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The Green RushValue-added products are the next wave for cannabis
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Inside: ACCENT ALIMENTAIRE SUR LE QUÉBEC PG. 27
Keeping meat on the plateSTRATEGIES AND OPPORTUNITIES PG. 16
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VOLUME 79, NUMBER 2 • MARCH 2019
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4 MARCH 2019
contents 5 Editorial
6 News File
11 Show Preview What’s new for SIAL Canada and a focus on local
12 Marketing Trends Political winds continue to affect prices
13 Food Law Natural claims on labels could get complicated
14 Regulatory Affairs Canada Dry is facing a lawsuit over labelling claim
15 Focus on Food Safety Canadian initiatives in food safety
34 New Products The latest new products
features
departments
Sign up for our enewsletters at www.foodincanada.com
21 16 Keeping meat on the plate How Canada’s meat groups are promoting products this year in light of Canada’s new Food Guide
21 The Green Rush How Canadian companies are capitalizing on cannabis’s next wave: value-added products
24 Packaging equipment – Conveyors The shift to outcome-based inspection
24in this issueAccent Alimentaire sur le Québec
27 Nouvelles 30 Rapport sur la viande
Cover photo courtesy of Canada Pork International
EDITORIALKristy Nudds
The much anticipated update to Canada’s Food Guide was finally revealed by Health Canada on January 22, and triggered mixed reactions from the food and agriculture sector. Whether the new guide was criticized, praised, or viewed as a potential threat was dependent upon how each sector is portrayed in the new Guide.
The 2019 update has some significant changes — gone are the traditional four food groups and recommendations for specific serving sizes. Instead, Canadians are encouraged to “make it a habit to eat a variety of healthy foods each day.” This can be achieved, according to Health Canada, by eating plenty of vegetables and fruits, whole grain food and protein foods, but plant-based proteins should be chosen more often. Highly processed foods should be limited; if chosen, consumers are encouraged to eat them in infrequently and in smaller amounts to avoid excess intakes of sodium, sugars and saturated fat. Water should be the drink of choice, and Health Canada warns consumers to “be aware that food marketing can influence your choices.”
The traditional serving recommenda-tions such as one cup of vegetables, a slice of cheese or three ounces of meat have been replaced by a simple visual showing a dinner plate. Half of the plate contains a variety of fruits and veg-etables, and the other remaining half is divided equally with one quarter of the plate containing protein foods and the other quarter whole grains.
While this plate concept is meant to make it easy for consumers to understand how they should be eating, it’s clear that
plant-based foods are the favoured choice in the protein category.
Meat and dairy groups were not pleased to be relegated into a category with nuts, lentils and tofu and were quick to release statements the same day as the Food Guide launch, pointing out what they felt were flaws in Health Canada’s simplified recommendations.
The Canadian Cattlemen’s Association (CCA) and the Dairy Farmers of Canada (DFC) both felt that Health Canada missed the mark on informing consumers on the nutritional benefits of red meat and dairy products. In its statement the CCA said, “it would be unfortunate if Canadians interpret this bias toward plant-based proteins as a signal to remove red meat from their diets. Dietary advice to reduce red meat consumption could put some Canadians at risk of iron, zinc, vitamin B12 deficiencies and inadequate protein intake.”
In its statement the DFC encouraged Canadians to consider the fact that dairy products are a “key source of six of the eight nutrients that most Canadians already fall short of: calcium, magnesium, zinc, vitamin A, vitamin D, and potassium.”
Discouraging the consumption of processed foods is also unrealistic and unfair, according to the Food and Consumer Products of Canada (FCPC), which represents Canadian food and beverage manufacturers. It believes the Food Guide fails to understand consumer demand for convenience.
“The reality is that people are time starved,” said Michael Graydon, CEO, FCPC in a press release. “People are looking for tasty, convenient, affordable
and nutritious products to feed their families and our members will continue to respond to consumer needs.”
As the FCPC noted in its release, the organization could have helped Health Canada by providing consumer insights, as well as how to use labelling as a tool for disseminating relevant nutrition information to ensure the new Food Guide’s educational messages resonate with Canadians. The fact that food and beverage processors in Canada have already been responding to consumer demands for less sodium, fat and sugar for some time was completely ignored.
Although Health Canada purposely chose not to consult industry groups when creating the new Guide to avoid conflicts of interest, it failed in its attempt to provide guidance that will be achievable for many Canadians. It’s now up to Canada’s food industry to share the burden of educating consumers on how their products fit into Health Canada’s concept of a healthy diet.
Kristy Nudds [email protected]
Missing the mark
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FOODINCANADA.COM 5
Manitoba Harvest to be acquired by Tilray Hemp food and supplement manufacturer, Manitoba Harvest, has entered into a definitive agreement to be acquired by Tilray, a global leader in cannabis research, cultivation, processing and distribution.
This first-of-its kind acquisition unites a cannabis pioneer with a leading natural food CPG company to create hemp and CBD-infused food and wellness products for North America.
Together, Tilray and Manitoba Harvest plan to grow both companies’ revenue while bringing nutritious hemp foods and supplements to more households across the U.S. and Canada. The acquisition will expand Tilray’s product portfolio into the natural foods category and bring Manitoba Harvest expertise in working with cannabinoids, including cannabidiol (CBD). By leveraging Manitoba Harvest’s established distribution network, Tilray plans to accelerate its expansion into the U.S. and Canadian markets, where legal, for CBD products. Manitoba Harvest also brings to Tilray an experienced team and manufacturing capabilities, including the addition of two high quality BRC AA+ certified manufacturing facilities as well as significant sales and distribution capabilities.
Upon completion of the acquisition, Manitoba Harvest will operate as a wholly-owned subsidiary of Tilray,
leveraging the Tilray team’s global cannabis industry expertise and other strategic partners. Manitoba Harvest will continue to operate its seed-to-shelf supply chain model and leverage its retail relationships across North America. Tilray and Manitoba Harvest will also work together to develop innovative new CBD wellness products and hemp-based consumer food products.
Seafood mislabelling persists throughout Canada’s supply chainNot only does Canada continue to have a problem with fish mislabelling, but that problem persists throughout the supply chain, according to a first-ever study by University of Guelph researchers.
In a new study, U of G researchers found 32 per cent of fish were mislabelled and the number of incorrectly identified samples became compounded as the samples moved through the food system.
“We’ve been doing seafood fraud studies for a decade,” said Prof. Robert Hanner, study’s lead author. “We know there are problems. But this is the first study to move beyond that and look at where the problems are happening throughout the food supply chain.”
The findings reveal that mislabelling happens before fish are imported into Canada, as well as throughout the supply chain, Hanner added.
“It seems it’s not isolated to foreign markets, but it’s also happening at home. The Canadian Food Inspection Agency (CFIA)
has partnered with us to actively find solutions to this persistent problem,” said the integrative biology professor.
Published recently in the journal Food Research International, the study was conducted in collaboration with the Canadian Food Inspection Agency (CFIA).
U of G researchers examined 203 samples from 12 key targeted species collected from various importers, processing plants and retailers in Ontario. Of the samples, 141 (69.5 per cent) were from retailers, 51 (25 per cent) from importers and 11 (5.5 per cent) from processing plants.
Researchers identified the samples using DNA barcoding. Developed at U of G, DNA barcoding allows scientists to determine species of organisms using a short, standardized region of genetic material.
The findings revealed 32 per cent of the samples overall were mislabelled. The mislabelling rate was 17.6 per cent at the import stage, 27.3 per cent at processing plants and 38.1 per cent at retailers.
“The higher mislabelling rate in samples collected from retailers, compared to that for samples collected from importers, indicates the role of distribution and repackaging in seafood mislabelling,” said Hanner.
He points to a few reasons for the problem.
“It’s either economically motivated, meaning cheaper fish are being
purposely mislabelled as more expensive
fish. Or it’s inconsistent labelling regulations between
Canada’s first naturally sourced, traceable yogurtDanone has launched its first flavoured yogurt made with 100 per cent natural source ingredients and no added sugar or artificial sweeteners, a first on the Canadian market. Danone has part-nered with Nutrinor Cooperative, ensuring 100 per cent of the fresh milk used in this new yogurt is sourced from a small network of Canadian dairy farms. The partnership allows Danone to trace its fresh milk supply, giving consumers the confidence that their yogurt comes from local producers. It’s available in six flavours — Blueberry, Cherry, Peach Mango, Raspberry, Plain and Vanilla.
