McCormick Canada, the Canadian arm of Baltimore-area condiment and spice maker McCormick and Co., on Monday announced it had completed a “multi-million dollar expansion” at its London, Ont. plant to blend, bottle and package French’s ketchup.

Bottling of French’s ketchup began at the London plant last month, the company said Monday, but added that “full production ramps up this week.” An exact dollar figure wasn’t given for the cost of the expansion.

McCormick said it would continue to source 100 per cent of its tomatoes for French’s ketchup in Canada from the Leamington, Ont. area and would continue to offer the product in four varieties: original, garlic, low-sodium, and no-sugar-added.

By bringing its ketchup line to London, McCormick said it would be “deepening its local roots” and transitioning away from a “third-party Canadian supplier.” The French’s line has been packed in Canada by Toronto-based Select Food Products since 2016.

McCormick has operated at London since 1959, when it bought the Club House brand of spices and extracts, a business founded there in 1883 by Gorman, Dyson and Co.

The French’s brand, along with Frank’s RedHot and others, came to McCormick in 2017 when it bought the food business of British consumer health and hygiene firm Reckitt Benckiser for US$4.2 billion.

Shortly before that sale, the French’s brand had made a splash in Canada by promoting its use of tomatoes grown in the Leamington area and by bringing the product’s bottling to Toronto.

Ketchup provenance by then had become a sore spot among some Canadian consumers, after Kraft Heinz shed its Leamington tomato processing plant in 2014 and began bottling its Heinz ketchup for the Canadian market at plants in the U.S.

Kraft Heinz sold the Leamington plant in 2015 to an Ontario consortium, Highbury Canco, and still sources some tomato products from the latter company. Kraft Heinz also announced last November it would resume packing Heinz ketchup in Canada for the Canadian market, this time at its plant in Montreal. –– Glacier FarmMedia Network

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The U.S.-based food processing giant and the Quebec government on Nov. 17 announced the expansion plan for the company’s Mont Royal plant, which today makes products such as KD Mac + Cheese, Philadelphia cream cheese, Renee’s dressings and Kraft peanut butter.

The new ketchup line is expected to start operating in late summer of 2021 and produce over 100 million pounds of Heinz ketchup for the Canadian market within its first two years, “as production ramps up.”

The expansion is expected to add about 30 jobs at Mont Royal and help maintain about 750 more, provincial Transport Minister Chantal Rouleau said in a release from investment agency Investissement Quebec International.

Heinz ketchup sold in Canada has been made at plants in the U.S. since 2014, shortly after the company said it would shut its processing plant at Leamington, Ont., southeast of Windsor. Kraft Heinz reached a deal the following summer to sell that plant to a consortium of Ontario investors operating as Highbury Canco.

Kraft Heinz today bills itself as Highbury Canco’s largest customer, using Leamington-grown tomatoes in Heinz tomato juice and canned beans and Classico pasta sauces, among other non-ketchup goods. Kraft Heinz also still runs a tomato seed operation out of Leamington, supplying most processing-grade Heinz tomato seeds used on farms in Eastern Canada and the eastern U.S.

But the provenance of Heinz ketchup sold in Canada since 2014 has been a sore spot for some consumers, who vowed on social media to seek out rival ketchups made at plants within Canada.

“Kraft Heinz Canada is pleased to partner with the Quebec government on this investment in bringing ketchup production back to Canada from the U.S.,” Bruno Keller, president for Kraft Heinz Canada, said Nov. 17 in the company’s release.

“Through our partnership with Quebec and increased efficiencies at our Mont Royal facility, it became possible to return this iconic product back to Canada for Canadians at this time.”

Other media outlets have quoted company representatives as saying the tomatoes feeding the Montreal plant will at first continue to come from U.S. farms with which the company has contracts, though more of those tomatoes may be sourced from Canada in the future.

The Montreal plant, Keller said, “has been an important part of the Quebec economy for over six decades, and we are delighted to be able to help feed more Canadians every day thanks to investments like this one.”

The Quebec government’s hand in the project is a $2 million loan from Investissement Quebec’s ESSOR program, which offers loans, loan guarantees or financial assistance to”substantial long-term development projects” carried out within Quebec involving eligible expenditures of at least $100,000.

“With this new production line, (Kraft Heinz) is taking concrete steps to ramp up local production and continue its growth here,” Stephane Paquet, CEO of Montreal economic development agency Montreal International, said in Investissement Quebec’s release.

“This decision is proof positive that foreign subsidies too have a role to play in promoting and expanding local sourcing.”

Heinz’s relationship with Canada dates back to 1909, when Henry Heinz picked Leamington as “the most suitable site” for a pickle packing plant, the first expansion of his company’s operations outside the U.S. — Glacier FarmMedia Network

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Ontario, Canada’s most populous province, issued guidelines on Wednesday allowing some migrant farm workers back to work as farms battle outbreaks that have killed three people and infected hundreds more.

