It’s time to tackle out-of-stocks Changing

retail spaces

FEBRUARY 2020

THE FARM
BOY WAY
Co-CEOs Jeff York and
Jean-Louis Bellemare
on keeping things fresh
and wowing customers
 NO MATTER
HOW YOU SEE IT,
THE NUMBERS ARE
ALWAYS RIGHT.

SUBARU
BEST RESALE VALUE OF
ALL MAINSTREAM BRANDS
1

5 years in a row

2020 ASCENT 2020 LEGACY 2020 CROSSTREK 2020 OUTBACK 2020 IMPREZA

98.3% of our vehicles sold in Canada over the last 10 years are still on the road today.
2

And for the 5th consecutive year, ALG named Subaru as the Top Mainstream Brand for Residual Value.
The numbers speak for themselves. They are proof of Subaru’s reliability.
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1. ALG named Subaru the Top Mainstream Brand for Residual Value in the 2019 Canadian Residual Value Awards. ALG is the benchmark for residual value projections in North America,
publishing residual values for all vehicles in the United States and Canada. For more information, visit www.alg.com. 2. Based on IHS Markit Vehicles in Operation as of June 30, 2018 for
Model Years 2009 to 2018 vs Total New Registrations of those vehicles.
 CONTENTS
February 2020
COVER STORY Volume 134 Number 01

KEEPING IT OPINIONS

FRESH
5 Front Desk
17 Shopper Sense

18
54 Checking Out
Farm Boy continues to wow PEOPLE
by constantly improving its fresh 6 The Buzz
Comings and goings, store
market concept openings, awards, events, etc.
8 Oumar Barou Togola
FEATURES Farafena’s co-founder is bringing
African superfoods to North
CHANGING America

SPACES 31 IDEAS
31 As the way consumers 11 Taking aim at theft
Staggering losses and safety
shop for food is evolving, so, concerns are spurring new
too, is grocery store design solutions to retail theft
13 Cooling on keto
THE Survey finds Canadians who have
tried the diet aren’t sticking to it
PERSISTENT 14 Craving halal innovation
PROBLEM As expectations rise, retailers
should make space for more
OF OUT-OF- interesting halal products

STOCKS AISLES
36 How can grocers tackle 43 Smooth operator
this longstanding challenge Butters and spreads are hot,
thanks to diet trends and product
once and for all? ingenuity
47 New on shelf
Shining the spotlight on the latest
products hitting shelves
48 It’s in the cards
Thanks to millennial appeal and
high-margin potential, greeting
8 cards are still big business
50 Jerky: Four things to know
From its protein power to meatless
options, learn more about this
booming category
52 Oh, baby!
Nielsen data reveals how
baby care products have been
performing

50
COVER PHOTO: JESSICA DEEKS

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@CanadianGrocerMagazine

February 2020 Canadian Grocer 3

 OUR V ISION IS TO BE THE MOS T
TRUS TED AND BE S T LOV ED TISSUE
COMPAN Y IN NOR TH A MERIC A .
Making everyday life more comfortable.

® Registered trademarks and TM trademarks of Kruger Products L.P. © 2019 Kruger Products L.P.
® SCOTTIES is a trademark of Kimberly-Clark Worldwide Inc., used under licence.
 PUBLISHER
Vanessa Peters
[email protected]
EDITOR-IN-CHIEF
Shellee Fitzgerald
FRONT DESK
[email protected]

MANAGING EDITOR
Carol Neshevich
[email protected]
ONLINE EDITOR
Kristin Laird
[email protected]
ART DIRECTOR
Josephine Woertman
[email protected]
CONSULTING EDITOR
George H. Condon
[email protected]
DIRECTOR OF PRODUCTION
Michael Kimpton
[email protected]

SENIOR VICE PRESIDENT, CANADA

Donna Kerry
[email protected]
VICE PRESIDENT, PRODUCTION
Derek Estey
[email protected]
VICE PRESIDENT, EVENTS
Michael Cronin
[email protected]
MARKETING DIRECTOR
Alexandra Voulu
[email protected]
SENIOR DIRECTOR AUDIENCE STRATEGY
Lina Trunina
[email protected]
SENIOR DIRECTOR, DIGITAL CANADA

BLAST FROM THE PAST

& SPECIAL PROJECTS
Valerie White
[email protected]

SALES
SR BUSINESS DEVELOPMENT MANAGER
Chantal Barlow
[email protected]
100-year-old copies of Canadian Grocer provide
NATIONAL ACCOUNT MANAGER
Jacquie Rankin
a fascinating glimpse of our industry
[email protected]

AT THE END OF last year, a reader in the Greater adding a meat department to his grocery
SUBSCRIPTION SERVICES
Subscriptions: $85.00 per year, 2 year $136.00, Toronto Area reached out. In the process of business was “One of the most effective
Outside Canada $136.00 per year,
Single Copy $12.00, Groups $59.00,
renovating an old building, she stumbled means of drawing trade.” The logic, behind
Outside Canada Single Copy $16.00.
upon a stack of Canadian Grocers. What’s this: “The store that meets the entire needs
Email: [email protected]
Phone: 1-844-694-4422 between 9 a.m. to 5 p.m. EST weekdays remarkable is that these magazines (or, of the home as far as food products are
Fax: 1-844-815-0700
Online: www.canadiangrocer.com/subscription more correctly, “weekly papers”) were pub- concerned must of necessity be assured of
REPRINTS, PERMISSIONS AND LICENSING
Please contact Wright’s Media
lished more than 100 years ago! Gener- a large measure of success.”
[email protected] 1-877-652-5295
ously, she offered to send them our way. These weekly papers reminded us of
When they arrived in the office a few Canadian Grocer’s long history reporting on
days later—yellowed from age, but other- this industry (which we’ve been doing since
CORPORATE OFFICERS wise well preserved—we were fascinated. 1886) and provide a fascinating glimpse
CHIEF EXECUTIVE OFFICER Jennifer Litterick
CHIEF FINANCIAL OFFICER Jane Volland
Carefully, we pored over the pages filled into grocery at a particular moment in a
CHIEF INNOVATION OFFICER Tanner Van Dusen with stories like the “Serious sugar situa- time. Perhaps 100 years from now, someone
CHIEF HUMAN RESOURCES OFFICER Ann Jadown tion” in August 1918; the Christmas turkey will stumble upon this February issue and
EXECUTIVE VICE PRESIDENT,
EVENTS & CONFERENCES Ed Several shortage of 1919; and the more sobering be confounded by the keto diet (p.13) or
wartime messages: “Buy Victory Bonds—we bemused that retailers were struggling with
mail preferences: From time to time other organizations may owe it to our gallant fighting men.” out-of-stocks (p. 36) or amazed that in-store
ask Canadian Grocer if they may send information about a product
or service to some Canadian Grocer subscribers, by mail or email. Reading through the “papers” again this vertical gardens were still such a novelty
If you do not wish to receive these messages, contact us in any
of the ways listed above. week, I was struck by some similarities, too: back in 2020. It’s a fun thought.
Contents Copyright © 2020 by EnsembleIQ, may not be reprinted how grocers a century ago were also trying
without permission. Canadian Grocer receives unsolicited materials
(including letters to the editor, press releases, promotional items to navigate a constantly changing business.
and images) from time to time. Canadian Grocer, its affiliates
and assignees may use, reproduce, publish, republish, distribute, While in this issue we look at how grocers
store and archive such submissions in whole or in part in any
form or medium whatsoever, without compensation of any sort. are changing up store designs to lure shop-
ISSN# 0008-3704 PM 42940023 Canadian Grocer is Published
by Stagnito Partners Canada Inc., 20 Eglinton Avenue West,
pers and get them to stay longer (p. 31), in Shellee Fitzgerald
Ste. 1800, Toronto, Ontario, M4R 1K8. December 1918 Canadian Grocer was report- Editor-in-Chief
Printed in Canada
ing on a Toronto merchant who found that [email protected]

The grocery industry is changing rapidly. Keep up to date on the latest news by
We acknowledge the financial support of the Government of
signing up for our e-newsletter. It’s free and we’ll deliver it to your inbox three times a week.
Canada through the Canada Periodical Fund of the Department
of Canadian Heritage.
VISIT CANADIANGROCER.COM TO SUBSCRIBE

February 2020 Canadian Grocer 5

THE BUZZ The latest news in the grocery biz

The Ontario debut

of Rachelle Béry OPENINGS
coincided with the
grand re-opening Sobeys’ Rachelle Béry banner
of Sobeys’ Glendale
location in made its debut in Ontario and
St. Catharines British Columbia in late January.
These first two Rachelle Béry
boutiques outside of Quebec
are located within a Sobeys in
St. Catharines, Ont., and inside
a Safeway in Vancouver. The
30-year-old natural and organic
goods banner is well known
in Quebec where there are 11
standalone stores and more than
50 boutiques located within IGAs.
Unlike in Quebec, the two new
1,200-sq.-ft. boutiques will not
sell food or private-label products
but will carry an assortment of
natural and organic cosmetics,
beauty, and wellness items. Sobeys
has not revealed plans for further
expansion of Rachelle Béry, but
spokesperson Cynthia Thompson
told Canadian Grocer Sobeys would
be watching customer response to
the first couple of locations closely
ANNOUNCEMENTS
and that they were excited about
the potential of the brand outside
T&T Supermarket
In Canadian Grocer news, VANESSA PETERS is­ shuttered its downtown
of Quebec.
the new publisher. Peters held key sales
Toronto location at the FARM BOY opened its 30th location in the
and ­s ales management roles at Cana-
end of January. The Ontario city of St. Catharines on Jan.
dian ­Grocer between 2005 and 2015 and
Loblaw-owned Asian 30. (Read more on Farm Boy on page 18.)
returned to the brand in early 2017. She
grocer was forced to close In December, the fresh market chain
has been in the role of associate publisher
the 41,000-sq.-ft. Cherry announced aggressive expansion plans
since January 2018.
Street location as a result over the next two years that will see it
“Vanessa has a passion for the grocery
of the city’s waterfront add five locations in Toronto, two in
business and extensive experience in
revitalization project. Ottawa (including a relocation) and one
business-to-business media, which makes
T&T says it is actively in Newmarket, Ont.
her the ideal person to lead the Canadian
Grocer team,” says Jennifer Litterick, CEO searching for another GIANT TIGER has revealed plans to add
of EnsembleIQ, the parent company of downtown location to to its store count this summer. The
Canadian Grocer. “She has earned the serve its customers. discount chain says it will open stores
respect and trust of both her colleagues in the Ontario cities of North Bay and
and industry peers, and I am confident Sault Ste. Marie on July 25. The retailer
she will continue to collaborate with is in expansion mode: it recently broke
our clients and partners to support the ground on a home office and flagship
grocery industry and drive growth for store in Ottawa and has stated its aim to
the business.” open 10 to 15 stores per year.

6 February 2020 Canadian Grocer

 IN MEMORIAM

COMINGS AND GOINGS

EVENTS
DENIS GENDRON, president
of United Grocers Inc. The San Diego
(UGI) has announced he is Convention Center will
retiring at the end of June, once again host The NGA
Denis Gendron Show 2020 from Feb. 23
after nine years in the role.
A search is underway for to 26. Visit ngashow.com
Gendron’s replacement. for details.
Kruger Products has
The Convenience U
announced that NANCY
MARCUS, its chief marketing
CARWACS Show will
officer for North America, take place March 3 to 4
is retiring on March 1 after at the Toronto Congress
Nancy Marcus Centre. For more info, visit
19 years with the company.
Former PepsiCo executive convenienceu.ca
SUSAN IRVING will take over
the CMO role from Marcus. Seafood Expo North
America returns to the
ALAN GLASS
STACEY KRAVITZ has been
promoted to senior vice-
Boston Convention and Executive Chairman
president of sales at UNFI
Canada. Kravitz joined
Exhibition Center from
March 15 to 17. For details of EnsembleIQ
Susan Irving
UNFI in 2016 following
visit seafoodexpo.com Aug. 8, 1949 - Sept. 6, 2019
a nearly 20-year stint
at Kraft Heinz. JOANNE SIAL Canada will take alan glass, venerated executive chair-
HILLION, a CPG veteran place at Montreal’s Palais man of EnsembleIQ, the parent com-
with experience at Mars, des congrès from April 15 pany of Canadian Grocer, passed away
Reckitt Benckiser and to 17. Visit sialcanada.com recently, after a long and courageously
Pepsi, has joined UNFI in for details. fought battle with cancer. His family,
the role of vice-president friends, professional colleagues and this
Stacey Kravitz of sales. The Vancouver company mourn his passing.
Convention Centre East Mr. Glass had a long and storied career
ERIN ROONEY is now spanning more than four decades in the
Building will host CFIG’s
vice-president of sales and media and information services indus-
Grocery & Specialty Food
marketing at McCormick try. He began his career in publishing
West Trade Show and
& Company. Previously, with The Wall Street Journal, and he went
Rooney held senior roles at Conference from April 27
to 28. Visit gsfshow.com on to serve in senior management posi-
Andrew Peller Limited and tions in multiple media and information
SC Johnson. for info.
services companies—including Thom-
Erin Rooney son Transport Press, Primedia, Common-
ROBERT ISABELLA is chief The Canadian Produce
supply chain officer at B.C.- wealth Business Media, CFO Publishing
Marketing Association’s
based Silver Hills Bakery. and United Business Media. In 2000, Mr.
Convention and Trade
Previously, Isabella spent Glass led the management buyout that
Show takes place at the created Commonwealth Business Media,
16 years at Weston Foods.
Metro Toronto Convention which he successfully sold to UBM.
Centre (South Building) Throughout his 40-year career in the
May 12 to 14. Visit cpma. information industry, Mr. Glass devel-
ca for details. oped a well-deserved reputation as an
GIVING BACK astute executive, successful entrepreneur,
caring mentor and loyal friend.
VINCE’S MARKET has wrapped up the second year of its Commu- Those of us who were privileged to
nity Product Initiative, raising more than $15,000 for worthy work with him will miss his visionary
causes in each of the four Ontario communities it serves. Holland perspective, insightful analysis, prodi-
Landing Food Pantry (Sharon), Community Living Central York gious work ethic, unique sense of humor
(Newmarket), Loaves and Fishes Food Bank (Uxbridge) and Mat- and—most of all—genuine friendship.
thews House Hospice (Tottenham) are among the organizations We extend our deepest sympathies to
benefitting from Vince’s community program, which to date has his wife Cathy, their children and grand-
raised just over $40,000 for local groups. children. CG

