Food & Beverage Cluster Forum: “The Time is Ours · Food & Beverage Cluster Forum: “The Time is Ours ... be a unified and agreed upon positioning strategy that will inform all

Food & Beverage Cluster Forum March 27, 2013 Report

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Food & Beverage Cluster Forum: “The Time is Ours”

Executive Summary

On March 27th the Toronto Region Board of Trade (the Board) hosted a major industry gathering for the Food & Beverage cluster. The event was a key milestone in the Board’s cluster initiative; an initiative which seeks to strengthen our regional economy through the development of innovative business-led solutions. The purpose of March 27th Forum was to:

Officially launch the Toronto Region Board of Trade’s Food & Beverage Cluster initiative; Share the proposed rationale and guiding principles of the cluster initiative with key

segments of cluster ecosystem; Explain the high-level what, who and how of the cluster initiative process and the potential

role firms and organizations within cluster to contribute; Validate Working Group strategic themes developed through pre-forum consultations with

cluster representatives; and Identify interested individuals for Working Groups

Although the majority of participants were from the private sector, government and public sector representatives also attended the session. As such, most of the critical segments of the cluster ecosystem were represented, including, academic institutions and private sector representation from medium and small-sized food processing companies. The breakfast keynote speaker for the Food & Beverage Forum Nancy Croitoru, President of Food and Consumer Products of Canada, highlighted the importance of the Food & Beverage cluster to the regional, provincial and national economies and how bringing together this cluster’s various players would not only enhance its competitiveness but strengthen its voice in advocating for more effective food regulation and policy. Following the breakfast keynote address, Ted Lyman, recognized by the World Bank as one of the world’s leading experts in the development and implementation of cluster-based strategies, conducted a panel discussion with four cluster representatives including David McLaren from Redpath Sugar; Doug Smith from Arla Foods; Jim Thorne from Marsan Foods; and Robert Luke from George Brown College. All of the panel participants clearly saw the value of collaboration between firms, the public sector and academia in helping create a “critical mass” which would “speak with one powerful voice” to both government and private sector investors. Key issues highlighted in the panel discussion included:

Focusing on better market intelligence regarding product, process and productivity enhancements.


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Seeing the value of “speaking with one voice” as it relates to local land use and permitting processes.

With the broader context set, the almost 100 participants at the Forum then set in motion the important work of identifying the main challenges and opportunities to seeing the Food & Beverage cluster become best-in-class on the world stage. Building on this foundation over the next 12 to 18 months the Board will be working with cluster representatives on the development of actionable business plans with fully resourced projects and metrics to measure success (for more information see p. 3-7). The lunch keynote speaker David Zepponi, President of Northwest Food Processors Association, wrapped up the Forum by highlighting one of the best-in-class examples of a well-organized regional (Portland, Oregon) Food & Beverage cluster. Zepponi highlighted several factors behind this cluster’s success including focused and passionate leadership along with strong narrative to market the cluster and the region; stakeholder buy-in; focus on innovation and productivity to better compete internationally; and availability of private and public funding for the initiative. Why a Cluster Strategy for the Toronto Region? We know what the Toronto Region’s strengths are: an enviable quality of life, a highly educated and diverse workforce and a critical mass of leading edge service and manufacturing-oriented industry clusters. Yet we can’t escape the effects of ongoing economic upheavals or the profound shifts in the global economic order, most notably the emergence of high-growth economies such as Brazil, China and India. As part of the Board’s ongoing efforts to measure Toronto’s competitiveness we have been publishing since 2009 our annual Toronto as a Global City: Scorecard on Prosperity (Scorecard) report. In this year’s edition of the report we continue our examination of Toronto’s economy and labour attractiveness, benchmarking the Toronto Region against 23 other metropolitan areas around the world. Toronto continues to prove that it ranks among the world’s best global metropolises. Ranked sixth overall, Toronto is in the top quarter of the 24 benchmarked metro areas. At the heart of Toronto’s success is the region’s consistently good record on Labour Attractiveness. However, Toronto’s opportunities lie in the Economy domain, especially vis-à-vis global leaders such as San Francisco, Boston and Seattle in the areas that touch on long-term economic performance. One area in particular is the need to sustain and pay for the vital public investments in our social and physical infrastructure. Nevertheless, as the Drummond report laid bare and as we see with the budgetary challenges of municipal governments across the Toronto Region, the fiscal space for major government economic stimulus is just not there. Clearly, if we wish to sustain the long-term economic vitality of the region our businesses must be at the forefront of change. Undoubtedly, there is no simple recipe for generating economic growth. However, as clearly articulated in the Board’s provincial election campaign VoteOntario2011 and the 2012 Toronto Region Economic Summit report Business Takes the Lead: Collaborate to Compete, cluster-based strategies can be an important element in driving economic growth and investment in the Toronto Region. Indeed, examples from high-performing city-regions like Seattle and Boston point to the critical role clusters play in driving prosperity.


