Loblaw executive chairman Galen G. WestonMIKE CASSESE
Food industry players and retailers need to play a bigger role in developing healthy, environmentally friendly products, says Loblaw Cos. Ltd. executive chairman Galen G. Weston.
"This is a great opportunity," Mr. Weston said in a presentation Monday to the Canadian Club of Montreal.
Toronto-based supermarket giant Loblaw is finding that it pays to think of gaining competitive advantage by developing foods and beverages targeting increasingly health- and environment-conscious consumers, he said.
For example, Loblaw has partnered with "two or three different aquaculture producers" on Canada's East and West coasts to supply it with certified, sustainable sources of farmed salmon, he said.
The new product is set to hit Loblaw shelves in selected stores across Canada. It will be sold at a premium price, but Loblaw hopes the salmon will be a hit with customers and justify a broader roll-out at lower prices, Mr. Weston said in his luncheon speech.
Loblaw has also seen an increase in sales in its stores' produce sections thanks to more sourcing of locally grown fruits and vegetables, he added.
"If you're a big grocer like us, you have the scale to lead change," he said.
Loblaw's President's Choice brand of 100 per cent organic baby food, for example, has taken off to become the number one brand in the baby-food category in Loblaw stores and the company was able to avoid premium pricing, he said.
But he also warned that the Canadian food industry and governments need to get together to discuss a national food strategy to ensure the country isn't overtaken in the increasingly competitive global food business.
Editor's note: An earlier online version of this story incorrectly stated that President's Choice brand of 100 per cent organic baby food had become the number one brand in the baby-food category in Canada. This online version has been corrected.
Bertrand Marotte