Will the grocery code of conduct work? Expert says time will tell

Senior Director of Agri-Food Analytics Lab, Sylvain Charlebois, explains how Canada's new grocery code of conduct could affect grocery prices going forward.

The grocery code of conduct began rolling out Thursday, but one expert warns shoppers should not expect immediate changes when paying for groceries in the coming days and weeks.

The voluntary grocery code for grocers, suppliers, wholesalers and primary producers is meant to promote fair trade between grocers and their suppliers and includes penalties and fees.

It was introduced to encourage greater clarity, predictability and fairness in the industry, and will include trade rule provisions, a governance model and an adjudication and dispute-resolution process.

The code is governed by the Office of the Grocery Sector Code of Conduct. Grocers, suppliers and other members will now be able to submit formal complaints. The office will also start collecting annual membership dues.

Dr. Sylvain Charlebois, senior director of the Agri-Food Analytics Lab at Dalhousie University, told CTV News Channel on Wednesday that grocery shoppers shouldn’t anticipate food prices dropping any time soon.

“We’re not expecting food prices to drop, we’re expecting food inflation to stabilize over time,” he said. “That will bring more competition, more choices to consumers over time, and when you hear about more competition, typically, you see prices being more stable, and in some cases, you could see prices drop over time.”

He explained that different drafts of the code have changed over time, and the current version – the 11^th draft– is very different, and less powerful and influential, than the initial draft.

“I do think that time will tell, and we’ll see whether or not grocers are willing to listen to the arbitrator when dealing with vendors,” Charlebois said. “So 2026 will be a really critical year.”

He said a functioning code will eventually help consumers and make the food industry much stronger and more competitive. He also suspects the code will go from being voluntary to mandatory if it doesn’t work.

As for when that could be assessed, Charlebois said to give it about six months.

“If you see more choices, products you’ve never seen before, if you have food inflation rate dropping, say, below 2.5 per cent - right now, it’s at 4.7 per cent - those are signs you’re looking for,” he said.

“If you’re seeing fewer choices, and if the food inflation rate is continuing to increase, those are red flags.”

With files from the Canadian Press