sweet beginnings - Canadian Manufacturing

NE WS
FILE
The Voice of the Canadian Food & Beverage Industry
Cancer-fighting food top sellers
oes the stunning success of a Quebec book about
Dhow food chemistry can fight cancer suggest widespread public interest in using diet to stay healthy? Richard
Béliveau thinks it does – and he’s happy for it. “Knowing
your enemy is always a good strategy,”
says Béliveau, one of Canada’s leading
biochemists and author of Foods That
Fight Cancer (McClelland & Stewart),
the English-language version of his
runaway bestseller released on May
23. The book’s French edition has sold
150,000 copies since it was launched
last August, making it the fourth-best
selling book in Quebec behind the
likes of the DaVinci Code and the latest Harry Potter novel.
According to Béliveau, the book’s
success is due to its pleasing design,
user-friendly format and up-to-date
information about cancer, food science and the properties of foods that actively seek out and
destroy cancer cells. “I like to tell people that it’s a reference book that’s easy to read,” says Béliveau, chair of the
SWEET
BEGINNINGS
he first Canadian Sweets Expo took place in mid-May in Toronto,
proving to be a hit with chocolate and sugar-lovers young and
old. The two-day event attracted approximately 70 exhibitors, many
of them local companies, showcasing innovative confectionery.
Products included everything from gum,
licorice and hard candies, to fudge, high-end
chocolates and even sweet doggie treats.
Although there were more than enough
indulgent products on hand, many exhibitors
T
W W W. F O O D I N C A N A D A . C O M
department of prevention and treatment of cancer at the
Université du Québec à Montréal, and the director of the
molecular medicine laboratory at Ste-Justine Hospital.
“There’s a lot of hard science, but it’s set out in a very
accessible fashion.”
Dedicated to “children everywhere who are suffering
from cancer,” the book makes a forceful case in favour of
diet as a preventative for cancer, now the leading cause of
mortality in Canada. In particular, it promotes the consumption of edible plant products that contain chemicals
that actively seek out and destroy cancer cells before they
develop into a clinical health problem. “Genetics give a
predisposition (to develop cancers), but there is no doubt
that we can protect ourselves by eating the right foods,”
says Béliveau. He added that the regular consumption of
certain foods – notably cabbages (“a tumour’s sworn
enemy”), garlic, onions, soy, turmeric, green tea, berries,
omega-3s, tomatoes, citrus fruits, wine and chocolate – is
akin to giving the body daily doses of chemotherapy.
In the book, Béliveau explains how and why immobile
plants have developed chemicals that help them ward off
mushrooms, bacteria and other
microbacterial foes. By making the
right dietary choices, he argues, people
can reap a harvest of natural protection. “Think of cancer as a seed and
the food we eat as the soil and the
environment we create that helps it to
grow,” he says. The success of his
book, adds Béliveau, shows that people are interested in protecting themselves through diet.
The Canadian food industry
appears to be taking notice – albeit
slowly. Campbell’s line of V8 vegetable
cocktails, for example, carries the following notice from Health Canada: A
healthy diet rich in a variety of vegetables and fruit may
help reduce the risk of some types of cancer.
– Mark Cardwell
displayed products that were sugarfree and low fat or that had energyboosting properties. Several unique
organic and fair trade products
were also featured.
Show owners Intev Productions
Inc., a Toronto-based exhibition
organizer, expected approximately 15,000 people to tour the premiere show. Highlights included cooking, health and educational
seminars, candy-themed fashion shows, a “mascot battle” and even
Fear Factor “sweets style.”
The Sweets Expo will take place in Montreal July 8
and 9, and in Vancouver Oct. 7 and 8. Already the
organizers are planning a four-day Toronto event for
2007, with two days devoted to trade only.
FOOD IN CANADA •
9
NEWSFILE
The buzz about Blackfly
J
ust in time for patio season,
London, Ont.-based Black Fly
Beverage Company is launching a
product as colourful and fun as beach
balls.
The ready-to-freeze foil tubes
called Vodka Infused Spiked Ice arrive
on the heels of the company’s
one-year anniversary selling cranberry-blueberry vodka cooler. “It’s a cool,
innovative product that’s never been
seen in Canada,” says Cathy SiskindKelly of the spiked ice. Siskind-Kelly
and husband Rob Kelly founded the
company, which pays homage to the
quintessential Canadian insect.
