Tuesday, February 22, 2022

Frito Lay spats with Loblaws

Frito Lay has stopped shipping potato chips and other snack foods, such as Doritos, to Loblaws supermarkets because it has been unable to get price increases it seeks.

Loblaws for its part said it is trying to keep grocery prices down for its customers.

It is highly unusual for a supplier to Canada’s largest supermarket company to fail to yield to pricing pressure.

The stores that are not being supplied include Loblaws, Zehrs, Fortino’s, Shopper’s Drug Mart, No Frills, T&T and Super Centres.

Frito Lay’s main Ontario facility is in Cambridge. It is owned by PepsiCo.

The federal, provincial and territorial agriculture ministers are engaged in a review of relationships between supermarket chains and suppliers with a view to developing a code of practice.

The concern has been that the supermarkets hold too much power over suppliers.