Loblaws Dan Branson

By Cynthia David

When Dan Branson joined Canada’s largest supermarket chain a dozen years ago, he was skeptical about organics.

Since then, “I’ve been overwhelmed by how we continue to see growth and awareness coming from this category,” says Branson, now senior director of produce for Loblaw Companies Ltd., based in Brampton, Ontario, responsible for the President’s Choice produce sold at hundreds of Loblaw stores across Canada. 

“A lot of organic sales are happening in produce, probably disproportionately to everywhere else in the store,” he says. “People are certainly becoming far more aware, from a health and wellness point of view, of what they’re putting into their bodies. These lifestyle decisions are driving the momentum.”

According to Canadian Organic Trade Association data released at the end of 2017, two out of three Canadian grocery shoppers buy organics weekly, though Branson suggests a small group of committed customers drives a tremendous amount of that basket. Of shoppers with children, 72 percent purchase organics weekly, while 83 percent of Millennials, concerned about pesticides, GMOs and generally being kind to the environment, purchase organics weekly.

Overall, however, the purchase of organic produce sits at just 2.6 percent of the total shop.

Of Loblaws’ extensive fresh line, its private label President’s Choice Organic tub salads do “exceptionally well,” Branson says, followed by lunchbox and snack items for work or school, including organic bananas, apples, baby-cut carrots and grapes.

Organic Kale Chard Spinach Salad Mix and Baby Cut Carrots, Loblaw Organic

On the shelf, Loblaw has chosen to integrate organic and conventional produce so the customer can compare the two side by side and make their choice. As organics increase in total volume and scale, Branson is excited to see growers offering more specialized programs.

“The industry is getting to a point where it’s not just about having a vanilla commodity,” he says. “Instead of a grower saying they’ll grow an organic red grape, they’re offering us a Sweet Celebration organic grape. We’re starting to bring in some of the newer, best-tasting varieties and some unique things we couldn’t do before because the scale of production or demand wasn’t quantified.”

Organic Red Seedless Grapes, Loblaw Organic

Apples are another good example, he says. As new varieties gain momentum and establish a clientele, organic growers are planting the same varieties, confident of a market.

Despite all the certification required for organics, from USDA to CanadaGAP, Branson says barriers to trust remain. At the same time, he says most packaging doesn’t clearly identify organics. That’s where the President’s Choice Organic (PCO) label comes in.

By working directly with producers and bringing in produce under this iconic brand, “we find we can bring an extra layer of trust and identity that makes consumers feel better about that purchase,” he says. “They know due diligence has been done; it’s worked really well for us.”

Buying local is also important for Loblaw and its customers. “Working with Canadian vendors to develop more organic assortment, stretch the season and grow non-traditional items is always a focus for us,” he says. “It’s about supporting communities and giving consumers what they want.”

Organic Apples, Loblaw Organic

Expanding the PCO line, however, requires careful planning, he says. “We want to work closely with growers to make sure they know what our weekly needs or what we estimate our needs to be so they’re able to service us and service the needs of our customers.”

While Canada’s outdoor growing season is short, greenhouse crops provide tantalizing opportunities for the future. “Relatively clean” Ontario greenhouse strawberries have now become a PC staple in mid-winter, yet growing them organically would be a huge hurdle.

“When you have a consumer who’s really looking for organic strawberries it would be one of the top items and the hardest to supply,” he notes. “But what an opportunity it would be to get to year-round berry production in Canada." 

“These are the sorts of things we think about that we’d love to do.”