George Weston Ltd.
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George Weston Limited, often referred to as Weston or Weston's, is a
Canadian Canadians () are people identified with the country of Canada. This connection may be residential, legal, historical or cultural. For most Canadians, many (or all) of these connections exist and are collectively the source of their being ''C ...
holding company A holding company is a company whose primary business is holding a controlling interest in the Security (finance), securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own Share ...
. Founded by
George Weston George Weston (March 23, 1864 – April 6, 1924) was an American-born Canadian businessman and the founder of George Weston Limited. He worked on a Canadian bread factory in Toronto. Weston began his career at the age of 12 as a baker's apprenti ...
in 1882, the company today consists of the Choice Properties
real estate investment trust A real estate investment trust (REIT, pronounced "reet") is a company that owns, and in most cases operates, income-producing real estate. REITs own many types of real estate, including office and apartment buildings, studios, warehouses, hos ...
and
Loblaw Companies Limited Loblaw Companies Limited is a Canadian retailer encompassing corporate and franchise supermarkets operating under 22 regional and market-segment banners (including Loblaws), as well as pharmacies, banking and apparel. Loblaw operates a private ...
, Canada's largest supermarket retailer, in which it maintains a
controlling interest A controlling interest is an ownership interest in a corporation with enough voting stock shares to prevail in any stockholders' motion. A majority of voting shares (over 50%) is always a controlling interest. When a party holds less than the maj ...
. The company is majority owned by
Wittington Investments Wittington Investments Limited is the name of two privately owned holding companies, one based in Britain, the other in Canada. Both companies are controlled by the Weston family. Through these holding companies, the Weston family control some o ...
, Ltd Canada, a holding company that the
Weston family The Weston family is a prominent family of businesspeople that was founded in Canada and eventually developed global business interests, primarily in the food and retail sectors. The family operations began with the purchase of a bakery in 1884 b ...
are the controlling share holders in. Retail brands include
President's Choice President's Choice (Canadian French, French: le Choix du Président) or PC is a line of grocery products and services offered by the Canada-based Loblaw Companies, Loblaw Companies Ltd. History President's Blend The first President's Ch ...
,
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and
Joe Fresh Joe Fresh is a Canadian fashion brand and retail chain created by designer Joe Mimran for Canadian food distributor Loblaw Companies, Loblaw Companies Limited. It was formed in 2006. The label includes adult and children's wear, shoes, handbags, ...
. The former Weston Bakeries division, which owned the brands
Wonder Wonder may refer to: Arts and media Film * ''Wonder'' (film), a 2017 drama based on the R. J. Palacio novel * ''The Wonder'' (film), a 2022 drama based on the Emma Donoghue novel * Wonder, a character in the 2006 American family film ''Z ...
, Country Harvest, D'Italiano, Ready Bake and Gadoua, was sold off to FGF Brands in 2022.


History


Bread route

In 1882,
Toronto Toronto ( , locally pronounced or ) is the List of the largest municipalities in Canada by population, most populous city in Canada. It is the capital city of the Provinces and territories of Canada, Canadian province of Ontario. With a p ...
bread salesman
George Weston George Weston (March 23, 1864 – April 6, 1924) was an American-born Canadian businessman and the founder of George Weston Limited. He worked on a Canadian bread factory in Toronto. Weston began his career at the age of 12 as a baker's apprenti ...
, who got his start at the age of 12 as a baker's apprentice, went into business for himself when he bought a bread route from his employer, G.H. Bowen. Two years later, Weston bought out Bowen's Sullivan Street bakery and began baking and delivering his own bread. His first employee was Charles Upshall, another young baker, and the two worked long hours baking and delivering
bread Bread is a baked food product made from water, flour, and often yeast. It is a staple food across the world, particularly in Europe and the Middle East. Throughout recorded history and around the world, it has been an important part of many cu ...
. Weston's business prospered, particularly with the development of his "Real Home Made Bread," made from a combination of
Manitoba Manitoba is a Provinces and territories of Canada, province of Canada at the Centre of Canada, longitudinal centre of the country. It is Canada's Population of Canada by province and territory, fifth-most populous province, with a population ...
No. 1 Hard Wheat and
Ontario Ontario is the southernmost Provinces and territories of Canada, province of Canada. Located in Central Canada, Ontario is the Population of Canada by province and territory, country's most populous province. As of the 2021 Canadian census, it ...
Fall wheat. His bakery underwent at least four expansions. At a time when many bakers were reluctant to adopt new technology, believing it adversely affected the taste and quality of their bread, Weston began introducing modern equipment to automate the baking process. "He has not spared expense getting in the latest designs of machinery to mix his dough," proclaimed one newspaper ad. Eventually, he renamed his bakery on Sullivan Street the "G. Weston’s Bread Factory."


