Food, drink sales continue to grow

An economy flirting with recession isn’t slowing sales in Alberta’s food and beverage industry.

Statistics Canada said Friday that industry sales grew for the second consecutive month to $738.2 million in May, up 0.3 per cent from April Year-over-year, sales in Alberta are up 2.3 per cent.

“Perhaps it’s the selection of great new restaurants or maybe simply a lifestyle choice. Whatever the reason, the slower economy in 2015 hasn’t deterred Albertans from spending at restaurants and bars,” said ATB Financial chief economist Todd Hirsch, adding that higher food costs are also behind the increase.

“Prices for beef, fresh fruits and fresh vegetables have been rising at a pace much greater than overall consumer price inflation. This has likely pushed up prices on menus, meaning consumers are paying more for the same amount of food.”

Hirsch said Stats Can figures put per capita spending in Alberta at about $177 a month. “That’s by far the highest among the provinces — and 26 per cent above the national average of $140,” he said.

Across Canada, Statistics Canada said sales at food services and drinking places rose 1.2 per cent from April to $5 billion in May. Prices for food purchased from restaurants were 2.9 per cent higher year-over-year, following a 2.7 per cent increase in April. On an annual basis, sales were 4.2 per cent higher across the country.