers the item a healthier choice. For one of PepsiCo's products to earn a Smart Spot symbol it has to meet criteria—based on guidelines from the U.S. National Academy of Sciences, the U.S. Food and Drug Administration as well as from Canadian nutritional experts—such as limits on fat, cholesterol, sodium or added sugar. PepsiCo also uses the new symbol to identify fortified products or those containing "other wholesome ingredients." Popular brands such as Tropicana orange juice, Baked Lays potato chips, Rold Gold pretzels, Quaker oatmeal and Diet Pepsi cola are among the products bearing the new symbol. The program, which made its debut in the United States last July, is supported by a consumer website (www.smartspot.ca) that explains the program and provides information on nutrition and active living. Source: Canadian Grocer E-Newsletter Jan.28/2005.

P&G buys Gillette for $57B
NEW YORK (Reuters) - Procter & Gamble Co. said Friday it would buy Gillette Co., for about $57 billion in stock, uniting two iconic U.S. producers of household goods ranging from Pampers diapers to Duracell batteries. The combined company would boast more than $60 billion in annual revenues, giving it increased leverage at stores ranging from discounters to grocers. The maker of Tide is paying an 18 percent premium for Gillette, best known for its razors. P&G promised cost cuts of up to $16 billion, heralded lay-offs of 4 percent of the combined 140,000 workforce and set a stock buyback of up to $22 billion in the next 18 months. Source: (Reuters)CNNmoney January 28, 2005: 6:04 AM EST

Connors Brothers Expands Operations
Already North America's largest branded canned seafood company, Connors Bros. Income Fund is diversifying by adding two U.S. packaged meat companies to its business. The Black Harbour, N.B.-based company—parent of the Clover Leaf and Brunswick tuna brands—has announced that its Bumble Bee Seafoods subsidiary has inked a deal to acquire Castleberry/Snow's Brands Inc.—the U.S. market leader in canned clams, clam juice and hot dog chili sauce—for US$93 million, with plans for Bumble Bee to merge into Castleberry's. In a separate deal, Connors Bros. Bumble Bee subsidiary is also paying US$45 million for Sara Lee's shelf-stable meats business. Christopher Lischewski, president and CEO of Bumble Bee said the new addition of the meat businesses to the company's portfolio represents "a substantial step forward towards our vision of becoming a brand leader in value-added seafood and canned protein products."

Dairy Prices to Rise
In an effort to aid farmers struggling as a result of the mad cow crisis, the Canadian Dairy Commission (CDC) announced, last month, that it is raising industrial milk prices. Although consumer groups, restaurants and retail food outlets had opposed price hikes, the CDC said dairy farmers will receive a five-cent (7.8%) increase on each litre of industrial milk. The higher support prices—prices at which the CDC buys and sells butter and skim milk powder to balance seasonal supply and demand fluctuations in the domestic market—come into effect on February 1 and it is unclear how much consumers will be impacted by the increase. Source: Canadian Grocer E-Newsletter, Jan.13/05

Hershey Raises Chocolate Prices
To offset the rising costs of raw and packaging materials, as well as employee benefits, U.S.-based Hershey Foods Corporation has raised its chocolate bar prices nearly 6%. Hershey said the price hike affects about half of its domestic confectionery line and increases to its standard and king size bars as well as six-packs and vending lines are effective immediately. The cost of packaged chocolates will not take effect immediately but will jump 4.1% on Valentine's Day. Hershey's price hikes follow a similar move made by rival Masterfoods Inc., a unit of Mars Inc., and the maker of M&Ms, Mars and Snickers bars. Source: Canadian Grocer E-Newsletter, Jan.13/05.

Soup Prices to Rise
The largest soup maker in the world plans to bump up its soup prices 4.8% at the end of February. Camden, N.J.-based Campbell Soup Co. says the price increase on its condensed and ready-to-serve brands is being instituted to counter higher commodity, ingredient and packaging costs. The price bump will also apply to some of Campbell's sauces and beverages. Source: Canadian Grocer E-Newsletter, Jan.13/05.

General Mills Campaign Targets Weight Loss
At a time when the food industry is coming under heavy criticism for contributing to North America's obesity epidemic, General Mills Inc. is attempting to position itself as a weight-loss advocate. The packaged-goods giant-maker of Cheerios and Betty Crocker brands-has launched a program that aims to help consumers lose 10 pounds in 10 weeks. The Brand New You campaign is modelled after an in-house program General Mills initiated to help its staff shed unwanted pounds. To participate in the "no cost" weight loss program, consumers are asked to register on the Brand New You website; once they've entered their co-ordinates—age, weight, height et cetera—the program delivers a customized 10-week meal plan, developed by dietitians, designed to help shed one pound per week. The web site also features exercise and healthy living tips and, of course, coupons for General Mills products that can be integrated into the plan. Source: Canadian E-Newsletter, Jan. 13/05.

CoolBrands Buys Kraft's Yogurt Business
Marking its first venture outside of the frozen dessert business, CoolBrands International Inc. has announced it is buying Kraft Foods Inc.'s yogurt brands. Under the terms of the US$59-million deal, CoolBrands is buying Kraft's cup yogurt brands including Breyers Fruit on the Bottom and Light and Crème Savers as well as Crème Savers Smoothie drinkable yogurts. The product lines generated an estimated US$90-million in net revenue in 2004. Markham, Ont.-based CoolBrands also said its wholly-owned subsidiary, Integrated Brands Inc., will purchase all of Kraft's assets related to its yogurt business including licenses for the Breyers, Crème Savers and light 'n Lively trademarks as well as Kraft's manufacturing plant in North Lawrence, N.Y. The news follows a tough year for CoolBrands, which lost its popular Weight Watchers Smart Ones brand last summer in a licensing dispute and suffered criticism for its corporate governance practices. The deal, which is pending regulatory approval, is expected to wrap up sometime in the first quarter of 2005. Source: Canadian Grocer E-Newsletter, Jan.13/05.

Strong Sales Give Whole Foods a Profit Boost
Spurred by strong consumer demand for organic and natural foods Whole Foods Market Inc. recorded a 27% increase in its fourth-quarter profit. The Austin, Tex.-based company saw its profit climb to US$30.2 million, up from US$23.8 million a year ago. During the period ending September 26, 2004, Whole Foods also reported a sales increase of 24% to US$927.3 million. "Our fourth quarter results cap off an outstanding year," said Whole Foods chairman, CEO and co-founder John Mackey, adding that the company managed double-digit sales growth "in a year that has proven to be very challenging for most food retailers." In related news, industry observers are speculating that Whole Foods—the biggest organic and natural food store in North America—may soon start selling organic clothing at some of its outlets, making it the first major U.S. retailer to sell such items. Source: Canadian E-Newsletter, November 18, 2004.

