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Happy Belly Food Group Acquires 100% of iQ Foods Co.

Photo courtesy of Happy Belly Food Group

Happy Belly Food Group Inc., a leading consolidator of emerging food brands, announced Friday that it has acquired 100 per cent of Toronto-based QSR brand iQ Foods Co. and all four iQ Foods locations following iQ’s filing for creditor protection recently.

iQ Foods offers a variety of wholesome options like healthy bowls, smoothies, sandwiches, soups, and salads, along with other flavourful clean-eating dishes.

“Today, we are pleased to announce the 100 per cent acquisition of iQ Foods. Alongside our wholly owned Lettuce Love Café brand, and our binding acquisition agreement for Salus Fresh Foods announced on July 29th, we are taking our first steps in executing the next phase of our business strategy by consolidating emerging brands within sectors, in addition to developing emerging brands,” said Sean Black, Chief Executive Officer.

Photo courtesy of Happy Belly Food Group

“This is a key moment in our company’s growth as we embark on consolidating sectors, starting with the premium healthy and clean eating vertical. This approach aligns with our strategy, targeting a growth sector that is gaining market share and share of wallet amongst consumers, especially among health-conscious consumers in parts of Canada and the US.

“We see inspiration in category leaders like Sweetgreen in the US, which has grown significantly in business, store count, and achieved an impressive market cap of over $3.5 billion USD, not unlike how CAVA accelerated its expansion in the Mediterranean category by acquiring Zoe’s Kitchen. Our acquisition of iQ Foods establishes our Happy Belly platform as a strong foundation for our sector consolidation strategy.”

Happy Belly said iQ Foods is a cornerstone brand in Canada’s premium healthy eating market and represents the largest single acquisition of corporate-owned stores that Happy Belly has made to date.

Photo courtesy of Happy Belly Food Group

“Strategically situated in urban and central business districts, iQ Foods serves the needs of thousands of customers who are focused on health and wellness from local businesses while also expanding into catering services, which generates additional revenue in major metropolitan centres. This approach has built strong brand awareness and a loyal customer base through word-of-mouth and most importantly, happy and satisfied customers.”

As part of the acquisition Happy Belly takes ownership of four downtown Toronto locations: 100 King Street West (First Canadian Place); 18 York Street (Financial Centre); 199 Bay Street (Equinox Gym and Fitness Center); and 55 Avenue Road (Yorkville Equinox Gym and Fitness Center). A location at Toronto’s Yorkdale Shopping Centre recently closed with a creditor protection filing.

“With our current and prospective new locations, we aim to grow and scale iQ Foods operations into 2025 and beyond. Our Happy Belly footprint continues to grow with each M&A transaction and every new store opening. With the iQ Foods acquisition, we will have 36 restaurants operating within the Happy Belly portfolio, which will increase to 45 following the closing of the Salus Fresh Foods acquisition. Additionally, five of our brands currently have one or more locations under construction, significantly boosting our organic growth. This combination of accelerated organic and inorganic growth positions us well for continued expansion. We look forward to announcing several new openings throughout 2024 as we continue to sign franchise agreements and secure prime real estate locations for our franchisees across Canada,” added Black.

Anatomy of a Leader: James McInnes, Co-Founder & CEO, Odd Burger

James McInnes

James McInnes founded Odd Burger in 2014 as a grassroots vegan organization that brought organic fruit and vegetables from local farmers to customers’ doorsteps. 

The idea began percolating in his mind while he was running a software company.

He was born and raised in London, Ontario, and went to the University of Western Ontario taking genetics and computer science.

James McInnes

“I’ve always been like a scientist I guess,” said McInnes. “I always found that field of quantitative scientific methods and processes to be really cool, really interesting, especially in the computer science side, with an emphasis on the life sciences.

“After I got my degree I ended up starting a software company and ran that for seven years or so before I left and started this company. It’s always been a passion of mine science and life sciences.”

His first company was a fintech firm. 

“While I was still running my software company I went vegan for health reasons. I was diagnosed with high blood pressure when I was about 32. I thought I was leading a fairly healthy life. I didn’t eat a lot of fast foods. I was eating what I thought was a balanced diet and fairly unprocessed,” he said. 

“But it still led me to have some serious life implications. I went plant-based just to try it for 30 days and it completely reversed my high blood pressure which was shocking to me that in 30 days you could change your diet and you can have such a drastic impact on your health. The doctors were pretty amazed too.

