The Soft Drink Industry (SIC 111) consists of establishments primarily engaged in manufacturing non-alcoholic, carbonated beverages, mineral

waters and concentrates and syrups for the manufacture of carbonated beverages. Establishments primarily engaged in manufacturing fruit juices and non-carbonated fruit drinks are classified in Canned and Preserved Fruit and Vegetable Industry (SIC 1031). Principal activities and products:
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Aerated waters; Carbonated beverages; Mineral and spring waters; Soft drink concentrates and syrup; and Soft drink preparation carbonating.

NAICS 31211 Soft Drink and Ice Manufacturing: Establishments primarily engaged in manufacturing soft drinks, ice or bottled water, including that which is naturally carbonated. Water-bottling establishments in this industry purify the water before bottling it.
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Fruit drinks (except juice), manufacturing Ice (except dry ice), manufacturing

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Iced tea, bottling or canning Soft drinks, manufacturing Water, purifying and bottling

Exclusion(s): Establishments primarily engaged in:

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freezing juices and drinks (31141, Frozen Food Manufacturing); canning fruit and vegetable juices (31142, Fruit and Vegetable Canning, Pickling and Drying); manufacturing milk-based drinks (31151, Dairy Product (except Frozen) Manufacturing); manufacturing coffee and tea, except ready-to-drink (31192, Coffee and Tea Manufacturing); manufacturing soft drink bases or fruit syrups for flavouring (31193, Flavouring Syrup and Concentrate Manufacturing); manufacturing non-alcoholic cider (31194, Seasoning and Dressing Manufacturing); manufacturing non-alcoholic beer (31212, Breweries); manufacturing non-alcoholic wine (31213, Wineries); manufacturing dry ice (32512, Industrial Gas Manufacturing); and bottling water without purification (41321, Non-Alcoholic Beverage Wholesaler-Distributors).

NAICS 31193 Flavouring Syrup and Concentrate Manufacturing: Establishments primarily engaged in manufacturing soft drink concentrates and syrup, and related products for soda fountain use or for making soft drinks. Beverage bases, manufacturing
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Fruit syrups for flavouring, manufacturing

Flavouring concentrates (except coffeebased), manufacturing

Soda fountain syrups, manufacturing Soft drink bases, manufacturing

Exclusion(s): Establishments primarily engaged in:

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reducing maple sap to maple syrup (11199, All Other Crop Farming); manufacturing chocolate syrup (31132, Chocolate and Confectionery Manufacturing from Cacao Beans); manufacturing flavouring extracts (31194, Seasoning and Dressing Manufacturing); manufacturing powdered drink mixes (except coffee, tea and chocolate); and table syrup from corn syrup (31199, All Other Food Manufacturing); and manufacturing soft drinks (31211, Soft Drink and Ice Manufacturing).

The 1998 industry and employment indicators refer to SIC 111 because concordance between NAICS and SIC is not exact.

Characteristics of the Industry

The industry is a secondary manufacturer using products of the food industry to produce soft drinks for home and food service consumption. Packaging costs for the industry are estimated to represent 35 per cent of production costs while syrups/concentrates account for almost 30 per cent. The Soft Drink Industry purchases 95 per cent of the aluminum cans, 55 per cent of the rigid polyethylene terephthalate (PET) plastic containers and 15 per cent of the glass bottles consumed by Canadian manufacturing industries. (Source: CSDA) Sales volumes have grown more than 22 per cent since 1988, to over 3.1 billion litres annually. In 1999, sales of carbonated soft drinks in Canada grew a modest 0.4 per cent. Soft drinks rank sixth among all consumer products sold in Canada's drug stores, with annual sales over $130 million. Soft drinks represent about one-third of the $4.4 billion worth of beverages Canadians purchased in supermarkets each year. (Source: CSDA) Canadian exports accounted for 10 percent of domestic shipments while imports into Canada were just 1.5 percent of the domestic market. Imports of soft drinks have decreased 35.7 per cent from a value of $12.6 million in 1988 to a value of $8.1 million in 1999. These figures confirm a growing trade surplus, which amounted to $189 million in 1999. Cost cutting, high transportation costs of final products, and differences in regulatory requirements between Canada and the U.S. are the main reasons for low imports. (Source: CSDA) While most soft drink production serves the domestic market, this industry has become a net exporter. Since 1988, exports of soft drinks have increased more than 3000 per cent

from a value of $6.1 million (9.6 million litres) in 1988 to $197 million (173 million litres) in 1999. The bulk of these ($168 million) are exported to the U.S. (Source: CSDA) The Soft Drink Industry represents 4.8 per cent of the total value of food and beverage shipments and 5.9 per cent of the number of food and beverage plants in 1997. (Source: CSDA)

