ReportWire

Tag: food costs

  • Real money hacks to use when prices feel out of control – MoneySense

    [ad_1]

    In November 2025, Statistics Canada reported that the Consumer Price Index (CPI) was up about 2.2% year‑over‑year, driven by higher grocery and other household prices. Grocery prices alone rose almost 4.7% over the same period—one of the highest increases since late 2023. 

    Meanwhile, surveys show that Canadians are still feeling the squeeze. In late 2025, more than four in five Canadians cited inflation as a top concern, and more than half said their income is not keeping up with rising prices. 

    All of this makes saving money and finding creative ways to stretch the dollar not just desirable, but necessary. Personal finance gurus often offer the same basic advice—drop your daily coffee order, pack your lunch, cancel that subscription—and, yes, those things help. But there are other, more practical ways to put money back in your pocket that you might not be doing yet.

    Below are some everyday hacks based on real tools and experiences Canadians have shared with me—and none of these is sponsored.

    1. Get compensated for flight delays with Airfairness

    Whether you’re heading home for the holidays or trying to grab a last‑minute getaway, flight disruptions are stressful, and expensive. What many travellers don’t realize is that if your flight is delayed more than three hours or cancelled, or you’re denied boarding due to overbooking, you may be entitled to compensation from the airline—and not just with gratuitous food vouchers.

    Airfairness is a Canadian‑based online service that helps passengers claim this compensation—often up to several hundred dollars, without your having to navigate complicated airline rules yourself. It works by checking your flight details against eligibility and then helping submit a claim on your behalf. Companies like Airfairness have helped thousands of travellers recover money they didn’t even know they could claim. 

    If you’ve been out of pocket after a trip went sideways, this is one of those hacks that’s truly money you didn’t know you could have back.

    2. Save on produce with OddBunch.ca

    Grocery prices were one of the bigger pain points for Canadian households in 2025. While the headline inflation rate may look moderate, food prices, especially fresh produce and meat have grown faster than the overall Consumer Price Index. 

    Article Continues Below Advertisement


    OddBunch.ca is a great way to cut that cost without sacrificing nutrition. It’s a grocery delivery service available in most provinces (not in Atlantic Canada—yet) that sources “odd” or imperfect fruits and vegetables that don’t meet visual retail standards but are otherwise perfectly good. Because these items would otherwise go to waste, they’re delivered at a significant discount—and it doesn’t matter if the produce isn’t picture‑perfect.

    Many Canadians I’ve spoken to say their weekly grocery costs dropped noticeably once they started using this and similar services for basics like carrots, potatoes, apples and leafy greens.

    3. Cut prescription costs with InnoviCares

    Prescription drugs are a huge part of many household budgets, and brand‑name medications can be shockingly expensive if you’re paying out of pocket. InnoviCares is a free prescription savings card used across Canada that helps you lower the cost of brand‑name medications by applying eligible savings at the pharmacy. 

    You present the card when your pharmacist fills a prescription, and the discount is applied automatically if your medication is covered. The best part? It works in addition to your existing insurance plan, not instead of it, so you don’t have to choose between the two. It’s not available for every drug, but for those where it is, this can mean tens or even hundreds of dollars saved annually, at no cost to you. Millions of Canadians have already used this card to cut their drug costs without switching brands.

    4. Buy used books (even on Amazon) instead of paying full price

    Let’s be honest, books are expensive. Fiction, non‑fiction, textbooks, manuals—they add up. One simple way to save when you want a book but your budget says “maybe later” is to buy it used.

    Platforms like Amazon’s used books marketplace often list the same title at a fraction of the new‑price cost. The books are typically in good condition, may ship at low cost or for free if you have a Prime membership, and you still get the same content for much less. It’s a small habit, but over time it can save a surprising amount while still letting you read what you want, when you want.

    Earning, saving and spending in Canada: A guide for new immigrants

    5. Time rewards offers on credit and loyalty programs

    Most Canadians carry at least one rewards credit card, and many don’t use them strategically. One easy hack is to pay attention to bonus offers, spot promotions and point multipliers, and to time your purchases accordingly.