6 MARCH 2019
News> file
countries and the use of broader common names being used to label fish instead of scientific species names that are leading to mislabelling.”
In both Canada and the U.S., fish are labelled using a common name rather than a specific scientific name. For example, a variety of species may be sold as tuna, although different species can significantly vary in price.
“It creates ambiguity and opens the door for fraud or honest mistakes,” he said. “It also makes it more difficult to track species at risk or indicate if a fish is a species that has higher mercury content. At the end of the day, Canadian consumers don’t really know what type of fish they are eating.”
European countries that recently included species names along with common names have seen less fraud, he added.
That might help curb the problem with fish imports, Hanner said, but this new study shows a need for verification testing at multiple points along the supply chain.
“The next step would be to follow one package from import to wholesale to retail and see what happens.”
SPUD.ca launches first fresh e-commerce marketplace in Canada
Sustainable Produce Urban Delivery Inc. (SPUD) announced the launch of Be Fresh Marketplace, a fresh digital platform for local artisans, small shops and independent grocers to sell online with consolidated delivery. The effort comes as small local food brands struggle to move past geographic constraints and
high rents to find a sustainable e-commerce solution that meets their needs. SPUD is utilizing its industry-leading technology in grocery e-commerce, warehousing and home delivery to increase the accessibility of e-commerce for local food companies.
“Small food businesses are an important part of our company and the vitality of the cities we live in. It is really hard for these amazing fresh food companies to create an online shopping experience on their own,” said Peter van Stolk, CEO at SPUD.ca. “We are committed to local and working with these businesses to adapt to the digital age.”
Several local shops in Calgary have already benefited from the Be Fresh Marketplace during the company’s pilot test in January. Be Fresh Marketplace leverages SPUD.ca’s high-traffic e-commerce website to offer other local sellers a fast way to create an online store and start selling their products. The marketplace will utilize the sustainable fulfillment technology of SPUD’s food delivery platform, Food-X Urban Delivery, to consolidate orders and deliver to customers.
Be Fresh Marketplace has launched in Vancouver and Calgary and is expected to rapidly grow in 2019 to support more than 500 local companies and thousands of specialty items by the end of the calendar year. Local food shops, independent grocers and artisanal brands can inquire online or by contacting SPUD.ca directly.
Canadian Agricultural Strategic Priorities Program announcedThe federal government has announced the new Canadian Agricultural Strategic Priorities Program (CASPP), an investment of $50.3 million over five years to help the agricultural sector adapt and remain competitive. The new program replaces the Canadian Agricultural Adaptation Program.Funding available through this program will help facilitate the sector’s ability to address emerging issues and capitalize on opportunities.
The CASPP focuses on four priority areas: adoption of new technology; environmental sustainability; strategic development and capacity building; and, emerging issues. Examples of potential projects could include those addressing artificial intelligence technology, tools to assess future labour and skills needs, bio-crops, environmentally sustainable farming techniques and strategies to help the sector adapt to changes in consumer preferences.
Applicants may apply at any point during the life of the program, until available funds have been fully allocated. Projects must be national in scope or deal with cross-sectoral issues. Applications for the program are now being accepted online.
FOODINCANADA.COM 7
Starbucks Canada commits to rescuing 100 per cent of food available for donationStarbucks Canada has announced the launch of Starbucks FoodShare, a national effort to provide nourishing, ready-to-eat meals to people in need. The company is making a commitment to rescue 100 per cent of food available for donation from its more than 1,100 company-owned stores. Building on a successful pilot with Second Harvest, the program launched in Ontario with more than 250 stores participating in the GTA on February 22. Starbucks is actively working to expand the program to even more cities and provinces, with a goal to have a national solution in place by 2021.
In Canada, the company has always donated unsold pastries and baked goods but wanted to do more. Starbucks invested in research and quality assurance testing to develop a sector-leading program to safely donate chilled and perishable food to those in need. Now, nourishing items like breakfast sandwiches, paninis, protein boxes, salads, yogurt, milk and dairy alternatives like soy and coconut, can be safely donated and enjoyed by those in need.
Starbucks FoodShare has identified guidelines and developed training on maintaining the temperature, texture and flavour of this food, so that when it reaches a person in need, they can safely enjoy it. In turn, Second Harvest will work with local community groups across the province who will collect the food to ensure these food safety standards are met.
In addition to combatting hunger, the Starbucks FoodShare program will divert food surplus from landfills, helping to minimize the company’s environmental footprint.
The Canadian Export Business awards rebrandsThe Agri-Food Export Group has an-nounced the opening of the 2019 Alizés Awards application period. The Alizés Awards is the successor to the Canadian Export Business Award which has been awarded by the association for the past 12 years. The Alizés Awards celebrate the excellence of the work accomplished by a Canadian agri-food company that has distinguished itself in international markets and are presented by Farm Credit Canada, the event’s lead partner. The winners will be unveiled at the Alizés Evening on April 30th in conjunction with SIAL 2019 at the Beanfield Center in Toronto.
Each year, the event brings together some 450 companies that are amongst the biggest players in the industry, as well as several political and economic leaders from the
Canadian companies are encouraged to visit lesprixalizesawards.ca to regis-ter and receive their application form for the Alizés Awards. Applications will close on March 26, 2019, at 5:00 p.m. EDT. Canadian agri-food sector.
Last Best Brewing releases traceable “Bock Chain” beerAlberta-based companies Hamill Farms, Canada Malting Co., Red Shed Malt-ing and Last Best Brewing & Distill-ing have teamed up with technology provider TE-FOOD to deliver a new and engaging consumer experience.
“Bock Chain” — a new beer officially launched on Feb. 1 at the Jasper Beer & Barley Summit in Jasper, Alta. — uses block chain technology to trace the beer grain ingredients from field to can. Block chain technology is being used increasingly to facilitate traceability in food ingredients, giving consumers greater visibility over where their food comes from, how it’s been processed what it has been in contact with. The Bock Chain can features a QR code on the label, which users scan on their phone to view details about the product and its origins. The QR code unlocks a microsite containing videos, photos, maps, data, timestamps and more to capture the journey from farm to retail.
NEWS FILE
8 MARCH 2019
> Siddika Mithani has been appointed
president of the
Canadian Food
Inspection Agency
(CFIA). Mithani will
be leaving her post as president of
the Public Health Agency of Canada,
a position she has held since 2016.
Mithani began her career in Canada’s
civil service in 1997, starting as a
scientific evaluator for Health Canada,
eventually becoming a director general
in the department’s Veterinary Drugs
Directorate before being promoted to
associate assistant deputy minister of
the health products and food branch.
Since 2010, she has been assistant
deputy minister (ADM) with Fisheries
and Oceans, an ADM with Agriculture
and Agri-Food Canada (AAFC) and
ADM at Environment Canada before
taking over at PHAC.
> Victoria Frazier has been promoted
to Vice President
of Sales for Food
Safety Net Services
(FSNS). Frazier
brings a wealth of leadership and
intelligence from her many years
of experience with FSNS. As Vice
President of Sales, Frazier will oversee
and mentor the sales team at FSNS.
Prior to her promotion, Frazier held
the position of Director of Corporate
Sales and Training. Frazier began her
career with FSNS over seven years ago
and received her Bachelor of Science
in Environmental Science from the
University of Arizona. While working
at FSNS, Frazier participated in the
tuition reimbursement program and
received a Master of Science through
Kansas State University and a Master of
Business Administration from Louisiana
State University.
PEOPLE ON THE MOVE
Mithani
Frazier
FOODINCANADA.COM 9
IN BRIEF> Koios Beverage Corp has secured a purchase order with Wal Mart to supply
1,094 locations across the U.S. with its
proprietary nootropic formula beverages
and drink powders. Koios says the drinks
have been shown to enhance brain
function, including mental focus, memory
and concentration.
> Quesada Burritos & Tacos has partnered with Beyond Meat to launch Canada’s first
Beyond Meat Burrito. The burrito is made
with Beyond Meat’s pea-protein Feisty
Crumbles. The partnership marks the first
time a Mexican quick service restaurant
chain has partnered with Beyond Meat.
> LUDA Foods received a DUX award for its plant-based nutritional supplement at
the DUX Gala, held January 30 in Montreal.
