Canada _ (Commonwealth Union) _ Nestlé Canada has announced that it would phase out its frozen meal and pizza operations in Canada over the following six months.
Delissio, Stouffer’s, Lean Cuisine, and Life Cuisine are the four brands that will no longer be carried in Canadian supermarket shops’ freezer aisles. Confectionery, coffee, ice cream, luxury water, and pet food are among the sectors that the firm claims it is focused on to sustain long-term commercial growth.
Nestlé Canada President and CEO John Carmichael said the company’s decision would allow it to invest more in the areas it has prioritized. Because the corporation does not produce these items in Canada, no manufacturing facilities in Canada will be impacted. Nestlé says it will work with its retail partners to get these products out of stores. Leore Newman, director of the Food and Agriculture Institute at the University of the Fraser Valley in British Columbia, says Nestlé’s move is part of a larger trend of manufacturers pulling back from Canada and other markets due to increased shipping costs and stretched supply lines.
“The frozen items are created in the United States and brought north, and it appears like they’re focusing on the things that are really made here, which is an intriguing trend,” she added. She cites a recent lettuce scarcity in Canada as a result of a large producer in California suffering from drought and disease outbreaks in its lettuce harvests, resulting in lower exports and higher pricing. Lettuce enthusiasts are being thrown by rising pricing, which has resulted in pricey salads and alternatives.
As supply chain uncertainty persist, Newman predicts that Canada will see more product interruptions and, perhaps, fewer specialist items imported. “What we really need to focus on is expanding our domestic supply lines to replace lost items, otherwise the grocery store could get a little dull after a while.”