    Drug stores, gas stations and large retailers, for example, frequently run 4x or 5x points promotions for certain categories. If you’re planning a pharmacy run or a fill‑up anyhow, doing it during a promotion can dramatically increase your points earnings, which you can redeem for travel, statement credits or gift/grocery cards later. This doesn’t mean spending money you wouldn’t otherwise spend, but it does mean you squeeze more value out of everyday expenses.

    [ad_2]

    Vickram Agarwal

    Source link

  • Canada’s annual inflation fell to 1.6% in September – MoneySense

    Canada’s annual inflation fell to 1.6% in September – MoneySense

    [ad_1]

    The agency said Tuesday its consumer price index for September was up 1.6% from a year ago compared with a year-over-year increase of 2% in August.

    It was the slowest annual pace for inflation since February 2021 when it was 1.1%.

    Gasoline prices in September fell 10.7% compared with a year earlier. Excluding gasoline, the annual pace of inflation was 2.2% in September.

    Meanwhile, rent prices increased at a slower pace in the month but remained elevated as they rose 8.2% compared with a year ago following a year-over-year gain of 8.9% in August.

    Grocery prices increased 2.4%, rising faster than overall inflation

    Statistics Canada said prices for food purchased from stores rose faster than overall inflation as they increased 2.4% in September, the same rate as in August. Prices for fresh or frozen beef gained 9.2%, while edible fats and oils rose 7.8% and eggs increased 5%.

    Prices for food purchased from restaurants rose 3.5% compared with 3.4% in August.

    The inflation report is the last major piece of economic data before the Bank of Canada’s interest rate decision on Oct. 23.

    The central bank, which has a target of 2% for inflation, has cut its key interest rate three times so far this year to bring it to 4.25%.

    [ad_2]

    The Canadian Press

    Source link

  • To save money, Canadians are buying more private-label grocery brands – MoneySense

    To save money, Canadians are buying more private-label grocery brands – MoneySense

    [ad_1]

    She also said her pre-existing notion that private-label food might be lower quality has been challenged.

    “I started to kind of recognize that the store brand, private label isn’t necessarily less quality,” she said.

    Consumers’ perceptions of private-label foods have improved considerably since the last time interest in store brands surged, according to CoBank, which was around the time of the 2008 recession.

    This means the increased share of private-label products in shoppers’ baskets is likely to have more staying power this time around, the report said.
    Empire Co. Ltd., the company behind Sobeys, FreshCo, Safeway and other grocers, said in its 2024 annual report that it plans to continue growing and enhancing its portfolio of store brands.

    In its 2023 annual report, Loblaw noted that customers’ increased focus on value “benefited the Company’s sales due to its strength in private label products, discount banners, and personalized promotions.”

    The company even launched a new discount grocery banner this year under its No Name brand.

    Grocers not only often get a better margin on private-label products but also see them as a sort of “loyalty program” that can keep shoppers coming back, said Chapman.

    He thinks retailers will work hard to keep private-label sales strong through new products, marketing, promotions and shelf space.

    [ad_2]

    The Canadian Press

    Source link

  • As food costs rise, our grocery shopping habits are changing – MoneySense

    As food costs rise, our grocery shopping habits are changing – MoneySense

    [ad_1]

    Shoppers are switching stores or travelling farther for better deals

    For some Canadians, saving money on groceries involves switching stores—something the major grocers have taken note of, as they’ve been expanding their discount store footprints to capture demand for better deals. 

    Some shoppers are travelling a little farther for their groceries, even going to multiple stores to take advantage of all the available promotions, while others are trying to prioritize spending their money at independently owned grocers.

    Craig Treulieb in Kitchener, Ont., said instead of doing the bulk of his shopping at Superstore, he has diversified his shopping trip. He now takes a bit more time, hitting up Food Basics and local independent stores. 

