cheers to your health - Canadian Manufacturing

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NE WS
FILE
The Voice of the Canadian Food & Beverage Industry
Wal-Mart Supercentres a Boon to Producers
ith space to house more than 10,000 food and bever-
Wage products, producers are welcoming the entrance
of Wal-Mart’s Supercentres into Canada.
“We make a lot of products that those folks sell…[and]
our members like doing
business with Wal-Mart,”
says Christopher Kyte, president of Food Processors of
Canada.
Elaine Smith, senior vice-president of Industry Affairs for
the Food and Consumer Products of Canada, says producers
have long anticipated the Supercentres’ arrival. Since many
Canadian suppliers already operate at high volume, the
industry is unlikely to feel increased pressure. Instead, she
says, the stores allow small and medium-size producers to be
listed and have their products sold.
According to business professor Dr. Olav Sorenson, who
teaches Strategic Management at the University of Toronto,
while large suppliers have the capacity to fill Wal-Mart’s
demands, medium-size ones may suffer because they can’t
meet Wal-Mart’s capacity demands. Sorenson says Wal-Mart
is a tough negotiator that collects information about cost
structures for bargaining. However, says Kevin Grier, senior
market analyst at the Guelph, Ont.-based George Morris
Centre, Wal-Mart is no tougher than other powerful centralized buyers. “The reason why it took Wal-Mart so long
to bring the Supercentres to Canada was because the
Canadian market is very competitive,” he says. “Wal-Mart
may find [entering Canada] a challenge.”
Canadian retailers don’t foresee any major changes
either, according to Dave Wilkes, senior vice-president of
Trade and Business Development for the Canadian Council
of Grocery Distributors. Wilkes believes the Supercentres
will increase competition, which is good for the market.
And, notes Dr. Sorenson, since consumers generally choose
smaller retailers for reasons other than price, Wal-Mart won’t
be competing with these stores either, but rather with midsize regional chains that offer
a variety of products and
focus on low prices.
According to Wal-Mart
spokesperson Christi Gallagher,
the company is currently piloting its radio frequency identification system (RFID), an online network that tracks stock
through the supply chain. The system is currently being tested in the U.S., with “no rush or mandate” to roll out to
Canada at present. “We’re waiting to make a decision with
all players before we progress,” she says.
— Rob McMahon
GLOBAL SPOTLIGHT
CHEERS TO YOUR HEALTH
uropean and American beverage companies are jumping on the
functional food craze with products that promise consumers a
variety of nutritional benefits. Vitamin-packed, anti-oxidant-filled
beers, wines and coffees are popping up all over the globe, offering
consumers an innovative approach to drinking to good health. Here’s
a snapshot of the biggest trendsetters:
• Norway-based Med Eq As has released CoffeeSLENDER, a
coffee that promises to help consumers lose weight by lowering blood
sugar levels after meals. Med Eq As claims that moderate exercise
combined with low sugar levels will burn fat deposits. Svetol, the active
ingredient, won Bronze at the Best Innovation in Health Ingredients
Awards 2006, during the 2006 Health Ingredients (Hi) Europe.
• U.K.-based retailer Sainsbury’s has launched “healthy wine”
E
8
• JANUARY/FEBRUARY
2007
Red Heart Cabernet Petit
Verdot, an Australian-made
red wine. Red Heart’s claim
to fame is its anti-oxidant
level, which rings in at 32per-cent higher than other
leading wines.
• Dallas, Texas-based
Stampede Light Beer is a full-bodied German pilsner infused with vitamins. Stampede
Brewing Co., Ltd. owner Lawrence Schwartz, a fitness book author,
aimed to develop a healthy beer that replenishes the B vitamins which
alcohol depletes from the body. The “zero fat – all muscle” beer contains B1, B2, B3, B5, B6, folic acid and folate.
W W W. F O O D I N C A N A D A . C O M
NEWSFILE
Getting the Trans Fat Out
s this year’s deadline approaches
Arequiring small food processors to
list the amount of trans fats in their
products on their nutrition labels, producers are already madly scrambling to
eliminate the dietary culprit altogether.
