Ottawa summons major grocery CEOs to talk lowering food prices — or else
Global News
The companies are being tasked with coming up with a plan to stabilize prices by Thanksgiving, Prime Minister Justin Trudeau said, warning the government is prepared to act.
The federal government is summoning the heads of Canada’s major grocery chains to Ottawa this fall to begin discussions on a plan to lower food costs for Canadians, as inflation continues to impact grocery bills.
The companies are being tasked with coming up with a plan to stabilize prices by Thanksgiving, Prime Minister Justin Trudeau said as he marked the end of the Liberal cabinet retreat in London, Ont., on Thursday, ahead of Parliament’s return next week.
Trudeau said if the grocers fail to come up with a plan that provides “real relief” for middle- and lower-class Canadians, the government will take further action that forces the companies to do so.
That could include tax measures, he warned.
“It does not make sense in a country like Canada that our largest grocery chains should be making record profits while Canadians are struggling to put food on the table and we’re seeing record usage of food banks,” Trudeau said.
The prime minister said the heads of the country’s five top grocers — Loblaw, Empire Co., Metro, Walmart and Costco — will have the best overall view of their industry and what can be done to lower costs. Those five companies make up roughly 80 per cent of Canada’s grocery market.
For months on end, food price inflation has outpaced overall inflation, which was 3.3 per cent in July. Food inflation, by contrast, was 8.5 per cent that same month, a slight easing of price growth compared to previous months this year.
At the same time, Loblaw, Empire and Metro have reported continued profit growth in their most recent quarters. Trudeau’s announcement came hours after Empire announced its profits are up nearly 40 per cent from a year ago, a $73.5-million increase. Walmart and Costco, both American companies with Canadian arms, have also seen profits rise.
