Agriculture Committee on Nov. 20th, 2025

[Rhonda Maines-Corrado]

Walmart is investing $6.5 billion in Canada as part of our growth.

[Dave Epp, Conservative, Chatham-Kent—Leamington, ON]

Would that come up in your discussions with vendors?

[Rhonda Maines-Corrado]

To the extent that there are any fees, they're all designed and implemented in a way that is fair and transparent. There would be reasonable notice, and any fees would be part of an ongoing commercial negotiation with our suppliers.

[Dave Epp, Conservative, Chatham-Kent—Leamington, ON]

I'll dig down just a little further, then. From a practices' perspective, on the development of the code, have you found it advantageous, at Walmart, to both maintain your commitment to keeping prices low for consumers and increase transparency and fairness with your relationships with vendors?

[Rhonda Maines-Corrado]

Again, I don't believe the code goes to pricing. Relationships and the principles of fairness and transparency that are key to the code are likewise key to our core values as a company and therefore are very much complementary.

[Dave Epp, Conservative, Chatham-Kent—Leamington, ON]

Great. Thank you.

You did mention, in response to my earlier question, that you were not aware of any change in the timing of Walmart's annual cycle. I will ask you to go back and check that with your colleagues, because I believe your position is general counsel. Could you table a response with the committee if you become aware that Walmart has changed its timing with vendors and their applications?

Please do not misconstrue my comments as any kind of negative feedback on the development of this code. I fully support the code, and I look forward to its implementation from all parties throughout the whole value chain.

Thank you, Mr. Chair.

[The Chair, Liberal, Michael Coteau]

We'll go to Mr. Connors next. You have five minutes.

[Paul Connors, Liberal, Avalon, NL]

Thank you. Thank you, everyone, for coming out today.

I'm going to start with our representative from Sobeys. We had the Canadian Federation of Independent Grocers here a while ago, and they explained that not only is Sobeys a grocery store, but they also supply to independent stores as well. Is there any extent to which the code of conduct would change how Sobeys does business as a supplier to the independent grocery stores?

[Rob Allsop]

A simple answer is no. Our ways of working with our suppliers will be unchanged other than some of the enhancements we talked about in the opening comments.

[Paul Connors, Liberal, Avalon, NL]

That's a good answer.

I'll give you an opportunity for just a few minutes to talk about food inflation, because you never had a chance. What's the cause of food inflation, and are there any hidden taxes or anything like that?

[Rob Allsop]

Yes. I'm equipped here today to speak to the code, of course, which we've established does not necessarily directly connect to price. My peer in the industry, the gentleman from Costco, covered all the things I would list to you. I don't think I need to repeat them. They're all the factors driving inflation that we manage every day. This is what we do.

[Paul Connors, Liberal, Avalon, NL]

Okay. Thank you very much.

The lady from Walmart mentioned earlier that her president was here back in 2023 and talked about an unlevel playing field between suppliers and retailers, and this is how, I guess, the dispute resolution came about. Would you have any thoughts on how you feel a dispute between suppliers and retailers over possible violations of the code should be addressed?

[Rhonda Maines-Corrado]

As part of the working group collaboratively developing the DRMP, I'm comfortable that the process that has been arrived at in the final drafts is an appropriate one that is fair and consistent with the principles of the code.

[Paul Connors, Liberal, Avalon, NL]

Okay.

What do you see would be the benefit of having the code of conduct for someone like me going to Costco as an individual consumer? If you had to sell it, what would be your sell to the individual consumer?

[Pietro Nenci]

I would say that in the short term, it would be not that much. In the mid to long term, let's call it, there will probably be more productivity and innovation.... If the industry is more well balanced and there's fair play, I think investments will be greater, and producers will take more chances to launch new items.

[Paul Connors, Liberal, Avalon, NL]

Okay.

Sobeys, do you have anything to add to that?

[Rob Allsop]

I'm sorry, but I'm going to have to ask you to repeat the question, if you don't mind. Thank you.

[Paul Connors, Liberal, Avalon, NL]

If you had to sell the code of conduct that you're participating in—it's a voluntary program, and you were one of the first people to sign on—what do you see would be the benefits to a consumer for that?

[Rob Allsop]

We've learned through the last several years just how fragile the food industry can be, particularly when we think about the geopolitical impacts and all of the things around us that we manage on any given day. The resiliency of our food chain is, to me, one of the primary benefits—a consumer would gain confidence in the consistency of the food supply in Canada.

[Paul Connors, Liberal, Avalon, NL]

Okay.

Walmart, I'll give you a chance to answer that as well.

[Rhonda Maines-Corrado]

I would also add that the relationships between suppliers and retailers working well will ultimately benefit customers more, I agree, in the long term. The principles of fairness and transparency can only help those relationships, and we at Walmart know that when our suppliers are doing well, we do well, and we're better able to deliver on low prices for Canadians together, but that's a long-term, indirect result of strong relationships.

[The Chair, Liberal, Michael Coteau]

Thank you very much.

Mr. Perron, you have two and a half minutes.

[Yves Perron, Bloc, Berthier—Maskinongé, QC]

Thank you, Mr. Chair.

I'll repeat the question I asked Mr. Nenci earlier.

Mr. Allsop, would you be open to the government's putting in place an oversight body for price fixing, or a verification process, if it protected your confidential, strategic information? Would that be a good thing for the industry?

[Rob Allsop]

I think it would be dangerous in the sense that it could slow things down. In our industry, we have to be careful. Things move at a fast pace, and we have to make quick decisions. As long as we are all abiding by the principles that are set forth in the code, we can move with velocity and continue the strong food supply that our customers expect.

As soon as we add layers of complexity and oversight committees with escalation processes that may be unnecessary, it could technically slow us down, and that worries me a bit because we have to adapt quickly to the changing environment of the industry we're in.

[Yves Perron, Bloc, Berthier—Maskinongé, QC]

It would be an independent body, so it wouldn't impact your daily operations.

Don't you think it would be worthwhile for produce growers who, for example, sell their heads of lettuce at a certain price to a grocery store that then sells them at a price four or five times higher? Sometimes, those heads of lettuce are recalled and replaced by lettuce from Mexico, but the prices don't go back down. There are also organic products. They're a lot more expensive than similar products, and when you look at their production costs, you realize that the profit margins must be much higher. Maybe it has to do with the fact that they're associated with being more high-end products. I think it could only be beneficial to make that information public.

I'd like to know your thoughts on that, Ms. Maines‑Corrado.