Updated Industry Indicators

Relative Importance of the Industry in the Economy The Soft Drink Industry accounts for 0.1 per cent of all Canadian GDP in 1999. (Source: Statistics Canada, CANSIM) Reductions in the number of plants and employees along with cost-cutting has improved industry productivity. Value-added per employee increased by 58 per cent from 1988 to 1997. This increase is greater than the average 35.1 per cent increase for the food and beverage sector. From 1988 to 1997, manufacturing shipments of soft drinks increased from about $2.3 billion to just over $2.6 billion (an increase of 15.5 per cent). The volume of soft drinks sold rose from 2.6 billion litres in 1988 to 3.4 billion litres in 1997, up 30.7 per cent in nine years. (Source: CSDA) In 1998, the Soft Drink Industry segment represented almost 36.5 per cent of total Beverage Industries manufacturing shipments. (Source: Strategis) GDP Growth Since 1987 As portrayed in Figure 1, the Soft Drink Industry's growth followed the same trend as the national GDP up until 1989. This growth was disturbed by the rationalization of the Soft Drink Industry on a North American basis in response to the Canada-United States Free Trade Agreement (FTA). The volatile growth rate of the Soft Drink Industry between 1989 and 1995 reflects this change. Over a span of 12 years, the GDP growth for the Soft Drink Industry increased by 18 per cent whereas the one for all industries grew by 27 per cent. GDP growth in this sector has been below the national average since 1989 except for in 1992 to 1993. Since 1995, industry production has been following the same upward trend as the national all industries rate and the gap between the Soft Drink Industry has been reduced by half its size. In 1998, we were left with only a gap of 9 per cent. (Source: Statistics Canada, CANSIM)

Number of Firms by Size There were 316 establishments in Canada according to the 1999 Business Register. Ontario had 26 per cent of establishments in 1995; 29 per cent were located in Quebec. Alberta and British Columbia each accounted for 11.5 per cent of the establishments. Predominantly composed of small-sized firms (Figure 2), the firm-size distribution in this sector is proportional to that of the Canadian economy. In 1999, 83 per cent of all establishments in this sector had 1 to 49 employees whereas it was 96 per cent for all industries. 17 per cent of the medium and large-sized firms within this industry have at least 50 employees versus 5 percent for the average of all industries. Therefore, the firms in this sector are comparatively larger than that of the general economy. (Source: Statistics Canada, 1999 Business Register) Significant ownership change and consolidation of soft drink businesses characterised much of the Soft Drink Industry in the 1990s. In 1988 there were five main soft drink companies with about 390 plants. By 1997, the industry had consolidated to 167 plants, including small niche operators. In 1999, there were four main firms. (Source: CSDA)

Technology and Innovation

Modern bottling plants can produce in excess of 2,000 soft drinks per minute on each line of operation. (Source: CSDA) Investment in building construction and machinery (estimated at $275-$300 million) was strongest during the 1992 to 1994 period when industry rationalization was at its peak.(Source: CSDA) Each year, the Soft Drink Industry purchases more than $1.2 billion worth of materials from Canadian suppliers, including goods such as sugar, flavours, colourings, cans, bottles and caps, cardboard, paper and plastics, and services such as advertising, printing, promotion services and transportation. Innovative new product and package introductions helped stimulate industry volume and revenue growth. The industry changed its packaging: soft drinks are now offered in larger bottles (600 ml) or in 12 packs. (Source: CSDA) While soft drinks face competition from a host of other beverages, including tap water, some large soft drink manufacturers have added other beverage products, such as fruit juices and drinks, dairy products, and bottled water, to their line of products to increase sales and market share. (Source: CSDA)

Change Drivers
Economic/Market Rationalization of the Soft Drink Industry on a North American basis cut the number of establishments in this industry in half between 1986 and 1993. Private label products have made inroads into the market share of the major brands.

