British Frozen Food Federation Progress and priorities in securing a fair food supply chain

Role of the Groceries Code Adjudicator

• To monitor, ensure compliance and enforce the Groceries Supply Code of Practice

• Help strengthen the supply chain and bring further innovation to the groceries sector benefiting suppliers, retailers and customers

The Groceries Supply Code of Practice

• Direct suppliers to the 10 regulated retailers • Covers

– Fair dealing – Variation – Payments – Promotions – Other duties (consumer complaints, de-listing)

Securing fairness – making a difference • Improved compliance against a challenging

industry background as a result of: – Collaborative approach – Meetings with senior leaders and audit chairs – Retailers reinforcing compliance and audit teams

• How do I know? – Evidence from feedback and annual survey

Progress to date • Success with Top 5 issues

Forensic auditing Drop and drive Consumer complaints Forecasting

• Continuing to work on – Artwork and design charges – Delay in payments – Requests for lump sum payments

What I found: delay in payments

What I recommended 1. Money owed to suppliers must be paid in accordance with the

terms agreed 2. Tesco must not make unilateral deductions – 30 days for

suppliers to challenge proposed deduction 3. Data input errors identified by suppliers must be resolved

promptly – within 7 days 4. Tesco must provide transparency and clarity in its dealings with

suppliers 5. Tesco finance teams and buyers must be trained in the

investigation findings

What I found: better positioning A retailer must not directly or indirectly require a supplier to make any payment in order to secure better positioning…. • No breach based on original case study • Concern about a number of practices • Formal consultation to follow

Priorities for the GCA

Current priorities and activities • Analysis of artwork/design charges • Annual report • Conference on June 27 and survey results

Plus • Input to BIS statutory review • Consultation into practices related to indirect

payment for better positioning

Consultation – better positioning • To be launched shortly • Will be seeking views on behaviours that may

lead to indirect requirement for payment for better positioning or increase in shelf space, including – Requests for investment – Category management & category captaincy – Participation in range reviews

What do I want from suppliers • Undertake training to understand the Code and know

how it can help • Register for the GCA conference on June 27 • Tell me about issues and potential breaches

– Anyone, large & small, can bring me information – Confidentiality will be protected

If you want me to continue making a difference then give me the information