Ottawa M&A firm Sampford Advisors expanding into U.S. with Austin office

0

The company behind a series of mergers and acquisitions in the National Capital Region has picked Austin, Tex., for its first expansion south of the border.

Ottawa-based M&A consultancy Sampford Advisors announced the new office in an email to OBJ this week.

Sampford, which expanded its offices to Toronto three years ago, has made a splash in the capital after five years in business. The company has helped facilitate acquisitions for Solufy, ConceptShare and Martello, to name a few local examples.

The choice of Austin reflects the growing prominence of tech in markets across the United States, Sampford CEO Ed Bryant told OBJ.

While the Bay Area was once the hub for all things technology, the growing demand for engineers and tech entrepreneurs in mid-size markets is quickly increasing, he said. That, along with the surge in Austin’s population and corporate hirings, makes it a prime location for Sampford’s first U.S. office, Bryant added.

He noted that in the past five years Austin has seen 200 tech mergers, with nearly 600 across Texas overall. The city is also home to more than 15 startup incubators and is the birthplace of software successes such as BigCommerce and Indeed.

“Austin shares a lot of parallels with our current Canadian markets of Ottawa and Toronto with a large and growing tech scene,” said Bryant.

Most of Sampford’s buying clients are based in the U.S. already. And the consultancy has hopes of representing more U.S. clients going forward. 

Mike Lambrix, who currently works for Sampford out of Florida, will head up the company’s operations in Austin.

Mayor Watson tours Ottawa’s Chinatown restaurants to cast off coronavirus stigma

0

Amid the growing global concerns and stigma surrounding the novel coronavirus, a string of businesses in Ottawa’s Chinatown neighbourhood invited Mayor Jim Watson on a Somerset Street food tour Friday to help dispel misconceptions surrounding the outbreak.

“With the coronavirus situation that’s engulfing the world, there’s a lot of false information and rumours about everything from hand hygiene to where you can go and eat,” Watson told members of the media joining him for the tour. 

“We wanted to come out here and give a boost to the restaurants and Ottawa’s Chinatown here on Somerset and say they’re open for business, they need your business and support because they’re up against a lot of social media that’s inaccurate that says restaurants have any form of contaminants,” he said.

The first stop on the tour was Jadeland, which has been open in Chinatown since 1997.

Jadeland’s owner, Jimmy Chan, was grateful to have the mayor in for a visit. 

“With this time of year, our business is usually slow to begin with, but now with everything happening, it’s really slowed down and it affects everyone, mentally,” Chan said.

“Chinatown is quite close, we all know most of the owners, and when we see them, they say it’s been slow,” he said.

Chan said he was thankful to his loyal diners who continue to embrace Jadeland.

“We have regular customers, so we’re able to manage because we’ve been around for quite some time, 23 years,” he said. “But I know other restaurants that haven’t been around as long, and it’s harder to maintain the business.”

Mekong owner Winnie Zhang said she was thrilled to meet and serve Watson today.

Zhang mentioned that, like Jadeland, the ratio of patrons taking meals to go as opposed to dining in has grown significantly.

“There’s been a lot more take-out orders ​– more of our customers are feeling comfortable eating at home,” said Zhang. 

Grace Xin, the Chinatown BIA’s executive director, told Watson it’s evident that business has been slow as they sat in an empty restaurant during lunch hours. The mayor noted that it’s more important than ever to show up in-person to Chinatown businesses to shut down misinformation.

“Early on (in the novel coronavirus pandemic), we saw all sorts of really unfortunate comments bordering on racism in terms of kids treating Chinese kids differently in school yards and so on,” Watson said. 

“We need to ensure the community rallies behind these restaurants.”

Chatime owner Simon Huang said his Somerset bubble tea shop hasn’t experienced a big difference in terms of customer flow. Overall, however, he’s seen a drastic change in activity throughout Chinatown. 

“I think there’s a lot of hype with what’s going on, and I hate to use the word ‘fake news,’ but I just hope that everyone trusts what the city and health professionals tell them,” Zhang said.

Councillor Keith Egli also noted that the best location for residents to get the most accurate and up-to-date information is on Ottawa Public Health’s website and the city’s YouTube page.