The industry experienced intense price competition with expansion of private label sales. There was an overall decrease in retail prices between 1988 and 1997. Remaining establishments are typically very efficient. Canada is now a net exporter of soft drink products. Regulatory This industry was historically based on a franchise system which characterized the Soft Drink Industry worldwide. The system provided a soft drink bottler with a defined market area and exclusive manufacturing and distribution rights within that area. The bottler was restricted to purchasing the proprietary formula concentrates and/or syrups from a single source - the franchise company (franchisor) which held the registered trademarks of a number of soft drink brands. The franchiser established pricing policies and provided overall marketing and brand promotion support. (Source: CSDA) The Canadian Soft Drink Industry has undergone significant changes during the last decade including the adoption of the Canada-United States Free Trade Agreement (FTA), government regulations and guidelines to reduce or recycle packaging waste, the shift to PET (plastic) bottles and metal cans, consolidation in both the brand holding and bottling functions in the industry and the adoption of high fructose corn syrup (HFCS) as an alternative sweetener in place of sugar in non-diet soft drinks. (Source : Strategis) Deposit laws and other measures to ensure recycling and reuse of beverage containers are perhaps the most significant regulatory concern of the industry. Requirements under food labelling of ingredients and nutritional information continue to be under review and subject to change. Canadian food and beverage manufacturers argue that one of the challenges facing their industry is the lack of harmonization between Canada and the United States on certain food ingredients and labelling regulations.(Source: CSDA) All soft drink manufacturers in Canada must meet the standards of quality, hygiene and safety established by both Health Canada and the corporations which own the brand names. (Source: Strategis) Health Canada, which is the regulatory agency responsible for the development of food labelling policy, is currently examining, in consultation with other stakeholders including industry, several food labelling issues including health claims, nutrient content claims, nutrition labelling and food fortification. Regarding food fortification, one of the questions under review is whether foods that do not fit into traditional food groups (i.e., soft drinks, savoury snacks, confections, etc.) should be considered as a vehicle for food fortification. (Source: CSDA) Although there are no customs duties and sales taxes on finished products, with the implementation of the Canada-US Free Trade Agreement, the largest soft drink companies tend not to ship finished product across the Canada-U.S. border because of differences in ingredient and labelling regulations. In the U.S., many non-colas contain caffeine, which is not allowed in such drinks in Canada. Another ingredient, saccharine, is banned in Canada in soft drink usage. As well, Canada has metric and bilingual labelling requirements. (Source: CSDA)

At the same time, governments are streamlining food inspection systems, reducing direct inspection while requiring documentation of food safety systems by companies. Social/Demographic In 1999, the average Canadian consumed 116.4 litres of soft drinks. On average, Atlantic Canadians consume the most soft drinks while the lowest consumption rate is in British Columbia. (Source: CSDA) Canadians buy more than 50 per cent of their soft drinks through grocery stores. When we look at growth in that channel (only) we find that national brand soft drinks purchases have increased 23 per cent over the last 5 years. Private label soft drink sales have fallen off during that same period. This has lowered growth of the total carbonated soft drink segment in the grocery store channel to just under 15 per cent. (Source: CSDA) Consumers will continue to demand high-quality products through the marketed goods sector. Industry members are important sponsors of various sports and other community-based activities for young people. The industry contributed more than $1 million to charities across Canada in 1994. (Source: CSDA) In Canada, about 20 to 25 per cent of soft drinks sold are diet drinks; most soft drinks sold are regular (non-diet) products. (Source: Strategis) Stronger growth in non-grocery channels and significant and favourable package mix trends, including a big move in Ontario from 24 pack cans to the more flexible 12 pack, also helped reduce margin pressures for at least some of our industry's key players.(Source: CSDA) There is also significant variability within the various flavour segments of the soft drink market.
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There are the perennial front-runners. Colas continue to dominate the grocery channel, accounting for more than half of that carbonated soft drink market. While regular colas have grown a respectable 4 per cent since 1995, however, diet colas eked out a meagre 0.5 per cent growth over the last five years. While ginger-ale is a much bigger flavour segment in Canada than in the US or Europe, sales volumes for ginger-ales in Canada has been flat over the past five years. The traditional orange soft drink has seen its position in the marketplace weaken, with volumes dropping off some 3 per cent since 1995. There have been some winners to counter those trends. With growth of close to 4 per cent lemon/limes have kept pace to the growth of the regular colas segment. Sales volumes for non-traditional flavours grew a healthy five per cent over the last five years, and representing as much soft drink volume as the ginger-ale segment. The hot performer of the soft drink marketplace is an old standby - root beer. The volume of root beer sales has grown over 7 per cent in the last five years.

