Loblaw (L.TO) chairman Galen Weston on Thursday called the boycott of the company “misguided criticism”, saying the company is not responsible for higher food prices and denouncing calls to steal from the grocery chain.
Speaking at the company’s annual meeting of shareholders on Thursday, Weston said that the grocery industry has faced “unprecedented criticism” amid higher food prices, and that Loblaw has been “singled out as a focal point for media and government and, of course, consumer frustration.”
“Loblaw is not responsible for higher food prices. Inflation is a global issue and is not specific to our company or to our industry. Allegations of profiteering on the back of inflation by grocers are untrue,” Weston said.
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“Unfortunately, this rhetoric continues, even though it’s not true.”
A national, month-long boycott of Loblaw began on Wednesday. The grassroots effort, which started on a Reddit group called “Loblaws is out of control”, includes a demand for a 15 per cent reduction in pricing.
Weston pushed back on the boycott on Thursday, calling it an example of “misguided criticism.”
“The organizers demanded that we lower food prices by 15 per cent. To put that in perspective, it equates to approximately three times the total earnings of the company in a given year, the consequence of which would have been the end of our enterprise, the loss of over 200,000 jobs and billions in annual investments,” Weston said.
“Their frustration is understandable, but this kind of expectation betrays a misunderstanding of what’s actually driving food prices higher in this country.”
Loblaw CEO Per Bank also pushed back on the boycott, highlighting that some have been encouraging people to steal from Loblaw stores. Weston says those that have been “promoting and even celebrating stealing” were “even more discouraging.”
“There’s a group of people who have been relentlessly propagating a narrative that they know is false and it is now being used to justify theft on a grand scale. I’m optimistic and hopeful that Canadians reject the notion outright,” he said.
“The cost-of-living pressures in Canada remain significant. But as you’ve heard today, Loblaw is working hard to bring more value to customers through No Name, hard discount and promotions, and pushing back on unjustified prices for manufacturers.”
More to come.
Alicja Siekierska is a senior reporter at Yahoo Finance Canada. Follow her on Twitter @alicjawithaj.
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