The price reductions offered at the SAQ Dépôt will be less attractive for consumers starting November 5. However, the discounts that suppliers must grant to the state-owned company, if they aspire to sell their products there, have not been reduced.
Starting 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%. And in addition to seeing their discounts drop at the SAQ Dépôt brand, customers who shop in all branches will see the price of 1,877 products increase on average by 1.2% also on the same date.
Several agencies and suppliers denounce the reduction in the discount offered to SAQ Dépôt customers and claim to have been kept in the dark until the very last minute regarding this decision to reduce the staircase discounts offered to SAQ Dépôt customers.
If the discounts given to SAQ Dépôt customers undergo a slimming treatment, those that the state-owned company requires from suppliers remain the same. On the invoice they send to the Société des alcools du Québec (SAQ), they must offer a minimum discount of 15%. And to stand out, some suppliers will offer a 20%, even 25% discount to the state-owned company. The objective is to ensure a place on the shelves of a brand where consumers generally purchase large quantities.
“The only rate that the SAQ has modified is the one it offers for its part, and not the one it demands from its suppliers,” confides the owner of an agency who wishes to remain anonymous because the SAQ is its main customer.
During an interview given to The Press in September, the president and CEO of the SAQ, Jacques Farcy, defended the reduction in discounts at the SAQ Dépôt. ” 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. » The state-owned company is facing a 1.2% drop in sales, a first in 10 years.
PHOTO MARCO CAMPANOZZI, LA PRESSE ARCHIVES
Jacques Farcy, president and CEO of the SAQ
Mr. Farcy also added that the 15% discount seemed “excessive” to him. “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. »
The 15% discount was implemented in 2000, when the SAQ Dépôt concept was created, which currently has 10 stores.
“If the escalator discount is reduced, the contribution of suppliers should also be reviewed,” maintains Catherine Lessard, general director of A3, an association representing more than 80 wine and spirits agencies.
If the SAQ needs to save, the suppliers for their part continue to pay. We would have found it wise and healthy to be consulted. It costs the suppliers, the SAQ Dépôt, a lot of money.
Catherine Lessard, general director of A3
“To be considered, any offer must guarantee a minimum quantity of one pallet and include a minimum discount of 15% on the purchase price,” we read in a message sent on September 19 by the SAQ to suppliers in order to inform them. invite you to participate in the SAQ Dépôt program. The discount offered on the purchase price will result in participation in the “staircase” discount offered to the consumer, in SAQ Dépôt branches. This discount on the retail price is granted to the consumer, at the cash register, and translates as follows: 5% discount on the purchase of 6 to 11 bottles, 10% discount on the purchase of 12 bottles or more . »
The state corporation sent them this note, that The Press was able to consult, shortly after the announcement of the reduction in the staircase discount offered to consumers.
Following discussions with A3, the SAQ has not closed the door to the idea of reviewing the discounts required from suppliers, according to Mme Lessard. “They told us it would probably be done by the end of the financial year [avril 2024], she maintains, but that it was not a priority at the moment. During this time, the bill is passed on to the suppliers. » The SAQ, however, indicated to The Press that it did not intend to reassess downwards what is asked of suppliers. “The discount offered [aux clients] to the Dépôt banner is financed both by the SAQ and by its suppliers, and despite the reduction in the escalator discount for this banner, the SAQ still contributes significantly,” indicated its spokesperson Geneviève Cormier.
Review the model?
Mme Lessard, as well as other agencies interviewed by The Press, expect there to be a reduction in supply at the SAQ Dépôt. Result: suppliers may have to fight to carve out a place for themselves. “They told us that they would evaluate the relevance of each of their banners. »
“The SAQ Dépôt banner remains relevant in the SAQ ecosystem, and as we do for our entire network, we are in constant reflection and discussion with our partners to ensure we satisfy customers and meet the mission of each of our banners,” said Geneviève Cormier.
Other price increases at the SAQ
For the second time this year, SAQ customers will have to put more of their hands in their pockets. The price of 1877 products will increase by an average of 1.2%. The Crown corporation will make an overall price increase of 0.7% (taking into account increases, decreases and stable prices) starting November 5, just under two months before Christmas. “We are currently seeing a decline in market fluctuations, which is leading to a stabilization in requests for price increases from producers. The SAQ’s negotiating teams were thus able to limit the overall average increase in products in continuous supply below 1%,” we read in the SAQ press release published Monday. The SAQ generally announces its price increases twice a year, in May and November. During the last adjustments, the price of 1862 products had increased by an average of 3.2%. The overall average price increase was 1.1%, driven by price reductions for almost 800 products.