AGP Executive Report

Food Innovation: Ottawa is putting $50 million into the Canadian Food Innovation Network to help food and beverage companies adopt new technologies and grow. Supply Chain: B.C. Food & Beverage is advancing plans for a proposed 750,000-square-foot Metro Vancouver food terminal, combining distribution, cold storage and processing near major transport links. Production Outlook: Canada’s chicken output is forecast to rise 2% in 2027 on solid demand. Restaurant News: Richmond’s Baan Lao was named North America’s best restaurant and plans two Granville Island openings. Industry Pressures: Canada held seventh place among G20 countries in a new agri-food competitiveness report, but processors still face rising costs, trade uncertainty and challenges attracting private investment.

Agri-food Investment: Canada will put C$50 million into food-sector innovation and processing automation through the Canadian Food Innovation Network. A new industry outlook says Canada ranks seventh among G20 countries, but processors still face rising costs, trade uncertainty and hurdles bringing products to market. Supply Chain: B.C. Food & Beverage is advancing plans for a 750,000-square-foot food terminal near Delta, combining wholesale, processing and storage facilities. Separately, P&H plans to close its Owen Sound grain terminal on Dec. 18, leaving local farmers facing fewer storage options and higher shipping costs. Production: Canada’s chicken output is forecast to grow 2% in 2027 to 1.515 million tonnes, supported by steady retail and foodservice demand; avian flu-related chick shortages held back production this year. Restaurant News: Richmond’s Baan Lao was named North America’s best restaurant and plans two Granville Island openings. Niagara College’s Teaching Brewery also took gold at the Canada Beer Cup for its NC Craft Bitter.

Food Processing Investment: Ottawa is putting $50 million into the Canadian Food Innovation Network to help processors, especially small and midsize firms, adopt automation, AI and other technologies. Restaurant Expansion: Recipe Unlimited has agreed to acquire Greece-based Evergood, adding more than 575 restaurants across five brands to its international portfolio, subject to approvals. Agrifood Funding: Canada and Ontario are investing $22 million in provincial agrifood businesses. Restaurant Recognition: Richmond, B.C.’s Baan Lao was named North America’s best restaurant and plans two Granville Island openings. Industry Pressures: Trade disruptions are squeezing Canadian food and beverage manufacturers, while the sector is also facing a major hiring challenge, with an estimated 173,000 new workers needed by 2034.

Restaurant Recognition: Richmond’s Baan Lao became the first Canadian restaurant named North America’s best by the World Culinary Awards, and plans two Granville Island openings. Food Processing Investment: Ottawa is putting $50 million into the Canadian Food Innovation Network to help processors, especially smaller firms, adopt automation, AI and digital tools. CFIN expects to support more than 200 businesses. Industry Expansion: Recipe Unlimited has agreed to acquire Greece-based Evergood, adding more than 575 restaurants across five brands to its international footprint, subject to approvals. Packaging Rules: The Supreme Court of Canada will hear an appeal over Ottawa’s single-use plastics ban, testing the federal government’s authority to classify plastic items as toxic. Trade Pressures: Disruptions are putting pressure on Canadian food and beverage manufacturers, while industry voices say the sector needs more private investment.

Food Industry Leadership: Vancouver-based Premium Brands appointed retail executive Rachael Vegas to its board, citing her grocery, merchandising and supply-chain experience. Trade Pressures: Canadian food and beverage manufacturers face tariff uncertainty and rising costs. Farm Credit Canada says first-half sales rose 4% to $88.1 billion, but inflation-adjusted volumes were flat. Restaurant News: Denny’s opened its first Woodstock, Ont., diner, while Ontario-based Tahini’s plans 30 new locations across Canada and the U.S. over two years. Agrifood Investment: Canada and Ontario are putting $22 million into agrifood businesses. Industry Recognition: Richmond, B.C.’s Baan Lao Fine Thai Cuisine was named North America’s best restaurant, the first Canadian winner, and took the national title for a third straight year. Worker Rights: Two Mexican migrant workers secured an $11,000 settlement for unpaid wages from New Brunswick seafood processor LeBreton & Sons Fisheries.

