Major retailers must sign grocery code of conduct, federal agriculture minister says
Federal Agriculture Minister Lawrence MacAulay wouldn't rule out the possibility of provincial or federal government intervention if the grocery code of conduct doesn't have every major retailer on board.
In an interview, MacAulay said Thursday he will meet next week with federal Industry Minister Francois-Philippe Champagne and provincial ministers to discuss options for both provincial and federal governments if the major grocers don't sign the code.
"Perhaps some changes have to be made," he said.
MacAulay and Quebec Agriculture Minister Andre Lamontagne have expressed their disappointment to see the grocery code of conduct has still not been launched after years of work, with some "supply chain partners" hesitant to sign on.
In a statement Thursday, the ministers said the major grocers need to adopt and adhere to the code, and said in the coming days, they will be "reviewing all possible options available to us."
"Two years of evaluating the situation would seem to me to be long enough," MacAulay said. "It's time to move on. Let's get the code signed."
At a House of Commons agriculture committee meeting in Ottawa on Thursday on stabilizing food prices, members of Parliament pressed Walmart Canada CEO Gonzalo Gebara and Loblaw chairman Galen Weston on why their companies have not yet signed the code.
Bloc Quebecois MP Yves Perron accused both companies of "sabotaging" the development of the code.
Gebara said his company has participated in the development of the code, but is "not in a position at this time to commit" to it.
In the current version of the code, "there's provisions that create bureaucracy and cost, cost that will inevitably end up on shelf prices," he said.
Weston said Loblaw will sign the code, but not in its current form.
In a Nov. 1 letter sent to members of both the steering committee developing the code and the industry subcommittee, Loblaw said it's worried the code could "raise food prices for Canadians by more than $1 billion," a figure Weston stood by on Thursday.
Weston told MPs on Thursday he's concerned the code will give too much power in negotiations to large multinational manufacturers. Many manufacturers, he said, are already "signalling or submitting higher than expected cost increases for next year."
"We were able to push back on 18 per cent of what we believed ... to be unjustified cost increases across the industry last year. Based on the way the code is drafted today, we will be severely restricted in terms of our ability to do that."
Michael Graydon, CEO of the Food, Health & Consumer Products of Canada association and chairman of the interim board of directors of the grocery code of conduct, said Thursday that the code is "fundamentally done."
He praised the statement from the ministers, calling it "much overdue."
Graydon said the working group responded to Loblaw with what he believes are "very strong responses as to why the provisions they want changed fundamentally can't be changed."
He said Loblaw's requested changes "would fundamentally neuter the code's ability" to improve how business is done in the grocery industry.
"They want to continue to have unilateral decision power. Well, that is fundamentally why we need a code."
Graydon, who was co-chair of the steering committee developing the code, said it's not yet clear whether Loblaw, Walmart or Costco will sign the code.
Costco did not respond to a request for comment.
Gary Sands, a member of the interim board and senior vice-president at the Canadian Federation of Independent Grocers, said the ministers' statement was a "good first step."
"I think it sends a clear message to everyone that there's an expectation on the part of governments that they want the entire industry to support this code," he said.
The grocers have also been under pressure from Ottawa to provide plans to stabilize food prices at their stores. The government summoned the heads of Loblaw, Metro, Empire, Walmart Canada and Costco to present their plans earlier this fall.
Weston told MPs that that meeting with Champagne resulted in "materially lower prices" for 35 often-purchased items and categories, like milk, butter, eggs and chicken.
"We're delivering these savings through the pricing and promotional programs that customers understand and respond best to. They are making a difference," he said.
Gebara said through periods of high inflation, Walmart continues to hold or lower prices where possible, sometimes absorbing or pushing back on cost increases from suppliers. He said the grocer has launched several programs that resulted in lower prices, such as offering Thanksgiving meals at lower prices than last year.
On Monday, Empire Co. Ltd. CEO Michael Medline said his company, which owns Sobeys, has expanded its annual November-to-January price freeze.
"We also have meaningful plans and development to help stabilize food prices past January, but will not discuss these publicly as they remained commercially and competitively sensitive until launched in our stores," Medline told the agriculture committee.
-- With files from Nojoud Al Mallees in Ottawa.
This report by The Canadian Press was first published Dec. 7, 2023.
IN DEPTH
![](https://www.ctvnews.ca/polopoly_fs/1.6922467.1718138898!/httpImage/image.jpg_gen/derivatives/landscape_800/image.jpg)
'Not the result we wanted': Trudeau responds after surprise Conservative byelection win in Liberal stronghold
Conservative candidate Don Stewart winning the closely-watched Toronto-St. Paul's federal byelection, and delivering a stunning upset to Justin Trudeau's candidate Leslie Church in the long-time Liberal riding, has sent political shockwaves through both parties.
'We will go with the majority': Liberals slammed by opposition over proposal to delay next election
The federal Liberal government learned Friday it might have to retreat on a proposal within its electoral reform legislation to delay the next vote by one week, after all opposition parties came out to say they can't support it.
Budget 2024 prioritizes housing while taxing highest earners, deficit projected at $39.8B
In an effort to level the playing field for young people, in the 2024 federal budget, the government is targeting Canada's highest earners with new taxes in order to help offset billions in new spending to enhance the country's housing supply and social supports.
'One of the greatest': Former prime minister Brian Mulroney commemorated at state funeral
Prominent Canadians, political leaders, and family members remembered former prime minister and Progressive Conservative titan Brian Mulroney as an ambitious and compassionate nation-builder at his state funeral on Saturday.
