Canadian Packaging Machinery Market Research Report - PMMI

Canadian 

Packaging Machinery 

Market Research Report 

The findings of a Market Research Study conducted by 

SMG/Columbia Consulting Group, exclusively for the Packaging 

Machinery Manufacturers Institute. 

September 2003

©Copyright 2003. Packaging Machinery Manufacturers Institute, Inc. All rights 

reserved. The information contained herein shall not be distributed or shared by 

the recipient. No parts of this document may be reproduced without the express 

written permission of PMMI.

TABLE OF CONTENTS 

EXECUTIVE SUMMARY.................................................................................................... 1 

1.0 THE CANADIAN MARKET ENVIRONMENT ............................................................. 3 

1.1 INTRODUCTION.................................................................................................. 3 

1.2 GEOGRAPHY AND POPULATION..................................................................... 4 

1.3 INTERNATIONAL ECONOMIC COMPARISION ................................................ 6 

1.4 INTERNATIONAL TRADE ................................................................................... 6 

1.5 POLITICAL/ECONOMIC ISSUES........................................................................ 7 

1.6 TRADE BARRIERS AND IMPORT DUTIES ....................................................... 8 

1.7 REGULATORY ISSUES AFFECTING PACKAGING........................................ 10 

2.0 CANADA’S PACKAGING MACHINERY MARKET .................................................. 12 

2.1 ESTIMATED SIZE OF APPARENT DOMESTIC MARKET .............................. 12 

2.2 PRODUCTION................................................................................................... 12 

2.3 EXPORTS .......................................................................................................... 13 

2.4 IMPORTS........................................................................................................... 15 

2.5. MARKET DRIVERS: FACTORS INFLUENCE PURCHASE DECISIONS ...... 17 

2.6 .....CUSTOMER EVALUATION OF SOURCES OF PACKAGING MACHINERY 

AND SERVICES................................................................................................ 19 

2.7 PACKAGING MACHINERY TRENDS............................................................... 22 

2.8 COMMUNICATIONS AND MARKETING MECHANISMS ................................ 24 

2.9 EQUIPMENT FINANCING................................................................................. 25 

2.10 SWOT ANALYSIS OF U.S. PACKAGING MACHINERY MANUFACTURES 25 

2.11 STRATEGIES FOR U.S. MANUFACTURERS TO SUCCEED IN CANADA . 27 

3.0 THE FOOD INDUSTRY ............................................................................................ 28 

3.1 INDUSTRY OVERVIEW .................................................................................... 28 

3.2 KEY PLAYERS................................................................................................... 29 

3.3 PRODUCTION................................................................................................... 30 

3.4 EXPORTS .......................................................................................................... 33 

3.5 FOOD PACKAGING REGULATIONS ............................................................... 34 

3.6 COMPANY PROFILES ...................................................................................... 35 

ADAMS CANADA............................................................................................... 35 

ASSOCIATED BRANDS.................................................................................... 38 

CADBURY TREBOR ALLAN INC...................................................................... 42 

CARRIERE FOODS INC.................................................................................... 46

CONAGRA FOODS INC.................................................................................... 49 

DARE FOODS LIMITED .................................................................................... 52 

E. D. SMITH & SONS......................................................................................... 55 

ELMIRA POULTRY INC..................................................................................... 58 

FISHERIES PRODUCTS INTERNATIONAL..................................................... 61 

GAY LEA FOODS CO-OPERATIVE LTD.......................................................... 64 

HEINZ CANADA................................................................................................. 67 

HUMPTY DUMPTY SNACK FOODS INC......................................................... 72 

JOHNVINCE FOODS......................................................................................... 75 

KELLOGG CANADA INC................................................................................... 78 

KRAFT CANADA INC. ....................................................................................... 81 

KRISPY KERNELS INC..................................................................................... 85 

MCCAIN FOODS LIMITED................................................................................ 89 

MCCORMICK CANADA..................................................................................... 93 

MIDWEST FOOD PRODUCTS......................................................................... 96 

NESTLE CANADA INC...................................................................................... 99 

OLIVIERI FOODS............................................................................................ 102 

ROGERS SUGAR ............................................................................................ 105 

SAPUTO INC.................................................................................................... 108 

SCHNEIDER FOODS...................................................................................... 111 

SMUCKER (CANADA) INC.............................................................................. 115 

SEAFORTH CREAMERY INC......................................................................... 119 

TROPHY FOODS INC. .................................................................................... 121 

VOORTMAN COOKIES LIMITED.................................................................... 125 

WESTON BAKERIES LTD............................................................................... 129 

4.0 THE BEVERAGE INDUSTRY................................................................................. 133 

4.1 INDUSTRY OVERVIEW .................................................................................. 133 

4.2 KEY PLAYERS................................................................................................. 135 

4.3 PRODUCTION................................................................................................. 135 

4.4 EXPORTS ........................................................................................................ 137 

4.5 COMPANY PROFILES .................................................................................... 139 

COLUMBIA BREWERY................................................................................... 139 

DIAGEO CANADA ........................................................................................... 142 

HIRAM WALKER & SONS LIMITED ............................................................... 145 

MARK ANTHONY CELLARS LIMITED ........................................................... 148

MOLSON.......................................................................................................... 151 

MOTHER PARKERS TEA & COFFEE LTD.................................................... 154 

SUN-RYPE PRODUCTS LIMITED.................................................................. 157 

5.0 THE PHARMACEUTICAL AND PERSONAL CARE INDUSTRY.......................... 160 

5.1 INDUSTRY OVERVIEW .................................................................................. 160 

5.2 KEY PLAYERS................................................................................................. 161 

5.3 PRODUCTION................................................................................................. 162 

5.4 EXPORTS ........................................................................................................ 164 

5.5 COMPANY PROFILES .................................................................................... 166 

ESTEE LAUDER COSMETICS LIMITED........................................................ 166 

MCNEIL CONSUMER HEALTHCARE CANADA............................................ 169 

MERCK FROSST CANADA & CO................................................................... 172

EXECUTIVE SUMMARY 

i. Introduction 

This report was commissioned by PMMI, and was conducted by the SMG/Columbia 

Consulting Group, a full service management consulting firm with offices in British 

Columbia, Washington State and Oregon. The report overviews the packaging 

machinery market in Canada in the food, beverages and pharmaceutical/personal 

care products industry sectors. 

The report is divided into five sections. The first section provides context for the 

market research information as it introduces the economic, political, and market 

environment in Canada. The second section describes the packaging machinery 

market in detail, including information about imports, exports, domestic production, 

and market size. This section also examines consumer behavior, including the main 

factors that influence purchase decisions. Sections three to five of the report outline 

the structure and size of the food processing, beverage, and pharmaceutical and 

personal care industries in Canada. These sections also present detailed profiles of 

selected end-users within each industry. 

ii. Canadian Market Environment 

The economic fundamentals of the Canadian economy are sound, and economic 

activity is expected to pick up in the second half of 2003, especially if the U.S. 

recovery accelerates as expected and the present uncertainties diminish. 

A factor affecting the sale of imported packaging machinery in Canada is the 

strengthening Canadian dollar relative to the U.S. dollar. At the time of the writing of 

this report, the U.S. – Canadian dollar exchange rate is the most favorable it has 

been since the mid-1990s. This reduces the cost of importing U.S. produced 

packaging machinery to price sensitive Canadian firms. 

iii. Canadian Packaging Machinery Market 

The size of the domestic market for packaging machinery is estimated to be worth 

approximately CDN$414 million dollars. 

The United States is the single largest source of imported packaging machinery in 

Canada, as it supplies 49 per cent of the imports by value. Collectively, the 

European nations supply 43 per cent of the imports by value. The key European 

competing countries are Germany and Italy, which supply, respectively, 14 per cent 

and 12 per cent of the imports by value. 

iv. Best Prospects for Packaging Machinery Sales 

The industries/industry sectors for which demand for packaging machinery is likely to 

increase over the next three years are: 

• Food products in sectors that are particularly competitive and consumer-sensitive 

• Beverages, particularly bottled water and wine 

• Pharmaceuticals 

SMG/Columbia Consulting Group Page 1

The types of machinery for which demand is likely to increase in the coming years 

are: 

• Form, fill and seal machines 

• Automated case packing and palletizing equipment 

• Faster, automated palletizers 

• Blister pack equipment 

• Faster, more reliable inspection equipment 

• Faster and more sensitive printing, marking, and labeling equipment 

• Faster cartoning equipment 

v. Factors that Influence Purchasing Decisions 

The four most important factors that influence the purchase decision of packaging 

machinery are: 

• Quality/reliability/durability 

• Potential operating cost savings/added value 

• Operating reliability/accuracy 

• Equipment characteristics and features 

vi. Strategies for United States Companies to Succeed in Canada 

Based on the market research findings, the study suggests that the following 

strategies could be used to maintain and build the dominant market share enjoyed by 

U.S. packaging machinery: 

• Understand and provide for Canadian customers’ need for short run, fast 

changeover equipment; 

• Build upon the competitive advantage provided in Canada by the belief that U.S. 

manufacturers’ have superior service networks. 

• Utilize the U.S.’s close proximity to Canada to develop a quick response 

capability. 

• Use to advantage the improved price competitiveness provided by the more 

favorable U.S.-Canadian dollar exchange rate. 

• Do not assume the Canada market is exactly like the U.S.; gather market 

intelligence to better understand the market. 

• Build on Canadian package machinery buyers’ perception that U.S. suppliers are 

‘solid citizens’ 

• Adhere to international standards to enhance market perception of U.S. products. 

• Provide flexible, high-speed packaging equipment but, to the extent possible, 

incorporate scalability. 


1.0 THE CANADIAN MARKET ENVIRONMENT 

1.1 INTRODUCTION 

Canada has an affluent economy that is closely integrated with that of the United 

States, resembling not only U.S. per capita output, but also its market-oriented 

economic system, pattern of production, and high standard of living. In the years 

since the Second World War, impressive growth in the manufacturing and service 

sectors has transformed the nation from a largely rural economy into one primarily 

urban and industrial; although much of Canada’s manufacturing sector, including 

many purchasers of packaging machinery, is owned by American companies. The 

1989 U.S.-Canada Free Trade Agreement (FTA) and the 1994 North American Free 

Trade Agreement (NAFTA), which includes Mexico, eliminated virtually all Canadian 

tariffs on U.S. products and touched off a dramatic increase in trade and economic 

integration with the U.S. Economically and technologically, Canada has developed in 

parallel with the United States across an undefended border. 

It is difficult to isolate the precise effects of any trade agreement on economic growth, 

but NAFTA’s numbers are impressive. By the fifth anniversary of the agreement, 

Canada’s merchandise trade with the U.S. and Mexico had risen 80 per cent and 100 

per cent, respectively. By 1999, trade in goods and services between Canada and 

the U.S. totaled $622.7 billion—an average of $1.7 billion of business crossing the 

border every day. The dominance of the U.S. in the Country’s trade statistics is 

striking: all told, in 2002 the U.S. bought about 85 per cent of Canada’s exports and 

produced 72 per cent of its imports. 

Although the Canadian market mirrors the U.S. market in many respects, there are 

differences among Canada’s regions. Canada is made up of 10 provinces and three 

territories in five main regions: the Atlantic region, Central Canada, the Prairies, the 

West Coast and the North. The Atlantic region includes the provinces of Nova Scotia, 

New Brunswick, Prince Edward Island, Newfoundland and Labrador. Central Canada 

is comprised of the English speaking province of Ontario and the French speaking 

province of Quebec. Central Canada is the most populated region of the country. 

Together, Ontario and Quebec produce 77 per cent of all Canadian manufactured 

goods. The Prairies encompass the provinces of Manitoba, Saskatchewan, and 

Alberta, while the West Coast consists of the province of British Columbia. The North 

includes Canada's three territories: Yukon, the Northwest Territories, and Nunavut, 

which make up more than one-third of Canada's landmass but far less than 1 per 

cent of the population. 

The provinces of Ontario and Quebec are the economic heartland of Canada, as the 

majority of the country’s manufacturers are concentrated in this region. The Province 

of Ontario is the economic powerhouse of Canada. In 2002, Ontario accounted for 41 

per cent of Canada's Gross Domestic Product (“GDP”), 53.5 per cent of Canada's 

total manufacturing shipments, and 38 per cent of Canada's population. Ontario’s 

economy is comparable in size to that of Sweden, Switzerland, Belgium, or Austria. 


In 2002, Quebec accounted for 21 per cent of Canada’s GDP, 23.5 per cent of 

Canada’s total manufacturing shipments, and 24 per cent of Canada’s population. 

One of the main differences between Canada and the U.S. is that, under the Official 

Languages Act, Canada is officially a bilingual country. 22.6 per cent of Canadians 

consider French as their native language, and of this, 80.2 per cent live in the 

province of Quebec. However, whether a person is English or French speaking, 

residing in the West Coast, Central or Atlantic region, all Canadians have the right to 

receive federal government services in English or French. 

1.2 GEOGRAPHY AND POPULATION 

Canada is the second largest country by land area in the world. Its borders 

encompass a total land mass of approximately 9.984 million square kilometers. It is 

smaller than the Russian Federation, but larger than both China and the United 

States of America. It occupies roughly two-fifths of the North American continent. 

Canada’s population was estimated to be 31.5 million on January 1, 2003, and 

between 2002 and 2003, Canada’s population grew by 0.8 per cent. In comparison, 

Census Bureau inter-census projections indicate that the U.S. population grew by 1.2 

per cent between July 1 2002 and July 1 2003. 

Canada is a highly urbanized nation as 79.7 per cent of the population live in urban 

areas. Approximately 90 per cent of the Canadian population live within 100 miles of 

the Canada/U.S. border. 62.2 per cent of the Canadian population are concentrated 

in the provinces of Ontario and Quebec. The population of Canada’s ten provinces, 

three territories, and the largest provincial and territorial cities, are set out in the 

following table. 

Table 1.1: Population of Canada’s Provinces, Territories, and Cities 

Province/Territory Population 

(January 

2003) 

Newfoundland and 

Labrador 

Largest City Population 

(Census 

2001) 

531,145 St. John's 172,918 

Prince Edward Island 140,412 Charlottetown 58,358 

Nova Scotia 944,456 Halifax 359,183 

New Brunswick 756,368 Saint John 122,678 

Quebec 7,467,626 Montreal 3,426,350 

Ontario 12,109,514 Toronto 4,682,897 

Manitoba 1,150,564 Winnipeg 671,274 

Saskatchewan 1,009,225 Saskatoon 225,927 

Alberta 3,134,286 Calgary 951,395 

British Columbia 4,155,779 Vancouver 1,986,965 

Yukon Territory 29,841 Whitehorse 21,405 

Northwest Territories 41,389 Yellowknife 16,541 


Nunavut 28,955 Iqaluit 5,236 

Canada 31,499,560 Ottawa-Hull 1,063,664 

Source: Statistics Canada 


1.3 INTERNATIONAL ECONOMIC COMPARISION 

A comparison of GDP, and in particular GDP per capita, indicates that Canada has 

one of the most highly developed market economies within the OECD group of 

nations. 

Table 1.2: International GDP Comparisons: 2001 

Country GDP 

(U.S.$ Billions) 

GDP/Capita 

(U.S.$ 

Thousands) 

Canada $694.5 $22.3 

Australia 368.8 18.9 

France 1,309.8 21.5 

Germany 1,853.4 22.5 

Italy 1,091.8 18.8 

Japan 4,141.4 32.6 

Mexico 617.2 6.2 

United Kingdom 1,426.5 24.3 

United States $10,019.7 $35.2 

Source: OECD 

1.4 INTERNATIONAL TRADE 

Canada is a major trading nation, and a key strength in its economy is its substantial 

trade surplus. Its leading merchandise exports and imports are presented in the 

following table. 

Table 1.3: Canadian Merchandise Trade 2002: Exports and Imports 

Category Exports Imports 

(C$ Millions) (C$ Millions) 

Agriculture and fishing products $30,541.6 $21,777.5 

Energy products 50,419.3 16,456.4 

Forestry products 36,650.3 3,134.0 

Industrial goods and materials 69,434.7 68,827.8 

Machinery and equipment 94,718.0 105,785.4 

Automotive parts 97,081.1 81,446.2 

Other consumer goods 17,341.0 46,416.2 

Special transactions trade 7,909.8 5,873.9 

Other 6,590.8 6,392.1 

Total Merchandise Trade 


$410,686.5 $356,109.3 

The destinations of Canada’s exports as well as the sources of Canada’s imports are 

outlined below. 


Table 1.4: Canadian Merchandise Trade 2002: Export Destinations and Import 

Sources 

Country 

Exports Imports 

C$ Millions Percent C$ Millions Percent 

United States $348,383.7 84.8 $254,688.3 71.5 

Japan 9,706.9 2.4 11,735.6 3.3 

United Kingdom 5,905.8 1.4 10,311.0 2.9 

Other European 

Economic Community 

Countries 

15,304.6 3.7 25,833.5 7.3 

Other OECD Countries 11,026.6 2.7 19,480.6 5.5 

Other Countries 20,359.0 5.0 34,060.4 9.6 

Total Merchandise 

Trade 


$410,686.5 100.0 $356,109.3 100.0 

1.5 POLITICAL/ECONOMIC ISSUES 

Canada is a politically stable nation, although it is currently undergoing a change in 

the leadership of the political party that governs Canada. By early 2004, Prime 

Minister Jean Chretien, leader of the Federal Liberal Party, will, in all likelihood, be 

replaced as leader of the party by Paul Martin. This leadership change will make Mr. 

Martin Canada’s next Prime Minister. 

For the past four decades Canada has been faced with a substantial portion of the 

Province of Quebec’s population who want to separate from Canada. However, the 

threat of Quebec’s succession from Canada has been substantially reduced as a 

result of the last Quebec provincial election. In April 2003, the Provincial Liberal 

Party, led by Jean Charet, defeated the Parti Québécois, a party that pursued a 

separatist agenda. 

For Canada, 2002 marked the eleventh consecutive year of economic growth. Real 

gross domestic product (GDP) increased at an annual rate of 2.4 per cent in the first 

quarter of 2003, a faster pace than the 1.6 per cent it experienced during the fourth 

quarter of 2002. But as a whole, real GDP grew 3.4 per cent in 2002, which was 

more than double the rate of 2001, and higher than the 2.4 per cent growth posted in 

the United States. In 2002, Canada attained the best performance amongst the G-8 

group of developed nations in terms of output growth and job creation. Even though 

short-term economic prospects remain vulnerable to certain impacts, such as Middle 

East uncertainty, SARS, and Mad Cow disease, most analysts expect continued 

growth in 2003. Canada is expected to lead the G-8 in terms of output as growth is 

forecast to reach 2.2 per cent in 2003. The Royal Bank of Canada predicts that the 

Canadian economy will see growth of 3.4 per cent in 2004. 

The foundation upon which Canada’s economic performance was built in 2002 was 

the consumer, as employment growth and pent-up demand for durables drove the 


economy. Between January 2002 and February 2003 the Canadian economy 

generated 613,000 net new jobs, the largest gain in employment during any fourteen 

month period on record back to 1976. Even though the strong labor market induced 

an additional 522,000 people to enter the labor force during 2002, the unemployment 

rate dropped from 8.0 per cent in December 2001 to 7.4 per cent in January and 

February 2003. Historically low interest rates have fuelled consumer spending on 

durables, in particular motor vehicles, residential housing, furniture, and appliances. 

Solid growth in consumer spending and in residential investment was accompanied 

by declines in real exports and in non-residential investment in plant and equipment. 

Canada's economy and in particular, its export sector, will be challenged by the rapid 

speed with which the Canadian dollar has recently appreciated. The Canadian dollar 

rose 15 per cent during the first half of 2003. The Royal Bank of Canada predicts it 

will reach 75.2 U.S. cents (or $C1.33 to the U.S. dollar) by the end of 2003 and climb 

to 77.5 U.S. cents ($C1.29 to the U.S. dollar) by the end of 2004. It traded at 74.02 

cents, or $CDN1.35 to the U.S. dollar on Friday, 19 September 2003. A 75-cent 

dollar erases the labor cost advantage Canada has experienced over the U.S. in 

recent years. Any further appreciation in the Canada/U.S. exchange rate would tilt 

the competitive balance towards U.S. manufacturing in the absence of an increase in 

domestic productivity or a decrease in labor costs. 

Some of Canada’s key economic indicators are summarized in the following table. 

Table 1.5: Canada: Key Economic Indicators 

Key Indicators 1999 2000 2001 2002 2003 

Real GDP growth (%) 5.1 4.5 1.5 3.4 2.2 1 

Exports of Goods & Services (% GDP) 43.0 45.5 43.3 42.2 41.8 2 

Unemployment Rate (%) 7.6 6.8 7.2 7.7 8.0 3 

Prime Rate (average. %) 6.4 7.3 5.2 4.2 4.50 3 

Exchange Rate (C$: U.S. Cents) 67.3 67.3 64.6 63.7 68.0 3 

Consumer Price Index (average %) 1.3 1.3 2.0 2.4 2.0 4 

Sources: Economist Intelligence Unit; Department of Finance Canada; Statistics 

Canada. 

Notes: (1) Finance Minister John Manley’s Budget Update, June 2003, 

(2) Economist Intelligence Unit estimate. 

(3) Department of Finance Canada. The unemployment rate was current as of 

August 2003, and the unemployment and prime rates were current as of 

September 4, 2003. 

(4) Statistics Canada. The consumer price index was current as of August 

2003. 

1.6 TRADE BARRIERS AND IMPORT DUTIES 


As a result of the U.S.-Canada Free Trade Agreement (FTA), which went into effect 

in January 1989, virtually all Canadian tariffs on U.S. products have been eliminated. 

The North American Free Trade Agreement (NAFTA), which replaced the FTA in 

January 1994, removed some remaining barriers and expanded specific provisions of 

the FTA. However, certain non-tariff barriers at both the federal and provincial levels 

continue to impede the access of U.S. goods and services to Canada or retard 

potential export growth. These non-tariff barriers include standards and practices 

related to government procurement policies, provincial liquor boards, service exports 

and cultural industries. 

There are no significant trade barriers impeding exports of U.S. packaging machinery 

to Canada. Under the U.S.-Canada Free Trade Agreement and its successor, the 

North American Free Trade Agreement, tariffs on all U.S.-origin packaging machinery 

were eliminated as of January 1, 1998. Equipment originating from the United States 

that satisfy NAFTA Rules of Origin requirements are entitled to a zero percent tariff. 

Equipment that does not satisfy the Rules of Origin or that originate from other 

countries is subject to the Most Favored Nation tariff, which is 3.4 percent. Rules of 

Origin outlined in NAFTA are used to determine whether a product or piece of 

equipment originates in Canada, the Unites States, or Mexico and is thereby eligible 

for duty-free entry to the respective markets. 

All commercial shipments exported to Canada require a properly completed Canada 

Customs Invoice or its equivalent. In addition, shipments of U.S.-produced goods 

must be accompanied by a completed NAFTA Certificate of Origin in order to obtain 

tariff-free treatment under the provisions of the North American Free Trade 

Agreement. For further information, contact the Canada Customs and Revenue 

Agency representative at the Canadian Embassy in Washington at Tel: (202) 682- 

1740 or Fax: (202) 682-7689. 

Non-tariff barriers are not a significant factor affecting U.S.-Canada trade in 

packaging equipment. There are no technical standards established by the 

Canadian government for imported packaging equipment. However, all electrically 

powered products sold in Canada must comply with Canadian law requiring 

compliance with federal standards established by the Canadian Standards 

Association (CSA). Information pertaining to the certification process and copies of 

the applicable standards can be obtained by contacting the CSA. 

On January 1, 1991, the Canadian Federal Government supplanted its 13.5 percent 

Federal Sales Tax on manufactured goods with a seven-percent Goods and Services 

Tax (GST). The GST is a value-added consumption tax, which is applied to all 

domestic and imported goods and services sold in Canada. The GST on imports is 

initially levied on the freight on board (FOB) price plus applicable Canadian customs 

duties, if any. For more information regarding the GST, exporters should contact 

Canada Customs and revenue Agency. 

U.S. exporters of packaging equipment must comply with bilingual and other 

packaging and labeling practices in Canada. Directions for use, warranty certificates 


or assembly instructions accompanying the equipment must be in both of Canada's 

official languages --English and French. Special provincial packaging and labeling 

requirements apply in the province of Quebec, and U.S. exporters of non-food FCSL 

equipment should contact the Office de la Langue Francaise for more information. 

1.7 REGULATORY ISSUES AFFECTING PACKAGING 

Heath Canada is responsible for administering the Food and Drugs Act. This Act 

applies to all food, drugs, cosmetics and medical devices sold in Canada, whether 

manufactured in Canada or imported. The Act and Regulations ensures the safety of 

and prevent deception in relation to foods, drugs, cosmetics and medical devices by 

governing their sale and advertisement and, in addition, sets out the labeling 

requirements for food. A consolidation of the Food and Drugs Act and of the Food 

and Drug Regulations issued by the Department of Health can be found at: 

http://www.hc-sc.gc.ca/food-aliment/friia-raaii/food_drugs-aliments_drogues/actloi/e_index.html. 

Pre-packaged products sold in Canada are subject to mandatory labeling 

requirements regarding product identity, product net quantity, and dealer’s name, and 

principal place of business, requirements that are described in more detail below. 

Some further requirements include: 

• The name of a product must appear on the label of pre-packaged consumer 

goods in both English and French. 

• All mandatory information on food labels must be shown in both French and 

English. 

• In Quebec, labeling of food products must be in French or have a French version 

displayed at least as prominently as the other language. 

• Labels of shipping containers (such as those for commercial, industrial or 

institutional use), are not required to be bilingual, but do need a net quantity 

declaration in either metric or Canadian measure. 

• Information shown on labels is subject to minimum type size requirements. 

• A wide range of consumer items are now limited to a specific number of standard 

metric package sizes. This particularly relates to products such as laundry 

detergents, soaps, deodorants, shaving creams, hairsprays, shampoo, perfume, 

skin creams and other cosmetic goods. 

• Statements of national meat inspection and of plant number must be indicated on 

labels or cartons of imported meat. 

• Textile articles, food (including meat, fish and eggs), drugs, alcohol and cosmetics 

are also subject to more stringent labeling requirements. 

In Canada, the existence of bilingualism has significant implications for packaging. 

Canada requires bilingual labeling (English and French) for most products. Bilingual 

designation of the generic name on most pre-packaged consumer products is 

required by the federal Consumer Packaging and Labeling Act. Under this Act, the 


following information must appear on the package/label of a consumer good sold in 

Canada: 

• Product Identity Declaration: describes a product's common or generic name, or 

its function. The declaration must be in both English and French 

• Net Quantity Declaration: should be expressed in metric units of volume when the 

product is a liquid or a gas, or is viscous; or in metric units of weight when the 

product is solid or sold by numerical count. Net quantity may be expressed in 

other established trade terms. 

• Dealer's Name and Principal Place of Business: describes where the prepackaged 

product was manufactured or produced for resale. In general, a name 

and address sufficient for postal delivery is acceptable. This information can be in 

either English or French. 

• Canada Customs and Revenue Agency, the agency responsible for inspection of 

imports, also requires an indication of the country of origin, such as "Made in the 

USA," on several classes of imported goods. Goods not properly marked cannot 

be released from Canada Customs until suitably marked. 

The Province of Quebec requires that all products sold in that province be labeled in 

French and that the use of French be given equal prominence with other languages 

on any packages or containers. The Charter of the French Language requires the 

use of French on product labeling, warranty certificates, directions for use, public 

signs and written advertising. 


2.0 CANADA’S PACKAGING MACHINERY MARKET 

2.1 ESTIMATED SIZE OF APPARENT DOMESTIC MARKET 

In 2001, the apparent domestic market for packaging machinery in Canada was 

estimated to be worth approximately C$414 million dollars, a 12.2 per cent increase 

over 2000. The table below outlines the estimated size of the apparent domestic 

market in Canada for packaging machinery for the years 1998 to 2001. The 

estimated size of the apparent domestic market was calculated by adding 

Manufacturing Shipments to Total Imports and then subtracting Total Exports. 

Table 2.1: Estimated Size of Apparent Domestic Market for Packaging 

Machinery, 1998-2001 

HS 5 Packaging 

Machinery Codes 5 

1998 1999 2000 2001 

(C$ 000s) (C$ 000s) (C$ 000s) (C$ 000s) 

8422.20 1 $10,784 $13,265 $10,001 $11,350 

8422.30 2 139,332 158,340 114,491 126,403 

8422.40 3 140,409 163,458 147,434 192,169 

8422.90 4 74,157 71,737 96,925 83,776 

Total $364,682 $406,800 $368,851 $413,698 

Source: Consultants’ calculation. 

Notes: (1) HS 8422.20 – Machinery for cleaning/drying bottles or other containers. 

(2) HS 8422.30 – Machinery for filling, closing, sealing or labeling bottles, cans and 

other containers. 

(3) HS 8422.40 – Packing or wrapping machinery (including heat shrink-wrapping 

type). 

(4) HS 8422.90 – Parts of dishwashers or machinery for cleaning or otherwise 

packaging containers. 

(5) Canada and most countries throughout the world, including the United States, use 

the Harmonized Commodity Description and Coding System (the Harmonized 

System or HS) to classify internationally traded goods. The Harmonized System’s 6digit 

root was developed for general product categories under the auspices of the 

Customs Co-operation Council. Individual countries that use the HS are allowed to 

define commodities at a more detailed level than 6-digits, but all definitions must be 

within that 6-digit framework. Individual countries have extended the 6-digit root to 10 

digits for customs (import) purposes, and to 8 digits for export purposes. In Canada, 

extensions of the international HS are used to collect and disseminate statistics on 

detailed merchandise export and import commodities. 