Manufacturing Pressure: Canadian food and beverage manufacturers posted $88.1 billion in first-half sales, up 4% year over year, but inflation-adjusted volumes were flat. Tariffs, trade uncertainty and higher costs are squeezing margins. Trade Push: Agriculture Minister Heath MacDonald is meeting EU officials and opening Canada’s pavilion at SIAL Paris. Agri-food and seafood exports to the EU reached $6.7 billion in 2025. Labour Crunch: Federal cuts to temporary-worker arrivals are tightening staffing for some businesses, while restaurants and agriculture rely on these workers to fill shortages. Industry Growth: Recipe Unlimited has agreed to acquire Greek food-service division Evergood, including Goody’s and Everest, as it pursues international growth. Longo’s is also set to open a new King City store with fresh sushi, prepared foods and a cooking-class space.

Food Access: Winnipeg’s CHARM Hub has opened as a low-cost grocery option in Elmwood, where the nearest supermarket is more than a kilometre away. It stocks pantry staples, dairy, frozen food and limited fresh produce. Restaurant Expansion: Hawaiian barbecue chain L&L plans five Alberta locations from 2027, starting in Edmonton through a local franchise deal. Agrifood Investment: Canada and Ontario are investing $22 million in 130 food producers and processors to grow sales at home and abroad; the initiative is expected to support 925 jobs. Alcohol Retail: Ontario’s expanded alcohol sales have cut LCBO earnings by $757 million over two years, while private retailers added $911 million in annual sales. Workforce Outlook: Canada’s food manufacturing sector is projected to need 173,000 new workers by 2034.

Alcohol Retail: Ontario’s expanded alcohol market is weighing on public finances: LCBO earnings fell $358 million to $1.8 billion in 2025–26, while the agency absorbed $33.4 million in costs from unsold U.S. alcohol. Restaurant Expansion: L&L Hawaiian Barbecue has signed a five-unit deal to enter Canada in 2027, starting in Edmonton. Value-Added Agriculture: New reports urge Canada to build more food-processing and ingredient capacity at home instead of relying on bulk exports. Workforce: Canada’s food manufacturing sector is projected to need 173,000 new hires by 2034. Market Pressures: More than one-third of Ontario restaurants say weaker consumer spending is a top business threat.

Trade and Beer: A U.S. ban on Canadian alcohol imports has effectively shut down one importer’s Canadian craft beer business. In Ontario, another importer is brewing an American brand at home as provinces pull U.S. alcohol from shelves. Restaurant Openings: Denny’s Canada has opened its second Regina diner, while CRAFT Beer Market is celebrating 15 years with a limited-time menu at its Canadian locations. Food Manufacturing: McCain Foods has acquired an Indian frozen-food company as Canada-India ties thaw; the sector is also projected to need 173,000 new hires by 2034. Costs and Demand: Ontario restaurants cite weaker consumer spending as a leading business threat, while rising diesel costs and a weak dollar add pressure to restaurant and grocery bills. Restaurant Business: MTY Group has ended its strategic review without a sale and plans to return capital to shareholders.

Convenience Retail: 7-Eleven’s North American same-store sales rose 0.6% in the second quarter, with fresh-food sales returning to growth as the chain upgrades its hot-food lineup. Food Costs: A weaker Canadian dollar and higher prices for wheat, rice, soy, corn and sugar are adding pressure to grocery bills; rising diesel costs could push food inflation higher into 2027. Food Manufacturing: McCain Foods bought an Indian frozen-food company, expanding its international business as relations between Canada and India thaw. Canada’s food manufacturers will also need an estimated 173,000 new workers by 2034. Restaurant Pressures: More than one-third of Ontario restaurants say weaker consumer spending is their biggest business threat, while high diesel costs add to operators’ strain. Restaurant Groups: MTY Group ended its strategic review without a sale, opting to focus on its portfolio and return capital to shareholders; it also raised its dividend by 35%. Packaged Foods: PepsiCo plans price increases for Doritos, Ruffles, SunChips and drinks after a weak North American quarter.

