In today’s @readthepeak I wrote about Farm Boy, a Cornwall, ON grocer that was bought by Sobey’s for nearly a billion dollars.

Here’s a thread about their incredible rise

1/ In 1981, Jean-Louis and Colette Bellemare opened the doors to the first Farm Boy, a 300 sq ft fresh produce store in Cornwall, ON.

Unlike the big box stores, Farm Boy’s mission was to find and sell the freshest produce from the surrounding community.

2/ Inspired by what they saw from US retailers like Trader Joe’s, Farm Boy focused on providing a shopping experience unlike other Canadian grocers with:
— high quality hot foods selection
— excellent staff training
— exceptional private label offerings

3/ At the same time, Farm Boy’s model gained a cult-like following and private equity firm Berkshire Partners took notice.

They infused the business with capital to support their growth.

4/ As Farm Boy grew, their army of loyal customers followed.

Which caught the eye of Sobey’s. The Nova Scotia grocer bought Farm Boy for $800m – a 14x multiple on their EBITDA.

5/ Now Sobey’s is using the brand to directly compete with Loblaws on their home turf, Toronto.

Sobey’s wants to double Farm Boy’s Ontario footprint in the next 5 years and ‘blanket Toronto’ with the grocer.

Pretty good for a Cornwall produce stand...

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