Ever Heard the Term “Loblaws Tax”?

Canadians have recently adopted a new phrase that isn’t exactly flattering for the country’s largest grocer: the “Loblaws tax.” This term has become shorthand for the frustration that millions of shoppers’ experience at the checkout counter each week.

According to Canada’s Food Price Report 2026, food prices are expected to rise by 4 to 6% this year. The average family of four is projected to spend $17,571.79 on food, which is an increase of nearly $995 from the previous year. Loblaw has faced significant public backlash, parliamentary scrutiny, and even a national boycott for being one of the top contributors to food unaffordability.

One key issue highlighted across grocery stores—not just at Loblaws—is the newly coined term “shrinkflation.” This phenomenon refers to packaging that appears normal but contains less product inside. Most consumers tend to focus on the package rather than the fine print on the label, often overlooking the actual quantity of the contents. This is where the deception occurs, legally (checking the contents of the label is the buyer’s responsibility) and in full public view.

However, shrinkflation isn’t the reason the term “Loblaws Tax” was created. Instead, it’s the price premium shoppers incur at checkout when they choose to shop at Loblaws over more budget-friendly options. Here are the 8 (eight) most overpriced items at Loblaws:

1. Box of Salad: At Loblaws, a single 150g to 200g bagged salad kit typically costs between $5 and $6 at regular price. This per-kilogram rate is often comparable to, if not higher than, what restaurants charge for the same amount served on a plate. This disparity becomes evident when you see the same salad sold at independent or ethnic stores for much less.

2. Shredded Cheese: A 320g bag of Black Diamond shredded cheddar or mozzarella has a regular shelf price of $6.50 at Loblaw, while the same product at Walmart costs $5.90 (based on today’s online prices). Though Loblaw occasionally lowers prices to compete with others, these reductions are often temporary, returning to their higher levels within a few weeks. Additionally, Statistics Canada has shown that mozzarella and cheddar are among the food products most affected by shrinkflation.

3. Bottled Juice: Statistics Canada reports that the average retail price of a two-liter carton of orange juice increased from $5.62 in January 2025 to $5.95 by June, representing a 54 percent rise compared to June 2020. During promotional periods, Loblaws offers Tropicana juice in a 1.36L format for $5, but the regular price for larger formats is significantly higher.

4. Baby Formula: The average price for a 900g package of infant formula is $49.72, making it one of the most inflation-affected staple items currently tracked. At Loblaws, 550g to 663g sizes of Enfamil or Similac powder are on sale for $31.99. This means that a full 900g equivalent routinely exceeds $50 at Loblaws.

5. Cooking Oil: A three-liter jug of canola oil that previously cost around $6 to $7 before the pandemic has roughly doubled in price by 2023 and has remained elevated, despite Canada being one of the world’s leading canola producers. At Loblaws, Crisco vegetable oil in a 1.42L format is priced at $4.99 during sales, while larger canola formats typically cost between $13 and $15.

6. Organic Produce: Data indicates that fresh tomatoes averaged $6.18 per kilogram nationally, with Dalhousie University’s Agri-Food Analytics Lab reporting an even higher price of $6.61 per kilogram by late June. Organic varieties at Loblaws often exceed these benchmarks significantly, making them some of the most expensive options available in mainstream Canadian grocery chains. Loblaws claims that this pricing is a result of the American war on Iran, but this justification fails to clarify how specialty retailers and farmers’ markets consistently offer lower prices for organic products by margins that surpass what supply costs alone would account for.

7. Single-Serve Yogurt Cups: At Loblaws, a 100g Oikos or Activia single-serve yogurt cup sells for $1.49 to $1.99 at regular price. While this may not seem excessive, the per-kilogram cost amounts to $19.90. In comparison, Danone Oikos tubs, which weigh between 650g and 750g, are priced at $6.50 during promotions, offering savings of up to 49% off the regular price. Even without promotional pricing, the regular price for a Danone tub would be approximately $12.50 to $13. Buying a tub instead of ten individual cups still yields significant savings per gram; however, the markup on single-serve options persists.

8. Cereal (Name Brand): Interestingly, a sociology professor at the University of Regina has noted that cereal manufacturers are currently paying 16.2% less for raw wheat, yet the cost of finished cereal products continues to rise and exceeds 2022 levels. For example, at Loblaws, General Mills Family Size Cereal in the 525-725g format is priced at $7.99 ($5.50 for PC Optimum members), while the same product is available for $6.97 at Walmart and is generally 10-15% cheaper at various independent stores in the Greater Toronto Area (GTA).

 It’s worth noting that Statistics Canada has formally recognized breakfast cereal as one of the food categories most affected by shrinkflation, alongside pasta mixes, cookies, and crackers. With food prices now 27% higher than they were five years ago and one-quarter of Canadian households experiencing food insecurity, these ongoing price markups at Loblaws, Canada’s largest grocery chain, are straining the budgets of millions of families.