“At the time, going vegan was such an extreme diet. People were asking how do I get my protein. I was going to die. I couldn’t live like this. A lot of misconceptions at that time. It started as me on a personal health journey. I ended up buying fruits and vegetables in bulk and I ended up starting a buying group with friends and family.”

He partnered with Vasiliki McInnes in 2015 and the couple developed vegan meal kits, through which they learned that people loved their vegan fast food recipes.  

In 2016, Odd Burger brought what is now known as the Famous Burger to the London, Ontario Ribfest where it sold out due to overwhelming demand.  

The popularity of this vegan option made waves and the disruption garnered great media attention throughout North America. The food truck was launched soon thereafter which brought vegan fast food to communities across Ontario and where customers came out in droves. 

Image: Odd Burger

 In 2017, the company launched Canada’s first vegan fast-food restaurant. Six months later, they opened the world’s first 24-hour vegan drive thru. Odd Burger opened its own manufacturing centre in 2018, where food is produced, and research and development take place. 

In August the company, in its third quarter financial results, said it was expecting to open an additional six units in Canada before year end, bringing the total number of expected units operational to 23.

The perceptions of being a vegan have changed over the years.

“It’s becoming mainstream much more so than it was. I remember never even seeing the word vegan or plant-based. You rarely saw it at restaurants. You rarely saw any vegan offerings whatsoever. It just wasn’t on the radar because no one was eating that way whatsoever,” said McInnes. 

“I think we’re starting to see kind of a shift, the same way cannabis has shifted from being just for the hippies to now lots of people doing it for lots of different reasons . . . And it’s gone mainstream . . . I think the same thing where plant-based has gone through the same type of transition. The industry itself is massive and the potential is huge.”

McInnes said today he’s 44 years old but feels like he’s in his 20s with lots of energy. 

When asked about his entrepreneurial success, he said: “Perseverance was the number one thing because every business is going to have its ups and downs. Sometimes the downs can last for years. You have to be able to persevere through those hard times to sort of see the good times, sometimes.

“There’s this kind of ebb and flow that you have to get used to. You’re going to have failures. You’re going to have setbacks. You’re going to have challenges. You’re going to have times when you don’t think you’re going to make it through. At the end of the day, remember why you’re doing it and what are the reasons you’re doing it. As long as that reason is in the right place. It’s because you love what you do, you’re passionate about it, you believe in the importance of doing what you’re doing for the world, I think that helps you stick with it.”

McInnes said as an entrepreneur it’s important to be able to manage a company’s growth which many don’t think about.

“I think the real challenges and the difficulties come in the growth . . . Every single step of growth has challenges you have to be able to get through.”

In his spare time, he plays tennis and swims. He’s also a musician, working on a musical about the story of Odd Burger, coining it Odd Way on Broadway. He plays violin while his wife plays keyboard, drums and flute.

“I think creative outlets are great,” added McInnes, who played violin in different orchestras as a youth. 

North West Company Boosts Dividend Amid Strong Q2 Performance

Northern Store in Moosonee. Photo: Northwest Company

The North West Company, a major retailer serving rural and urban communities across Canada and internationally, announced second-quarter results for the period ending July 31, 2024. The company, which operates 229 stores under various banners, reported a 4.6% increase in consolidated sales, reaching $646.5 million.

Given the strong numbers, North West’s Board of Directors declared a quarterly dividend of $0.40 per share. It’s a 2.6% increase from the previous quarter.

Dan McConnell, President and CEO of the North West Co., said, “We are very pleased with the results this quarter, delivering increases in adjusted EBITDA and adjusted net earnings compared to a strong second quarter last year.”

Giant Tiger Store (Image: Giant Tiger)

The company’s Canadian operations led the charge, with same-store sales increasing by 6.8%. This growth helped offset more modest gains in International Operations, which saw a 0.9% increase in same-store sales.

North West’s gross profit rose by 7.5% to $219.8 million, bolstered by sales gains and a 91 basis point improvement in gross profit rate. The company attributed this increase to changes in sales blend and a reduction in markdowns.

However, the retailer faced challenges in the form of increased expenses. Selling, operating, and administrative costs rose by 10.1% compared to the previous year, primarily due to inflationary pressures and higher wage costs.

Despite these headwinds, North West’s earnings before interest, income taxes, depreciation, and amortization (EBITDA) grew by 4.1% to $83.4 million. Adjusted EBITDA, which excludes certain non-comparable expenses, increased by 6.1% to $88.4 million.

