Loblaw to Sign Grocery Code of Conduct

After six months of negotiations, Loblaw president and CEO Per Bank said that the retailer is ready to sign the Grocery Code of Conduct in Canada if other industry stakeholders do, reports Canadian news source CBC News.

"The code now is fair, and it will not lead to higher prices," said Bank.

A group of Canadian leaders in the food industry developed the code to level the playing field for suppliers and smaller retailers; however, the process halted in December when Loblaw and Walmart Canada refused to sign the voluntary code over concerns it would raise prices for consumers, according to the report. 

The agreement itself will make business practices more transparent and provide a way for food suppliers and retailers to settle disputes, according to Gary Sands, Canadian Federation of Independent Grocers SVP and member of the code's interim board.

Loblaw chief legal officer Nick Henn said that the code is likely to take effect by June 1, 2025. He also explained the retailer’s hesitation in signing on until this point.

"We felt that the words weren't clear in lots of areas, and so we've spent some time with the working committee and the interim board, fixing those areas, improving the code, and providing the clarity that we thought it lacked the last time around," said Henn.

Walmart is still deciding whether to sign on alongside other Canadian grocers. The retailer told CBC News that it recently received the latest draft of the code.

"We will review it and determine next steps. As we've said all along, we continue to be focused on our customers' best interests," said a Walmart spokesperson. Full Story