Loblaw says Canadian grocery code of conduct will raise food prices even higher
Loblaw Companies Ltd. says it’s worried about the effects Canada’s oncoming grocery code of conduct will have on food prices.
In a letter to the steering committee creating the code and the industry subcommittee on November 1, obtained by The Canadian Press, Loblaw says it’s concerned the code could “raise food prices for Canadians by more than $1 billion.”
In the letter, Chief Financial Officer of Loblaw Richard Dufresne wrote that the grocery giant cannot endorse the code in its current form. He also requested a special meeting with the industry subcommittee to address the company’s concerns.
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In an email statement to Daily Hive, Catherine Thomas, the vice president of communication at Loblaw, echoed similar sentiments.
“We have ongoing concerns that the code, as currently drafted, will increase food prices for Canadians and impact grocersā ability to have the right products on store shelves to meet customersā demands,” she wrote.
“We remain actively engaged in an effort to improve the code so that it works to benefit everyone ā particularly customers.”
Loblaw’s letter says the code of conduct would make it harder for grocers to hold suppliers accountable, create a lack of certainty in the supplier-retailer dynamic, and put grocery prices, availability of products, and discount programs at risk, reportedĀ The Canadian Press.
Members of the steering committee have pushed back on the $1 billion cited by Loblaw.
“There is absolutely no evidence to suggest the code would either raise food prices or negatively impact retailers’ ability to meet consumer needs,” Michael Graydon, CEO of the Food, Health & Consumer Products of Canada Association and co-chair of the committee developing the code, told The Canadian Press.
For those who aren’t aware, the grocery code of conduct aims to enhance ātransparency, predictability and fair dealingā when it comes to the grocery business, according to the Canadian government.
In January, Daily Hive spoke with the feds and asked what the code would do for Canadian consumers.
Since then, the government has doubled down on its plan to stabilize grocery costs, including establishing a Grocery Task Force, a Grocery Code of Conduct, and introducing targeted legislative amendments to the Competition Act with Bill C-56.
Meanwhile, the outrage among Canadian shoppers continues.
Loblaw continues to be on the receiving end of this, most recently being reamed out for a ridiculously expensive holiday item.
Other grocers like Safeway and IGA are no stranger to the criticism surrounding the price of groceries.
The grocery code of conduct is almost finished, Graydon told The Canadian Press.
They plan to have the code implemented by the end of the first quarter of 2024.
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