Federal chief public health officer Theresa Tam said protocols that separate COVID-19-positive and -negative workers must be stringent, and workers’ health must be considered.

“People can begin to have symptoms anytime during that incubation period and potentially can get sick fairly fast,” she said. “You need to make sure that you screen them for symptoms and enable them to stop working if they’re not feeling well.”

Canadian farmers rely on some 60,000 temporary foreign workers, predominantly from Latin America and the Caribbean. Many live in crowded bunkhouses where the virus can spread quickly.

Sudeshna Nambiar, chief operating officer of Lakeside Produce, a Leamington, Ont. greenhouse operation, welcomed the new policy. She said each employee is responsible for 23 rows in the greenhouse, allowing for ample distancing.

Lakeside had 13 infections among workers in the spring, but all have recovered.

“This is the new normal. This is how we have to operate, with more hygiene and social distancing,” she said.

Srinivas Murthy, an infectious disease specialist and professor at the University of British Columbia, said the virus is likely to spread if workers return.

On Wednesday, the Ontario Federation of Agriculture said workers will not be forced to work.

“This isn’t a community that has a lot of flexibility in their lives,” said Murthy. “Most individuals are not in a place where they can make a free and fair choice.”

‘Unique challenges’

The Ontario government said Wednesday its public health guidance allows COVID-19-positive asymptomatic workers to keep working as long as they “follow the public health measures in their workplace to minimize the risk of transmission to others.”

Local health officials “will assist with interpreting test results and developing a plan that, first and foremost, ensures essential workers in the sector are able to return to work safely,” the province said.

Ontario’s current ag sector outbreaks are centred on the Windsor and Essex County area, in the province’s southwest.

As of Thursday morning, the county health unit reported six workplace outbreaks, all in the ag sector, with four in the Leamington area and two in the Kingsville area.

The province said late Wednesday it would allow Windsor-Essex to enter the second stage of the province’s pandemic reopening plan starting Thursday, behind all other regions of the province, which reopened between June 12 and 24.

Stage Two allows for reopening of malls, restaurants, bars, beaches, parks, recreational facilities, community centres and various personal services.

The exceptions from Stage Two in Windsor-Essex are Leamington and Kingsville, which “are being held back due to the higher transmission rates in the local agriculture and agri-food sector,” the province said Wednesday.

Outbreaks in the ag and agrifood sectors “pose unique challenges that require a targeted and collaborative response,” the province said, adding it would work with federal and local authorities on a “three-point plan to support Leamington and Kingsville to move into Stage Two as soon as it is safe to do so.”

COVID-19 testing will be provided and expanded on work sites in those areas, the province said.

— Reporting for Reuters by Kelsey Johnson in Ottawa and Allison Martell in Toronto; additional reporting by Rod Nickel in Winnipeg. Includes files from Glacier FarmMedia Network staff.

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Mucci Farms, based at Kingsville, just west of Leamington, announced Wednesday it has bought a controlling stake in Leamington-based Orangeline Farms, the grower of Zing Healthy Foods greenhouse peppers.

Financial details weren’t disclosed in Mucci’s release Wednesday, but CBC in Windsor reported Friday that Mucci paid about $30 million for a 75 per cent stake in Orangeline.

Duffy Kniaziew, whose family founded Orangeline in 2000, keeps the remaining 25 per cent share, CBC said.

The deal for Orangeline comes with a 32-acre greenhouse plus a warehouse and 100 acres of additional land, Mucci Farms CEO Bert Mucci said in the company’s release.

“We also have plans in place to build on the additional land that was received as part of the agreement,” he said.

“It’s an exciting time for the company as we continue our aggressive expansion plans to increase our local and regional production,” he added. “Consumers are demanding more local production, and we’re listening.”

Mucci owns and operates 250 acres of tomato, pepper, cucumber, lettuce and strawberry greenhouses in Canada and the U.S. and works also with North American “partner-growers” covering another 1,500 acres.

Mucci said Wednesday it will continue to use Orangeline’s Zing brand “for the foreseeable future” since the brand has “quietly established itself among retailers and consumers.”

“Duffy and his team have done a great job with the brand and it’s familiar in our region, so we’re not looking to make any dramatic changes at the moment,” Mucci marketing director Emily Murracas said in Wednesday’s release.

“In searching for growth opportunities for both Orangeline’s staff and our ever loyal customers, the chance to partner with a world class organization like Mucci Farms was an easy decision to make,” Kniaziew said in Mucci’s release.

Mucci on Wednesday also said it has bought another 15 acres adjacent to the 60-acre tomato greenhouse operation it started developing in 2017 at Huron, Ohio, about 80 km west of Cleveland on Lake Erie.