February 2020 Canadian Grocer 7

PEOPLE Who you need to know  

BIG PICTURE
THINKER
In bringing African superfoods to
North America, Oumar Barou Togola
is helping transform communities
By Rosalind Stefanac
Photography by Adam Blasberg

The Facts
Who?
Oumar Barou Togola
Position:
Co-founder and
executive chairman
of Farafena
What’s New?
New blockchain-
based system that
gives consumers
the ability to trace
Farafena products
from farm to retailer
 umar Barou Togola always In fact, after Togola graduated from
looks at the big picture. university and started thinking about 30 SECONDS WITH...
In starting his company, launching a business, it was his father
Farafena, in 2013, not only who suggested they try and grow some-

OUMAR
did he want to introduce thing on their family land in Mali.
sustainable African foods to Togola wanted to take that a step fur-
Canadian palates, he wanted
to ensure his products would pos-
ther by collaborating with a cooperative
of local farmers. “I thought it would be BAROU
itively impact the African farmers who
helped produce them.
best to sit down with the local farmers
and see what would benefit them, too,” TOGOLA
At a time when more and more con- he says. Togola targeted women farm-
sumers are turning to sustainable, plant- ers, specifically, believing they are the What’s your favourite thing
based diets, Togola’s big-picture thinking centre of family life in Africa. “Growing about Canadian culture?
proved fruitful. Today, the Vancou- up I saw how much women did for the When I came here at 16 to
ver-based company works with more family, yet they weren’t valued for it and attend boarding school, I didn’t
than 1,000 female farmers in nine vil- I wanted to change that.” speak a word of English. But
lages in West Africa and one village in After three years of working with everyone was kind and welcom-
Malawi, and has developed four products women farmers, Togola says it was the ing, and one of the first people
based on African superfoods—a trend men of the villages who came forward to I met is still my best friend and
currently gaining favour across North express gratitude. “The money their wives co-founder of the company. My
America. In fact, Whole Foods Market were making was going towards buying parents allowing me to come
included “Foods from West Africa” on land, building homes and their kids’ edu- here was the best decision.
its list of Top 10 Food Trends for 2020. cation,” he says. “Allowing the women
Farafena’s products include Fonio to make decisions was a powerful thing.” What’s the secret to your
Grain (described as a cross between cous- This year, Farafena will be adding more success?
cous and quinoa) and Fonio Flour, made farmers to its cooperative and plans to Staying true to who I am and
from the ancient drought-resistant grain. open a state-of-the-art North Ameri- where I come from, as well as
The company also produces Moringa can-standard processing facility in Tab- making my business about more
Leaf Powder and Baobab Fruit Powder, acoro, Mali, creating local jobs. than just me.
which both can provide a nutritious And in an effort to be as transparent as
Any advice for other
boost to smoothies, sauces and snacks. possible, the company is also now using
entrepreneurs?
“Twenty years ago, no one was talking blockchain technology to give consum-
Surround yourself with people
about things like quinoa or alternative ers the ability to track Farafena product
who can help you grow, but don’t
grains, but now consumers are way more from farm to retailer via barcodes.
let them change your vision of
aware and willing to learn about prod- Meanwhile, the popularity of Farafena
why you started in the first place.
ucts like ours,” says Togola, Farafena’s continues to grow. Carried in 950 retail-
co-founder and executive chairman. ers across Canada, including Loblaws, What’s your favourite
That’s not to say it was easy getting Whole Foods, Save-On-Foods and Bulk food, outside of Farafena
retailers to carry his products. “Whole Barn, Farafena was recently listed with products?
Foods in Vancouver was the first one to UNFI (one of the biggest food distrib- Japanese and Moroccan
take us on, but my calls were ignored for utors in North America) which Togola cuisines. Sushi is such a creative
three months,” he says. Showing up at says now opens the door to a slew of new way to use seafood and I love
head office with some treats made with retailers in the United States. The com- the flavours in Moroccan tagine.
his products finally did the trick. “One pany’s African superfoods are creating a Fried plantains are also one of
of the buyers gave me a few minutes to buzz in other retail sectors, too. One of my favourites.
share my story and he found it compel- British Columbia’s biggest gluten-free
ling enough to take us on,” says Togola. bakeries is using Farafena’s Fonio in one Any hidden talents?
This passion for Africa dates back to of its bagel recipes, while a well-known I love playing drums and danc-
Togola’s childhood. Born in Mali in West Canadian natural granola and breakfast ing. I was in a dance group in
Africa, he says it was his parents who cereal maker has expressed interest in high school that travelled across
inspired him to launch a business with a using the grains for future products. North America.
socially-conscious focus. “My mother was Yet even with all this growth and
a midwife and the work she was doing in brand recognition, Togola feels there is
the community was amazing,” he says. still much to do. “I don’t feel like I’ve
Meanwhile, his father came from a family done much at all,” he says. “Success to
of 20 children and was one of only two me is not about the money or number
siblings to get an education. “My father of stores we’re listed in, but seeing we’ve
was a hydrologist for UNICEF for 23 years made a real difference in the lives of peo-
and I saw first-hand how he made com- ple in the communities in Africa for the
munity development his focus.” long term.” CG

February 2020 Canadian Grocer 9

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 IDEAS Retailers, suppliers, shoppers, insights

LOSS PREVENTION

Taking aim at theft

G
Staggering rab and go took on new meaning for staffers at Real Canadian Super-
stores in Winnipeg, who until last December were witnessing shoplifting
losses and safety events several times per shift, with thieves leaving stores with items like

concerns have electronics, meat and Tide pods. So says Jeff Traeger, president of United
Food and Commercial Workers union (UFCW Canada) Local 832, which
retailers seeking represents employees at all Loblaw and Sobeys banners in Manitoba.
Shoplifting was at “crisis levels,” he says, and only when Loblaw started hiring
new solutions to
SHUTTERSTOCK/INDUSTRYVIEWS

off-duty police officers in its stores in the city did the problem decline. But, he says,

retail theft that’s only a temporary solution that sends shoplifters to stores without a police
presence. (By press time Loblaw had not responded to requests for comment.)
Traeger blames poverty, homelessness, unaddressed mental health issues and
By Danny Kucharsky an addiction crisis (primarily crystal meth) in Winnipeg for contributing to the
theft problem. “The challenges in retail are social challenges (that) can’t be solved

February 2020 Canadian Grocer 11

IDEAS

through increased use of security or policing.” for thieves,” adds Michael Arntfield, a former police
In response to the concerns around theft and officer who teaches literary criminology at Western
safety in Manitoba, the Retail Council of Can- University in London, Ont.
ada (RCC) organized a roundtable in late January, Compounding the problem, he adds, is that the
bringing together government, businesses and law vast majority of loss prevention investigators are
enforcement to come up with ways to combat rising outsourced from outside agencies that don’t know
theft in the province. the retailers or their employees. The system “is more
Retail theft, of course, is not a problem unique cost-effective, but not as effective in terms of asset
to Manitoba. The RCC estimates Canadian retailers recovery and prevention.”
lose $7.8 billion a year to shoplifters. (A breakdown Another problem is that most shoplifters are not
is not provided for grocery stores.) “We need to prosecuted under the criminal code, says Stephen
improve information sharing to understand what’s O’Keefe, a consultant at Bottom Line Matters in
happening,” Michael Coladipietro, director of risk Georgetown, Ont., who advises retailers on their
management at Longo’s, says of the roundtable. loss management risks.
Fortunately, “collectively there’s more willingness One tactic retailers are employing is to sue certain
now to share information than there ever has been.” shoplifters, which can serve as more of a deterrence
Coladipietro says theft in the grocery industry than going through the criminal system. The shop-
is a growing concern. “We’re seeing an increase in lifters are held accountable not only for the cost of
theft activity for a variety of reasons,” he says. In the goods but also the retailers’ administrative costs.
Ontario, the introduction of sales of beer and wine “That has been a shock to people who think they’re
in grocery stores has contributed to the problem, getting off scot-free,” O’Keefe says.
he says, as have higher prices and a growth in sto- Among individual shoplifters, “reusable bags are
len products that are resold in the black market. At a huge issue,” says Christy McMullen, co-owner of
Longo’s, popular items for theft include meat and Summerhill Market in Toronto. “We have to put up
cheese, razors, alcohol, over-the-counter drugs, signage that customers cannot use their own bags
probiotics and baby formula, the latter of which is while shopping. We have found people fill up their
largely driven by organized retail crime. bags and then just walk out.”
Indeed, organized retail crime has increased sig- At Circle K, a big portion of shoplifting is youth-re-
nificantly in the last five years, says Bob Moraca, lated, says Sean Sportun, manager, security and loss
vice-president of loss prevention at the National prevention at Circle K, Central Canada division in
Retail Federation in Washington, D.C. Toronto. “When we start seeing a spike in theft in
Moraca adds that the federation has been asking some stores and it’s usually because there’s a school
retailers for the last 25 years what constitutes their nearby, (we’ll) reach out to the local police, talk to the
largest cause of shrinkage. For the first 21 years, the school officers and meet the school faculty.”
answer was unscrupulous employees, but in the last Circle K has found some success with its positive
four years organized retail crime ticketing program, in which police officers distribute
“You don’t need any has taken over. coupons for free drinks at the convenience store to
There’s also been an increase youth who are doing positive things in the commu-
special training to in violence. Years ago, groups of nity. “It breaks the barriers between police and youth.”
commit crimes in retail. shoplifters would grab multiple The use of social media as a crime prevention
You just have to be able items off the shelf and run out
the door, Moraca says. “Now,
tool has also been effective, Sportun says. Working
with law enforcement and Crime Stoppers, images
to run into the store, these criminals are pushing peo- of suspected Circle K shoplifters are posted on social
grab the stuff and run ple to the ground, they’re punch- media, and people with information are asked to
ing our associates, they are using call the police or Crime Stoppers. “We’ve seen up to
out and then have a stun guns, mace and in some an 89% success rate (in Ontario) for the posts that
place to fence it” cases, unfortunately, in the last we’ve put on social media.” Similarly, in the Greater
few years we’ve had one or two Toronto Area, Longo’s has partnered with Halton
homicides.” In part, he blames the opioid epidemic Regional Police’s Retail COP (Cameras on Patrol)
for the increase, as it has forced people who can’t program, which uploads images and descriptions of
hold a job to turn to shoplifting. “You don’t need shoplifting suspects to a police-operated site.
any special training to commit crimes in retail. You When it comes to preventing shoplifting, the solu-
just have to be able to run into the store, grab the tion lies in “creating a number of layers of security
stuff and run out and then have a place to fence it.” that deter, detect and delay theft,” Coladipietro says.
To combat the issue, Moraca says a growing num- While Longo’s is looking into AI (artifical intelli-
ber of organized retail crime associations (ORCAs) gence) technology that would provide alerts when
are being formed in the United States, comprised of known shoplifting suspects arrive in stores, Coladipi-
retailers, law enforcement and prosecutors. etro notes “99% of the people coming into our stores
The ever-increasing variety of items carried by are good honest shoppers. I would much rather put
grocers has allowed them to be “one-stop shopping the effort into having them enjoy the experience.”

