SASKTOON — Loblaw has announced its intention to sign on to the Grocery Sector Code of Conduct. |
Late last year the Loblaw executive chair, Galen Weston, said they were not prepared to sign, but that changed yesterday.
Federal agriculture minister Lawrence MacAulay made the announcement.
“The goal of the Grocery Sector Code of Conduct is to bring fairness, transparency, and predictability to our grocery sector and supply chain,” MacAulay said in a press release. “We believe that uniting all supply chain partners around these principles will produce the best outcomes for the sector and all Canadians. With the news that Loblaw is signing on, we now call on the remaining large retailers to do what is in the best interests of Canadians and follow suit.”
Last December Galen Weston told the standing agriculture committee the code as currently written would cause higher, not lower, prices. Work on the code over the intervening months appears to have proven fruitful.
“We have worked intensively and collaboratively with industry groups so that the Code is clearly drafted and fair for all industry participants,” said Per Bank, President and CEO, Loblaw Companies Limited in a press release. “We believe in the value of a code of conduct for the industry and are happy with the progress made. The Code now requires the participation of all major retailers and suppliers to help bring in a new era for Canada’s grocery industry, enhancing the relationship between retailers and suppliers, who both exist to best serve customers.”
Walmart Canada has yet to sign. Walmart Canada chief executive officer Gonzalo Gebera said the company has a history of lowering prices and wants to make sure it can continue to do so.
