Food Drink Ireland (FDI), the group representing the Irish food and drink sector, has highlighted the importance of enforcing fair trading grocery regulations.
In its latest business monitor, the FDI states it wants to address the ‘major imbalance in the relation ship between grocery retailers and suppliers’ in Ireland.
This complaint comes one year after the introduction of the Grocery Goods Regulations. The purpose of the Regulations is to facilitate greater certainty and transparency in dealings between suppliers and businesses.
It aims to address these issues and the unfair demands being put on suppliers. These include a failure to respect contractual terms, de-listing threats and off-invoice deductions without sound business reasons.
Need For Certainty
FDI Director, Paul Kelly stated: “Suppliers need to have certainty in respect of the risks and costs of trading, a key principle enshrined in the legislation that established the Grocery Goods Regulations.
"The regulations have already made significant inroads to addressing some of these pressures and demands on suppliers. The Competition and Consumer Protection Commission must be a strong voice on these issues and ensure the spirit of the regulations is adhered to".
Kelly also stated that the unfair practices faced by food suppliers that impact their costs are not only bad for business but are also bad for consumers. He said that the consumers are best served by a fair market “that offers choice and convenience, and provides an outlet for new products and suppliers”.
The business monitor also stated that food prices have decreased by 2.5% in the year to March. It revealed this decrease is slowing down the volume growth of increasing retail sales.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Aidan O'Sullivan. Click subscribe to sign up to ESM: The European Supermarket Magazine.
