The Empire Company Ltd. parent of giant Canadian supermarket chain Sobeys is cooperating with  Food, Health and Consumer Products of Canada, the association representing packaged goods manufacturers to develop a Grocery Supply Code of Practice for Canada.

After decades of conflict between retailers and suppliers, both sides recognize the need for stabilization.  The draft code has been submitted to federal and provincial working groups.  The Code would require written agreements between retailers and suppliers, and makes provision for official mediation in the event of complaints or deviation from the Code.

Introduction of the Code was obviously stimulated by the problems encountered during the disruption of distribution due to COVID.  Contentious issues include unfair negotiating tactics, arbitrary fees, discrimination against smaller suppliers and farmers.

The Code would establish good-faith fair dealing between suppliers and retailers to promote transparency and establish an efficient mechanism to resolve disputes.

The initiative in Canada might well prompt a similar approach in the U.S. following statements by the National Grocers Association regarding anticompetitive behavior by big-box club stores and online grocery behemoths concerning supply and prices.