TORONTO — Canada’s new grocery code of conduct officially begins rolling out Jan. 1, but consumers should not expect to see lower food prices in the short term, according to a leading food policy expert.
The voluntary code applies to grocers, suppliers, wholesalers and primary producers, and is designed to promote fairer trading relationships across the grocery sector. It introduces clearer rules around fees and penalties, along with a governance framework and a formal process for adjudication and dispute resolution.
The code will be overseen by the Office of the Grocery Sector Code of Conduct, which will allow participating organizations to submit formal complaints and will begin collecting annual membership dues from industry members.
Sylvain Charlebois, senior director of the Agri-Food Analytics Lab at Dalhousie University, said the initiative is not meant to deliver quick relief at the checkout.
“We’re not expecting food prices to drop; we’re expecting food inflation to stabilize over time,” Charlebois said in an interview on CTV News Channel. “That will bring more competition and more choices to consumers. When you hear about more competition, typically you see prices become more stable — and in some cases, prices may drop over time.”
Charlebois noted that the grocery code has gone through multiple revisions and is now in its 11th draft. He said the current version is significantly different — and less influential — than earlier proposals.
“I do think that time will tell, and we’ll see whether or not grocers are willing to listen to the arbitrator when dealing with vendors,” he said, adding that 2026 will be a crucial year in determining the code’s effectiveness.
If the code functions as intended, Charlebois said it could ultimately benefit consumers by strengthening competition and improving the overall resilience of the food industry. However, he cautioned that if the voluntary approach fails, the federal government may move to make the code mandatory.
As for how quickly its impact can be measured, Charlebois suggested a six-month window.
“If you see more choices — products you’ve never seen before — and if food inflation drops below about 2.5 per cent, those are the signs you’re looking for,” he said. Food inflation currently sits at about 4.7 per cent.
On the other hand, he added, warning signs would include fewer product choices on shelves and a continued rise in food inflation.
“If you’re seeing fewer choices and food inflation keeps increasing,” Charlebois said, “those are red flags.”