“The first 24-acre phase is in its second season of harvesting, and we’ll be building two more identical ranges. Phase two construction is already underway,” Bert Mucci said.

The Leamington region, according to Mucci, has one of the warmest climates in Canada outside British Columbia’s lower mainland.

The region is also home to the largest concentration of greenhouses in North America, hosting most of Ontario’s 3,000-odd acres of crop production under glass, the company said. — Glacier FarmMedia Network

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Several companies are looking to partner with or buy pot firms to explore opportunities in the Canadian cannabis sector after the country legalized recreational use of marijuana in October last year.

Green Growth said it would offer 1.5714 shares for each share in Leamington, Ont.-based Aphria, representing a premium of about 25 per cent to Aphria’s closing price on the last trading day before its first hostile bid.

Based on Green Growth’s close on Tuesday, the offer values Aphria shares at about $9.40 each, compared with its closing price of $9.43.

Aphria said separately the terms of Green Growth’s latest offer were “substantially identical” to the unsolicited proposal on Dec. 27, and urged shareholders to take no action until its board decides on the matter.

Aphria said an independent committee of its board will consider Green Growth’s offer before making any formal recommendation.

In December, Green Growth offered to buy Aphria, which rejected the bid saying it “significantly” undervalued the company.

Green Growth had also disclosed at the time that it acquired a “meaningful toehold position” in Aphria, but did not reveal the size of the stake.

A potential merger will create the only large-scale cannabis company to bridge U.S. and Canadian markets, Green Growth said as it called on Aphria shareholders to take the offer.

Aphria’s Canadian supply and Green Growth’s U.S. footprint would position the combined company to “capitalize on the massive growth opportunities in North America and beyond,” said Peter Horvath, who was formally appointed as CEO of Green Growth on Tuesday.

Horvath earlier served as the CEO of Green Growth’s operating subsidiary.

Green Growth said the offer would commence on Wednesday and Aphria shareholders will have time until 5 p.m. ET on May 9 to accept it.

— Reporting for Reuters by Ishita Chigilli Palli and Ismail Shakil in Bangalore.

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The details of Richmond, Virginia-based Altria’s investment are still being finalized, though it has expressed interest in buying a minority stake in Aphria with the intention of eventually holding a majority, the report said.

Several consumer companies are looking to strike deals with Canada’s cannabis companies as sales of recreational marijuana is legalized in Canada starting Oct. 17.

Altria and Aphria were not immediately available for comment.

Without naming names, Leamington, Ont.-based Aphria said in a statement Wednesday afternoon it “engages in discussions with potential strategic partners and/or investors from time to time.”

However, it added, “there is no agreement, understanding or arrangement in place with a potential investor at this time.”

Aphria, which produces medical marijuana at its Leamington greenhouse facility, last month rolled out a portfolio of “adult-use” brands.

It also sold off the last of its assets in the U.S. cannabis sector last month and said it would focus on “other more immediate capital markets and strategic opportunities in Canada and in other legal markets,” given “the current federal legal framework in the United States.”

— Reporting by Debroop Roy in Bangalore. Includes files from Glacier FarmMedia Network staff.

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Highline Mushrooms of Leamington, Ont. announced Wednesday it will buy Prairie Mushrooms of Langley, B.C. for an undisclosed sum.

Highline, which has operated since 1961 and was taken over in 2016 by Irish tropical fruit marketing firm Fyffes, expanded later in 2016 beyond its five plants in Ontario and Quebec when it bought another B.C. firm, All Seasons Mushrooms, with three sites in B.C. and Alberta.

Prairie Mushrooms, in business since 1963, operates at five sites in B.C. and sells its products into B.C., Alberta and the U.S. Pacific Northwest.

Highline, which has so far operated in Western Canada using the All Seasons name, said Wednesday it will bring all its combined businesses under the Highline name once the Prairie Mushrooms deal closes.

Highline said the deal “further strengthens (its) leading western Canadian operations and enhances its position as both the largest organic mushroom grower and the only coast-to-coast mushroom grower in Canada.”

Duke Tran, president and founding shareholder of Prairie Mushrooms, will lead Highline’s business in Western Canada after the deal closes.

“Working with Highline allows us to combine our business with the clear leader in terms of technical expertise and quality levels in Canada and together we will be able to deliver exceptional, products and service to our customers,” Tran said in Highline’s release Wednesday.

Highline CEO Aaron Hamer described Prairie Mushrooms as “an excellent fit with our existing mushroom business in Western Canada given its trusted position with key customers and its significant organic growing capacity.” –– AGCanada.com Network

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Two weeks ago, the reports from the Ontario Potato Board were full of warm temperatures and dry soils, and growers, particularly around Leamington and Delhi, took full advantage. One farmer in the Delhi area managed to plant red potatoes under sunny skies, a temperature of 16 C and dry soil conditions on April 18.

