Loblaw to back Canada grocery code 

After months of negotiation, Loblaw Companies Limited (Loblaw) says it’s standing behind a proposed grocery code of conduct.

The company’s top brass confirmed their commitment to the policy May 16 at the company’s supplier summit.
“We have worked intensively and collaboratively with industry groups so that the code is clearly drafted and fair for all industry participants,” said Per Bank, Loblaw President and chief executive officer.

Stemming from friction between retailers and suppliers, the code was developed by the industry to promote transparency and fairness, and to solve disputes. It’s been in the works since 2021. 

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The announcement comes following six months of company interim board discussions and December statements from Loblaw executive chair Galen Weston that a grocery code would cause higher food prices or fewer food choices.

The company was also at the heart of a social-medial sparked national boycott effort, which was to start this month.
In September 2023, major grocery chains promised to take action to stabilize prices in the wake of continued concern over grocery costs.

Loblaw says the next steps for the code will be for other major grocers—i.e. Walmart—to sign on.

“We believe in the value of a code of conduct for the industry and are happy with the progress made,” Bank said. “The Code now requires the participation of all major retailers and suppliers to help bring in a new era for Canada’s grocery industry, enhancing the relationship between retailers and suppliers, who both exist to best serve customers.”

Lawrence MacAulay, federal minister of agriculture and agri-food, and Andre Lamontagne, Quebec minister of agriculture, fisheries, and food, issued a joint statement following Loblaw’s announcement.

The two echoed Bank’s call for other grocers to follow Loblaw’s lead.

“The goal of the Grocery Sector Code of Conduct is to bring fairness, transparency, and predictability to our grocery sector and supply chain,” the statement read. “We believe that uniting all supply chain partners around these principles will produce the best outcomes for the sector and all Canadians. With the news that Loblaw is signing on, we now call on the remaining large retailers to do what is in the best interests of Canadians and follow suit.”