    “We used to not be super concerned about shopping deals and generally found Superstore’s prices to be OK, good enough. And it was convenient doing one shop,” he said. 

    Treulieb has also signed up for a weekly farm vegetable box, and is buying more in bulk at Costco. 

    Michael Ianni in Vancouver said he grew frustrated with the prices at his nearby Safeway, and has started travelling farther to go to independent small stores in his area.

    “I go and take a nice stroll on Commercial Drive, and I find other stores, and there’s sometimes cheaper prices or comparable,” he said. 

    “For me, it just feels better to support them. And sometimes if you look, you can find better deals.” 

    [ad_2]

    The Canadian Press

    Source link

  • Food inflation in Canada: Who Canadians blame for rising prices – MoneySense

    Food inflation in Canada: Who Canadians blame for rising prices – MoneySense

    [ad_1]

    A new Leger survey found that almost 30% of Canadians believe food inflation has been primarily caused by grocery stores trying to increase profit margins. Another 26% think it’s mostly due to global economic factors, while one in five blame the federal government.

    Inflation on groceries was 1.4% in April and helped drive overall inflation lower to 2.7%, Statistics Canada said.

    However, even low inflation still means prices are going up. And over the past three years, grocery prices have risen 21.4%, according to the agency.

    The major grocers have said they did not unduly profit from inflation, amid political and public pressure over the rising cost of food and other necessities.

    More than half of Canadians support Loblaw boycott

    A group of consumers organized a boycott of Loblaw-owned stores in May over frustrations with higher prices and industry concentration.

    Seven out of 10 Canadians polled said they are aware of the ongoing boycott, and 58% said they support it, but only 18% say that they or someone in their household have joined the boycott.

    The poll highlights rural and urban residents’ differing views on the boycott, and suggests it’s more difficult for those living outside an urban area to participate in a boycott of Loblaw-owned grocery stores.

    Urban residents polled by Leger were more likely to say they support the boycott than suburban and rural residents, and were more likely to be participating in it as well.

    [ad_2]

    The Canadian Press

    Source link

  • How to beat inflation: First, tackle lifestyle creep – MoneySense

    How to beat inflation: First, tackle lifestyle creep – MoneySense

    [ad_1]

    The other day I had to run out to buy cooking oil to make dinner. I knew which brand I wanted because it was a good size and it was cheap—$5 when I bought it about three months ago. I was surprised and annoyed to find out that the same bottle of oil, which was the exact same size and shape with the same type of oil in it, was now $7. 

    It had gone up $2 in the last three months. Now, that doesn’t sound like a lot since it’s “only two dollars,” which shouldn’t affect your budget. But add in other expenses like the cost of gas, other grocery items and rent, and those “tiny” increases add up. Inflation really makes the wallet hurt.

    Lifestyle creep versus inflation

    We spoke to two experts to find out how to deal with increases in household spending, in terms of both practical steps and the emotional side. Nearly 50% of Canadians say that money worries negatively affect their mental health, according to an Ipsos survey. First, we need to look at the difference between inflation and lifestyle creep. Inflation is when prices of goods and services increase with a corresponding decrease in the purchasing power of your money. 

    Lifestyle creep is when your standard of living improves as your income rises and former discretionary or luxury items become expectations. Think having all the entertainment streaming options instead of one or two because now you can afford it.  

    You can control lifestyle creep to an extent through budgeting and being aware of your spending habits. With inflation, there’s only so much you can control. If prices increase for household necessities, you end up spending more, whether you like it or not. 

    You can switch to cheaper items to save money, but at a certain point you may be sacrificing usability for price. Think one-ply toilet paper; it’s cheaper but you go through it faster, leading to spending more money. (Also, it doesn’t feel great.) 

    Since it feels like everything is going up except our salaries, how can you rein in the involuntary lifestyle creep and get some sense of control over your money? 

