Canadian big grocers losing public trust amid soaring food prices: poll

A new survey suggests the soaring price of food is eroding Canadian consumers trust in big grocers.

The latest poll, conducted by Agrifoods Analytics Lab at Dalhousie University, comes as Canadians deal with the highest grocery inflation in four decades. The rising cost of food is coinciding with the country’s three major grocers reporting record-high profits.

“Grocers may stock their shelves with the freshest produce and finest goods, but without the trust of their consumers, their offerings [will not sway consumers],” says Janet Music, Research Associate at the Agri-Food Analytics Lab. “For grocers, transparency, ethics, and sustainability will be even more critical moving forward.”

The survey found 30 per cent of Canadians believe grocery chain price gouging is the main reason food prices have been rising, including just over 31 per cent of respondents in Ontario. Just under 30 per cent of Canadians believe inflation is the driving factor behind the price increases.

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The CEOs and presidents of Loblaw Companies Ltd., Metro Inc. and Empire Co. Ltd. – which operates chains including Sobeys, Safeway and FreshCo – appeared in front of a parliamentary committee last month. Their testimony came amid calls from federal politicians for the industry to be more transparent about what is driving its profits.

The leaders insisted that food price inflation is not caused by profit-mongering and that their margins on food-related profits have remained low.

According to the survey, only about a quarter of Canadians who followed the proceedings felt the heads of the three biggest supermarket chains were being transparent and forthcoming during their testimonies.

Sylvain Charlebois, Director of the Agri-Food Analytics Lab at Dalhousie University, says a lack of competition among Canadians grocers is a major problem. A new Canadian grocery code of conduct is expected to be finalized this spring.

A working draft of the grocery code viewed by The Canadian Press includes provisions that would prevent grocers or suppliers from unilaterally altering contracts. It also lays out rules for fines and penalties and the fair allocation of supply when product availability doesn’t meet demand.

“The grocery code of conduct is not just a set of rules, it’s a lifeline for Canadian shoppers,” said Charlebois. “It ensures fair pricing, transparency, consistency, and accountability from retailers, giving consumers the peace of mind they deserve when purchasing their groceries.”

More than two-thirds of respondents to the survey said they would support a code that limits the influence of major grocers and helps independent grocers.

The survey was conducted in March 2023 and included nearly 10,000 respondents from across the country.

With files from The Canadian Press