The Liberal government says it will crack down on high food prices by telling major grocers to reduce them or face sanctions.
“What we’re saying to them is enough is enough,” Industry Minister François-Philippe Champagne said on Sept. 14 at the closing of the Liberal caucus retreat in London, Ontario.
The minister is set to meet Canada’s five major grocers in Ottawa next week to discuss a way forward on how to address food inflation. Those include Loblaw, Empire, Metro, Costco, and Walmart.
Mr. Champagne said the grocers were not “invited,” but rather “told” to attend a meeting with the federal government.
Prime Minister Justin Trudeau accused the big grocers of making “record profits” while Canadians are “struggling to put food on the table.”
He added that if grocers don’t cooperate, his government will take action and it is not “taking anything off the table.”
“Let me be very clear: if their plan doesn’t provide real relief for the middle class and people working hard to join it, then we will take further action and we are not ruling anything out, including tax measures,” said the prime minister.
Canadians are being hit by an affordability crisis spurred by inflation, driven in part by excess demand generated by government policies, such as unprecedented stimulus during COVID-19, elevated immigration, and tax on fuel.
The Epoch Times reached out to grocers for comment and they deferred to the Retail Council of Canada.
“The price on grocery shelves is driven by increased vendor costs from food manufacturers and producers, itself caused by a host of global factors—including supply chain challenges, the war in Ukraine, fuel prices, and climate events,” said Retail Council spokeswoman Michelle Wasylyshen.
Ms. Wasylyshen said grocers are open to having good faith discussions with the government, but says those discussions cannot be credible if they don’t involve other stakeholders in the supply chain.
Mr. Champagne said he has been working with agri-food professor Sylvain Charlebois from Dalhousie University to address food inflation issues.
Reached by phone, Mr. Charlebois expressed concerns about the government’s intent to intervene in the market.
“I’m a bit worried honestly,” said the professor about the government’s approach. “I’m really not comfortable with that,” he added in commenting on the government’s decision to threaten sanctions.
Mr. Charlebois said that as an economist he’s really worried by large brands leaving Canada, such as Nestlé frozen foods and Kleenex paper tissues.
“If we want to increase competition, the last thing we need is an interventionist state,” he said.
Mr. Charlebois remarked that major grocers are indeed making good profits, but that not all of them are in the same situation, with some like Loblaw having an integrated business model whereas Metro is focused on food.