2.2 PRODUCTION 

In 1999, according to the most recent and complete data available from Statistics 

Canada for these products, Canadian manufacturers shipped packaging machinery 

valued at approximately C$259 million, a figure which under-estimates the amount of 

domestic production as data for all industry segments have not been captured. The 

following table outlines the value of Canadian manufacturers’ shipments of packaging 

machinery for the years 1997 to 1999. The most recent production data available is 


1999 as Statistics Canada is not scheduled to release 2000 and 2001 data until 

January 2004. 

Table 2.2: Value of Products Shipped by Canadian Manufacturers, Packaging 

Machinery, 1997-1999 

HS Packaging 

Machinery Codes 

1997 

(C$ 000s) 

1998 

(C$ 000s) 

1999 

(C$ 000s) 

8422.20 1 Not available Confidential $14,800 

8422.30 2 $77,000 $83,700 107,600 

8422.40 3 144,400 122,000 136,500 

8422.90 4 Not available Not available Not available 

Total $221,400 $205,700 $258,900 

Source: Statistics Canada. 





type). 



2.3 EXPORTS 

In 2002, Canada exported packaging machinery valued at approximately C$359 

million, a 0.57 per cent increase over 2001. The following table outlines the value of 

Canada’s total exports of packaging machinery for the years 1998 to 2002. 

Table 2.3: Total Packaging Machinery Exports, 1998-2002 



1998 

(C$ 000s) 

1999 

(C$ 000s) 

2000 

(C$ 000s) 

2001 

(C$ 000s) 

2002 

(C$ 000s) 

8422.20 1 $9,384 $8,363 $10,452 $23,288 $11,130 

8422.30 2 108,651 101,639 117,591 122,942 126,046 

8422.40 3 120,269 124,895 122,278 118,423 124,588 

8422.90 4 70,249 86,440 79,755 91,989 96,921 

Total (All Countries) $308,553 $321,336 $330,076 $356,642 $358,684 






type). 




The following table outlines the main destinations of Canada’s total exports of 

packaging machinery for the years 2000 to 2002. As the table demonstrates, the 

United States is the main destination for Canada’s exports of packaging machinery. 

In 2002, for example, the United States received approximately 92 per cent of the 

total value of Canada’s exports of packaging machinery. 

2.4: Destinations of Canada’s Total Exports of Packaging Machinery, 2000-2002 

Total Export 2000 2001 2002 2000 2001 2002 % Change 

Destinations (CDN$) 

% Share 

2001/2002 

World $ 334,417,149 $ 358,576,280 $ 359,136,598 100% 100% 100% 0.16% 

United States (U.S.) $ 309,408,782 $ 329,173,132 $ 329,886,001 93.74% 92.30% 91.97% 0.22% 

Germany $ 2,152,079 $ 1,586,080 $ 4,908,536 0.65% 0.44% 1.37% 209.48% 

Australia $ 712,642 $ 921,380 $ 3,497,402 0.22% 0.26% 0.98% 279.58% 

Ireland $ 2,286,232 $ 1,486,711 $ 2,629,581 0.69% 0.42% 0.73% 76.87% 

Hong Kong $ - $ 892,288 $ 2,198,359 0.00% 0.25% 0.61% 146.37% 

United Kingdom (U.K.) $ 2,614,073 $ 2,040,679 $ 2,062,279 0.79% 0.57% 0.57% 1.06% 

Iran $ - $ 92,412 $ 1,740,459 0.00% 0.03% 0.49% 1783.37% 

Japan $ 221,741 $ 111,337 $ 1,192,551 0.07% 0.03% 0.33% 971.12% 

Brazil $ 292,246 $ 3,310,243 $ 1,189,472 0.09% 0.93% 0.33% -64.07% 

Colombia $ 80,742 $ 328,127 $ 942,875 0.02% 0.09% 0.26% 187.35% 

Singapore $ 279,384 $ 262,633 $ 866,334 0.08% 0.07% 0.24% 229.86% 

China $ 1,063,525 $ 9,412,868 $ 702,899 0.32% 2.64% 0.20% -92.53% 

Chile $ 21,511 $ 55,718 $ 568,503 0.01% 0.02% 0.16% 920.32% 

Jamaica $ 481 $ 10,087 $ 566,597 0.00% 0.00% 0.16% 5517.10% 

Venezuela $ 97,536 $ 310,722 $ 558,967 0.03% 0.09% 0.16% 79.89% 

Indonesia (includes East Timor) $ 2,567 $ 371,423 $ 514,631 0.00% 0.10% 0.14% 38.56% 

France (incl. Monaco, French Antilles) $ 1,348,184 $ 1,418,019 $ 497,485 0.41% 0.40% 0.14% -64.92% 

Netherlands $ 425,552 $ 91,462 $ 481,182 0.13% 0.03% 0.13% 426.10% 

Taiwan (Taipei) $ 16,493 $ 59,358 $ 352,058 0.00% 0.02% 0.10% 493.11% 

Vietnam $ 144,000 $ - $ 314,668 0.04% 0.00% 0.09% 0.00% 

Belgium $ 418,736 $ 6,599 $ 313,874 0.13% 0.00% 0.09% 4656.39% 

Mexico $ 602,189 $ 338,640 $ 270,149 0.18% 0.09% 0.08% -20.23% 

Dominican Republic $ 444,969 $ 5,591 $ 222,420 0.13% 0.00% 0.06% 3878.18% 

Barbados $ 26,937 $ 10,394 $ 220,735 0.01% 0.00% 0.06% 2023.68% 

Korea, South $ 229,137 $ 256,571 $ 191,010 0.07% 0.07% 0.05% -25.55% 

Italy (includes Vatican City State) $ 1,182,632 $ 60,783 $ 164,620 0.36% 0.02% 0.05% 170.83% 

Malaysia $ 376,218 $ 1,764,074 $ 123,076 0.11% 0.49% 0.03% -93.02% 

Poland $ - $ 95,725 $ 121,356 0.00% 0.03% 0.03% 26.78% 

Finland $ 287,825 $ - $ 120,103 0.09% 0.00% 0.03% 0.00% 

Ecuador $ 12,481 $ 99,698 $ 119,985 0.00% 0.03% 0.03% 20.35% 

Libya $ - $ - $ 119,414 0.00% 0.00% 0.03% 0.00% 

Lithuania $ - $ - $ 115,016 0.00% 0.00% 0.03% 0.00% 

Egypt $ 30,609 $ - $ 107,033 0.01% 0.00% 0.03% 0.00% 

New Zealand $ 24,000 $ 60,169 $ 93,789 0.01% 0.02% 0.03% 55.88% 

Oman (Muscat) $ - $ - $ 66,433 0.00% 0.00% 0.02% 0.00% 

Costa Rica $ 141,953 $ 23,618 $ 66,096 0.04% 0.01% 0.02% 179.85% 

Senegal $ - $ - $ 65,830 0.00% 0.00% 0.02% 0.00% 

South Africa $ 790,351 $ 50,719 $ 59,408 0.24% 0.01% 0.02% 17.13% 

All Other Countries 


$ 4,340,671 $ 1,934,510 $ 452,706 1.32% 0.54% 0.13% -76.60% 


2.4 IMPORTS 

In 2002, Canada imported packaging machinery valued at approximately CDN$585 

million, a 13.6 per cent increase over 2001. The table below outlines the value of 

Canada’s imports of packaging machinery for the years 1998 to 2002. 

Table 2.6: Total Packaging Machinery Imports, 1998-2002 



1998 

(C$ 000s) 

1999 

(C$ 000s) 

2000 

(C$ 000s) 

2001 

(C$ 000s) 

2002 

(C$ 000s) 

8422.20 1 $5,368 $6,828 $5,653 $3,132 $6,012 

8422.30 2 164,283 152,379 142,652 159,915 208,300 

8422.40 3 138,678 151,853 135,412 176,292 193,865 

8422.90 4 144,406 158,177 176,680 175,765 177,207 

Total (All Countries) $452,736 $469,238 $460,397 $515,104 $585,384 






type). 



The table on the following page outlines the main sources of Canada’s total imports 

of packaging machinery for the years 2000 to 2002. As the table demonstrates, the 

United States is the main source of Canada’s imports of packaging machinery. In 

2002, for example, the United States provided approximately 49 per cent of the total 

value of Canada’s imports of packaging machinery. 


Table 2.7: Sources of Canada’s Imports of Packaging Machinery, 2000-2002 

Total Import 2000 2001 2002 2000 2001 2002 % Change 

Sources (CDN$) % Share 

2001/2002 

World (All Countries) $ 461,003,631 $ 516,415,804 $ 585,683,404 100% 100% 100% 13.41% 

United States (U.S.) $ 259,242,585 $ 287,772,454 $ 288,973,756 56.23% 55.72% 49.34% 0.42% 

Germany $ 60,684,603 $ 69,857,999 $ 84,057,716 13.16% 13.53% 14.35% 20.33% 

Italy (includes Vatican City State) $ 41,231,830 $ 47,442,615 $ 68,044,918 8.94% 9.19% 11.62% 43.43% 

Switzerland $ 19,496,616 $ 16,147,949 $ 26,399,559 4.23% 3.13% 4.51% 63.49% 

France (incl. Monaco, French Antilles) $ 8,192,371 $ 12,947,047 $ 25,999,268 1.78% 2.51% 4.44% 100.81% 

Japan $ 23,084,500 $ 19,692,565 $ 22,635,970 5.01% 3.81% 3.86% 14.95% 

Netherlands $ 7,451,858 $ 10,050,630 $ 14,279,926 1.62% 1.95% 2.44% 42.08% 

United Kingdom (U.K.) $ 9,511,460 $ 11,906,234 $ 13,006,377 2.06% 2.31% 2.22% 9.24% 

Sweden $ 8,033,032 $ 10,768,223 $ 6,926,899 1.74% 2.09% 1.18% -35.67% 

Spain $ 1,374,215 $ 3,285,801 $ 4,998,488 0.30% 0.64% 0.85% 52.12% 

Taiwan (Taipei) $ 4,738,082 $ 4,013,834 $ 4,517,075 1.03% 0.78% 0.77% 12.54% 

Norway $ 396,083 $ 598,974 $ 3,203,136 0.09% 0.12% 0.55% 434.77% 

Romania $ 1,403,094 $ 2,909,783 $ 2,579,104 0.30% 0.56% 0.44% -11.36% 

China $ 3,269,405 $ 2,300,965 $ 2,300,623 0.71% 0.45% 0.39% -0.01% 

Denmark $ 2,548,029 $ 1,538,596 $ 2,213,752 0.55% 0.30% 0.38% 43.88% 

Indonesia (includes East Timor) $ 22,987 $ 110,046 $ 2,054,513 0.00% 0.02% 0.35% 1766.96% 

Korea, South $ 949,714 $ 1,638,475 $ 1,751,240 0.21% 0.32% 0.30% 6.88% 

India $ 265,307 $ 109,109 $ 1,353,465 0.06% 0.02% 0.23% 1140.47% 

Belgium $ 2,819,010 $ 1,712,998 $ 1,309,235 0.61% 0.33% 0.22% -23.57% 

Re-Imports (Canada) $ 1,356,815 $ 2,580,686 $ 1,251,217 0.29% 0.50% 0.21% -51.52% 

Mexico $ 633,942 $ 816,526 $ 1,041,158 0.14% 0.16% 0.18% 27.51% 

New Zealand $ 129,403 $ 108,494 $ 1,036,061 0.03% 0.02% 0.18% 854.95% 

Singapore $ 144,979 $ 802,211 $ 1,021,558 0.03% 0.16% 0.17% 27.34% 

Brazil $ 99,406 $ 706,230 $ 787,230 0.02% 0.14% 0.13% 11.47% 

Australia $ 486,977 $ 881,693 $ 622,450 0.11% 0.17% 0.11% -29.40% 

Hong Kong $ 325,038 $ 311,503 $ 612,354 0.07% 0.06% 0.10% 96.58% 

Austria $ 666,470 $ 836,673 $ 517,848 0.14% 0.16% 0.09% -38.11% 

Portugal $ 233,825 $ 436,901 $ 315,845 0.05% 0.08% 0.05% -27.71% 

Czech Republic $ 9,069 $ 108,430 $ 268,348 0.00% 0.02% 0.05% 147.49% 

Thailand $ 187,428 $ 94,905 $ 254,840 0.04% 0.02% 0.04% 168.52% 

Philippines $ 130,347 $ 70,616 $ 203,687 0.03% 0.01% 0.03% 188.44% 

Israel $ 161,801 $ 280,800 $ 149,616 0.04% 0.05% 0.03% -46.72% 

Ireland $ 22,066 $ 515,881 $ 131,457 0.00% 0.10% 0.02% -74.52% 

Finland $ 69,988 $ 148,351 $ 94,492 0.02% 0.03% 0.02% -36.31% 

Turkey $ 22,047 $ - $ 93,936 0.00% 0.00% 0.02% 0.00% 

South Africa $ 396,159 $ 287,897 $ 76,799 0.09% 0.06% 0.01% -73.32% 

All Other Countries $ 606,545 $ 1,311,855 $ 299,744 0.13% 0.25% 0.05% -77.15% 



2.5. MARKET DRIVERS: FACTORS THAT INFLUENCE PURCHASE 

DECISIONS 

In assessing opportunities in the Canadian packaging machinery market and 

strategies for success, it is important to first identify and understand the factors that 

influence the purchase decision. Representatives of the packaging machinery users 

included in the survey were asked to rank a list of factors that had been found in 

other markets to enter into the purchase decision. Many pointed out the fact that 

purchase determinants were usually situation specific but they were able to respond 

in general terms. The results were as follows: 

Most Important Factors 

Interestingly, price was not considered to be the most important factor influencing the 

purchase decision. Providing the price quoted was reasonably within the market 

range, a number of other factors were considered to be more important purchase 

drivers. The four most important were said to be: 

• Quality/reliability/durability 

- This factor was identified by the largest number of respondents as being the 

most important. They expressed the need to be certain that they could 

depend upon the performance of the equipment over its operational life. This 

is consistent with the findings in other PMMI markets. 

• Potential operating cost savings/added value 

- In today’s operating environment, virtually all respondents stated that they 

were continually searching for efficiencies in their operations and this played a 

major role in their equipment choices. The driving force behind this is the 

need to improve operational efficiency and get more out of each expenditure 

dollar. 

• Operating reliability/accuracy 

- This is closely associated with the first factor. As one respondent expressed it, 

“I cannot afford high levels of downtime or a high proportion of defects so I 

must have reliable equipment.” 

• Equipment characteristics and features 

- The equipment must, of course, be able to perform the required tasks in a 

manner well suited to the needs of the purchaser. In this it was very important 

to purchasers that installed machinery be able to achieve specification run 

levels or perform as claimed. Within the equipment characteristics, flexibility 

and speed were considered to be among the most important attributes. 


The Next Level of Importance 

A number of other factors were also considered to be important purchase drivers but 

at a lower level of importance than the top four. Also there was less unanimity 

among purchasers as many of these elements were viewed differently by different 

elements within the market. These factors were: 

• Service and technical support 

- This referred to the ready availability of service, the quality of service and the 

types of service offered. Some felt strongly that good service and technical 

support must actually be available inside Canada while most did not need it to 

be located in Canada providing it was readily available when needed. Service 

and technical support was much more important for smaller companies and 

those with few in-house technical personnel. 

• Experience in the respondent’s industry 

- This is another element that is viewed differently by different types of 

purchasers. Although most would prefer that the supplier have solid previous 

experience with their industry, it was considered to be much more important 

for smaller companies or those without fully staffed in-house engineering 

departments. 

• Brand/supplier reputation 

- This is closely associated with the previous point, although there was much 

less variability from company to company. 

• Previous experience with the supplier or brand 

- This was rated somewhat lower than brand/supplier reputation but was still of 

medium importance to most purchasers. However, a number of those 

interviewed stated that this factor is becoming less important as changing 

times have led to less supplier loyalty. 

• Up-to-date technology 

- Up-to-date technology received a mid-level importance rating because 

purchasers did not want up-to-date technology merely for the sake of having 

‘today’s toys’. However, they did want technology that provided true, 

meaningful benefit to their firms. 

Price as a Factor 

• Price was in a category by itself. As noted, providing the price quoted was 

reasonably within the market range, other factors were considered to be more 

important purchase drivers. High price can kill a deal but low price usually will not 

compensate for the lack of some of the other important factors. (A number of 

respondents reported that they were not able to afford certain brands or had not 

purchased others because they felt the added price did not provide sufficient 

added value.) However, if all other factors are judged to be relatively equal, price 

can be the deciding factor. 

There is, however, a portion of the market for which price is the most important 

factor. It was not possible to identify the common characteristics of these pricesensitive 

purchasers, although there was a tendency for them to be among the 

smaller purchasers or those that did not have national or international distribution. 


Factors of Little Importance 

There were three factors that were considered to be of little importance in the 

purchase decision. These were: 

• Cost of maintenance 

- In view of respondents concern for efficiency and optimizing expenditures, it is 

somewhat surprising to see this factor rated so low. It was, however, on the 

boundary between the next level factors and those of little importance. This 

factor is most certainly given due consideration in the purchase decision 

equation but it was rated lower because so many other factors are considered 

to be important. 

• Availability of Financing and Credit Terms 

- A significant majority of respondents to the survey utilize internal sources of 

funds so supplier financing and credit terms were of no importance. 

• Speed of delivery/delivery wait period 

- This factor was given a low rating by most respondents but its importance was 

very situation-specific. Companies in particularly competitive or fast moving 

industry segments or with very aggressive package-centric marketing 

programs felt this to be of higher importance. However, these companies said 

that the important consideration was that suppliers must deliver on delivery 

date/commissioning date promises. 

2.6 CUSTOMER EVALUATION OF SOURCES OF PACKAGING MACHINERY 

AND SERVICES 

The companies who participated in the survey were asked about their perceptions of 

and attitudes toward packaging machinery produced by the various countries active 

in the industry. The survey asked respondents to comment upon and rank only those 

countries with which they had had actual purchase experience. In particular, they 

were asked to identify the specific factors that influenced their purchase decisions. 

Overall Preference 

Purchasers have very similar attitudes to those found in PMMI surveys of other 

counties as they generally hold the most positive attitudes toward packaging 

machinery produced by Germany and three or four other European manufacturers. 

However, this preference is not translated into market leadership positions for these 

countries as the United States continues to account for approximately half of the 

packaging machinery imported annually into Canada. 


Equipment purchasers expressed the following overall opinions about the various 

countries: 

• Germany was believed to produce the best packaging machinery by virtually all 

respondents in all industry sectors surveyed. All but one rated German 

equipment as “Excellent” or “Good”. This rating was based on perceived high 

quality, strong technology, reliability, speed and flexibility. 

• Similar attitudes were expressed regarding Swiss packaging machinery but fewer 

respondents had direct experience with equipment from this country. 

• Very positive attitudes, but somewhat lower than those for Germany, were also 

expressed about packaging machinery from Italy, France and Britain. Many 

expressed the opinion that Italian packaging machinery was equivalent to that of 

Germany and some industries prefer it. The relatively high ratings given to British 

and French packaging machinery may be partially attributable to Canada’s 

historic ties with these countries. However, a few respondents downgraded the 

ratings of these countries based on concerns related to quality, technology and 

reliability. 

• Japanese equipment was also generally viewed positively, although a significant 

portion of respondents felt it was only “Average”. Japan’s overall rating was 

reduced by the perception that these firms provided rather poor service. 

• The overall opinion of packaging machinery from the United States was 

reasonably good, although it was ranked below Germany and Switzerland. The 

majority of respondents gave it a “Good” overall rating, although a significant 

portion felt that it was only “Average”. In relation to Germany, American 

machinery was perceived to be of somewhat lower quality, less technologically 

advanced and less adaptable. 

• Canadian packaging machinery attained a rating similar to that of United States 

suppliers and, in some instances, slightly higher. They were felt to be more 

responsive and better attuned to market need. However, it must be recognized 

that the complete range of packaging machinery is not available from domestic 

manufacturers. 

Quality and Technology 

It is the perception of quality and technology that drive the high overall ratings 

achieved by German and Swiss packaging machinery. 

• Almost three-quarters of the respondents felt that the quality of German 

equipment is “Excellent” while more than half believed that this country offered 

up-to-date technology that is “Excellent”. It was believed that German equipment 

was particularly reliable, flexible and fast with relatively little down time. 

• The ratings given to the Swiss were virtually identical to those of the Germans. 

• Although quality and technology were also rated reasonably high for British, 

French and Italian machinery, they were perceived to be distinctly lower than the 

German or Swiss products. The ratings for these three countries were drawn 

down by a number of customers who felt their performance in these areas was 

only “Average” and by a few who criticized their performance. This criticism 

related to reliability and flexibility. 


• Japanese packaging equipment received ratings similar to those of Britain or 

France. They were viewed to offer “Good” to “Average” quality, although 

technology aspects were viewed to be “Good” to “Excellent”. 

• United States packaging machinery manufacturers were viewed to be ‘solid 

citizens’, although their quality and technology were felt to be somewhat below 

that of the Germans. The majority felt that U.S. machinery quality was “Average” 

to “Good”, although by some it was felt to be less durable and not as flexible as 

the leading European machines. In regard to technology, equipment from United 

States manufacturers was felt to be somewhat less technologically advanced than 

German or Swiss equipment. 

• Canadian packaging machinery was again rated similarly to that of the United 

States in regard to perceptions of quality and technology. It was, however, 

believed that Canadian manufactures tended to focus on areas that required less 

technological input. 

Service and Price 

It is in the areas of service and price that United States and Canadian packaging 

machinery manufactures outperform the Europeans and overcome the perceived 

advantage in quality and technology. Service was perceived to be deficient for many 

offshore manufacturers because they all must sell their products through agents and 

sometimes the quality of agent representation is lower than it should be. 

• German and Swiss packaging machinery are perceived to be very expensive as 

all respondents rated German suppliers at the highest end of the price scale as 

did most for Swiss suppliers. Although the service provided by German 

manufacturers (and even more so for Swiss suppliers) was generally viewed to be 

better than that of other offshore suppliers, it was viewed as being well below the 

service levels provided by United States and Canadian manufacturers. The areas 

of concern were speed of response, provision of on-site support, training and 

availability of repair parts. 

• The service level provided by British and French suppliers was viewed as 

equivalent to that of German suppliers but significantly below that provided by 

U.S. or Canadian firms. However, service provided by Italian manufacturers was 

seen to be significantly below that of the other packaging machinery producing 

countries. The main complaints were lack of responsiveness and difficulty in 

obtaining repair parts. 

In regard to price, British, French and Italian equipment was felt to be slightly less 

expensive than that from Germany. However, they were all viewed to be much 

more expensive than North American machinery. 

• Japanese sources were viewed to be both quite expensive and deficient in the 

service provided. 

• United States manufacturers sell both through their own sales/service forces and 

through agent representatives so the response to U.S. service consists of a blend 

of these two channels. The service provided by U.S. suppliers was felt to be 

good (although the specific responses ranged from “Excellent” to “Average”). 

Higher ratings in regard to service is to be expected as a result of the U.S. 


proximity to Canada combined with the facts that the two countries have similar, 

linked economies and similar consumer societies. Areas mentioned in these 

ratings included availability of repair parts, rapid response to problems and good 

training support. A number of respondents stated that they use North American 

suppliers because of shorter lead times and lower cost of repair parts. 

• The price of U.S. packaging machinery is viewed to be “Good” to “Average” by 

most respondents, although particularly after the impact of the exchange rate is 

taken into account, a significant number also feel that U.S. prices are somewhat 

expensive. The favorable movement in the exchange rate since the beginning of 

the year should begin to positively impact the impression of purchasers as they 

undertake future purchasing. 

• As might be expected, Canadian packaging machinery manufactures received 

very positive ratings both regarding the service they provide and the prices they 

charge. Virtually all respondents felt that Canadian prices were “Excellent” or 

“Good” and their service was rated the highest, significantly above European 

competitors. 

2.7 PACKAGING MACHINERY TRENDS 

There are a number of significant characteristics of the Canadian market that shape 

the demand for packaging machinery in the country that should be understood to put 

the report contents in context. At the same time, there are a number of trends and 

forces taking place that influence demand. Some of the most important are: 

• Canada is a much smaller market than the United States so this results in smaller 

production runs and a greater variety of products turned out by most production 

lines or facilities. As a result, goods producers place a high emphasis on 

packaging machinery versatility and fast changeover capability. 

• Many of the major Canadian goods producers are foreign owned with many 

having U.S. parents. As a result, many purchase decisions are directed from the 

U.S. and some companies purchase all their packaging machinery needs through 

the parent company. There appears to be an increase in such companies 

utilizing their U.S. resources for purchasing. For example, the packaging 

machinery purchases for one of the largest snack foods companies in Canada is 

entirely directed through the United States engineering group. Also, foreign 

subsidiaries frequently purchase the same type of machinery used by their parent 

facilities. 

• With the trend toward globalization, there appears to be some movement to focus 

specific plants on production for larger market areas. For example, the Estee 

Lauder plant in Toronto has a worldwide mandate for the production of mascara. 

• With the large proportion of Canadian firms using imported packaging machinery, 

exchange rates play a major role in determining whether specific brands or 

sources of machinery are affordable. With the recent improvement in the 

exchange rate between Canada and the U.S., this will likely impact the sourcing 

of future packaging equipment purchases. 


• There has been a trend to consolidation and rationalization of manufacturing 

facilities. This has probably dampened demand for packaging machinery 

somewhat, although sell-offs of facilities many also create additional demand. 

(For example, one of Canada’s largest dairy products producers recently 

announced that it was closing two plants and selling another yet it also 

announced it would be adding $10 million in new fixed assets associated with this 

rationalization). 

• With the continuing soft and uncertain economy, there has been significant 

emphasis on reducing labor and gaining efficiencies. Associated with this has 

been a trend to machines with faster throughput and faster changeover times. 

These influences taken together have created demand for more technologically 

advanced equipment to deliver these benefits. 

• The improvement in processing speed is, in turn, driving the need for faster 

components to keep up with the faster throughput of the packaging line. This 

covers such elements as inspection equipment, printing equipment, cartoning 

equipment and palletizers 

• A few producers report that the uncertain economy has caused them to be more 

willing to consider used machinery. This has even impacted some that have 

never considered anything but new equipment in the past. (For example, one of 

the largest food producers reported that in certain circumstances it would now 

consider purchasing used machinery.) 

• Companies in very competitive, consumer-sensitive industry segments or very 

marketing-driven companies report that the resultant frequent and rapid changes 

in package sizes, package type and features and design are important drivers of 

demand for new packaging machinery that can accommodate this. These 

companies report that packaging machinery manufacturers must be able to 

deliver quickly and on time in order to comply with marketing program needs. 

• With the increasing complexity of packaging machinery and the need for better 

control and co-ordination of the elements in packaging lines, there has been 

increased demand for turnkey solutions or system integrators. 

• The changes in food products labeling that will be driven by the mandatory 

nutrition labeling regulations to be implemented during the next three years will 

have a major impact on packaging machinery purchases. 

This has led to the following trends in types and specifications of packaging 

machinery demanded by the marketplace: 

• Packaging machinery that is more versatile/flexible, and able to accommodate 

rapidly changing packaging requirements, a wider range of package sizes and an 

increased number of SKUs. 

• Closely tied to the first point is packaging machinery that can accommodate faster 

changeover times with lower labor input. 

• Packaging machinery that will reduce labor input, improve productivity and 

efficiency and reduce costs. 

• A direct outcome of the search for labor saving opportunities is demand for 

increased automation and robotics, particularly at the end of the production line. 


This translates into demand for automatic case packing machinery and 

automated palletizers. 

• Packaging machinery that offer higher speeds yet improved reliability. 

• More advanced inspecting machines and process control equipment to maintain 

quality at higher speeds. 

• Improved printers and labelers to accommodate faster speeds, more complex 

marketing programs and more elaborate labels that must contain more 

information. 

As equipment becomes more sophisticated, buyers are becoming better informed 

and more critical and selective in their equipment purchases. The development of 

sophisticated, technologically advanced, equipment has increased the need for high 

quality local service and support. This means that the quality of the skills of the 

imported equipment manufacturer’s local representative (distributor, agent or 

employee) is increasingly becoming a critical factor in the purchase decision. 

The market is reacting to the fact that advances in packaging machinery technology 

are continually being introduced at a rapid, escalating rate. This means that buyers 

in high volume packaged goods industries are evaluating suppliers more critically, 

which has led to less loyalty being exhibited towards suppliers with which they have 

dealt in the past. These buyers want to take advantage of the new technology, and 

they are willing to support innovative suppliers focussed on product enhancements 

and market need. 

2.8 COMMUNICATIONS AND MARKETING MECHANISMS 

Trade Exhibitions 

Almost all organisations surveyed attend the Canadian PACex International trade 

show in Toronto. In addition, most organisations attend their industry’s specialised 

trade exhibitions, especially in the beverage and food processing sectors. 

All of the organisations surveyed regularly attend PMMI’s PACK EXPO International 

trade exhibition in Chicago. A smaller proportion attend PACK EXPO in Las Vegas. 

A few organisations reported that they regularly attend the Interpack, which is held 

every three years in Düsseldorf, Germany. 

