Business Operations – Food In Canada https://www.foodincanada.com Canada's Food & Beverage Processing Magazine Fri, 28 Jun 2024 12:46:51 +0000 en-US hourly 1 Protein Industries Canada CEO moves to deputy minister role in Saskatchewan govt. https://www.foodincanada.com/food-in-canada/protein-industries-ceo-moves-to-deputy-minister-role-in-saskatchewan-govt-157728/ Thu, 27 Jun 2024 18:11:18 +0000 https://www.foodincanada.com/?p=157728 …]]> Protein Industries Canada’s inaugural CEO, Bill Greuel, is leaving the organization to join the Saskatchewan government’s agriculture department as a deputy minister.

Greuel, who has been with the organization since Oct. 2018, will leave the company on July 31st.

“Bill has demonstrated strong leadership to (the company) and has been instrumental in our success to date,” said board chair Tyler Groeneveld. “Under his leadership, the organization has grown from one employee to 26 and currently manages investments worth more than half a billion dollars.”

CTO Meghan Gervais is also leaving the company to join Federated Co-op (FCL) as the VP of health, safety and compliance. Her last day will be July 31st.

Gervais has been with the company since spring 2019, serving as the CTO since May 2022, and previously as the manager of intellectual property.

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Swander Pace Capital partners with Inovata Foods https://www.foodincanada.com/food-business/swander-pace-capital-partners-with-inovata-foods-157726/ Thu, 27 Jun 2024 18:08:39 +0000 https://www.foodincanada.com/?p=157726 …]]> Private equity firm Swander Pace Capital (SPC) invests in Inovata Foods, a manufacturer of private label frozen entrées.

Founded by Steve and Lisa Parsons in 1989, Inovata manufactures a diverse range of frozen meals across two facilities in Canada and services customers in both the U.S. and Canada.

“As the demand for premium private-label meal solutions continues to grow, we see Inovata as the ideal platform to capitalize on these trends. With extensive experience in private label and food manufacturing throughout North America, we believe we are uniquely positioned to help foster Inovata’s growth and leadership position in the industry,” said Tyler Matlock, SPC’s managing director.

“I am confident that partnering with SPC will accelerate our capacity expansion plans, enabling us to provide even more quality products to our valued customers,” said Steve Parsons, founder of Inovata.

Inovata represents SPC’s 10th platform investment in Canada. Prior investments include Voortman Cookies, Recochem, Kicking Horse Coffee, Lavo, Pineridge Bakery, and Liberté. In addition to Inovata, SPC currently partners with Vancouver-based Fine Choice Foods, a manufacturer of Asian-inspired foods, selling under the Summ brand across North America, and St-Méthode Bakery, a Quebec-based bakery platform.

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Lassonde acquires Summer Garden for US$235M https://www.foodincanada.com/food-in-canada/lassonde-acquires-summer-garden-for-us235m-157709/ Tue, 25 Jun 2024 18:09:04 +0000 https://www.foodincanada.com/?p=157709 Lassonde acquires the Zidian Group, which operates Summer Garden Food Manufacturing.

The acquisition is valued at US$235 million, payable at closing. An additional amount of up to US$45 million may be payable over the next three years if certain financial targets and conditions are met.

Based in Boardman, Ohio, Summer Garden employs approximately 200 people. It develops, manufactures, and markets a range of sauces and condiments, such as tomato and cream-based pasta sauces, BBQ sauces, dipping sauces, and salad dressings. Its product portfolio includes around 250 products sold at more than 20,000 locations under the Gia Russa, Little Italy in the Bronx, and G Hughes brands. Summer Garden also acts as a co-packer for other brands.

“The acquisition of Summer Garden supports our ambition to become a more diversified North American food and beverage company,” said Nathalie Lassonde, CEO and board vice-chair, Lassonde. “Growing our specialty food activities is one of Lassonde’s key strategic objectives and we are happy to have found the right company to help us achieve this objective.”

“This partnership ensures our legacy will continue to thrive,” said Thomas Zidian, president and CEO of Summer Garden. “We are confident it will benefit our customers through enhanced products and will offer our employees new opportunities for development and advancement.”

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Who’s Who 2024: Brent Cator, CEO, Cardinal Meats https://www.foodincanada.com/features/whos-who-2024-brent-cator-ceo-cardinal-meats/ Thu, 20 Jun 2024 16:38:09 +0000 https://www.foodincanada.com/?post_type=feature&p=157662 Innovation, respect, determination. These are some of the words that sum up the phenomenal success of Cardinal Meats under the leadership of president and CEO Brent Cator, following in the footsteps of his father Ralph and grandfather Jack. Cardinal Meats currently makes over 250 products for its own brand and private labels, equally serving the restaurant and retail markets.

Like many of his peers, Cator started working at the family business as a young teen and then studied business.

“All I knew is that I didn’t want to be bored,” he says, “and I never have been. There are so many intricacies involved in producing meat products, and I love the close relationships with our customers, as well as leading our outstanding team.”

Cator learned how to innovate from Ralph (who almost single-handedly made the concept of the burger mainstream in Canada decades ago, and for that and more, was inducted into the Meat Industry Hall of Fame). About 30 years ago, Ralph was supposed to retire, but “he was determined to develop a cooked rib product in my mother’s sauce,” says Cator, “and if we didn’t do it, he was going to do it with someone else.”

This push resulted in one of Cardinal’s biggest achievements, where Cator led the creation of their now-famous Safe Sous Vide cooking process by collaborating with scientists from two universities over three years. The team adapted the sous vide cooking method used by chefs into a patented large-scale industrial process that has been a phenomenal success (and also led to changes in regulatory law). The products, which Cator says are cost-effective, consistent, food-safe, and delicious, are from underutilized cuts and have been in hot demand since the start from both home cooks and restaurants.

“We made cooked ribs, of course, but also many other products like shredded pork, chicken breasts in lemon-pepper sauce, bone-in half chicken, and meat loaf,” says Cator.

The art of forming burgers

The success of Safe Sous Vide prompted Cator to further innovate. He brought in biological food safety testing, and with VP of operations John Vatri, discovered a method that meat processing plants could use to make ground meat safer.

“Again, we advanced food safety regulations in Canada and the U.S.,” says Cator.

Further innovation followed. Cardinal was the first to use Tender-Form fill to create burger patties. The company’s philosophy of ‘once innovated, innovate again’ led to also commercializing their burgers made using a unique Natural Texture Formed forming technology. In total, so far, Cardinal Meats holds three patents.

Just in the last year, the Cardinal product line grew by leaps and bounds, and Cator anticipates more expansion, especially in the Safe Sous Vide line.

“It’s as fresh as if a chef just made it,” says Cator. “Its popularity is really growing right now, with restaurants needing to save labour and more people eating at home but wanting a special experience.”

Cator wants to explore using Safe Sous Vide in starchy dishes, but says, “I’d like to spend more time researching technologies from around the world to add to the business. I love the customer intimacy, I love the speed of this industry, [and] I love the challenges. I want to hear what our customers wish they could get, and then find how we can do that. I love my team. I’m very proud of our company culture. Our staff is very engaged and like me, they believe there is always a better way.”

This article was originally published in the April/May 2024 issue of Food in Canada.

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Wild game plant on the rise https://www.foodincanada.com/food-business/wild-game-plant-on-the-rise-157656/ Thu, 20 Jun 2024 15:55:40 +0000 https://www.foodincanada.com/?p=157656 …]]> Kivalliq Arctic Foods has been on a roll since Scott Saddler took over as its general manager about six-and-one-half-years ago.

The plant processes a wide assortment of caribou, muskox and Arctic char products for customers across Nunavut.

