Canada’s Grocery Code turns one: The framework is built – now comes the real test

Henry & Simon

As Canada’s Grocery Code approaches its first birthday, the industry can reflect on a year of meaningful progress — but the next chapter will determine whether the Code becomes a true catalyst for change.

The foundations are in place. According to the Office of the Grocery Sector Code of Conduct (OGSCC), almost 300 members have signed up; questions are being raised through the Code Portal; and guidance has been issued on important areas, including “click to accept” compliance clauses and unilateral changes.

The OGSCC team has also been actively engaging with members through Code on the Road workshops, individual meetings and conference presentations, while the Code Portal continues to evolve with developments such as open consultation pages and an Association portal.

Karen Proud and the new operating board deserve recognition for building momentum. The recent appointment of Cathy Loblaw as chair, replacing Michael Graydon, adds further experience and leadership at an important stage in the Code’s development.

Having spoken recently with Loblaw, it is clear she brings the passion and determination needed not only to support the Code, but to help turn its potential into practical outcomes.

Compared with the U.K. and Australia, Canada should be encouraged by how quickly the Code has gained traction. However, the real work is only beginning.

The Code was never intended to be a silver bullet for every challenge facing CPG contracts and negotiations. There is no white knight arriving to restore margins or remove the commercial pressures facing the industry.

The responsibility remains with businesses themselves.

What the Code provides is a framework — a common language and structure to support good faith, fair dealing and more balanced commercial conversations.

The opportunity now is for businesses to move beyond simply understanding the Code and start using it effectively. Reading the Code, or asking AI to summarize it, is easy. Building the confidence and capability to apply it in negotiations, reshape commercial conversations and make smarter investment decisions is where the real value lies.

The challenges facing Canadian CPG are not easing. Inflationary pressures, supply chain disruption and changing shopper expectations continue to create complexity, while consumers remain focused on affordability.

At Sentinel, our “5 R’s model” — Review, Recognize, React, Restore and Report — has resonated with delegates at our training workshops, and reflects the OGSCC’s recognition of the importance of training. Because ultimately, the Code creates opportunity. Capability turns that opportunity into results.

Source: Grocery Business
Image Courtesy of Grocery Business

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