Canada’s largest margarine manufacturer, supported by prairie oilseed producers, wants Canada’s highest court to force Quebec to allow yellow margarine onto store shelves.
The province is Canada’s last bastion of white margarine, once a national staple because the dairy industry had convinced provincial governments that vegetable oil-based spread should not be butter coloured. It would confuse consumers and reduce the sale of dairy products.
Since 1995 when Ontario allowed yellow margarine, Quebec has been alone.
Last week, Unilever Canada asked the Supreme Court of Canada to consider whether Quebec’s restrictions violate international trade agreements, interprovincial trade agreements and Canadian Charter of Rights guarantees of trade and commerce protections.
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Two levels of Quebec court have refused to declare the Quebec regulation invalid.
Sean McPhee, a Toronto-based Unilever representative, said in a Dec. 5 interview that a response from the Supreme Court on whether it will consider the case is expected within eight months.
New premiers in Quebec and Ontario have indicated they are interested in reducing such interprovincial trade barriers “but we’re not holding our breath,” said McPhee.
He said it is a $17 million annual loss for the margarine industry.
“This really is a significant economic issue.”
Margarine sales in Quebec are 10 percentage points below market share in other provinces where yellow margarine is allowed, he said.
“That is a loss in sales for Unilever, crushers and oilseed producers,” said McPhee.
Unilever, with its popular Becel brand, holds 60 percent of the margarine market in Canada.
In its appeal, the company said the court should hear the case because issues of the Canadian market and interprovincial rules are at stake.
