European grocery chain Carrefour has taken a stand against rising grocery prices by delisting PepsiCo products from thousands of its stores [Vox.com]. Carrefour cited 'unacceptable price increases' as the reason for dropping some of Pepsi's products from over 9,000 store shelves in several European countries [Vox.com]. This move comes as grocery prices in the US have risen by 25% since 2019 [Vox.com]. While US grocery chains have not publicly boycotted brands over prices, experts suggest that major political pressure could mobilize retailers to take a similar stand [Vox.com]. The US grocery market is more concentrated than Europe's, with Walmart holding about a quarter of the market share [Vox.com]. The high concentration of the grocery industry in the US, along with the practice of slotting fees, contributes to higher prices for consumers [Vox.com].
Food companies have been quick to pass on rising input costs to consumers but have been slow to lower prices despite falling costs [Vox.com]. This has led to dissatisfaction among consumers, with grocery prices in the US rising by 25% since 2019 [Vox.com]. In response to this, the US has focused on antitrust enforcement and competition to lower prices in the long term [Vox.com]. However, dismantling food monopolies and increasing food stamp benefits are suggested as ways to address high grocery prices [Vox.com].
Progress on a Canadian grocery code of conduct has stalled as two major retailers, Loblaw and Walmart, refused to sign it, claiming it would raise prices [CityNews Toronto]. The code is intended to set rules for fair dealing in negotiations between retailers and suppliers [CityNews Toronto]. Politicians and others have pushed back on claims the code could raise prices, saying similar codes in the United Kingdom and Australia had a stabilizing effect [CityNews Toronto]. The U.K. has had a mandatory grocery code since 2010, which applies to the country's 14 biggest retailers selling groceries [CityNews Toronto]. Australia's grocery code, introduced in 2015, is voluntary but becomes legally binding once signed [CityNews Toronto]. Comparing food inflation data from Canada, the U.K., and Australia before and after the implementation of grocery codes does not provide a conclusive picture of the impact on prices [CityNews Toronto]. Canada's grocery code differs from the U.K. and Australian models as it is meant to cover both suppliers and retailers [CityNews Toronto]. The voluntary Canadian code requires the participation of all major players to be effective, and if they do not sign on, the committee may recommend that the code be enshrined in law [CityNews Toronto]. Australia's code may also become mandatory based on a government-commissioned report [CityNews Toronto]. The codes in the U.K. and Australia have led to improvements in treatment by retailers and have had some impact on stabilizing food inflation [CityNews Toronto].
In Australia, the government has announced that supermarket chains earning more than 5 billion Australian dollars ($3.3bn) in annual revenue will be required to comply with a previously voluntary industry code of conduct [Al Jazeera]. This move comes after a report found that the previous code failed to address the 'imbalance of bargaining power' between supermarkets and their suppliers [Al Jazeera]. The changes will cover Woolworths, Coles, Aldi, and Metcash, which together make up more than 80 percent of the market, and could expand to retailers such as Costco as their revenues grow [Al Jazeera]. Breaches of the code will be subject to fines of up to 10 percent of annual turnover, leaving retailers liable to pay billions of dollars in penalties [Al Jazeera]. The government will also establish an anonymous supplier and whistleblower complaints mechanism within the Australian Competition and Consumer Commission [Al Jazeera]. Woolworths and Coles, the largest and second-largest players, together account for about two-thirds of all sales [Al Jazeera].