Northern grocers silent on signing onto code of conduct

Industry-led initiative meant to create fairness in pricing between grocery retailers and suppliers

The Northern store’s parent company, North West Company, said it is reviewing the proposal for a grocery code of conduct being developed by industry leaders in the south. (File photo)

By Jorge Antunes

Northern grocery store chains were quiet this week after a national grocery code of conduct moved one step closer to reality last week.

“The North West Company has reviewed the grocery code of conduct, and will have more to say on our intent in the coming days,” said Darryl Martin, spokesperson for the North West Co., the parent company of Northmart and Northern stores.

On July 18, the federal, provincial and territorial governments announced $1.2 million in one-time funding toward the development of an industry-led organization to promote predictable pricing, transparency and fair negotiations between suppliers and grocers.

That organization would operate separately from government and be self-regulating.

All five major Canadian grocers — Loblaws, Costco, Walmart, Sobeys and Metro — have committed to supporting the code.

Industry representatives created an interim board of directors who say some regional and local independent grocers have also signed on.

But it is unclear whether northern grocers were consulted, or have any intention to sign onto the code of conduct, despite the fact that the code could apply to all grocery retailers in Canada, according to Michael Graydon, chairperson of the Interim Board for the Grocery Sector Code of Conduct, in an email on Tuesday.

“As it is a voluntary code it will be their decision regarding participation,” he said, adding serious efforts to recruit members beyond the five major retailers has not commenced.

“We anticipate that education and recruitment efforts will take place once the Office of the Grocery Sector Code of Conduct is established and an adjudicator is hired,” Graydon said.

Nunatsiaq News reached out to other northern grocery stores for comment. 

Arctic Co-operatives Ltd., needs more time to research the initiative before it will provide comment, said Duane Wilson, the company’s vice-president of stakeholder relations.

La Fédération des coopératives du Nouveau-Québec, which operates stores in Nunavik, could not be reached for comment on the code of conduct.

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(30) Comments:

  1. Posted by Karl on

    Still boggles my mind how the nutrition north program is set up and managed using so many millions per year and the feds don’t really know in clarity the cost of goods sold by the northwest company, it’s no wonder this company has been making record profits since the start of the nutrition North program was started.
    This company has made so much money off these communities, one of the poorest people.
    Able to start discount stores in southern Canada Giant tiger, same items at the fraction of the cost.

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    • Posted by Kenn Harper on

      North West Company made lots of profit well before Nutrition North was created. And North West Company only owns 5 Giant Tiger stores, in western Canada. Giant Tiger has been around for a long time.

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      • Posted by Karl on

        I have to disagree with you to some degree, yes the northwest company made profits before the nutrition north program but once this program started that’s when this company started reaching new heights with their profits, started expanding their giant tiger stores across southern Canada.
        I this program is severely flawed and a huge waste for tax payers, it would make more sense for the federal government to look at the cost of shipping and subsidies that to lower the cost of food, not how it works today where northwest company can say how much the product cost whatever the mark up is and then say you are saving ten cents on that product after a huge mark up. The government doesn’t really know how much it really cost and they just go with what the stores say. Not very practical, efficient or accurate.
        It would make more sense for the federal government to put this program into subsidizing the cost of shipping similar to the food mail program.

      • Posted by Paul on

        No Ken, northwest company made some profits and had some down years before this nutrition North program started, in the first year of this program northwest company made a 20 million plus profit and they have never looked back, record profits thanks to this program all the while the people are getting screwed over with so called savings from marked up prices.

  2. Posted by Of Course they remain Silent on

    Of course the Northern Retailers remain silent. If they agreed to participate in the Grocery Code of Conduct they would have to be transparent on their pricing schemes. They would have to show how green grapes which are a Nutrition North Category 1 item are more then 100% greater in price here in the North then they are in Ottawa. Or Cherries which the same could be said. Oh yeah, nutrition north…if they participated in the grocery code of conduct they would have to finally explain how they are not passing nutrition north savings onto their customers. Gosh this would even force them to show how they charge a 40% base profit margin not only on the cost of goods, but also on freight charges, meaning people are being hit with freight charges twice as hard. Signing on to the grocery code of conduct would also show how they fill their stores with Manitoba product instead of searching for other better priced and home grown product when it is available. Did I mention I am a bit cynical towards our Northern Grocery Stores. They are enjoying millions and millions of dollars in profit while Northerners suffer, and suffer some more.

