Sisi Chan

Canadian grocery industry’s new code of conduct takes full effect

Introducing the new grocery code of conduct, set to be fully operational for all stakeholders including grocers, suppliers, wholesalers, and primary producers. This landmark move marks a key strategic change in the industry.

The rationale behind: This code is strategically designed to promote fairness, preventing unjust penalties and fees for suppliers. It’s ready to revolutionize the industry with a promise of enhanced transparency, fairness, and predictability.

The code’s constitution, including its governance, will include a dispute resolution mechanism. Starting Jan. 1, the office of the Canada Grocery Code will collect annual membership dues, thereby making the new strategy fully operational.

The initiative was born due to contentious fees charged to suppliers by larger grocery retailers, underscored by the COVID-19 pandemic and consequential high food inflation. The five largest grocers – Empire, Loblaw, Metro, Walmart Canada and Costco Canada – were notably under the scanner amidst these clashes, focusing industry attention between 2020 and 2026.

The global perspective: Plans for the code are to manage commercial issues within the industry, not specifically to sway retail food prices. The model is following similar successful strategies already deployed in the U.K. and Australia.