Thank you, Mr. Chair.
Let me begin by expressing my sincere gratitude for the invitation to appear today. We have tremendous respect for the work of your committee and, in particular, we are excited to contribute to your examination of the supply chain. I would like to use this time to tell you a bit more about our industry, the contribution we make in terms of jobs and growth, the valued products we deliver to consumers, and the broader opportunities we create for farming families among others.
I also want to share some information about the investments our members make in the communities in which we live, work, and raise our own families. And finally, I want to touch on measures our members are taking, often working closely with Parliament, to ensure Canadians enjoy a balanced range of beverage choices that are healthy, safe, and responsive to the preferences of consumers.
The obligation to serve the best interests of consumers and Canadians is one that we take extremely seriously. We look forward to exploring ways in which we can work collaboratively to build on that current success.
Let me start with our business.
Our economic footprint in Canada is substantial. Fuelled by more than 60 brands, the refreshment beverage industry generates approximately $5 billion in annual sales from coast to coast to coast. Moreover, our members are responsible for more than 120 manufacturing, distribution, and sales facilities that can be found in every corner of the country. In total, CBA members directly employ 12,000 Canadians in steady, well-paying jobs, the vast majority of which are unionized with good benefits and solid pensions. That amounts to an annual payroll of approximately $500 million.
Our involvement is realized in not only commercial but community terms as well. CBA members dedicate substantially to the places we live through a variety of charitable and local causes. Financially, this engagement can be measured in the millions of dollars each year, from the United Way to Special Olympics, from ParticipACTION to building local playgrounds. It's money, time, and leadership given to support local sports programs, youth development, health and wellness, and the promotion of literacy.
This local ethic also highlights a key point to the committee's work. Our members and their facilities can be found everywhere in Canada, from Newfoundland to the Lower Mainland and all parts in between.
The reality of the beverage business is that you must build plants and facilities where you find people who want your product. Pop, fruit juices, and other beverages are made relatively close to market and then shipped quickly to consumers. Ours is a manufacturing business that still places a premium on local presence and with very few exceptions, the products we sell in Canada are made in Canada.
This simple fact has significant implications for the committee's study on the supply chain.
For example, our members are one of the largest, if not the largest, block of customers for corn producers and corn growers, creating vital demand for that agricultural product. We are also the country's largest buyers of packaged aluminum and PET plastic.
Finally, our members oversee extensive vehicle fleets that create demand for steel, manufacturing parts, and of course, vehicle production and assembly in North America, and specifically in Canada.
In summary, our effect on agriculture and the wider supply chain is enormous. And let me be clear. We're committed to working together to foster this role further and as commercial conditions permit, generate still additional opportunity.
In turn, we ask little of government. We do not seek grants or financial aid. In fact, our only real request is that we work together to avoid unnecessary barriers to current and future success. Regulation is inherent to our industry. We accept that. In fact, we embrace it. Certainly, as the producers of consumed beverages, health and safety is absolutely our highest priority. In that respect, government, through agencies such as the CFIA and Health Canada, is one of our most vital partners. Together we ensure the highest standards of regulatory stewardship while also procuring the best possible conditions for growth.
We applaud, for instance, sustainable regulatory measures such as the new marketing authorization and incorporation by reference, IbR, tools adopted by Health Canada. These and other moves recognize the importance of leveraging analysis completed in comparable jurisdictions when it comes to our own safety approval process.
It was thanks to IbR, for example, that our industry finally received approval for stevia, the natural sweetener that has long since been cleared for safe use as an additive in other countries. In fact, stevia is a perfect example where unnecessary delay achieved no objective other than making Canadian consumers wait unnecessarily. Our proposal is this: where health and safety are not at issue, let’s work together to move more effectively. That will benefit consumers, reduce costs, and ultimately permit our industry to dedicate valuable resources toward other priorities that produce growth.
Before concluding, I want to make two additional points.
First, we know there will be issues where we must work together. Establishing the appropriate levels of caffeine and calories that people consume is an important issue for public health. Our members have been voluntarily pursuing strategies that have had a demonstrated impact, and we want to indicate our willingness to continue to work to achieve progress in this field. If we sometimes bristle at suggestions that too little is being done, it is because we frequently feel that too little attention is paid to the specific efforts that the industry has made, particularly in comparison to others that must also take full part in the solution. To combat obesity will require a combined effort with balanced policies across a range of sectors.
Second, we want this committee to know that our industry does not wait for government to take action. We have voluntarily adopted guidelines that prohibit the marketing of any beverages but for those that are 100% fruit, vegetable, milk, or water to children age 12 or under. In addition, we have removed all full-calorie soft drinks from primary, middle, and secondary schools prior to government regulation that asked us to do so. Finally, we've implemented our “clear on calories” campaign, which greatly increases the front-facing, on-label nutrition information for consumers, giving them greater insight into their beverage choices.
In summary, our recipe for progress is simple: good science, collaborative action, sustainable change, fair application, and information for consumers. Working together, we believe such an approach will yield results in terms of both public wellness and economic benefit.
In closing, I would simply thank the committee once again for the invitation, and I welcome your questions.
