Canadian suppliers should improve relationships
Now is the time
One of the opportunities and challenges of selling food and beverage in retail is that consumers have a big influence. They vote at the cash register every week. They have choices as to where they spend their food dollars. Some would prefer more choice, but in most markets, there are options. The best suppliers and retailers respond to consumers quickly. They figure out how to give consumers what they are looking for, while still operating their business.
Consumers reacting to the tensions between Canada and the U.S. is a good example. Canadian shoppers want Canadian products. This is great but we operate a very complex industry with slim margins. Suppliers and retailers cannot just drop everything they are doing to fill stores with Canadian products and pay staff to run around with signage. Suppliers cannot print new packaging in a week to reinforce their Canadian roots. It all costs money
It is a real opportunity, so suppliers and retailers must figure out how to respond but also get a return on the investments they are making. The last few weeks we have shared some insights into how you can update your packaging and how to promote your Canadian roots. This week we will talk about how you can improve your relationship with your customer, as you respond to these changes in consumer behaviour.
Understand your category
As we used to say at Loblaw this is a very fluid situation. Everyone in the industry has had to endure a lot of ups, downs and change. Some of this has been the result of government policy, consumer sentiment and very complicated international trade laws. You compete in your category, and you need to be in stores to see what is happening.
Retails have changed as tariffs and reciprocal tariffs have impacted cost of goods. This is not just on finished goods, it could be packaging like aluminum cans. It could also be tariffs applied by the U.S. to a country like Brazil for products going into the U.S. for processing and shipping to Canada.
Just this past weekend, Canada announced that reciprocal tariffs on products that should be exempt under the CUSMA agreement would be coming off. A detailed list is in our media article this week. More change coming to a category near you!
To understand your category, you should be looking at retail pricing, promotion activity and your competition. We recommend you chart this because it does change, and looking at the trends can be very helpful. If you know your cost of goods is changing because your packaging has increased, then you need to be looking for a price increase. You should see your competition moving at the same rate as you are.
We would expect some of the products impacted by tariffs and/or produced in the U.S. have increased their trade spend. They might be experimenting with different programs to see what is most effective. As we mentioned last week you might want to experiment with some trade spend to get noticed on the shelf.
When you can let your customers know, you are a student of the category they appreciate it. Their job is not to educate you. When you can talk about changes and bring a plan they appreciate it and you should improve your relationships with your customers.
Be aware
Retailers have responded quickly to consumer demand to help them find Canadian products. Do not underestimate the challenge of putting signs on thousands of products in hundreds of stores. Labour is expensive. We used to track the cost of implementing one price change. It would scare you. There are many steps, and despite sophisticated systems they still have to pay people to do the work. To put a sign on every Canadian product, retailers need to first confirm they are Canadian, which is not as easy as you would think. The billing address for a supplier is not always the same as the production facility. They also had to print shelf signage. Once they have the signage and the list, they have to send people out in 50,000 sq ft stores to find the items and put up the signs. Once they finish the shelf, they have to do the same task for all of the off-shelf displays, end caps etc.
We have all seen the social media posts with an item that has the wrong sign. Agree, it should never happen, but it can be a challenge. Suppliers can help with this. If you are in stores and see something that is not correct let them know. It was probably not intentional so find the right person and let them know. Category managers do not put up signs. You probably don’t need to call them. It is likely an issue in the store. If you do not get much buy in at store level, then you might want to let someone else know. Chances are a consumer will see it and then it will be shared across various social media platforms.
You can also let your customers know which of your products are produced in Canada. An email that says, ‘all of our products are produced in Canada’ is not that helpful. Do some of the work and provide their specific item numbers in a list so they can update their system. You know your items much better than they do.
Check the stores and websites for accuracy. You want to focus on your items first but then look at the category. As we said earlier your category manager might not be the person coordinating the program. Find out who is so you can communicate with them directly. If you see issues, let them know. All of these actions can help your relationship with your customer.
Be proactive
Chances are your customers have plans to promote Canadian products in flyers, online and in store. Look for these opportunities and propose your items for any over and above sales programs. Let them know you are interested and figure out in advance if you need to discount your products. Propose a level of discount that works for you. Better to figure this out as opposed to them assigning a deeper discount than you want or need.
The desire for consumers to purchase Canadian products is great, until they are out of stock. We have all read the quotes from the leadership in retail about how volume has been impacted. Suppliers need to do everything they can to anticipate the volume and be ready. Talk to your customers and we would always suggest going in with a plan but listening to the advice as well. Be realistic about volume and do the best you can to predict and supply what is needed. Keeping a good in stock position requires cooperation from suppliers and retailers. It also requires communication.
Doing the work to understand your category, getting in stores and checking out online and focusing on sales with promotion and in-stock position will do a lot to help your relationship with your customers.
If you will be at CHFA in Toronto in September let me know! Looking forward to connecting with many people that weekend.
Peter
SKUFood Recipes for Success Podcast
In this episode of Recipes for Success, we dive into the powerful role of data in the fresh food industry with Mike Mauti, at Execulytics Consulting. With over 25 years of experience in Canadian retail—most notably in senior leadership at Loblaw—Mike brings a wealth of knowledge on how analytics, execution, and strategy intersect to drive measurable success in the grocery sector.
Mike shares how Execulytics helps fresh food suppliers, producers, and brands make smarter, faster decisions through tools like The Produce Report: Canada, Produce DNA, and Efficient Consumer Surveys. His work bridges the gap between what consumers want and how retailers deliver, offering clients a strategic edge rooted in real data, not guesswork.
We also explore his career journey, including two decades at Loblaw where he led major teams and operations across merchandising, workforce management, and retail strategy. Now, as a respected voice in the industry and a contributor to the Canadian Produce Marketing Association and Vineland Stakeholder Advisory Council, Mike is helping shape the future of fresh retail in Canada.
If you’re in the food business and looking to improve your market positioning, understand your customers better, or navigate retail relationships with more confidence, this episode is packed with actionable insights.
Listen and subscribe wherever you get your podcasts.
If you would like to be a guest send us a note. We are always working on the upcoming episodes.
More changes to tariffs
As Canada works to negotiate a more long term trade arrangement with the U.S. the government has decided to remove reciprocal tariffs on products that are included in the CUSMA. This probably had to happen before the U.S. would negotiate a deal. A long list of products are impacted.
If items in your category are on the list expect more changes to pricing after the September 1 date. Retailers will be pushing suppliers to lower pricing if they have increased it for tariffs.
Excited to be participating in the FCC Food and Beverage Summit in Saskatoon in September. The FCC team have put together a great agenda. If you are food producer or processor on the prairies this is a great day to get some great insights and keep moving your business forward.
It's back!
Back by popular demand, the FCC Food and Beverage summit is your chance to see what's new, get inspired and gain valuable insights to take your food and beverage business to the next level. Learn from industry experts, network with other entrepreneurs and make connections to expand your market and grow your business.
We're thrilled to present and exciting lineup of speakers, along with complementary booths for food and beverage processors to showcase and demo their exceptional products. Curious who is showcasing this year?
Meet our vendors
It's all happening in our backyard. Bigger skies. Bigger ideas. Bigger opportunities. Everything is bigger on the prairies!
Last year sold out quick- register early.
Tuesday, September 23
Prairieland Park, Saskatoon
Where is Peter speaking?
I do have travel coming up to Toronto, Saskatoon, and Fredericton so if you want to connect or have an event in any of these locations give me a call or send me an email.