Parent organization, the Nunavut Development Corp., describes Saddler as a long-time Nunavut resident with an extensive background in food production and meat processing.

It further adds that Saddler and his team work with Inuit hunters and fishermen from across the Kivalliq, and occasionally other Nunavut regions, to stock the country food needed to meet the growing demand.

The plant is also well-known for working closely with Chesterfield Inlet and Whale Cove, both of which operate fish and maktaaq processing facilities during the summer to supply products for redistribution across the territory.

Saddler said the business is doing really well overall.

He said the plant continues to create jobs, which its what its main objective has always been.

“We bought from every community this year except Coral Harbour, which has just been super,” said Saddler. “We bought fish from across, pretty much, all of Nunavut, including Qikiqtarjuaq, Gjoa Haven, Clyde River, Cambridge Bay and then, also, along the shoreline this year.

“We only buy from Inuit beneficiaries or people with beneficiary rights. We do not buy from anyone else.

“When I took it over on Dec. 27, 2017, the first year we did books here, there were five direct jobs created. I’m at 10 so far this year, plus all the indirect jobs, so it’s gone up quite well. We now have 15 people working here.

“The company is really on solid footing right now.”

Saddler said the company is currently in the process of finding someone to install a brand-new freezer at Kivalliq Arctic Foods.

He said the company needs a bigger freezer now, which will make it easier for everyone involved at the plant.

“We’re really busy right now to the point where we can’t keep up.

“We’re the only truly wild game factory in Canada. In Ontario or Down East, you can’t shoot a moose or a deer, for example, and sell it to someone. Here, because of beneficiary rights and everything that was negotiated when Nunavut left the NWT in 1999, things work quite differently.

“Our caribou herd is holding firm in its numbers and maybe even expanding a little bit, so we have a solid caribou herd. And, as well, our muskox herd is really expanding in the Kivalliq area, so everything, right now, looks really good moving forward.”

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Sweets from the Earth acquires Canadian rights to Tofutti Brands https://www.foodincanada.com/food-business/sweets-from-the-earth-acquires-canadian-rights-to-tofutti-brands-157649/ Thu, 20 Jun 2024 15:37:09 +0000 https://www.foodincanada.com/?p=157649 …]]> Sweets from the Earth secures exclusive Canadian rights (excluding Quebec ethnic channels) to all Tofutti products.

With a range of dairy-free alternatives including cream cheese, sour cream and frozen desserts, Tofutti has been a major player in the vegan food industry for more than four decades.

“We are excited to expand Tofutti’s exceptional products within the Canadian market by leveraging the Sweets from the Earth distribution network,” said Marc Kadonoff, vice president and co-CEO of Sweets from the Earth. “This acquisition aligns perfectly with our mission to provide delicious, ethical and sustainable food choices. We look forward to introducing Tofutti’s popular dairy-free options to our loyal customers and new audiences across Canada.”

“We are excited to partner with Sweets from the Earth to expand our product offering and distribution points within the Canadian market,” added Steve Kass, CEO of Tofutti Brands.

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Construction starts on new JBS distribution centre in Alberta https://www.foodincanada.com/food-business/construction-starts-on-new-jbs-distribution-centre-in-alberta-157643/ Thu, 20 Jun 2024 15:12:11 +0000 https://www.foodincanada.com/?p=157643 …]]> JBS Canada breaks ground on a new distribution centre in Brooks, Alta. Construction on the $80 million centre is expected to finish in Q4 2025. The centre is expected to increase JBS Canada’s shipping capacity by 40 per cent.

Alberta Premier Danielle Smith and JBS USA CEO Wesley Batista Filho attended the ground-breaking ceremony along with the County of Newell councillors Holly Johnson, Greg Skriver, Neil Johnson and Reve Doerksen, Brooks Mayor John Petrie, MP Martin Shields, and agriculture minister RJ Sigurdson.

“Our team members are the reason that JBS Canada is able to make such a substantial investment in Brooks,” said Celio Fritche, president of JBS Canada in a LinkedIn post. “Thank you, for your hard work, dedication, and for working to feed Canada each and every day.”

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Healthy Crunch celebrates 10 years of innovation in the better-for-you space https://www.foodincanada.com/features/healthy-crunch-celebrates-10-years-of-innovation-in-the-better-for-you-space/ Thu, 13 Jun 2024 16:03:48 +0000 https://www.foodincanada.com/?post_type=feature&p=157604 …]]> A serial entrepreneur, Julie Bednarski-Malik, MHSc, PHEc, RD, founder and CEO of Healthy Crunch, began experimenting with food long before she exploded on the market with her iconic kale chips. She founded Juices by Julie, a juicing company. Bednarski-Malik also ran a catering company called JB Catering. At one point, she had a nutritional consulting business too.

“I come from a family of entrepreneurs. My mom’s an entrepreneur, my grandmother was an entrepreneur, my great-grandmother was an entrepreneur, so I feel like entrepreneurship runs in my blood. As a child, I was always told to create my own destiny. So that was kind of instilled in me growing up,” recalled Bednarski-Malik.

Her passion for food and nutrition eventually led her to become a dietitian as well as attend culinary school. Her professional quest then became one of finding ways to merge her culinary skills and nutrition. Sadly, a health issue pumped the brakes on her plans and made her focus on healing herself.

“It took me two years to recover from an eating disorder. During that process, I reconnected with food and found my love for food again,” said Bednarski-Malik.

In 2014, she decided to create foods that made her feel good. She began experimenting with kale.

“I love vegetables. I would eat these kale chips, and I felt okay. They’re healthy, low in sugar, nutrient dense, and I could feel good about eating them,” she said.

Julie Bednarski-Malik, MHSc, PHEc, RD.

Starbucks as partner

Bednarski-Malik wasn’t the only one who liked the kale chips; her friends and family members found it delicious too. Thus began Healthy Crunch in 2014. It was also fortuitous that her first customer was Starbucks.

Bednarski-Malik was making her kale chips at a collective kitchen where she was renting a table by the hour. During a networking event at the kitchen, Bednarski-Malik offered her chips to a woman who wanted to share them with her friend. She didn’t know then, but the friend was Rossann Williams, head of Starbucks North America at that time. As the story goes, Williams loved the kale chips and contracted Healthy Crunch to make them for Starbucks.

“We started off with one really great partner who believed in us. And Starbucks was such a great customer to launch with because they have a [huge] brand presence. When you’re in Starbucks, people believe you’re legitimate. One year after launching in Starbucks, we had tremendous growth,” she recalled.

The company ended up with listings at Costco, Shoppers Drug Mart, Loblaws, and Ikea.

“Our kale chips were everywhere; all over Canada, in airports and movie theatres. Cineplex was selling our kale chips. kale was on trend at the time,” she said. “It was the colour of the year. It was just about being at the right place at the right time. I think all the stars were aligned for it to happen.”

The success was immensely appreciated because kale chips is a challenging product to manufacture. It’s a three-day process. Bednarski-Malik also faced supply issues.

“There are not that many kale chips out there right now because it’s very fragile. It takes a long time to make. You’re using fresh ingredients. Sometimes kale is fluffy and sometimes it’s not. There are so many variables to it,” she explained.

Despite the challenges, Healthy Crunch continued making its flagship product. However, during the COVID-19 pandemic, they couldn’t source the required amount of kale, and the company had to discontinue its most popular product.

Beyond chips

This decision kick-started the next phase of Healthy Crunch, which celebrates its 10th anniversary this year (If you’re missing their kale chips, Healthy Crunch has relaunched it as part of their anniversary celebrations). It currently has more than 120 vegan, school-approved products, such as seed butters and jams, granola bars, trail mixes, crispy squares, dark chocolates and instant lattes. Their most popular products are granola bars and dark chocolates.