Model Bakery

In October 1897, George Weston unveiled his "Model Bakery", Canada's largest and most modern bread factory, at the corner of Soho and Phoebe streets in
Toronto Toronto ( , locally pronounced or ) is the List of the largest municipalities in Canada by population, most populous city in Canada. It is the capital city of the Provinces and territories of Canada, Canadian province of Ontario. With a p ...
. Newspaper reports told of how Weston had travelled to other countries to inspect the latest in baking technology and that his new establishment represented the best of what he had seen. Not only was the factory hailed for its efficiency and cleanliness, but also its capacity to turn out thousands of loaves of bread:
Remember that bread alone is made in this immense factory, and such bread it is that has made the name of its maker famous. Over 3200 large loaves are turned out on an average daily, but the factory has a capacity of 6,500 loaves. One may judge the largeness of the business done weekly when it takes nearly three hundred barrels of flour to supply the weekly demand. Two teams are kept busy all day Friday and Saturday hauling flour to supply the week’s needs.
Although the Model Bakery was well received by the Toronto press, its appearance resulted in a
price war A price war is a form of market competition in which companies within an industry engage in aggressive pricing activity "characterized by the repeated cutting of prices below those of competitors". This leads to a cycle, where each competitor att ...
, apparently initiated by the city's other bakers. On hearing that competitors were offering cut-rate bread – contrary to a local bakers’ agreement that set a standard price for a loaf of bread – George Weston left the bakers' association and lowered his prices. In retaliation, the competition dropped what they charged at the wholesale level in an apparent attempt to fill store shelves with their bread. In spite of the price war, the Model Bakery continued to expand production such that a year later business had increased by 78 percent. Less than two years later, George Weston was selling his bread to 38 cities and towns beyond Toronto's borders. By 1901, the factory's output had reached 10,000 large loaves a day and its bread was shipped to over 100 communities throughout Ontario. By 1899, Weston had also established in the town of
Oshawa Oshawa is a city in Ontario, Canada, on the Lake Ontario shoreline. It lies in Southern Ontario, approximately east of downtown Toronto. It is commonly viewed as the eastern anchor of the Greater Toronto Area and of the Golden Horseshoe. It ...
, northeast of Toronto, a branch bakeshop, which he described as a "miniature Model Bakery", for the production of bread. While the Model Bakery established George Weston as Canada's biggest baker, he had already begun to move beyond bread into other lines of baked goods. By 1897, he had set up a separate shop for the making of
cake Cake is a flour confection usually made from flour, sugar, and other ingredients and is usually baked. In their oldest forms, cakes were modifications of bread, but cakes now cover a wide range of preparations that can be simple or elabor ...
s,
crumpet A crumpet () is a small griddle bread made from an unsweetened batter of water or milk, flour, and yeast, popular in the United Kingdom, Australia, Canada, New Zealand, and South Africa. Historically, crumpets are also regionally known as pik ...
s,
pastries Pastry refers to a variety of doughs (often enriched with fat or eggs), as well as the sweet and savoury baked goods made from them. The dough may be accordingly called pastry dough for clarity. Sweetened pastries are often described as '' bak ...
and
bun A bun is a type of bread that is round and small enough that it can generally be eaten hand-held. Whether a bun is considered sweetened or unsweetened differs between countries: it is considered sweetened in the United Kingdom, a savory bread in ...
s. Then, early in the new century, Weston began making
biscuit A biscuit is a flour-based baked food item. Biscuits are typically hard, flat, and unleavened. They are usually sweet and may be made with sugar, chocolate, icing, jam, ginger, or cinnamon. They can also be savoury, similar to crackers. ...
s and sodas. While the bread business was very competitive and typically low
margin Margin may refer to: Physical or graphical edges *Margin (typography), the white space that surrounds the content of a page * Continental margin, the zone of the ocean floor that separates the thin oceanic crust from thick continental crust *Leaf ...
, biscuits offered higher margins. Within a few years, the Model Bakery had a dozen salesmen taking orders for Weston's biscuits from merchants throughout Ontario. In promoting his new vanilla wafer biscuits, Weston employed a form of early direct marketing. From a decorative bread wagon, salesmen handed out free samples of the new biscuits and told housewives to ask for them at their grocer's. In 1901, George Weston merged with J.L. Spink, a flour mill operator at Pickering, Ontario, to form the Model Bakery Company. The amalgamation soon raised concerns, though, that the new partnership would result in higher bread prices. In a letter to local newspapers, Weston tried to allay fears of a "Bread Trust" and asserted that rather than an attempt to destroy competition that the merger would reduce the price of bread by cutting out the middleman's profit:
... we are believers in honest competition. Some bakers are endeavouring to fill the minds of the grocers, and the public in general, with the fact that we intend to get control of the bread baking business for the purpose of raising the price of bread to consumers. Now, I wish to give this a straight denial. By the amalgamation of these two concerns, the mill and the bakery, we are going to lessen our expenses, and the public are going to reap the advantage.
Weston further contended that the new venture would ensure the very choicest flour for the Model Bakery and its bread. But while the Weston-Spink partnership lasted five years, for reasons unknown it was eventually dissolved and the baker and miller went their separate ways.


Canada Bread

In 1911, George Weston entered into another merger, this time with fellow bakers in
Toronto Toronto ( , locally pronounced or ) is the List of the largest municipalities in Canada by population, most populous city in Canada. It is the capital city of the Provinces and territories of Canada, Canadian province of Ontario. With a p ...
,
Montreal Montreal is the List of towns in Quebec, largest city in the Provinces and territories of Canada, province of Quebec, the List of the largest municipalities in Canada by population, second-largest in Canada, and the List of North American cit ...
and
Winnipeg Winnipeg () is the capital and largest city of the Provinces and territories of Canada, Canadian province of Manitoba. It is centred on the confluence of the Red River of the North, Red and Assiniboine River, Assiniboine rivers. , Winnipeg h ...
, to form the
Canada Bread Company Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, making it the world's second-largest country by total area, with the ...
. The Model Bakery became part of the assets of Canada Bread and a new Weston's Biscuit Factory went into production at the corner of Peter and
Richmond Richmond most often refers to: * Richmond, British Columbia, a city in Canada * Richmond, California, a city in the United States * Richmond, London, a town in the London Borough of Richmond upon Thames, England * Richmond, North Yorkshire, a town ...
streets in Toronto. Meanwhile, the Canada Bread partners agreed to stay out of the bread making business for at least the next ten years. With the expiration of that non-compete clause, and at the urging of former customers who complained about the quality of the city's bread, George Weston re-entered the bread business in 1921.