Ottawa’s medical officer of health, Dr. Vera Etches, stated again there are no confirmed cases of the novel coronavirus in the city. She added there wouldn’t be a particular area or neighbourhood that’s at a greater risk than another. 

“This is not related to ethnicity or background, and absolutely it’s important to highlight that there are wonderful businesses along this street and community that we need to support,” said Etches.

Farm Boy hopes to perfect ‘urban’ formula with new Metcalfe Street store

0

After nearly six months of renovations and anticipation from the nearby community, Farm Boy’s newest store is now open at 193 Metcalfe St. in downtown Ottawa.

Having completely revamped the space which previously housed partner supermarket Sobeys, the 29,000-square-foot store features an open-concept layout that aims to encapsulate the retailer’s “urban” approach. As the Cornwall-born grocer looks to build its network in the Greater Toronto Area, it has to be sure its brand appeals to big-city shoppers.

“It’s more urban, but while keeping to our roots,” said Farm Boy co-CEO Jeff York. “It’s the brand we’re transitioning from Cornwall to downtown Toronto, so you want to respect the heritage but you want to also become more relevant to the younger customer.”

Speaking to OBJ at the store’s grand opening Thursday, York said the new Metcalfe Street location came about following a debrief with Sobeys and Empire, the two grocers’ parent company. Empire acquired Farm Boy in an $800-million deal at the tail end of 2018.

The decision to replace the existing Sobeys with a Farm Boy came down to a question of which brand would fit best in the prime downtown retail location. If the experiment works, York said the strategy could be duplicated in other locations.

Inside, the new store keeps the chain’s authentic look and feel – along with Mikey the Monkey swinging from the ceiling – while adding modern elements. New features include Ottawa-inspired art and graphics throughout the interior and exterior, keeping the theme local to appeal to those in the neighbourhood.

Farm BoyFarm Boy1Farm Boy2

Outside, a patio spread across the Metcalfe-side entrance is set to open in May or June, offering a pergola-like setting with wooden lattice to give the feeling of being both open and enclosed.

“With new architectural designs, we wanted to make it feel more urban, like the area,” said Farm Boy marketing manager Jim Empey.

The flow of the space changed completely from its former Sobeys identity with separate enclaves that house each food category.

“The idea was to have multiple shops within the store,” said York. “We want to address all the needs of the consumers in the specialty areas, because we find that’s what the customers expect us to do. If there’s something that’s new or healthier or it’s grass-fed, whatever’s important to the customer we do our best to meet that demand.”

After opening a store in the Rideau Centre a couple of years ago, the company found there was a desire from customers for more fresh foods and ready-to-go meals. The new location now offers the largest grab-and-go selection of any of its stores.

“It’s an evolution. If you think you know what the customer wants, you’re wrong.”

“We saw people wanted to get a lot more grab-and-go healthier food,” York said. “We don’t sell ‘health food,’ we sell healthier food and then (make) it convenient for the customer, since most are time-starved down here.

“It’s an evolution. If you think you know what the customer wants, you’re wrong. It keeps changing and our job is to stay on top of it to meet the needs and wants of the consumers.”

Ottawa’s Welbi wins funding at Silicon Valley pitch competition

0

The opportunity to pitch in Silicon Valley is a coveted one for entrepreneurs all over the world. With an estimated $275 billion in annual output, it’s home to billionaires backing tech giants and fast-scaling startups. 

But despite these impressive numbers, women-led companies received just three per cent of venture capital funding in 2019, according to a recent Crunchbase report. The SoGal Global Pitch Competition, held this past week in Silicon Valley, is on a mission to change this by providing better support to women and diverse entrepreneurs.

After winning the Ottawa regional round, startups Welbi, founded by Elizabeth Audette-Bourdeau, and Thawrih, founded by Sarah Abood, were invited to the final round to pitch to top-tier VCs for over US$600,000 in investment. Representatives from our local SoGal chapter were along for the ride to cheer on our Ottawa hopefuls.

To get to this final stage, Audette-Bourdeau and Abood had been selected from a crop of 1,700 applications across 25 regional rounds, making these Ottawa-based entrepreneurs two of 60 global founders vying for the big win.

Following two days of educational programming with industry leaders, it was time for the pitch competition itself. With hundreds in the audience watching the founders share their businesses, both Audette-Bourdeau and Abood each took the stage with confidence in their pitches.

