Yogurt prices confound Canadian TikToker in viral video: 'Need a public inquiry'

A Canadian’s TikTok has gone viral after pointing out that his favourite Greek yogurt brand is going for $6.99 — a high price point that’s also been matched by other competitors in his local Loblaws.

It’s raised questions of price fixing, but also provides a look into the Canadian dairy market.

The TikTok user — who goes by Bryan and the handle “thebnoth” — really enjoys the coconut flavour of Liberté Yogurt. But because of its price, he decided to look to Oikos, and then President’s Choice, only to add to his confusion and disappointment that they are all $6.99.

“We’re going to need a public inquiry into what’s going on … I can’t afford this these days,” said Bryan, who did not respond to Yahoo Canada in time for publication.

The host wonders why wouldn’t one of the companies make their yogurt cheaper, in order to attract customers, saying that if he found one at a $5.99 price point, he’d buy it. Instead, he’s baffled by the “impossible” logic that all these companies have the same product and distribution costs.

“I don't know anything about business. So I just want to be able to buy my coconut Greek yogurt without going into extreme debt.”

Others joined in the comment section of the TikTok video, also voicing their outrage. One user asked why he’s shopping at Loblaws, to which he replied “it’s either walk across the street or walk 30 min/take 2 buses.”

It seems like a common problem Canadians are having, as many have voiced frustration over food prices amid inflation. Common among the commenters is also the question of whether this act constitutes price fixing, which is illegal in Canada.

Understanding the Canadian dairy landscape

Dr. Sylvain Charlebois is the 2023 project lead for the annual “Canada’s Food Price Report.” He says there is some sort of price fixing, but it’s not a “new problem or phenomena.” It's the result of the Canadian Dairy Commission (CDC), who sets prices as part of their supply management.

As a result, all manufacturers, like Lactalis and Agropur, are required to pay the exact same for dairy inputs. It’s not as common in other food sectors, but it is for dairy, which is why we’ll often see products like milk, sour cream, ice cream and yogurt have their prices rise or decrease in unison.

“When the CDC raises farm gate prices, it eventually catches up to consumers pretty much at the same time. … Only Canada has a system like that,” Charlebois said.

When dairy companies buy from farmers, they don't get to negotiate the price. Instead, it’s set by the CDC, which is a Government of Canada Crown Corporation. For consumers, it comes off as some sort of “quasi-collusion going on in the dairy section.”

Setting the prices is also on the grocery store. Having the products listed at the same price could be a marketing strategy by Loblaws, who did not respond to Yahoo Canada in time for publication.

Charlebois explains that the price is ultimately set after negotiations with different companies as they figure out listing prices — based on factors such as shelf space and promotions.

In this type of situation, it’s what he calls “a lose-lose scenario.” If one company has a higher price, then consumers will accuse them of price gouging. If the prices are the same, then they’ll be suspected of collusion.

Are grocers price gouging amid inflation?

Charlebois says that those who are accusing big grocery stores of price gouging aren’t taking the time to do their research and look into the data. For Loblaws, their food sales went up 8.4 per cent last year, while the food inflation rate was 10.6 per cent.

“Groceries are being accused of a lot these days, for baseless reasons. The grocery business is just way more complicated than that. … People are convinced that grocers are gouging. They’re treading water with food sales at best.”

He notes that these corporations are making more selling “lipstick and drugs” in comparison. It’s a result of people buying less food from places like Loblaws amid inflation, and instead turning to budget stores.

“If there was evidence of gouging we would have said so. But there's none,” he said.

When thinking about the big picture, Charlebois also points that Canada has one of the lowest food inflation rates in the world.

“Nobody [in Canada] cares what's going on in Germany or the U.K. or Brazil. It's a worldwide phenomenon. To think Canada is immune to what's going on is to be very naive.”

What help is currently on the way

To help ease the burden on Canadians, the federal government announced in March that it will introduce a Grocery Rebate as part of its budget. It comes after a public inquiry into food inflation was launched.

For Charlebois, he’s not too certain it’ll help.

“As soon as the government actually spends more money in the economy, it makes inflation worse. Prices could rise even more as a result. … I'm very concerned about that.”

He doesn’t believe a one time payment will be the solution. Instead, he’d like to see a food stamp program, as the government could incentivize the sale of healthy food — like Greek yogurt — and encourage people to buy Canadian products.

“Right now we're just giving them money and they can do whatever they want with it.”