Grocery code to increase 'fair and ethical dealing' industry, draft report says - BNN Bloomberg

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An industry group set up to hammer out a Canadian grocery code of conduct is getting closer to a final document, even as the way its terms will be enforced remains unclear.

A new working draft of the grocery code viewed by The Canadian Press and verified by two grocery sector sources lays out the fundamental elements of the industry-led accord, which aims to increase"fair and ethical dealing" across the grocery supply chain in Canada.

It also appears to be undecided how enforcement would be handled and how membership and participation in the code will work. However, big grocery chains have increasingly unilaterally imposed new or higher charges on suppliers, putting smaller grocers without the same clout at a disadvantage. Industry observers at the time cautioned that the trend of big grocers using their market weight to impose fees without negotiations could lead to less competition, higher food costs and fewer brands on store shelves.

 

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