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Fast-food brands see ‘no end in sight’ for cold beverage boom

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When summer arrives, Paul Volk thinks the rich and creamy milkshakes Triple O’s churns out are an ideal way to beat the heat.

But even in the depths of winter, the sweet treats are just as big of a hit at the Vancouver-headquartered fast-food brand that’s in the midst of an Alberta and Ontario expansion.

“Our shakes are popular year round and I never really questioned why that is,” said Volk, director of operations for Triple O’s owner White Spot Ltd. “A consumer has so many options there in front of them now that I don’t really think the season matters as much.”

Triple O’s is not alone in experiencing the year-round cold beverage boom some attribute to social media, younger consumers and evolving palates.

Executives from the world’s biggest quick-serve and convenience store brands have touted growing all-season demand for icy drinks ranging from smoothies and slushies to cold brew coffee and carbonated juices in recent months.

Hot coffee is still the most common drink ordered in the country, but a recent Restaurants Canada report showed it’s slipped in popularity at quick-serve establishments between March 2022 and 2023. Cold beverage categories like iced and frozen coffee, milkshakes and smoothies, and energy and sports drinks have all gained ground.

In its first quarter ending March 31, Tim Hortons owner Restaurant Brands International alone saw cold beverage sales grow 12 per cent year-over-year. A quarter earlier, they were up 19 per cent, largely because of the company’s sparkling quenchers.

“Cold will for sure play a big role in our growth in the years to come,” Axel Schwan, president of Tims’ Canadian operations, said when the company was marking its 60th anniversary in May and the 25th birthday of its most famous cold beverage, the iced capp.

Earlier this month, the company added energy drinks to its evolving slate of flavoured iced capps and sparkling fruit beverages.

Meanwhile, Starbucks Canada brought spicy fruit drinks, lemonades and berry beverages to its roster of frappuccinos, iced teas and refreshers.

The collection of cold beverages now make up 70 per cent of drinks at the chain, said Danilo Gargiulo, a senior research analyst at Bernstein.

He ascribes the dominance of cold beverages to their novelty, along with their ability to be customized and act as a gateway.

“If you are not a fan of some hot beverages in the morning, you start to see a different way for you to be consuming (a drink when you see cold beverages), so it just opens you up to more options,” he said.

And there is no lack of choices when it comes to cold beverages.

Coffee shops have cold brews and frappuccinos, convenience stores will sell you slushies and burger-and-fries chains have milkshakes and carbonated beverages. Then, there are a slew of smoothie, juice and protein shake outlets.

Most of these places let customers mix drinks together or play around with flavoured syrups, whipped cream and different strengths of coffee, which keep diners coming back and racking up larger tabs.

Starbucks Canada now counts 170,000 different drink combinations, a giant leap from the low levels of personalization in 1989, when it first allowed milk customizations.

Back then, most consumers would switch back and forth between hot and cold beverages based on the season, recalled Jo-Ann McArthur, president at Nourish Food Marketing, a Toronto-based advertising agency.

“But younger consumers stuck with iced beverages year round for a few reasons,” she said. “When you don’t have a hot beverage … the cups are usually clear, the beverages have bright colours, different toppings and it’s more attractive in social photos.”

Trey Powell, Alimentation Couche-Tard Inc.’s senior vice-president of global merchandising, also notices customers seeking out cold drinks because many have “functional benefits” stemming from ingredients that provide lasting hydration, boost nutrition or deliver energy.

“I joined the industry approximately 20 years ago and the energy category was … fledgling. It was sort of an idea that a couple of folks had,” he said. “Here we are 20 years later and the energy drink category … is really the workhorse of the cold vault.”

McArthur expects companies to continue to build on the success of that category by experimenting with drinks packed with electrolytes, adaptogens, botanicals and even innovative ingredients like mushroom powder.

Triple O’s hasn’t delved into those spaces yet, but its menu has evolved a lot since it launched its first location in 1997.

The chain now sells blended coffee frappés and cold brew, both available in sweetened, unsweetened, caramel, mocha and vanilla flavours.

The frappés and cold brew launched as limited time offers a few years ago.

“When the promotion ended, we had a lot of guests saying, ‘Hey, you know what, why is this off the menu?'” Volk recalled.

Triple O’s listened and brought them back — permanently.

It also started to think more creatively about its milkshakes — one of its original menu items. This fall, it will offer the drink in a caramel pumpkin pie flavour and in winter, there will be a candy cane wafer milkshake, Volk said.

Planning is already underway for next summer and customers can expect plenty of cold beverage innovation then, too.

“I don’t think we are anywhere near finished with that,” Volk said of both Triple O’s dalliances with the category and consumer demand for cold beverages.

“I don’t think there’s an end in sight.”