First up was Abood. Thawrih addresses a gap in the market with a social impact. The company developes activewear aimed at Sikh and Muslim athletes, crafting traditionally-heavy cloth hijabs and turbans from more breathable materials.

“When I was a personal trainer, my clients would constantly complain about what was available [as sportswear],” Abood said during her pitch. “They could never find the right hijab or turban to fit their needs.”

Thawrih

Thawrih’s products are handmade in Ottawa, providing employment opportunities to Canadian newcomers in the city. Thawrih aims to empower newcomer women to enter sustainable employment in the Canadian labour force, provide for their families and support their integration. “At Thawrih, we believe everyone should be comfortable and confident owning [their] skin,” Abood said.

Follwing her was Audette-Bourdeau. Welbi is a platform improving the quality of life for seniors living in residences by automating wellness programming, freeing staff to improve the quality of life for seniors. By reducing social isolation for this population, Welbi helps the community foster better relationships and communication between staff, families and residents. The company has been around for a few years now, but was named one of Techopia’s tech firms to watch in 2020.

And why should investors care? “Already with our platform, we’ve had amazing results,” Audette-Bourdeau said during her pitch. “We are reducing the administrative time by 25 hours per month. That’s 25 hours now spent with the residents making sure that they’re happy and having a great time, instead of spending it in front of their desk. We are keeping the recreation teams on track with all their assessments and we’re doing analysis of all the data that is entered onto our platform. Then we’re making recommendations as to how they can improve the life of their residents.”

Welbi

Audette-Bourdeau said Welbi’s potential market is in the billions, considering the number of retirement residences across North America alone. With baby boomers entering retirement in the next ten years, those figures are expected to double in the coming decade.

“This year has been very exciting! We’ve been working with the largest retirement home group in Canada — second largest in North America — Revera, through their Innovators in Aging program, and we’re set to scale to 265 homes in 2020. Our objective for the year is 500 — but obviously, we will try to go higher to have a larger impact,” Audette-Bourdeau said, driving her point home.

After an hour of deliberation, the judges came back with their verdict: Welbi was one of 11 winners, receiving US$25,000 in investments from SoGal Ventures.

“It’s an honour to be one of the 11 winning startups, and to represent Canada at the largest global pitch competition for diverse entrepreneurship,” said Audette-Bourdeau after Welbi’s victory. “It’s been amazing to meet all these female founders doing incredible work around the world. Each one of them is changing people’s lives, and SoGal Ventures is doing important work by investing in them. This is what creates a sustainable ecosystem for women founders.”

Though she wasn’t among the finalists, Abood said she took plenty of value away from her trip to California.

“I was really inspired by everyone that we met here — people had some crazy ideas from creating menstrual pads in Africa to helping stop breast cancer. It’s been really inspiring.”

SoGal Ottawa continues in the months ahead under new leadership, with team behind Nurtured Life, an Ottawa startup focused on at-home wellness services, carrying the torch forward.

Ottawa realtors record most February home sales in 15 years

0

Following a record-breaking 2019 and a minor dip in January, February’s home sales numbers suggest Ottawa’s resale market is back on the rise. 

Ottawa Real Estate Board members sold 1,141 residential properties this February, an increase of 13.9 per cent compared to 2019.

Sales included 835 units in the residential-property class, up 10.9 per cent from last year. Condominium properties accounted for 306 sales, an increase of 22.9 per cent.

The five-year average for total unit sales in February is 1,006.

“Activity overall has gone up with more listings coming on the market (though still well below the five-year average) and the highest number of February transactions in over 15 years,” said OREB president Deborah Burgoyne in a statement.

Meanwhile, housing prices continue to spike in year-over-year comparisons. Average sale prices for a condo-class property increased 21.3 per cent from this time last year to $349,813. The average residential-class property sold for $563,694, an increase of 21.1 per cent from last year.

“These increases are a direct result of the sustained lack of inventory putting upward pressure on prices, and this trend is likely to persist until supply recovers and is bolstered with newly constructed units,” Burgoyne said.

“Multiple offers have become commonplace in certain pockets of the city, and one of the Board’s statistical indicators shows that approximately 58 per cent of properties are selling for over the asking price, compared to 32 per cent of properties a year ago.”

