While Buy Canadian bump fades for many businesses, it's going strong among some industries
Sales of the locally-made serums and creams from The Cure Skincare, which she founded in Toronto five years ago, saw 10- to 20-per-cent growth between March and April – shortly after U.S. president Donald Trump threatened tariffs and started advocating for Canada to become the 51st state.
Ms. Goel said customers seemed to immediately become more intentional about where they were spending their money, but their resolve has tapered off over time.
'I'd be lying if I said it's always consistent – the pressure to survive as a small business right now is real. Sometimes price and convenience still win.'
Ms. Goel is one of many Canadian business owners who told The Globe and Mail that enthusiasm for buying Canadian has waned. But others in the grocery, food and wholesale sectors say the momentum continues, with some industries showing signs of a lasting shift.
Data published last week by the Canadian Federation of Independent Business found that roughly four in 10 small businesses it surveyed have seen increased sales of Canadian or locally made products since the start of the trade war.
Canadian clothing and sock brand OkayOk reported a 60-per-cent spike in wholesale transactions so far this year, according to founder and designer Adrienne Butikofer. She attributed the success to retailers seeking out more 'made in Canada' products for their lineups.
'We definitely felt like we were in the right place at the right time,' she said, adding that their business also saw more moderate growth on the in-store customer side.
Grocery is another sector still benefitting from the Buy Canadian buzz.
'All the feedback I am getting from my members across the country is that the Buy Canadian upsurge has not dissipated – it's still going strong,' said Gary Sands, vice-president of government relations at Canadian Federation of Independent Grocers.
Konstantyn Kopystynski, co-founder of YVR Cookie Corp. in B.C., said his business has seen a roughly 25-per-cent increase to sales of signature products such as their Cookie Crisps on the wholesale side – products sold on grocery store shelves.
I tried to Buy Canadian with my grocery list. Here's what it cost me
The trend toward Canadian sourcing among grocers shows no signs of stopping, according to Peter Chapman, founder of consulting firm SKUFood and a former Loblaw Companies Ltd executive.
Many retailers have shifted sourcing of fresh U.S. produce, such as lemons and berries, to countries such as Morocco and South Africa, he said.
In June, the latest quarterly earnings release from Empire Company Limited, the parent company of Sobeys Inc., showed that the grocery chain's annual sales related to goods sourced from the United States continued to decline, though they are still hovering close to the previous quarter at 12 per cent.
Even U.S. brands are joining the bandwagon. In Canada, Heinz has heavily promoted Canadian production and employees in its advertising, as has Frito-Lay, which appears to have tweaked some packaging design to downplay its U.S. connection, according to Mr. Chapman.
The food-service industry, which takes longer to adapt owing to menu-planning cycles, is only now catching up to the Buy Canadian fervour. McDonald's is a prime example, said Mr. Chapman.
'Seventy-five per cent of their rotating sign board had a message about Canadian products,' he said.
Travel to the U.S. has continued to fall for the fifth straight month, with return trips from the United States by automobile declining 38.1 per cent year-over-year in May, dropping even further than the 35.2-per-cent decline in April, according to Statistics Canada.
The national data bureau found that policies to stop the sale of U.S. alcohol in Canada have also led to a 94-per-cent decline in American wine imports into the country in April.
A June report by London-based beverage alcohol market analysts IWSR found that 69 per cent of Canadian drinkers have not only stopped buying U.S. alcohol, but also don't plan to buy it again.
The Buy Canadian sentiment has fallen off, though, where the price differentials between Canadian and American products are wider and where Canadian substitutes are not as easily accessible.
'Consumers who are under economic stress will choose affordability and lower-priced products even if they would rather buy Canadian,' said Michael Aloisio, a management professor at Western University.
Still, Mr. Aloisio said he doesn't think the 'Buy Canadian' movement will just go away altogether, with the COVID-19 pandemic serving as a reference point.
The Big Guide to Canadian Shopping
'Regulations and restrictions there forced pretty significant changes,' he said. 'Not all of those changes survived … but when they were compatible with consumer behaviours and aligned with consumer preferences, some did.'
One example was fast-food giant McDonald's shrinking its dine-in spaces in response to consumers favouring drive-thru and takeout, he said.
In February, Canadian personal care brand Green Beaver's online sales surged more than 400 per cent, said Alain Ménard, the company's president and co-founder. This growth has since tapered to a 200-per-cent bump – still an enormous jump from last year.
Mr. Sands of CFIG also noted that Mr. Trump remains the 'biggest promoter' of Canadian products.
'Every time Donald Trump says something offensive about Canada, which seems to be fairly regularly, that helps to keep the motivation to buy Canadian strong.'
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