Couponing clipped by Canadian food industry

The food inflation rate in Canada in February was 7.4 per cent, the largest yearly increase since May 2009. Consumers are desperate to find new ways to save at the grocery store.

In the United States and Canada, consumers are increasingly using food rescuing apps, going for the “enjoy tonight” deals, trading down on brands and product quality, and reading weekly flyers. But one advantage American consumers have in their savings toolbox that Canadians lack is an incredibly sophisticated couponing industry.

The inflation rate in

America in February was 8.6 per cent, but the couponing culture in the United States is far more advanced than in Canada.

Most households in the U.S. receive numerous coupons every week. Since the start of the pandemic, promotions in Canada, including coupons, are incredibly hard to find.

In the U.S., for example, coupon stacking (using more than one coupon to purchase the same item) is a common practice allowed in many stores, while few in Canada would do so. In fact, it is not unusual in the U.S. to get a product for free using coupon stacking.

Stores in the United States will also double the value of coupons on certain days. To make things even more interesting, using coupons on already discounted food products is also quite frequent in the United States but not in Canada.

You can also get a credit in some stores if the value of your coupon is worth more than the product; say, if your product is worth one dollar and your coupon is worth two, some retailers will give you a credit, just like cash. It's a different world.

Clipping companies are driving the American couponing industry. These companies clip, collect and sell coupons to the public. People can go online and order as many as desired.

Empowering consumers with ways to save is embedded in the American way of life and allows consumers to save big at the grocery store.

In other words, given the options Americans have for saving, a food inflation rate of 8.6 per cent in the United States is perhaps equivalent to five per cent in Canada. With the lack of tools to save, Canadians are held hostage by food inflation.

While some Canadians claim to save up to $400 a week using coupons, whether digital or paper, doing so requires a great deal of work, almost 30 hours a week, to manage.

The culture is not the same in Canada and we haven’t accepted it as much, but times are changing as food prices are rising at a record pace.

A recent survey from Dalhousie University suggested that using coupons is the most popular cost-saving strategy consumers intend to follow at the grocery store in 2022.

A total of 52.8 per cent of Canadians intend to use coupons more often. People want to use more coupons, but understanding the conditions and compliance rules for using them can be overwhelming.

It’s time for the Canadian food industry to up its couponing game.

Canadians need a break, but most importantly, the industry needs to show it understands consumers are feeling the pain and that it wants to help those on an incredibly tight budget. Since prices are only going to go up, Canadians will certainly appreciate the help.

Volume discounting is also an issue. Asking Canadians to buy at least three or four items at a time to save when they only need one is impractical and problematic.

Not only does it discriminate against single-person or single-parent households, it is also getting people to buy more than they need, potentially generating more food waste. Promotional strategies need to get smarter.

Grocers and food manufacturers have supplied Canadians with decent high-quality products, at affordable prices, for many years.

There are only eight countries in the world where people spend less than 10 per cent of their household income on food, and Canada is one of them.

But rising food costs are getting Canadians to look around for mitigating options, and the industry needs to show it’s willing to help.