World War I

As World War I dragged on, various shortages arose and some biscuit lines had to be discontinued. In spite of those difficulties the company remained profitable. But with the tragic loss of a youngest son and concern that his eldest son Garfield might not return from overseas duty as a soldier in the
Canadian Expeditionary Force The Canadian Expeditionary Force (CEF; French: ''Corps expéditionnaire canadien'') was the expeditionary warfare, expeditionary field force of Canada during the First World War. It was formed on August 15, 1914, following United Kingdom declarat ...
, George Weston considered selling the company to competitor Christie, Brown and Company. A letter from Garfield, from the trenches of war-torn
France France, officially the French Republic, is a country located primarily in Western Europe. Overseas France, Its overseas regions and territories include French Guiana in South America, Saint Pierre and Miquelon in the Atlantic Ocean#North Atlan ...
, in which he asked his father to hold on until his return home, convinced George Weston not to sell his business.


English Quality Biscuits

In 1922, George and Garfield Weston undertook a new and somewhat risky venture with the introduction of "English Quality Biscuits." While in
England England is a Countries of the United Kingdom, country that is part of the United Kingdom. It is located on the island of Great Britain, of which it covers about 62%, and List of islands of England, more than 100 smaller adjacent islands. It ...
as a young Canadian soldier, Garfield had toured the world-famous British biscuit factories and came away convinced that a similar product could be manufactured and successfully marketed in Canada. "After the
armistice An armistice is a formal agreement of warring parties to stop fighting. It is not necessarily the end of a war, as it may constitute only a cessation of hostilities while an attempt is made to negotiate a lasting peace. It is derived from t ...
, he convinced his skeptical father to import machines to make English-style cookies in Canada." In addition to importing biscuit making ovens all the way from England, the company brought master baker William Doyle from London. That year, Weston's English Quality Biscuits were launched with an advertising campaign that included an elaborate display at the
Canadian National Exhibition The Canadian National Exhibition (CNE), also known as The Exhibition or The Ex, is an annual fair that takes place at Exhibition Place in Toronto, Ontario, Canada, on the third Friday of August leading up to and including Labour Day (Canada), ...
in Toronto:
This unique exhibit is the method chosen by Weston’s to acquaint Exhibition visitors with the fact that they are now making, right here in Toronto, biscuits equal in every respect to the finest imported English lines – the standard of the world. English master bakers and English making machines have been installed at Weston’s new English Biscuit Factory, and the great opportunity of these English lines is proven by the fact that a 24 hour day production has been maintained for several weeks past.
The company also produced a sampler tin of the new biscuits that sold very well. Weston's English Quality Biscuits proved a long-term success and the product line became the basis for the company's continued growth.


Expansion

With the death of George Weston in 1924,
W. Garfield Weston Willard Garfield Weston (26 February 189822 October 1978) was a Canadian businessman and philanthropist who was a member of the prominent Weston family. He led George Weston Limited and its various subsidiaries and associated companies, includi ...
became president of George Weston Limited at the age of 26. Garfield, who had effectively been running the company the past several years, set the firm on a path of expansion. In 1928, he took the company ‘public’ and made his first major acquisition – William Paterson Ltd., a Brantford, Ontario, biscuit and confectionery maker founded in 1863 by William Paterson. The company also made its first foray into the American market but the effort ended in near disaster. A Weston's English Quality Biscuits factory was set up at Watertown, near
Boston Boston is the capital and most populous city in the Commonwealth (U.S. state), Commonwealth of Massachusetts in the United States. The city serves as the cultural and Financial centre, financial center of New England, a region of the Northeas ...
,
Massachusetts Massachusetts ( ; ), officially the Commonwealth of Massachusetts, is a U.S. state, state in the New England region of the Northeastern United States. It borders the Atlantic Ocean and the Gulf of Maine to its east, Connecticut and Rhode ...
, but after a series of missteps, that included a botched advertising campaign, the plant was closed. It was later realized that a senior manager had secretly been working for the competition. The American company was subsequently reorganized and a new biscuit plant established near
Passaic Passaic ( or ) is a city in Passaic County, in the U.S. state of New Jersey. As of the 2020 United States census, the city was the state's 16th-most-populous municipality,New Jersey New Jersey is a U.S. state, state located in both the Mid-Atlantic States, Mid-Atlantic and Northeastern United States, Northeastern regions of the United States. Located at the geographic hub of the urban area, heavily urbanized Northeas ...
.


Depression

In spite of the
Great Depression The Great Depression was a severe global economic downturn from 1929 to 1939. The period was characterized by high rates of unemployment and poverty, drastic reductions in industrial production and international trade, and widespread bank and ...
, George Weston Limited continued to expand in
Ontario Ontario is the southernmost Provinces and territories of Canada, province of Canada. Located in Central Canada, Ontario is the Population of Canada by province and territory, country's most populous province. As of the 2021 Canadian census, it ...
and
Western Canada Western Canada, also referred to as the Western provinces, Canadian West, or Western provinces of Canada, and commonly known within Canada as the West, is a list of regions of Canada, Canadian region that includes the four western provinces and t ...
. The company bought Lawlor's Bread Limited of
Toronto Toronto ( , locally pronounced or ) is the List of the largest municipalities in Canada by population, most populous city in Canada. It is the capital city of the Provinces and territories of Canada, Canadian province of Ontario. With a p ...
for over a quarter million dollars in 1930. It went on to acquire Regal Bakeries Limited in
Ontario Ontario is the southernmost Provinces and territories of Canada, province of Canada. Located in Central Canada, Ontario is the Population of Canada by province and territory, country's most populous province. As of the 2021 Canadian census, it ...
in 1931, Independent Biscuit Co. of Calgary that same year, and Lawrence Bread Limited in 1933. As the Depression deepened and George Weston Limited remained profitable, it bought companies and operations under favourable terms. In 1933, for example, it extended its service area to 100 miles around
Toronto Toronto ( , locally pronounced or ) is the List of the largest municipalities in Canada by population, most populous city in Canada. It is the capital city of the Provinces and territories of Canada, Canadian province of Ontario. With a p ...
with the acquisition of Ontario Bakeries Limited from its trustee and receiver:
In this case, as in nearly every case where the company or its subsidiaries have taken in other plants, the company was able to take advantage of the extraordinary low price obtaining for capital assets during the depression, to expand its business at very low cost to itself and on purchase terms that are scarcely more than rental.
The company went on to acquire McCormick's Limited from its receivers in 1937 and bought Inter City Western Bakeries in 1938. In the United States, it expanded biscuit operations at Passaic, New Jersey, and established a new Weston's Biscuits plant at
Battle Creek, Michigan Battle Creek is a city in northwestern Calhoun County, Michigan, United States, at the confluence of the Kalamazoo River, Kalamazoo and Battle Creek River, Battle Creek rivers. As of the 2020 United States census, 2020 census, the city had a tota ...
. One long-time Weston executive, Frank Riddell, observed that since nobody had any money in those days that deals were often struck with relatively little cash and a guarantee of Weston stock. In addition to a program of expansion, the profitability of George Weston Limited allowed it to establish a minimum weekly wage for its male employees in 1934.


