Grocery code of conduct ‘will not work’ without Loblaw and Walmart, MPs told

In its current state, both Loblaw and Walmart Canada have so far refused to sign on to the grocer code of code that has been in development since fall 2021.

Canada’s long-planned grocery code of conduct “will not work” without the cooperation of big grocery chains, like Loblaw and Walmart, MPs were told by industry experts at a parliamentary committee meeting.

In its current state, both Loblaw and Walmart Canada have so far refused to sign on to the code that has been in development since fall 2021 and focused on “promoting fair trading practices within the grocery sector,” creating an impasse to roll out the code planned for launch this year.

Speaking at a meeting of the Standing Committee on Agriculture and Agri-Food Tuesday, one food industry expert said it would be better “not to have a code if Loblaw and Walmart won’t be participating.”

“In my opinion, there is no debate,” said Sylvain Charlebois, food researcher and Dalhousie University Agri-Food Analytics Lab director.

“The code will not work without the mandatory participation of all the players in the industry,” he told MPs in French, adding that the code is a crucial step for achieving long-term food price stability.

“I can’t see this code working without Loblaw and Walmart,” Charlebois added.

This comes as grocery food prices rose 4.7 per cent year annually in December, the same pace reported the previous month, according to Statistics Canada data released in January.

In December, Loblaw chair Galen G. Weston and Walmart Canada CEO Gonzalo Gebara said that they aren’t open to signing the code in its current form, saying it would drive up costs.