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Report shows Canadian trend of cross-border shopping from 2006 to 2012

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The U.S. experienced a retail job decline in August

According to a report by Statistics Canada, Canadian purchases from across the border have increased by 72 per cent from 2006 to 2012, rising from $4.7 billion to $8 billion. Total retail sales for Canada also grew by 20 per cent to $468 billion. The results are due to the rising currency in that time period, averaging about 95 U.S. cents.

“About three-quarters of Canadians live within 160 kilometres of the Canada-U.S. border. Therefore, many consumers use their relatively easy access to the United States as a shopping option,” says the Statistics Canada report. “This is especially true for those living right along the border when it comes to shopping for goods that are traditionally cheaper in the United States, like gasoline and groceries.”

GNC welcomes new people to administrative team

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U.K.-based Hantian Labs acquires Canadian nutraceutical company

Pittsburg-based supplement retail brand GNC has appointed Jeffrey Hennion as the new executive vice president, chief marketing and ecommerce officer. Daisy Vanderlinde has also been appointed as the new chief human resource officer. In addition, Carl Seletz, senior vice president of international business development, will be leading the domestic and international franchise operations.

Hennion has previously worked for GNC in the marketing and ecommerce departments from 2011 and 2012, as well as for Dick’s Sporting Goods for 10 years. Vanderlinde joined the team adter working at Office Depot as EVP of human resources. She also worked in the human resources department of AutoZone, Tractor Supply, and Marshalls.

“Having started his career on the financial side, Jeff understands the importance of thoughtful strategies grounded in sound financials. He also is a seasoned executive in the field of marketing and ecommerce, each of which are critical to the growth strategies of GNC,” GNC CEO Michael Archbold told Nutraingredients-USA. “We are excited to see him return to the GNC team.”

Puresource celebrates its 25th anniversary

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Puresource celebrates its 25th anniversary

This year marks the 25th anniversary of natural products distributor Puresource. The company celebrated by holding an Employee Appreciation Day and celebrated with a delicious catered lunch and gifts for everyone. Puresource staff dressed up in their favourite team sports jerseys, watched sports clips and topped off the event with goalie shots in the parking lot. Congratulations on your 25th anniversary, Puresource!

DuPont Pioneer and Cargill collaborate on healthier soybean oil

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DuPont Pioneer and Cargill collaborate on healthier soybean oil

DuPont Pioneer and Cargill have announced that together they will contract with farmers in the Sidney, Ohio region to grow Pioneer brand soybeans that contain the Plenish high oleic trait starting in 2015.

The soybeans will then be delivered to a participating elevator or to Cargill for processing. The farmers will be eligible for a processor-paid incentive for producing and delivering high oleic soybeans. This comes as demand grows for Plenish high oleic soybean oil in the food and industrial sectors.

“Ohio soybean growers have always been innovators in adopting new technology to add value to their soybean production,” said Randy Minton, DuPont Pioneer business director, in a press release. “This 2015 Plenish high oleic soybean contracting program with Cargill will provide an opportunity for growers to earn more income per bushel and strengthen long-term market demand for the soybean industry.”

“The demands of the global marketplace require constant innovation,” says Jeff Kazin, vice president of oils trading for Cargill, in a press release. “The Plenish high oleic soybean program aligns with Cargill’s stated goal of helping farmers prosper and providing innovative solutions for our food customers. We look forward to working with DuPoint Pioneer to better serve the total supply chain, from farmers to customers, to create greater value for all.”

The creation of this high oleic soybean oil was a milestone for DuPont Pioneer as it brings product innovation to the soybean value chain. The enhanced stability of this product provides longer frying life for restaurant use and longer shelf life in packaged goods. It has 0g of trans fat per serving and 20 per cent less saturated fat than commodity soybean oil, making it a better option for health-conscious customers.

Plenish high oleic soybeans are nearing completion of global de-regulation, and have already been approved in over 90 per cent of U.S. soybean export markets. For more information on these high oleic soybeans, please visit www.plenish.com.

Canadian retailers are slow to move online

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Thrive Market launches organic e-commerce site at wholesale prices

According to a new report by the Internet Association, although Canadians are some of the biggest users of the Internet in the world and partake regularly in online shopping, Canadian businesses have been slow to bring their goods online compared to retailers from other countries.

Only three per cent of Canadian retail stores have an e-commerce presence in addition to their bricks-and-mortar storefront, as compared to 23 per cent in the United Kingdom.

The Canadian government has just unveiled its digital strategy, Digital Canada 150. The Internet Association believes retailers have to make up for lost time by acting quickly.

The report suggests a Digital Renovation Tax Credit that would help retailers get started using digital technologies and learn how to adhere to online privacy laws for businesses.

Canada loses preferred status in the United States Perishable Agricultural Commodities Act

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U.S. Border Communities Benefit from Falling Loonie

Canada’s preferred status for the United States Perishable Agricultural Commodities Act (PACA) has been revoked, which could amount to millions of dollars lost by Canadian growers and shippers.

