Niche Quebec products | Appetite for discount brands

Driven by inflation, Quebecers have turned to discount grocery stores. Local food product manufacturers are now trying to follow them by carving out a place for themselves on the shelves of these brands.

And while the federal government is putting pressure on the managers of large chains and processors to curb the rise in grocery prices, certain manufacturers here are modifying the recipe of their products – without neglecting quality, they insist – to make them more affordable.

“Consumers are now going where prices are lower. We can totally understand that. If we are not available there, it is certain that there is an effect on our sales,” says bluntly Élaine Bélanger, co-owner and vice-president of operations of Maison Orphée, a Quebec company specializing in manufacturing. oils, vinaigrettes and mustards.

To do this, she recognizes that her company is much more offensive than before in its approaches to discount brands like Maxi and Walmart. “We were marginally in these places, among others at Maxi. The idea is to vary our offer to sell more at Maxi and even at Walmart. »

Thus, mustards and vinaigrettes signed Maison Orphée should soon be offered on the shelves of the American brand.

Known for its colorful granola bags, La Fourmi bionique, whose products have been on sale at Maxi and Super C for several years, is also putting energy into its presence in this type of chain. “We developed the economy format a long time ago [808 g]. We were therefore already well positioned in this type of market,” explains its president, Geneviève Gagnon.

“We know that it is very promising to be in these markets: Costco, Maxi, Super C. We are not yet in Walmart, but it is certainly something that is possible, desirable for us. »

Already present in ordinary supermarkets, the glass jars of mayonnaise from Cuisine Poirier, from Lanaudière, could also find a place in the refrigerated areas of discount chains. “We are starting our steps to try to get there. We are having discussions about going back to Maxi. We are in a few Super Cs, says Jonathan Poliquin, co-owner of Cuisine Poirier. It’s definitely part of the discussions. Customers are increasingly fond of these markets. »

As for Loblaw (Maxi, Provigo), Johanne Héroux, senior director, corporate affairs and communications, confirms that companies have surveyed them and that there is an “openness”.

At Super C, spokesperson Geneviève Grégoire affirms that manufacturers are indeed showing interest in the brand, but not more than before. She also emphasizes that the channel is always open for discussions.

An acceptable retail price, a capacity to produce so that the shelves can be filled as soon as they are emptied and a certain “velocity” meaning that the product does not have to sit there and collect dust are all boxes for those who aspire to make their entry at Maxi must check.

A difficult mission to fulfill, admits Hugo Magnan, president of the MAG Group, which sells its mayonnaises at Maxi. Although he has noticed a shift in his sales towards low-cost brands, he recognizes that finding a place there is not an easy task.

“We benefited from the fact that we were on these shelves,” he maintains. These chains have grown a lot and that has benefited us in terms of sales volumes.

“But there is a cost for being in these brands. We need to have tighter margins. You have to sell at lower prices occasionally. »

Change the recipe

Furthermore, in addition to going out of their way to make their products accessible everywhere, manufacturers feel pressure not to raise their prices, as evidenced by the steps taken recently in Ottawa by the Minister of Industry, François- Philippe Champagne, to curb the increase in grocery bills.

And suppliers who try to get retailers to accept price increases are often refused, say the manufacturers interviewed.

“We will have to offer options to consumers,” believes Élaine Bélanger. Faced with the surge in the price of olive oil caused in particular by droughts and abnormally high temperatures in Spain – the world’s largest producer – Maison Orphée decided to market a brand new, more affordable product.

“We launched the perfect oil on the market in May, which is a blend of five organic oils in total. » It is composed of sunflower, sesame, flax, canola and extra virgin olive oil.

Same strategy at Groupe MAG, where we are working on developing mayonnaise recipes intended for restaurateurs that are more affordable.

“This reality is not just at the grocery store. Restaurateurs shop around and try to save money,” recalls Hugo Magnan.

Does it intend to make the same shift for its retail products? Not at the moment, he replies. “We’re thinking about it. Indeed, he adds, however. But for now, we are holding on tight and hoping that things will calm down. »