If you’ve ever picked up a food product and noticed the label stating “Made in Canada,” “Product of Canada,” “Prepared in Canada,” or “Designed in Canada,” you may have wondered what these terms really mean. With growing concerns about food origins, quality, and ethical sourcing, it’s important to understand these distinctions. Canadian food labeling regulations help consumers make informed choices, but the differences between these terms can sometimes be subtle. Let’s break them down so you can shop with confidence.
Product of Canada
The “Product of Canada” claim is the strictest designation. In order for a food product to qualify for this label:
- At least 98% of the total direct costs of producing the item were incurred in Canada. So ingredients, labour, and assembly all had to be at least 98% Canadian.
This label is a strong indicator that nearly all the food content, as well as the production process, is domestic. For example, a bottle of maple syrup labeled “Product of Canada” means that the syrup comes from Canadian maple trees and has been processed and bottled within Canada.
Made in Canada
A product labeled “Made in Canada” means that:
- More than half, aka 51% or more, of total direct costs occurred in Canada but less than 98%.
- While not required, The Competition Bureau encourages companies to use more detailed descriptions in their label such as “Made in Canada with 70% Canadian content and 30% imported content.”
For example, if a granola bar is labeled “Made in Canada with imported ingredients,” it means that the product was manufactured in Canada, but some or most of the ingredients were sourced from other countries.
For both “Product of Canada” and “Made in Canada”, the product has to have undergone its “last substantial transformation” in Canada — for example, turning pasta, basil, and pine nuts into final frozen pesto meal.
Prepared in Canada
The “Prepared in Canada” label indicates a food was completely prepared in Canada, but there is no guarantee of the ingredients are Canadian.
- The food product was assembled, processed, or cooked in Canada.
- Ingredients may come from various sources, including imports.
An example of this is Heinz Ketchup, who still uses tomatoes from Canada but moved their factories to the US.
Designed in Canada
This term is less about food production and more about branding and product formulation. However, it is still seen on some products like Habitant Soup. If a product is labeled “Designed in Canada,” it usually means:
- The recipe or formula was created in Canada.
- The food might be manufactured in another country.
- Ingredients may be sourced globally.
This label is commonly seen on items like packaged snacks or supplements where a Canadian company developed the product but outsourced production to another country.
Why Do These Labels Matter?
Understanding these distinctions helps consumers make informed decisions based on their priorities, whether it’s supporting local farmers, ensuring high food safety standards, or reducing their carbon footprint by buying locally produced goods.
- If you prioritize buying Canadian-grown food and labour, look for the “Product of Canada” label.
- If your focus is on supporting the Canadian economy through food processing and jobs, then “Made in Canada” or “Prepared in Canada” may be acceptable.
- For those who care about the development of food products but are less concerned with manufacturing location, “Designed in Canada” is informative.
Final Thoughts
Food labeling can sometimes be confusing, but understanding the key differences between “Product of Canada,” “Made in Canada,” “Prepared in Canada,” and “Designed in Canada” can help you align your purchases with your values. Whether you want to support Canadian farmers, ensure food safety, or simply understand where your food comes from, knowing what these labels mean empowers you to make better choices in the grocery store.