Winnipeg Free Press - PRINT EDITION

Safeway adds pair of Tim Hortons outlets in Winnipeg

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CHANGES are brewing in Canada Safeway's coffee offering.

The Calgary-based grocery has recently opened a pair of Tim Hortons outlets in Winnipeg in its Tuxedo store (last Saturday) and its Osborne Village location (in September).

That's on top of the two-year-old Tim Hortons on Kildare Avenue in Transcona.

Company spokesman John Graham said it will continue to look at store-within-a-store options for Tim Hortons where "it makes sense."

That includes its grocery stores that currently don't have a coffee counter, where an in-store Starbucks outlet isn't viable or where Starbucks already has another location in close proximity.

For example, the former Starbucks coffee counter at the Osborne Village Safeway had to compete with a stand-alone Starbucks store on the grocer's parking lot, less than 61 metres away. Each location was cannibalizing the other's sales, Graham said.

Safeway hasn't had an exclusive arrangement with Starbucks since it expanded to coffee kiosks back in 2005. It is, however, the largest Starbucks franchisee in Western Canada.

"We think Starbucks and their premium experience matches our customers well," Graham said.

geoff.kirbyson@freepress.mb.ca

Republished from the Winnipeg Free Press print edition December 20, 2012 B7

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