The baked-good sector in particular
is wrestling with the problem, which
some say is more difficult to resolve
than in other food processing categories. “It’s not as easy as it sounds,”
says John Michaelides, director of
Technical Service for Guelph, Ont.’s
Guelph Food Technology Centre.
“There are a lot of things that contribute to the quality of the product
from the point of view of shelf life and
also from the point of view of texture.”
Federal regulations required large
manufacturers – those with annual
sales in excess of $1 million – to list the
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• JANUARY/FEBRUARY
2007
amount of trans fats on labels by
December 2005, while smaller processors must comply by December 2007.
Paul Hetherington, CEO of the Baking
Association of Canada, says one of the
major problems in reformulating
baked goods to be trans fat-free is that
there are not a lot of substitute fats.
“The supplier community is saying
they have things under development,”
he says. “But when pushed to say when
they’ll be available, they don’t have a
firm date.”
Despite the challenges, Voortman
Cookies Ltd. of Burlington, Ont., was
able to announce in early 2004 that it
had removed trans fats from all of its
55 cookie varieties. With that move,
the company became the first North
American cookie maker to be zero
trans fats. Work on the project actually
began in 2000, says John Bol, manager
of Quality Control and Product
Development, who almost singlehandedly reformulated the company’s
product line.
The company’s raison d’être was
multi-faceted, says Bol. In addition to
bolstering its competitive edge by
developing better products for an
increasingly health-conscious consumer, Bol says the company’s president, Harry Voortman, decided to go
zero trans fats when his daughter, Lynn
Voortman, a homeopathic physician,
refused to eat the cookies because they
contained trans fats.
Through trial and error and a lot of
experimentation in the company’s lab,
Bol replaced hydrogenated soybean
and cottonseed oils with a blend of soy,
canola, palm, palm kernel and sunflower oils. To be trans fat-free, there
can be no more than two grams of
trans fat and saturated fat for a 30-g
serving size. The winning formula
worked because it was moderately firm,
a requirement necessary for baked
goods.
Bol says the greatest challenge he
faced was to reach the two-per-cent
limit. As well, sourcing palm oil was
difficult initially because it was unavailable in North America. Some varieties
of cookies also became too oily because
Burlington, Ont.-based Voortman Cookies
removed the trans fats from all of its 55 cookie
varieties in 2004, becoming the first North
American cookie maker to be zero trans fats.
the fats were softer than hydrogenated
oils. To overcome this, the dough had
to be cooled.
For other manufacturers planning
to make their products trans fat-free,
Bol’s advice is simple: “Get outside
help. A lot of the oil companies, such as
Archer Daniels Midland, have scientists on board.” But most importantly,
he says: “Stick with it. This trans fat
thing is not a fad. It’s a real health
— Carolyn Green
issue.”
A Healthier Fat?
alm oil is staging a comeback
Pthanks to the flap over trans fat.
In the 1960s and ’70s, soy and canola
oil prevailed because their producers
successfully argued that saturated,
fat-filled palm oil was harmful to consumers’ health.
Now medical scientists are proclaiming that palm oil is healthier
because it contains more “good” HDL
cholesterol than hydrogenated soy or
canola oil. Hydrogenation is a chemical
process by which hydrogen is added
to oils to make them a solid at room
temperature. That also stabilizes the
fat, increases product shelf life and
improves product taste. In comparison,
palm oil is naturally stable at room
temperature.
While this is great news for producing countries such as Colombia, Brazil,
Indonesia and Malaysia – it exports
(Continued on page 12)
W W W. F O O D I N C A N A D A . C O M
(Continued from page 10)
about 53 per cent of the world’s supply
– food processors and consumers will
have make adjustments.
The unhealthful effects of hydrogenated oils are not news. “In the early
’80s,” says Bruce Holub, a retired
Nutritional Sciences professor at the
University of Guelph, “the government
had asked a committee of food scien-
tists to study trans fats used in
margarine. We concluded that trans
fats elevated blood cholesterol and
increased the risk of heart disease, so
we recommended that it take steps to
reduce the trans fats levels in margarine
and review the situation within five
years. The government ignored both.”
