Backgrounder - Five rapidly expanding businesses on Montreal’s South Shore

Repayable contribution of $2,000,000 out of a total investment of $14,820,900

Named after its founder, Michel St-Arneault Inc. is a family business that has been operating for nearly 45 years. It specializes in the transformation of potatoes into french fries, which it sells under private brands and registered trademarks. Its clients include distributors, wholesalers, restaurants and grocery chains. The company’s sales—over half of which are exports—have been growing significantly. Its main international markets are the U.S., Mexico and South America.

The aim of the project carried out in 2017 was to increase the company’s productivity and production capacity through the acquisition of new equipment for one of the production lines. CED supported the acquisition and installation of potato transformation equipment, including a deep fryer, a freezing tunnel and the associated systems.

The project resulted in the creation of 10 jobs.

Repayable contribution of $500,000 out of a total investment of $4,100,000

Blücare Lab Inc. (Blücare), a spin-off of Intersand Group Canada Inc. (Intersand), is an innovative SME in the life sciences sector. It produces and markets a screening test for detecting blood in cats’ urine. Granules sprinkled in a cat’s litter box turn blue when there is blood in the urine. This can help detect the presence of 37 different infections or diseases. The patented technology is revolutionary because it replaces the need for a bladder tap by a vet, a process that is not only costly but is also painful for the animal.

The project targets the startup of Blücare, which is a two-part process. The first component involves the implementation of a marketing strategy that primarily targets the Canadian, European and U.S. markets; the second part involves increasing production capacity by setting up a new plant on the South Shore of Montreal. CED’s contribution will serve to fund market studies; scientific analyses and studies; the development of packaging and technical documentation (pamphlets and user instructions); branding and the development of promotional tools and advertising; and the acquisition of production equipment for the new plant.

Blücare expects to create 13 jobs by the end of 2019.

Repayable contribution of $330,000 out of a total investment of $880,000

Simaudio produces high-end audio systems for the public and professionals. The company sells three product lines: Moon, Neo and Evo. Created in 1980, Simaudio exports its innovative, high-end products to some 40 different countries. The brand has received acclaim from industry experts and critics, and the company has been the recipient of over 400 awards of excellence, specifically for its Moon Neo amplifier.

The aim of the project is to increase the company’s productivity by integrating printed circuit board assembly technology into the manufacturing process. The main project activities are the acquisition, installation and implementation of a welding and assembly line, including the construction of a new mezzanine (stairs and guard rail), and the refurbishing and preparation of the plant.

CED’s assistance will be used to purchase and install equipment, namely a complete welding line (including conveyors and distributers) and welding machinery.

The project will contribute to the creation of 11 jobs.

Repayable contribution of $180,000 out of a total investment of $520,000

Hurraw is a new SME that produces and markets kibble for pets (dogs) using an innovative process that involves the dehydration of fresh food (red and white meat and fish) at a low temperature to conserve the original nutrients. This means that a dog will eat about 50% less when fed with this food, compared with the other types of extruded kibble products available on the market. The dehydrated kibble provides high-grade nutrition, does not have an objectionable odour, and meets quality standards for human consumption. It bridges the gap between traditional kibble and raw food.

The project, which targets the startup of this innovative company, involves the acquisition of production and lab equipment and the implementation of a marketing strategy for the U.S. and, on an exploratory basis, the Asian and European markets.

CED’s support will cover the acquisition of production and lab equipment, the leasehold improvements required for operations to meet HACCP standards, and the hiring of a resource specializing in international market development. This person will also be responsible for product marketing and commercialization, which will include producing promotional material, developing a website, organizing exploratory visits and attending specialized trade shows.

The project is expected to create nine jobs.

Repayable contribution of $180,000 out of a total investment of $600,000

Exprolink manufactures and markets a full range of motorized outdoor sweepers and vacuum equipment. The company will be introducing two new models in 2018: the LS175, a compact, scalable vehicle, and its electric version, the LS175e. Exprolink will be the first North American manufacturer to offer motorized outdoor electric vacuum equipment for cleaning public urban spaces (bike paths, pedestrian streets, parks and shared spaces), as well as airports, parking lots and campuses.

Exprolink started its operations in 2011 when it acquired the line of Madvac products, which have an excellent market reputation. Since then, Exprolink successfully relaunched the line of Madvac products via a number of international distributors. The company, which has 30 employees, carries out most of the vehicle assembly and parts welding activities at its Longueuil plant.

The project involves the implementation of a strategy for the marketing of the new models of vacuum equipment in the U.S., and the enhancement of the company’s competitiveness through the acquisition of an enterprise resource planning (ERP) system.

Specifically, CED is supporting the development of the proof of concept of the new electrical-powered compact sweeper, as well as the development of demo vehicles. The funding will also serve to upgrade the website, produce corporate brochures and promotional videos and develop digital ads and a social media use strategy.

The project will result in the creation of five jobs.