Co-op Atlantic is on the receiving end of Sobeys grocery and gas businesses after store delegates from around 60 co-ops voted last week.
Spokesperson for Co-op Atlantic, Mike Randall, told CBC News that more than 150 delegates from around atlantic Canada were involved in the vote.
“Member-owners voted overwhelmingly in favour of accepting the board’s recommendation to exit from the food and gas business and to proceed with the proposed sale of assets to Sobeys,” he said.
“There are a number of factors that still have to be addressed. The deal has to be finalized, it has to be approved by the Competition Bureau, so until that’s done there is no final decision.”
Closing the deal could take up to two months owing to Compeitition Bureau’s approval of the deal.
Sobeys would gain control of the Co-op wholesale business as well as five unidentified corporately owned Co-op Atlantic grocery stores in the region. There are four other corporate stores that were not part of the deal.
Prince Edward Island has three corporate stores — two in Charlottetown and one in North Rustico — and it’s not clear how these stores will be affected.
Co-op Atlantic also supplies some independent grocers under the VillageMart and ValuFoods names and 60 independent stores under the Rite Stop banner.
Most Co-op grocery stores in the region are independently owned, and if the Sobeys deal is approved, those stores will have to find new wholesale suppliers.
Co-op Atlantic votes to sell to Sobeys
Whole Foods sheds prices to attract more millennials
Raising its healthy eating banner higher, Whole Foods is aiming to impress the millennials with a new chain of stores that offers cheaper yet healthier food options.
John Mackey, co-CEO, said that the store would never compromise on the quality of its product, instead, it will focus on reducing prices through “lower capital, lower cost and perhaps even lower labour costs.”
He added that the new stores will be additional to the existing chain and will not become an alternative for those shopping at their current stores.
Investors, however, take a different view of the move, expressing concern as share prices for Whole Foods fell notably when the new chain was announced.
To draw in more traffic, the natural food market giant has recently pulled tricks out of its bag, mainly an expansion in its rewards program and the aggressive pursuit of advertising its “values” slogan to buyers.
According to executives, the Value Matters campaign has, so far, been successful, and will only be expanded to include multimedia tools such as video, digital display, mobile and social ads.
Critics pointed out the slow rise in sales during this quarter; 0.8 per cent as compared to 2.4 per cent in the same quarter a year ago. Store officials claim this is due to more locations sprouting up and eating up the traffic for other stores close by.
The increase in competition from many different channels and the ever increasing demand for natural foods and products is what has pushed Whole Foods to step up its game.
Wal-Mart plans on delivering a blow to shipping giant Amazon
In a bid to outdo current shipping and delivery giant Amazon, this summer Wal-Mart is launching a test drive into the realm of unlimited shipping service for customers.
Amazon charges a subscription fee of $99 per year for its Prime service guaranteeing a two-day delivery of unlimited goodies. Wal-Mart’s beta service, available only through invite at the moment, will charge a mere $50 per year with a three-day delivery promise.
In addition to availability being limited to exclusive invite-only users right now, the service will also only be offered in areas limited to a certain geographical local. No further details regarding delivery radius were shared by Wal-Mart.
With this offer, subscribers will be able to shop through a million of the company’s bestselling items. At the moment, Wal-Mart, unlike Amazon, does not offer or plan to offer free audio and video streaming.
European lab and testing giant makes headway in North America
Eurofins is looking to strengthen its position in the North American food-testing market after acquiring QC Laboratories in U.S.A. and Experchem in Canada.
Dr. Gilles Martin, CEO Eurofins, the line of competencies and testing QCL is already following are a perfect fit for where Eurofin wants to take its testing footprint in the U.S.
QCL provides testing facilities for environment, dairy, and analytical food tests, with a reference laboratory located outside of Lancaster Laboratories Environmental campus in Pennsylvania.
The Canadian Experchem provides analytical testing services with competence in nutrceuticals testing. Located in Toronto, the lab employs 95 staff and generates revenues in excess of Cdn $10 million.
Martin added that the acquisition of a key facility in Canada will reinforce its capabilities in key niche markets. He hopes that with the expertise Eurofins brings to Experchem will help strengthen its position in Canada.
Wal-Mart Canada Grabs Some Target Stores
Wal-Mart Canada has made an agreement to acquire 12 former Target Canada stores and one distribution centre now that Target has said goodbye to its locations north of the border.