While the freezer concept occurred
to Kelly while sipping daiquiris in a
southern locale, it also has a practical
side – aseptic packaging takes the fear
out of unsafe water. “We think there
will be a shift in the industry that
will go to aseptic packaging, especially in southern markets,” says Kelly.
The seven-per-cent alcohol drink,
packaged in 100-mL tubes (nine for
$8.95), will be available in Ontario
this summer.
With no prior beverage industry
experience, creating the product was a
learning curve for the duo. Kelly previously owned a landscape company
and Siskend-Kelly a construction
company. “And, it was a new concept
for the LCBO to consider,” says
Siskend-Kelly.
Originally slated to launch in
May, the product was delayed a few
weeks to accommodate a government
request for a uniquely shaped pack
to differentiate the product from
the frozen treats marketed to kids.
As well as altering the packaging, to
keep the product suitable for mature
tastebuds the alcohol taste is not
masked, and the flavours – strawberry-rhubarb, blackcurrant-blueberry,
and cranberry-blueberry – are more
sophisticated. The tube also requires
scissors to open.
Marketing to aged 30 and up, customers, the company intends to target
a wide demographic through festivals
and large outdoor licensed events.
Plans also include expanding distribution into private stores in Alberta,
followed by the rest of Canada.
– Melanie Chambers
10
• JUNE
2006
W W W. F O O D I N C A N A D A . C O M
NEWSFILE
Tax cut a boon to producers
n May the federal government
released its 2006 budget and in it
came the news that the feds would be
reducing the GST rate to six per cent.
The new rate takes effect July 1, 2006.
What does this mean for food
manufacturers? Well for one thing,
I
the lead time means producers can
start working now on their accounting systems to be ready to implement
the tax change on July 1. Deborah
Taylor, a partner in KPMG LLP’s
Indirect Tax practice, says testing
those systems now is a good idea.
“Given that we have some time to
deal with this, it may be prudent to
actually test the system before implementation,” she says. “Test that the
rate change will be successfully implemented.”
As for how it will affect food manufacturers, in many cases most basic
food products are zero rated and so
not subject to tax. “So it’s not going to
affect the actual rate of tax that they
charge or pay on basic food products,”
she says. What it will do is affect products, which are GST applicable, such
as many confectionery items. “For taxable food products where you do have
to pay GST on your inputs and charge
GST on your outputs, you have to
adjust your systems to make sure that
they will take into account the reduction in costs,” says Taylor.
The good news is that all fixed
costs, such as energy or transportation,
will go down by one per cent. So will
any office administrative expenses,
overhead, advertising and the cost of
computers, says Taylor. Goods imported into Canada will also be taxed at
the six-per-cent rate on or after July 1.
Finally, from a cash flow perspective it means food companies will
have to finance less GST. “In other
words,” explains Taylor, “to the extent
that they have to remit the tax before
their customers actually pay them
they would have to finance less.”
Final curtain for distillery
he curtain has come down on the
Tlong drawn out saga of Maple
Leaf Distillers. On May 3, a Manitoba
Court of Queen’s Bench judge
approved the sale of the bankrupt
Winnipeg-based company’s assets –
including its distillery plant, bottling
and mixing equipment, intellectual
property and remaining inventory
– to Angostura Ltd. for approximately
$6.5 million. Maple Leaf and its
holding company, Protos International, owe creditors an estimated
$23 million.
It’s a sad end to a company that
started out just seven years ago with
such promise and ambition. Founder
12
• JUNE
2006
W W W. F O O D I N C A N A D A . C O M
NEWSFILE
Costas Ataliotis was a successful
businessman who had previously been
an auto dealer and also operated a
water park in his native Cyprus. The
company began as a producer of a line
of spirits, liqueurs and ready-to-drink
cocktails. At one point, Maple Leaf
Distillers was ranked as one of
Manitoba’s fastest growing companies.
In his efforts to expand his business, Ataliotis attempted to negotiate
deals with international players, such
as Trinidad-based Angostura. Maple
Leaf had also bought the assets of a
failed Winnipeg microbrewery with
the idea of adding beer to its product
line. Most of Ataliotis’ deals – which
were announced with much fanfare –
fell through. In some cases, this was
due to a disagreement after the fact
over what was agreed to. In other
cases, Maple Leaf lacked the capacity
to provide the volume of product
promised. While the company did
make money, almost $5 million in
sales in 2004, management consistently spent more than what the company made.