12 February 2020 Canadian Grocer

 IDEAS

COOLING
ON
KETO
Survey finds Canadians
who have tried the diet
aren’t sticking to it
By Rebecca Harris
canadians are dropping the keto diet like a hot,
banned potato.
With all the “keto-friendly” labelled food products
popping up on grocery shelves, the Agri-Food Analyt-
ics Lab at Dalhousie University decided to poll Cana-
dians about their thoughts on this seemingly popular
low-carb, high-fat, medium-protein diet.
The Dalhousie survey, done in partnership with
Angus Reid, found that only 4% of Canadians are
following the keto diet while 10% are thinking
about it. Alberta has the highest percentage of peo-
ple on the keto diet (6%) followed by Ontario (5%).
The lowest rate is in Saskatchewan (1%). The diet
is a relative unknown in Quebec, where 27% of
respondents have never even heard of it.
“You cannot avoid keto-friendly products these
days—they’re just everywhere—and cooking shows
often talk about keto-friendly recipes,” says Sylvain
Charlebois, scientific director, Agri-Food Analytics
Lab, Faculty of Agriculture at Dalhousie University.
“So, one would think many Canadians are actually
on this diet, but 4% is a very, very low number. We
were expecting a much higher percentage.”
The survey results also suggest those who have
tried the keto diet aren’t sticking to it. More than
twice as many Canadians have tried and dropped
it (9%) than those who remain with the program.
While the number of Canadians on the diet is
low, Charlebois says it still makes sense for gro-
cery retailers to stock keto-friendly products. “It’s
like veganism. There is a limited number of people
who are vegans, but they are an influential group,”
he says. “People may not follow the keto diet, but
[they] are attracted to keto-friendly products.”
Most Canadians on the keto diet said they want
to lose weight (69%) and nearly half (48%) are gen-
erally concerned about their health and well-being.
While 15% of those on the diet started it as a result
of a friend recommending it, 5% said they were
influenced by a celebrity or TV show.
Survey respondents were also asked why they
stopped following the keto diet. While 12% said they
did not see any results, 37% felt the diet was too strict.
Since meat can be a big part of keto, 34% of
respondents felt the diet was too expensive. Finally,
24% felt the keto diet requires too much time and
10% felt the diet was too confusing.
IDEAS

HALAL canadian grocery shoppers looking spotlights halal food in Canada. Muslim
for halal are more dissatisfied with their communities are largest in urban mar-
options this year than they were a year kets, particularly Toronto. “But we are
ago, according to the new Halal Con- seeing a lot of growth in Alberta.”
sumer Insights Study. Rising dissatisfaction could be a reflec-

CRAVING In 2018, 43% of halal shoppers said

grocery chains were meeting their needs,
tion of evolving consumer expectations.
“We’re seeing grocery stores stepping up,

INNOVATION but this year that number slid to 36%

of respondents. Further, 32% of respon-
we’re seeing manufacturers stepping up
and offering more [halal] products, and
dents this year said major food compa- grocery stores making more space,” says
As halal consumers’ nies were not meeting their needs. Jivraj.“We feel that it’s consumer expec-
expectations rise, Conducted for Nourish Food Market-
ing, the survey asked 1,000 Canadian
tations that are going up,” she adds. “A
lot of the new halal products that are
retailers need to make grocery shoppers who buy halal about coming out, they just lack the inno-
shelf space for more their shopping and media habits, prefer-
ences and tastes. Halal is an Arabic term
vation they are used to seeing. They’re
saying okay it is halal, but is it organic,
interesting halal meaning permissible or what is allowed is it gluten free, is it keto?” Shoppers
for those following the Muslim faith, know those innovations are happening
products with food being one aspect of it. on the mainstream shelves, but they
By David Brown The size of the Muslim population in aren’t seeing them in the halal sections
Canada will be updated next year, “but of their grocery store. It’s up to retailers
the estimate that is going around right to make more space for more interesting
now is 1.4 million,” says Salima Jivraj, and innovative halal products, she says.
head of Nourish Multicultural and the The survey also found the average
founder of Halal Foodie­—­a website that Muslim household is larger and often
more multigenerational. Fully 14% of
Muslim homes are multigenerational
compared to just 3% of the average
Canadian households. “They’re eating
more food, they’re preparing more food,
they probably want larger pack sizes,”
says Jivraj. “Multigenerational is import-
ant because it tells us that the person
who is cooking is probably not the per-
son who is purchasing food.”
And the preferred grocery stores for
halal shopping? The survey has Costco
and No Frills coming out on top. “And
they have gone up significantly,” says
Jivraj. “Costco really is a favourite ...
It makes sense because they’ve been
strengthening their meat department
over the last couple of years to give a
better assortment, better variety and
especially a better price.” Walmart also
went up this year. “On halal specifically,
we have products available at 160 stores
(close to 40%) and they include fresh,
processed and frozen groceries and key
halal brands,” notes Felicia Fefer, man-
ager, corporate affairs for Walmart.
No Frills has also made efforts to
improve its offerings and pricing in
recent years, while popular mass mar-
keting efforts have likely had a positive
impact on awareness overall, including
with those shopping for halal.
Meanwhile, the study also showed
Marché Adonis experiencing a notable
drop in popularity this year. CG
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 SHOPPER SENSE
Carman Allison

THE EVOLUTION
healthier choices of fruit (70%), cheese
(67%), chips (58%), nuts and seeds (55%)
and cookies (55%).

OF SNACKING As consumers make different choices,

this is impacting the categories that are
trending in traditional snack categories.
Snacks represent a huge opportunity, but to unlock The top five snack categories are likely
growth you need to understand your snackers what you expect (cheese, salty snacks,
chocolate, yogurt and baked desserts),
while the top five growth categories
THERE’S NO RIGHT or wrong way to snack, buy a snack when they’re at the shelf show there are opportunities for indul-
and at nearly $6 billion and counting, and where impulsive cues and instinct, gence, convenience and health; these
the snacking category is experiencing combined with price, take over as the categories include marshmallow treats
a revolution in Canada. Considering deciding factors. (+14%), ready-to-eat pudding (+14%),
that consumers snack beyond what is However, this isn’t the case today. The apple sauce (+14%), meat sticks/jerky
traditionally defined as “snack foods,” snacking category is now much more (+12%) and prepared dips (+9%). The
it becomes clear that the snack oppor- expansive, and its purpose is not only to declining categories, on the other hand,
tunity increases by nearly three times meet an immediate shopper need, but tend to lean toward the more indul-
to $16 billion as how we snack evolves. to create new shopper needs and occa- gent side: pudding mixes (-35%), fro-
But for retailers and manufacturers, sions. In fact, Canadian consumers today zen yogurt (-8%), candied snacks (-2%),
how well do you know your snackers? choose, on average, 12 different types of yogurt (-1%) and ice cream (-1%).
What will their next snack be? Have they snack foods every month. And manufac- We have already noted that the tradi-
-04 11:58 AMalready decided or will they pick some- turers are giving consumers more choices tional snack category is worth $6 billion,
thing up on a whim? Will they go for a than ever before. Across the fast moving but the potential opportunity beyond
trusted favourite or try something new? consumer goods (FMCG) landscape in the snack aisle is nearly $16 billion as
2018, nearly 20,000 new food consumers look to new options to sat-
As the reasons for products were launched, with
12% (2,439) of those prod-
isfy their snacking desires. Consumers
want variety and are always looking for
why we snack evolve, ucts being snack foods.
As expected, consumers
something new, with innovation driving
$176 million in incremental growth last
so do the snack snack for enjoyment (86%)
or a reward or treat (78%),
year in the traditional snack category.
As with every category across the
choices consumers but more of us are snack-
ing with a conscience as we
FMCG landscape, consumers have myr-
iad options to choose from when it
make as they enter look to nutrition (62%) to comes to snacking. Understanding who,
fuel our on-the-go lifestyles, how, where and why shoppers choose
different life stages and grab a snack and skip a different items for snacking can help
meal (40%). As the reasons uncover new opportunities for distribu-
Will they eat it on their own or share it for why we snack evolve, so do the snack tion, innovation and marketing to ensure
with family and friends? Do they snack choices consumers make as they enter success on an already crowded shelf. In
every day or is it more confined to a par- different life stages. With diversity in addition, knowing how and why your
ticular time of the week, maybe even just snacking preferences fuelled by gender shoppers make their snacking decisions
a weekend indulgence? and age, you need a variety of options and purchases can help unlock growth
The traditional approach to the snack- in your store to meet consumer demand. opportunities and better challenge the
ing category has been widely based on Younger generations (millennials, gen Z) way this category is tackled today. CG
the view that snacking decisions are prefer indulgent snacks including choc-
generally unplanned and, therefore, olate (65%), chips (61%), cookies (59%),
brands need to make themselves highly sandwiches (56%) and cheese (54%).
visible in store to be considered. The Older generations (boomers, gen X), Carman Allison is vice-president of consumer insights at
belief is that shoppers only decide to on the other hand, prefer somewhat Nielsen in Toronto. @CarmAllison.

February 2020 Canadian Grocer 17

STORE PROFILE

KEEPING
18
it FRESH
February 2020 Canadian Grocer
 Farm Boy brought
its fresh food
experience to
St. Catharines in
January. It's the
30th Farm Boy
and the first in the
Niagara region.
Right: Co-CEOs
Jean-Louis
Bellemare and
Jeff York

Farm Boy
continues to wow
by constantly
improving its fresh
market concept
it ’ s early morning and already a
crowd has formed a long, orderly line
that snakes beyond the newly con-
structed building located just off a busy
commercial strip. It’s late January in
southern Ontario and it’s bitter cold,
but that doesn’t seem to be dampening
the enthusiasm of the bundled-up folks
waiting patiently outside, some who
have been queuing for up to two hours
to get inside. What’s all the fuss about?
Farm Boy has arrived in St. Catharines.
Located about an hour west of
Toronto, the new store is a bit of a mile-
stone for Farm Boy: it’s the 30th location
for the fast-growing Ontario retailer; it’s
also its first in Niagara, where it is strate-
gically placed to pull customers from all
over the region who want a taste of the
retailer's fresh market experience.
The ringing of the cowbell—a tradition
started at the opening of Farm Boy’s Bur-
By Shellee Fitzgerald Photography by Nikki Ormerod lington store in December—marks the
opening of business. Customers hustle
through the doors where they’re greeted
with a “Welcome We’re Glad You’re
Here” sign, then are hit straight away
PORTRAIT: JESSICA DEEKS

with abundant, meticulously arranged

displays of berries, avocados, mangoes
and gala apples. The scene reinforces the
store’s produce roots. Farm Boy began
its life in 1981 as a 300-sq.-ft. fruit and

February 2020 Canadian Grocer 19

STORE PROFILE

vegetable market, started by co-CEO Jean- Farm Boy grew and departments were the Farm Boy Kitchens. There are freshly
Louis Bellemare in Cornwall, Ont. “We’re added to the concept, Bellemare says the made soups—about 15 kinds available
pretty true to our roots and we don’t for- philosophy remained the same: make hot or cold—salads, sandwiches and a
get where we came from,” he says. “We sure the products are super fresh, make large hot bar. To support its growing
want to continue to lead in those depart- sure the prices are always fair and always fresh prepared food offer, it's opening
ments where we started.” stay on top of on the trends. a second commissary, in Toronto, this
At 24,000 sq. ft. and with an offer “When you’re all about the food [you summer. The other is located in Ottawa,
that extends to in-store prepared sushi, won’t find Tide pods, toilet paper or sham- where the retailer is based.
stone-baked pizza and a slew of special- poo lining the shelves at Farm Boy!] you You can’t talk about Farm Boy with-
ties such as private-label kombucha and have to have your whole team listening out mentioning its robust private-label
Himalayan Pink Salt Popcorn, the new to what’s going on with the food trends,” offering. Farm Boy is often likened to
St. Catharines store would seem a far cry explains co-CEO Jeff York. He adds that popular U.S. grocer Trader Joe’s in its zeal
from the first Farm Boy, but Bellemare this includes closely watching the com- for store brands. In fact, there are close
says at its core it’s the same business. petition, following social media and, to 1,000 Farm Boy-branded products
“It’s a business that has grown tre- importantly, listening to the customers currently, and Bellemare says between
mendously, but has never really lost its who are “very vocal” in letting them 150 and 200 items will most likely be
focus from day one, which was to deliver know what they want. rolled out this year, noting that the team
exceptional fresh products at great value. York points to plant-based foods as a dedicated to that area of the business is
And always giving the customer a great prime example. “It has really ramped growing as is its “rolodex of suppliers”
experience—that has always been a high, up in the last two years, so our cus- that want to work with Farm Boy on
high focus for us,” says Bellemare. As tomers are always asking us for more its store brands. “We’re always highly
product and we work very hard on focused on our private label; we’re big
trying to expand those categories,” he believers in it,” says Bellemare, adding
says. Among Farm Boy’s vegan offer- that Farm Boy’s approach to private label
ings: Chicken-less proteins, Parmezzan is not complicated: it has to be a great
“cheese,” a vegan mayonnaise and vegan product, competitively priced and be
Tikka Masala, to name a few. somewhat unique. “At the end of the
“You evolve with the concept and you day, when we put out a product we want
evolve with what customers want,” says it to be a notch above our competitors,”
Bellemare. “If we would have introduced Bellemare explains. “We just don’t want
hot bars and salad bars 25 years ago, we to do it to put our name on it; we want
would have failed miserably because to do it because we can offer something
the customers were not ready for that. that’s a little different than what the
Today, it’s all changed.” Indeed, custom- others are doing.”
ers shopping at Farm Boy can now grab Indeed, the folks at Farm Boy are no
breakfast, lunch or dinner, prepared in fans of complacency, whether in the

