By Braden Paul - Reading time approx. 3 min.As the cost of groceries continues to rise, the Canadian government has introduced Bill C-56: The Affordable Housing and Groceries Act — a proposed amendment to the Competition Act that could reshape how major grocery retailers and suppliers do business.
For food brokers, emerging CPG brands, and even established suppliers, this bill presents both a challenge and an opportunity in Canada’s increasingly competitive retail landscape.
What Is Bill C-56?
Introduced in 2023, Bill C-56 aims to increase competition in the grocery sector by making it easier for the Competition Bureau to investigate and challenge anti-competitive behavior. It removes long-standing loopholes that have historically protected large grocery chains and gives the Bureau more teeth to address market dominance, exclusive agreements, and potentially unfair pricing practices.
For the Canadian food and packaging sales industry, this could mark a turning point.
Why This Matters to Food Brokers and Brands
1. A More Level Playing Field for Emerging Brands
The bill is intended to curb excessive consolidation and favoritism toward major multinationals. That means emerging and independent brands may now have more opportunity to earn shelf space — especially if they offer Canadian-made, competitively priced products.
For agents like ours (Marathon Marketing), this could open doors to retailers seeking product diversity and increased transparency in their sourcing practices.
2. Retailers May Re-Evaluate Their Supplier Base
Large retailers such as Loblaw, Sobeys, and Metro may be encouraged (or pressured) to re-balance their mix of suppliers. This could lead to:
More openness to smaller vendors
Reduced reliance on exclusivity or slotting-fee arrangements
Greater interest in regional or local brands
Agencies that can bring compelling, shelf-ready solutions will be well positioned to capitalize on these shifts.
3. Compliance & Transparency Will Matter More Than Ever
As the regulatory environment tightens, brands and agents will need to:
Provide clear pricing justifications
Demonstrate fair trade practices
Ensure transparent contracts with their retail partners
This is where brokers add real value — helping brands navigate changing rules, negotiate effectively, and avoid compliance pitfalls.
What Should CPG Brands Do Now?
If you're a CPG or packaging brand looking to grow in Canada, this is the moment to act. Here's how to get ahead:
Audit your go-to-market strategy for competitiveness and compliance
Revisit pricing and packaging to ensure they align with evolving retailer expectations
Partner with a Canadian food brokerage like Marathon that understands how to open the right doors — and how to build relationships that last
Final Thoughts
Bill C-56 is a signal: Canada wants more grocery competition, more affordability, and more transparency. For brands willing to adapt — and for brokers who can lead the way — it’s a chance to thrive in a market that’s hungry for change.
At Marathon Marketing, we specialize in helping food and packaging brands navigate the Canadian grocery sector. If you're looking to expand in Canada, we’re ready to help you make the most of this evolving landscape.