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January 27, 2017

Gay Lea Foods forecasts growing sales, profitability in 2017

Gay Lea Foods, the Canada-based dairy cooperative, expects to see its sales and profitability improve in 2017 after "record" numbers last year.

By Dean Best

Gay Lea Foods, the Canada-based dairy cooperative, expects to see its sales and profitability improve in 2017 after “record” numbers last year.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

Without providing specific forecasts, The company said it expects its top and bottom lines will grow this year as it plans to expand its food and ingredients arms, as well as invest in “innovative and industry-leading products”.

In 2016, Gay Lea Foods generated sales of CAD715m, up from CAD664.1m in 2015, a spokesperson said. Profits stood at CAD30.2m, compared to CAD25.7m a year earlier. The spokesperson did not specify which profit metric had been provided.

During 2016, Gay Lea Foods acquired butter maker Stirling Creamery, set up a joint venture with Canadian dairy ingredients supplier Vitalus Nutrition and buy Ontario cheese maker Black River Cheese Company. Gay Lea Foods also snapped up a minority stake in goat milk processor Mariposa Dairy.

Asked how Gay Lea Foods plans to expand its food and ingredients arms, a spokesperson pointed to plans to invest CAD140m over four years to set up a “nutraceutical-grade dairy ingredients hub” in Canada.

The first phase of the project, which starts this year, will see Gay Lea Foods build a research and development centre in Hamilton, Ontario. The first phase also includes upgrades and expansion at Gay Lea Foods’ food manufacturing facilities in the Toronto area to “increase our capabilities and competitiveness, improving cost efficiencies, while working to reduce our environmental footprint”, the company said in a statement.

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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