    How to avoid lifestyle creep and cut costs

    Chantal Chapman, CEO and co-founder of financial literacy education firm The Trauma of Money in Vancouver, says to not let a scarcity mindset sabotage your spending. “If there was a time in your life when your income was low and you really had to restrict [your spending], that actually can lead to compulsive behaviours such as overspending.”

    “It comes down to discipline,” says Elke Rubach, president of Rubach Wealth in Toronto. She admits that it does suck, saying, “I think the only blanket advice we can use for everyone is to sit down and do a reality check, because just feeling the pinch isn’t a healthy thing, because then you’re like pinching, pinching, pinching.”

    She says one way to counteract the pinching is to check what’s causing it. “Is it actually the economy or is it something you can control? Is it eating out? Or is it that you’re buying groceries but things are going to waste? Are you buying the right things?”

    How to save money on groceries in Canada

    Another tactic is to shop at the local stores in your neighbourhood, says Rubach. With the Loblaws boycott proposed for May, she says, shopping local is “a very different approach. It’s not a negative. You’re doing the same action, to be clear, but instead of looking at it as ‘let’s screw Loblaws’—because they’ll just bring in technology and fire employees—look at your typical grocer at the corner of the street. They’re a lot cheaper.”

    She also says shopping every few days can help keep costs down, especially if you live alone or have a small family. That way, you can plan your meals, reduce food costs and waste, and take advantage of sales. 

    Chapman says that even if you can afford price increases, try to contain them by limiting your splurges to certain purchases. 

    She says that while it’s nice and a privilege to be able to afford what you want and need, don’t let that dictate your spending. “You can say, ‘I don’t need to worry about how much I’m spending on my coffees,’ but maybe choose one area versus just applying that to everything if you are concerned about your budget.”

    How to save money on clothes

    Rubach advocates for second-hand clothing, swaps and hand-me-downs, especially when it comes to children. “There’s no need to buy new things every school year,” she says. “I’m guilty of doing that when my first child was born, spending ridiculous amounts of money on clothes.” Facebook marketplace or local FB groups are a good source for clothes and other household goods. Check your local neighbourhood for clothing swaps. 

    When faced with inadvertent lifestyle creep, we can revisit our budgets and attitudes to spending—at least until inflation, prices and interest rates slow down. 


    It pays to know! Get FREE MoneySense financial tips, news & advice in your inbox.
    Subscribe now

    More about spending:

    The post How to beat inflation: First, tackle lifestyle creep appeared first on MoneySense.

    [ad_2]

    Renée Sylvestre-Williams

    Source link

  • Grocery inflation in Canada: New report for spring 2024 – MoneySense

    Grocery inflation in Canada: New report for spring 2024 – MoneySense

    [ad_1]

    Spring 2024 outlook on grocery food inflation for Canada

    The outlook for food and beverage manufacturers this year is more positive than last year, FCC said, though some sectors still face headwinds amid elevated interest rates and tighter household budgets. “However, population growth and stabilizing—in some cases, falling—input costs are providing optimism for margin improvement for 2024.”

    The organization’s annual food and beverage report offers up forecasts for consumer spending, as well as specific food items such as sugar and flour.

    What is Canada’s inflation on food?

    Canada’s annual inflation rate was 2.8% in February, and grocery prices were one of the main factors pushing it lower. Grocery inflation was 2.4% that month, down from 3.4% in January, as the cost of many items declined year over year. However, slowing inflation doesn’t mean prices overall are dropping. Statistics Canada noted in its latest inflation report that between February 2021 and February 2024, grocery prices rose 21.6%.

    How are Canadians dealing with rising food prices?

    As they grapple with higher prices, not just on food but on shelter and other daily costs, Canadians have been trying to cut back their spending on food and beverages, FCC said. They have been buying more items on sale, gravitating toward less expensive brands, buying more canned and frozen foods, shopping more at discount retailers and simply buying less food.

    “Many consumers say the impact of high interest rates are just beginning to affect their spending,” FCC said.

    As shoppers have become more price sensitive, FCC said processors have been responding by modifying package sizing and substituting less expensive inputs.

