Latest news with #LoblawCompaniesLtd.
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
20-04-2025
- Business
- Yahoo
Some Canadian stores are labeling US imports with a T for 'tariffs' — and buyers are snapping up alternatives
Some Canadian retailers are now labelling products imported from the United States. Some stores were already labeling locally-made products since Trump's tariffs were announced. Empty shelves show consumers are responding with strong preferences for Canadian products. Some Canadian retailers aren't playing nice about US imports anymore. They've escalated from simply labeling products made in Canada to singling out American-made products with a warning label "T" for "tariffs." Loblaw Companies Ltd., which operates about 2,400 stores across Canada, announced on March 10 that it planned to roll out the 'T' label on US-imported goods that may have been subject to a tariff-related price increase. As the warning labels have been slowly rolled out over the last month, shoppers have noticed and are buying accordingly. An April 17 Leger poll found that 76% of Canadians have increased their purchases of locally made and sourced goods in recent weeks, representing the highest number of respondents looking to buy Canadian goods since the market research firm began tracking the behavior in mid-February. Business Insider previously reported that Canadians have seen a surge in patriotism since President Donald Trump, in mid-March, made comments about making the 158-year-old nation the 51st US state — and that patriotism is reflected in the grocery aisle. "All the grocery stores now have Canadian and American labelled produce — and the Canadian produce is always gone," Vancouver-based shopper Isabella Zavarise told BI. It's not just a preference for Canadian-made goods; it's an active avoidance of US imports, Zavarise said. And the preference isn't about saving money — quite the opposite: "Everyone I know is shopping local despite how expensive it is," she added. The Canadian Broadcasting Corporation reported that small grocery stores, in particular, are seeing price increases related to the tariffs being exchanged between the US and Canada, and the country's consumer price index rose 2.3% year over year in March, following an increase of 2.6% in February. Prices of American imports have skyrocketed — 100ml of Tropicana orange juice is listed for $13.99 at Metro stores, another Canadian chain — but even locally-made goods have seen increases, the outlet reported. The US and its Northern neighbor have been locked in an escalating trade dispute over Trump's aggressive trade strategy, which, as of March 13, levied tariffs of 25% on many Canadian consumer goods and 10% on energy product imports from Canada. Canada announced 25% counter-tariffs on US goods in response. Representatives for Loblaw and Metro did not immediately respond to requests for comment from Business Insider. Read the original article on Business Insider
CBC
21-02-2025
- Business
- CBC
Loblaw takes PC Optimum hit as customers cash in more points
Social Sharing Loblaw Companies Ltd. is seeing more participation in its popular PC Optimum loyalty program — and more points being redeemed at checkout. Customers redeemed more than a billion dollars' worth of Optimum points in 2024, according to Loblaw's annual report. There are more than 17 million active Optimum users. The strength of the program caused the grocery retailer to take a non-cash charge of $129 million in its fourth quarter that drove profits lower year over year, as the company re-evaluated the program's liability for outstanding Optimum points to reflect the higher use. "We increased this liability based on our expectation that more customers will redeem more of their … points going forward," said chief financial officer Richard Durfresne on a conference call discussing the results. "What it reflects is that more and more consumers are liking PC Optimum, are using it, and so from our perspective ... we're more than happy to do it because it reflects what's happening in our stores." The parent company of Loblaws and Shoppers Drug Mart says its net earnings available to common shareholders amounted to $462 million or $1.52 per diluted share for the quarter ended Dec. 28. The result was down from a profit of $541 million or $1.72 per diluted share