Ottawa may be hoping a new major player in the food industry will compete with Canada's big five grocers, but the country is unattractive to foreign banners.
German grocery chains such as Aldi, present in 18 countries, or Lidl, represented in 26 countries, are following the debates in Canada, but are probably not very interested in setting up shop there, experts say.
“Players like Lidl and Aldi follow the news in Canada. We see that on the one hand there is a culture of pricing and on the other hand we constantly appoint CEOs [des entreprises en alimentation] in Ottawa so they can explain why they make too much money,” commented Scientific Director of the Agri-Food Analytical Sciences Laboratory at Dalhousie University, Sylvain Charlebois.
In the USA, the Aldi banner is gradually attracting Americans, including in Ogdensburg, New York.
“Usually they are 15, 20, sometimes 25% cheaper than elsewhere,” commented one customer TVA Nouvelles met.
However, it is more difficult to settle in Canada, a huge country with a low population density.
“You have to deal with two languages, two cultures and two regulatory systems,” explained Jacques Nantel, professor emeritus at HEC Montreal specializing in retail.
Despite the challenges, the Minister of Innovation, Science and Industry hopes to attract a new grocer that can compete with the five established giants – Loblaw, Metro, Sobeys, Costco and Walmart – that control more than 75% of the grocery market in Canada.
“It is not easy. […] I don’t know whether I will succeed, but not trying is not an option,” commented Minister Champagne at an impromptu press conference.
But even if a sixth player were to settle in Canada, prices wouldn't necessarily go down.
“Each player will by definition have a smaller market share, and a smaller market share means less bargaining power with suppliers,” Mr Nantel said.
With information from Raymond Fillion, TVA Nouvelles