Canadian grocers have finally agreed to a grocery code of conduct after years of deliberation, with all major players on board. The federal, provincial, and territorial agriculture ministers made the announcement during their annual meeting, revealing that even Walmart and Costco have signed on to the code.
This development is seen as a positive step towards bringing fairness, transparency, and predictability to Canada’s grocery supply chain. The support of key retailers like Loblaw, Walmart, Costco, Metro, and Sobeys owner Empire is considered a significant milestone in the industry.
The voluntary grocery code aims to create a level playing field for suppliers and smaller retailers by providing guidelines for fair negotiations. However, progress on the code faced challenges last fall as some major retailers expressed concerns about potential impacts on retail prices.
Despite initial hesitations, Loblaw eventually agreed to the code in May, citing changes that addressed their previous concerns. Following Loblaw’s decision, Walmart Canada and Costco have also come on board to support the code.
The grocery industry in Canada has faced scrutiny over rising food prices, with accusations of profiteering and calls for stricter regulations. Grocery companies have defended themselves, stating that they operate within a complex supply chain with various economic factors influencing prices.
Amidst public and political pressure, grocery companies have been expanding their discount offerings to meet consumer demand for lower prices. Additionally, the Competition Bureau has launched investigations into anticompetitive behavior within the sector, targeting parent companies of major grocers.
Industry Minister Francois-Philippe Champagne has expressed a desire to attract foreign grocers to Canada to enhance competition in the market. Overall, the agreement on the grocery code of conduct marks a significant development in the Canadian grocery industry.
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