Roscoe suggested that light started to dim in 2007, when Nova Scotia-based Sobey’s purchased Thrifty Foods for $260 million from the Campbell family.
He said it didn’t take long for the relationship between the grocer and Island Bakery to change.
Island Bakery had grown alongside Thrifty Foods (it had produced Thrifty Foods-branded hot dog and hamburger buns and other products) and when Thrifty Foods expanded so did Island Bakery.
“At our height we had more than 40 employees and were delivering as far as Campbell River five days a week,” said Roscoe. “And we did some deliveries in Vancouver for Thrifty Foods. As they grew, so did we and we reached to Vancouver and delivered to their stores there.”
The symbiotic relationship led to Island Bakery building the Cobble Hill facility in 1999 to handle the business as well as its expanding portfolio of restaurants, smaller retailers and institutions.
But the in-house deal with Sobeys dried up and Island Bakery saw its shelf space greatly reduced.
Roscoe said their shelf space was cut in half and then gradually reduced to just a few feet per store as Sobeys had to accommodate the agreements it had made with national brands that required a certain level of exclusivity.
“We’ve lost millions in sales since Sobeys took over,” he said.
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