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Yellow margarine finally on sale in Quebec

22.08.2008 19:01 Shopping - Source: cbc.ca

Yellow margarine has begun to hit store shelves in Quebec for the first time in 21 years after the province repealed a regulation last month that prevented its sale.

Margarine manufacturers say the move means production will be simpler.

Sean McPhee, spokesman for Unilever Canada in Toronto, told CBC News Online the change in legislation means reduced costs for the food manufacturer.

"We're delighted," he said. "It certainly establishes a level playing field."

Unilever Canada introduced on Wednesday what could be called a distinct brand name for Quebec. Its margarine is being sold as Becel Gold. In English Canada, the same product is known as Becel Buttery Taste.

Under the Quebec Dairy Product Act, the company cannot use the word "butter" in its brand names.

McPhee said the company had pursued for years the removal of the regulation that prevented the sale of yellow margarine in Quebec. "It was a barrier in trade that Quebec had an obligation to repeal," he said.

While it took Quebec three years to implement the 2005 interprovincial trade ruling that led to the change, he said, "It's better late than never."

Unilever Canada estimated the regulation, known as the colour regulation, cost the company about $1.2 million a year because it entailed separate margarine production, distribution systems and inventories.

McPhee said the regulation damaged the margarine manufacturing industry not only because of the additional costs involved in keeping yellow margarine out of Quebec, but also because it dampened consumer demand for margarine in general.

Unilever Canada plans to introduce to Quebec, over the next few months, all of its margarine brands in the yellow colour.

Streamline production

Danielle Bergeron, president and owner of Groupe Bergeron Thibault, the only Quebec-owned margarine manufacturer in the province, told CBC News Online from Trois Rivires that the change in legislation is not going to make a huge difference to her company but it will streamline production.

The company produces about 13.636,360 kilograms of margarine a year. Most of it is marketed under the brand name Nuvel. About 60 per cent is sold in Quebec, with the rest exported.

"It's not such a big deal for us," Bergeron said, adding the company no longer has to produce what she calls its "Quebec colour," which is cream, and now can concentrate on yellow. Producing separate colours of margarine meant stopping equipment and sanitizing it before proceeding with the second colour.

"It was a loss of time. It will help us a little bit. Nobody will lose their jobs because of the change," she said. "It means production is less complex and planning is easier."

She said it will be interesting to see how young people, who have not grown up with yellow margarine, will react to it.

Quebec's law was meant to protect butter producers in the market who felt threatened in the 1970s by the rise of margarine's popularity.

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