“We have to be super unique, but we also don’t want to be too unique where we have to educate the customer,” she explained. “We launched into categories where consumers know the product.”

For instance, jams, but with a Healthy Crunch twist, meaning reduced sugar, increased fibre, a clean ingredient deck without additives, colourings and preservatives. Another example is their nutrient-dense crispy squares instead of the full-on sugar rush that comes with typical rice crispies.

Bednarski-Malik chose this middle ground because consumer awareness takes a long time and resources. For a lean company like Healthy Crunch with only 12 employees, it’s not profitable to be launching uber niche products and spending thousands of dollars in raising awareness about new product categories.

Healthy Crunch manufactures its products out of a SQF level two certified facility in Mississauga, Ont. The products are free of 11 major food allergens, which comes out of Bednarski-Malik’s desire to make healthy eating inclusive. They have more than 20,000 points of distribution.

Healthy Crunch products are also sold in the U.S., the U.K. and the Middle East. After a decade of sustained growth, Bednarski-Malik is now ready to expand into other markets.

“There are a lot of major U.S. retailers that we want to launch into like Target and some other larger product categories too. I’m also thinking of launching into Europe, as there’s so much opportunity over there,” she said.

Bednarski-Malik strongly feels Healthy Crunch has the potential to take advantage of the whitespace in the global better-for-you category.

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Restaurants Canada calls for reduction in EI premiums https://www.foodincanada.com/food-business/restaurants-canada-calls-for-reduction-in-ei-premiums-157600/ Thu, 13 Jun 2024 15:35:32 +0000 https://www.foodincanada.com/?p=157600 …]]> Restaurants Canada, along with the Canadian Federation of Independent Business and the Tourism Industry Association of Canada, urges the federal government to lower the employment insurance (EI) premium rate to 1.58 per cent, for small businesses and their employees, from the current rate of 1.66 per cent.

The call is in response to the report, “On the Precipice – Help is Needed,” by Ian Lee, PhD, associate professor at Carleton University, which delves into the profound impacts of EI premiums on small businesses.

As restaurants and small business owners navigate an affordability crisis, the report shines a spotlight on the challenges posed by higher EI premiums amidst unprecedented cost pressures. Bankruptcies among restaurants and accommodations, construction and retail doubled from 2019 to 2024.

“Restaurant operators, representing a $114 billion industry, as the fourth largest private employer, affirmed their commitment to reinvesting government-provided payroll tax relief into their businesses and workforce. This reinvestment would immediately take the form of improved wages, investments in training and development, or expanded hiring efforts,” said Kelly Higginson, president and CEO of Restaurants Canada. “The foodservice industry is a powerhouse employer for Canadian communities and has demonstrated remarkable resilience. The livelihoods of countless employees, especially youth and newcomers, depend on the success of these establishments.”

In 2020, the government necessitated a freeze to EI premiums for two years so Canadian businesses would not face increased costs while also dealing with additional expenses resulting from the pandemic.

“Lower EI premiums will channel more funds into the hands of the significant number of young workers, particularly in accommodation and foodservice roles, who make up a large portion of this industry, and rely on this income to fund their education,” said Lee.

Download the full report here.

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Bel Group launches employee shareholding plan https://www.foodincanada.com/food-business/bel-group-launches-employee-shareholding-plan-157586/ Wed, 12 Jun 2024 13:54:00 +0000 https://www.foodincanada.com/?p=157586 Bel Group launches an international employee shareholding plan. The We Share initiative is part of Bel’s long-term commitment to involve employees in the company’s success.

Launched in April 2024 in France, We Share showed positive results in the initial subscription period with over 40 per cent of eligible employees pre-allocating their profit-sharing and bonuses to the program. The formal subscription phase will start in mid-June.

Cécile Béliot, Bel Group’s CEO, said, “The high level of participation by our employees in France shows their confidence and commitment, as well as their desire to contribute to our future success, and I would like to thank them for this. This reinforces our determination to successfully implement our strategy and mission.”

The program will roll out in the U.S., Canada, and China by the end of 2024. Other subsidiaries will follow in 2025 and 2026. The plan is designed for employees at all levels with guaranteed minimums and growth potential.

Bel Group’s chair Antoine Fiévet said, “Our employees are at the heart of our value creation, and our aim is to share with them the value we create over the long run.”

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Poppi faces lawsuit from consumer who questions its gut health claims https://www.foodincanada.com/food-business/poppi-faces-lawsuit-from-consumer-who-questions-its-gut-health-claims-157530/ Thu, 06 Jun 2024 15:12:51 +0000 https://www.foodincanada.com/?p=157530 …]]> Popular soda brand Poppi is facing a class-action lawsuit filed by a consumer who says its products don’t improve gut health as much as their marketing suggests.

In a lawsuit filed last week in U.S. District Court in San Francisco, Kristin Cobbs said she purchased Poppi drinks on multiple occasions because of their labels, which say they are prebiotic sodas and feature the slogan, “Be Gut Happy. Be Gut Healthy.” But Cobbs later found that Poppi drinks contain only around 2 g of prebiotic agave inulin fibre, which she said is insufficient to provide any real benefit. Cobbs cited research showing that consuming 7.5 g of agave inulin daily for three weeks was insufficient to confer any meaningful prebiotic benefit.

If consumers drink more Poppi, any prebiotic benefits would be outweighed by increased sugar consumption, the lawsuit said.

Cobbs is seeking monetary relief for herself and similar customers.

Austin, Texas-based Poppi said in a statement Monday that it stands behind its products.

“We are on a mission to revolutionize soda for the next generation of soda drinkers, and we have diligently innovated to provide a tasting experience that millions of people have come to enjoy,” the company said. “We believe the lawsuit is baseless, and we will vigorously defend against these allegations.”

The Associated Press sent an email message seeking comment to Poppi, which is based in Austin, Texas.

Poppi is one of dozens of brands in the exploding category of functional beverages, which claim to improve health and wellness. U.S. sales of prebiotic and probiotic drinks more than tripled last year, according to data compiled by consulting firm AlixPartners.

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Rainy River Meats up for sale as abattoir faces financial struggles https://www.foodincanada.com/food-business/rainy-river-meats-up-for-sale-as-abattoir-faces-financial-struggles-157512/ Thu, 06 Jun 2024 13:35:55 +0000 https://www.foodincanada.com/?p=157512 …]]> The Rainy River district regional abattoir in Ontario is hoping to stave off a permanent closure by selling off its processing facility, Rainy River Meats. At their recent annual general meeting, the abattoir’s board of directors set a deadline of July 31 to sell the meat shop.

“If at that time, there are no takers, they’ll probably close it,” said Kim Jo Bliss, a longtime board member.

The abattoir and Rainy River Meats are being run by a board of volunteers, which they feel may have led to inefficiencies.

“A volunteer board should not be running a business, that’s open 250 days of the year,” she said. “The truth is, a business like that takes passion and ownership and all of us who are volunteers, have a farm and a job and a family, and sit on other boards, so we just don’t have time. So, the business is not being run to its full potential, and it’s hurting. It’s costing us money right now.”

That’s not to say the store is destined to struggle; Bliss feels it holds plenty of potential for an entrepreneurial new owner – especially with the current landscape. At this point, the only other meat producer, Sunrise Meats, is restricting the number of animals it processes, as the owner looks to retire and transition out.

“Maybe there’s somebody out there who would take it on and be passionate and would run it. I do think there’s potential for it, because we’ve seen the potential before,” said Bliss.

Right now, the Abattoir is struggling with a shortage of animals to process. Profitability relies on volume, but cattle producers are seeing increased prices for live animal sales.

