A smaller Canadian company took on a larger corporation and has put a dent in its sales. When Heinz decided to pack up its operations in Canada and move its headquarters to the States, French's fought back and won over the hearts of many Canadians. The business and commercial sector was shaken up by Heinz' pullout, which gave French's a great marketing advantage in getting many Canadians to switch their brand of ketchup.
French's promised Canadians to use only tomatoes grown in Canada for its product. But the company knew that it were up against a product that most Canadians had been using all their lives -- Heinz ketchup. Now, after a couple years, many Canadians are covering their fries with French's ketchup, causing Heinz to lose some of its market share and profits. In fact, a professor who is an expert in food distribution and policy at a well-respected Canadian university, says what French's has accomplished is pretty much unheard of.
The irony, however, is that French's is owned by a U.S. company, but French's promise to use the tomatoes of farmers that Heinz abandoned in Leamington, Ontario, made Canadians stand up and take notice. Experts say that using the Canadian product card can only go so far, and that French's must create a pretty good ketchup for Canadians to continue to purchase the product. When all this happened, Loblaws pulled French's ketchup from its shelves, citing low demand, but Canadians rallied and began purchasing the product, causing Loblaws to continue carrying the product.
Canadians tend to support products made in Canada in the business and commercial world. Entrepreneurs who are looking for advice on the legal aspects of doing business in Canada would do well to speak with a lawyer experienced in this branch of the law. A lawyer is able to offer advice on startups, expansions, mergers and acquisitions and other areas of business that might affect a client.