When does the Canada grocery code of conduct start?

The Canada grocery code of conduct is set to take effect on January 1, 2026. It is a voluntary framework aimed at stabilizing prices by reducing commercial frictions between retailers and suppliers. The first real test will come in early 2026 reporting as companies disclose participation and compliance progress.

Will the Canada grocery code of conduct lower prices?

Experts expect stability, not immediate cuts. The code targets unpredictable fees and disputes that add volatility. It does not change commodity costs, transport, or weather risks. Shoppers may see fewer sudden hikes, while overall levels depend on broader cost pressures and competition in 2026.

How will it affect grocery supplier fees and relationships?

The code promotes clearer contracts, itemized charges, and reasonable notice periods. This should reduce surprise grocery supplier fees and improve planning for promotions and production. With fewer disputes and cleaner terms, both sides can focus on execution. Outcomes still depend on how consistently each banner applies the rules.

Could Ottawa make the code mandatory?

Yes. The framework starts as voluntary, but if large banners ignore rulings or compliance is weak, the federal government has indicated it could legislate a mandatory version. That policy risk matters for 2026 guidance, capital allocation, and how retailers and suppliers structure negotiations.

Global Market Insights

December 29: Canada Grocery Code Starts Jan 1, Aims to Stabilize Prices

ByHuzaifa Zahoor December 29, 2025December 29, 2025

The Canada grocery code of conduct takes effect on January 1, 2026, with one goal: steadier prices. The voluntary code targets unpredictable grocery supplier fees and conflicts that can push prices up without warning. Experts say it should stabilize, not immediately lower, bills. If major banners ignore decisions, Ottawa may step in and make it mandatory. For investors, 2026 will test how far this framework can reduce price volatility, reshape negotiations, and influence margins across Canada’s grocery and packaged food market.