MONTREAL, May 21, 2024 /CNW/ -
The Société des alcools du Québec (SAQ) will implement an
upward price adjustment on Sunday, May
26. The prices of its regular and continuous- replenishment
products will increase by an average of 0.7%.
"Our teams were able to negotiate lower maritime transport
costs, allowing us to limit the price increase we are announcing
today, which is to the benefit of our customers," said Jacques
Farcy, President and Chief Executive Officer, SAQ. He added: "In
other words, we're keeping our prices fair and competitive,
something that is an invaluable part of the SAQ customer
experience. The depth of our product offering, along with the
quality of our store associates' expert advice, means that every
customer will still be able to find a wine or spirit product to
suit their expectations as well as their budget."
May
26 price adjustment to regular and
continuous-replenishment products
|
Overall average price
increase
|
0.7 %
|
Number of products with
stable prices
|
469
|
Number of products with
price decreases
|
935
|
Average
decrease
|
-$0.35
(-1.5%)
|
Number of price
increases
|
2,096
|
Average
increase
|
$0.53 (1.8%)
|
Value pick pricing maintained
After adding 30 new Value pick products, which retail for under
$12, over the past year, the SAQ is
maintaining its offering in this category, which now comprises 139
products.
Factors influencing the price adjustments
Moderate adjustment to the markup
The moderate markup adjustment that the SAQ announced this past
February excluded wines that sell for $15 or less, which account for 41% of bottles
that it sells. The adjusted markup on a $25 wine has resulted in an increase of 0.6%, and
the impact will be the same for a $45 bottle of spirits. This adjustment also comes
into effect on Sunday, May 26.
Higher production costs for suppliers
The SAQ's suppliers are not immune to inflation; their costs have
therefore increased. The SAQ received 1,377 upward-adjustment
requests from suppliers and, following negotiations, proceeded with
814 price increases.
Curbside recycling
To continue meeting its obligations toward Éco Entreprises Québec
(ÉEQ), which oversees the financing of curbside recycling, the SAQ
has revised the recycling component of its retail price-setting
process. For products in containers other than aluminum, the
rate collected for recycling will increase by $0.01 per container, to $0.14 from $0.13.
Lower maritime transport costs
In spite of geopolitical and climate-related disruptions, the
shipping market is becoming more stable because of lower demand for
imported goods and an increase in shipping lines' capacity. This
means that the cost of shipping goods has come down, which has had
a favourable impact on the retail prices of products sold by the
SAQ, to the benefit of its customers.
Increased excise duties on beverage alcohol
On April 1, the Government of
Canada implemented a 2% annual
increase in the excise duties on beverage alcohol. That increase is
yet another factor influencing the price- adjustment
process.
About the Société des alcools du Québec (SAQ)
Created in 1921, the SAQ imports, distributes and sells a broad
range of wines, beers and spirits. Its sales network comprises 410
stores and 428 agency stores located throughout 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 40,000
products from 3,800 suppliers in 77 countries. In fiscal 2022-2023,
the SAQ remitted more than $2.0
billion to the Quebec
government and supported more than 230 organizations and events
while also ensuring its business activities respected local
communities and the environment.
For more information, visit the SAQ.COM website, follow us on X
(@LaSAQ_officiel) or view our Facebook and LinkedIn
pages.
SOURCE Société des alcools du Québec - SAQ