PACA gave Canadian farmers and produce distributors the right to file claims against U.S. buyers who left bills unpaid for imported goods, including root vegetables, greenhouse produce, apples and cherries. Buyers would have to follow the rules or face losing their license.

While previously, farmers only needed to pay a $100 fee for filing a claim, now they must post double the value of the debt in order to proceed through mediation and claiming what is owed to them.

Without the threat of having their license revoked, Ron Lemaire, president of the Canadian Produce Marketing Association, predicts U.S. buyers will allow losses to total tens of millions of dollars.

According to Lemaire, the decision was made because Canada had been discussing giving U.S. buyers the same protection in its trade agreement for decades without coming to a resolution, and the U.S. eventually lost patience. The Alliance hopes to employ a similar plan in Canada soon to persuade the U.S. to reverse its decision.

Metal objects found in two PEI potatoes

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Metal objects found in two PEI potatoes

Two consumers in Atlantic Canada have each found a metal object inside PEI potatoes that may have originated from Linkletter Farms Ltd., prompting a police investigation in a possible case of food tampering.

In both instances, consumers in Newfoundland and Labrador found the metal pieces, the first in Labrador City and the second was purchased at a store in Carmanville, although these brands of potatoes are sold throughout Atlantic Canada. The Canadian Food Inspection Agency has recalled all of the potatoes shipped out by the company since late September. There have been no reported injuries.

The company has voluntarily withdrawn its Link and Market Town brands of potatoes after hearing of the complaint. Police are asking consumers in Atlantic Canada to be aware and check for metal objects in potatoes supplied by Linkletter Farms. The RCMP also ask that consumers who find any pieces of metal not throw them out, but instead call the police.

Farm Boy will open two new Ontario locations in 2015

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The Cleanse week Windsor wraps up with all-natural beauty expo

Ottawa-based grocery chain Farm Boy opened its 27,000 square-foot London, Ont. location in June of this year, and has plans to open two more in the city next year. The locations are slated for Masonville Mall in Fanshawe Park, and near Beaverbrook Avenue, and will be 23,000 and 28,000 square-feet, respectively.

The grocery store will feature similar aspects as its other locations, including fresh produce, sustainable seafood, artisan cheese and gluten-free and organic products.

“Our London customers have embraced Farm Boy, and the fresh unique shopping experience we offer,” said Jeff York, company CEO, in a press release. “We are pleased to be furthering our reach in the community with two more stores, delivering the same fresh, wholesome foods – with the convenience and quality our customers count on.”

The two new stores, the company’s 16th and 17th locations, will create 260 jobs for the London region. In addition, Farm Boy announced a donation of $25,000 to the London Health Sciences Foundation and Children’s Health Foundation, to be given out over five years.

Sears Holdings Corp plans to sell most of its stake in Sears Canada

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Sycamore Partners may purchase Sears Canada

In an effort to generate money before the holiday season, Sears Holdings Corp plans to raise as much as $380 million by selling off 40 million shares of Sears Canada Inc. through distributing its rights. They will be put on sale for its shareholders on Oct. 20 at $10.60 per share.

Sears Holdings has experienced losses since mid-2012 and responded by closing stores, cutting inventory and selling off property and assets. Its stake in Sears Canada will fall from 51 per cent to a low 12 per cent. Sears Canada will also apply for a Nasdaq listing.

Sears Holdings has been attempting to raise funds for a while, including a short-term loan of $400 million taken last month from CEO Edward Lampert’s investment firm ESL Partners LP. Selling off its shares of Sears Canada will help the parent company reach a total of $1.45 billion raised this fiscal year. As of August 2, the company has $829 million in cash and equivalents and long-term debt and capitalized lease obligations of $2.82 billion.

Walmart Canada raises grocery prices at its Supercentres

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Walmart Canada raises grocery prices at its Supercentres

In a move that may benefit its competitors, Walmart Canada is raising its grocery prices in some markets, according to a new report by BMO Capital Markets. Analysts say they have witnessed trends that suggest, “Walmart Supercentre is finally passing through higher wholesale grocery costs in the form of retail grocery inflation.”

“Based on our surveys, [Walmart] had not been passing through the cost of wholesale grocery inflation to its customers until the last few months, while other grocers had started to slowly do so since the beginning of 2014,” said the report.

Statistics Canada noted a 1.2 per cent increase on food retail prices in 2013, led by fish, which experienced a 4.1 per cent price increase, and vegetables, which increased by 5.2 per cent.

“Retail inflation at Walmart Supercentre is clearly a positive development for other grocers as overall industry retail grocery inflation would not be sustainable if Walmart Supercentre were to hold its prices flat,” BMO Analyst Peter Sklar told the Financial Post.

According to BMO Capital Markets, while large grocers inflated their prices during the second quarter, food volume dropped. The 2014 Food Price Index Report by the University of Guelph predicted retail food prices would grow from 0.3 to 2.6 per cent this year.