DCI Digital Newsletter Volume 2 Issue 4
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From East coast to the West coast, our DCI Board of Directors:
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From Left To Right:
Dave Powell
(Atlantic Grocery Distributors) - Chair,
David La Mantia
(La Mantia's Country Market) - Vice Chair,
Nigel Oliver
(Vince's Country Market) - Treasurer,
Barry Lanteigne
(Lococo's) - Past Chair,
Cori Bonina
(Stong's Markets) - Director,
Tony Cataldi
(Cataldi Fresh Market) - Director,
Robert Galati
(Galati Market Fresh) - Director,
Francois Bouchard
(The Country Grocer Inc.) - Director,
Craig Cavin
(Island Independent Buying Group) - Director
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Statement Regarding The DCI President & CEO
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Announcement, Distribution Canada Inc.
Todd Newstead, President and CEO Distribution Canada Inc. has made the decision to transition out of the business to pursue other interests in the industry. Todd has agreed to stay on for the balance of 2018 in support of the ongoing operations and the transition of responsibilities to new leadership once a candidate has been successfully secured.
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A Message From Dave Powell, DCI Chair of The Board
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On behalf of the Board of Directors, I would like to thank Todd for his time at DCI as the President and CEO. During his leadership, Todd has solidified many supplier partner relationships, onboarding a significant number of new vendor partners and created new communication avenues to better promote their services and products. He was able to secure meaningful relationships with our supplier partner community, shareholders and wholesalers which will continue to create business growth and success, bringing further value to our Shareholders. It is evident by the increase in participation at the annual DCI events and the financial stability of the organization, that Todd has had a positive impact with Distribution Canada Inc. during the last 10 months. We wish him all the best in his future endeavours.
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A Message from the DCI President
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As many in the DCI community are aware, I have made the decision to transition out of the business to pursue other interests in the industry. I have thoroughly enjoyed my time at Distribution Canada and have significant respect for our members and the businesses that they lead in this highly competitive market. It has been a privilege to work with our members, the vendor community and business partners throughout the last ten months. This industry is truly filled with great people. I will be staying on for the balance of 2018 in support of the ongoing operations of the business and the transition of responsibilities to new leadership once a candidate has been successfully secured. Looking forward to new challenges, and will continue to be a strong voice and advocate for Independent Grocery Retailers in the future. I wish the organization and the DCI members the best of success and prosperity.
In the interim, it is business as usual and the board and I continue to look at opportunities to expand on the value that DCI offers to both its members and vendor partners. In doing so, we are reviewing where we could explore areas of opportunities to better engage with our Shareholders, supporting their stores and working with our Supplier Partners to create improved communication tools, meaningful promotions, enhanced commercial agreements and opportunity buy programs.
Thank-you to everyone who has provided their opinions and submitted their surveys to help DCI understand each of your experiences at our events. Based on your feedback, we are looking into separating the two events with changes to the Annual Business Summit to deliver stronger value and create a unique experience for our shareholders and business partners.
Within the DCI Office, we are getting prepared for Grocery Innovations Canada 2018, and our annual Fall Shareholders Meeting happening on October 25
th
, 2018. If you have not already let DCI know your confirmation of attendance, please do so. As well, the DCI office is continuing its review of Cooperative Trade Agreements, and through this process, we will ensure that agreements have been revised to include the most up to date program advantages and detailed information in support of our collective business interests.
If you have any questions, please feel free to reach myself or the DCI team through phone or email. Your opinions are very much appreciated.
Here’s to a prosperous autumn season.
Todd Newstead, DCI President and CEO
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Creating Relationships With New Supplier Partners
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DCI has continued to focus on the onboarding of new vendor partners in support of our members.
The new vendors are:
Telehold Messages and In-store Announcements, Communications and Background Music Radio Commercials, Professional Voice Services. Get the power of voice working for your company today! Dynamic Productions can provide a quotation for your telephone on-hold messages, in-store announcement, IVR voice mail, voiceover, corporate video narration, powerpoint narration, radio commercial or jingle production.
Globe POS Systems Inc:
easy-to-use, easy-to-manage Point of Sale systems, Scales, Printers and more with an extensive array of administrative tools enabling you to effectively manage your product, your customer and your cash flow.
MDR Consult:
Reduce Visa / MasterCard Interac fees without switching providers. MDR Consult specializes in cost savings for any business that accepts credit, and debit card transactions.
webSaver:
safe and secure electronic coupon program for participating retailers (webSaver merchants). Electronic coupon programs include leading CPG companies with high value savings to drive traffic and basket size for participating retailers. Program eliminates the cost of minimum monthly fees and coupon handling fees from clearing houses.
