Directions Newsletter
Canadian Food Industry Snapshot: Retail and Food Manufacturing in Late 2016
Toronto – January 19, 2017 – Statistics Canada data shows that the operating profits of food manufacturers in Canada increased by 22 percent in the third quarter of 2016.
The same data also reveals that:
Food manufacturer operating margins were 5.6 percent in the third quarter, equal to the five-year 2011-2015 average of 5.6 percent.
Food distributor operating profits jumped by 8 percent in the same period.
Food distributors had operating margins of 3.6 percent in the third quarter, equal to the five-year 2011-2015 average of 3.6 percent.
Grocery price deflation continued for the second straight month in October 2016.
Canadian food manufacturers passed along consumer packaged goods (CPG) price increases of about 1 to 2 percent during 2016.
November 2016 price declines in Canada were nearly universal across all grocery items.
Consumer confidence bounced back sharply in November.
Agricultural commodity price levels were generally lower in November.
Retail Sales Revenue | ||||
Change vs. Prior Year | Supermarkets | Convenience Stores | Drug Stores | General Merchandise |
September | 2.6% | 4.5% | 7.1% | 3.2% |
Latest 12-mon YOY | 0.4% | 3.5% | 6.8% | 3.4% |
Manufacturer Sales Revenue | ||||
Change vs. Prior Year | Total Manufacturing | All Food | Soft Drinks | Packaged Foods |
October | -1.0% | 4.7% | 5.6% | 7.9% |
Latest 12-mon YOY | 0.3% | 5.4% | 5.8% | 4.6% |
Source: Kevin Grier, Grocery Trade Review, November 2016, www.kevingrier.com