The Canada Grocery Code is here – what does it mean for you?
The Canada Grocery Code is here – what does it mean for you?
With the Canada Grocery Code launching, businesses across the sector are wondering how they can prepare to embrace the Code. From collaboration to compliance, understanding the ins and outs of adoption is key to long-term strategy and success.
Whether you’re a national retailer, a regional distributor, a food manufacturer, or a start up food and beverage brand trying to scale, the Canada Grocery Code will shape how you operate, negotiate, and grow.
The Canada Grocery Code is an industry-led initiative designed to bring greater transparency, fairness, and predictability to grocery supply chains in Canada. Developed collaboratively by retailers, suppliers, and government stakeholders, the Code aims to address long-standing tensions in the industry and foster a more resilient and equitable food system.
While participation in the Code is voluntary, once a party opts in, full adherence is expected.
The Code is built around four core principles:
- Transparency and certainty
- Fair dealing across the value chain
- Timely dispute resolution
- Simplicity in implementation
It applies to all major players in the grocery ecosystem – from multinational retailers to small- and medium-sized suppliers – and introduces mechanisms for dispute resolution, contract clarity, and collaborative engagement. While enforcement doesn’t begin until 2026, the groundwork starts now.
Leveraging opportunities provided by the Code
From compliance to competitive advantage
While compliance with the Code is voluntary, it also presents a strategic opportunity. By aligning early with the principles of the Code, organizations can:
- Reduce costly disputes and contract ambiguities
- Build stronger, trust-based relationships with suppliers and/or retailers
- Position themselves as ethical leaders in a market increasingly driven by ESG and stakeholder expectations
Mid-market and emerging brands
The Code is a potential game-changer for smaller suppliers and emerging brands who have historically faced power imbalances in negotiations. With clearer rules and a commitment to fair dealing, your business can:
- Gain more equitable access to shelf space
- Negotiate with greater confidence and transparency
- Compete on product quality and innovation, not just bargaining power
Consulting firms can help you and your business navigate the new landscape and ensure you’re ready to seize these opportunities.
Four steps to help you get ready to adopt the Code
1. Conduct a gap assessment
Compare your current practices with expectations outlined by the Code. How do your business operations currently stack up to the Code’s best practices and what will it take to reach those standards?
2. Update contracts and policies
Ensure agreements reflect the Code’s principles. This goes beyond procedural updates; it signals a broader shift in how businesses engage with one another. For instance, the Code encourages a shift from transactional to collaborative relationships – a cultural change that calls for mutual respect, transparent communication, and a long-term partnership-oriented mindset.
3. Train teams
Educate procurement, sales, and legal teams on the new rules. Technology will also play a crucial role in enabling and sustaining compliance. Consider investing in software for managing contracts, monitoring supplier relationships, and tracking disputes, to support long-term compliance.
4. Establish governance and engage stakeholders
The Code isn’t just about your supply chains – it also informs governance and risk management. Set up internal processes for dispute resolution and compliance monitoring. Communicate changes to partners and suppliers. Ensure your stakeholders are briefed on the risks of non-compliance, its alignment with ESG priorities, and the reputational value of ethical leadership.
Now is the time to assess your readiness, engage your teams, and explore how the Code can support your long-term strategies. Whether you’re looking to reduce risk, strengthen supplier relationships, or lead with integrity, the Canada Grocery Code is your opportunity to do it better. The introduction of the Code will not only increase transparency, but domestic and international competition as well.
As identified in MNP’s Global Agri-Food Most Influential Nations Ranking Report, this increased competition supports to drive Canada’s overall success in food security, food innovation and other metrics, enabling us to compete on a global scale.
At MNP, our advisors can help you interpret the Code’s implications for your business, identify compliance gaps, and implement practical strategies that turn regulatory change into competitive advantage. Whatever your role in the industry, we’re here to help you lead with confidence in this new era of collaboration and accountability.
Contact your local MNP advisor to learn more.
Matt MacDonald , MBA
Insights
-
Confidence
June 12, 2025
Building boldly, staying true: How Margaret Coons grew Nuts For Cheese into a standout brand
Margaret Coons, founder and CEO shares how she scaled Nuts for Cheese from a farmers’ market stall to a nationally recognized brand, offering insights on growth, innovation, and building a values-driven business in the health food space.
-
Confidence
June 11, 2025
Future ready: Does your organizational design start with your technology and data infrastructure?
As digital transformation accelerates, it’s time for your business to rethink how it’s built from the ground up.
-
Confidence
June 11, 2025
Future-proof resilience: Be bold and agile
In a world of rising costs, tight labour markets, and digital threats, Canadian businesses can’t afford to stand still.