Roy Turk Industrial Sales Ltd.:
catalogue of janitorial equipment and cleaning supplies including: paper products, hand soaps, cleaning chemicals, mops, brooms, brushes, waste management, garbage bags, hand sanitizer, commercial floor cleaning machines, safety supplies, shipping supplies, food service supplies
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Celebrating a Home Run with DCI, Weston Foods, Maple Leaf Foods and Coca-Cola Canada!
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On September 25th, 2018, the winners of the DCI Summer Home Run Blue Jays Promo enjoyed the Toronto Blue Jays vs. Houston Astros game during an evening of networking and promoting business opportunities as independent grocers and the promotional partners from Maple Leaf Foods, Weston Foods and Coca-Cola sat together, up close to the game.
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Catch DCI at Grocery Innovations Canada 2018
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This year, you can find DCI at
Grocery Innovations Canada 2018
,
October 23rd and 24th at
booth 1531
. We look forward to seeing our current and potential future Members and Supplier Partners there! If you have any questions, please email the DCI Office.
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Above: Concord Food Centre being inducted into the Hall of Fame
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Last year at Grocery Innovations Canada, DCI familiar faces and Shareholders, Concord Food Centre (Ontario) and Powell's Supermarkets (Newfoundland) were inducted into the Hall of Fame. As well, Powell's Supermarkets also won
The Arnold Rands Heritage Award
as they were
the year’s best multi-generational store that is privately owned, and that has been in the same family for at least two generations, in the same community for 35 years.
Other DCI Shareholders that won in 2017 were Stong's Markets (British Columbia) winning The National Gold Award (medium surface), Oak Ridges Food Market (Ontario) winning The National Gold Award (small surface), and Galleria Supermarket (Ontario) winning
The David C. Parsons Award of Excellence in Specialty Food Retailing.
Why not be there in person?
To find out who will be the winners for this year,
register
for the Gala Dinner and the Canadian Independent Grocer of the Year Awards on the evening of October 24th, 2018 at Grocery Innovations Canada.
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DCI Fall Shareholder Meeting 2018
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DCI Retailers, when organizing your travel plans for GIC this year, be sure to extend your stay so you will be able to attend the DCI general meeting as well as meet and greet with the other members from the East and West. We will have Supplier Partner promos, Power Buys and new product information being presented.
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Location:
The Toronto Congress Centre - North Building
650 Dixon Rd.
Toronto, ON. M9W 1J1
Date:
Thursday, October 25th, 2018
Room:
Café 1020
Time:
9:30AM - 1:30PM (Lunch included)
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Thank you to our DCI Fall Shareholder Meeting Sponsors
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Save The Dates! DCI Events 2019
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In 2019, DCI is returning with the DCI Business Summit and the DCI & CFIG Charity Golf Classic! After evaluating the feedback we received from attendees, the DCI office has decided to host both of these events on different dates during different months to accommodate the busy schedules of our retailers and supplier partners.
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DCI Business Summit & Annual General Meeting:
June 20, 2019
DCI & CFIG Charity Golf Classic:
September 17th, 2019
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Retailers, Stay Informed With DCI!
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Retailers, if you feel you may have missed some important information about DCI, including the newest Supplier Partners to have joined our membership, please be advised that the Shareholder Portal will be your go-to place to access information. The Shareholder Portal includes your lists of all active DCI Supplier Partners, their Cooperative Trade Agreements, your Shareholder rebate reports, archived newsletters, and a copy of the DCI By-Laws.
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FOUND ITEM!
If you have misplaced a wristwatch at the 2018 Business Summit Gala Dinner, please call the DCI office as we have it here, safe and sound.
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Grocery Innovations Canada
October 23-24th, 2018
Despite today’s digital age, nothing rivals face-to-face communication to establish, build and maintain business relationships. The grocery sector is all about building relationships to grow your business, and this is the only show that brings together all facets of the grocery trade together under one roof. The exhibition floor features over 65,000-sq.-ft. of dedicated pavilions focused on key grocery & specialty categories from front end to back end including equipment, technology, food services, garden, financial and insurance.