An expansive
private-label
offering, in-house
prepared meals as
well as local and
organic products
are all part of
the Farm Boy
experience

20 February 2020 Canadian Grocer

 Sustainable
seafood is on offer
and the Farm Boy
Café seats about
40 and offers
guests free Wi-Fi

products they sell or the stores them- replaced with cardboard. In the produce
selves, which are always being fine-tuned. department, Farm Boy has largely gone
“We don’t just get a concept and stamp back to bulk, ditching much of the pack-
it out and say ‘that’s good; let’s go open aging; something, he says, its customers
a bunch of them.’ Every Farm Boy store have appreciated. And, the mesh reus-
we want to make better. It’s the Farm Boy able produce bags it sells for a nominal
way,” says York. “We constantly push price ($1.99 for two bags) have also been
ourselves to improve. It keeps you more a huge hit. “We have suppliers, as well,
relevant to the customer.” that we’ve been working with that have
This philosophy of always wanting to come a long way in the last 18 months,”
improve also shapes Farm Boy’s approach says Bellemare, pointing to the best-sell-
to the important issue of sustainability, ing coloured peppers as an example. The
which Bellemare says is always top of peppers now come in trays that are recy-
mind. “Customers are reminding us of clable. “We’re paying premiums for all
it every day,” he says, adding that all these things, but we’re doing it because
members of senior management at Farm we believe it’s the right thing to do.”
Boy read every single customer email The “Farm Boy way” is certainly hit-
that comes through, be it complaints or ting the right note with customers. Last
positive feedback. And on the issue of November, Farm Boy topped Leger’s
sustainability, he says, Farm Boy’s cus- WOW Index for customer experience
tomers are very engaged. at Ontario grocery stores for the second In Farm Boy's
“We’ve done a lot in the last year, but year running, edging out tough compet- meat department
we need to keep working on it,” says itors such as Your Independent Grocer, shoppers will find
a wide selection
Bellemare. He notes that in the bakery Longo’s, Sobeys and Whole Foods Mar-
of organic beef,
department about 80% of the plastic ket. “Farm Boy tends to be clear about chicken and pork
that was used has been removed and who they are and what their offer is.

February 2020 Canadian Grocer 21

STORE PROFILE

The introduction
of reusable
produce bags has
been a "huge hit"
at Farm Boy

That clear positioning combined with urban markets where Empire is under-
them being a ‘local’ business seems to penetrated. Medline said Farm Boy is
resonate with shoppers,” Leger’s senior in different stages of development in
vice-president Michelle Carter told Cana- more than 25 new stores in Ontario and
dian Grocer at the time, adding that the boldly asserted: “We intend to blanket
customer experience Farm Boy delivers the GTA [Greater Toronto Area] and take
is also very consistent. market share from incumbents.”
“We’re really proud of that. And in the York, who joined Farm Boy in 2009
same breath, we’re concerned about always after nearly 20 years at Giant Tiger,
maintaining that,” Bellemare laughs. “Our acknowledged the challenge of growing experimenting with “downsizing” to
people work very hard to deliver that cus- too quickly and being able to maintain squeeze into urban areas, York says Farm
tomer experience and as you continue to consistency across the network. “That’s Boy is well positioned owing to its small-
grow the company, you recognize the always a concern, but one of the things store roots. “It’s very difficult [downsiz-
importance of maintaining that so we’re we’ve been doing the last two to three ing]. I’ve been in retail almost my entire
certainly working hard with the team and years is really building out our teams life. I’ve hardly ever seen a big store
HR to make sure we can deliver that kind in the different areas of Ontario. We’re operator [effectively] run a small store.
of service for years to come.” confident that we’ve built a pretty good It’s very difficult to do the systems, the
The trick, of course, will be to main- team in Toronto, and you always need way they allocate shelf space,” says York.
tain what makes Farm Boy special as it to be adding to your team and finding “With Farm Boy, the roots of the brand are
aggressively grows its footprint across good people.” in small stores. We just happened to take
Ontario. In December, it announced an When Farm Boy adds to its Toronto more space when it’s available to us—we
expansion plan that will see eight new store count (there are currently two loca- can run in any size store.” An advantage,
locations, which includes St. Catharines, tions in the city) later this year, it will perhaps the biggest one, of now being
Newmarket, Ottawa and five locations aim to win over urbanites with smaller owned by Empire is the access it gives
in Toronto, as well as the relocation of footprint stores and a carefully curated Farm Boy to prime sites. “Before, we were
its Ottawa Train Yards store, all by 2021. assortment. getting the crumbs,” York says, noting
The stores will range in size from 12,000 “They have to get in and out fast,” says the best locations would go to Loblaw,
sq. ft. to a 38,000-sq.-ft. signature store. York of its urban customers. “We’re going Metro or Sobeys. “We’re first call now.”
And that’s just the start. On a con- into smaller sites where we’ll concentrate As Farm Boy readies for its big push
ference call with analysts in December, on giving the customer what they want into one of the most competitive mar-
Empire CEO Michael Medline said Farm in those immediate areas. That’s why the kets in the country, its focus is crystal
Boy, which Empire scooped up in late whole fresh food, the meals that are ready clear. “What we need to continue to
2018 for $800 million, was “outperform- to eat, are really important and we’ve do is always wow our customers and
ing all of our expectations,” and that it, built that muscle over the last 10 years. not disappoint them,” says Bellemare.
along with its Voilà e-commerce solu- So now, as we’re growing in Toronto, we “That’s how we keep going for years to
tion, would be its weapon for winning have a compelling offer for that customer.” come. We’ve just got to keep wowing
in Ontario, particularly in the province’s While many large grocers have been our customers.” CG

22 February 2020 Canadian Grocer

 NEW

REESE Brand is growing 5%

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King Size 75 g

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REESE’S PIECES REESE’S PIECES
Peanut Candies Peanut Candies
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Source: Neilson MarketTrack: National 5 Channel L52Wks PE. Jan 04, 2020
 NEW!

• JOLLY RANCHER is the fastest growing

mainstream Candy Brand YTD1
• Fun new candy that mashes together
two JOLLY RANCHER fruit flavours
and characters for fantastic
gummy combinations
• Life is a lot more interesting when
you mix and match things together –
even candy!

AVAILABLE NOW
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Source: Nielsen, National 5
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10 NEW JOLLY RANCHER Misfits Gummies Mer-Bears 182 g

10 NEW JOLLY RANCHER Misfits Gummies Uni-Sharks 182 g
Assorted Non Chocolate 10 JOLLY RANCHER Misfits Gummies Sours 182 g
MEDIUM PEG 20 JOLLY RANCHER Misfits Gummies 182 g
10 JOLLY RANCHER Fruity Sours 182 g
Prepack - 94 count 10 JOLLY RANCER Hard Assorted Candy 198 g
12 TWIZZLERS Soft Bites Strawberry 170 g
12 TWIZZLERS Soft Bites Black Licorice 170 g
 Hitting the
Sweet Spot
Front-end confection boosts basket size and shopper
happiness, and grocers can do more to maximize the category

The checkout lane may be the last destination in

the shopping journey, but the opportunity
for one last sale isn’t over. As shoppers are waiting in
INSIDE CONSUMERS’ MINDS
While some grocers are expanding their checkout
offerings beyond sweet treats, research conducted for
line or unloading their carts, grocers can increase sales The Hershey Company shows that a traditional confection
with something sweet: the high-margin, high-impulse assortment at checkout actually increases shopper
confectionery category. happiness, whereas it drops (-11 points) with a better-for-
Research shows that confection, beverages and snacks you assortment.3
comprise close to 80% of checkout sales, with confection The reason? Shoppers have a strong emotional
leading the way at more than 40%.1 Ranked the number- connection with confectionery. Purchases at checkout are
one impulsive purchase, confection represents more than driven by how they feel, for example, they may be reminded
one third of snacking dollar volume and is highly profitable. of a chocolate bar or candy they loved as a child, or they
Making more sales at the front end is especially want to reward themselves with a treat. That emotional
important given today’s changing retail environment. In connection correlates to an increase in happiness among
an era of online shopping and meal delivery at consumers’ shoppers within their overall shopping trip.
fingertips, fewer Canadians are making the trek to the Importantly, shopper happiness isn’t just a fleeting
grocery store (-2% in 2018), although they are spending moment—it has long-term, tangible benefits. Research
more overall (+3%).2 by The Hershey Company found that increased shopper
With the number of shopping trips down, grocers have happiness leads to an uptick in customer satisfaction,
to look for smart ways to maximize their customers’ spend spend, loyalty and number of trips. It also makes shoppers
when they are in store. While confection isn’t a trip driver a bit less price sensitive and increases the likelihood that
like milk or bread, it is highly impulsive and profitable, making they’ll recommend the store to others.
the category an effective way to boost sales and build basket Another reason retailers should pay more attention to
size. In addition, confectionery items drive engagement and front-end confectionery is simple: everybody loves sweets.
excitement among shoppers. Grocery stores of all sizes will Research shows that 19 out of 20 shoppers purchase
benefit from paying closer attention to the category and confection, across all age and household groups.4
making more efficient use of the checkout area. Household penetration of the category is also one of the

SPECIAL PROMOTIONAL FEATURE IN CANADIAN GROCER–FEBRUARY 2020

highest in retail, sharing the top spot with salty snacks.5 To help retailers answer that question, The Hershey
While there’s a near-universal love for chocolate and Company outlines five pillars for effective merchandising,
candy, the front-end confection category itself isn’t noting that confectionery ticks all the boxes:
leaving consumers totally satisfied. Overall satisfaction Relevant: The items are relevant and something
with the category is 35% compared to overall satisfaction consumers expect to see at checkout.
with all categories (55%).6 Elements such as execution, Responsive: Purchases are unplanned and incremental
assortment, product and price all ranked below overall to the business.
satisfaction with all categories. What would help increase Household Penetration: The category maximizes
satisfaction? Shoppers said innovation, ease of shop, potential buyers within the household.
shelf signage, theatre and information are the top areas Frequency: The items have repeat purchases.
retailers can improve. Dollars: The assortment maximizes growth in the
overall category.
HOW TO SWEETEN CONFECTION SALES Of course, space is limited in the checkout area, so
To boost total confection sales, retailers can start by grocery retailers have to think carefully about what last-
understanding what will get products into shoppers’ minute products they want to sell. Confection, beverage
hands—and carts. A Hershey Shopper Insights study found and snacks are the top three power categories at checkout,
that among all touchpoints in the path-to-purchase, the while magazines are on the decline within that space. The
strongest purchase drivers are displays, promotions and key for retailers is to allocate the right amount of space for
special offers. the top categories, with a lower emphasis on magazines and
In store, the top drivers experienced during the general merchandise. Those items have a different home
shopping trip (not at shelf) are: “saw confectionery items within the store and should be leveraged that way.
on display,” “saw a promotion or special offer” and “saw a When it comes to space efficiency, confectionery again
special offer in aisle.” At the shelf, the top purchase drivers comes out on top. Comparing Hershey’s bars with bags
are “saw an ad on shelf,” “saw a sign/shelf organization” of chips, for example, confectionery can generate nearly
and “saw it with another product I was shopping for.”7 eight times the sales with the same space. Confectionery
This demonstrates that in-store interruption is critical for drives a high amount of sales relative to the amount of
winning brick-and-mortar trips. Grocers can trigger sales space the category has, so offering up more space to
with promotions, offers confectionery can increase those numbers.
and displays within other Since the majority of front-end confectionery purchases
Since confection aisles in the store. are unplanned (68%)8, visibility is critical. That means
is highly impulsive While these touch retailers should think beyond the checkout racks.
points help boost total Confection is strongly influenced by secondary displays
and profitable, confectionery sales, it’s and has the highest display lift (+411 pt.) compared to items
the category is an important for retailers such as cookies (+364 pt. lift), crackers (+255 pt. lift) and
to make the distinction salty snacks (+223 lift).9
effective way to between the checkout While displays are a great way to increase sales, grocers
boost sales and and the aisle. Shoppers should also be on the lookout for new confectionery
basket size think and act differently products, pack sizes and formats. Merchandising vehicles
when they’re shopping can drive additional sales, but bringing new product
each of these sections. At innovation to the category is also key. Having new and
the in-aisle section, their purchases are more rational and different options at the checkout is critical to driving
more concrete, so typically the items are on their shopping excitement and engagement for shoppers.
list. There is also greater price sensitivity and purchases Sources:
are driven by goals, for example making baked goods or 1 Nat. G+D+M, L52wks PE June 23, ’18
replenishing the treat cupboard. 2 Nielsen, The Buying Power of Canadian Consumers, Feb. 2019
3 Kantar Millward Brown, 2018 1) Hershey Inspirational Qualitative (Brainjuicer) 2016; 2) Hershey
At the checkout, beyond the emotional and impulsive Consumer Deep Dive (Ipsos) 2018; Hershey Canada Global Consumer Relations (Canada) 2018
factors driving purchases, shopper behaviour is more non- 4 Neilsen MarketTrack, Ontario + West C&G, TL Chocolate + TL Confection, Latest 52 Wks,
Period End Jan. 5, 2019
linear and fluid. They’re seeking to explore some of their 5 Nielsen Cross Outlet Facts, L52 weeks P/E Dec. 30 2017
favourite items and there is greater promotion sensitivity 6 Lucros Shopper Intelligence 2016, Front-End Confection
7 Hershey Shopper Insights 2018
as opposed to price sensitivity. So, the important question 8 Lucros Shopper Intelligence 2016, Front-End Confection
for grocers is: are your checkouts set up to capitalize on 9 Nielsen MarketTrack Dec. 2015; Shopper Pulse Study, 2015

these behaviours?”

