Toronto Star

French-fried Vitamin C

PRAISE THE POTATO: McCain campaigns to improve the spud’s image

- DANA FLAVELLE BUSINESS REPORTER

Pity the poor potato: The victim of almost every fashionabl­e food fad, from trans fat to obesity rates, not to mention the lowcarb diet craze. But the lowly spud is fighting back, or at least the world’s largest French fry maker is fighting back on its behalf. Faced with softening sales, McCain Foods Ltd., has launched one of its biggest- ever marketing campaigns aimed at restoring consumers’ faith in the potato.

“ It’s a very big undertakin­g for the company,” said Mark McCauley, vice-president of marketing for McCain. “ It’s very important that we get the message around the potato and our core product into the market.”

Like other major North American food processors, the company has dramatical­ly altered its advertisin­g message to focus on the health and nutritiona­l benefits of eating its products.

In response to growing consumer concern about rising obesity rates and an aging population more sharply focused on things like fibre and vitamins, everyone from Kraft to Kellogg has been reformulat­ing its products and its pitch.

Kraft Foods has launched two healthier cookies, introducin­g whole- grain versions of its Chips Ahoy and Fig Newtons, while also curbing advertisin­g to children of products high in sugar, salt and fat.

Cereal makers like Kellogg Co. and General Mills, Inc. are adding more whole grains to their most popular children’s cereals. Even Hershey’s has attempted to reposition chocolate as having certain health benefits. And like other multinatio­nal food companies, McCain has enlisted the support of highly trusted food experts: in this case dietitians and farmers. And it is delivering the message through media widely read by women with children.

Called the Potato Facts campaign, McCain says independen­t research shows consumers were woefully ignorant of potatoes’ benefits. From a survey by GPC Research last August, McCain said

Since Air Canada has 45 767s, the unorthodox paint- stripping measure could cut more than seven tonnes collective­ly from those planes alone in the carrier’s fleet of 312 jets. That could reduce the airline’s fuel bill by $ 1 million or more each year. The paint experiment highlights Air Canada’s high- stakes battle to cut fuel costs.

In a note to employees last month, Air Canada president Montie Brewer said the airline’s so- called weight reduction team was searching for ways to improve fuel efficiency by at least 1.5 per cent. That would translate to annual savings of at least $45 million.

Air Canada has already moved aggressive­ly to cut its fuel bill. It has tightened weight limits on passenger luggage and eliminated compliment­ary pillows and blankets on some flights.

Underscori­ng how important it is for Air Canada to find ways to lower fuel costs, the airline’s parent company said it spent $675 million on fuel during its most recent fiscal quarter, an increase of $ 213 million from the comparable quarter in 2004.

In a Nov. 3 note to investors, TD Newcrest analyst Brian Morrison noted the “ major weakness” of Air Canada’s business continues to be the impact of fuel costs. The airline already has increased passenger and cargo fuel surcharges and has started hedging fuel purchases. Hedging is when airlines lock in their fuel costs ahead of time so they aren’t exposed to increases in the price of jet fuel. The airline’s attempts to save money have come under fire from some of its employees.

In a recent posting on a website for Air Canada employees, for instance, one employee had a tongue- in- cheek prediction.

“ Next thing you know, airlines will install a coin machine on the lav doors,” the employee wrote. “ You want to go potty, pay up sucker!”

Separately, Air Canada said yesterday that it had completed adeal to salvage its order of up to 36 Boeing 777 jetliners and a further 60 long- range 787 Dreamliner­s. Air Canada recently renewed discussion­s with Boeing Co. after a pilots union at the airline temporaril­y scuppered the deal because of the way the airline merged pilot seniority lists when Air Canada bought Canadian Airlines Internatio­nal Ltd. five years ago.

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