The company’s net earnings saw a slight decrease of 3.0% to $36.9 million, partly due to the impact of new tax legislation. The Global Minimum Tax Act, enacted in Canada on June 20, 2024, resulted in a $1.0 million increase in income tax expense for the quarter.

Looking ahead, McConnell expressed optimism about the company’s direction. “We are building a strong foundation through our focus on operational excellence initiatives and the momentum in our Canadian business,” he noted. 

The North West Company maintains a significant presence in Canada, with additional operations in Alaska, the South Pacific, and the Caribbean. The company’s diverse portfolio includes stores operating under banners such as Northern, NorthMart, Giant Tiger, Alaska Commercial Company, Cost-U-Less, and RiteWay Food Markets.

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Long & McQuade Founder Jack Long Dies at 95

Jack Long at the opening of Long & McQuade in Belville, ON, in 2016. Photo: intelligencer.ca

Jack Long, founder of Canada’s largest music retail chain Long & McQuade, has passed away at the age of 95. The company announced his passing on September 4, 2024.

Long’s journey from professional trumpet player to retail magnate began in 1956. With a music degree from the University of Toronto, he opened a small instrument shop on Carlton Street in Toronto.

The business quickly expanded, with Long adding practice studios for music lessons. This decision led to a fateful partnership with drummer Jack McQuade, who rented space for drum lessons.

In 1957, the two musicians joined forces to open Long & McQuade Musical Instruments on Yonge Street. The partnership lasted until 1965 when McQuade sold his share to Long to focus on drumming.

Jack Long memorial. Image via Long & McQuaid

Long & McQuade’s expansion across Canada began in 1968. Today, the company boasts over 100 stores nationwide and an online presence launched in 2008. It employs more than 1,800 musicians and contracts about 1,000 music teachers.

The company’s impact on Canadian music has been significant. Notably, Rush‘s late drummer Neil Peart purchased his first drum kit – a chrome Slingerland set – from a Toronto Long & McQuade store.

Long’s contributions to Canada’s music industry were recognized in 2014 when he was appointed to the Order of Canada. He was honoured for his pioneering role in the country’s music retail sector and his commitment to musicians, customers, and employees.

A Long & McQuade store. Photo: Long & McQuade

While the Long family continues to own the business entirely, Jack’s sons Steve and Jeff now manage daily operations. Jack remained involved as an advisor until his passing.

The Long family expressed pride in Jack’s legacy, stating, “Jack lived a long and happy life, surrounded by music and family until the very end. We will miss him every day.”

Long & McQuade’s website offers a wide range of services, including instrument sales, rentals, repairs, and music lessons. The company’s non-commissioned sales approach and performance warranty program have contributed to its enduring success in the Canadian music retail landscape.

Rennaï debuts 1st location at Montreal’s Royalmount

Rennaï, a new beauty and self-care retailer is now open at ROYALMOUNT in Montreal, Canada (CNW Group/Rennaï)

Multi-brand beauty and self-care retailer Rennaï has opened its first ever location at Royalmount in Montreal. 

This launch marks the beginning of Rennaï’s ambitious North American expansion plan. The retailer aims to open several stores across the continent over the next five years.

Christopher Novak

Rennaï’s 36,000-square-foot Royalmount space, designed by renowned interior designer Ana Borrallo, offers a unique shopping experience. The store features a curated selection of local, national, and global beauty products in a breathtaking environment. 

Christopher Novak, President and CCO of Rennaï, said,” Opening our first location in Canada with unique offerings in a state-of-the-art facility marks a pivotal moment in beauty and self-care evolution.”

The store is divided into five distinct “realms,” each catering to different aspects of self-care:

  1. The Reimagine Realm focuses on makeup artistry.
  2. The Refresh Realm is dedicated to fragrance exploration.
  3. The Revitalize Realm offers supplements and personal care products.
  4. The Rejuvenate Realm specializes in skincare and houses a medical aesthetic clinic.
  5. The Retreat Realm provides a relaxation space and pampering services.

Rennaï currently showcases over 175 brands, with plans to introduce more exclusive and first-to-market concepts throughout the year. The company aims to set new industry standards by educating customers and helping them develop personalized beauty routines.

Royalmount in Montreal. Photo supplied by Carbonleo

Royalmount boasts an impressive array of 170 stores and 60 restaurants and cafes. Half of these retail concepts are new to the market, offering shoppers a fresh and diverse selection of brands and experiences. About 50 retailers opened on the September 5 opening day.

Notably, Royalmount houses the largest concentration of luxury stores in Quebec. The positioning establishes the complex as a destination for high-end shopping in the province.

