Freeland Set to Announce Strategy for Limiting Grocery Profits and Increasing Market Competition
Liberal leadership candidate Chrystia Freeland is set to unveil a plan today aimed at reducing food prices, tackling a significant aspect of the cost-of-living challenge that she faced during her time as finance minister.
A campaign official speaking on background has confirmed that Freeland will be in British Columbia today for the plan’s release.
The plan will feature a commitment to limit profit margins for grocery stores on essential items like eggs, milk, vegetables, and baby formula.
Freeland will also pledge to outlaw “shrinkflation,” which involves reducing product sizes slightly without consumers noticing much difference while charging the same price for less content.
Among the five contenders vying to succeed Prime Minister Justin Trudeau, Freeland is joined by former central banker Mark Carney, MP Karina Gould, and former MPs Frank Baylis and Ruby Dhalla. The leadership vote is scheduled for March 9.
Related Stories
Over the last four years, rising food prices have caused considerable distress and challenges for Canadians. Data reveals that food costs surged by almost five percent in 2021, over 10 percent on average in 2022, nearly six percent in 2023, and almost three percent in 2024.
Statistics Canada has reported a notable increase in the number of Canadians living in “food insecure households,” rising from approximately 6.1 million people in 2019 to almost 8.7 million people in 2023.
The Liberals have been advocating for national grocers to adhere to a code of conduct to help lower prices, but have resisted demands from the NDP to implement price caps.
In 2023, Freeland emphasized the need for increased competition in Canada’s grocery sector, although efforts by her previous cabinet failed to introduce more retailers into the market.
Moreover, Freeland’s campaign official announced today that she will pledge to bolster competition by prohibiting grocers from owning wholesalers, processors, and distributors. Additionally, she will promise to provide low-cost financing to attract new independent grocers and explore the possibility of allowing foreign grocers to enter the market, excluding American grocery chains.