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Additionally, these strategies can provide a strong impetus for the better positioning and branding of Toronto’s unique value proposition, both from an export and inward investment perspective. Strategic Intent of the Toronto Region Food & Beverage Cluster Initiative The Toronto Region has all the elements needed to support a globally competitive Food & Beverage cluster that has a strong urban core with many connections to surrounding hubs of rural agricultural and food production. This future-state-focused, private sector led cluster initiative will lead to the identification of specific, action-oriented projects with well defined business plans that will be funded and successfully implemented. These projects will accelerate the process of convergence across the cluster by making new connections and filling gaps in the cluster’s ecosystem. As a result of these projects, in line with the vision of the GTA Agricultural Action Committee, the Toronto Region will become “globally renowned as a vibrant food and farming cluster, characterized by profitable farming operations, a thriving hub of food processing, retail and service businesses, extensive research capacity, innovative technology, and a wide range of healthy and safe products.”1 New high paying jobs will be generated from research to development to manufacturing to marketing and the overall economy of the Toronto region will be stronger. Furthermore, the Toronto Region will be seen as a strong and vibrant component of the overall Ontario agriculture and food cluster.

Key Observations from Forum Break-Out Sessions:

Building on the momentum from the 2012 Toronto Region Economic Summit, over the past twelve months the Board has engaged leading companies and organizations from the entire cluster ecosystem to assess their readiness to collaborate and advance business strategies to improve their industry’s competitiveness. By bringing together senior industry representatives, the Board also held two cluster consultations in mid-November and early February. The Forum built on the feedback received to-date and featured professionally facilitated breakout sessions which sought to flesh out in more detail the potential areas for collaborative cluster-based projects. This section of the note distills the high-level take-aways from each of the four break-out sessions:

Food & Beverage Cluster Forum:

A. Selling the Region - Branding / Awareness

B. Technology / Physical Capital C. Workforce / Human Capital D. Local Business Climate

1 GTA Agricultural Action Committee. Food & Farming: An Action Plan 2021. February 2012, p. 7.


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A. Selling the Region — Branding / Awareness: Key Take-Aways Need to establish a visioning sub-committee (i.e. Vision Council) comprised of several

Steering Committee members and co-chairs of Working Groups to define an overall vision for the cluster

Clearly define the focus of the initiative should be Build on the work of other industry organizations (e.g. AOFP, FCPC)

Issue Statement:

• There is a strong need to find a collective voice for the cluster

• The outcome of this brand platform with be a unified and agreed upon positioning strategy that will inform all marketing and PR initiatives and will be the foundation for a consistent and compelling Food & Beverage narrative

Existing Initiatives to Plug Into: • TBD

Future State Vision: • To build a Food & Beverage community

with robust internal identification that will define a collective voice

• The cluster wishes to be perceived using the following key words: leaders; innovators; microcosm of the world; connectivity; diverse

Key Focus Areas for this Topic: • Target Audiences: the Food & Beverage

industry itself; industry leaders; foreign investors; global buyers; consumers- both nationally and internationally; government; educational institutions

Precedents / Models for Inspiration: • TBD

Key Activities / Questions to Explore: • TBD

Current State: • Lack of consensus on several key issues

stood out: role of government and educational institutions, boundaries (whether regional or Toronto centric) and regional versus provincial focus

• Key Challenges: complexity of overall sector; how to define what is unique to the sector; need to tap into the food culture; and de-stigmatize the Food & Beverage industry

• Key Opportunities: great stories to tell to both domestic and international audiences; understanding of what we can export internationally; microcosm of world – launching pad for foreign partnerships/trade leverage; moving international, etc.

