Some could be deemed anti-competitive and might result in food price collusion among rivals By Sylvain Charlebois Consumers often assume that price freezes are always in their favour. However, it’s important to recognize that not all price freezes are equal, especially when it comes to products further up the supply chain. Every year, between Nov. 1 and Feb. 1, grocers request suppliers not to increase prices for undisclosed reasons. This unspoken agreement between grocers and suppliers, which likely started decades ago, may not ultimately benefit consumers. In October, as suppliers renegotiate contracts with grocers, prices are often adjusted, and many increase just before the three-month price freeze. Now that the “blackout” period has ended, we should anticipate food prices rising again, as even Metro CEO Eric Laflèche himself warned consumers during his recent earnings call. Price hikes are likely to affect non-perishable products, primarily those in the centre of the store...
A discussion on political, economic and social issues in British Columbia, and Canada