Canadian grocery industry’s new code of conduct takes full effect

The code is not intended to address retail food prices as it does not regulate pricing, control shelf placement or limit companies’ ability to negotiate commercial terms.

The voluntary grocery code of conduct for grocers, suppliers, wholesalers and primary producers is set to fully roll out on Thursday.

The grocery code is intended to promote fair dealings between grocers and their suppliers, including the application of penalties and fees. It was set up in an effort to bring more transparency, fairness and predictability to the industry as a whole.

The code, governed by the Office of the Grocery Sector Code of Conduct, includes trade rule provisions, a governance model and an adjudication and dispute resolution process.

Starting Jan. 1, the code — which was being rolled out in stages — will be fully operational, including the dispute resolution mechanism governing how complaints are addressed by the office and consequences for violations of the code.

Grocers, suppliers and other members will now be able to submit formal complaints. The office of the Canada Grocery Code will also start collecting annual membership dues.

Starting in 2026, the office will also release an annual report that highlights sector trends, systemic challenges and proposed improvements, according to the Canada Grocery Code website.

The industry committee tasked with creating the code was established in response to contentious fees being charged to suppliers by large grocery retailers, an issue that came to a head in 2020. Years of high food inflation in the wake of the COVID-19 pandemic stoked public frustration with the grocery sector and though the code’s purpose is not to lower costs, its adoption nonetheless became a political issue.