Business
Frito-Lay stops shipping chips to Loblaws stores in pricing dispute – CBC News
One of Canada’s biggest food manufacturers has halted shipments to the country’s largest grocer in an extreme example of how inflation is impacting the food industry and driving a wedge between some retailers and suppliers.
At issue is a dispute over pricing between Frito-Lay Canada and Loblaw Companies Ltd. Frito-Lay, the maker of brands like Cheetos, Doritos, Lays, Ruffles and Sunchips, says it’s trying to recoup higher costs.
The situation has left the chip and snack food aisle of many Loblaw stores less full than usual, or stocked with house brands, such as President’s Choice or No Name.
Frito-Lay spokesperson Sheri Morgan confirmed there is a “temporary disruption” with one customer.
“Our business has faced unprecedented pressures from rising costs of items including ingredients, packaging and transportation,” she said in an email.
“To help offset these pressures on our Canadian operations … we have made adjustments to our prices that are consistent across the marketplace.”
Loblaw spokesperson Catherine Thomas said the grocer is “laser focused” on minimizing retail price increases.
“When suppliers request higher costs, we do a detailed review to ensure they are appropriate,” she said in an email. “This can lead to difficult conversations and, in extreme cases, suppliers don’t ship us products.”
The rift between Frito-Lay and Loblaw exposes deepening tensions in Canada’s food industry that many experts say could worsen as supply chain challenges and inflation continue.
Some argue that grocery retailers are simply trying to keep sticker prices low for consumers and stop suppliers from using inflation to justify unreasonable price hikes.
Others suggest grocers are using their market strength to bully suppliers and pad their bottom lines.
“It’s challenging that it has devolved into such a confrontational relationship,” said Michael Graydon, CEO of Food, Health & Consumer Products of Canada, which represents Frito-Lay.
“The level of frustration is growing.”
Retailers, manufacturers at odds over pricing
The increase in wholesale prices some suppliers are seeking from retailers will help mitigate ongoing inflation — but won’t completely offset higher costs, Graydon said.
The final price consumers pay in stores is set by grocery retailers — not food manufacturers, he said.
However, retail industry advocates say food manufacturers are, in some cases, seeking price hikes that outpace inflation.
Retail Council of Canada spokesperson Michelle Wasylyshen said the industry group, which represents Loblaw, has been contacted by both big and small grocery retailers about a flood of new price increases in January from vendors.
“This follows an already alarming number of increases in the preceding quarter,” she said. “In many cases the increases are unprecedented and far exceed typical food inflation levels.”
Statistics Canada said last week that food prices increased 6.5 per cent in January, the biggest year-over-year jump in grocery bills in more than a decade and higher than the overall annual inflation rate of 5.1 per cent.
It’s unclear how the loss of sales at Loblaw, which includes conventional chains such as Zehrs, Atlantic Superstore and Provigo and discount stores No Frills and Maxi, could impact Frito-Lay.
The company’s products are made in Canada, largely using Canadian potatoes grown by local farmers. Experts say a long-term drop in sales could ultimately hurt local producers.
WATCH | Inflation hits highest level in Canada since 1991:
Brand loyalty a factor
But experts say brand loyalty will work in the chipmaker’s favour.
“Frito-Lay is betting that the loyalty consumers have for their brands gives them leverage to make this move,” said Joel Gregoire, associate director of Canada Food and Drink with market research company Mintel.
Yet pulling supply from Loblaw — which holds the largest share of grocery sales in Canada — is also risky for the food manufacturer, he said.
“Not filling orders to Canada’s largest grocer will no doubt have a substantial impact on Frito-Lay’s near-term sales,” Gregoire said. More broadly, he said the dispute appears emblematic of a broader battle for pricing leverage between grocers and manufacturers.
“This tension is not new, but this move by Frito-Lay has high stakes,” he said. “This is a battle to maintain margins as costs rise.”
Indeed, food expert Sylvain Charlebois said the friction between Frito-Lay and Loblaw is the “tip of the iceberg.”
The hostility between retailers and manufacturers could worsen in the coming months, he said.
“This is not just about chips,” said Charlebois, Dalhousie University professor of food distribution and policy.
