Grocery Code Canada trends: opportunities for Quebec SMEs

The future Grocery Code of Conduct in Canada – often referred to as the Food Code of Conduct – is already transforming the dynamics between retailers and suppliers. For Quebec SMEs in the agri-food and retail sectors, these changes represent much more than a simple regulatory adjustment: they are a strategic opportunity to strengthen their bargaining power, optimize their margins and accelerate their digital transformation. In a context where food inflation has reached an average of 7.8% in 2023 according to Statistics Canada, and where over 70% of Canadians say they have changed their shopping habits to reduce their grocery bill, small and medium-sized businesses need to adapt quickly. This article presents the main trends in the Grocery Code in Canada, recent statistics that directly affect Quebec SMEs, and concrete ways to take advantage of these new rules by combining digital technologies, AI, CRM and e-commerce.

1. Understanding the Grocery Code Canada and its impact on SMEs

The Grocery Code of Conduct is a national initiative, developed since 2022-2023, aimed at framing commercial relations between major food retailers and their suppliers (producers, processors, distributors, local brands). The main objective: to establish greater transparency, predictability and fairness in the food supply chain, while protecting consumers from unfair practices that could drive up prices.

According to information published by the federal government and the main industry associations, the Code is aimed in particular at :

• To control unilateral fees imposed by major retailers on suppliers (e.g., for shelving, logistics penalties, or mandatory marketing programs).
• Clarify contractual terms, payment deadlines and dispute resolution procedures.
• Promote greater predictability in orders, promotions and supply plans.
• Improve collaboration to reduce food waste and optimize inventory.

For Quebec SMEs, this translates into several concrete impacts:

• Reduced power imbalance with large national retailers, thanks to clearer rules of the game.
• Better financial visibility thanks to more transparent contractual clauses and controlled payment terms.
• Opportunity to negotiate more balanced partnerships based on the Code and the good practices it promotes.

In a 2024 report on the food sector, Agriculture and Agri-Food Canada points out that food retail sales continue to grow, but margins are under pressure from transportation, labor and energy costs. This pressure is having a particular impact on SMEs. The Grocery Code therefore provides a more stable framework for planning digital investments: inventory automation, online sales, personalized marketing, and so on.

To take full advantage of this new context, however, SMEs need to be technologically ready. Having a modern CRM, analytics tools and a solid transactional site becomes a decisive competitive advantage for arguing, negotiating and delivering effectively in the retail ecosystem.

2. New consumer expectations and the digital transformation of the grocery business

The 2024-2025 trends in the Canadian grocery sector go far beyond the regulatory framework. Shopping behaviors are changing rapidly, and these changes reinforce the value of a Grocery Code that promotes transparency and collaboration. According to a 2024 Deloitte report on food retailing in Canada, over 55% of consumers regularly use digital channels (websites, apps, newsletters, social networks) to plan their grocery purchases, compare prices or spot promotions. What’s more, a NielsenIQ study indicates that the share of online grocery sales in Canada exceeded 6% in 2023, with double-digit annual growth.

For Quebec SMEs, this means that their products are no longer judged solely on the physical shelf, but also on their digital presence:

• Detailed, attractive, SEO-optimized product data sheets on retailers’ websites.
• Presence on their own online store or D2C (direct-to-consumer) platform.
• Transparent communication on ingredients, origin and commitments (local, organic, sustainable).

The Grocery Code, by encouraging better planning of promotions and more structured communication between retailers and suppliers, creates an ideal context for developing coherent digital campaigns. For example:

• Align flyer promotions with automated e-mail campaigns via your CRM.
• Synchronize inventory between your online store and retailers’ order forecasts.
• Use analytical tools to identify the best-performing products by region and customer segment.

Quebec consumers are also increasingly sensitive to the need to support local businesses. Data from various recent surveys (including those cited by the Retail Council of Canada) show that a majority of Canadians prefer to buy Canadian food products when the price remains reasonable, and that transparency on origin and supply chain strongly influences the purchasing decision.

By combining the opportunities created by the Grocery Code with a solid digital strategy – optimized website, professional online presence, marketing automation – a Quebec SME can not only negotiate better with major retailers, but also develop a direct-to-consumer sales channel to diversify its revenues and reduce its dependency.

3. AI, data and Grocery Code: strategic leverage for Quebec SMEs

New constraints and opportunities linked to the Grocery Code make data management even more crucial. Where large chains have full analytical teams, Quebec SMEs can now leverageartificial intelligence and accessible digital solutions to bridge the gap.

