Videos: Forum On Bermuda’s Food Prices
[Updated] The subject of Bermuda’s food prices was discussed last night [Mar.20], as the Price Control Commission hosted a public meeting discussing the theme “Bermuda has high food prices – Fact Or Fiction.”
Panellists included Lindo’s owner Giorgio Zanol, Ed Sousa from Butterfield and Vallis, Claudette Fleming from Age Concern, statistician Cordell Riley and PCC Chair Lucia Peniston. The meeting was held at St. Paul’s AME Church Hall, and moderated by Anthony Richardson.
The Price Control Commission was appointed by Premier Paula Cox under the authority of the Price Commission Act 1974 in response to global price increases of food staples.
The presentations by each speaker:
Lindo’s Giorgio Zanol noted he has been in the retail business 43 years, and said they have tried some “no name brands” but found that Bermudians like buying name brand. He also noted Lindo’s has over 500 specials a week, and recomended consumers check the specials and shop on Wednesdays to save 5%.
Ed Sousa from Butterfield and Vallis said their company is “committed to Bermudianisation,” and out of their 200 employees they have one work permit holder.
Video #1 of Q&A session:
Mr Sousa also said the Company has over 900 customers, and they import from over 300 suppliers around the world. Butterfield and Vallis carries about $10 million worth of inventory, which Mr Sousa said becomes important if a hurricane hits Bermuda they have a “1 to 2 month buffer” in case the ties to the USA are cut off. He also spoke about the cost of getting goods to Bermuda, and provided examples in the slideshow below.
Butterfield & Vallis slideshow, click full screen for clarity:
Answering a question from the audience Mr Sousa said, “Bermudians have always been very brand conscious, and in times of a recession we do see a bit of a shift where Bermudians become more value conscious. I would encourage every consumer to take stock of their selections, where they shop, and purchases they make.”
“One thing I want everyone to take home with them is choices and selection. We have about ten club stores in Bermuda, 20 odd supermarkets, and they are all competing for dollars from a shrinking market.”
“The market is a lot smaller today, we have all read about the exodus of expats, so that means less mouths to feed. So that means people like Mr Zanol — and I see the Marketplace here — need to chase fewer consumers for those dollars,” said Mr Sousa.
Video #2 of Q&A session:
An audience member said that Hellmann’s mayonnaise is expensive in Bermuda, and noted that Bermudians love mayonnaise and suggested the retailers are raising prices on products they know “Bermudians are going to buy no matter what.”
She said she does not want to buy any other mayonnaise, she likes Hellmann’s, and asked how prices are determined. Replying to her comment, Mr Zanol said the mark-up has not changed in over 30 years, and said that a single American supermarket will often buy more than all of Bermuda does.
He said this means the US supermarket has increased purchasing power, and they are paying far less for the product, possibly 50% of what Bermuda must pay. Mr Zanol went on to say that Kraft is a very popular brand in Bermuda, and said Bermuda was the smallest account that Kraft had, which did not assist their bargaining power.
“We are not gouging the people,” said Mr Zanol. “We would not be where we are if we did.”
No matter what this panel says the supermarkets are protecting their profit margins at the expense of the people. Either pay the price or go somewhere else.
If consumers are serious about getting lower prices at the grocery store, radical changes are needed. These changes would inevitably lead to some job losses but Bermuda would definitely pay less when buying groceries.
Generally speaking, the grocery stores in Bermuda are inefficient relative to their international peers. If Government paved the way for a Walmart, Tesco, etc to come to the island our community would save a great deal with visitng the grocery store.
Have you EVER driven through a small town where WalMart has moved in on the outskirts? I have. Many many of them. The story is the same in each one. The town center dies. People love to hate to shop at WalMart. WalMart kills local retail. Put a WalMart & a Lowes side by side & there is no need to go anywhere else.
Can you imagine Bermudians working for WalMart wages & productivity? Never happen.
Yes, markets here can do better. You can’t go to a Bermuda market without constantly tripping over people stocking shelves. Why do the floors of Bermuda markets always look so dirty?
Bermuda is not big enough to sustain a Walmart.
Apparently Bermudians are very happy with food prices. Only 30 people bothered to show for the forum.
Bermudians have other obligations so to only have one meeting is inconvenient. I would have been there but have work to do so I can feed my family since food is NOT CHEAP HERE.
