Sugar shortage hits bakeries, supply chain

Hey there, time traveller!
This article was published 24/11/2023 (718 days ago), so information in it may no longer be current.

The sweet treats that typically fill the shelves of bakeries and the kitchens of Brandon homes during the festive season face a bitter setback.

Nearly 140 workers at Rogers Sugar Refinery in Vancouver have been on strike since Sept. 28, and the effects are rippling through the sugar supply chain, causing concerns for local businesses and customers.

Chez Angela Bakery and Café general manager James Chambers said the strike has created a sugar shortage, which has negative impacts on his business.

“We buy one pallet of sugar every month, especially more at this time of year for Christmas baking,” Chambers told the Sun. “The price has surged by 37.5 per cent in the last six months, significantly impacting our bottom line.”

The unprecedented rise has not only added to his costs but also disrupted the availability and quality of sugar, which is particularly noticeable in the alterations in the colour and consistency of the brown sugar the bakery receives.

Chambers said the challenges the bakery faces due to the ongoing strike are not limited to the increasing cost of the commodity, also affecting its recipes, flavours, and production processes.

The shift in sugar availability, he said, made the bakery adjust its baking formulations, assessing the varying sweetness levels and characteristics of alternative ingredients such as maple syrup and local honey.

“While we’ve refrained from raising prices so far, absorbing these increased costs ourselves, it’s becoming increasingly challenging,” Chambers said. “We’re forced to make tough decisions, such as scaling back production on certain items like our beloved cinnamon buns, which have seen a reduction due to the soaring sugar prices.”

With Christmas around the corner, the bakery manager said meeting the demand for traditional treats is a major challenge now. If the strike is prolonged, Chez Angela may be forced to reevaluate its approach to certain holiday specialties that rely heavily on sugar content.

He added that it is a delicate balance for the bakery, as it is striving to maintain and ensure the quality and authenticity of its baked goods. The bakery, he said, is committed to finding creative solutions, adding that it is exploring every avenue to manage the situation, tweaking recipes and exploring alternative sweeteners.

The effects of the strike were also noticeable during a visit to the Real Canadian Superstore on Victoria Avenue on Thursday, where the sugar shelf was notably vacant, indicating the depletion of sugar stocks due to the ongoing refinery strike.

Companies like Heritage Co-op and Little Chief’s Place Convenience Store are also feeling the heat.

Heritage Co-Op operation manager Reg Clarke told the Sun that his company has been managing supply constraints. “We’ve started limiting sugar purchases to ensure fair distribution to all customers,” he said. “Although the strike hasn’t impacted our pricing yet, continued long-term disruptions may amplify the challenges.”

If this strike prolongs, Clarke said there might be greater impacts on the supply chain, adding that the company’s warehouse is exploring various options, “but we don’t have a specific business continuity plan in place to mitigate this risk.”

Little Chief’s Place Convenience Store co-owner Ashwini Patel told the Sun that the consequences of sugar shortage on small businesses and local communities are grave.

“If supply doesn’t improve, and prices keep rising, we’ll face challenges in serving our customers,” she said. “It’s crucial for us to support our small community, but running out of sugar would disappoint customers, affecting our business.”

Patel said the aim of her store is to help the customers as much as possible, but if the supply chain doesn’t improve, it will not only impact the business’s revenue but also the convenience for the customers who rely on the store for sugar supplies.

Meanwhile, the refinery workers’ union cites wages, benefits and the company’s proposal to increase refinery production every day, 24-7, as reasons for strike action.

Rogers Sugar Inc. said the plant still operates, though at a reduced level. It’s using other facilities to produce sugar for western Canada.

Rogers Sugar also owns a Montreal refinery. It markets its products under the brands Rogers and Lantic.

Supply impacts of brown sugar and some packaged white sugars are being felt in western Canada, Jean-Sebastian Couillard, Rogers Sugar’s chief financial officer, confirmed to the Canadian Press.

However, there’s “ample supply” of other products, including bulk sugars used by bigger food processors and liquid sugars, he said.

» aodutola@brandonsun.com

» X: @AbiolaOdutola

With files from The Canadian Press