In a rapidly changing climate, the Soft Drink Industry as with other food and beverage processing industries must address a number of challenges if it is to continue to grow and prosper. These include the following:
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concentration of major retail chains, resulting in a higher degree of competition for shelf space; changing consumer demographics resulting in changing consumer tastes and increased demand for healthier products; and, increased competition from other non-alcoholic beverages, such as energy drinks and sports drinks.

Although retail concentration has increased over the years, soft drink manufacturers enjoy a wider variety of distribution channels than some processed food and beverage products. The industry distributes its products through supermarkets and grocery stores, drug stores, convenience stores and gas outlets, mass merchandisers and warehouse outlets. The foodservice and hospitality industry, in particular fast food outlets, is another method of distribution. Vending machines also provide a distribution channel for these products. (Source: CSDA) Consumers of soft drink products have a great assortment of flavours from which to choose. Over 25 major brands and over 200 flavours of soft drinks are distributed throughout Canada. (Source: CSDA) The majority of soft drinks are sold in aluminum cans and PET plastic bottles. They are also sold in bulk through soda fountains. Bottles, most of which comprise PET plastic, account for 41.5 per cent of sales, cans make up 41.6 per cent, and fountain sales account for 16.9 per cent of sales. Only a very small portion of soft drinks are still packaged in glass bottles, due in part to the late 1970s problem of exploding glass bottles with contents under pressure as well as changing consumer preferences and lifestyles.(Source: CSDA)

Employment Patterns
The Soft Drink Industry, with more than 20 Canadian bottling plants, has an annual payroll which exceeds $360 million. (Source: CDSA) In 1996, 4.9 per cent of the soft drink work force were recent immigrants to Canada between 1986 and 1996, somewhat lower than the average of 7.7 per cent in the food industry. The top five occupations in this industry are:
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Process control and machine operators, food and beverage processing; Truck drivers; Sales representatives, wholesale trade; Delivery drivers; and Material handlers.

Process control and machine operators comprise the single largest occupational category, 9.8 per cent of the work force. Process control and machine operators use multi-function or

single-function machines to process and package food and beverage products. People in this group may require some high school education or a high school diploma, as well as experience in their particular industry or occupation. They usually receive on-the-job training. Fourteen per cent of process control and machine operators work part-time. Selfemployment (5 per cent) is well below the average of 16 per cent for all occupations, and women are underrepresented in these occupations. The separation rate in these occupations is high due, in a large part, to the seasonal character of employment. Current labour market conditions for new entrants are poor and are expected to remain poor through 2001. Truck drivers form the second largest occupational category in this industry with 9.3 per cent of total employment. Truck drivers' duties may require them to operate and drive straight or articulated trucks weighing over 4,600 kg with three or more axles to transport goods and materials; oversee all aspects of trucking such as condition of equipment, loading and unloading, and safety and security of cargo; obtain special permits and other documents required to transport cargo on international routes; and receive and relay information to a central dispatcher. Truck drivers must usually complete some high school and receive on-the-job training. They must have a driver's licence appropriate to the class of vehicle they are driving. Drivers who operate vehicles equipped with air brakes must have air brake endorsements. With experience or additional training, they may progress to supervisory positions or to non-driving occupations such as truck driving instructors, safety officers and truck dispatchers. Six per cent of truck drivers work part time, well below the average of 19 per cent for all occupations. One per cent of truck drivers are women, well below the average of 45 per cent in all occupations. Youth are significantly underrepresented in this occupation, with about 20 per cent of employment compared to 27 per cent in the work force. Employment in this occupation is moderately sensitive to overall economic conditions and highly seasonal. Current labour market conditions for new entrants are fair and will remain fair through 2001. Public pressure for improved highway safety, and the use of more complex rigs, are likely to increase skill requirements for truck drivers. Limits to the time drivers are allowed to work may increase demand in this occupation. Sales representatives form the third largest category of employees with 9.1 per cent of employment. Sales representative duties may require them to promote sales of nontechnical goods and services to retail, wholesale, commercial, industrial and professional clients; deliver presentations to clients regarding the benefits and uses of the goods and services; estimate and quote prices, credit terms, warranties and delivery dates; prepare or supervise the preparation of contracts; consult with clients after sales to resolve problems and provide support; and review and respond to information regarding product innovations, competitors and market conditions.

