90 replies to this topic

[sdwright.vic]

Grocery stores are 5%

[spanky123]

He likely made them a deal they could not refuse.    

 

Perhaps he took some lessons from AK on the 'loan to own' business.

[lanforod]

i like country grocer, please stay away 

[Mixed365]

I do not think there is much profit margin in food stores.  That probably means we have several stores in town that lose money every month, but they stay open just to keep market share.

 

+1

Grocery store margins are very low. 

[sdwright.vic]

Grocery stores are 5%

...Profit Margin

[bluefox]

He already owned a piece of it.  Knowing the way he does business, for all we know he acquired it automatically in some fashion that his previous business agreement set out.  ie. I buy in with $10M now.  If in 5 years you do not hit XYZ sales target, then I take the rest over at ABC price.  He's been known to do that type of a deal.  A bit of a "I'll strangle you now, or we can talk about a possible strangle in 5 years.  How would you like to proceed?"

 

As far as a deal with a clause like you described, the timing would also make sense, as he first invested in February 2012.

 

Pattison invests in rival Quality Foods - Nanaimo News

[Kapten Kapsell]

It's too bad that Pattison isn't putting this store @ 1008 Pandora (instead of Save-On Foods)...

[Mike K.]

Who knows, that might end up being the case once the dust settles. Still two years away.

[UrbanRail]

The downside to all these buy ups and mergers is that eventually it will lead to having one or a few mega companies that control all grocery stores, kind of like our food distribution system in North America where I think 5 mega corporations have control over the majority of our food.

[VicHockeyFan]

The downside to all these buy ups and mergers is that eventually it will lead to having one or a few mega companies that control all grocery stores, kind of like our food distribution system in North America where I think 5 mega corporations have control over the majority of our food.

 

They have "control" over our food?  But there are hundreds of thousands of North American food producers.  So aren't we safe that way?

 

Here's an interesting 2012 graphic BTW:

 

 

 

http://www.ufcw.ca/i...temid=6&lang=en

[lanforod]

There are a few huge companies though that control a massive amount of production. Think Pepsi, Coke, Kraft, General Mills.

[sdwright.vic]

^ Procter & Gamble.... YUGE!!

[shoeflack]

The illusion of choice...

 

[VicHockeyFan]

^ Ya, that's a lot of packaged and processed foods, but it's still only a small portion of the brands available.  YES, they may account for a huge percentage of overall sales, but there are still lots of other suppliers.

 

And apart from consistency (you know what you are getting), I'm not sure any of the brands above are all that cherished.

[shoeflack]

If none of those brands are all that cherished, I would challenge you to name one brand that is. Many of those brands above are among the most cherished and recognizable in the world.

[VicHockeyFan]

If none of those brands are all that cherished, I would challenge you to name one brand that is. Many of those brands above are among the most cherished and recognizable in the world.

 

In Canada, Tim Horton, Molson, McCain. 

[Mike K.]

Philip Morris owns Kraft, btw, and the ownership of the brands we consider top-level brands (Kraft, etc.,) are often themselves only branches of a much larger tree.

[shoeflack]

Philip Morris owns Kraft, btw, and the ownership of the brands we consider top-level brands (Kraft, etc.,) are often themselves only branches of a much larger tree.

 

Nope, not since 2007. Kraft Heinz is the top level company now. As are the other top-level companies on the image. Phillip Morris divested their stake to shareholders. Now Warren Buffet's Berkshire Hathaway and Tim Horton's owner 3G Capital are the primary shareholders.

[Mike K.]

Oh, well woulda ya look at that.

[VicHockeyFan]

The illusion of choice...

 

 

 

But only 5 of those companies are in the top-10 by sales.

 

http://www.foodproce...0/top-100-2014/