Financial Post- Potato chip giant Frito-Lay cuts off Loblaw in dispute over price hikes
Some in the industry say refusals to ship products are becoming more normal as food inflation surges to a rate not seen in more than a decade.
Financial Post- Potato chip giant Frito-Lay cuts off Loblaw in dispute over price hikes
Some in the industry say refusals to ship products are becoming more normal as food inflation surges to a rate not seen in more than a decade.
If a company can sell 100% of its production at a higher price, no tears for Loblaws.
True, but if there are no shelves to put the product on you’re not going move many bags of chips at any price. No tears for Frito-Lay either.
Empty shelves come from forcing producers to sell at a loss.
Which can only happen for so long.
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And full shelves result from too high prices.
The non-sale price for a bag of Lays is approaching four-dollars and has risen steeply in the past 6 months. We started 2021 with a non-sale price of around $2.99. Loblaws is responding to consumer feedback while trying to protect their own margins. There has been no shortage of chips on the shelves because they’re not selling as many bags at full price. They’re only moving when they’re on sale.
My earlier point was this is a symbiotic relationship and it’s based more on distribution than price. Retail food is about shelf space and facings. If you don’t have them you’re not going to sell anything at any price. Both parties in this case are trying to protect their interests. Cheering for one side of the other is a mug’s game.
The consumer will speak. It’s over $4.00 for a reduced-size box of Wheat Thins in my local Safeway. I won’t buy that product ever again at that price. It will sit on the shelf until stale beyond consumption.
The Retailer can eat it
The Producer can eat it
It’s crap food anyway. Just like the cereal aisle. I haven’t pushed my cart down the $7.00/box cereal aisle in at least 10 years.
Eat it! I won’t
“Cheering for one side of the other is a mug’s game.”
That was kind of my point about the headline. “Lays has raised their prices and Loblaw’s is balking at them” would be a better headline.
Potato chips are causing ICU bed shortages, peoplekind are better off without them.
Never gets old. Love it.
Yeah, the phrasing is funny. The real problem is the inflation, not the fact that the potato chip make can set its prices and make them stick in a free market.
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Good for Frito-(get)Lay(d).
Every time that fruit comes on TV – Gaylord Weston – I change the channel. I cannot stand his voice or the way he looks. Pure, 100% Laurentian Elite he is.
Why do you call him “fruit”? Surely “Gaylord” is his name, not his job description.
His real name is Gaylon. Are you an admirer of his?
Er, I believe it’s “Galen.”
Duly Noted
People can live without chips and pop.. It is optional after all.. If your going to draw a line in the sand it is a good place to start..
Sure.
And people can live without meat…and fish…and dairy products.
Why, it’s even been suggested that people don’t even have to live!
You still with me?
Screw them. Humpty Dumpty B-B-Q corn chips are miles ahead of Fritos.
Before Fritos bought out Hostess Chips, Hostess were my go to.
My step father was a distributor for them in the 70’s, 80’s and 90’s.
I remember when Hostess came out with the cheese tortilla chip and the family was the guinea pigs.
Came in a clear cellophane bag , was around the very late 70’s.
Man , they were to die for, top quality and taste in a big azz bag.
Since Fritos bought them out , it’s been a downhill ride ever since.
Now if I need them , I will just get the house brand no name.
Hostess were the best. I believe they were first to do ketchup.
Orange, grape and cherry were a bad idea. I think that product development and marketing department are now running our government.
Orange, grape and cherry! Someone who remembers. I tell people about them and they think I am lying or it’s an urban legend. Now I just need to find someone who remembers the Playtex Cross Your Heart bra commercial where the bald husband points at his busty wife’s chest and asks “Am I proud?”. I miss the 70’s but they will be back shortly, Reagan is dead and so is conservatism so I don’t have high hopes of getting out of this one. I wonder if Wayne and Schuster will make a come back?
Hostess was the bomb and it was the go-to in my house as well when we could afford it, (Popcorn mostly). I remember they came in two packages to a bag. Chips never tasted the same after they were bought out. Maybe I’m old and my tastes have changed.
My wife was in the supermarket yesterday, she said the shelves are looking sparse. Let’s hear it for truckers.