SPECIAL PROMOTIONAL FEATURE IN CANADIAN GROCER–FEBRUARY 2020

 Introducing NEW
TWIZZLERS
Tongue Twisters
Gummies

TWIZZLERS is the #2 Candy

RED tongue consistent across
every flavour – only the lips Brand in Canada
• Gummy appeals to younger consumers
change colours. Tongue to be
CORE TWIZZLERS flavours
(Strawberry & Cherry)

• Exciting flavours and colours

• Preferred taste and texture
• Outstanding in attention grabbing
AVAILABLE FOR ORDER NOW
20 TWIZZLERS Tongue Twister Sweet
Assorted Candy 20 TWIZZLERS Tongue Twister Tangy
10 JOLLY RANCHER Misfits Original
Medium Peg Prepack 20 JOLLY RANCHER Misfits Sours
90ct 10 JOLLY RANCHER Misfits Mer-Bear
10 JOLLY RANCHER Misfits Uni-Shark

Source: Neilson MarketTrack: National 5 Channel L52Wks PE. Jan 04, 2020
 NEW
product The Hershey Company’s latest
innovations will sweeten grocers’
confection sales

At The Hershey Company, innovation is a key

ingredient for driving growth. With a portfolio of
iconic confectionery brands, the company continues to
bring excitement to the category with new products and
new twists on consumers’ favourites. Grocery retailers can
team up with Hershey to boost confectionery sales and
give shoppers the tastes and formats they’re looking for.

REESE OUTRAGEOUS!
STUFFED WITH PIECES
Canada’s number-one chocolate brand,
Reese continues to delight fans with exciting
new treats. New Reese OUTRAGEOUS!
combines creamy Reese peanut butter,
crunchy Mini Reese’s Pieces, and rich caramel
wrapped in smooth milk chocolate. Every bite
explodes with an outrageous combination of tastes and
textures that only Reese can deliver. On top of combining
the great tastes of Reese in one bar, the product
delivers on consumer demand for singles, which are the
number-one purchased chocolate pack-type across all
confectionery trips.1

TWIZZLERS TONGUE TWISTERS GUMMIES

Consumers can’t get enough of gummies: it’s the top-
growing segment in candy, outpacing the chewy, hard
and licorice segments2. On trend and in demand, new
Twizzlers Tongue Twisters Gummies will satisfy the
tastes and textures candy fans crave. On the sweet side,
three delicious flavours include Pineapple, Passion Fruit
and Mango—all with the Twizzlers Strawberry flavour
consumers love. Tangy options include Grape, Lemonade
and Peach—all with the Twizzlers Cherry flavour
consumers love.

SPECIAL PROMOTIONAL FEATURE IN CANADIAN GROCER–FEBRUARY 2020

showcase
REESE’s PIECES PEANUT - KING SIZE
Reese’s Pieces Peanut now comes in a 75-gram king size
format, bringing big taste to peanut-butter lovers. The
candy delivers the ultimate crunch with the addition of a
delicious peanut centre, wrapped in smooth peanut butter,
and covered in a crunchy candy shell. Since king size is
the top-growing pack type (+15% in grocery/drugstore/
mass over the last year3), grocers will want to stock up on
Reese’s Pieces Peanut King Size.

JOLLY RANCHER MISFITS GUMMIES

Jolly Rancher Misfits Gummies are a fun new mash-up with
bold, fruity flavours and shapes. Perfect for sharing, Misfits
Gummies are available in two delicious combinations:
Mer-Bears (mermaid bears), which come in three flavours:
orange + pineapple, lemon + dark raspberry and strawberry
+ blue punch; and Uni-Sharks (unicorn sharks), available in
lime + mango, kiwi + lychee and pineapple + pomegranate.
Misfits Gummies join Jolly Rancher’s ever-expanding
product line, which also includes Hard Candy and Fruity
Sours in a variety of formats.

OH HENRY! PEANUT BUTTER BITES

Oh Henry! Peanut Butter has crunchy peanuts, Reese
peanut butter, creamy caramel, all covered in a chocolatey
coating. The new 180 gram pouch is filled with bite-size
Oh Henry!—great for sharing with family and friends.
Re-sealable pouches are the number-one segment within
in-aisle chocolate4, so grocers will drive sales by adding
this fan favourite to the mix. Oh Henry! Peanut Butter is
also available in a singles format for consumers who want
this delicious taste all to themselves.

Sources:
1 Kantar Trip Missions Research, Fall 2018
2 Nielsen MarketTrack, National 5 Channel, Last 52 weeks P/E March 2, 2019
3 Nielsen MarketTrack, National GDM + C&G, P/E July 20, 2019
4 Nielsen National 5 Channel, Last 52 weeks, P/E April 27, 2019

SPECIAL PROMOTIONAL FEATURE IN CANADIAN GROCER–FEBRUARY 2020

 Introducing
NEW

Don’t miss out!

ALSO AVAILABLE

REESE Overall
Performance

The most Chocolate Brand

No.1 1

OUTRAGEOUS +0.4 pts

REESE Innovation yet! REESE Stuffed
Continue to build the with Pieces
King Performance
‘Stuffed with Pieces’ platform.
Assorted Singles Prepack No. 1 King Bar 2
294 Count
72 HERSHEY’S GOLD bars +14% vs YA
96 REESE PEANUT BUTTER CUPS bars the BIGGEST CSM
54 REESE OUTRAGEOUS! bars innovation in 5 years
72 OH HENRY! bars

REESE OUTRAGEOUS! Available

Singles Prepack
144 Count
For
ORDER
NOW
Sources: 1 Nielsen all channels L52wks PE Mar 2, 2019; 2 Nielsen all channels L12wks PE Mar 2, 2019
 Avril Supermarché
Santé's newest STORE DESIGN
store in Laval, Que.,

As the way includes an in-store

vertical farm where
produce can be

consumers grown onsite, an

element that appeals

shop for food is

to environmentally-
conscious shoppers

evolving, so,
too, is grocery
store design
By Carol Neshevich

WHETHER THEY’RE migrating to online gro-

cery delivery and bopis (“buy online,
pickup in store”), spending their food
dollars at new competitors like UberEats
or being more focused on the quality of
their food and where it comes from, con-
sumers’ shopping habits are changing,
and the grocery store is having to adapt
in many ways, including store design.
“We’ve had so many shifts. We’ve had
technological shifts, we’ve had genera-
tional shifts, and we have a lot of out-
side players coming into the market that
never were in the market before,” says
Kevin Kelley, principal and co-founder
of Shook Kelley, a retail strategy and
design firm in Los Angeles. “So we’re
going into [grocery stores] and saying
look, the time to be conservative, the
time to try to just get short game plays
is just no longer. You really have to start

CHANGING
throwing the long ball; you have to take
some big chances.”
But when it comes to store design, what
are the right “chances” to take? Canadian
Grocer spoke with four innovative North

SPACES
American design firms to get their views
on some of the biggest (and smartest)
trends in grocery store design right now.

Making the store a hangout

“The biggest thing we’re trying to do is
get all the social, hangout, let’s have fun,
non-chore-related things up to the front know the longer the customer stays in years ago, the dine-in section had about
of the store,” explains Kelley. “So we’re that store, the more they’re going to 20 seats. “Now, the latest store has 120
definitely trying to put bars, restaurants, buy,” says Jean-Pierre Lacroix, president seats … and in the next store, the din-
patios, any kind of lifestyle element to of Shikatani Lacroix Design in Toronto. ing area will be even bigger. You can see
the front of the store—that is a really big While the “grocerant” concept has where they’re putting their money and
aspect for us—and we’re trying to create been around for years, it’s become a efforts, it’s a huge area of growth.”
separate entrances to those features.” much more important part of grocery But dine-in areas, restaurants and pubs
Indeed, as online shopping and BOPIS today. Stéphane Bernier, design studio aren’t the only elements aimed at keep-
become more popular, it’s increasingly director at Montreal’s Aedifica—which ing customers in the store longer; grocers
important to create features that entice has won multiple awards for its design are also putting greater emphasis on
shoppers to the store—and that encour- work on Quebec’s Avril Supermarché community-building features such as
AEDIFICA

age them to linger. “The idea here is Santé chain—points out that when cooking classrooms and meeting rooms.
to keep them longer, because retailers designing their first Avril store some 15 Big players like Loblaw have had these

February 2020 Canadian Grocer 31

STORE DESIGN

for years, but they’re now becoming per- community. “When they asked us what’s Kelley pays credit to the folks at Har-
vasive. While these features may have a ‘seemingly impossible’ they could do, vest Market who spent the next six
been viewed by retailers as a nice-to-have we came back to them and said, we’d months trying to figure out how to
option in the past, Vince Guzzi, manag- like you to churn butter in the store. And churn butter in the store, which was
ing partner at Toronto-based Watt Inter- they said, yeah, that is really impossi- challenging “because it almost becomes
national, says “I do see that type of func- ble,” Kelley says, laughing. “But we said a separate manufacturing facility, with
tionality within the role a grocery store if we could do it, it would say so much the health department and everything.”
plays in the local community as now to our customer about everything we do But in the end, it worked; Harvest Mar-
moving to the forefront; being some- in the store. That’s generally what we ket now has a butter churning station
thing that really inextricably becomes an find; if we can do one really exaggerated, in the store. The feature has been so
important thing that satisfies the needs over-the-top sticky memorable idea, it popular with customers they plan to
of the consumer.” Longo’s, a client of does so much.” incorporate it in future locations.
Watt, features its Loft Cooking School at A unique offering or focal point
a number of locations, but the Loft is not doesn’t have to be as complicated as
just a place for cooking classes—it’s also in-store butter churning; there are count-
a spot for meetings, events and birthday less examples of innovative attractions
parties. “It’s the old adage: ‘If you build grocers have installed to appeal to shop-
it, they will come,’” says Guzzi. pers. When Watt International worked
with Market 32 in New York state (a Price
The “seemingly impossibles” Chopper brand), they decided to install a
“We have this thing that we do with Growler Bar where shoppers could bottle
every chain, if we can, where we believe their own growler (jug) of beer. “It’s an
innovation happens right at the edges experience,” says Michael Nussbacher,
of the constraints—whether it be the vice-president of business development
operator’s constraints, or an employee’s at Watt. “It’s not just, ‘I’m going there
constraints, or a consumer’s limitations to get my grapes and bananas;’ I’m also
even ... and we call them ‘seemingly going to stop by and talk about which
impossibles,’” says Kelley. beer is the one I want to fill a jug with.”
He points to Harvest Market, a store Watt’s Guzzi adds that this feature was
owned by Niemann Foods in Illinois chosen to appeal to the store’s shopper
as an example. For Harvest Market, it demographic: “This was also us recog-
was decided the overall philosophy of nizing there were more males as the pri-
the store would focus on its connec- mary grocery shopper here [than usual]
tion to farms, the land and the local in this particular market.”
There’s also the emerging trend of
installing vertical farms or rooftop gar-
dens in stores, where retailers can grow
their own produce onsite. Avril Super-
marché installed one of these inside its
most recent store in Laval, Que. “It speaks
to passion and authenticity and quality,
but it’s also a way to start finding alternate
ways of bridging the production of fresh
goods and offering it onsite,” says Aedefi-
ca’s Bernier. It’s good for the environment,
he says, as it reduces transport, energy use
and waste; but in addition to those bene-
fits, it also helps attract environmentally
conscious consumers to the store for what
the vertical farm represents.

