With Canada becoming one of the chocolate capitals of the world, sugar producers are racing to boost production.
Driving the news: Vancouver-based Rogers Sugar is investing $300 million to expand its sugar refinement facility in Montréal, part of a push to boost its output of the sweet stuff by 20%.
- The investment follows similar moves by competitors like Redpath Sugar and Sucro Can Sourcing, the latter of which is spending $135 million to build Canada’s largest sugar refinery.
Why it matters: In 2023, Canada exported more chocolate products than any other country in the world. Because of strict rules in the U.S. that limit raw sugar imports, more chocolate and candy companies are now setting up shop and expanding production in Canada.
- Hershey just bought back its old chocolate factory in Ontario, U.S. chocolate maker Blommer Chocolate is expanding its Ontario site, and snack giant Mondelez International has invested US$250 million to boost its manufacturing in the province.
Bottom line: As the country’s role in the sweets biz grows, the pressure is on Canadian producers to pump out more sugar. High demand and supply disruptions, like a 2023 strike, have led to shortages that left businesses paying upwards of double the standard price for sugar.—LA