Yup. I was in Fort St. John earlier this week and I was at 2 different grocery stores. Lots of empty spaces in a number of shelves and coolers.
Drug stores are also getting hit. Last week I went to buy a few things and found a grand total of 3 tubes of hydrocortisone cream on the shelf. I suppose next we’ll be urged to take no more than we need. Screw the authorities and their constant hectoring – I bought up every available box. The “good Germans” who support this New Fascist Order can go without; I’m getting mine and stocking up against future shortages.
As that red headed Stepford woman, spokesthing of the pResident Pantshitter In Chief , Jen Psaki is fond of saying , ” lower your expectations “.
I am sure the Resident Turnip will have an ample supply of Depends plus moar ice cream, two scoops for the Big Guy, cause ” I did that “.
Or, as the second-greatest prime minister of Canada told us 40 years ago, “Bite the bullet.”
Would this be the same loblaws that colluded on bread prices for more than a decade?
Which was just a one time thing I’m sure….
I know I’m a stuck record.
The Weston’s who price fixed the price of bread and also took $15 million of tax payer money to purchase “green” fridges from China. Just like all the other Liberals, slime!
Boycott Loblaws, Superstore, Shoppers Drug Mart and TD Bank.
You are blaming the wrong slime. It was our politicians who decided to dole out our taxes as “green money”. Yet we repeatedly vote them back in. As Charlie Munger (Warren’s buddy) said, once the populous gets it in their head that you can print money forever, it’s only a matter of time before your dollar goes to zero. It’s like a level 3 moron convincing a level 5 moron that it’s ok to jump off the cliff.
Good form, Citizen.
The same Loblaws that received a taxpayer funded upgrade to all of its retail refrigeration units.
Hey, the upcoming increase in Carbon taxes will just add to costs.
But the Liberals say there is no such thing as inflation.
In reality the Liberals and NDP want to make everything more expensive. It will reduce consumption, reduce transportation, and reduce manufacturing. This reduces the carbon footprint.
Of course, Justin’s and Jugmeet’s salary will keep going up. Eventually they’ll shop at government only stores.
Of course, they really don’t care about carbon footprint, it’s really about lording over the masses.
If you mean the carbon scam is a means of wealth redistribution, we are in agreement.
A means to an end.
Slowly destroying the middle class.
” You will have nothing and be happy, serf “
Don’t forget the supply side cartels.
‘It’s a shame they both can’t lose’
I’d love to see an organized boycott of Loblaws on the prairies. That’s something anyone can get behind and it won’t cost them a cent. Buy nothing that comes out of the east.
I shop at Walmart. I hate them too but at least they’re not Canadian
Part of stopping the Great Reset is to stop propping-up the corporate side of the WEF. Stop buying from chains and corporations–Loblaws, Amazon, Microsoft, etc. Search out and shop from small retailers, small local manufacturers, do more DIY. Can’t do it for everything, it is true (no one is hand-crafting new cars in their back yard). But every time you can do so, do it.
Are there smaller businesses left?
That’s going a little bit “Galt”. This is not a criticism.
I would say get your favourite snack and/or beverage and watch this train wreck but it looks like things will be too expensive.
The morons who blamed the truckers and not the government will be furrowing their troglodyte brows and wondering why gas is so expensive and why there are no crunchy things under $5. They might even think about protesting but they are too cold and the police horses go stompy-stompy.
I don’t eat any amount of chips. For some unexplained reason I find them repulsive, I don’t know if it’s the salt or that oily feeling in my mouth. Strange because I seemed to have picked up just about every other bad habit.
On the other hand I have had to cut down on gasoline usage. It really has hit my monthly budget hard and being retired I don’t have the same income as I used to. But being retired means I don’t have to drive as much anymore, so things kind of canceled out. But I do feel sorry for anyone on a low income who’s forced to drive to work or old folks who have to drive to appointments.
Arty
I feel your pain about rising gasoline prices.
Remember Justin Turdeau and Jugmeet Singh both got two raises during the pandemic and get another raise in about six weeks.
It’s going to get worse from what I hear.