“Cattle people are less likely to use the abattoir when prices are higher. You can sell cattle live, like at the sales barn, or wherever, and there’s a lot less hassle and it costs you less money for the most part,” said Bliss.

The board also feels the drought of 2021 is playing a role in the reduced volumes. At that time, a shortage of pasture and hay forced many producers to dramatically cull their herds. Since then, many have focussed on rebuilding their genetics, resulting in fewer animals sent to market.

“So, there’s maybe just not the cattle around, so we’re seeing a lower flow,” said Bliss

But that will inevitably change down the road.

“When live cattle prices drop, which they will – the beef business is a cycle, and it won’t stay strong forever. That’s just how it is. There are things like diseases and issues out there lurking that will cause this market to crash – when that happens, the abattoir still needs to be there,” said Bliss.  “That’s when we’ll really need the abattoir, because there might be a chance that you can make a little money on an animal if you can sell it locally.”

Abattoir board president James Gibson noted that there is always a need for a local abattoir. Regulations on meat production in Ontario would tightly constrict how local cattle could be processed, putting a damper on the local farm-to-table meat pack industry.

The lack of an abattoir would also limit the many farms making a living by selling local meat to restaurants and retail outlets.

“Losing the abattoir would shut them down, too,” said Gibson.

The loss would also prevent animals who are injured from being utilized as food. An animal with an injured foot, for example, can’t be legally transported long distances. A farmer’s only option would be to kill and bury those animals on the farm, he said.

Farmers wouldn’t even be able to consume meat from their own farms, unless they killed and butchered their own, Gibson added. Under Ontario meat regulations, meat packers can’t accept animals that aren’t slaughtered by a licenced operator or provided by a federally licenced source. Furthermore, under those regulations, that farm-butchered meat not only can’t be sold, but it also can’t ever leave the farm or be served to anyone outside the farmer’s immediate family.

“There’s lots of reasons why our abattoir is important,” he said.

The board is hopeful that a new owner will step forward, said Bliss. With production slowing at Sunrise Meats, in preparation of the owner’s retirement, and Rainy River Meats up for sale, she is hopeful that an enterprising person could move in and build up the sector.

“Perhaps as the new person comes along, they would be interested in taking more meat because they would have the facilities that they could,” she said, adding that there’s often government help, for someone with the cash to match the available grants. Unfortunately, the board just doesn’t even have the means to apply.

“The abattoir is important to our entire district, not just the farmers,” said Bliss. “It’s a piece of infrastructure that a lot of places in Ontario would love to have. And I feel like nobody really wants us to close, but how do you keep it going when you have no money?”

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Post Holdings makes leadership changes at Weetabix, Refrigerated Retail https://www.foodincanada.com/food-in-canada/post-holdings-make-leadership-changes-at-weetabix-refrigerated-retail-157462/ Tue, 04 Jun 2024 17:48:28 +0000 https://www.foodincanada.com/?p=157462 As part of its succession planning, Post Holdings makes changes to the executive leadership team at Weetabix and its Refrigerated Retail businesses.

Sally Abbott, managing director of Weetabix, will transition to a strategic advisor role on Oct. 1, 2024, before retiring on March 31, 2025. Colm O’Dwyer, commercial director for Weetabix, will succeed her.

“Sally has been an exceptional leader, helping to successfully integrate Weetabix into Post and building on the success of this iconic company,” said Post’s president and CEO, Robert V. Vitale.

Abbott joined Weetabix in 2008 as marketing director. She led Weetabix through various challenges and oversaw the acquisitions of Lacka Foods in 2022 and Deeside Cereals in 2023.

O’Dwyer joined Weetabix in 2016 from Coca-Cola in the U.K. and eventually became general manager of its On-The-Go business. In 2018, he became its commercial director and took on the added responsibility of Weetabix’s international business in 2022.

“We congratulate Colm…his…experience across innovation, brand management, revenue growth and customer relationships makes him exceptionally qualified to lead Weetabix,” Vitale said.

Weetabix is searching for a new commercial director to replace O’Dwyer.

Mike McCoy

Mark Delahanty, president and CEO of Post Refrigerated Retail, will become a strategic advisor on Dec. 1, 2024, and retire on May 31, 2025. Mike McCoy, executive VP and CFO, will succeed Delahanty on Oct. 1, 2024.

“Mark’s leadership has significantly contributed to Post’s success through the years, first integrating our cereal businesses and then leading our Refrigerated Retail business,” Vitale said.

Delahanty joined Post Holdings in 2016 when the company acquired Mom Brands, where he served as senior VP and general manager. In 2018, he was promoted to COO of Post’s Consumer Brands division.

McCoy has been executive VP and CFO of Post’s Refrigerated Retail business since 2019. He started his career at EY and Deloitte and joined Post in 2014 as the VP of internal audit. Following Post’s acquisition of Bob Evans Farms in 2018, he became executive VP and CAO of Bob Evans Farms.

“We…are excited to transition leadership of the business to Mike [who] has grown his career through a variety of critical business areas within Post and will bring valuable leadership experience and enthusiasm to Refrigerated Retail,” Vitale said.

Adam Gonsiorowski, VP of finance at Bob Evans Farms, will become the CFO of Post Refrigerated Retail on Oct. 1, 2024.

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Cargill workers in Ontario on strike https://www.foodincanada.com/food-business/cargill-workers-in-ontario-on-strike-157425/ Wed, 29 May 2024 15:51:05 +0000 https://www.foodincanada.com/?p=157425 …]]> At a vote held May 26, 2024, members of UFCW Local 175 group who work at Cargill’s Dunlop Drive facility in Guelph, Ont., rejected a negotiated settlement by 82 per cent, sending the nearly 1,000 members onto the picket lines.

In April, the members at Cargill Dunlop gave a 99 per cent strike mandate to their union’s negotiating committee.

The committee raised a number of issues at the bargaining table including the increased cost of living, and the $2 per hour pandemic pay that was stopped in the middle of COVID-19.

“Our members at Cargill Dunlop are an integral part of a vital supply chain that helps keep food on the table for people every day,” said Kelly Tosato, president of UFCW Local 175. “The decision to go on strike is never easy but these members aren’t satisfied with what the company has brought to the table. And we will have their backs until their union negotiating committee can achieve a deal that reflects the nature of their hard work and commitment to creating quality food products that feed hundreds of thousands.”

The Beef Farmers of Ontario (BFO) and the Ontario Cattle Feeders’ Association (OCFA) said in a statement, “We are engaged in the situation and have been in close contact with the Canadian Cattle Association and government representatives as we monitor the impact of the temporary closure of the Dunlop facility. We are hopeful that the negotiations between both parties will come to a swift resolution, and we will keep our members informed as the situation develops.”

The Cargill Dunlop facility employs 950 people and processes 1,500 heads of cattle per day.

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Kraft Heinz Canada, Highbury Canco extend partnership https://www.foodincanada.com/food-business/kraft-heinz-canada-highbury-canco-extend-partnership-157423/ Wed, 29 May 2024 15:25:15 +0000 https://www.foodincanada.com/?p=157423 …]]> Kraft Heinz Canada and Highbury Canco extend their partnership agreement in Leamington, Ont., for another four years, until the end of 2027. This is the third consecutive extension in the longstanding partnership between the two organizations.

Highbury Canco employs more than 600 Canadians at its 2.1-million sf facility in Leamington, where it produces some of Kraft Heinz Canada’s products, including Heinz beans, Heinz tomato juice and Classico pasta sauce.

“We’re proud to extend our agreement with Highbury Canco and look forward to continuing to have Kraft Heinz Canada products produced by the talented and hard-working employees at its Leamington facility for another four years,” said Simon Laroche, president, Kraft Heinz Canada. “We’ve built strong local partnerships across Canada, our second largest market globally, for over 100 years and this new deal signals our continued commitment to being a strong partner to Canadian communities.”

