Thank you, Mr. Chair and committee members. I appreciate the invitation to be with you here today.
For those I have not met, my name is Fred Schaeffer. I'm the president and CEO of McCain Foods Canada, as well as the current chair of Food and Consumer Products of Canada, the largest association in Canada representing the food and consumer products industry.
I'll structure my comments today around three topics. First, I'd like to provide my perspective on the significant efforts undertaken by the Canadian food industry to improve the health and wellness of the Canadian populous. Second, I would like to highlight some of the specific areas of focus and contribution made by McCain Foods in the area of health and wellness. Finally, I'd like to provide a perspective on the topic at hand, which is how to best move forward with some of the food labelling recommendations that may have come before this committee.
I'll start my comments by saying how proud I am to be part of the Canadian food industry. This is an industry that not only produces and distributes some of the safest and lowest-cost food products in the world, but it's also extremely responsive to our consumers' needs.
As an industry we employ roughly 350,000 Canadians and represent the single largest component of this country's manufacturing sector, producing over $80 billion in goods annually, with a quarter of that being destined for the export market. We are the largest purchaser of Canadian agricultural production--almost half of what's grown in Canada. We are the industry that believes in giving back to our communities. Our commitment to philanthropy can be underscored by the more than five million bags of groceries donated to food banks across Canada, as well as annual philanthropic contributions of more than $30 million.
We're also an industry that is committed to meeting the needs of our consumers. It is clear to me that our consumers want healthier, great-tasting foods. In fact, I believe that health and wellness is no longer a trend with our consumers, but rather a truth. When asked, 70% of consumers said they have made some changes to their diets in the last six months. When asked the type of changes they are making, consumers most often state that they are eating more fruits and vegetables and drinking more water. Consumers also tell us that they are reducing fat in their diets. This is clear evidence that there is demand for healthier, great-tasting foods.
It should not be surprising that with this kind of demand, our industry is responding. Today, eight out of ten food companies are working on healthier-for-you product options, with particular focus on reduced fat, sugar, and salt.
Industry efforts are not just limited to improving our products. Our industry is improving the visibility and knowledge of the nutritional content of our products, as well as promoting increased physical activity, which I hope you would agree is the other key element in the calories-in, calories-out balanced lifestyle equation.
On improving the visibility of the nutritional content our products, as you are no doubt aware and have heard today, the Canadian food industry has recently undergone a complete transformation of our packaging to now include the Canadian nutritional facts table. This facts table provides clear visibility to our consumers on calories and 13 different nutrients on both an absolute and percentage daily value basis. To quote from the Health Canada website, “This new nutrition labelling system, combined with public education, will help to reinforce information about healthy eating practices, increase understanding of the links between nutritional health and well-being, and help people reduce the risk of chronic nutrition-related diseases.”
The Canadian food industry has not only embraced the new nutritional labelling standards, but has also helped educate our consumers on the meaning of the facts panel by sponsoring such programs as Healthy Eating is in Store For You. Sponsorship of this educational program, in addition to 1-800 numbers and websites, helps educate Canadians on how to read the new nutritional facts table in order to make the right healthy food choices.
In addition to healthier food products and improved nutritional labelling, our industry has sought to educate Canadians on the benefits of combining increased physical activity with a healthy diet to achieve a balanced, healthy lifestyle. Our industry has invested millions of dollars in programs such as Long Live Kids, which are either fully sponsored by our industry or jointly sponsored with government and non-government organizations to educate both adults and children on the benefits of combining exercise with a healthy diet in order to live a healthy lifestyle.
In 2005 many members of our industry, including McCain Foods Canada, developed and signed a voluntary statement of commitment to show our support for healthy active living. The statement is based on the key areas identified by the World Health Organization where industry can contribute to healthy active living: products and choices, consumer information, advertising and marketing, promotion of healthy lifestyles, and workplace wellness. I have brought with me several copies of a brochure highlighting this effort, should the committee be interested in understanding our industry’s efforts in more detail.
The second portion of my remarks will be focused on the specific efforts of McCain Foods in the area of health and wellness.
We at McCain Foods Canada are aggressively working to improve the health and wellness of our consumers and employees. Our efforts are focused on improving the availability of healthier products, building awareness of healthy lifestyles among Canadians, and improving the health and wellness of our employees.
