An ice cream company in Ontario has announced plans to replace over 70 percent of its ingredients from the U. S. and will not increase prices for two years.
Chapman’s Ice Cream is moving away from American suppliers as trade tensions between Canada and the United States persist. The family-run business also confirmed it won’t raise its prices until March 2028.
The search for alternatives to U. S. suppliers began in March 2025, following the initial round of tariffs introduced by the Trump administration, according to CEO Ashley Chapman.
“We made a statement at that time that we weren’t raising prices and we were going to start this journey. And here we are. We have not been sitting idle. We have been working very hard,” Chapman told CBC’s London Morning on Thursday.
The company stated it’s on track to swap more than 70 percent of its American ingredients and components with sources from Canada or other non-U. S. locations by mid-2027.
The sweet move to Ontario sugar cone company
A significant change involves sugar cones.
Since there aren’t any industrial sugar cone producers in Canada, the company partnered with Original Foods, located in Dunville, Ont., to set up a cone oven, Chapman explained.
“We are going to be the only company in Canada who has a 100 percent Canadian cone line.”
Original Foods Limited will manufacture the sugar cones for Chapman’s. The manufacturer reached out to the ice cream retailer a few months ago when trade discussions between Canada and the U. S. heated up.
“We knew there will be opportunities for customers who are currently buying in the U. S. to look for local manufacturing and we approached Chapman’s to discuss if they would be interested to buy locally,” said president Steeve Tremblay.
“It’s very rewarding to keep the jobs in Canada. It makes our economy stronger and we’re not being dependent outside the country, especially when there’s a country that tries to make our economy and our lives more difficult. It’s nice to see that we can collaborate and give somewhat of strategic response that’s good for Canada.”
The two companies have already signed their agreement, and equipment has been ordered from Germany. However, Tremblay mentioned there have been delays due to Canada’s electricity registration requirements and other bureaucratic hurdles.
“Sometimes [the requirements] are really unique to Canada and not aligned with European manufacturers, so it causes extra costs and delays and is a perfect example of something that can be reviewed,” he said.
Tremblay plans on reaching out to other Canadian businesses encourage more local partnerships.
Chapman’s is also shifting production of wafers used in its ice cream sandwiches back home while sourcing ingredients like almonds from Australia and cherries from Chile.Ashley Chapman, CEO of Chapman’s Ice Cream, says trade dispute between Canada and the U. S. has prompted Canadian companies like Chapman’s to reconsider what they produce domestically. (Chapman’s Ice Cream)
The ongoing trade dispute has led companies like Chapman’s reassess their domestic production strategies, he noted.
“The first round last year of tariffs really opened the eyes of a lot of industry in Canada. Companies that we’ve known for years that would never consider producing certain products suddenly they were saying, ‘You know what, maybe we should look at this.’”
He mentioned some changes turned out even cheaper than expected.
“It’s crazy what this has done for businesses in this country. Almonds from Australia? Are you kidding? How is it possible that we could get an even better price plus freight from Australia instead of the United States? So we’re finding lots of opportunities out there.”
Chapman stated some adjustments involve long-term commitments like their five-year contract for Canadian-made cones.
Chapman’s is also focusing on improving production efficiency as part of their cost-control efforts.
“I am fully confident that we are going to make it through this.”The company affirmed it will continue using only 100 percent Canadian dairy in its ice cream.
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