We were either working so we could afford food or else sitting down eating after a long day at work. Plus we long ago realized such meetings are all about talk (hot air) and will amount to nothing short of a complete and utter waste of time. Other than that, we are sure the meetings would be useful.
I think the BIU should run a grocery store. They have a whole team of top notch accountants to keep a close eye on costs. They’re experts at everything and have no problem telling everybody else how to run their businesses.
Umm, they used to have their own grocery store, The Coop. It went bust.
Noooo say it isn’t so. The BIU know, like, everything, about running a business.
And since all the food stores are ripping us off and making obscene amounts of money how could they possibly go bust.
Perhaps the margins aren’t as big as some people think they are and perhaps the BIU lacked internal controls to protect their assets? Nahh couldn’t be.
Actually the executives were seen shopping at other grocery stores before it went bust….
Yes I do reference Canada a lot & will again since its the one country who had the recession figured out plus other issues from the start. Canada taxes every non necessity very high but when it comes to food it is not taxed at all. This is because they know society runs better on full bellies. We don’t have added government taxes on purchases like Canada but every importer has to pay duty which is essentially the same as being taxed. This makes the high food price solution simple for government take all food duties out & offset it on to liquor, cigarettes, automobiles, parking, junk food (no nutritional value so not needed) & other non necessities like Canada does with their taxes. Why reinvent the wheel when it can be adjusted to a different axle.
Having lived in Canada for years, and hearing from wonderful Canadians crying foul on their taxes, prices, government, crime and cost of living, many of us who have been there-done that, know what it’s really like behind the great red & white curtain – as Canadians have told us, picture perfect from the outside, but like double hockey sticks once you get inside!
Canada is a great place, but like many countries, their people are also dissatisfied – and don’t tell me every Canadian living/working in Bermuda thinks otherwise, cause it’s no way Bermuda has handpicked all the happy Canadians to be here! As they say, no one leaves their country to go to another to make less money, unless you are on a mission trip working for free!
That’s why people from places like Barry and others would tell us they find it a gold mind to fly all the way to Bermuda just to work in our grocery stores, eventhough there are many Fortinos, Dominions, Loblaws, No Frills, Zellers, Bay, and even Tim Horton’s (miss you Tim’s and saying “with a double double, please!”) and LCBO’s (Canadian Ontario government liquor stores!) existing from their districts past the Canadian border (ie. Tim’s – go Tim’s!).
Many Canadians say they are not happy, and cannot afford to travel beyond their surrounding districts, (pay after taxes, PST/GST every other T), which is why they are called T.A.C’s, and drive up to their cottage by the lake for their short stay-cations and many drive cars with rust, dents, and ripples – its just too expensive there – they say many of them can’t afford a real vacation, and can’t take time off from their 40-60 hour work week jobs or risk losing their jobs if they just ask for time off.
Ask someone in Toronto (or visa versa) have they been to oakville, North York, Markham, Ajax, Barry, or know where King or Peterborough etc is, and have they, or when they last travelled these places regularly, they tell you they don’t and can’t because all their hours are tied up in work and commute.
So in reference to the statement about Bermuda’s recession, Canada may seem to be “the one country who had the recession figured out…”, but at what cost to the people of that country! Honest Canadians will tell you. There are pros/cons to every country, one is not necessarily better than the other – Bermuda has murders, but while in Canada we lived in an affluent area and murders still took place there, – whether you drove a BMW, Mercedes or Lexus, or a Kia, Mazda or Hyundai, but the people kept going about their daily lives – they didn’t blame the government for their murders, it was their own people committing them due to many factors like domestic, drugs, crime, cultural allegiances, and rights, isn’t that so Canadians!
So Bermuda is no different…it’s in every sector of communities rich or poor – we say food and cost of living is high here and when we go to overseas jurisdictions they say the same thing about out there – only that we Bermudians see overseas prices as bargains – that’s why people come here to grab the same effect we have (which every person has the right as long as its afforded to them anywhere) when they return to their country after making money here.
Peace and love to your country, but don’t try and convince us that Canada is ” the one country that has it figured out from the start…” because there are some other countries worldwide that have been successful throughout this so called global economic recession as well, and are continuing in their economic stability.