Food hall and market style

Every designer interviewed for this story
Top: The Growler Bar
mentioned Eataly and the “food hall”
at Market 32 in New
EATALY; WATT INTERNATIONAL

York state, where trend as being a major influence in store

shoppers can bottle design. Aedifica’s Bernier calls it “the
their own growler biggest trend in food right now,” not-
(jug) of beer; ing that at Eataly, specifically, “a lot of
Bottom: Eataly's people dine in there because it’s great
new Toronto location
food with a fun ambiance, but also you
exemplifies the
popular "food hall"
design trend
 Top: The Corks Beer
& Wine Bar at
Longo's in Toronto's
Liberty Village aims
to entice shoppers
to hang out and
spend more time at
the store; Bottom:
Harvest Market in
Illinois features an
in-store butter
churning station

are exposed to a highly curated, sophis-

ticated, high-quality product offering.
And, it’s kind of bringing the European
public market in a smaller scale into [a]
retail format.”
Eataly and other gourmet food halls
undoubtedly offer “experience” (in terms
of dining in, hanging out, and being
educated about products) but it’s also
an example of the market-style design
format that’s moving away from the
traditional, wide linear aisles that have
long been a staple in grocery design. And
while Eataly Toronto may be a whopping
50,000 sq. ft., this design style could work
in any size store, including small formats.
Lacroix believes marché-style stores—
with stations and stands rather than
aisles—are the way of the future. Guzzi
agrees: “We’re moving away from prag-
matic, traditional linear design, for lack
of a better word, and moving more
SHOOK KELLEY; LONGO'S

towards things that are more fluid.” The

prototypical linear, aisles-centric design
“was built for the convenience of grocery,
it was never built for the convenience of

February 2020 Canadian Grocer 33

STORE DESIGN Alberta's Freson
Bros. regularly pulls
out unique and
interesting offerings
to showcase in a
curated station called store visits plays into another design
Frank's Finds, named trend, the “pop up,” which is making
for Freson founder
its way into grocery spaces. Nussbacher
Frank Lovsin
describes the concept as having different
temporary merchandised sections that
function like a store within a store.
“The desire to rotate things in and out
in a greater frequency is going to con-
tinue to increase. It’s the whole Costco
thing, right? Experience it today and get
it today, because it might not be here
next week,” adds Guzzi, noting this fits
perfectly with a consumer base that’s
shopping more frequently. It adds to
the treasure hunt aspect, he says, "that
desire to go and go now; that drive to get
people into the store.”
Kelley points to a similar “treasure
hunt” idea at Harvest Market where
curated “modules” are set up (much like
end caps) called Farm Finds, which also
serve to connect shoppers to the overall
mission of the brand. Here “you can find
out about a small family farmer that has
a certain type of eggs, or certain type of
saddle soap, or certain type of bread,” he
says. “Customers get really excited about
humans. Humans don’t like aisles, we They’re either young and don’t have kids these.” Shook Kelley implemented some-
don’t like corridors, we don’t like alleys,” or they’re older and empty nesters, and thing similar at Alberta-based Freson
adds Kelley. “We [as designers] are really they’re not using a full cart—so all of Bros. called Frank’s Finds (named for
just trying to break centre store down as this has been radically changing.” Kelley Freson founder Frank Lovsin). “Those
much as we can, and get rid of the aisles says in the case of smaller-format urban are just things that Frank Lovsin loves,
as much as we can.” stores, he typically suggests taking out and he’s like, ‘I think you’ll like this too.’
Generally, the traditional “centre the traditional centre store and turning And he’s got a story for every kind of
store” is going through a period of flux. the locations into fresh concepts instead. wacky product out there,” says Kelley.
People are increasingly opting to pur- “I’d say every time we do a smaller store, Generally, when it comes to design or
chase commodity-type products—think the retailer fights us, doesn’t want to do re-design, recent research (2019) from
kitty litter, dog food, paper towels— this. And yet when they’re done, the McKinsey & Company suggests that
online rather than schlepping it home sales are incredible.” retailers take an “agile” approach; one
from the store, says Kelley, but they still Going hand in hand with the small- that doesn’t wait the traditional three
prefer to buy fresh items such as produce er-sized store is the consumer’s tendency to five years for a complete store over-
and meat at the store. “Centre store is to shop more frequently with smaller haul, but instead involves updating the
most affected by this trend,” he notes. baskets per shop—buying just enough store little bits at a time. This could be a
Lacroix concurs: “You’re going to see food to get them through two or three smarter strategy for retailers to employ,
the centre of the store shrink when it days, rather than for a week or more. considering how rapidly consumer shop-
comes to commodities, staples, dried According to Bernier, this stems from ping habits are evolving.
goods, and this is going to leave room several factors. “A lot of the younger “Such an approach focuses on continu-
in the centre of the store for more fresh, generations are foregoing or delaying car ally making one-off, high-impact changes
unique offerings.” ownership,” he says. “So they can’t go rather than department-wide or storewide
and buy 10 bags of groceries like before.” remodels,” explains the report titled The
Smaller stores, more frequent trips Many people are also trying to be less ever-changing store: Taking an agile, cus-
“Probably my No. 1 request is, can you wasteful, he adds, and shopping for a tomer-centric approach to format redesign.
do a 10,000-sq.-ft. store for us?” says just a few days at a time can result in “Indeed, retailers must adopt a mindset
CHRISTOPHE BENARD PHOTOGRAPHY

Kelley. Indeed, store sizes are shrink- less food waste. Also, the move away of ‘never being done’: format redesign
ing and there are a number of reasons from plastic bags often means people are should be an ongoing process of imple-
why. “In retail in general, the growth is coming in and only buying what they menting solutions quickly and refining
in urban areas,” he explains. “But the can fit into their backpacks. them constantly, with retailers keeping
big mainframe grocery stores don’t fit their fingers on the consumer pulse and
in these areas. And generally in these Pop-ups and flexibility adapting store formats to respond to
urban areas, people are living differently. Guzzi says this pattern of more frequent evolving consumer needs.” CG

34 February 2020 Canadian Grocer

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OUT-OF-STOCKS

The
persistent

problem of

As e-commerce amplifies
inventory issues, grocers need
to tackle the challenge once
and for all

36 February 2020 Canadian Grocer

t
out-of-stocks

By Rebecca Harris

he days of the “ rain check ” as empty shelves (encountered by 32% of

are long gone: today’s retailers shoppers), but also include issues like fail-
have to give shoppers what they ure to find staff to help (16%) and found
want, when they want it, wher- staff, but not merchandise (17%).
ever they are. Yet, many retailers When customers can’t find what they’re
still struggle with keeping products on the looking for, the negative effects go well
shelf at all times. While grocers have long beyond lost sales for retailers. “Lost sales
sought to solve the stubborn challenge of and frustrated customers—those are the
out-of-stocks, the problem persists—and big ones,” says Greg Buzek, founder and
it’s a costly one. president of IHL Group. “The reason peo-
Worldwide, out-of-stocks are costing ple go to stores is because they need it now
retailers across sectors US$984 billion in and they expect you to have it. So, when
lost sales annually, including US$144.9 you have an out-of-stock, you’re training
billion in North America alone, according them to not shop at your store. And that
to IHL Group, a global research and advi- is the biggest risk. It’s not just missing that
sory firm. Its report, “Out of Stocks, Out sale, it’s the fact that you’re no longer reli-
of Luck,” notes that product availability able as a supplier for them, and they will
is one of the most important customer go elsewhere going forward.”
experience components. Yet an IHL survey Data from a 2015 report, “Solving the
found North American consumers experi- Out-of-Stock Problem,” by the Grocery
ence out-of-stocks in one out of five trips Manufacturers Association and the Food
to grocery, pharmacy and mass retailers. Marketing Institute (now The Food Indus-
Consumers not only define out-of-stock try Association) Trade Partner Alliance,

February 2020 Canadian Grocer 37

OUT-OF-STOCKS

confirms the risk of shopper defection. The have been made in forecasting,” says Buzek.
study found a “disturbing three-strikes- Ironically, the e-comm technology many
and-you’re-out pattern” with out-of-stocks. retailers are using is one of the root causes
The first time a product is not available, of products being out of stock in the first
the shopper will substitute the desired place. In today’s Amazon-driven era of
item 70% of the time. The second time it convenience, many grocers are stepping
happens, the shopper may substitute the up their omnichannel efforts, but they
item, not make a purchase or go to another typically don’t have Amazon-level e-com-
store. Strike three: the shopper will go to merce platforms.
another store 70% of the time. Prakash Tilwani, executive vice-president
“It’s easier to switch to another brand or of supply chain and media solutions at IRI
another store online,” says Daniel Triot, Worldwide, knows this well. He used to
president of DHT Consulting and former work for Amazon as director and head of
senior director of the Trading Partner Alli- inventory planning analytics. At Amazon,
ance. “In a brick-and-mortar store, shop- “they literally know at every minute of the
pers can make the switch, but it requires day how much inventory they have and
more work to find an equivalent product. how far down they can go with the prices
They may come back a day later, but after without running out of stock,” says Tilwani.
two or three strikes, the consumer will Compare that to brick-and-mortar retail-
switch brands or stores.” ers now dipping their toes into omnichan-
Why are grocery retailers continuing to nel. “Many retailers have very old systems
struggle with out-of-stocks? Simply put, it’s and the way they built [omnichannel] is to
a hard problem for them to fix, says Heidi have two systems somewhat combined on
Sax, content marketing manager at CB4, the back end, but not really integrated on
a retail software solutions company. “At the front,” he says. “What ends up happen-
the starting point, you have to pinpoint ing is the e-commerce system doesn’t have
demand for every SKU at each location in a clear view into the inventory and they
a grocer’s chain to make sure you’re order- just don’t understand how much supply
ing the right amount of stock,” she says. they have to create demand.”
“Traditional reporting and even modern That means online shoppers don’t have
business intelligence solutions rely on stale an accurate view of the inventory, either.
data and limited categorizing to anticipate “Online inventory can be a combination of
and meet shopper demand.” what products are in the distribution cen-
tre, the warehouse and in the store,” notes
The omnichannel conundrum Sameer Anand, a partner at A.T. Kearney’s
The out-of-stock problem is being ampli- operations and performance transforma-
fied as retailers expand their omnichannel tion practice. That means when shoppers
strategies. IHL Group’s report states that in add products to their cart for a click-and-
2015, out-of-stock levels were experiencing collect order, for example, they don’t know
a decline from 2007 levels, but actually if the product will actually be on shelf
grew significantly from 2015 to 2018. “In when an employee fills the order.
North America, we were making great prog- For home delivery, the challenge is com-
ress on reducing out-of-stocks with things pounded because the local store typically
like better forecasting,” says Buzek. “And doubles as the fulfillment centre. “In the
then the whole e-commerce explosion with grocery world, where the delivery window
store fulfillment came into being.” That, he is short, typically the source of inventory
says, exposed retailers to previously hidden is only one location,” says Tilwani. “So
out-of-stocks. because of the first challenge—not having
If a shopper made a substitution because visibility into your inventory—if you run
of an out-of-stock in a brick-and-mortar out of stock, there is just no other option
THIS & PREVIOUS PAGE: SHUTTERSTOCK/ALEXMAKER

store, the out-of-stock was unknown to the [to get the customer’s desired product].”
retailer. Now, with the range of e-commerce At the same time, omnichannel solu-
fulfillment options—buy online pick up in tions are putting more pressure on stores,
store (BOPIS), ship from store, and click and which can impact manual inventory mon-
collect—out-of-stocks are exposed, as cus- itoring. “As stores become microfulfillment
tomers are requesting specific products that centres for things like click and collect,
may have to be substituted by the store. it creates a lot more operational demand
“The end result is you’ve got this explosion on stores and store managers,” says CB4’s
of out-of-stocks in the e-commerce area that Sax. “That makes it even harder for them
has more than made up for the gains that to walk the floors and detect out-of-stocks