Earnings Soar at Shoppers Drug Mart
Strong sales during its third quarter helped Shoppers Drug Mart Corp. see its profits jump more than 21% to $92.5 million. The Toronto-based drug chain, which operates 945 outlets, reported a sales increase of 9.1% to $1.9 billion during the Q3 period ending October 9, 2004, with same store sales jumping 6.9%. During the quarter the company said its prescription sales increased 10.2% to $942 million and front-end sales climbed nearly 8% to $1billion, with gains in all categories. Commenting on the results, chairman and CEO Glenn Murphy said: "Our performance thus far in 2004 has us well positioned to deliver full-year financial results that are in line with our expectations and guidance." Source: Canadian Grocer E-Newsletter, November 18, 2004.

Earnings Up at Metro
Canada’s third-largest grocery chain, Metro Inc. reported a 12.7% increase in net earnings in its fourth-quarter period to $45.2 million, up from $40.1 million a year ago. The Montreal-based retailer also saw its sales grow 4.6% to $1,406.2 million in the three-month period ending September 25, 2004 and same store sales increase by 2.7%. Metro attributes its sales increase to new merchandising programs implemented in Q2 that complemented its long-term retail network development strategy. Metro also experienced strong sales growth in its pharmaceutical business during the quarter with sales jumping 11.1% to $116.5 million. Source: Canadian Grocer E-Newsletter, November 18, 2004.

Wrigley Makes Deal with Kraft for Life Savers, Altoids
Wm. Wrigley Jr. Co. has reached a deal to buy Kraft Foods Inc.'s Altoid mints and Life Savers brands for US$1.48 billion. The purchase is Chicago-based Wrigley's largest acquisition to date and is in line with the gum maker's—the world's largest—plan to expand beyond its core product to compete with companies such as Hershey Foods Corp. Combined, Altoids and Life Savers generate annual sales of more than US$300 million. Source: Canadian Grocer E-Newsletter, November 18, 2004.

Staples Earnings up
Staples Inc., the office-Products retailer that operates in Canada under the Staples/Business Depot label, says third-quarter profit rose 26 per cent. For the August-October period, Staples earned $208.9 million (U.S.), or 41 cents per share, compared with a profit of $165.8 million, or 33 cents, a year earlier. Sales grew 12 per cent to $3.83 billion, the company added yesterday. North American sales at stores open for at least a year rose 4 per cent. Source: Toronto Star, Business section, Pg. E7, November 17, 2004.

Wal-Mart Stores Rings up profit
Wal-Mart Stores Inc., the world's largest retailer, says its third-quarter profit rose 12.7 per cent. The Arkansas-based giant earned $2.29 billion (U.S.), or 54 cents a share, for the three months ended Oct.31, up from $2.03 billion, or 46 cents a share, a year earlier. Revenue, including net sales and other income, rose to $69.26 billion from $63.04 billion, Wal-Mart added yesterday. Source: Toronto Star, Business section, pg. E7, Nov. 17, 2004.

Earnings Up at Gillette
Surpassing analysts' forecasts, Gillette Co. reported higher than expected earnings in its third quarter, bolstered by sales of batteries and higher-end razors. Boston-based Gillette posted net income of US$475 million, up from US$416 million a year ago. The company also reported that overall sales rose 12% to US$2.69 billion, while sales of razors climbed 7% reaching US$1.11 billion and battery sales jumped 15% to US$592 million, during the quarter. Source: Canadian Grocer E-Newsletter, Nov.9,2004.

P&G and Unilever See Increase in Profits
Consumer goods giant Procter & Gamble reported a 14% jump in profits in its first quarter, while rival Unilever saw its earnings increase 4.3% in its third-quarter period. Bolstered by a jump in sales of its beauty-care products, P&G's profit for the period ending September 30, 2004, climbed to US$2 billion, up from US$1.76 billion a year earlier. Impacted by price-cutting by competitors and a decline in sales of its top brands, Unilever—the world's largest maker of tea and ice cream—saw its earnings increase slightly to US$1.11 billion. Industry observers say competition between the companies will probably intensify, particularly with detergent products, as Unilever defends its market share in emerging markets.

Meatier Earnings for Maple Leaf
Toronto-based Maple Leaf Foods Inc. saw its profits and sales soar in its third-quarter period, bolstered by contributions from Schneider Foods, which it acquired last spring, as well as growth in its bakery and protein divisions. For the quarter ending September 30, 2004, the food company reported earnings of $27.9 million, up from net earnings of $7.2 million a year ago. Maple Leaf also saw its sales grow from $1.3 billion to $1.7 billion. "Our third-quarter results demonstrate continued strong momentum in our earnings performance," said Maple Leaf's president and CEO Michael McCain. "We are pleased with the progress in every aspect of our operations, including the contribution of Schneider Foods. We are maintaining a disciplined focus on earnings growth and successfully integrating the Schneider Foods organization into Maple Leaf." Source: Canadian Grocer E-Newsletter, Nov. 9,2004.

McCain Foods' Sales Reach $5.8-billion
Frozen food giant McCain Foods Limited has reported that its net sales for the year ending June 30, 2004 are up 2.5%, reaching $5.8 billion. Dale Morrison, president and CEO of the Florenceville, N.B.-based company said of the results: "When the strengthening of the Canadian dollar is factored in, sales increased almost 6% in real terms year-over-year." He added that the company also experienced volume growth in every market. With manufacturing operations on six continents, McCain Foods is the world's largest processor of French fries. Source: Canadian Grocer E-Newsletter, Nov.9,2004

Loblaw Streamlines Operations
Aiming to make itself "an even stronger competitive force in Canadian retailing," Loblaw Cos. Limited has announced big changes affecting nearly every area of its business including its national general merchandise business as well as its Western Canada, Ontario and Real Canadian Wholesale Club/Cash & Carry operations. In a recent letter to its employees Loblaw president John Lederer outlined a series of measures the company is undertaking to improve efficiencies and competitiveness. Starting with its general merchandising business, Lederer said that to "maximize the potential" of this growing area it is shifting it from Calgary—where it has operated for 25 years—to Loblaw's new Brampton, Ont. headquarters (currently under construction) next summer. The move is being made to position the general merchandise business closer to the company's procurement distribution activities and resources. Dave Jeffs, currently president of Westfair Foods and head of general merchandise, will head the national general merchandise business. The company says it is hoping all 125 Calgary employees affected by the move will relocate to Brampton. Also next summer, Loblaw said it also plans to strengthen its Western operations, and make Calgary more of a focal point, by moving its Vancouver construction, engineering and real estate office and personnel to the Westfair offices in Calgary. Glen Gonder, currently executive vice-president of Zehrs Market will take on the role of executive VP, operations at Westfair (effective February 2005), reporting to Dave Jeffs. About 50 employees will be affected by the move. In Ontario, Loblaw plans to combine the leadership and offices of its Zehrs and Fortinos stores, with Vince Scorniaenchi, currently executive vice-president of Fortinos, to "also assume leadership of Zehrs." To further integrate its various Ontario groups the company said it will consolidate the separate merchandising functions of its Loblaws, Zehrs, Fortinos and National Grocers retail banner into one group responsible for all merchandising strategies and activities in Ontario. Although Lederer didn't reveal who will head the group he said the newly created position would be filled by "a seasoned food retail executive" who will report to Loblaw Companies Limited executive vice-president, Carmen Fortino. Noting that its Real Canadian Wholesale Club and Cash & Carry operations are in a particularly competitive retail segment, Lederer said Loblaw will begin managing them "as one national business with a focus across the country rather than as four regional operations. Dave Boone, currently senior VP of President's Choice Bank, will head this unit. Other comings and goings at Loblaw: Kevin Ryan, head of National Grocers Retail—which operates the Your Independent Grocer and Valu-Mart banners—has announced he will retire at the end of March. Tim Staffen, current vice-president of Your Independent Grocer, will succeed Ryan, an 18-year veteran of the company. Mike Venton, vice-president of marketing and merchandising at Zehrs, will take on the role of VP grocery procurement at Loblaw Companies Limited, also in March. Source: Canadian Grocer E-Newsletter, Nov. 9,2004