Great Britain

The early 1930s saw Garfield Weston pursue an ambitious overseas venture designed not only to extend the commercial interests of the company but also expand desperately needed export markets for Canadian wheat. Weston proposed to acquire bakeries throughout the British Isles that would then import more Canadian grain. Turned down by the banks at home, which considered the idea too risky, Weston arranged a meeting with a group of New York financiers. Among them was Wall Street speculator Ben Smith who bankrolled Weston to the tune of $2 million. In 1933, George Weston Limited acquired Scottish biscuit maker Mitchell & Muil Limited. The antiquated factory at Aberdeen was shut down and production moved to a new facility at Edinburgh. With modern equipment and facilities, along with a reduced product line of 40 items instead of 400, Garfield Weston dramatically lowered costs and began selling biscuits at half the price of the competition. Other bakeries followed, as Weston quickly acquired a string of bread and biscuits factories, as the overseas business began to rival that of the parent:
All the British and Irish biscuit and bread companies obtained in the last 15 months in the course of Garfield Weston's large-scale British adventure are now reported to have a total volume of sales as great as that of the parent company in Canada, George Weston Ltd. Moreover, Mr. Weston told the shareholders at the annual meeting on March 28 that when plans at present under way are complete, he will have bread and biscuit companies in every strategic centre of England, Scotland, Northern and Southern Ireland.
Later that year, with operations still expanding, George Weston Limited offered its shareholders direct ownership in the overseas venture in a rights issue that transformed the British business into a separate commercial entity. By 1937, with fifteen regional bakeries under the
Allied Bakeries An alliance is a relationship among people, groups, or states that have joined together for mutual benefit or to achieve some common purpose, whether or not an explicit agreement has been worked out among them. Members of an alliance are calle ...
banner and the success of the British Isles expansion evident, news headlines back home in Canada hailed Garfield Weston as "Britain’s biggest baker."


World War II

During World War II, George Weston Limited struggled to maintain production in light of shortages that included basic ingredients such as sugar. Cakes were still made but at times without icing. Labour was also in short supply and salesmen at times served as bakery workers. With most of its biscuit production going to supply the armed forces of Canada and the Allied Powers, the company ran newspaper ads advising customers that Weston products may not always be available:
We regret being unable to supply your grocer regularly with Weston's English Quality Biscuits. Our factories are working at top speed to help supply the biscuit needs of the armed forces of the United Nations. Even the ovens that bake the famous Weston's Soda Biscuits are now turning out "Iron Rations" for our fighting men.
Another wartime ad noted that the company's products were with the 8th Army of the North African campaign. "Those fighting lads who drove Rommel out of Egypt and Libya have been getting Weston's English Quality Biscuits right along. Naturally, we're proud of their choice!". In spite of the war, the company continued to expand. In the United States, it purchased a bankrupt biscuit plant at Salamanca, New York, and acquired the Southern Biscuit Co. of Richmond, Virginia. The National Biscuit Co. in Western Canada was bought, along with Edmonton City Bakery. By 1942, the company reported that Weston operations in Canada, the United States and Great Britain used over 15 million bushels of wheat a year and employed some 16 thousand workers. The war years also saw the company diversify beyond baking with the purchase of a controlling interest in Western Grocers Ltd., a wholesale food distributor with some 700 associated Red & White stores throughout the prairies. In 1943, Garfield Weston also bought paper manufacturer E.B. Eddy Co. of Hull, Quebec, after he purchased controlling interest from Lord
R.B. Bennett Richard Bedford Bennett, 1st Viscount Bennett (July 3, 1870 – June 26, 1947) was a Canadian lawyer, businessman, philanthropist, and politician who served as the 11th prime minister of Canada from 1930 to 1935. Bennett was born in Ho ...
, the Canadian former Prime Minister. Some years later, Eddy Paper Co., along with subsidiary E.B. Eddy Co., was bought out by George Weston Limited in a cash and stock deal.


Post-war

The post-war years saw tremendous growth as the company continued to diversify its holdings not only in terms of consumer products but also with a concerted move into retailing. In 1948, the company bought William Neilson Limited of Toronto, Ontario, Canada's largest chocolate and ice cream maker. A year earlier, Garfield Weston struck a deal to acquire a block of 100,000 shares of Loblaw Groceterias Co. Limited, one of the country's leading supermarket chains By 1953, George Weston Limited had established majority control. Three years later, the company announced it had purchased a 25 percent stake in Chicago-based National Tea Co., a large U.S. supermarket chain with more than 700 stores. By the early 1960s, it had gained controlling interest in National through subsidiary Loblaw Companies Limited. In 1966, Howardsgate Holdings, owners of Britain and Europe's largest operator of supermarkets,
Fine Fare Fine Fare was a chain of supermarkets which operated in the United Kingdom from 1951 until 1988. During the 1960s the company was the largest operator of supermarkets in Europe. Their Yellow Pack budget private label, own-label range, introduce ...
, was purchased from another Weston family business, DICOA, before being sold back to
Associated British Foods Associated British Foods plc (ABF) is a British multinational food processing and retailing company headquartered in London, England. Its ingredients division is the world's second-largest producer of both sugar and baker's yeast and a major pr ...
.