The average days on market for residential properties also decreased to 30 days, down 12 per cent. Condominiums dropped 58 per cent with an average of only 19 days up for sale.

Burgoyne added that in Ottawa’s most sought-after neighbourhood, “sold signs are going up after only one to two days.”

The most-active price range in the residential market was $400,000 to $549,999, which accounted for 39 per cent of total units sold. The most common prices for condos ranged from $250,000 to $399,999, making up 55 per cent of February’s transactions.

Burgoyne suspects that with the upcoming spring months, the market is sure to see a frenzy of action before the weather catches up.

Invest Ottawa, Capital Angel Network launch funding bootcamp for women

0

With an audience of female entrepreneurs and investors in the room, Capital Angel Network and Invest Ottawa unveiled a new joint program Tuesday aimed at promoting funding for local startups led by women of all stripes.

During their Womxn Angel Investor Breakfast, the two organizations unveiled SheBoot, an investment-ready bootcamp bringing together the strengths and knowledge from Ottawa’s top female business leaders and tech mentors.

The breakfast is part of a series of International Womxn’s Week events held across the city – the non-traditional spelling of “womxn” is meant to explicitly include everyone who identifies as a woman, including trans and non-binary individuals.

The bootcamp looks to increase the flow of funding for female-founded firms, a tap that’s run notoriously dry worldwide. Only three per cent of venture capital went to women-led companies in 2019, according to a Crunchbase report.

Jennifer Francis, the chair of CAN, said Tuesday that the women-designed program is meant to help catalyze growth and success of women-led scalable startups here in Ottawa. In a true win-win scenario, a focus on these underrepresented companies in the startup community has recently bolstered the ranks of Francis’s organization.

“I would attribute the growth of the Capital Angel Network to these events,” she said.

“We’ve gone from under 10 per cent female to over 20 per cent female membership. Our new members are 33 per cent female, and I would largely attribute it to these types of events. And correspondingly, we’ve invested in more female founders.”

The four-week SheBoot program is designed to mentor, educate and equip women with the necessary and fundamental skills to excel in the investment world. The end of the program will feature a pitch competition where the winner will have a chance to earn up to $100,000 in investments from women angels in Ottawa.

Officials with the two organizations are under no illusions that a month of workshops will bring about gender equity in Ottawa’s investment community overnight. But SheBoot could be an important step towards that goal.

“Together we build a strategy, a plan,” said Invest Ottawa vice-president Sonya Shorey. “I want to stress that it is a plan, it’s a journey with a long way to go. Our hope is to have [SheBoot] delivered more consistently and our long-term goal is to build a pipeline for future female funders.”

Panelists break down funding challenges

During Tuesday’s breakfast at Bayview Yards, Francis moderated a panel of guest speakers who each added perspectives from both the funders and the founders side of investments.

Nadine Martel, a consultant and new member of the Ottawa angel community, explained her path to investing was more about finding intent and making an impact with her money. 

“I decided to invest in women entrepreneurs and Ottawa startups,” Martel told the crowd. “And I wanted to look at startups that are addressing UN sustainable development goals, since that’s important to me.”

Martel said everyone brings something to the table regardless of their background and expertise. 

“We need more diversity to join the investment world. Even if you don’t have a tech background, everyone has something to offer.”

Francis noted that having more female representation and role models in higher positions helps in overall retention rates. 

“Studies show that women who work in tech who have a female mentor are far more likely to stay in tech,” she said during the panel.

“About 20 to 22 per cent of the starting work force in tech companies are female, but by the executive level it drops down to about five per cent. Having a female mentor does make a difference in retention.”

Neha Kehra, partner at 500 Startups, admitted that it shocked her at first that investing was much less about numbers, data and spreadsheets than it was about relationships.

“That was a really interesting side aspect of this whole world that wasn’t very obvious at the onset,” said Kehra.

Building those bonds and encouraging networking with like-minded individuals are some of SheBoot’s goals. Workshops will also teach participants strategies for pitching and how to handle the room when potentially facing an all-male committee.

Ashleigh Kennedy, CEO of Ottawa-based concussion therapy startup Neurovine, spoke about the challenges and differences of speaking to a room full of men versus having women involved. 

