St-Méthode Bakery: Toward a new era of growth
Established 77 years ago in Adstock, in the Chaudière-Appalaches region, St-Méthode Bakery, Québec’s second-largest producer of sliced bread, is set to take a new step in its development. With CDPQ becoming a strategic partner in December 2023, it hopes to grow even more.
The company, which generated sales of approximately $125 million in 2023, focuses on several areas of development: diversifying the product line, acquiring new market shares in Québec and expanding its activities in the Canadian and North American markets. CDPQ’s presence allows the company to fulfil its growth ambitions, explains Carl Pouliot, Executive-Vice President and General Manager of St-Méthode Bakery.
The expansion strategy is based primarily on innovation, the cornerstone of St-Méthode’s success since its inception. “We’re going to launch new products in the next 12 months,” announces Mr. Pouliot. The company also relies on diversification, while remaining faithful to its niche of healthy products, for which it is renowned. With its 25 varieties of sliced bread and its flagship brands—Récolte de St-Méthode, Grains St-Méthode and Campagnolo—the company now has a 50% market share in the healthy bread segment and 20% of the total bread market in Québec.
In terms of its geographic expansion, St-Méthode Bakery plans to first consolidate its position in the Québec market before turning its attention to Ontario and the northeastern United States.
The recipe for success
Founded in 1947 by Joseph Faucher and his wife Mariette Robert, St-Méthode Bakery has grown steadily over the decades. In the early 1990s, the company revised its positioning by entering the healthy eating niche, offering products that are fat-free with no additional sugar added. It thus became a pioneer in the field in Québec.
In 2014, St-Méthode welcomed Roynat, a first investment partner, to support the Faucher family. This association allowed the company to achieve its plan to double production capacity. More recently, in 2017, the company once again strengthened its commitment to health benefits by guaranteeing its products as 100% GMO‑free.
Throughout each of its growth stages, St-Méthode has remained deeply committed to its family values. “Our values are respect, teamwork, pleasure, recognition and commitment. Each of its values is maintained by a manager who ensures that it is embodied in the company,” emphasizes Carl Pouliot.
CDPQ’s added value
In 2023, CDPQ partnered with St-Méthode Bakery and Roynat to support the company in its growth projects in the Canadian and U.S. markets. In addition to financial support, the added value of CDPQ’s specialists has enhanced the strategic vision of the Board of Directors and enriched marketing efforts, thanks to their extensive expertise in various markets. “We were already very organized, very structured, but CDPQ takes us to another level. It helps us make the right choices and best decisions to fully utilize one of our greatest assets: our brand that is beloved by Quebecers who prioritize their well‑being,” explains Mr. Pouliot.
Collaboration with CDPQ also allows the company to enhance its business decisions, basing them on past experience in various industries. “Their diversified portfolio facilitates the transfer of valuable knowledge. This allows us to apply new solutions and effectively meet our challenges,” underscores the Executive Vice-President and General Manager.
“Our goal is to join forces in order to enhance the company’s strategic vision and marketing efforts, thereby accelerating its growth. We see the collaboration between CDPQ and St-Méthode Bakery as a strategic opportunity to strengthen the presence of this Québec flagship in North American markets.”
Martin Parent, Managing Director, Operating Partnership, CDPQ
Positioning ourselves in new markets
“Their teams help us identify and seize new business opportunities thanks to their network and their market knowledge,” confirms Daniel Lacoste, Vice-President of Sales, Marketing and Distribution. He adds that CDPQ is working closely with the company to model the organization’s future and prepare the ground for its expansion.
“To remain relevant in terms of product development, the company relies on continuous monitoring of consumption trends. It conducts regular consumer surveys, analyzes sales data and has a dedicated marketing team. “CDPQ’s contribution in this area is already making a difference, by giving us access to new market data and helping us analyze this data”, explains Daniel Lacoste. “This will give us a solid position to attack the new markets.”
In terms of distribution, St-Méthode Bakery has significant logistical strength in Québec, with 100 distribution routes covering more than 1,000 stores, ensuring a continuous presence on the shelves of major grocery chains. However, becoming established in markets such as Ontario and the northeastern U.S. will require the development of new distribution strategies that are tailored to local specificities.
Once again, CDPQ’s support will allow the company to explore the most promising avenues, according to Daniel Lacoste.
Snapshot of St-Méthode Bakery
- Founded in 1947
- 2nd largest bakery in Quebec
- $125 million in sales
- 285 employees and 98 distribution partners