Beyond retail, Royalmount embraces green spaces and art. The complex features a 77,000 square foot urban park, providing a natural oasis amidst the bustling shopping environment. Additionally, art enthusiasts can explore a public art trail showcasing over 60 installations from both local and international artists.

Royalmount in Montreal – Louis Vuitton and Tiffany & Co. will open in several months. Photo supplied by Carbonleo

Sustainability is at the forefront of Royalmount’s design and operations. Developed by real estate company Carbonleo, the complex is on track to become Canada’s largest LEED Gold retail project. This commitment to environmental responsibility sets a new standard for retail developments in the country.

One of Royalmount’s most innovative features is its climate-controlled enclosed skybridge. The $50 million structure directly connects the complex to Montreal’s metro and public transit system, encouraging eco-friendly transportation options for visitors.

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Innovative Beauty Hall and Wellness Retail Concept to Open at Royalmount in Montreal [Interview/Rendering]

RENNAÏ announces Canadian retail exclusive with Victoria Beckham Beauty

Royalmount Opens in Montreal

Costco Breaks Ground on 4th Winnipeg Location

US-based membership-only big-box warehouse club Costco Wholesale has begun construction on its fourth store in Winnipeg. The new location will be at 4077 Portage Avenue near Assiniboia Downs on the western edge of the city.

The City of Winnipeg issued Costco a development permit in July for the construction of a 166,894-square-foot store. Work on the site, currently an open field, commenced several days ago.

The new Portage Avenue location will be part of the growing Westport mixed-use development, spanning over 15 acres. The project, approved by city councillors last year, includes plans for a one-story building and parking lot. Renderings from June 2023 also indicate the addition of a gas bar at the site.

4077 Portage Avenue in Winnipeg. Click image for interactive Google Map

The new store will join Winnipeg’s existing Costco locations on St. James Street, Regent Avenue West, and McGillivray Boulevard. 

Costco has a significant economic footprint in Canada, where it serves over 10 million members and generates average annual sales of about CDN$25 billion.

Background on Costco

Costco’s journey began in 1976 when Sol Price introduced the first membership warehouse club, Price Club, in San Diego, California. Initially limited to business members, Price Club offered a wide range of supplies and wholesale items. Jim Sinegal, a key figure in Price Club’s success, later co-founded Costco Wholesale with Jeff Brotman in 1983, opening their first warehouse in Seattle, Washington.

The merger of Price Club and Costco Wholesale in 1993 created a powerhouse in the retail industry. The company today carefully selects about 4,000 stock keeping units (SKUs) per warehouse, significantly fewer than the 30,000 found in most supermarkets, allowing them to offer the best value to members.

As of August 2024, Costco operates 884 warehouses worldwide, with a significant presence in North America. The company has 611 locations in the United States and Puerto Rico, 108 in Canada, and 40 in Mexico. Its global footprint extends to countries such as Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden.

Costco’s financial performance remains strong, with net sales reaching US$210.55 billion for the first 44 weeks of 2024. The company’s success has earned it the 11th spot on the Fortune 500 rankings of the largest United States corporations by total revenue.

Related News:

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Golfworld to Launch Golf Complexes Across Quebec

Photo: GolfWorld

Golfworld, a pioneering golf entertainment company, plans to open its first Golfworld Montreal Golf Complex in the winter of 2024-2025, followed by a Laval location in the summer-fall of 2025. The state-of-the-art facilities aim to replicate the golfing experience for visitors of all skill levels.

The ambitious project, backed by five shareholders, aims to establish up to 10 branches in Quebec’s major cities within five years. Each complex represents an investment of approximately $1.5 million and will create about 20 jobs.

Golfworld Montreal Golf Complex: A Comprehensive Golfing Hub

What sets Golfworld apart is its unique concept, unparalleled in Canada. Each complex will house a luxury urban mini-golf course, a zone with cutting-edge Prosim and Trackman simulators, a Duogolf performance workshop, and an indoor training center. The 6000 sq. ft. space will feature an immense practice green, an approach shot area, and an integrated sand trap for bunker practice.

Duogolf, a specialist in club fitting, will relocate its Laval store to join this venture. Led by industry experts Mario Laflamme and Martin Whelan, Duogolf will oversee all performance zones in Quebec’s supercenters.

The luxury mini-golf, inspired by Florida’s popStroke concepts, will be a highlight of each complex. Depending on the building’s layout, it may be located on the rooftop terrace, offering stunning city views, or annexed to the ground floor, providing an immersive experience year-round.