Many food processors have now
Palm oil fruit
eliminated trans fats from their products in response to competitive forces
and regulations on both sides of
the border to list trans fat content on
product labels. Denmark has also
banned their use, while New York City,
Chicago and soon Toronto will prohibit their use by restaurants.
The cost of finding alternatives such
as palm oil is not a major barrier.
“Switching to other fats costs about the
same,” says Shasha Navzesh, CEO of
Toronto’s ShaSha Bread Co. “But it
takes time and money to adjust your
recipes to the new ingredients.” Or in
Holub’s words, “better late than never.”
— Ken Mark
Rare Honours
len Breton Rare has been named
Gone of the world’s Top 50 Spirits
by Wine Enthusiast magazine. The 10year-old single malt whisky is produced
by Glenora Distillery in Cape Breton,
N.S., and is one of only two Canadian
spirits named to the prestigious list for
2006. In December the distiller also
launched its first batch of Glen Breton
Ice, which according to company, is the
world’s first single-malt whisky aged in
ice wine barrels.
12
• JANUARY/FEBRUARY
2007
W W W. F O O D I N C A N A D A . C O M
Photo: MPOB
NEWSFILE
John Bate and Associates Ltd.
NEWSFILE
recognized as cold
storage experts
IN BRIEF
• AVAC Ltd., a not-for-profit company dedicated to building the eco-
Design Build Engineers
General Contractors
specializing in food processing,
distribution and storage facilities
5800 Ambler Drive, Unit 114, Mississauga, Ontario L4W 4J4
Telephone: 905-625-5646
Fax: 905-238-9957
E-mail: generalinfo@johnbate.ca
Web: www.johnbate.ca
14
• JANUARY/FEBRUARY
2007
nomic viability of value-add agriculture and renewable resource
ventures in Alberta, is investing $5.3 million towards the development of new value-added canola and flax oils. The initiative will
help develop cooking and baking oils that are naturally high in
saturated fat, but which contain no trans fatty acids.
• Women in Food Industry Management has named Debra
Bradshaw, technical sales and specialized food sales representative
at Zep Manufacturing, Entrepreneur of the Year for 2006 for her
newsletter The Food Newz.
• Mississauga, Ont.-based General Mills Canada Corporation has
launched a new online resource for parents (www.everydaycelebrations.ca) that provides tips, games, articles and recipes for the
whole family.
• Lyn, Ont.-based Burnbrae Farms was awarded the 2006 Crystal
Egg Award by the International Egg Commission. The award is
given to the company with the best egg marketing and promotion
campaign.
• Victoria, B.C.-based Rogers’ Chocolates has announced a partnership with Sobeys, Inc. Its products will now be available in 42
Sobeys’ stores across Alberta, Saskatchewan and Manitoba.
• Aeroplan and Pepsi-QTG Canada have teamed up for a multi-year
deal that offers Aeroplan Miles on select Quaker and Tropicana
breakfast products. The initiative, which kicked off in January, is set
to drive higher consumer product consumption, increase purchase
frequency and direct consumer traffic to retailers that sell Quaker
and Tropicana breakfast products.
• Maple Leaf Foods has been given approval by the Manitoba
government to expand its Brandon, Man. plant. Maple Leaf has
committed to implementing new wastewater standards and will
upgrade on-site wastewater treatment systems at the plant.
• Eagle Brand, considered the oldest food product brand name still
in use, is celebrating its 150th anniversary. To commemorate the
milestone Eagle Brand has released a recipe book entitled 150
Years of Magic, available in grocery and bookstores.
• Doris Valade, president of Malabar Super Spice Co. Ltd., has been
included in Profit W100 Canada’s top women entrepreneurs for the
sixth consecutive year.
• The Agriculture and Food Council of Alberta has updated it’s website with a fresh new look and features that make it easier to find
the latest industry information (www.agfoodcouncil.com).
• Cambridge, Ont.-based Grand River Foods, a division of Paris,
Ont.-based Grand River Poultry, was named New Business of the
Year for 2006 by the Waterloo Chamber of Commerce and Junior
Achievement. The award is given to the organization displaying
exceptional innovation while exhibiting outstanding attention to
employees and suppliers.
W W W. F O O D I N C A N A D A . C O M
NEWSFILE
New bottling plant
opens in Winnipeg
here’s a new owner of the former
TMaple Leaf Distillers plant in
Winnipeg. In December, Angostura
Canada Inc. held a grand opening to
show off the refurbished blending, bottling and manufacturing facility in the
city’s west end.
At the opening, the president of
Angostura Canada, Horace Bhopalsingh,
reported that the company spent
$500,000 to renovate the 55,000 sq.-ft.
plant, which became available when
Maple Leaf Distillers, a locally grown
company, declared bankruptcy early last
year. The plant’s capacity is more than
eight million litres a year. Bhopalsingh
expects that the current workforce of
25 will reach 60 by the end of next year.
Trinidad-based, 180-year-old
Angostura Ltd. is the largest distiller in
the Caribbean. The company produces
rum and bitters. Its 11 Canadian lines
include former Maple Leaf products —
Margarita Ice, Platinum Vodka, Norm’s
Sour Power and Hoja Vieja tequilla. Its
products are available in more than
120 countries.
According to Bhopalsingh Angostura
was looking for a processing plant in
North America to complement its
sister companies in Scotland (Burn
Stewart Distillers) and France (Hine
Cognac). Bhopalsingh says that the
company has been well received by
liquor commissions in Eastern Canada,
Manitoba and Alberta. — Myron Love
Canada, found that “23 per cent of all
meals consumed are snacks, compared to 22 per cent for lunch.”
While healthy foods are leading
the way in terms of snacking popularity and frequency, according to Marion
Chan, director of Food and Beverage
for the NPD Group, “Indulgent snacks
represent one-third of all snacking
occasions.” The two trends aren’t necessarily contradictory however, as
Chan points out that “manufacturers,
sensing the trend towards healthier
choices, have increasingly been introducing low-calorie versions of our old
favourites.”
Canada Inc.
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Healthy snacking tops trends
hile consumers are snacking
Wmore today, they’re also becoming more selective in their snack preferences.
According to the NPD Group’s
2006 Snacking Report, fruit is now
the number-1 snacking choice for
Canadians, representing 20 per cent
of snacking occasions. Perhaps driven
by research on antioxidants, chocolate
is the number-2 snacking choice, followed by yogurt. That’s positive news,
especially considering that another
NPD report, 2006 Eating Patterns in
W W W. F O O D I N C A N A D A . C O M
Lipid Based Delivery System
Please contact us at; foodingredients@chemroy.ca
Or call our regional offices at:
In Ontario (905) 789 - 0701 • In Eastern Canada (450) 625 - 0505
• In Western / Central Canada (604) 460 - 7610
FOOD IN CANADA •
15
NEWSFILE
SUPPLIERS’ UPDATE
Brampton, Ont.-based L.V. Lomas Ltd.
has been appointed the exclusive distributor in Canada for GELITA North
America’s GELITA Edible Gelatine and
Gelatine Hydrolysates. • Oakville, Ont.based Continental Ingredients of
Canada (CIC) has acquired the assets of
Abbotsford, B.C.-based Brookside Foods
Ltd.’s chocolate powder and drink crystal
business. The acquisition will allow CIC
to increase its portfolio and better utilize
its manufacturing capacity. • Univar
Food Ingredients has been appointed the
exclusive distributor in Canada for
Cargill’s line of texturants for the food
and pharmaceutical industries. The
How to Cut Bakery & Snack Food Products
Urschel Laboratories, Inc.
manufactures a diverse
line of size reduction
equipment for a variety
of bakery & snack food
applications including:
• Granulation of nutmeats
for confectionery products
and toppings
• Reduction of broken
items including creamfilled cookies for toppings,
coatings, or reuse
• Production of corn masa
for chips and other fabricated snack food products
• Dicing dried and dehydrated fruits for ingredients
or mixes
• Production of nut pastes
and butters used as fillings
• Reclamation of imperfect
chocolate bars and candy
• Slicing potatoes into a
wide variety of chip sizes
and shapes
Our experience with these
and hundreds of other
processing applications
could increase the yield
and production efficiency
of your operation.
