QUEBEC SMALL SHOPS TRADE WAR PRICE CUTTING – CANADA
May 1st, 2006
BY MONICA DOBIE
QUEBEC'S corner shops are struggling to survive because of a beer price war. The cost of mainstream beer brands for small retailers will be CDN$27.89 from June 5, but the official government minimum price for sales to drinkers is CDN$21.90. Supermarkets are exploiting this to sell beer as a loss leader, but small shops rely on beer. "Between 25-35 per cent of business for small shops comprises of beer sales, so it's a serious problem," said Yves Servais of l'Association des Marchands, Depanneurs et Épiceries du Québec.
ENDS
QUEBEC'S corner shops are struggling to survive because of a beer price war. The cost of mainstream beer brands for small retailers will be CDN$27.89 from June 5, but the official government minimum price for sales to drinkers is CDN$21.90. Supermarkets are exploiting this to sell beer as a loss leader, but small shops rely on beer. "Between 25-35 per cent of business for small shops comprises of beer sales, so it's a serious problem," said Yves Servais of l'Association des Marchands, Depanneurs et Épiceries du Québec.
ENDS
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