Hershey Foods Corp. Move into cookies
Chocolate maker Hershey Foods Corp. posted a higher-than-expected 16 per cent rise in quarterly profit, helped by sales of new products, and said it would enter the cookie business. Third-quarter earnings rose to $166.2 million (U.S.), or 66 cents a share, compared with $143.6 million, or 55 cents a share, a year earlier. Source: Toronto Star, October 22, 2004.

Life Savers for sale
Food giant Kraft Foods Inc. has put its Altoids breath mints and Life Savers brands on the block in a sale that could generate well over $1 billion (U.S.) people familiar with the situation said yesterday. A sale would be part of Kraft's move to weed out brands that do not fit its global strategy. Combined, the two brands generate more than $300 million in annual sales, sources said. Source: Toronto Star, October 16,2004.

Costco profits rise
Costco Wholesale Corp.'s earnings rose 24% in its latest quarter, lifted by improvement in both net sales and membership fees which offset a minor accounting charge. Costco yesterday posted fiscal fourth-quarter earnings of $296.8 million (U.S.), or 62 cents a share, up from $239.4 million, or 51 cents a share, a year earlier. The latest results topped the average analyst estimate in a Thomson First Call survey, which called for net income of 58 cents a share. For the quarter ended Aug. 29, Costco's net sales increased 11 per cent to $14.83 billion from $13.42 billion a year ago. Source: Toronto Star, Friday, October 8, 2004.

General Mills Gives Its Cereals a Makeover
In a nod toward healthy eating trends, General Mills Inc.—the maker of Lucky Charms, Trix and Golden Grahams cereals—has announced that all of its breakfast cereals will now be made with whole grains. About 40% of the company's cereal line is being reformulated (brands such as Cheerios, Total and Wheaties are already made with whole grains) a huge undertaking for the second-biggest cereal maker in the United States. The company says its whole-grain initiative will be backed up with bold packaging featuring the words "Whole Grain" on each cereal box. The announcement follows a poor first quarter showing for the Minneapolis, Minn.-based food giant, where rising ingredient costs caused its profit to drop 19% to $183 million for the period ending August 29, 2004. Source: Canadian Grocer E-Newsletter, Oct.5,2004.

Big Changes Set for Grocery Innovations Canada 2004
A new venue and a new two-day format are just a few of the changes planned for the 2004 edition of Grocery Innovations Canada (GIC). To make the show more affordable and accessible to participants, GIC—Canada's largest grocery expo—will move to the Toronto Congress Centre, near the city's airport, and will take place over two days—November 8 to 9—rather than the customary three days. GIC 2004 will also feature extended show hours and a new program and social events. Visit www.groceryinnovations.com for further details. Source: Canadian Grocer E-Newsletter, Oct. 5, 2004.

Shoppers Drug eyes Quebec Expansion
Shoppers Drug Mart Corp., Canada's biggest drugstore chain, wants to expand in Quebec by opening stores and buying independent pharmacies to boost revenue in a market Jean Coutu Group Inc. dominates. "There are an incredible number of real estate opportunities for us in Quebec, and single acquisitions available to us, because of how fragmented (the market) is," Glenn Murphy chairman and chief executive chairman and chief executive officer of Shoppers, said in an investor conference in Toronto this week. "Our first priority is to reinvest in the business," Murphy said. "More relocations, more new stores, more expansions, more acquisitions." Source: Toronto Star, June 23,2004.

SHOPPERS DRUG EYES QUEBEC EXPANSION
Shoppers Drug Mart Corp., Canada's biggest drugstore chain, wants to expand in Quebec by opening stores and buying independent pharmacies to boost revenue in a market Jean Coutu Group Inc. dominates. "There are an incredible number of real estate opportunities for us in Quebec, and single acquisitions available to us, because of how fragmented (the market) is," Glenn Murphy chairman and chief executive chairman and chief executive officer of Shoppers, said in an investor conference in Toronto this week. "Our first priority is to reinvest in the business," Murphy said. "More relocations, more new stores, more expansions, more acquisitions." Source: Toronto Star, June 23,2004.

Tootsie Roll Buys Dubble Bubble
Tootsie Roll Industries of Chicago has bought Concord Confections of Concord, Ont. for US$197-million. The Canadian company, whose top brand is Dubble Bubble chewing gum, also owns Candy Stampers, Razzles, Tear Jerkers and Tongue Splashers. The three Toronto area owners of Concord Confections (Bruce Weiner, Serge Nusbaum and Howard Smuschkowitz) bought Dubble Bubble six years ago in a US$18.7-million deal from the insolvent publisher of Spider-Man and Incredible Hulk comic books. Source: Canadian Grocer E-Newsletter, Sept. 10, 2004.

Purdy's Targets Southern Ontario
Purdy's Chocolates, a Western Canadian retail icon, has opened its first Ontario outlet in Oakville, an upscale community west of Toronto. A second store will open in Brampton, Ont. next month. The two outlets will be the chain's first permanent stores in the province. Later this year Purdy's will open seasonal kiosks in shopping centres in Mississauga and in Newmarket. President Karen Flavelle said that another 20 permanent retail locations are planned within the next five years. Source: Canadian Grocer E-Newsletter, Sept. 10, 2004.

Starbucks Coffee Coming Soon to Canadian Grocery Stores
Along with their milk and bread, grocery shoppers in Canada will soon be able to add Starbucks coffee to their carts. Starbucks Coffee Canada, a wholly-owned subsidiary of Starbucks Corp., has inked a deal that will see Crossmark Canada Inc. distributing its whole bean and ground coffee to grocery stores in Canada. The coffee giant says it's extending its brand to the Canadian grocery channel to reach new customers as well as its existing ones. Starbucks coffee has been available in U.S. grocery stores since 1998. Source: Canadian Grocer E-Newsletter, Sept. 10, 2004.

