Loblaw Companies Ltd. Commits to Signing Grocery Code of Conduct Alongside Industry Players

Loblaw Companies Ltd., a major player in Canada‘s retail industry, has confirmed its intention to sign the Grocery Code of Conduct. This significant decision comes after constructive discussions with industry stakeholders, with Loblaw’s President and CEO, Per Bank, expressing support for the Code during the Company’s Supplier Summit.

The Grocery Code of Conduct, a voluntary initiative, aims to establish fair and transparent practices within the Canadian grocery sector. Loblaw’s commitment to signing the Code marks a pivotal moment in ensuring harmonious relationships between retailers and suppliers in the industry.

Initiated by Federal-Provincial and Territorial Ministers of Agriculture, the Code’s development has been a collaborative effort involving various organizations, including retailers, processors, and manufacturers, to ensure comprehensive support throughout the supply chain.

Michael Graydon, Chair of the Code’s Interim Board, expressed satisfaction with Loblaw’s decision, highlighting the importance of industry-wide participation to drive positive change in the grocery sector.

While Loblaw is on board, Walmart Canada‘s stance on signing the Code remains a key consideration. The ongoing discussions aim to secure the participation of all major industry players, with Costco also being urged to join the initiative.

Gary Sands, representing the Canadian Federation of Independent Grocers, emphasized the potential benefits of the Code in enhancing transparency and dispute resolution mechanisms within the industry.

The announcement from Loblaw coincides with growing concerns over food inflation, partly influenced by global events such as the conflict in Ukraine. Loblaw’s commitment to the Code reflects a broader industry response to address pricing issues and ensure fair practices.

Government officials, including Lawrence MacAulay and André Lamontagne, have encouraged all large retailers to support the Code, emphasizing the benefits of uniting supply chain partners for the sector’s overall success.

Loblaw’s decision to sign the Grocery Code of Conduct underscores a collaborative effort towards fostering transparency and fairness in Canada’s grocery industry.