grocery

Tuesday September 19, 2023

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Tuesday September 19, 2023

Trudeau’s Desperate Bid to Salvage Sinking Polls and Soaring Food Prices

August 2, 2023

As Trudeau’s government grapples with plummeting poll numbers, the decision to summon CEOs from Canada’s grocery giants — Loblaw, Sobeys, Metro, Costco, and Walmart — to a meeting in Ottawa has become a high-stakes gamble in the quest to address the pressing issue of rising living costs. With housing and grocery prices skyrocketing, Trudeau is under immense pressure to demonstrate effective leadership, as recent polls show his government facing its worst ratings since 2015.

Trudeau’s announcement to hold the grocery CEOs accountable comes after weeks of relentless criticism from the opposition, particularly the Conservatives, on the handling of affordability issues. In a bold move, Trudeau warns these corporate leaders that they have until Thanksgiving to present a plan to stabilize food prices, with the threat of potential tax measures looming if they fail to deliver.

News: Grocer summit to ‘take the heat off’ Ottawa, not tackle food inflation: experts  

March 8, 2023

This shift in stance reflects a newfound urgency, given that Trudeau had previously dismissed the idea of a windfall tax on grocery chains as “simplistic.” However, mounting public frustration and political survival seem to have swayed his perspective.

The parliamentary committee’s concerns about grocery giants profiting excessively from food inflation and the Competition Bureau’s call for increased competition have further fueled the government’s resolve to take action. Amendments to the Competition Act are in the pipeline to bolster the bureau’s authority to address market issues, fostering competition that could benefit consumers.

Led by Industry Minister François-Philippe Champagne, discussions with grocery CEOs will focus on solutions, particularly with the top five grocers that dominate 80 percent of the market. Critics, including NDP Leader Jagmeet Singh, argue that Trudeau’s plan lacks specificity and accountability, raising the challenge of translating discussions into meaningful actions for Canadians.

News: Minister says Canada’s largest grocery chains have agreed to ‘work’ on stabilizing food prices  

December 8, 2016

Ultimately, the outcome of this meeting holds both immediate and long-term implications — not only for grocery prices but also as a litmus test for Trudeau’s leadership. The nation watches closely to see if this initiative will be a turning point or merely a desperate attempt to regain popularity amid a sea of sinking poll numbers. One thing is clear: Canadians are expecting tangible results that reflect positively on their household budgets. (AI) 

 

Wednesday August 2, 2023

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday August 2, 2023

Cry baby in the shopping cart

July 18, 2023

Inflation has been a significant concern for the Canadian economy, impacting all aspects of daily life, with grocery prices being hit the hardest. In recent months, the cost of living has surged by almost six percent, while grocery prices have soared nearly double that pace, leaving consumers feeling the pinch. As prices rise, the profits of big grocery chains have reached record highs, further exacerbating the disparity between their financial success and the plight of their low-wage workers.

Front-line grocery store workers at Metro, represented by Unifor Local 414, have taken a bold stance by going on strike, demanding fair treatment and wages that align with the company’s impressive profits. Over 3,000 workers across 27 Metro locations in the Greater Toronto Area are united in their fight for better pay and improved working conditions. Workers, like Tammy Laporte, a dedicated produce and fruit clerk with 25 years of service, want their contributions to be acknowledged through fair compensation.

Analysis: High stakes in Metro strike  

June 20, 2023

The issue of low wages is prevalent among grocery store employees, forcing many to live in debt and struggle to make ends meet. Workers like Austin Coyle, a meat manager, are among the highest paid but still find it challenging to afford basic living expenses in the high-priced city of Toronto. The situation is so dire that some employees are forced to turn to food banks because they cannot afford to buy groceries from the very stores they work in.

The grievances of the workers are not without cause. During the pandemic, grocery chains, including Metro, earned praise for their “hero pay” bonuses for front-line workers. However, these bonuses were swiftly cut once the companies saw an opportunity to boost their profits. This move, which came amidst record earnings for the grocery barons, further highlights their prioritization of financial gains over the well-being of their employees.

March 8, 2023

Despite recent negotiations, which saw a tentative deal between Metro and the union, Unifor, the proposed wage increases fall short of meeting the workers’ immediate needs. The workers’ demands for a $2-per-hour wage increase in the first year were not met, leading to the rejection of the deal. While the grocery chains claim that they are offering wages above inflation rates, it fails to address the workers’ struggles in affording basic expenses amidst soaring CEO compensations.

