Food industry code of conduct could tamp down rising grocery bills, Empire CEO says

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The code is expected to address growing concerns about how the top food retailers impose fees and fines on suppliers

, which many argue they have no choice but to pay in a sector where five chains control roughly 80 per cent of sales.Article content

“We’re seeing instances where if we had a code, some of this inflation … might not be occurring,” he said. “If we had a way that we could work better together and encourage businesses to talk to each other and not just lob threats, then we could tamp down a little bit of this inflation.”Empire, Canada’s second-largest grocery chain, beat expectations in its second quarter by recording $175 million in profits, according to a Thursday earnings update.

Scotiabank analyst Patricia Baker said Empire’s net earnings of 66 cents per share represented “yet another earnings beat” for the grocer, which “handily” outdid analyst expectations of 60 cents per share. Empire’s gross margin rate of 25.3 per cent was also better than anticipated, she said in a note to investors on Thursday morning.

 

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