Australian owner of Toronto café chain fighting Ottawa to save $8K of Vegemite

It’s hard to get any further from Australia than downtown Toronto, so for a dual-citizen like Leighton Walters, the quickest way to be transported home is to take a bite of Vegemite on toast.

The yeasty spread, made from the byproduct of beer production, is hard to find in Canada, but back in Walters’ home country, it’s part of the national fabric. For five years, he says he’s been importing jars of the stuff to offer at Found Coffee, his chain of Australian-inspired cafés in Toronto.

Until recently, Found Coffee sold jars of Vegemite directly to customers, who could also order Vegemite on toast or pastries with the spread baked in.

“I grew up as a Vegemite kid … eating it for breakfast every second day,” Walters told CBC Toronto. “It’s an iconic Australian product … we’ve been so proud to serve it to thousands and tens of thousands of Australians, Canadians, travelers and tourists.”

But earlier this year, Canadian regulators flagged his latest shipment of Vegemite, which is only produced in Australia. After inspection, they told Walters he would have to pull the item. The reason behind the decision has left Walters — and the local expat community that buys his imports —  frustrated and confused.

“Pulling Vegemite off our shelves hits at the core and the heart of our brand,” he said.

“It would be similar to a Canadian entrepreneur moving to Australia, starting an amazing poutine shop and then bringing in this beautiful, sort of high quality, unique maple syrup from Canada, and then the Australian government turning around and saying, ‘No you can’t serve that maple syrup because the trees weren’t in a controlled environment when they were tapped’ or ‘They’re too sweet.'”

It’s also put roughly $8,000 worth of Vegemite, which Walters has already paid for, in jeopardy.

Emails provided to CBC Toronto by Walters show that the Canadian Food Inspection Agency (CFIA) told him in January that the batch of Vegemite was non-compliant with Health Canada regulations.

“The Vegemite product being sold was found to have added vitamins which are not permitted in this product as per the Food and Drug Regulations and is therefore not permitted to be sold in Canada,” a CFIA spokesperson told CBC Toronto in an email. 

“As a result, the café was informed of the non-compliance and voluntarily removed the product from its menu and retail offerings.”

Some products, like cereals, white flour and certain juices and milks, may be sold with added vitamins under Canada’s Food and Drug Regulations, but spreads and condiments aren’t included in the list.

All Vegemite products are fortified with Vitamin B, according to the product’s website, suggesting no Vegemite products should be permitted to be sold in Canada.

That’s not the case though. It’s still available to purchase at specialty retailers around the country and is sold online by Amazon Canada. CFIA confirmed in its email that Vegemite is not banned in Canada.

CBC Toronto followed up with CFIA for clarification on why Vegemite is generally permitted for sale despite appearing to contradict regulations, but did not hear back before publication. 

Walters notes that Marmite, a similar spread made in the U.K. that also has added vitamins, was explicitly deemed a legal product for import by CFIA in 2020, after a shipment was mistakenly rejected that year. 

But a spokesperson for Health Canada said in an email that the addition of vitamins is limited to certain foods “to help ensure that Canadians get sufficient but not excessive amounts of certain nutrients in their diet.”

“Some food manufacturers choose to produce products for import that meet Canadian regulations so that they may be legally sold in Canada,” said spokesperson Charlaine Sleiman. She said Vegemite sold in Canada must be altered to meet regulations.

Walters says the regulations are personal to him for another reason. He suffers from spina bifida, and research suggests that folate, a type of Vitamin B that is added to Vegemite, taken during pregnancy reduces the risk of a child being born with the condition. Indeed, he spoke with CBC Toronto from his hospital room, where he’s recovering from surgery — his 65th hospital admission.

“To some Vegemite is Vegemite, but to me it’s more about trying to make sure that no on else has to go through what I’ve been through with my life,” he said.

Walters says he decided to take Vegemite off his shelves to avoid any penalties while he fights the decision. He’s also reached out to the Australian Trade and Investment Commission for help.

In the meantime, many Australian expats among Walters’ clientele have rallied around Found Coffee to question the CFIA.

Ray Wood, who was born in Melbourne but has lived in Ontario since 2008, says Walters’ story has been making the rounds on local Australian expat Facebook groups, garnering outrage and support from fellow transplants. 

He said he was baffled to learn Vegemite wasn’t up to Canadian regulations and reached out to Walters immediately.

“What the heck’s going on? Vegemite’s a national Australian icon,” Wood said. “How could it suddenly be threatened like this?” 

He said Australians in the group are trying to spread the word, and ask why Walters’ chain is being targeted, in hopes the decision will be overturned.

“Why would the Canadian food authorities single out one store when the product is available everywhere, as are very similar products?” Wood said.

Keane Scheffel, who’s also originally from Melbourne and frequents Found Coffee on his morning commute, says he can’t understand what CFIA is trying to protect Canadians from.

“I don’t see why it should be an issue,” he said. “There’s no need to stop it. It’s something that Australians have eaten for a long, long time.”

He says he has enough Vegemite to last a while and isn’t worried about running out any time soon, but he is worried about the hit that this could take on Walters’ business.

“I just hope that Leighton and the folks at Found can get a resolution,” he said. “It’s baffling.”