Any company that cannot properly make All Dressed chips, deserves to go bankrupt. Eh?
https://www.today.com/food/frito-lay-recalls-ruffles-all-dressed-chips-9-states-t218364
I miss having the munchies.
https://m.youtube.com/watch?v=tz2ARTdaqE0
For those that do not know, Hostess was bought out by Frito Lay. Hostess used to have those aluminum coated paper bags.
Shock 😮 Horror 😮 … that junk food commercial is … AIMED AT CHILDREN!!! It’s the Joe Camel advertisement for Junk Food!! Ohhhhhhh mommmmaaaaaaa … Time to call all outraged Karens you know …
Geez, you must be old. lol
I thought I was the only one who remembered those bags….
Those were the days when potato chips also actually tasted like the flavour they touted on the packet and had lots of coating. Nowadays they all just taste burnt and way salty to me.
Corn chips for the win.
So a member of Canada’s Plutocracy is drawing a line in the sand with their American counterpart. I don’t have a dog in this fight. My particular big named grocer has one full aisle devoted to junk food so I have to believe it’s going to be a big effing deal somewhere down the line.
Loblaw, which also owns No Frills, Shoppers Drug Mart and Valu-mart, said it conducts detailed reviews on price requests from suppliers to make sure what they’re asking for is appropriate.”
Yeah, because when it comes to what is or what isn’t “appropriate” I automatically think of you guys.
All suppliers to any Weston/Loblaws group of companies are pressed to sell to them at a loss and try to make up the difference with the other clientele.
If they are your only client, you won’t be in business for very long.
I’ll keep reposting this until it gets to the common man who delivers supplies and keeps the lights on in Ottawa. Embargo the city. Don’t deliver supplies or repair its infrastructure.
Plans are afoot my friend, afoot.
Can’t say more than that.
F*ck the Westons… and their houseguest the Papineau Groundhog…
https://torontosun.com/opinion/columnists/lilley-yes-the-public-does-get-to-know-where-trudeau-vacations
According to the local speculation, which continues, Trudeau and his family are staying with the Weston family. That’s something the PMO denies saying he simply rented a cottage on one of the islands in the area.
their houseguest the Papineau Groundhog
That’s an insult to groundhogs.
Any chance that groundhog is Black ?
It’s the munchies prohibition!
Of course you know, this means war, man!
Julius Pringle is calling on the snack armies of Frito bandito along with Chester Cheese, mr.peanut, Humpty Dumpty, Miss Vicky and others to load up the artificial flavouring catapults and vats of boiling oil on the ready…
We now have word that the sodapop and candy bar soldiers are also willing to join in…the cannabis coalition just informed us.
… Loblaw controls roughly 35 per cent of the grocery market in Canada, according to a report from market research firm IBIS World in 2020. (That report did not include Walmart and Costco.) The fact that one snack company would risk such a large portion of the market should underscore the severity of the situation, said Michael Graydon, who leads the manufacturing lobby group Food, Health and Consumer Products of Canada.…
I do not mean offense, but the FP might want to realize Canada’s population is about the size of California’s. To a A world wide company, it’s a blip.
Can they both lose?
Talk about stupid governments!
First they legalize marijuana, then they make munchies unavailable/unaffordable.
You want to see an uprising? Just wait until the potheads need to make a munchie run and what little is on the shelf is unaffordable.
;o)
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I used to be a Product Coordinator for a very large grocery chain. Private label stuff. I am assuming this isn’t about one or two items. If you see a bag of chips on the shelf and beside it is another bag with the same flavour chances are they are made by the same company. Profit margins are tight but you have contracts. A company bids on a product but if the cost of salt rises they are bankrupted.
Our local had signs in the chips aisle stating supplies were short; sorry for the inconvenience. Blah, blah, blah.
On a personal note, from experience in the food industry, I can tell you that doing business with Weston/Loblaw meant accepting their 180 day payment terms. For a company as big as Frito Lay that may not mean much, but for a smaller company, if you want your product on their shelves, well…you can wait six months to get paid. In other words, be their banker and finance them.
Thanks to Publix BOGOs, I pay half price for most non-perishable products that I need, these include beer/seltzer, laundry detergent and other cleaning products, condiments and canned goods, coffee, nuts and snacks, and frozen pizzas to name a few. The trick is to know the frequency pattern of the sales and overbuy as required. A typical trip to Publix costs me $50 for $85 worth of groceries.