Canada’s grocery code of conduct clears final hurdle: ‘Positive step’

All the major Canadian grocers are now on board for a grocery code of conduct, paving the way for industry guidelines that have been several years in the making.

The federal, provincial and territorial agriculture ministers made the announcement Thursday during their annual meeting in Whitehorse, saying the remaining holdouts Walmart and Costco have now agreed to sign on to the code.

“This is a positive step toward bringing more fairness, transparency, and predictability to Canada’s grocery supply chain and for consumers,” the ministers said in a statement.

Confirming the support of the five major retailers — Loblaw, Walmart, Costco, Metro and Sobeys owner Empire — is an “important milestone,” said Michael Graydon, CEO of the Food, Health & Consumer Products of Canada association and chairman of the interim board for the code.

“It was critical that all of the retailers got involved, because it’s a very competitive business,” he said.

“It kind of was an all or none situation. And I think they all respected that and came to the table.”

The voluntary grocery code is meant to level the playing field for suppliers and smaller retailers by providing guidelines for fair negotiations.

Progress on the code appeared to be in jeopardy last fall as it neared completion, with some major retailers saying they weren’t ready to sign on. Leaders from Loblaw and Walmart Canada told MPs at a House of Commons committee meeting that they were concerned the code would lead to higher retail prices.

As a result, calls to make the code mandatory grew, with the House of Commons committee studying food prices telling Loblaw and Walmart in February that if they wouldn’t sign on, it would recommend the code be made law — an option that the federal