FDBusiness.com

Groceries Code Adjudicator Achieving Significant Progress For Suppliers

 Breaking News
  • The Price is Right For 77% of Brits Earning £50,000+ Who Shop at Food Discounters Latest research from Mintel finds better off British shoppers are flocking to UK food discounters. Indeed, today, as many as 77% of British consumers with a household income of £50,000 or more visit food discounters, compared to 73% of those with a household income of £15,500 or less. And it appears that premium products are pulling [...]...
  • Mackays Invests £3.8 Million in Major Expansion Scotland’s largest producer of marmalade and jam, Mackays, is set to embark on a major multi-million pound investment that will see its business premises grow by 50%. Starting in January 2018, the £3.8 million expansion will allow the company to introduce new product lines into its existing factory as well as create a dedicated distribution [...]...
  • A Healthy Business Choice – Demineralized Whey Powder Demineralized whey powder is an economical and healthy ingredient which is used across many food and dairy products. Growing consumer demands for infant formula and sports nutrition products in particular mean this highly beneficial product is seeing intensified production levels. SPX FLOW offers customers expertise, experience and state-of-the-art technology for efficient and safe demineralized whey [...]...
  • Ferrero to Acquire US Confectionery Company Ferrero Group is acquiring Ferrara Candy Company, the third largest non-chocolate confectionery company in the US, from L Catterton, the biggest and most globally consumer-focused private equity firm in the world. The terms of the transaction were not disclosed. Ferrara is best known as the maker of iconic brands such as Trolli, a leader in [...]...
  • Shift to Sustainable Food System in Europe is Possible – But Faces Challenges Making Europe’s production, consumption and trade in food environmentally sustainable is possible, but it will require a major shift in public attitudes, policies and knowledge and seizing current opportunities for change, according to a newly published European Environment Agency (EEA) report. The EEA report ‘Food in a green light,’ analyses the challenges Europe faces in shifting [...]...

Groceries Code Adjudicator Achieving Significant Progress For Suppliers

Groceries Code Adjudicator Achieving Significant Progress For Suppliers
June 28
14:40 2016

The UK’s top ten supermarkets have all acted on issues raised by the Groceries Code Adjudicator (GCA) and suppliers are seeing the benefit. Adjudicator Christine Tacon (pictured) says that she is achieving significant progress as a sector-wide survey showed a further fall in the number of suppliers experiencing Groceries Code-related issues.

According to the YouGov survey carried out on behalf of the GCA 62% of direct suppliers said they had experienced an issue in the past year – compared to 70% in 2015 and 79% in 2014.

Suppliers rated Aldi, Sainsbury’s and Lidl as the top three supermarkets in terms of complying ‘consistently well’ and ‘mostly’ with the Code during the previous 12 months.

Direct suppliers also told YouGov that most retailers have improved their behaviour in the past year with the highest performer identified as Tesco – 65% of those supplying the retailer saying its practices had improved and only 5% reporting they had worsened.

“All the regulated retailers have acted on the issues I have raised over the past year and there have been some excellent examples of changes in retailer practice,” says Christine Tacon. “I am delighted that direct suppliers are seeing the impact of real change for their businesses. For the second year running the number of suppliers reporting Code-related issues has fallen.”

The YouGov survey identified the top issues experienced by suppliers: incorrect deductions from invoices with or without notice topped the list on 30% followed by excessive retailer charges for artwork/design (28%) and no compensation/incurring penalty charges for inaccurate forecasting (22%).

Christine Tacon has used the survey findings and other information received as well as her learnings from the Tesco investigation to develop a new list of Top 5 issues that will be the focus of her work in the coming year. She has also launched a formal consultation into payments for better positioning of goods – one of the five issues.

“During my investigation into Tesco I found areas of concern about the issue of payments for better positioning or increased share of shelf space,” she says. “I came across instances where a Tesco request for investment resulted in the supplier asking for share of shelf space commitments, product placement near competitors and exclusivity.”

She continues: “I also saw examples of significant payments for category captaincy and range reviews where suppliers felt that if they didn’t pay they would be adversely affected in terms of positioning on shelf. Such arrangements appear to have the potential to have an adverse effect on competition through retailer acceptance of large sums of money from suppliers in exchange for better positioning or increased shelf space.”

The consultation is open for 12 weeks until 19 September and the responses will help the Adjudicator clarify how paragraph 12 of the Code relating to payments for better positioning should be interpreted.

GroceriesCodeAdjudicatorOther topics covered by the survey:

* A rise in the number of direct suppliers undertaking training in the Code (29% to 35%) – following a GCA campaign urging suppliers to ‘get trained’;

* A strong preference among suppliers for online training tutorials; *Increases in supplier knowledge across all retailers about where to find the Code Compliance Officers;

* A fall in the number of direct suppliers saying they have raised an issue with a retailer in the past 12 months (17% to 13%);

* Jump in both good understanding of the Code and good understanding of the GCA’s role and responsibilities (up 7%).

One area of disappointment for the Adjudicator was no change in the proportion of suppliers prepared to bring information to the GCA.

Christine Tacon comments: “I am disappointed that the number of suppliers saying they would bring an issue to me remains stubbornly on 47% – with more than half giving the reason as fear of their relations with a retailer being damaged. This is despite the publicity around the Tesco investigation and a clear demonstration that I can carry out a complex investigation with significant findings and benefits for suppliers with no identities revealed.”

She adds: “In the coming year I will be redoubling my efforts to overcome this fear factor and also to reach suppliers overseas where knowledge of the GCA remains low.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • October 21, 2017Food & Nutrition Conference & Expo 2017
  • October 22, 2017Serbotel
  • October 22, 2017Natexpo
  • November 5, 2017FLEIFOOD 2017
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements