As food margins get thinner amid a deepening price war among grocery retailers, Metro Inc. has bolstered its sourcing capabilities to get more local produce from Ontario suppliers, a program similar to one it rolled out in Quebec three years ago.
Canada’s third-largest grocery retailer says its enhanced local purchasing policy will allow much smaller farmers and food producers in the Ontario to supply to the chain, a move that allows the company to carry a higher percentage of local produce in its stores during key growing seasons.
“Buying local is not something new for Metro, but we really needed to be more flexible, from a business perspective, in the way we collaborated with these type of suppliers — small manufacturers, tiny companies,” said the grocery company’s spokeswoman, Marie-Claude Bacon. “These suppliers will be able to offer their products to a few stores; they don’t have to supply the whole chain. In a given area, they can supply four or five stores and that’s fine.”
Grocery retailers across the country have tried to compete with the rising popularity of local seasonal farmers’ markets by sourcing from smaller producers themselves.
Fuente: Financial Post.
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