Canadians Carry On

Patriotism is at a high. But so are grocery prices

By Carly Peters

It’s a conundrum consumer have been facing since earlier this year, and one that might not be resolved any time soon. In response, grocers have had to grapple with merchandising shifts (how many Canadian maple leaf stickers have been used over the past 10 months?), product selection and sourcing, and either keeping prices in check or passing the cost on to consumers. Yet, even with the challenges, an even brighter spotlight has been shone on local products, resulting in what many state will be a permanent shift in attitudes and purchasing.

“Let’s face it, Donald Trump has forced us – industry and governments – to shift our thinking from a North-South supply chain to an east-west supply chain. Our long-standing and mutually beneficial relationship with the United States, developed over decades, will never be the same,” states Gary Sands, Senior Vice President, Public Policy & Advocacy for the Canadian Federation of Independent Grocers (CFIG). “I think Canadians understand that, and it’s why we are seeing a pronounced and, I believe, permanent shift in consumer buying habits that has manifested itself on the shelves of grocery stores, and this has resulted in more attention paid by both suppliers and retailers to buying and sourcing local whenever possible.”

Stong’s Market has always been known to customers in Vancouver, Surrey, and Squamish as the “local grocer” carrying hundreds, if not thousands, of B.C. skus in store.

“Sourcing local is one of our key strategic pillars. We place strong emphasis on supporting local. This recent trend has helped with the sales we see on these items,” explains Brian Bradley, President of the B.C.-owned and operated family business, noting where they used to highlight local B.C. and hyperlocal products, the stores have expanded shelf signage to include items with Made in Canada and Products of Canada. “We are definitely seeing an increased demand for local products, but also an expectation from customers to have local products. Customers are paying a lot more attention to where products are sourced from and are quite educated on supporting local.”

While his stores saw a similar bump in local product sales during COVID, it was short-lived. This time, Bradley thinks the sentiment will be sustained.

A province over, in Alberta, Jim Hamilton’s Ponoka-based store, Hammy’s, has always prioritized local products to support the farmers in the surrounding rural areas.

“Most of the dairy farmers around me sell to Saputo, so I carry Saputo milk exclusively. I only carry beef killed in Alberta, and bring in cheese from six local farms, flagging them as cheese from central Alberta,” he states, noting in recent months he’s shifted to also noting Made in Canada or Product of Canada on qualifying items. And, while his consumers are asking about Canadian products, it’s not translating to sales. “I would say [buy Canadian] has had more lip service than pocketbook reality in rural Alberta,” he says, adding a minority of consumers even question why costlier Canadian items are being brought in.

Although the federal government lifted many counter tariffs on U.S. goods in September, the savings on products such as coffee, tea, flour, sugar, pasta, and orange juice are still taking their time getting to consumers, while prices on items like fresh produce are affected by a weaker loonie, and canned and imported goods remain volatile due to supply chain disruptions and higher transport costs.

“I think the biggest impact of tariffs and counter-tariffs is just the uncertainty this creates for the entire agri-food industry. That has been the biggest impact on Canadian grocers, in my view,” says Sands of the CFIG. “While this uncertainty impacts the entire supply chain, when vendors are adjusting or increasing their costs, it is the grocer who has to constantly pivot on those changes and is the final point of contact with the consumer. It’s why grocers often become the focal point for consumer angst about rising food prices. The effect this uncertainty has had on consumers is that they have become much more discerning in their buying habits.”

Sands notes that Hammy’s customers (and likely many other Canadian’s) concerns about the cost coupled with the change in our relationship with the United States, underscores the need to match the desire to support local and Canadian with real investments in infrastructure.

“All Canadians want to support Canadian products. But helping keep the costs of those products competitive is equally important. Our domestic supply chain needs to be strengthened, and governments and industry stakeholders need to also recognize that we have a myriad of rural and remote communities across Canada. The costs of distribution and transportation are already higher for those communities. There has to be strategic discussions between government and industry as to how we can best ensure those higher costs can be contained and even reduced within the context of developing a pan-Canadian food strategy,” he says.