in the fourth quarter of 2023. Loblaw highlighting Canadian products Amid a looming trade war with the U.S. that could see import tariffs on both sides of the border, Loblaw has been highlighting domestic products in its stores as shoppers look to buy Canadian. It also added a "swap and shop" feature to its loyalty app to help shoppers find Canadian products more easily. The efforts appear to be paying off. "As we continue to expand this feature, we are already seeing a significant uplift in sales [of] products identified as prepared in Canada," said CEO Per Bank. Loblaw is also monitoring how tariffs could affect prices on its U.S. products. If Trump brings in tariffs and Canada retaliates, it may have to pay more for items it brings in from south of the border, which would also put upward pressure on retail prices. Less than 10 per cent of the company's supply comes from the U.S., said Bank, with most of it being produce. Canada is particularly reliant on produce imports in the winter. "If tariffs are applied on produce, there's where we will be mostly impacted," said Bank. WATCH | Big grocers caught overcharging on meat: Grocery stores overcharge for meat by including package weight 1 month ago Duration 2:36 A CBC News investigation discovered some Canadian grocers were found to be overcharging customers, potentially by including the weight of the packaging in the cost of meat, which over time could add up to millions in profit. One of the grocers has apologized and all have pledged to address the issue. The company has some plans to mitigate the effects of tariffs, but produce is the hardest thing to replace, said Bank, estimating Loblaw could mitigate the impact on about half of the U.S. produce the company buys. "We are seeing these tariffs as a kind of tax on products that will hurt consumers on both sides," he said. But in other areas, the company is better positioned to offer consumers an alternative, Bank said. For example, Loblaw carriers household and cleaning products from more than 30 U.S. vendors but also has a strong array of products in that category among its private-label brands No Name and President's Choice, he said. "If the tariffs will be applied on household and cleaning, then of course, those products will not be competitive anymore, and all the sales will go to our control brands, and they're all produce in Canada," he said. "So that's good for Canada, it's good for customers, and it's good for us." The weakness of the Canadian dollar is adding further inflationary pressure at a time when Canada relies on the U.S. for fresh produce, added Dufresne. "That is inflationary, and we've been starting to feel it quite seriously over the last few weeks." The loonie's decline is also compounding the fact that Loblaw continues to see higher-than-normal price increase requests from large global suppliers, he said. Company to open 50 discount grocers this year On Wednesday Loblaw announced it plans to spend $2.2 billion in 2025, opening 80 new grocery and pharmacy stores with about 50 of them being discount grocers. Bank says many will be smaller-format stores, building the company's network of those types of grocers after launching small-format No Frills stores for the first time last May. The investment, which is part of about $10 billion over five years, will also add 100 pharmacy care clinics to the company's network. The company is also planning to open the first phase of its new automated distribution centre in East Gwillimbury, Ont. The ramp-up starts with frozen products, said Bank. Loblaw opened 52 new stores in 2024, as well as 78 new clinics. On an adjusted basis, Loblaw says it earned $2.20 per diluted share in its latest quarter, up from an adjusted profit of $2 per diluted share a year earlier. Revenue for the quarter totalled $14.9 billion, up from $14.5 billion, as food retail same-stores sales rose by 2.5 per cent. Excluding the favourable impact of the timing of Thanksgiving, Loblaw says food retail same-store sales were up about 1.5 per cent. Consumers continue to favour discount stores over conventional stores, though the gap is stabilizing, said Dufresne. Drug retail same-store sales rose 1.3 per cent, with pharmacy and health care services same-store sales up 6.3 per cent, offset in part by a 3.1 per cent drop in front store same-store sales.
