Keywords Companies

By the turn of the century, George Weston had become Canada's biggest baker. Early in the 1900s, he began making biscuits, which became an increasingly important part of his business. In 1911 Weston amalgamated with a number of Canadian bread makers to form the Canada Bread Company. The partners of that operation signed an agreement to remain out of the bread business for 10 years. During that time George Weston Limited shifted its focused to biscuits and a new Weston's Biscuit Factory went into production at the corner of Peter and Richmond streets in Toronto. In 1921, with the 10-year agreement at an end, George Weston re-entered the bread business. He continued to head the company until his death in1924, when he was succeeded by his son Garfield Weston.

In 1919, Garfield had returned from World War I; during his time overseas, he had toured the famous British biscuit factories and was sure that a similar product could be marketed in Canada. He convinced his father to import biscuit-making equipment from England and in 1922 Weston's English Quality Biscuits were launched.

With the death of his father, Garfield Weston, at age 26, became president of George Weston Limited. Indeed, Garfield Weston is credited with aggressively pursuing the expansion and modernization of the company. Backed by American financiers, he took the business into overseas markets in the 1930s when he purchased biscuit and bread factories in the United Kingdom. In the midst of the Great Depression, determined to develop new markets for Canada's devastated wheat sector, Garfield Weston modernized production facilities and imported Canadian wheat. He also began mass marketing a more affordable biscuit to the British public. Within a few years the Canadian press was calling him "Britain's biggest baker." He also continued to expand operations in North America, buying bankrupt competitors and opening new plants.

During World War II, Garfield Weston was a Conservative member of the British House of Commons, representing the working class riding of Macclesfield. He undertook a secret diplomatic mission on Prime Minister Winston Churchill's behalf, but his contribution to the war effort was largely outside the political realm. He saw to the development of a system of canteens that fed thousands of Londoners nightly as they took shelter in the Underground from Nazi bombing raids during the Battle of Britain, in addition to raising money to help replace fighter planes and tanks.

Following the war, the company embarked on a period of expansion and acquisition, adding to its portfolio with chocolate company William Neilson Limited, BC Packers, fish processors Connors Brothers of New Brunswick and a controlling stake in Loblaw Groceterias, which would become the company's predominant asset.

In 1972, with too many small, failing outlets and the rapid loss of market share in Ontario, Loblaws faced bankruptcy. Garfield appointed his youngest son W. Galen Weston as the CEO of Loblaw Companies Ltd in an attempt to turn the company around. Under Galen's leadership, the company's operations were streamlined in an effort to temper the effects of the numerous acquisitions. As well, Loblaws was transformed into one of Canada's predominant grocery retailers, pioneering the "No Name" brand in 1978, which was followed by the "President's Choice" label in 1984. By the mid-1980s, under W. Galen Weston's chairmanship, with Richard Currie as president and Dave Nichol in charge of product development and marketing, Loblaws had become Canada's largest food retailer.

Meanwhile, W. Galen Weston oversaw a similar consolidation in the food processing and resource sides of the business as the company rationalized a diverse portfolio of assets while trying to respond to changing economics, including free trade with the United States. Over the coming decades the company exited resource based industries such as paper products and fish processing. The 2001 acquisition of Bestfoods in the United States for US $1.8 billion also saw the company divest its confectionary holdings. In 2008, those US assets were sold to Grupo Bimbo, a Mexican bakery conglomerate, for US $2.5 billion, the biggest deal in the history of George Weston Limited. Wholly owned subsidiary Neilson Dairy was also sold, with the company retaining Weston Bakeries in Canada and Interbake and Maplehurst Bakeries in the US.

In 2006, as Loblaws tried to resolve supply chain problems and recorded its first loss in almost two decades, Galen G. Weston was appointed Executive Chairman of Loblaw Companies Limited. Galen G. Weston, in conjunction with president Allan Leighton, has refocused the company's attention on food retailing, with less emphasis on general merchandising, while developing specialty areas such as the Joe Fresh clothing line. In 2007, Loblaw returned to profitability.

George Weston Limited is majority-owned by W. Galen Weston through his investment company, Wittington Investments, which owns 61.85 percent of the company. Wittington Investments also owns, among others, the Holt Renfrew chain of upscale department stores, which it acquired in 1986.

OperationsGeorge Weston Limited has production facilities and distribution outlets across Canada and in select parts of the United States. In 1998 the company branched out into providing financial services with in-store, no fee banking through President's Choice Financial. It has also commenced a points-based reward system in an effort to maintain and increase customer loyalty.

Weston's Bakery
George Weston's first bakery, at 1 and 3 Sullivan St, Toronto, ca 1895. Bread route salesmen stand ready with their wagons, while bakers are to the right and Emma Maud and George Weston (married 1889) are in the right foreground (courtesy Weston Corporate Archives, George Weston Limited).

Weston, W. Garfield
W. Garfield Weston announces George Weston Limited's revenue growth at the company's annual meeting, 27 Apr 1961 (courtesy of Weston Corporate Archives, George Weston Limited).

Community Work
Through The W. Garfield Weston Foundation, a private foundation, the company directs its philanthropic involvement toward education, land conservation and scientific research in Canada's North. In addition to its ongoing commitments, the foundation awards a number of unsolicited, trustee-initiated grants each year.

For 3 generations, The W. Garfield Weston Foundation has maintained the family legacy of supporting charitable organizations to benefit Canadians. The foundation was established in 1959 by Willard Garfield Weston and his wife Reta with their shares in George Weston Limited. They believed that, because the funds were generated through the hard work and success of Canadian businesses, the grants should be given in Canada.

In addition to the work done by The W. Garfield Weston Foundation, George Weston Limited and Loblaw Companies Limited make significant independent community donations. The grant-making programs of George Weston Limited and its subsidiaries focus on improving the quality of life in the communities where their employees live and work. Contributions to the community are made through financial or in-kind donations and employee-volunteer initiatives.

Author SASHA YUSUFALI Revised: DERRICK CLEMENTS

Links to Other Sites
George Weston Limited
The website for George Weston Limited, one of North America’s largest food processing and distribution companies. Provides corporate news and information as well as a link to The W. Garfield Weston Foundation website.

TMX Group
The online home of TMX Group, which owns and operates the Toronto Stock Exchange and the TSX Venture Exchange. For real-time and historical market data, sector profiles, and financial information about listed companies, click on listed company directory on left side of page or enter stock symbol in the search box.

Loblaw Companies Limited
The website for Weston’s food distribution company, owner of such chains as Extra Foods, The Real Canadian Superstore, and Provigo. Offers a company profile, investor news and even a few recipes featuring Loblaw’s products.

System for Electronic Document Analysis and Retrieval
Search the SEDAR online database for disclosure documents of Canadian public companies and mutual funds. From the Canadian Securities Administrators.

Loblaw to tap Asian market
A news story about Loblaws purchasing the T&T Supermarket chain in Canada. From thestar.com.