Heinz Ketchup Production in Canada
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Questions and Answers

What was a significant factor in French's success in the ketchup market?

  • They launched their product before Heinz.
  • They have a loyal customer base that prefers Canadian products. (correct)
  • They use tomatoes imported from the U.S.
  • Their ketchup is produced in the same factory as Heinz.

    • What percentage of the ketchup market did Heinz hold in 2015?

  • 83.7% (correct)
  • 76.1%
  • 69.5%
  • 83.2%

    • What has happened to Heinz's market share since 2015?

  • It has dropped below 70%.
  • It has decreased to 76.1%. (correct)
  • It has remained unchanged.
  • It has increased by 5%.

    • What is the projected value of ketchup sales in Canada this year?

    <p>$201.6 million</p> Signup and view all the answers

    What event is referred to as the 'Condiment Wars'?

    <p>The competition between French's and Heinz in ketchup sales.</p> Signup and view all the answers

    What was the total value of ketchup sales in Canada in 2015?

    <p>$168.1 million</p> Signup and view all the answers

    What did Maharaj say about the impact of consumer sentiment on Heinz's market share?

    <p>It has stabilized their market share.</p> Signup and view all the answers

    What main supply chain advantage did Kraft Heinz see in moving ketchup production back to Canada?

    <p>Efficiency within the Canadian supply chain.</p> Signup and view all the answers

    Which company started sourcing tomato paste from Highbury Can-co?

    <p>French's</p> Signup and view all the answers

    What is the main reason for Kraft Heinz's return to ketchup production in Canada?

    <p>Unprecedented demand for Heinz ketchup</p> Signup and view all the answers

    How much market share does French's have compared to Heinz now?

    <p>6.9%</p> Signup and view all the answers

    Which Canadian province will be home to the new Kraft Heinz ketchup production facility?

    <p>Quebec</p> Signup and view all the answers

    How many new jobs will the Kraft Heinz expansion in Quebec create?

    <p>30</p> Signup and view all the answers

    What percentage of ketchup produced by Heinz in Canada will come from the Mount Royal plant?

    <p>98%</p> Signup and view all the answers

    What was the total cost for adding the new ketchup production line, and how much will the Quebec government contribute?

    <p>US$17.6 million; US$2 million</p> Signup and view all the answers

    Where will the tomatoes needed for the new production initially be sourced from?

    <p>Imports from the United States</p> Signup and view all the answers

    What major event did Heinz's closure of its Ontario plant trigger?

    <p>The Condiment Wars</p> Signup and view all the answers

    What was the approximate weight of tomatoes that the Mount Royal facility was expected to handle annually?

    <p>50 million pounds</p> Signup and view all the answers

    What future plans does Kraft Heinz have regarding tomato sourcing?

    <p>Shift to domestic Canadian producers after contracts expire</p> Signup and view all the answers

    What percentage of the Ontario tomato crop was processed by the Heinz plant before its closure?

    <p>50%</p> Signup and view all the answers

    Study Notes

    Heinz Ketchup Production Return to Canada

    • Kraft Heinz is planning to resume ketchup production in Canada after a 6-year hiatus
    • The company will establish a new production line in Mount Royal, Quebec, by next summer
    • The plant will produce 98 percent of Canadian Heinz ketchup
    • The new facility will create 30 jobs
    • Quebec government is providing a $2 million loan for the project
    • Raw tomatoes will be imported from the US initially, though the company aims to source Canadian tomatoes in the future
    • The decision to return is tied to high demand in North America, and improved logistical efficiencies
    • The move is seen as a response to strong consumer preference for Heinz, and addresses growing consumer preferences in the ketchup market.

    Tomato Sourcing & Supply Chain

    • Former production in Leamington, Ontario, was shut down in 2014, leading to the controversial switch to US tomatoes
    • The switch created negative public perception and boycotts of Heinz in Canada
    • French's (a rival mustard company) capitalized on the situation by emphasizing Canadian-sourced tomatoes
    • Kraft Heinz's plan now aims to utilize domestic suppliers in Canada
    • The company hopes to use Canadian tomatoes in the future to address supply concerns and avoid future controversy

    Market Share & Competition

    • Heinz's market share in the Canadian ketchup market has decreased, falling from 83.7% in 2015 to 76.1% in the present year
    • French's ketchup has gained market share in the meantime, reaching 6.9%
    • Competition in the ketchup market is intense
    • French's success is attributed to its reliable Canadian production
    • The ketchup market has grown by almost 20 percent over the past five years, showcasing its appeal to consumers

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    Related Documents

    Heinz Ketchup Production Return to Canada (PDF)

    Description

    Kraft Heinz is planning to restart ketchup production in Canada, establishing a new plant in Quebec by next summer. This facility will produce nearly all of the country's ketchup, creating jobs and improving local sourcing of tomatoes, responding to consumer demand and market preferences.

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