March 14, 2016 Volume xxii, #11

“The advancement and diffusion of knowledge is the only guardian of true liberty.”
—James Madison (American statesman and fourth president of the United States, 1751-1836)

IN THIS ISSUE:

• Canadians connect with the world at Cologne Hardware Fair

• RONA, Lowe’s buyers to outline vendor opportunities at Meet the Buyers

• Lowe’s Canada president connects with Ace execs

• CanWel will acquire forest products producer Jemi Fibre

• PLUS: Certainteed snags Olympic skier, Pinard heads up sales at Globe Electric, Ply Gem and Mitten combine Regina operations, Bunnings’ entry to UK means clean sweep—and more!

Canadians connect with the world at Cologne Hardware Fair

COLOGNE, Germany ― For many vendors, North America has plenty of trade shows, thank you very much. But for about a dozen Canadian companies that braved the overseas travel―and attached costs―to attend Eisenwarenmesse, the International Hardware Fair, the results have paid off with often surprising effectiveness.

The International Hardware Fair was held last week in this city that flanks the Rhine in Germany’s North Rhine-Westphalia region. It attracted buyers from more than 50 countries, giving Canucks here a bonanza of potential new home improvement customers. Not only that, but Canadian buyers were well-represented here, as well.

Vendors included veterans of the event, such as Pierre Filiatrault of Montreal-based Cobra Anchors. “For us it is a very, very busy show,” he said, noting that the last time he was at the show he managed to secure German DIY retailer Bauhaus as a customer. His company sells wall anchors that are compatible with drywall, a technology that is slowly catching on in Europe. This, he says, puts his company in a good position to offer a solution to European buyers. This year, he’d already seen representatives from Leroy Merlin and Castorama, in addition to buyers from Turkey, China, France, and Eastern Europe. “We sell all over the place,” he added.

Other Canadian companies were also excited about their presence at the Cologne Fair. Representatives from Yardlock, a Mississauga, Ont.-based company with an innovative DIY gate lock, managed to pick up customers from six new countries on the first day alone.

Dave Martin of Home Hardware Stores Ltd. shared that, as the tool buyer, it made sense for him to represent his company at this show. “I’m always surprised at the potential suppliers you meet from countries you wouldn’t expect to see,” he observed, adding that the surprise factor is part of the appeal of the show. “Whether a meeting materializes into a solid connection remains to be seen,” but he added that he’d seen some interesting products, including a range of coloured plastic toolboxes from Poland. Even one good new vendor makes the trip worthwhile, Martin added.

An important aspect of the Hardware Fair for Canadians is the Canada Night International Reception, held at the end of day one of the fair. The event, hosted by HARDLINES and sponsored by the show's organizers, Koelnmesse, attracted about 75 people. Manufacturers included Task Tools and Swift Greenfilters from Vancouver, Cobra Anchors of Montreal, Ben-Mor from Saint-Hyacinthe, Que., Ingersoll Products from Ingersoll, Ont., and TC Tools out of Edmonton, who all got the chance to drink some German beer and meet buyers from Canadian Tire, Sears Canada, True Value, and Home Hardware. 

The evening was rounded out by an enthusiastic HARDLINES-style rendering of “O Canada,” a requisite part of Hardlines Canada Nights everywhere!

RONA, Lowe’s buyers to outline opportunities at Meet the Buyers

WORLD HQ, TORONTO — At the next Hardlines Meet the Buyer’s Breakfast, April 28 in Toronto, you will hear from senior merchants from two of Canada’s leading home improvement retailers: Lowe’s Canada and RONA inc.

Nick Malone, merchandising director, seasonal for Lowe’s Canada, will present. Malone will be accompanied by Igor Halencak, head of marketing and merchandising, and Neil Calhoun, merchandising director, home décor.

From RONA, we are pleased to announce that Marie-Soleil Tremblay, senior merchandising director, will also present. As senior merchant for RONA, she’ll represent the company’s entire buying team.

These buyers will explain to vendors what it takes to get―and stay―listed in their stores. They will represent their respective merchandising teams to tell vendors first-hand what preparations they need to make and what expectations they should have when they sit down with someone from their buying team.

Lowe’s Canada prez connects with Ace execs

BUTLER, Ill. & TORONTO — The countless Ace dealers in Canada who may be worried about the future of their banner now that it belongs to Lowe’s Canada got some reassurance last week.

Lowe’s Canada president Sylvain Prud’homme spoke with the president and CEO of Ace Hardware, John Venhuizen, and Jay Heubner, president of Ace International, the division that liaises with Ace Canada. In the call, Prud’homme reiterated his commitment to the Ace brand (see our February 15, 2016 edition. —your ever-helpful Editor), adding that Lowe’s intends to maintain the master license for Ace in Canada and “to support independent hardware retailers.”

