Canada’s grocery code of conduct could encourage investment and innovation, advocates say

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Michael Medline, chief executive of Sobeys parent company Empire Co. Ltd, told The Canadian Press that the industry can only benefit from clearer rules over negotiations and disagreements

Two of the grocery code of conduct’s biggest advocates say they believe it could spark more investment and innovation by food manufacturers in Canada, hedging against shortages and price volatility in the future.

The grocery code of conduct is a voluntary agreement for suppliers and retailers meant to create guidelines for fair dealings and level the playing field for smaller businesses. Work on the code began in response to calls from some in the industry to address fees charged by large retailers to suppliers.

“I was worried that ... if the industry couldn’t clean itself up, that government was going to get involved,” he said. There are some large companies whose Canadian manufacturing capacity is much less than it used to be, said Graydon, as it’s been moved to the U.S. Hiring for the grocery code adjudicator has begun, and the team is working on a more detailed dispute resolution process, Graydon said. There will be mechanisms for arbitration and binding arbitration, but he’s hoping most disputes will be ironed out before it comes to that.

 

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