ANNUAL REPORT ANOTHER YEAR OF SUCCESS

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2 ANNUAL REPORT ANOTHER YEAR OF SUCCESS

3 CHAIR REMARKS MICHAEL BURROWS On April 27th I had the pleasure of chairing Food and Beverage Ontario s 2017 Consultation on Industry Success. This session brought together an unprecedented number of food and beverage leaders from across the province to talk about their business opportunities and also their concerns. We learned that regulatory issues, workforce development, jurisdictional competitiveness and implementation of growth strategies continue to be priorities for Ontario businesses. And despite FBO s successful advocacy efforts over the last year, there is still much more to do. We were also told that a number of improvements could be made to program delivery for the upcoming Agricultural Policy Framework ( ). Participants indicated their appreciation for current Growing Forward 2 investment in the sector and welcomed the opportunity to provide further input on the design of future programs. Subsequent to the consultation, FBO is preparing an updated industry strategic plan for release this summer. This plan will identify priorities and recommend activities to support industry prosperity and expansion. When I reflect on the past year I believe it has been one of success for the organization. We have benefited tremendously from an engaged and knowledgeable Board of Directors, strengthened our relationships with government colleagues, improved our ability to tell our own story and grown our community of FBO processor members. In short, we have become an influential organization for Ontario food and beverage processors and a place for sector engagement and development. MICHAEL BURROWS Chair, Food and Beverage Ontario

4 CEO REMARKS NORM BEAL Earlier this year, FBO conducted an economic impact assessment of our industry. Latest numbers indicate our business count is up to 3,800 manufacturers and we contribute $40 billion to the provincial economy annually. We also directly employ over 139,00 employees and yes, we continue to hold rank as the province s number one manufacturing sector employer. However, since the previous economic study we completed in 2012 our sector s total output, GDP and government tax revenues only increased by approximately 3 percent. I am certain you will agree with me when I say we have room for improvement. This past year we laid the groundwork on a number of fronts within the organization to support expansion in the sector. We engaged policy expertise when we needed it. We hosted an important processor consultation to guide our future activities. We developed and implemented new resources and information-sharing opportunities. And we invested in expanded communications to tell our story and deepen our reach with all audiences. FBO is primed as an organization to be even more effective and productive in the coming years. In closing, I would like to thank everyone who is passionate about our industry employers, employees, entrepreneurs, educators, industry experts, suppliers, food and drink lovers there are an enormous list of people who are committed and dedicated to making food and beverages in Ontario. NORM BEAL CEO, Food and Beverage Ontario

5 OUR MEMBERS TOTAL MEMBERS of members are small, 1-20 employees of members are medium, employees of members are large, 251+ employees Meat is the largest sector within our processor members Wine closely follows as the second largest sector DAIRY PORK SPICE CO-PACKERS BEER JERKY BAKERY PASTA SNACK/CONFECTION CIDER WINE VEGETABLE CARBONATED DRINKS POULTRY SPIRITS FRUIT CHEESE CONDIMENTS RABBIT CIDER INGREDIENTS CHOCOLATE PREPARED FOODS BEEF PORK SNACK/CONFECTION SECTORS REPRESENTED

6 YEAR IN REVIEW ADVOCACY FBO s report, Restoring Ontario s Competitiveness by Reforming Electricity Pricing, reviewed the current situation of electricity costs in the province and how food and beverage processing businesses have been impacted. The report made reference to unpredictable electricity prices and the potential outcome of permanent and structural damage to businesses. A recommendation was made to remedy the situation by removing the Global Adjustment from commercial and industrial electricity bills. In response to the Changing Workplaces Review, FBO released a paper, Putting Good Jobs in a Precarious Situation. This report, which complemented work led by the Ontario Chamber of Commerce, provided evidence of severe consequences with respect to investment and job losses if recommended changes to the Employment Standards Act and Labour Relations Act are to be pursued by the provincial government. FBO strongly recommended that the CWR report be referred to the government s own Business Law Advisory Council for further economic analysis and consultation. FBO responded to the Waste Free Ontario Act in collaboration with Provision Coalition the industry s leader on sustainability. Earlier this year comments were provided on the Final Draft Strategy for a Waste-Free Ontario Building the Circular Economy and a submission made on the Proposed Transitional Operating Agreement between the Minister of Environment and Climate Change and the Resource Productivity and Recovery Authority. With the incoming Agricultural Policy Framework ( ) FBO has initiated a number of activities with respect to communicating priorities and investments for the processing sector. The Ontario Ministry of Agriculture, Food and Rural Affairs and Agriculture and Agri-Food Canada were invited to lead a special consultation with processors on Growing Forward 2 programs and design recommendations for future programs. CO-PACKER RESOURCE In response to many requests from members and start-up businesses, FBO developed and launched a comprehensive on-line co-packer

