Heinz, Highbury Canco extend deal that's expected to see some $1B in products at Leamington, Ont., facility

A long-standing partnership agreement between Highbury Canco in Leamington, Ont., and Kraft Heinz Canada has been extended for another four years, the companies announced Wednesday.

Theextension, until the end of 2027, will see approximately $1 billion in Kraft Heinz Canada products being produced in Leamington, the companies said in a news release.

Simon Laroche, president of Kraft Heinz Canada, said the agreement with Highbury is an important one.

"It is really significant for us we're producing some of our most iconic brands together with our partner Highbury Canco in Leamington," Laroche told CBC News.

"It is a big deal for us and to make sure that we're going to keep that partnership going for the next four years."

LISTEN: Simon Laroche joins Afternoon Drive

Afternoon Drive6:33Heinz renews Leamington contract

Ketchup giant Heinz and Canadas tomato capital will keep their relationship going, after a contract renewal was announced this morning. Host Matt Allen speaks with president of Kraft Heinz Canada, Simon Laroche, for more.

Highbury Canco employs more than 600 Canadians at its 2.1-million-square-foot facility in Leamington, where it produces productsincluding Heinz beans, Heinz tomato juice and Classico pasta sauce.

The Leamington facility also produces the tomato paste that goes into its ketchup, which isnow made in Montreal.

Up until 10 years ago,Heinz owned the Leamington facilityand produced ketchup there. Heinz had operated in Leamington for more than 100 years before announcingit was closing and selling the plant, which prompted a boycott movement against Heinz ketchup.

Laroche said it was a "mistake" for the company to stop producing ketchup at the facility in favour of a U.S. location.

"Consumers were unhappy about it, so we decided to bring it all back to Canada," he said.

Laroche said Leamington is an ideal spot for its production facility, because "some of the best tomatoes in the world" are produced there.

"It's more than 220 million pounds of tomato from southern Ontario, from the Leamington area, that we're actually using every year," he said.

'A mutually beneficial alliance': Highbury CEO

It's the third consecutive extension in the partnership between the two organizations, a connection they say has served to support jobs and bolster the local economy.

"Extending our partnership with Kraft Heinz Canada for another four years provides significant stability for our facility, and for our workforce," said Sam Diab, CEO at Highbury Canco.

"This is a mutually beneficial alliance that is of great significance to the Leamington community, and for all the Canadians that can continue to enjoy Kraft Heinz Canada products being produced at facilities such as ours."