An up-and-coming company’s Canadian expansion is giving ‘Big Sugar’ a run for its money.
What happened: Florida-based sugar producer Sucro will invest $135 million to build what could be Canada’s biggest sugar refinery, according to The Globe and Mail. The upstart aims to take on the country’s sugar duopoly, as demand for the sweet stuff grows.
- About 94% of all domestic sugar comes out of three refining operations in Toronto, Montréal, and Vancouver, all owned by sugar industry giants Redpath and Rogers.
- The new refinery — set to be built in Hamilton — will be 10 times larger than Sucro’s current plant, also in Hamilton, and is expected to begin shipping sugar by 2026.
Why it matters: A less concentrated sugar industry in Canada could alleviate some of the risks of supply shortages that food manufacturers are facing with the current just-in-time inventory, a problem that has led to inflated prices for Canadians during disruptions.
- Just a few months ago, a shortage in Western Canada left businesses paying upwards of double the standard price for a bag of sugar.
Zoom out: Experts say that by shoring up the sugar supply and giving manufacturers supply guarantees, Sucro’s new facility could have a domino effect by giving food manufacturers the assurances that they’ve been looking for to expand their businesses.—LA