Diversification and disclosure

During the 1960s, the company continued to diversify beyond baking. Along with the 1962 acquisition of Eddy Paper Co., George Weston Limited moved into fish processing on the East and West coasts with its purchase of Connors Brothers of New Brunswick and British Columbia Packers Limited. With the full extent of the company's holdings often unknown by even senior executives, not to mention the public, George Weston Limited was under increasing pressure from Canadian parliamentarians to reveal its corporate structure and holdings. In December 1966, it provided shareholders and the media with a detailed chart showing various subsidiaries, wholly owned and controlled. The Financial Post newspaper led with headlines that read, "Weston group unveils huge empire" and reported on how 150 Weston led companies accounted for $800 million in assets and produced $2.8 billion in annual sales. While the extent of the "Weston empire" became the lead business story, it apparently resulted in little or no negative reaction in terms of press coverage. Some months later, in fact, one news story went so far as to feature the headline, "Garfield Weston: Our champ at corporate empire-building."


Consolidation

By the late early 1970s, the company's aggressive expansion and acquisitions strategy, which in the past had produced such remarkable growth, was showing signs of strain. Retail sales and earnings were in decline as Loblaws’ aging chain of supermarkets looked increasingly uncompetitive. In 1972, Garfield Weston, Chairman of George Weston Limited, named his youngest son, W. Galen Weston, Chief Executive Officer of Loblaw Companies Limited. The appointment came at a time when Loblaws appeared all but bankrupt, with its share of the crucial Ontario market cut in half as a result of price wars among the major chains. At the same time, the company found its hands tied by leaseback agreements that prevented it from closing money-losing stores. With few assets, Loblaw was also deeply in debt. In spite of all the problems, though, Galen Weston felt that Loblaws had the potential to be the nucleus of one of the finest retailers in Canada. "As a 200 store chain, we didn’t look very good. As a 100 store chain, Loblaws looked very good indeed." Leaseback agreements were bought out and the company began closing unprofitable stores. Old warehouse operations were shut down and a new distribution centre built. The company also initiated a broad marketing strategy that saw a prototype store renovated and remodelled in new colours and a new Loblaws logo. Toronto designer Don Watt introduced new wood panelling, big moveable display bins, and huge photos of fresh fruits, vegetables, and meats. The produce section was doubled in size and moved to the front of the store. Sales dramatically increased and more stores were remodelled and rebranded. Meanwhile, a new advertising campaign featured Canadian actor
William Shatner William Shatner (born March 22, 1931) is a Canadian actor. In a career spanning seven decades, he is best known for his portrayal of James T. Kirk in the ''Star Trek'' franchise, from his 1966 debut as the captain of the starship USS Enterpri ...
of
Star Trek ''Star Trek'' is an American science fiction media franchise created by Gene Roddenberry, which began with the Star Trek: The Original Series, series of the same name and became a worldwide Popular culture, pop-culture Cultural influence of ...
fame, who told television audiences to "Come on over to Loblaws" and "More than the price is right ... but by gosh the price is right." In 1974, W. Galen Weston was appointed Chairman and Managing Director of George Weston Limited, and subsequently company President. But as Loblaws regained market share, profitability south of the border, at National Tea Co., deteriorated. A similar program of rationalization saw hundreds of National stores closed and warehouses consolidated, while other outlets underwent renovation and rebranding. By 1974, of 1,100 retail food outlets across North America, 367 stores were closed, while 81 new stores had been built. Unprofitable divisions, namely
Chicago Chicago is the List of municipalities in Illinois, most populous city in the U.S. state of Illinois and in the Midwestern United States. With a population of 2,746,388, as of the 2020 United States census, 2020 census, it is the List of Unite ...
, Syracuse and California, were sold. Although some supermarket assets were later acquired, eventually the company would divest itself of all retail and wholesale holdings in the United States. Management continued to divest non-core assets through the decade as it shifted the company's focus to earnings rather than sales growth. In 1978, both George Weston Limited and Loblaw Companies Limited returned to profitability and two years later Weston's reported record earnings of $76 million on revenue of $6 billion. Once again, the company was in a position to make acquisitions and purchased Stroehmann Brothers of Pennsylvania, a baker of bread and rolls, for $32 million. George Weston Limited next made a well publicized bid to acquire controlling interest in the
Hudson's Bay Company The Hudson's Bay Company (HBC), originally the Governor and Company of Adventurers of England Trading Into Hudson’s Bay, is a Canadian holding company of department stores, and the oldest corporation in North America. It was the owner of the ...
, with its diverse array of retail, resource and real estate holdings, in 1979. But as a bidding war ensued with the Ken Thomson and family, Galen Weston walked away from the process, noting that it would have cost "another $150 million to bump our offer up again" and had simply become too expensive.


Private labels

In addition to revitalizing the look of its stores, Loblaw management earmarked $40 million for the development of its in-house, private label program. Generally regarded as inferior to the national brands, CEO W. Galen Weston put renewed emphasis on the quality of store brands:
We found it essential to change products and services before redesigning their image. For example, nothing is more disappointing for a consumer than to buy a private label product because of the attractiveness of its redesigned label and then find that the same quality that had disappointed her previously had not been improved.
In 1978, at a time of rampant food price inflation, Loblaws unveiled a new line of 16 generic "no-name" products. Sales proved stronger than anticipated and within a year the number of No Name product offerings had increased to over a hundred. Months later, the first "no frills" store was launched, which featured No Name and a limited selection of 500 discount items. Two more Toronto area stores follow within a few months. The No Name line continued to grow and gourmet items were even added to the generic line-up. Then, in 1984, Loblaw launched President's Choice, a premium line of private label items, with each product personally endorsed by Loblaws president
Dave Nichol David Alexander Nichol (February 9, 1940 – September 22, 2013) was a Canadian businessman and product marketing expert. As head of product development and eventually President of Loblaws Supermarkets, Nichol introduced the President's Choice s ...
and promoted in the popular advertising supplement Dave Nichol's Insider's Report. No name and President's Choice products would go on to account for 25 percent of the company's domestic grocery sales or double the industry average.


