Some argue that grocers are simply trying to keep sticker prices low and stop suppliers from using inflation to justify unreasonable price hikes. The rift between Frito-Lay and Loblaw exposes deepening tensions in Canada's food industry that many experts say could worsen as supply chain challenges and inflation continue. "This can lead to difficult conversations and, in extreme cases, suppliers don't ship us products."
"When suppliers request higher costs, we do a detailed review to ensure they are appropriate," she said in an email. Loblaw spokeswoman Catherine Thomas said the grocer is "laser focused" on minimizing retail price increases. we have made adjustments to our prices that are consistent across the marketplace." "To help offset these pressures on our Canadian operations. "Our business has faced unprecedented pressures from rising costs of items including ingredients, packaging and transportation," she said in an email.
The situation has left the chip and snack food aisle of many Loblaw stores less full than usual or stocked with the retailer's house brands, President's Choice and No Name.įrito-Lay spokeswoman Sheri Morgan confirmed there is a "temporary disruption" with one customer. as the maker of brands like Cheetos, Doritos, Lays, Ruffles and Sunchips tries to recoup higher costs. One of Canada's biggest food manufacturers has halted shipments to the country's largest grocer in an extreme example of how inflation is impacting the food industry and driving a wedge between some retailers and suppliers.Īt issue is a dispute over pricing between Frito-Lay Canada and Loblaw Companies Ltd.