LUDA’s supplement is an instant dissolve
nutritional powder
that can be added
to soups, purées,
sauces and/or
prepared meals to
boost the protein,
fiber, vitamin B12 and iron intake of meals
and help prevent malnutrition in
institutionalized individuals — with no
chemical aftertaste.
> Export Development Canada (EDC) has announced a $1 million investment into
Canadian Cleantech company P&P Optica
(PPO), an Ontario-based firm that uses
imaging and machine-learning to assess
food composition and quality as well as
detect contamination by foreign objects.
Benefits include improving the overall
Canadian food supply and reducing waste
in this country’s landfills. The funding
from EDC will be used to advance the
development of PPO’s Smart Imaging
Systems, as well as deployment into food
processing plants across North America.
> Food Process Solutions has acquired majority control of Charlottetown Metal
Products, subject to local government
approvals. B.C.-based Food Process
Solutions is a global leader in turn-key
food freezing and cooling equipment, and
Charlottetown Metal Products designs and
custom builds food processing equipment,
serving global multinational companies.
> Smucker Foods of Canada Corp. has received an investment of up
to $1.8 million from the federal
government to upgrade its
equipment. Smucker’s plans to
introduce the production of heavy cream
and process new formats of evaporated
and condensed-sweetened milk at its
Sherbrooke, Quebec processing plant.
The company produces Eagle Brand and
Carnation products for Canadian consumers,
and the expansion of its product line will
increase demand for Canadian milk by
almost four million tons.
> Kemin Industries has received GRAS approval
for its oil-soluble green tea
extract from the FDA. The
GT-FORT™ product line of plant extracts for
fats and oils assists with oxidation control,
and is ideal for oils, snack food and bakery
products, as well as sauces and dressings.
> Olymel L.P. announced it is closing its Vanier (Triomphe Foods) plant in Quebec
City, effective May 10. Production at the
Vanier plant will be transferred to Olymel’s
Blainville plant north of Montreal.
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magazine in Canada
S IAL Canada, North America’s biggest food and beverage tradeshow, will be held in Toronto from April 30 to May 2, 2019 at the Enercare Centre. More than 1,100 exhibi-tors from over 50 countries will be showcasing their products and innovations.
As in previous years, SIAL Innovation will unveil the world’s top 10 most innovative products. The event offers interesting and relevant workshops and conferences, and exhibitors will demonstrate food innovations, trends, food retailing and food processes. Italy will be the country of honour for 2019.
New for 2019 is SIAL’s first international cheese competition. This competition brings together cheeses from all over the world, a first for Canada. An exceptional jury has been recruited to evalu-ate this unique contest; many of the judges are members of La Guilde Internationale des Fromagers. The competition takes place on the first day of the show in the “Cheese by SIAL” pavilion.
This year the show also features two new sections: Food start-ups and beverages (both alcoholic and non-alcoholic).
Spotlight on Buy Local SIAL Canada’s Buy Local expert Franco Nac-carato is responsible for the leadership and management of the Ontario Independent Meat Processors association (OIMP) and works closely with all levels of government, agricultural and industry groups on issues that directly affect OIMP members and their businesses. From field to plate, Franco works with all parts of the value chain to build stronger relation-ships and champion a better food system for all. Food in Canada spoke to Franco about the current trends in buying locally.
Q: As a Buy Local expert, what is your role at SIAL? A: I am here as a connector for those interested in building their supply of local foods. Throughout the show, I will be joining in several panel discussions to highlight how buying local can help a business create a point of difference from its competitors. It’s a big show, and finding local products won’t be easy, so stop by the booth to get a curated map of where to find local products. Of course, if you need anything relating to locally produced meats, I have more than 200 members producing just about anything you could imagine so don’t be shy and stop by and we can talk about your meat and poultry needs.
Q: In your opinion, what are the major trends and innovation areas in the Buy Local area?
A: I have noticed two major trends. Buyers aren’t just buying with their wallets — they are also buying with their hearts and consumers are becoming more sophisticated about the types of products they are looking for.
Price will always be a major factor in consumer buying habits, but more and more we are seeing a shift of people mak-ing purchases based on values such as environmental impact, community impacts and social impacts. People concerned with the environment are looking for options that are sustainably raised and organically grown. Consumers concerned about the economy are looking for locally grown and raised products that are made by their neighbours and feel good about supporting the local farm down the street, or in another part of the prov-ince. Socially-minded consumers want to know that businesses are going out of their way to be good stewards in their com-munities. They are looking for businesses that provide jobs to under-employed communities, or people with mental and physi-cal disabilities, are conscious about their affects in the world and fight to create a better food system for all.
As the availability of information about food has increased, so too has the buying habits and demands of consumers. No longer are consumers just looking for a steak — they are looking for steak that is grass-fed, raised without added antibiotics, comes from a farm that isn’t too far away, behaves ethically and gives back to their community. They don’t want any type of pork, but they want Tamworth because it has more marbling and tastes better. They are looking for artisan-raised chickens that are raised outdoors because it makes them feel good. This is a great advantage for Ontario because we can do it all. We even have locally raised shrimp — attendees will be able to talk with Planet Shrimp at the show. With technology and more entrepreneurs in the space, our capabilities and capacity to grow more diverse, healthy and ethical foods will only increase.
Q: What is the future of the industry in your area of expertise?A: Many would think that with the increasing interest in meat alternatives, as well as the new food guide promoting more diversity on the plate, that the meat sector is under attack from all sides. Nothing could be farther from the truth. The very same motivators behind these movements are what will make our sector stronger — the focus on health, transparency and accountability. Canada, and Ontario are posi-tioned to be the leaders in all these areas, and we will have a better food system as a result.
SIAL Canada comes to Toronto
FOODINCANADA.COM 11
SHOW PREVIEW
Franco Naccarato, SIAL Canada’s Buy Local Expert
MARKET HIGHLIGHTSGrain and oilseed prices are making or testing
bottoms, oil and the loonie are rising and the
world economic situation remains cloudy.
> Grains: The U.S. had large corn and soybean
crops last fall, and South America is piling more
on, despite a droughty first-crop season in
Brazil. Argentina may have a bumper corn crop
and Brazil’s second season crop enjoys great
seeding-time weather.
> Corn: USDA’s long-awaited February report
was a non-event, reflecting little change in the
fundamentals: slightly higher ethanol produc-
tion was offset by lower than expected exports.
Prices are sideways in the $3.95 – $3.65 range
since April, sharply lower than the pre-trade-war
levels, and trending back downward recently to
$3.73 on favourable crop conditions in Brazil,
more inventories of corn and wheat world-wide,
and lack of progress in the China trade talks.
Two factors can get prices up: weather
problems in an important production area or an
end to the trade war. The May chart has points
that signal good purchasing decisions based on
the reactions to those factors. First, is if it chal-
lenges, but can’t get through $3.65. Second, one
could buy cash now, but protect against $3.95 or
slightly higher at $4.03 with Calls or futures.
> Wheat: Chicago wheat prices trended down-
ward from $6.30 last August to the current
$4.87. This is due partly to the trade war, but
also to the drought-reduced crops in Central/
Eastern Europe and Australia that turned out
to be under estimated: Black Sea exports have
been extremely strong and yet Russia appears
to have four to five million tonnes still in reserve.
Concerns that Russia could impose export con-
trols have now completely abated.
Meanwhile U.S. wheat, which was supposed
to take over exports when the Black Sea ran out,
remains priced out of the market. After three
quarters of the crop year, U.S. wheat exports at
16.4 mt are 1.4 million below last year. Further-
more, once Chicago May prices broke out below
$5.08 on Feb. 15, the funds piled on big short
positions driving it to $4.87.
The next level of technical support is $4.30.
Buyers should buy hand to mouth in the cash
market until it establishes a clear technical bot-
tom, but protect against that $5.08 area if there
is a turn around.
> Soy oil: Soy oil fell from $0.36 a year ago to
$0.27 before a rally to the current $0.30 – $0.31
area. Much of this is due to the trade war and to
trends in crude oil prices. Like all the grain and
oilseed complex, what happens from here will
be determined by political events in the trade
negotiations, as well as at OPEC.
The price chart suggests this is pivotal timing
as it just made a head and shoulders forma-
tion with resistance at $0.3132 and support at
$0.2996. The direction of the political winds will
blow it one way or the other. We would buy cash
and protect above $0.3132.
