Are you paying more than before to buy Canadian? Experts say it’s complicated
At the end of January, the then Prime Minister Justin Trudeau and the first of the country urged people to “choose Canada” by purchasing Canadian products in the middle of the growing threat of US rates.
“There are many ways to do your part,” said Trudeau on January 22nd. “It could mean controlling labels and choosing Canadian manufacturing products.”
With the US rates now in force and in force the contrastives, the buyers who have taken the message to heart are examining the labels-and, at the same time, many ask the question: is there a prize on patriotism? Market He has received dozens of messages in recent weeks from consumers who wonder if they are now paying more for the same products because they are, at various degrees, Canadians.
“I would like an investigation [to see] If “Buy Canadian” is just another fantasy marketing tactic, “wrote a user on Reddit.
Another sent us an and -mase saying that they feel how “Canadian articles have increased in price, some seem to increase weekly”.
AS Market Analyzed the prices of thousands of food products labeled such as Canadians in a Loblaws store in the center of Toronto since the beginning of the year.
While nine out of 10 products remained at the same price – and about two percent decreased the price – Market I discovered that the regular price of hundreds of products has increased since governments sent the call to buy food made in Canada. Some come from the most iconic brands in Canada, including Tim Hortons, St-Hubert, Swiss Chalet and Chapman.
Market I talked to several economists who have all said it is impossible to know with certainty if a prize is applied while the question gets up home for Canadian products, because many factors – such as the way in which an object is developed and if it is influenced by US withdrawals – are at stake when it comes to prices. They have come to several conclusions that the demand for Canadian products could explain the increase in prices. The producers say that they are the grocery stores that decide the price and the grocer, Loblaw, denies the collection of food prices due to the demand to buy Canadians.
But Colin Mang, assistant professor of economics at McMaster University, said that clear people want to buy Canadian products. It indicates a survey recently published on 9,788 Canadians conducted by Caddle for Dalhousie University in Halifax, who discovered that about 60 % of the interviewees were willing to pay a premium for Canadian products compared to American alternatives.
According to Mang, this offers dealers an opening to increase prices.
“Consumers, when they see that small Canadian flag next to the product, I think they really increase their desire to have that product,” he said. “There is this great” Buy Canadian “movement and the producers and Canadian retailers are ready to take advantage of it. They can charge higher prices.”
Which Tim Hortons products have become more expensive?
Loblaw, who owns several shopping banners, including no frills, strong, independent, royal Canadian superstore and Zehrs, said he started launching the Mapple Leaf online logo and in the shops in early February to indicate if the products had been prepared in Canada.
Market I discovered that between February 3 and February 10, more Tim Hortons products at the Loblaws shop have increased in price.
A mix of hot chocolate jumped from $ 15.99 to $ 17.99. The same mix of hot chocolate as Tim Hortons has also increased twice on Voilà, a food delivery platform owned by Sobeys that operates in the GTA, at the end of March and at the beginning of April.
Two different dimensions of the French vanilla cappuccino mixtures increased respectively by 50 cents and a dollar to the loblaw. Later in the year, March 31, Tim Hortons Caramel Tofee Coffee Pods also increased from $ 12.99 to $ 13.49 through Voila.
Michael von Massow, professor at the University of Guelph who studies the food economy, defined the “unfortunate” timing. He said that the coffee has become more expensive due to a weaker Canadian dollar and its vulnerability to climate change, which is causing production problems.
Mang said she believed that the grocery store increased the price due to the demand for consumers, because the price of the raw cocoa was decreasing during the February increases and while the transport costs could be increased marginally, the wages were stable.
Michael Oliveira, director of Tim Hortons’ communications, Market In a telephone interview that retailers set the price in the shop, not the manufacturer.
Oliveira refused to explain how Tim Hortons determines the price that suggests that retailers use or if that suggested price has changed, noting instead that the goods of coffee and cocoa are high or neighbors of all time in terms of cost.