Couche-Tard to Expand Presence in Toronto
In an effort to grab a bigger share of the convenience dollar in the Toronto market, Montreal-based Alimentation Couche-Tard says it plans to open hundreds of Mac's outlets in and around the city over the next several years. Stephane Gonthier, Couche-Tard's vice-president operations for Ontario, recently told the Financial Post: "The objective in the GTA [Greater Toronto Area] is to be on every corner, to become more dominant." Gonthier also said he "can see" the company easily opening 20 to 25 locations per year for the next five years." Couche-Tard is North America's fourth-largest convenience store operator with 4,881 stores, including 620 Mac's outlets in Ontario. Source: Canadian Grocer E-Newsletter, Sept. 10, 2004

Three Industry Veterans to Receive Golden Pencil Award
Three industry veterans have been selected to receive the 2004 Gold Pencil Award: Bob Noble, vice-president, customer development at Unilever Canada; Michael Marinangeli, president of United Grocers Inc.; and Dan Shapiro, recently senior vice-president, marketing and merchandising for Loblaw Supermarkets and National Grocers retail. The awards ceremony will take place on November 22 at the Royal York Hotel in Toronto. The Golden Pencil Awards, the food industry's highest honour, have been handed out annually since 1957 to individuals who have made outstanding contributions to the food and consumer products industries and who have shown exceptional commitment to their local communities. Source: Canadian Grocer E-Newsletter, Dec. 10, 2004

Gas Bar deal helps Couche-Tard
Alimentation Couche-Tard Inc.'s purchase of a major U.S. gas bar chain continued to send profits soaring at the Quebec-based convenience store operator this spring. Fuelled by the $1.12 billion acquisition of Circle K Corp. late last year, Couche-Tard's net earnings in the first quarter ended July 18 tripled to $66.4 million from $22.9 million a year earlier. Per-share profit surged 66 cents from 27 cents. Couche-Tard own convenience stores such as Mac's, Becker's and Mike's Mart. Source: Toronto Star Business, August 27, 2004.

Longo's Buy Grocery Gateway
Grocery Gateway Inc., the Mississauga - based Internet food delivery service, has been purchased by Longo's grocery chain. Under the terms of the deal, Longo's will immediately begin to operate the Grocery Gateway business. "It was a natural fit that worked with our vision of having an online shopping business", Anthony Longo, president and CEO of Longo's, said in an interview. Source: Tony Wong and Tyler Hamilton, Business Reporters, Toronto Star, August 25, 2004

Profits Up for Sobeys' Parent
Despite Sobeys Inc.'s decline in profits, its parent, Empire Co. Ltd., reported healthy increases in both its annual revenues and profits. Exceeding analysts' expectations, the Stellarton, N.S.-based company posted annual revenues of $11.28 billion (up 6.2%) and earnings of $163.9 million (a 12% gain) for fiscal year ending April 30, 2004. Said Empire president and CEO Paul D. Sobey of the company's results: "Empire delivered growth in earnings in fiscal 2004, despite a challenging year in our food division. A decline in Sobeys Inc. operating earnings was offset by a three percent increase in our ownership interest and by the continued strong operating performance for our real estate division and for our theatre operations." Source: Canadian Grocer E-Newsletter July 15.04

Parmalat Canada Gets a $610 million Cash Injection
The Ontario Teachers' Pension Plan (OTTP) is providing Parmalat Dairy & Bakery Inc. $610 million in refinancing for its Canadian operations. The refinancing includes $530 million in three-year loans and a bank credit of up to $80 million, underwritten by OTTP. Says Parmalat Dairy and Bakery Inc.'s executive vice-president and CFO Nash Lakha of the cash injection: "The financing will allow Parmalat Dairy and Bakery Inc. to refinance all of its existing senior debt and provide it with the financial resources necessary to execute its business plans." The company's Italian parent, Parmalat SpA filed for bankruptcy in December after failing to account for $11 billion in assets. In related news, Markham, Ont.-based CoolBrands International Inc. has purchased Parmalat's Kinnet Dairy ice cream distribution business, located in the southern United States, for an undisclosed amount. Under the deal, CoolBrands' subsidiary Eskimo Pie Frozen Distribution Inc., gets Kinnet's customer lists, route lists, delivery vehicles, trademarks and inventory from Parmalat subsidiary Farmland Dairies LLC. Source: Canadian Grocer E-Newsletter July 15.04

Canadian Company Grabs Two SIAL d'Or Awards
Its innovative Zero Trans Fat Cookies have earned Voortman Cookies Ltd. two awards at the prestigious SIAL d'Or contest in Paris, France. Burlington, Ont.-based Voortman won for having the best new product in the confectionery, biscuits and bread category. Voortman's Zero Trans Fat Cookies were also awarded a Canada SIAL d'Or for scoring the most points of all Canadian entries. Although Voortman was the only Canadian company to win, other Canadian entries from High Liner Foods, Tayo Foods and Mountain Meadows Food Processing Ltd., came second in their respective categories. The awards are organized every second year by the Paris-based SIAL food and beverage show. Source: Canadian Grocer E-Newsletter, June 16.04

Canadian Grand Prix New Product Awards
And the Winners Are . . . The Canadian Council of Grocery Distributors has announced the winners of the 2003-2004 Canadian Grand Prix New Product Awards. The annual awards celebrate innovation, quality and exceptional value in new products hitting the Canadian market and this year winners were selected from a record 136 product finalists. Says CCGD President Nick Jennery: "…while not all of them can be Grand Prix winners—it is important that we recognize the important investments in time, energy and resources that every entry represents." British Columbia-based Sun-Rype Products Limited scored big this year, scooping three awards including the coveted All-Canadian New Grocery Product Award; the new Canadian Grand Prix Healthy Innovation New Product Award (created in conjunction with the Heart and Stroke Foundation of Canada's Health Check program); and the Grand Prix for best new beverage for its Fruit & Veggie 100% Juice. Procter & Gamble was also presented with a special Grand Prix for Originality and Innovation for its Mr. Clean Magic Eraser; it also won in the Cleaning Products category. For a complete list of winners click-on the link below. Source: Canadian Grocer E-Newsletter June 16.04

Canadian Grand Prix New Product Awards
And the Winners Are . . . The Canadian Council of Grocery Distributors has announced the winners of the 2003-2004 Canadian Grand Prix New Product Awards. The annual awards celebrate innovation, quality and exceptional value in new products hitting the Canadian market and this year winners were selected from a record 136 product finalists. Says CCGD President Nick Jennery: "…while not all of them can be Grand Prix winners—it is important that we recognize the important investments in time, energy and resources that every entry represents." British Columbia-based Sun-Rype Products Limited scored big this year, scooping three awards including the coveted All-Canadian New Grocery Product Award; the new Canadian Grand Prix Healthy Innovation New Product Award (created in conjunction with the Heart and Stroke Foundation of Canada's Health Check program); and the Grand Prix for best new beverage for its Fruit & Veggie 100% Juice. Procter & Gamble was also presented with a special Grand Prix for Originality and Innovation for its Mr. Clean Magic Eraser; it also won in the Cleaning Products category. For a complete list of winners click-on the link below.