Kraft Heinz Canada continues to be Highbury Canco’s largest partner in Canada, with more than 220 million lb of Ontario tomatoes being used in its products annually. Highbury Canco’s Leamington facility exclusively produces the tomato paste that is used in all the Heinz Ketchup made at Kraft Heinz’s Mont Royal facility in Montreal.

“Extending our partnership with Kraft Heinz Canada for another four years provides significant stability for our facility, and for our workforce,” said Sam Diab, CEO at Highbury Canco. “This is a mutually beneficial alliance that is of great significance to the Leamington community, and for all the Canadians that can continue to enjoy Kraft Heinz Canada products being produced at facilities such as ours.”

The estimated retail value of Kraft Heinz Canada products that will be produced at Highbury Canco’s Leamington facility over the next four years exceeds $1 billion.

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Innodal wins 2024 Governor General Innovation Award https://www.foodincanada.com/food-business/innodal-wins-2024-governor-general-innovation-award-157385/ Thu, 23 May 2024 15:34:50 +0000 https://www.foodincanada.com/?p=157385 …]]> Quebec-based Innodal receives the 2024 Governor General Innovation Award for its anti-Listeria solution, Inneo.

“When François and I first came up with the idea of starting the company in 2017, we never could have imagined that it would bear fruit at this level. Our vision of offering natural solutions for better management of food production and consumption has been and continues to be the driving force behind our commitment. Healthier and less damaging food for everyone was our vision. It has become our mission,” said Laurent Dallaire, CEO of Innodal.

Inneo is the first antimicrobial protein approved by Health Canada. It acts as a shield and eliminates the risks associated with contamination by Listeria monocytogenes in a variety of food products.

The Governor General’s Awards for Innovation aim to honour excellence in innovation and inspire Canadians to become innovative entrepreneurs. The awards are presented to companies whose innovations are exceptional, transformative and have a positive impact on the quality of life in Canada.

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Maple Leaf Foods to close Brantford plant https://www.foodincanada.com/food-business/maple-leaf-foods-to-close-brantford-plant-157383/ Thu, 23 May 2024 15:24:28 +0000 https://www.foodincanada.com/?p=157383 …]]> Maple Leaf Foods is closing its Brantford, Ont., plant and consolidating most of its further processed poultry (FPP) production into its existing plant network through early 2025.

Earlier this year, the company determined that this 100-year-old facility would likely require significant ongoing investment to continue long-term operations.

“The decision to close any plant is one that we take very seriously,” said Curtis Frank, president and CEO, Maple Leaf Foods. “We are very proud of our team at Brantford and appreciate the great work they do each and every day.”

The closure of the plant will be completed in a phased manner to maintain business continuity and meet customer demand. The company will work with the affected Team Members to provide support and assistance through this transition, including supporting other opportunities at other Maple Leaf Foods facilities.

Maple Leaf Foods will work with the community of Brantford to seek alternate uses for the property.

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Nova Scotia offers new funding opportunities for food producers https://www.foodincanada.com/food-business/nova-scotia-offers-new-funding-opportunities-for-food-producers-157378/ Thu, 23 May 2024 15:10:15 +0000 https://www.foodincanada.com/?p=157378 …]]> Nova Scotia-based food producers looking to expand their product line or improve their processing can now access funding from the 2024-25 Value-Adding Equipment Program.

Funding will be available to agricultural food processing businesses doing value-added processing on-site.

The Value-Adding Equipment Program is designed to help build capacity, competitiveness and growth in the Nova Scotia agrifood sector by providing funding to adopt new and improved processes and technologies. It is supported with a $475,000 investment this year, cost-shared between the Nova Scotia and federal governments.

Value-added modifications eligible for funding may include value-added processing equipment and the cost of installing it.

Now in its second year, the program is funded through the Sustainable Canadian Agricultural Partnership. Last year, the program helped 38 value-added food producers enhance their production.

Applications are open until June 30.

“This program will help businesses in Nova Scotia reduce some of their costs, so they can create new products, improve their efficiency, and increase food production to feed communities right across the province,” said Lawrence MacAulay, agriculture and agri-food minister.

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Loblaw joins grocery code of conduct: Walmart and Costco yet to commit https://www.foodincanada.com/food-in-canada/loblaw-joins-grocery-code-of-conduct-walmart-and-costco-yet-to-commit-157367/ Fri, 17 May 2024 13:02:25 +0000 https://www.foodincanada.com/?p=157367 Loblaw Cos. Ltd. recently announced that it’s ready to sign on to the grocery code of conduct.

After six months of negotiations, Loblaw president and CEO Per Bank said the retailer is now ready to sign as long as other industry players do too. “The code now is fair, and it will not lead to higher prices,” he said in an interview.

The code has been developed by leaders in the food industry to create a more level playing field for suppliers and smaller retailers. But it appeared to come to a halt last December when Loblaw and Walmart Canada said they wouldn’t sign the voluntary code because they were concerned it would raise prices for shoppers.

Nick Henn, Loblaw’s chief legal officer, said the underlying principles of the code haven’t changed. “We felt that the words weren’t clear in lots of areas, and so we’ve spent some time with the working committee and the interim board, fixing those areas, improving the code and providing the clarity that we thought it lacked the last time around,” he said in an interview.

One important example was regarding the dispute resolution process, Henn said. Loblaw wanted to make clear when it would be appropriate for issues to go to an adjudicator, and when it wouldn’t — such as in the case of price negotiations between suppliers and retailers. “That was a big concern for us. And so with that no longer being an issue under the draft code, we’re much less concerned about the code leading to higher prices,” Henn said.

June 1, 2025, is the target date for the code to take effect, he said.

“We’ve worked very hard to get to where we are,” said Michael Graydon, CEO of the Food, Health & Consumer Products of Canada Association and chairman of the interim board for the code.

Work can now continue establishing the office of the grocery code, said Graydon, adding he hopes it can begin “sooner rather than later.”

“We now have all the major grocers with the exception of one, and so some work needs to be done in regards to bringing them into the fold,” said Graydon, referring to Walmart. Costco has also had “some inquiries around certain aspects” of the code, he said, but he hopes they will also agree to participate.

Walmart Canada spokeswoman Sarah Kennedy said the company “just received the latest draft of the revised Grocery Code of Conduct, which was not previously shared with us.”

“We will review it and determine next steps,” she said in an emailed statement. “As we’ve said all along, we continue to be focused on our customers’ best interests.”

Over the past several months, calls to make the code mandatory have grown. In February, the House of Commons committee studying food prices told Loblaw and Walmart that if they wouldn’t agree to a voluntary code, the committee would recommend it be made law.

Federal agri-food minister Lawrence MacAulay and Quebec agriculture minister André Lamontagne issued a statement this week saying that with Loblaw now on board for the code, “we now call on the remaining large retailers to do what is in the best interests of Canadians and follow suit.”

In a post on X sharing the statement, MacAulay said until all the large retailers are on board, he’s still “looking at all available federal options.”

Bank recently said on an earnings conference call that he was “cautiously optimistic” an agreement could be reached.

The call on May 1 was the same day some Canadians said they were going to start boycotting all Loblaw-owned stores as frustration mounts over higher food prices and concentration in the grocery sector.

The boycott, organized by a Reddit group, is currently underway. The organizers posted several demands for their movement and the one at the top of the list was for Loblaw to sign the grocery code of conduct.

The negotiations over the code predated the boycott, said Bank, so the announcement “has nothing to do with their demands.” But he recently had a meeting with boycott organizer Emily Johnson, and said he’s sure she will be happy to hear that Loblaw has agreed to the code.