Deliverables the Topic Should Create: • Establish Working Group to define goals

and process • Establish a Leadership Team and together

with Steering Committee develop a strategic vision and value proposition for the cluster

• With the vision and value proposition in place, build a brand platform with an engagement process that is very inclusive of all stakeholder groups. Since the Food & Beverage industry is large and complex, these stakeholders have to be clearly defined and this process must include all voices


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B. Technology & Physical Capital: Key Take-Aways

Develop a 'travelling roadshow' to showcase the Food & Beverage industry to technology

companies and funders to get people outside of the industry thinking about it and figure out how to support it

Opportunity to restructure government funding programs to better assist companies in expansion phase (e.g. expansion to new markets, adoption of new technologies) and implement more flexible programming

Issue Statement: • Promote investments in modern

technology to increase productivity and innovation in Toronto’s Food & Beverage cluster

Existing Initiatives to Plug Into: • FoodTech Canada Program • Greenbelt Foundation: OntarioFresh.ca • Vineland Research • MaRS Innovation • MITACS programs • OMAF project for the Golden Horseshoe

(Agro-Food Asset Map) • Alliance of Ontario Food Processors:

Sharing Best Practices Program • Regional Innovation Networks (RINs)

Future State Vision: • Food Processing industry to be broadly

understood as a high-value, high-tech industry with functioning mechanisms for innovation adoption (access to capital, change of management culture)

Key Focus Areas for this Topic: • Access to Capital: Perception that industry

is 'low tech' and not innovative provides challenges in obtaining capital

• Complacency Mindset: low incentives to innovate processes; high costs on new technology creates barriers for adoption among SMEs

• Technology Incubators – opportunities for cross-cluster cooperation (e.g. cooperation between MaRS and Food Technology Incubators)

Precedents / Models for Inspiration: • Portland, Oregon (US) • Food+Tech Connect Program (US)

Key Activities / Questions to Explore: • Develop a 'travelling road show' to

showcase the Food & Beverage industry to technology companies, funders to get people outside of the industry thinking about it and figure out how to support it

• Enhance awareness of funding programs available to foster innovation in the industry

• Raise awareness among capital providers on technology innovation within the cluster

• Opportunity to restructure government funding programs to better assist companies in expansion phase (e.g. expansion to new markets, adoption of new technologies). Implement more flexible programming

• Support cross-cluster cooperation (Food &

http://www.foodtechcanada.ca/

http://www.foodtechcanada.ca/

http://www.ontariofresh.ca/

http://www.ontariobioproducts.com/regional-networks/other.aspx

http://www.foodtechconnect.com/

http://www.foodtechconnect.com/


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Beverage, Life Sciences, Financial Services, ICT)

Current State: • Key strengths/assets: Strong supply of

natural resources • Key gaps/challenges: Diversity –

geographical and structural; Perception that industry is 'low tech' and not innovative; and Getting an innovative mindset within organizations

Deliverables the Topic Should Create: • Deliver the 'travelling road show' • Support activities to enhance awareness

about existing technology assets and funding programs for technology enhancement – Create an Asset Map

• Host cross-cluster events to bring down barriers between clusters (e.g. Food & Beverage and Financial Service on Innovation within the Cluster)

• Conduct survey of industry needs to promote better business-academic cooperation


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C. Workforce / Human Capital: Key Take-Aways