Kraft to Use South Beach Diet Trademark
With cookie and cereal sales dropping, Kraft Foods Inc. is hoping to use the popularity of the low-carb South Beach Diet to help bolster its sagging sales. The Northfield, Ill.-based food giant has reached a multi-year agreement with Dr. Arthur Agatston, creator of the diet and best-selling book, to use the South Beach Diet trademark on some of its foods. The South Beach Diet is touted as a modified carb diet that advocates high-fibre, lean protein and healthy fats, while shunning high-carb foods such as bread, rice, pastas and fruit. Terms of the deal were not disclosed. Source: Canadian Grocer E-Newsletter, June 04

Canadian Company Grabs Two SIAL d'Or Awards
Its innovative Zero Trans Fat Cookies have earned Voortman Cookies Ltd. two awards at the prestigious SIAL d'Or contest in Paris, France. Burlington, Ont.-based Voortman won for having the best new product in the confectionery, biscuits and bread category. Voortman's Zero Trans Fat Cookies were also awarded a Canada SIAL d'Or for scoring the most points of all Canadian entries. Although Voortman was the only Canadian company to win, other Canadian entries from High Liner Foods, Tayo Foods and Mountain Meadows Food Processing Ltd., came second in their respective categories. The awards are organized every second year by the Paris-based SIAL food and beverage show. Source: Canadian Grocer E-Newsletter, June 04

Canadian Grand Prix New Product Awards
The Canadian Council of Grocery Distributors has announced the winners of the 2003-2004 Canadian Grand Prix New Product Awards. The annual awards celebrate innovation, quality and exceptional value in new products hitting the Canadian market and this year winners were selected from a record 136 product finalists. Says CCGD President Nick Jennery: "…while not all of them can be Grand Prix winners—it is important that we recognize the important investments in time, energy and resources that every entry represents." British Columbia-based Sun-Rype Products Limited scored big this year, scooping three awards including the coveted All-Canadian New Grocery Product Award; the new Canadian Grand Prix Healthy Innovation New Product Award (created in conjunction with the Heart and Stroke Foundation of Canada's Health Check program); and the Grand Prix for best new beverage for its Fruit & Veggie 100% Juice. Procter & Gamble was also presented with a special Grand Prix for Originality and Innovation for its Mr. Clean Magic Eraser; it also won in the Cleaning Products category. For a complete list of winners click-on the link below. http://www.ccgd.ca/pdf/Press%20Release%20-%20Grand%20Prix%202003-04%20Winners.pdf Source: Canadian Grocer E-Newsletter, June 04

Canadian Tire to Sell Food
In an attempt to tweak its image and woo customers away from rivals Wal-Mart and Home Depot, Canadian Tire Corp. says it plans to begin selling sandwiches, fresh fruit and veggies, fresh and frozen pizza and frozen meat at its revamped convenience stores. Source: Canadian Grocer E-Newsletter, May 19.04

Wal-Mart adds Wine
Thirsty shoppers at three Ontario Wal-Mart outlets can now add wine to their shopping carts. According to a report in The Globe and Mail, Wal-Mart Canada Corp. has teamed-up with Vincor International Inc.—the country's largest winery—and recently launched three Wine Rack boutiques in outlets in Barrie, St. Catharines and Oshawa and plans to open three more in June. Source: Canadian Grocer E-newsletter, May 19.04

Wal-Mart and Target report big jump in profit
Wal-Mart Stores Inc. and Target Corp., the two largest U.S. discount retailers, said first-quarter earnings rose as shoppers spent more on clothing sales this year. Source: Toronto Star

Sun-Rype soars in first quarter
Sun-Rype Products Ltd. first quarter profits almost doubled. First quarter sales rose 15%. Source: Toronto Star

Coca Cola's new Packaging
Coca-Cola launched it's long 'n' lean Fridge Mate, a $10 million packaging remake for 12-can boxes designed to fit more conveniently into consumer fridges. Source: Toronto Star, May 6, 2004.

Shoppers New Look
Shoppers Drug Mart chief executive Glenn Murphy has been remodeling stores and adding space devoted to non-prescription good such as prepared meals and high-end cosmetics and perfumes. The company is also revamping its Life brand by adding new pharmacy products and redesigning packaging. Source: Toronto Star, May 6, 2004

Loblaw Rolls Out New System to Improve Efficiency
Loblaw Rolls Out New System to Improve Efficiency To better respond to consumer demand Loblaw Companies Ltd. is installing a new enhanced demand forecasting system across all of its stores. The Teradata (a division of NCR Corp.) Demand Chain Management forecasting system is expected to allow the retailer to reduce inventory costs, minimize out-of-stocks and improve customer service by better predicting consumer behaviour. Source: Canadian Grocer E-Newsletter, April/04.

Sun-Rype Grows Record Profits in 2003
Kelowna, B.C.-based Sun-Rype Products Ltd. has reported annual sales of more than $111 million (up from $104 million in 2002) and net earnings of $5.1 million (up from $4.9 million in 2002). The company—Western Canada's largest maker and marketer of fruit juices and natural fruit snacks—attributes the growth to improved efficiency, the launch of new organic fruit snacks and juices and agreements to produce fruit snacks for customers in the United States and Europe. Source: Canadian Grocer E-Newsletter Mar.23.04

Pepsi-QTG appoints new president
Beverage and food giant Pepsi-QTG Canada has appointed Tom Bené as its new president. Bené has been with Pepsi for 15 years, most recently in the role of COO of SoBe. He succeeds Greg Shearson who was recently named president of Tropicana Beverages North America as part of a realignment of Pepsico Beverages & Foods. Source: Canadian Grocer E-Newsletter Feb.04

McCormick Canada appoints new VP
Brian Rainey has been promoted to vice-president, sales and marketing, consumer products division, McCormick Canada. He will report to Mark Timbie, president, international consumer products group. Source: Canadian Grocer E-Newsletter Feb.04

Heinz buys Richardson
Heinz Canada said on Wednesday, February 4th., it bought Richardson Foods, a company in southwestern Ontario (St. Mary's Ontario) that manufacturers and sell salad dressings, sauces and dessert toppings to food service customers. Financial terms of the deal weren't announced. Heinz bought the business from a Unifine Richardson BV, a unit of the Royal Cosun Group of Companies. Source: Toronto Star, Feb. 5.04

Laura Secord returns to Canada
Laura Secord returns to Canada After weeks of negotiations, Ganong Bros. Ltd. and Laura Secord are officially in business together. The Canadian division of U.S.-based Archibald Candy Corp. has signed a five-year supply agreement with New Brunswick-based Ganong Bros. Ganong will produce most of the chocolate and other confectionery sold in Laura Secord's 170 stores across Canada, using the historic chocolatier's unique recipes and processes. The agreement will create up to 40 new jobs at Ganong. Source: Canadian Grocer Magazine e zine Jan. 28.04.

Canadian Grocery Stocks Positive
According to a January 20th. Report form CIBC World Markets, the Canadian grocery store stocks have soared. The market rewarded these companies for better execution, stronger pricing stances, a strong Canadian dollar and little impact from the arrival of Sam's Club.