“We’re going to be seeing this in other food categories like bakery and dairy as well.”
Business
Gas prices see 'largest single-day jump since early 2022': En-Pro International – Yahoo Canada Finance
Gas prices across Canada climbed an average of 9.4 cents per litre of regular fuel over the past seven days, the biggest weekly gain so far in 2024. Cities in Ontario and Quebec booked eye-watering 20 cent-plus gains, while prices were virtually flat for drivers in the Western and Maritime regions.
The average cost per litre of regular gasoline in cities nationwide rose to $1.806 from $1.712 between April 11 and April 18, according to data firm Kalibrate. Chicoutimi, Que. saw the biggest increase at 26.7 cents per litre, followed by Gatineau, Que., and North Bay, Ont. The Greater Toronto Area was hit with widespread gains above 15 cents per litre.
On Thursday afternoon, En-Pro International posted on X that “gas prices spiked 14 cents overnight, the largest single-day jump since early 2022.”
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“The steady build in U.S. crude inventories, combined with the reluctance of the Fed to lower interest rates, which would increase gasoline demand, should neutralize the impact of the conflict in the Middle East,” En-Pro chief petroleum analyst Roger McKnight wrote in a blog post.
“The refining industry will come back to normal levels by mid-June, so supply will balance demand, and prices should fall soon after the U.S. Memorial Day launch of summer.”
Rising gas prices was the top factor behind Statistics Canada’s slightly higher annual inflation reading for March. Year over year, the agency found gasoline prices increased 4.5 per cent last month, following a 0.8 per cent rise in February.
“Higher global prices for crude oil stemmed from supply concerns amid geopolitical conflict and continued voluntary production cuts, leading to higher prices at the pump,” StatCan said on Tuesday.
Follow Yahoo Finance Canada for more weekly gas price updates. Scroll below to find your nearest city.
(All figures in CAD cents)
LOCATION |
April 11 |
April 18 |
Price change |
Canada Average (V) |
171.2 |
180.6 |
9.4 |
WHITEHORSE |
189.9 |
189.9 |
0 |
VANCOUVER* |
210.7 |
212.7 |
2 |
VICTORIA |
206.2 |
206.9 |
0.7 |
PRINCE GEORGE |
169.6 |
169.3 |
-0.3 |
KAMLOOPS |
172.5 |
181 |
8.5 |
KELOWNA |
174.6 |
175.8 |
1.2 |
FORT ST. JOHN |
171.2 |
174.9 |
3.7 |
ABBOTSFORD |
194.2 |
198.5 |
4.3 |
YELLOWKNIFE |
161.9 |
161.9 |
0 |
CALGARY* |
161.2 |
158.8 |
-2.4 |
RED DEER |
159 |
159 |
0 |
EDMONTON |
154.9 |
153.6 |
-1.3 |
LETHBRIDGE |
161.9 |
161.9 |
0 |
LLOYDMINSTER |
154.6 |
154.6 |
0 |
GRANDE PRAIRIE |
156.9 |
158.7 |
1.8 |
REGINA* |
158 |
157.3 |
-0.7 |
SASKATOON |
157.4 |
156.9 |
-0.5 |
PRINCE ALBERT |
154.6 |
155.8 |
1.2 |
MOOSE JAW |
158.7 |
158.7 |
0 |
WINNIPEG * |
141.4 |
141.6 |
0.2 |
BRANDON |
142.5 |
143.3 |
0.8 |
CITY OF TORONTO* |
163.7 |
179.3 |
15.6 |
BRAMPTON |
164.3 |
179.6 |
15.3 |
ETOBICOKE |
163.4 |
179 |
15.6 |
MISSISSAUGA |