    Canadians have also been cutting back on alcohol, the report said. It forecasts a decline in alcohol sales and manufacturing volumes this year.

    Will food prices go down?

    The report said some food products are expected to go down in price this year, such as flour, after a sharp increase over the last couple of years. This will translate to lower bakery and tortilla manufacturing selling prices by the end of the year.

    [ad_2]

    The Canadian Press

    Source link

  • Why is chocolate getting so expensive? – MoneySense

    Why is chocolate getting so expensive? – MoneySense

    [ad_1]

    Why is chocolate getting so expensive? A lot of ingredients go into a chocolate bar, including sugar and milk, but the one which gives chocolate its namesake—cocoa—is in particularly short supply at the moment.

    Thanks to a combination of bad workplace conditions, climate change and insatiable global demand, cheap chocolate will be in very short supply, and experts aren’t sure when it’ll improve. Here’s how we got here, and how you might be able to get the most bang for your buck the next time you’re shopping for chocolate.

    What makes cocoa so expensive?

    Basically, there isn’t enough of it on the market. Over half of the world’s cocoa, the key ingredient in chocolate, is grown in just two West African countries—Côte d’Ivoire and Ghana. If you count all countries in the West African “cocoa belt,” it comes out to around 80% of the world’s supply.

    Most of the farmers growing this cocoa are very poorly paid, which has some seeking alternative sources of income for their land. According to a 2023 report from Corporate Accountability Lab on West Africa’s cocoa industry, hired workers in Côte d’Ivoire earn about USD$0.89 to USD$1.34 per day. Farmers sometimes cannot afford to hire paid help, and rely on family members to harvest their crops. To make extra money, farmers sometimes give their fields to illegal gold miners for cash, which degrades production.

    To make matters worse, Côte d’Ivoire and Ghana are facing disastrous growing conditions for cocoa. Last year’s El Niño weather event left the West African region hotter than normal. Unpredictable rainfall mixed with dry spells is also wreaking havoc on cocoa tree growth. And swollen shoot disease, which destroys cocoa trees and is spread by insects, is getting worse in Côte d’Ivoire.

    With the global market so dependent on this region, any disruptions mean rising cocoa prices. This week, the going rate for cocoa beans nearly hit USD$10,000 a ton on the New York Futures Exchange. (Futures are derivatives; they’re contracts to buy or sell an asset for a set price at a later date.) Just last summer, it was around USD$2,500 a tonne. And demand isn’t letting up. The global chocolate market is expected to grow by about 4% annually between 2024 and 2030, according to Grandview Research.

    Canadian shoppers also have to deal with the various reasons why groceries are expensive—not just chocolate. Not only is Canada’s grocery market very concentrated, and therefore more vulnerable to price-fixing, but the sheer size of our country means it isn’t cheap for food suppliers to send their products to market.

    Add all of these problems together, and Canadian chocolate shoppers will be hard-pressed to find any deals this year.

    [ad_2]

    Brennan Doherty

    Source link

  • 5 ways young Canadians can prepare financially for what awaits in 2024 – MoneySense

    5 ways young Canadians can prepare financially for what awaits in 2024 – MoneySense

    [ad_1]

    3. Food prices will rise, but at a slower pace

    Compared to previous years, food prices should stabilize in 2024. However, keeping your kitchen stocked will still keep your grocery bill high. According to Canada’s Food Price Report 2024, overall food prices are expected to increase by 2.5% to 4.5% over the course of next year (whereas food inflation jumped by 4.7% in November 2023). So, if you’re a single adult who spent roughly $375 on food per month this year, you can expect to shell out from $385 to $392 monthly by the end of 2024. 

    The Food Price Report suggests that you can expect baked goods, vegetables and meats to take a big bite out of your budget. However, you’ll get some relief with canned goods and dried pasta. The good news is that food prices will increase at a more gradual pace than in 2023.