Sobeys buys Commiso's for $65 million
Sobeys Inc. has agreed to buy all of the assets of Commisso's Food Markets and Commisso's Grocery Distribution Limited. The aquisition, scheduled to close in early 2004, includes 15 grocery stores, six warehouse-style outlets and a wholesale business and distribution centre, all in southern Ontario. Source: Canadian Grocer E-Blast. Dec.5.03

Loblaw buying Maple Leaf Gardens
One of hockey's greatest shrines is being turned into a grocery store. Loblaw says it plans by 2005 to open a combined food and general merchandise superstore, along with other retail, while preserving the building's roofline and facade. A store featuring Maple Leaf memorabilia is planned-a skating rink is not. Source: Toronto Star, Wed. Oct.22.03

Maple Leaf Foods Announces Agreement to Aquire Schneider Foods
On September 25, 2003 Maple Leaf Foods Inc. announced it is about to take over the Kitchener-based Schneider Corp. for a reported $515-million. The transaction is due to close by late this year or early next year, subject to normal conditions including obtaining clearance for the transaction from the Canadian Competition Bureau. The two leading Canadian food companies will now form a world-class consumer foods company with a family of leading brands. Sources: Canadian Grocer Newsletter and www.mapleleaf.com

Couche-Tard and Jean Coutu do Quebec proud in the U.S. Retail Market
Couche-Tard Inc. is doubling their size through acquisition of the Circle K convenient store chains in 16 U.S. states for $1.12 billion. The company has doubled up twice through acquisitions since 1998, including the purchase of the much larger Silcorp chain, which owned Mac's and Becker's in Ontario. Jean Coutu Inc. entered the U.S. Market in 1995 and eventually purchased the 220 store Brooks Drugs chain. This, as well as an earlier developed U.S chain of 22 Maxi Drug stores, has vaulted Jean Coutu into second place in the US Northeast. Source: Toronto Star Oct.11.03.

Downtown Vancouver Grocery revival
Up until a few years ago, Canada Safeway with its two West End stores and Super Valu close by had the downtown sewn up in Vancouver. That's no longer the case. Tom Leung, executive director, Thomas Consultants in Vancouver, believes that Safeway's market share has slipped from around 75% to 35%. The remaining share is split among Super Valu, the new Yaletown entrants Overwaitea-owned Urban Fare and Choices Market, Capers on Robson and T&T Supermarket Inc. in Chinatown. Phil Boname, president, Urbanics Consultants in Vancouver, says he expects a Costco store to open underneath the Georgia and Dunsmuir viaducts near General Motors Place next year. "I think they'll do very well and cater to a very broad section of the downtown population," he says. Despite the opening of Urban Fare (1999), Choices (2000), MarketPlace IGA (2002) and with a Costco on the horizon, retail analysts say grocery supply, particularly around the new development of Coal Harbour, is still woefully inadequate. Leung says there is room for at least two stores of around 20,000 to 25,000 sq.ft. and maybe even three. "It's a very simple game, really. You are talking about two or three potential developments. It's a case of who is going to get there first. What's fueling the growth? Population is one good reason. According to David Baxter, a demographer with Vancouver-based Urban Futures Institution, downtown population in 1991 was around 47,000. By 1996 it had grown to 62,000. In 2001 it was 77,000 and projections are that by 2021 it will hit 100,000. "If you want a rough measure, it's about a 64% increase in the last decade," says Baxter. "That's a pretty size in terms of growth and 77,000 is a pretty good size town." Source Canadian Grocer June/July 2003 issue.

Cashiers are your Face
In a retail environment where human interaction is becoming increasingly rare, it's vital that your customers remember you in a positive light. One doesn't have to be a human resources expert to realize that cashiers are usually your face to the customer. The front end is the first and last thing that customers see when grocery shopping. Cashiers can often leave a lasting impression. However, advances in technology have many people questioning whether the cashier will exist in the future grocery store. The Food Marketing Institute acknowledges that nearly 30% of supermarkets have already implemented self-scan technology in some shape or form and estimates that 50% will use self-scanning by the end of 2004. John Williams, president of industry consulting firm J.C. Williams Group, believes that cashiers will disappear entirely. "Self-checkout is already here and it is preferred because it's less costly and more efficient. Radio Frequency Identification (RFID) is the next trend. In five or 10 years people will just walk their entire shopping cart out the door and that's it," he predicts. However, he notes that small stores (independent or c-stores) may start to view cashiers as a differentiation asset. "Self-scan is not something we will be doing because we feel the front end is what sets us apart," says Cathy Flynn, customer service and training counselor, Buy-Low Foods of Surrey, B.C. "Our stores are in smaller communities and customers like the interaction and personal touch." In an industry plagued by high turnover in the primarily part-time customer service positions, the role of the cashier is often filled by whoever is willing and able rather than the "right" person. That's why recruiting is often an ongoing process. Taking the time to properly recruit will payoff with customer rewards. Since the cashier is the last chance to form a meaningful relationship with customers. Buy-Low looks for people who are outgoing and comfortable talking to people they don't know. It's important that you provide adequate training until the cashier is fully comfortable to face customers. Cashiers are busy people. They must be properly trained before they beginning the grueling task of standing for an entire shift, identifying every item sold in the produce section, memorizing PLU codes, knowing how the products are priced, be quick thinking, able to work with money, understand technology and POS systems and smile to every customer. Still, it's a job many managers take for granted. Used in conjunction, self-scan and the traditional cash register may ease front-end stress. As John Williams says, "The only human contact in a supermarket is the checkout. It's an enormous opportunity to ensure there's a final touch of personal care."

New Products
The products, the gadgets, the food, the grocery industry paraphernalia came in all shapes, sizes, tastes and colours at FMI (The Marketing Institute) Show 2003. Here are some of the products: OMEGA BLAST-This is a high energy soy meal replacement drink that should meet your customers' fast-paced lifestyles..by Designing Health Inc. VEGGIWRAP-Made of 3M book and look compartments, it offers a gentle strip wrap around for produce, attaching itself in one easy step. It also comes with scannable bar codes...from Bedford Industries Inc. EAT YOUR HEART OUT-Peach wedges with mango and apple cinnamon wedges in new large bags. The deluxe fruits are all natural-without chemical additives or preservatives. They are kosher, nondairy, low calorie and "heart friendly"...by Eat Your Heart Out! ORGANIC MATCHA TEA KIT-The high-grade green tea comes with 30 grams of organic matcha, a hand-crafted earthenware tea bowl, bamboo tea whisk, bamboo tea scoop and a video showing how to make matcha, its history and health benefits...by Eden Foods Inc. 1 STEP SEASONINGS-The all-in-one seasonings are easy to use. They are combined with fresh ingredients such as ground beef or boneless chicken breasts to create great-tasting meals for the whole family. Available in eight varieties and by McCormick & Company Inc. SUNBUTTER-A healthy alternative to peanut butter with 68% of adult shoppers' vitamin E needs in one serving. Contains no peanuts and is produced in a peanut-free facility..by SunGold Foods. NIGHTEFFECTS-This is a nighttime teeth-whitening system that works while you sleep. It will clean teeth fully after two nights...by P&G. RAGING COW, BERRY MIXED UP, CHOCOLATE CARAMEL CRAZE, CHOCOLATE INSANITY, JAMOCHA FRENZY, PINA COLADA-Content and container are designed to grab the attention of kids who don't like milk. The drinks contain four types of vitamins and minerals..7up. SAFE-SPOT-An add-on to create more space on shopping carts, this basket protects and holds everything from bread to eggs to produce. Can be attached anywhere on the shopping cart...by Safe-Strap Company Inc. Source Canadian Grocer June/July issue 2003.

