About Metro

Metro Inc. operates in the food and pharmacy industry in Québec and Ontario. As a retailer, franchisor, manufacturer and distributor, the company operates a network of food stores and drugstores, and supplies to neighborhood grocery stores. Food Division The company’s activities in the food retail industry are located in the provinces of Québec and Ontario. Each store is either operated by one of the company’s subsidiaries (Metro Richelieu (Metro Richelieu Inc.), Metro Ontario (Metro Ontario Inc.), Adonis Group (Adonis Group Inc.), or Première Moisson Group (Première Moisson Group Inc)), by a franchisee or by an affiliate retailer under a franchise or an affiliation agreement, as applicable. The majority of the company’s food retail network is serviced by 4 warehouses owned by it, which ensure procurement and storage of grocery products, general merchandise, non-perishable goods and certain dairy products. It also operates nine warehouses for the procurement and storage of meat, frozen foods, produce, as well as products for the supply of neighbourhood grocery stores. Cuisine Centrale Prêt-à-Manger Inc. started its operations in June 2020 and produces a selection of ready-to-eat meals, salads, and dips for various food stores. The Adonis stores are operated by Adonis Group and supplied by 2 distribution centers operated by Phoenicia Group. Adonis Group also distributes a selection of products under the Adonis brand in several of the company’s food stores and Phoenicia Group also distributes products under its Cedar brand in these stores. Each Première Moisson store is either a corporate store operated by Première Moisson Group or is a franchised or affiliated store operated by a franchised or affiliated retailer. Première Moisson stores are supplied by two food preparation plants owned by Première Moisson Group. Première Moisson Group also distributes a selection of products under the Première Moisson trademark in several of the company’s food stores. The Première Moisson products include ready-to-eat products, pastries, pies and cakes. Pharmacy Division drugstores are operated under the PJC Jean Coutu, PJC Santé and PJC Santé Beauté (collectively the ‘PJC banners’, and the expression ‘PJC drugstores’ shall collectively refer to drugstores operated under the PJC banners) and more than 24,000 employees work in the pharmacy retail network. The Jean Coutu Group (The Jean Coutu Group (PJC) Inc.) is the largest pharmacy chain in Québec. Its activities mainly include franchising, wholesaling and generic drug distribution. 157 drugstores are operated under the Brunet, Brunet Plus, Brunet Clinique and Clini Plus banners (collectively the ‘Brunet banners’, and the expression ‘Brunet drugstores’ shall collectively refer to drugstores operated under the Brunet banners). The company’s activities in the pharmacy retail industry cover a wide-ranging territory, which includes the provinces of Québec, Ontario and New Brunswick. In Québec, the company’s pharmacy retail activities are franchise based. Its subsidiary, Jean Coutu Group, acts as franchisor and wholesaler for all drugstores operating under the PJC banners. In addition, the company’s subsidiary, McMahon Distributeur pharmaceutique Inc. (McMahon), acts as franchisor and wholesaler for all Brunet drugstores. In Ontario, the company’s pharmacy retail activities are either corporate or franchise based. Some of the company’s stores located in Ontario, which are operated by Metro Ontario under the Metro and Food Basics banners, have full in-store pharmacy services. These drugstores are operated under 2 banners, namely Metro Pharmacy and Food Basics Pharmacy. The Jean Coutu Group supplies these drugstores. The Jean Coutu Group also acts as franchisor and wholesaler for the PJC drugstores in Ontario. In New Brunswick, the company has a strong presence through drugstores under the PJC banners, which are operated by the franchised drugstore owners affiliated to the PJC banners. the company operates distribution centers that supplied all of its pharmacy retail network. Distribution centers were operated by McMahon and supplied a wide market of independent drugstores and health care institutions, such as nursing homes, as well as the Brunet drugstores. The Jean Coutu Group operates the other distribution centers, which service all of the PJC and Ontario drugstores. As part of the integration plan put in place following the acquisition of the Jean Coutu Group by the company, the operations of the two distribution centers operated by McMahon were transferred to the distribution centers operated by the Jean Coutu Group in Varennes, Québec, towards