It’s taken a while, but Canada’s Grocery Code of Conduct is now fully implemented and operational.
The grocery industry’s major players have all signed on to the code, “bringing more fairness, transparency, and predictability to Canada’s grocery supply chain and for consumers.”
What is this code? Well, Food, Health & Consumer Products of Canada (FHCP) defines the code as follows:
The Canada Grocery Code of Conduct is a voluntary, industry-led framework governing commercial relationships between grocery retailers and suppliers. It is built around guiding principles that promote predictability, transparency, and fair dealing, supported by a governance structure and an independent dispute resolution mechanism.
Its development is the result of tension between retailers and suppliers over the fees retailers impose on suppliers to keep their products on Canadian shelves. Similar codes implemented in Australia and the United Kingdom have had a stabilizing effect, leading Canadian politicians and industry leaders to look to similar solutions to their own domestic issues.
Canada’s Grocery Code came into full force on January 1, and is designed to recognize the unique needs of all grocery chain stakeholders, regardless of size. Its objectives include:
- Contributing to a thriving and competitive grocery industry,
- Promoting reciprocal trust and collaboration among value chain partners,
- Allowing parties to make informed business decisions, and
- Provides an effective mechanism for resolving commercial disputes.
The Code’s website includes training documents, a membership directory, information about the dispute resolution process, and more. Food and beverage companies looking to enter the Canadian market should spend some time reviewing the site to stay up to date. Click here to contact the Grocery Code team.
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