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Industry Snapshot: Canada’s food industry in the last year

Toronto – March 10, 2018 – The latest Consumer Price Index (CPI) from Statistics Canada reveals minor price increases in 2017 for all food items as a result of sharp competition between Canada’s food retailers.

Other important facts about Canada's retail food industry:

  • While the total inflation for all items increased by 1.6% in 2017, the prices for food purchased from stores decreased by 1%.

  • Predictions for 2018 are calling for a modest food price increase across Canada, as the retailers’ competition remains fierce.

  • The price of food in restaurants have risen. (+2.6%).

  • Prices for fresh fruits (-3.1%) and fresh vegetables (-2%) fell in 2017, after increasing in 2016.

  • Strong competition at store level translated into annual average price decline for staples such as eggs (-3.5%) and dairy products (-1%).

  • Poultry prices went up by 1.5% while fish prices have increased by 3.5% in 2017.

  • The demand for meat and poultry, in both Canada and the US, remains strong, despite higher and higher prices.

  • Across the country, prices fell by half a percent in Quebec and by just over 1% in Ontario and Alberta.

  • Food retailers registered a minor loss in gross margins during the month of November 2017, compared to 2016.

Retail Sales Revenue

Change vs Prior Year

Supermarkets

Convenience

Drug

General  Merchandise

November

0.4%

2.8%

3.5%

11.2%

Latest 12-mon
year-over-year

1.4%

1.2%

6.5%

4.8%

Manufacturer Sales Revenue

Change vs Prior Year

Total Manufacturing

All Food

Soft Drinks

Packaged Foods

November

6.7%

2.8%

1.0%

4.0%

Latest 12-mon
year-over-year

6.0%

5.2%

0.1%

6.8%

 

Sources: Kevin Grier – Grocery Trade Review – January 2017, www.kevingrier.com; Statistics Canada – The Daily – CPI Annual review, 2017

 

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