There are a number of ways that retailers can enforce, place or shift their risk for innovation, development and capital plans to the supplier, and ultimately the primary producer—everything from short payment of invoices to penalties on fulfillment.
Right now order-in quantities on certain SKUs and categories are very erratic, and ordering systems are automated at the retail level; therefore, all of those algorithms that run those ordering systems are based on pre-pandemic levels. Ultimately, the supplier is penalized for the order quantity that has been ordered through those systems that haven't been adjusted for the current crisis. Another way is asking suppliers to disclose trade secrets in order to fund prices and promotions that are out of the suppliers' control.
Suppliers are very nervous about speaking up about these issues because they face the threat of the delisting of their product. There is no other way to get their product to consumers in Canada except for two selling channels, retail and food service. We know that food service is in a very, very hard way right now. Retail has become, effectively, one of the only selling channels in Canada. It's very concerning when a retailer has the power to delist a product.