Sales representatives must have a high school diploma, and may require a college diploma or university degree. Many recent entrants have a post-secondary diploma or degree. They usually need experience in sales or in an occupation related to the product or service they are selling. With additional training or experience, they may progress to sales management positions. Twenty-six per cent of these sales representatives work part time, well above the average of 19 per cent for all occupations. Twenty-five per cent are self-employed, well above the average of 16 per cent for all occupations. Women comprise 18 per cent of these sales representatives, compared to an average of 45 per cent in all occupations. Youth are somewhat overrepresented in this occupation, both in employment and in new hiring, relative to the average for all occupations. Current labour market conditions for new entrants in this occupation are fair and are expected to remain so through 2001, though little of the growth is expected in grocery industries. Delivery drivers make up the fourth largest occupational category, comprising 9.0 per cent of the work force in 1996. Delivery drivers use automobiles, vans and light trucks to pick up and deliver products. These drivers usually complete some high school or have a high school diploma. Delivery drivers usually need one year of safe-driving experience and an appropriate driver's licence for their vehicle. Delivery drivers are less likely to work part time than other occupations. Women and youth are significantly underrepresented in this occupation. Employment in this occupation is moderately sensitive to overall economic conditions and moderately seasonal. Current labour market conditions for new entrants are fair and are expected to remain so through 2001. Material handlers form the fifth largest occupational category, comprising 8.6 per cent of the work force. Material handlers (manual) load, unload and move products by hand or on dollies or other basic material handling equipment while material handlers (equipment operators) operate winches and other loading devices, industrial trucks, tractors and loaders to transport and retrieve materials. They also operate various types of equipment and conveyors to handle liquid, bulk and other materials. People in this group may require some high school education. Material handlers (manual) must have the physical strength to work with heavy materials. Twenty per cent of workers in these occupations work part time, compared to an average of 19 per cent for all occupations. The proportion of part-time workers has risen signficantly in these occupations over the last 10 years. Three per cent of workers are self-employed, well below the average of 16 per cent for all occupations. Two per cent of persons working in these occupations are women, well below the average of 45 per cent in all occupations. Persons 15 to 29 years old make up a large proportion of new hires, indicating that these are often entry-level positions. The separation rate in these occupations is high, indicating that jobs are typically of short duration. Current labour market conditions for new entrants are poor, and are expected to

remain so through 2001. Automation of transfer systems will continue to affect demand for labour negatively in these occupations.

Employment Indicators
Relative Importance of Employment in Canada In 1998, similar to its share of Canadian GDP, the Soft Drink Industry represented 0.1 per cent (14,600 employees) of total employment in Canada. (Source: Statistics Canada, LFS) Employment Growth Since 1987 Industry rationalization resulted in some of the largest work force reductions experienced in the food industry in recent years. There was a slight increase in employment from 1992 to 1993, followed by a consistent decrease to the 1997 level. This falling trend is consistent with the decrease in the number of bottling plants from 390 in 1988 to 167 in 1997. Employment in this industry decreased by 4 per cent in the last ten years (Figure 3). In comparison, total employment in Canada increased by 14 per cent over the same period.(Source: Statistics Canada, LFS) The largest employment cuts occurred in managerial and sales positions but production worker cuts were also significant. As the major soft drink companies have bought and consolidated most of their former franchised bottlers, they have invested in equipment, which has increased labour productivity.