Trade Magazines 

Most of the organisations surveyed regularly read Canadian Packaging, Packaging 

World, and Engineering. A few respondents also mentioned that they read: 

• Packaging Strategies 

• Packaging Digest 

• Manufacturing 


• Beverage World 

• Powder and Bulk 

• Food in Canada 

• Food Engineering 

• Food and Drug Packaging 

• Meat packaging an Technology 

• Process Controls and Instrumentation 

• Journal of Automation 

2.9 EQUIPMENT FINANCING 

Since a significant majority of organizations surveyed for this study purchase 

packaging machinery using internal funds or self-arranged financing, they generally 

do not seek vendor financing. 

2.10 SWOT ANALYSIS OF U.S. PACKAGING MACHINERY MANUFACTURES 

The strengths and weaknesses that U.S. packaging machinery manufacturers bring 

to the Canadian marketplace along with the opportunities and threats facing them are 

as follows: 

Strengths of U.S. Manufactures and Their Products 

• The prices charged for U.S. packaging machinery are perceived to be somewhat 

lower than those of the key European competitors. 

• U.S. manufacturers have a very high share of the Canadian packaging machinery 

market with the result that they are well known to the Canadian purchasers. 

• The service provided by U.S. packaging machinery manufacturers is also 

perceived to be better than that of the Europeans. U.S. companies have 

established very reliable distribution and servicing networks in Canada that serve 

to maintain and support their dominant position in the market. 

• Proximity to the market allows for low cost and relatively easy market access and 

allows provision of superior technical support, training and customized service. 

• Canadian purchasers are very familiar with U.S. suppliers and accustomed to 

cross-border dealings. Similarities in packaging requirements, manufacturing 

codes and standards between the United States and Canada provide U.S. 

manufacturers with competitive advantage over off-shore exporters supplying the 

Canadian market. 

• The U.S. – Canada Free Trade Agreement allows U.S. machinery into Canada 

with duty and tariff free market accessibility. There are no significant trade 

barriers impeding the sale of packaging machinery into Canada and non-tariff 

barriers are not a significant factor. 

• U.S. packaging machinery manufacturers have established relationships with 

many U.S. parent companies. 


• U.S. packaging machinery manufacturers are viewed to provide shorter lead 

times. 

Weaknesses of U.S. Manufactures and Their Products 

• U.S. packaging machinery is perceived to be less technologically advanced and 

less innovative than the products of its European competitors. 

• The quality of U.S. packaging machinery is perceived to be somewhat lower than 

that of European imports. 

• U.S. packaging machinery is considered to be less adaptable/flexible than 

European machinery and more difficult to changeover. 

• The high market share enjoyed by United States based packaging machinery 

manufacturers means that they are the targets of all other competitors who are 

continually trying to chip away at that leadership position. 

Some of the Main Opportunities/Best Prospects Available to U.S. Manufactures 

• Being able to utilize the lower cost of the U.S. dollar to lever business away from 

offshore competitors. 

• Emphasizing products that take advantage of the market’s desire to automate 

processes and elements in the packaging line. This opens an opportunity for 

such products as palletizers and automatic case packers. 

• Emphasizing products that take advantage of the market’s desire for increased 

speed and flexibility. 

• Ensuring that packaging machinery models are available that are suitable for 

smaller production runs and that allow for speedy changeover. 

• Developing systems integration capability. As machinery becomes 

technologically more sophisticated, firms are moving towards purchasing turnkey 

systems, a development which means that they need help with systems 

installation and integration, as these capabilities are generally beyond the core 

competency of the buying organization. 

Some of the Main Threats Faced by U.S. Manufactures 

• The European competition may find ways to lever its perceived superiority in 

quality and technology to take business away from U.S. packaging machinery 

manufacturers. This exposure is particularly acute in regard to the market’s 

desire for increased speed, improved flexibility and increased automation. 

• As noted, the high market share of U.S. packaging machinery manufacturers 

makes them a target for all other producers. 

• The future of the Canadian economy is somewhat uncertain so an economic 

downturn could dampen demand. (However, most analysts are predicting growth, 

albeit modest, in the near term.) 


2.11 STRATEGIES FOR U.S. MANUFACTURERS TO SUCCEED IN CANADA 

• U.S. packaging machinery manufacturers hold the dominant market share 

position in the Canadian market so much of their strategic focus will likely be 

aimed at market retention rather than market growth. 

• In order to maintain their significant market share, U.S. suppliers of packaging 

machinery will need to continue to identify and satisfy the manufacturing needs of 

potential Canadian customers in such areas as short run, fast changeover. 

Equipment manufacturers who are able to modify their equipment to meet the 

specific interests of Canadian users will be in an advantageous position to 

compete more effectively in the Canadian market. 

• Recognize the competitive advantage that U.S. manufacturers’ perceived superior 

service networks provide and maintain and build on this. In doing this, companies 

must “truly walk the talk” and ensure that the service networks are actually 

performing to expectations and that the service needs of Canadian purchasers 

are understood and acted upon. 

• Utilize the U.S.’s close proximity to Canada to develop a quick response 

capability to enhance the perception of superior service provided by U.S. 

manufacturers. 

• Use to advantage U.S. equipment’s increasing price competitiveness/advantage 

resulting from the more favourable U.S.-Canadian dollar exchange rate. Ensure 

that Canadian buyers actually benefit from the reduction in landed costs resulting 

from the change in the exchange rate. 

• Although trends, developments and tastes in the Canadian consumer market that 

influence packaging needs are frequently similar or identical to those in the U.S., 

do not make the mistake of assuming that they always are. That is, don’t assume 

that Canada is virtually the fifty-first state with demand drivers identical to those 

south of the forty-ninth parallel. Gather market intelligence, attempt to understand 

the market and listen carefully to your customers 

• Build on the reputation of United States packaging machinery manufacturers as 

‘solid citizens.’ This means ensuring that delivery date commitments are met, 

ensuring that products perform as expected, being solution-oriented, being readily 

available to assist with packaging machinery issues that are important to the endusers 

and being as responsive as possible to ever-changing requirements. 

• Recognize the important role that maintenance of international standards can play 

in enhancing market perception of their products. U.S. manufacturers who attain 

ISO 9000 standards for quality management and ISO 14000 standards for 

environmental management systems will enhance their competitive position and 

help to overcome perceptions that they fall short of European quality levels. 

• While striving to provide flexible, high-speed packaging equipment incorporate 

scalability for responsive expansion. 


3.0 THE FOOD INDUSTRY 

3.1 INDUSTRY OVERVIEW 

In 2001, the last year for which complete industry data are available, the Canadian 

food processing industry shipped goods of its own manufacture valued at 

approximately C$56 billion, a 7.4 percent increase over 2000. The value of the 

industry’s shipments represented 10.2 percent of the total value of Canada’s 

manufacturing shipments in 2001. Statistics Canada data for 2001 indicate that the 

industry employed 222,000 people and that it was composed of 4,910 

establishments. 

Canada’s food processing sector is oriented primarily towards the domestic market, 

as 72.5 per cent of sector shipments were sold domestically in 2001. Over one-half of 

the sector’s shipments in 2001 were from two categories: meat (33.9%) and dairy 

(17.7%). The share of production that Canada exports, however, has increased from 

9 per cent to 27.5 per cent between 1988 and 2001. Imports have also increased 

from 10 per cent of the apparent domestic market in 1988 to 21.4 percent in 2001. It 

should be noted that the definition of the food processing sector, as used in this 

report, excludes the beverage and the animal food producing sectors. It should be 

further noted that tea and coffee manufacturing has been included in the beverage 

industry section of the report instead of in the food manufacturing industry section. 

Although the bulk of food processing activity occurs in Ontario and Quebec, the 

economic significance in terms of the share of regional manufacturing activity is 

greatest in the Atlantic and Prairie Provinces. Plant locations also vary - red meat 

and fruit and vegetable processing plants tend to be located near sources of farm 

production, while fluid milk and bakery product plants tend to be clustered near large 

centers of population. Activity in the major sub-sectors occurs in every region. Meat 

processing is generally the most important activity in each region, particularly in the 

Prairie Provinces. Dairy and meat products are the major products in Quebec, with 

the share of total shipments of dairy products being significantly higher than in most 

other regions. 

The food processing sector is fragmented, diverse, and is dominated by a relatively 

small number of large and very large firms. The food processing sector is composed 

of relatively large Canadian-owned multinational enterprises (MNEs), foreign-owned 

MNEs, large and small co-operatives, and small and medium-sized enterprises 

(SMEs), both Canadian and foreign-owned. Although some Canadian food sector 

firms are relatively large, in general, Canadian firms are smaller and less diversified 

than many of their major U.S. competitors. 

A number of the large and medium-sized firms are publicly listed companies, while 

the small enterprises tend to be privately owned. Most foreign-owned firms are 

privately held by their parent corporations. Co-operatives, which account for about 20 

percent of the value of shipments, play an important role in the Canadian food 


processing sector. Aside from their core role in marketing and providing inputs and 

services to farmers, co-operatives operate mostly in the dairy and poultry subsectors. 

The market share of foreign-controlled firms has increased since 1989 and now 

stands at approximately 40 percent. These firms tend to be significantly larger and 

produce higher value-added products than domestic firms. MNE-dominated subsectors 

include beef, fruits and vegetables, prepared flour mixes and breakfast 

cereals, biscuits, and confectionery. Sub-sectors dominated largely by domesticallycontrolled 

firms include pork, poultry and baked goods. 

3.2 KEY PLAYERS 

Twenty-five leading Canadian food companies, which are ranked by annual sales 

revenue, and the main product categories in which they produce packaged goods, 

are presented in the table below. 

Table 3.1: Twenty Five Leading Canadian Food Companies 

Company Name Sales 

2002 

(C$ 000s) 

Ownership Dairy Bakery Fruit & 

Veg 

Meat & 

Poultry 

McCain Foods Inc. $6,166,377 Private (CDN) X X 

Maple Leaf Foods Inc. 5,075,879 Public (CDN) X X X 

George Weston Foods Ltd. 5,011,000 Public (CDN) X X 

Suputo Inc. 3,457,412 Public (CDN) X 

Parmalat Canada Inc. 2,500,000 Private (Italy) X 

Agropur coopérative 1,835,388 Co-operative 

(CDN) 

X 

Nestlé Canada Ltd. 1,676,864 Private X X X 

(Switzerland) 

Smithfield Canada Ltd. 1,177,165 Private (U.S.) X 

Groupe Brochu 816,000 Private (CDN) X 

FPI Ltd. 740,914 Public (CDN) X 

Campbell Soup Co. Ltd. 573,000 Private (U.S.) X 

Robin Hood Multifoods Inc 565,475 Private (U.S.) X 

Lilydale Co-operative Ltd. 526,869 Co-operative 

(CDN) 

X 

Aliments Breton Canada Inc. 401,000 Private (CDN) X 

High Liner Foods Inc. 324,458 Public (CDN) X X 

Barry Callebaut Canada Inc. 298,016 Private 

(Switzerland) 

X 

Mitchell’s Gourmet Foods Inc. 284,000 Private (CDN) X 

Premium Brands Inc. 273,704 Public (CDN) X 

Gay Lea Foods Co-operative 271,596 Co-operative X 

Ltd. 

(CDN) 

Lantic Sugar Ltd. 258,950 Private (CDN) X 

Exceldor coopérative avicole 228,000 Co-operative 

(CDN) 

X 

Scotsburn Co-operative Ltd. 223,003 Co-operative 

(CDN) 

X 

Humpty Dumpty Snack Foods 

Inc. 

173,154 Public (CDN) X 

Agrinove, coopérative 167,072 Co-operative X 

Farmers Co-operative Dairy 

Ltd. 

(CDN) 

162,876 Co-operative 

(CDN) 

Source: National Post FP500-Canada’s Largest Corporations, June 2003. 

SMG/Columbia Consulting Group Page 29 

X 

Fish 

Other


Key food processing industry statistics are outlined in the table below. We note that 

NAICS (North American Industry Classification System) Industry Codes 3111-Animal 

Food Manufacturing and 31192-Coffee and Tea Manufacturing have not been 

included in the following table. NAICS Industry 31192-Coffee and Tea Manufacturing 

has been included in the beverage industry section of the report. We have also 

included shipments of fresh and frozen fruit and vegetable juices in the beverage 

section as well. 

Table 3.2: Key Food Processing Industry Statistics, 2001 

NAICS Industry Description Number of Number of Value of % of 

Code Establishments Employees Shipments Total 

311 Food Manufacturing (Totals) 4,910 

3112 Grain and Oilseed Milling 

31121 Flour Milling and Malt Manufacturing 92 

31122 Starch and Vegetable Fat and Oil Manufacturing 49 

31123 Breakfast Cereal Manufacturing 36 

Sub-total 177 

3113 Sugar and Confectionery Product Manufacturing 

31131 Sugar Manufacturing 13 

31132 Chocolate and Confectionary Mfg from Cacao Beans 28 

31133 Confectionery Mfg from Purchased Chocolate 83 

31134 Non-Chocolate Confectionery Manufacturing 65 

Sub-total 189 

3114 Fruit & Vegetable Perserving & Specialty Food Mfg 

31141 Frozen Food Manufacturing 132 

31142 Fruit and Vegetable Canning, Pickling and Drying 240 

Sub-total 372 

3115 Dairy Product Manufacturing 

31151 Dairy Product (except Frozen) Manufacturing 364 

31152 Ice Cream and Frozen Dessert Manufacturing 70 

Sub-total 434 

3116 Meat Product Manufacturing 769 

3117 Seafood Product Preparation and Packaging 700 

3118 Bakeries and Tortilla Manufacturing 

31181 Bread and Bakery Product Manufacturing 1,547 

31182 Cookie, Cracker and Pasta Manufacturing 232 

Sub-total 1,779 

3119 Other Food Manfacturing 

31191 Snack Food Manufacturing 85 

31193 Flavouring Syrup and Concentrate Manufacturing 20 

31194 Seasoning and Dressing Manufacturing 127 

31199 All Other Food Manufacturing 258 

Sub-total 490 


222,310 

(CDN$ 000s) 


2,980 

2,767 

2,411 

8,158 

1,503 

2,948 

3,007 

4,162 

11,620 

10,086 

14,500 

24,586 

17,374 

2,840 

20,214 

67,909 

34,839 

26,328 

9,752 

36,080 

7,310 

435 

3,042 

8,117 

18,904 

$ 55,546,743 100% 

1,536,187 

2,736,850 

1,042,170 

5,315,207 

835,023 

845,838 

637,180 

984,835 

3,302,876 

2,465,849 

3,319,488 

5,785,337 

9,234,102 

616,817 

9,850,919 

18,839,890 

4,095,601 

3,051,585 

1,767,752 

4,819,337 

1,504,226 

87,907 

765,435 

1,180,008 

3,537,576 

2.8% 

4.9% 

1.9% 

9.6% 

1.5% 

1.5% 

1.1% 

1.8% 

5.9% 

4.4% 

6.0% 

10.4% 

16.6% 

1.1% 

17.7% 

33.9% 

7.4% 

5.5% 

3.2% 

8.7% 

2.7% 

0.2% 

1.4% 

2.1% 

6.4%

Note: The North American Industry Classification System (NAICS) was developed jointly by the U.S., 

Canada, and Mexico to provide new comparability in statistics about business activity across North 

America. This new, uniform, industry-wide classification system has been designed as the index for 

statistical reporting of all economic activities in the U.S., Canada, and Mexico. The 1997 NAICS was a 

major revision, as it superseded the 1987 U.S. Standard Industrial Classification and the 1980 

Canadian Standard Industrial Classification that not only provided for newer industries, but also 

reorganized the categories on a production/process-oriented basis. The classification is revised on a 

five-year revision cycle in order to ensure that the classification continues to reflect the rapidly 

changing structure of the economy. NAICS 2002 supersedes NAICS 1997, and it has a five-digit 

classification structure, with a sixth-digit for national industries. With some important exceptions, it 

provides a set of standard 5-digit industries that describe the industrial structure and composition of 

the Canadian, United States and Mexican economies at selected levels of aggregation where 

agreement occurred among the three countries on a compatible classification. Below the agreed-upon 

level of compatibility each country has added additional detailed six-digit industries, as necessary to 

meet national needs, provided that this additional detail aggregates to the NAICS level. 

The value of the food processing sector’s shipments of goods of their own 

manufacture for the years 1997 to 2001 are outlined in the table below. 

Table 3.3: Value of Food Processing Industry Shipments, 1997-2001 

Industry Description 1997 1998 1999 2000 2001 

(C$ 000s) (C$ 000s) (C$ 000s) (C$ 000s) (C$ 000s) 

Grain and Oilseed Milling $6,073,000 $5,947,000 $5,510,000 $5,105,000 $5,315,000 

Sugar & Confectionery 

Product Manufacturing 

2,592,000 2,912,000 3,127,000 2,853,000 3,303,000 

Fruit & Vegetable Preserving 

& Specialty Food 

Manufacturing 

4,358,000 4,413,000 4,945,000 5,474,000 5,785,000 

Dairy Product Manufacturing 8,177,000 8,620,000 8,786,000 9,068,000 9,851,000 

Meat Product Manufacturing 14,335,000 14,265,000 14,761,000 17,224,000 18,840,000 

Seafood Product Preparation 

& Packaging 

2,886,000 3,018,000 3,408, 000 3,945,000 4,096,000 

Bakeries & Tortilla 

Manufacturing 

3,885,000 3,992,000 4,204,000 4,558,000 4,819,000 

Other Food Manufacturing 2,857,000 2,857,000 2,981,000 3,470,000 3,537,000 

Total Shipments $45,163,000 $46,024,000 $47,722,000 $51,697,000 $55,546,000 


Production statistics for some packaged foods produced in Canada are presented in 

the table below. We note that the most recent production data available is 1999, and 

that Statistics Canada is not scheduled to release 2000 and 2001 data until January 

2004. 


Table 3.4: Production Statistics for Some Packaged Food Products, 1997-1999 

Cereal Foods 

Cooked pasta (not stuffed) 

Product Description 1997 

(C$000s) 

Cereal foods (including breakfast foods) 

Fruit & Vegetable Processing 

Jellies 

Jams 

Soups (dehydrated) 

Vinegar 

Vegetables, frozen 

Dairy Products 

Liquid Skim Milk (1%) 

Liquid Partly Skimmed Milk (2%) 

Chocolate milk (partially skimmed) 

Half and Half Cream 

Table Cream 

Whipping Cream 

Yogurt 

Grated Cheese 

Processed Cheese 

Ice cream & ice cream novelties 

Meat Products 

Wieners or frankfurters 

Seafood Products 

Fish fillets and other fish meat (fresh, chilled or 

frozen) 

Bakery Products 

Pizza crusts 

Bread, rolls and buns 

Other Food Manufacturing 

Chewing gum & bubble gum 

Candy 

Boxed chocolates 

Chocolate seasonal novelties 

Mayonnaise and salad dressing 


$83,400 

803,300 

$4,300 

138,500 

105,200 

20,100 

107,600 

$602,900 

1,341,200 

137,300 

135,900 

52,700 

84,900 

292,000 

82,300 

540,200 

430,300 

$263,700 

$390,900 

$27,100 

1,183,000 

$132,100 

375,800 

159,000 

179,200 

215,100 

1998 

(C$000s) 

$103,600 

732,900 

$8,400 

136,700 

159,800 

28,600 

188,400 

$678,900 

1,379,700 

145,100 

146,600 

63,600 

87,400 

312,000 

99,200 

495,900 

495,000 

$282,800 

$417,600 

$13,600 

1,259,000 

$169,400 

495,500 

198,100 

230,200 

221,200 

1999 

(C$000s) 

$145,200 

734,400 

$8,500 

132,200 

199,000 

30,200 

155,900 

$646,700 

1,227,700 

146,200 

135,200 

83,500 

96,000 

326,400 

96,400 

495,400 

565,700 

$258,900 

$468,400 

$9,600 

1,236,700 

$174,900 

511,500 

172,600 

236,100 

221,800 


3.4 EXPORTS 

The total value of Canada’s processed food exports for the years 1998 to 2002 are 

set out in the following table. 

Table 3.5: Total Exports of the Food Industry, 1998- 2002 


(C$ 000s) (C$ 000s) (C$ 000s) (C$ 000s) (C$ 000s) 

Grain and Oilseed Milling $2,071,482 $1,687,345 $1,655,016 $1,695,995 $1,712,893 

Sugar & Confectionery 

Product Manufacturing 

933,995 924,950 1,031,168 1,311,196 1,438,413 

Fruit & Vegetable 

Preserving & Specialty 

Food Manufacturing 

1,057,501 1,276,846 1,364,593 1,523,768 1,680,915 

Dairy Product 

Manufacturing. 

472,690 421,684 372,352 533,724 484,600 

Meat Product 

Manufacturing 

3,118,162 3,643,139 4,374,425 5,268,896 5,233,298 

Seafood Product 

Preparation & Packaging 

2,319,530 2,756,805 2,961,218 3,023,904 3,433,666 

Bakeries & Tortilla 

Manufacturing 

761,473 874,338 974,247 1,051,558 1,149,828 

Other Food Manufacturing 539,651 645,619 734,310 866,410 1,032,747 

Total Exports $11,274,484 $12,230,726 $13,467,329 $15,275,451 $16,166,360 


Canada’s top ten processed food export destinations for 2002 are outlined in the 

table below. 

Table 3.6: Top Ten Processed Food Export Destinations, 2002 

Destination 2002 

% of 

(C$000s) Total 

World (All Countries) $16,166,360 100.0% 

United States 12,032,535 74.4% 

Japan 1,559,348 9.6% 

Mexico 339,753 2.1% 

China 329,219 2.0% 

KOREA, SOUTH 

230,230 1.4% 

Taiwan (Taipei) 178,989 1.1% 

United Kingdom 148,113 0.9% 

Denmark 111,184 0.7% 

France 108,705 0.7% 

Australia 98,195 0.6% 

All other countries 1,030,089 6.4% 



3.5 FOOD PACKAGING REGULATIONS 

On January 1, 2003, new regulations were published in Canada that will require 

mandatory nutrition labeling on most prepackaged food. The new regulations will 

require most food labels to carry a mandatory Nutrition Facts table listing Calories 

and 13 key nutrients. Under the new regulations, producers of prepackaged foods 

will have to declare the number of Calories and the amount of fat, saturated and 

trans fats, cholesterol, sodium, carbohydrates, fiber, sugars, protein, vitamins A and 

C, calcium, and iron in a specified amount of food. Some foods and beverages are 

exempted from the new labeling requirements, for example, alcoholic beverages, 

fresh fruit and vegetables, raw single ingredient meat and poultry (except ground 

meat and poultry), and raw single ingredient fish and seafood. While it is expected 

that some manufacturers will start to place the Nutrition Facts tables on their labels 

almost immediately, the food industry has been given three years to comply with the 

new Regulations. Small businesses, which are companies with less than one million 

dollars in annual sales revenue, have been given five years to comply. 

The Nutrition Facts tables must appear in a standard format so it looks the same 

from one product to another, making it easier to find and use. The tables will be 

printed in a clear, readable, type, making the information easy to use. The 

regulations allow manufacturers to use a horizontal format when there is not enough 

room on a package for the standard format and a linear format may be used on 

smaller packages. For smaller packages, the Nutrition Facts table may appear on the 

inside of the label, on an insert or on a tag. For very small packages, at least a postal 

address or a toll-free number must be provided. 

The Canadian Food Inspection Agency is responsible for enforcing the new nutrition 

labeling regulations. The Regulations amending the Food and Drug Regulations 

pertaining to nutrition labeling, nutrient content claims and health claims can be found 

in Acrobat (pdf) file format at http://www.hc-sc.gc.ca/hpfb-dgpsa/onpp-bppn/labellingetiquetage/regulations_e.html. 

A Compendium of Templates for "Nutrition Facts" 

Tables is available in Acrobat (pdf) file format at http://www.hc-sc.gc.ca/hpfbdgpsa/onpp-bppn/labelling-etiquetage/nutrition_fact_labels_cp_e.html. 

The 

Compendium is for illustrative purposes only, and it includes 270 templates that 

correspond to the full size graphic illustrations of the various versions of the Nutrition 

Facts table permitted by the Food and Drug Regulations on Nutrition Labeling. These 

templates will assist label designers and members of the food and packaging 

industries in complying with the format specifications of the Regulations. 


3.6 COMPANY PROFILES 

ADAMS CANADA 

1. Company Description: 

Industry: Food Products 

Sub Industry: Chewing gum, breath mints, 

cough drops 

Location: Scarborough, Ontario 

Size (sales): Not Available 

Purchasing Potential: Not provided 

Specific Business 

Opportunities: 

Bundler 

Adams Canada is a division of Cadbury Trebor Allan (until March 2003 it was part of 

the Warner-Lambert Division of Pfizer Canada) that employs approximately 400 in its 

Canadian operations. At its 210,000 square foot plant in Scarborough Ontario 

Adams produces and packages candy-coated chewing gums, breath mints and 

cough drops under the Certs, Clorets, Dentyne, Trident and Halls brand names. 

(traditional slab-type gums are packaged in the United States and BODYSmarts 

confectionery products are packaged by a third party). 

2. Main Products Produced and How They Are Packed: 

Product Packaging 

Dentyne Ice, Trident, Trident Ice Blister Pack 

Certs breath mints Small boxes 

Halls cough drops Twist wrap in a bag with a ziplock /and stick 

3. Installed Packaging Machinery: 

Current Machinery Used 

by Category 

Brand No. of 

Units 

Country of Origin Average 

Age 

(no. of 

years) 

Form, fill & seal horizontal bagger Laudenberg 4 Germany Less than 2 

Twist wrap machines – EK3 Thegarten – E 8 Germany 1 

Single wrap candy machines (for Acma GD – 11 Italy 15 to 20 

stick) 

5000 

Case sealers Little David & 

Signoge 

12 USA 1 to 7 

Tray Fillers/Case Packers Noreg 3 Norway 1 

Tray fillers Marchesini 

FR500 

3 Italy 4 to 5 

Case Packers Marchesini 

FR500 

3 Italy 4 to 5 

Overwrappers Marchesini T20 3 Italy 5 

Overwrappers BFB 2 Italy 1- to 15 

Blister machines Marchesini 3 Italy 4 to 5 

Triangle box fillers Triangle 1 USA 8 to 10 


Cello wrapper G D Acma 1 Italy 5 

Tray filler Marchesini 1 Italy 5 

Flow wrapper horizontal form, fill Fuji-Foremost 2 Japan/USA 8 to 10 

& seal 

1 USA 

12 

Cartoner Marchesini 3 Italy 4 to 5 

Display filler TF1 Acma GD 2 Italy 5 to 7 

Blister machine IWK 1 German 12 

Video jet printer Domino 9 Britain/USA 1 to 3 

Check weighers Toledo 

3 USA 2 to 4 years 

Isheda 

4 Japan 

Labeling machines Avery 2 USA 6 to 8 

Inserters Stream Feeder 2 USA 6 to 8 

Shrink fill & heat seal Urban 

2 Germany 10 

PMI Bundler 1 USA 

7 

4. Future Packaging Machinery Plans (next 3 years): 

Expect to add a bundler. 

5. Key Factors in Purchase Decisions: 

Factor Ranking 

(1 = Most 

Important) 

Quality/Reliability/Durability 1 

Price 2 

Service & Technical Support – In General 3 

Speed of Delivery/Delivery Wait Period 4 

Availability of Repair Parts 5 

6. Attitudes Toward Suppliers: 

Adams has generally found German and Italian packing machinery to offer the best 

quality and the fastest throughput. They have experienced some reliability, 

breakdown problems with French machinery. 

a. Perception of Machinery by Country: 

Country Overall Quality Up-to-date 

Technology 

Service 

Germany Excellent Excellent Excellent Good 

Netherlands Good Good 

Italy Good Excellent Good Excellent 

Switzerland Good 

United States Average Average 


. Perception of Pricing by Country: 

Country Price 

France Somewhat Expensive 

Germany Very Expensive 

Netherlands Average 

Italy Somewhat Expensive 

Japan Average 

Switzerland Very Expensive 

United States Average 

7. Purchasing Policies and Financial Arrangements: 

Adams Canada does not generally look for turnkey solutions but purchases individual 

pieces of machinery because they have the required in-house expertise. Purchases 

are generally made through distributors. 

Purchasing decisions are made collaboratively with local manufacturing engineering 

with input/recommendations by operations as well as Global Engineering group. All 

purchases above $100,000 require corporate approval and in plant approval is 

limited to $25,000. Financing arrangements are not important in the purchase 

decision because uses its own funds. 

8. Purchasing Issues: 

Sometimes it is necessary to have packing machinery custom made because 

available alternatives are not suitable or require too much modification and 

customization. 

9. Trade Show Attendance/Trade Publication Information: 

Representatives of Adams Canada normally attend PACK EXPO and the Frankfurt 

show in Germany. Also, they generally attend PACex in Toronto every two years. 

A wide range of trade journals and magazines are read regularly. 

10. Specific Interests: 

None specified other than the possible addition of a bundler in the next few years. 

11. Contact Information: 

Company Name: Adams Canada Division of Cadbury Trebor Allan Inc. 

Contact: Andre Ezerzer 

Position: Manufacturing Engineer 

Address: 40 Bertrand Avenue 

Scarborough, Ontario 

M1L 2P6 

Telephone: 416-288-2523 

Fax: 416-701-3023 

E-mail: Andre.ezerzer@pfizer.com 


ASSOCIATED BRANDS 



Sub Industry: Dry-blend food products 

Location: Toronto, Ontario 

Size (sales): $160 million (estimated; C$) 

Purchasing Potential: 



Associated Brands is a manufacturer of private label dry-blend food products and 

household products. The company commenced operations in 1985 and today 

operates five manufacturing plants that produce a diverse range of private label and 

own brand food products and household products. 