Free trade

With the signing of the Canada–U.S. Free Trade Agreement in 1988 and the
North American Free Trade Agreement The North American Free Trade Agreement (, TLCAN; , ALÉNA), referred to colloquially in the Anglosphere as NAFTA, ( ) was an agreement signed by Canada, Mexico, and the United States that created a trilateral trade bloc in North America. The ...
in 1994, George Weston Limited found it necessary to once again re-evaluate its asset mix. A series of divestitures followed over the next decade as the company struggled to remain competitive within a continental free trade zone. Companies that were sold off included biscuit and ice cream making, chocolate bar manufacturing, sugar refining, milling, and paper and tissue making. In 1989, the company sold its White Swan tissue division to Scott Paper Ltd. for $110 million. While Weston's had acquired the Canadian operations of Cadbury in 1987 and merged them with William Neilson Limited, after attempting to break into emerging markets, by selling chocolate bars in Mexico, it finally sold its chocolate operations to Cadbury Schweppes in 1996. In 1998, long time holding E. B. Eddy was sold to Domtar in a cash-and-stock deal worth (CAN) $800 million. Meanwhile, under Loblaw president
Richard Currie Richard James Currie (born 1937 in Saint John, New Brunswick) is a Canadian businessman. Education He entered the University of New Brunswick in 1955 on a Beaverbrook Scholarship and was elected president of the first-year class.
, the company's retail food operations continued to expand under a variety of regional banners that included Loblaws, no frills, Zehrs and Fortinos in Ontario, the Real Canadian Superstore in Northern Ontario and Western Canada, and the Real Atlantic Superstore and SuperValu in Atlantic Canada. In particular, Dominion Stores Limited, Loblaw's lead competitor in Ontario, had failed to keep up with the times and the rival chain finally sold off its better stores and shuttered the rest. By the mid 1980s, with a 14 percent share of the $35 billion supermarket business in Canada and 41 consecutive quarters of higher earnings, Loblaw Companies had gone "from a sorry loser without a future into Canada's largest and perhaps most thriving food distributor". Nevertheless, Loblaw still had occasion to stumble, at times badly. While large-scale "combination stores", with their mix of food and general merchandise, had worked so well in Western Canada, the introduction of SuperCentres in Central Canada a few years later resulted in huge losses. The company's policy to own many of its properties, instead of simply leasing, gave it the "operating flexibility" to rent out redundant space and thereby mitigate losses.


Acquisition and divestiture

On the acquisition side, George Weston Limited expanded within its traditional base of operations with the purchase of the Ontario assets of General Bakeries, a subsidiary of Dominion Stores Limited, in 1985, as Toronto financier
Conrad Black Conrad Moffat Black, Baron Black of Crossharbour (born 25 August 1944), is a Canadian-British writer and former politician, Publishing, newspaper publisher, Investor, financier, and Fraudster, convicted fraudster. Black's father was businessma ...
divested holdings. Along with a number of bread and roll plants, the deal included ownership of the Wonder trademark in Canada, which would become an important brand for Weston Bakeries Limited. In 1995, Loblaw divested the last of its U.S. retail operations with the sale of supermarkets in St. Louis (originally bought from Kroger) and New Orleans. In spite of the retreat, the company reiterated its overall strategy to take advantage of any opportunity that presented itself:
The company is prepared to enter new markets through the opening of new stores, as in its stated plan, to enter the Quebec market, or from focused acquisitions when opportunities arise. The company is also prepared to exit particular markets and redeploy assets elsewhere when it is strategically advantageous to do so, as demonstrated by the disposal of the United States retail business...
But while Loblaw no longer owned stores in the U.S., it had not made a complete retreat from the American market, with its President's Choice products available on the shelves of over 1,700 supermarkets in 35 States. In 1998, the company made two major regional acquisitions, namely the 80 store Agora Foods chain in Atlantic Canada and Provigo, a 250 store chain of supermarkets in the province of Quebec. Then, in 2001, the company made a major new thrust into the U.S. fresh baked goods market with the purchase of Bestfoods Baking Co., a division of Anglo-Dutch conglomerate
Unilever Unilever PLC () is a British multinational consumer packaged goods company headquartered in London, England. It was founded on 2 September 1929 following the merger of Dutch margarine producer Margarine Unie with British soap maker Lever B ...
, for (U-S) $1.76 billion. Bestfood, with nineteen plants throughout the United States, included such well-known brands as
Entenmann's Entenmann's is a formerly American-owned company, now owned by the Mexican conglomerate, Grupo Bimbo, that manufactures baked goods and delivers them throughout the United States to supermarkets and other retailers for public sales. Often, the ...
,
Thomas' Thomas' is a brand of English muffins and bagels in North America, established in 1880. It is owned by Bimbo Bakeries USA, one of the largest baking companies in the United States, which also owns Entenmann's, Sara Lee, Stroehmann, and Arnol ...
English Muffins, and Arnold Bread.


Retrenchment

In 2006, chronic supply chain problems and the first year-end loss for Loblaw in almost two decades resulted in the resignation of John Lederer as president and W. Galen Weston as chairman. Galen G. Weston was appointed to the new position of executive chairman, with
Allan Leighton Allan Leighton (born 12 April 1953) is a British businessman, Chair of Asda, former chairman of The Co-operative Group, former CEO of Asda, former chief executive of Pandora, and former non-executive chairman of the Royal Mail prior to the brea ...
as deputy chairman and Mark Foote president. The introduction of a 'fix the basics' program saw the company refocus attention on food retailing, with less emphasis on general merchandising. But senior executives acknowledged that the company's turnaround would take at least three years to accomplish. Meantime, Loblaw returned to profitability in 2007.