Supports for passengers, farmers, artists: 7 bills from MPs and Senators to watch in 2024
When parliamentarians return to Ottawa in a few weeks to kick off the 2024 sitting, there are a few bills from MPs and senators that will be worth keeping an eye on, from a 'gutted' proposal to offer a carbon tax break to farmers, to an initiative aimed at improving Canada's DNA data bank.
Opinion
![](https://www.ctvnews.ca/polopoly_fs/1.6850735.1713368648!/httpImage/image.jpg_gen/derivatives/landscape_800/image.jpg)
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
opinion Don Martin: The doctor Trudeau dumped has a prescription for better health care
Political columnist Don Martin sat down with former federal health minister Jane Philpott, who's on a crusade to help fix Canada's broken health care system, and who declined to take any shots at the prime minister who dumped her from caucus.
opinion Don Martin: Trudeau's seeking shelter from the housing storm he helped create
While Justin Trudeau's recent housing announcements are generally drawing praise from experts, political columnist Don Martin argues there shouldn’t be any standing ovations for a prime minister who helped caused the problem in the first place.
opinion Don Martin: Poilievre has the field to himself as he races across the country to big crowds
It came to pass on Thursday evening that the confidentially predictable failure of the Official Opposition non-confidence motion went down with 204 Liberal, BQ and NDP nays to 116 Conservative yeas. But forcing Canada into a federal election campaign was never the point.
opinion Don Martin: How a beer break may have doomed the carbon tax hike
When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.
CTVNews.ca Top Stories
![](https://www.ctvnews.ca/polopoly_fs/1.6958682.1720639670!/httpImage/image.jpg_gen/derivatives/landscape_800/image.jpg)
Canada to announce plan to reach NATO target, spend 2% of GDP on defence: sources
After facing months of pressure, senior government sources tell CTV News that Canada will unveil its plan on Thursday on how to reach its NATO commitment to spend two per cent of its GDP on defence.
Family of 3 killed in tragic collision on B.C. highway, RCMP say
A family of three was killed in a tragic head-on collision with a tractor trailer in B.C.'s Fraser Valley this week, authorities have confirmed. The deceased are two adults and an infant.
Frank Stronach's granddaughter seeks company docs related to misconduct allegations
The granddaughter of billionaire businessman Frank Stronach is asking an Ontario court to order the family business to disclose any documents that might exist related to complaints of sexual misconduct against him and settlements involving complainants.
England beats Netherlands 2-1 on late goal, reaches Euro Cup final
England reached a second straight European Championship final by beating the Netherlands 2-1 thanks to substitute Ollie Watkins' stoppage-time winner on Wednesday.
Man suspected of killing the family of BBC radio commentator has been found, British police say
British police said they found Wednesday the man suspected of killing the wife and two daughters of a well-known BBC radio commentator near London in a brutal crossbow attack.
WEATHER TRACKER Rainfall, heat, smoke advisories in place across Canada
Large parts of Ontario, Quebec and Atlantic Canada are under weather warnings forecasting significant rainfall due to the remnants of Hurricane Beryl, while people in western Canada are experiencing sweltering heat. Some areas are also under air quality advisories as a result of wildfire smoke.
His brother was found dead, his mother was arrested before this baby was found crawling by a highway
A Louisiana sheriff says a 1-year-old 'miracle baby' survived two days of sometimes stormy weather before a truck driver spotted him crawling along a roadside the day after his 4-year-old brother was found dead and his mother was arrested in Mississippi.
Does tipping encourage better service? Here's what experts say
Tipping is meant to empower customers and motivate workers to deliver quality service, but some question whether the prevalent practice actually enhances customers' experience.
Concern grows for missing Ontario woman
The search continues for a missing Brantford, Ont. woman who hasn’t been seen since she left her job on Friday.
Local Spotlight
![](https://www.ctvnews.ca/polopoly_fs/1.6958241.1720624905!/httpImage/image.jpeg_gen/derivatives/landscape_800/image.jpeg)
Little free Blockbuster set up in Winnipeg
One man is bringing a blast from the past to a Winnipeg community.
'Her whole future ahead of her': Sask. photographer captures Manitoba graduate posing on iceberg
Some say a photograph is simply a memory frozen in time – and a high school graduation photo taken in Churchill, Man. takes that adage to a completely new level.
'Tears come to my eyes': Track star and family granted extension to stay in Canada after deportation order
A rising track and field star overcame a big hurdle in his dream to represent Canada at the Olympics.
B.C. buyers who backed out of home purchase ordered to pay more than $350K in damages
Would-be homebuyers who backed out of a deal to purchase a B.C. property in a hot real estate market have been ordered to pay the seller the difference between what they offered and what he was able to sell the home for when the market cooled.
Look at this photograph: Ottawa city councillor meets his rock star idols Nickelback
Ottawa city councillor Tim Tierney has waited decades for the chance to meet his rock-star idols Nickelback.
'Incredible honour': Mick Jagger dines at famous Vancouver restaurant
A rock 'n' roll legend made an appearance at a popular Vancouver restaurant over the weekend.
Escaped inmate found south of Edmonton 1 month later
A convict who escaped an Edmonton correctional service more than a month ago has been caught.
Ottawa woman, 49, wins $70 million, plans to help community
An Ottawa woman, who has survived cancer and has overcome addiction, has won $70 million with Lotto Max.
Calgarians allowed to water by hand, some pools open as city eases outdoor restrictions
Calgary is easing outdoor water restrictions as the city continues work to help its water infrastructure recover following a major feeder main break.