Retailer Empire and supplier Lactalis became the first members to register under the Grocery Code of Conduct on Wednesday.

Both companies have been active in an effort from a number of industry stakeholders to develop the code, which seeks to promote transparency and fairness and apply penalties and fees to firms in contravention of its standards.

Karen Proud, president and adjudicator of the Office of the Grocery Sector Code of Conduct (OGSCC), said in a statement that the announcement represents a major step forward in the code’s implementation.

“Their support reflects the continued commitment of major players across the grocery sector to a fair and transparent supply chain,” Proud said.

The code is a set of guiding principles that define fair business relationships in the grocery industry and sets expectations for responsible dealings between retailers and suppliers.

While the five major grocers in Canada already endorsed the principles of the code in 2024, they must formally join for its standards to apply. Walmart and Costco, gave their support last July after initially holding out.

Formal recruitment efforts are set to begin this fall. And the OGSCC says it welcomes members to register now and is encouraged by the early engagement from across the sector.

Proud says she expects Canada’s other major grocers to register ahead of the planned implementation of the code on Jan. 1.