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    • Posted by Dave on

      Why do you think they will have to be transparent on pricing? I have read nothing close to that. No way is Loblaws, Sobeys etc agreeing to make their cost of goods sold public. Just no way!!!

      Remember, this is 100% voluntary. No business is volunteering to do that.

      Transparency in the Code or Conduct has more to do with fees charged for shelf space. Deals with wholesalers to block out another retailer. They will not be opening their books to the public.

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      • Posted by Of course they remain silent on

        You bring up a good point. I have not seen the actual code. I am simply hoping for the best. I would like to share a quote with you directly from the interim board of directors (which still has a lot of work to do to become meaningful), put in place to Sheppard the new code:

        “Securing Canada’s essential food and grocery supply chains has never been more important. That’s why Canada needs a Grocery Code of Conduct — to promote predictability, transparency, and fair dealing as ingredients and products make their way from suppliers to stores to Canadians’ homes.”

        They use the word “transparency” and my hope that it is full transparency between suppliers, cost, and margin. But you are right. Who knows?

        • Posted by Dave on

          Well my friend, I have a quote you likely don’t want to hear. This was just released today.

          https://www.just-food.com/features/explainer/explainer-canadas-incoming-grocery-code-of-conduct/?cf-view

          What will the code mean for consumers?

          The code was not written with the goal of lowering prices for consumers at the grocery store, which Charlebois notes is an “unrealistic expectation” anyway.

          Mike Von Massow, a food economist at the University of Guelph, told Canadian publication CBC that the code could ultimately drive prices up, if it means putting limits on the concessions that grocers can demand from their suppliers.

          “It’s hard to see as an economist how taking money away from the big grocers will then also lead to lower prices,” he said.

          • Posted by Dave on

            I should have added:

            IMO, this Code of Conduct has been framed in a very misleading manner. Unless you do some digging, you are left to assume this is designed to help the consumer. I blame the Federal government. There is a lot of pressure on the Feds to do “something”, when in reality there is nothing they can do. So, this is there “something”, but it is all smoke and mirrors.

            I’ll add, there is a section on treating employees more fairly….. that won’t lower prices either.

            • Posted by Of course they remain silent on

              Well I am sad to read this, but not that surprised either. Grocery stores are for profit businesses, but perhaps there should be a limit on how much profit they make on the backs of Canadian citizens. Thank you for continuing to dig in.

              I think more stories about grocery store profits, and more realization that that money is leaving the territory to a large degree would be beneficial. As well more efforts to protest food prices, and nutrition north as a program would continue to shine a light on the issues faced by so many in the North, and really more and more across Canada.

              It is hard to get a protest going here, it is not the traditional way of doing things. Maybe I will have to just accept that letters to the federal ministers and to nutrition north is all I can do. It just does not make sense, and it is not getting any better.

              Thank you for your insight and todays news. I appreciate learning what I can. Nakurmiik.

    • Posted by John WP Murphy on

      Do you have a copy of the code of conduct that you seem to be quoting? I would like to see one.

  3. Posted by Ian on

    The real culprits Canadian North/calmair should be the ones signing this code of conduct, with their monopoly on cargo rates, and big increases in their rates when Jordan’s principle came out, and don’t forget Northstar air Northerns own airline should also sign, 90 percent of these airlines revenue is GN and federal payments.corporate welfare.

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    • Posted by Confused on

      Isn’t it the carbon tax that raised pricing on everything?
      But still the airlines are now charging by cubic ft for no reason just made freight really unaffordable, My two up ATV freight cost was $7300.00, thankfully KIA was kind enough to pay most of it.

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    • Posted by Ginger Root on

      Don’t forgot about all the Canadian North Cargo that goes “missing”!!
      It’s such a big problem in the east, and I’ve heard stories about Yellowknife Cargo problems dates back years! So we have the Northern Stores stealing from us with their crazy prices and Canadian North Stealing from us in tickets and cargo, one would think, can I call the cops for these over priced apples, and my two bottles are still missing from two months ago.

