Federal food safety regulators have suspended the operating licence for Goodfood Market Corp., dealing a new challenge to the Montreal-founded meal-kit company that was once a pandemic-era stock market darling valued over $1 billion.
CFIA Action Halts Some Operations
The Canadian Food Inspection Agency (CFIA) suspended Goodfood’s Safe Food for Canadians licence on December 30, 2023. The suspension applies to the company’s facility in Montreal. According to the CFIA, the action was taken under the Safe Food for Canadians Regulations, which permit a licence suspension when a company fails to meet required standards.
The agency stated that while there is no associated food recall, Goodfood may not conduct activities covered by the licence—such as assembling meal kits—at the Montreal location while the suspension is in effect. The company has clarified that its Calgary facility remains fully operational and that customer deliveries across Canada should continue uninterrupted.
Company Responds, Cites Procedural Issues
In a statement, Goodfood expressed disappointment but sought to reassure customers and investors. The company emphasized that there are no food safety issues at the Montreal plant. It characterized the suspension as relating largely to procedural matters, such as the review of complaints, which it described as "preventive controls."
"The decision to suspend the licence came from the National Director’s office in Toronto on the basis of perceived non-compliances, which are largely procedural in nature. Again, there are no food safety issues," the company stated. Goodfood added that it is confident the situation will be resolved swiftly, expecting the suspension to be "short-lived" and that any perceived gaps would be closed "in the coming hours or days."
From Billion-Dollar Valuation to Regulatory Scrutiny
The licence suspension is the latest twist for a company that has experienced dramatic highs and lows. Founded in 2014 in Montreal by Jonathan Ferrari and Neil Cuggy, Goodfood grew rapidly to become Canada’s largest meal-kit service. It went public on the Toronto Stock Exchange in 2017, raising $21 million.
The COVID-19 pandemic supercharged demand for home-delivered food, sending Goodfood’s shares soaring above $12 in 2020 and catapulting its market valuation past the $1 billion mark. However, as pandemic restrictions eased, the company’s fortunes reversed sharply. As of early January 2024, Goodfood’s stock traded at approximately 33 cents per share, giving it a market capitalization of just over $30 million—a staggering fall from its peak.
The company, which delivers subscription meal kits, ready-to-cook meals, and grocery products nationwide, now faces the immediate task of satisfying federal inspectors to have its Montreal licence reinstated while navigating a vastly more competitive and challenging market landscape.
