Nanos: Majority of Canadians blame grocery stores for increasing food costs

Canadian consumers are increasingly pointing the finger at grocery stores as the main culprits behind the escalating food prices in the country, reveals a recent survey conducted by Nanos Research for CTV News. The survey, which took place earlier this week and involved over 1,000 Canadians aged 18 and older, shed light on the growing concerns and frustrations surrounding the rising costs of essential food items. According to the survey findings, 32% of respondents identified grocery stores as the primary reason for the sharp increase in food prices, marking a noticeable uptick from 28% in the previous year.

Additionally, more than 20% of participants attributed the price surge to heightened fuel costs, representing a three-percentage point rise from the previous year. The escalating food prices have been a significant financial burden for Canadians, with the surge in costs starting during the COVID-19 pandemic and persisting to the present day. As per the Bank of Canada's latest report, grocery prices have surged by nearly 22% between February 2021 and February 2024, exacerbating the financial strain on consumers already grappling with economic uncertainties.

In addition to grocery stores, survey respondents also pointed fingers at food manufacturers, weather-related events, the Trudeau government, the carbon tax, or a combination of factors as contributors to the rising food prices plaguing Canadian households. The survey also unveiled alarming statistics regarding the increased use of food banks across the country. Nearly one-in-five Canadians stated that they or someone they knew had utilized a food bank in the past year, highlighting the growing prevalence of food insecurity among households.

The demographic with the highest proportion of respondents who reported knowing someone who had accessed a food bank was within the 18 to 34 age group, at just under 27%. Similarly, the region with the highest percentage of affirmative responses was the Prairies, at 27.5%.

A disturbing trend highlighted in the survey was the increasing strain on food banks and charitable organizations, with more than one-third of them reporting having to turn away individuals seeking assistance. According to a study by Toronto-based Second Harvest titled "Hungry for Change," over one million Canadians are anticipated to seek aid from food charity programs for the first time in 2024, underscoring the escalating food insecurity crisis gripping the nation. Lori Nikkel, the CEO of Second Harvest, expressed concerns over the mounting pressure on food charity systems, emphasizing that rising food costs are pushing more individuals towards seeking aid from food banks as a last resort, straining the capacity of existing support systems.

To address the growing concerns over the rising food prices and ensure fair practices in the grocery industry, the Grocery Industry Code of Conduct Steering Committee has been advocating for the establishment of Canada's first grocery code of conduct. The proposed code aims to promote fairness in commercial dealings between suppliers, independent retailers, and major Canadian grocers to safeguard consumer interests and ensure access to affordable and innovative product options. In a bid to push for the implementation of the grocery code of conduct, the House of Commons' committee overseeing food prices called on Loblaw and Walmart to sign onto the code or face potential legislative action.

While both organizations have expressed reservations about the current draft of the code, citing concerns over potential price hikes for consumers, Empire Co. Ltd. CEO Michael Medline has voiced support for the initiative, asserting that there is no evidence to suggest that the code would lead to increased food prices.

Medline emphasized the importance of all retailers coming on board with the grocery code of conduct, stressing that unity among industry players is crucial for driving meaningful change and ensuring fair practices within the sector. However, he acknowledged the existing stalemate in negotiations and described the situation as a "game of chicken" as stakeholders navigate the path towards consensus. The survey data presented in this article was derived from an RDD dual frame survey commissioned by CTV News and carried out by Nanos Research.

Conducted via phone between March 31 and April 1, the survey polled a random sample of 1,069 Canadians aged 18 and older, with a margin of error of plus or minus three percentage points, 19 times out of 20.