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® Urschel is a registered trademark of Urschel Laboratories, Inc.
16
• JANUARY/FEBRUARY
2007
product line includes Xanthan Gums,
Pectins, Carrageenans and Alginates.
Univar will also have access to Cargill’s
Specialty Texturant Blends.
Cargill
recently added to its texturant line with
the acquisition of Degussa’s Food
Ingredient business. This acquisition
allows Cargill to offer a complete line of
Texturant products to the food and pharmaceutical industries, and makes Cargill
a global leader of texturizing and emulsifying ingredients. • Toronto-based
Dealers Ingredients Inc. has moved to a
5,000-sq-ft. facility in Brampton, Ont.
The move has allowed the company to
increase its sales force and respond
more quickly to the growing food ingredient industry. Dealers continues to
expand as a “one-stop supplier” with the
addition of fat and oils, through a
Canadian distribution deal with Columbus
Foods. • Chemical distributor Brenntag
has acquired Montreal-based St.
Lawrence Chemical Inc. • Louisville, Ky.based D.D. Williamson received the first
annual Kosher Compliance Award from
the Louisville Vaad Hakashruth. • Haver
& Boecker presented its HAVER 2006
Innovation award to Bethany, Conn.based Laticrete International for its
co-operation in the development of
clean packaging, protecting the product
and increasing shelf life. • San Diego,
Calif.-based Gen-Probe has announced
an exclusive partnership with 3M to
develop, manufacture and market innovative nucleic acid tests to enhance food
safety and increase the efficiency of testing for food manufacturers. • Citroil
Enterprises Inc. has opened a state-ofthe-art flavour laboratory at its headquarters in Carlstadt, N.J. • Kerry Ingredients
now offers full-service certified organic
capabilities. Kerry has expanded each of
its technology offerings of flavours, cereal, cheese and dairy, lipids, proteins, seasonings and sweet ingredients. In addition, Kerry Group’s Mastertaste division
has developed a collection of organiccompatible flavours, freeze-dried powders, essential oils and oleoresins. •
Dayton, Ohio-based NCR Corp.
announced plans to separate into two
independent publicly traded companies
through the spin-off of the company’s
Teradata Data Warehousing business to
shareholders of NCR common stock.
W W W. F O O D I N C A N A D A . C O M
NEWSFILE
NEW CONSUMER PRODUCTS
• Montreal-based Carriere Foods Inc. has introduced
Arctic Gardens Steammm! a line of frozen vegetables
packaged in a one-of-a-kind microwaveable, self-regulating steam pouch. The vegetable packs are in re-sealable 400-g packages containing two 200-g vegetable
steam pouches, and are seasoned with natural herbs
and olive or sunflower oil. Steammm!, is available in
three varieties: Whole Green Beans, Broccoli and Whole
Baby Carrots; Sugar-Snap Peas, Green Peas and Yellow
Zucchini; and Broccoli, Yellow Zucchini and Red Bell
Peppers. The steam pouches retail for $3.79 across
Canada.
• Consumers looking to enjoy fresh lobster year round
won’t have to go any further than their grocer’s freezer
thanks to Clearwater Seafoods Ltd. Partnership.
The Bedford, N.S.-based company has introduced Clearwater Whole Frozen Lobster,
ready-to-cook, frozen lobsters. The lobsters
are 100-per-cent natural, with no additives or
preservatives, and have been chosen from the
W W W. F O O D I N C A N A D A . C O M
company’s premium “hard-shell” brand of live
lobsters. They retail between $20 and $25 at
Whole Foods, select grocery stores and through
the company’s website.
