During my time in this industry, I have never experienced a consumer shift in buying preferences as swift and dramatic as the one we see today. Consumers are comparing notes with each other in stores as they peer at country-of-origin labels. And they are active online.

Retailers have had a lot of challenges in the first quarter of 2025. They have changed a lot of sourcing to new markets, pivoting away from traditional U.S. markets because consumers’ buying decisions are influenced by the messages from Washington. They have had their hands full, so they might not have had time to review plans for the local season.

Pivots in the marketplace 

For suppliers, the big question is: are your plans for 2025 still relevant for your customers? You should confirm that the volumes, timing, package sizes and other factors are still right for the current environment. It is possible you cannot change many of these. That is important for your customer to know too. They do not always have an appreciation for your challenges to ‘find more’ or ‘dial back’ volume. 

Since the last growing season in Canada a lot has changed. Consumers have voted at the cash register and sent a message to retailers they do not want to support products produced in the U.S. When you visit the stores, you see citrus from South Africa, berries from Morocco and long-stem garlic from Egypt. This can result in different packages or sizes in categories. 

As we get into the berry season, retailers will be anxious to get Canadian product into their stores. In your discussions with customers, try to understand their perspective on volume. If they have been selling strawberries from the U.S. and consumer demand is down, will they be looking for more local berries this year? Canadian consumers will be more interested in local than ever. Locally-grown berries taste better. 

Consumers are sending a message that the perceived reputation for U.S.-based retailers is dropping. As reported in the April issue of Canadian Grocer, in the Reputation 2025 survey released by Leger, Costco was the top-ranked retailer with 79 per cent reporting that consumers have a good opinion of Costco while only 5 per cent gave a bad rating. The rest said they didn’t know enough—or anything at all—about the company. Costco’s overall score of 74 was top among retailers.

Since the start of 2025, the political environment has impacted reputation. Given the turmoil in the market, Leger went back to consumers in March and shared startling results in its article:  Costco leads in reputation, but tariffs beginning to sour Canadian’s stance on U.S. retailers. 

Costco has dropped by 11 points and Walmart has dropped 19 points. Whether consumers vote with their wallet will be determined. Suppliers do need to understand if volume is shifting from one retailer to another as consumer sentiment changes.

Be a resource for your customers

There continues to be a lot of volatility in the regulations whether it’s tariffs imposed by U.S. or counter- tariffs imposed by Canada. Do your best to remain up-to-date and learn from industry associations, your suppliers and anyone else you can. Share this information with your customers so they understand. Most category managers are responsible for multiple SKUs so any time you can help them with information you will improve your relationships.

Watch input costs carefully

In some categories, we are starting to see the impact of tariffs and counter tariffs on retail pricing. This can be directly related to the product or in packaging, ingredients or other inputs. Keep your customers informed about the changes you anticipate and the impact on your costs. After the period of food inflation we have endured, nobody wants to see higher prices again. 

Unfortunately, it is happening and will continue. A lot of packaging originates in China and moves through the U.S. With the escalations in tariffs between these two countries, there is a good chance your packaging could increase if you do not have it in your possession. Provide your customer with as much information as you can to ensure you get a fair price for your products.

Smooth transitions 

This year is probably more important than ever to know when your crop will be ready, given the changes your customers have put in place.

The supply chain for packaging is one area to stay close to. Given the volatility of tariffs, many people are leery of ordering too much or perhaps waiting and the costs continue to increase. If you do not have your packaging in your facility, make sure your suppliers have it on the way or in their possession. A great product ready for the customer, with no packaging is a bad spot to be. You will enhance your relationship with your customers if you can have a good transition to local products. 

Decide what is flexible

Prior to checking in with your customers, review what you really can change and what is not flexible. For example, if seed is ordered and there is no more or you have already planted, you do not have many options. If you had exported to the U.S. in the past and the tariffs are impacting you, there might be some extra volume you need to move.

In the past consumers have said they want more Canadian products. It was always a challenge to prove these opinions influenced their decision at the shelf. Now we really do see Canadian products being selected in place of similar products from the U.S. This should continue into the local produce season which could result in more demand for Canadian products.