Though food inflation has been an industry-wide phenomenon, sparked by global pressures like the war in Ukraine, for many, Loblaw has become the poster child for food inflation in Canada.

The day after the boycott began, Bank and Loblaw chairman Galen Weston pushed back on what they called “misguided criticism” of the company.

“As a well-known company and Canada’s largest grocer, it is natural that Loblaw would be singled out as a focal point for media and government and of course consumer frustrations,” said Weston at the grocer’s annual meeting May 2.

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Canadian govt. invests over $1.7M in Brampton’s Italpasta https://www.foodincanada.com/food-in-canada/canadian-govt-invests-over-1-7m-in-bramptons-italpasta-157339/ Thu, 16 May 2024 14:13:01 +0000 https://www.foodincanada.com/?p=157339 The Federal Economic Development Agency for Southern Ontario (FedDev Ontario) has announced an investment of over $1.7 million in Brampton-based Italpasta Limited to boost local food manufacturers.

The investment will help the family-owned and operated company replace old equipment with a production line with triple the production capacity. In addition, the new manufacturing line and equipment will reduce production times, increase supply chain spending and create 10 skilled jobs.

Joe Vitale, the founder and president of Italpasta expressed his gratitude for the Canadian government and said, “The funding not only empowers us to address the escalating demand for our products across North America but also reaffirms our role as a beacon illuminating Canadian wheat farmers and championing locally crafted, premium-quality, affordable products that families can be proud to serve to their loved ones.”

Vitale further said that the investment will contribute to the local economy and help in creating more jobs for the people of Brampton.

Moreover, in a recent announcement Italpasta announce the acquisition of Grisspasta, including its Grisspasta and Giardino brands, along with the Longueuil plant in Quebec. The brand said this will allow them to increase production capacity.

Founded in 1989, Italpasta is the largest pasta manufacturer in Canada, employing approximately 200 staff. Its products are made in Canada with 100 per cent Canadian wheat and are sold to retail and food service clients across Canada and the U.S.

FedDev Ontario minister Filomena Tassi, parliamentary secretary Maninder Sidhu and member of parliament for Vaughan–Woodbridge Francesco Sorbara, announced the investment.

“This announcement is good news for both the Brampton region and Canada’s food manufacturing industry as it will support a leading business in our community while strengthening local supply chains and increasing production of made-in-Canada food products,” Sidhu said.

“These investments not only strengthen the competitiveness of Canadian companies, they also contribute to our long-term economic growth,” Tassi said.

The project will support clean growth outcomes by reducing the company’s energy consumption and carbon footprint by 20 per cent through its modernized storage silos and manufacturing processes.

Since 2015, FedDev Ontario has invested over $40 million in more than 100 projects in Brampton, estimated to have created and maintained over 1,300 jobs. Since 2015, the agency has invested over $75 million in more than 80 food manufacturing businesses.

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Saputo appoints new CEO https://www.foodincanada.com/food-in-canada/colizza-appointed-president-ceo-of-saputo-as-a-saputo-moves-to-executive-chair-role-157334/ Thu, 16 May 2024 13:29:04 +0000 https://www.foodincanada.com/?p=157334 Saputo’s Lino A. Saputo, chair of the board, president, and CEO, has indicated his intention to transit from his current position to the role of executive chair of the board.

This change, effective from the upcoming annual general meeting on August 9, 2024, will facilitate strategic oversight and drive value creation for the company.

In this transition, Carl Colizza, currently president and COO of North America, has been appointed as the new president and CEO of Saputo.

Since joining Saputo in 1998, Colizza has held key leadership positions in engineering, operations, business development and strategy. He was appointed president and COO of the Dairy Division (Canada) in 2015 before taking on the role of President and COO (North America) in 2019.

“As I will be transitioning to the position of Executive Chair, my role will shift into a new capacity more focused on strategic oversight, continuing to promote the Saputo vision and values, and supporting the leadership team. As the company’s largest shareholder, Jolina Capital is committed to Saputo for the long-term, and we fully support Carl’s nomination as president and CEO,” said Saputo.

Saputo further praised Colizza saying, “Carl is an extraordinary business leader who is well-respected across our industry and has a strong track record of leading global teams. He has deep roots within Saputo and has played a pivotal role in developing our strategy and improving our business.”

“I am honoured to lead Saputo and our talented team with Lino’s support, building upon the foundation we have established over the past seven decades. For over 25 years, I have had the privilege of working alongside Lino, whose commitment to Saputo’s culture, our people, and the communities we serve is truly extraordinary. I am excited to continue advancing Saputo’s business and delivering on the incredible opportunities we see ahead,” Colizza said.

Following the transition, Colizza will continue to execute the functions of president and COO North America) for the time being. Anthony Fata will continue to serve as independent lead director.

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BC’s food industry gains access to funding for traceability upgrades https://www.foodincanada.com/food-in-canada/bcs-food-industry-gain-access-to-funding-for-traceability-upgrades-157313/ Tue, 14 May 2024 15:32:04 +0000 https://www.foodincanada.com/?p=157313 British Columbia’s producers, food processors and seafood businesses now have access to new funding to improve product tracing, meet consumer demands, and ensure public health safety.

Through the Traceability Adoption Program (TAP), these businesses can get financial support to upgrade their tracking systems. Through the program, they can purchase and install software and hardware, such as databases, barcode readers, label printers and other devices that help make product tracing more efficient and reliable. They can also hire experts who can support their businesses to effectively implement traceability systems in their facilities.

For example, B.C. producers and food processors can use the funding to switch from manual to computer-generated labelling, which saves time and increases quality control.

B.C. ranchers and abattoirs can purchase and install approved radio frequency identification (known as RFID) tag readers that track the movement of animals and other food products wherever they may be in the supply chain to help reduce administrative burden and streamline livestock operations.

The funding is part of the Sustainable Canadian Agricultural Partnership, a $3.5-billion investment over five years (April 1, 2023, until March 31, 2028) to strengthen the agriculture sector. This includes $1 billion in federal programs and activities and $2.5 billion in cost-shared programs and activities that are funded 60 per cent federally and 40 per cent provincially or territorially.

In B.C., up to $530,000 is available through TAP, with individual applicants eligible for up to $20,000. The program is managed by the Investment Agriculture Foundation of BC and is open for applications starting May 9, 2024.

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Lactalis Canada launches plant-based beverage https://www.foodincanada.com/food-in-canada/lactalis-canada-launches-plant-based-beverage-enjoy-157307/ Tue, 14 May 2024 14:46:24 +0000 https://www.foodincanada.com/?p=157307 Lactalis Canada launches Enjoy, a new plant-based beverage brand.

“We are delighted to make a splash with the launch of Enjoy, which only further complements Lactalis Canada’s wide-ranging portfolio of now 20 iconic consumer brands and expands our plant-based offering to Canadian consumers by leveraging our expertise in this dairy-free category,” said Mark Taylor, president and CEO  of Lactalis Canada.

The plant-based brand offers 8 g of protein derived from peas per 250 ml. It features six SKUs: unsweetened oat, unsweetened oat vanilla, unsweetened almond, unsweetened almond vanilla, unsweetened hazelnut and unsweetened hazelnut & oat.

“As nutritious, high protein, unsweetened beverages, Enjoy responds to a growing consumer demand for plant-based options that taste great and have positive health impacts including non-GMO and gluten-free certification with no artificial colours, preservatives or flavours,” said Nathalie Cusson, general manager of Lactalis Canada’s Fluid Division.

“What sets Enjoy apart is its uniquely high protein content, which consumers are increasingly desiring in their daily diet,” Cusson added.

