Food prices in Canada are expected to surge to record highs next year as ongoing pandemic-fuelled supply chain disruptions, labour market issues and adverse weather events drive up grocery bills, a new report on food prices says.
The 12th edition of Canada’s Food Price Report released Thursday predicts the average Canadian family of four will pay an extra $966 for food in 2022, for a total annual grocery bill of $14,767.
That’s a seven per cent increase compared with 2021 — the biggest jump ever predicted by the annual food price report.
“It’s absurd,” said Rita R., who spoke to the NOW at the Burnaby Heights Safeway. “It doesn’t seem to matter what store I go to, the prices are outrageous. My income certainly hasn’t gone up to meet these higher prices. And now they’re going to continue to skyrocket?”
“I’m in shock by what I’ve been seeing,” said Sherry T., who was interviewed outside of the Real Canadian Superstore at Metropolis at Metrotown. “I have several kids to feed and now we’re cutting back on lots of other stuff to ensure we can afford groceries.”
Soaring food costs are expected to contribute to rising food insecurity in Canada, putting increasing demands on food programs intended to help, the report said.
“What is being challenged right now is food affordability,” said Sylvain Charlebois, lead author and Dalhousie University professor of food distribution and policy. “It’s not going to be easy for families or anyone already struggling to put food on the table.”
A growing phenomenon related to rising food insecurity is theft from grocery stores, the report said.
“Grocers are anecdotally reporting an uptick in theft, particularly of items such as meat, cheese, over-the-counter medication and energy drinks,” the report said.
Overall, food prices in Canada will increase five to seven per cent next year, the report said.
But some grocery categories will see even larger jumps in 2022.
Dairy prices are anticipated to increase six to eight per cent, a forecast that comes after the Canadian Dairy Commission recommended an 8.4 per cent increase in farm gate milk prices to offset rising production costs.
Restaurant menu prices are also going up six to eight per cent as the food service sector grapples with widespread labour market challenges and rising commercial rents, the report said.
The shortage of workers, especially back-of-house restaurant staff, is expected to drive up wages and costs and lead to higher prices, the report said.
Bakery and vegetables will both increase five to seven per cent while fruit prices will rise three to five per cent.
The smallest price increases will be in the meat and seafood aisles, with a zero to two per cent increase predicted in both categories.
Mike von Massow, a food economist and associate professor at the University of Guelph, said average consumers, who spend about 10 to 11 per cent of their income on food, could respond by choosing cheaper options of the same foods, or cutting from other parts of a household budget, but lower income households don’t have that flexibility.
“If you are lower income or even food insecure, then you’re spending a much higher proportion of your income on food, and there’s just less ability to sort of let other things go.”
To help manage through price inflation, he suggested people be more flexible in their buying habits by choosing foods that are in season, that can be stored better like root vegetables or frozen foods, and that don’t have to be trucked as far.
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.