Mandate Thakur, Sobeys’ spokesman, defined the idea that the increase in the price was the result of the demand for “clearly false” Canadian products and said “there is always volatility within the cocoa and coffee sectors”.
Thakur added that when a supplier has an increase in costs, there is a complete process to validate these changes before adjusting prices.
In one and -mail, Loblaw said that the cost of ingredients, work and more factors in prices. The company explained that while the pods of coffee “prepared in Canada” are roasted and packaged in Canada, the beans are imported and have recorded significant increases in the costs in the last year.
Which ST-Hubert and Swiss chalet products have become more expensive?
Two ST-Hubert-a chicken cake and Tourtière-and a Swiss chalet chicken cake increased by a price from $ 7.99 to $ 8.99 between March 10 and March 16 in the Loblaws headquarters.
“I think you could probably attribute this other to an increase in Canadian question,” said Stuart Smyth, professor at the Department of Agricultural Economy and resources at the University of Saskatchewan.
He said the rates would probably not have influenced these products at that moment.
Von Massow said not to think that none of the products would require many imported ingredients or that it would be subject to significant rates, but added that it is not clear to identify the reason why the price has increased.
While the president of the United States Donald Trump launches a commercial war against Canada, Prime Minister Justin Trudeau is making the Canadians to buy products made in this country and take into consideration the possibility of not making holidays in the United States
Speaking on behalf of St-Hubert and Swiss Chalet, Josée Vaillancourt, director of St-Hubert communications, said that on an e-mail he has not increased the price on these products and does not share the details on how it determines a price, describing it as a “long and complete exercise that we do not take light”.
Vaillancourt said that retailers eventually decide the price seen in the shop and said that most have policies that prevent suppliers and retailers from discussing retail prices.
He said that price monitoring in a shop does not indicate an increase or a decrease in the total market, noting that errors occur.
Loblaw has not specifically dealt with the increase in the prices of these products in his and -mail Market.
Which Chapman products have become more expensive?
Some products of the Canadian ice cream Chapman have also increased in the Loblaw headquarters, despite the fact that the company said in early March that will absorb immediate costs due to rates and will maintain the prices.
But Market I discovered that while some Chapman ice cream products have actually decreased in price, three lactose -free Chapman products, lactose -free, price came to price: vanilla ice cream, vanilla ice cream sandwiches and Dutch double ice cream have increased from $ 7.99 to $ 8.49 to Loblaws on March 25.
Pascal Thériault, an agronomist and economist of McGill University, said that the price of ingredients such as sugar has float and Mang has noticed how other dairy products -caseari increased in price, which may have influenced the cost of Chapman products.
Von Massow said he thinks that the shop may have increased the price with the demand for ice cream that grows while the hottest time approaches.
Ashley Chapman, Chief Operating Officer of the company, said he occasionally receives and -mail from frustrated customers regarding higher prices, Chapman’s promise. While he understands why people may feel upset or confused, he said the retailer determines the price in the shop. He said that Chapman’s products would have seen an increase in the “enormous” price if the company did not absorb the cost of rates.
He also said that buyers should not suppose that an increase in prices by food stores is “nefarious”.
Chapman, the only national brand of national ice cream of the country, says that consumers will not pay higher prices for ice cream this season, even if the commercial war with the United States will increase their operating costs. The company says that it will have to go to US suppliers, some of whom have had ten -year relationships and find new international contracts for various materials for their ice cream.
He said that the grocery stores could take into account the fact that the prices will probably decrease between May and September, that is, when producers such as Chapman are investing more money in promotional strategies and prices to compete with each other and combine the greater demand for ice cream during the summer.
Loblaw has not specifically dealt with the increase in the prices of these products in his and -mail Market.
Mang said that people could be willing to pay more to “buy Canadians”, but this does not mean that they want to see an increase in the price.
“People sorry to pay higher prices,” he said.
Thériault said that customers should try to buy ingredients and foods that involve lower processing to save money and avoid floating prices.
