Kraft Heinz to increase Canadian production with $250-million investment in Montreal factory

Heinz ketchup at a store in New York, U.S., on July 14, 2025. Photo by Michael Nagle/BloombergArticle contentKraft Heinz Canada says it’s going to spend $250 million on its factory in Montreal to increase homegrown manufacturing and production of its brands.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe Canadian arm of the American multinational food company on Friday announced a $250-million investment into its factory in Montreal to increase its homegrown manufacturing and production of its brands.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.We apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Play VideoArticle contentArticle content“(When demand for a product peaks), we have to import from either the U.S. or sometimes even from our colleagues in Europe because we just don’t have capacity,” Simon Laroche, president of Kraft Heinz Canada, said. With these investments, we’ll be able to keep all the production here.”Article contentPosthasteBreaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentFor example, he said 90 per cent of the Heinz ketchup sold in Canada is made in the country — and made from Canadian tomatoes, mostly from Leamington, Ont. — but the company has to import from the United States to satisfy demand during peaks in the summer.Article content“We looked at our next five years and it was very clear for us that we needed to invest because we wouldn’t be able to fulfil the demand of Canadians for a product,” he said.Article contentWith the new investment, Laroche said the company will be able to make “100 or 99-point-something” per cent of the ketchup needed in Canada in the next two to five years.Article content“Canadians love products made in Canada,” Laroche said. “The more we can make in Canada from our Canadian factory, that’s always a more efficient way to do it, and Canadian consumers love that.”Article contentKraft Heinz Canada said the funds will be used for upgrading and modernizing the Mount Royal facility, which employs more than half of the company’s 2,000 employees in Canada. The facility, which houses the Canadian subsidiary’s main operations, produces brands such as Kraft Dinner, Philadelphia Cream Cheese and Kraft Peanut Butter.Article contentArticle contentLaroche said the factory is the company’s most complex in the world and has 41 different lines.Article contentRead More Kraft Heinz Canada president sees grocery code of conduct helping to stabilize prices New Kraft Heinz CEO pauses split to first improve results Article content“We need more capacity, more flexibility, we need to find efficiencies and we need reliability,” he said. “So, yeah, it’s a big master plan.”Article contentLaroche said there are also logistic costs when importing products and U.S. factories have other markets to support, making it more complicated to get what Canadians need.Article contentHe also said U.S. tariffs and the growing sentiment to buy Canadian had the company come up with campaigns and commercials to show its products were produced here.Article content“A lot of Canadians thought that our products were being imported and people didn’t know that 75 per cent of what we sell in Canada is made in Canada,” he said.Article content• Email: dpaglinawan@postmedia.comArticle contentTrending TC Energy could be open to return to B.C. LNG pipeline project as global gas crunch threatens Oil & Gas Dennis, 79, is worried about a market crash. Should he move his portfolio to 100% income?

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Investor Trans Mountain readies expansion in 2027 as pipeline space fills up Oil & Gas Garry Marr: Why it could be the right time to walk away from your real estate Personal Finance Canadian housing bears now have nine reasons backing them up Mortgages