Canadian grocers, both large and small, are evaluating options beyond U.S. products in anticipation of trade uncertainties. This move comes as the trade truce between the two countries approaches its conclusion in early March. Grocers are proactively seeking stable and reliable long-term solutions.
Gordon Dean, owner of multiple grocery stores in Ontario and Quebec, emphasizes the importance of adapting to this "new normal" by sourcing alternatives. At Mike Dean Local Grocer, the focus on "Canadian content" is intensifying, especially in the produce sector, which traditionally relies on U.S. imports. Dean notes a shift in supplier behavior, with many moving away from U.S. sources even before recent tariff announcements.
Dean highlights the introduction of produce from unconventional regions, citing Namibian grapes as an example. The exchange rate factor, with a weaker Canadian dollar, supports this transition. Dean has opted to decline price increase requests from U.S. suppliers, instead seeking domestic replacements.
Rick Rabba, president of Rabba Fine Foods, is similarly assessing the potential impact of tariffs on his produce offerings. Rabba's strategy involves engaging with Ontario producers to explore alternatives, given the unpredictable trade landscape. The expansion of Canada's domestic greenhouse sector provides some flexibility for produce options like lettuce.
Rabba clarifies that the focus on alternatives is not an opposition to U.S. produce but a measure to ensure uninterrupted supply for Canadian customers. The aim is to maintain consistent availability regardless of trade developments.
Peter Chapman from SKUFood comments on the trend, noting that specialty grocers are capitalizing on the 'buy Canadian' movement. Among major grocers, Loblaw has been notably vocal. Loblaw is actively engaging with vendors to increase Canadian product sourcing while exploring global alternatives where Canadian options are limited.
Loblaw's initiatives include showcasing Canadian-prepared products and introducing a "swap and shop" feature in its app. CEO Per Bank observes an increase in sales for Canadian-identified products. However, he acknowledges challenges in replacing U.S. produce, especially during winter months.
Empire Co. Ltd.'s COO, Pierre St-Laurent, reports customer interest in product origins, prompting the grocer to enhance signage and information. St-Laurent anticipates adaptations from Canadian suppliers to meet demand and suggests U.S. suppliers may need to reconsider their production strategies to remain competitive in Canada.
Metro's approach, as outlined by spokeswoman Marie-Claude Bacon, prioritizes local Canadian products and aims to mitigate price impacts. The company plans to enhance the visibility of local products across various platforms.
Dean remarks on the difficulty of substituting certain big brand names, despite the availability of Canadian alternatives. He also highlights consumer confusion over what constitutes a Canadian product, given the presence of multinational companies with Canadian operations.
Source: The Canadian Press