The cluster needs to produce and conduct a survey to collect data to better understand the

industry as it relates to supply and demand of skills and career opportunities

Issue Statement: • The Food & Beverage sector faces skill

shortages and lack of awareness about the opportunities in the industry

Existing Initiatives to Plug Into: • TBD

Future State Vision: • There is little or no gap in the supply and

demand between skills and job opportunities in Food & Beverage sector

Key Focus Areas for this Topic: • Identify the industry leaders who will form

a working group and act as a unified voice for the cluster

• Identify the spokesperson to represent the group

• The cluster will produce and conduct a survey to collect data to better understand the industry as it relates to supply and demand of skills and career opportunities

• Create a toolkit which consolidates the information across to the whole cluster (programs/training/courses/salaries/career paths) and make it available to the industry

Precedents / Models for Inspiration: • TBD

Key Activities / Questions to Explore: • How much does industry currently spend

on skills training? • What are the skills gaps? • What skills training and apprenticeship

program exist? • How does education/training map to

jobs/careers? • Identify examples of successful clusters

and model their strategy – use ideas and best practice

Current State: • Knowledge gap as farmers retire (aging

farmers) • Difficulty entering into farming because of

cost of land • Gap in supply and demand– at graduate,

certificate level • Not enough students –lack of awareness

of the career opportunities available in the sector (e.g. tech, finance, business development, agriculture)

• Hard to attract grads to rural Ontario • Need to offer sufficient earnings to cover

cost of living for entry positions • Need more apprenticeship programs • For trades, certification requirements are

Deliverables the Topic Should Create: • Industry data survey, toolkit • This industry survey from across the

sector will validate the types of and commonality of issues people are having with regards to human capital and will get some insights as to how others are trying to tackle these issues and some leading practices


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high and may be a deterrent for potential students/or foreign trained individuals to become a trades person and may be contributing to the shortage in this area


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D. Local Business Climate: Key Take-Aways

Develop a comprehensive list of business climate impediments and survey all the players to

ensure that these are the real issues and which ones are more important than others

Issue Statement: • The cluster is facing a number of business

climate issues that are challenging to address because of the diverse nature of the cluster and the lack of awareness of the cluster among politicians, workers, and financial services

Existing Initiatives to Plug Into: • There are a large number of

representative organizations in this cluster, each with their own initiatives. However, there is little general awareness of what the players are doing

Future State Vision: • The GTA Food & Beverage Cluster speaks

with one voice and is a more visible presence in the region’s economy

• Politicians, educational institutions, students, workers, and the general public are more aware of the importance of the cluster and the roles that they can play in making it more competitive

Key Focus Areas for this Topic: • Build Awareness • Foster the development of “One Voice” for

the GTA F&B cluster • Prioritize business climate impediments

and address each in a deliberate manner

Precedents / Models for Inspiration: • Northwest Food Processors Association • Toronto’s Financial Services cluster

Key Activities / Questions to Explore: • Inventory of industry players with a view

to form a “field to fork” industry “umbrella” organization with an associated web portal and governing structure that builds upon existing infrastructure

• Develop a comprehensive list of business climate impediments and survey all the players to ensure that these are the real issues and which ones are more important than others. Important to address the needs of the majority, rather than a more high profile minority

• What is the optimal “region”? – is it just the GTA or does it connect more broadly to agricultural clusters in southwestern Ontario?

• Develop a task group to communicate to all in the sector from small to large players

Current State: • Key strengths/assets: diverse range of

companies and products, high safety standards associated with the “Canada Brand”, generally good access to required agriculture, water, electricity, waste services inputs

• Key gaps/challenges: high operating costs relative to competitors, limited regional

Deliverables the Topic Should Create: • Inventory of players and business climate

impediments • Food & Beverage cluster portal


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awareness and branding for the vision of the overall cluster, regulatory process that still discourages innovation


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Where to From Here?

