The SAQ announces an upward price adjustment of 3.7%

MONTREAL, May 16, 2022 /CNW Telbec/ – Next Sunday May 22at a time when the supply chain is experiencing disruptions and transportation costs are rising even as supplier production costs are on the rise, the SAQ will implement a 3.7% upward price adjustment on average over 2,550 products still available on the shelves and on the company’s website

“As I’ve had the opportunity to mention in recent weeks, our suppliers are facing major challenges as inflation hits new highs around the world,” said Catherine Dagenais, President and CEO of the SAQ. “Our teams negotiated with suppliers to strike the right balance between offering fair and competitive pricing to customers and addressing the legitimate concerns of suppliers facing these challenges.”

Regular and continuous replenishment products (more than 90% of the SAQ’s annual sales)

Number of price increases

2,550

Average increase

$0.78 (3.7%)

Number of price drops

182

Average decrease

-$0.62 (-2.1%)

Number of products at stable prices

606

Most affected regions

  • Beaujolais: 6.4%
  • Burgundy: 7.7%
  • Loire Valley: 5.5%

Of the 2,550 products experiencing a price increase, some 80 will see their adjustment postponed until July 17, 2022because they are currently on sale.

Reasons for price adjustment

Increased shipping rate and supply chain disruptions
Delivery costs are rising, which puts additional pressure on the costs of the SAQ, which is committed to maintaining an exceptional product offering for its customers. Additionally, since late 2020, the global supply chain has experienced widespread disruptions that have complicated the shipment of products, particularly ocean shipping, often requiring route changes and longer delivery times.

Increase in supplier production costs
In addition, a significant number of suppliers have seen their production costs increase in recent months. Shortages of dry matter (glass, corks, labels, etc.), elements necessary for bottling and shipping products, exert strong pressure on prices. Added to these challenges is a labor shortage that affects many of our producers around the world.

Climate challenges
Adverse weather conditions in 2021 continue to affect product supply in some wine regions, with reduced availability of some items and continued high demand. The situation persists in some regions, including Beaujolais and Burgundy, and their products are seeing the biggest price increases.

Higher excise taxes on alcoholic beverages
On April 1, the Canadian government proceeded with its annual increase in the rate of excise tax on alcoholic beverages. For wine, the rate increased by 2.4%. Another factor influencing the price adjustment process is the increase in tariffs.

Bulk order of specialty products (less than 10% of annual SAQ sales)

Note that the prices of specialty products, generally stocked in the Espace Cellier, are negotiated lot by lot and may vary depending on the market. On May 22prices will increase by 3.3% for 1,328 specialty products and decrease by 2.6% for 157 others.

About the Société des alcools du Québec (SAQ)

Founded in 1921, the SAQ imports, distributes and sells a wide range of wines, beers and spirits. Its sales network includes 409 stores and 429 agency stores spread over Quebec as well as a transactional website, SAQ.com. Driven by the passion and know-how of its 7,000 employees, the SAQ offers Quebecers a world of discovery, with nearly 44,000 products from 3,700 suppliers in 82 countries. During the 2020-2021 fiscal year, the SAQ supported more than 300 organizations and events and paid a dividend of more than $1.219 billion to Quebec government while ensuring that its business activities respect local communities and the environment.

SOURCE Quebec Liquor Corporation – SAQ

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Eleanor C. William