“The conversation can be so black and white with men,” said Kennedy. “If the room is engaged, it’s good conversation. If the room is not engaged, then the meeting is over. With women, the conversation grows and more questions are asked.”

Applications for SheBoot will be open in the coming months. For more information, click here.

Invest Ottawa, Capital Angel Network launch funding bootcamp for women

0

With an audience of female entrepreneurs and investors in the room, Capital Angel Network and Invest Ottawa unveiled a new joint program Tuesday aimed at promoting funding for local startups led by women of all stripes.

During their Womxn Angel Investor Breakfast, the two organizations unveiled SheBoot, an investment-ready bootcamp bringing together the strengths and knowledge from Ottawa’s top female business leaders and tech mentors.

The breakfast is part of a series of International Womxn’s Week events held across the city – the non-traditional spelling of “womxn” is meant to explicitly include everyone who identifies as a woman, including trans and non-binary individuals.

The bootcamp looks to increase the flow of funding for female-founded firms, a tap that’s run notoriously dry worldwide. Only three per cent of venture capital went to women-led companies in 2019, according to a Crunchbase report.

Jennifer Francis, the chair of CAN, said Tuesday that the women-designed program is meant to help catalyze growth and success of women-led scalable startups here in Ottawa. In a true win-win scenario, a focus on these underrepresented companies in the startup community has recently bolstered the ranks of Francis’s organization.

“I would attribute the growth of the Capital Angel Network to these events,” she said.

“We’ve gone from under 10 per cent female to over 20 per cent female membership. Our new members are 33 per cent female, and I would largely attribute it to these types of events. And correspondingly, we’ve invested in more female founders.”

The four-week SheBoot program is designed to mentor, educate and equip women with the necessary and fundamental skills to excel in the investment world. The end of the program will feature a pitch competition where the winner will have a chance to earn up to $100,000 in investments from women angels in Ottawa.

Officials with the two organizations are under no illusions that a month of workshops will bring about gender equity in Ottawa’s investment community overnight. But SheBoot could be an important step towards that goal.

“Together we build a strategy, a plan,” said Invest Ottawa vice-president Sonya Shorey. “I want to stress that it is a plan, it’s a journey with a long way to go. Our hope is to have [SheBoot] delivered more consistently and our long-term goal is to build a pipeline for future female funders.”

Panelists break down funding challenges

During Tuesday’s breakfast at Bayview Yards, Francis moderated a panel of guest speakers who each added perspectives from both the funders and the founders side of investments.

Nadine Martel, a consultant and new member of the Ottawa angel community, explained her path to investing was more about finding intent and making an impact with her money. 

“I decided to invest in women entrepreneurs and Ottawa startups,” Martel told the crowd. “And I wanted to look at startups that are addressing UN sustainable development goals, since that’s important to me.”

Martel said everyone brings something to the table regardless of their background and expertise. 

“We need more diversity to join the investment world. Even if you don’t have a tech background, everyone has something to offer.”

Francis noted that having more female representation and role models in higher positions helps in overall retention rates. 

“Studies show that women who work in tech who have a female mentor are far more likely to stay in tech,” she said during the panel.

“About 20 to 22 per cent of the starting work force in tech companies are female, but by the executive level it drops down to about five per cent. Having a female mentor does make a difference in retention.”

Neha Kehra, partner at 500 Startups, admitted that it shocked her at first that investing was much less about numbers, data and spreadsheets than it was about relationships.

“That was a really interesting side aspect of this whole world that wasn’t very obvious at the onset,” said Kehra.

Building those bonds and encouraging networking with like-minded individuals are some of SheBoot’s goals. Workshops will also teach participants strategies for pitching and how to handle the room when potentially facing an all-male committee.

Ashleigh Kennedy, CEO of Ottawa-based concussion therapy startup Neurovine, spoke about the challenges and differences of speaking to a room full of men versus having women involved. 

“The conversation can be so black and white with men,” said Kennedy. “If the room is engaged, it’s good conversation. If the room is not engaged, then the meeting is over. With women, the conversation grows and more questions are asked.”

Applications for SheBoot will be open in the coming months. For more information, click here.

