Grocery store prices are climbing through the roofs collectively around the globe. The concern feels worse in the United States and Canada because food prices have been relatively low. You have to go to the grocery store so what can you do about it?
In Canada, there has been an unofficial boycott of Loblaws through the month of May. As you might imagine, a boycott of Loblaws means way more than just the stores called Loblaws. The Canadian company owns other food outlets, such as Atlantic Superstore, Dominion, Loblaws, Maxi, No Frills, Provigo Le Marché, Valu-Mart, Real Canadian Superstore, Wholesale Club, Your Independent Grocer, and Zehrs. While Shoppers Drug Mart is mostly a drug store, they sell groceries.
Loblaws controls 29% of the Canadian grocery industry.
The United States has some major grocery players, such as Kroger and Albertsons, who are trying to merge themselves. Canada has more of a monopoly in grocery store ownership. These are spots in Canada where a Loblaws boycott is a very difficult task.
Minnow and the Shark — episode 6 of Law & Order Toronto: Criminal Intent on Citytv — was about the death of an executive at a major grocery chain. Ripped from the actual Canadian news headlines, the reference is about an actual price-fixing scandal by Loblaws (and other chains) on the price of bread. Marie Antoinette, who never said "let them eat cake," would be envious over how they got away with their behavior. Also, why baguettes in Paris are cheaper than you might think they would be.
Food in Canada is more expensive than in the United States for a number of logistical reasons. A more spread-out population. Dairy and poultry supply management in Canada, which means much higher prices albeit for a better product. Difficulty in travel in places such as Atlantic Canada, including Newfoundland. Your humble narrator has spent a few trips at the Food Basics in Windsor, Ontario. Food Basics is owned by Metro and is a competitor to No Frills (Loblaws) as basic bones grocery stores. The prices at the basic bones grocery store would blow the minds of Americans.
The Daily Show years ago interviewed a Detroit woman about the Ambassador Bridge. Her impression of Canadians was that they buy American milk. While Canadian milk is legitimately better, the price difference even then is significant.
Canada has foreign invasion from American companies in quite a few categories, but not grocery stores. Target made a move in the Canadian market. Wal-Mart has a base in Canada but most of that is non-grocery. While there are a handful of Whole Foods in large Canadian cities, Trader Joe's is not in Canada.
Pirate Joe's was a cry for Trader Joe's to come to Canada, specifically to Vancouver. Trader Joe's was not happy and went after the company legally. Though Pirate Joe's won the case, they couldn't afford the follow-up suit.
If Trader Joe's won't come to Canada
Pirate Joe's had a good run in Vancouver (BalanceofFood.com)
The mainstream media usually covers these types of stories by factors such as "did Loblaws suffer a loss or make more money" as the only measurement of a successful boycott.
Consider the practical nature of the photo at the top of the story: "purchase loss leaders." A loss leader is a grocery store term for an item where the company would take a loss to draw people into the store to buy enough items to more than make up for the loss. Milk was often a loss leader before the COVID-19 pandemic.
"Avoid non-essentials." If you don't have to buy something until June, take that course of action.
The point isn't win/loss on a large company spreadsheet. The point is how people can feel better about an unfortunate reality in dealing with rising food prices and massive grocery store profits.
Could a grocer code of conduct have prevented the bread price-fixing scandal in Canada?
— The Food Professor (@FoodProfessor) May 20, 2024
The proposed grocery code of conduct has sparked debate regarding its efficacy in stabilizing prices in Canada, and justifiably so. The public lacks detailed knowledge about this code, and… pic.twitter.com/yz8wmx75OM
A grocer code of conduct is an idea floating in Canada these days. Grocers are waiting to see if other companies will step up and sign on before committing to the idea. You would think this would have been automatic once the bread price-fixing scandal came out.
You would think a large company would lay low during a boycott of your company yet word of that didn't travel to a Toronto (King and Peter) location of Shoppers Drug Mart. The Shoppers location advertised for a volunteer to help out in the store for zero compensation.
Loblaws had a 50% discount on food nearing expiration dates. The company announced a few months back that they would get rid of the policy. The outcry forced the company to reverse that move.
The discussion has even entered Canadian politics. The Trudeau Government also introduced a grocery rebate for taxpayers dealing with high grocery prices.
Grocery rebate is a nice idea but only a short-term solution to rising food prices (BalanceofFood.com)
Sobeys boycott in June? pic.twitter.com/MN5kll2zoR
— Matt Dagley (@mattdagley) May 10, 2024
Here are some resources that go into more detail about the Loblaws boycott:
Fed-up consumers are boycotting Loblaws (The Current on CBC Radio)
How Loblaw inspires anger, boycott (Front Burner)
Short Cuts #989: Loblaw & Order (Canadaland)
Why some Canadians are boycotting Loblaw for the month of May (CBC News for kids)
Stock Buybacks: How Grocers Eat Themselves (Canadaland)
Monopoly #1 – Lost in the Supermarket (Commons)
Some independent grocers and farmers say they’re seeing an increase in business as well as interest in locally sourced produce and products while the boycott of Loblaw and their associated brands continues in the month of May. @DilshadBurman reports. https://t.co/2uv5xHM9Jx
— CityNews Toronto (@CityNewsTO) May 20, 2024
Independent grocers are easier to find in large Canadian cities, especially Toronto. I've seen fruit and vegetable stands scattered throughout downtown Toronto. St. Lawrence Market is a wonderful place of local establishments under one giant roof. The Granville Island Public Market is a wonderful way to spend some food shopping time in Vancouver.
There are 14 Whole Foods locations in all of Canada: 6 in the Toronto area, 6 in the Vancouver area, and single locations in Ottawa (ON) and Victoria, BC.
Montréal has well-known local markets: Marché Jean Talon, Marché Atwater, and Marché Maisonneuve. I've been to farmers markets in Victoria, Windsor, St. John's, and Halifax.
Consider this new resource for alternative grocery stores as well as local farmers markets.
The theoretical beauty of a large grocery company is you might save pennies because of their buying power. So even if independent stores are in a community, they might not have the absolute best prices compared to a behemoth such as Loblaws. Boycotts are not easy, almost by definition. How much is a boycott worth to the average Canadian consumer of grocery stores?
photo credits: @foodprofessor (where I found the photo but not knowing the original source); Law & Order Toronto: Criminal Intent/Citytv
Twitter captures: @FoodProfessor; @mattdagley; @CityNewsTO
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