The Board will be dedicating resources to help advance the Food & Beverage Cluster initiative. Key next steps in this process are as follows:

Convene a meeting of 10-15 CEOs from a large segment of the Food & Beverage cluster (Mid-June 2013)

Meet with the Premier Kathleen Wynne to present a high level summary of this initiative (June 2013)

Identify Steering Committee co-chairs. This Committee will provide ongoing overall strategic direction and guidance for the initiative, define the overall vision for the cluster and determine key metrics of success for each cluster (By the end of June 2013)

Once launched, Working Groups will work to develop the strategies and business plans including key objectives and actions showing the “what, when and who” (July – October 2013)

Advance implementation of these business plans (January 2014) Work with private and public sector cluster organizations to secure sources of funding for

this initiative (May 2013-April 2014)


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Appendix A: List of Participants

Full Name Company Job Title

Baker, Sarah Global Public Affairs Director, Corporate Communications

Bennett, Sue University of Guelph Director, University and Community Relations

Borovilos, George Ontario Ministry of Agriculture, Food and Rural Affairs

Director, Business Development Branch

Boston, Laura Animal Sense Pet Products Inc. President

Bracco, Amy Marsan Foods Ltd. Senior R&D Chef

Bullock, Margaret International Sugars Inc. President

Bungaroo, Mahendra Fiera Foods Co. Chief Financial Officer

Callaghan, Stephen Export Development Canada Regional Vice President, Ontario

Cheney, Erin Richard Ivey School of Business Associate to Prof. Sparling

Cooper, Ian Federal Economic Development Agency for Southern Ontario

Senior Analyst / Team Lead

Copeman, Caroline MNP LLP Senior Manager

Cote, Marcus Business Development Bank of Canada

Account Manager, Food & Beverage Markets

Croitoru, Nancy Food & Consumer Products of Canada President & CEO

Crowley, Scott MNP LLP

Regional Managing Partner of Advisory Services

Culley, Lana Vineland Research Director, Business Development

Death, Ron Farm Credit Canada Senior Relationship Manager

Di Emanuele, Ezio MNP LLP Sr. Advisor Agri-Food Business Development

Ferrari, Anita Grant Thornton Regional Managing Partner, Central Canada

Fitzgerald, Frank Business Development Bank of Canada Managing Partner

Foster Woollatt, Nicole Global Public Affairs Vice President, Ontario


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Fraser, Glenn MNP LLP Regional Leader - Agrifood

Fratarcangeli, Mauro PricewaterhouseCoopers LLP Partner, Food and Beverage Industry Leader