> Sugar: The sugar market continues to be
burdened with excess supply and weak demand.
May 2019 finally bottomed at $0.11 and has traded
between there and $0.14 since last April. The
general direction of the market has been upward
since the August/October double bottom at
$0.11, currently at $0.128. A breakout above $0.14
would signal an end to the glut of sugar and is the
point where we would protect purchases.
> Natural gas: After a volatile early winter
prices caused by uncertain weather and inven-
tories, April natural gas price is mid-range at
$2.8, between the top and bottom of $3.07 and
$2.57. With considerable new supplies of liquid
NG coming on the market and a slow down
of the Chinese economy, there is uncertainty
about the direction of price change from here.
We would buy on the cash market and protect
above $3.05.
> Crude Oil: May Brent peaked at $85 last
September, then sank to $52 in late December
before rallying back half-way to the current
$66.30. Direction from here will be determined
by the tug of war between OPEC and other oil
producers’ determination to limit production
and a slowing global economy. There is relatively
strong resistance at $67.40. It will likely prove to
be the bell weather for future direction. If buyers
have done nothing, protecting above $67.40
with Calls or futures would be prudent, while
buying spot at lower prices.
> Canadian dollar: As usual the loonie roughly
follows oil, peaking in October, bottoming in
December and rallying back to the current
$0.758. The difference is that the loon rallied 62
per cent of the decline while oil only came back
half way.
Expect the correlation between the
loon and oil to continue: Canadian
commodity buyers need to protect
against a falling Canadian dollar. We
would be holding $0.75 puts on the
June or September contract.
MARKET TRENDS
MARKET COMMENTARY: Political winds are still blowingSeldom have politics so clearly affected markets as the U.S./China trade dispute. As mentioned below, wheat dropped from $6.30 to $4.90. Corn fell from $4.10 to the $3.60 area. Soybeans fell from $10.60 to $9, while U.S. soybean exports are 25 mt compared to 37.7 last year. Lean hog futures went from $80 to $55.
Obviously, not all the price pressure is from the trade issue. But directly or indirectly, much is.
What Trump wants is for the Chinese to stop their public/private sector type capitalism and investments to gain intellectual policy. It’s
unlikely that either will be achieved, especially the former because it’s fairly fundamental to the philosophy of the Chinese.
So, Trump will have the choice between no deal and declar-ing that defeat is actually victory. If the latter, like closing the government to get more money for a wall and actually getting less, then yet again we see a major segment of the U.S. popula-tion (and some Canadians) harmed for nothing.
Market Trends is prepared by Dr. Larry Martin, [email protected] or
(519) 841-1698, who offers a course on managing risk with futures and
options. For more information visit agrifoodtraining.com.
12 MARCH 2019
Larry Martin
Natural” claims on food labels continue to prolifer-ate. Polls show that while Canadians want more natural foods, they continue to be con-fused by what the term means. It’s not easy to explain its meaning to consumers but at least the CFIA, for many years, has provided some guidance to manufac-turers to minimize its misuse.
A natural food or ingredient of a food is not expected to contain, or to ever have contained, an added vitamin, mineral nutrient, artificial flavouring agent or food additive. It also cannot have any constituent or fraction thereof removed or significantly changed, with the excep-tion of the removal of water. A natural food or ingredient of a food is expected not to have been submitted to processes that have significantly altered its original physical, chemical or biological state. A table sets out processes considered by the CFIA to cause minimum changes to the food or food ingredient, and a second table describes processes considered to cause maximum change. Foods that are only subject to the former are more likely to be considered natural, those subjected to the latter less likely. The CFIA also accepts that if the food additives, vita-mins and mineral nutrients are derived from natural sources then they may still be natural ingredients and the acceptable claim would be that the food “contains natural ingredients.”
In spite of this guidance, there is still a great deal of regulatory ambiguity. The processes that are listed in the tables are not defined and therefore subject to vary-ing interpretations. It is not clear how far
back you have to trace in the processing of an ingredient: if a maximum process were applied to an enzyme that was used to create an ingredient of an ingredient, would the “natural” claim be lost? We have had enforcement threats on this issue in the past.
As there has been no broad movement by food manufacturers or consumers in Canada to insist on greater clarity, we have assumed that there will be no changes to our situation anytime soon. This assumption may be wrong. After years of dithering, our neighbors to the south may actually be close to announc-ing major changes, at least for those foods under the jurisdiction of FDA.
Current FDA guidance is very brief. It considers the term “natural” to mean that nothing artificial or synthetic has been added to a food that would not normally be expected in that food. Complaints by industry and consumers prompted the FDA to try to provide a more comprehensive definition in 1988 and 1993 but it gave up both times. In more recent years hundreds of lawsuits have been brought against food compa-nies claiming that they are misleading
consumers by using the term “natural”. This prompted the FDA to try again in 2015. By 2018, FDA had received 7600 comments, many insisting that it not be allowed on foods that had been irradiated or pasteurized, or foods that contained GMOs or high fructose corn syrup. Consumer Reports is leading a campaign to ban the use of the term in all food labelling.
Finally, FDA Commissioner Scott Gottlieb announced in March 2018 that FDA was “close to issuing standards.” The FDA would probably prefer to avoid this controversial issue as in the past but the prospect of multiple and conflicting court decisions means that it must act soon. As food lawyer Gregory Cote has commented, “Adjudicating the meaning of ‘natural’ on a case by-case and product-by-product basis in nearly 500 separate lawsuits is a costly and slow process and will almost assuredly produce discor-dant and subjective rulings that impose a patchwork of labeling standards and requirements by jurisdiction.”
Canadian companies will have to keep a close eye on developments in the U.S. If the FDA finally releases a broad prescriptive standard we will have to review hundreds of labels on exported and imported foods. This could get very complicated.
Ronald L. Doering, BA, LL.B. MA, LL.D.,
is a past president of the Canadian Food
Inspection Agency. He is counsel in the
Ottawa offices of Gowling WLG, and
adjunct professor, Food Science,
Carleton University. Contact him at
If the FDA finally releases a broad prescriptive
standard we will have to review hundreds
of labels on exported and imported foods
“Naturally complicated By Ron Doering
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FOOD LAW
FOODINCANADA.COM 13
Truth can be relative. As Benjamin Franklin once said, “Half a truth is often a great lie.” Then of course there is Vladimir Lenin’s take, “A lie told enough becomes the truth.” Perhaps it is best cap-tured by Oscar Wilde’s version, “The truth is rarely pure and simple.” Canada Dry’s version of the truth was recently met with a big challenge when it was accused of false advertising on the argument that its Ginger Ale is not made with real ginger.
A bit of truth about this brand is that it was originally Canadian, created in 1904 by chemist John J. McLaughlin, who owned a carbonated water factory in Toronto. Origi-nally called “Canada Dry Pale Ginger Ale,” the “Pale” was dropped and “Canada Dry Ginger Ale” was trademarked. The rest as they say, is history. The term “Dry” was used to describe the product’s less sweet taste in comparison to similar products of the day.
A few more truths about the brand. Ginger ale was first invented in Ireland, but the pale version is Canadian. The brand, however, is no longer Canadian. It is currently owned by Keurig Dr Pepper, after having been involved in a number of sales and acquisitions. The label still includes a vignette of Canada along with the term Canada. It is produced and sold all around the world with its proud Cana-dian branding. Over the years it has been marketed as a cool thirst quencher, mixer, party beverage in the 1960s and even a snack. In recent years it was playing up on its “ginger roots” in clever ads. The slogan “Made from Real Ginger” has adorned its labels in the U.S. since 2013.
This is where the story about truth begins.To appreciate what the truth is in this
case, one needs to examine the litigious nature of U.S. consumers. Truth is not a fact itself, it’s a belief. Belief is based on
the assemblage of what is perceived to be facts. The perceived facts are assembled in a manner to fit the wanted outcome. So, if the narrative is to tell the story that the state-ment “Made from Real Ginger” is mislead-ing, then what are the facts? The beverage is made with ginger flavour. The statement does not actually say “made with real ginger” but “made from real ginger.” The label also says it’s made with “100 per cent Natural Flavours.” The ingredient list says so also. Is ginger flavour not made from real ginger? If not, what is it? Would it be reasonable to expect Canada Dry Ginger Ale to be made with flakes of ginger root? Would that be real? Are not most other ginger ales of this type made with ginger flavour? What has the last 100-plus years demonstrated that Canada Dry Ginger Ale is? It’s a soda with ginger flavour. If ginger flavour, an extract from real ginger, is real, how much is needed to make the statement “Made from Real Ginger” both factual and truthful? This is at the heart of the matter before U.S. courts.
