Canada’s 2026 Grocery Code: What It Means for Consumers
Starting January 1, 2026, Canada will implement a new grocery code of conduct. This regulation aims to shape the relationship between retailers and suppliers. However, experts suggest that the changes may not dramatically alter the consumer shopping experience.
Overview of the Grocery Code of Conduct
The grocery code of conduct is a collaborative agreement among industry stakeholders. It establishes guidelines for how grocers interact with suppliers, outlining permissible requests and providing a framework for dispute resolution. This initiative was finalized by the Office of the Grocery Sector Code of Conduct in late 2025.
Key Contributors
- Mike von Massow: Economist at the University of Guelph, he highlights that changes will be mostly unseen by consumers.
- Karen Proud: President of the Grocery Sector Code of Conduct, she emphasizes the importance of broad participation.
- Eric La Flèche: CEO of Metro, which recently signed the agreement, expressing optimism for its future impact.
- Per Bank: CEO of Loblaw, who assured consumers it would not lead to higher prices.
Participation of Major Retailers
Several of Canada’s largest grocery chains, including Loblaw, Walmart, Costco, Metro, and Empire, have already endorsed this code. Their commitment began in July 2025, with Metro as the latest addition to the signatories.
Impact on Suppliers and Retailers
The code will influence how retailers manage costs related to their suppliers. For instance, during the pandemic, some retailers shifted costs for online services onto suppliers. This prompted discussions on fairness and transparency in billing.
Consumer Experience
As the new grocery code takes effect, experts predict minimal visible changes for shoppers. Mike von Massow asserts that consumers are unlikely to notice significant differences in their shopping experience at grocery stores. He stated, “This is going to be invisible to consumers.”
The larger implications could include variations in product availability and market responsiveness, but these are expected to be subtle.
Future Outlook
The overarching aim of the grocery code of conduct is to ensure fairness and stability within the food supply chain. Significant stakeholders are confident that it will not result in higher food prices. As stated by Loblaw’s CEO, “The code now is fair, and it will not lead to higher prices.” This sentiment has many believing that the impact of the code will be neutral when it comes to consumer costs.
With the governance framework now established, the focus is on extending participation across the grocery sector. This initiative could pave the way for a more equitable environment between the players in the grocery industry.