The Company operates three dry powder blending and packaging manufacturing 

plants that employ 350 plant personnel (two in Toronto and one in New York State). 

Associated Brands produces more than 1,500 separate food product SKUs and its 

products include flavoured drink mixes, iced tea mixes, hot chocolate and cappuccino 

drink mixes, desert mixes, coating mixes, soup mixes, pasta and rice side dishes 

gelatin, party snacks and artificial sweeteners. Private label customers include 

President’s Choice, No Name, Walmart, Gatorade, Sobeys, Neilson, Equality and 

Masters Choice. 


The products blended and packaged are hot chocolate, flavor crystals, dry soups, 

snack mixes, jelly powders, puddings and coffee. The Company has three types of 

packaging lines: 

Line Products 

Canning lines Hot chocolate and flavor crystals in cans and 

jars 

Bartelt IM Packagers with form and fill The whole range of products 

pouches (some have automatic cartoners 

and some have manned pick-off stations) 

VFFS M/Cs Food service products 


The Company’s packaging lines include: 

401 Canning Line – Fully Automated 

- Depalletizing – Cleaning – Filling – Seaming – Inkjet coding – Labeling – 

Overcapping – Collating – Case packaging – On-line product identification coding 

– conveying to central printing station – TO Palletizing. 

#10 Canning Line – Semi-Automated 

- Hand loading onto magnetic conveyor – Filling – Seaming – Ink jet coding – 

Labeling – Hand pick-off. 


Bartelt Packaging Lines 

- 25 lines of intermittent motion packagers manufactured by Klockner Bartelt. 

Some have automatic cartoners (Bartelt) and some have hand pick-off and some 

have Tissma or Clybourne semi-automatic cartoners. All these lines form 

pouches from a roll of web mounted on machine then filled, sealed and check 

weighed for ‘not less than’ indicated weight. 


Brand No. of Country of Origin Average 

By Category 

Units 

Age 

Horizontal Form Fill Bartelt 25 United States 20 

Vertical Form Fill Seal Hayssen 1 United States 6 

Vertical Form Fill Seal Rovema 1 United States 25 

Labeler Languth Germany 10 

Labeler Mateer United States 5 

Labeler Axon United States 1 

Fillers (Auger) Bartelt 16 United States 20 

Fillers (Auger) AFI 2 United States 10 

Fillers (Auger) Mateer 2 United States 12 

Ink Jet Systems Video jet 4 United States 6 

Ink Jet Systems Fox Jet 2 United States 2 

Cartoners – Automatic Bartelt 8 United States 20 

Cartoners – Semi-Automatic Tissma 1 United States 12 

Cartoners – Semi-Automatic Clybourne 1 United States 12 

Cartoners – Semi-Automatic Langen 3 Canada 8 

Continuous Motion Packager Cloud 1 United States 10 

Automatic Batching System Reimelt 20 Germany 20 

Upgrade Controls Reimelt 2 United States 2 

Check Weighers Hi-Speed 20 United States 10 

Check Weighers Loma 8 Britain 12 


This is constantly changing because the business is so dynamic. 



(1 = Most 

Important) 


Potential Operating Cost Savings/Added Value 1 


Service & Technical Support – In Canada 1 

Up-to-date Technology 1 

Previous Experience with the Supplier/Brand 1 

Equipment Characteristics & Features (e.g. 1 

flexibility, speed, capacity, unique features, etc.) 

Operating Reliability/Accuracy 1 


Price 2 

Costs of Materials and Maintenance 2 


Brand/Supplier Reputation 3 

Experience in Our Industry/Industry Sector 3 



Associated Brands prefers to purchase equipment manufactured in North America. 

US equipment, in particular the Bartelt line, has proven to be extremely reliable and 

versatile for The Company’s line of business. Spare parts are readily available and, 

in many cases, available from more than one source. European equipment is 

generally expensive and spare parts are not easily obtained and Associated wants to 

avoid high inventory levels and space requirements for spare parts. 


Country Overall Opinion Quality Up-to-date 

Technology 

Service 

Britain Good Good Average Poor 

Canada Good Average Average Good 

Germany Excellent Excellent Excellent Average 

Italy Good Good Average Poor 

United States Excellent Good Good Excellent 

b. Perception of Pricing by Country: 

Country Price 

Britain Very Expensive 

Canada Average Prices 


Italy Very Expensive 

United States Average Prices 


Associated complies with OEM quoted conditions of sale, usually 40% with purchase 

order, 40% on delivery and 20% in 30 days. The Company does not use vendor 

financing. 

Associated has in the past always purchased individual equipment and engineered 

the line in-house. 


Because of the demands of the private label industry, flexibility is the key when 

buying equipment. The Company frequently customizes machinery to meet its own 

demands. Large packaging machinery manufacturers charge too large a fee for 

adapting their equipment from the normal configuration. 


9. Trade Show Attendance: 

Representatives of Associated Brands attend PACK EXPO annually. There is some 

interest in the Interpack show. 

Magazines read include Design Engineering, Packaging Digest, PEM 


Associated is interested in servo-drive technology for feed applications for repeat 

consistent accuracy, primarily for dry powder products ranging from free flowing to 

non-free flowing. 


Company Name: Associated Brands LP 

Contact: Alex Christie 

Position: Plant Engineer 

Address: 335 Judson Street 

Toronto, Ontario 

M8Z 1B2 

Telephone: 416-503-7029 

Fax: 416-259-4317 


CADBURY TREBOR ALLAN INC. 


Sub Industry: Confectionery 

Location: Toronto 

Size (sales): Approximately $C330 million 

Purchasing Potential: 2004 - $5 million 

2005 - $6 million 




2006 - $7million 

Palletizing and high speed cartoning 

Cadbury Trebor Allan Inc., a subsidiary of Cadbury Schweppes PLC, is one of 

Canada's leading manufacturers of chocolate and candy confectionery products. 

With close to 2500 employees across Canada, the company produces and markets 

such brands as Caramilk, Crispy Crunch, Wunderbar, Fuzzy Peach, Cherry Blasters, 

Maynards Wine Gums, Sour Patch Kids, and Cadbury and Allan's line of Easter 

Chocolates. The Cadbury Gladstone plant is the largest of 5 manufacturing sites in 

Canada, with annual gross sales of approx. $330 million and 800+ employees at this 

site. 



Confectionery Products range from 43 gm. Individual consumer bags to tanker 

shipments of chocolate. 

Retail sales include – regular count lines (43 gm bags to 60 gm bars), 

Family bars (100 gm size range), Sharing sizes (145 gm boxes, 185 

and 200 gm bars) and a Halloween range of products (12 ct to 125 ct 

bags of individually wrapped 2 bite bars). 

Industrial Sales – Cased product (5 kg to 25 kg.) to bulk shipments up 

to 24,000 kg. tankers 



By Category 

Cartoning and multipacking machinery and 

associated leaflet/coupon placing machinery; 

Case and tray forming, packing, unpacking, closing 

and sealing machinery; 

Coding, dating, printing, marking, stamping and 

imprinting machinery; 

Conveying, feeding, orienting, placing and related 

machinery; 

Form/fill/seal and wrapping machinery – horizontal; 

Brand 

NJM, Autowrapper, 

Goodman 

SIG 

Markem, Imaje 

Norwood 

Many different types. Rapistan, 

Interlock, Mathews, Spantec, local 

manufacturers 

Tevopharm, SIG, Rose Forgrove, 

Autowrapper, Cavanna, Fuji 


Form/fill/seal machinery – vertical; 

Inspecting, detecting, and checkweighting machinery; 

Shrink film and heat sealing machinery; API 

Note: The above information is for Cadbury Gladstone plant. 


Hayssen, Triangle 

Loma, Goering Kerr, Sortex 

Gladstone plant plans to obtain palletizing and high speed cartoning within 3 years. 



(1 = Most 

Important) 




Equipment Characteristics & Features (e.g. 

2 




Price 3 








Credit Terms 4 


Country Attitude Reasons for the Attitude About the Country 

Manufacturers 

Britain Positive and Some good some bad. Quite expensive given 

Negative currency 

Canada Positive and Some good some bad. Some not engineered 

Negative thoroughly enough for 7 x 24 production. 

Germany Positive Excellent workmanship and engineering, sometimes 

expensive 

Italy Positive and Good engineering. Summer support poor. Often long 

Negative lead times for purchase or spare parts. 

Netherlands Positive Good workmanship, good engineering 

Switzerland Negative Excellent workmanship and engineering, sometimes 

expensive 

United Positive and Tends to be not as robust as Swiss and German. 

States Negative Often innovative. More flexible to modify design. 




Technology 

Service 

Britain Average Average Average Poor 

Canada Average Average Average Average 

Germany Good Good Good Average 

Italy Good Good Average Average 

Japan Average Average Average Average 

Netherlands Good Good Good Average 

Switzerland Excellent Excellent Excellent Good 

United States Average Average Good Good 


Country Price 

Britain Somewhat Expensive 

Canada Good Prices 

Germany Somewhat Expensive 

Italy Average 

Japan Average 


Switzerland Somewhat Expensive 

United States Good Prices 


Legal department fine-tunes any contracts required. Engineering makes purchase 

decisions. Terms – 30% down payment /30% progress payment /30% after 

inspection prior to shipment /10% after installation and meeting of performance 

guarantee. Occasional large contracts may have different terms, i.e. smaller down 

payment + more progress payments. Cadbury finds turnkey solutions are nice to 

have; however purchases are often driven by costs and result in the acquisition of 

individual pieces. 


Meeting corporate, financial hurdle rates. 


Trade Shows: PMMI, PACK EXPO, Interpack 



Company Name: Cadbury Trebor Allan Inc., 

Gladstone Avenue Manufacturing Site 

Contact: Bob Williams 

Position: Manager – Engineering and Technical Services 

Address: 277 Gladstone Avenue 

Toronto, Ont. 

M6J 3L9 

Telephone: 416-530-4055 (extension 3205) 

Fax: 416-530-1437 

Email: bob.williams@ctai.ca 


CARRIERE FOODS INC. 


Sub Industry: Canned and frozen vegetables 

Location: Saint-Denis-Sur-Richelieu, Quebec 

Size (sales): $C260 million (2001) 

Purchasing Potential: Less than $250,000 for the next 




three years 

Nothing specific 

Carriere Foods is the largest processor of canned and frozen vegetables in Canada. 

The company operates seven plants (four which do canning and three that process 

frozen foods), which employ approximately 2,500 people in peak periods and 

process, more than 200,000 tons of vegetables annually. All Carriere Foods plants 

operate following strict HACCP guidelines. 

Carriere specializes in processing products under private labels for major distributors 

and supermarket chains in Canada, the United States, Caribbean and Europe. The 

company also sells products under its own brand names and in both the retail and 

food service industries. Although primarily a vegetable processor, the company as 

well produces and markets soups, sauces, baked beans, dry beans and other 

vegetable products. Food in Canada magazine reported that Carriere’s 2001 sales 

were $C260 million. 



Vegetables Cans 

Frozen Vegetables Bags IQF, vertical form fill and seal 


The following equipment list covers Carriere’s Bedford plant. 


Brand Country of Origin Average 

By Category 

Age 

Vertical Filling Machines Sandiacre 

U.K. 

5 

Hayssen 

United States 9 

Horizontal Casepackers Blueprint 

Automation 

Netherlands 5 

Weigher Yamato 

Ishida 

Japan 6 

Palletizer Goldco United States 4 

Case erectors Durable United States 4 

Check Weigher (for cases) Loma United States 4 

Labeling Equipment (P& Apply) Techno Pack Canada 4 

Stretch Wrappers Orion Canada 6 

Metal Detector Gorring Kerr U.K. 5 



Within the next 3 years, the Carriere Foods plant in Strathroy will be looking to design 

a new packaging facility. 



(1 = Most 

Important) 





2 



Price 3 











Carriere Foods lists the following as positive experiences: 

Japan and Netherlands because they both put a lot of energy in service and 

accuracy. 

No countries were listed as negative: 

Never had any problem regarding any country: some companies are good and some 

are not regardless of what country they are from. 



Technology 

Service 

Britain Excellent Excellent Excellent Good 


Japan Excellent Excellent Excellent Excellent 

Netherlands Excellent Excellent Excellent Excellent 

United States Good Good Excellent Average 



Country Price 

Britain Good Prices 

Canada Excellent Prices 



Japan Somewhat Expensive 




Carriere Foods normally buys from a local distributor rather than the manufacturer as 

it does not typically buy a large number of packaging lines each year. Carriere has 

always purchased individual pieces of equipment rather than turnkey situations. The 

exception is weigher/bagger, which are purchased together to save the import taxes 

on Japanese equipment. Payment terms are usually 40% with the order, 40% prior to 

shipment and 20% after specification achievement. 


The only issue reported by Carriere Foods was the low volume of machinery sales in 

the Province of Quebec. 


Trade Shows: Carriere attends the PMMI PACK EXPO trade show every two years 

to keep in touch with the technologies and trends. 

Publications: Packaging World and a range of others are utilized. 


Company Name: Carriere Foods Inc. 

Contact: Normand Marquis 

Position: Maintenance and Technical Services Manager 

Address: 16 Champagnat Street 

Bedford, Quebec 

J0J 1A0 

Telephone: 514) 248-4336 (Extension 254) 

Fax: (514) 248-3175 

Email: nomarquis@carrierefoods.com 


CONAGRA FOODS INC. 


Sub Industry: Packaged and 

Refrigerated Foods 

Location: Niagara Falls, Ontario 

Size (sales): Not available 





New packaging 

technologies 

ConAgra operations in Canada are part of ConAgra Foods, Inc. of Omaha, 

Nebraska. ConAgra is North America’s largest foodservice manufacturer and the 

second-largest retail food supplier. The company operates three main segments: 

Packaged Foods, refrigerated Foods, and Agricultural Products. 



Frozen foods - Shrink film and heat sealing machinery; 

- Skin and blister packaging machinery. 

Packaged foods - Shrink film and heat sealing machinery; 

- Skin and blister packaging machinery. 

Dry foods - Boxes and bags 




By Category 

Units 

Age 

Depalletizing Crown 

Simplimatic 

3 United States 20 

Filling machinery – dry products Elmar 


FMC 


Solbern 


Filling machinery – liquid products Elmar 


Solbern 


PRC 


Capping, overcapping, lidding, Angelus 


sealing machinery 

Continental 2 United States 30 

Inspecting, detecting, and Mettler Toledo 4 United States 5 

checkweighting machinery Loma 


Coding, dating, printing, marking, Videojet 


stamping and imprinting machinery Little David 6 United States 1 

Labeling machinery Krones 

1 Germany 10 

Mateer Burt 2 United States 20 

Case and tray forming, packing, Arpac 


unpacking, closing and sealing Standard Knapp 2 United States 25 


machinery 

Shrink film and heat sealing 

machinery 

Palletizing, depalletizing, and pallet 

unitizing machinery 

Arpac 

Standard Knapp 

Whallon 

Alvey 


No information provided. 



(1 = Most 

Important) 





2 






Price 4 









2 

1 

3 

2 

United States 

United States 

United States 

United States 

ConAgra listed the following: 

Positive: U.S., Canada, UK and Western Europe, Japan - perceived quality. 

Negative: Eastern Europe, China, Mexico - perceived lack of quality. 



Technology 

Service 

Canada Good Good Good Average 

Germany Good Excellent Excellent Average 

United States Good Good Good Good 

10 

25 

3 

10


Country Price 






Purchases are either direct or through Canadian distributors. The Plant Engineering 

Manager receives quotes, specifies a winning bid, requests funds, issues the PO, 

receives the goods, installs, and signs off on the invoice. ConAgra never leases 

except through packaging material suppliers who include the lease price in the cost 

of raw materials. Terms are 30% down, 20% upon approval drawings, 30% upon 

receipt, and 20% net 30 days or when all issues are resolved. ConAgra looks for 

turnkey solutions for new equipment and individual pieces for used equipment. 


It is too expensive to be paid for at Canadian production volumes. 


PACK EXPO and PacEX. 


New packaging technologies, both in development and just going into production. 


Company Name: ConAgra Foods Inc. 

Contact: Brad Wells 

Position: Plant Engineering Manager 

Address: 4825 Pettite Avenue 

Niagara Falls, Ontario 

L2E 7E6 

Telephone: 905-356-2661 

Fax: 905-356-2633 

Email: bwells@cagpc.com 


DARE FOODS LIMITED 


Sub Industry: Cookies, crackers, fine breads, and 

soft and hard candies 

Location: Kitchener, Ontario 


Purchasing Potential: Not provided. Plans not yet certain 

but possibly a cartoner, a Palletizer 

(robotic), a form fill machine & a 




case packer. 

Cartoners, vertical form fill, 

Palletizers, horizontal wrappings, 

automatic tray loading system 

Dare Foods is a Canadian manufacturer of cookies, crackers, fine breads, and soft 

and hard candies. Dare has baking facilities in Kitchener, Ontario, Denver, Colorado, 

and Spartanburg, South Carolina as well three locations in Quebec: Montreal, St. 

Lambert, and St. Martine, QC. Dare candies are made in new plants in Toronto and 

Milton, Ontario. Dare has 1,800 employees across Canada and the United States. 

Dare products are sold across Canada and the United States, and select products 

are also sold in more than 25 countries around the world. Dare's strategy has always 

stressed stable growth through internal financing and the 110 year old company has, 

as a result, remained one of the few Canadian owned, independent food 

manufacturers in all of North America. 



Candies Individually wrapped, then packaged into 

bags, boxes and cartons 

Crackers Boxes and cartons 

Cookies Boxes, bags and cartons 



By Category 

Vertical Filling Machines 

Brand No. of 

Units 

Triangle 2 

Country of Average 

Origin Age 

USA 15 

Tin Tie Bag machine SIG 2 Switzerland 10 & 1 

Cartoning Langen 6 Canada 5-20 

Case packer Edson 3 Canada 5-10 

Goodman 1 USA 1 

Case forming/Closing Pearson 2 USA 1 

Slug Loaders SIG 1 Switzerland 8 

FMS 1 USA 4 

Slug Wrappers SIG 3 Switzerland 8-15 


FMS 1 USA 4 

Doboy 1 USA 8 

Tray Forming API 1 USA 10 

Code dating Markem 8 USA 1-15 

Label Inserters Labelaire 4 USA 8 

Checkweighers Loma 4 England 2-4 

Ceintex 2 8 

Palletizers Columbia 2 USA/Japan 2 

Flow wrappers FMC 4 USA 15 

Accumulator Rotzinger 1 Switzerland 1 


Dare Foods plans to purchase at least 2 new cartoners, an automatic tray loading 

system, at least one new Palletizer and perhaps a new flow-wrapping machine within 

the next 3 years. 



(1 = Most 

Important) 





Price 5 









Technology 

Service 

Canada Excellent Excellent Excellent Good 

Switzerland Excellent Excellent Good Average 



Country Price 

Britain Average 



United States Somewhat Expensive 



Dare pays cash for all purchases. For equipment, the purchasing and decision making is left 

to Engineering. We generally deal through agents but have dealt direct as well. Our terms 

are 30% on order, 30% on significant completion and (after engineering buy-off on inspection 

and performance approval usually done at the vendors premise) 30% on delivery and 10% 

after installation and satisfactory performance no more than 60 days after start-up. Our in 

factory inspection prior to shipment is quite strict; hence our confidence is high regarding inplant 

performance. It is not unusual to go back 2-3 times to a vendor before we will take 

delivery. When sourcing packaging machinery, Dare looks at both turnkey situations and 

individual pieces of equipment to insure optimal equipment performance based on our 

experience 


Keeping on top of good equipment suppliers and products available, as well as testimonials 

for the equipment that doesn’t appear biased. 


Trade Shows: PACK EXPO in Chicago, Interpack in Düsseldorf, Toronto packaging 

show 

Publications: Receives and reads several packaging digests – no names provided 


Cartoning, vertical form fill, palletizing, horizontal wrapping 


Company Name: Dare Foods Limited 

Contact: Grant MacIver 

Position: Engineering Manager 

Address: 2481 Kingsway Drive 

Kitchener, Ontario 

N2G 4G4 

Telephone: 519-893-3233 (Extension 3269) 

Fax: 519-893-0207 

Email: gmaciver@darefoods.com 


E. D. SMITH & SONS 


Sub Industry: Sauces, jams, condiments 

Location: Winona, Ontario 






Palletizer, sleever and 

shrink tunnel. 

E.D. Smith & Sons is a privately owned, Canadian company that has been in 

business since 1882 and has been owned by Imperial Capital since January 2002. 

All processing, packaging, sales, R&D, etc, is operated from its single, original 

location in Winona, Ontario. The company employs 385 staff and has been selected 

as one of Canada's 50 Best Managed Private Companies. E.D. Smith produces a 

variety of quality items including jams, jellies, syrups, pie fillings, toppings, ketchup, 

pasta and barbecue sauces, salsas and a variety of foodservice products and private 

label brands. Food in Canada magazine estimated E. D. Smith’s 2001 sales to be 

$C145 million. 



Jam, jelly, ketchup, pasta sauce, 

pizza sauces 



By Category 

Vertical Form Fill and Seal 

Machines 

Ketchup in plastic and glass bottles. Jam, jellies, 

spreads in glass jars with metal caps. Pasta sauces in 

plastic and glass wit metal and plastic caps. Flexible 

pouches for pizza sauce, pasta sauce, donut fillings, 

and specialty sauces. 100oz cans for ketchup. 

Brand No. of 

Units 

Cryovac 1 


Age 


Bag In Box Filler LiquiBox 1 United States 7 

Plastic and Glass Bottle Fillers U.S. Bottlers 

Pfaudler 

Elmar 

Labelers Krones 

Jagenberg 

Langguth 


2 

1 

2 

2 

2 

3 

United States 

United States 

United States 

Germany 

Germany 

Germany 

Packers Hartness 4 United States 6 

Bottle Cleaners Bevco 4 Canada 4 

Bottle Unscrambler Posimat 1 Spain 2 

Palletizers Currie 

Mathews 

2 

2 

United States 

Canada 

5 

13 

11 

6 

12 

12 

12 

12

Cappers Resina 

U.S. Bottlers 

Anchor/CC&S 

Bottle Orienter New England 

Machinery 

Inspecting Anchor 

Tap Tone 

Sealers Lapel 

Enercon 


Future plans include Palletizer, sleever and shrink tunnel. 



(1 = Most 

Important) 


Price 1 















1 

1 

3 

United States 

United States 

United States 

12 

1 

10 


1 

1 

1 

3 

United States 

United States 

United States 

United States 


Technology 

Service 

Canada Good Good Good Average 

Germany Good Excellent Excellent Good 

Italy Average Good 

United States Good Good Excellent Good 


Country Price 





10 

2 

1 

10


E.D. Smith & Sons buys direct when possible, but finds that this is sometimes difficult 

in Canada. Purchasing decisions are usually made by the project team. Evaluation of 

several pieces of equipment occurs in order to make educated decisions. Financing 

is provided internally, either outright direct or through capital lease program arranged 

internally. Purchase of individual pieces are the general procedure for purchases. 

Turnkey solutions are generally not used by this plant. 


E.D. Smith & Sons finds that currency exchange is frequently an issue in packaging 

machinery purchasing. The company has found that the exchange rate impact 

regularly makes actual prices higher than expected. The need to undertake complete 

analysis means travelling and seeing customers of vendors, which can get expensive 

and significantly add to the cost. 


Trade Shows: PackEx, Toronto Packaging Show 

Publications: Packaging World, Packaging Digest, Food Engineering 


Company Name: E. D Smith & Sons 

Contact: Mark Brajer 

Position: Engineering Manager 

Address: 944 Highway 8 

Winona, Ontario 

L8E 5S3 

Telephone: 905-643-1211 (extension 207) 

Fax: 905-643-3328 

Email: mbrajer@edsmith.com 


ELMIRA POULTRY INC. 



Sub Industry: Poultry 

Location: Waterloo, Ontario 





Not provided 

Founded in 1985, Elmira Poultry Inc. is a privately owned business operating in 

Waterloo, Ontario. The company manufacturers further processed poultry products 

for the foodservice and retail industries. Elmira’s federally-inspected, HACCP 

approved plant specializes in deboning chicken fronts using automatic deboners and 

processing the chicken parts into value-added raw, coated and fully cooked products. 

Products range from premium boneless chicken breasts, chicken wings, cooked 

diced chicken, to breaded fillets, nuggets, burgers, schnitzel and turkey sausage, 

flavored chicken wings, and dinners such as breaded chicken with broccoli and 

cheese, Kiev, Cordon and Swiss Melts. The company employs 140 persons. 



Chicken Breasts, Tenders Sealed bag/cartons/boxes 


Information not provided. 


Information not provided. 



(1 = Most 

Important) 









2 



(1 = Most 

Important) 









Technology 

Service 

Britain Poor Poor Poor Poor 

Canada Poor Poor Poor Poor 

France Poor Poor Poor Poor 


Italy Average Average Average Poor 

Japan Average Average Average Very Poor 

Sweden Average Average Average Poor 

Switzerland Average Average Average Poor 

United States Average Average Average Poor 


Country Price 



Japan Excellent Prices 

Sweden Somewhat Expensive 




The decision to purchase a piece of equipment is generally driven by customer 

demand or efficiency improvement opportunities and can come from the plant floor or 

Vice President. Financing normally is done through the bank. Buying direct or 

through a distributor is normally where best service can be secured. Turnkey solution 

or individual equipment would be purchased depending on needs/what we are doing 

– generally adding an individual piece in. 


A purchasing issue encountered is finding the right piece of equipment to meet our 

needs (i.e. Sanitation/Stand up to environment/Design). 



Trade show: Chicago; No publications listed. 


Company Name: Elmira Poultry 

Contact: Steve Greulich 

Position: Plant Superintendent 

Address: 605 Kumpf Drive 

Waterloo, Ontario 

N2V 1K8 

Telephone: 519-725-8696 

Fax: 519-725-4104 

Email: steveg@elmirapoultry.com 


FISHERIES PRODUCTS INTERNATIONAL, VALUE-ADDED GROUP 


Sub Industry: Seafood Products 

Location: Burin, Newfoundland 

Size (sales): $C474 million 

Purchasing Potential: $C1 million 




High speed packaging 

machinery 

Fisheries Products International is the largest seafood company in Canada with 

revenues in excess of $C1 billion and assets of $C745 million. Its Marketing and 

Value Added Group generated $C474 million in sales last year, of which 15% was for 

the at-home market through supermarket and club store sales channels. 

FPI’s value-added products operations in Canada are located at its plant in Burin, 

Newfoundland which operates two packaging lines. (It also operates five packaging 

lines in Massachusetts.) Its value-added products include frozen, breaded and 

battered ground fish and shellfish, stuffed fish fillets and portions, frozen seafood 

specialties and food service bulk packs. 



Frozen, breaded & battered ground fish 

and shell fish 

Stuffed fish fillets & portions 

Frozen seafood casseroles 

Frozen seafood appetizers 

Frozen glazed ground fish and shell fish 

All retail products are packaged in sealed 

poly bags in cardboard cartons 

Food service bulk packs All food service bulk packs are packed 

corrugated cartons and/or in poly bags 



Brand No. of Country of Origin 

by Category 

Units 

Automatic weigh machine Ishida 1 Japan 

Carton former Clik Loc 1 USA 

Triseal unit Triseal 1 USA 

Case erector Combi 2 USA 

Automatic bagger Bosch 1 USA 

Lynx sealer Ilapac 1 Italy 



FPI is attempting to source machinery to handle high-speed individual portion 

packaging. 


FPI considers all factors to be important in the purchase decision but the relative 

importance varies with circumstances. However, in general, the most important are 

usually: 


(1 = Most 

Important) 

Price 1 

Equipment Characteristics & Features (e.g. flexibility, 2 

speed, capacity, unique features, etc.) 

Potential Operating Cost Savings/Added Value/Pay- 3 

back 





FPI has limited experience with a range of countries that produce packaging 

machinery and has found little to differentiate those with which it has dealt. 


FPI utilizes an annual capital budgeting process in which all purchases must attain a 

target rate of return unless there are extenuating circumstances such as safety or 

ergonomics. 

The company buys both direct and through distributors. It generally buys individual 

pieces of machinery rather than turnkey situations, although this will depend upon 

circumstances. For example, the planned high-speed line will require tandem units. 


Have not been able to determine an appropriate source for high-speed individual 

portion packaging machinery. 


Attends PACK EXPO every two or three years. 


High speed individual portion packaging machinery. 



Company Name: Fisheries Products International 

Contact: Daniel Wrice 

Position: Production Manager 

Address: PO Box 339 

Burin 

Newfoundland 

A0E 1E0 

Telephone: 709-891-1290 

Fax: 709-891-2842 

E-mail: dwrice@fpil.com 


GAY LEA FOODS CO-OPERATIVE LTD. 


Sub Industry: Dairy Products 

Location: Weston, Ontario 






Bag filling ESL; Form-fill-seal; 

case former; conveyors; Palletizer 

The Gay Lea Foods Co-operative Limited was founded in Ontario in 1958 as United 

Dairy and Poultry Co-operative Limited. The co-operative manufactures and markets 

dairy products that are sold provincially and across Canada. The Co-operative’s 

product line consists of butter, milk powder, yogurt, cottage cheese, sour cream, 

dips, aerosol whips, creams, fluid milk and a variety of specialty and cheddar 

cheeses. 