Divestitures and acquisitions

Despite the
2008 financial crisis The 2008 financial crisis, also known as the global financial crisis (GFC), was a major worldwide financial crisis centered in the United States. The causes of the 2008 crisis included excessive speculation on housing values by both homeowners ...
, George Weston Limited signed two major deals. In October, it announced that Neilson Dairy was being sold to Saputo Inc. for (CAN) $465 million, followed months later by word that
Grupo Bimbo Grupo Bimbo, S.A.B. de C.V. (also known simply as Bimbo) is a Mexican multinational food company with a presence in over 33 countries located in the Americas, Europe, Asia and Africa. It has an annual sales volume of 15 billion dollars and is ...
, the Mexican baking conglomerate, had agreed to buy U.S. based George Weston Bakeries, which consisted of the former Bestfoods Baking assets, along with Stroehmann Bakeries, for (U-S) $2.5 billion. Chairman W. Galen Weston noted that the Grupo Bimbo sale represented the company's biggest deal ever and along with the sale of the dairy division would result in $5 billion in cash on corporate balance sheets, thereby allowing the company to consider future acquisitions. In 2009, T&T Supermarket, a Chinese grocery store chain, was acquired by Loblaw. While the Grupo Bimbo deal saw George Weston Limited divest most of its fresh baked goods assets in the United States, the company still maintained U.S. market share. In addition to Interbake, a manufacturer of cookies and ice cream novelty treats, it acquired Keystone Bakery, a U.S. maker of frozen cupcakes, donuts, and cookies, for (U-S) $185 million in 2010. That year it also bought ACE Bakery, a Canadian maker of artisan and European-style breads, for (CAN) $110 million. In what press reports called "a surprise move," the company announced in late 2010 that it would pay a special dividend of $7.75 per share to stockholders, worth one billion dollars. In 2011, Weston Foods worked out a deal to acquire bankrupt Colonial Cookies of Kitchener, Ontario - a baker of Loblaw private label products and in particular its bestselling President's Choice The Decadent Chocolate Chip Cookie.


Legal entanglements

In January 2018, Weston and its subsidiary Loblaws were implicated in price-fixing the cost of bread in Canada, taking part from 2001 until 2015. The two companies agreed to pay $500 million to settle the lawsuit in July 2024, with the class action lawsuit against several other retailers continuing. Also in 2018, Weston subsidiary Loblaws was embroiled in the
Tax Court of Canada The Tax Court of Canada (TCC; ), established in 1983 by the ''Tax Court of Canada Act'', is a federal superior court which deals with matters involving companies or individuals and tax issues with the Government of Canada. Jurisdiction Appeal ...
in relation to a banking subsidiary in the Caribbean. It involved a Loblaws Inc. subsidiary in Barbados that had been renamed Glenhuron Bank. The
Canada Revenue Agency The Canada Revenue Agency (CRA; ; ) is the revenue service of the Government of Canada, Canadian federal government, and most Provinces and territories of Canada, provincial and territorial governments. The CRA collects Taxation in Canada, taxes, ...
claimed "that a vice-president at Loblaws parent company George Weston Ltd. 'was unable or unwilling to answer many questions' during pre-trial discovery hearings, and later requested that CEO Galen Weston Jr. answer under oath "some of its pre-trial discovery questions about 'the purpose for which GBL was established and the activities of GBL during the years at issue.'" The result was that Loblaws was ordered by Associate Chief Justice Lucie Lamarre to pay back taxes on foreign accrual property income (FAPI) of $368 million. The company appealed to Justice
Judith Woods Judith Woods is a Canadian Canadians () are people identified with the country of Canada. This connection may be residential, legal, historical or cultural. For most Canadians, many (or all) of these connections exist and are collectively t ...
of the
Federal Court of Appeal The Federal Court of Appeal () is a Canadian appellate court that hears cases concerning federal matters. History Section 101 of the Constitution Act, 1867 empowers the Parliament of Canada to establish "additional Courts for the better Admi ...
who reversed the Lamarre order when she found that Glenhuron "bought short-term U.S. debt securities, entered into swaps and managed investments on behalf of other companies related to Loblaw and its parent, George Weston Ltd., among other things — mostly did business at arm’s length with those it entered into contracts for the debt and swaps". The CRA appealed the Woods ruling to the
Supreme Court of Canada The Supreme Court of Canada (SCC; , ) is the highest court in the judicial system of Canada. It comprises nine justices, whose decisions are the ultimate application of Canadian law, and grants permission to between 40 and 75 litigants eac ...
. The leave was granted on 29 October 2020. On 18 February 2021 the appeal hearing was scheduled for 13 May, and on 22 March leave to intervene was granted to the
Attorney General of Ontario The attorney general of Ontario is the Attorney general, chief legal adviser to Monarchy in Ontario, His Majesty the King in Right of Ontario and, by extension, the Government of Ontario. The attorney general is a senior member of the Executi ...
and the Canadian Bankers’ Association.


Sale of bakery business

In March 2021, Weston announced that it would soon hold an auction of its "Weston Foods bakery business", with sales "under brands such as Wonder Bread, ACE Bakery, Country Harvest, D'Italiano and others". The division accounted for $2.1 billion in 2020 sales, or less than 10% of total. In October 2021, the deal to sell Weston Foods' fresh and frozen bread business to FGF Brands Incorporated of
North York, Ontario North York is a former township and city and is now one of the six administrative districts of Toronto, Ontario, Canada. It is located in the northern area of Toronto, centred around Yonge Street, north of Ontario Highway 401. It is bounded by ...
was announced, which was expected to close in early 2022.


