2023-06-12 04:56:50
Aperitifs and meals taken on the terrace this summer will in some cases taste (and cost) more salt. The price of 1,862 products sold on the shelves of the SAQ will undergo an average increase of 1.1%. Most of the increases will come into effect on June 18, at the dawn of the holiday period.
Meanwhile, wine and spirits agencies are asking for price increases to be made at any time of the year to better adjust to market needs. Currently, they are announced twice a year.
So, in just under a week, wine lovers will pay an average of $0.87 more for a bottle. Consumers who particularly appreciate the wines of Beaujolais and Burgundy will have to put their hands in their pockets more, since these products are among those which have recorded the strongest increase. Champagne is no exception either. However, it was impossible to know by what proportion these specific products will increase. The scarcity effect would create this pressure on prices.
After announcing an average increase of 2.4% on 1,458 items in November 2022, the SAQ prides itself on having been able, this time, to “limit” price increases, in particular due to the “recent drop in fees of maritime transport”. This is what explains why the increases that were to be announced in May were postponed to June to allow the state-owned company to finalize its discussions with maritime carriers. The costs of these had exploded during the pandemic.
“In the inflationary context that we have been experiencing for several months now, our teams have been able to maintain a balance between the justified requests of our suppliers and to offer products from all over the planet at a fair and competitive price”, declared Monday Catherine Dagenais, president and CEO of the SAQ, in a press release. “Like any retail business, the SAQ is not immune to inflation. However, despite the growth in the value of the euro and the US dollar and the increase in the cost of raw materials, we were able to limit the rise in prices well below the Consumer Price Index, which was at the Quebec last April at 4.8%. »
In return, 795 products will experience an average price drop of 2.7%.
Increases at any time of the year
Normally announced in May and November, price increases should be possible at any time of the year, estimate 78% of members of A3, an association which brings together 80 wine and spirits agencies, representing 95% of SAQ sales. “The price of bananas at the grocery store changes according to orders, conditions. Alcohol, wine, spirits, it’s exactly the same thing, ”illustrates the general manager of A3, Catherine Lessard.
“It’s really a strong majority of our members who think that the adjustments should be made continuously during the year because it would really better represent the reality of the producers with whom they do business. With two tracks, producers are forced to play it safe because they don’t know what’s coming up over the next few months. These are not increases that are 100% accurate. »
A vision shared by Frédéric Laurin, professor of economics at the University of Quebec at Trois-Rivières (UQTR).
Normally, there should be very constant price adjustments, on a regular basis depending on market conditions. It can be ups, or it can be downs.
Frederic Laurin
Why does the SAQ not proceed in this way? Question of public relations, believes Mr. Laurin. “At Metro, when the price of mayonnaise goes up, do they do a press release with that? »
Moreover, all these announcements come at a time when, following the departure of Mme Dagenais on June 25, a new leader will soon take control of the SAQ. Meanwhile, in the midst of negotiations, the Union of store and office employees of the Société des alcools du Québec (SEMB-SAQ-CSN) says it fears that the state-owned company will close certain branches and replace them with private agencies, kind of SAQ counters inside some convenience stores and grocery stores.
Price adjustments
- Average increase: 1.1%
- Number of products: 1862
- Products particularly affected: champagne as well as Beaujolais and Burgundy wines
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