The co-operative is owned by its 3,800 dairy farmer members who constitute twenty 

percent of the province’s milk producers. It employs a staff of 425. The Financial 

Post 100 survey reported that Gay Lea’s sales in 2001 amounted to $C265 million. 



Cottage Cheese Plastic containers 

Sour Cream Plastic containers 

Butter Plastic containers and wrappers 

Milk Powder Bags 

Fluid Milk Plastic containers 

Aerosol Whipping Cream Plastic aerosol cans 



By Category 

Vertical Filling Machines 

Caseformer 

Brand No. of 

Units 

Serac 

1 

Elopak 

1 

Elopak 

1 

Osgood 

1 

Modern 

1 

Packaging 4 

Benhil 

Winpack 

2 

Compacker 

Schneider 

Delkor 


Age 

France 2 





Germany 8 

USA 5 


1 

1 

3 

USA 

USA 

USA 

3 

2 

8

Bag filler Scholle 1 USA 20 

Palletizer General 

Conveyor 

1 Canada 2 

Crimper Pamasol 1 Switzerland 2 

Capper Capmatic 1 Canada 2 

Depalletizer General 

Conveyor 

1 Canada 1 


Bag filling ESL; Form-fill-seal; case former; conveyors; palletizer 



(1 = Most 

Important) 




1 









Price 2 








Technology 

Service 

Canada Excellent Excellent Good Excellent 

France Excellent Excellent Excellent Excellent 

Switzerland Excellent Excellent Excellent Excellent 

United States Average Average Average Average 



Country Price 


France Somewhat 

Expensive 

Switzerland Somewhat 

Expensive 



Gay Lea Foods prefers to buy direct. Purchase decisions are made as a consensus 

of the project team. Purchase planning utilizes a yearly budgeting process. 

Financing: 90% is purchased, with terms: 30%-60%-10%. Gay Lea prefers to 

purchase individual equipment based on needs rather than turnkey situations. 


No purchasing issues were identified. 


PACK EXPO in Chicago; Packaging World 


Company Name: Gay Lea Foods Co-Operative Ltd. 

Contact: Zbigniew Ewertowski 

Position: Director of Engineering 

Address: 100 Clayson Road 

Weston, Ontario 

M9M 2G7 

Telephone: 416-741-0261 

Fax: 416-741-4086 

Email: zewertowski@gayleafoods.com 


HEINZ CANADA 


Sub Industry: Condiments, infant foods, 

convenience meals. 







Requirements change each year but 

Heinz Canada spends between $C3 

and $C15 million annually on 

packaging machinery 

Heinz Canada is an affiliate of the H. J. Heinz Company. In Canada the company 

manufactures and markets processed food products in three categories: ketchup, 

condiments and sauces; infant foods; and convenience foods. Heinz Canada has 

1,200 employees at its manufacturing facility, headquarters and sales offices in 

Canada. 

Heinz Canada operates a single manufacturing facility in Leamington, Ontario that 

produces approximately 90% of the product line for the Canadian market as well as 

specific items for the U. S. market. The facility encompasses 2 million square feet of 

space (1.2 million square feet of production space and 0.8 million warehouse). The 

plant has between 600 and 700 full-time employees and, with the addition of 

seasonal workers, close to 1,000 employees at peak season. The plant annually 

processes 300,000 tons of raw tomatoes into paste and has annual ketchup-making 

capacity of 71 million liters. 

Agriculture and Agri-Food Canada estimated that Heinz Canada generated revenue 

of $C548 million in 2001. 



Three main categories: 

Red products: ketchup and condiments Cans, glass, plastic (gamma and PET) 

Baby food Glass jars (prepared servings); cereal-type 

boxes (Pabulum style) 

Beans and pasta sauces Cans 




by Category 

Paste Production (Fresh Pack): 

Brand Country of Origin 

Bag filler (300 gal.) FMC Italy 

Filler Pfaudler United States 

Seamer Continental 450 United States 

Labeler Burt German 

Tray and shrink-wrapper N/A United States 

Case Packer 

Baby Food – Glass: 

Burt United States 

Fillers Pfaudler United States 

Capper White Cap 20R United States 

Labeler Krones German 

Case Packer (wrap around) 

Baby Food – Pabulum-type: 

APV/Douglas United States 

Weigher Ishida Japan 

Cartoner Yeaman United States 

Overwrap Hayssen United States 

Packer 

Can Lines – Beans and Pasta: 

Sherway United States 

Fillers FMC and Faudler United States 

Seamer Continental 450 United States 

Seamer Angelus United States 

Tray and shrink-wrap 

Ketchup – Plastic: 

Kister German 

Filler Horix United States 

Capper Pneumatic Scale United States 


Packer Brenton United States 

Case Packer 

Ketchup – Glass: 

Hartness United States 

Filler Horix United States 

Capper Continental United States 


Packer 

Jugs – Ketchup, Vinegar: 


Filler Herma France 

Capper Zalkin France 


Packer 

Pouches, Flexible Packaging: 


Bag Filler Cryovac United States 

Bag Filler Volpak – Scholle United States 

Single Service Pouch Filler Winpak United States 

Case Packer We-Packit Canada 



The company requirements change year by year based on circumstances and 

market need. Heinz Canada spends between $C3 and $15 million annually on 

packaging machinery. 



(1 = Most 

Important) 



2 



Price 4 






Heinz Canada has no preference regarding country of origin of packaging machinery. 

However, it does try to stay with North American suppliers for ease of shipment. 

Certain countries and suppliers have expertise depending on equipment type and 

product to be packaged so this is the important determinant. By way of example, 

Heinz identified one supplier that was very good in producing tomato paste 

packaging machinery but was not strong in areas used for other products. The 

preference depends upon the type of products specialized in. 

Aside from these specific areas of expertise, the main packaging machinery supplier 

countries are all reasonably equivalent. Most foreign companies dealt with maintain 

North American depots. 


In regard to perception of packaging machinery pricing by country, Heinz Canada 

finds that the exchange rates are the biggest factor in machinery costs. It finds that 

what it gets for each dollar spent on machinery is equivalent after the impact of the 

exchange rate. However, this has become somewhat disrupted and a bit more 

difficult with the recent appreciation of the Canadian dollar against U.S. currency. 


The Engineering Group (which has four engineers) makes the packaging machinery 

purchase choices. 


The Engineering Group prepares an annual capital plan working with the General 

Manager and the Production Managers. An Internal Rate of Return objective with a 

two to three year payback is employed. 

The Company uses a 25x4 payment matrix with a 25% holdback. It requires a very 

specific guarantee regarding performance and has very specific terms regarding 

performance of the equipment. Heinz buys both individual pieces of equipment and 

turnkey solutions but its preference is turnkey, although this is often difficult to find 

(i.e. it is difficult to find a company that has all the skills and knowledge required). It 

is difficult to find both filling and packing expertise in the same source. 


The Company finds that things keep changing rapidly in regard to marketing needs 

so it becomes difficult to keep up with packaging capabilities. 

An issue stems from the fact that a significant portion of equipment is first-of-type 

with the result that the installations and start-up are more difficult to do. There is not 

much off the shelf available. 

The main purchasing issue relates to supplier performance. Manufacturers must 

meet their delivery promises. Heinz often has aggressive packaging plans and often 

the packaging machinery producers cannot meet them. The Company needs a 

guarantee that makes sense as dollar penalties do not work. 

In purchasing packaging machinery, it is important for Heinz to find suppliers with 

which it can work. They must understand the Company’s needs and be able to 

address them; they need to work as a partner (not as an extra or add-on). 

The most difficult part of purchasing packaging machinery is negotiating the contract. 


Heinz employees attend PACK EXPO, the Instrument Society of America, PACex 

and a range of different types of trade shows related to specific products. 


Heinz is able to obtain the information it requires and has most of the suppliers it 

needs in place. It is able to obtain the information it requires from sources used in 

the past, trade shows and the Internet. With the Internet, it is now easier to obtain 

information and track down wanted sources. 



Company Name: H. J. Heinz Company of Canada 

Contact: Ed Fittler 

Position: Manager, Engineering 

Address: Erie Street South 

P. O. Box 5700 

Leamington, Ontario 

N8H 3W8 

Telephone: 519-322-4067 

Fax: 519-322-4105 

E-mail: ed.fittler@hjheinz.com 


HUMPTY DUMPTY SNACK FOODS INC. 

Industry: Food products 

Sub Industry: Snack Foods 







Automation, automatic case 

packing, bar coding and anything 

that lightens work. 

Humpty Dumpty Snack Foods Inc. manufactures, markets and distributes potato 

chips and other salty snacks under the Humpty Dumpty brand name in eastern 

Canada and the northeastern United States. The company also supplies a full line of 

private label snack food products to leading retail chains in Canada and the United 

States. 

Humpty Dumpty operates four modern manufacturing facilities in Ontario, Quebec, 

New Brunswick and Prince Edward Island. Total manufacturing space exceeds 

580,000 square feet. The company employs 1,000 people and attained sales of 

$C173 million in 2002. 



Potato Chips 

Corn Chips 

Tortilla Chips 

Vertical form filled flexible packaging 

Light Puffed Extruded Products 

Light Bit and Hard Bit Extruded Products 

Pretzels 



Brand No. of Country of Origin 

by Category 

Units 

Vertical form, fill and seal machines Hayssens 68 

Scales Yumai Ishida 

Robag T & N 1 Australia 


The company is looking for acquisitions but the plans are confidential. 




(1 = Most 

Important) 



Price 2 




The company’s attitude depends upon specific experience with individual companies. 

They have had positive experiences with United States and Australian packaging 

machinery producers. 



Technology 

Service 

Australia Just installed but positive experience 

Japan Good Good Good Good (deals with 

an independent 

representative) 

United States Good Good Good Good (deals with 

an independent 

representative) 


Country Price 

Australia Somewhat 

Expensive 



The company tends to buy direct although, depending on circumstances, they will 

purchase in a variety of ways. 

For simple vertical form, fill and seal machines Humpty Dumpty will do its own 

installation. For more complex items they tend to look to turnkey situations and have 

the manufacturer undertake the installation. Especially for high-speed applications, 

they would like turkey installations as the integration of the weigh scale and the 

bagger is critical. 

The purchasing process is quite regionalized. The company is divided into four 

regions and the operations managers from each area participate in machinery 

decision-making for their area. 


In regard to financing, the company will use whatever options may be appropriate to 

the situation. They recently utilized a leasing option. Generally, the longer the 

payment terms, the better. 


The company finds it somewhat difficult to find automatic case packing machinery 

that is appropriate to its type of business (i.e. many SKUs and with lots of 

changeover). 


Representatives of Humpty Dumpty mainly attend baking and snack food trade 

shows although they also attend PACK EXPO and PACex. 


Interested in automation, automatic case packing, bar coding and anything that 

lightens work. 


Company Name: Humpty Dumpty Snack Foods Inc. 

Contact: Terry Henderson 

Position: Vice President Operations 

Address: 3065 King Street East 


N2A 1B1 

Telephone: 519-241-1672 

Fax: 519-893-2772 

E-mail: thenderson@humptydumpty.com 


JOHNVINCE FOODS 


Sub Industry: Nuts, dried fruits, snack foods, 

baking goods, candy, etc. 

Location: North York, Ontario 






Chocolate processing equipment 

including panning 

Johnvince Foods is a privately owned Canadian company that imports, exports, copacks 

and processes a range of nut, fruit and candy items. From its 350,000 square 

foot facility in Toronto, Ontario Johnvince utilizes state of the art processing and 

packaging machinery to transform raw material into finished goods for the bulk food 

and packaged goods trades. 

Johnvince’s products consist of more than 4,500 different items. Major product 

categories include peanuts, mixed nuts, nut and fruit mixes, coffee, candy, dried and 

glazed fruit, dried vegetables, baking supplies and snack foods. Johnvince supplies 

both private label and branded nuts, including Planters Peanuts, to wholesalers and 

retailers across Canada. In addition to domestic distribution, the company exports to 

three different continents. 

The Globe and Mail’s Report on Business magazine reported that Johnvince's total 

revenue in 2001 was $C161 million. The company employs a workforce of 700+. 



Nuts, snack foods and candy products under 

the following brands: Planters, Billy Bee, 

Mauna Loa, Beaver, Candy Kingdom, Reddi 

Snack, Country Bake 


Cans, bags, boxes – individual and bulk 

packaging 


by Category 

Premade bag hanging, opening, weighing, filling and closing/sealing machinery 

Bottling line machinery 

Capping, overcapping, lidding, sealing machinery 

Case and tray forming, packing, unpacking, closing and sealing machinery 

Coding, dating, printing, marking, stamping and imprinting machinery 

Conveying, feeding, orienting, placing and related machinery 

Filling machinery – dry products 

Form/fill/seal and wrapping machinery – horizontal 


Form/fill/seal machinery – vertical 

Inspecting, detecting, and checkweighting machinery 

Labeling machinery 

Palletizing, depalletizing, and pallet unitizing machinery 

Shrink film and heat sealing machinery 

Skin and blister packaging machinery 


Johnvince Foods plans to pursue Robotics machinery options in the future. 



(1 = Most 

Important) 

Price 1 





Very positive attitudes toward United States manufacturers; good equipment. 



Technology 

Service 

Canada Good Good Yes Good 

Germany Good Excellent Yes Poor 

United States Good Good Yes Good 


Country Price 




Johnvince Foods pays cash for purchases and buys direct from suppliers. The 

C.O.O. makes all purchase decisions. Johnvince looks for both turnkey solutions and 

acquiring individual pieces of equipment when sourcing packaging machinery, 

dependent on the size of the project. 


The main purchasing problem Johnvince Foods has experienced is a lack of aftersale 

support. There have not been any problems with sourcing. 



Johnvince Foods representatives are interested in PMMI and local trade shows, 

including Packaging World. 


Chocolate processing equipment including panning are specific interests for 

Johnvince Foods. 


Company Name: Johnvince Foods 

Contact: Tom Copping 

Position: Chief Operating Officer 

Address: 555 Steeprock Drive 


M3J 2Z6 

Telephone: 416-636-6146 

Fax: 416-398-3275 

Email: tcopping@johnvince.com 


KELLOGG CANADA INC. 



Sub Industry: Cereal, cookies and snack 

foods 

Location: Toronto (plant is located in 

London, Ontario) 





Not provided 

Kellogg Canada is a wholly owned subsidiary of the Kellogg Company of Battle 

Creek, Michigan. At its London, Ontario plant it produces more than 30 brands of 

breakfast cereal for all of Canada and exports approximately 30 percent of the plant’s 

production to its parent company in the United States. 

Approximately 750,000 cartons of cereal are produced each day in the 106,000 

square meter London plant. This facility is one of the most technologically advanced 

cereal manufacturing facilities within the Kellogg Company. It utilizes computerautomated 

machines that perform all steps of production, from mixing the grains to 

packing the boxes in cartons. A monorail system carries in-process food throughout 

the plant and equipment is washed by high-powered jet sprays using CIP technology. 

Some of Kellogg Canada’s best known brands include Corn Flakes, Special K, Raisin 

Bran, Froot Loops, Rice Krispies, Nutri-Grain, Eggo and Pop-Tarts. Kellogg cereals 

have a 45% market share in Canada. 



Cereal Boxes and bags 

Cookies Boxes and bags 

Snack foods Boxes and bags 



by Category 

No. of Units Country of Origin 

Vertical fill, form, seal 10 USA 

SIG Lines 7 Switzerland 

Pneumatic lines 2 USA 

Cartoning machines 2 

USA 

2 

Canada 

Date coders 16 USA 

Check weighers 13 USA 

Metal detectors 13 USA 


Case packers 13 Canada 

Unitizers 2 USA 


No specific plans at this time. 



(1 = Most 

Important) 



2 




Price 5 












Kellogg finds European manufacturers to be more expensive for repair parts and to 

require significant lead time but they are more innovative. On the other hand, North 

American packaging machinery suppliers were believed to be easier to source spare 

parts and require less lead time but were less innovative. 



Technology 

Service 

Canada Good Good Good Excellent 

Switzerland Average Good Good Average 

United States Good Good Good Excellent 


Country Price 

Canada Good Pricing 

Switzerland Average 




Kellogg purchases through a distributor if there is one in place, but prefers to deal 

direct with the supplier. Purchase decisions are initiated by the plant and approved at 

the corporate level. Kellogg has used both turnkey solutions and individual 

equipment purchases thus far. For future purchases, it would depend on the project 

scope. 


Kellogg considers timing to be an issue – most equipment requires significant lead 

time. Also being able to have equipment that meets specific needs. 


Attend Pack-Ex regularly 


Company Name: Kellogg Canada Inc. 

Contact: Michael Apthorp 

Position: Assemble Business Unit Manager 

Address: London Plant: P.O. Box 5517 

100 Kellogg Lane 

London, Ontario 

N6A 4P9 

Telephone: 519-452-6307 

Fax: 519-452-6340 

Email: mickey.apthorp@kellogg.com 


KRAFT CANADA INC. 


Sub Industry: Multiple categories 

Location: Don Mills, Ontario 

Size (sales): $C2.1 billion (2001) 




Constantly upgrading and 

adding to packaging machinery 

Note: Machinery information covers Kraft Mount Royal plant (largest Kraft plant in Canada 

with 1200 employees), while attitudinal/subjective responses cover all of Kraft Canada. 


Kraft Canada is a wholly owned subsidiary of Kraft Foods Inc. The company 

operates in forty food categories with 45 major brand names. Some of the leading 

brands include Kraft cheese, Philadelphia Cream Cheese, Miracle Whip salad 

dressing, Post cereals, Maxwell House coffee, Kool-Aid beverages, Jell-O desserts, 

Christie cookies, Nabisco cookies, Peak Frean cookies, Del Monte canned fruits and 

vegetables and Milk-Bone pet snacks. 

Kraft Canada operates twenty plants and bakeries in Canada and employs 7100. 

The Globe and Mail’s Report on Business magazine reported that Kraft Canada’s 

sales in Canada were $C2.1 billion in 2001. 



Pasta/Kraft Dinner Cardboard carton 

Peanut Butter Plastic jar 

Liquid Salad Dressing Plastic bottle 

Viscous Salad Dressing (e.g. mayonnaise) Glass jar 

Processed Cheese Plastic film 

Cream Cheese Foil wrap with cardboard over carton and 

plastic tub 

Jams and Jellies Glass jar 

Note: most products also packed in bulk for food service 



by Category 


Robotic Palletizers ABB Sweden 

Conventional Palletizers Priority One Canada 

Columbia 

USA 

Depalletizers Priority One Canada 

Case Packers Blue Print 

USA 

Brenton 

USA 

Douglas 

USA 


Edson 

Fallas 

Cetra 

Schneider 

Abal 

Case tapers 

Labelers Krones 

Languth 

Liquid fillers Pacific 

Pfaudler 

Viscous fillers (e.g. cream cheese) Gasti 

Waldner 

Pacific 

Own design 

Britain 

USA 

France 

USA 

Germany 

Germany 

USA 

Germany 

Germany 

Germany 

USA 

Jar cleaners McBrady USA 

Decasers ABC USA 

Pouch filler Jones USA 

Granular filler Jones USA 


Kraft Canada maintains a program of constantly upgrading and adding to its 

packaging machinery. Nothing out of the ordinary is planned for the coming year. 



(1 = Most 

Important) 




Up-to-date Technology* 1 








Respecting promised delivery dates 1 

Potential Operating Cost Savings/Added Value 1 / 2 

Price 2 

Speed of Delivery/Delivery Wait Period** 2 


Credit Terms – not important; internally finances 

0 

purchases 

* need to be able to tie into computer systems. 

**situation specific; becoming better at planning projects so delivery is important 



Kraft Canada will buy packaging machinery anywhere the best combination of 

equipment features and price can be obtained. With the possible exception of the 

Eastern block, there are no countries that it avoids as prospective suppliers. 



Technology 

Service 

Britain Good Good Good Good 

Canada Good Good Good Good 

France Good Good Good Average 


Italy Good Good Good Average 


Switzerland Good Good Good Average 


Note: Swiss and German suppliers tend to be relatively inflexible. 


The country of origin is not a factor in Kraft Canada’s view of packaging machinery 

prices. The company puts its requirements out to competitive bid and buys from 

wherever it obtains the best combination of price and required machinery attributes. 

7. Purchasing Policies and Financial Arrangements 

The decision whether to buy direct or through dealers depends on circumstances. In 

the past, it has tended to buy direct but is now flexible in this. 

Kraft buys both individual pieces of equipment and turnkey situations. Individual 

machines are turnkey. The installation is typically carried out by Kraft personnel, 

although there have been instances where the company has hired third party 

integrators. 

The company prepares annual capital purchase plans. Technical specifications are 

developed by Engineering who typically makes the purchase decision with significant 

input regarding legal and purchase process elements from Procurement. Kraft 

utilizes a competitive bidding process. 

Payments terms are usually: 30% down payment; 60% on delivery; 10% 

performance guarantee. 

8. Purchasing Issues 

One of the most glaring issues that Kraft experiences is ensuring manufacturers 

respect promised delivery dates. Late delivery has implications in regard to 

managing cash flow and in shutting down equipment. 



Representatives of Kraft Canada attend PACK EXPO and PACex Toronto. They 

also attend industry specific shows such as Food Expo. 


Company Name: Kraft Canada Inc. 

Contact: Victor Fangor 

Position: Project Engineering Manager 

Address: 8600 Devonshire Road 

Mount Royal, Quebec 

H4P 2K9 

Telephone: 514-340-2353 

Fax: 514-340-2671 

E-mail: fangor@kraft.ca 


KRISPY KERNELS INC. 


Sub Industry: Snack food nuts and peanuts 

Location: Sainte-Foy, Quebec 


Purchasing Potential: Not Provided 




Shrink film equipment, in gas 

flush and/or in upgrade of 

packaging equipment 

Aliments Krispy Kernels is a privately held company founded in 1950. From its 

100,000 square foot plant located near Quebec City, the company produces a range 

of snack foods for domestic and export markets that includes 200 products and/or 

packages. Its products include dried fruits, nuts and peanuts, microwave popcorn, 

candies, sunflower seeds, pretzels and snacks. The company has both ISO-9002 

and Kosher certifications. In 2001 Human Resources Development Canada 

estimated Krispy Kernal’s annual sales were approximately $C20 million and the 

company employed a staff of 100. 



Nuts, peanuts, sunflower seeds and candies Jars, cans and bags 




By Category 

Units 

Age 

Vertical Filling Machines Hayssen 9 United States 8 

Vertical Filling Machines Sandiacre 1 British 1 

Vertical Filling Machines Iman-Pack 1 Italian 1 

Printers Markem 10 British 2 

Volumetric filler Hauser 1 United States 21 

Scales Yamato 8 Japan 8 

Scales Ishida 2 Japan 1 

Capper Calumatic 1 Netherlands 20 

Seamer Vacuum closing 2 United States 50 

machine 

Bucket elevator Frazier & son 20 United States 15 

Belt conveyor 5 Canada 

Intralox conveyor 14 Canada 10 

Metal detector Loma 1 Canada 6 

Metal Detector Safeline 4 United States 5 

Metal Detector Metalcheck 5 United States 10 

Label printer Datamax 1 United States 5 

Label printer Prodigy 1 United States 4 

Label printer 1 United States 1 



Krispy Kernels may invest in shrink film equipment, in gas flush equipment and/or in 

upgrade of packaging equipment (either new or refurnish present ones). In the 

future, improvements will be made to the feeding method of the packaging machine. 



(1 = Most 

Important) 


Price 1 














Speed of Delivery/Delivery Wait Period Depends on 

urge of project 

Additional comments: 

Krispy Kernels believes that this type of answer does not convey typical decision-making 

factors: 

1- Depending on urgency of project, the lead time can become a factor 1 or it can be a 

10. 

2- Depending on the use (5 days a week or 1-2 days every second week) of the 

equipment, the accuracy and speed become less important. 

3- Whether a product involves mass production or a launch trial product can be an 

important factor. The size, speed and price can become a factor 1. 

4- Service: Is 24hr service on call? Krispy Kernels is a French speaking company 

located in the city of Quebec, Quebec province Canada. If the servicing company is 

located in California or Vancouver, Washington, this is less appealing than if it is 

located in Chicago with service in Montreal or Toronto. It is even better if the 

company is able to provide service in French. 

5- It is of utmost importance that replacement parts can be obtained in regular 

warehouses nearby. Krispy Kernels has a tendency to reject any machinery using 

OEM parts. We have found they cost too much in maintenance. The company 

prefers a machine that is less up-to-date over new modern equipment with dedicated 

OEM parts solely sold by the manufacturer. This can result a no-buy decision. 

6- Because Krispy Kernels is located in Canada where the population is much smaller, 

set-up and changeover are a very important part in a purchase decision. 


7- Depending on the complexity of the equipment, the expertise needed to support its 

operation and/or its maintenance, brand/supplier reputation can become less 

relevant, particularly if we have our own service people or not. 

8- Accuracy is important as long as it can be achieved within our operation. Its much 

more difficult to make bags of 48g soft gummy products weighting 12g a piece than to 

pack 200g salted peanuts. Therefore, Krispy Kernels will consider accuracy for a 

product that has the highest volume with a long future rather than products that exist 

only because of a temporary trend. 

9- Previous experience with a supplier can become very positive if the service 

experience has been positive and if the expectation is to have a great deal of similar 

equipment. This reduces the amount of spare parts required in inventory and helps 

improve the expertise of our personnel. 


The experience of Krispy Kernels with supplier countries has been as follows: 

• Positive: Italian, British, Japanese, American, Switzerland, Sweden. 

• Negative: Middle East, Russian and other similar countries. 

• European countries are considered to offer top technology concerning elimination 

of cardboard and decrease of use of plastic as a result of high costs in Europe. 

They have developed efficient, accurate, high-speed equipment that is price 

competitive to many North American products. 

• Japan has proven the quality of their products over the years, although they are 

generally expensive. 



Technology 

Service 

Britain Excellent Excellent Excellent Good/Average 

Canada Excellent Excellent Excellent Good 

France Excellent Excellent Excellent ? 


Italy Excellent Excellent Excellent Average 

Japan Excellent Excellent Excellent Average 

Switzerland Excellent Excellent 

United States Good Excellent Good Good 


Country Price 

Britain Average 


France Very Expensive 


Italy Average 

Japan Very Expensive 





The purchase decision is initiated by either a need or project saving. A demand for 

funding (DAF) is then presented to the General Manager who approves or rejects the 

purchase. If approved, the DAF goes to the owner who in turn approves or rejects 

the project. Once approved, it is Engineering’s role to take all required actions to 

meet the total cost of the projects, including purchase of equipment, transportation, 

installation and start-up tests. A follow-up cost is maintained throughout the entire 

project. We buy either directly or through a distributor depending on the equipment. 

We do not have the purchasing power of the very large companies to initiate 

purchases for 10 or 20 plants. 

Krispy Kernels rarely looks for turnkey operations. The company believes it has 

enough expertise to succeed in installing and starting-up equipment on its own with 

the supplier. This is far less expensive and costly. 


Getting an opportunity to see the equipment in normal operation. 


Trade Shows: Pack Expo and PACex. 


Krispy Kernels is interested in gas flush equipment for jar and cans as well as cap 

sealers and seamers. 


Company Name: Ailments Krispy Kernels Inc. 

Contact: Claude Cameron 


Address: 2620, rue Watt, 

Sainte-Foy, Quebec 

G1P 3T5 

Telephone: 418-658-1515 

Fax: 418-657-5971 

Email: clacam@KrispyKernels.com 


MCCAIN FOODS LIMITED 



Sub Industry: Potato products, frozen 

vegetables, ready-to-serve 

meals, juices, desserts 

Location: Florenceville, New Brunswick 


Purchasing Potential: $C4-5 million over 3 years 



Robotics (palletizers) 

McCain Foods is a major international food producer that has more than 18,000 

employees worldwide and about 55 production facilities on six continents. It is the 

largest french fry maker in the world and claims to produce nearly one-third of the 

world’s french fries. 

In addition to french fries and other potato products, McCain Foods (Canada) 

produces frozen vegetables, juice and juice concentrates, frozen pizza and pizza 

snacks, oven-ready dinners and entrees, waffles, specialty meat products and 

desserts. Canadian operations employ about 3,300 people, has eleven processing 

facilities and accounts for a very large proportion of the total frozen food dollar in 

Canada. 

The National Post Business magazine reported that McCain Foods Ltd.’s total 

revenue for 2001 was $C5.3 billion. Revenue was not reported separately for 

Canadian operations. 



French Fries Form fill and seal bag; Stand up pouches 

Granulated potatoes Gas flush pouches 

Juice Cans and Tetrapak (tetrapaks are put in trays and 

then individual trays are overwrapped 

Pizza Flow wrappers and cartoned; Modifies atmosphere 

packaging 

Desserts Cartons 

Cakes Aluminum foil tins and plastic top crimped on with 

label 

Frozen juices Fiber cans, metal ends, mira-strap in wrapped trays 



The following packaging machinery would be installed in a typical french fry plant. 


by Category 


Scales Ishida 

Japan 

Yamuto 

Japan 

Baggers Bosch Netherlands/German 

Sandiacre United States 

Triangle United States 

Hayssen United States 

Electronic date coders SmartDate United States 

Metal detectors Loma 

Britain 

Barclay Dexter 

Britain 

Hi Speed United States 

Safeline Britain & others 

Fortress 

Canada 

Case packers, flex bags into box BluePrint 

United 

Dyna-Pak States/Netherlands 

United States 

Case erectors Dyna-Pak United States 

Wexxar Canada, U.S. & 

Australia 

Case shakers and sealers BluePrint Netherlands 

Date coders FoxJet United States 

Cartoning machinery 

LANGEN 

Canada 

Carton closers Klick-Klock Britain, U.S. & Canada 


McCain purchases approximately six bagging machines or lines every year. (As 

examples, the company just installed five baggers in the Portage plant and four in 

Grand Falls. Last year it installed six lines in France.) The purchasing potential over 

the next three years is $C4 to 5 million. 