Productivity Evolution Productivity and employment growth rates in this sector are lower than the national average as shown in Figures 1 and 3. In the last eleven years, the output from this industry increased by 18 per cent while employment decreased by four per cent. Restructuring and improvements in technology increased productivity and decreased the number of workers in this industry. (Source: Statistics Canada, CANSIM, LFS)

Provincial Distribution of Employment As represented in the following pie chart, Central Canada has the largest share of Canadian jobs in this industry with Quebec and Ontario accounting for 64 per cent of the work force. No percentage was provided for Saskatchewan, Newfoundland and Nova Scotia because they have less than 500 workers. Prince Edward Island has less than 200 workers. (Source: Statistics Canada, LFS)

Relative Importance of Employment in Each Province While 64.4 per cent of industry employment is concentrated in Quebec and Ontario, the sector accounts for only 0.9 per cent and 0.1 per cent respectively, of total employment in

these provinces. The industry represents 0.7 per cent of total employment in Alberta, 0.2 per cent of total employment in New Brunswick. The percentage of total employment in the other Canadian provinces is at most 0.1 per cent. (Source: Statistics Canada, LFS) Unionisation In 1998, 25 per cent of the Soft Drink industry employees were unionised, which is slightly below the all industry average of 30 per cent. (Source: Statistics Canada, LFS) An association representing the manufacturers of carbonated soft drinks and their suppliers is The Canadian Soft Drink Association (CSDA) previously called the Canadian Association of Carbonated Beverages. This association, founded in 1942, contains approximately 45 organizations. CSDA represents soft drink bottlers, distributors, franchise houses and industry suppliers on a variety of issues, operating through a national office and four regional divisions. The principal unions are the United Food and Commercial Workers International Union and the International Brotherhood of Teamsters. Workers in Quebec are organized by the Confdration des Syndicats Nationaux (CSN). Average Weekly Income The average weekly salary ($704), excluding the salary of self-employed workers, is well above the national average ($580) and represents a major incentive for recruitment purposes. In spite of the high salary, only 21 per cent have a university degree. (Source: Statistics Canada, LFS) Income Distribution Wages within the industry are noticeably higher than the national average. Twenty-four per cent of the employees in the sector versus 10 per cent on the national level earn $40,00049,999 annually (Figure 6). (Source: Statistics Canada, Census 1996)

Normal Hours of Work In 1998, workers in the Soft Drink Industry worked 38 hours weekly, which is 4 hours longer than the all industry average (34 hours). (Source: Statistics Canada, LFS) Overtime Hours Of all the employees, 22 per cent (3,200 employees) worked overtime. The average weekly, overtime hours worked in this sector was 10.1 slightly higher than the national average (9.2 hours). (Source: Statistics Canada, LFS) Part-time Jobs In 1998, the percentage of part-time workers in the industry was 6 per cent versus 19 per cent for all industries. This maybe a factor that explains the higher weekly income, higher income distribution and higher average actual hours worked. (Source: Statistics Canada, LFS) Involuntary Part-time Jobs No data available. Unemployment Rate In 1998, this sector's unemployment rate was 4.6 per cent, lower than the national unemployment rate (7.6 per cent). (Source: Statistics Canada, LFS) Period of Unemployment No data available due to small sample size (<1,500).< />

Job Tenure Despite downsizing in previous years, job tenure in the sector averaged 95 months in 1998, one month shorter than the all industries' average of 96 months. (Source: Statistics Canada, LFS) Employment Permanence The percentage of permanent jobs in this industry is 21 percentage points higher than the national average (94 per cent versus 73 per cent). (Source: Statistics Canada, LFS) Type of Work In 1998, the Soft Drink Industry had a low percentage (4.8 per cent) of self-employed workers compared to the general economy (17 per cent). (Source: Statistics Canada, LFS) Labour Turnover In 1996, the labour turnover rate for both this industry and for all industries is 30 per cent (Figure 7).(Source: HRDC)

Reason for Termination of Employment Forty per cent of the people left the industry voluntarily compared to 20 per cent for all industries in 1996. Within the sector, 23 per cent of the jobs were terminated due to work shortage versus 46 per cent for all of Canada. Thirty-seven per cent left the industry for other reasons such as death, bankruptcy, sickness, etc., as opposed to 35 per cent for the whole nation. (Source: HRDC) Previous Jobs In 1996, 43 per cent of the workers hired in the Soft Drink Industry came from within the industry, 17 per cent had no previous job and 12 per cent worked in personal services (Figure 8). This indicates a preference for the recruitment of experienced internal workers. (Source: HRDC)

Occupational Profile This sector is predominantly composed of trades, transport and equipment operators and related occupations (31 per cent) as represented in Figure 9. Management Occupations (20 per cent) and the other occupations, which include business, finance and administrative occupations, sales and service occupations, wholesale, technical, insurance and real estate, occupations unique to processing, manufacturing and utilities, clerical occupations and machine operators and assemblers all occupy between 7 to 10 per cent of the pie. (Source: Statistics Canada, LFS)

