Canadians' Doritos in jeopardy over a salty business relation-chip

Feb 19 2022, 7:52 pm

A feud between Frito-Lay and Loblaws Supermarket means your favourite chips might not be available at select grocers anytime soon.

The company that makes Doritos, Ruffles, and Miss Vickie’s has put its foot down over a pricing dispute. It’s owned by Pepsi-Co, who recently increased the costs of its items to help offset pressure on Canadian operations and keep their products high-quality.

They also make Lays, Tostitos, Cheetos, Rold Gold pretzels, and SmartFood popcorn.

Suppliers have to propose cost increases for approval before shops distribute their goods. But out of a desire to keep their stock affordable to customers, Loblaws rejected Frito-Lays’ proposal.

The grocer backed up their decision by citing the rising prices of ingredients, transportation, and packaging across Canada, due in part to supply chain issues.

Since Loblaws also owns Shoppers, Zehrs, Fortinos, and more, it’s going to restrict the snack options at a lot of stores.

In an email sent to Daily Hive Vancouver on February 19, Loblaws maintained they are “laser-focused on minimizing retail price increases as much as possible.”

“That’s a challenge when our industry is facing major cost pressures on manufacturing, shipping, ingredients and more. When suppliers request higher costs, we do a detailed review to ensure they are appropriate,” they said. 

“This can lead to difficult conversations and, in extreme cases, suppliers don’t ship us products.”

They refused to comment on the specificities of their negotiations with Frito-Lay.

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