Several 2024-2025 trends deserve the attention of SME managers:

• AI-based demand forecasts: using sales histories, seasons, promotions and even weather data, AI models can help to more accurately predict required volumes. This helps to better meet retailers’ expectations of reliability, a key point in the implementation of the Grocery Code.
• Optimizing prices and promotions: AI can be used to test different pricing scenarios, promotional formats and product assortments to identify what generates the most margin and volume, while remaining competitive.
• Automate customer service and B2B support: intelligent chatbots, connected to your CRM, can answer questions from customers, distributors or even field representatives 24/7.

According to a recent McKinsey report on AI in retail, companies that deploy AI in their supply chain operations can improve forecasting accuracy by 10-20% and reduce out-of-stocks by 20-50%. Applied to the Grocery Code context, this means that SMEs capable of delivering reliably, with robust planning and supporting data, will be sought-after partners for retailers.

In concrete terms, a Québec SME can :

• Centralize sales and customer data in a well-structured CRM.
• Set up simple dashboards to monitor key indicators (sales per chain, margin per product, service rate, stock-outs).
• Use AI or advanced analytics tools to anticipate production needs and adapt negotiations with retailers.

The Grocery Code also encourages better documentation of agreements, logistics penalties and performance. With the right digital tools, you can :

• Justify your positions during negotiations (using factual data).
• Monitor service commitments (deadlines, volumes, compliance rates).
• Automate periodic reports for your retail partners.

The AI and digital transformation solutions offered by specialist agencies such as Nuaweb make it possible to structure this approach without burdening internal processes, or multiplying specialized hires.

4. Practical strategies for Quebec SMEs: preparing for the Grocery Code

To turn Grocery Code Canada trends into real opportunities, Quebec SMEs need to adopt a structured approach combining compliance, negotiation and digital transformation. Here’s a four-pronged action plan.

1. Diagnose your retailer relationships

• List your main partners (banners, wholesalers, distributors).
• Identify recurring fees, penalties, discounts and cooperative marketing programs.
• Identify recurring issues: payment delays, billing disputes, stock-outs.

2. Structure your data and internal processes

• Centralize all your customer and B2B interactions in a CRM tailored to SMEs.
• Set up a single product repository (product sheets, barcodes, nutritional data, formats).
• Standardize the way you record promotions, special agreements and negotiated conditions.

3. Strengthen your digital presence and direct sales

• Modernize your website to reflect the quality of your brand, your products and your commitments (local, sustainable, etc.).
• Consider an online store to sell directly or as a complement to retailers, in order to diversify your income.
• Implement a content strategy (recipes, tips, producer stories) to strengthen your brand and meet the demand for transparency encouraged by the Grocery Code.

4. Gradually integrate AI and automation

• Start with targeted projects: demand forecasting in a key segment, newsletter automation, customer support chatbot on your site.
• Quickly analyze the benefits (reduced breakage, better campaign performance, less administrative time).
• Then extend the use of AI to other areas: product recommendations, margin optimization, advanced customer segmentation.

At the same time, it’s a good idea to follow the official evolution of the Grocery Code and the positions of the major players through reliable sources such as Agriculture and Agri-Food Canada or the Retail Council of Canada. This will keep you up to date with deadlines, membership conditions and best practices currently being implemented.

SMEs that prepare themselves now – by professionalizing their digital tools, mastering their data and clarifying their processes – will be in a strong position when the Grocery Code is fully implemented and integrated into market habits.

Conclusion: turn Grocery Code into a competitive advantage with Nuaweb

The Grocery Code Canada comes at a time when Quebec SMEs are simultaneously facing a number of challenges: rising costs, pressure on retail prices, accelerated digital transformation and growing consumer expectations for greater transparency and local products. Rather than seeing this new framework as an additional constraint, it can be transformed into a competitive advantage.

By relying on a solid digital ecosystem – including a high-performance CRM, a professional website, an efficient online store andartificial intelligence solutions tailored to the realities of SMEs – you can :

• Negotiate better with major retailers thanks to solid data.
• Reduce the risk of breakages, penalties and waste.
• Increase your direct sales and strengthen your brand with Quebec consumers.

Nuaweb is already supporting Quebec companies in this transition, combining expertise in AI, web design, CRM, e-commerce and digital strategy. If you want to clarify how Grocery Code can become a growth lever for your SME, and which technologies to prioritize, we can help you build a concrete, realistic and profitable plan.

Ready to turn the new rules of the game into an opportunity? Schedule a free consultation with our team today by visiting the Nuaweb Contact page and find out how to make Grocery Code a gas pedal for your growth in Quebec and Canada.