Loblaw to launch Small Supplier Program

With consumer demand for locally grown products on the rise, Canadian grocery retailer Loblaw Cos. is set to introduce a new Small Supplier Program that it says will provide additional support and resources to more than a thousand existing Canadian growers, bakers, vintners and local product creators. The program will also make it easier for new suppliers to work with Loblaw, according to a news release.

Slated for a January 2024 launch, the program is designed to empower and support new and existing small suppliers, helping their businesses thrive and reach more customers through Loblaw's stores, the release said.

By providing faster payments, streamlined processes, a six-month guaranteed listing period and support, the program seeks to make running a small business simpler when working with Loblaw, according to the release. In doing so, the company is affording suppliers opportunity to grow their businesses and ultimately provide consumers with greater choice on shelves nationwide, the release said.

"Small businesses are the lifeblood of our economy, and the path to this country's successful future," Per Bank, Loblaw president and CEO, said in the release. "Every day, we experience the terrific power of innovation in many family-owned, traditional and local producers and we want to assist their ability to develop new products and generate a truly diverse and inspirational range. By making the onboarding and retailing process easier for small businesses, our goal is to reduce their time and costs, to the benefit of all Canadian customers."

According to the release, key highlights of Loblaw's Small Supplier Program include:

• Faster payments — Loblaw says it will reduce payment terms to up to a maximum of seven days for new and existing small suppliers. This improvement will enhance cash flow for suppliers, enabling them to reinvest in their businesses as they see fit. This change will especially support Loblaw’s farmer partners and the unique challenges of managing the growing season.
• Dedicated small supplier support — Loblaw says it wants to give its small suppliers the support they need to succeed. This new approach will include dedicated team members at Loblaw's office and regionally, as well as training and resources to help small suppliers thrive.
• Assistance for small suppliers — The process of getting products on retailer shelves can be complicated. Loblaw says it is committed to making this easier for small suppliers, including adjustments to supply chain programs and subsidizing retail industry fees to provide small suppliers with an opportunity to progressively stabilize and grow more effectively.
• Six-month guaranteed listing period for new small suppliers — Building and growing a solid customer base can take time, which is why Loblaw's new program provides a six-month on-shelf commitment, while waiving associated listing fees, giving new suppliers the opportunity to test their products with greater ease.

"The fresh fruit and vegetable industry is a fast-paced business environment which represents many small local growers and business owners," Ron Lemaire, president of the Canadian Produce Marketing Association, said in the release. "Providing these small businesses with the opportunity to access the market using this program can be a catalyst to their success."

The Ontario-based Loblaw has an existing roster of over 1,000 small businesses. This includes growers, bakers, vintners and product creators, who fulfill customer demand for local favorites and freshness, the release said.

"Running and developing a small business includes plenty of hard work and lots of administration. Our Small Supplier Program provides a constructive, meaningful and simple way for small suppliers who need it the most to get their products onto our shelves in order to thrive and flourish," Bank added.

With approximately 2 billion transactions each year in its network of 2,500 stores and national e-commerce options, Loblaw brings food, pharmacy, beauty, apparel and financial services to customers through brands including President's Choice, No Name, Loblaws, Shoppers Drug Mart, No Frills, Real Canadian Superstore, T&T, Joe Fresh, PC Express and PC Financial.