SAQ | Sell, without pushing the bill too much

The new president and CEO of the Société des alcools du Québec (SAQ), Jacques Farcy, is facing a 1.2% drop in sales, a first in 10 years. These results catch his “attention”, he tells us, in an interview with The Pressand place him in a dilemma: generating sales, but without encouraging Quebecers to drink more.

To illustrate this contrast, the state corporation has made two decisions that will affect consumers shortly. Starting in November, customers who check out at SAQ Dépôt stores will see their usual discount reduced. On the other hand, in branches, around thirty new products will enter the “low prices” section, thereby increasing the offer in this category compared to the previous year.

So, with the proliferation of messages about the dangers of alcohol consumption, what should we expect from the state-owned company whose sales fell from 913.1 million to 902.5 million in the first quarter 2023-2024, according to the results revealed this Wednesday? Whether it does everything possible to generate sales or whether it plays a role in raising awareness of the dangers associated with alcohol consumption?

Mr. Farcy, in office since June, is clear: the role of the SAQ is not to prevent alcohol consumption, but to sell it responsibly.

“The line, for us, is clear: if it’s a minor, we don’t sell, if it’s an intoxicated person, we don’t sell. In all other cases, our mandate is to sell,” he said during an interview with The Pressat the head office of the state corporation.

Moreover, no messages relating to consumption habits are visible in branches or on the SAQ website.

However, the former boss of the Société québécoise du cannabis (SQDC) obviously wants to play it safe. Despite declining sales in the first quarter of the 2023-2024 financial year, Jacques Farcy insists that no energetic advertising campaign will be put in place to convince customers to put more bottles in their basket.

“We never like it when sales are down,” he admits, “but we are not going to launch aggressive campaigns to tell Quebecers that it is time to buy a lot more alcohol. We are not here to stimulate sales, we are there to meet demand. » The new president reiterated this message several times during the interview.

Fewer discounts, more low prices

But this unusual decrease in sales compared to the previous quarter, which can be explained according to Mr. Farcy by “multiple reasons” – in particular by an “important awareness in the minds of customers of the fact that alcohol is not not a product like the others” – requires the state corporation to try to find a balance to achieve its objectives while being a good “corporate citizen”.

Two decisions taken recently seem to illustrate the situation: on the one hand, we will reduce the discounts at the SAQ Dépôt, but on the other hand, in the branches, we will stock the shelves of the “low prices” section with around thirty new products at $12, revealed Mr. Farcy. As of November 5, SAQ Dépôt regulars will see their discount reduced from 15% to 10% on the purchase of a case of 12 bottles. The one containing six will now entitle you to a 5% discount instead of 10%.

“Going to 15% seems excessive to us,” maintains Jacques Farcy, who adds that it is still a “difficult decision”.

“Do we need to give such a big discount on alcohol all the time? In relation to our position of responsibility, is it absolutely necessary? We believe that a discount for volume purchases remains necessary, but not to this extent. This is the first reason. The second is more of an economic reason. The discount [donné] at the SAQ Dépôt is a significant investment for the SAQ. And in a slightly more difficult year, we asked ourselves whether it was an absolutely essential investment. This is why we revised it downwards. »

Is the discount considered an incentive for consumption?

The 15% discount was implemented in 2000, when the SAQ Dépôt concept was created, which currently has 10 stores.

Conversely, customers who visit the branches will see around thirty new products appear on the shelves in the “low prices” section, the price of which varies between $7.90 and $12.

“In a period where there is still inflationary pressure, we want to make a few more products available to customers at low prices,” he explains. Some products that were historically low priced have gone up. We don’t expect people to flock to low-price products, but we want to have a good share of offers. For some customers, low-cost products are very, very, very important. »

In June 2023, consumers who came to the store had a choice of 122 products priced at $12 and less.

Busy Autumn

Furthermore, in addition to these changes, anyone who returns to the SAQ after working there between 2015 and 2021 risks having a busy fall. Price increases on products, usually announced twice a year, are expected in November, shortly before consumers start doing their Christmas shopping. Then, negotiations with the Union of Store and Office Employees of the Société des alcools du Québec (SEMB-SAQ-CSN), without an agreement since March 31, 2023, are still continuing.

Mr. Farcy, who finds himself at the head of “a company like no other”, was appointed president following the departure of Catherine Dagenais.