While a lot of attention is being paid to U.S. efforts to repatriate firms that have a Canadian presence – such as the big three automakers – two large food manufacturers are betting big on existing operations.

Mars Canada announced a new $180 million set of upgrades to four Ontario-based manufacturing sites. Not to be outdone, Kraft Heinz Canada will be investing $250 million into its Montreal facility.

This money will go toward upgrading and modernizing plant systems at the Kraft Heinz Mont Royal facility, which employs more than 1,000 workers at the factory.

Overall, the food manufacturer, which makes such brands as Heinz Ketchup, Philadelphia Cream Cheese, Renée’s Dressing and Maxwell House, employs approximately 2,000 Canadians.

“This investment underscores our more than 120-year-old commitment to Canada and producing the foods Canadians love right here at home,” Simon Laroche, president of Kraft Heinz Canada, said in a release.

Massive facilities upgrades planned

At Mars, the funds will be allocated into the production lines of Mars snacking, pet nutrition, food and nutrition, and Royal Canin operations. More than $100 million will help upgrade packaging lines.

“These upgrades reflect our continued focus on advancing innovation, sustainability and workplace modernization, ensuring our business continues to thrive and contribute to Canada’s economic vitality for years to come,” Ellen Thompson, general manager, Mars snacking Canada said in a release.

The breakdown of the investments in Ontario include:

• Mars pet nutrition in Bolton will receive $86 million to enhance manufacturing capabilities and sustainable operations, resulting in a 50 per cent increase in production capacity.  The company will also spend $17 million to enhance production lines for Ben’s Original and other brands in the food and nutrition portfolio.
• Mars snacking in Newmarket will put $40 million into packaging line upgrades that are expected to deliver an increase of 25 per cent in overall production capacity. Annual energy savings from the transformation are forecast to be roughly 440,487 kilowatt hours per year.
• Royal Canin, a Mars pet food company in Guelph, is investing $39 million to modernize operations, resulting in a 12 per cent increase in production capacity.  

The money invested will also result in lower energy and water usage, according to the company. The company has invested almost $400 million into Canadian facilities since 2015.

Talks with Unilever; plans to split company both called off

For Kraft Heinz, the announcement comes as the company recently was involved in rumours surrounding a potential deal to combine Unilever’s food division with Kraft Heinz’s condiments business. However, those talks are now ended, according to the Financial Times.

The company also nixed a plan to split the company. The plan was originally announced last September but it was called off in February.

“Faced with the choice of continuing the separation and all the work that’s ​required there or shifting all resources against growing the business and the early opportunities that I saw, it became very compelling that we ⁠ought to pause the separation,” Steve Cahillane, CEO of Kraft Heinz said to Reuters.