• Winnipeg-based Manitoba Harvest Hemp Foods
& Oils has launched Organic Hemp Seed Nut, a
nut packed with omega-3 and omega-6 essential
fatty acids. The hemp seed nuts, which look similar to sesame seeds and have a nutty flavour like
pine nuts, contain protein, fibre and numerous
minerals and antioxidants. Hemp seed nuts can
be added to salads, pastas and breads to
enhance flavour and nutritional intake. Manitoba
Harvest processes each package fresh ondemand, selling them in airtight containers to
maintain nutrients. The nuts are prepared in a kosher, U.S.D.A. organic-certified processing plant. The Hemp Seed
Nuts are available in 340-g bags, and
sell for $19.99 at natural food retailers.
FOOD IN CANADA •
17
NEWSFILE
PEOPLE ON THE MOVE
Toronto-based SunOpta Inc. has named
president and chief operating officer Steve
Bromley as chief executive officer. •
Dartmouth, N.S.-based Ocean Nutrition
Canada Ltd. has appointed Kevin Krail
general manager of its new Asia-Pacific
region. • Victoria, B.C.based Rogers’ Chocolates
has named Steve Parkhill
president and COO.
Parkhill replaces Jim
Ralph, who is retiring. • Steve Parkhill
Winnipeg, Man.-based
Manitoba Harvest has appointed Bill
Barker Quality Control manager. • Tom
Hansson has been appointed senior vicepresident of Strategy and Corporate
Development for Chicago,
Ill.-based Sara Lee Corporation. • The American
Egg Board has selected
Joanne C. Ivy to succeed
Louis B. Raffel as presi- Joanne C. Ivy
dent and CEO. • Burnaby,
B.C.-based The Spice Depot, Inc. has
named Adi Muljo president and CEO,
Danny Ferraro vice-president of Product
Development, and Darren Donas vicepresident of Business Development. •
Markham, Ont.-based Premier Manufacturing Support Services of Canada, Inc.
has appointed Todd Ulrich director of
Business Development. • Harry Scholten
has been appointed vice-president, Global
Sales and Account Management, for
Netherlands-based Quest International. •
Kansas City, Mo.-based Multivac, Inc. has
named Jan Erik Kuhlmann president
and CEO. • North Bergen, N.J.-based
Frutarom USA Inc. has named Michael
Meyers and Kris Watson sales account
executives. • Manchester, Mich.-based
Amcor PET Packaging has appointed
William Featherstone vice-president of
Sales for its Beverage Division and Kim
Houchens vice-president of Product
Development for North America. • U.K.based DataLase has appointed Trevor
Bailey non-executive director and Fred
Barnard Business Development manager
for North America. • Rockleigh, N.J.based Takasago International Corp. (USA)
Flavor Division has named James
W W W. F O O D I N C A N A D A . C O M
Buchanan senior flavourist and senior
associate and Alexandra DeAngelis
marketing administrator. • Schenectady,
N.Y.-based Fortitech, Inc. has appointed
Alejandra Gratson and Kevin Krall
formulation scientists and Dana Brown
regional sales manager for the U.S. Mid-
Atlantic, upper Mid-West and Canada
(excluding B.C.). • Geneva, Ill.-based Fona
International has appointed Ray Hartman
senior flavourist and Rebecca Wagner
senior scientist to the Sweets and
Confections Business Unit and Amy
McDonald director of Sales.
TEAMWORK
DELIVERS
THAT
To succeed in any industry, you need to keep ahead
of your competition. In any endeavor, individual
performance needs to be backed up by a team of
highly trained experts.
By combining experience, education and technical
training, the professionals at L.V. Lomas are able to
give your company the competitive advantage.
From order entry to delivery, the team at L.V. Lomas
will keep your supply chain on the right track.
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the race! Join a winning team.
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ON Ph: (905) 458-1555 PQ Ph: (514) 683-0660 West CAN Ph: (604) 521-7779
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your FIRST choice for responsible chemical distribution
FOOD IN CANADA •
19
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