The House of Commons agriculture committee met to study the implementation of the Canadian grocery code of conduct. Witnesses included Mark Taylor from Lactalis Canada, Nick Henn from Loblaw, Simon Rivet from Metro, Diane Brisebois from the Retail Council of Canada, Gordon Stock from the Ontario Fruit and Vegetable Growers' Association, and Gary Sands from the Canadian Federation of Independent Grocers.
Mark Taylor, drawing on his experience with the U.K. code, said the Canadian code is voluntary and lacks enforcement tools like fines, which were key to the U.K. code's success after it moved from voluntary to mandatory. He argued the code will not directly lower prices but can foster certainty and investment, benefiting consumers indirectly, and noted that fees and penalties in commercial relationships drain resources from innovation.
Nick Henn confirmed Loblaw supports the code and intends to join once governance documents, especially the dispute resolution process, are finalized. He said the code will not affect price negotiations between suppliers and retailers, and that Loblaw has been preparing for implementation since the summer, operating as if the code were already in place.
Simon Rivet said Metro is committed to adopting the code once finalized and emphasized its voluntary, reciprocal nature applies to both suppliers and retailers. He stated the code is not designed to lower prices but to establish transparency and fairness, and he was optimistic that remaining issues on the dispute resolution mechanism would be resolved soon.
Diane Brisebois highlighted that the Retail Council of Canada has been involved in the code's development for over four years and that the dispute resolution process is nearly complete, with only wordsmithing left. She said the code is a work in progress and that retailers support the adjudicator's power to name and shame violators, which she described as a strong incentive for compliance.
Gordon Stock expressed cautious hope that the code will benefit fruit and vegetable growers, who face risks from perishable products and limited market options due to retail consolidation. He said the code is a starting point but needs continuous improvement, and he called for clearer roles for industry associations in raising systemic concerns, noting that intimidation may be difficult to address under the current framework.
Gary Sands, whose organization first called for a code, said the principles-based code is balanced and should be tested in the market rather than held hostage for perfection. He stressed the importance of fair supply for independent grocers, especially in rural areas, and said the dispute resolution process levels the playing field, though associations should not bring individual complaints.
The committee agreed to a motion allowing up to three associate members per party to access the digital binder until January 26, 2026. Members also discussed scheduling additional witnesses, including representatives from Costco, Walmart and Sobeys, as well as the adjudicator Karen Proud, for a future meeting to complete the study before drafting the report.
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