Canadians Boycotting American Grocery Products In Response To Tariffs: Major CPGs Company Stocks Decline, On Average

Introduction

Canada’s trade war with the U.S. has resulted in:

Canadian supermarket chains:

• putting up maple leaf tags on shelves,
• shifting their product mix,
• highlighting local items,

and shoppers:

• forgoing their preferred products and/or
• boycotting U.S.-made products entirely regardless of availability or price

to support domestic companies and, according to a survey by Spring Financial that found that 80% of Canadians are making a conscious effort to buy more Canadian-made products. That being said, many shoppers said they don’t mind buying products made in Canada by American companies because they still feel they’re supporting Canadian jobs and the domestic economy.

For many, it’s Trump’s comments about taking over Canada that prompted the change while, for others, it is a concern about food safety with the cuts to the Food and Drug Administration in the U.S., which oversees the safety of food and other products.

Conclusion

This boycott of American grocery products probably won’t have much of an affect on the stock prices of the major American packaged food manufactures/processors who export to Canada as it is estimated that it accounts for only about 10% of a CPG (grocery) company’s total revenue (most American CPG companies don’t break out % revenue by country} but it serves as an “Elbows UP’ expression of Canadian patriotism.

Below is a list of 8 of the major U.S CPGs companies and their stock price changes, in ascending order, since the end of February, when the Trump tariffs were first applied:

1. Campbell Soup (CPB): DOWN 8.5%
   • Soups
2. General Mills (GIS): DOWN 7.5%
   • Cereals
3. McCormick (MKC): DOWN 7.2%
   • Spices
4. Kraft Heinz (KHC): DOWN 5.2%
   • Assorted
5. Tyson (TSN): DOWN 0.1%
   • Meats
6. Kellanova (K): DOWN 0.1%
   • Cereals
7. Hormel (HRL): UP 4.4%
   • Duncan Hines
8. JM Smucker (SJM): UP 5.2%
   • Jams

On average, the above CPGs companies’ stock prices are DOWN 1.8% since the end of February.

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