Lawyers like to use words like “misrepre-sentation,” “breach of express and implied warranties,” and “unjust enrichment.” These are powerful negative terms that play well in our society’s “skeptical” consciousness. So how would the statement “Made from Real Ginger” be a breach of a warranty? For one, it could be so because the food does not contain what it claims to have in it. That would be “made from real ginger.” It may also be that the amount is not what is expected. How much real ginger is expected in ginger ale? Is it enough to just charac-terize the product? That is the goal of a flavour? The case is fascinating. It intro-duces the idea that the presence of a small amounts of ginger extract (flavour) does not deliver the health benefits attributed to ginger. Does any ginger ale do this? The label does not claim this health benefit.
So, it must then be implied somehow. Is it even realistic that a consumer might expect health benefits from ginger ale, a soda? The unjust enrichment would be a matter where the company unjustly benefited from the sales of the product at the expense of consumers who did not benefit at all. The slogan is reported to have caused a nine per cent spike in sales in just six months. If the enrichment was unjust, it would impose an obligation for the unjustly benefitted party to make restitution. A successful narrative must lead to restitution, followed by puni-tive damages. That is a truth itself.
Although we feel a bit more secure that such lawsuits do not happen in Canada with the same regularity as in the U.S., they do happen. The case in the U.S. has inspired similar action in Canada. A lawsuit in January was filed in Québec, demon-strating that even in Canada it may not be sufficient for labelling or advertising to be compliant with government regulations. In view of food labelling considerations, the Canadian Food Inspection Agency (CFIA), does provide guidance on making “real” type claims. Its guidance states, “Claims that describe an ingredient within a food as “true,” “real,” “genuine” or any similar term such as “Made with Real [naming the ingredient]” are acceptable if the named ingredient is present in the food, regard-less of what form (e.g., frozen powdered, ground, concentrated, etc.). It would be interesting to see how CFIA’s guidance weighs in on the case in Québec. The CFIA is also planning on proposing in the early part of 2019, food labelling modernization regulations that will include matters related to highlighting ingredients and flavours. Perhaps that will reinforce the guardrails in such matters. Until then, “the truth is in the lie of the beholder.”
Gary Gnirss is a partner and president
of Legal Suites Inc., specializing in
regulatory software and services. Contact
him at: [email protected]
Canada Dry by DesignGary Gnirrs
REGULATORY AFFAIRS
14 MARCH 2019
Foodborne pathogens glob-ally cause millions of cases of disease every year, and are a major concern for the public, industry and government. The annual cost of screening, recalls and therapy for foodborne disease in North America has been estimated to be in excess of a billion dollars annually. In an attempt to reduce food safety recalls, recent legislation in the U.S. (Food Safety Modernization Act — FSMA) and Canada (Safe Foods for Canadians Act — SFCA) focuses on prevention rather than merely respond-ing to the contamination.
Pathogen DetectionThe detection of pathogens in foods currently is dependent either on culture of the offending pathogen — it can take weeks to identify pathogens — or on genetic approaches that also take some time to be conducted and require very specialized laboratory equipment and personnel. Both approaches often involve shipping food samples for testing in a dis-tant lab site, implying that contaminated food is likely to be distributed and sold before pathogens are identified. This is, in part, the reason that food recalls can cost tens of millions of dollars.
A Canadian InitiativeThe team headed by Dr. Michael Rie-der at the Robarts Research Institute at Western University (formerly the University of Western Ontario in London) and partnered with Adept Diagnostics have developed a new rapid assay kit for E. coli 0157, a strain of bacteria that has produced significant foodborne disease. This kit specifically detects the bacteria by looking for a protein unique to this
strain of E. coli and identifying this using flow-through technology. Food samples are incubated with media for several hours and then an aliquot is withdrawn and placed on a cassette. After several minutes the test result can be read. Similar to other flow-through kits such as pregnancy tests, the test will show one line on the cas-sette indicating that the flow-though was successful. The presence of a second line indicates that there was E. coli 0157 in the food sample and that the lot from which the sample was obtained is contaminated with a serious foodborne pathogen.
This approach has several advantages. The first is the simplicity of the sys-tem. The kit does not require delicate or expensive technology and can be conducted without the need for highly qualified laboratory personnel. This can allow for the test to be conducted in the food handling or processing facil-ity without the need to send samples to distant testing facilities and giving the food processing facility control over the testing process. As well, using these kits allows for testing that is at the same cost or less expensive than other current test-ing approaches. Finally, given the rapidity of the test and by obviating the need for shipping samples the kit allows for much
more rapid and timely assessment of food safety, which can allow for safety to be assessed before food is widely distributed, thus significantly reducing the impact and cost of potential recalls.
The rapid assay kit for E. coli O157 has been approved by Health Canada for use with meat. Validation studies are underway not only for other food groups but also for regulatory approval in the United States.
The research group and their partners believe that this approach has consider-able potential for other common and important foodborne pathogens. Work in their laboratory is well along the way to develop kits for generic Listeria as well as a kit for Listeria monocytogenes with Sal-monella and Campylobacter being the next bacteria targeted for kit development. Plans are to have the rapid assays for E. coli 0157 and generic Listeria widely available by the end of 2019.
Academic-Industry Partnership FundingFunding for this research was provided by MITACS, a national, not-for-profit organization founded in 1999 designed to build partnerships between academic institutions and researchers with industry to support industrial and social innova-tion in Canada.
More InformationFor more information about the rapid E. Coli 0157 and other tests in development referenced in this article, contact David Ray at Adept Diagnostics via e-mail at [email protected].
Dr. R.J. (Ron) Wasik, PhD, MBA, CFS, is president
of RJW Consulting Canada Ltd. Contact him at:
Canadian initiatives in food safetyRon Wasik
FOODINCANADA.COM 15
FOCUS ON FOOD SAFETY
The kit does not require delicate or expensive
technology and can be conducted without the
need for highly qualified laboratory personnel
16 MARCH 2019
Meat consumption has been under scrutiny for years in Canada and around the world, with animal wel-fare, food safety concerns and cost gaining more and more consumer attention. In terms of red meat consump-
tion, data from Statistics Canada’s “Canadian Commu-nity Health Survey’” shows that Canadians reduced it by about one serving per week from 2004 to 2015. And while meal kits currently provide another avenue for meat and poultry products to shine, many see the new emphasis on plant-based proteins in newest Canada’s Food Guide (and the renaming of the ‘meat and alter-nates’ food group to ‘protein’) as one more of 1,000 cuts.
Plant-based protein is now perceived by more Cana-dians as being cheaper, better for you and also better for the planet. Indeed, in a new article, “In Defence of Canada’s Food Guide” written by Dr. Catherine Mah,
Canada Research Chair in Promoting Health Populations at Dalhousie Uni-versity, and her colleagues said, “food sustainability researchers have increas-ingly agreed that to feed a growing human population while operating within the planet’s biophysical boundaries, we will need to shift towards a more plant-based diet.”
Dr. Sylvain Charlebois, dean of the Faculty of Management at Dalhousie, notes that meat is only one of many protein sources presented in the new Canada’s Food Guide and that the Guide suggests other sources might be more nutritious. “So, there is some discomfort with our friends in the beef industry, pork and dairy too,” he says. “I think all meat groups have to look at their meat as an ingredient — for example, promoting a meal like meatloaf with lentils. The commodity groups used to try to convince Canadian con-sumers to please eat what we produce, and now they have to say here’s how you can use meat. They need to ‘befriend the enemy,’ talk to Pulses Canada and the vegetable folks and so on about new ways to market meat.”
However, Charlebois believes the plant-based protein narrative is “so over-powering right now” that it’s hard for meat groups to make any impact. “The beef industry’s response to this has been the Canadian Roundtable for Sustain-able Beef, which tries to make beef be seen as a sustainable product, and it’s a great initiative but I think it’s about 10 years too late,” he says. “People have
Keeping meat on the plate How Canada’s meat groups are promoting products this year, in light of the new Canada Food Guide
— By Treena Hein —
MEAT SECTOR REPORT
FOODINCANADA.COM 17
made up their minds. 2014 was the year veganism showed up and beef also went up in price and so 2014 spooked the beef consumer. They started looking elsewhere. Pork demand is slightly lower than it has been but it’s doing OK. Chicken is up as well, and from a sustainability perspective the case for chicken and pork is much stronger than
beef. And we’re also better at cooking pork now than we were years ago.”
For her part, Joyce Parslow, executive director of marketing and consumer rela-tions at Canada Beef, notes that retail beef demand is strong, and currently at levels not seen since the late 1980’s. Some of that is due to the fact that beef has different price points for various products. In terms of cur-rent marketing strategies, Canada Beef is currently running three TV ads about nutri-tional benefits of beef, and will soon pub-lish print ads explaining how most beef in Canada is produced through cattle grazing on marginal land not useful for other pur-poses. “We are focusing on the untold
Both Canada Beef and the Canadian Pork Council are capitalizing on the new Canada’s Food Guide healthy plate approach to show that meat is still an important source of protein
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and little-told stories about beef, showcasing its value environmentally and nutritionally,” says Parslow. “The landscape of Canada offers a perfect fit for beef production.”
In alignment with Charlebois’ views, Canada Beef is also using the Food Guide’s “healthy plate” model to develop beef meal kit ideas. Parslow notes that “there is debate” about whether the new Guide will have a long-term negative impact on animal-based protein consumption. “Beef/red meat does seem to be a lightning rod for the debate, but the new Food Guide supports beef and other animal proteins as part of a healthy diet. There are, however, more choices than ever in the protein category, and all food sectors must recognize that the traditional sit-down meal has largely given way to quick on-the-run meals, eating out and so on.”
Mary Ann Binnie, manager of nutrition and industry relations at the Canadian Pork Council (CPC), notes that while the Guide’s “visual” has been refreshed, “the advice to enjoy lean red meat with lots of vegetables, fruit and whole grains remains the same as previous iterations.” In a late January press release however, CPC Chair Rick Bergmann states, “we are concerned that Canadians might interpret this new version as a recommen-dation to reduce meat consumption in favour of plant-based proteins.” CPC also points out that reductions in red meat consumption could have serious repercussions on certain groups of people who might not consume enough nutrients such as iron.
Pork consumption has been holding relatively steady since 2010, accord-ing to Statistics Canada, notes Kevin Mosser, national marketing director at Canada Pork International. To maintain or increase that level, in 2015 the entire industry developed the “Verified Canadian Pork” brand to high-
18 MARCH 2019
MEAT SECTOR REPORT
Dr. Sylvain Charlebois, dean of the Faculty of Management at Dalhousie University, notes that meat is only one of many protein sources presented in the new Canada’s Food Guide and that the Guide suggests other sources might be more nutritious. He says the meat industry needs to “befriend the enemy,” and suggests talking to groups like Pulses Canada about new ways to market meat along with plant-based proteins
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Bernd Mense. Master Butcher. Burger Guru.
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light the quality and safety of Canadian pork. Recent marketing efforts by Canada Pork include programs which focus on “opportunity gaps.” Seasonal cooking methods and traditional themes “provide retail and foodservice operators,” said Mosser, “with innovative merchandising ideas, marketing resources and attrac-tive point-of-sale materials that add ‘sizzle’ to the meat case or on the menu.”
Poultry sector strengthPork and beef have some heavy competition in chicken. Leading into this Food Guide update, chicken is posi-tioned as Canada’s No. 1 source of protein. Chicken Farmers of Canada (CFC) Director of Brand and Communications Lisa Bishop-Spencer says that’s due to competitive cost, versatility and nutritional profile. In late 2017, CFC expanded its “Raised by a Canadian Farmer” brand to incorporate on-farm programs related to care, quality and sustainability. “We have signed with over 27 processors, retailers and foodservice operators [for brand use] and there are a lot more coming,” says Bishop-Spencer. “In 2019, we are expanding our reach to Rogers, TVA and Corus networks, as well as various digital properties. We are expanding our reach to differ-ent audiences, as well. We also have an extremely robust social media strategy.”
Indeed, Canadian Poultry and Egg Processors Council President Robin Horel forecasts that chicken consumption will continue to grow in Canada and at a higher rate than population growth, immigration included. “So, I guess that we’re predicting that we’ll
gain market share away from other sources of protein,” he notes, “likely meat.” While Horel doesn’t know of any new processed chicken offerings coming this year, he does predict that his members will launch more new turkey products, from primary processed products like turkey parts, smaller parts from smaller birds, split breasts and ground turkey, to further processed prod-ucts like scaloppini and deli options. The turkey indus-try has worked hard over the last few years to expand its reach well beyond whole birds for holiday feasts.
Horel also expects to see more transparency on poultry packaging that meets consumer demands to know where products come from and how they are produced. He says that on grocery packs and also res-taurant menus, the public is already seeing more labels that tie back to a specific farmers, or to specific meth-ods of production such as raised without antibiotics.
Meal kitsIn Charlebois’ view, meal kits represent good continued opportunities for the meat sector. While meal kit industry consolidation will continue and strong profits are yet to be seen, consumer interest remains strong — and is sup-ported by the Food Guide’s new “healthy plate” focus.
HelloFresh Canada, Canada’s largest meal kit firm, now delivers to 95 per cent of the Canadian population and many other firms, from Wal-Mart to Amazon have entered the market through both home-delivered and in-store sales.
Some recent HelloFresh Canada meat meal menu choices include “Saucy Beef Stir-Fry with Snow Peas and Toasted Cashews,” “Sizzling Pork Fajitas with Roasted Peppers, Lime Crema and Salsa Fresca,” “Cornflake-Crusted Chicken with Sweet Potato Mash and Garlic-Maple Dip” and “Turkey Penne & Rosé Sauce.” The cost of a HelloFresh or Chef ’s Plate (now owned by HelloFresh) meat meal kit is currently the same regardless of meat/poultry type, but it is uncertain if that will be the case in future.
20 MARCH 2019
Meal kits will continue provide opportunities for the meat sector to be included on consumer plates
MEAT SECTOR REPORT
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How Canadian companies are capitalizing on cannabis’s next wave: value-added products
— By Rebecca Harris —
or many people, mari-juana conjures up an image of teenagers in the basement, pass-ing around a joint, the room filling with smoke and a distinctive skunk smell. But that picture is as outdated as the 1936 hysteria-
fuelling propaganda movie, Reefer Madness. Today, the average age of an active can-
nabis consumer is 40, according to a 2018 BDS Analytics survey entitled “Cannabis in North America: Public Attitudes and Actions Toward Cannabis in the U.S. and Canada.”
And while smoking bud is still popular, consuming cannabis in extracted forms is on the rise. In Colorado, for example, flower cap-tured 63 per cent of all cannabis sales in 2014. Fast-forward to 2018, when flower com-manded just 43 per cent of the market, while branded products like concentrates, edibles and topicals surged. In all legal U.S. markets, sales of concentrates are expected to nearly surpass flower sales by 2022, at $8.4 billion, compared to $8.5 billion for flower sales.
In Canada, cannabis oil sales outpaced those of dried flower by 56 per cent in the first three months of 2018, according to Health Canada. And that might be just the tip of the iceberg: only dried and fresh canna-bis, oil, plants and seeds are currently allowed under Canadian legislation, with cannabis edibles and concentrates expected to be legal by Oct. 17, 2019.
“We’re seeing increasing consumer accep-tance of [cannabis], and many consumers who start to engage in this business don’t necessar-ily want to do it with a smoked product. They would rather have an infused beverage or food product or even capsule,” says Jim Hamilton, president and CEO of Laval, Que.-based Nep-tune Wellness Solutions, a former krill oil man-ufacturer that made the switch to cannabis.
“There is a greater comfort, especially when you look at some of the reasons for use, which include [alleviating] pain, inflam-mation and anxiety, as well as helping with relaxation and sleep. I think we’ll see more and more mainstream consumers [use these products] as the delivery forms become avail-able and are formulated in a fashion that is specific to their needs.”
FOODINCANADA.COM 21
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theory is if you can grow in an adjacent space, your chances of success are far greater than if you try and do something that is totally outside your competen-cies,” says Hamilton. “When we looked at cannabis, we thought, ‘my gosh, this is exactly what the food, supplement and nutrition products industry products industry does and wants and needs.’ And it was completely consistent with what we’ve always done.”
