George Weston Ltd. has long been an anchor name in Canadian food production and marketing. The company is currently the largest such business in Canada. But only a few of us remember (or have done the research to find out) where Weston’s started, and can appreciate how far they’ve come…
The Weston Model Bakery in Toronto, c. 1899
Weston foods quietly announced the closure of a deal to sell its last bakery business this past week. The brief news release stated that, “With the sale of the ambient bakery business to Hearthside Food Solutions, LLC., and the previously announced completed sale of the fresh and frozen bakery businesses, George Weston has now sold its entire bakery business…”
But that simple statement marked a major milestone in Canadian food history. That’s because Weston’s started out as a bakery in 1882. The company website encapsulates it nicely:
“In 1882, a young Toronto bread salesman and former baker’s apprentice named George Weston went into business for himself when he bought a bread route from his employer. By the turn of the century, Weston’s Bread was known throughout the city and George Weston had become Canada’s biggest baker.”
The company continued to grow, through several more generations of Westons, until it became Canada’s biggest food conglomerate, with its fingers into just about every aspect of food production and marketing in the country. That is, until the company – under the leadership of Galen Weston, great-great grandson of the founder (pictured at top of page) – started to modernize and streamline the business in 2006. It’s still huge and getting bigger, but Weston’s corporate direction has changed.
Never heard of Weston’s?
Well, if you’re a Canadian who buys groceries, you’ve heard of Loblaw’s. Weston’s bought Loblaw’s to get into the supermarket and real estate business, and the Loblaw Companies have blossomed into a formidable organization.
The Company operates more than 2,400 locations under a whole encyclopedia of banners including: Loblaws, Zehrs, Your Independent Grocer, Provigo, Atlantic Superstore, Fortinos, Dominion, Independent City Market, Freshmart, Valu-mart, ARZ Fine Foods, Real Canadian Wholesale Club, T&T Supermarket, Real Canadian Liquorstore, Real Canadian Superstore, No Frills, Maxi, Extra Foods, and Pharmaprix.
It also owns a whole slew of product brands including No Name, President’s Choice, Life Brand, and Joe Fresh, along with Shopper’s Drug Mart, PC Financial and the PC Optimum Rewards Program.
A family connection…
My paternal grandfather worked business magic of a sort to survive in the Great Depression. He rented a wagon from a guy who no longer had a horse, and a horse from a guy who no longer had a wagon. And he made the rounds of his Lakeview Beach neighbourhood several times a day delivering different commodities and services. My dad dropped out of school to help, as granddad first went around his route (before dawn) delivering ice, then went around again delivering milk. Later on, he did the route again delivering bread. And finally, he made the rounds of the summer homes of Lakeview, a posh lakeside summer home community on Lake Ontario, picking up and delivering laundry. Grandma and Dad’s sister, Dorothy, washed the linens.
There was a lively rivalry among the bread makers and their delivery brigades at that time; many bakeries, all fighting for their share of the tight market. I remember my granddad (when he’d had a few) reciting on old Canada Bread Company hazing chant aimed at competitor Brown’s (long gone): “Brown’s Bread is full of lead! The more you eat, the quicker you’re dead!”
Competiton is a good thing
I’m sure Brown’s delivery drivers had just as bad or worse things to say about their Canada Bread counterparts. But the point is, there was spirited competition in the bread business in days gone by. Not so much now. In fact, as late as 2017, Loblaw’s was accused of ‘cooperating’ with Weston bakeries and Canada Bread to ‘fix’ bread prices, reaping unwarranted profits. Keep in mind that Loblaw’s and Weston Bakeries were both owned by Weston Foods at the time. But Weston’s tap-danced its way out of really big legal and publicity trouble.
“As a result of the co-operation we have provided to the Competition Bureau, neither George Weston Ltd. nor Loblaw or their respective employees will face criminal charges or penalties,” Weston’s and Loblaw’s CEO Galen Weston told the Canadian Press. “This is a difficult matter and clearly something that never should have happened.”
Weston also noted that the people in both the Weston’s and Loblaw’s organizations who were responsible for the price fixing ‘cooperation’ scheme had been fired.
Restructuring a giant
Anyway… That was probably the impetus for Weston’s to start shedding its bread and other bakery businesses. And, as of this past week, they’re completely out of the bakery business. According to George Weston Ltd., the company, “will focus on its retail and real estate businesses going forward.”
~ Maggie J.