The deal of the Target leases, one owned property and the distribution centre, amounts to $165 million and is part of a $350 million expansion project, says the Globe and Mail.
The locations Wal-Mart has nabbed are in British Columbia, Manitoba, Ontario and Quebec. The new stores and distribution centre should create about 2,400 in-store jobs, 1,000 in the centre and 1,500 construction jobs.
After Target Canada failed to make an impact in the country, it closed all of its 133 stores. The Wal-Mart transactions are subject to approval from the court under the Companies’ Creditors Arrangement Act.
“Wal-Mart is committed to the Canadian market, and this agreement helps us accelerate our growth plans ensuring more Canadians have access to our low prices,” said Dick Van der Berghe, Wal-Mart Canada’s president and chief executive officer, in a press release.
“The 13 stores acquired are well situated, and we are excited to bring Wal-Mart’s successful Supercentre offer to customers in these markets.”
More Canadians Shopping Online
While many have tried it, it looks like more and more Canadians are making it their preferred method of shopping – online. Data collected from Canada Post showed that about 76 per cent of Canadian households shopped online in the last year, according to the Canadian Press.
And those who shop online between four and 10 times per year are considered frequent online shoppers, and account for almost a quarter of the traffic. Canadians are also buying differently than they used to. Toy and game shipments saw a 37 per cent rise in the first quarter of this year.
“Consumers are dipping their toes into e-commerce, testing the waters, and becoming very quickly converted,” Danielle Doiron, director of parcels and e-commerce market development at Canada Post, told the Canadian Press.
It hasn’t been easy for retailers, with customers ordering larger items that have higher shipping costs, but can be worked around by ordering pick up at the store or through a depot.
Best Buy has taken things a step further by offering their customers to have the item shipped from a store if they are unable to find it on the website. This feature launches later this month.
“We will make any product available to any customer at any time,” Thierry Hay-Sabourin, vice-president of e-commerce for Best Buy Canada, told an industry audience at the Etail conference on Monday, according to Canadian Press.
Best Buy recently closed its Future Shop locations and is currently turning them into Best Buy locations.
Valeant Pharmaceuticals to Webcast 2015 Annual Meeting Of Shareholders
Valeant Pharmaceuticals International, Inc., has announced a live webcast of the company’s annual meeting of shareholders. The meeting and webcast will be held on Tuesday, May 19, 2015, at 9:00 a.m. ET at the International Headquarters, Laval Office: 2150 Saint Elzear Blvd. West, Laval Quebec, Canada H7L 4A8.
Only shareholders of record at the close of business on the date will be entitled to vote at the meeting and any adjournments or postponements thereof.
A live webcast and audio archive of the presentation will be available on the company’s website. Click on “investor relations,” and then the link to “events and presentations.” Participants should allow approximately up to 10 minutes prior to the presentation’s start time to download any streaming media software needed to listen to the Internet webcast.
Walmart Names New Leaders in Restructuring
Walmart has named new EVPs for its Neighborhood Market and Supercenter divisions as part of their restructuring. According to Supermarket News, this includes several new appointments and a new operations structure which falls under the watch of U.S. COO Judith McKenna.
Mike Moore, who previously served as EVP of Walmart’s Neighborhood Markets division has been named EVP of Supercenters for Walmart, while Julie Murphy, formerly the EVP of Walmart West, assumes Moore’s role as EVP for Neighborhood Markets.
“Mike and Julie are outstanding leaders whose long-term experience within Walmart operations has equipped them to take on these expanded roles,” McKenna said in a memo.
In another move, Joaquin Gonzalez Varela, EVP-Walmart East, is retiring and his job will not be filled. Varela, a 25-year employee of Walmart, has served in that role since 2008 and will retire effective June 15.
“A culture champion and passionate leader whose enthusiasm has inspired associates across our company, Joaquin has been a role model for several of our current and future leaders,” McKenna said. “We want to thank him for his long service and contributions to our company.”
In addition, the Bentonville, Ark., company is restructuring its central operations team, naming current SVP for innovations Mark Ibboton to a new role as EVP-central operations U.S. His new role involves asset protection and global e-commerce partnering to start up home grocery shopping, McKenna said.
“Centralizing these activities within one team will further align and simplify efforts that affect our stores,” McKenna said. “Under Mark’s leadership, we’ll continue our tremendous progress with our focus on the customer.”