These 25,000 sq. ft. facilities will also include areas for professional golf lessons and a club repair and adjustment workshop. A specialized boutique will stock major industry brands for equipment, accessories, clothing, and footwear, with a strong emphasis on Quebec manufacturers.

The Golfworld Montreal Golf Complex and its counterparts will cater to a diverse clientele, from professional golfers to families and corporate events. The company’s rapid expansion plans include franchising the concept for growth within Quebec and beyond.

George Weston Secures $250M in Private Placement

Canadian food processing and distribution company George Weston Limited announced it has successfully completed a private placement of $250 million in senior unsecured notes.

Terms and Conditions of the George Weston Unsecured Notes

The offering comprises $250 million aggregate principal amount of series 2029 notes. The notes bear an interest rate of 4.193% per annum and are set to mature on September 5, 2029. The issuance was conducted on a private placement basis, targeting qualified accredited investors.

George Weston has earmarked the net proceeds from the offering for general corporate purposes. The flexible approach allows the company to strengthen its financial position and potentially fund future growth initiatives.

Impact of George Weston Unsecured Notes on Company’s Financial Structure

The newly issued notes are unsecured and rank equally with all existing and future unsecured and unsubordinated indebtedness of the company. This parity ensures that the notes maintain a consistent risk profile with George Weston’s other financial obligations.

Notably, the notes have received favorable credit ratings from two prominent agencies. DBRS Limited has assigned a credit rating of “BBB” with a “Stable” trend, while Standard and Poor’s Rating Services has provided a credit rating of “BBB”. These ratings reflect the market’s confidence in George Weston’s financial stability and future prospects.

The successful placement of these notes was facilitated by a syndicate of agents led by BMO Capital Markets, CIBC Capital Markets, and RBC Capital Markets. Their involvement highlights the strong relationships George Weston maintains within the Canadian financial sector.

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Canadian Tire Corporation ranked top retailer in Canada, top 10 globally: Newsweek 2024 list of the World’s Most Trustworthy Companies

PHOTO: CANADIAN TIRE

Canadian Tire Corporation, Limited, for the second consecutive year, has been recognized as one of the World’s Most Trustworthy Companies by Newsweek.

CTC was listed in the Retail category and ranked as the most trustworthy Canadian retailer, one of just two Canadian companies to make the list of 72 global brands.

Susan O’Brien

“Our inclusion on the list of the World’s Most Trustworthy Companies reinforces and fuels our Brand Purpose: ‘We Are Here to Make Life in Canada Better.’ Trust is earned over time and if nurtured and protected, becomes a company’s greatest asset,” said Susan O’Brien, Executive Vice President and Chief Brand & Customer Officer, Canadian Tire Corporation. “For over a century, we’ve built a deep emotional connection with Canadians by putting them at the centre of everything we do.

“This global recognition is a testament to our team members’ commitment to fostering trust through the products we sell for life in Canada, through the value we offer in our Triangle Rewards loyalty program, and through our passionate support of Jumpstart and the many investments we make in our communities from coast to coast. At CTC, we know trust is a privilege that must never be taken for granted.”

The World’s Most Trustworthy Companies 2024 were selected based on an independent survey of over 70,000 participants across 23 industries in 20 countries. Newsweek, in collaboration with Statista,  evaluated companies according to three trust touchpoints: Investor Trust, Customer Trust, and Employee Trust. The study analyzed 230,000 evaluations, supplemented by a social listening analysis to gauge the sentiment of online mentions. Eligible companies included publicly traded organizations headquartered in the target countries with revenues exceeding $500 million USD.

Newsweek’s 2024 list of the World’s Most Trustworthy Companies: https://www.newsweek.com/rankings/worlds-most-trustworthy-companies-2024/retail

Canadian Tire Corporation, Limited is a group of companies that includes a Retail segment, a Financial Services division and CT REIT. The retail business is led by Canadian Tire, which was founded in 1922 and provides Canadians with products for life in Canada across its Living, Playing, Fixing, Automotive and Seasonal & Gardening divisions. Party City, PartSource and Gas+ are key parts of the Canadian Tire network. The Retail segment also includes Mark’s, a leading source for casual and industrial wear; Pro Hockey Life, a hockey specialty store catering to elite players; and SportChek, Hockey Experts, Sports Experts and Atmosphere, which offer the best active wear brands.

There are more than 1,700 retail and gasoline outlets. CTC also owns and operates Helly Hansen, a leading technical outdoor brand based in Oslo, Norway.