162.8 |
179.3 |
16.5 |
NORTH YORK |
163.9 |
179.6 |
15.7 |
SCARBOROUGH |
163.3 |
179.5 |
16.2 |
VAUGHAN/MARKHAM |
163.5 |
179.2 |
15.7 |
OTTAWA |
162.4 |
179 |
16.6 |
KINGSTON |
162.3 |
179.3 |
17 |
PETERBOROUGH |
160.1 |
172.2 |
12.1 |
WINDSOR |
162.4 |
177.8 |
15.4 |
LONDON |
163.5 |
177.4 |
13.9 |
SUDBURY |
167.4 |
185.8 |
18.4 |
SAULT STE MARIE |
160.2 |
174.3 |
14.1 |
THUNDER BAY |
165.8 |
175.5 |
9.7 |
NORTH BAY |
161.5 |
182.6 |
21.1 |
TIMMINS |
169.7 |
183.6 |
13.9 |
HAMILTON |
161.6 |
178 |
16.4 |
ST. CATHARINES |
160.4 |
177.1 |
16.7 |
BARRIE |
162.8 |
178.2 |
15.4 |
BRANTFORD |
161.1 |
176.2 |
15.1 |
GUELPH |
163.4 |
178.4 |
15 |
KITCHENER |
163.1 |
179 |
15.9 |
OSHAWA |
163.8 |
179.4 |
15.6 |
SARNIA |
161.7 |
178.9 |
17.2 |
MONTRÉAL* |
173.7 |
190.5 |
16.8 |
QUÉBEC |
172.1 |
187.4 |
15.3 |
SHERBROOKE |
169.5 |
185.3 |
15.8 |
GASPÉ |
172.7 |
189.4 |
16.7 |
CHICOUTIMI |
155.1 |
181.8 |
26.7 |
RIMOUSKI |
169.4 |
189.4 |
20 |
TROIS RIVIÈRES |
169.8 |
186.7 |
16.9 |
DRUMMONDVILLE |
166.7 |
183.9 |
17.2 |
VAL D’OR |
169.6 |
182.7 |
13.1 |
GATINEAU |
152.7 |
175.9 |
23.2 |
SAINT JOHN* |
175.1 |
179.1 |
4 |
FREDERICTON |
176.6 |
181.7 |
5.1 |
MONCTON |
176.8 |
181.9 |
5.1 |
BATHURST |
176.8 |
182.3 |
5.5 |
EDMUNDSTON |
175.2 |
175.8 |
0.6 |
MIRAMICHI |
177.9 |
183.1 |
5.2 |
CAMPBELLTON |
175.7 |
179.9 |
4.2 |
SUSSEX |
176.2 |
181 |
4.8 |
WOODSTOCK |
177.8 |
183.1 |
5.3 |
HALIFAX* |
172.1 |
175.4 |
3.3 |
SYDNEY |
174.1 |
177.2 |
3.1 |
YARMOUTH |
173.2 |
176.3 |
3.1 |
TRURO |
173.3 |
176.4 |
3.1 |
KENTVILLE |
172.7 |
175.8 |
3.1 |
NEW GLASGOW |
173.3 |
176.4 |
3.1 |
CHARLOTTETOWN* |
173 |
173 |
0 |
ST JOHNS* |
190.4 |
193.9 |
3.5 |
GANDER |
192.9 |
196.4 |
3.5 |
LABRADOR CITY |
197 |
200.5 |
3.5 |
CORNER BROOK |
191.1 |
194.6 |
3.5 |
GRAND FALLS |
192.9 |
196.4 |
3.5 |
SOURCE: KALIBRATE • All figures in CAD cents
(*) Denotes markets used in Volume Weighted Canada Average
Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist.
Download the Yahoo Finance app, available for Apple and Android.
Business
RCMP national security team investigating Yellowhead County pipeline rupture: Alberta minister – Global News
Alberta’s minister of forestry and parks said the RCMP national security investigation team is involved in a probe looking into what caused a pipeline to rupture and catch fire west of Edmonton earlier this week.
On Tuesday, a wildfire was sparked following a natural gas pipeline rupture about 40 kilometres northwest of Edson, Alta. The fire has since been deemed under control.
“We have no indication of any kind of cause on that fire yet; the investigation is happening,” Forestry and Parks Minister Todd Loewen said at a wildfire-related news conference Thursday morning. “The national security investigation team of the RCMP are investigating the cause.
“My understanding, since the cause was unknown, that’s standard practice for them to come in on anything that’s unknown.”
RCMP said as of Tuesday, initial reports had shown no signs of foul play.