Now I really need a Tim Hortons…soup in a bread bowl anyone, we can’t afford Swiss Chalet right now…eh?!.
I also lived for years in Canada & I’m not sure if you’ve realized what you’ve typed. It took me a few reads to get my head around some of your points & I’m still not sure if you have proved or disproved my points.
Lets get something geographically straight first you’ve typed, “Ask someone in Toronto (or visa versa) have they been to oakville, North York, Markham, Ajax, Barry, or know where King or Peterborough etc” To ask a someone in Toronto if they’ve traveled to anywhere on your list but Barrie, King or Peterborough would make a Bermudian seem silly since the others on your list are towns in Toronto. This would be like me asking someone in the city of Hamilton if they’ve traveled to Pembroke. I will give you the benefit of the doubt on this one & assume you meant ask someone in the GTA if they’ve traveled to these other areas. Most would not have because they feel no need to since all is in the downtown not because they are to busy. As for visa versa many commute from these areas daily to the GTA because its where most of the industry is.
Now for your reference to crime in Toronto there are millions of people compared to the thousands here. I’ve walk inebriated through the oldest projects in the Northern Hemisphere Region Park Toronto many times from my friends apartment building with the only thing happening to me was being grouped by a lady of the night who let me go after I said no thanks. I’ve never worried about anyone ever robbing or assaulting me. I did however think I was going to be robbed once in the Don Mills & Eglinton area when a group of thugish looking guys asked to see my gold watch (very dumb of me to wear in a big city) but they took a look at it & complimented me on it & then guided me to the science centre. At this time at night I would feel safer anywhere in Toronto then here. You cannot compare a city like this with still such a low crime rate to a country thats only so big where weekly someone is being robbed.
You mention rust bucket cars but most of the cars in Bermuda are on a bank loan because once a bit of rust gets on our cars TCD won’t pass them so out with the old in with new that is not really theirs till the bank is fully paid. At least the majority of people can travel anywhere at anytime in the subways, streetcars & busses in Toronto. Try heading east on a Bus in Bermuda at 7pm there’s only one that travels along north shore so if you want to get to south shore get out & walk & hope the men in black don’t ride past.
You mention staycations at a cottage by the lake but this is another language to Bermudians so let me clarify. Cottage by the lake http://www.rentcottagesimcoe.com
The price of food will continue to go up as along with the price of oil based fuel. The process of getting food to the Island is a logistically costly one. As long as we as an Island use oil based fuel to produce our electricity, the cost of living will also continue to rise. Not enough is being done to really deal with this issue because the solution is 10 + years away even if we start acting now. It is of great concern but the reality is that we need to be more self sustainable as a nation.
I often wondered what he government does with the Islands it owns? Should we not consider converting some of these to farm land to help subsidize fresh produce? At the end of the day these Islands have space that should be utilized. Just a thought but we need to start being inventive about growing our own food sources even if it involves hydroponics .
Hydroponics- great idea. Once the PLP scares off what’s left of international business, we will have a sufficient amount of office space that can be converted to greenhouses. Oh, wait… We can start now, at the Grand Atlantic development!
We already have sufficient amount of office space just ask Sir John. This has nothing to do with plp just has to do with landlords who have not come down from the clouds yet. Maybe that’s because they have more money then brains as I can’t see why anyone will keep developing in a recession. Then again its a good way to keep the construction firms money rolling in so scratch the second sentence. This has something to do with plp just not all plp just certain ministers who’s greed has effected their mental HEALTH. (pun intended)
As long as the powers that be have shares in BELCO & the Front Street docks they will not feel the consumers pains over their profits. For many on the high end of Bermuda economy this island is only one of their homes so it doesn’t fully affect them if it goes to ruins. I agree with you as I know our island has many unused golf courses that could be used for farming or wind turbines but I fear all the bickering about new hotels dumbs down these ideas. It’s sad but like Mr. Marley song it takes a revolution to make a solution. Until the majorities tummies hurt more than rubber bullets we will still bow our heads & take the consumerist oppression. Trust me when I type rubber bullets hurt a lot & anyone who’s been in the regiment knows this so we have a long hard road ahead of us. I hope when it comes down to it its in non-violent protest because the opposite will ruin Bermuda & Bermudians beyond repair.
