Search for foreign grocers who will locate in Canada and, hopefully, drive down food prices continues: Champagne

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OTTAWA — Trade Minister Francois-Philippe Champagne is as soon as once more insisting that he’s reaching out to worldwide grocers within the hopes they may open up store in Canada and spur extra competitors.

Champagne mentioned Tuesday that he’d spoken to 1 overseas grocer that very morning as a part of his efforts to courtroom new gamers for the Canadian grocery sector — however he’s not naming any names.

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“I can’t inform you an excessive amount of, or else you gained’t ask me questions subsequent week,” he mentioned in French prematurely of the weekly cupboard assembly.

“I spoke with one firm this morning.”

As meals inflation rages on, Champagne has repeatedly teased in latest months the conversations he says he’s been having with overseas grocers.

Canada wants extra competitors for grocery {dollars}, and having extra gamers available in the market would assist put downward strain on costs, he mentioned.

“Am I going to succeed? I don’t know. However definitely, it’s value making an attempt.”

The deal with attracting worldwide grocers comes after Champagne’s largely futile try and push Canadian grocers to assist deliver grocery costs beneath management.

He met with Canadian grocers within the fall and demanded they create plans to stabilize grocery costs or face penalties together with potential tax measures.

However past expressing disappointment that the grocers haven’t been extra clear, Champagne has stayed mum on whether or not the federal authorities plans to punish them for it.

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“Massive grocers haven’t, so far, been sufficiently clear concerning the causes of meals inflation they usually have failed, for probably the most half, to offer common updates on initiatives aimed toward stabilizing meals costs within the nation,” he wrote in a letter Monday to Matthew Boswell, Canada’s competitors commissioner.

“The continued file earnings within the grocery retail sector point out that there are extra alternatives to deliver aid for Canadian customers.”

Metro Inc. reported a first-quarter revenue of $228.5 million on Tuesday, with gross sales up by 6.5 per cent. In a digital press convention, CEO Eric La Fleche mentioned retail worth will increase will begin coming to grocery shops as quickly as subsequent week, as an industry-wide blackout interval on provider worth will increase involves an finish.

La Fleche has mentioned Metro didn’t alter its costs in response to the assembly with Champagne.

Champagne’s letter to Boswell steered a follow-up examine on the grocery sector, now that the bureau has new powers to subpoena firms for info.

“I used to be upset to be taught that the bureau’s examine didn’t profit from the total co-operation of enormous grocers,” the letter mentioned.

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“I additionally sit up for discussing your evaluation on the potential scope and feasibility of a follow-up grocery market examine.”

Metro absolutely co-operated with the earlier examine, La Fleche insisted Tuesday.

The Competitors Bureau revealed the findings of its examine in June, saying that the co-operation of grocers was inconsistent and fewer than complete.

The report discovered that focus within the grocery {industry} has elevated in recent times, and the most important grocers have elevated their earnings from meals gross sales.

The bureau additionally mentioned Canada’s grocery sector wants extra competitors to assist maintain meals costs down, give customers extra selection and encourage new entrants.

On Tuesday, a spokesman for the bureau confirmed it had acquired the minister’s letter and is contemplating it.

“We’re dedicated to selling better selection and extra reasonably priced groceries for Canadians by means of elevated scrutiny of the grocery {industry} and by completely and shortly investigating allegations of wrongdoing,” Marcus Callaghan mentioned.

“The bureau can also be dedicated to utilizing the brand new instruments made accessible by means of latest amendments to the Competitors Act wherever mandatory to guard competitors.”

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The Liberal authorities lately made a number of adjustments to the nation’s competitors regulation, which included giving the bureau the ability to compel info from firms for a market examine.

The adjustments additionally empower the bureau to go after anti-competitive collaborations between companies, even when they aren’t opponents.

Champagne mentioned this can assist enhance competitors within the grocery sector, given it would permit the bureau to problem leasing agreements that bar opponents from opening up store close by.

— With further reporting from Rosa Saba.

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