On the product front, I am pleased to report that by mid-year McCain Foods Canada will be using only non-hydrogenated oils in the production of our McCain-branded food service and retail potato products. This effort will remove approximately eight million pounds of trans and saturated fats from Canadians' diets annually.
While I'm on the subject of our potato products, I feel the urge to rectify a common misperception that french fries are inherently unhealthy foods. To state what might be blindingly obvious to some, but I can assure you not to all, french fries do indeed start from a potato. One small raw potato contains approximately 130 calories, has no fat or cholesterol, and is an excellent source of potassium and vitamin C, as well as being a source of iron and dietary fibre. An 85-gram serving of our oven-baked Superfries also contains 130 calories, is low in saturated fat, contains zero grams of trans fat or cholesterol, and is a source of potassium, vitamin C, iron, and dietary fibre.
In addition to making our french fries healthier for you, we have also introduced such healthier-for-you products as Cool Quenchers frozen fruit punches, with 50% less sugar, and McCain Smooth-eez, which have 2 servings of real fruit in every smoothie.
To help build awareness of healthier lifestyles, McCain Foods Canada has developed and broadcast several public-service-style spots that feature renowned cookbook author and authority on the art of eating and living well, Rose Reisman. These spots encourage Canadians to eat healthy foods, snack nutritiously, and exercise.
On the employee wellness front, McCain Foods has piloted an employee wellness program called McCain in Motion. This program encourages our employees to improve their physical fitness by increasing their activity. McCain in Motion is also a wellness education and awareness campaign. This program was initiated by our U.S. company, and McCain is currently in the process of rolling this out on a global basis.
The final topic I wanted to touch upon is McCain's view of the ever-expanding number of nutritional labelling programs that are proliferating around the globe. As you may be aware, McCain Foods is a Canadian-owned, privately held, $6 billion global manufacturer of predominantly frozen food products. We do business in 110 countries around the world. In each of the countries in which we do business, our approach to nutritional labelling is guided by local regulatory guidelines and legislation. In the absence of any clear regulation, McCain Foods, like most other consumer products companies, follows the conventional wisdom of local industry best practices.
In Canada, McCain Foods has embraced the mandatory nutritional labelling guidelines that include the use of the nutrition facts table. We also answer consumer questions regarding the nutritional properties of our products via our 1-800 number and our Internet portal, available on practically all of our retail products.
It's my understanding that one of the programs being evaluated by this committee is the so-called traffic light or stoplight program utilized by several companies, including McCain Foods in the United Kingdom. That program was adopted by our U.K. business unit as a result of two factors. First, there is no mandatory front-of-pack nutritional labelling program in Great Britain, as all programs are voluntary. Second, there was no clear industry best practice or consensus guiding front-of-package food nutritional labelling in Great Britain.
As a result, our Great Britain business decided to stick a foot in each pond by utilizing both the GDA and traffic light systems in a hybrid label in order to see what would work best for their consumers. In the future, should industry consensus and best practices emerge, it would be the intention of our Great Britain office to follow that consensus.
As for McCain Foods Canada's view of the use of a similar traffic light system based in this country, I can clearly state that we do not believe it would be in the best interest of our consumers. Frankly, we believe the current nutrition facts table is superior to the GB traffic light system in that it allows consumers to quickly and easily make informed choices, allows consumers to make meaningful comparisons between products, informs consumers on how to manage their total diet, and educates consumers about the nutritional content of foods. From the research I have seen from Great Britain, there does not appear to be a clear preference among consumers for a stoplight system.
Where should Canada be heading? I can only say that I believe off-the-shelf solutions from other jurisdictions with different public health profiles are not the answer. The current made-in-Canada solution seems to be meeting Canadian needs. In fact, according to research conducted by the Canadian Council of Food and Nutrition and Ipsos Reid, 77% of Canadians reported that they use the nutritional facts table as their source of information on food and nutrition, and nearly half of Canadians say that information provided on the nutritional facts table influences their decision of whether or not to buy a food or beverage product. In light of these results, any alternative labelling option should be carefully researched to ensure that it truly enhances and does not confuse the consumer's understanding of nutritional information and that it provides accurate and scientifically sound information.
Before we introduce new gimmicks to our consumers, I believe we should continue to spend our time, energy, and resources on encouraging Canadians to use, as well as on helping them understand how to use, the current nutritional facts table. In public policy, as in business, sometimes it is harder to stay the course and continue to support an existing strategy than it is to succumb to the temptation of something new.
Again, thank you for the opportunity to be with you today.