Made in Canada: the ‘Ketchup Wars’ Continue

On November 17th, Kraft Heinz announced that it will begin making Heinz ketchup in Canada once again. This announcement comes six years after the company decided to divest its Leamington, Ontario processing facility in 2014— a decision which sparked widespread criticism and consumer boycotts among Canadians who viewed the move as anti-patriotic. Heinz ketchup's return to Canada re-ignites the so-called "ketchup wars" and shines a spotlight on Canada's country of origin labelling rules. 

“Made in Canada” Claims

Canada's food laws prohibit businesses from making claims that are false or misleading.  On this basis, businesses are only permitted to label their products with "Made in Canada" when the last substantial transformation of the product—say, transforming American tomato paste into ketchup—occurs in Canada. Further, the "Made in Canada" claim must be qualified by a statement to indicate whether the product is made with imported or domestic ingredients. In contrast, the claims "Product of Canada" and "Canadian" are reserved for food products that are made from at least 98% Canadian ingredients, processing, and labour. Maple leaf vignettes are less tightly regulated so long as their use is not misleading to consumers. 

The Ketchup Wars

In the wake of Kraft Heinz's exit, McCormick & Co's French's brand played to Canadian's ketchup nationalism by switching to Ontario-grown tomatoes and, later, opening a processing plant in Toronto.  French's ketchup was subsequently re-labelled with maple leaf vignettes and claims such as "Bottled in Canada with 100% Canadian tomatoes." This follows a common trend we’re seeing in the industry: companies labelling their products with Canadian flags and emblems, and making nuanced claims regarding Canada (e.g. "Canada's Favourite"). Bolder (read: fraudulent) actions regarding Canadian origin labelling have led to criminal charges in the processed tomato sector over the last 5 years.

Recognizing the value of these claims to businesses, in Spring 2019, the Canadian Food Inspection Agency hosted a consultation on proposed changes to the country of origin guidelines. The proposed changes would remove the need for a qualifying statement accompanying the "Made in Canada" claim. They would also lower the "Product of Canada" threshold to products that are at least 85% Canadian ingredients, processing, and labour (versus the previous 98%). These changes have yet to be implemented, but their impact on the industry cannot be overstated.

Although Kraft Heinz has stated that their Canadian-made ketchup will contain American ingredients (including American tomatoes), it will be interesting to see how the company leverages country of origin claims to repair their image among Canadians.  The "ketchup wars" are a salient reminder of the power of "Made in Canada" marketing, particularly for foreign companies such as Kraft Heinz and McCormick & Co.