    What you can do: Consider meal planning 

    During the pandemic, I started meal planning as a strategy to deal with grocery costs. It’s been helpful in ensuring that our family stays within our food budget and doesn’t fall into the temptation to order takeout. Meal planning consists of deciding what you will eat for the upcoming week and then adding only the ingredients you need to your grocery list. 

    Personally, I like to make extra lunch portions when preparing dinner, which helps cut back on costs. Another option is to buy items in bulk when they go on sale and then divvy them up into smaller quantities and store them in the freezer. This works well for sliced fruits, vegetables, meats and seafood. 

    4. Consumer debt will continue to grow

    Gen Z will continue to face financial pressure in 2024, so managing debt will become even more important. Between Q3 2022 and Q3 2023, the average credit card balance in Canada increased by 9%, according to TransUnion Canada. The increase was fueled by an increase in the cost of living and the cost of credit, thanks to higher interest rates. Unless the Bank of Canada starts reducing interest rates and daily living expenses start to come down, it’s likely that debt will continue to grow in 2024.

    What you can do: Start a side hustle to pay off debt

    To become financially secure, 40% of Gen Z are interested in generating more sources of income, such as starting a side hustle, according to a BMO survey. Considering there’s only so much you can do to cut expenses, you might want to consider growing your income so you can more easily pay down your debt. 

    Once you have some disposable income, prioritize paying off high-interest debt, such as credit card debt, which can help to squash your debt load. If you’re carrying a monthly balance, call your credit card provider and ask if they can lower the interest rate. If you’re fresh out of school and borrowed money to pay for your studies, it’s a good idea to focus on repaying your student loans.

    5. Travel will rebound in spite of high travel costs

    Despite rising travel costs, young travellers are eager to escape the daily grind. Many young people would rather spend their hard-earned money on experiences instead of goods. Regardless of being in a tight financial situation, 2024 may be the year many Gen Z make their dream vacations happen.

    [ad_2]

    Sandy Yong

    Source link

  • How Canadians can save money on gas, grocery, cellphone and other home bills – MoneySense

    How Canadians can save money on gas, grocery, cellphone and other home bills – MoneySense

    [ad_1]

    Electricity and hydro savings tip: Are the lights on?

    You already turn off the lights when you leave a room or turn down the thermostat at night, right? In addition to that, Barry Walker, residential business development manager for efficiencyns.ca, says to check lightbulb packaging for LED wattage: “For example, it may read seven watts LED and say it’s equivalent to 60 watts of an incandescent light. So you’re only using a fraction of the energy to get the same amount of light.” He says that can save you 25% of the cost of lighting on your electricity bill. 

    Other cheap and cheerful ways to save on lighting and other energy costs: Buy motion sensors, smart power bars and electrical timers. “These are small things, but they’re inexpensive and they will pay for themselves very, very quickly.”

    Electricity and hydro savings tip: Consider a heat pump

    The biggest cost on Candians’ electricity bills is home heating, and heat pumps are becoming popular among Canadians because of government incentives to help with the costs. Walker installed a heat pump 20 years ago to replace his oil and electric heating in his 60-plus-year-old home in Halifax. “I’m a good old Scotsman and I kept every bill—my total energy costs dropped 40%,” he says. “I use thermal storage for my backup, and that heat pump is paying for itself three-fold now.” 

    Water savings tip: Get efficient 

    Plus, the heat pump can help save on the second biggest cost on your electricity: hot water. “Your payback will depend largely on the volume of hot water your household uses,” Walker says. “If you’ve got teenagers taking three showers a day, then the payback on that heat pump hot water tank will be fairly quick.” If a heat pump is too big of a commitment, you can opt for a more energy efficient hot water heater (even if you rent yours), says Walker. 

    Also, use cold water detergent to wash clothes and check for leaky taps. If you pay for municipal water, where you pay based on how much you use, that could be a sinkful of money a day going down the drain, he says. 

