Every year, the price freeze at the grocery store ends when the calendar turns to February. In the coming days, consumers must therefore expect to pay significantly more for their basic products from Metro, Provigo and IGA.
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“There is no point in freezing prices, consumers always try it in February,” notes Sylvain Charlebois, food researcher.
Orange juice, canned vegetables, spaghetti sauces, olive oil and packaged meats are some of the products that are already costing more than they did in January.
Stefano brand sauce pots were $8.49 at Provigo Angus in Montreal as of February 1, 2024. Just yesterday it was $5.99. How much will they rise now? Photo Julien Mcevoy
The end of the price freeze on Metro, Super C, Provigo, Maxi and IGA mainly affects national brands that are not part of them.
- Listen to the Maréchal Dumont meeting with Isabelle Maréchal QUB :
“This is disgusting. Eating is not a luxury! It's an obligation,” says Diane St-Germain, an administrative assistant from Montreal.
Diane St-Germain finds food prices “disgusting.” The 54-year-old administrative assistant no longer buys “real” brands, except for Kraft peanut butter. Photo Julien Mcevoy
The 54-year-old now only buys “real” Kraft peanut butter. Incidentally, she uses her own brands, otherwise “it’s far too expensive”.
A few aisles away, Audrey Latendresse-Bourdon, almost 30 years old, tells us that because of the “craziness” of the prices, she is now consulting the circulars, something she never did.
Audrey Latendresse-Bourdon (left) and her friend Laurence Godcharles were shopping together at the Provigo Shop Angus in Montreal on Thursday. Prices are high everywhere, but “even higher here than anywhere else,” they told the Journal. Photo Julien Mcevoy
The big chains have been freezing prices for decades. The aim is to be well prepared for special offers and discounts during the holiday season, which is the industry's cash cow.
Practice clearly shows that “the industry is not known for its transparency,” notes Jordan LeBel, a food marketing professor at Concordia University.
The proof? Loblaw refuses to address the issue publicly. “These are questions of a very sensitive nature,” the Ontario owner of the Provigo and Maxi chains responded to the Journal on Friday.
Grocers must give us trust and not the opposite, argues the consumer psychology specialist. When Provigo recently stopped selling groceries at 50% off, the chain “showed that it is disconnected from the world.”
Price of canned vegetables at Provigo Angus in Montreal, February 1, 2024. Photo julien mcevoy
No respite
The industry still needs the price freeze in 2024, which ends in February, answers Metro, which is showing more transparency in this matter.
Eric La Flèche addressed the issue head-on in a rare public appearance on Tuesday. “We receive a lot of inquiries from our suppliers,” repeated the Metro boss.
Price of olive oil at Provigo Angus in Montreal, February 1, 2024. Photo Julien Mcevoy
Last year he spoke of 27,000 applications to be processed. In 2023 they fell back to less than 10,000, the normal value.
Private label prices had skyrocketed in February 2023, the opposite of today. At the time, the private label butter (16 ounces) was $5.99 and the pack of six English muffins was $1.99.
As of January 31, 2024, these Selection or Unnamed brand products sold for $6.49 for butter and $3.69 for English muffins.
How long will the industry continue like this? “I don't know. Maybe not forever. Things change, they evolve,” suggests Marie-Claude Bacon, vice president of Eric La Flèche at Metro.
Since when and why?
The price freeze is “a little obscure,” says Sylvain Charlebois, “it has always existed and it will no longer be of any use in 2024.” The practice, which has existed for decades, is in preparation for the very busy holiday season, the industry claims. “Every February we come up with new prices that we were able to achieve through negotiations with our suppliers,” explains Metro. This is an opportunity for chains to empty the bag of price increase requests, which reached 27,000 at Metro in 2022.
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