BRAMPTON, ON
Loblaw is continuing its expansion into ethnic foods with its recent acquisition of Arz Fine Foods, a Toronto-based Middle Eastern grocery retailer. Arz will operate as a unique operating division of Loblaw. Terms of the transaction were not disclosed.
Founded in 1989 by the Boyadjian family, Arz began as a specialty bakery and has since grown to include deli, fresh produce, halal meat, groceries, and ready-to-eat foods. The business also includes a 10,000 square foot retail store, commercial bakery, food commissary, and distribution center, according to a press release.
“This key partnership holds great promise as Canada’s Middle Eastern population and the Canadian taste for Middle Eastern food continues to grow,” said Vicente Trius, President of Loblaw. “Arz Fine Foods is a trusted Middle Eastern supermarket with strong product expertise. The combination of Arz Fine Foods and Loblaw will follow the same approach used with our T&T business, which introduced ethnic expertise and products into our broader business in a very authentic way.”
As one of the fastest growing market segments, Loblaw hopes the acquisition will better position the company to capture Canada’s Middle Eastern population, which represents about 2% of the country. In 2009, Loblaw acquired T&T for $225 million, helping the Asian retailer expand its then-17-store chain and its line of products, according to The Globe and Mail. Since then, T&T has grown to 22 stores and put 58 of its products into the Loblaw chain.
“This acquisition recognizes the commitment of our employees to become a leader in our field,” said Armand Boyadjian, Co-founder. “With Loblaw, we will continue to maintain our authenticity and enhance our customer experience and reach. This is a great opportunity to share our passion and products with even more Canadians.”
As Loblaw continues to broaden its grocery horizon, it’ll be interesting to see if the company will acquire any other ethnic grocers in the near future.
