Canada’s grocery code of conduct is now fully loaded after the final two retailers, Costco and Walmart, agreed to the terms, reports CBC.
Officials hope the code of conduct keeps grocery prices down, as the guidelines are aimed at fair negotiations between suppliers and retailers and were created to provide a more level playing field with smaller independent grocers.
The federal government described the addition of Costco and Walmart to the code of conduct as a step toward bringing more fairness, transparency, and predictability to Canada’s grocery supply chain and consumers.
The code is supposed to be officially enacted next summer.
Grocery prices remain high in Canada. In early June the Waterloo Region Record reported grocers had received a warning from suppliers to expect price increases at much as 40% this summer and fall. Grocers told the Record they would not pass the full increase on to shoppers.
One of the biggest holdouts to the grocery code of conduct, Loblaw Companies Ltd., announced it would support the guidelines in May. Loblaw initially estimated that the implementation of the code could lead to a $1 billion increase in food costs, but later reversed course and said the decision to support the code “is part of Loblaw’s continued commitment to promoting a fair and transparent grocery industry in Canada.”
