Empire, Lactalis Canada become first to officially sign on to grocery code of conduct

Sobeys parent company Empire Co. Ltd. has officially signed on as the first retailer member of Canada’s new grocery code of conduct, as work continues to develop governance rules for members ahead of a full implementation by Jan. 1.

The Office of the Grocery Sector Code of Conduct says dairy product-maker Lactalis Canada has also signed on as the first supplier member of the code.

The grocery code is intended to promote fair dealings between grocers and their suppliers including the application of penalties and fees, in an effort to bring more transparency, fairness and predictability to the industry.

All of Canada’s major grocers — Empire, Loblaw, Metro, Walmart Canada and Costco — had confirmed their support for the voluntary code as of July 2024, however this week marks the opening for formal registrations.

There had initially been hesitation from some of the grocers about signing on, but the federal government warned it could make the code mandatory if all the major players didn’t get on board.

The office’s president and adjudicator Karen Proud says formal recruitment efforts are expected to begin this fall after the completion of the code’s final governance documents, such as its bylaws, operating rules and formal dispute resolution mechanism.

This report by The Canadian Press was first published July 2, 2025.