You too can buy shares in Belco and Stevedoring Services Ltd and share in all their profits. They’re traded on the Bda Stock Exchange. With all the money you’ll make you’ll be able to buy two of the Grand Atlantic condo’s and rent them out. You’ll be rich in no time.
Inna!!!
@ Family Man & Triangle Drifter it would take a considerable amount of shares in Belco and Stevedoring Services to become rich assuming I have enough funds to buy that many shares. I won’t lie as I could afford to buy shares in these businesses but would that be fair to those who live hand to mouth in Bermuda since I’d be additional shareholder demanding we need more! more! more! at the whims that all can pay more. We’ve seen what greed has done to the world & to justify it with the I can so I will attitude is not justifiable. If I had these shares how could I preach to my children that the world must reduce greenhouse gasses for their sake? Belco mentioned renewable energy resources years ago but just as we seen in government promises & more promises but zero actions except for the setup of BESCO to spread out their shares for those who can AFFORD their own personal turbine. So I get these shares & make a mint & tell my children don’t worry because when the ozone is depleted you’ll be able to afford space suites to go outside & watch the solar flares enter the atmosphere. Maybe this may seem ridiculous to some to think about right now because how could a few smoke stacks on a small island make a difference oh but it does though we may not see the smoke particles come down in the the Atlantic physics say it must & what doesn’t come down well we know where this goes. Like Al Gore said in the Inconvenient Truth most humans a like frogs in a slowly boiling pot of water that will sit there till they’re cooked. It’s funny that President Bush last declaration on the war on drugs was that it funds terrorism when anyone in the know knows that a quart of crude oil funds terrorism more than any poppy field in Afghanistan. I realize there is no way to live without electricity or imported goods but at least I can still tell my children, “conserve electricity because I don’t have shares in BELCO” & “I won’t be paying for that psp because I don’t have shares in Stevedoring Services. I do have shares in other companies but they are echo friendly & sad to say most shares in echo friendly companies will only make you rich in the heart & mind not the pocket.
The truth is Belco was made to pump out power not bring it back so the ideas like solar panels and the buy back unused power flops until millions of dollars of work is done to make it so power can be fed back to belco. I do not think the board members whom Tommy talks about want to shell out for that cost. As some of these are people we elected that should tell you all we need to know about our politicians….
LOL
Personally, politicians should have to declare everything they are into. I remeber some on here saying they are suposed to but no one enforces it. If thats true then do I start a pertician for it???????
That’s “petition”
The focus has been on food – but in fact the drug and personal items category – ie BGA – is where there have been dramatic price increases.
Please tell us why the Market Place is not on this. I have bought products at their Church Street branch, and have noted that the prices for the same items are HIGHER at the Shopping Center branch.
Question ???? what was the real purpose of this forum we all know that the prices are high in the supermarts, one would only need to take a trip down the aisles of the supermarts, my belief is that us as bermudians only talk about it in the the bars and barber shops and do nothing about it with our buying power thats why the bannanas are spotted and the avocadoes are rotten and the cod fish is well over priced because the store onwners know come sunday morn we just gotta have our cod fish breakfast, if we refuse to pay for certain items the prices will drop..I also agree with the comments that we dont need a walmart it will kill an already struggling retail market.
I’m sorry, but I too don’t buy what the local distributors said as their excuse to prices in Bermuda. After years of being loyal and “shopping Bermuda” which led to being ripped off locally continuously, our family decided to shop overseas to fit an entire unit (to compare what it cost us of another). Well, let’s just say we purchased everything from toothpaste and toiletries to the bathroom sink and tub, living/dining and bedroom room furniture to kitchen cabinets and everything in-between [including shoes, clothes etc] – from tile for the floor to lighting and ceiling fans and our outside doors etc! – and we calculated our shipping, duty, trucking and expenses, and we were still about 300% -500% below what those items priced in Bermuda.
We did our research, locally and overseas, and somehow, it just doesn’t add up for prices in Bermuda – so don’t tell us about the corn, oil, or any other factor, and we don’t appreciate being told to just choose other items or do without because the cheaper brands are still expensive.
Eggs, milk, bread, cereal, flour, sugar, butter, cheese, rice, fruits & vegetables, toilet paper, napkins, paper towels, toothpaste, soap, deoderant, detergent are basic items for the average family that are priced too high, and seem to increase weekly. You get my point – I haven’t said pet food, chicken, steak, fish, shrimp, lobster, sushi, wines & spirits, beer, cigarettes.
