Food, Health & Consumer Products of Canada > Industry Impact

Building strength, resilience and trust for suppliers, grocers, and Canadian families

Securing Canada’s essential food and grocery supply chains has never been more important. That’s why Canada needs a Grocery Code of Conduct — to promote predictability, transparency, and fair dealing as ingredients and products make their way from suppliers to stores to Canadians’ homes. Leaders across government, grocery retail, and food and consumer product manufacturing have worked together over the last two years to jointly develop solutions that will ensure a better deal in store for everyone.

What Is a Grocery Code of Conduct?

A Grocery Code of Conduct is a set of rules agreed upon by stakeholders within Canada's food supply chain, primarily retailers and suppliers, aimed at ensuring trust, fairness, and collaboration in their business dealings. There are three main components within the Canadian draft Code: guiding principles and trade rule provisions; a governance model; and an adjudication and dispute resolution process, all of which work together to promote fair and ethical dealing and contractual certainty.

Why a Code Makes Sense

Enables a thriving industry
Promotes trust, fair dealing, and collaboration throughout the value chain
Increases commercial certainty
Establishes effective, equitable dispute resolution
Recognizes the unique needs of all stakeholders in the grocery value chain

How will the Code benefit the industry in Canada?

It is a necessary step to improve the resiliency and efficiency of the grocery supply chain in Canada. The primary objective is to improve supply chain relationships through guiding principles of predictability, certainty, transparency, and fair dealing. By providing clarity for business practices and establishing guiding principles, the Code will improve industry relationships overall and ultimately benefit Canadians.

The development of the Code was a collaborative effort, designed to be reciprocal and balanced to benefit producers, suppliers, and retailers from the smallest to the largest companies across the value chain. Each provision and guiding principle was carefully considered after rigorous debate from all parties at the negotiating table.

What does a successful Code look like?

A successful solution in Canada will require the participation of all applicable retailers, suppliers, and primary producers representing the full value chain of the grocery industry. Another success criterion will be the adoption of a "light touch" adjudication model, as is in place in the U.K., which encourages trading partners to work collaboratively to resolve issues directly while providing education and support to facilitate adoption.

How was the Code designed and who was involved?

The journey to create Canada’s first-ever Grocery Code of Conduct began over three years ago, with a proposal from FHCP and Empire, supported by Empire’s CEO, Michael Medline. This led to the formation of a 10-person multi-stakeholder steering committee co-chaired by FHCP CEO Michael Graydon and RCC President and CEO Diane Brisebois, tasked with developing an implementation framework.

A 25-person cross-industry working group, including executives from retail, manufacturing, and primary processing sectors, provided practical insights. Subsequently, the Code Design Team finalized the Code of Conduct provisions in November 2022. Key team members included:

Serge Boulanger, Metro Inc.
Errol Cerit, FHCP
Ted Lawson, Nortera Foods
Patrice Leger Bourgoin, APM Quebec
Doug Nathanson, Empire/Sobeys
Luc Prevost, Vegpro International
Mark Taylor, Lactalis Canada
Giancarlo Trimarchi, Vince’s Market

The Steering Committee also developed a governance model, presented in industry education sessions in April and May 2023.

In late 2023, the Interim Board of Directors of the newly formed Office of the Adjudicator for the Grocery Code of Conduct presented the finalized Code and governance framework to Federal, Provincial, and Territorial Ministers. This milestone marked a significant phase in the ongoing effort to promote fair trading practices in the grocery sector, which began in fall 2021. The Code’s development was shaped by input from various sub-committees and the Industry Working Group, which convened in July 2022. Supported by a competition law specialist, this group ensured the Code’s fairness and relevance to the Canadian grocery market. Broad stakeholder contributions were crucial.

The success of the Code depends on the participation of all major grocery retailers. Concerns about market imbalances if key players do not participate were discussed in recent House of Commons Agriculture Committee hearings, and a Code was broadly supported in their recent report, A call to action: How government and industry can fight back against food price volatility. The Interim Board committed to meaningful dialogue to address these challenges.

Recent key developments

On July 18, 2024, the Ministry of Agriculture and Agri-Food Canada, announced that all major grocery retailers have agreed to an industry-developed grocery code of conduct. This includes all the national grocers and the many regional and local independent grocers from coast to coast. The commitment of the major grocers underscores the importance of a fully inclusive, voluntary Code developed and managed by stakeholders across the entire grocery supply chain. The full launch of the Code is expected June 2025.

What are the next steps towards implementation?

Establishing the Adjudication Office: With $1.2 million in government funding, the immediate priority is to set up the Office of the Grocery Sector Code of Conduct to oversee compliance, address disputes, and ensure adherence to the code.
Finalizing Operational Details: Detailed guidelines and operational procedures will be established, defining the specific roles, responsibilities, complaint handling processes, and enforcement mechanisms.
Stakeholder Education and Training: Educational programs, including training sessions, workshops, and documentation distribution, will inform retailers and suppliers about the specifics of the code to ensure they understand their obligations and its application.
Monitoring and Reporting: A system for monitoring compliance and reporting on the code’s effectiveness will be developed, with regular reports and audits to track progress and identify areas needing adjustments or additional support.

More information is available at CanadaCode.org.

Code of Conduct