Canadian food suppliers are once again issuing notices to grocery retailers, informing them of upcoming price hikes.
The letters signal more price increases will hit grocery stores this fall in a year that has already seen nearly double-digit increases in food costs.
In some cases, the higher prices are due to the Canadian Dairy Commission’s approval of a second milk price increase this year. Farm gate milk prices are set to go up about two cents per litre, or 2.5 per cent, on Sept. 1.
Yet dairy-processing companies appear to be tacking on their own increases as well — the so-called piggybacking of price hikes industry observers warned would happen.
In some cases, the higher prices are due to the Canadian Dairy Commission’s approval of a second milk price increase this year. (Sean Kilpatrick/The Canadian Press)
Lactalis Canada, for example, said in a letter to customers it must implement an average national market increase of five per cent this September, a rate it said that takes into account the CDC pricing increase, as well as “significant inflationary costs” the company is facing.
Arla Foods Canada issued a similar notice, saying price increases on its products coming this September reflect higher milk ingredient costs and the “inflationary impacts across freight and packaging.”
Saputo Dairy Products Canada also said it would implement price increases in the five per cent range, depending on the category.
“Producers have faced increased production costs, as well as rising feed, energy and fertilizer costs, which have had a significant impact on this year’s farm gate milk price adjustment,” Saputo said in a letter to its retail customers.
“In addition to these regulated increases, there have been unprecedented and sustained inflationary pressures affecting manufacturing, energy, labour and distribution costs throughout the entirety of the supply chain.”
Food prices have increased at by almost 10 per cent in the past year. (Carlos Osorio/Reuters)
The price increases shared with grocers underscore how regulated dairy price hikes are compounded by additional price increases throughout the supply chain, said Gary Sands, senior vice-president of public policy with the Canadian Federation of Independent Grocers.
“The timing of the increases almost seems like they are piggybacking on top of the regulated increases,” he said. “The net effect is to further exacerbate the issue and concerns around affordability.”
Those concerns are especially acute in rural and remote communities, where transportation and fuel surcharges are higher, Sands said. “The increase in price for these essential products is of particular concern in those communities.”
WATCH | Follow your food from farm to fork to see why everything is more expensive:
Following rising food costs from the farm to the store
5 months ago
Duration 2:38
Increasing expenses along the supply chain and even the weather are some factors behind rising food costs Canadians are seeing at the grocery store.
The price of food purchased at stores rose 9.7 per cent in May compared with a year ago, as the cost of nearly everything in the grocery cart climbed higher, Statistics Canada said last month.
Sylvain Charlebois, a professor of food distribution and policy at Dalhousie University, said the pace of food price increases could rise to 10 per cent before starting to slow.
“We’re expecting food inflation to peak between now and the end of September,” he said. “It may actually go north of 10 per cent before things start to calm down.”
The U.S. Bureau of Labor Statistics said Wednesday the inflation rate for food consumed at home in that country hit 10.4 per cent in June, the largest 12-month increase since 1981.
Charlebois said Statistics Canada is expected to post similar food inflation figures when it reports the consumer price index for June next week.
Surging prices will put pressure on grocers to promote their private label options, also referred to as a retailer’s house brand, he said.
“Consumers are trading sideways or trading down on anything and everything right now and switching to discount stores,” Charlebois said. “They’re really more sensitive about the cost of living.”
Meanwhile, the letters sent by suppliers to retailers outlining the reasoning behind the cost increases is part of an effort to not be accused of “greedflation,” he said.
“The last thing processors want is to become a scapegoat and to be blamed for higher food inflation,” Charlebois said.
“Inflation is impacting every single Canadian out there, but it’s also impacting the political economy of food and how the food industry is being perceived.”
Lactalis said in its letter to customers that it is “very cognizant of the impact of inflation on consumers.”
“As we are all aware, this cycle of inflation is in large part being driven by the latest phase in the evolution of the pandemic and by the global geopolitical situation sparked by Russia’s invasion of Ukraine and the ongoing conflict,” the company said.
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