38 February 2020 Canadian Grocer

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OUT-OF-STOCKS

and manage their orders because they’re the shelf. Typically, this type of system
doing a lot more than ever before.” takes pictures at regular intervals, sends
With e-commerce growing at unprece- them to the cloud, analyzes the images to
dented rates (20% growth in Canada in see if products are on the shelf and in the
2019, according to eMarketer), retailers right spot, and reports back to the retailer.
have to get serious about solving out-of- “Computer vision can help retailers a great
stocks. “The problem is more critical … deal in understanding mismatches on the
because you cannot [survive] if you’re not shelf, where you have items that are com-
fulfilling the orders properly,” says Buzek. pletely out of stock but also items that are
in the wrong place, or the vendor filled up
How to prevent out-of-stocks the rows with the wrong thing, so it looks
Out-of-stocks will likely never be com- full but it’s not actually full,” says Buzek.
pletely eliminated—no system is perfect. • Artificial Intelligence: There is a wide
However, the problem can be greatly range of AI applications for grocers, from
reduced by following best practices and demand forecasting and pricing, to loss
investing in the right tools and technolo- prevention and promotions. Longo Bros.
gies. Here’s a look at just a few: Fruit Markets is one retailer that’s investing
• Culture: Retailers that want to get seri- in demand-planning technologies with AI
ous about reducing out-of-stocks have to capabilities. Rick Furtado, senior director
make the effort part of the organization’s of supply chain at Longo’s, says one of the
culture. IHL Group’s report notes there main factors impacting out-of-stocks is mul-
are many technical solutions that assist in tiple forecasting—from the store team, dis-
fixing the out-of-stock issue, but the first tribution centre, supplier and manufacturer.
step for retailers is admitting they have a “The slight variation in forecast at each stage
problem. “Simply accepting out-of-stocks magnifies and generates a ‘bullwhip’ effect,
as a normal part of business is business sui- which leads to out-of-stocks,” he says.
cide in an environment where consumers The new tools have the capability to
used to have to shop and now must want leverage not only historical sales data, but
to shop,” the report states. also data points like weather forecasts and
• Share data: DHT Consulting’s Triot says social trending data. “As a result, we hope
part of the cultural shift for trading partners to achieve better quality forecast,” says Fur-
is to be more open to sharing data, includ- tado. “It’s important for us to understand
ing allowing access to online, in-store and our guests’ needs, which will allow us to
promotional sales to better understand anticipate changes in demand, instead of
where the product should be allocated and traditional lagging indicators, such as his-
what is truly “on-hand.” “Retailers and torical sales to repeat future activity.”
manufacturers tend to, understandably, be Whatever tools and technologies a
cautious in terms of sharing data, but the retailer chooses, the most important aspect
most successful companies are those that of mitigating out-of-stocks is having an
believe the data belongs to both partners,” accurate view of the inventory. “The con-
he says. “Sharing data is more of a benefit to nected devices, the smart shelves, the RFID
both parties than being ‘restrictive,’ allow- tags, the robots ... It’s all about having the
ing retailers and manufacturers to collabo- right visibility into your stores and your
rate more effectively on on-shelf availability distribution centres, and having it on a
to better anticipate consumer needs.” more real-time basis,” says Anand. “Hav-
• Collaborate with suppliers: Poor ing that visibility is important because you
communication with suppliers can lead to need to be able to take action.”
missed or delayed orders that, in turn, can Effectively reducing out-of-stocks truly
lead to out-of-stocks. “Communicate with is a race for retailers. Buzek likens to it the
them, provide them the visibility, have average person racing Olympic athlete
the dialogue because this is a win-win,” Usain Bolt in the 100-metre dash. Not
says A.T. Kearney’s Anand. “It’s in brands’ only is his first step faster, but every subse-
best interests to make sure the product is quent step is faster. “There are retailers that
on the shelf. So, have a truly collaborative have not only made investments [from the
dialogue with them and figure out how to start], but they’re still investing more and
SHUTTERSTOCK/ALEXMAKER

work together to grow the pie.” racing ahead on the solutions,” says Buzek.
• Computer vision: New in-store tech- “Where it gets really critical is they’re rac-
nologies use a combination of computer ing to this accurate inventory piece. And
vision and shelf and ceiling cameras, or whoever gets there first will start destroy-
autonomous robots, to keep an eye on ing the competition.” CG

40 February 2020 Canadian Grocer

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 AISLES Products, store ops, customers, trends

BUTTERS & SPREADS

Smooth operator

B
Butters and spreads utter is so hot these days, you’d think it might melt from being in the
spotlight so much. Whether traditional dairy butters, plant-based alter-
are enjoying a natives or nut/seed spreads, ingenious new offerings in the category have

renaissance, thanks fuelled its current popularity, along with diet preferences and a collective
change of heart about the fat content of food. In fact, it’s such a popular
to diet trends and trend that Whole Foods Market included “Everything Butters and Spreads” as one
of its Top 10 Food Trends for 2020.
product ingenuity Traditional dairy butters are doing very well, in contrast to the slide in sales for
fluid milk. Figures for butter consumption among Canadians have risen steadily
GETTY IMAGES/BIGACIS

By Michele Sponagle since 2013. The most recent figures from the Canadian Dairy Information Cen-
tre show an average of 3.33 kilograms per capita, up from 2.8 kilograms a decade
ago. In Ontario alone, Nielsen data shows that over a 52-week period (ending in
November 2019), butter sales were up by 9%.

February 2020 Canadian Grocer 43

AISLES

The numbers have been robust over the vegan butters lead in the U.S. market, organic peanut butter, almond butter
last few years, agrees Rob London, direc- and in August 2019, they were launched and tahini (made with sesame seeds).
tor of marketing, Gay Lea Foods Co-op- in 1,000 grocery stores in Canada. “It has Newer entries include butters made from
erative; and these numbers are strong for been going well,” says Miyoko Schin- pumpkin seeds, cashews, Brazil nuts,
all types of dairy butter. “The salted and ner, a chef and the company’s founder. sunflower seeds (grown locally), hazel-
unsalted types will always be the driver of “When we began in the U.S. [in 2016], nuts and more organic varieties.
the category,” notes London. “But we’ve it was a slow start, then all of a sudden “Consumers across a wide range of
seen some really good successes with spe- it caught on. We’ve seen triple-digit ages continue to buy our products,”
cialty butters. Millennials are looking for growth every year.” explains Lawrence. “We are now into
high-quality, premiumized products and Schinner says she saw the need for our third generation of customers.”
they’re willing to pay more.” plant-based butter that performed like a Part of Nuts to You’s success also comes
Think European-style butters like traditional dairy-based one. Her cultured from its ability to merchandise well. The
Churn84, with 84% butter fat, from Stir- butter starts with cashew milk, which company offers monthly discounts to
ling Creamery (purchased by Gay Lea in is inoculated with dairy cultures. That grocers on feature products. “We encour-
2016) or Stirling’s flavoured butter rolls brings down the pH and it turns but- age retail partners to pass along savings
(garlic parsley and Bombay curry) and termilk-like. It is then combined with to customers,” she explains. They also do
even a goat milk butter from Hewitt’s coconut oil and churned into butter, on-shelf promotions, flyers, in-store floor
(acquired by Gay Lea in 2014). “I believe which gives it a slight tang reminiscent displays and endcaps.
the premiumization of butter is where of European butters. Generally, merchandising butters and
the future growth will come from,” he Diet trends are playing a big role in spreads in grocery has its challenges. “It
adds. “Consumers are looking for an butter’s renewed popularity. “Butter is can be a bit tricky as [many of] these
experience with the product. I think it considered keto- and paleo-friendly, due products need to be refrigerated, so it
comes from the interest in food culture to its high fat and low carbohydrate con- is tough to make large displays,” says
and a desire for good flavour.” tent,” says Rob Luscombe, grocery buyer Christy McMullen, co-owner of Toronto’s
Not too long ago, the thought of high- for Ontario, Whole Foods Market. Summerhill Market. “That makes using
fat foods would have struck terror in con- Keto and paleo followers are also often social media to promote the spreads …
sumers’ hearts. “The nutritional pendu- keen to add more nut and seed butters to and provide ideas on how to serve them
lum has swung and fat is back,”explains their diets, and there has been a slew of so important.”
Jo-Ann McArthur, president of Nourish new and innovative offerings to oblige. The effort is worthwhile. “This is a
Food Marketing. “It’s no longer seen as Smucker Foods introduced Adams Dark growing category for us,” she notes. “It
the enemy. In fact, it is seen as part of Roast peanut butter in Canada a while has always been strong, but in the last
a healthy diet, especially with younger back and Kraft Extra Roasted Peanut But- couple of years our vendors have come
generations.” ter has just hit the market. out with many new flavours and prod-
Perhaps the most notable twist is that Whole Foods’ Luscombe notes “con- ucts. We have almost doubled our shelf
margarine—once butter’s chief rival, only sumers are looking for variety in their space for them.”
to decline in popularity once people spreads,” and adds that new varieties of At McEwan Yonge & Bloor, a gourmet
returned to butter for its more “natural” nut and seed butters, beyond peanut and food retailer in Toronto, store manager
almond, are being used in tradi- Robin Sukhram finds cross-merchandising

“The nutritional tional ways—consumers are using

them “as a spread, in baking, in
works well. “For example, we’ll promote
nut butters with artisanal baked breads to
pendulum has swung shakes, or they’re adding them to
meals as a source of protein and
build a story for clients. They tend to pick
up both when they see them displayed
and fat is back. fat.” He predicts different types of
seeds and nuts, such as macada-
together. We also support plenty of sam-
pling, accompanied by nice, big displays
It’s no longer seen mia, pumpkin and legumes, will so clients can buy right on the spot.”

as the enemy” show up in greater numbers in

spreads and butters.
Meanwhile, Gay Lea Foods is testing
whether or not customers will buy its
Although these plant-based flavoured butter rolls in the deli section
attributes—is still very much on the scene spreads are making headlines now, they of supermarkets. “It’s something we’re
after rebranding. McArthur cites Country aren’t a completely new phenomenon. looking at,” explains London. “It’s a dif-
Crock, a popular U.S. margarine company Back in 1989 when Paris, Ont.-based ferent buying occasion, a different mix
that’s added a new “Plant Butter” line, Nuts to You began producing nut and of products that consumers are looking
as an example. The company has repo- seed butters, aging hippies and vege- for in that section.” The company has
sitioned the brand, removed the word tarians were the ones buying its prod- also updated its packaging and given it a
“margarine” from all its packaging, upped ucts. “We are still continuing to grow,” contemporary look. “It’s time to update
the price and now promotes its products’ says Anne Lawrence, sales and marketing the butter category.”
dairy-free, gluten-free health benefits. director. “Our products do well regardless Given the innovation in butters and
Entering the plant-based butter sector of current diet trends. We don’t respond spreads of all descriptions, they’re clearly
in Canada was an appealing move for to them. We just focus on what we do.” leading the way as one of the hottest
California-based Miyoko’s Creamery. Its The company’s top sellers include food trends to start off a fresh decade.

44 February 2020 Canadian Grocer

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 AISLES

New on shelf The latest products hitting shelves

1 BREW DR. KOMBUCHA UPLIFT

The ready-to-drink tea category is getting
2
a jolt with the launch of Brew Dr. Kombucha
Uplift. The new brew has 130 mg of natural
caffeine per 414-mL bottle. (To compare, the
company’s traditional kombucha contains less
than 15 mg of caffeine per bottle.) Uplift is
the first high-caffeine kombucha to market in
Canada, according to Brew Dr., which describes
it as “a probiotic pick-me-up with a satisfying
flavour reminiscent of traditional iced tea.”
1
2 AUGA SOUPS
auga, an organic food brand from Lithuania,
is launching its ready-to-eat soups in Canada
that are made with vegetables grown at the
company’s farms. Available in Mushroom, Beet
Borscht, Minestrone, and Carrot, each soup is
packed in a lightweight, BPA-free pouch. These
vegan soups are shelf stable, gluten free and
preservative free.

3 MAISON RIVIERA COCONUT MILK KEFIR

Maison Riviera, the company perhaps best
known for its Petit Pot Collection of yogurts
packaged in little glass jars, is introducing
coconut milk kefir to its lineup. The Quebec-
based dairy company says its Coconut Milk

3
Kefir has a smooth and creamy texture similar
to drinkable yogurt and is ideal in cereal and
smoothies. It’s available in plain, vanilla and
raspberry flavours and sold in 946-mL bottles.

4 SWEET & SALTY CLIF BARS

5
Made with a dash of sea salt to add a
savoury twist, Clif’s new Sweet & Salty bars
are now available in Canada in two flavours:
Chocolate Chunk with Sea Salt and Dark
Chocolate Almond with Sea Salt. These bars
are made with organic and non-GMO
ingredients, including Canadian rolled oats,
and help provide consumers with a good
source of fibre and protein to fuel their active
lifestyles, according to Clif.

5 CHEEZ-IT BAKED SNACK CRACKERS

Kellogg says Canadians no longer have to head
4
south to get their hands on its popular Cheez-It
crackers. After nearly 100 years in the United
States, the crackers have arrived in Canada.
Made with real cheese, the crackers are
available in two formats: Cheez-It Crackers in
Original and Hot & Spicy flavours and Cheez-It
Crunch Crackers, available in Sharp White
Cheddar and Zesty Cheddar Ranch flavours.

