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Loblaw (TSX: L), METRO (TSX: MRU) and George Weston (TSX: WN) are three Canadian-listed companies with exposure to everyday food and pharmacy businesses. They are an illustrative selection, not a definitive or ranked list. Their businesses may support a defensive investment thesis, but that does not mean their shares will preserve capital or fall less than the broader market. One important portfolio caveat: George Weston controls about 52.6% of Loblaw’s outstanding common shares, so owning both creates substantial overlap rather than two independent grocery exposures.
What “defensive” means for these stocks
Food and pharmacy businesses sell products and services people need regularly. That can make their operating demand an appealing feature for investors seeking consumer-staples exposure. It does not establish how the shares perform in a downturn: stock prices can fall because of valuation, costs, competition, regulation, labor issues, supply disruptions or other company and market risks.
The company disclosures cited here report business descriptions and historical results. They do not provide a common-date comparison of valuation, dividend yield, balance-sheet obligations, share-price volatility or historical drawdowns against a broad Canadian equity benchmark. The companies therefore should not be ranked here as the most attractive or as proven defensive performers.
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| Company | Business and footprint | Reported evidence | Portfolio distinction |
|---|---|---|---|
| Loblaw Companies Limited (TSX: L) | Food retail, pharmacy and healthcare services, health and beauty, apparel, general merchandise, and wireless products and services. Its 2025 annual report identifies George Weston as its controlling shareholder. | In Q4 2025, comparable 12-week revenue grew 3.5%, and adjusted diluted net earnings per common share rose 10.9% on that comparable 12-week basis. These are historical results, not a full-year growth rate or forecast. Loblaw Q4 2025 earnings release | Direct exposure to a large food and pharmacy retailer, but it overlaps substantially with George Weston through common control. |
| METRO Inc. (TSX: MRU) | Food and pharmacy retailer, franchisor, distributor and manufacturer, with operations concentrated in Québec and Ontario. Its 2025 network comprised 1,006 food stores and 638 pharmacies. | For fiscal 2025, sales were C$22,006.7 million, up 3.7%, and net earnings were C$1,019.5 million, up 9.4%. Fully diluted EPS was C$4.63, up 12.7%; adjusted fully diluted EPS was C$4.77, up 10.9%. METRO 2025 Annual Report | A separate food and pharmacy operator, with a more regionally concentrated footprint than a nationwide label might imply. |
| George Weston Limited (TSX: WN) | A publicly traded parent with significant Loblaw exposure, as well as Choice Properties real estate and consumer goods businesses. | For 2025, revenue was C$63,903 million and operating income was C$4,416 million. Revenue rose C$3,780 million from 2024; the company attributed the increase in part to the 53rd week and primarily to positive same-store sales growth in food and drug retail and a net increase in retail square footage. George Weston 2025 Annual Report | Holding-company exposure, not simply a second direct grocery investment. Its scale and business mix include more than Loblaw. |
Loblaw: direct food, pharmacy and healthcare exposure
Loblaw combines grocery retail with pharmacy, healthcare and other retail businesses. That mix gives investors exposure to recurring consumer needs, while also meaning its results are not limited to grocery sales alone. The company’s Q4 2025 release reported 3.5% revenue growth and 10.9% growth in adjusted diluted net earnings per common share on a comparable 12-week basis. Those measures describe the comparable quarter period specified by Loblaw; they should not be treated as annualized results or a forecast.
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Loblaw’s ownership structure matters when constructing a portfolio. George Weston’s 2025 annual report states that it held approximately 52.6% of Loblaw’s outstanding common shares. A shareholder in WN therefore has meaningful indirect exposure to Loblaw alongside George Weston’s other businesses, while a shareholder in L owns Loblaw shares directly. The exact look-through exposure in a portfolio depends on position sizes and market valuations. Loblaw 2025 Annual Report
METRO: a separate operator with regional concentration
METRO’s banners span grocery formats and pharmacy chains, including Metro, Metro Plus, Super C, Food Basics, Adonis and Première Moisson in food, and Jean Coutu, Brunet, Metro Pharmacy and Food Basics Pharmacy in pharmacy. Its 2025 annual report describes a network of 1,006 food stores and 638 pharmacies and a business concentrated in Québec and Ontario. That regional focus distinguishes METRO from a broad national exposure and is relevant when considering geographic diversification.
METRO reported fiscal 2025 sales growth of 3.7% and net earnings growth of 9.4%. Its reported fully diluted EPS and adjusted fully diluted EPS had different growth rates, so the measures should not be conflated. The company also said its dividend per share increased 10.5% in fiscal 2025, marking its 31st consecutive year of dividend growth. A record of past increases is historical evidence, not a promise of future distributions.
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METRO’s investor-relations page says its policy is to pay dividends representing 30% to 40% of prior-year net earnings before extraordinary items. The company also states that dividends are subject to board approval. This is a description of policy, not a guaranteed payout or a substitute for checking the dividend’s affordability against current earnings, cash flows and obligations. METRO Investor Relations
George Weston: a parent-company position, not a separate Loblaw bet
George Weston’s reported 2025 revenue and operating income reflect a parent with multiple businesses, including its significant Loblaw interest, Choice Properties real estate and consumer goods. Its C$63,903 million of revenue should not be described as grocery revenue. The company reported that revenue increased by C$3,780 million from 2024, with the 53rd week contributing to the change; it said the increase was primarily driven by positive same-store sales growth in food and drug retail and a net increase in retail square footage.
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Buying WN rather than L changes the nature of the exposure: WN is a holding company with other businesses in addition to its controlling stake in Loblaw. Buying both can add direct Loblaw shares to indirect Loblaw exposure, but it does not make the underlying grocery business independent or eliminate concentration. Whether that overlap is acceptable depends on the investor’s intended allocation.
Checks to make before treating them as defensive holdings
- Measure overlap. Account for George Weston’s control of Loblaw before counting L and WN as separate portfolio exposures.
- Compare on the same date. Use consistent as-of dates and methods for share price, valuation, dividend yield, balance-sheet obligations and payout coverage; the figures above do not establish those comparisons.
- Test the defensive claim against returns. Compare historical drawdowns and volatility for each share with a broad Canadian equity benchmark over a stated period. Operating in staples businesses alone does not demonstrate lower equity risk.
- Separate reported and adjusted earnings. METRO’s fiscal 2025 reported and adjusted EPS figures are different measures; Loblaw’s cited growth is for a comparable 12-week period.
- Consider business-specific risks. Costs, competitive pressure, regulation, labor, supply chains, acquisitions, consumer trade-down and valuation can affect results and share prices.
- Treat distributions as uncertain. Historical dividend growth and a stated policy do not guarantee future dividends.
How to read this three-stock list
The trio offers three different ways to examine Canadian food and pharmacy exposure: direct ownership of Loblaw, an independent food and pharmacy operator in METRO, and a broader parent-company investment in George Weston. It is not three-way diversification by underlying grocery business, because WN controls L. Any assessment of whether the shares suit a defensive portfolio needs current, consistently measured valuation, financial obligations and return data in addition to the historical company results reported here.
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