Retail Wiz Kid
To describe Francois Bouchard as passionate would be an understatement. He has transformed a former money-losing supermarket into a thriving independent grocery store in Ottawa's south end, with annual sales of $4 million. The Country Grocer is a mere 8,000 sq. ft. of selling space-though Bouchard's ingenuity and vision, it provides customers with a cornucopia of products and services that include online shopping, an in-house bakery, a catering department, a broad selection of exclusively prepared meals, a garden centre and a meat department that offers even the most discerning weekend chef French-cut meats. "Francois is able to change and he's not afraid of taking chances and trying new things to expand his business," says Pierre Groulx, owner of Pierre & Mario's Your Independent Grocer Inc. in Ottawa and Bouchard's first boss, who hired the then-15-year old as a bag boy at the Blackburn Hamlet LOEB IGA in the Ottawa suburb of Gloucester. Besides his personable approach (he knows a lot of his customers by name), clearly one of his greatest accomplishments has been his presence on the Internet, which he admits has helped propel his business from a tiny neighborhood operation to something much larger. While his online service was initially to the Ottawa area, he expanded it in early 2002 to include Iqaluit and Nunavut territory customers. Offering Ottawa prices, plus shipping charges paid directly to either First Air or Canadian North, the two airlines that deliver next-day service. Like many clever ideas, selling groceries to northern customers occurred by accident. Iqaluit has a large population of "expatriates"-mainly government workers posted there for a few years-who receive the Ottawa Citizen. One reader e-mailed Bouchard asking why his online service was unavailable to Iqaluit residents. After researching the ex-pat community, Bouchard learned there were about 500 families in search of fine-dinning cooking ingredients. Today, the Country Grocer has more than 200 regular northern customers. The Country Grocer sends out 4,200 e-flyers every two weeks. Another Country Grocer promotion for Internet customers is what Bouchard calls Turkey Bucks. Held about a month before Thanksgiving, customers receive one Turkey Buck for every $20 dollar spent. Generally, within four to five weeks, they earn enough Turkey Bucks to pay for their Thanksgiving bird. Bouchard has regrouped diabetic foods and put them all into one 12-foot area. In addition to some new flooring and better lighting, all eight major departments-including one called the Thirst Zone that sells soft drinks and juices-are painted different colours to distinguish one area from another. "We wanted to create themes for our departments to highlight them and make them distinct," he says. "Everything was green and white before we felt we needed to bring the store back to life." Here are 10 other tips from the master merchandiser: 1. Capitalize on free supplier and association merchandising programs. 2. Have a consistent in-store-sampling program. 3. Constantly introduce new products that are being requested by customers to replace slow-selling items. 4. Understand what sells and what doesn't. 5. Ensure the store's lighting focuses on specific products to make them look appealing. 6. Mix the colours of products so each stands out. 7. Be creative with packaging. Every item that is produced at the Country Grocer is in a black container with a gold seal saying that it was prepared by the Country Grocer. 8. Cross-merchandise. At the Country Grocer, in addition to being in the meat department, bacon is sold at the dairy counter with eggs and English muffins. 9. Change shelf layout often to highlight different products. 10. Mix sale and nonsale items at front-and back-of-aisle displays. Since sale items are often loss leaders, place them next to related items that are not on sale and have high margins. Source..Canadian Grocer June/July 2003.

Quality Foods in B.C. very innovative
Qualicum Beach, B.C.- For the first time in Canada-or perhaps anywhere-supermarket customers can pick their own special on nearly any grocery item. It could be an item on their grocery list that may not have been in the weekly special flyer or an item that rarely goes on special. Beginning in late April, shoppers were offered the opportunity to log on to QualityFoods.com, click on "My Daily Special", and look up a grocery item that appealed to them. A special low price for that customer is then displayed on screen. Once accepted by the shopper, the new lower price is automatically sent to the registers at every Quality Foods store. When the customer shops in a Quality Foods store with his or her Q-Card, the My Daily Special price registers instantly when she checks out with her item. Ken Schley, director of operations, Quality Foods, says: "People want specific items unique to their lives and, in many cases, we can now offer them at terrific prices. The great thing is they can change their item every day if they wish." Quality Foods' Noel Hayward said that My Daily Special is shaping up to be the bigget innovation the company has introduced since launching the Q-Card program in 1990. "The Q-Card was a first in the Canadian Grocery industry, which pioneered the whole loyalty card movement," he said.

High Liner dry docks
Following a decade of food menu diversification as fish catches declined off the Atlantic coast, High Liner Foods Inc. of Lunenburg, N.S. has finally thrown off the net and sold its fish processing quotas and nine trawlers to a consortium led by Clearwater Seafoods Ltd. of Halifax for $65 million. In the past 10 years, Henry Denmore, president of High Liner Foods Inc., has expanded company offerings into pasta making and seafood processing. With the infection of $65 million, the company will concentrate on making fish sticks and pasta dinners. The sales leave Clearwater as the major maritime fishing company. The Halifax-based Company has nine plants and 2,000 employees, and plans to become larger. As a result of the sale, High Liner will lay off 79 employees, most of them trawler fishermen. Clearwater will take over the scallop and ground fish quotas and use its own boats. In recent years, High Liner's once-proud fleets have been overshadowed by the company's push to sell processed food products in Canada and the United States. Source Canadian Grocer June/July 2003 issue.

How we stack up against U.S. Chains?
In a mystery shopper survey conducted by Toronto-based Service Intelligencer, Canada's top two grocery chains held their own against such U.S. giants as Safeway USA, A&P and Wal-Mart. The survey measured stores on cleanliness, accurate price scanning, low prices, pleasant checkout clerks, well-stocked shelves and a list of other vital service factors. According to the company, 75% of critical factors can be measured with its mystery-shopping format. Safeway USA let the overall stats with a 92.7% average, followed by A&P(92.1%) and Wal-Mat (92.0%). The various banners of Loblaw averaged 90.6%, while Sobeys banners averaged 89.6%. A total of 11 companies were surveyed. The Service Intelligencer survey covered 148 Loblaw and 137 Sobeys stores of various banners. Canadians (82.95%) beat the U.S. (74.19%) in washroom cleanliness and in bakery service-92.9% to 86.56%. Canadians also scored higher (93.9% to 91.06%)in dairy best-before dates. The U.S. stores were ahead (54.24% to 41.95%) when measuring whether the cashier initiated conversations with customers (we have more on this in another story). U.S. stores were also ahead (30.81% to 19.15%) when tested: "If you had three or more grocery bags, did the bagger offer to assist you with your groceries to the vehicle?" In the battle for customers, grocery stores lose customers to their rivals mostly because of their own deplorable service, says Warren F. Potter of Service Intelligencer. He quotes Walter Heller of Procter & Gamble, who said: "People change grocery stores not because they are attracted to a new store, but rather that they are driven from their current store". Source...Canadian Grocer June/July 2003 issue.