The following factors have been rated as they were provided in the PMMI survey 

form. However, the respondent emphasized that the importance of the various 

factors are always situation specific. 


(1 = Most 

Important) 




Up-to-date Technology 1 / 2 





Equipment Characteristics & Features (e.g. flexibility, 


2 

Price 3* 

Service & Technical Support – In General & In 

Canada 

3** 




Credit Terms 

* McCain emphasized that it does not buy on price. 

n/a 

** McCain facilities are usually rural so they rely on themselves for service 


McCain’s attitude toward suppliers is situation and experience specific. In situations 

encountered by McCain, they have had positive experience with Japanese, 

Netherlands, United States and Canadian (specifically Wexxar) suppliers. They did 

not identify any negative experiences. 



Technology 

Service 

Britain Good Good Average Average 

Canada Good Good Average Average 

France Good Good Average Average 

Germany Excellent Good Good Poor 

Italy Good Good Average Average 

Japan Excellent Excellent Good Average 

Sweden Good Good Good Average 

United States Excellent Good Good Good 


Country Price 

Britain Very Expensive 


France Good Pricing 

Germany Excellent Pricing 

Italy Average Pricing 


Netherlands Excellent Pricing 


United States Good Pricing 


McCain purchases both through distributors and direct, although large volume 

purchases are made direct. Because it has its own engineering staff, it generally 

purchases individual pieces of equipment and does not buy turnkey solutions. 


In regard to the packaging machinery purchasing decisions, the Chief Engineer sets 

the standards and gets final approval for capital purchases. An ongoing capital 

purchasing process is employed. The Company expects an Internal rate of return of 

25% or better (although it may be lower for essential replacement equipment.) 


In certain areas, have specific problems. These include getting the line up to desired 

production speeds, speed of changeover and trying into control systems. 


McCain spreads its attendance around and has different employees attend different 

shows. Those attended include Pack Expo, Interpack, the show in Seattle/Portland 

and food sector specific shows (e.g. the bakery convention). 


Robotics (Palletizers). 


Company Name: McCain Foods Limited 

Contact: Larry Derrah 

Position: Chief Engineer, Technology 

Address: 107 Main Street 

Florenceville, New Brunswick 

E7L 1B2 

Telephone: 506-392-3365 

Fax: 506-392-4844 

E-mail: ldderrah@mccain.ca 


MCCORMICK CANADA 



Sub Industry: Spices, seasonings, dry sauce 

mixes 

Location: London, Ontario 





Not provided 

McCormick Canada is a division of McCormick and Co. of Hunt Valley, Maryland. 

The company has been in operation in London, Ontario for approximately 100 years. 


Product 

Blended and packaged spices, dry sauce mixes and seasonings 



Brand No. of Country of Average 

by Category 

Units Origin Age 

Labeling machinery 4 U.S., Canada 5-20 

Horizontal Form, Fill & Seal Bartelt 7 U.S. 25-40 

Filling machinery – dry products; Solbern, 

3 U.S. 5-20 

All Fill 

6 U.S. 5-20 

Speedee 

4 U.S. 5 

Capping, overcapping, lidding, Consolidated 3 U.S. 10-40 

sealing machinery; 

Kaps-All 

3 U.S. 10-20 

Premade bag hanging, opening, Paglierani filler 1 Italy 2 

weighing, filling and closing/sealing Fischbein heat 4 U.S. 1-5 

machinery; 

sealers 

Phoenix filler 1 Canada 1 

Filling machinery – liquid products; 1 U.S. 10 

Shrink film and heat sealing 

machinery; 

4 U.S., Canada 5-30 

Inspecting, detecting, and 

checkweighting machinery; 

Cintex, Loma 10 U.S. 1-10 

Palletizing, depalletizing, and pallet 

unitizing machinery; 

Lantech 1 U.S. 2 

Coding, dating, printing, marking, Diagraph, 

20 U.S. 1-10 

stamping and imprinting machinery; Videojet 

Case and tray forming, packing, 

unpacking, closing and sealing 

machinery; 

1 U.S. 5 



McCormick Canada will be upgrading one of its bottling lines in the next 12 months. 



(1 = Most 

Important) 






Price 5 




McCormick Canada prefers North American suppliers for their support and service. 

The Company is not negative to overseas suppliers, but purchasing offshore would 

require something which is otherwise not available in North America (and of 

comparable quality and performance) 



Technology 

Service 

Britain Average Average Average Poor 


Germany Good Good Good Poor 

Italy Average Average Average Poor 



Country Price 







McCormick Canada does not use financing. Terms are generally 50% down, 40% on 

acceptance at manufacturer, 10% on acceptance in our facility. 

The Company has used both distributors and direct purchase. The Engineering 

Department makes the final purchasing decision. It used both purchased individual 


pieces of equipment and turnkey solutions, depending on the magnitude of the 

project. 


The major problem experienced in sourcing/obtaining its packaging machinery 

requirements stems from the fact that standard designs usually require a number of 

modifications to accommodate frequent size and product changeovers. 


Trade shows usually attended include PACK EXPO International and PACex 

(Toronto). 


Company Name: McCormick Canada 

Contact: Ainslie McKinnon 


Address: 316 Rectory Street 

PO Box 5788 

London, Ontario 

N6A 4Z2 

Telephone: 519-432-7311 

Fax: 519-673-0035 

E-mail: Ainslie_McKinnon@mccormick.com 


MIDWEST FOOD PRODUCTS 


Sub Industry: Potato products 

Location: Carberry, Manitoba 






Ink jet coders VFFS equipment 

and palletizing equipment 

Midwest Food Products is a joint venture of J. R. Simplot Company and Nestle 

Canada Inc., and is managed by Nestle S. A. The factory, which has been in 

operation since 1961 and is located in Carberry, Manitoba, produces frozen and 

dehydrated specialty potato products. The facility is the largest potato processing 

factory in Western Canada, which employs approximately 500 people and processes 

17,000 truck loads of potatoes annually. 

Midwest actively sells its products throughout the Canadian and United States 

markets, and occasionally other countries. Its largest contracts are with large quick 

service restaurant chains. 



Frozen Food Service French Fries Bulk vertical form fill and seal bags in a 

corrugated case (4-lb to 6-lb sizes). 




By Category 

Units 

Age 

Vertical Form, Fill & Seal Machines Eagle TPII 4 United States 10 

Eagle Infinity 2 United States 5 

Bosch 

1 Germany 2 

Triangle 


Automatic Case Erectors COP 8 United States 1 to 15 

Automatic Case Fillers Dynpak 8 United States 1 to 15 

Metal Detectors Loma 

5 Britain 1 to 6 

Safe Line 


Fortress 


Coding Markem ink jet 6 United States 8 

Markem ribbon 

coder 



Midwest Foods will be looking at a palletising system within the next three years and 

possibly new VFFS machines. 




(1 = Most Important) 


Price 2 




5 






Midwest Foods has had positive experiences with USA suppliers. Negative 

experiences have been with Germany and Netherlands due to poor service, prices 

and availability of parts in Canada. 



Technology 

Service 

Canada Average Average Average Good 

Germany Average Good Good Poor 



Country Price 

Germany Somewhat 

Expensive 

United States Very Expensive 


Midwest Foods purchases its packaging machinery direct from manufacturers. 

Purchase decisions are made by Engineering department/Operations while purchase 

planning conducted by Engineering. Considerations for purchasing terms include 

performance guarantees and on-time deliveries. Thus far, Midwest Foods has only 

purchased replacement equipment individually. 


Midwest Foods has experienced problems related to availability of service in Canada 

and availability of parts. 


No Trade Shows have been attended, but Midwest would consider the Food 

Processing Machinery Expo. 



Ink jet coders and palletizing equipment 


Company Name: Midwest Food Products, Nestle Food Service 

Contact: Trevlyn Armstrong 

Position: Shift Manager 

Address: P. O. Box 70 

Carberry, Manitoba 

R0K 0H0 

Telephone: 204-834-2136 

Fax: 204-834-3400 

Email: trevlyn.armstrong@ca.nestle.com 


NESTLE CANADA INC. 



Sub Industry: Multiple categories 

Location: North York, Ontario 





Not provided 

Nestle Canada is a wholly owned subsidiary of the Swiss food conglomerate, Nestle 

S. A. It is one of the largest food companies in Canada with approximately 20,000 

employees. The Globe and Mail’s Report on Business magazine reported that 

Nestle Canada’s 2001 sales to be $C1.6 billion. 

Nestle Canada operates in a broad range of food categories, including baby foods, 

beverages, chocolates, ice creams, prepared meals, milk products and liquid nutrition 

products. Its brands are among the best known in Canada and include Nescafe 

coffee, Nestea, Carnation, Stauffers prepared meals, Hagen-Dazs, Aero, After Eight, 

Coffee Crisp and Kit Kat. 


Not provided. 


The following listing of packaging machinery covers one of Nestle Canada’s factories 

in Ontario. 



by Category 


Flow Wrapping SIG 

1 Swiss 2 

Delta 

4 USA 4 

Autowrappers 2 UK 20 

Vertical FFS Triangle 

1 USA 5 

Sandiacre 

1 UK 3 

Robotic Packaging Otto Haensel 1 

System 

Germany 12 

Top load Cartoning Schubert 1 Germany 1 

Taper Sealers for Cartons Various 12 Canada 10 plus 

Overwrappers Marden Edwards 4 UK 6 

FA 

multiple USA Old 

Shrink Wrap Various 4 USA 10 plus 

Check Weighers Various multiple USA varies 

Box Erection Klik lok 8 USA varies 



Not provided. 



(1 = Most 

Important) 








Speed of Delivery/Delivery Wait Period Depends on 

circumstances 

Price – generally less important Depends on 

circumstances 

Experience in Our Industry/Industry Sector We take this for 

granted; fewer 

suppliers 

Costs of Materials and Maintenance It comes down to 

availability locally 

Credit Terms Not important 


The attitude toward countries as attractive sources for packaging machinery varies 

depending on exchange rates. Nestles Canada generally buys in Euros. 



Technology 

Service 

Britain Good Good Good Average 


Denmark Excellent Excellent Excellent Good 

France Good Average Good Good 

Germany Good Average Average Good 

Italy Average Average Average Average 

Netherlands Excellent Good Excellent Average 


United States Good Average Average Good 



Country Price 



Denmark Good Pricing 

France Average 

Germany Average 

Italy Average 

Netherlands Good pricing 




Nestle Canada buys both direct and through distributors. Direct is more likely if a 

discount is offered, although they do respect distribution arrangements if in place. 

The company buys both individual pieces of machinery and turnkey situations. For a 

packaging line (such as chocolate bars) it may go to turnkey for the whole line but for 

replacement pieces they would buy individually. 

The purchase decision is made by a combination of engineering acting with plant 

personnel. They can call upon North American technical purchasing if assistance is 

needed. Because internal financing is used, credit arrangements are not important. 


Because the company has ample internal resources, it does not generally have to 

undertake extensive searches for specific types of packaging machinery. The use of 

internal resources reduces problems. However, over-promising can be a problem. 


Representatives of Nestle Canada attend Interpack, Pack Expo, and PACex as well 

as many sector specific shows. 


Company Name: Nestle Canada Inc. 

Contact: Bob Curgenven 

Position: Corporate Engineering Manager 

Address: 1500 Birchmont Road 

Scarborough, Ontario 

M1P 2G5 

Telephone: 416-285-2546 

Fax: 416-285-2534 

E-mail: Bob.curgenven@ca.nestle.com 


OLIVIERI FOODS 



Sub Industry: Pasta, sauces and frozen 

entrees 

Location: Vancouver 





None Identified 

Olivieri Foods Limited is a division of Canada Bread Company Limited (which is in 

turn is 73.3% owned by Maple Leaf Foods Inc.). Olivieri is a manufacturer of fresh 

pasta, sauces and entrees. Originally established in 1957 in Vancouver, B. C., the 

company now has two manufacturing facilities – one in Vancouver and the other in 

Hamilton, Ontario. The two facilities produce pasta and sauce for Canada and 

recently began distribution into the USA as well. It is estimated that 1.5 million 

Canadian households consume Olivieri product offerings. 



Fresh pasta MAP packs 

Fresh and frozen sauces Bags/ bags and sleeves 

Single serve frozen entrees Pre-formed trays 




By Category 

Units 

Age 

Vertical Filling Machines KeyPack 1 United States 7 

Horizontal Form, Fill & Seal Multivac 5 Germany 7 

Horizontal Cartoner Langen 2 Canada 7 


Olivieri has no current plans packaging machinery acquisition plans at this time. 




(1 = Most 

Important) 


1 



Price 3 














Olivier has had positive experiences purchasing good equipment from United States 

and German suppliers in the past. No negative experiences with countries were 

reported. 



Technology 

Service 


United States Excellent Excellent Excellent Good 


Country Price 




Olivieri buys its packaging machinery direct. Purchasing and purchase planning is 

done by either Operations Managers or Corporate Engineering. Financing is usually 

cash. Typical terms would be 45 after receipt of invoice. Down payment requirements 

are not normally an issue. Olivieri pursues both turnkey and individual equipment 

solutions, depending on the circumstances of the need. 


Finding a central source of data on different companies products. 



Trade shows: PACK EXPO. 

Publications: Canadian Packaging 


Company Name: Canada Bread – Olivieri Foods Division 

Contact: Tom Cobden 

Position: Operations Manager 

Address: 1631 Derwent Way 

Delta, British Columbia 

V3M 6K8 

Telephone: 604-525-2278 

Fax: 604-525-8207 

Email: cobdenTO@CanadaBread.ca 


ROGERS SUGAR 


Sub Industry: Sugar 

Location: Vancouver 






Open-mouth type 20/40 kg 

bagging equipment 

Rogers Sugar is the leading refiner, processor, distributor and marketer of sugar 

products in Western Canada. As the sole sugar processor in Western Canada, 

Rogers supplies over 90% of the demand for refined sugar in this area. Rogers has 

been in the sugar business since 1890. The Company has two sugar processing 

facilities, a cane sugar refinery in Vancouver, British Columbia and a sugar beet 

processing facility in Taber, Alberta. The Company's sugar products are marketed 

primarily under the "Rogers" trade name, and include granulated, icing, cube, yellow 

and brown sugars, liquid sugars and speciality sugars and syrups. 

Rogers generated revenue of $C163 million in fiscal 2002. If the results of wholly 

owned Lantic Sugar Limited are included, combined revenue amounted to $C309 

million. 



White sugar Paper bags 

Soft sugars Polythene bags 



Brand No. of Country of 

By Category 

Units Origin 

Premade bag hanging, opening, weighing, Fawema 

1 Germany 

filling and closing/sealing machinery; 


Date coders 

Bonar 

1 

Filling (dry products) St. Regis 

1 

Thayer 

1 

Form/fill/seal machinery – vertical Bosch 3 Germany 

Metal detectors Thermo 

Ramsey 

Palletizing, depalletizing, and pallet unitizing 

machinery 

Alvey 3 



Plan to replace valve-pack type with open-mouth type 20/40 kg bagging equipment 



(1 = Most 

Important) 



Price 3 








10 






Rogers has had positive experiences with the following countries: Germany, United 

States, Canada as they have experience operating equipment. There are no 

countries that Rogers reports having negative experiences. 



Technology 

Service 

Canada Average Average Good Good 

Germany Good Good Good Poor 

United States Average Average Good Average 


Country Price 

Canada Average 

Germany Expensive 



All purchases are bought direct and decisions are made by the Vice President, 

Operations. Planning is via the Engineering department and all financing comes from 

Rogers income. Rogers looks for turnkey solutions for supply and installation, while 

separate preparation is required for civil/structural equipment. 



A purchasing issue Rogers may encounter would be the justification of additional 

expenditure when existing equipment is perfectly functional. 


NWFPA – Seattle 


Company Name: Rogers Sugar 

Contact: George Lau 

Position: Project Engineer 

Address: 123 Rogers Street 

Vancouver, BC 

V6B 3N2 

Telephone: 604-258-4338 

Fax: 604-253-1610 

Email: glau@rogerssugar.ca 


SAPUTO INC. 


Sub Industry: Dairy Products, Cheese, Baked 

Goods 

Location: Saint-Leonard, Quebec 


Purchasing Potential: Uncertain at this time 




Case packaging and vacuum 

packaging 

Saputo is the largest dairy processor in Canada and one of the leading cheese 

manufacturers in North America. It makes Italian and European-style cheeses for 

sale to retail, food service and industrial customers in Canada and the United States 

(major brands include Armstrong, Frigo and Stella). Saputo also produces fluid milk, 

cultured dairy products and bakery products (Vachon-brand snack cakes). 

The Company has 46 plants in North America (17 cheese plants and 14 other plants 

in Canada) and 7,000 employees (2,000 in Canada). Saputo’s total revenue in fiscal 

2003 was $C3.4 billion ($C2.2 billion in Canada). 



Cheese single serving consumer size (40 

g to 40 lb.) Food service sizes: 

– variety of packs, Thermoform 

Consumer bag 

Overwrap 

Feta, Cottage, Ricotta Plastic Tubs 



by Category 

Brand 

Estimate 

d 

No. of 

Units 

3 

3 

4 

6 

4 

1 

Country of 

Origin 


Estimate 

d 

Average 

Age 

8 to 10 

8 to 10 

3 to 8 

Vertical form fill and seal Hayssen 

United States 

Triangle 

United States 

Horizontal form fill and seal Hayssen 

United States 

Prime Machine 


Overwrappers Doboy 


Rose Forgrov 

Britain 

8 

Palletizer Fanuc 1 Germany 4 

Case packer BluePrint 

Automation 


Note: The above equipment listing is for a single plant.


Saputo is constantly upgrading its packaging machinery. It is presently intensively 

examining case packaging and vacuum packaging. 



(1 = Most 

Important) 




Price 3 




Saputo has no real preference in regard to country of origin of the packaging 

machinery it purchases. The specific decision is based on circumstances. 



Technology 

Service 

Britain Good/Excellent Excellent Average Average 

Canada Excellent Excellent Excellent Excellent 

Germany Excellent Excellent Excellent Average/Poor 

Italy Excellent Excellent Excellent Average/Poor 


Switzerland Excellent Excellent Excellent Average/Poor 

United States Excellent Excellent Excellent Excellent 


Country Price 

Britain Good Pricing 

Canada Somewhat Expensive 


Italy Average 

Japan Average 




Saputo makes its packaging machinery purchase decisions on a team basis with 

input provided by individual project managers. This is built into the annual capital 

planning process. 

The Company employs a tendering process if there are options available and 

attempts to obtain a payment discount. It uses a 10% performance holdback based. 


Saputo attempts to buy direct from the manufacturer as much as possible. It buys 

both individual pieces of packaging machinery and turnkey solutions. The route 

selected depends on the complexity and whether suppliers are available to do 

turnkey. 


Saputo does not experience any major problems in sourcing and obtaining its 

packaging machinery requirements. 


Saputo employees attend PACK EXPO, Food Expo, PACex and dairy Field. They 

would like to attend Interpack. 


Case packaging and vacuum packaging. 


Company Name: Saputo Inc. 

Contact: Raymond Geddes 

Position: Project Manager 

Address: 6869 Metropolitain East 

St.-Leonard, Quebec 

H1P 1X8 

Telephone: 514-328-3366 

Fax: 514-328-3394 

E-mail: Raymond.geddes@saputo.com 


SCHNEIDER FOODS 

Industry: Foods Products 

Sub Industry: Processed meats 


Size (sales): $C1.06 billion 

Purchasing Potential: Not available 




- Horizontal Form Fill Seal 

- Vertical Form Fill Seal 

- Tray Sealers with Map/Cap 

- Automation with greater flexibility 

J. M. Schneider Foods, one of the largest processed meat manufacturers in Canada, 

is a wholly owned subsidiary of Smithfield Foods, Inc. (As this report was being 

finalized it was announced that Maple Leaf Foods had purchased J. M. Schneider). 

The company produces more than 1000 branded and private-label grocery and 

processed meat products, and holds the largest market share in Canada in the hot 

dog, lunch meat, frozen entree and premium ham categories. 

Schneider Foods maintains a work force in excess of 3500 employees in fifteen 

manufacturing locations across Canada (not including a number of distribution 

facilities and sales offices.) The company’s gross sales in 2002 were $C1.06 billion 

and total volume was 518 million pounds. 


Schneider Foods’ main processed meat products include luncheon meats, hams, 

sausages, hot dogs, and value-added poultry in both retail and larger food service 

formats. 

Most products are vacuum packaged, or modified atmosphere packaged. A lesser 

amount is sold frozen in a variety of packaging formats. 



Brand No. of Country of Average Age 

by Category 

Units Origin 

Pre-made bag equipment Multivac 1 Germany 5 

Lid & tray sealers Ross 

1 USA 

8 

Multivac 

2 Germany 2 & 6 

Carton forming/tape Belcore 10+ USA 1 to 6 

Coding, marking, Print Imaje 

10+ France 1 to 7 

Bellmark 

25+ USA 1 to 10 

Markem 

6 USA 5 to 10 

Conveying & feeding Allegro 10+ Canada 1 to 10 

Filling machine – liquid Hinds Bock 2 USA 1 to 2 


Horizontal form, fill & seal Multivac 

Curwood 

Cryovac 

30+ 

4 

4 

Germany 

USA 

Japan 

1 to 20 

1 to 15 

8 to 15 

Vertical form, fill & seal Cryovac 1 USA 3 to 7 

Inspect, checkweigh Loma 20+ England 1 to 15 

Labeling M+R 

6 Germany 4 to 6 

Accuply 

15+ USA 2 to 10 

Shrink film machines PFM 

6 Italy 

1 to 6 

Doboy 

2 USA 5 to 8 

Shanklin 

6 USA 1 to 10 


Future packaging equipment acquisitions will likely include more: 

- Horizontal form, fill & seal 

- Vertical form, fill & seal 

- Tray sealers with map/cap 

- Automation with greater flexibility 


The factors that Schneiders considers in combination is selecting machinery are 

function, safety, sanitation, maintainability and cost. 


(1 = Most 

Important) 




Sanitation 1 

Safety 1 









Price 4 






Schneiders holds the most positive attitude toward German and American packaging 

machinery suppliers. It has found that they build excellent quality machines and they 


have well-established service networks. Service and function take priority over capital 

cost in the purchasing decision. 

Schneiders avoids countries that have not invested in supporting after-sale issues. 

For example, it has generally been found that Japanese suppliers usually have nice 

equipment at the trade shows, however they provide poor service in Northern U.S. or 

Canada. 



Technology 

Service 

Canada Average Average Average Good 

France Average Average Average Average 


Italy Good Good Excellent Average 

Japan Average Average Good Very Poor 



Country Price 


France Average 


Italy Average 




Schneiders always prefers to buy equipment directly from the OEM. Normally it 

acquires individual pieces of equipment and creates its own production line to suit its 

ROI requirements. Schneiders has found turnkey to be reasonably expensive and it 

generally takes longer than in-house solutions. 

The decision process to purchase a machine to address a specific need consists of a 

cross-functional team decision. The decision to purchase a particular make or model 

is made by senior engineering staff and production management. 

The Company pays cash, normally with 30 – 30 – 30 – 10% terms. 



In regard to main problems experienced sourcing/obtaining required packaging 

machinery: 

- Delivery times are never soon enough to suit the needs of the Company’s 

marketing managers; 

- The balance of equipment flexibility vs. the low cost benefits of automation are 

always a challenge when designing a packaging line; 

- Schneider usually looks for a one-year payback on new equipment. 

- The high exchange rate for the U.S. dollar also presents a significant challenge. 


Representatives of Schneiders currently attend the following trade shows: 

- PMMI PACK EXPO International 

- American Meat Institute show in Chicago 

- PACex in Toronto 

- Interpack in Germany 

They would also like to attend the bakery show. 

Trade journals normally read include: 

- Canadian Packaging 

- Packaging Digest 

- Meat Packaging and Technology 

- Meat processing 


Areas in which Schneiders is interested in receiving information include: 

- Cook-in retail packaging 

- Food snack packs that look ‘cool’ and are fun for kids and teens 

- Food kits 


Company Name: Schneider Foods 

Contact: Paul Bartosek 

Position: Senior Project Engineer 

Address: 321 Courtland Avenue East 


N2G 3X8 

Telephone: 519-741-5000 

Fax: 519-749-7411 

E-mail: pbartosek@schneiderfoods.ca 


SMUCKER (CANADA) INC. 

Industry: Food products 

Sub Industry: Jams, jellies, fruit fillings 

Location: Ste-Marie, Beauce, Quebec 

Size (sales): Wholly owned subsidiary of U.S. 

company, sales not reported separately 

Purchasing Not provided 

Potential: 




Not provided 

J. M Smucker (Canada) Inc is part of the international division of The J. M. Smucker 

Company (the head office is located in Orrville, Ohio). The Company operates a 

single plant in Canada located in Ste-Marie, Beauce, Québec with approximately 150 

employees. Smucker is a leading producer of jams and jellies in Canada with a 

range of brands, including Smucker’s, Double-Fruit, Good Morning, Grenache and 

Map-O-Spread. 



Jams & jellies Glass jars, pails, drums & individual portions 

Carmel spread Plastic tubs (cylindrical & taper), PET 

containers, pails & drums 

Fruit filling Pails & drums 



By Category 

Portion Control Line 

Horizontal Form, Fill & Seal 

HASSIA 

Brand No. of 

Units 

Country of 

Origin 


Average 

Age 

1 Germany Confidential 

Case erector Wepackit 1 Canada 12 

Case Sealer Wepackit 1 Canada 12 

Tray Erector Sprinter 1 USA 20 

Case Ink Jet Printer Marsh 1 USA 8 

Case Packer Wepackit 1 Canada 12 

Palletizer FMC 1 USA 12 

Jar Line 

Case ink jet Printer Marsh 1 USA 8 

Ink jet Printer Imaje 2 France 8 

Shrink Film PMI 1 USA 3 

Depallettizer Priority One 1 Canada 3 

Vision System Emhart Glass 1 USA 0 

Filler Elmar 1 USA 22

Pasteurizer I & H 1 USA 7 

Labeler (Rondella) Krones 1 Canada 10 

Labeler (Starmatic) Krones 1 USA 15 

Tray Packer Vantage Pak 1 USA 3 

Palletizer Newtec 1 USA 7 

Capper White Cap 1 USA 25 

Caramel Packaging Line 

Filler Autoprod 1 Germany 15 

Labeler (Canmatic) Krones 1 USA 10 

Case Packer Wepackit 1 Canada 10 

Filler Anderson 1 USA 20 

Ink Jet Printer Imaje 1 France 8 

Lip Capper Mecnov 1 Canada 8 

Case Erector Wepackit 1 Canada 10 

Case Sealer Wepackit 1 Canada 10 


Studying a project to modify the Caramel Spread Packaging Line, other projects are 

on process side. 



(1 = Most 

Important) 


Price 1 















Because it has found their packaging machinery to be more reliable and of good 

construction, Smucker has positive attitudes towards products from Germany, Italy 

and the USA. 

Because of poor support, it has less positive attitudes toward packaging machinery 

from Asia, South America and Mexico. 




Technology 

Service 

Britain Good Good Excellent Very Poor 


France Good Good Good Poor 


Italy Excellent Excellent Excellent Average 

Japan Average Good Good Very poor 

United States Excellent Excellent Good Good 


Country Price 




Germany Very expensive 




Smuckers buys directly from suppliers using very specific specifications regarding the 

desired performance of the equipment. The Company does not utilize supplier 

financing. 

In regard to the use of purchasing turnkey solutions versus acquiring individual 

pieces of machinery, the choice depends on the complexity of the project. The 

company structures its contracts to ensure that responsibility for the equipment’s 

performance rests with the supplier. For example, if it purchases a conveying system 

to supply jars from one machine to another, the conveyor and the controls would be 

in the same contract. 


The major problem Smucker experiences in its packaging machinery acquisitions is 

obtaining the desired performance quickly. 


Representatives of Smuckers attend each PACK EXPO International and are 

considering attending PACK EXPO Las Vegas. 


New concepts in packaging. 



Company Name: J. M. Smucker (Canada) Ltd. 

Contact: Jacques St-Pierre 

Position: Engineering and Maintenance Manager 

Address: 883 Notre-Dame Nord 

Ste-Marie, Beauce 

Quebec 

G6E 3B2 

Telephone: 418-387-5454 

Fax: 418-387-1509 

E-mail: jacques.stpierre@jmsmucker.com 


SEAFORTH CREAMERY INC. 


Sub Industry: Salad dressings, mayonnaise 

and margarine 

Location: Oakville, Ontario 


Purchasing Potential: Not provided but some new 

capital equipment will be 




acquired during the next 3 years 

Bottling line equipment 

Seaforth Creamery is a producer and contract packager of salad dressings, 

mayonnaise and margarine under more than 30 private label brands. Based in 

Oakville, Ontario, this Canadian company operates two facilities producing its unique 

dressings and condiments. 



Salad dressings, mayonnaise and margarine Various package sizes, bottles and containers 

in glass and PET 


No information provided. 


Seaforth will be looking at additional bottling line equipment in the next 3 years. 



