Collaboration, partnerships are key, say retailers at CPMA

At the annual Canadian Produce Marketing Association conference held this year, there was a clear message that rang true for the major chains on growing need for collaboration in the current competitive retail environment.

Held in Vancouver April 2-4, at the delegate luncheon on Thursday, there was a full crowd in attendance to hear the retail panel made up of the grocers who account 80% of produce sales in Canada.

The panel included (see photo at right):  Mike Venton, SVP fresh food, produce national procurement, Loblaw Companies; Oleen Smethurst, AGMM – produce, Costco Wholesale Canada; Bernadette Hamel, VP national procurement, produce, Metro Richelieu Inc.; Frank Bondi, director, produce category management, Sobeys Ontario; and Sam Silvestro, senior director, fresh food, Walmart Canada.

The session, moderated by Reggie Griffin, former Sr. VP at Kroger in the U.S., was lively as the retailers all spoke about the challenges they're facing in their respective businesses.

READ: Canada's big three grocers market healthy eating

Venton of Loblaw said that the multicultural assortment is the most challenging for the grocer as the assortment continues to grow exponentially. Admittedly, Venton acknowledged that in Loblaw's haste to be "first on the market," sometimes the taste of the products being offered isn't where it should be. However, he said the company's Loblaw brand offers with the "flavour burst" tag is one way it is guarantee taste quality to customers.

Hamel of Metro said that a big part of the understanding when it comes to fresh is reliant on proper staff training. She said it's important that the team, from procurement to selling on the floor is on the same page.

Hamel stressed it's important as well to get support from the vendors to "ensure the promises we have made to our consumers, they have to help us make that a reality."

When it comes to direct sourcing of fresh produce, Silvestro of Walmart said "sky's the limit" whether it's local opportunities for direct sourcing as Walmart is a global company with regional offices.

Each retailer was then asked what vendors needed to do when it came to deliverables before making presentations to each grocer. Each retailers' response pointed to the need for the buy-sell relationship to move towards a more collaborative process.

"Do your homework," said Silvestro. "Understand what it is we're looking for in order to build both of our businesses. It's a win-win."

Bondi concurred, and said that if Sobeys as a company is looking to grow organics, as an example, what are you as a vendor, doing to grow it?

Hamel also stressed the importance of vendors understanding the grocery retailer's business. She said Metro wants to work with vendors to grow together and put programs together.

Smethurst was very specific when it came to what Costco was looking for from vendors. She said she asks vendors three questions: what's new?; do we need to improve (it goes both ways); and how can we become more efficient together.

Venton added that he wants vendors to be "brutally honest". "Where can we create win-wins with suppliers?"

With growing competition from consolidation in the sector, Smethurst pointed to Costco's focus on developing relationships with growers, that in turn lends to quality.

Sobeys' Bondi added there's a growing need from his company for consumer insights. "We have to understand that consumer data as eating habits are changing and consumers are time-starved."