Kraft Heinz bets big on Canada. What it means for the food industry
Kraft Heinz has just committed another $250 million to its Montreal facility—one of the largest food manufacturing plants in North America. In today’s uncertain environment for consumer packaged goods, this is not just another capital announcement. It’s a signal.
And frankly, an unexpected one.
Only months ago, Kraft Heinz was rumored to be exploring a corporate split amid sluggish sales and strategic drift. Behind the scenes, pressure from major shareholders—including Berkshire Hathaway, which holds roughly 27% of the company—reportedly helped shelve those plans. The company has instead opted to double down on what it already does well.
READ: Kraft Heinz pauses plans to split into 2 companies, says its problems are 'fixable'
Still, the headwinds are real. Kraft Heinz shares are down more than 25% over the past year. Like many large CPG firms, it is being squeezed from all sides: private labels gaining ground, the rise of weight-loss drugs reshaping consumption patterns, and growing consumer skepticism toward so-called “ultra-processed” foods.
Yet, here we are—with a major reinvestment in Canada.
And that’s where things get interesting.
Despite persistent misconceptions, most Kraft Heinz products sold in Canada are actually made here. That reality was oddly lost in the political noise last year, when former Prime Minister Justin Trudeau referenced the “Ketchup Wars” of 2016 and suggested Canadians should favour domestic products—seemingly unaware that Kraft Heinz had already shifted significant production back to Montreal.
The irony was hard to miss.
To its credit, Kraft Heinz responded swiftly and effectively. The company leaned into transparency, opened its doors to media and mobilized political support. It also embedded itself into the cultural moment—most notably through its high-profile presence at Rogers Centre during the Blue Jays’ playoff run. It was smart, coordinated and ultimately effective brand positioning.
Then came the “Buy Canadian” movement, which only amplified the momentum. While we don’t have precise data on how much this boosted Kraft Heinz’s sales, it’s reasonable to assume the company benefited.
But let’s be clear: “Made in Canada” is no longer enough for many consumers. Increasingly, they want “Canadian-owned.” And that distinction matters.
READ: One year later, 'buy Canadian' sentiment remains strong
It also explains the ongoing speculation around consolidation. Rumours of discussions with Unilever—owner of Hellmann’s—suggest a continued search for scale. More recently, talks involving McCormick have surfaced. The global food manufacturing landscape is clearly in flux.
At the same time, something important is happening here at home.
Canada’s food manufacturing sector is quietly experiencing a resurgence. Mars Canada is investing $180 million to enhance operations across Ontario. Coca-Cola is putting $141 million into its Brampton facility. These are not symbolic gestures—they are strategic bets on Canadian production capacity.
And they matter.
Every dollar invested in domestic food manufacturing strengthens our supply chains, supports Canadian farmers and enhances our ability to innovate for local markets. It also builds resilience against global shocks—something we’ve learned the hard way over the past few years.
But there’s a catch.
While multinationals are scaling up in Canada, many of our domestic processors remain stuck—too small to compete globally, yet too large to ignore. If we want a truly resilient food system, we need to do more than attract foreign capital. We need to create the right conditions for Canadian firms to succeed.
That means reducing the regulatory burden—especially the multi-layered, often duplicative rules that vary by province. It means finally addressing interprovincial trade barriers that fragment our domestic market and limit scale. It also means implementing a highly functioning grocery code of conduct—one that doesn’t just exist on paper, but actually disciplines retail practices and ensures fair dealing across the supply chain.
In short, we need a system that allows smaller manufacturers not just to survive—but to grow.
Kraft Heinz’s investment is good news. But it should also be a wake-up call. Canada is an attractive place to produce food. The question is whether Canadian companies will be given the same opportunity to scale and lead. Because in the end, resilience isn’t just about where food is made. It’s about who controls the system.
