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 (D)</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. (A)</p> Signup and view all the answers

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

<p>$168.1 million (A)</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. (B)</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. (A)</p> Signup and view all the answers

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

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

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

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

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

<p>Quebec (A)</p> Signup and view all the answers

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

<p>30 (B)</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% (C)</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 (B)</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 (A)</p> Signup and view all the answers

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

<p>The Condiment Wars (D)</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 (A)</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 (A)</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% (D)</p> Signup and view all the answers

Flashcards

Kraft Heinz ketchup production return

Kraft Heinz will resume ketchup production in Canada in 2021, with the setup of a new facility in Quebec.

Quebec government investment

$2 million loan from the Quebec government to Kraft Heinz for ketchup production line.

Kraft Heinz Canadian operations investment

Kraft Heinz commits $100 million to expand their Canadian operations.

Canadian ketchup production target

The new Quebec plant's capacity will produce 98% of Heinz ketchup for the Canadian market.

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Tomato source (short-term)

Initially, tomatoes for ketchup will be imported from the United States.

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Future tomato sourcing goal

Kraft Heinz aims to source all tomatoes domestically, from Canadian producers.

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Previous plant closure impact

The 2014 closure of the Leamington, Ontario plant triggered the "Condiment Wars" and a PR crisis.

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Leamington plant repurposing

Acquired by Highbury Canco and retained a third of its staff.

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Unprecedented demand

High demand for Heinz ketchup in North America

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Condiment Wars

The name used to describe the competition and public relations crisis following Heinz ketchup's closure in Canada and the subsequent PR crisis caused.

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French's Ketchup Market Share

French's has risen to the second-largest share of the Canadian ketchup market, up from practically zero market presence to 6.9%, while Heinz has decreased its market share by nearly 7% since 2015.

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Kraft Heinz Ketchup Production

Kraft Heinz brought ketchup production back to Canada to meet the rising demand for ketchup and improve supply chain efficiency.

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Canadian Ketchup Demand

The demand for ketchup has grown significantly in North America, which has driven company decisions to re-establish production in Canada.

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Ketchup Sales Growth

Canadian ketchup sales have increased by almost 20% since the start of the so-called 'Condiment Wars' five years ago (2015-2020).

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Heinz Market Share 2015

In 2015, Heinz held 83.7% of the Canadian ketchup market.

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Heinz Market Share 2023

In 2023, the market share of Heinz dropped to 76.1% in the Canadian ketchup market .

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French's Ketchup Sourcing

French's sources its ingredients from Highbury Can-co and uses Canadian tomatoes.

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Canadian Consumer Loyalty

Consumers have shown strong support for French's ketchup, which is made in Canada

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Food Supply Chain Importance

The pandemic highlighted the crucial role of domestic food production and processing for a reliable food supply.

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Heinz Production Location

Currently, Heinz procures ketchup ingredients from the US.

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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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