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The SAQ prepares to adjust prices in response to inflationary pressures and climate challenges

Montreal, November 2, 2021 – Next Sunday, November 7, the SAQ will implement a price increase averaging 1.66% on 1,332 products always found on SAQ shelves. The increase is attributable to the inflationary environment that is currently affecting the prices of many consumer goods.

Several SAQ suppliers face unprecedented challenges that are having an impact on their production costs. These include labour shortages and higher prices for bottling supplies (glass, stoppers, etc.) and shipping. At the same time, the challenging weather conditions seen in several wine-growing regions have placed additional pressure on prices.

“Wine-growing regions that are much appreciated by our customers have been severely and repeatedly affected by bad weather related to global warming, especially early in the year,” said Catherine Dagenais, President and Chief Executive Officer of the SAQ. “This has included successive hard frosts in France and periods of drought in Spain and Italy. These developments have greatly reduced product availability in some regions. But SAQ negotiators have succeeded in maintaining a balance. While being sympathetic to the unprecedented challenges faced by a number of our producers, we continue to give Quebecers access to the products they enjoy and to do so at the best possible price.”

Continuous replenishment products (accounting for more than 90% of the SAQ’s annual sales)

Upward adjustments  1,332
Average increase  $0.40 (1.66%)
Downward adjustments 68
Average decrease $0.31 (-1.61%)


Of the 1,332 products affected by the increase, some 50 will only see their prices rise on January 30, 2022, as they are currently on promotion.

Areas mainly affected

Hard hit by bad weather and experiencing reduced product availability, France’s wine country is responsible for the biggest increases.

Wine-growing region Price increase (%)
White Burgundy 11.8%
Red Burgundy 7.5%
Beaujolais  5.1%
Loire Valley 3.6%
Southern France 2.1%

 

Italy, Spain, Portugal and other countries somewhat less affected by challenging weather conditions are seeing an average increase of 1.5% for their products.

Batch order specialty products (accounting for less than 10% of the SAQ’s annual sales)

Is should be noted that the prices of specialty products, which are mainly offered in the Cellar Space, are negotiated on a batch-by-batch basis and may vary depending on availability. On November 7, the prices of 619 of these products will rise an average 2.6%.

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 409 stores and 429 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 44,000 products from 3,700 suppliers in 82 countries. In fiscal 2020-2021, the SAQ supported some 300 organizations and events and paid a dividend of $1.219 billion to the Quebec government, while also ensuring its business activities respected local communities and the environment.

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