Nestlé Canada is winding down its frozen meals and Delissio pizza businesses and will soon stop selling them entirely.
On Wednesday, the company announced the decision, citing a reinvestment strategy as the reason for the exit.
Nestlé will be able to focus on categories that “support long-term business growth” as a result of the cuts. Ice cream, coffee and beverages, confectionery, pet food, infant foods and supplements, health science products, food service, and water are examples. Delissio, Stouffer’s, Lean Cuisine, and Life Cuisine will be phased out over a six-month period.
According to the company, it is focusing on long-term business growth categories such as confectionery, coffee, ice cream, premium water, and pet food. Nestlé Canada President and CEO John Carmichael says the company’s decision will allow it to invest more in the categories it prioritizes.
Because the company does not manufacture these products in Canada, no manufacturing facilities will be impacted. Nestlé says it will work with its retail partners to get these products out of stores as quickly as possible.
Nestlé’s decision, according to Lenore Newman, director of the Food and Agriculture Institute at the University of the Fraser Valley in British Columbia, is part of a larger trend of manufacturers withdrawing from Canada and other markets due to increased shipping costs and stretched supply lines.
“[The frozen products] are manufactured in the United States and shipped north, and it appears that they are refocusing on products manufactured in the United States. It’s an interesting trend in that we’re seeing a slowing of food movement “She stated.
She cites a recent lettuce shortage in Canada, which occurred after a major producer in California experienced drought and a disease outbreak in its lettuce crops, resulting in lower exports and higher prices.
What Canadians think of this move by Nestle?
Many Canadians are not happy to see Delissio gone, others are afraid that this might be the start of affordable food disappearance.
“It’s not delivery …. it’s a problem”, “Nestle Canada to wind down frozen meals and pizza business including Delissio. Big gap for frozen foods.”
“The food professor” is onto something; it might be the smart move for Nestle to stop selling food that doesn’t bring in enough profit , but it is certainly not good news for Canadians.
“Your decision to stop producing your Delissio pizzas. Lean Cousine meals, in Canada is horrible”. “Katz” is obviously disappointed of this Nestle move and will be forced to change her shopping habit.
As supply chain uncertainties persist, many believe that Canada will likely see more product disruptions and, potentially, fewer specialty products imported.