(1 = Most 

Important) 





1 









Price 3 






Seaforth reported problems with Italian suppliers based largely on taking August off 

for vacation – service/parts support became problematic. 



Technology 

Service 

Germany Excellent Excellent Excellent Excellent 

Italy Average Average Average Very Poor 


Not provided. 


Once a need or opportunity is identified, a capital project is documented and 

circulated to the senior management group for approval, then is fit into the annual 

capital budget. Seaforth also looks for a multi-departmental sign-off for 

appropriateness and functionality of the prospective new equipment. The company 

typically expects deposit/on delivery/net 30 terms on large equipment and selffinance 

the cost. Typically, Seaforth manages its own integration of equipment. 


No issues identified. 


PACK EXPO every couple of years 

Plant Canadian Packaging 


Company Name: Seaforth Creamery Inc. 

Contact: Derek Hill 

Position: Plant Manager – Seaforth 

Address: 151 Main St 

Seaforth, ON N0K 1W0 

Telephone: 519-527-0610 

Fax: 519-527-0200 

Email: dhill@seacream.com 


TROPHY FOODS INC. 



Sub Industry: Snack foods nuts and peanuts 

and candies 

Location: Mississauga, Ontario 





Automation 

Trophy Foods is a thirty-six year old private company that manufacturers and 

distributes snack and baking products to retail and foodservice customers across 

Canada. The product assortment includes nuts, dried fruits, grains and candies, in 

both packaged and bulk formats. 



Tray Candy 250 gram to 900 gram sizes 

Coated Peanuts 56 gram snack packs to 320 grams 

Puffed Snacks 60 gram to 1 pound packs 

Coated pop corns 140 gram to 800 gram sizes 

Party mix 400 gram to 1 pound sizes 



by Category 

Vertical Weighing Packaging 


Units 

Age 

HAYSSEN 

YAMOTO 

6 U S/Japan 10 – 15 

Form Fill and Seal Hayssen 6 United States 10 – 15 

Jar Line Cap Sealer Enercon 1 United States 10 

Can Cap Fixer Metal Box 2 Britain 12 – 15 

Labeler Matter Burt 1 United States 7 

Box Maker Blissmatic SWF 1 United States 15 

Metal Detector Metal Check 2 Britain 12 – 15 

Shrink Pack Sealer Wrap-O-matic 2 Canada 10 

Shrink Pack Sealer Shanklin Shrink 2 Canada 10 

Shrink Pack Sealer Mackenzie 1 Canada 12 

Tray Packing Machine MultiScaletrix 1 Canada 13 - 15 

Metal Detector 1 Canada 15 

Bag Packaging Machine Triangle Packaging 1 United States 11 - 13 

Box Taping Machine Supertape 3 Netherlands 10 - 12 

Packaging Machine 

WRIGHT 

MACHINERY 

1 United States 12 - 15 


Packaging Machine Rovema 1 Britain 15 - 18 

Weighing Scale Packaging Paxall Parsons 1 United States 15 

Bucket Elevator 1 Canada 15 - 20 

Jar Line Hansen Machinery 1 Canada 12 – 15 

Conveyor 

MORRISON 

EVERIT 

1 Canada 12 – 15 

Vibrating Conveyor LMC 1 United States 11 

Walnut Salting Commercial Manu 1 Canada 10 – 12 

Bucket Elevator Tip Freck 1 Canada 15 

Jar Line Cap Fixer The New Resina 1 Canada 15 

Jar Filler Houser Machinery 1 Canada 12 - 15 

Metal Detector Phanthan 2 Canada 15 

Coder Dependable 3 Canada 10 

Weighing Machine Mix Systems 1 Canada 12 


Not provided. 



(1 = Most 

Important) 



Price 2 




Equipment Characteristics & Features (e.g. 2 







BRAND/SUPPLIER REPUTATION 

3 



Trophy has the most positive attitude towards United States manufacturers because 

it has found it easier to get spare parts from them and easier to communicate with 

them and it is easier to view new, updated machinery. 



Technology 

Service 




Germany Good Good Average Good 


Japan Excellent Excellent Excellent Good 




Country Price 

Britain Good Prices 


Germany Good Prices 

Italy Good Prices 

Japan Good Prices 

United States Excellent Prices 


Not provided. 


None reported. 


Not provided. 


Automation 


Company Name: Trophy Foods Inc. 

Contact: Ali Musa 

Position: Team Lead Planning 

Address: 71 Admiral Road 

Mississauga, Ontario 

L5T 2L1 

Telephone: 905-670-8050 

Fax: 905-670-4256 

E-mail: 


VOORTMAN COOKIES LIMITED 


Sub Industry: Baking Products – Cookies 

Location: Burlington, Ontario 

Size (sales): Private Company; sales figures 

not available 

Purchasing Potential: Unknown at this time 




Case packing, Tray loading, 

Vertical form fill seal. 

Voortman Cookies was started by two brothers in 1951 and the company is still 

owned by the Voortman family. Its 250,000 square foot plant located in Burlington, 

Ontario is staffed by 400 employees. The Company produces 120 different cookie 

styles based on 40 distinct varieties. Production exceeds 30,000 tons of cookies 

annually. 


Cookies 



- Tray loaded & overwrapped 

- Over wrapped without trays (e.g. wafers) 

- Bulk pack 

- Tubs 

- Clamshells 



by Category 


Horizontal wrapper Doboy 

6 USA 

7 

Fuigi 

1 Japan 

24 

SIG 

2 Switzerland 1 

Tevopharm 

1 Netherlands 10 

Tray loading system Demaurex 

1 Switzerland 5 

Machine Builders 1 USA 

8 

Tamper evident bander Axon 1 USA 5 

Coding – hot stamp Markem 8 UK 8 

Coding – ink jet Dalemark 

16 USA 

8 

Domino 

1 USA 

1 

Linear scale WeighPack 1 Canada 9 

Checkweigher Hi Speed 

2 USA 

8 

Loma 

7 USA 

7 

Metal detector Lock 

1 UK 

Loma 

12 USA 

157 


Labeling machinery Combina 

Label Systems 

Labeling 

Technologies 


2 

5 

7 

Germany 

Canada 

Canada 

Bagger Formost 1 USA 4 

Palletizer Mathews 

2 Canada 18 

Mattcon 

1 Canada 

1 

Shrink wrap Shanklin 1 USA 8 

Tape machine 3M 10 USA 10 

Feeding system SIG 1 UK 6 

Tray loading system Machine Builders 1 USA 8 

Cartoner Langen 1 Canada 12 


Acquisition plans include: 

• Case packing 

• Tray loading 

• Vertical form fill seal 



(1 = Most 

Important) 









Price 4 





20 

8 

5




Technology 

Service 

Britain Good Excellent Good Average 


Germany Good Excellent Good 

Netherlands Average Good Average Poor 

Switzerland Good Excellent Good Average 



Country Price 




Netherlands Average Prices 




Voortman buys its packaging machinery direct from manufacturers. It usually buys 

individual pieces rather than turnkey solutions. 

The Company prepares capital budgets one year in advance for large items and buys 

on an as-required basis for smaller items. Purchases are self-financed so financing 

is not required. 


Space constraint is probably the major problem in obtaining required packaging 

machinery. 


Representatives of Voortman currently attend the following trade shows: 

- PMMI Pack Expo in Chicago 

- Interpack in Germany 

Trade journals normally read include: 

- Canadian Packaging 

- Food & Drug Packaging 

- Packaging World 

- Packaging Digest 



Company Name: Voortman Cookies Limited 

Contact: Andrew Kieft 

Position: Design Engineer 

Address: 4455 North Service Road 

Burlington, Ontario 

L7L 4X7 

Telephone: 905-335-9500 

Fax: 905-332-5499 


WESTON BAKERIES LTD. 


Sub Industry: Bread and Bakery Products 


Size (sales): Not available for Weston 

Bakeries 

Purchasing Potential: During the coming year 

packaging machinery purchases 




will likely be $C2 million 

Packaging for Specialty items – 

i.e. – Swiss Roll Packaging, and 

Frozen Breads 

Weston Bakeries Limited is part of the Weston Foods food processing operating 

segment of George Weston Limited, a broadly based Canadian company with 

operations in Canada and the United States. In 2002 the Weston Foods segment 

attained sales of $C4.8 billion while George Weston Limited had total sales of $C27.4 

billion. 

In Canada George Weston Ltd. operates 39 Bakeries and 3 Dairy operations. The 

Weston Foods segment is a significant participant in the North American baking 

industry. It produces a range of bakery products, including breads, dough, rolls, 

bagels, waffles, English muffins, doughnuts, cakes, sweet goods and crackers under 

both its own brand names and for private label. 



Bread Automatically with AMF Baggers into Poly bags 

Rolls Automatically with UBE & Foremost Baggers into 

Poly bags 

Bagels Automatically with UBE & Foremost Baggers into 

Poly bags 

Sweet Baked Goods Automatically overwrapped 

Tortilla’s By Hand Into Poly bags 

Dairy Products 



The following machinery is installed in the Canadian operations: 



By Category 

Units 

Age 

Bread, rolls, bagels Foremost, UBE 40+ USA 

Case Palletizers Fanuc 2 Japan 2 

Bread Baggers AMF 4 USA 15 

Bread Baggers AMF 1 USA New 

Bag Closures Kwik Lok 60+ USA 1 - 10 

Band Sealers APM 

Pattern Formers APV 5 USA 10 

Pattern Formers Fanuc 4 Japan 1 

Flow Wrappers PFM 1 USA 10 

Flow Wrappers Shankun 1 USA 8 

Flow Wrappers Doboy 1 USA 10 

Box Erectors Wexxar 4 Canada 15 

Bag Makers O-K- Internx 2 USA 8 

Box Erectors Pattyn 1 Belgium 2 

Poly Bag Inserters Pattyn 2 Belgium 2 

Poly Bag Inserters Pattyn 2 Belgium 15 

Centrifugal Bowl Feeder Pattyn 1 Belgium 2 

Rotary Bread Packer Pattyn 1 Belgium 2 

Decuffers Pattyn 2 Belgium 2 

Tapers 3M, Little David 2 USA 2 

Stretch Wrapper Wulftec 1 Canada 2 

Label Printers Sato 6 USA 2 

Print Applicators Universal 6 USA 2 

Chip Baggers Woodman 4 USA 3@6, 

1@1 

Pie Cartoners Langen 3 Canada 15 

Tortilla Counter Stackers Arr - Tech 3 USA 8 

Ink Jet Coders Video Jet 8 USA 5 

Bag Sealers Emplex 6 USA 8 

Check Weighers Loma 2 USA 1 

Metal Detectors Loma, Safe Line 60+ USA 1 - 10 

Lazy Susans 12 Canada 10 


Expect no major changes from current purchasing practices. Packaging machinery 

products under consideration include packaging for non-core products and 

replacement units as well as expansion projects. 




(1 = Most 

Important) 


Price 1 
















Weston Bakeries Ltd. has generally had good experience with European suppliers 

and feel these suppliers provide high quality products. 



Technology 

Service 

Belgium Good Good Good Average 

Canada Excellent Excellent Good Good 

Japan Average Average Good Average 

Switzerland Excellent Excellent Excellent Good 



Country Price 

Belgium Somewhat Expensive 







Purchasing decisions are made by the Plant Manager and Engineering. 

Weston buys its packaging machinery direct from the manufacturer. When sourcing 

packaging machinery, Weston generally looks for turnkey situations; in isolated 

situations will purchase individually. 

The Capital Budget is set by region, based on utilisation rate, reliability, cost 

justification and new products. Once the maintenance cost on a piece of equipment 

is beyond 30 – 40% annually it would be assessed for replacement. 


The major problems experienced relate to specialty items – i.e. – Swiss Roll 

Packaging, and Frozen Breads. New technology and/or application. 


The packaging machinery industry trade shows normally attended include: 

� PACK EXPO Las Vegas & International 

� Toronto - PACex 

� Düsseldorf. – Interpack 

The most frequently read packaging machinery trade publications is “Plant”. 


Specialty items – i.e. – Swiss Roll Packaging, and Frozen Breads. 


Company Name: Weston Bakeries Ltd. 

Contact: Steve Johnston 

Position: Director of Manufacturing 

Address: 122 Carrier Drive 

Etobicoke, Ontario 

M9W 5R1 

Telephone: 416-996-3528 

Fax: 416-674-2805 

E-mail: Sjohnston@WestonBakeries.com 


4.0 THE BEVERAGE INDUSTRY 


In 2001, the last year for which complete industry data is available, beverage industry 

production reached $C9.5 billion, a 0.07 per cent increase over 2000. Beverage 

industry shipments accounted for approximately 1.8 percent of the value of Canada’s 

total manufacturing shipments. In 2001, Canada’s beverage manufacturing industry 

was comprised of 563 establishments that employed approximately 30,000 people. It 

should be noted that, for the purposes of this report, the traditional definition of the 

beverage industry has been expanded to include bottled water, juice, and tea and 

coffee manufacturers. 

Data from the Brewers Association of Canada indicate that per capita consumption of 

beer, spirits, and wine was 105.54 litres in 2002, a 1.78 percent increase over 2001. 

The per capita consumption calculation is based on the adult population 15 years 

and older. Of the 2002 total, per capita beer consumption was 86.06 litres, a 1.27 

percent increase over 2001, per capita spirits consumption was 6.51 litres, a 0.4 

percent increase over 2001, and per capita wine consumption was 12.97 litres, a 

3.35 per cent increase over 2001. The increase in per capita spirits consumption can 

be attributed to an increase in the sale of spirit based coolers, which represent 32.5 

percent of total spirit sales in Canada. 

Almost one-half of Canadian beer is brewed in Ontario, slightly more than onequarter 

is brewed in Quebec, and almost 20 percent is brewed in the Western 

provinces. The most popular packaging format for domestically brewed beer is 

bottles. Beer sold in bottles accounted for 68.1 percent of the domestic beer market 

in 2002, a 1.73 percent decrease from 2001, and beer sold in cans accounted for 

21.1 percent of the market in 2002, an 8.21 percent increase over the prior year. 

Beer sold as draught accounted for 10.8 percent of the market in 2002, a 3.57 

percent decrease from 2001. 

The majority of the distillery industry is located in Ontario where more than 60 

percent of spirits are distilled. The majority of Canada’s wine industry is located in 

British Columbia and Ontario, as these two provinces produce 98 percent of 

Canada’s premium wine volume. 

Canada’s alcoholic beverage manufacturers, for the most part, supply the domestic 

market, where 82.5 percent of their output is shipped. The remainder is exported. 

Almost 45 percent of total alcoholic beverage exports are composed of one 

commodity: whiskies. Ninety percent of Canadian whisky exports go to the United 

States. 

The bottled water industry is a small but rapidly growing sub-sector of the beverage 

industry as many Canadians drink bottled water on a regular basis. The majority of 

the bottling plants are located in the provinces of Quebec, Ontario and British 

Columbia. In 2001, according to statistics published in the March/April 2002 issue of 

Western Grocer Magazine, per capita consumption of bottled water in Canada was 


34.7 liters, a 25.7 percent increase over 2000. The Canadian bottled water industry 

now has 77 bottlers producing shipments valued at $C586 million, of which 47.9 

percent was exported to the United States in 2002. Canada has now surpassed 

France as the largest exporter of bottled water to the U.S., and Canadian exports are 

expected to double in the next five years. 

The Canadian soft drink industry primarily serves the domestic market. Statistics 

Canada data show that in 2001, 95.1 percent of shipments were for the domestic 

market while the remaining 4.9 percent were exported. More than one third of 

industry shipments originate in Ontario and one-quarter originate in Quebec. The 

remainder is manufactured in the Western provinces while a minor portion comes 

from the Maritimes, primarily New Brunswick. Data from Statistics Canada indicate 

that per capita consumption of carbonated soft drinks was 113.24 liters in 2001, a 

0.43 percent increase over 2000. Data from Retail Sales in Canadian Grocery 

Stores, 2001, a report AC Nielsen Canada produced for Agriculture and Agri-Food 

Canada, indicate that about 23 percent of soft drinks sold are diet drinks and that 77 

percent of soft drinks sold are regular drinks. The same study also indicated that 

about 52 percent of soft drinks sold are packaged in bottles and that about 48 

percent of soft drinks sold are packaged in cans. 

Canada’s tea & coffee manufacturers mainly serve the domestic market. Statistics 

Canada data show that in 2001, 67.7 percent of industry shipments were for the 

domestic market, while the remaining 32.3 percent were exported. The majority of 

Canadian tea processing takes place in Ontario, Quebec and British Columbia, 

although there are many small and medium-sized Canadian owned firms located 

across the country. Coffee processors are located mainly in Ontario and Quebec, 

with small and medium-sized firms located across the country. From 1990 to 1999, 

per capita consumption of tea has increased from 0.54 kilograms (tea leaves) to 0.86 

kilograms. Data from the Tea Council of Canada indicate that 90 percent of Canadian 

adults drink tea and that they consume some 7 billion cups per year. Per capita 

consumption of coffee has increased slightly since 1990 from 4.27 kilograms (beans) 

to 4.52 kilograms in 1999. According to the Coffee Association of Canada, adult 

Canadians drink over 15 billion cups of coffee per year, making coffee Canada’s 

favorite hot beverage. The average coffee drinker in Canada drinks three cups of 

coffee each day. Of all coffee consumed in Canada, 74 percent is roast and ground, 

20 percent is instant, and 6 percent is specialty. Decaffeinated coffee represents 9 

percent of total coffee consumption. 



Ten leading Canadian beverage manufactures ranked by annual sales revenue are 

set out in the table below. 

Table 4.1: Ten Leading Beverage Companies in Canada 

Company Name 2002 Sales Ownership Soft 

(C$ 000s) 

Drinks 

Molson Inc. $2,102,300 Public 

(CDN) 

Cott Corp. 1,881,802 Public 

(U.S.) 

X 

Pepsi-Cola 

1,465,000 Private X 

Canada, Ltd. 

(U.S.) 

Vincor 

376,593 Public 

International Ltd. 

(CDN) 

Van Houtte Inc 317,061 Public 

(CDN) 

Lassonde 


Industries Inc. 

(CDN) 

Sleeman 


Breweries Ltd. 

(CDN) 

Andrés Wines Ltd. 139,008 Public 

(CDN) 

Corby Distilleries 102,128 Public 

Ltd. 

(CDN) 

Big Rock Brewery 24,909 Public 

Ltd. 

(CDN) 

Tea & 

Coffee 

Juice Beer Wine Spirits 

Sources: National Post FP500-Canada’s Largest Corporations, June 2003; The Globe And Mail, Report on 

Business-The Top 1000 Companies, July 2003. 


Key beverage industry statistics for 2001, the last year for which industry data are 

available, are set out in the table below. We note that bottled water industry statistics 

are included in NAICS industry code 31211-Soft Drink and Ice Manufacturing. 


X 

X 

X 

X 

X 

X 

X 

X

Table 4.2: Key Beverage Industry Statistics, 2001 

NAICS 

Code 

Industry Description No. of 

Establishments 

312 Beverage and Tobacco Product 

Manufacturing 

No. of 

Employees 

Value of 

Shipments 

(C$ 000s) 

3121 Beverage Manufacturing 

31211 Soft Drink and Ice Manufacturing 174 11,365 $3,127,948 

31212 Breweries 130 10,093 3,859,874 

31213 Wineries 168 2,471 656,809 

31214 Distilleries 18 1,802 935,631 

Sub-total 490 25,731 8,580,262 

311 Food Manufacturing 

31141 Frozen Juice Manufacturing Not available 

31142 Fresh Fruit and Vegetable Juice Mfg Not available 

31192 Coffee and Tea Manufacturing 73 2,228 $953,871 

Sub-total 73 2,228 953,871 

Total Beverage 563 27,959 $9,534,133 

Source: Statistics Canada CANSIM II Database. 

The value of goods of the beverage industry’s own manufacture, for the years 1997 

to 2001, are outlined in the table below. 

Table 4.3: Value of Beverage Industry Shipments, 1997-2001 


(C$ 000s) (C$ 000s) (C$ 000s) (C$ 000s) (C$ 000s) 

Soft Drink and Ice 

Manufacturing 

$2,752,029 $3,123,741 $3,062,323 $3,020,149 $3,127,948 

Breweries 3,379,651 3,431,454 3,959,435 3,940,221 3,859,874 

Wineries 413,514 409,182 500,498 656,866 656,809 

Distilleries 799,067 969,278 944,414 946,802 935,631 

Coffee and Tea 

Manufacturing 

1,047,055 1,263,140 1,110,472 963,711 953,871 

Fruit and Vegetable Juice 

Mfg 1 

220,800 530,200 363,700 Not Not 

available available 

Total $8,614,113 $9,728,993 $9,942,841 $9,529,749 $9,536,134 


Note: (1) Only partial shipment data are available from Statistics Canada for the Fruit and Vegetable 

Juice Manufacturing Industry for the years 1997 to 1999. 

Production statistics for some beverage products produced in Canada are presented 

in the following table. We note that the most recent production data available is 1999, 

and that Statistics Canada is not scheduled to release 2000 and 2001 data until 

January 2004. 


Table 4.4: Production Statistics for Some Beverage Products, 1997-1999 

Product Description 1997 

(C$000s) 

Coffee (not decaffeinated) 

$473,000 

Coffee (decaffeinated) 

33,200 

Black tea (in packages not exceeding 3 kg) 70,700 

Apple juice (reconstituted) 

43,500 

Fruit juice mixes (not concentrated) 

142,900 

Carbonated soft drinks (regular) 

Not available 

Carbonated soft drinks (low calorie) 

293,300 

Orange fruit drinks (non-carbonated) 

15,600 

Fruit drinks (other than orange, non- 

224,500 

carbonated) 

21,400 

Sparkling wines 

284,200 

Wines (other than sparkling) 

13,800 

Gin 

Vodka 

45,000 


4.4 EXPORTS 

1998 

(C$000s) 

$624,400 

29,900 

71,700 

47,900 

131,500 

1,901,600 

359,100 

14,900 

294,500 

21,500 

285,100 

13,700 

52,800 

1999 

(C$000s) 

$565,700 

26,400 

67,800 

52,300 

122,900 

1,895,600 

307,900 

13,600 

233,800 

14,700 

335,100 

2,700 

38,200 

The value of Canada’s total beverage exports for the years 1998 to 2002 are set out 

in the following table. 

Table 4.5: Total Exports of the Beverage Industry, 1998- 2002 

Industry 1998 1999 2000 2001 2002 

Description (C$ 000s) (C$ 000s) (C$ 000s) (C$ 000s) (C$ 000s) 

Soft Drink and Ice 

Mfg 

$432,570 $455,983 $377,265 $361,866 $418,302 

Breweries 281,865 287,166 335,288 385,946 355,629 

Wineries 12,202 40,073 75,486 101,146 107,077 

Distilleries 599,193 670,261 639,121 643,241 491,590 

Coffee and Tea 308,160 304,838 309,347 308,530 313,576 

Fruit and 

Vegetable Juices 

40,108 57,422 56,827 60,023 62,582 

Total Beverage 

Exports 

$1,674,098 $1,815,743 $1,793,334 $1,860,752 $1,748,756 


Canada’s top ten beverage export destinations for 2002 are outlined in the table 

below. 


Table 4.6: Top Ten Beverage Export Destinations, 2002 


% of 



United States 1,658,757 94.9% 

Japan 26,079 1.5% 


Mexico 6,263 0.4% 

Taiwan (Taipei) 5,411 0.3% 

France 3,319 0.2% 

Germany 3,137 0.2% 


Sweden 3,087 0.2% 

Hong Kong 2,264 0.1% 

All other countries 29,906 1.7% 




COLUMBIA BREWERY 


Industry: Beverages 

Sub Industry: Beverage Alcohol (Beer) 

Location: Creston, British Columbia 

SIZE (SALES): 

Wholly owned by parent, sales 

not reported separately. 




None 

Columbia Brewery is a wholly owned division of the Labatt Brewing Company, one of 

Canada’s largest brewing companies. Since 1995, the Labatt Brewing Company has 

been part of Belgium-based Interbrew S.A., one of the largest brewing groups in the 

world with more than 180 beers available in over 110 countries worldwide. The 

Columbia Brewery’s brand portfolio includes Kokanee, Kootenay Black Lager, 

Kootenay Mountain Ale, and Kootenay Gold. 



Liquids Bottles, cans, and kegs 




by Category 


Sasib Electronic Filler Sig Simonazzi 1 Italy 2.5 

Bottlewasher Barry Wehmiller 1 USA 15 

Pasteurizer Barry Wehmiller 1 USA 18 

Labeler Krones 1 Germany 8 

Palletizer PAI 1 USA 18 

Endload Minnesota 1 USA 14 


None provided. 



(1 = Most 

Important) 









1 




Price 2 







a. Perception of Machinery by Country 


Technology 

Service 


Germany Excellent Excellent Good Good 

Italy Average Average Good Poor 

United States Good Good Average Good 

b. Perception of Pricing by Country 

Country Price 




United States Somewhat 

Expensive 


Not provided. 


Obtaining accurate equipment history and operational efficiencies are concerns. Most 

of the equipment Columbia Brewery acquires is installed as part of turnkey situations. 


Representatives of the company regularly attend the PACex in Toronto. 



Company Name: Columbia Brewery 

Contact: Dennis Kunstmann 

Position: Maintenance Planner 

Address: 1220 Erickson Street 

Creston, British Columbia 

V0B 1G0 

Telephone: 250-428-1233 

Fax: 250-428-9335 

E-mail: dennis.kunstmann@labatt.com 


DIAGEO CANADA 


Industry: Beverage 

Sub Industry: Beverage Alcohol (Spirits) 

Location: Etobicoke, Ontario 

Size (sales): Wholly owned by British parent, 

sales not reported separately. 




None 

Diageo is the world’s leading premium beverage alcohol company with a portfolio of 

international brands, including Smirnoff Vodka, Seagram VO, J & B, and Crown 

Royal. 



Liquids Bottles 


It is against company policy to provide detailed information on their current 

compliment of installed packaging machinery. 

Current Machinery Used by Category 


Capping, overcapping, lidding, sealing machinery 

Coding, dating, printing, marking, stamping and 

imprinting machinery 

Filling machinery – liquid products 

Inspecting, detecting, and checkweighting machinery 

Labeling machinery 

Palletizing, depalletizing, and pallet unitizing machinery 


None provided. 



(1 = Most 

Important) 









1 



Price 2 










Technology 

Service 

Britain Good Good Good Average 

Canada Average Good Good Average 

France Good Good Average Average 

Germany Good Excellent Average Average 


Japan Average Average Average Average 



Country Price 





Netherlands Somewhat Expensive 


Japan Average Prices 





Diageo buys direct and turnkey from manufacturers. Complete line installations are 

turnkey solutions. 


None listed. 



Representatives of the company regularly attend the PACK EXPO International and 

the Interpack in Dusseldorf, Germany. 


Company Name: Diageo Global Supply 

Contact: Kris Surya 

Position: Project Engineer 

Address: 283 Horner Avenue 

Etobicoke, Ontario 

M8Z 4Y4 

Telephone: 416-626-2000 

Fax: 416-252-4570 

E-mail: kriss.surya@diageo.com 


HIRAM WALKER & SONS LIMITED 



Sub Industry: Beverage Alcohol (Spirits) 

Location: Windsor, Ontario 

Size (sales): Wholly owned by British parent, 



Hiram Walker & Sons Limited is a wholly owned division of Allied Domecq PLC. 

Founded in 1858, Hiram Walker is known, primarily, for distilling the Canadian Club 

brand of whiskey. Canadian Club is the No. 1 premium Canadian whiskey brand 

outside of North America, and it is available in over 150 countries worldwide. Hiram 

Walker operates two major plants in North America: one in Ontario and one in 

Arkansas. The facility in Ontario is responsible for the world-wide production of 

Canadian Whisky (Canadian Club, Canadian Club Classic as well as many Corby 

brands for export), world-wide bottling of Lemon Hart Rum, as well as all large 

volume Corby and Walker domestic spirits for the Canadian market. 



Liquids Glass & PET bottles ranging in size from 50ml to 

1.75litre 



by Category 

Country of Origin 

Bottling line equipment Germany 

Capping Machinery French 

Cartoning Germany 

Case Erection Germany 

Laser Coding Machinery U.S. & Canada 

Conveying & Feeding Germany & Canada & 

U.S. 

Liquid Filling Germany 

Inspection Equipment U.S. & Canada 

Labeling Machinery Germany 

Palletize & Depalletize Canada 


At its Ontario plant, Hiram Walker has an extensive line modernization program 

currently underway. 




(1 = Most 

Important) 







Integration Service 1 

Costs of Materials and Maintenance 1 / 2 

Price 2 






Experience in Our Industry/Industry Sector 2 / 3 

Previous Experience with the Supplier/Brand 2 / 3 

Speed of Delivery/Delivery Wait Period 2 / 3 




Technology 

Britain Good 

Canada Average 

France Good 

Germany Excellent 

Italy Good 

United States Good 


Country Price 

Britain Average Prices 


France Average Prices 

Germany Excellent Prices 



Service 



Hiram Walker prefers to buy directly from manufacturers, but when it is not possible 

to buy direct the company buys through local distributors. The company utilizes a 

system of progress payments and penalties to ensure supplier and equipment 

performance. 

The company is moving away from the purchase of single pieces of equipment, and 

moving towards the purchase of turnkey installations from organizations that are 

system integrators. 