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Cousins Gourmet Market Celebrates 40 Years
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Opening in 1978, Cousins Market was founded by Pasquale Battaglia and his two cousins. The independent retailer has always been about providing fresh, high quality food, with its shopping experience being customer focused. 40 years later, the Battaglia brothers - Gus, Mark and Anthony, the sons of Pasquale, celebrate their milestone by reflecting on the history of their store. Since its opening, the market has expanded to include a kitchen and café eating experience, providing customers an area to enjoy vegan, vegetarian, gluten-free, hormone and anti-biotic free dishes with plans to bring in new additions to the market.
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Upper Canada Mall Welcomes Vince's Market
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Located in Newmarket, Ontario, the Upper Canada Mall recently welcomed this 1100 square foot 'micro store' into their 40,000 square foot 'Market and Co.' food experience that
brings together a variety of best-in-class artisan merchants, produce, pastries, and more. The new store will focus on seasonal products, and will also include fresh produce, prepared foods, a salad bar & olive bar, fresh cheeses, and a selection of staple grocery items.
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Stong's Market Giving Away 2019 Mustang Ecoboost Coupe For Fall Wheels Contest
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From August 17th - September 27th, 2018, Stong's Market ran their Fall Wheels contest giving each customer who purchased selected products a chance to win a 2019 Red Mustang Ecoboost Coupe. The grand prize announcement is set to commence on October 4th at 3pm PDT!
Be sure to check out their website
for more community initiatives and events!
Congratulations
to Stong's Market on a well-received program.
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Rabba Fine Foods - "Your Neighbourhood Marketplace"
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Piloting a new store concept, Rabba Fine Foods had their grand re-opening at its 4869 Dundas St. W location. The chain has announced that it is putting a greater emphasis on fresh produce and ready to go meals. With a new store layout, new lighting, wider aisles and a focus on carefully curated design elements, Rabba Fine Foods will continue to ensure that their stores keep their customers feeling happy within the European-style market concept. If the pilot location does well, Rabba Fine Foods intends to roll out this new concept to a number of its stores.
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From Our Supplier Partners
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Do Grocers Have Any Cyber-Liability Exposure?
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How Cyber insurance policies can help grocers to plan for a data breach, respond appropriately, protect the balance sheet, and get back on their feet as soon as possible.
Nearly every retail organization that transacts business through POS terminals for payment by credit or debit card outsources the processing to a third party. Businesses that accept credit cards are still expected to achieve
Payment Card Industry (PCI)
compliance even if they outsource the payment processing. They have data security exposure through their card readers, point of sale systems, store networks and wireless access routers, payment card data storage and transmission and data storage of paper records. While they may outsource the transaction processing and data storage, in Canada they cannot outsource the liability related to that data.
When you think about retailers who have had well publicized breaches, they have all had the responsibility to notify the affected customers. That notification is not the responsibility of the payment processor (say,
Moneris
), the card system (say,
Visa
) or the issuing bank (say,
Royal Bank of Canada
) - it's the responsibility of
Equifax, Eddie Bauer Canada, or Saks/Hudsons Bay
. Its where the breach originated.
From a consumer protection point of view, both the customers of
Joe's Grocery
and the
Privacy Commissioner of Ontario
(
insert any Province here
) are going to expect that if the commonality of the breach is that everyone whose credit card has been compromised shopped at
Joe's
, then
Joe's
is where the breach happened.
Joe’s Grocery
has the duty to notify, and may be on the hook from a liability point of view.
On
November 1, 2018
, that mandatory notification requirement also becomes federal law under the
Digital Privacy Act
, when there is a
risk of significant harm
to the customer. Failure to notify can result in penalties of up to $100,000. Many cyber insurance policies can respond to cover those penalties.
In addition to the cost of notification, in Canada every grocery business faces network security issues that can impact their day to day operations. Here are a list of items that businesses face that may be addressed by a Cyber Liability insurance policy.
1)
Your grocery business is infected by malware and your system passes it onto a third party, creating a liability exposure. Frequently, organizations are being required by their business partners to have cyber liability insurance. For a grocery chain, they may find that in time, the dairy/ meat distributor or their other wholesalers could be asking for this insurance in their contracts. The grocery chain may have a direct JIT delivery ordering interface with their suppliers' systems and the suppliers want to off-load the costs to clean up a virus or a cyber attack coming through the store's systems that impacts the suppliers' systems. Many cyber liability insurance policies will respond to this type of third party liability claim.
2)
A grocer’s system is impaired by a security incident, malware, virus, cyber attack or other unauthorized access attempt and is off line. The grocery store customers cannot transact business with you, resulting in a business interruption loss (liability) that is not covered by your other insurance policies. Cyber liability insurance policies respond to this type of loss.
