"The code is not a silver bullet or a panacea for every problem globally," said Michael Medline, chief executive of Sobeys parent company Empire Co. Ltd.
Though Empire and Metro had expressed early support, there were several months of uncertainty over whether the other major grocers would be on board, with government pressure ramping up and threats of making the code mandatory. Loblaw, Walmart Canada and Costco confirmed their support earlier this year.
Medline worried not only about whether such fees were fair, but also about an"exodus" of manufacturers from Canada, resulting in lost jobs, risks to prices, and longer supply chains. One of the code’s provisions deals with forecasting and ordering, with the aim to bring more discipline to the process and reduce compliance fines for short orders, Graydon said. He believes the code could lower costs for manufacturers by reducing the number and scale of fines they face from retailers.
The code is set to be officially in place next June, with the creation of an office to oversee it underway.
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