NEW YORK, December 31, 2025, 13:25 ET
- Canada’s grocery industry code of conduct becomes fully operational on Jan. 1, including a formal dispute process.
- The five largest grocers — Loblaw, Empire (Sobeys), Metro, Walmart Canada and Costco Canada — are registered under the voluntary code.
- Supporters say it targets supplier fees and contract practices, not shelf prices directly.
The grocery industry’s new code of conduct will take full effect in Canada on Thursday, introducing a formal system for suppliers and grocers to resolve disputes over fees, penalties and contract terms. 1
The move matters now because the relationship between large retailers and suppliers has been under intense scrutiny after years of food inflation and complaints about “contentious fees” charged to manufacturers and producers. 1
The voluntary code was developed to create clearer ground rules for how grocers apply charges such as penalties and fees, and to make commercial dealings more transparent and predictable across the supply chain, the Office of the Grocery Sector Code of Conduct framework says. 1
Starting Jan. 1, the dispute-resolution mechanism — effectively a complaints process with consequences for violations — becomes fully operational after a staged rollout, The Canadian Press reported. 1
The office will also begin collecting annual membership dues, and it plans to publish annual reporting on sector trends and systemic challenges starting in 2026, according to the code’s website. 1
Canada’s five largest grocers — Loblaw, Empire (owner of Sobeys), Metro, Walmart Canada and Costco Canada — have now formally registered under the code, the report said, giving the initiative critical mass among the dominant retailers. 1
Supporters argue the code could curb what they describe as “supply chain bullying,” where suppliers face unilateral fee hikes from powerful buyers, a dynamic they say can ripple through to consumers over time. 2
“It’ll take a couple of years,” said Sylvain Charlebois, director of the Agri-Food Analytics Lab at Dalhousie University, adding that the code’s impact depends on whether the voluntary framework has “enough teeth.” 2
The code is not designed to directly regulate grocery prices, and it does not control shelf placement or restrict companies’ ability to negotiate commercial terms, The Canadian Press reported. 1
Former Empire chief executive Michael Medline, an early advocate of a grocery code, has said it is not a “silver bullet,” though he argued it could eventually support more choice and lower prices by improving how the supply chain functions. 1
The initiative also has a political backdrop: Ottawa had warned the industry it could make the code mandatory if major players did not join, according to the report. 1
Canada is arriving late to the model. The Canadian Press noted other countries, including the United Kingdom and Australia, have established grocery codes to police retailer-supplier conduct. 1