The main purchasing issue that concerns Hiram Walker is the extended period of 

time it takes to spec, to build, to install, and to fully commission a line. Other 

purchasing issues include the lack of flexibility in most sophisticated systems, and 

the need for integration services to program and synchronize all of the individual 

elements of a system during the commissioning phase of a line installation. 


Representatives of Hiram Walker regularly attend the PACK EXPO International. As 

part of their extensive information gathering process, company representatives also 

visit equipment manufacturers and sites where the machinery under consideration is 

already operating. 

The trade publications that are read on a regular basis include Packaging Digest and 

Beverage Industry News. 


Company Name: Hiram Walker & Sons Limited 

Contact: Martin Williams 

Position: VP, Project Delivery 

Address: 2072 Riverside Drive East 

Windsor, Ontario 

N8Y 4S5 

Telephone: 1-800-447-2609 

E-mail: martin.williams@adsw.com 


MARK ANTHONY CELLARS LIMITED 



Sub Industry: Beverage Alcohol (Wine & Spirit Based) 

Location: Kelowna, British Columbia 

Size (sales): C$350 million (2001 est.) 




Bottling Line Automation Equipment 

Mark Anthony Cellars Limited is a privately held manufacturer of beverage alcohol 

products. The company’s brand portfolio includes Mike’s Hard Lemonade and 

Mission Hill Family Estate wines. Located in the Okanagan Valley, the Mission Hill 

Family Estate winery is the largest in British Columbia, and with 850 acres of 

vineyards, it is the second largest in Canada. 



Liquids (wine & spirit based) Bottles 


Current Machinery Used Brand No. of Country of Origin Average 

by Category 

Units 

Age 

Bottling line machinery Assorted 20 United States, 

Canada, UK, 

Australia, Italy, 

German, and 

Japan 

7 


Continued automation over the next two years. 



(1 = Most 

Important) 




















Technology 

Service 

Britain Average Average Average Average 


France Average Average Average Average 

Germany Good Excellent Excellent Average 

Italy Good Good Good Very Poor 

Japan Good Excellent Excellent Average 



Country Price 








Mark Anthony Cellars prefers to buy direct from the manufacturer as much as 

possible. The company prefers terms that are 40% upon placing an order, 40% upon 

delivery, and 20% retained until Manufacturing Acceptance testing is complete. 


Lead times for delivery are a concern. The company generally purchases individual 

pieces of equipment. 


Representatives of Mark Anthony do not regularly attend trade shows, but they 

regularly read Canadian Packaging. 



Company Name: Mark Anthony Cellars Limited 

Contact: Rick Glab 

Position: Operations Manager 

Address: 1730 Mission Hill Road 

Kelowna, British Columbia 

V4T 2E4 

Telephone: 250-768-6424 

Fax: 250-768-5173 

E-mail: rglab@markanthony.com 


MOLSON 



Sub Industry: Beverage Alcohol (Beer) 


Size (net sales): C$2.515 billion (2003) 

Purchasing Potential: Confidential 

Molson is one of the world's largest brewers with operations in Canada, Brazil, and 

the United States. Founded in 1786, Molson is North America's oldest beer brand. Its 

brand portfolio includes Molson Canadian, Molson Export, Molson Dry, Rickard's as 

well as the Brazilian Kaiser and Bavaria brands. 



Liquids Bottles, cans, and kegs 


Against company policy to divulge confidential information. 


Against company policy to divulge confidential information. 



(1 = Most 

Important) 








Price 2 











German and Italian equipment suppliers are viewed positively. German equipment is 

known for its durability and precision. Italian equipment is known for being well built 

and having high speed. 

As a general impression, American equipment suppliers are viewed less positively 

because their equipment is expensive and not on the forefront of technology. 



Technology 

Service 


Germany Good Excellent Excellent Poor 

Italy Good Good Good Poor 

United States Poor Average Poor Average 


Country Price 


Germany Average 

Italy Average 



Molson requires performance guarantees, especially for throughput and quality, from 

its equipment suppliers, and it utilizes a system of holdbacks to ensure supplier and 

equipment performance. 


Depending upon the size of the project, Molson purchases both turnkey solutions and 

individual pieces of machinery. For example, big projects, such as a line renovation, 

are turnkey projects whereas small projects or upgrades generally involve the 

purchase of individual pieces of machinery. 

In addition, the lack of commercially available equipment to handle return glass and 

to conduct specialized inspections has forced Molson to have these types of 

equipment custom built. 



Representatives of Molson regularly attend the PACK EXPO International and 

PACex International in Toronto. 

The trade publications that are read on a regular basis include Packaging Strategies, 

Packaging Digest, Canadian Packaging, Engineering, and Process Controls and 

Instrumentation. 

10. Contact Information 

Company Name: Molson Inc. 

Contact: Dan Thiemann 

Position: Director of Packaging 

Address: 33 Carlingview Drive 

Etobicoke, ON 

M5A 2X4 

Telephone: 416-679-7552 

Fax: 416-798-8393 

E-mail: Dan.Thiemann@Molson.com 


MOTHER PARKERS TEA & COFFEE LTD 


Sub Industry: Tea & Coffee 

Location: Ajax, Ontario 

Size (sales): Over $C200 million 




Tea bagging machinery 


Founded in 1912, Mother Parker’s Tea & Coffee, Inc. is one of North America's 

largest family-owned tea, coffee, and instant coffee manufacturers. The company 

supplies both private label and branded tea and coffee products to distributors, 

retailers, and food service organizations, including many of North America’s leading 

retail grocers, office coffee and vending distributors, restaurants, airlines, 

convenience stores, fast food establishments, and doughnut chains. The company is 

the largest supplier of private brand tea and coffee in Canada as well as a private 

brand supplier to over 30 major U.S. grocery chains. The company’s range of 

products includes popular formats of regular ground and whole bean; flavored and 

gourmet coffee; regular and flavored instant coffee; hot and cold cappuccino-style 

beverages; regular, flavored specialty and herbal teas. The company has operations 

in North America, including Mississauga and Ajax Ontario; Montreal, Quebec, 

Palisades Park, New Jersey, and Fort Worth, Texas. 



Tea Tea bags 



Brand No. of 

by Category 

Units 

Tea bagging machines IMA 

16 

Bartell 

2 



Italy 

U.S. 

Mother Parker’s is planning to purchase IMA tea bagging machines in the near 

future. Incorporating new technology, the IMA machines are high-speed machines 

that can produce some new tea bag formats. 




(1 = Most 

Important) 


Price 1 
















German and Italian equipment suppliers are viewed positively whereas British 

equipment suppliers are viewed less positively. 



Technology 

Service 

Britain Average Poor Average Average 



Italy Good Good Good Average 

United States Good Good Good Average 


Country Price 








Historically, Mother Parker’s purchased individual pieces of equipment but recently 

they have been moving towards purchasing turnkey solutions. Purchases are 

generally made through local distributors. 


Machines need to be flexible to accommodate various product formats. 


Representatives of Mother Parker’s regularly attend the Pack Expo in Chicago and 

the PACex International in Toronto. 

The trade publications that are read include Powder and Bulk Engineering, Food in 

Canada, and Food Engineering. 


Company Name: Mother Parkers Tea & Coffee Ltd 

Contact: Bruce Smith 

Position: Engineering and Maintenance Manager 

Address: 144 Mills Road 

Ajax, Ontario 

L4A 4S5 

Telephone: 905-683-5080 

Fax: 905-683-5087 

E-mail: bsmith@mother-parkers.com 


SUN-RYPE PRODUCTS LIMITED 


Industry: Beverages (and Food) 

Sub Industry: Fruit Juices (and Fruit Snacks) 

Location: Kelowna, British Columbia 

Size (sales): C$104 million 




None 

Sun-Rype Products Limited is a beverage and food manufacturing company that 

employs approximately 400 people. The company is Western Canada's largest 

manufacturer and marketer of juice-based beverages and all-natural fruit snacks. The 

company manufactures a wide variety of products including Sun-Rype’s flagship Blue 

Label Apple Juice, fruit juice blends, Fruit to Go 100% fruit snacks, Energy to Go 

100% fruit energy bars, Fruit & Veggie bars, and Sun-Rype Organic fruit snacks. The 

company’s beverage products are sold primarily in Western Canada whereas its food 

products are sold throughout Canada. 



Aseptically packed pure fruit juices Tetra-boxes, cans, glass bottles, and plastic 

jugs 

Dried fruit snack bars Flow wrapped 


Current Machinery Used By Brand No. of Country of Average 

Category 


Form/fill/seal machinery – vertical Tetra-Pak 5 Sweden 2 

Case and tray forming, packing, Tetra-Pak 5 Sweden 2 

unpacking, closing and sealing WePackit 1 Canada

Conveying, feeding, orienting, 

placing and related machinery 

Form/fill/seal and wrapping 

machinery – horizontal; 


Mathews 3 USA 8 

Gln-Produkter 4 Sweden 2 

SIG 

3 Switzerland


Country Price 



Italy Average Prices 





Sun-Rype purchases equipment both directly and through Canadian Agents or 

distributors depending on the arrangements of the supplying company. Capital 

budgets are developed for each calendar year. Recommendations on equipment 

purchases are made by the Engineering Services and Production Departments, and 

are approved by senior management. Credit terms are often 30/30/30/10 depending 

on negotiated terms of the contract. 


Customs and transportation are purchasing issues of concern. Sun-Rype looks for 

turnkey situations where possible when it sources entire or large sections of 

production lines. 


Representatives of the company regularly attend PACK EXPO International, 

WestPack, and Anuga FoodTec. The trade journals that they regularly read include 

Canadian Packaging, Packaging Digest, Packaging World, Beverage World, and 

Manufacturing. 


Company Name: Sun-Rype Products Limited 

Contact: Robert Dick 

Position: VP of Manufacturing 

Address: 1165 Ethel Street 

Kelowna, British Columbia 

V1Y 2W4 

Telephone: 250-860-7973 

Fax: 250-762-3611 

E-mail: bdick@sunrype.com 


5.0 THE PHARMACEUTICAL AND PERSONAL CARE INDUSTRY 


In Canada, there is a great deal of overlap between the pharmaceutical products 

market and the personal care products market in that many companies operate in 

both segments simultaneously. The pharmaceutical and personal care products 

markets are dominated by leading multinational firms, which means that many of the 

manufacturers operating in Canada are wholly owned divisions of foreign 

multinational firms. Almost two-thirds of the pharmaceutical drugs sold in Canada are 

imported. In 2002, $C 8.010 billion dollars of prescription and non-prescription drugs 

were imported into Canada. 

The Canadian pharmaceutical manufacturing industry shipped goods of its own 

manufacture valued at $C6.793 billion in 2001. The industry is a high growth sector 

of the economy, as the value of its manufacturing shipments grew 24.6 per cent 

between 2000 and 2001. In 2001, the value of the industry's shipments accounted for 

approximately 1.2 percent of the value of Canada's total manufacturing shipments. 

Statistics Canada data for 2001, the last year for which complete industry data are 

available, indicate that the industry consisted of 257 establishments that employed 

25,013 people. 

The Canadian pharmaceutical industry comprises research dependent brand name 

drug manufacturers, which are largely foreign-owned multinationals, Canadianowned 

bio-pharmaceutical companies, and Canadian and foreign-owned generic 

drug manufacturers. In Canada, the large pharmaceutical companies are clustered in 

the Montreal and Toronto metropolitan areas, as are the majority of contract research 

and clinical trials organizations. In particular, Toronto is home to more than half of 

Canada’s brand name pharmaceutical manufacturers, and 80 percent of the 

country’s generic drug manufacturers. 

According to the Patented Medicine Prices Review Board, sales of human use 

pharmaceuticals, both prescription and over-the-counter, by all manufacturers in 

Canada totaled $C13.1 billion in 2002, a 13.9 percent increase over 2001 sales. The 

2002 total includes domestic sales and exports as well as the sale of imported 

products. Of the $C13.1 billion, patented pharmaceutical sales accounted for $C8.8 

billion and non-patented pharmaceutical sales totaled $C4.3 billion. Of the $C4.3 

billion non-patented pharmaceutical sales, non-patented brand name pharmaceutical 

sales accounted for $C2.9 billion and generic pharmaceutical sales accounted for 

$C1.4 billion. 

According to the Canadian Institute for Health Information, total private and public 

spending at the retail level on prescription and non-prescription drugs reached 

$C18.1 billion in 2002. The non-prescription drug category is composed of over-thecounter 

drugs and other personal health supplies. Prescription drug spending 

reached $C14.6 billion in 2002, which represented 80.3 percent of total private and 

public drug expenditures. Non-prescription drug spending reached $C3.6 billion in 

2002, which represented 19.7 percent of total private and public drug expenditures. 


According to IMS Health Canada data, 335 million prescriptions were filled in 2002, a 

7.2 percent increase over 2001. In Canada, generic pharmaceuticals were used to fill 

40.3 percent of all retail prescriptions in 2002. At the provincial level in 2002, the 

generic share of retail prescriptions filled ranged from a low of 35.7 percent in 

Quebec to a high of 46.1 percent in Saskatchewan. Information provided by the 

Canadian Generic Pharmaceutical Association indicates that the drugs produced by 

Apotex and Novopharm, two generic drug manufacturers, filled 24.9 percent of all 

retail prescriptions in 2002. 

Canada provides patent protection for 20 years for innovative products such as 

brand-name pharmaceuticals, although a brand-name drug is often on the market for 

less than 10 years. Once a brand-name drug no longer enjoys patent protection, 

generic drug manufacturers can develop and market their versions of the brandname 

product. In Canada, the use of generic drugs to fill prescriptions is driven by 

changes that have occurred in provincial and private sector drug programs, changes 

which have dictated the use of generic drugs as one method of constraining rising 

drug program costs. 

In 2001, the last year for which complete industry statistics are available, the 

personal care products industry shipped goods of their own manufacture valued at 

$C3.343 billion, which is a one per cent decrease over 2000. The industry’s 

shipments represent 0.6 percent of the total value of Canada’s manufacturing 

shipments in 2001. Statistics Canada data for 2001 indicate that the industry was 

composed of 403 establishments and that they employed 13,588 people. Two-thirds 

of the personal care products sold in Canada are imported. In 2002, $C3.204 billion 

dollars of personal care products were imported into Canada. Of the $C3.204 billion 

imported, $C1.643 billion were soaps and tooth pastes and other allied products and 

$C1.561 billion were bath oils, deodorants, shaving preparations, cosmetics, and 

perfumes. 


Ten leading Canadian pharmaceutical companies, which are ranked by annual sales 

revenue, are presented in the following table. 


Table 5.1: Ten Leading Pharmaceutical Companies in Canada 

Company Name 2002 Sales 

(C$ 000s) 

Ownership 

Pfizer Canada Inc. $1,793,000 Private (U.S.) 

Bayer Inc. 1,547,306 Private (U.S. & 

Germany) 

Biovail Corp. 1,237,199 Public (CDN) 

GlaxoSmithKline Inc. 1,185,551 Private (UK) 

Merck Frosst Canada & 

Co. 

985,264 Private (U.S.) 

AstraZeneca Canada 

Inc. 

893,000 Private (Netherlands) 

Abbott Laboratories Ltd. 803,840 Private (U.S.) 

Apotex Inc. 650,000 Private (CDN) 

Aventis Pharma Inc. 495,363 Private (France) 

Patheon Inc. 418,129 Public (CDN) 

Sources: National Post FP500-Canada’s Largest Corporations, June 2003; The Globe and 

Mail, Report on Business-The Top 1000 Companies, July 2003. 

Ten leading personal care companies operating in Canada, and the main product 

categories in which they produce packaged goods, are outlined in the table below. 

Table 5.2: Ten Leading Personal Care Companies Operating in Canada 

Company Name Ownership Cosmetics & Soaps & 

Toiletries Detergents 

Alberto-Culver Canada Inc. Private (U.S.) X 

Avon Canada Inc. Private (U.S.) X 

Colgate-Palmolive Canada 

Inc. 

Private (U.S.) X X 

Del Laboratories (Canada) 

Inc. 

Private (U.S.) X 

Estée Lauder Cosmetics 

Ltd. 


L’Oréal Canada Inc. Private 

(France) 

X 

Johnson & Johnson 

Canada 


SC Johnson Canada Private (U.S.) X X 

Procter & Gamble Canada Private (U.S.) X X 

Shaklee Canada Inc. Private (Japan) X X 

Source: Consultants’ calculation. 


Key pharmaceutical and personal care industry statistics for 2001, the last year for 

which complete industry data are available, are set out in the table below. 


Table 5.3: Key Pharmaceutical and Personal Care Industry Statistics, 2001 

NAICS 

Code 

Industry Description No. of 

Establishments 

325 Chemical Manufacturing 

No. of 

Employees 

Value of 

Shipments 

(C$ 000s) 

3254 Pharmaceutical & Medicine Mfg 257 25,013 $6,793,000 

32561 Soap and Cleaning Compound 

Mfg 

235 6,640 2,113,414 

32562 Toilet Preparation Mfg 168 6,948 1,229,171 

Subtotal Soap and Toilet Mfg 403 13,588 3,342,585 

Total Pharmaceutical, Soap & 

Toilet Mfg 

Source: Statistics Canada CANSIM II Database. 

660 38,601 $10,135,585 

The value of the pharmaceutical and personal care manufacturing industry’s 

shipments of goods of their own manufacture, for the years between 1998 and 2001, 

are presented in the table below. 

Table 5.4: Value of Pharmaceutical and Personal Care Industry Shipments, 

1998-2001 

NAICS Industry Description 1998 

Code 

(C$ 000s) 

325 Chemical 

Manufacturing 

3254 Pharmaceutical & 

Medicine Mfg 

1999 

(C$ 000s) 

2000 

(C$ 000s) 

2001 

(C$ 000s) 

$4,774,000 $4,931,000 $5,450,000 $6,793,000 

32561 Soap and Cleaning 

Compound Mfg 

1,895,000 2,026,000 2,226,000 2,113,000 

32562 Toilet Preparation Mfg 1,106,000 1,073,000 1,150,000 1,229,000 

Subtotal Soap and 

Toilet Mfg 

3,001,000 3,099,000 3,376,000 3,342,000 

Total Pharmaceutical, 

Soap & Toilet Mfg 


$7,775,000 $8,030,00 $8,826,00 $10,135,000 

Production statistics for some pharmaceutical and personal care products produced 

in Canada are presented in the table on the following page. The most recent 

production data available is 1999 but Statistics Canada is not scheduled to release 

2000 and 2001 data until January 2004. 


Table 5.5: Production Statistics for Some Pharmaceutical and Personal Care 

Products, 1997-1999 

Product Description 

Pharmaceuticals 

1997 

(C$000s) 

Antibiotics (in measured dosage) 

$72,000 

Antidepressants and tranquilizers 

92,800 

Antihypertensive agents 

377,900 

Dermatological preparations (in measured 

dosage) 

Personal Care Products 

Lipstick 

61,400 

Eye shadow 

$70,800 

Mascara 

23,000 

Sunscreen preparations 

13,000 

Cleansing creams and lotions 

40,200 

Moisturizing creams and lotions 

45,500 

All purpose creams and lotions 

49,100 

Shampoos 

31,500 

Hair lacquers (hair sprays) 

97,000 

Hair coloring 

24,500 

Cream rinse and conditioners 

25,400 

Styling gels and mousses 

38,700 

Room deodorizers 

23,900 

Washing & cleaning preparations, packaged for 73,600 

retail sale 

78,800 

Baby diapers 

240,400 


5.4 EXPORTS 

1998 

(C$000s) 

$66,900 

94,800 

463,600 

86,900 

$61,600 

20,900 

28,400 

15,000 

34,800 

51,100 

26,400 

97,300 

22,100 

24,200 

34,000 

22,100 

54,300 

54,900 

212,000 

1999 

(C$000s) 


$92,600 

124,400 

368,900 

110,300 

Confidential 

Confidential 

Confidential 

31,100 

48,500 

76,100 

42,300 

103,100 

28,800 

Confidential 

Confidential 

25,500 

59,100 

Confidential 

Confidential 

The value of Canada’s total exports of pharmaceutical and personal care products for 

the years 1998 to 2002 are set out in the table below. 

Table 5.6: Total Exports of the Pharmaceutical and Personal Care Products 

Industry, 1998- 2002 


(C$ 000s) (C$ 000s) (C$ 000s) (C$ 000s) (C$ 000s) 

Pharmaceutical & Medicine Mfg $1,562,000 $1,681,000 $1,853,000 $2,307,000 $2,551,000 

Soap and Cleaning Compound 

Mfg. 

$530,264 $570,840 $554,024 $639,864 $707,654 

Toilet Preparation Mfg. 580,904 617,157 741,810 890,084 994,193 

Subtotal Soap & Toilet Mfg $1,111,168 $1,187,997 $1,295,834 $1,529,948 $1,701,847 

Total Exports $2,675,166 $2,870,996 $3,150,834 $3,838,949 $4,254,849 


Canada’s top ten pharmaceutical product export destinations for 2002 are outlined in 

the following table.

Table 5.7: Top Ten Pharmaceutical Export Destinations, 2002 


% of 




Ireland 47,013 1.8% 

Netherlands 34,433 1.3% 

Italy 29,986 1.2% 

Belgium 29,056 1.1% 

JAPAN 

27,180 1.1% 

Germany 24,883 1.0% 


Denmark 17,926 0.7% 

Singapore 17,145 0.7% 



Canada’s top ten personal care product export destinations for 2002 are outlined in 

the following table. 

Table 5.8: Top Ten Personal Care Product Export Destinations, 2002 


% of 




Japan 31,975 1.9% 

France 20,939 1.2% 


Belgium 15,507 0.9% 

TAIWAN (TAIPEI) 

15,446 0.9% 

Hong Kong 14,946 0.9% 

Portugal 7,037 0.4% 


Korea, South 4,602 0.3% 





ESTEE LAUDER COSMETICS LIMITED 

Industry: Personal Care 

Sub Industry: Cosmetics 


Size (sales): Wholly owned by U.S. parent, 

sales not reported separately 

Purchasing Potential: Confidential 

Specific Business Confidential 

OPPORTUNITIES: 


Estee Lauder Cosmetics Limited is a worldwide skin care, hair care, fragrance and 

cosmetic products’ manufacturer and retailer, with annual sales approaching U.S.$5 

billion. Each Estee Lauder manufacturing facility produces a range of products for the 

whole corporation. Of the two manufacturing plants Estee Lauder operates in 

Canada, the Toronto plant has the global mandate to produce mascara for Estee 

Lauder worldwide. 

2. Main Product Produced and How It Is Packed: 


Mascara Rigid Plastic Tubes 


It is against company policy to divulge their current compliment of installed packaging 

machinery. 


The company is expanding the manufacturing operations at this plant, but it is 

against company policy to divulge the details. 



(1 = Most 

Important) 


Price 2 










3 








Positive attitudes are held toward the following countries: Germany, Italy, England, 

France, United States, Canada, Spain, Australia, Japan, Switzerland, Austria, and 

Sweden. 

Negative attitudes are held toward the following countries: China and Russia. 



Technology 

Service 

Britain Excellent Excellent Excellent Good 


France Excellent Excellent Excellent Average 


Italy Excellent Excellent Excellent Good 

Japan Excellent Excellent Excellent Average 

Switzerland Excellent Excellent Excellent Average 



Country Price 










Estee Lauder buys both direct and from distributors. Purchase decisions are made at 

both the plant and corporate engineering level. Purchase planning is initiated at the 

plant level, usually to fill a need or a shortfall. They buy with cash only, and they don’t 

use outside financing. 



Lead times for new equipment and change parts are the biggest hurdles right now. 

The company is moving more towards turnkey situations because resources at the 

plant level are strained when performing line integrations. 


Representatives of the company regularly attend PACK EXPO International and the 

PACex in Toronto. 


Company Name: Estee Lauder Cosmetics Limited 

Contact: Lew Torok 

Position: Engineering Supervisor 

Address: 161 Commander Blvd. 


M1S 3K9 

Telephone: 416-297-3344 

Fax: 416-292-3495 

E-mail: ltorok@estee.ca 


MCNEIL CONSUMER HEALTHCARE CANADA 


Industry: Pharmaceuticals 

Sub Industry: Nonprescription pharmaceuticals 

Location: Guelph, Ontario 

Size (sales): Wholly owned by U.S. parent, 


Purchasing Potential: CDN$2million per year 

McNeil Consumer Healthcare Canada is a member of the Johnson & Johnson family 

of companies. Employing approximately 400 people, McNeil is one of Canada’s 

leading nonprescription, over-the-counter (OTC), pharmaceutical producers. The 

nonprescription pharmaceuticals it produces include complete lines of TYLENOL® 

acetaminophen and MOTRIN® ibuprofen products for adults and children. 



Liquids All liquids are packed in polypropylene bottles 

and cartons, except for the easy-open-bottle 

format. 

Solids (tablets and caplets) All solids are packed in polypropylene bottles and 

cartons. 


McNeal has 100 pieces of equipment organized into 4 high-speed automated 

packaging lines, which have a throughput rated at 200 bottles per minute each. 


On average, McNeil spends CDN$2 million per year on packaging machinery. 

Current projects include the installation of a cartoner/case packer, pressure sensitive 

labeler, and dosage cup. Next year’s plans includes the installation of another 

cartoner/case packer. 



(1 = Most 

Important) 


Price 1 

















German, Italian, and U.S. equipment suppliers are viewed positively because they 

produce quality equipment using up-to-date technology. Even though the European 

suppliers are viewed positively, there can be problems. For example, the local supply 

of Italian parts is fine as long as the parts are available, but for serious technical 

support one has to deal directly with the Italian manufacturer, which introduces time 

and communication delays into the process as they only speak Italian. 

Canadian suppliers are viewed less positively because of poor service, poor 

equipment quality, and poor equipment availability. For example, there are no 

Canadian suppliers of cartoners or case packers that meet McNeil’s requirements for 

high speed, capacity, and durability. 



Technology 

Service 

Canada Poor Poor Average Poor 

Germany Good Good Good Good 

Italy Average Average Good Very Poor 

United States Good Good Good Average 


Country Price 







Even though McNeil is a division of Johnson & Johnson, it is authorized to spec and 

to buy equipment from suppliers of its choice. Equipment is financed through 

corporate channels. 



The main supply problem McNeil faces is that there are a limited number of suppliers 

that can meet their requirements for speed, capacity, and durability. McNeil does not 

necessarily look for turnkey solutions, as it has bought individual pieces of equipment 

and put them together in the past. 


Representatives of McNeil regularly attend PACK EXPO International, occasionally 

attend PACK EXPO Las Vegas, and infrequently attend the PACex International in 

Toronto. 

10. Contact Information 

Company Name: McNeil Consumer Healthcare 

Contact: David Jones 

Position: Corporate Engineering Manager 

Address: 890 Woodland Road West 

Guelph, ON N1K 1A5 

Telephone: 519-826-6250 

Fax: 519-826-6200 

E-mail: djones9@mcca.jnj.com 


MERCK FROSST CANADA & CO 


Industry: Pharmaceuticals 

Sub Industry: Prescription pharmaceuticals 

Location: Kirkland, Quebec 

Size (sales): $C985million (2002) 




Blister pack equipment 

Merck Frosst Canada & Co. is one of Canada’s leading research-based 

pharmaceutical companies. Merck Frosst employs more than 1,900 people in 

Canada including 300 scientific personnel. The Merck Frosst Centre for Therapeutic 

Research, one of the largest biomedical research facilities in Canada, has a mandate 

to discover new therapies for the treatment of respiratory, inflammatory and other 

diseases. Merck Frosst markets an extensive line of cardiovascular products for high 

blood pressure, elevated cholesterol and heart failure as well as a broad range of 

vaccines. Merck Frosst is a recognized leader in the treatment of arthritis, asthma, 

osteoporosis, HIV/AIDS, glaucoma, prostate disease, migraines and infectious 

diseases. Merck Frosst Canada is a subsidiary of Merck & Co., Inc. of Whitehouse 

Station, New Jersey, a publicly traded company on the New York Stock Exchange. 



Solids (tablets and capsules) Blister packs & bottles 



by Category 


Bottling line equipment Canada & U.S. 

Blister pack equipment Germany 


To meet the increased demand for blister packs, Merck is planning to install two new 

high-speed blister pack lines within the next two years. 

5. Key Factors in Purchase Decisions 


(1 = Most 

Important) 









1 



Documentation/Validation 1 

Price 2 








German and Italian equipment suppliers are viewed positively. The German and 

Italian equipment is generally considered to be more reliable and more expensive 

than comparable Canadian and U.S. machinery. 



Technology 

Service 



Germany Excellent Excellent Excellent Excellent 

Italy Excellent Excellent Excellent Excellent 

Netherlands Excellent Excellent Excellent Excellent 




Country Price 


Canada Average Pricing 


Netherlands Somewhat Expensive 



United States Average Pricing 



Large projects, such as the installation of new lines, are turnkey solutions. Merck also 

purchases individual pieces of equipment to replace and update older pieces. 

Corporate headquarters in the United States approves all major turnkey projects as 

well as any expenditure above $500,000. 


None listed. 


Representatives of Merck regularly attend PACK EXPO International. They also 

attend the Interpack in Düsseldorf, Germany, every three years. 

The trade publications that are read include Journal of Automation, Packaging 

Digest, and Engineering. 


Company Name: Merck Frosst Canada & Co. 

Contact: Yves Belanger 

Position: Packaging Specialist 

Address: 16711 Trans-Canada Hwy 

Kirkland, Quebec 

H9H 3L1 

Telephone: 514-428-3315 

Fax: 514-428-3997 

E-mail: yves_belanger@merek.com

Canadian Packaging Machinery Market Research Report - PMMI

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