Tackling Eastern Ontario’s talent shortage

0

Less than a week into February, 97 jobs had already been listed on the City of Cornwall’s job board, bringing the total to more than 200 openings available to job seekers. The jobs range from selling paint, delivering pizzas, grooming pets and mopping floors at midnight to completing tax returns, ensuring the safety of at-risk children as well as a variety of roles at the Cornwall Community Hospital.

Bob Peters, manager of Cornwall Economic Development, says it’s standard for 200 jobs to be up on the site at any time. It’s a handy resource for individuals who no longer need to search dozens of company websites for openings. It also neatly illustrates the biggest issue facing regional communities as they grapple with slow population growth and rapidly aging communities: Finding enough people to meet the growing demand of local employers.

Cornwall’s job board is just one of the strategies that Eastern Ontario municipalities are turning to in a bid to attract workers.

Ontario’s Ministry of Finance estimates that Eastern Ontario’s population, including the City of Ottawa, will rise by one-third from 2016 to 2046, from 1.82 million to slightly more than 2.41 million. 

While Ottawa’s population is expected to increase by 44 per cent, that healthy level of projected growth is not projected to be replicated in the region’s rural areas.

Immigration

Politicians and policymakers have been working for years to reverse those projected trends. In December, the provincial government announced a Regional Immigration Pilot program that grants permanent residency to foreign workers willing to work in 13 manufacturing job categories in Cornwall, Chatham-Kent and Belleville/Quinte West. The program requires employers to offer a job to a foreign worker and then recommend them as a potential immigrant to the province.

While welcoming the program, Peters cautioned against “overselling it” because the eventual granting of permanent residency remains a federal government responsibility, with the province only “supporting the immigrant’s path to permanency.”  That caution was shared by Renfrew County economic development manager Alastair Baird, who noted that governments have experimented with various pilot projects for a decade without meaningful results.

Janet Deline, a spokesperson for the Ministry of Labour, Training and Skills Development, acknowledged the two-year pilot alone would not solve the problem. However, she said the government would monitor its success and may use it as a model for other communities.

Another strategy involves using post-secondary institutions to introduce young people to the region.

Glenn Vollebregt, the CEO of St. Lawrence College, said 90 per cent of the school’s students stay in Eastern Ontario after graduation, increasing the labour pool for local employers.

With campuses in Cornwall, Brockville and Kingston, St. Lawrence College decided in 2010 to aggressively target international students to maintain its student numbers in an increasingly competitive market for higher education.

Thanks to targeted marketing campaigns and recruitment agents in offices all over the world, Vollebregt says international student numbers have grown from just 85 individuals three years ago to a projected 2,000 students by this fall – representing about 22 per cent of the college’s total enrollment.

Vollebregt aims for his international student cohort to diversify – recruiters have attracted students from 51 countries, but India and China are the largest source of recruits – and eventually grow it to represent 40 per cent of St. Lawrence’s total student body.

“When we recruit students to St. Lawrence, our goal and theirs is to get a job,” Vollebregt said. “Once they settle into our communities they generally stay and that’s so important for rural Eastern Ontario.”

St. Lawrence College also partnered with the Ontario government and the economic development offices of Leeds and Grenville, Brockville, Prescott and Gananoque last year to create a manufacturing skills training program for 50 unemployed residents, called Pathways to Production.

This program, now at the three-quarters mark, is already starting to fill available entry-level positions, said Leeds and Grenville economic development manager Ann Weir. Talent attraction and workforce development have become a strategic focus for the municipality’s council, and Weir said it is constantly working with local school boards to “narrow the gap” between employers and educators. 

Renfrew County’s Baird said retaining and expanding the community’s workforce is its highest economic development priority. Multiple businesses in Renfrew County with expansion plans struggle to find suitable employees. In response, the county has ramped up its promotional activities and presence at job fairs in the province.

Promoting Eastern Ontario’s advantages – its lifestyle and proximity to major population centres – is also a key theme for Lianne Ing, vice-president of Bubble Technology Industries, a radiation, explosives and research company based in Chalk River.

Ing suggested that programs aimed at making it easier for spouses of prospective employees drawn to Eastern Ontario by Bubble Technology Industries and other employers to find a job would greatly aid her recruitment efforts.

