Okay.
Sun-Rype was recently selected as one of three companies to receive a Grant Thornton food industry leadership award, given to companies that embody the spirit of leadership, innovation, and business success.
Innovation is clearly in our DNA and Sun-Rype is aligned with Agriculture and Agri-Food Canada on the importance of innovation. We're also expanding geographically, something that provides both challenges and opportunities.
Sun-Rype made acquisitions in 2010 and 2011, and now own and operate two facilities in Washington State, along with our main facility in Kelowna, British Columbia. We now employ over 320 employees in Canada and 125 employees in the U.S., making a considerable economic impact in both the Okanagan Valley and central Washington.
In 2008, we expanded our distribution in the U.S.A by leveraging relationships with North American retailers such as Costco and Safeway, and we now have over 5,000 points of distribution in the U.S. for our fruit snacks. We're also selling beverage products in selective channels in the U.S.A.
While we believe we have an exciting and differentiated product portfolio, brand awareness is critical to success in new markets, such as the U.S.A, and building awareness is expensive and takes time. Ultimately, growth through acquisitions, innovation, and geographic expansion are all critical to surviving in today's tough economy, as ever contracting margins make growth an absolute requirement.
We operate in a highly competitive North American grocery industry, so despite having a strong brand, leading markets here in our home market, and a track record of leading innovation, Sun-Rype is struggling financially.
A number of factors are challenging our profitability: first, the incredible scale and leverage of major customers who are constantly pushing for lower prices. Second is the scale of our competitors. We compete against multi-billion dollar multinational companies, and in a flat economy these companies are willing to sell at low or no margin in an effort to secure market share and force industry consolidation. Third is commodity prices. In 2010 our key commodity prices in fruit juice concentrates and purees increased over 50%, and given the competitive market conditions we were unable to pass along price increases. Finally is the factor of category declines. The shelf-stable juice category in which we compete has seen significant declines in the last few years. So consumer tastes are changing and innovation is required to address new trends.
The challenge is the cost of innovation. A single stock-keeping unit, or a SKU, now costs over $1 million to launch nationally and the likelihood of success is low, so we need every bit of support our government can offer to small, innovative food companies in Canada. Investment in Canadian food companies capable of growing on a North American and global stage will have a strong payback for Canada in terms of jobs and other revenue streams.
There is a clear consolidation trend going on in our industry that is leading to job loss. The FBC reports that since 2007, more than 85 processing plants have closed and scores of multinationals have moved production south, resulting in increased imports, while exports decrease.
We believe Canada has done many things well to support food companies, including SR and ED credits, which Sun-Rype has taken advantage of over the years. Moreover, the CFIA, which is often criticized, is taking a much more proactive role in joint investigation of food safety concerns and labelling requirements than their U.S. counterparts, such as the FDA. We've found the Kelowna-based personnel to be professional and responsive to both consumer issues and company requirements.
Finally, we want to note that new programs, such as the digital technology adoption pilot program, are appreciated by Sun-Rype. But despite these positive benefits in operating in Canada, small food companies need even more support to remain viable. As such, I ask that our government consider options to improve the ability of small innovative food companies to compete. Options to consider include expanding programs for funding students involved in R and D and marketing of new products, and with respect to capital expenditures, low interest loans and grants to fund capacity expansions and new technologies. At present, we are looking at payback periods of more than six years in a high-risk industry. Such payback periods will ultimately lead to a lack of investment in Canada without government support.
Finally, I ask that we ensure that the standards to which we hold our domestically produced products are held as well for imported products, and this would apply to the level of scrutiny the manufacturing facilities are under, as well as labelling requirements. As an example, just last week I noticed products imported from Poland that had no French on the label, which seemed odd to me.
In closing, I wish to emphasize the importance the small food companies have in creating employment in Canada. We're under immense pressure from local food companies, and without stronger support, Canada will continue to lose jobs to the trend of consolidation.
I thank you for the opportunity to address the standing committee today.