“Now that the five major retailers are joining in, it’s good news for the entire supply chain,” he said.
MacAulay said he believed the code would bring more transparency, fairness and predictability to the food industry, but noted that it was not intended to lower food prices.
When the code was nearly complete last fall, progress appeared to be in jeopardy. Representatives from Loblaw and Walmart told lawmakers they feared the code would result in higher retail prices.
This led to increasing calls for the code to be made mandatory. The House of Commons committee investigating food prices told Loblaw and Walmart in February that in the event that they didn’t sign the code, it might recommend that the code be enshrined in law. MacAulay had said he was looking into this selection.
In May, Loblaw said it might conform to the code if other industry players did so, saying the concerns had been addressed by changes to the document.
“The current code is fair and will not lead to higher prices,” said President and CEO Per Bank on the time.
Following Loblaw’s announcement, attention turned to Walmart and Costco.
Walmart Canada is able to support the present, more balanced version of the code, spokeswoman Stephanie Fusco said in an email. However, vital discussions about corporate governance and dispute resolution still have to be had, she added.