Yahoo
21-02-2025
- Business
- Yahoo
Loblaw takes PC Optimum charge in Q4 as more customers redeem loyalty points
Loblaw Companies Ltd. is seeing more participation in its popular PC Optimum loyalty program — and more points being redeemed at checkout. Customers redeemed more than a billion dollars' worth of Optimum points in 2024, according to Loblaw's annual report. There are more than 17 million active Optimum users. The strength of the program caused the grocery retailer to take a non-cash charge of $129 million in its fourth quarter that drove profits lower year over year, as the company re-evaluated the program's liability for outstanding Optimum points to reflect the higher use. "We increased this liability based on our expectation that more customers will redeem more of their ... points going forward," said chief financial officer Richard Durfresne on a conference call discussing the results. "What it reflects is that more and more consumers are liking PC Optimum, are using it, and so from our perspective ... we're more than happy to do it because it reflects what's happening in our stores." The parent company of Loblaws and Shoppers Drug Mart says its net earnings available to common shareholders amounted to $462 million or $1.52 per diluted share for the quarter ended Dec. 28. The result was down from a profit of $541 million or $1.72 per diluted share in the fourth quarter of 2023. Amid a looming trade war with the U.S. that could see import tariffs on both sides of the border, Loblaw has been highlighting domestic products in its stores as shoppers look to buy Canadian. It also added a "swap and shop" feature to its loyalty app to help shoppers find Canadian products more easily. The efforts appear to be paying off. "As we continue to expand this feature, we are already seeing a significant uplift in sales (of) products identified as prepared in Canada," said CEO Per Bank. Loblaw is also monitoring how tariffs could affect prices on its U.S. products. If Trump brings in tariffs and Canada retaliates, it may have to pay more for items it brings in from south of the border, which would also put upward pressure on retail prices. Less than 10 per cent of the company's supply comes from the U.S., said Bank, with most of it being produce. Canada is particularly reliant on produce imports in the winter. "If tariffs are applied on produce, there's where we will be mostly impacted," said Bank. The company has some plans to mitigate the effects of tariffs, but produce is the hardest thing to replace, said Bank, estimating Loblaw could mitigate the impact on about half of the U.S. produce the company buys. "We are seeing these tariffs as a kind of tax on products that will hurt consumers on both sides," he said. But in other areas, the company is better positioned to offer consumers an alternative, Bank said. For example, Loblaw carriers household and cleaning products from more than 30 U.S. vendors but also has a strong array of products in that category among its private-label brands No Name and President's Choice, he said. "If the tariffs will be applied on household and cleaning, then of course, those products will not be competitive anymore, and all the sales will go to our control brands, and they're all produce in Canada," he said. "So that's good for Canada, it's good for customers, and it's good for us." The weakness of the Canadian dollar is adding further inflationary pressure at a time when Canada relies on the U.S. for fresh produce, added Dufresne. "That is inflationary, and we've been starting to feel it quite seriously over the last few weeks." The loonie's decline is also compounding the fact that Loblaw continues to see higher-than-normal price increase requests from large global suppliers, he said. On Wednesday Loblaw announced it plans to spend $2.2 billion in 2025, opening 80 new grocery and pharmacy stores with about 50 of them being discount grocers. Bank says many will be smaller-format stores, building the company's network of those types of grocers after launching small-format No Frills stores for the first time last May. The investment, which is part of about $10 billion over five years, will also add 100 pharmacy care clinics to the company's network. The company is also planning to open the first phase of its new automated distribution centre in East Gwillimbury, Ont. The ramp-up starts with frozen products, said Bank. Loblaw opened 52 new stores in 2024 as well as 78 new clinics. On an adjusted basis, Loblaw says it earned $2.20 per diluted share in its latest quarter, up from an adjusted profit of $2 per diluted share a year earlier. Revenue for the quarter totalled $14.9 billion, up from $14.5 billion, as food retail same-stores sales rose by 2.5 per cent. Excluding the favourable impact of the timing of Thanksgiving, Loblaw says food retail same-store sales were up about 1.5 per cent. Consumers continue to favour discount stores over conventional stores, though the gap is stabilizing, said Dufresne. Drug retail same-store sales rose 1.3 per cent, with pharmacy and health care services same-store sales up 6.3 per cent, offset in part by a 3.1 per cent drop in front store same-store sales. Loblaw shares fell 2.6 per cent to $174.75 Thursday on the Toronto Stock Exchange. This report by The Canadian Press was first published Feb. 20, 2025. Companies in this story: (TSX:L) Rosa Saba, The Canadian Press Sign in to access your portfolio