Tell families with seniors and special diet needs requirements to try alternatives that are required for their diet (after you have successfully completed many field study researches yourself) and see how justified your statement sounds, because to those of us living it, these panelists statements sound like a bunch of c$&#!
So please do not attempt to insult our intelligence in Bermuda – the bottom line is greed, not just business factors.
PS: toy sellers, a $12 toy overseas should not be sold locally for $60! Remember, there was an invention called the Internet, and many people travel and have family/friends overseas. Even shopping in the Caribbean is cheaper and they ship as well.
Get your price acts together. Last we checked, books were 0% duty, but look at the local prices of books and magazines! Was it not also previously stated via the Government persons that cereal is 0%?! Explain that!
just one more Question??? why is it that shellybay market place sell’s days old bread and they have a bakery in there basement,,,,sorry i answered that in my last comment
I get why food prices are higher in Bermuda, but what I don’t get is why there is such a drastic difference in price from one store to the next?
Example 1 – About a year ago I went to grocery store A and saw raspberries for $8.00 per package. I went to grocery store B and saw the exact same raspberries for $4.00! It was the same size package, same brand name.
Example 2 – Same time frame as above, I went to grocery store A again and picked up some yogurt that had fresh fruit that you stir in for something like $1.69. I went back to grocery store B again and they had the exact same yogurt for around $2.50. A couple other grocery stores sold it for the lower price. 1 year later and everywhere I’ve been now sells it for $2.50 – $3! It’s really yummy but there is no way I’ll pay that price.
And COKE SODA!!! What the heck is with the price of soda on this island? Have you seen the 6 pack of old fashioned glass bottle soda priced at nearly $10!!!??? Just a regular 6 pack of tins is pushing close to $7. I may be wrong but is this not manufactured IN BERMUDA? I don’t drink a lot of the stuff but I do like to indulge in a black n’ coke once in a while.
It would be nice if these grocery stores could advertise their prices and weekly specials on their website. On big grocery store does (just their specials) and I really appreciate it.
BOYCOTT mayo and coffee then see what the price is in a couple of weeks. These are NOT staples.
Why are they lying? They DEFINITELY increase the prices on food items that are popular and here I thought it was just me who noticed this. Marketplace is especially guilty of this. Also when they are selling OLD A$$ ROTTEN fruit they need to lower the price! Why is marketplace still trying to sell strawberries that have mold all over them for $9.99? Crazy.
Why is it that local bread, eggs, and milk are basically the same price?
Local made bead $4.75
Local free-range eggs $4.50-jumbo
Local half gallon milk whole-$5.50
Local milk should be the same price no matter WHAT store you go to and it isn’t.
I don’t quite understand. I think the government has the right to regulate staple foods and I am all for a junk food tax increase. Judging by the size of many on this island, I don’t feel sorry if you can’t afford your junk food.
As a matter of fact junk food is MORE expensive than fruits/veggies. A bag of small organic apples which contain at least 12-14 small apples cost $10. One bag of chips can cost over $5. So two bags of nutrition-less chips OR a bag of 12 small organic apples? Think like this when you shop and you will be surprised that you can afford to eat more healthy then junky. A box of brown rice and a bag of dried beans is about $7 in total and will make at least six full healthy meals. Think when you shop.
I wonder how many of the complainers have ever worked in any of the links that are the food supply chain? You know, the people who think food comes from the supermarket. It is that simple to them.
For real! Grow your own and stop whining. Then and only then will you appreciate what you are getting. Entitlement mentality is trashing this country…
“We are not gouging the people,” said Mr Zanol. “We would not be where we are if we did.”
Now try this one Mr Zanol and all the other importers AND service providers …
”The public has no choice (when it comes to groceries) and can’t go anywhere else , so yes , you can gouge us to death and remain in business ”
You (and others with too much to say) have little, if any, evidence of how much money companies in Bermuda’s food industry make (or lose). All you know is how much the products sell for. Think of all of the costs involved, such as rent, electricity, wages for lazy Bermudians, etc. If you could see more than one piece of the puzzle you might actually stand a chance at seeing the complete picture.
That said, if you really are annoyed at Bermuda’s food industry “gouging” you, then simply stop buying food. Do this for a few weeks and Bermuda might just become a better place!