Ian Murdoch, business development manager at Kingston Economic Development, said it was precisely that issue which led the City of Kingston to establish the Dual Career Support Program. This program links a relocating spouse up with a career and relocation specialist to provide job searching assistance, networking opportunities and referrals to local support services.

Kingston has also become a referral partner for Global Skills Strategy. This program allows visa applications from highly skilled international applicants to be fast-tracked for certain positions. Another program, the Queen’s Career Apprenticeship, grants employers up to 40 per cent of the cost of hiring a Queen’s University arts or humanities graduate for 12 months in a bid to provide students with an incentive to stay in the region after graduation.

Despite all these efforts by individual communities, Peters says a concerted effort is needed by all levels of government to ensure more immigration reaches Ontario’s regional areas beyond the major cities. 

“That’s the challenge – there’s not much that Cornwall can do to change a worldwide phenomenon,” he said.

Five-year population change from the 2016 Census:

Ontario: 4.6%

City of Ottawa: 5.9%

Leeds and Grenville: 1.2%

County of Renfrew: 1.1%

Cornwall: 0.5%

Kingston: 0.4%

 

Chinese investors prepare to open $225M infant formula factory

0

China’s single-largest investment in Canada’s agriculture and food sector – a massive infant formula factory in Kingston – is accelerating interest in Eastern Ontario among businesses in the Asian country, local officials say.

Ian Murdoch, business development officer at Kingston Economic Development Corp., says he’s received several calls from Chinese companies looking at investment opportunities in the area in the last eight months. He credits most of those calls to Feihe International’s construction of a 300,000-square-foot infant formula plant in the city, under the name of Canada Royal Milk.

“An investment like this puts Kingston and the area on the map for Chinese investment, and we’ve had several requests from China looking for different types of businesses,” Murdoch says. 

“The Chinese market probably sees this investment as a safe one, so what other businesses will do now is look at Kingston as a destination that’s welcoming foreign investment, especially from China.”

“A​​​​​n investment like this puts Kingston and the area on the map for Chinese investment”

Chinese investment in Ontario has totalled $14.6 billion since 1993, putting the province third behind Alberta ($49.7 billion) and British Columbia ($20.2 billion), according to the University of Alberta China Institute’s investment tracker.

Institute director Gordon Houlden says the $225-million Canada Royal Milk investment, characterized as a greenfield investment, is the biggest Chinese investment in Canada’s agriculture and food sector, which includes 20 individual investments totalling $448 million.

Seven of those investments have been in Ontario, at a combined value of $264 million. Of the 13 sectors tracked by the institute, Canada’s food and agriculture sector ranks 10th for total Chinese investment. 

“It is reasonable to assume that, given our reputation as a safe and reliable food producer, similar greenfield investments could flow into Canada to meet the needs of China’s growing middle class,” Houlden says.

He adds public commitments in 2018 by Canada’s ambassador to the United States, David MacNaughton, to ensure the Kingston infant formula plant was not adversely affected by the yet-to-be-ratified United States-Mexico-Canada trade agreement, demonstrated the investment’s importance to the Canadian economy.

Houlden says those promises would have reassured Chinese investors and been viewed as an “encouraging sign for business/investor confidence.”

Consumer confidence

Feihe is reportedly the only major Chinese milk powder company to remain successful in China following the 2008 milk scandal that led to the hospitalization of around 54,000 babies. Houlden says other Chinese dairy and infant formula producers may turn to Canada in a bid to “recapture the confidence of consumers.” 

Houlden predicted China would continue to seek investment opportunities and increase protein imports from abroad, given that only 10 per cent of its land is arable and its population of 1.4 billion continues to grow.

Chinese companies have aggressively invested in the dairy and agriculture sectors of countries around the world. For example, Chinese-owned Moon Lake Investments purchased Australia’s largest dairy company – Van Diemen’s Land Co. – in 2016.

The international interest comes despite confusion over Canada Royal Milk’s launch date, listed as both “soon” and in September 2019 on its website.

Canada Royal Milk did not respond to requests for comment.

Murdoch says his understanding is that Canada Royal Milk is still looking to fill positions at the plant before launching.

Ontario Federation of Agriculture director Jackie Kelly-Pemberton says she had been told by her members that the plant would initially begin operations at below capacity because of a lack of local supply.