While big grocery chains assert that they are not profiting from inflation, experts argue that the current economic climate provides them with cover to raise retail prices. As prices increase, the profits of these companies surge, despite their claims of maintaining slim profit margins. Such practices further widen the gap between the grocery barons’ financial success and the difficulties faced by their employees.

December 8, 2016

The actions of big grocery barons during the inflation crisis have brought their priorities into question. Their record profits and reluctance to address the immediate needs of their low-wage workers highlight a significant disparity in wealth distribution. The brave stand taken by front-line grocery store workers at Metro illustrates the urgent need for fair wages and improved working conditions. As consumers, it is essential to support these workers in their fight for fairness and advocate for greater accountability from the grocery industry to ensure that profits are not amassed at the expense of hardworking employees. (AI) | Also printed in the Toronto Star.

 

Tuesday June 20, 2023

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Tuesday June 20, 2023

Grocery Monopoly: Big Chains Face Windfall Tax and Code of Conduct Scrutiny

June 18, 2020

In a classic case of Monopoly come to life, the parliamentary agriculture committee is calling for Ottawa to slap a windfall tax on the owners of Big Grocery if they dare to generate excess profits on food items. These wealthy Uncle Milburn Pennybags-like figures must be feeling the heat as the committee released its report on June 13, capitalizing on Canadians’ frustration with rising inflation during their weekly grocery run.

The committee highlighted that while the food and beverage retail sector has been dealing with supply chain issues and labor shortages, they conveniently managed to record an increase in net income. This has led to speculation about the so-called “price gouging” by Canada’s five largest retailers, who hold a whopping 80 percent of the grocery market. It seems the committee is playing the role of Detective Weak Police, wondering if anyone at the Competition Bureau is actually paying attention to what’s happening right before their eyes.

Analysis: Food retail sector facing big changes

March 8, 2023

However, the owners of these Big Grocery chains were quick to defend themselves. They appeared before the parliamentary committee in March and took the oath to solemnly swear that they weren’t profiteering off higher grocery prices. Galen Weston, the president of Loblaw, one of the major players, even had the audacity to argue that “reasonable profitability” is simply part of running a successful business. Oh, how noble of them! Apparently, those profits are just being reinvested into the company and, of course, into the oh-so-needy country.

But if the government decides to implement this windfall tax, it will surely hit the grocers where it hurts the most—their bottom lines. Of course, this hinges on the findings of the Competition Bureau, which is currently conducting a study of food inflation. As expected, the bureau released a statement listing various factors that could have impacted food prices, including extreme weather, higher input costs, geopolitical events like Russia’s invasion of Ukraine, and supply chain disruptions. They seem to be exploring every excuse in the book rather than addressing the elephant in the room—questionable competition factors.

April 13, 2023

Not everyone is convinced that a windfall tax is warranted, though. Gary Sands, the vice-president of government relations at the Canadian Federation of Independent Grocers, adamantly denies any evidence of “greedflation.” He argues that price increases are not limited to the big grocery chains but are apparent in smaller stores as well, as everyone is simply responding to supplier price hikes. Sands presented his case to the committee and warned them of the slippery slope they’re treading on. He rightly points out that if retailers face a windfall tax, suppliers should be subjected to the same treatment, given the interconnected nature of the industry.

The government, however, wants everyone to know that they’re not just picking on grocers. No, no, they’re committed to ensuring that everyone pays their “fair share” of taxes. Adrienne Vaupshas, the press secretary of the federal minister of finance’s office, had the audacity to claim in an email statement that the government has imposed taxes on other companies like banks and insurers in the past. Well, that makes it all fair and square, doesn’t it?

News: Ottawa should consider windfall tax on grocery profits if they’re found to be excessive: report  

May 10, 2022

According to Michelle Wasylyshen, the spokesperson for the Retail Council of Canada, the industry’s price hikes are justified by various macroeconomic trends and have nothing to do with greed. She blames the rising costs of feed, fuel, and fertilizer, along with supply chain disruptions, labor shortages, and climate events, as the real culprits behind food price inflation. Wasylyshen warns against excessive government intervention in the retail food business, claiming there’s no evidence to suggest that meddling in operational aspects would do anything to benefit consumers.