Brands


Grocery

Chains: *Atlantic Cash & Carry *
Atlantic Superstore Real Atlantic Superstore is a Canadian supermarket chain. The chain operates in the Maritimes, the Maritime Provinces of New Brunswick, Nova Scotia, and Prince Edward Island. It is owned by George Weston Limited through Loblaw Companies Limited, ...
* Atlantic SuperValu *Axep *
Dominion A dominion was any of several largely self-governance, self-governing countries of the British Empire, once known collectively as the ''British Commonwealth of Nations''. Progressing from colonies, their degrees of self-governing colony, colon ...
*Entrepôts Presto / Club Entrepôt *
Extra Foods Extra Foods (also branded as ''extrafoods'') was a Canadian supermarket chain, part of Loblaw Companies Limited. Founded in 1982, the chain had 106 locations at its peak in 2006 and were located through most of Western Canada. Most Extra Foods s ...
*
Fortinos Fortinos is a Canadian supermarket chain that was founded in Hamilton, Ontario. It operates 24 stores across the western Greater Toronto and Hamilton Area. It is owned by Loblaw Companies Limited. History In 1961, Giovanni (John) Fortino, a ...
*
Freshmart Freshmart is a chain of supermarkets based in Ontario, Canada. It is a unit of Loblaw Companies Limited, Canada's largest food distributor. Background Freshmart stores are typically operated by a franchise owner. The stores operate in smalle ...
*L'intermarché * Loblaws/Loblaw Great Food *Lucky Dollar Foods * Maxi/ Maxi & Cie *NG Cash & Carry *
No Frills A no-frills or no frills service or product is one for which the non-essential features have been removed to keep the price low. The term "Ruffle (sewing), frills" originally refers to a style of fabric decoration. Something offered to customers f ...
*
Pharmaprix Shoppers Drug Mart Inc. (colloquially Shoppers; named Pharmaprix in Quebec) is a Canadian retail pharmacy chain based in Toronto, Ontario. It has more than 1,300 stores in ten provinces and two territories. The company was founded by pharmacist ...
*
Provigo Provigo is a grocery retailer based in Quebec, Canada, consisting of over 300 stores and franchises throughout the province. It operates a retailing chain of stores and distribution warehouses. It is owned by Loblaw Companies Limited. The chai ...
* The Real Canadian Superstore/Loblaw Superstore * Real Canadian Liquorstore * Real Canadian Wholesale Club *Red & White Food Stores *
SaveEasy SaveEasy (formerly ''Atlantic Save-Easy'') was a chain of small retail grocery store Chain store, franchises in the Atlantic Provinces of Newfoundland and Labrador, New Brunswick, Nova Scotia, and Prince Edward Island, owned by Loblaw Comp ...
(formerly Atlantic SaveEasy) *Shop Easy Foods * Shoppers Drug Mart/Shoppers * SuperValu *
Valu-mart Valu-mart (styled as valu-mart) is a chain of supermarkets based in Ontario, Canada. It is a unit of National Grocers, itself a unit of Loblaw Companies Limited, Canada's largest food distributor. Stores are typically operated by a franchise ...
*
Your Independent Grocer Your Independent Grocer (YIG), known colloquially as "Independent" or "Yours" is a supermarket chain in Canada with more than 100 locations. It has stores in every province and territory except Manitoba, Nunavut, and Quebec. It is a unit of Nati ...
*
Zehrs Zehrmart Inc. (doing business as Zehrs Markets or simply Zehrs ) is a Canadian supermarket chain in southern Ontario. The chain has 42 locations and is a part of Loblaw Companies Limited, which purchased the Zehrs chain in the mid-1970s. Histo ...
, operating under the Zehrs Markets, Zehrs Food Plus and Zehrs Great Food banners Brands: *
President's Choice President's Choice (Canadian French, French: le Choix du Président) or PC is a line of grocery products and services offered by the Canada-based Loblaw Companies, Loblaw Companies Ltd. History President's Blend The first President's Ch ...
*
No Name No Name or Noname may refer to: Geography *No Name, Colorado * No Name Key, an island among the Florida Keys * No Name Tunnel, located near the same named town in Colorado Art, entertainment, and media *No-Name (character), a fictional character i ...
* Exact * Blue Menu *
Joe Fresh Joe Fresh is a Canadian fashion brand and retail chain created by designer Joe Mimran for Canadian food distributor Loblaw Companies, Loblaw Companies Limited. It was formed in 2006. The label includes adult and children's wear, shoes, handbags, ...
*J± (electronics) *Teddy's Choice *PC Splendido *Bella Tavola *PC Premium Black Label *Joe Pet Catz & Dawgz *PC Organic *The Health Clinic by Shoppers *LifeMark *Life @ Home


Corporate governance

The current members of the
Board of Directors A board of directors is a governing body that supervises the activities of a business, a nonprofit organization, or a government agency. The powers, duties, and responsibilities of a board of directors are determined by government regulatio ...
of George Weston Limited are: Galen G. Weston (Chairman), Alannah Weston (Deputy Chairman), Andrew A. Ferrier, Isabelle Marcoux, Sarabjit (Sabi) S. Marwah, Gordon M. Nixon, J. Robert S. Prichard, Robert Sawyer, Christi Strauss, and Barbara Stymiest.


Operations

Weston's operations include more than 50 facilities across Canada employing over 5,000 staff in manufacturing facilities, distribution centres and corporate environments.


See also

*
Associated British Foods Associated British Foods plc (ABF) is a British multinational food processing and retailing company headquartered in London, England. Its ingredients division is the world's second-largest producer of both sugar and baker's yeast and a major pr ...
– the company built by W. Garfield Weston and later managed by son Garry Weston.


References


External links

*
George Weston's Model Bakery
{{Authority control Bakeries of Canada Food product brands Manufacturing companies based in Toronto Weston family Food and drink companies established in 1882 1882 establishments in Ontario Companies listed on the Toronto Stock Exchange S&P/TSX 60 Canadian companies established in 1882 Family-owned companies of Canada