the end of the 2021 financial year. Distribution of Generic Drugs The company, through Jean Coutu Group, owns all interests in Pro Doc Ltée (Pro Doc), a generic drug distributor located in Laval, Québec, which is mostly involved in the wholesale distribution of generic drugs. Pro Doc owns a portfolio of approximately 119 generic molecules and 326 different products. These products are sold under the Pro Doc trademark. The generic drugs distributed by Pro Doc are exclusively sold in Québec, mainly to the Jean Coutu Group and McMahon. Products, Brands and Services The company’s retail network meets customer needs by offering friendly stores, a personalized service and a wide range of quality products. The company owns several private brands offered in a majority of its stores, such as the Irresistibles, Selection and Life Smart Mieux-être brands. Certain other private brands, such as Adonis, Phoenicia and Cedar, are offered in the Adonis stores and other food stores, whereas the Première Moisson stores offer a wide selection of products under the Première Moisson brand. Products under the Première Moisson brand are also sold in Metro, Super C, Adonis and Food Basics stores. The PJC drugstores carry more than 3,800 private label product items. The Jean Coutu Group’s private label offering includes a line of beauty and cosmetic products, over-the-counter medications and personal care products, all of which are sold under the Personelle brand. The PJC drugstores also carry a selection of exclusive brand products. The company’s private label Irresistibles and Selection products are sold in the PJC drugstores. The Jean Coutu Group’s private brand for health and beauty products, Personnelle, is also sold in the Brunet drugstores and in Super C, Metro and Food Basics stores. Over-the-counter products bearing the Personnelle brand are also part of the Brunet drugstores’ product line-up. The company’s private brands products were honored in 2021 with more than 22 awards for their innovation, design and recipes, including ten Canadian Grand Prix new products awards, one Vertex award, five Canadian PAC Awards, two PLMA awards, one Grand Prix du design award, and three DUX awards. Product Development The company, through its marketing research and consumer intelligence department, analyses consumer habits and needs. In addition, the company works with several partners, including Dunnhumby, to develop and implement strategies to better meet customers’ needs and build strong loyalty. The company completed the launch of over 350 new private brand products and brought improvements to more than 1,000 existing products. The company also launched 80 new healthy and sustainable products under the Selection, Irresistibles, Life Smart Mieux-être, Life Smart Mieux-être Naturalia, Life Smart Mieux-être plant based, Life Smart Mieux-être Organic, Selection Eco and Personnelle Baby brands. Loyalty Programs Loyalty programs offered by the company allow it to reach and reward more than 5.4 million customers across Québec, Ontario and New Brunswick. In Québec, the company, through its metro&moi loyalty program, allows consumers the opportunity to collect points that can be applied towards purchases in Metro stores and online at metro.ca. This program allows the company to build customer loyalty through the development and implementation of consumer-focused strategies. The Air Miles Reward Program is offered to customers of the Metro banner throughout Ontario and in PJC drugstores across Québec, Ontario and New Brunswick. This program offers customers of these banners the possibility to accumulate Air Miles, discounts and other loyalty rewards, while providing the company with increased customer loyalty and insight into customer buying habits as part of an overall customer relationship management strategy. Intellectual Property The company uses and has exclusive ownership of several trademarks and trade names. Its principal banners, which are all trademarks owned by the company, are Metro, Metro Plus, Super C, Food Basics, Marché Richelieu, Marché Ami, Adonis, Première Moisson, PJC Jean Coutu, PJC Santé, PJC Santé Beauté, Brunet, Brunet Plus, Brunet Clinique, Clini Plus, Metro Pharmacy and Food Basics Pharmacy. Its main private label products are identified by various trademarks, among others, Irresistibles, Selection, Personnelle, PJC, PJC Délices, Adonis, Phoenicia, Cedar, Première Moisson and Pro Doc. Seasonality Other than certain holiday periods in the year that correlate with higher sales, there is no significant seasonality factors affecting the company’s business. History Metro Inc. was founded in 1947.