Fredricks, Paul Select Food Products Ltmd President

Freeman, Anne Greenbelt Farmers Market Network Project Coordinator

Girimonte, Osvaldo Meaty Meats Vice President & Director of Operations

Glowczewski, Catherine Tradition Fine Foods Vice President

Goetz, Jim Canadian Beverage Association President

Gorman, Brandon Signature Foods President

Hayes, Jennifer MNP LLP Partner

Hayhurst, Brett Four Corners Group Partner

Henderson, Peter Ideovation Managing Director

Holling, Chris Notetaker

Hopkins, Rita Entro | G+A Business Development

Horne, Neil Gold Leaf Energy Systems Principal

Hunter, Megan Greenbelt Foundation Communications and Program Manager

Ilnyckyj, Peter Ontario Ministry of Agriculture, Food and Rural Affairs

Business Development Consultant, Beverages and Dairy Sectors

Jones, Randy L. V. Lomas Limited Business Director - Food

Judge, Andrew Redpath Sugar Customer Service & Logistics Manager

Kee, Rob Ingredion Canada Incorporated Managing Director

Keen, Wes Red Soss CEO

Kelly, John Ontario Fruit & Vegetable Growers Association Per OAFT

Vice President, Erie Innovations and Commercialization

Kelly, Patrick Centennial College of Applied Arts & Technology

Dean, School of Engineering Technology and Applied Science

Koh, Jerry MaRS Discovery District Innovation & Foresight Advisor


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Kruh, Willy KPMG

Partner, Global Chair Consumer Markets, Partner -in-Charge High Growth Markets

Kuzyk, Andrew Entro | G+A Principal and Founding Partner

La Flèche, Eric R. Metro Inc. President & CEO

Leroux, Michael CIBC Director

Luke, Robert George Brown College Assistant VP for Research and Innovation

Lynch, Michael MITACS Director, Science & Technology

Lytton, Colleen Ingredion Canada Incorporated Director, Stakeholder Relations

MacDonald, Marg OMAF

Business Development Consultant, Agriculture and Food

Marsden, Sandra L. Canadian Sugar Institute President

Mayeenuddin, Zeeshan TD Bank Group

Senior Manager, Commercial National Accounts

McDonald, Helga Ontario Ministry of Agriculture, Food and Rural Affairs

Manager, Business & Investment Development

McInnes, David Canadian Agri-Food Policy Institute (CAPI) President & CEO

McKechnie, Ted William Davies Consulting, Inc. President and CEO

McLaren, David Redpath Sugar CFO

Mednis, Christine A.

Metcalfe, Stewart Colliers International Vice President

Moody, Jacquelynn Ontario Ministry of Agriculture, Food and Rural Affairs Senior Business Advisor

Moody, Jamie Tree of Life President

Moukhaiber, Shadi Business Development Bank of Canada

Senior Account Manager- Food and Beverage Markets

Naccarato, Franco Greenbelt Foundation Program Manager

Nighbor, Derek Food & Consumer Products of Canada

Senior Vice-President, Public & Regulatory Affairs

Oschinski, Matthias Mowat Centre for Policy Innovation Lead Economist


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Parlee, Forrest MITACS Director, Public Affairs

Pascual, Emily MNP Senior Consultant

Patel, Nilesh Griffith Laboratories Ltd. Technical Director

Peters, Steve Alliance of Ontario Food Processors Executive Director

Pogue, Melissa

Rotman School of Management, Institute for Competitiveness & Prosperity Researcher

Reaume, Jamie Ontario Food Terminal Chair

Robbins, Steven J. Asia Pulp & Paper Business Unit Manager - Paper Board Products

Saunders, Michelle FCPC Vice President, Provincial & Territorial Affairs

Sequeira, Ashton Centerplate General Manager

Skjodt, Wesley Skjodt-Barrett Foods Inc Chief Information Officer

Smith, Douglas Arla Foods Inc. Canada President & CEO

Smith, Ian C. MNP LLP Partner

Thorne, Jim Marsan Foods Ltd. President & CEO

Trollope, Cliff MNP Enterprise Risk Services

Uher, Allison MNP Regional Marketing Manager

Van Acker, Rene Guelph Food Technology Centre Associate Dean, External Relations

Vourakes, Michael Centennial College School of Hospitality, Tourism & Culture Dean, School of Business

Wales, Mark Ontario Federation of Agriculture President

Williams, Michael H.

City of Toronto, Economic Development, Culture & Tourism Division

General Manager, Economic Development, Culture & Tourism

Wolfson, Michael

City of Toronto, Economic Development, Culture & Tourism Division

Senior Advisor, Food & Beverage Sector

Zeiler-Kligman, Brian Canada's National Brewers Director of Sustainability


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Appendix B. Food & Beverage Associations and Institutions Mapped by Regional and Thematic Focus:

Municipal or Sub-

municipal

GTHA/Golden

Horshoe Provincial National Marketing Workforce Technology Business Climate

Toronto Region Board of Trade Food &

Beverage Cluster Project

Golden Horseshoe Alliance/ GTA

Agricultural Action Committee

Alliance of Ontario Food Processors

Conference Board of Canada/ Centre

for Food in Canada (CFIC)

Food & Consumer Products Canada

Toronto Industry Network

South Etobicoke

Toronto District School Board

Guelph University

George Brown College

Conestoga College

Maple Leaf ThinkFOOD Centre

Ontario Ministries of Agriculture &

Food and Rural Affairs

Industry Canada

Agriculture Canada

Agri-Food Innovation and Regulation

(Ivey)

Ontario Chamber of Commerce

Greenbelt Foundation

Geographic Focus Thematic Coverage

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Food & Beverage Cluster Forum: “The Time is Ours · Food & Beverage Cluster Forum: “The Time is Ours ... be a unified and agreed upon positioning strategy that will inform all