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Published: January 31, 2024
The federal minister said he spoke with one of the international grocery stores on Tuesday as part of his efforts to attract new banners to the Canadian food sector, although he did not mention any names.
"I can't tell you everything, otherwise you won't ask me any more questions next week. Mr. Champagne told reporters: I was in a conversation with one of these stores this morning."
The minister met with Canadian grocers in the fall regarding food price inflation. He urged them to develop plans to stabilize food prices or face consequences, including possible tax measures.
Champagne recently expressed his disappointment about the lack of transparency from grocers regarding their intentions. However, the elected Liberal official remained silent on whether the federal government plans to punish them for that.
The major grocery companies have so far not been transparent enough about the reasons for food price inflation, nor have they often provided regular updates on initiatives aimed at stabilizing food prices, he said in a letter addressed to Competition Commissioner Matthew Boswell on Monday.
The Metro chain also announced on Tuesday profits of $228.5 million in the first quarter, with sales rising by 6.5%.
In a press conference, President and CEO Eric La Fleche said that retail price increases would begin to be implemented in grocery stores as early as next week, after a period of prohibition on supplier price increases that applies to the entire sector.
La Fleche had earlier stated that Metro had not changed its prices due to the meeting with Minister Champagne.
Champagne’s letter to the Competition Commissioner suggested conducting a follow-up assessment of the grocery sector, now that the office has new powers to summon companies for information.
He wrote: "I also look forward to discussing your assessment with you regarding the potential scope and feasibility of additional market research in the grocery sector."
The Competition Bureau also released the results of its previous study in June, stating that grocer cooperation was variable and incomplete.
The report concluded that concentration in the grocery sector has increased in recent years and that the largest grocery stores have increased their profits from selling food products.
The bureau also said that the Canadian food sector needs more competition to help keep food prices low, give shoppers more choices, and encourage new arrivals.
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