Suppliers tell Canadian grocers that price hikes are on the way

Grocers in Canada have received a warning from suppliers that will not sit well with shoppers: expect price increases this summer and fall.

The Waterloo Region Record has received 19 different notices from store owners about the price hikes as well as a plan to shrink product sizes while increasing the size of packaging.

The Record received confirmation of the plan from the Canadian Independent Federation of Grocers and the Retail Council of Canada.

Prices could go up as much as 40%, but grocers told the Record they will not pass on the full increase to shoppers.

The Retail Council said some increases may be justified, but several are not, and grocers are pushing back when requests are unwarranted.

According to the Record, Ehlman’s Kosher Deli Foods sent out a notice on price increases on the following prices that will take effect on July 15: banana pepper rings (22%), sliced pickled beets (27%), sliced hamburger dill pickles (42%), and sweet pickled gherkins (11%).

Packaging and weight will change as well. For example, a brand of crackers will go from 500-gram boxes to 481 grams while increasing packaging sizes to improve shelf visibility.

The news comes at a time when Canadian shoppers are beyond fed up with the cost of groceries. A shopper boycott of Loblaws is still in effect even though the grocer promised to make changes that will save customers money.

Canada is also trying to get all grocers to sign off on the grocery code of conduct, a set of rules and guidelines that seek to improve fair dealings in the industry, especially between big grocers and their suppliers.

In the U.S., Walgreens, Target, Aldi, and Amazon Fresh have all announced they will cut prices on thousands of items this summer.