Latest news with #CatherineThomas
Time of India
4 days ago
- Business
- Time of India
Loblaw vs JM Smucker face off over Folgers coffee price; weather, Trump tariffs also play a role
Canada's largest grocery retailer, Loblaw Companies Ltd., has removed all Folgers coffee products from its stores following a pricing disagreement with the manufacturer, J.M. Smucker Co. The grocery giant said the proposed cost increases were 'unreasonable and unjustified based on underlying costs.' In an internal email to retailers, Loblaw explained that talks with Folgers' manufacturer failed to produce an agreement. 'After several weeks of negotiations, we were unable to reach an agreement with the manufacturers of Folgers coffee regarding their significant and unjustified proposed price increases,' wrote Suren Theivakadacham, Loblaw's category director. The company emphasized that it is acting in the interest of consumers struggling with affordability. Loblaw spokesperson Catherine Thomas stated the decision was not taken lightly but was necessary to keep prices in check. 'We will not accept or pass unjustified cost increases on to customers, and therefore we have removed Folgers from our shelves,' she said. 'We recognize this may create some inconvenience for customers and for that we apologize, but again, we will do what is right to help address price increases.' Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Honor a Forgotten Father Today HelpAge India Donate Now Undo The company has also circulated a list of alternative coffee products to its stores as shelves are being updated. Thomas added that most stores are expected to be out of stock of Folgers items within the next week or two. This move comes amid rising coffee prices across Canada. In April, Statistics Canada reported a 13.4 per cent year-over-year increase in the price of coffee and tea, well above the 3.8 per cent rise in overall grocery costs and the national inflation rate of 1.7 per cent. Live Events Experts attribute the rising costs to a combination of factors, including extreme weather conditions that have reduced crop yields. Coffee is also affected by a weaker Canadian dollar and ongoing retaliatory tariffs on certain US imports, even though the US isn't a major coffee producer. Folgers products are manufactured by Ohio-based J.M. Smucker Co., which has implemented price hikes in the past year due to escalating costs. Company CEO Mark Smucker said in a February earnings call that more increases were expected in the near future. 'Our pricing actions have been managed prudently and responsibly and have only been taken when justified by costs,' company spokesperson Frank Cirillo said.
Yahoo
28-02-2025
- Business
- Yahoo
Loblaw to review price increase requests faster due to potential tariffs
TORONTO — Loblaw is reviewing price increase requests from suppliers faster than normal because of the impact of potential tariffs on costs. The grocer normally reviews proposed increases within 12 weeks but has cut that timeline in half to better help suppliers navigate the effects of tariffs, said spokeswoman Catherine Thomas in an email. The U.S. is set to levy tariffs next week on imports from Canada and the federal government has said it will retaliate, a move that will make many goods coming from the U.S. more expensive. That means many items at the grocery store, in particular the fresh produce Canada relies on in the winter, could see price increases. "The goal was to outline to our suppliers steps we can take mutually to navigate potential challenges faced in light of the proposed tariffs from both the U.S. and Canada," said Thomas. However, she said Loblaw will do everything it can to reduce the impact of tariffs on customers. "There's still a lot we don't know, but we're doing everything we can to lessen possible impacts for both our suppliers and ultimately for customers," she said. Loblaw is also looking to boost its supply of Canadian-made products and is making it easier for customers to find domestically made products in-store. On an earnings call earlier this month, CEO Per Bank said the company was seeing a "significant uplift in sales" of products labelled as prepared in Canada. He said less than 10 per cent of the company's supply comes from the U.S., mainly produce. 'If tariffs are applied on produce, there's where we will be mostly impacted,' said Bank. The weaker loonie is also putting pressure on imports from the U.S., Loblaw said in a report on food inflation released Thursday. This affects foods directly imported from the U.S. like lettuce and tomatoes, as well as goods from other countries that are priced in U.S. dollars, like some coffee and citrus, the company said. Amid the pressure, "suppliers continue to seek to pass on their higher costs," Loblaw wrote in the report. "While many of these are justified given the current economic situation, we continue to work closely with our suppliers to manage prices for customers but expect this to be a headwind for food prices in the coming months." Loblaw and the other grocers came under scrutiny during and after the heights of food inflation, and were accused of unduly profiting from it, which they denied. On the February earnings call, chief financial officer Richard Dufresne said Loblaw continues to see higher-than-normal price increase requests from large global suppliers. This report by The Canadian Press was first published Feb. 28, 2025. Companies in this story: (TSX:L) Rosa Saba, The Canadian Press Sign in to access your portfolio