    How to save on internet and cable bills: Renegotiate service agreements

    Renegotiate or bundle internet and cable services, and examine your home insurance and auto insurance, suggests Scorgie. Also talk about usage, too. You might be in the wrong plan, as things have changed since 2020, and you might not need as much as you did during the lockdowns. Keehn says: “That’s hundreds of dollars a year. People may say, ‘But I’m going to have to sit on hold with the phone company for hours.’ Maybe you will, but just sit on hold while you’re watching Netflix,” she suggests. (Speaking of Netflix, here are the best streaming services in Canada.)

    How to save on cell phone bills: Check your bill and cut what you don’t need

    Check your phone bill: Has a signup bonus promotion expired because you forgot to renew it, resulting in higher fees? Are you paying for directory listings you don’t use? Those charges add up, notes Keehn. Also, look into family plans and getting rid of services you don’t use, like international calls for example. Also, in your settings, check for the apps that are running in the background, which can eat up a ton of data unknowingly when you’re out and about not connected to wifi. 

    How to save on car expenses and maintenance

    We don’t need to tell you that owning a vehicle is expensive. There’s maintenance, gas and more.

    [ad_2]

    Wendy Helfenbaum

    Source link

  • From groceries to flights to mobile data: Why is Canada so expensive? – MoneySense

    From groceries to flights to mobile data: Why is Canada so expensive? – MoneySense

    [ad_1]

    That doesn’t mean everything costs more in Canada, says David Soberman, a professor of marketing and Canadian national chair of strategic marketing at the University of Toronto’s Rotman School of Management. Canadians may pay more than Americans for the same basket of goods, he says, but we pay less than people in some other countries, like Switzerland. 

    Why do we pay what we do? That’s a difficult question to answer. The reasons are complex and vary depending on the type of good or service. Let’s look at some of the main contributors to Canada’s cost of living, why they are as expensive as they are, and steps you can take to reduce those costs. 

    Why are groceries so expensive in Canada?

    There are a few reasons groceries cost so much in Canada, says Soberman. It’s expensive for companies to ship food products across a country as large as ours, and those costs are reflected in what you pay in stores, he says. But a highly concentrated grocery industry is also a big contributing factor. 

    Canada’s grocery market is dominated by just a few companies. Domestically, there are three big players: Loblaws, Metro and Sobeys. (Some chains, such as Save-On-Foods in Western Canada, compete on a regional basis.) The next largest retailers for grocery sales are Walmart and Costco. Together, these five companies account for more than three-quarters of all food sales in Canada, according to Canada’s Competition Bureau. In 2023, 49% of Canadians report buying groceries from Loblaws or one of its sister stores. 

    Critics argue such concentration allows the dominant companies to participate in anti-competitive practices that ultimately harm consumers through higher prices. In grocery, this takes the form of fixing bread prices, preventing competitors from selling certain products, or collectively deciding when to freeze grocery prices—and when to unfreeze them. It’s a problem experts say applies to other industries, such as telecommunications and air travel. 

    When Canada’s Competition Act was introduced, in 1986, there were at least eight large grocery chains in Canada, each owned by a different company. Since then, more than a dozen major mergers and acquisitions have reduced the level of competition. Today, three big supermarket companies own several smaller chains, including discount brands that could be mistaken for rivals: Loblaws has No Frills, Sobeys has FreshCo and Metro has Food Basics, for example. 

    Source: The Competition Bureau of Canada.

    How does Canada allow for three big grocers to reign? “The law in Canada typically will not allow the Bureau to intervene in these deals, as they are generally seen as unlikely to have a significant impact on prices and other dimensions of competition,” states a Competition Bureau report. “In the case of a major city or suburb, with five or six different grocery stores nearby, it can be hard to prove that removing one option will cause prices to go up significantly.”

    Another underlying issue is that, for many decades, the prevailing view was that “as a small, but large country, we need to accept lower levels of competition to achieve a scale that is necessary to serve the various markets,” says Keldon Bester, executive director of the Canadian Anti-Monopoly Project (CAMP). Over time, that belief has led to fewer and fewer options for consumers, he says.

    [ad_2]

    Justin Dallaire

    Source link