This report by The Canadian Press was first published July 29, 2024.

Companies in this story: (TSX:QSR)

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Woman faces fraud charges after theft from Nova Scotia premier’s riding association

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NEW GLASGOW, N.S. – Police in New Glasgow, N.S., say a 44-year-old woman faces fraud charges after funds went missing from the Pictou East Progressive Conservative Association.

New Glasgow Regional Police began the investigation on Oct. 7, after Nova Scotia Premier Tim Houston reported that an undisclosed amount of money had gone missing from his riding association’s account.

Police allege that a volunteer who was acting as treasurer had withdrawn funds from the association’s account between 2016 and 2024.

The force says it arrested Tara Amanda Cohoon at her Pictou County, N.S., residence on Oct. 11.

They say investigators seized mobile electronic devices, bank records and cash during a search of the home.

Cohoon has since been released and is to appear in Pictou provincial court on Dec. 2 to face charges of forgery, uttering a forged document, theft over $5,000 and fraud over $5,000.

Police say their investigation remains ongoing.

Houston revealed the investigation to reporters on Oct. 9, saying he felt an “incredible level of betrayal” over the matter.

The premier also said a volunteer he had known for many years had been dismissed from the association and the party.

This report by The Canadian Press was first published Oct. 23, 2024.

The Canadian Press. All rights reserved.



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Nova Scotia company fined $80,000 after worker dies in scaffolding collapse

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PICTOU, N.S. – A Nova Scotia excavation company has been fined $80,000 after a worker died when scaffolding collapsed on one of its job sites.

In a decision released Wednesday, a Nova Scotia provincial court judge in Pictou, N.S., found the failure by Blaine MacLane Excavation Ltd. to ensure scaffolding was properly installed led to the 2020 death of Jeff MacDonald, a self-employed electrician.

The sentence was delivered after the excavation company was earlier found guilty of an infraction under the province’s Occupational Health and Safety Act.

Judge Bryna Hatt said in her decision she found the company “failed in its duty” to ensure that pins essential to the scaffolding’s stability were present at the work site.

Her decision said MacDonald was near the top of the structure when it collapsed on Dec. 9, 2020, though the exact height is unknown.

The judge said that though the excavation company did not own the scaffolding present on its job site, there was no evidence the company took steps to prevent injury, which is required under legislation.

MacDonald’s widow testified during the trial that she found her husband’s body at the job site after he didn’t pick up their children as planned and she couldn’t get in touch with him over the phone.

Julie MacDonald described in her testimony how she knew her husband had died upon finding him due to her nursing training, and that she waited alone in the dark for emergency responders to arrive after calling for help.

“My words cannot express how tragic this accident was for her, the children, and their extended family,” Hatt wrote in the sentencing decision.

“No financial penalty will undo the damage and harm that has been done, or adequately represent the loss of Mr. MacDonald to his family, friends, and our community.”

In addition to the $80,000 fine, the New Glasgow-based company must also pay a victim-fine surcharge of $12,000 and provide $8,000 worth of community service to non-profits in Pictou County.

This report by The Canadian Press was first published Oct. 23, 2024.

The Canadian Press. All rights reserved.



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Remains of missing Kansas man found at scene of western Newfoundland hotel fire

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ST. JOHN’S, N.L. – Investigators found the remains of a 77-year-old American man on Wednesday at the scene of a fire that destroyed a hotel in western Newfoundland on the weekend.

Eugene Earl Spoon, a guest at the hotel, was visiting Newfoundland from Kansas. His remains were found Wednesday morning during a search of the debris left behind after the fire tore through the Driftwood Inn in Deer Lake, N.L., on Saturday, the RCMP said in a news release.

“RCMP (Newfoundland and Labrador) extends condolences to the family and friends of the missing man,” the news release said.

Spoon was last seen Friday evening in the community of about 4,800 people in western Newfoundland. The fire broke out early Saturday morning, the day Spoon was reported missing.

Several crews from the area fought the flames for about 16 hours before the final hot spot was put out, and police said Wednesday that investigators are still going through the debris.

Meanwhile, the provincial Progressive Conservative Opposition reiterated its call for a wider review of what happened.

“Serious questions have been raised about the fire, and the people deserve answers,” Tony Wakeham, the party’s leader, said in a news release Wednesday. “A thorough investigation must be conducted to determine the cause and prevent such tragedies in the future.”

The party has said it spoke to people who escaped the burning hotel, and they said alarm and sprinkler systems did not seem to have been activated during the fire. However, Stephen Rowsell, the Deer Lake fire chief, has said there were alarms going off when crews first arrived.

This report by The Canadian Press was first published Oct. 23, 2024.

The Canadian Press. All rights reserved.



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