Grocer code of conduct may help stabilize food prices: Kraft Heinz Canada head
A grocery code of conduct could stabilize food prices in the future and encourage more investment in the Canadian food industry, according to the president of Kraft Heinz Canada.
“It creates a better trade environment for both the supplier and the retailer, but I think at the end of the day, the consumer is winning,” said Simon Laroche in an interview with The Canadian Press.
Laroche thinks the code of conduct, which sets out guidelines for fair dealing between grocers and suppliers, could bring some stability to an industry emerging from a difficult four years marked by empty shelves, sticker shock and rising consumer frustration.
“(The code) helps big companies to have more confidence that they can do business long-term in a fair way.”
Progress on the nearly complete grocery code stalled last year as it became clear that some major grocers had reservations. Loblaw joined earlier this year after some changes to the proposed guidelines. This week, Walmart and Costco confirmed their support, which means all the country’s major grocers are now on board.
Laroche said he’s happy to hear the grocers are on board with the code, and believes it will be a positive thing for consumers and for the industry.
Canada might be still finalizing its code, but Laroche has already seen what it could do for a country with a concentrated grocery market. Before moving into his current role last year, Laroche spent several years leading Kraft Heinz’s business in Australia, New Zealand, Japan and Korea. Australia has had a code of conduct since 2015.
A code brings transparency and encourages fair negotiations between suppliers and retailers, said Laroche, adding that one of the most important benefits is a clear dispute resolution process.
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