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Loblaw exec denies grocery giant is profiteering from food inflation

Click to play video: 'Loblaws freezes prices on No Name products'
Loblaws freezes prices on No Name products
Loblaws has announced the decision to freeze prices on all of its No Name products until January 31, 2023. Food economist Mike von Massow joins Antony Robart to discuss whether other companies will follow suit and what this means for the brand – Oct 18, 2022

A Loblaw executive is disputing an accusation that the grocery giant is taking advantage of inflation to drive up its own profits.

The company’s senior vice president of retail finance, Jodat Hussain, testified at the House of Commons agriculture committee today as part of its study of food inflation.

Read more: Future food prices uncertain as suppliers up costs, Metro, Loblaw warn

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Hussain told MPs Loblaw has been raising prices because suppliers are charging more, and that the company’s gross margins on food have remained stable.

The executive said Loblaw pushes back on suppliers when they do propose raising prices, citing its disagreement with Frito-Lay over the price of potato chips, which led to empty shelves during the dispute.

The rapidly rising cost of groceries has become a hot-button issue in politics, with food prices up 11 per cent in October compared with a year earlier.

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The New Democrats have accused companies like Loblaw of profiting off of inflation by unfairly raising prices on consumers.

Click to play video: 'Consumers react to Loblaw’s move to freeze cost of No Name items'
Consumers react to Loblaw’s move to freeze cost of No Name items

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