  4. Posted by Oscar on

    They may sign reluctantly, but I bet they won’t adhere to the Code of Conduct. Knowing Northwest Company and others, it’s just for them to SAFE FACE and try and be good corporate businesses. The same goes for the airlines

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  5. Posted by Dave on

    There is absolutely nothing in the Code of Conduct that will lower grocery prices anywhere. It’s a big smokescreen.

    Seems to have far more to do with how large grocery stores deal with wholesalers and farmers than consumers.

    In my mind, being more ethical will raise prices, not lower them.

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  6. Posted by John WP Murphy on

    Lest we forget the carbon tax increase passed by our NDP/Liberal coalition (including Lori Idlout) government.

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  7. Posted by Tooma on

    Be careful what you buy where you buy it and be careful what you put in your body. Some business has been monitored by food inspectors. Some businesses even their smell is disgusting. How can they put food in their body buying food from those kind of businesses. Disgusting

  8. Posted by Duh! on

    They are not remaining silent.

    They’re letting their pricing do their speaking for them.

  9. Posted by MICHAEL on

    Nutrition north is a scam for the liberal governement and vendors to stay in north, also then the feds dont have to worry about food etc… they pay these store top dollar even before shipping anything north.

    at LEAST WITH THE OLD MAIL program , you the customer got to see actual savings.

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    • Posted by It was the conservatives on

      Let’s not forget who created Nutrition North and abolished the food mail program – Stephen Harper’s CONSERVATIVE government.

      • Posted by Dave on

        You’re right, and being an old fella, I remember it.

        Nutrition North was overwhelmingly supported and local residents hated food mail. The major complaint I remember was Canada Post and First Air, both had monopolies and people (I think wrongly) blamed the shipping monopoly for high prices.

        Harper didn’t force this on anyone, he was doing what the vast majority wanted and demanded. People believed breaking the monopoly would lower overall shipping costs for food and all other goods. People believed First Air was cheating the Federal government with this program.

        IMO, people have always seen shipping cost as the only problem, when in reality: capital costs, labour costs, utilities, insurance, spoilage and shrinkage costs are all astronomical compared to the south.

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        • Posted by Matt on

          What I remember was the Harper government said the food mail program was too expensive and that they are cutting it and replacing it with the nutrition north program that was to be cheaper and only for food that is healthy for us.
          Fast forward to today, it has ballooned to being way lot more expensive than what the food mail has ever been, with less options.
          What the government has successfully done is to keep the cost of food high while the retailers earn more profits.

          • Posted by Dave on

            Untrue.

            You needed a credit card to access food mail and few locals had one in those days. Prepaid credit cards didn’t exist yet.

            That was the real problem that Harper had to deal with.

  10. Posted by frankly on

    Northmart rules ! co-ops are not far behind. we will be a third world nation in the richest territory in the world ! us poor Inuit have to accept it as always….

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  11. Posted by Dave on

    OK, I am confused??

    Can you explain the “richest territory in the world” ? I don’t really get that at all.

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    • Posted by flabbergasted on

      Northwest Company make their territory and known in all of Nunavut ! their made to be the richest company in all of the north by us Inuit consumers ! a monopoly of conglomerates along with the airline of the north ! never mind their own cargo plane . Co-ops not far behind but reasonable yet as they give you back a percentage of all purchases as a dividend ! if Northmart did the same …they would have been more forgiving.

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  12. Posted by Qavvigarjuk on

    Anything that is not enforcable is useless and will change nothing

  13. Posted by eskimo joe on

    How is the transportation cost a factor to high prices? Fuel is cheaper to airlines who fill up in the northern hubs. Aviation gas is fixed on yearly basis by tanker and locked. So basically its greed that retailers cite as shipping cost. Last time I tried buying something locally, it was marked up over by 125% I saved over 16K by research and buying direct MB.

  14. Posted by Tofino Justin on

    What about a code of conduct for how much of our income should go to taxes, and where that money is spent? But ya, it’s the grocer’s fault that our standard of living is in decline. Deflect and blame.

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