Rosa Saba, The Canadian PressSimon Laroche, president of Kraft Heinz Canada, is photographed in the company's Toronto office on Thursday, July 18, 2024.THE CANADIAN PRESS/Chris Young
Laroche thinks the code of conduct, which sets out guidelines for fair dealing between grocers and suppliers, could bring some stability to an industry emerging from a difficult four years marked by empty shelves, sticker shock and rising consumer frustration.Progress on the nearly complete grocery code stalled last year as it became clear that some major grocers had reservations. Loblaw joined earlier this year after some changes to the proposed guidelines.
A code brings transparency and encourages fair negotiations between suppliers and retailers, said Laroche, adding that one of the most important benefits is a clear dispute resolution process. At its peak, grocery inflation in Canada was 11.4 per cent; since May 2020, food prices have risen by more than 22 per cent.
“A lot of people are trying to make a really simple story, ‘Oh, somebody’s taking advantage of a situation,’” he said.For Kraft Heinz, inflationary pressures have stabilized to a much more manageable level, Laroche said. “From a procurement standpoint, we did a lot of learning to make sure that if something happened, we have alternatives.”
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