But of course, there are always those who believe that government intervention is the holy grail to control Canada’s grocery oligopoly. Advocates have been clamoring for a grocery code of conduct, similar to those in Australia and the United Kingdom, to rein in the power of Big Grocery. Finally, after years of deliberation and consultation with industry players, it seems that the code is nearing completion. Agriculture Minister Marie-Claude Bibeau even boasts that it could be implemented before the end of 2023. However, the agriculture committee insists that the code must be mandatory and enforceable, or else there’s no guarantee that all the major grocers will willingly sign on. (AI)

 

Wednesday March 8, 2023

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday March 8, 2023

Consumers, experts weigh in on supermarket CEO showdown in Ottawa

February 2, 2023

The heads of Canada’s major grocery chains will be tasked with answering questions at the House of Commons this week about the rising cost of food.

While the people paying high prices are hoping for accountability, one industry expert in the Maritimes said that might not be what they get.

Loblaws president Galen Weston, along with the CEOs of Metro and Empire Company Limited — which owns Sobeys — are set to testify before the Standing Committee on Agriculture and Agri-food Wednesday.

While Sylvain Charlebois of the Dalhousie University agri-foods lab was skeptical about this, he said grocery giants have to at least show their faces.

“I think it’s going to be political theatre,” Charlebois said. “Out of respect [to Canadians], I think CEOs needed to explain themselves.”

A seniors advocate in Sydney is among the shoppers looking for answers.

Bernie Larusic says at least 30 per cent of the older population he represents has been hit hard by high grocery prices.

Thursday December 6, 2018

“I don’t know if ‘ripped off’ is the right term, but I can tell you they can’t afford the way things are going,” he said.

On Monday, officials from the Dairy Processors Association of Canada, along with Food and Beverage Canada and Maple Leaf Foods, were expected to be grilled by members of Parliament.

“Certainly, the one thing that I would want to see the committee doing is to understand how to make the Canadian market more competitive to help consumers over the long run,” Charlebois said. “Right now… things are pretty cozy for grocers.”

Back at his home in Sydney, Larusic said seniors organizations in Nova Scotia will bring similar complaints to government.

“I think people should do the same thing,” he said. “They should call their MPs and MLAs indicating that things are tough here. What can you do to help us?” (CTV) 

From sketch to finish, see the current way Graeme completes an editorial cartoon using an iPencil, the Procreate app, and a couple of cheats on an iPad Pro …

 

Thursday February 2, 2023

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday February 2, 2023

Loblaw ends No Name price freeze, vows ‘flat’ pricing ‘wherever possible’

December 8, 2016

Loblaw will not be extending its price freeze on No Name brand products, but vows to keep the yellow label product-pricing flat “wherever possible.”

“The more than three-month price freeze ends January 31 — but we’re not done,” a Loblaw spokesperson said in an email to CTV News Monday. “Looking ahead, we’ll continue to hold those prices flat wherever possible, and switching to No Name will still save the average family thousands this year.”

September 29, 2022

Loblaw announced in mid-October it would freeze prices for 1,500 products sold under its No Name private label. At the time, Loblaw chairman and president Galen G. Weston said the price of an average basket of groceries was up about 10 per cent, something he said was much out of Loblaw’s control.

The Canadian retailer noted Monday, food inflation has continued to increase, costing the company more to stock shelves.

The country’s inflation rate slowed again in December 2022 to 6.3 per cent. However, Statistics Canada said grocery prices were up 11 per cent for the month compared to the year before. This was down a tick from November’s 11.4 per cent.

June 18, 2020

Canada’s grocery chains have been under fire for making steady profits amid high inflation. Third-quarter profits at Loblaw Companies Ltd rose nearly 30 per cent compared to a year ago. Quebec grocery giant Metro Inc. reported a first-quarter profit of about 11 per cent. (CTV) 

Canada’s largest grocer is stepping up its public relations strategy to convince people that it is not to blame for higher prices. But experts say consumers grappling with food affordability are in no mood to hear that message.

On the day that its 11-week price freeze on No Name products ended on Tuesday, Loblaw Cos. Ltd. -0.13% decrease was active on Twitter, responding to people who criticized the company with messages explaining that “food inflation is a global issue” and that price increases were the fault of suppliers who had themselves raised prices. Other Loblaw tweets heralded the price freeze for helping consumers “at a time they needed it most.”

But the defensive tone didn’t sit well with many, and is emblematic of a larger communications challenge facing Canada’s grocery retailers, who have reported significant increases in both sales and profits amid inflation. As the last point of contact in a sprawling supply chain, grocers have been a target for shoppers’ understandable anger over the affordability of basic necessities. (The Globe & Mail) 

Thank you Bryan Trussler for the inspiration for this cartoon.