Grocery code of conduct won’t drive prices higher: Sobeys [Video]

TORONTO –

There’s no evidence that a grocery code of conduct would raise food prices for Canadians, said Empire Co. Ltd. chief executive Michael Medline.

He told an audience at a Retail Council of Canada event in Toronto on Tuesday that he wouldn’t support a grocery code of conduct for his industry if he thought it would raise food prices.

Medline, who was the first grocery executive to speak out in favour of a code, said he hopes the grocery code could lead to lower food prices in the future, but added it’s not a panacea “for all the issues that drive up prices.”

Last fall, Loblaw and Walmart said they wouldn’t sign on to the code as currently drafted, stalling progress as the agreement neared completion.

Proponents of the code say it will help level the playing field for suppliers and smaller grocery retailers by introducing rules for negotiations between industry …