@Burnt too many times:
You are correct. The public does not have a choice whether or not to buy food.
While some people argue that if the price is too expensive go somewhere else but that doesn’t work if everywhere is expensive. So each item should be priced at more than it costs to obtain that is straight-forward. You use the extra to pay employees, electricity, rent, renovations, etc.
But lets look at an example regarding the profit margin:
Store A: sells a product with 90% markup
Store B same product 40% markup
Cheaper at store B: Store B is still making a profit but less per item: However, after a short period (assuming “rational consumers”) people will buy from store B instead for that item. meaning that they eventually will be selling the volume of A + B and maybe more because people can afford extra or more people can afford it period. So you are selling more and while profit/item is less overall profit is up.
Additionally, a lot of people are saying retail sales are down etc. These same people need to realize that although sales are down most of these stores are still making a profit just less of a profit.
But a profit is a profit.
Food is Waaayyyyyy too expensive in Bermuda!! Plain and simple!!! end of story there are no if, ands, or buts!!! My question is this, “If said items come from one distributor, for the hell of it, let’s say BGA, why is the mark-up for the same product different at each store? There needs to be a “cap”/price control on groceries (those who disagree, please leave your email address so that I can send you this weeks grocery list)!
I am so stressed by the time I finish grocery shopping that I hate having to go! When I pick up an item and it’s price seems ‘out there’ I holler for the Manager!!! surely someone has made a mistake!!!
Even cereal!! I am a huge fan of “Special K” ! even the small box is expensive that it now has become a treat for me! Whenever someone asks what I want for my birthday or Christmas I say a box of Special K!!!!!
I drive across four supermarkets on my way home from work each day and the parking lots are NEVER empty!!!! These shops are making money, people HAVE to eat!! We don’t necessarily have to buy clothes but we HAVE to eat!!!! Please tell me WHY things have to be so expensive?
If nothing is said or done the price of food will continue to go up and store owners will continue to do as they like because we continue to buy!!
I just wish that for ONE DAY no one should shop in any of the grocery stores in protest of high prices…just so that they can see how fed up and serious we as a community are..but I know that is just wishful thinking..we will continue to complain, continue to accept and continue to shop when in essence WE have the upper hand..if it was no us..there would be no them…..
@ triangle drifter..”Apparently Bermudians are very happy with food prices. Only 30 people bothered to show for the forum” …not so I like “Tommy Chong” had to work last night so that I can afford to shop this weekend. Hopefully, I can make the next one!!!!!!
If you think the markups are so huge in Bermuda that its a license to steal, your are free to go into business yourself. Start your own grocery store, retailer whatever. There’s lots of empty buildings, plenty of space on the cargo ships, truck drivers eager for business, lots of people looking for work as cashiers, shelf stockers … whatever.
Why leave all those profits out there for Lindo’s, BGA, MarketPlace. Open your own business. Charge lower prices and people will flock to your store.
Stop whining and DO IT.
Let me know how it goes.
Dumb as hell. Bermuda is too small, once stores are established it’s hard to open new stores and compete. Let me guess you are one of the greedy owners sitting on millions and overcharging customers.
Just returned from Boston and shopped in Whole foods which is considered expensive by Americans.
Raspberries $3.99
Blackberries $2.99
Large punnet of Driscoll strawberries $3.99
Large juicy pineapple $3.99
Large punnet of blueberries $3.99
Then I return to Bermuda where the above fruits are 2 or 3 times those prices
This week Market Place have strawberries for $3.99. If they can sell them for that price this week why not every week? Next week they will be $7.99
I refuse to buy fruit in Lindos as they are far more expensive than anywhere else.
I just do not know how the average working class Bermudian can afford to feed his family, with bread and cereal at over $6 and the price of eggs up every week.The price of milk goes up every week too. As for local bananas they are way overpriced.Local farmers would rather their fruit and vegetables rot before selling them cheaply
I would not attend the meetings being held as I do not believe a word they say. I do not know any poor supermarket owners on this island . They are all just greedy. The specials Mr Zanol talks about are still way overpriced. I check out all the prices in all the supermarkets except Miles and there are just no bargains in any of them.
What really upsets me about Market Place is the new price put over the old and it is often $1 mark-up.