7 YEAR IN REVIEW resource. This resource is a rich one-stop source for information on co-packer capacity in the province. The resource is easy to navigate with drop-down menus that assist in narrowing a search on available co-packers for specific production needs. FUNDING DIRECTORY With a number of beneficial programs available to processors at any one time, FBO in partnership with Fairtax Grants & Incentives, built and launched an easily accessible on-line funding directory. This tool assists processors in efficiently navigating the directory to locate the best available programs based on set project criteria. BUILDING ONTARIO S F+ B COMMUNITY New regional workshops, webinars and educational forums were offered by FBO over the past year. The Holiday Social was again very well attended and the Golf Tournament made a successful comeback in 2016 as a sold out event. Members confirmed for FBO the importance of providing in-person events where processors and industry stakeholders can connect for networking and new business opportunities CONSULTATION FOR INDUSTRY SUCCESS FBO took the first critical step in updating the organization s 2013 report, Ontario s Food and Beverage Processing Industry Strategy The New Engine of Ontario s Economy, with a facilitated consultation that attracted member and nonmember processors from across the province. This consultation provided FBO with valuable and plentiful input on priorities and areas of concern that must be addressed if processor businesses are going to grow and prosper. The updated report, with recommendations that will be implemented by FBO over the next three years, is being prepared for release the summer 2017.

8 TASTE YOUR FUTURE Now in its second year, Taste Your Future is a multi-year campaign to get students, parents and new Canadians interested in careers in food and beverage processing. Our vision: Increase the number and quality of applicants in the sector to meet the Ontario government s challenge to create 120,000 new jobs in agriculture and food by Through our website tasteyourfuture.ca social media, news stories, conference presentations and displays and face-to-face discussions with processors, workforce planning councils, newcomer organizations, guidance and career counsellors, industry associations and other education and workforce planning experts, we are informing and engaging the next generation of employees in this sector. Visits to tasteyourfuture.ca STORIES on tasteyourfuture.ca Facebook followers

9 TASTE YOUR FUTURE Stories in the media: Newcomer settlement groups reached million MEDIA IMPRESSIONS In Spring 2017, Taste Your Future ran its first Bursary Contest for high school and post-secondary students. The contest asked students to submit their ideas for a new product or process, for a chance to win a $2,000 bursary and career support. The contest page attracted more than visitors

10 FOOD & BEVERAGE ONTARIO BOARD OF DIRECTORS & STAFF MICHAEL BURROWS Chief Executive Officer Maple Lodge Farms ANGELA BELL Owner and General Manager Speedo Foods & Flavours DORIS VALADE Malabar Super Spice Company RORY MCALPINE Senior Vice President, Government and Industry Relations Maple Leaf Foods DAVE SHEPHERD Director, Human Resources The Ippolito Group SARAB HANS Managing Director Hans Dairy REZA MECKLAI Sultan of Samosas MARK JOSEPHS President Kisko Products PAUL SPECK President Henry of Pelham Family Estate Winery ROB ANDERSON Vice President, Operations Bonduelle North America JOSE MEDINA The Original Cakerie ALLAN KELLY Ingredion Canada Corporation

11 FOOD & BEVERAGE ONTARIO BOARD OF DIRECTORS & STAFF TOM HARE Vice President, Marketing and Technical Services Dare Foods FBO STAFF NORM BEAL Chief Executive Officer TERESA SCHOONINGS Senior Director, Government Relations & Sustainability Canada Bread Company, Limited; a subsidiary of Grupo Bimbo ISABEL DOPTA Director, Communications OLIVIER LAVIGNE-LACROIX Director Corporate Affairs Cargill JASON CRAWFORD Director, Membership & Industry Relations JOE ABATE President Abate Rabbit Packers MARY GUSHIE Communiations & Business Manager

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