Canada’s voluntary grocery code of conduct will become fully operational on Thursday, marking a major step in regulating relationships between grocers, suppliers, wholesalers and primary producers.
Designed to encourage fair dealing across the grocery supply chain, the code aims to bring greater transparency, consistency and predictability to industry practices, particularly around fees, penalties and contractual terms. Oversight of the framework falls under the Office of the Grocery Sector Code of Conduct, which is responsible for governance, trade rules and dispute resolution.
Although the code has been introduced in phases, Jan. 1 marks the point at which all components — including its formal complaint and adjudication process — come into force. From that date, industry participants will be able to submit complaints, and the office will begin collecting annual membership dues.
Beginning in 2026, the office is also expected to publish an annual report outlining sector-wide trends, systemic challenges and recommended improvements, according to the Canada Grocery Code.
The push to develop the code began after long-standing concerns over fees imposed by large grocery retailers on suppliers, an issue that escalated in 2020. Public scrutiny of the grocery sector intensified further during the COVID-19 pandemic as food prices surged, turning the voluntary code into a politically sensitive issue. While the code is not intended to reduce grocery prices directly, its rollout became closely tied to broader affordability debates.
Some retailers were initially reluctant to sign on, prompting the federal government to warn that it could make the code mandatory if major players failed to participate. Canada’s five largest grocers — Empire, Loblaw, Metro, Walmart Canada and Costco Canada — have since formally registered.
Former Empire CEO Michael Medline was among the first senior industry figures to publicly advocate for a grocery code, arguing it could help level the playing field for suppliers and retailers alike. While he cautioned that the code would not solve all industry challenges, he suggested it could contribute to lower prices, shorter supply chains and greater consumer choice over time.
The code does not regulate food prices, control shelf space or restrict commercial negotiations, focusing instead on conduct and fairness. Though new to Canada, similar grocery codes already operate in countries such as the United Kingdom and Australia.
