For Immediate Release:

Quebec Margarine Trial Date Set for December

August 31, 1998 (Toronto) -- Unilever Canada Limited advises that Quebec Superior Court has set a trial for the week of December 14, 1998 to hear the company's motion against the Quebec Attorney-General regarding Quebec’s margarine colour restriction. 

In spite of its commitment under the Agreement on Internal Trade, the Quebec government failed to repeal the colour regulation by the September 1, 1997 deadline.  In November 1997, Unilever initiated a legal process to challenge the margarine colour regulation by importing yellow, butter-coloured margarine from the United States for sale in Alma, Quebec. 

Following the seizure of the margarine but no prosecution, Unilever filed a motion in Quebec Superior Court in February 1998 to have the regulation declared unenforceable.  The motion also asks the court to quash the seizure of yellow margarine from the retail outlet in Alma. Quebec is the only jurisdiction in Canada to enforce a colour regulation.

"While we are pleased that resolution of this issue is on the horizon, I find it regrettable that the courts must rule because of the abject failure of a government to live up to its commitment." said Bruce Mactaggart, Vice-President, General Counsel and Secretary of Unilever Canada Limited.

In June of 1996, Unilever began a campaign to encourage harmonization of Canadian margarine regulations as called for by the Agreement on Internal Trade signed by the Federal Government and all provinces, including Quebec, in 1994.  Currently, the industry is hampered by a number of interprovincial inconsistencies -- such as the colour regulation, differing requirements for fat levels and a diversity of approaches to blends and imitation products -- that force additional manufacturing, marketing and distribution costs on the Canadian margarine industry.

"As tariffs with our major trading partners such as the United States are reduced under the North American Free Trade Agreement and the World Trade Organization, Canadian interprovincial inconsistencies prevent the margarine industry from achieving efficiencies that would enable us to compete with margarine imports," added Mactaggart.

Mr. Gerald Tremblay, Q.C., of McCarthy Tetrault, will argue Unilever's case in Quebec Superior Court.

Unilever Canada Limited, a wholly-owned subsidiary of Unilever, is a diversified consumer products company whose interests in Canada include Lever Pond's, Lipton, Good Humor-Breyers, Lipton Monarch, A & W Beverages of Canada, Loders Croklaan, Blue Water Seafoods, DiverseyLever Canada, Calvin Klein Cosmetics (Canada), Elizabeth Arden Canada, and Bertolli Canada.

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Sean McPhee
Sean McPhee & Associates Inc.

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