Made in Canada

With increased food costs, consumers’ commitment to buying Canadian is down.

By Carly Peters

It’s clear that Canadians are shopping differently with current cost pressures. And while many consumers view Canadian-made foods to be safer, higher quality, and more sustainable, when they have less money to spend, they aren’t necessarily supporting those virtues with their grocery dollars.

Forging strong partnerships with local growers and manufacturers to bring new and unique items into the marketplace has been a key factor in Freson Bros. 67 years of success in Alberta. However, Laura Duff, Director of Centre Store for the grocery banner states increased inflation and food costs are currently making an impact on customer’s willingness to try new products. This disproportionately affects local makers whose production costs and price tags are often higher.

“It’s a double-edged sword nowadays in regard to listing new local products. We want to support Albertan/Canadian growers and producers as much as possible but we’re at the mercy of what our customers are willing to pay,” she says.

On paper, the preference for locally sourced products is still a significant trend in the Canadian consumer market. According to a recent Business Development Bank of Canada report, 97 per cent of Canadians stated they would prefer buying local to support the economy, while 45 per cent have made an active effort to purchase Canadian-made products in the past year. However, this is not always reflected when it comes down to actually putting products in cart.

“[Buy Canadian] is more a part of consumer conscious now, however, the steep inflation has definitely affected consumers making that choice. Price is king due to limited grocery dollars and local Canadian food is often costing more than imports,” states Shannon Bowden, senior brand and communications manager at Bee Maid Honey, which features, “Proudly Owned by Canadian Beekeepers” on every bottle. “When Canadians have limited dollars to spend at the grocery store, made in Canada doesn’t rank as high.”

While it is not likely the key motivator of purchase, made in Canada is a benefit that can sway a purchase decision, states Kristi Knowles, CEO of Reunion Foods Inc., makers of Mother Raw, a Canadian-created line of plant-based dressings and dips.

“At Mother Raw, we add a made-in-Canada sticker to the top of every product, as well as communicate it on front of pack. We believe that local is an important consideration at point of purchase,” she says, adding it’s great to see that Canadian retailers are continuing to support local, Canadian-made brands through in-store signage, special displays, and promotions. “It has been part of our successful selling story to Canadian retailers and is another checkmark for Mother Raw gaining distribution.”

“We are very fortunate that Canadian companies have been incredibly innovative in making more products available for customers and we work to prioritize local products for mass distribution whenever it makes sense,” says Dan Hansen, vice president, centre of store for Save On Foods, which along with hyper-local offerings, provides a wide array of “Made in Canada” skus that have full distribution and are part of the brand’s regular planogram and product mix. “Having products made in our backyard means less risk of supply chain challenges and fresher products for our customers.”

Supply chain issues during COVID brought a lot of Canadian products to light for consumers. That continued availability and sense of food safety has continued to be a boon for Canadian products, says Colleen Haussecker, owner of CANADIAN ORGANIC Spice & Herb Co. Inc.  Under their Splendor Garden brand, the company recently launched a line of Canadian-made, plant-based, clean-label soup mixes made with mushroom powder to go alongside their herbs and spices, seasoning blends, and organic coating mix.

Haussecker states their in-store sampling program has been the best way to convert consumers from spice blends from bigger brands that may command a lower prices.

Duff sees this in-store at Freson Bros. as well, particularly in a time when dollars are saved for products people will know they like.

“Consumers are voting local with their wallets when they aren’t taking a risk on a new product with a higher retail price. So, in-store sampling of new local products has been integral to establishing the customer’s trust and loyalty,” she says.

Bee Maid’Bowden hopes once food inflation settles, consumers will go back to their pride in Canadian-made food and start to consciously support and purchase these items again. “I believe made in Canada will always have appeal because consumers know that we have some of the highest food safety standards in the world, and by supporting Canadian-made food products they are supporting local farmers, beekeepers, and the local economy.”

-30-