Sobeys benefitted from having its headquarters in Nova Scotia when it secured a $950,000 untendered contract in 2024 under a new government initiative to support local businesses, members of the legislature committee were informed on Wednesday.
Chris Morrissey, deputy minister of growth and development, explained to MLAs on the public accounts committee the advantage of having executive leaders accessible due to their proximity in the province.
He highlighted the familiarity of the public with Sobeys’ Scene+ points program as a contributing factor to winning the contract as part of the Nova Scotia Loyal program last year.
Government officials revealed that in 2022, all major retailers were approached simultaneously with an offer to participate in the program.
Melissa Quinn, the project executive for Nova Scotia Loyal, mentioned that Sobeys showed the most interest and readiness to act promptly, driven by their existing local promotion initiatives within their stores.
Comparing Sobeys to Loblaws and Walmart, Quinn noted that Sobeys had a higher number of local producers supplying them, giving them a competitive edge in participating in the program.
The contract with Sobeys allowed the government to offer additional Scene+ points to customers buying local products, with bonus Air Miles points for shoppers at the Nova Scotia Liquor Corporation.
The rewards component of Nova Scotia Loyal was discontinued after a year, with the government redirecting funds towards increasing $10 farmers’ market vouchers for students and newcomers to the province.
Assessing the Impact
Morrissey informed reporters that the decision to shift away from a rewards-based program was based on data showing a plateau in the initial 20% sales increase for Nova Scotia products. An analysis indicated that growth could be sustained without offering reward points, as additional points were unlikely to drive further growth.
In 2024, the program distributed 135,000 vouchers to grade school students, a number that increased to 215,000 the following year and extended to post-secondary students and newcomers.
The government introduced a branding assistance component under Nova Scotia Loyal to help local companies improve their product visibility on store shelves.
Opposition members raised concerns about the government’s monitoring of the program’s effectiveness in benefiting Nova Scotians, local producers, and farmers.
“We need to know if it’s making life better for Nova Scotians, is it making life better for Nova Scotia producers and farmers,” said NDP MLA Lisa Lachance to reporters.
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