Walmart also said that Pam Kohn, EVP-Walmart Realty, was leaving the company effective June 2. Her departure will allow the retailer to align its U.S. realty team to report to McKenna. JP Suarez, currently SVP of real estate strategy, design and construction, has been named SVP-Walmart Realty. In his current role, Suarez has led real estate growth strategy and has identified efficiencies in the area, McKenna said.
Organic & Natural Health Association Works with New York Attorney General’s Office
According to Power Engineering International, The Organic & Natural Health Association (Organic & Natural) and the New York Attorney’s office are working to bridge communication gaps between consumers and manufacturers in regards to dietary supplement and herbal products. The meeting was brought about in response to the investigation of herbal products being led by New York Attorney General Eric Schneiderman.
“Our meeting was encouraging as it is clear we have common goals that revolve around ensuring consumers are purchasing products that can be verified for quality ingredients at the earliest possible point in the manufacturing process,” said Karen Howard, CEO and executive director of Organic & Natural. “There has been an overemphasis on scrutinizing testing methods by the natural products industry when the real issue at hand is elevating transparency to the point that consumers feel fully informed and empowered by their purchase. This can only be accomplished through honest relationships and full disclosure between companies and consumers.”
The Organic & Natural Health Association was formed eight months ago by industry leaders and experts to look into the lack of communication between business and consumer groups in regards to organic and natural products. The group has worked towards developing a certification program for ‘natural’ products, including forging a definition of the term ‘natural’ based on consensus among business and consumer organizations; and facilitating scientific research on supplement ingredients and products that impact a person’s health and wellbeing. Organic & Natural is the first trade organization to meet with the New York attorney general’s office on his investigation into the herbal supplement industry.
“Ensuring supply chain integrity must start at the earliest possible point, which means manufacturers of raw ingredients need a strong working relationship with farmers and that appropriate cGMPs (current good manufacturing practices) be instituted at the point where raw materials are manufactured,” said Todd Harrison, president of Organic & Natural. “It would make sense to apply the FDA’s current cGMPs (code 21 CFR Part 111) to raw material manufacturers. Not only does it provide flexibility but would also be welcomed by branded ingredient manufactures that are already following cGMPs but are forced to compete with lower quality ingredient manufactures that have minimal, if any, cGMPs.”
Harrison believes it is also important for the FDA to clarify the obligations of private-label distributors under 21 CFR Part 111, as there is confusion to their responsibility evidenced in the warning letters issued by FDA.
“Applying Part 111 is necessary to supply chain integrity,” said Harrison. “We believe it is crucial to transparency and traceability when it comes to herbal and dietary supplements.”
Organic & Natural will file a citizen petition with the FDA, requesting the FDA amend current regulation in order to bring raw material manufacturers under 21 CFR Part 111 and to clarify the private-label distributors obligations under those standards.
“Our intention is to keep an open dialog with the attorneys general offices on supply chain integrity and to work with them on the primary goal of making sure consumers have confidence in the authenticity and purity of the products they are purchasing,” said Harrison.
Organic & Natural plans to host a supply chain integrity webinar for companies within the industry on June 24.
NBTY Appoints Chief Scientific Officer
According to Drug Store News, NBTY, Inc., a global manufacturer, marketer, distributor and retailer of vitamins and nutritional supplements, has announced the appointment of Matthew Roberts, PhD, to the newly-created role of Chief Scientific Officer. In this role, he will create and execute product development strategies, enhancing product offerings and driving product advancements.
“Matthew is an industry veteran who has demonstrated excellence in driving product innovation and growth-phase opportunities across the food, nutrition and well-being sectors,” said Steve Cahillane, President and Chief Executive Officer at NBTY. “We’re looking forward to the expertise he will bring to NBTY and the positive impact his role will have on our brands, customers and consumers.”
With more than 20 years of experience in the product development field, Matthew comes to NBTY from Abbott Nutrition, where he was most recently Divisional Vice President of Global Product Research and Development. He helped bring many new products to market each year, representing hundreds of new SKUS across all categories of Human Nutrition. Prior to this role, Matthew held the position of Divisional Vice President of Strategic Research. Previously, Matthew spent more than 10 years with Nestle, where he was responsible for new product introductions, ventures, and major acquisitions.
Matthew has authored 34 peer-reviewed scientific publications and 11 professional publications, and holds multiple patents. In addition to his role as CSO, he will be a member of the NBTY Scientific Advisory Council.