Protos International also bought
a share of the Salisbury House restaurant chain and was in charge of managing the chain. As reported in the
Winnipeg Free Press on April 26, in
order to stave off bankruptcy Protos
Management took to recycling
cheques from Protos to Salisbury
House to Maple Leaf, a practice that
gave the struggling company access
to an ever growing line of credit. The
practice continued throughout much
of 2005 until the board of Astra
Credit Union, the trust company
where the accounts were held, caught
on to the practice and fired the senior
manager who was allowing the
cheque cycling.
Astra Credit Union is Maple Leaf ’s
largest creditor, and the credit union
is out about $7.5 million. Protos and
Ataliotis and his partner, David
Wolinsky, also face several lawsuits
from creditors and investors.
– Myron Love
W W W. F O O D I N C A N A D A . C O M
A BETTER WAY TO CLEAN PRODUCE
“Prewashed lettuce” may be music to some people’s ears. Unfortunately, that lettuce can also often
be contaminated with bacteria. Keith Warriner, a University of Guelph professor, along with
researcher Christina Hajdok, have found a way to more effectively clean produce. According to the
university’s website, the two have applied the same method used to decontaminate food cartons
to vegetables. Warriner artificially contaminated tomatoes, cauliflower, iceberg lettuce, romaine lettuce, Spanish onions and broccoli with Salmonella. After “cleaning” the vegetables “we managed
to achieve 99.999-per-cent inactivation of the Salmonella,” he said.
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FOOD IN CANADA •
13
NEWSFILE
NEW CONSUMER PRODUCTS
• The 100-calorie phenomenon is still going
strong with Toronto-based Kraft Canada
Inc. launching Thinsations in Canada.
Thinsations are thin, crisp cookies available in 100-calorie packs with flavours
including Chips Ahoy!, Oreo and Honey
Maid Cinnamon Grahams. Each 23-g pack
serving contains 20 to 25 cookies with no
trans fats, no cholesterol and only two to
three grams of fat per serving. Thinsations
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Racine, WI-
Wisconsin team uncovers
secret to great tasting cookies.
After years of exploration by R&D teams from around the world,
the secret of rich – yet affordable – great tasting cookies was
discovered by a team from Butter Buds Food Ingredients. The
quest, which led to remote corners of the globe – finally ended
in the company’s own application lab.
Team leader Bill Buhler said, “I remember my Grandma saying
that lots of butter made cookies taste rich. Judging from today’s
store-bought cookies I guess butter’s been forgotten or just costs
too much. But what if it’s not butter, but the flavor of butter, that
accounts for the richness?”
“Success came when our applications team made cookies using
Butter Buds®, a proprietary natural butter concentrate. They
were delicious!”
Adding Butter Buds® to cookies made with vegetable fat made them
taste like they were made with butter, but at a fraction of the cost.
Even low-fat cookies had rich flavor and better mouthfeel.
When asked to comment on how rival teams must be feeling
in the shadow of his team’s achievement, Buhler said, without
apology, “That’s the way the cookie crumbles.”
Tel: 905-673-7774 ■ Fax: 905-673-7779
Butter Buds®. Discover them for yourself.
2330 Chicory Road ❘ Racine, WI 53403 ❘ 262.598.9900 ❘ Fax: 262.598.9999
800.426.1119 ❘ e-mail: [email protected] ❘ www.bbuds.com
Butter Buds® is a registered trademark of Cumberland Packing Corp.
14
• JUNE
2006
A Division of Cumberland Packing Corp.
are available across Canada at a suggested
retail price of $2.99 per box (with six packs
per box).
• Making healthy dinners quickly can sometimes be a challenge. Toronto-based Maple
Leaf Consumer Foods Inc. is trying to make
planning dinner a little easier with its new
line of Fully Cooked Roasts. Part of the
Health Check program – a program created by the Heart and Stroke Foundation –
the roasts are ready to serve in about 10
minutes from the microwave. The line
includes Beef Pot Roast in Homestyle
Gravy, Turkey Breast in Homestyle Herb
Gravy, Shaved Roast Beef in Original BBQ
Sauce, Pork Roast with Apples and
Cinnamon, and Chicken Breasts in a Sweet
and Sour Sauce. The roasts are available in
retail stores across Canada for $9.99 each.
• Most people have something cold to help
them cool off in the summer. Now how
about something for our four-legged
friends? Nestlé Purina PetCare is launching Frosty Paws Frozen Treats for Dogs in
Canada this summer. According to the
company Frosty Paws is nutritionally balanced for dogs and is fortified with quality
protein, vitamins and minerals. The product has no added sugar, artificial flavours
or colours, and is gluten-free. Although it’s
not designed to appeal to the human
palate, it is perfectly safe and contains no
ingredients that are harmful to humans.
Each Frosty Paws box contains four 103-mL
cups at a suggested retail price of $3.89.
They’re found at most retail grocery chains
across Canada.
W W W. F O O D I N C A N A D A . C O M
NEWSFILE
• Agriculture and Agri-Food Canada has
extended the Canadian Radio Frequency
Identification (RFID) Reader Program to
Dec. 31, 2007. The program promotes the
use of RFID readers beyond the farm gate by
providing financial assistance to participants for the purchase of readers and other
equipment. The program was scheduled to
end March 31, 2006. For more, visit:
www.agr.gc.ca/reader
• British Columbia received $2.64 million from
the federal government toward the Food
Safety Initiative (FSI) to enhance and promote
food safety systems in its food processing
industry. The FSI is part of the Agricultural
Policy Framework, a federal/provincial/territorial strategy for long-term sustainability and
profitability in the agriculture and agri-food
sector.
• Winnipeg-based Agricore United and
Chatham, Ont.-based Pioneer Hi-Bred
Limited have signed an agreement that will
give Agricore customers access to products
provided by the Pioneer Hi-Bred canola
16
• JUNE
2006
IN BRIEF
breeding system. Agricore will offer two new
products in 2007: Pioneer brand 46P50 and
45P70. The two canola hybrids will be
included in the Agricore United Proven Seed
field trials this coming season.
• Regina-based Saskatchewan Wheat Pool Inc.
is pleased Canada’s new government is
showing its commitment to agriculture. The
feds are investing $1.5 billion this year and
$2 billion over two years to the farming sector. Other highlights include $755 million in
accelerated payments under the Grains and
Oilseeds payment program; funding in support of biofuels and diversification strategies; and new programming in support of
the agri-food industry to develop new market
opportunities.
• Chicago-based Dow AgroSciences LLC has
developed a new trans fat-free oil for foodservice. Oakville, Ont.-based Bunge Canada
will offer the oil under the brand name
Nutra-Clear NT. Lethbridge, Alta.-based
Canbra Foods will offer the oil under the
brand name Canola Harvest HiLo.
• An ad campaign in Alberta is encouraging
ranchers to voluntarily participate in the
province’s age verification program before it
becomes mandatory on April 1, 2007. Age
verification is one component in a broad
livestock traceability system under development nationally. To see the ads, visit:
www.agric.gov.ab.ca and click on Livestock.
• Agriculture and Agri-Food Canada has given
Alberta $23 million in new funding to
enhance and promote food safety systems in
its food processing industry. The funding is
to support the Alberta HACCP Advantage
food safety initiative.
• The Brussels-based International Taste &
Quality Institute held its annual awards ceremony in May. Among the winners were
Canadian manufacturers Maison des
Futailles (Anjou, Que.), Rogers Chocolates
(Victoria, B.C.), Terra Nostra Organic
(Vancouver) and Whistler Water (Burnaby,
B.C.).
W W W. F O O D I N C A N A D A . C O M
NEWSFILE
PEOPLE ON THE MOVE
Richmond, B.C.-based Nature’s Path
Foods has four new appointments. Chip
Goble is the new vice-president of
North American Sales, Jeff Davis is the
new U.S. National Sales manager, Erik
Eaton is the new District Sales manager
East, and David Neuman is the new
executive vice-president of Global Sales
& Marketing. • Geoff Molson, a
seventh-generation member of the
Molson family, joins the Montreal office
of Molson Canada as vice-president,
Customer Marketing and Events for
Quebec. • Mississauga, Ont.-based
Vincor International Inc. has some
new appointments: Richard Jones is
the new president, Vincor Canada;
Jay Wright has been appointed to
the newly created position of president,
International; Debbie Simpson is the
new executive vice-president, Finance
and Administration; and Frank Syer is
now executive vice-president, Human
Resources and Organization Development. • Vancouver-based Clearly
Canadian Beverage Corporation has contracted Leo Novosel as director of Sales.
David Parkes has been appointed to
the company’s board of directors •
Hamilton, Ont.-based Lakeport Brewing
Income Fund has appointed George
Croft COO. Croft was appointed president in May 2005. • Toronto-based Cott
Corporation has appointed Brent Willis
president, CEO and a member
of the board of directors. • The Ottawabased Canadian Produce Marketing
Association has elected Larry McIntosh
– president and CEO of Winnipeg-based
Peak of the Market – chairman of
the board.• Ana-Maria Critchley is the
new communications director at the
Toronto-based Food and Consumer
Products of Canada. Toni Amato is the
new communications officer. • Rogers
Sugar Income Fund in Vancouver has
appointed William Maslechko to the
board of the trustees of the Fund.
ON THE SUPPLIER SIDE:
Brampton, Ont.-based Promo Wrap, a
re-packer, wrapper and producer of
Multi and Variety-packs, has announced
two new appointments: William
Dobson is now general manager and
Blake Martin is now Operations manager.• Beloit, Wis.-based Kerry Ingredients
has hired chef Christopher Warsow
W W W. F O O D I N C A N A D A . C O M
David Neuman
Christopher Warsow
as research chef – New Business
Development.• Chicago-based FMC
FoodTech has promoted Stephen Radke
to account manager for the Processed
Food Groups. He’ll be responsible for
managing the Northeast region of the
U.S., including Eastern Canada.•
Decatur, Ill.-based Archer Daniels
Midland Company has selected Patricia
Woertz as its new president, CEO and
member of the board of directors.
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FOOD IN CANADA •
17
Our Team of Market Specialists
Will Give You The Power to Win
Canada Colors and Chemicals Limited combines decades
of industry experience with technical expertise, a broad
product portfolio within the food ingredients industry
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We continuously search the world for new products,
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18
• JUNE
2006
NEWSFILE
SUPPLIER’S UPDATE
Orafti’s Beneo program is now open
to the worldwide food industry. The
program is a joint effort with major
food manufacturers and was launched
to communicate the benefits of Beneo
inulin and oligofructose. The program
aims to inform consumers with scientifically based communications about
those products’ health effects.•
Toronto-based CK Foods Inc. has
introduced an innovative line of Grape
Powders (Cabernet, Chardonnay and
Icewine) for bakery, prepared foods
and nutritional applications. Grape
Powders can be incorporated into a
variety of baked goods, pasta products,
prepared foods and other products.
The 100-per-cent natural powders add
distinctive flavour and colour, dietary
fibre, omega-3, omega-6 EFAs and the
antioxidant Resveratrol. The line of
powders is derived from the skins of
wine grapes, which have been dried
and milled into a fine powder. •
Montreal-based Saputo Inc. is closing
its cheese manufacturing plant in
Peru, Ind. • York, Pa.-based Westfalia
Technologies Inc., a provider of material handling and packaging systems,
and Toronto-based Deam Company
Ltd. will merge, creating Deam
Systems, a new division of Westfalia.
The division will provide integrated
materials handling and packaging solutions. • Decatur, Ill.-based Archer
Daniels Midland Company and St.
Louis, Mo.-based Baron Spices and
Seasonings have formed an alliance to
market spices, seasonings and herbs to
the foodservice and retail private label
industries. • Armonk, N.Y.-based IBM
has launched new software to help
organizations in the retail, consumer
packaged goods, consumer electronics
and manufacturing industries. The
company says the software, the newest
version of IBM WebSphere Product
Center, is designed to provide clients
increased flexibility and control over
product information, enabling them to
accelerate time-to-market and generate
new business and revenue opportunities. • Dayton, Ohio-based Teradata, a
division of NCR Corporation has
opened an analytics lab called Retail
Advanced Business Analytics & RFID
Lab in Rancho Bernardo, Calif.
W W W. F O O D I N C A N A D A . C O M