Food Manufacturing: McCain Foods is expanding in India, agreeing to buy Falcon Agrifriz Foods’ potato-processing business, including a new plant and links to more than 1,000 farms. Workforce: Canada’s food and beverage manufacturers will need about 173,000 hires by 2034, with operators and labourers making up more than half of demand; Ontario faces the biggest need. Trade: A U.S. ban on nearly $1 billion in Canadian imports, including alcoholic drinks and dairy, is expected to have a modest economic impact but adds to trade tensions. Restaurant Pressures: More than one-third of Ontario restaurants cite weaker consumer spending as a major business threat. MTY Group has ended its strategic review without a sale and plans to return capital to shareholders. Costs: PepsiCo plans price increases on snacks and drinks after weak North American demand, while rising diesel costs could put further pressure on food prices.

Trade Tensions: A U.S. ban covering nearly $1 billion in Canadian imports, including alcohol and dairy, has taken effect, escalating a dispute that has already drawn tariffs from both sides. Workforce: Canada’s food and beverage manufacturers will need about 173,000 new workers by 2034, with Ontario facing the largest hiring demand. Protein Demand: Saskatchewan farmers are benefiting from consumers’ appetite for protein, with demand strong despite higher beef prices. Delivery Risks: A University of Victoria study finds financial pressure can push food couriers to keep working in dangerous weather, exposing concerns about safety in app-based work. Restaurant Pressure: More than one-third of Ontario restaurants say weaker consumer spending is their biggest business threat; MTY Group has ended its strategic review without a sale and plans to return capital to shareholders. Food Inflation: Experts warn rising diesel costs could add to food price pressures this fall.

Restaurant Pressure: More than one-third of Ontario restaurants say weaker consumer spending is their top business threat. Industry Moves: MTY ended its strategic review, raised its dividend 35% after reporting third-quarter results and is turning its focus inward, with possible brand sales. Skip and Instacart are partnering to expand delivery services across Canada. Food Costs: PepsiCo plans price hikes on Doritos, Ruffles, SunChips and drinks as North American sales lag; higher diesel prices could also push food costs up this fall. Farm and Supply: Canadian farmland values rose 3.8% in the first half of 2026. FCC says the food and beverage sector is holding up despite trade and cost pressures, while Canadians’ trust in the food system persists amid growing uncertainty.

Restaurant Pressures: More than one-third of Ontario restaurants cite softer consumer spending as their biggest business threat, while Atlantic Canadian hospitality workers say a tipping downturn is squeezing incomes. Industry Moves: MTY Group has ended its strategic review and raised its dividend 35%; reports say the brand-buying chain may sell some banners as it refocuses. Costs: PepsiCo plans price hikes for snacks and drinks after a weak North American quarter, while rising diesel costs could add to food inflation this fall. Delivery: Skip and Instacart are expanding their Canadian partnership, widening delivery options for shoppers. Food-System Outlook: FCC says the sector is holding up despite trade and cost pressures, even as Canadians’ confidence in the food system shows signs of uncertainty. Restaurant Recognition: Vancouver’s AnnaLena has earned the city’s first two Michelin stars.

Restaurant Pressures: More than one-third of Ontario restaurants say weaker consumer spending is a top business threat, while 56% cite rising food and beverage costs. MTY’s Next Moves: The Montreal-based chain owner has ended its strategic review without pursuing a sale of the company. It plans to assess its 80-plus brands, close corporate locations and focus on franchising; CEO Eric Lefebvre says weaker performers may be considered for sale. Price Hikes: PepsiCo plans single-digit price increases on snacks including Doritos, Ruffles and SunChips, citing higher fuel, aluminum and commodity costs amid soft North American demand. Kitchen Careers: Some leading Ottawa chefs are leaving high-profile restaurant jobs for better work-life balance, highlighting retention challenges across the sector.

Restaurant Costs: More than one-third of Ontario restaurants say weaker consumer spending is a top business threat, while 56% point to rising food and beverage costs. MTY’s Reset: Montreal-based MTY Group has ended its strategic review without pursuing a sale of the company, but may sell brands that lack growth plans; it is also shifting toward franchising and closing corporate locations. Food Inflation: Experts warn rising diesel prices could push food costs higher this fall. Grocery and Delivery: Skip and Instacart are expanding their delivery partnership across Canada. Chain Expansion: Olive Garden is opening a new Ontario restaurant in Ajax as it continues its return to the province.