French’s ‘cannibalizing’ PC ketchup, unofficial Loblaw memo alleged

TORONTO• A leaked internal memo sent to some Loblaw employees said the grocery chain decided to stop stocking French’s ketchup because it was “cannibalizing” sales of its in- house President’s Choice variety.

Loblaw confirmed the memo’s existence but said it wasn’t an official one.

“We are in the process of delisting French’s ketchup because it is cannibalizing the sales of PC ketchup and has had little impact to Heinz ketchup,” reads the memo, which was addressed to grocery managers and retailers. Loblaw described the sender as a mid-level employee.

“The memo was unofficial, misinformed and sent by a staff member prior to ( Tuesday’s) decision to restock French’s ketchup,” Kevin Groh, vice- president of corporate affairs and communication, said Wednesday in a statement.

“Customer preference was the single reason the product was removed from our shelves, and the single reason it is back.”

Loblaw announced Tuesday it was reversing its decision to discontinue selling French’s ketchup following a social media outcry.

The ketchup became an Internet darling after a man’s Facebook post lauded the U. S.- based company for using 100- per- cent Canadian-grown tomatoes.

French’s uses tomatoes processed at the former H. J. Heinz Co. plant in Leamington, Ont. Heinz, which is based in Pittsburgh, closed the plant in 2014, throwing 740 employees out of work. Highbury Canco, a consortium of three investors, bought the plant and restarted production on a smaller scale.

The memo also took issue with the notion that French’s ketchup is a Canadian-made product. It said the ketchup contains Canadian- grown tomatoes, but is made in the United States.

However, a spokesperson for French’s said the ketchup it sells in Canada is produced in both Canada and the U.S.

Lob law’ s President’ s Choice ketchup, on the other hand, sources its tomatoes from California, but is produced in Canada.

“If we truly want to support Canadian, we must rally behind PC ketchup since it is made in Canada,” the memo said.