Global News has reached out to the RCMP for more information. On its website, the RCMP states it has a wide range of national security-related mandates and responsibilities. It says its national security criminal investigations program involves critical infrastructure protection and critical incident management.
Officials say the investigation into what caused the TC Energy pipeline to break could take months or even years.
The Canada Energy Regulator had investigators on site on Wednesday. The Transportation Safety Board of Canada is also investigating the incident.
The rupture sparked a blaze that could be seen for kilometres, sending large flames and plumes of smoke into the air.
More on Science and Tech
No injuries were reported, and officials said the fire was never a threat to any surrounding communities.
“I want to commend the Yellowhead County Fire Department, industry and our wildfire team for the timely manner that this fire was brought under control,” Loewen said Thursday.
“Fast information sharing between all parties facilitated an effective wildfire response.”
The wildfire sparked by the pipeline rupture is located about 28 kilometres northeast of Obed Lake. More than 30 firefighters were expected to be in the area Thursday to continue working on the wildfire.
— with files from The Canadian Press
— more to come…
© 2024 Global News, a division of Corus Entertainment Inc.
Business
A sunken boat dream has left a bad taste in this Tim Hortons customer's mouth – CBC.ca
A St. John’s woman says she won’t be paying many more visits to Tim Hortons, after an email from the coffee chain led her to believe that she’d won a new boat — when she hadn’t won anything at all.
“I go to Tim’s quite a lot, seven days a week. I’m afraid now that’s going to change to no days a week,” Carol Evans told CBC News on Thursday.
Evans said she received an email from Tim Hortons on Wednesday afternoon while on a break from her work as an licensed practical nurse.
The email recapped the prizes she’d won in the annual Roll Up the Rim to Win contest, but there was one extra prize included — a brand new boat and trailer, valued at about $55,000.
Unfortunately, the excitement was over by the time she got home from work.
“I was just so excited, really excited. I thought I really won a boat and a trailer, $55,000 worth, and to find out at five to six, I had an email from them come in telling me it was a technical error,” she said.
“I don’t get my boat and I don’t get my trailer.”
Evans said her win was the talk of her co-workers.
“I work with about a hundred people in the run of a day, and more than that outside the OR, and everybody was so happy for me. They couldn’t believe it, I finally won something in my life,” she said.
“But to find out a few hours later I didn’t, it was disappointing, very disappointing.… I cried, it was so sad.”
Although she may not have taken it out on the water, Evans said winning would have meant a lot to her, like helping fund her retirement after more than five decades in nursing.
“I could have sold the boat and trailer and had some money, paid off some bills, probably could have, who knows, retired after 55 years of work,” she said.
In an emailed statement to CBC News on Thursday, Tim Hortons said the message was meant to show what each customer won over the course of the contest — and the boat was included by mistake.
“We developed a Roll Up To Win recap email message with the best intentions of giving our guests a fun overview of their 2024 play history.
“Unfortunately there was a human error that resulted in some guests receiving some incorrect information in their recap message.”
The company didn’t disclose how many people across the country received the email, but CBC News spoke to another person in western Newfoundland who got it.
Others in Edmonton, Hamilton and Brampton, Ont., were also told they’d won the boat.
By Wednesday afternoon, a Facebook group had formed with more than 200 people expressing outrage about the mistake and threatening to file lawsuits.
Tim Hortons apologizes
Tim Hortons sent the affected customers a letter, telling them to disregard that winning email and that it was sent as a result of “technical errors.”
“Unfortunately, some prizes that you did not win may have been included in the recap email you received. If this was the case, today’s email does not mean that you won those prizes,” the letter read.
“We apologize for the frustration this has caused and for not living up to our high standards.”
It’s a familiar story for Tim’s, however, as last year, its app mistakenly informed users they’d won $10,000.
Evans said two years of big mistakes just isn’t fair. She’d like to see Tim Hortons move away from the Roll Up to Win smartphone app and back to paper cups.
“It’s not fair to the public who spend their hard-earned money to go into Tim’s and buy their coffee every day, buy their lunch, and then think they won a prize and all of a sudden you learn, three hours later, you didn’t win a prize, and it’s not fair.”
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