The heads of Canada’s major grocery chains convened in Ottawa on Monday for an impromptu meeting with two prominent cabinet ministers to discuss the federal Liberal government’s call for the grocery industry to devise a plan to “stabilize” prices.
Deputy Prime Minister and Finance Minister Chrystia Freeland, along with Minister of Innovation, Science, and Industry François-Philippe Champagne, engaged in a roughly two-and-a-half-hour discussion with top executives from leading grocery store corporations in downtown Ottawa.
This gathering stemmed from Prime Minister Justin Trudeau’s declaration on Friday, in which he summoned senior officials from major retailers such as Loblaw, Metro, Empire, Walmart, and Costco to initiate dialogues addressing a concern long scrutinized by a House committee: the escalating cost of groceries in Canada.
Trudeau’s ultimatum was clear: Develop a credible plan by Thanksgiving, or he will contemplate “the utilization of tax measures to restore the expected stability in grocery prices for Canadians.”
Upon leaving the meeting, only the CEOs of Sobeys and Metro interacted with the waiting press. Although neither indicated an impending price reduction, both expressed a strong commitment to seeking solutions.
Sobeys CEO Michael Medline characterized the meeting as “excellent” and “very productive” but deferred questions about the meeting’s specifics to the politicians.
Eric La Fleche, CEO of Metro, emphasized that any conversation must involve manufacturers, producers, and farmers, not just retailers, and denied that his company was profiting from inflation.
“Of course, we desire lower prices. The issue extends beyond our stores due to global supply chain challenges and countless cost increases we’ve encountered,” La Fleche stated. “We are dedicated to delivering value to consumers every day in all our stores.”
This aligns with the position put forth by the Retail Council of Canada in a statement last week, responding to Trudeau’s action against surging food prices. The council contended that grocers are doing their part to stabilize food prices and identified the primary cause of rising food prices as increased vendor costs from food manufacturers and producers, driven by global factors, including inflation.
Both Conservative Leader Pierre Poilievre and NDP Leader Jagmeet Singh have raised doubts about the government’s ability to produce results, noting that the Liberals have been aware for nearly two years that food inflation outpaces general inflation and have taken limited action beyond the one-time grocery rebate aimed at lower-income Canadians during the summer.
Minister François-Philippe Champagne is expected to address reporters on Parliament Hill shortly.