TORONTO — A grocery code of conduct could stabilize food prices in the future and encourage more investment in the Canadian food industry, according to the president of Kraft Heinz Canada.
Laroche said he's happy to hear the grocers are on board with the code, and believes it will be a positive thing for consumers and for the industry. The idea of an industry-led commitment to fair dealings predates the recent bout of food inflation, gaining traction in 2020 amid pandemic supply chain challenges. However, negotiations between grocers and suppliers, long hidden from public view, became hot-button issues as inflationary pressures rose.
And as Canada’s largest grocers increasingly came under fire for rising profits amid inflation, some executives pointed fingers at large multinational suppliers, accusing them of asking for unreasonable price increases. The company has also learned a lot about how to mitigate supply chain disruptions after the empty shelves and shortages of the early months of the pandemic, and has made some changes as a result.
Kraft Heinz also learned to have backup recipes in case certain ingredients, like the oil in mayonnaise, shot up in price or were difficult to procure, said Laroche.
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