Costly US Sugar Tariffs Drive Candy Makers Over the Border to Canada
Sweets production has expanded in Canada as companies look to supply sugar-hungry North American households while avoiding US protectionist policies.
Last fall, Hershey Co. repurchased a factory outside Ottawa that it closed more than a decade earlier. Blommer Chocolate Co., a US rival, is expanding in Ontario while it shutters an 85-year-old Chicago plant. Oreo-maker Mondelez International Inc. says it has invested $250 million in Ontario manufacturing facilities just in the last few years.
Although Canada is far too cold to grow enough sugar for its candy industry, it has managed to attract hundreds of millions of dollars of investment in recent years to expand capacity. Some of that can be attributed to a rising population, but many in the industry say it’s the long-standing protectionist measures in place south of the border that are sweetening Canada’s appeal.