FDBusiness.com

Watchdog criticises Tesco for mistreating suppliers

 Breaking News
  • Another Year of Progress For Nestlé Nestlé has reported a 2.1% increase in sales to SFr91.4 billion (€80.6 billion) for 2018 with organic growth of 3% and group RIG of 2.5%, which was at the high end of the food and beverage industry, helped by faster innovation and successful new product launches. 2018 organic growth was supported by stronger momentum in [...]...
  • Fast-growing Asia Maternal Nutrition Market to Boost Demand For Dairy ingredients and Formula Maternal nutrition is a hot new opportunity in emerging markets, according to the latest report from food and drink experts, Zenith Global. In many parts of Asia, the concept of optimal nutrition during the first 1,000 days of a baby’s life (from conception to two years old) is capturing the attention of mothers and their [...]...
  • Innovation in the Spotlight at UK’s Largest Packaging Show Packaging Innovations, Empack and Label&Print 2019 returns to Birmingham’s NEC later this month with its most innovative show to date. The show, which also includes Contract Pack, Ecopack and Industrial Pack, will showcase more product launches and innovation from across the industry than ever before as it welcomes over 300 suppliers. As always, Innovation is the [...]...
  • £100 Million Müller Programme to Transform UK Fresh Milk Business Müller Milk & Ingredients, Britain’s largest producer of branded and private label fresh and flavoured milk, cream, butter and ingredients, has launched a £100 milliion cost and margin improvement programme which aims to secure a vibrant and sustainable future for the business, to the benefit of consumers, customers, employees and farmers. Project Darwin includes a comprehensive [...]...
  • Coca-Cola European Partners Continues to Focus on Driving Profitable Revenue Growth Coca-Cola European Partners has reported its fifth consecutive quarter of revenue growth and announced plans to trade on the London Stock Exchange. Revenue grew by 4.0% to €11.5 billion and comparable operating profit grew by 7.0% to €1.6 billion in 2018. Earnings per share were €2.30, an increase of 8.5%. Coca-Cola Zero Sugar led growth in [...]...

Watchdog criticises Tesco for mistreating suppliers

February 01
10:18 2016

TescoCompressedGroceries Code Adjudicator (GCA) Christine Tacon found that Britain’s biggest retailer had an endemic culture of making unilateral deductions from suppliers’ bills and delaying payments, including packaging firms – in one case taking more than two years to pay a multi-million pound debt.

“It was clear to me the pressure on the (Tesco) buyers and the finance teams to meet their margin targets was an overriding pressure within the business and it was widespread … it was everywhere,” said Tacon.

Tesco chief executive Dave Lewis insisted  the supermarket giant had completely changed the way it dealt with suppliers.

Tacon said she was unable to find evidence showing involvement of top managers at Tesco.

“But the pressure was clearly being put on them (buyers),” she added, citing examples of buyers having to go to more senior colleagues to get approval to pay an invoice that was due.

Tesco said on Tuesday it accepted Tacon’s findings and would continue to work with suppliers to build trust after working hard over the past year to change the business.

“I would like to apologise again. We are sorry,” said Lewis.

The GCA ordered Tesco to stop making unilateral deductions from money owed for goods and give suppliers 30 days to challenge any reduction. If challenged, Tesco will not be entitled to make the deduction.

Tesco PLC is a British multinational grocery and general merchandise retailer headquartered in Welwyn Garden City.  It has stores in 12 countries across Asia and Europe and is the grocery market leader in the UK, Ireland, Hungary, Malaysia, and Thailand.

About Author

admin

admin

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 18, 2019Multimodal 2019
AEC v1.0.4

Jobs: Food Packaging

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements