In Saskatchewan, collaboration is a key part of produce operations; Hinchey says suppliers work closely with their counterparts in Alberta. “Alberta and Saskatchewan are relatively open markets and strongly connected socially, where trust and a handshake mean as much today as they did 100 years ago.”
Because it borders the United States, Saskatchewan is also one of the nation’s leading agri-food exporters, second only to Ontario. In 2016, the province’s
agri-food exports were valued at $14.4 billion, representing 23 percent of Canada’s total.
Retail Scene
The retail industry across western Canada has become fiercely competitive, forcing grocers large and small to offer customers a variety of perks and services.“There’s no question the tough retail competition we saw in different parts of the world is occurring in western Canada in spades,” asserts David Karwacki, CEO of Star Produce Ltd., in Saskatoon, SK. “Traditional foodservice players are moving into retail, other retailers like Walmart have moved in, and it’s just become a very competitive environment.”
Ron Lemaire, president of the Canadian Produce Marketing Association, agrees, citing the rising number of Canadian consumers opting for nontraditional shopping methods. “Online grocery orders and home meal kit delivery companies are growing, and although they currently represent a small share of the market, we expect to see this rise
in 2018.”And although Canadian consumers have been largely receptive to marketing campaigns, the trend will be buoyed by renewed government-sponsored initiatives. “We’re expecting to see a returned focus to nutrition and healthy eating with the federal government’s ‘Food Policy for Canada’ and the relaunch of Canada’s Food Guide,” explains Lemaire. “As an association, we’re focusing on education and food safety to ensure our future success.”
The Western Canada retail scene is primarily dominated by Walmart, Loblaw, Costco, Sobeys, and Overwaitea Food Group.
Based in British Columbia, Overwaitea now operates more than 140 stores across the west under a number of banners including Save-On-Foods, Overwaitea Foods, Urban Fare, PriceSmart Foods, PriceSmart Foods International, and Bulkley Valley Wholesale.
“Sobeys and Safeway, the traditional retailers in our area, have been very strong,” points out Karwacki. “When you get all of these players involved in the industry and bring in a very predatory player like Walmart, all of the sudden everybody needs to get their elbows up—that’s what has occurred in Western Canada.”
A case in point is the conversion of numerous Safeway and Sobeys stores in western provinces to the discount FreshCo banner, to try and stave off Walmart and other lower-priced rivals.
Roy Hinchey, CEO of Thomas Fresh Inc. in Calgary, says retailers across the region are constantly innovating and reinventing themselves for consumer fulfillment. “Market share has become increasingly divided among many different chains,” he notes, agreeing with Lemaire that online shopping is having
a notable impact.“With massive distribution companies like Amazon pop-up stores, online shopping, and home delivery services, a definite pattern is emerging,” observes Hinchey. “Shoppers want as many ways to get their groceries as possible. Technology makes all this possible and as scary as change is, big brands have the financial backing and drive to address and capitalize on these new trends and niche markets.”
Like its neighbor, Alberta, Hinchey says Saskatchewan has a flourishing trucking industry. “For Thomas Fresh, our most travelled trucking routes begin in either California, Washington, or Idaho with destinations in British Columbia, Alberta, or Saskatchewan.”