During the first week of May, however, a special weather statement from Environment Canada in effect for all of southern Ontario will likely put a hold on planting — of any crop — for at least the next week.

Some parts of the region are forecast to receive between 40 and 70 mm of precipitation from Thursday to Sunday, which could exacerbate an already-saturated soil base across many parts of the province.

Still, there are some positive signs on planting, at least in the potato sector. Reports from the Ontario Potato Board indicate the 2017 processing potato crop has been planted around Leamington. On one farm in that corner of Essex County, Dakota Pearls planted on April 12 have emerged and are reportedly healthy looking.

In the Delhi area, one farmer cited rainfall totals of three inches on his farm during the last week, and though he doesn’t believe there’ll be any planting done in that area for the next week, he estimates between 30 and 40 per cent of the crop there has been planted.

As for other parts of the province, fields in the Alliston area that were fall-fumigated have standing water between the rows, reported on Monday. One farmer near Bowmanville, east of Toronto is waiting for dry weather before he can get back to planting.

In all, there have been about 1,800 acres of potatoes planted in Ontario.

— Ralph Pearce is a field editor for Country Guide at St. Marys, Ont. Follow him at @arpee_AG on Twitter.

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According to Eugenia Banks, a special consultant for the Ontario Potato Board, potato planting began Wednesday morning, ahead of a weather system that’s forecast to dump up to 40 mm of rain by Friday.

According to the board, potato planting in the province typically runs in April in May for harvest starting in July and running through the fall.

Ontario’s growers plant about 38,000 acres per year on average to potatoes, with an average crop value around $100 million, the board said, noting potatoes are the province’s largest fresh vegetable crop and second to tomatoes among processing crops.

Banks also announced that with planting underway, the board is promoting its 2017 Potato Scouts Integrated Pest Management (IPM) training session set for Tuesday, May 30. The training is free of charge with handouts provided to all attendees.

The training session runs from 9:30 a.m. to 3 p.m. at the board office, at 485 Washington St. in Elora, north of Guelph. Banks will be the day’s instructor with Vanessa Currie, a potato specialist with the University of Guelph, as a guest speaker.

Growers seeking more information or wanting to register can contact Banks by e-mail.

— Ralph Pearce is a field editor for Country Guide at St. Marys, Ont. Follow him at @arpee_AG on Twitter.

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Highline Produce announced Thursday it has bought Langley, B.C.-based organic mushroom producer All Seasons Mushrooms.

According to Irish tropical fruit marketing giant Fyffes, which has owned Highline since April, it will pay $59.1 million for all equity in All Seasons and to refinance its debt.

All Seasons grows about 8.6 million kg of mushrooms a year, operating two Vancouver-area facilities, at Abbotsford and Langley, and a third at Crossfield, Alta., about 35 km north of Calgary. It bills itself as the biggest organic mushroom producer in the West.

Leamington, Ont.-based Highline, meanwhile, bills itself as the largest operator in Canada’s mushroom industry, marketing about 26.3 million kg of mushrooms a year, and as the world’s largest grower of organic mushrooms.

Highline operates two plants at Leamington, southeast of Windsor, and one each at nearby Kingsville and at Wellington, Ont., south of Belleville, plus a distribution centre in Montreal. Fyffes described the two mushroom businesses’ geographic reach as “highly complementary.”

Highline and All Seasons, which together employ about 1,400 people, said Thursday their combined nine locations will all remain in operation with “business as usual for employees across Canada.”

Fyffes chairman David McCann said the two companies together will be “well placed to provide Canadian customers with a consistent supply of the highest quality mushrooms from coast to coast, while continuing to strategically supply U.S. customers with premium and organic mushrooms.”

All Seasons’ CEO Frank Moscone, who founded the company in 1997, described Highline as “a natural choice for All Seasons to partner with because we have a shared culture that recognizes the importance of our dedicated employees, customers and suppliers.”

Moscone will remain with the business after the acquisition, Fyffes said.

A Highline representative said Thursday there have been “no changes contemplated” to the branding of All Seasons’ product lines.

All Seasons markets to both the retail and foodservice sectors, with product lines including bulk and pre-packaged white, brown, Crimini and portabella mushrooms and “specialty” lines such as shiitake, oyster and enoki mushrooms.

The company produces on a short growing cycle, which it said allows it to eliminate the use of pesticides and maintain “Certified Organic” status.

Highline also bills itself as using “highly developed cropping techniques” to eliminate the use of pesticides and fungicides from its production of white, mini bella and portabella mushrooms. — AGCanada.com Network

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