In 2017, Neptune Wellness Solutions divested its krill oil business and embarked on a strategy to become a global leader in cannabis extraction, purifica-tion and formulation of value-added products. Since then, it has been readying its 50,000-sq.-ft. GMP-certified facility in Sherbrooke, Que., securing multi-year contracts with suppliers such as Canopy Growth, and forming partnerships. For example, Neptune entered a license deal with Switzerland’s Lonza Group for the production of cannabis oil capsules. All the while, Neptune moved along the vari-ous steps of the licensing process with Health Canada, and received its license to process cannabis for the production of cannabis extracts and oils earlier this year.
“Our long-term vision for the site is for it to not only be an extraction facility, but purification and formulation — putting those active compounds into vari-ous delivery forms,” says Hamilton. “[Cannabis] is a very complex plant with many different components. So, we’ll be able to extract THC and CBD, but I think increasingly with time, we’ll see far more compounds from the plant being utilized in formulations in the future.”
Vancouver-based Lyf Food Technologies is another company leveraging its expertise to capitalize on cannabis’s next wave. CEO Paolo Pero runs a whole-sale food manufacturing company that supplies grocery stores, health and well-ness stores and pharmacies across Canada with a wide range of baked goods and confectionary products. Matthew Amado, president of Lyf Food Technologies, worked with Pero for about five years. The two teamed up to launch Lyf, which will manufacture a variety of cannabis edibles, including baked goods, confec-tionary, chocolate and raw health food items.
“We decided a couple years ago that cannabis edibles was going to be a massive industry and we’re utilizing our expertise in high-volume, high-qual-ity and high-efficiency manufacturing to service the market,” says Amado. “We have a food manufacturing background, so we thought that edibles was a natural progression. Research and data overwhelmingly supports other methods of consumption, other than smoking.”
Amado points to a Deloitte report that found the legal recreational can-nabis market in Canada is expected to generate sales of up to $4.34 billion in 2019, while the medical cannabis market will account for between $770 million and $1.79 billion. The report also found that there is considerable interest in cannabis-based edible products: six out of 10 likely consumers are expected to choose edible products.
Once edibles become legal, Amado is predicting that edibles will capture up to 25 per cent of the overall cannabis market. “My opinion is that num-ber is only going to increase and probably creep up to 40 per cent over the next three to five years,” he says.
Lyf Food Technologies has the ability to manufacture more than $250 mil-lion worth of value-added cannabis products per year, once final regulations
22 MARCH 2019
With the valued-added cannabis market shaping up to be a lucrative one, processors are hoping to find gold in this new green rush. And for those in related fields, moving into the cannabis space just seems natural. “As you get to know this business more and more, you see the parallels between the health, nutrition, wellness, food and supplement business,” says Hamilton.
Three years ago, Neptune Wellness Solutions started looking at ways to diversify its business by leveraging its expertise in extraction and clinical research. “One of the compounds that hit our radar screens was cannabis. The ph
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Cannabis contains hundreds of chemical substances. More than 100 of these are known as cannabinoids, which are made and stored in the plant’s trichomes — tiny hairs that stick out from the flowers and leaves of the plant.
THC: Delta-9-tetrahydrocannabinol (THC) is responsible for the way one’s brain and body respond to cannabis, including the high and intoxication. Cannabis that contains very low amounts of THC in its flowers and leaves (less than 0.3%) is classified as hemp.
CBD: Cannabidiol (CBD) is another cannabinoid. Unlike THC, CBD does not produce a high or intoxication. CBD is being studied for its therapeutic uses.
Depending on how they are made, these products can have a range of potencies of THC and CBD:
CANNABIS OIL: Cannabis extract dissolved in oil. Can be used to make other forms, for example, edibles.
CHEMICALLY CONCENTRATED EXTRACTS: (for example, hash oil/shatter/budder/wax) Highly concentrated cannabis extract dissolved in petroleum-based solvent such as butane.
EDIBLES: Foods and drinks containing extracts of cannabis.
TINCTURES/SPRAYS: Cannabis extract dissolved in a solvent, often alcohol. Can be used to make other products, for example, edibles.
CREAMS/SALVES/LINIMENTS: Cannabis extract preparation prepared with alcohol, oil or wax and applied to the skin.
SOURCE: HEALTH CANADA
PROCESSORS – Cannabis
SYNERGETIC FLAVOURSMASKING AGENTS
ENHANCERSHEMP TYPE FLAVOURS
BELL FLAVORS & FRAGRANCES450-444-3819 | infocanada@bell� .com | 3800 Isabelle, Brossard (Québec) J4Y 2R3
TERPENE TYPE FLAVOURSSTRAIN SPECIFIC TYPE FLAVOURS
FOODINCANADA.COM 23
The average consumer of cannabis is over the age of 40 and would prefer to ingest it
in the form of edibles, beverages, pills, or oils
are passed and the company receives its standard processing license, which is expected to happen in the coming months. The products will be manufac-tured in a new 10,500 square foot manufacturing facility in Kelowna, B.C. that Lyf purchased last year. In addition to producing its own products, Lyf plans to offer co-packing and private label solutions for other companies.
In Amado’s estimation, Lyf ’s edibles will hit the market in Q1 2020. “We think we’re going to be ready prior to that, but my opinion is that although Health Canada and the government are doing a great job, they have a lot on their plate and products still have to be approved,” he says.
Value-added cannabis products also have huge potential on the medical side. Brent Zettl is the former of CEO of licensed producer CanniMed Therapeutics. After the company was acquired by Aurora Cannabis Inc., Zettl moved into the processing side of the business with his new company, Zyus Life Sciences.
The Saskatoon-based company will focus on phytotherapeutics, or plant-based medicines, and is using cannabinoid-based formulations as a basis. The company will purchase cannabis from licensed producers and produce value-added medical grade cannabis oil and oil-derived products such as cap-sules and topical creams for the global medical market. “The whole impetus around Zyus is to try to re-imagine what a medicine can do for the human population and our society as a whole,” says Zettl.
Zyus is upgrading a former ethanol extraction facil-ity in Saskatoon. Phase one, targeted for completion by the end of March, will be capable of producing the equivalent of 500,000 50 ml bottles of cannabis per year. At full capacity, targeted for the first half of 2020, its projected processing capacity is 35 million 50 ml bottles per year.
With the global medical cannabis market excepted to exceed US$55 billion by 2024, Zettl says the poten-tial is huge. “The baby boomers are the biggest [target] demographic and they’re probably going to access these products as they reach their sunset years and head into related health issues,” says Zettl. “We’re looking at dis-tribution in 19 countries, including Canada, United States, Australia and European countries, so our it’s 1.1 billion people collectively in terms of our reach.”
With the global cannabis market set to explode and consumer demand rising along with it, that image of teenage stoners in the basement has indeed gone up in smoke.
24 MARCH 2019
As of mid-January, the new Safe Food for Canadians Regula-tions (SFCR) require certain preventive and traceability protocols at just about every mid-size and large Cana-dian food businesses — any that import, prepare food for
export, or ship food products across provincial/terri-torial boundaries. However, certain requirements are being phased in over the following 12 to 30 months by the Canadian Food Inspection Agency (CFIA).
How much change will be required in the use and management of conveyor systems and other food processing equipment will depend to some degree on what standards and practices already exist in a particu-lar firm or food sector. In Canada’s baked goods sec-tor for example, not much impact is expected, notes Paul Hetherington, president and CEO of the Bak-ing Association of Canada. While it’s still early days, Hetherington says his members already have in place HACCP and sanitation programs that address the concerns laid out in the CFIA guide related to SFCR.
“They have yet to do a ‘deep dive’ on the regulations,” he says, “but believe at this time there won’t be much of an adjustment.”
Canadian Poultry and Egg Processors Council President Robin Horel does not expect much impact in his sector either. He says the idea behind the SFCR is for all commodities and processing companies in Canada to be at the same level, and notes that in poultry, egg and red meat processing “we have been inspected forever, and all of things in the new regulations, we’ve been doing for decades.”
However, what is new for all sectors is a shift to outcome-based inspec-tion. While it’s still a requirement that a given piece of equipment such as a conveyor does not have nicks or other damage or any contaminants present, some specifics are no longer required, and the broader focus is on outcomes instead. In a processing plant for example, Horel explains that “before, the regulations could state that a drain had to be a certain size or in a certain location and inspectors checked that this was the case. Now it’s an outcome that’s looked for, for example, that there is no pooling water. That’s what the company needs to achieve, and company leadership decides the best way to get there. In this example, the outcome might be achieved by having a drain of a certain size or using more than one drain, perhaps using drains in con-junction with ventilation, and so on.”
