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August 2007 - Strategy Magazine
Biz

Sweet survival
How Ganong has managed to compete with the big guys for over 100 years

by Annette Bourdeau
page 11

HQ: St. Stephen, N.B.

Agency partners: C2 Communications (Moncton, N.B.), OnBrand Design, Toronto (package design)

After doubling its sales volume over 2000 to 2004, St. Stephen, N.B.-based Ganong Bros. was hit hard by the strengthening Canadian dollar in 2005 and lost a significant amount of its stateside business. Canada's oldest chocolate company that distributes to the retail trade was forced to step back and re-evaluate its strategy, and really focus on building its core strengths, including its strong community ties and family involvement in the business.

Ganong's eight-person marketing team, including VP sales and marketing Greg Fash, had to be savvier with its leaner budget. So it focused its dollars on web communities like Chatelaine.com and LOULOU.com, as well as PR efforts through a partnership with the Canadian Breast Cancer Foundation and media events hosted by company spokesperson Bryana Ganong.

Since two of its core brands - Delecto boxed chocolates and Fruitfull fruit jellies - are primarily gift-giving products, Ganong concentrates most of its marketing efforts around the December holiday season. Its third-biggest performer, Sunkist Fruit First fruit snacks, is supported by frequent package and product innovation, like last year's launch of sugar-free fruit snacks.

The company already has a rock-solid relationship with St. Stephen, population 4,500, which it fosters by coproducing the community-led Chocolate Museum and annual Chocolate Fest. For the latter, Ganong hosts tours of its factory for four days, over which it attracts an

average of 4,000 to 5,000 visitors, exceeding the town's population.

Its focused efforts are beginning to pay off: This year, it's just about back up to its peak numbers and a full staff of almost 400, and continues to grow, with plans to expand the branded products' presence in Asia. President David Ganong aims to double the business again over the next five to 10 years, proving that a small, family-controlled Canadian business can hold its own against the big guys.

Strategy spoke with Ganong and Fash about how the company has strengthened its brand with community efforts, cause marketing and online tactics, as well as how it supplements its branded business by picking up contract work from its Goliath competitors, which keep closing more and more of their own plants.

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