Kelly-Pemberton says the plant, once it begins operating, would provide “another great avenue” for local farmers as well as opportunities to grow.

She says she has had no indication of further foreign investment in Ontario’s dairy or agricultural sectors but added there were opportunities for similar investments in the province and around the country.

Now ‘almost mainstream,’ car sharing has early roots in Ottawa

0

The co-founder of a pioneering car-sharing company said he is proud Ottawa was early to embrace the emerging trend in transportation.  

Co-founders Wilson Wood and Chris Bradshaw launched Vrtucar in Ottawa in 2000, based on a similar service started in Quebec City known as Communauto. Vrtucar later merged with Communauto in 2016.

“The idea (was) that cars and cities were never designed for each other,” Wood said. 

The car-sharing trend originated in Europe before making its way across the Atlantic to Canada. Ottawa was one of the first North American cities to embrace the service.

Car-sharing services see users pay membership fees for access to a fleet of cars. The company takes care of all aspects of vehicle ownership, such as maintenance and parking, and the membership fee includes insurance for the driver. Drivers then book the vehicles online. 

“I like that I can get a car with fairly short notice for quick errands that I may not be able to do with public transit,” said Laura Laskey, who has been a member of Vrtucar for five years. “I’m also able to use Vrtucar for longer trips, like camping.”

The business, which now has about 5,000 users in Ottawa, started with just five staff members and one car — a silver Toyota Echo. 

Before launching the business, Wood and Bradshaw got in touch with one of the pioneers of Canadian car sharing, Benoît Robert, president of Communauto. Robert became crucial in helping them launch their service in Ottawa and remains a key figure in the company’s future.

By the end of the first year, Vrtucar expanded to 35 users and three cars. The next several years experienced slow but steady growth until about 2004-05 when the membership increased rapidly, Wood said.

As for what led to the growth, Wood said it was the company’s philosophy.  

“The car is secondary, it’s the concept: The car is just an appliance,” he said. “The real efficiency is that you have about 25 users sharing one car.”

Typically, 10 of those 25 users have either sold their car, delayed the purchase of a vehicle or never bought a car in the first place, Wood added. The idea is that car sharing works in conjunction with public transit, not that it competes with it. 

Nick Stow, a senior planner with the City of Ottawa, has been a Vrtucar and then Communauto member for more than 10 years. He said using the combination of a bike, public transit and Communauto means there is no need for him to own a vehicle. 

“For someone who lives downtown, it allows me to live my life without an automobile,” he said. “Vrtucar (Communauto) allows me to do things that I can’t do on a bicycle.” 

Wood said joining forces with Communauto felt like a natural fit. The two companies had been working together for years, and Vrtucar was even using Communauto’s vehicle booking software. 

The merger ensured that car sharing would have a future in Ottawa as Wood eyes retirement. 

“We’re community-based, public transit-focused car sharing. That was my belief; that’s what (Robert) believes. So it was a natural merger,” Wood said. 

Both Laskey and Stow said they haven’t noticed any difference in service since the companies merged. 

Wood said the only real task has been switching the car decals that say Vrtucar to Communauto — something he hopes to have completed within the next year. 

Additionally, Communauto has kept the same staff in Ottawa and even moved its call service to the national capital, adding additional employees and bringing the local headcount up to 15. Wood’s former business partner Bradshaw died in November 2018 but is remembered for his environmental advocacy involving projects such as Vrtucar. 

Along with Ottawa, Communauto has service in Waterloo, Hamilton, London, Guelph, Kingston, Toronto, Montreal, Quebec City, Gatineau, Sherbrooke, Edmonton, Halifax and Paris.

After 25 years in business, Communauto has about 50,000 users and 2,200 vehicles, but Wood said there is still room to grow. 

He said he has a vision of a city where cars are not vital and vehicle ownership isn’t common. 

“I don’t really like cars,” he said with a laugh.

Looking back, Wood said he is proud Ottawa was one of the early cities to get in on the car-sharing trend, adding this reflects a lot on the people who live there. 

“It’s a testament to the people of Ottawa who said, ‘Oh yeah, that idea is just crazy enough to work’,” he said. “It’s now almost mainstream.”