Excluding the sales decrease associated with the above four factors, Retail's organic growth rate for the quarter was approximately 8%.
Retail's revenue for 2012 increased by $160.1 million or 36.6% as compared to 2011 primarily due to: (i) the acquisitions of Piller's, SJ and Deli Chef in 2011, which resulted in incremental sales of $136.0 million; and (ii) net organic growth, i.e. after the impact of the four factors outlined above, across a range of products and customers of $33.4 million representing an organic growth rate of approximately 7.8%. These increases were partially offset by approximately $9.3 million in additional sales in 2011 due to the extra week of operations.
Looking forward (see Forward Looking Statements), for 2013 the Company expects Retail's organic sales growth to be at or slightly below its long-term targeted range of 6% to 8%.
Foodservice's revenue for the fourth quarter of 2012 as compared to the fourth quarter of 2011 was flat due to: (i) general organic growth of $5.6 million representing an organic growth rate of 6.6%; (ii) increased sales in its Worldsource food brokerage business of $0.7 million resulting from improved trading opportunities; and (iii) these increases being offset by $6.3 million in additional sales in 2011 that were the result of the extra week of operations.
Foodservice's organic growth rate for the quarter was in line with the Company's long-term target of 6% to 8% and above its expectations as the impacts of a delay in the start of the 2012/13 National Hockey League season and of product supply issues resulting from the shutdown at the end of the third quarter of one of Canada's largest beef processors were more temporary than initially estimated.
Foodservice's revenue for 2012 as compared to 2011 increased by $19.8 million or 5.6% due to: (i) general organic growth of $20.8 million representing a growth rate of 6.4%; (ii) increased sales in its Worldsource food brokerage business of $4.2 million; and (iii) $1.1 million in unusual trading volume in its Hub City Fisheries business resulting from the sale of excess inventory relating to a very successful salmon fishery in 2011. These increases were partially offset by approximately $6.3 million in additional sales in 2011 due the extra week of operations.
Looking forward (see Forward Looking Statements), for 2013 the Company expects Foodservice's organic sales growth to be within its long-term targeted range of 6% to 8%.
Gross Profit(in thousands of dollars except percentages) 13 weeks 14 weeks 52 weeks 53 weeks ended ended ended ended Dec 29, Dec 31, Dec 29, Dec 31, 2012 % 2011 % 2012 % 2011 %Gross profit by segment: Retail 31,615 20.9% 32,006 21.0% 132,677 22.2% 107,994 24.7% Foodservice 16,733 18.1% 16,408 17.7% 69,674 18.7% 66,307 18.8% -------------------------------------------------------------------------- Consolidated 48,348 19.8% 48,414 19.7% 202,351 20.9% 174,301 22.1% -------------------------------------------------------------------------- --------------------------------------------------------------------------
Retail's gross profit as a percentage of its revenue (gross margin) for the fourth quarter of 2012 as compared to the fourth quarter of 2011 was relatively flat due to higher margins in its deli meats businesses, which were the result of lower average costs for a variety of beef and pork raw materials, being offset by: (i) lower margins in its NDSD business resulting from the transition of certain product sales to third party distributors and wholesale distributors; (ii) increased plant overheads associated with Stuyver's new artisan bakery, which was completed in the third quarter of 2012; (iii) a temporary shortage of reasonably priced turkey raw materials in Ontario that resulted in record high turkey input costs for Piller's. This shortage, which had a negative impact on Piller's gross profit of approximately $1.5 million, was the result of short term structural issues with Canada's poultry supply management system's policies and procedures; and (iv) production inefficiencies attributable to SK Food Group's launch of new sandwich wraps for two large international customers.
