Low prices are disappearing from the shelves of the SAQ. Since January 2022, the supply of wines under $10 a bottle has fallen by 44%.
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The number of wine products in a 750 milliliter format that retail for less than $10 has fallen from 62 to 35 in 12 months, according to data from the web magazine Vin Québec.
There is also a decrease in the supply of wines priced under $15, which fell by 22% for the same period.
Both in stores and on the government corporation’s website, the number of products offered in this price category is now 488 compared to 624 at the same time last year.
“It’s not related to demand, since in a monopoly situation, it’s only supply that counts,” says Vin Québec publisher Marc-André Gagnon.
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Some products have not, however, disappeared from the shelves of the SAQ. But their price has gone up.
A bottle of Chevalier de Dyonis Romanian Pinot Noir, for example, retailed at $9.55, compared to $11.25 today.
The bottle of Vila Regia, Reserva Douro, well known to lovers of low prices, went from $9 to $10.95 in 24 months.
Since May 2021, the SAQ has carried out three price increases on more than 5,000 products in total.
“The government has asked them to get $44 million more in 2022. This may have something to do with the disappearance of low-priced bottles, because in terms of volume, the SAQ does not sell more wine than last year”, notes Marc-André Gagnon.
Unable to increase the volume of sales, the SAQ would therefore seek, adds the wine expert, to increase the value of the average basket.
During its fiscal year, which ended on December 9, the SAQ indicated that it sold 109.6 million liters, compared to 108 million during the same period of 2021-2022, an increase of 1.5%.
These sales represent $1.865 billion, compared to $1.760 billion in 2021-2022, an increase of 5.9%.
If the products at low prices are less numerous, it is quite the opposite for those which are more expensive, points out the editor of Vin Québec.
In one year, the number of products priced at $15 and over jumped by 14% (from 6,324 to 7,231) and those priced at $20 and over, by 15% (from 4,980 to 5,732).
The SAQ does not comment directly on the drop in the number of low-cost products it offers.
It argues that its price increases “respond to the legitimate demands of our suppliers related to the various challenges they face, in particular the increase in their production costs”.
The increasing cost of transport is also mentioned to justify the situation. “The global supply chain continues to be disrupted, the increase in maritime and land transport costs persists”, explains spokesperson Geneviève Cormier.
“Despite this trend, the SAQ is doing everything it can to maintain an offer that includes low prices,” she adds.
