A new voluntary grocery code of conduct is scheduled to be fully implemented in Canada on Thursday, aiming to ensure fairness in dealings between grocers and suppliers. The code, overseen by the Office of the Grocery Sector Code of Conduct, includes trade rules, governance structures, and a process for resolving disputes.
Major Canadian grocers such as Empire, Loblaw, Metro, Walmart Canada, and Costco Canada have officially signed up for the code. As of January 1, the code will be fully operational, allowing formal complaints from grocers, suppliers, and other stakeholders. The Office of the Canada Grocery Code will also start collecting membership dues and releasing annual reports on industry trends and proposed enhancements.
While the code does not target lowering food prices, it aims to enhance relationships within the industry. The establishment of the code was a response to contentious fees imposed on suppliers by large grocery retailers, particularly during the high food inflation period following the COVID-19 pandemic.
Former Empire CEO Michael Medline was a key advocate for the code, believing it could lead to benefits such as shorter supply chains and more choices for consumers. However, opinions differ on whether the code will impact prices, with some experts suggesting it could lead to lower prices while others caution that it might drive prices up by limiting concessions demanded by grocers from their suppliers.
The Canadian grocery sector’s adoption of the code follows similar initiatives in countries like the U.K. and Australia. Despite differing views on its potential impact, the code is expected to bring more transparency, fairness, and predictability to the Canadian grocery industry.
