Now is the time to explore new export markets
This is the second of our trends that we have published for 2026. There are several sources for trends to help you understand what is happening with consumers. They are important and we encourage you to consider how they impact your target market and your products. Our SKUFood trends are different. We focus on the entire value chain and look for insights to help you as you navigate through another year in this challenging industry.
Given the changes that have occurred in the global market, it is time to Explore new export markets. Hindsight is such a great thing. It is easy to say now Canada should have never got to the point where we rely on one country for 70% of our exports. The reality is we had a free trade agreement and it was an opportunity to access a market 10X bigger than our own. Logistics were not simple, but usually one truck would get your product to the desired market. There was so much integration between Canada and the US. It worked for a number of years.
A lot has changed.
One of the outcomes of an America First philosophy in the US is a shift to America Alone. The unpredictable environment in the US and desire to work with businesses that have similar values, is creating opportunities for Canadian food and beverage, in other markets. The rest of the world is interested in Canadian products. We have access to top quality raw materials, our labour force is more reliable than many, we have respected food safety guidelines and people usually have good experience working with Canadian companies. For these reasons, the time is right for Canadian food and beverage businesses to explore new export markets and new suppliers for inputs.
It takes time
Understanding consumers, customers, distribution channels, the regulatory environment and other unique attributes all take time and money. You need to invest up front to develop products that will have a value proposition in a particular market.
Now is the time to start.
There is interest and there is support. As our federal government works to reduce dependence on the US market, there are opportunities for Canadian businesses to learn about new markets, attend trade shows and do the work required to export beyond the US market.
You need to learn about the consumers. You can do a lot of this without leaving your desk but there are also times when direct contact and in person meetings make a difference. Consumers in every market are different. It would be important to understand the value they have for Canadian products. This can impact your price.
Customers (retailers and distributors) probably do business differently than the North American customers you work with. They might have a different process for developing a relationship and building trust. Make sure you understand any fees related to doing business in these markets. Refrigeration can be a challenge in some geographies. You also need to determine who takes possession of your product and when. In other words when does the money change hands and what assurance do you have that you are getting paid. Some models work best when you just produce the product and they pick it up at your back door. Others work better when you get your product into the market. We operate in a market where customers expect a trade spend. Investigate to learn more about this in the export markets you want to sell into. Your cost needs to reflect the promotion activity you will have to support.
Regulatory environments are different in every country. Some processors prefer to manufacture and let a local agent or distributor label the product. This adds costs but it can be more effective because it is right for the market. Some places are very aggressive with packaging recycling plans and deposit legislation. Labels need to be correct and make sure you work with someone who can help you understand your commitments for deposits or packaging stewardship.
There is lots to do but also a considerable amount of support. It does take time and money so the sooner you get started the better chance you have to understand the opportunity and move forward if it is right for your business.
Use your community
There are many food and beverage businesses exporting to different markets now. Talk to these people about their experiences and learn from them. We all have to work together to ensure this change happens.
Look for new sources of inputs
Many Canadian businesses have been impacted by the volatility in the US for inputs they rely on. Often ingredients or packaging was sourced from US suppliers as they had access to so much. Although Canadian companies would purchase from a US supplier the actual item was coming from another country. The addition of US tariffs on countries from Asia has had an impact on many items. This is a challenging environment to operate in. You could be faced with an increase and it could be there one, gone the next and then back again. Just this week the US has decided to add tariffs to countries doing business with Iran.
You might have to explore new suppliers that are not US based or even try to source some inputs direct. Many of these countries are looking for new routes to the market because the tariffs have had an impact on them.
If you are looking for sustainable packaging options Europe can be a good place to explore. Many countries are more demanding than Canada and you might find options that differentiate you in your category.
It is a challenging market to operate in but the sooner you work on solutions to reduce the impact of the volatility in the US, the better. If it ever does return to the trading relationship we had, the new markets could be incremental in your business.
We will continue each week with our 2026 trends. As always, we appreciate your feedback and comments as they help us understand what is important to you and your business. Speaking of feedback we did have a great email regarding the use of the maple leaf on packaging. We did some research and found the following:
Peter
SKUFood Recipes for Success Podcast
In this episode of SKUFood Recipes for Success, we sit down with Jake Karls, the unapologetically authentic and refreshingly relatable Co-founder & Chief Rainmaker of Mid-Day Squares, the good-for-you chocolate brand that went from a Montreal condo kitchen to tens of millions of bars sold across thousands of retail stores.
Jake brings a no-BS approach to brand building. For him, the real differentiator isn’t just product innovation—it’s human connection, consistent storytelling, and having the courage to be fully yourself in a crowded category. As Mid-Day Squares scaled from idea to retail reality, Jake played a pivotal role in building community first, leveraging radical transparency, and turning everyday snackers into loyal superfans.
Widely recognized as a rising star in business, Jake has been a finalist for EY’s Entrepreneur of the Year, landed on Forbes 30 Under 30 (Food & Beverage, 2023), and has become a familiar voice in media across North America.
In our conversation, Jake takes us through the creative and chaotic early days of the brand, how daily content evolved into a trust-building machine, and why vulnerability became their most powerful marketing strategy. We explore how the founders navigated rapid growth without compromising authenticity, how they intentionally built a movement rooted in empowerment and inclusivity, and what their journey reveals about the future of food brands that resonate on a human level.
This episode offers an inside look at how Mid-Day Squares disrupted an entire category simply by showing up as themselves.
If you would like to be a guest send us a note. We are always working on the upcoming episodes.
Leveraging the opportunity for Canadian Products
We are excited to deliver this program with Food & Beverage Manitoba. So many opportunities for food businesses.
Food & Beverage Manitoba is hosting a targeted 4-part series with Peter Chapman of SKUFood to help processors navigate rapid shifts in the Canadian market. With rising trade uncertainty and growing demand for Canadian-made products, success now depends on clearly communicating your value, aligning with retailers, and building a strong sales and marketing foundation.
This series equips food and beverage companies—whether new to retail or expanding their reach—with practical tools to get products onto shelves and into carts. Three sessions are virtual, and the final full-day session is in person at FABMb. Attendance at all four sessions is required.
Jan 15 – Opportunities with Consumers (Virtual 9am-12pm)
Jan 22 – Alignment with Retailers (Virtual 9am-12pm)
Jan 29 – Developing the Retail Plan (Virtual 9am-12pm)
Feb 5 – Create a Quality Presentation (In person at FABMb, virtual option available)
Members Price all 4 sessions: $400.00 plus GST
Non-Member price all 4 sessions: $800.00 plus GST
People can make a real difference
When I worked at a grocery store in high school, we had large carts we used to take people’s groceries out to the car. We packed them in paper bags and took them out in the sun, rain or snow to them in the trunk. Some of the best interactions customers had with employees was on that walk to the car and they appreciated it.
Things change and now consumers take the cart to the car. Obviously, this employee at a Toronto Loblaw store had quite an impact on consumers. We can all learn from people with a positive attitude and a passion for something that connected with people. Nice to hear about the impact this person, Kevin Wilson had on so many people.
Where is Peter speaking?
With the focus on Canadian food and beverage we wanted to share a program we have developed with Alain Bosse, the Kilted Chef. We partner to share insights about Canadian food and beverage at conferences and events. We talk about where products come from, share insights about some hidden gems and of course Chef Alain has great tips for using the products at home. This is designed to be entertaining and engaging. Not just for food industry audiences, it works for everyone.
I do have travel coming up to Toronto 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.