Canadian boycott of US products pushes grocers to adapt, explore new supply sources

TORONTO, Sept 12 (Reuters) - A growing consumer push to buy Canadian and boycott U.S. products is reshaping supermarket shelves in Canada, forcing grocers to improve country-of-origin labeling and secure new sources of supply.

In Ontario, the president of independent grocer Vince's Market, Giancarlo Trimarchi, turned to Facebook to show customers that most produce on the shelves of his ‌stores is Canadian after receiving angry emails and comments about the grocer stocking U.S. produce.

A bitter trade war between the United States and Canada has made consumers more conscious of where their ‌dollars go.

"Buy Canadian" movements started last year after U.S. President Donald Trump imposed tariffs on Canadian goods. They have intensified in recent weeks after trade talks broke down and Trump signed an executive order to change the name of Lake Ontario to Lake America.

"It is ​a lot more aggressive this time around than last year," Trimarchi said in an interview.

Trump told reporters in Dublin on Saturday that Canada is eager to reach a trade deal with the United States and that an agreement could come "fairly soon," while repeating his complaints that Canada has treated U.S. farmers unfairly and should remove tariffs.

Trimarchi's four stores, spread across the Greater Toronto Area, now have about 90% Canadian produce. Trimarchi is now sourcing strawberries from Quebec instead of the United States and said he has cut his advertising budget as the changes have pressured operating costs.

"We were always put in a position where you had to balance quality versus price. ‌Now it's quality versus price versus country of origin," Trimarchi said.

Loblaw Cos, ⁠Canada's largest food retailer, in August brought back large signs featuring a maple leaf in its produce and fresh-food sections after a brief hiatus to flag the Canadian origins of products. Loblaw also reintroduced a "T" tag to inform customers which products are affected by tariffs and make Canadian products easier to identify.

Metro, the country's third-largest ⁠grocer, said it would continue to prioritize local Canadian products in the current context.

"There has been a permanent change in the Canadian psyche," said Gary Sands, senior vice president of public policy and advocacy for the Canadian Federation of Independent Grocers.

Canada is the world's fifth-largest importer of fresh vegetables by value. The United States is still the biggest supplier of fresh produce, accounting for more than half of the imports, followed by Mexico.