Canadians will see a result of global skyrocketing food prices fairly soon. George Weston Limited, holding company of Loblaws, warns of an on average 5 percent food price hike, starting April 1st.
As companies are hit with soaring prices from wheat, sugar and oil, food distributors are transferring some of the wholesale price increase to customers.
Competitors are expected to follow suit. Metro Inc, Sobeys, and Weston owned Loblaws all are starting to increase prices to maintain profit margins.
The price inflation of food commodities are circulating globally. Hitting a second straight record high in February, the UN reports that demand from fast growing nations as well as natural disaster supply disruptions are part of what led to this surprising price increase. Food markets affected include wheat, rice, dairy, oils, meat and more.
As of yet, Canadian grocers have been hardly affected, but this may change soon. It is speculated that food inflation will reach in between five and seven percent later this year.
SEE RELATED STORIES FROM THE WDM CONTENT NETWORK:
According to the Globe and Mail, Loblaws president, Allan Leighton, is not interested in falling into a price hike cycle that will lead to trying to entice customers back to the chain later with heavy discounting. “I’m not counting on a lot of inflation in the first six months,” he said. “I think people will proceed cautiously. And certainly, we’re only interested in passing prices through where there’s a cost behind them.”
Food items at Weston affiliates that Canadians should expect price increases for are bread, cookie and cake products.
As companies are hit with soaring prices from wheat, sugar and oil, food distributors are transferring some of the wholesale price increase to customers.
Competitors are expected to follow suit. Metro Inc, Sobeys, and Weston owned Loblaws all are starting to increase prices to maintain profit margins.
The price inflation of food commodities are circulating globally. Hitting a second straight record high in February, the UN reports that demand from fast growing nations as well as natural disaster supply disruptions are part of what led to this surprising price increase. Food markets affected include wheat, rice, dairy, oils, meat and more.
As of yet, Canadian grocers have been hardly affected, but this may change soon. It is speculated that food inflation will reach in between five and seven percent later this year.
SEE RELATED STORIES FROM THE WDM CONTENT NETWORK:
- Canadian Billionaires and the Conglomerates They Lead
- Loblaws President Leaves Head Position
- Loblaw’s Joe Fresh to Open Standalone Stores in Canada and the US
According to the Globe and Mail, Loblaws president, Allan Leighton, is not interested in falling into a price hike cycle that will lead to trying to entice customers back to the chain later with heavy discounting. “I’m not counting on a lot of inflation in the first six months,” he said. “I think people will proceed cautiously. And certainly, we’re only interested in passing prices through where there’s a cost behind them.”
Food items at Weston affiliates that Canadians should expect price increases for are bread, cookie and cake products.