A Buck or Two invests a fistful of dollars
Mississauga-In an ambitious plan to increase its market presence, A Buck or Two discount chain has launched an aggressive new-store opening and store-enlargement campaign across the country, reports the Monday Report on Retailers publication. Last year, the chain opened 38 locations and this year promises to be equally ambitious, as another 30 new sites are being sought. Immediate plans call for two stores, according to Bob Vrenjak, vice-president, real estate and franchise developments. Source..Canadian Grocer June/July 2003 issue

Sobeys' downtown T.O. store makes a statement
Toronto-Sobeys Metro Market, on the upscale St. Clair Ave. East (just down the street from webhunters.com), which opened on May 28, declares that the company has arrived in downtown Toronto with a winning bang. The store, only 16,000 sq.ft. has "as many SKUs as a store double its size would normally have," said Duncan Reith, president, operations, Ontario region. "We are extremely proud to bring this store to the community, to provide them with such a unique shopping experience." Variety, high-end and fresh are the three main themes of Sobeys new gem of a store. With fresh (bakery, deli, produce, seafood) taking over two-thirds of the store space, the new outlet has about 180 types of international cheeses, 50 kinds of breads and rolls, exotic fruits and vegetables (dragon fruit to rambuton) and gourmet meats -venison, bison steaks, quail, rabbit and duck. The huge fish tank is full of frisky lobsters. Next to it are the caviar and sushi stands. Sobeys new store also boasts plenty of ready-to-heat, ready-to-eat for the busy downtown customer. A Wine Rack, soup bar, a coffee outlet (Van Houtte coffee), an ATM, free customer parking and Chatelaine magazine recipe tags next to various products (quesadilla appetizer, super-fast dilled potato salad) are some of the other features. Source...Canadian Grocer June/July 2003 issue.

Couche-Tard/Mac's share with AC Nielsen
In late March AC Nielsen Canada announced that Couche-Tard Inc., Canada's largest convenience store operator, had signed an agreement to provide AC Nielsen with its retail sales information at the end of this year. It's expected that AC Nielsen will launch its ConvenienceTrack retail management service, which will include sales information from Mac's and Couche-Tard convenience stores. Info from Can. Grocer May 2003.

Hot Product Trends
Mintel consumer itelligence, based in Chicago, has been tracking the trends with its Global New Products Database. Here are some predictions for this year: *Asian foods will pop up in the frozen meal section. *Citrus will be the flavour of the year, Wasabi coming in second. *For scents, Vanilla rules. *Ingredient of the year will be white tea. *Kids will be targeted for their "grown up" taste buds. *Fragrance that is not overpowering but lasts until it's removed will be the next health and beauty development. *The minimalist trend will creep its way into product packaging with clean graphics and minimal prints. *"Is it a soda, a juice, a milk drink, a meal replacement beverage?". Amorphous beverages will continue as a trend. *Gourmet dog and cat food, including dental care food for pets. *A special sauce will be developed that fits every need to eliminate the number of bottles taking up shelf space in your fridge and on the store shelf. *Low carb. *Beverage makers will continue to find ways to market their brands with sports, entertainment, fashion and music - all things cool. Info from Canadain Grocer - May 2003 issue.

Salad Days are here again - prepackaged
Growth in prepackaged salads and vegetables is very real. "It's the convenience People will look at a salad-to-go for home or for a picnic." They grab it and go". Glen Woody, Save-On-Foods in Red Deer, Alta., concurs: "It's an instant world we live in and the bagged vegatables sell very well. People want to get in, get out, and make their meals and get on with their lives." Fresh produce accounts for approximately $5 billion in Canadian supermarket sales each year. Of that nearly 10% is made up of "fresh cuts", prepackaged salads and vegetables. Candaian Grocer May 2003

Grocery Showcase West a Success
Good news from Vancouver. Some 340 exhibitors and 3,000-plus visitors (a 16% increase over last year's numbers) make the scene while seminar rooms at the Vancouver Convention Centre were packed, says conventions coordinator Vasliki Redounais. Speakers addresed everything from "how to manage your business in a time of crisis" to setting up a franchise. Canadian Grocer May 2003.

Yogurt is BIG!
In the past three years yogurt sales across Canada have jumped 40% per capita to 5 litres per capita. Here are some yogurt merchandising tips. *Double or triple face your high turnover yogurts to prevent out-of-stocks. *Limit features to new products to encourage trial as yogurt sells well at regular prices. *Block yogurt sections by brand first and then type as shoppers are brand loyal. But if you have the space, block by category (eg. diet) and then by brand. *Provide in-store sampling of yogurt, particularly new products, to encourage trial purchases. *Maintain dairy case temperatures at 40F. *Regularly rotate stock on the shelf and in the back room. *Replenish and face shelves regularly throughout the day. *Cross-merchandise yogurt with complementary health foods such as fresh fruit and high-fibre cereal. Source Canadian Grocer May 2003 issue.

The changing profile of the consumer
According to Lisa Rostocks article in the March issue of Canadian Grocer - most marketers still haven't started to work to capitalize on the potential profits that can be made from the largest population group in Canada, the ageing boomers. These boomers will be reaching retirement in just a few years and have an estimated 80% of the wealth in Canada. Families are smaller and busier - food needs to be convenient in order to eat a healthy meal after work and still get the kids to their ball games. Newcomers to Canada are settling in our major cities. If you operate in a small town, you likely don't have to worry about having the right mix of ethnic foods, but you'll have to ensure you provide delivery service and have large typefaces on signage for your older consumers.

Dollar store's are expanding quickly
The Kelowna B.C. 145-store Your Dollar For More discount retail chain will open 50 Canadian sites this year. "We're looking coast to coast", says Dave Uzelman, president of YDFM. Special emphasis, however, will be placed on Eastern Canada. Quebec is expected to be a prime focus of the rapidly expanding chain. Ontario and Alberta will also be part of the expansion. Your Dollar For More stores carry products in the $1 to $50 range in a typical dollar-store mix. Store space is usually 1,500 sq. ft. Not only is the retail chain planning big things in Canada but it's also looking for aggressive new store growth in the United States, where it already has 23 outlets.

Wal-Mart raising the bar in Canadian Retail
Since entering Canada in 1994, the U.S.-based discount chain has grown to 213 stores and is now the market leader in apparel, footwear and electronics. Wal-Mart also sells 3.7% of all groceries in Canada without running grocery stores and 3.2% of all drugstore merchandise. At the same time, Loblaw sees great potential to grow its nonfood business in gas, pharmacy, general merchandise and financial services. This year, Loblaw plans to add two dozen gas stations in Ontario to the 95 it already has nationwide. Also in the works is an expansion of general merchandise offerings. "We estimate the nonfood business in Canada available to Loblaw to be $40 billion." John Lederer, president, Loblaw Cos. Ltd. Source from Sonya Felix, Canadian Grocer, March 2003 issue.