The Canadian Food Inspection Agency (CFIA) has suspended Goodfood’s safe food licence, a significant development for the popular meal-delivery service. This suspension, effective December 30th, prohibits Goodfood from conducting activities requiring the licence, such as importing, exporting, manufacturing, or packaging food for sale in Canada. The CFIA cited a violation of Part Four of the Safe Food for Canadians Act, which prohibits the import and sale of food prohibited under Canada’s Food and Drugs Act. This action follows months of executive turnover within the company and raises questions about Goodfood’s future operations.
The suspension means that Goodfood is currently unable to legally perform core functions related to food handling and distribution, impacting its ability to serve customers across the country. While the CFIA notice does not specify the exact nature of the non-compliance or any recalled food items, it indicates that failure to comply with regulations, payment defaults, or public safety risks can lead to such measures. The company has a 90-day window to take corrective action before the licence could be permanently cancelled.
Featured snippet paragraph: The Canadian Food Inspection Agency suspended Goodfood’s safe food licence due to a violation of the Safe Food for Canadians Act, primarily concerning procedural aspects like the review of complaints, not immediate food safety issues.
Goodfood has expressed disappointment with the CFIA’s decision, stating that the suspension is largely related to procedural aspects rather than actual food safety concerns. The company claims that its orders will continue to be delivered with some exceptions and that its Calgary facility remains operational. They are reportedly seeking a review of their file and anticipate a short-lived suspension. Despite the suspension, Goodfood’s social media channels were actively promoting new meal offerings, indicating a continued effort to engage customers.
The meal-kit company has faced a steady decline in its customer base since the pandemic. In the fourth quarter of 2025, Goodfood reported net sales of $25 million, with a net loss of $4 million. This is a stark contrast to its peak performance in the same period of 2021, when net sales reached $79 million. The company’s stock, once trading at $13, has fallen significantly to $0.32.
This licensing issue adds to a turbulent period for Goodfood, which has seen considerable executive departures. In early December, co-founder Neil Cuggy announced his departure as president and COO, following co-founder Jonathan Ferrari’s abrupt resignation as CEO in August. These leadership changes have raised concerns about the company’s stability and strategic direction.
Furthermore, Goodfood is currently facing a potential class-action lawsuit in Quebec. Filed in October 2025, the lawsuit accuses the company of failing to disclose delivery fee charges within the displayed prices on its website. If certified, the class action would represent Quebec residents who have paid delivery fees to Goodfood since October 2022. The accusations have not yet been proven in court.
What is the implication of a suspended safe food licence for a food business?
A suspended safe food licence means a business is prohibited from conducting activities for which the licence was issued, such as importing, exporting, manufacturing, or packaging food for sale. This significantly impacts operations and can lead to business disruption if not resolved within a specified timeframe.
How does the Safe Food for Canadians Act impact food businesses?
The Safe Food for Canadians Act aims to protect consumers by establishing robust food safety regulations. It sets requirements for importers, exporters, manufacturers, and distributors, ensuring that food sold in Canada meets safety standards and is handled appropriately throughout the supply chain.
The situation at Goodfood highlights the critical importance of regulatory compliance in the food industry. Even procedural issues, as Goodfood suggests, can lead to severe consequences if not addressed promptly and effectively. The company’s ability to rectify the situation within the 90-day period will be crucial for its continued operation and consumer trust.
While the Calgary facility remains operational, the suspension of the Montréal facility’s licence raises concerns about the overall capacity and logistical capabilities of Goodfood to meet demand. Consumers who rely on Goodfood for their meal kits will be closely watching for updates on the company’s efforts to regain its licence.
The ongoing legal challenges and financial performance also contribute to a complex landscape for Goodfood. Navigating these issues while simultaneously addressing the CFIA’s concerns will require a concerted effort from the company’s leadership.
The Canadian food inspection agency’s actions serve as a reminder to all food businesses about the stringent oversight and regulatory framework in place to ensure public health and safety.