3)
Your third party service provider (for example, your
cloud storage provider
) goes off line due to a denial of service attack against them, causing your business financial harm. You have a
Contingent Business Interruption
claim that a cyber liability policy could respond to.
4)
You may be the victim of an
Extortion Threat
where someone has introduced ransomware into your system and has encrypted your data, holding it hostage until you pay a bitcoin ransom to get the decryption code. Your cyber liability insurance provider can connect you with the right forensic IT firms to help you arrange for bitcoin ransom payment, and network decryption, and pay for the entire loss. While companies used to see ransom demands of $500, these ransom demands regularly exceed $200,000 today.
5)
You may have Media exposures (defamation, infringement of intellectual property - like trademark or copyright) arising out of your online advertising (web, social media, e-mails to your customers who have signed up for weekly special announcements). Content coverage is part of a Cyber liability insurance policy.
6)
Data breaches cross borders. Your grocery store is subject to the privacy laws and notification requirements of the jurisdiction where the
impacted parties
are based, whether extra-provincially our outside of Canada. Most US states, the EU, and dozens of other countries, have their own notification laws, fines and penalties. Cyber policies can connect you with proper legal guidance if notification is required outside of your province.
7)
Directors and officers
of large and small corporations in Canada have the duty to safeguard the data that they are entrusted with. Failing to take reasonable steps (ie. Enact proper security, employee training around data, backups, etc) could be seen as a breach of that duty.
8)
The level of
PCI Compliance
required by businesses that accept payment cards (credit and debit) depends on the number of annual transactions.
PCI Level 4 (lowest)
= <20K transactions a year.
PCI 3
= >20K<1mln.
PCI 2
= >1mln<6mln and
PCI 1(highest)
= >6mln. PCI Compliance is expensive to achieve and maintain - and while it is a requirement, the payment cards are happy to give you the ability to accept cards, even if you are not yet PCI Compliant. Financial penalties imposed by the payment card industry may be insurable under a cyber liability policy.
For more details on the issue of Payment Card Industry requirements and how it could impact small grocery merchants, go to:
9)
The
Ponemon Insitute
released a study in June 2018 detailing the average cost of data breaches in Canada during the most recent year. Canada is the third most expensive country in the world to resolve data breaches, averaging more than
$4.7M
per claim, and has the dubious distinction of being the most expensive in the world from a forensic IT cost perspective. Link to full study:
www.ponemon.org
10)
Reputational damage.
If a data breach happened, who would you call? One of the most valuable benefits of purchasing cyber liability insurance is connecting you to the breach coaches, IT firms, PR firms, who would walk you through a breach resolution. In addition, many insurers can connect you with partners who can assist with pre-breach readiness and training, or can help to draft your incident response plan.
One final note:
standard property and casualty insurance policies will not respond to data breaches. In the absence of insurance,
your company’s balance sheet
bears the weight of the entire loss.
We hope this gives independent grocery businesses some of food for thought.
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Is It Time To Join The Block(chain) Party?
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"Blockchain technologies have been used for decades in certain sectors, but it only ventured recently into the food industry. Food safety was never going to do it for blockchain technologies. Consumers expect safety without wanting to pay for it. It never had market currency, whereas food authenticity does. Fraudulent products can compromise brands and the viability of a company in a heartbeat. We have seen many cases already around the world."
Snippet Credit: Canadian Grocer
Image Credit: Tech Xplore
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To Be Or Not To Be ... A Grocerant
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"Known to industry insiders as
'grocerants,'
such combination spaces serve a time-strapped population that values convenience at a time when grocers are feeling growing pressure from online competitors.... [such as] Supermarkets seem[ing] to be taking a page out of playbooks from shopping malls, which are facing similar pressures from consumers driven toward the convenience of e-commerce, and are working to attract customers inside with real world luxuries."
Snippet Credit: CTV Newss
Image Credit: Grocerant Deisng Group
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If you would like to submit news from your company (Retailers & Supplier Partners) or would like to feature an ad (Supplier Partners) please email
matthew@distributioncanada.ca
Click below to stay connected with DCI!
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On behalf of the DCI Management Team, Happy Fall & Halloween to you and your company! If you have any questions, please don't hesitate to email us!
Todd Newstead - President & CEO:
Michele Vermeltfoort - Administration & Accounting:
Matthew Brown - Events, Communications & Technologies:
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