February 2020 Canadian Grocer 47

AISLES

reveal a show-stopping, laser-cut design

that can be viewed from any angle. The
cards lay flat, making them displayable
and the perfect keepsake.” Hallmark’s
premium products can cost as much as
$14.99 per card.
As a small-format grocery chain,
Toronto’s Rabba Fine Foods works with
local and independent card makers to
offer its customers unique options as
well as an environmentally friendly
focus. “All kinds of people come in to
purchase greeting cards, so we make sure
to have a good variety of contemporary
and traditional options to match the
personality, kindness and love of the
gift-giver,” explains Rima Rabba, the
company’s marketing communications
manager. “We see greeting cards as a
service item at Rabba Fine Foods … As a
neighbourhood supermarket, it’s import-
GREETING CARDS
ant to offer convenient items for custom-

It’s in the cards

ers who are on the go. If our customers
are looking for a quick gift, they know
they can pick up gift cards, fresh flowers
With increasing millennial appeal and high-margin and a greeting card.”
Jean-Paul Michael, co-founder and
potential, greeting cards are still big business. publisher of Toronto-based Northern

Here’s how to make the most of the category Cards, notes that greeting cards can also
be a high-margin product for grocers,
By Carolyn Cooper even with just one display. The com-
pany partners with many independent
as mark twain might have said, the are moving into new life stages like mar- grocers and smaller chains, which often
rumours of greeting cards’ death have riage and parenthood, which have always have much less floor space available for
been greatly exaggerated. According been drivers of card usage.” greeting cards. And by selling direct to
to the U.S. Greeting Card Association “Gen Y loves the tradition and senti- stores Michael says they can offer “an
(GCA), more than 6.5 billion greeting ment of hand-selecting the perfect card,” unprecedentedly high margin.”
cards are purchased annually—roughly agrees Paul Werynski, director of sales From a merchandising perspective,
80% of those by women—representing and marketing at Carlton Cards. “How- visibility in different departments can
between US$7 and $8 billion in retail ever, they also demand product that lead to higher card sales. “A prominently
sales. While social media has resulted in speaks using their communication styles placed, product-rich greeting card dis-
people recognizing occasions like birth- and their tone of voice.” Carlton has play can trigger an impulse purchase
days via Facebook and other social media recently launched its Paper Rebel brand, or remind the shopper of an upcom-
sites more often than before, GCA says for instance, including holiday cards ing birthday, wedding or baby shower,”
“they aren’t necessarily sending fewer reading “Merry whatever you celebrate,” says Scott. “We look for opportunities
cards as a result.” and “This year, quit doing shit you hate.” to intercept her in key spaces within the
And, perhaps surprisingly, it’s younger Werynski says the line is “not your typi- store, outside of the card department.”
consumers who are driving a lot of cal greeting card brand. These cards are Standalone displays in areas that allow
today’s card sales. While all demograph- raw and unapologetic. They range in for browsing, as well as cross-merchan-
ics purchase greeting cards, Dana Scott, tone from snarky and edgy to playful, dising in areas such as the floral depart-
director of national account sales for witty and sweet.” ment or at checkouts during seasonal
Hallmark Canada, notes that “millenni- What’s more, younger buyers are typ- celebrations, can also boost card sales
als represent nearly 20% of the dollars ically willing to pay higher prices for significantly. “The greeting card category
spent on greeting cards, and are growing creative, craft-inspired greeting cards can play a key role in driving profitable
GETTY IMAGES/TRONGNGUYEN

their spending faster than any other gen- that often take the place of a gift. For basket-building sales,” says Werynski.
erational segment. Millennials tell us that example, Hallmark’s new Signature Paper “Grocers who maintain visible card
they love paper and tactile experiences Wonder line showcases “paper craft, departments along with strategic out-
because they are rarer and more special.” diversity in artists, trend-forward designs posts and innovative merchandising
Scott says the market for cards will con- and alignment with the wellness trend,” solutions are seeing that translate into
tinue to grow, “especially as millennials says Scott. “When opened, these cards successful sales.”

48 February 2020 Canadian Grocer

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 Jerky
AISLES

Four things
1 A HANKERING
FOR JERKY
Some credit
Native Americans
for creating jerky
centuries ago,
while others
say we have an
to know
ancient Inca tribe
(the Quechua)
to thank; either
way, as a snack,
this dried meat
has proven its
staying power.
4 GOING MEATLESS
The plant-based wave has
Canadian certainly not forgotten the

retailers rang up
jerky category. Those seeking
something beyond beef can
feast on meatless options that

$61,417,319 * run the spectrum from soy-

based to banana and coconut
to eggplant and tomato jerky
(Bella Sun Luci created some
worth of jerky sales buzz when it debuted its Tomato
in 2019, up 4.5% Jerky at PMA’s Fresh Summit
last fall). There’s even an Organic
over 2018 3 AND WHAT
Watermelon Jerky, introduced by
Trader Joe’s last spring. “People
* NIELSEN ABOUT BILTONG? are hungry for variety,” says Greg
Biltong is having a bit Sagan, vice-president of sales and
of a moment. While not marketing at Pennsylvania-based
exactly jerky (it’s prepared Giorgio Foods, which has launched
2 DELIVERING A PROTEIN PUNCH differently), this marinated, Savory Wild Portabella Jerky. “We
Jerky has long appealed to its fans for air-dried meat snack is formulate our products to reflect
its convenience (it’s portable!), tastiness, on trend thanks to its consumers’ growing interests.”
chewiness and its low-in-fat nature (jerky ability to fit nicely into How are these alternative jerkys
traditionally being made from lean cuts popular diet regimes (keto, performing? it kind of depends
paleo) and that it offers on who you ask. Bethany Roberts,
of meat, mainly beef). While all of those
something a little different. store manager at Colemans in St.
virtues still hold, today’s consumer is also While biltong originally John’s, N.L. says while there are
wooed by jerky’s high protein content. hails from South Africa, some interesting options, she’s
Joel Gregoire, associate director, food North American companies not seeing customers seek them

10%
and drink at market research firm Mintel, are jumping on board with out. Meanwhile, at Toronto’s Big
notes that while 10% more men than companies like Chef’s Cut,
Carrot, marketing coordinator
women reach for jerky, there’s an oppor- Stryve and Jack Link’s
Kate McMurray says it’s been the
launching their versions of
PIECES OF JERKY: SHUTTERSTOCK/HEKLA

tunity to appeal to the latter group as opposite experience. A big draw

they seek to boost their energy levels. the snacks.
for the Big Carrot’s vegetarian
“Younger women, in particular, are more
likely to view themselves as having a pro- more men and vegan customers, she says, is
clean, meatless jerky that is non-
tein deficit,” says Gregoire. “So there are
opportunities there for a meat or plant- than women GMO, such as soy-based Noble
Jerky, made here in Canada. CG
based snack that speaks to their need for
a natural protein source all day long.” reach for jerky — David Godkin and Shellee Fitzgerald

50 February 2020 Canadian Grocer

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 AISLES

Oh, baby! Baby care products - 52 weeks, ending Dec. 7, 2019

$ Sales $ Vol Units Units
For such tiny people, babies sure do require % Chg Vol
a lot of products. Whether it’s diapers and % Chg
wipes to keep them fresh, formula and cere- BABY CARE 1,470,480,314.00 -1.4 228,646,099.70 -1.12
als to keep their tummies full, or pacifiers
1. Diapers 387,256,418.00 -2.6 14,939,054.30 -1.12
and teethers to keep them happy, baby care
Infant formula 351,357,119.00 -3.0 53,146,987.60 3.26
products add up to a $1.47-billion business in
Canada. This Nielsen data reveals how various 2. Pre-moistened Towelettes (Baby Wipes) 185,132,394.00 3.2 28,338,598.20 0.87
baby care categories have been performing. Disposable pants 141,432,357.00 -0.2 6,288,391.40 -1.02
Baby food 93,654,048.00 -0.7 67,203,487.60 -3.19

1 While diapers are 3 The snacking trend Baby feeding products 63,757,797.00 -2.1 7,819,269.40 -2.69
showing a bit of a seems to be hitting the 3. Infant & toddler snacks 47,846,623.00 4.9 17,150,540.70 5.28
decline, with a 2.6% drop baby and toddler set,
in dollar sales, they’re too—the “infant and Cotton swabs 41,601,534.00 1.5 11,699,499.40 -8.75
still the biggest seller toddler snacks” category Infant cereal 31,380,122.00 -6.1 8,411,876.50 -5.10
in the whole baby care has grown by 4.9% in
Diaper rash products 24,767,708.00 -0.9 2,897,269.10 -2.39
category, with $387 dollar sales to nearly
million in dollar sales $48 million. Baby pacifiers & teethers 23,155,652.00 2.3 2,890,515.60 -1.61
during the latest 52
weeks ending Dec. 7, 4 Is the controversy Baby lotions 22,993,408.00 -0.6 2,688,222.60 -7.34
surrounding baby Diaper disposable systems 19,456,095.00 -5.8 1,015,736.50 -8.13
2019.
powder having an effect
2 Sales of baby wipes on sales? Baby powder Breast pumps & accessories 17,642,079.00 -3.0 354,547.30 -2.34
are cleaning up! “Pre- sales dropped by 12% Baby oils 6,810,838.00 0.7 1,509,529.00 -2.58
moistened towelettes” in dollar sales to almost
4. Baby powders 5,347,440.00 -12.0 1,367,781.10 -16.25
(also known as baby $5.35 million, with a
wipes) saw an increase 16.25% drop in unit sales Nursing pads 4,880,774.00 -13.1 451,562.00 -21.93
of 3.2% in dollar sales to to nearly $1.37 million Gripe water 1,564,516.00 1.9 271,269.80 -18.70
$185 million. units.
Dairy beverages - toddler 443,392.00 -51.0 201,961.60 -50.09
SOURCE: NIELSEN, NATIONAL, ALL CHANNELS, ALL SALES, EXCLUDING N.L.

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 CHECKING OUT
George Condon

Marks & Spencer within a few years of breaking ground,”

in the U.K. has explained the article, referring to two
partnered with failed standalone vertical farms. Still,
Infarm to install
vertical farms
vertical farms are continuing to spring
up in warehouses and shipping con-
tainers as well as restaurants and grocers
around the world.
The jury is still out on the long-term
success of vertical farms inside super-
markets. One drawback could be that
the farms, so far, are typically limited
to greens, which means things like kale,
cilantro, parsley, some lettuce—but not
much in the way of fruit, at least not yet.
The attraction of the farms, however, is
that they can provide fresh, hyper-­local
produce. And we’ve all become aware that
food picked thousands of miles away loses
nutrients and flavour in transportation.

BRINGING THE FARM

Vertical farming is still a high-mainte-
nance undertaking, arguably best suited

IN-STORE
for low-maintenance, lightweight crops.
“How would you vertically grow a pump-
kin?” for instance, asks Persis Acworth,
Grocers are experimenting with vertical farms. manager of the University of Washing-
ton’s campus farm, in The Seattle Times
Is this a fad or an effective long-term strategy? story. The article goes on to say: “Lack
of crop diversity makes the plants more
AS CONSUMERS around the world increas- Similar vertical farm installations are susceptible to pests, even in controlled
ingly look for locally sourced products, a cropping up in Canada, including at Avril indoor environments.”
number of grocery retailers are respond- Supermarché Santé. The independent As for in-store vertical farms, grocers
ing by installing indoor gardens to sup- Quebec chain installed a vertical farm who have installed them seem pleased
plement their produce departments. in its newest store in Laval, Que. using with the results. Kelli McGannon, a Kro-
Many retailers taking the plunge are CultiGo—a vertical farming platform ger representative, noted in the article
partnering with vertical farming com- developed by Quebec-based company that she expects Kroger’s vertical farms in
panies such as German startup Infarm, Inno3B—and the owners say it has been the Seattle stores to be very popular with
a company that is perfecting the tech- quite successful. The goal “was to give consumers. “They want a one-stop shop
nology. Infarm has been rolling out its customers an experience” and to over- for their fresh produce,” she says.
units at food retailers in the United King- come the “freshness challenge” of micro- That said, for me, “produce” also
dom and Europe. And just recently, Kro- greens, co-owner Rolland Tanguay told includes apples, pears, bananas, grapes,
ger, the largest U.S. supermarket chain, Canadian Grocer last year. The installation mangoes and so on. I can really only use a
became the first in that country to fea- of the vertical farm accounted for about small amount of parsley or mint. Clearly,
ture Infarm’s systems in two of its super- 10% of the new store’s total cost. I must visit a supermarket with a vertical
markets (both in Seattle) with more to Vertical farming in general is not with- farm in order to judge whether its pro-
come. The stores are under Kroger’s Qual- out challenges—it’s relatively new, of duce would be a draw for me or not. I
ity Food Center banner. course, so there are bound to be hic- imagine it will be the same for grocers,
The gardens, called farms, are con- cups. According to an article in the The as they determine whether or not an
trolled remotely through Infarm’s cloud- Seattle Times, San Francisco-based Plenty in-store vertical farm is right for them. CG
based platform, which “learns, adjusts and was expected to open a 100,000-sq.-ft.
improves itself continuously,” according standalone vertical farm, but recently
MARKS AND SPENCER

to the firm’s website. The platform, which announced the farm was too tall for
controls things such as lighting and tem- the facility it had leased. “Some oth-
perature, enables the produce to grow ers, including Vancouver’s Local Garden George Condon is Canadian Grocer’s consulting editor.
optimally no matter where it is. and Illinois-based FarmedHere, folded He’s based in Toronto. [email protected]

54 February 2020 Canadian Grocer

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