N.S. chose a national grocery giant for its $6M buy local program. Reaction has been mixed

A provincial rewards program designed to encourage consumers to buy local is getting mixed reviews from Nova Scotia producers and retailers, primarily for its selection of Sobeys Inc. grocery stores to hold a key role. 

In July, the Tim Houston government announced details of a $950,000 contract with Sobeys for its long-promised Nova Scotia Loyal program.

Through the program, shoppers can get bonus Scene+ points at Sobeys stores one week a month, and bonus Air Miles at the Nova Scotia Liquor Corporation, when they buy local goods.

With both Scene+ and Air Miles, people can accumulate points that they can redeem for discounts on purchases.

“Politely, it was ‘Oh my God.’ It’s infuriating,” said Shelley McDemott, owner of TwinAitch Food for Thought in Aldersville, N.S.

As a meat producer and regular vendor at the Lunenburg Farmers’ Market, McDermott said she can’t understand why the Nova Scotia Loyal program chose one of the biggest grocery chains in Canada over local farmers such as herself.

“I just really felt that local should be local,” she said.

The rewards program totalling $6 million was a campaign promise by Houston’s Progressive Conservatives in 2021. At the time, he proposed a loyalty card that could be redeemed for local food and non-food items in an effort to boost demand for Nova Scotia products by 10 per cent. 

The following year, in June 2022, Houston announced he was launching a survey into consumer behaviour at an event held at Masstown Market.

“Because of the uniqueness of it, we want to make sure we get it right,” Houston said at the time.

But the man standing beside him in that photo-op, Laurie Jennings, told CBC this month he always thought it was an “impossible task.”

“To have a program that identifies all of the Nova Scotia products — and to be able to track those purchases and reward customers at all of the different places they can buy them in the province — I’m sorry, that’s a really, really hard thing to do,” said Jennings, owner of Masstown Market.

He said his independent store isn’t reaping any benefits from the chosen path for the Nova Scotia Loyal program, but he insists it doesn’t bother him. 

“Good job for them doing what they have done. It’s a little bit of a positive thing. I mean telling customers about why it’s important to buy local Nova Scotia products is really, really important,” said Jennings.

Feedback from public

Documents obtained by CBC News through a freedom-of-information request show some members of the public complained to the Premier’s Office about the agreement with Sobeys.

“This deal with Sobeys is wrong and not the way to support local business and not the best use of our tax revenue. I have supported most of your actions to date, but not this,” said one email from a recipient whose name is redacted.

“Sobeys and NSLC are not small businesses. I shop locally and will not get anything from this. In fact it directly benefits Sobeys,” said another email. 

Briefing notes prepared for the Premier reveal the government was prepared to field questions about his relationship with Sobeys. Houston owns land in the small Pictou County community of Sinclairs Island, where many members of the Sobeys family also own property. 

The document includes the anticipated question from media: “is that why they were awarded this contract over Superstore?”

The prepared response firmly said no.

“We reached out to both Sobeys and Loblaws. Sobeys came to the table quickly and were keen to participate. We continue to work toward reaching a partnership with Loblaws,” the briefing note stated.

Loblaw confirmed to CBC it has been in discussions with the province about Nova Scotia Loyal and “those discussions are ongoing.”

Sobeys declined an interview. In an email statement, a spokesperson said there are more than 2,000 qualifying local Nova Scotia products in Sobeys, Foodland and participating Co-op stores.

“The benefit of this partnership is that producers and suppliers can get their products in front of Nova Scotians who are eager to try local flavours and products, and to support their neighbours and community,” said Manasvi Thakur, adviser of external communications for Sobeys.

Bedford-based Connected Craft Beverages recently introduced its products at Sobeys stores across the province. While the small business said it couldn’t have done it without connections made at local farmers’ markets, this level of exposure is a major boost.

“It helps us with listing fees and stuff as a small business and allows us to get in with bigger players to grow the business,” said Dan Schrader, the company’s co-founder.

He said getting into the chain grocery store wasn’t an overnight process. It took about six months of meetings and inspections before products hit the shelves.

“You have to get your certification in order, so you have to be a CFIA [Canadian Food Inspection Agency]-registered business and have audits done at your facility, which we have experience with so we were pretty lucky in that sense,” said Schrader.

He said Sobeys does take up to a 30 per cent cut, but he’s heard of other retailers that shave off even more. 

Chose existing program

Government officials including Houston and Economic Development Minister Susan Corkum-Greek have repeatedly said they chose an existing rewards program over creating one for independent stores and farmers’ markets because it’s easiest for consumers.

Briefing notes summarize that point, stating “the level of complexity on the various point-of-sale terminals retailers work with made it difficult to put a new, Nova Scotian consumer loyalty program into place.”

As part of the Nova Scotia Loyal program, the provincial government also handed out over 135,000 $10 vouchers to school-aged children in June to redeem at farmers’ markets.

McDemott said despite her criticisms of the rewards program, watching excited kids come into the market has been positive.

“They’re getting some treats, seeing the vibes of the market, seeing how food can be purchased differently and maybe chat with the farmers and artisans a little bit more,” she said.

On Wednesday, the province announced a pilot that builds on the voucher program by giving $10 to students, faculty and staff at Acadia University and Nova Scotia Community College’s Kingstec campus to redeem at the Wolfville and Kentville farmers’ markets.

Meanwhile, Masstown Market has received Nova Scotia Loyal signage, but Jennings said it’s more of a nuisance because the bulk of his products are local.

“Keeping all of the extra signs up just for the sake of flying the flag doesn’t really do too much for me, and it’s an additional job for employees, myself included, when efforts are better spent elsewhere,” he said.