The Ace executives were so heartened by the call that, at the urging of Prud’homme, they sent out a letter to all Ace dealers in Canada recapping the highlights of the call.  “Frankly, we were very encouraged after our discussion with Lowe’s Canada,” said the letter, which was signed by Ace’s Heubner, along with Ace Canada President Bill Morrison.

The letter goes on to state Ace’s commitment to keep growing the brand here: “For now, we want to underscore our commitment to advancing the Ace brand in Canada and our support of you. As previously stated, our allegiance and loyalties remain in support of our existing and prospective independent Ace owners.”

CanWel will acquire forest products producer Jemi Fibre

VANCOUVER ― CanWel Building Materials has reached an agreement to acquire forest products firm Jemi Fibre Corp. The transaction will result in Jemi Fibre becoming a wholly-owned subsidiary of CanWel and will combine Jemi Fibre’s operations with CanWel’s distribution platform.

With the addition of this forestry products company, CanWel will become a vertically integrated enterprise, with access to raw materials, value-added production, and full distribution capabilities to dealers across Canada.

Jemi Fibre has extensive holdings of forests and facilities. It owns about 136,000 acres of private timberlands, strategic crown licenses and tenures, log harvesting and trucking operations, several post and pole peeling facilities, two pressure-treated specialty wood production plants, and one specialty saw mill.

The deal involves CanWel acquiring all of Jemi’s common shares, which will be exchanged for CanWel shares on the basis of 31.13:1 basis. Approximately 2.53 million CanWel shares will be issued to Jemi shareholders.

DID YOU KNOW…?

RETAILER NEWS

PERTH, Australia — Wesfarmers has taken more direct control of its newly acquired British business by ousting most of Homebase’s top leadership, including its managing director, finance director, and marketing head. Wesfarmers bought Homebase earlier in the year for $705 million and will bring the latter’s 265 stores in the British Isles under the Bunnings brand, which has been one of the most successful home improvement chains in Wesfarmers’ home turf of Australia. Former Bunnings COO Peter Davis is taking the reins at Homebase, bringing with him his new finance director and fellow Bunnings vet Rodney Boys, The Australian reports.

SUPPLIER NEWS
MISSISSAUGA, Ont. ― Olympic skier Alexandre Bilodeau, who became the first Canadian to win an Olympic gold medal in Canada at the 2010 Vancouver-Whistler games, is teaming up with CertainTeed Insulation as its Quebec brand ambassador. As CertainTeed’s partner for 2016, Bilodeau will be featured in print and digital advertising. He will also appear at local trade shows and meet-and-greets at RONA stores, making his debut at next week’s RONA Contractor Show in Brossard, Que. Bilodeau says he is “hoping to raise awareness among Canadian homeowners of the importance of having the best insulation possible in a climate like ours in order to maximize the energy efficiency of our homes.”

REGINA ― In a first for its Canadian operations, Ply Gem and Mitten Building Products have combined facilities in Regina to form a single branch location, offering windows, doors, vinyl siding, aluminum, shakes, stone, etc., from one sales, showroom, and office facility. The branch location combines the operations of Ply Gem’s existing window and door distribution facility with Mitten’s former siding, shake, stone, accent, building envelope, and tools distribution facility. In May, Ply Gem will move to a brand-new facility at 106 Leonard Street. This new branch will combine all functions and include the same product offering, with improved racking and equipment.

MONTREAL ― Intertape Polymer reported that revenues decreased 2.5% to $195.7 million, primarily due to lost sales resulting from the South Carolina flood. Gross margin increased to 23.4% from 18%, attributed to an increase in the spread between selling prices and raw material costs, and an improvement in manufacturing performance. Net earnings increased $11.4 million to $17.5 million, primarily due to an increase in gross profit and a decrease in income tax expense, partially offset by an increase in variable compensation expense, and the impact of the flood.

PEOPLE ON THE MOVE
Julie Pinard is now vice president of sales at Globe Electric Company. She’s been with the Montreal-based lighting company for more than 10 years, most recently as director of sales.

ECONOMIC INDICATORS
Housing starts in February reached 212,594 units seasonally adjusted, up from 165,071 units in January. Urban starts increased by 30.9% to 200,231 units seasonally adjusted. Multiple urban starts increased by 46% in February and single-detached urban starts increased by 6%. In February, the seasonally adjusted annual rate of urban starts increased in British Columbia, Ontario, Quebec, and Atlantic Canada and decreased in the Prairies. Rural starts were estimated at a seasonally adjusted annual rate of 12,363 units. (StatCan)

The value of building permits fell 9.8% in January. This decline, which followed a 7.7% increase in December, was largely due to lower construction intentions for multi-family dwellings in British Columbia and Ontario and, to a lesser extent, institutional buildings in Quebec and Alberta. The value of residential building permits fell 12.5% to $4 billion in January, following an 11.5% increase the previous month. Declines were posted in seven provinces, led by Ontario, British Columbia, and Alberta. Nova Scotia, Saskatchewan, and New Brunswick recorded advances. (StatCan)

OVERHEARD…

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