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“We are listening and will continue to work with the industry on a level playing field for all businesses,” Ng’s spokesperson Eleanore Catenaro said in an email.
Food and Consumer Products Canada (FCPC), which represents suppliers, has for several years been the most vocal critic of supplier fees. It has also chastised Walmart’s proposed new fees for having “diabolical timing,” since manufacturers are still struggling with reduced capacity due to safety protocols related to the pandemic.
FCPC, which has long advocated for a grocery code of conduct, was one of the signatories of Wednesday’s letter, along with the Canadian Federation of Independent Grocers, Canadian Federation of Agriculture and Canadian Federation of Independent Business.
“Some of the companies behind this push are amongst the world’s largest,” said Littler at RCC. “Go on the FCPC site and look at their membership. It’s Coca-Cola, it’s Nestlé, it’s Kraft-Heinz, it’s Johnson & Johnson.”
Littler also said supermarkets have operated on thinner margins than growers and food processors, citing 2018 Statistics Canada data that showed margins of 4.4 per cent for wholesale food sellers and 1.6 per cent for supermarkets.
“It’s not surprising that the food processors would like higher profits,” he said, “but it’s not something that we view the government should put its thumb on the scale on behalf of one party in this commercial negotiation.”
FCPC responded on Friday, stressing the code of conduct it is proposing is based on a model used in the United Kingdom, which would specifically address “unfair punitive behaviour” such as significant fines for minor delivery shortfalls, not “costing-related” negotiations between suppliers and grocers.
The move is “aimed at protecting our domestic food production and Canadian jobs,” FCPC spokesperson Anthony Fuchs said in an email. “If left unchecked, we will be faced with an environment in which we have shiny new retail stores but crippled manufacturing in Canada.”
Financial Post
