B.C. NDP promise to cap grocery prices met with skepticism, pushback
With British Columbia voters going to the polls this October, current Premier David Eby is leaning into concerns about the rising cost of living by announcing a plan to tackle high grocery prices.
During a press conference on Oct. 2, Eby announced a set of measures aiming to cap grocery prices in the province, which he said could save residents roughly $700 a year.
His plans centre on a “price guard” that would limit retail profit margins on such common grocery staples as milk, eggs, cheese, butter and poultry.
Eby also proposed caps on corporate retailer markups for food essentials, putting an end to anti-competitive real estate contracts and measures to tackle shrinkflation—all to reduce the more than $17,500 a family of four spends per year on groceries in the province.
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“We’ve all seen our grocery bills go up and up while the profits of grocery giants soar,” said Eby. “That’s why we’ll protect working families with new measures to cap unfair increases on grocery staples and protect you from rising prices every time you shop."
As soon as Eby announced the measures, questions about how effective they would be in tackling the rising cost of groceries immediately were voiced by various opposition and industry groups.
Gavin Dew, Conservative Party of BC candidate for Kelowna-Mission, likened Ebby’s plans to that of an “arsonist offering to put out the fire.”
“David Eby promised every family $1,000 for groceries last election and cancelled it before his first budget. Life has only gotten more expensive under the NDP, and families know he’ll break this promise, too,” he said in a statement.
The Retail Council of Canada (RCC) in a statement sent to Canadian Grocer said while the announcement “promises savings” it overlooks the factors that drive grocery prices and would instead increase prices.
“The proposed ‘Price Guard’ targets milk, eggs, cheese, butter and poultry—all supply-managed products where the initial price is set by marketing boards,” the RCC said. “Canada is in a trade war to preserve our supply-managed system and to protect Canadian farmers. Capping retail margins won’t address the underlying costs of getting food to shelves.”
The RCC added that the government should address rising costs across the supply chain, particularly transportation, organized retail crime and other cost increases resulting from government regulation.
“B.C. families deserve a grocery debate grounded in facts—not political talking points.”
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Some of Canada's grocers have addressed rising grocery costs. Per Bank, CEO and president of Loblaw Companies, for example. In January 2025, he wrote an open letter acknowledging the squeeze Canadians are feeling in the grocery aisle, but argued that excess profit and lack of competition in Canada’s grocery market were not to blame for higher prices.
“Grocery profit margins have remained stable from pre-pandemic levels, averaging around 3% to 4%, with the remaining 96% going to food manufacturers, growers, wages, store operations and taxes. This contrasts with an average profit margin double that for companies listed on the TSX60 at more than 10%, and approximately 15% for top global food manufacturers operating in Canada,” Bank said.
“Further, high food prices are a global phenomenon not driven by grocer profits but driven instead by suppliers suffering from supply chain disruptions, geopolitical turmoil, climate change, increased ingredient and commodity costs, and a host of other factors.”
Canadian Grocer reached out to several of the major grocery chain operators in British Columbia for comment on Eby’s proposals but did not hear back from them at the time of publication.
