Canada’s newly introduced Grocery Code of Conduct has officially begun rolling out, but experts warn that consumers should not expect immediate changes in grocery prices in the coming days or weeks.
The voluntary code began implementation on Thursday and is intended to improve fairness and transparency across the grocery supply chain. However, experts emphasize that any measurable impact on food prices will take time.
The Grocery Code of Conduct applies to grocers, suppliers, wholesalers, and primary producers. Its primary goal is to promote fair trade practices within the grocery sector by creating clearer and more predictable commercial relationships.
The code includes provisions related to penalties and fees and is designed to reduce power imbalances between large grocery retailers and their suppliers. It also establishes trade rule provisions, a governance model, and a formal adjudication and dispute-resolution process.
The code is governed by the Office of the Grocery Sector Code of Conduct. Under this framework, grocers, suppliers, and other participating members are now able to submit formal complaints regarding code-related disputes.
The Office will also begin collecting annual membership dues as part of the governance structure supporting the code’s implementation and enforcement.
Dr. Sylvain Charlebois, Senior Director of the Agri-Food Analytics Lab at Dalhousie University, told in an interview that grocery shoppers should not expect food prices to decrease in the near future as a result of the code.
“We’re not expecting food prices to drop; we’re expecting food inflation to stabilize over time,” Charlebois said.
He explained that stabilization could eventually lead to increased competition within the grocery sector, which may provide consumers with more choices and, in some cases, more stable or lower prices over time.
“When you hear about more competition, typically, you see prices being more stable, and in some cases, you could see prices drop over time,” he said.
Charlebois noted that the Grocery Code of Conduct has undergone multiple revisions since its initial proposal. The current version is the 11th draft and is significantly different from earlier versions.
According to Charlebois, the present draft is less powerful and less influential than the initial version, raising questions about how effective it will be in addressing disputes between grocers and vendors.
One of the key uncertainties surrounding the code is whether grocery retailers will comply with arbitration decisions when conflicts arise with suppliers.
“I do think that time will tell, and we’ll see whether or not grocers are willing to listen to the arbitrator when dealing with vendors,” Charlebois said.
He added that 2026 will be a critical year in determining whether the code delivers meaningful change.
Charlebois believes that a functioning code could ultimately benefit consumers and strengthen the food industry by increasing competitiveness.
However, he also suggested that if the voluntary framework fails to produce results, the Grocery Code of Conduct could eventually become mandatory.
According to Charlebois, it will take approximately six months to assess whether the code is working as intended.
He said key indicators of success would include increased product variety and a decline in food inflation. Currently, food inflation stands at 4.7 per cent.
“If you see more choices, products you’ve never seen before, if you have food inflation rate dropping, say, below 2.5 per cent—those are signs you’re looking for,” he said.
Conversely, fewer product choices and rising food inflation would be warning signs.
“If you’re seeing fewer choices, and if the food inflation rate is continuing to increase, those are red flags,” Charlebois added.
Source- CTV