ARCHIVE: 5 MINUTES WITH . . .
 | Leading Change in the Food Sector Galen G. Weston
Executive Chairman,
Loblaw Companies Limited July 11, 2011 | Galen G. Weston is Executive Chairman of Loblaw Companies Limited, Canada’s largest food retailer and a leading provider of drugstore, general merchandise, and financial products and services. Five years ago, Loblaw Companies undertook a renewal plan to ensure the growth and stability of the business well into the future. During that time Mr. Weston has overseen significant improvements in fresh foods, the strengthening and growth of the President's Choice and No Name brands, the emergence of the Joe Fresh brand as one of the country’s top fashion brands, and the addition of T&T, Canada’s leading Asian supermarket chain to the Loblaw portfolio of banners, positioning it to serve the growing ethnic customer segment. An advocate of food sustainability and diet as solutions to health-related issues, Mr. Weston has led a range of initiatives that include an industry-leading sustainable seafood policy, the reduction of plastic bag use, the establishment of the Loblaw Companies Limited Chair in Sustainable Food Production at the University of Guelph, and the development of The Conference Board of Canada’s Centre for Food in Canada, which aims to develop a framework for a national food strategy. Loblaw is helping to tackle these complex issues in ways that enable it to compete successfully today while preparing for the world of tomorrow. It is a highly strategic, values-based approach to doing business that helps Loblaw serve its customers better and, in so doing, makes Loblaw a higher-performing organization. In 2010, in concert with Corporate Knights, The Globe and Mail recognized Loblaw as the top Corporate Citizen in Canada.
InsideEdge: You are a champion investor in the Conference Board’s Centre for Food in Canada. What impact do you hope this project will have on the food sector and the broader economy? Why have you chosen to support the Conference Board’s initiative? Galen G. Weston: My family has been in the business of feeding Canadians for more than 126 years through the Weston Bakery and Loblaw businesses, so—as you can imagine—long-term trends in food are central to what we do. There are a number of long-term challenges facing the food sector. These include the security, safety, and sustainability of our food supply and the impact diet can have on the future health of Canadians. I believe we have an opportunity to develop long-term strategies for dealing with these challenges. The Conference Board has a strong reputation for thoughtful, well-researched, strategic planning, so it is an entirely appropriate organization to complete this work. InsideEdge: Do you think that the impact of the food sector on Canada’s economy and society is well understood? Galen G. Weston: From our perspective, there is a great deal of education to be done. The food sector has grown to be one of the top industries in Canada—and, of course, food plays a critical role in our daily lives. The Conference Board’s initiative can shine a bright light on the impact of the sector, facilitate a much-needed discussion about its future, and help to lay the groundwork for initiatives to help meet tomorrow’s challenges. When it comes to food, Canadian consumers are more discerning and informed than ever. They have a good idea what they want. InsideEdge: Do you think food is a strategic resource for Canada, given the projected significant increase in the future global demand for food? What do you think this will mean for food companies and retailers in Canada? Galen G. Weston: Canada is one of the world’s great food exporters. One of our challenges will be finding the right balance between ensuring our domestic food supply is secure and sustainable, and continuing to grow a vibrant export business. Ensuring that we have the scale to compete and that we take full advantage of opportunities to add value to food production will be critical to the contribution that the food sector can make to Canada’s economy. InsideEdge: How is the Canadian food consumer changing, both in expectations and in diet, and how is this affecting the grocery business? Galen G. Weston: Canadian consumers are more discerning and informed than ever. They have a good idea what they want. There is growth in the ethnic/international and the natural/organic segments, and there is increasing interest in locally produced foods. In addition, the link between diet and health will be an increasingly important consideration for consumers. We need to strike a balance between serving the emerging food trends and keeping food prices at appropriate levels. We believe that Loblaw is very well positioned to help find solutions to these challenges. InsideEdge: In 2009, Loblaw announced its Sustainable Seafood Commitment Initiative—a commitment that, by 2013, all of the fish sold in its stores will be sustainably harvested. Why did you launch this? Galen G. Weston: While the demand for quality seafood is on the rise around the world, climate change, pollution, and overfishing are taking a toll on our seas and oceans. Seventy per cent of the world’s fish stocks are at or beyond their capacity and on the verge of collapse. Imagine if that were true of our agricultural output. We would be taking radical action. As Canada’s largest buyer and seller of seafood, Loblaw has decided to take the necessary steps for positive change by launching our Sustainable Seafood Commitment. Through our Sustainable Seafood Commitment, we’re committed to selling only sustainable seafood products by the end of 2013. We’re committed to only selling sustainable seafood products by the end of 2013. We aren’t just talking about our own brands, but every brand we carry. Canned, frozen, fresh, wild, and farmed seafood products—as well as anything that contains seafood products, such as vitamins, pet food, and juices—will be 100 per cent sustainably sourced. As we determine the status of certain species that are at risk, we stop selling those products and will only begin selling them again when we have found a sustainable third party-certified source for those species. The first comprehensive sustainable seafood commitment of its kind in Canada and among the leading ones in the world, our Sustainable Seafood Commitment is aligned with one of our five corporate social responsibility principles: sourcing with integrity. Retailers can lead change. We hope that others will follow. InsideEdge: Obesity has been called an epidemic in Canada. What role can food companies and grocers play in helping people eat well? Galen G. Weston: The four primary chronic illnesses in Canada, including obesity, are directly linked to diet, and we believe we can play a major role in helping Canadians make healthier and more informed choices. Today’s Loblaw supermarkets offer a far wider selection of healthy foods, at much lower prices, than at any other point in our history. By offering healthier food options, by stocking our shelves with fresh and wholesome Canadian produce, by providing information and improving our customers’ understanding of nutritional values, and by promoting active lifestyles, we can help to improve the health of Canadians.
 | Galen G. Weston
Executive Chairman,
Loblaw Companies Limited | Related Executive Networks
Centre for Food in Canada
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