The company recently converted a 33,150 sf production facility in Sudbury, Ont., to a dedicated plant-based manufacturing plant.

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Master every Ingredient for Success at Food in Canada’s growth-focused conference https://www.foodincanada.com/food-business/master-every-ingredient-for-success-at-food-in-canadas-growth-focused-conference-157279/ Thu, 09 May 2024 15:55:58 +0000 https://www.foodincanada.com/?p=157279 …]]> Food in Canada invites you to attend our inaugural Ingredients for Success: Scaling Strategies for F&B Processors event.

Held on June 19, 2024, at the Storys Building in Toronto, Ingredients for Success aims to equip F&B SMEs with the tools and strategies they need to succeed in a competitive market.

The event will feature presentations and panel discussions on business excellence, ongoing issues with productivity, and product development. There’ll also be micro-mentoring sessions with peers on a range of issues like strategic planning, market understanding, financial management, operational efficiency, team building, and marketing.

Don’t miss this opportunity! Be empowered to make the right decisions for your business.

For more information and register, visit www.i4s.foodincanada.com.

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Farinart acquires Malterie Frontenac https://www.foodincanada.com/food-business/farinart-acquires-malterie-frontenac-157277/ Thu, 09 May 2024 15:40:55 +0000 https://www.foodincanada.com/?p=157277 …]]> Farinart, a manufacturer of cereal blends, baking mixes, sprouted grains and specialty flours, acquires all the assets of Malterie Frontenac.

Elisabeth Brasseur, Farinart’s VP-sales and innovation, commented, “The integration of Malterie Frontenac into the Farinart group is a significant strategic milestone for our business. The acquisition marks an exciting chapter in the company’s growth and innovation journey. It aligns with our commitment to better anticipate and service the needs of our customers, as well as providing them with exceptional value. With more than 60 per cent of our sales in the U.S. market, we are thrilled to complement our current specialty grain offering with the additional sprouting and malting expertise and capabilities to better meet the demands of this market.”

Founded in 2006 and based in Thetford Mines, Que., Malterie Frontenac originally served craft breweries. However, over time founder and master brewer-maltster, Bruno Vachon, developed a sprouting and malting expertise to meet the needs of bakeries. The company mainly processes local grains such as barley, wheat, rye and oats.

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B&G Foods mulling sale of frozen vegetable business https://www.foodincanada.com/food-business/bg-foods-mulling-potential-sale-of-frozen-vegetable-business-157275/ Thu, 09 May 2024 15:34:02 +0000 https://www.foodincanada.com/?p=157275 …]]> B&G Foods is evaluating potential divestitures that represent between 10 and 15 per cent of the company’s consolidated net sales. This is part of the company’s plans to accelerate the reshaping of its portfolio in order to sharpen focus, improve margins and cash flow, and maximize future value creation.

The company divested the Green Giant U.S. canned vegetable business in November 2023 and the Back to Nature brand in January 2023. After careful analysis, B&G Foods has decided to place its frozen and remaining canned vegetable businesses under strategic review. It is evaluating a possible divestiture of some or all of the assets in its Frozen & Vegetable business unit, either in a single transaction or in a series of transactions.

Casey Keller, president and CEO, B&G Foods, said, “Green Giant remains a strong brand with broad awareness and distribution, and the frozen vegetables category is on trend with health and dietary trends. However, I believe the frozen vegetable business may not be the right fit with B&G Foods’ focus and capabilities, particularly since we have no plans to add more assets in the frozen portfolio given the opportunities in our core shelf-stable businesses and overall capital constraints.”

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Hundreds strike at Nestle chocolate plant in Toronto, Unifor says https://www.foodincanada.com/food-business/hundreds-strike-at-nestle-chocolate-plant-in-toronto-unifor-says-157272/ Thu, 09 May 2024 15:27:32 +0000 https://www.foodincanada.com/?p=157272 …]]> Hundreds of Nestle workers walked off the job in Toronto on Sunday after rejecting a tentative agreement the union reached with the chocolate maker.

Unifor issued a statement saying its 461 members who work as machine operators, bar packers, shippers and receivers, general labourers and in the skilled trades at the Toronto Nestle plant chose to go on strike on Sunday evening.

The plant produces Kit Kat, Aero and Coffee Crisp chocolate bars, as well as Smarties, and Nestle says it doesn’t expect the strike will have an immediate effect on the products’ availability in stores.

Unifor says its members wanted improvements to the pension plan, and rejected a two-year freeze on a cost of living adjustment.

It says it doesn’t currently have any bargaining dates scheduled.

Nestle Canada says it’s disappointed workers rejected the tentative deal, and it plans to work with the union to get workers back on the job.

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Bimbo Canada to close a Quebec bakery https://www.foodincanada.com/food-business/bimbo-canada-to-close-a-quebec-bakery-157270/ Thu, 09 May 2024 15:21:14 +0000 https://www.foodincanada.com/?p=157270 …]]> Bimbo Canada plans to close its bakery in Lévis, Que., the week of July 1, 2024. Products made at the facility will be baked at other primarily Quebec-based bakeries with available capacity.

“Bimbo Canada is committed to building a sustainable company to meet our long-term business objectives. Since 2014, the company has invested more than $500 million in Canada, with $160 million of that in Quebec,” said Marie-Ève Royer, president, Bimbo Canada. “While we have made every effort to sustain and build the business, over time, site utilization and production have steadily declined. It was a tough decision to close this bakery and I will personally ensure that we do everything possible to ease the impact on our people and encourage them to seek employment at other Bimbo Canada facilities that are hiring.”

The bakery employs approximately 95 associates. Affected associates will receive severance packages, as well as personal counselling and ongoing outplacement services and workshops. Additionally, associates will be encouraged to apply for open positions in other bakeries in the region, for example in Québec City and Sainte-Marie-de-Beauce (Vachon).

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Loblaw CEO ‘cautiously optimistic’ about grocery code of conduct https://www.foodincanada.com/food-business/loblaw-ceo-cautiously-optimistic-about-grocery-code-of-conduct-157220/ Thu, 02 May 2024 11:48:18 +0000 https://www.foodincanada.com/?p=157220 …]]> Loblaw Cos. Ltd.’s new chief executive said he’s “cautiously optimistic” that the company will be able to come to an agreement on the grocery code of conduct.

“Where it’s going to land, I’m of course not sure, but I’m more optimistic now than before that we can land an agreement on the code,” Per Bank told a conference call discussing Loblaw’s first-quarter earnings Wednesday.

The grocer has been one of two major holdouts on the code, which is intended to promote fair dealings in the industry. Loblaw and Walmart Canada previously said they couldn’t sign the code as drafted because they were concerned it would raise prices for consumers.

Bank told analysts on the call that the company has been working in recent weeks with the committee creating the code.

The code is meant to be industry-led and voluntary, but the federal government has indicated it’s open to making it law instead if the major players won’t all get on board.

It’s “well past time” that Loblaw recognizes the benefits of the code, said Annie Cullinan, a spokeswoman for agri-food minister Lawrence MacAulay.

“We hope that their ‘cautious optimism’ translates into a prompt commitment to adopt and adhere to” the code, she said in an email.

“After years of work and support from the majority of industry partners, it’s well past time Loblaw recognize the benefits of bringing more fairness, transparency and stability to our grocery sector and supply chain.

Michael Graydon, CEO of the Food, Health & Consumer Products of Canada association and chairman of the interim board for the code, said in an email that he shares Bank’s optimism, and that discussions with the company have been “very productive.”

Bank’s comments came as the parent company of Loblaws and Shoppers Drug Mart raised its quarterly dividend by 15 per cent to 51.3 cents per share and reported its first-quarter profit and revenue rose compared with a year ago.

