As both the United States and Canada threaten to impose tariffs on a variety of imported goods, many Canadian consumers are preparing to support local, and many advertisers are preparing to highlight their product's Canadian roots. To help you prepare, this two-part series explores key considerations when promoting your products as being from this side of the border.

In Made in Canada, eh? How to advertise Canadian products amid trade tensions, we discussed key legal rules as they relate to origin claims for non-food products. Now it's time to dig into specific considerations that apply for food or beverage products.

"Product of Canada" and "Made in Canada" food and beverage claims

The Competition Bureau has set out guidelines regarding the claims that can be made about a product originating in Canada. While the Competition Bureau is responsible for enforcing point of origin claims as they relate to non-food products, the Canadian Food Inspection Agency ("CFIA") enforces claims as it relates to food products sold in Canada. As a result, the CFIA has created its own guidelines for the use of "Made in Canada" and "Product of Canada" claims in the labelling and advertising of food products

The CFIA guidelines apply to the Canadian content and production or manufacturing of the food product itself, and not the packaging. Therefore, products may be eligible to use the claims noted below, even where the packaging is not made in Canada, and the packaging materials are sourced from outside Canada.

"Product of Canada" and "100% Canadian" claims

A "Product of Canada" claim should be reserved for products that are made from all or virtually all "major ingredients" that are Canadian in origin. In other words, all significant ingredients in a food product must be Canadian in origin and non-Canadian material must be negligible to make this claim.

Products of Canada may include non-Canadian ingredients such as spices, food additives, vitamins, minerals, flavouring preparations or products that are not grown in Canada (e.g. oranges, cane sugar and coffee), provided the non-Canadian products are only used in minor amounts as compared to the overall product. Typically, very little or minor is considered to be less than two per cent of the total product.

In addition to the ingredients originating from Canada, to make this type of claim, all—or virtually all— processing and labour used to make the food product must also be Canadian.

A vague "Canadian" claim, or similar representation, is considered to be an implied "Product of Canada" claim and therefore must meet the criteria outlined above.

If a product is made using only Canadian ingredients, and the labour and processing is Canadian, advertisers may also use a "100% Canadian" claim. However, when this claim is used on a label, the food or ingredient to which the claim applies must be entirely Canadian rather than "all or virtually all" Canadian.

"Made In Canada"

While "Product of Canada" and "100% Canadian" claims indicate that "all or virtually all" of a product is Canadian, "Made in Canada" claims can be used on a food product even if the ingredients are primarily from other countries, provided that:

  1. The last substantial transformation of the product occurred in Canada.
  2. The claim is accompanied by a qualifying statement.

According to the CFIA, a substantial transformation occurs:

"[W]hen a food product undergoes processing which changes its nature and becomes a new product bearing a new name commonly understood by the consumer."

For example, if flour, oatmeal, shortening and sugar are imported into Canada to manufacture cookies, the substantial transformation will be viewed as occurring in Canada as this is where the ingredients were processed to create a new product bearing a new name. On the other hand, if frozen cookie dough is imported from the United States into Canada where it is thawed and placed into new packaging, it is unlikely that this would qualify as a "substantial transformation."

Even where the last substantial transformation of the food product occurred in Canada, all "Made in Canada" claims must be accompanied by a qualifying statement. This statement signals to a consumer what is and is not Canadian about the food product. There are two standard qualifying statements that are used to accompany a "Made in Canada" claim for a food product:

  1. When a food is made exclusively from ingredients that are sourced from outside of Canada, the label or advertisement should state "Made in Canada from imported ingredients."
  2. When a food is made from Canadian and non-Canadian ingredients, the label or advertisement should state "Made in Canada from domestic and imported ingredients." It is important to note that the CFIA does not consider "Made in Canada from domestic and/or imported ingredients" as an acceptable claim as it does not clearly inform the consumer about the Canadian content of the food product.

Other types of acceptable claims

Although the CFIA encourages "Product of Canada" and the qualified "Made in Canada" claims to ensure clarity for the consumer and to enhance their ability to identify Canadian made foods, other more specific statements or claims that describe the Canadian value added may be used without further qualification, so long as they are truthful and not misleading for consumers.

Other considerations and key takeaways

It is important to note that there are considerations that apply to both food and non-food products. While this article focuses only on validating key point-of-origin claims for food products, advertisers should also refer to Made in Canada, eh? How to advertise Canadian products amid trade tensions before incorporating the Canadian flag, a Canadian symbol or famous Canadian landmark.

Other considerations may apply, make sure to reach out to your legal counsel if you are unsure in your advertising efforts. We know that Canadians are going to be paying close attention to these claims, which highlights the importance of getting it right!