Media relations at CFIA confirms that “Operators can use their methods of choice for achieving the requirements. Their decisions will be based on the type of food they are processing and must be clearly specified in their pre-ventative control plans, if they are required to have one.”
THE SHIFT to outcome-based inspectionUnder the new SFCR, what is the impact to the use and inspection of conveyor systems and other food processing equipment? — By Treena Hein —
PACKAGING EQUIPMENT ~ Conveyors
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An example that relates to meat products themselves is shelf life. “With the SFCR, companies in this instance have to show that the outcome of product being safe to eat to its best before date is backed up with data,” Horel explains. “This means the company has the numbers for CFIA showing why a particular product is ensured to safe to use to that date, and that there are validated processes in place that result in those numbers. The data in this case would include product analysis such as bacterial counts, ensuring the right temperature is maintained in the processing plant, in the packing plant, through the distribution chain, and so on.”
In terms of preventing cross-contamination, compa-nies must meet the SFCR outcomes of conducting a hazard analysis to identify all hazards that present a risk of contamination to a food for each input and step in the production, and “establish control measures to prevent hazards or reduce them to an acceptable level.” CFIA media relations also notes that the agency can provide guidance for operators on preventing cross-contamina-tion and other cleaning and sanitation programs.
Of course, SFCR requirements for conveyors still state specific physical parameters relating to any con-veyor “or equipment that is used in the manufactur-ing, preparing, storing, packaging or labelling of a food or in the slaughtering of a food animal.” This equipment, among other things, must be appropri-ate for the food and for the activity being conducted, be designed, constructed and maintained to prevent contamination of the food, and be constructed of, and maintained using, materials that are suitable for their intended use.
If those materials present a risk of contamination of the food, they must be corrosion-resistant, durable, capable of withstanding repeated cleaning and, if nec-essary to prevent contamination of the food, and “free of any noxious constituent.” A more outcomes-based part of the new regulations states that conveyors also must “be equipped with instruments to control, indi-cate and record any parameters that are necessary to prevent contamination of the food.”
So overall, it’s a general shift in regulatory emphasis from CFIA inspecting to see if this or that specific tool or plant feature or process is in place, says Horel, to companies having science-based validation for each outcome required. This change in focus, in his view, is in line with what is happening around the world.
Ron Judge, director of Quality Assurance at Maple Lodge Farms, says CFIA is being “very clear” that outcome-based is the way regulation will pro-ceed, moving forward. Right now, Maple Lodge Farms is working with CFIA staff and using its guidance documents on validation of various processes. “We are pleased about the overall direction,” Judge says. “Less prescriptive-ness is what the industry was looking for; it allows companies to remain agile and innovative while meeting their regulatory obligations, which is what is needed in today’s world where technology is evolving rapidly. The devil is in the details and it’s a learning process right now on both sides but it’s a posi-tive direction.”
Horel echoes the sentiment. “It’s the way it should be,” he says. “It’s a learning curve right now for inspectors and for our members and we’re all getting there. And I think CFIA has done a good job going around the world to explain the change in focus to our regulations so that importers and government agency staff in various countries understand the why and how, and so that Canadian products are still accepted as imports as they always have been.”
Related to this change in regulatory focus is that outcomes are related to a new plant licensing system (bakeries, for example, says Hetherington, have until summer next year to get licensed). The system allows for firms to have several similar plants under one license or perhaps get two different licenses for different areas in the same plant. This promotes efficiencies and avoids the need to meet outcomes that aren’t related to particular processing activi-ties. As the CFIA states on its website that the new licensing system “rec-ognizes that not all food businesses are alike, and allows them to structure their licences to fit their unique needs,” and “aligns Canada’s model with internationally-accepted best practices.”
26 MARCH 2019
Operators can use their methods of choice for achieving the requirements. Their decisions will be based on the type of food they are
processing and must be clearly specified in their preventative control plans — CFIA
PACKAGING EQUIPMENT ~ Conveyors
If materials used in conveyor systems present a risk of contamination of the food, they must be corrosion-resistant, durable, capable of withstanding repeated cleaning and free of any noxious constituent
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NOUVELLESSmuckers agrandit et améliore son usine de SherbrookeSmucker’s Foods of Canada Corp. a reçu du gouvernement fédéral un investisse-ment pouvant atteindre 1,8 million de dollars pour moderniser son équipe-ment. Smucker’s envisage de lancer la production de crème fraîche épaisse et de transformer de nouveaux formats de lait évaporé et de lait concentré sucré à son usine de transformation de Sherbrooke.
Ce financement fait partie d’un inves-tissement global de 11,7 M$ de la part de Smucker’s Foods pour agrandir l’usine et mettre en place du matériel et des sys-tèmes de production à haut rendement. L’entreprise qui fournit déjà le Canada en produits Eagle Brand et Carnation élar-gira son offre et, pour ce faire, augmentera de presque quatre millions de tonnes sa demande de lait canadien.
À ce jour, 19 transformateurs laitiers ont
été jugés admissibles à un financement d›une valeur totale de plus de 21,4 M$ dans le cadre du Fonds
d›investissement dans la transformation des produits laitiers d›une valeur de 100 millions de dollars, et ce, pour un large éventail de projets: fromage, séchage du lait, yogourt, crème et beurre.
L’étiquetage erroné des produits de la mer persiste au CanadaSelon une étude sans précédent réalisée par des chercheurs de l›Université de Guelph (U de G), le Canada continue de subir un problème d’étiquetage erroné du poisson, et ce problème persiste tout au long de la chaîne d’approvisionnement.
Dans une seconde étude, les chercheurs ont découvert que 32 % des poissons étaient mal étiquetés à la source, et que le nombre d’échantillons mal identifiés aug-mentait au fur et à mesure que l’aliment se déplaçait dans le système alimentaire.
« Nous étudions la fraude relative aux poissons et fruits de mer depuis une décennie », a déclaré le professeur Robert Hanner, auteur principal de l’étude. « Nous savons depuis longtemps qu’il y a des problèmes, mais cette étude constitue la première démarche qui va au-delà du simple constat, et qui s’attarde aux endroits où se produisent les problèmes dans la chaîne d’approvisionnement alimentaire. »
Les résultats révèlent que les er-reurs d’étiquetage se produisent avant l’importation du poisson au Canada, ainsi que tout au long de la chaîne d’approvisionnement, précise le pro-fesseur de biologie intégrative. « Cela ne semble toutefois pas se limiter aux marchés étrangers, mais se rencon-trer également chez nous. L’Agence canadienne d’inspection des aliments (ACIA) s’est associée à nous pour trouver activement des solutions à ce problème persistant », ajoute-t-il.
Récemment publiée dans la revue Food Research International, l’étude a été réalisée en collaboration avec l’ACIA. Les chercheurs de l’U de G ont examiné 203 échantil-lons de 12 espèces clés ciblées provenant de divers importateurs, usines de transfor-mation et détaillants en Ontario. Parmi les échantillons, 141 (69,5 %) provenaient de détaillants, 51 (25 %) d’importateurs et 11 (5,5 %) d’usines de transformation.
Les chercheurs ont identifié les échan-tillons à l’aide de codes à barres selon l’ADN. Développée à l’U de G, cette technologie permet aux scientifiques de déterminer les espèces d’organismes à l’aide d’une petite section normalisée de matériel génétique.
Les résultats ont révélé que 32 % de l’ensemble des échantillons avaient été mal étiquetés: 17,6 % lors de l’importation, 27,3 % dans les usines de transformation et 38,1 % chez les détail-lants. « Le taux plus élevé d’étiquetage erroné dans les échantillons
FOODINCANADA.COM 27
ACCENT ALIMENTAIREMARS 2019
LUDA Foods reçoit un prix DUX pour son supplément de protéines végétalesAliments LUDA, fabricant de soupes, sauces et as-saisonnements situé à Pointe-Claire, a remporté un prix avec son supplément de protéines végétales LUDA H lors du Gala DUX qui s’est déroulé le 30 janvier dernier.
Près de 500 professionnels issus de différents secteurs d�
