Empire Co. (TSE: EMP.A), the parent company of the Sobeys grocery store chain, is removing some signs and labels meant to highlight Canadian-made products.
The removal comes a year after major grocery store chains added maple leaves and other symbols to signal homegrown products amid a “buy Canadian” trend among consumers.
Empire said it will continue to stock local products but largely leave it up to customers to determine a product's place of origin.
The buy Canadian wave surged as U.S. President Donald Trump’s attacks on trade with Canada led to tariffs and economic uncertainty.
As consumers shunned American-made products, grocers added signs and labels to their shelves to indicate which products were made in Canada.
But in recent months, grocery executives have said that the buy Canadian trend is starting to wane as consumers focus more on price and less on country of origin.
Canadian shoppers continue to deal with soaring food prices. Statistics Canada recently reported that food inflation in February was up 5.4% from a year earlier.
And many economists are warning that food inflation could get worse in the coming months as the war in the Middle East puts more pressure on fuel, fertilizer and shipping costs.
At the same time, the Canadian Food Inspection Agency (CFIA) has begun investigating false labelling and advertising by retailers, including Empire Co.
The CFIA recently levied fines on grocery stores, including the Real Canadian Superstore, for “inaccurate and misleading origin claims.”
Empire’s stock has risen 2% in the last 12 months to trade at $49.44 per share in Toronto.