Gender Distribution by Main Occupations (Figure 9) The workforce in the Soft Drink Industry is predominantly male (94 per cent). Men make up 100 per cent of delivery drivers in this industry, 99 per cent of the truck drivers, 98 per cent of the material handlers and 90 per cent of the process control and machine operators in food and beverage processing and 82 per cent of the sales representatives in wholesale trade. 90 per cent of the workers in the 'Other' category is male. The 'Other' category includes labourers in food, beverage and tobacco processing, shippers and receivers, sales, marketing and advertising managers, supervisors in food, beverage and tobacco processing and testers and graders in food and beverage processing. Categories with less than 100 employees were excluded from the analysis. The weekly income being well above the national average in this industry may be explained by the predominance of males in this industry. Male dominated occupations tend to have higher weekly salaries than female dominated occupations. (Source: Statistics Canada, Census 1996)

Employment Distribution by Age Groups (Figure 10) Most of the workers in this industry and of all industries are found in the 30 to 35 and 35 to 39 age categories. The soft drink work force, however, is somewhat younger than the national work force as a whole. In 1996, 61 per cent of the employees in this industry were under 40, while the Canadian average was 55 per cent. (Source: Statistics Canada, Census 1996)

Education Level In 1996, 31 per cent of the Soft Drink Industry workforce did not have a secondary (high) school diploma compared to only 24 per cent for all industries. 45 per cent of the soft drink work force held trade certificates or post-secondary certificates or diplomas, compared to 38 percent of the national work force. 21 per cent of the all industry workforce had a

university degree versus 13 per cent for the Soft Drink Industry.(Source: Statistics Canada, Census 1996)

Training Patterns
Tight budgets and small margins tend to discourage a proactive approach to training and other human resource issues. Different training techniques are employed depending on occupation type. In semiskilled jobs, training is usually provided on the job and, with additional experience, workers are able to move up their career ladder. For professional, management and supervisory positions, workers acquire the essential skills through college or university courses in a given field, such as business administration.

Updated Training Indicators

Due to data limitations in this section, the soft drink sector is aggregated with other beverage industries and tobacco products industries under the heading, Beverages. The training analysis is based on this major aggregation since more detailed information is not available. When sample size was less than 30 observations in the Adult Education and Training Survey (AETS), no statistics were reported. Incidence of Training In 1997, 36 per cent of the employees in Beverage Industries received some kind of training, while the Canadian average was somewhat higher at 39 per cent. (Source: Statistics Canada, AETS)

Job Relevance of Training In 1997, 23 per cent of the training in this field was job-related compared to 25 per cent for all industries. (Source: Statistics Canada, AETS) Barriers to Training No data available due to small sample size (<30).< /><30).

HR Management Practices
Pay and working conditions are major factors contributing to an adequate supply of workers to the industry. Average soft drink industry pay rates are typically five percent above the manufacturing average. In the food industry generally, about 30 percent of the human resource managers surveyed in 1996 indicated they had developed a training plan. A similar proportion had developed training budgets.

Key HR Issues
Organizational Design Process machinery has eliminated many heavy jobs, and the cost of technology for increased automation is becoming more financially viable for Canadian plants. Recruitment Food and beverage industries have problems attracting sufficient numbers of skilled tradespersons. Training and development Computer, communications, literacy and numeracy skills are becoming increasingly in important throughout the industry, affecting workers across a range of occupations. In addition, the introduction of new computer systems has created opportunities for training and advancement. Increasing requirements for these skills will be reflected in employee selection processes and is likely to raise education requirement levels in management and supervisory occupations. Rewards and Retention Pay and working conditions are described as superior to most other manufacturing industries.

Key Players
The principal business association is the Food and Consumer Products Manufacturers of Canada (FCPMC) in Don Mills (Ontario). Other active associations include the Canadian Soft Drink Association (CSDA), in Toronto, and the Canadian Bottled Water Federation (CBWF), in Richmond Hill (Ontario). Associations

Canadian Soft Drink Association (CSDA) Food and Consumer Products Manufacturers of Canada (FCPMC) http://www.fcpmc.com/