The retailer said its profit available to common shareholders increased almost 10 per cent year over year to $459 million, or $1.47 per diluted share, for the quarter ended March 23. Revenue totalled $13.58 billion, up from $13.00 billion a year earlier.

Food retail same-stores sales rose 3.4 per cent, while drug retail same-store sales increased 4.0 per cent, with front store same-store sales up 0.7 per cent and pharmacy and health-care services same-store sales up 7.3 per cent.

“Our strong same-store sales combined with a lower internal inflation rate clearly highlights the strength of our discount banners, private label brands and PC Optimum offers,” Loblaw chief financial officer Richard Dufresne said.

On an adjusted basis, Loblaw said it earned $1.72 per diluted share in its latest quarter, up from an adjusted profit of $1.55 per diluted share a year earlier.

Bank said the company’s discount stores continue to drive growth as customers are “voting with their feet.”

“I think the shift to discount will continue over the next many years,” he said, though it will likely do so at a slower pace.

The company plans to continue expanding its discount store footprint this year. Earlier this year it announced a $2-billion capital investment plan that it said would result in more than 40 new discount stores, among other relocations, renovations, and new pharmacy care clinics.

The grocer’s financial results landed on the same day that a month-long boycott of the company is set to start. Though it’s unclear how widespread the boycott will be, more than 60,000 people have joined the Reddit group organizing the boycott of all Loblaw-owned stores as frustration and distrust of Canada’s major grocers intensifies.

In a previous interview about the boycott, Bank acknowledged the company’s reputation is not where it was pre-pandemic, and said it’s something Loblaw is looking to rebuild.

The company reached out to boycott organizers to set up a meeting with Bank, a Loblaw spokesperson confirmed. Boycott organizer Emily Johnson said a meeting has been scheduled.

This quarter the company launched mobile phone plans under their No Name brand.

“Our mobile services business actually grew faster than our credit card business in the quarter,” Bank told analysts, adding that the launch is an example of the company using its “scale and scope” to provide value to customers.

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Hain Celestial sells Thinsters cookie brand to J&J Snack Foods https://www.foodincanada.com/food-business/hain-celestial-sells-thinsters-cookie-brand-to-jj-snack-foods-157216/ Thu, 02 May 2024 11:24:07 +0000 https://www.foodincanada.com/?p=157216 …]]> The Hain Celestial Group sells its Thinsters cookie business to J&J Snack Foods. The all-cash transaction optimizes the company’s better-for-you portfolio and will be used to pay down company debt.

“Divesting Thinsters further streamlines our supply chain network and strengthens our ability to focus our efforts on driving greater reach and scale of our core better-for-you brands across our categories of focus,” said Wendy Davidson, Hain Celestial president and CEO. “We are pleased to reach this agreement with J&J Snack Foods and are confident that the business will thrive under their leadership.”

In September 2023, Hain introduced Hain Reimagined, the company’s multi-year transformation plan to pivot the business to growth. The Thinsters divestiture is part of that plan.

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A profile of temporary foreign workers in F&B manufacturing https://www.foodincanada.com/features/a-profile-of-temporary-foreign-workers-in-fb-manufacturing/ Thu, 02 May 2024 11:11:41 +0000 https://www.foodincanada.com/?post_type=feature&p=157215 …]]> In a new paper, StatsCanada looks into the make-up of temporary foreign workers in the food manufacturing industry, including where they came from, how long they continued working in the food manufacturing industry after their arrival and how many ultimately became permanent residents of Canada.

According to the paper, more than 40,000 temporary foreign workers arrived in Canada to work in the food manufacturing industry from the beginning of the millennium to early 2020. It found that half to four-fifths of the temporary foreign workers were employed in lower skilled positions such as general labourers. Approximately three in four of the workers were aged 25 to 44, with a majority of them being men.

Women accounted for over four in 10 temporary foreign workers in the industry from 2010 to 2019. The share of women working at higher skilled food manufacturing jobs, such as managers and technicians, rose from approximately one-quarter during the first decade of the millennium to one-third from 2010 to 2019.

The largest influx of temporary foreign workers in food manufacturing occurred from 2015 to 2019 when 15,750 arrived, just over three times more compared with the beginning of the millennium when 5,130 arrived (2000 to 2004). The largest share of temporary foreign workers employed at lower-skilled occupations in food manufacturing from 2000 to 2004 arrived from Central America, Africa and Eastern Europe.

From 2005 onward, however, the largest shares of temporary foreign workers were from Central America, Southeast Asia and East Asia.

Conversely, most temporary foreign workers in higher-skill occupations in the food industry arrived from more developed countries, such as those in Europe, which became the most important source region for these workers since the mid-2000s.

Most temporary foreign workers coming to Canada to work in food manufacturing ultimately move on to a job in another sector of the economy. Depending on the year of arrival, 46 to 78 per cent of temporary foreign workers in lower-skill occupations remained in the food manufacturing industry during their first year of landing, compared with approximately two-thirds (66 per cent) to three-quarters (73 per cent) of those in higher-skill occupations.

The likelihood of a temporary foreign worker remaining in the food manufacturing industry decreases over time. For example, for temporary foreign workers who landed from 2006 to 2010 to work in a low-skill occupation, over two-thirds (69 per cent) remained at the job one year later. This rate fell to just over half (52 per cent) three years after arrival and to 40 per cent five years after arrival.

Over the same period, over half (57 per cent) of temporary foreign workers in higher skilled occupations in food manufacturing remained in the industry one year after landing. This rate fell from 41 per cent three years after arriving to 34 per cent five years after arrival.

A decade after landing, almost two-thirds of temporary foreign workers in lower skilled occupations who arrived from 2005 to 2009 had become permanent residents (65 per cent), as had 59 per cent of those in higher-skilled positions.

The full paper, Temporary foreign workers with lower-skill occupations in the food manufacturing industry: Transition to permanent residency and industrial retention after transition, is available at StatsCanada.

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Kraft Heinz, TGI Fridays sign perpetual licensing deal https://www.foodincanada.com/food-business/kraft-heinz-tgi-fridays-sign-perpetual-licensing-deal-157213/ Thu, 02 May 2024 10:57:39 +0000 https://www.foodincanada.com/?p=157213 …]]> Kraft Heinz and TGI Fridays sign an exclusive, perpetual extension of their existing licensing deal where Kraft Heinz makes restaurant-inspired, TGI Fridays’ branded frozen appetizers for retail across North America.

Kraft Heinz and TGI Fridays have had a successful licensing partnership since 2001. With the new perpetual licensing deal, Kraft Heinz will continue to develop and sell TGI Fridays’ frozen appetizers and snacks.

“The TGI Fridays brand is an important part of our frozen food portfolio and is a growth driver for our business across North America,” said Pedro Navio, North America zone president at Kraft Heinz. “This new agreement aligns with our strategy to accelerate growth in categories where we can create more value for shoppers. We’re proud to offer restaurant-quality frozen appetizers and snacks under the TGI Fridays brand.”

“As the world’s first casual bar and grill, TGI Fridays is a beloved and iconic global brand that’s known for innovative and craveable foods, especially our world-famous appetizers,” said TGI Fridays CEO, Weldon Spangler. “This licensing agreement with Kraft Heinz will help extend that ‘Fridays Feeling’ to consumers at retail with TGI Fridays restaurant-quality frozen appetizers and snacks.”

There are currently 25 varieties of TGI Fridays branded frozen appetizers available at grocery stores, including Loaded Cheddar & Bacon Potato Skins, Spinach and Artichoke Cheese Dip, Honey BBQ Boneless Chicken Bites, and Mozzarella Sticks with Marinara Sauce.

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