Galen Weston, the billionaire owner of Canada’s largest grocery chain Loblaw Cos., has expressed concerns that surging energy prices could reignite food inflation. Speaking at an event in Toronto, Weston warned that disruptions to global oil supplies due to Middle East conflicts are driving up costs for essential inputs like diesel and fertilizer, which could soon be reflected in grocery prices.
Weston emphasized that while he doesn’t expect inflation to return to the 11% peak seen in 2021, he remains vigilant about the pressures on the food supply chain. Over the past six years, grocery prices in Canada have surged by 33%, according to recent data from the country’s statistics agency. The Bank of Canada raised interest rates this week to combat inflation, which is already creeping up due to higher fuel prices.
Weston recalled the backlash he faced during the Covid-19 pandemic when food inflation soared, labeling him “the most hated person in Canada.” He was called before a parliamentary committee and criticized on comedy shows. A Reddit group, “Loblaws Is Out of Control,” grew to tens of thousands of users, where shoppers vented about rising food prices. Weston defended his company, arguing that grocery stores have little control over food prices, as they are largely determined earlier in the supply chain.
The parliamentary committee’s report blamed the post-pandemic food inflation surge on supply chain pressures and corporate concentration in the food sector. Weston, however, argued that the Canadian grocery industry is already competitive, with American retailers Walmart Inc. and Costco Wholesale Corp. being major players. He also dismissed concerns about algorithmic pricing, stating that such practices are not feasible in physical grocery stores.