Ontario agri-food venture provides entrepreneurs low-risk start
Food incubation hubs an important tool to help entrepreneurs move more fresh, local product
Ontario has set an ambitious goal: to double the growth of the agri-food sector and create 120,000 new jobs. One organization helping to reach that goal is the Greenbelt Fund, a non-profit organization devoted to increasing local food purchases in Ontario by supporting farmers, local food businesses and an innovative new type of facility aimed at assisting local producers.
Food incubation hubs and agri-food accelerators, known as IACs, are an important tool to help farmers and food entrepreneurs move more fresh, local food products throughout the province in partnership with the Government of Ontario.
Drew Stevens is one such food entrepreneur. As early as 2013, Stevens was known for his home-grown hot pepper products, dutifully gifting hot and spicy samples to friends and family. As his homemade hot sauces started gaining steam throughout the community, Stevens began to develop a business plan, dubbed Pepper North, that would see production move from a rented church kitchen to a large-scale industrial model. The only problem, says Stevens, was the means.
“There was no way I could keep producing the sauce in a rented church kitchen but I couldn’t afford an industrial kitchen,” Stevens says. “I would never pass all the health and safety regulations needed to put a product on a store shelf.”
It was around this time in 2016 that Stevens was introduced to The Ontario AgriFood Venture Centre (OAFVC), an IAC that gives local entrepreneurs a low-risk start. The OAFVC assists in the business development of local food products, supporting innovation in the $36B per year local food market.
The OAFVC’s small-batch food processing facility offers a wide range of services including a fully-equipped commercial kitchen, cold, frozen and dry storage, packaging and labelling. A recent $32,400 grant from the Greenbelt Fund allowed the OAFVC to add an automated bottling machine to its line up for products like Pepper North.
“At a facility like the OAFVC, one bottling machine can support a dozen local food businesses, which makes it a smart investment for the Greenbelt Fund as we look to support more local food entrepreneurs across Ontario,” says Kathy Macpherson, Vice President of the Greenbelt Fund. Since 2010, the Greenbelt Fund’s program has seen a 13:1 return on investment, generating a $112m increase in local food sales.
“If you can’t afford your own plant, you can rent a fully-equipped commercial food processing facility,” says OAFVC director Dan Borowec.
In less than three years, OAFVC has helped catapult numerous local businesses to success, just like Pepper North, whose products can now be found in 250 Ontario grocery stores with more on the horizon. It has allowed both Stevens and his wife, Ann, to leave their day jobs, focus on their business full-time and bring in new hires. It has also meant all their local suppliers for wild honey, maple, and tomatoes have seen an upswing in their business, too.
Also taking advantage of the new bottling equipment are Pete and Marla Bradford, speciality vinegar makers from Prince George County.
Over the past five years, the Bradfords have slowly built a cult-like following for their barrel-aged vinegars, a collaboration with Black Prince Winery under their Canadian Vinegar Cellars label. Last summer, the Bradford’s Canadian Vinegar Cellars line was invited to sell in a dozen Metro supermarkets throughout the region.
“There was no way we could keep bottling our products alone,” says Peter Bradford. To meet safety regulations as well as production targets, they needed a new place to produce their product.
The OAFVC has allowed them to do more than just brew and bottle their product. Canadian Vinegar’s brand labelling was redesigned with the help of OAFVC graphic artists, and the in-house corporate chef assisted with tasting notes prior to lab testing for ingredients.
“Then, there was the bottling, sealing and labelling — the whole deal. For a small business, it is amazing,” Bradford says. “We couldn’t afford to do this on our own.”
For the Greenbelt Fund, supporting innovators like the Bradfords is the end goal. “We see the Greenbelt Fund’s role as helping people with strong ideas and capacity in the local food sector to achieve their goals,” says Ed McDonnell, Greenbelt Fund CEO. “Enabling these entrepreneurs strengthens the local food sector and drives Ontario’s economic prosperity.”
At a facility like the OAFVC, one bottling machine can support a dozen local food businesses.