Western Grocer Serving the industry since 1916
By Henry Chambers, SVP Sentinel Global Commercial Training.
With the announcement from the OGSCC (Office of the Grocery Sector Code of Conduct) this week confirming the Dispute Resolution Process (DRP) for the new Grocery Code of Conduct, the big question is, what happens now?
As with any global Grocery Code, there will be hurdles ahead, but this is the next major milestone for Canada.
The key question many are asking: will the four remaining retailers now sign?
Empire, and more recently Pattison, are already over the line with their signatures in place. In fact, all of the “Big Six” have verbally agreed to become members of the Grocery Code. However, as Karen Proud, the Grocery Code Adjudicator, rightly insists, verbal commitment is not enough. She requires all members to formally sign up.
Having trained nearly 100 vendors over the past year on the Code, we have seen some hesitancy from a few. Many have said, “If we sign before our retailers, it looks like we’re coming after our money.” Understandable, but let’s put that into perspective.
Have you ever watched National Geographic when a herd of antelope approaches a river? They all wait at the water’s edge, watching for the first one to cross, knowing full well that the first mover rarely makes it. But once that brave few step forward, the rest follow safely across.
It is not unlike what we are seeing now in the Canadian CPG industry. Everyone is waiting for someone else to move first, to sign up and say the “C” word: Code.
What we have learned from the UK, Australia, and New Zealand is that companies who adopt and apply the Code correctly, promoting collaboration, timely dispute resolution, fair dealing, and commercial certainty, will gain the benefits faster than those who do not.
One interesting curve ball here in Canada is that the Code is reciprocal, meaning it governs both retailers and vendors. When I spoke with the owner of a Vancouver C-store chain last week, he described a clear breach by one of his vendors. He raised it directly, so good for you. The Code cuts both ways.
So, back to the big question: will the remaining four retailers sign?
In reality, they do not have much choice. Speaking as someone who has sat in that retail seat, no one wants a trip to Ottawa to be publicly placed on the naughty step.
As the first few antelope cross this river and sign up, others will follow, and quickly. Of course, the next challenge, or “elephant,” will soon appear: How confident do I feel raising a breach on the Portal?
But let’s cross one river at a time.
Henry Chambers
SVP, Sentinel Training & Consultancy
Henry has worked across retail and CPG in the UK, Europe, the Middle East, and the US, and brings first-hand experience from markets already operating under a Grocery Code of Conduct.
Henry.Chambers@sentinelmc.com | www.Sentinelmc.com Cana
