After years of contentious negotiations over a grocery industry code of conduct, all of Canada’s major grocers have now agreed to sign on to the new self-regulatory scheme for the first time.
The new code is expected to be implemented by June of next year. Before that can happen, the board still needs to hire an adjudicator who would manage any disputes arising under the code, establish an office to oversee it, and educate people across the industry about the code’s requirements. The fee increases in 2020, which helped to offset investments that both Loblaw and Walmart were making to improve stores and e-commerce operations, led to a backlash from suppliers who said the moves were proof of the need for better ground rules for the industry. Provincial and territorial agriculture ministers also began examining the issue.
In February, a House of Commons committee studying food prices sent a letter to the CEOs of Walmart and Loblaw, saying that the committee would consider legislating the rules if the retailers did not sign on to the voluntary code. There have been no further changes to the code since those discussions with Loblaw, said Michael Graydon, co-chair of the steering committee developing the code and CEO of Food and Consumer Products of Canada, which represents manufacturers.