The two remaining opponents of the grocery code, Walmart and Costco, agreed to join the pact. (Photo by Paul Weaver/SOPA Images/LightRocket via Getty Images) (SOPA Images via Getty Images)
The two remaining opponents of the grocer code, Walmart and Costco, agreed to join the pact.
Federal, provincial and territorial agriculture ministers announced Thursday that all major retailers, including Walmart and Costco, which had not previously signed the agreement, have agreed to join the code of conduct.
“After many years of work and broad industry participation, we are pleased to announce that all major retailers have agreed to join the Grocery Sector Code of Conduct,” the statement said.
“This includes Loblaw, Sobeys, Metro and most recently Walmart and Costco. This is a positive step towards bringing more fairness, transparency and predictability to Canada’s grocery supply chain and consumers.”
The Grocery Code of Conduct aims to set standards for transactions between suppliers and grocery retailers. The process of creating the code was initiated in response to an issue that arose in 2020: fees charged to suppliers by major grocery retailers.
The agreement appeared to be in jeopardy last year when the chief executives of Walmart and Loblaw said they would not sign the agreement, citing high costs. Empire Chief Executive Michael Medline, who has advocated for the code, said in December that its future was “in jeopardy” and that it would be “a sad day for Canadians and our industry” if other major retailers did not sign it.
A House committee investigating food prices told Loblaw and Walmart in February it would recommend the rule become law if the companies didn’t sign on.
Loblaw agreed to sign the code in May after six months of negotiations. The company said at the time that the code’s fundamental principles had not changed, but that it had worked with the committee and interim board that drafted the agreement to “provide clarity that we believed was missing in the previous agreement.” CEO Par Bank told The Canadian Press that the code “is now fair and will not lead to price increases.”
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Industry Minister François-Philippe Champagne said the grocery code of conduct “will contribute to strengthening the strength and resilience of Canada’s supply chains.” On Thursday, Champagne called Walmart and Costco joining the code “a major step forward toward fairness and transparency.”
Great news! We’re excited to see Walmart and Costco join the Grocery Code of Conduct! Now all five major retailers are on board, joining Loblaw, Sobeys, and Metro. A huge step toward fairness and transparency!
We will continue to fight for consumers. https://t.co/0eEYJAupZV
— François-Philippe Champagne (FPC) 🇨🇦 (@FP_Champagne) July 18, 2024
With files from The Canadian Press.
Alicja Siekierska is a senior reporter at Yahoo Finance Canada. Follow her on Twitter translation:.
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