Aldi tops compliance with UK supermarket code

The most recent survey of suppliers to the 10 major UK retailers has put Aldi top for compliance with the Groceries Supply Code of Practice, introduced in the UK in 2010.

In the survey, 95% of suppliers said that Aldi either ‘‘consistently’’ or ‘‘mostly’’ complied with the code. In second place was Sainsbury’s, followed by Waitrose and Tesco.

I need suppliers to speak up more. I’m not telepathic

At the other end, Iceland was bottom, ahead of Asda and the Co-op.

The groceries code was introduced in the UK to manage the relationship between suppliers and the top 10 UK supermarket retailers, with an adjudicator, Christine Tacon, appointed in 2013.

She was in Northern Ireland last week, speaking at a conference organised by the NI Food and Drink Association (NIFDA).

During her time in office, compliance with the code has improved, with 79% of suppliers reporting that they experienced code-related issues in 2014, compared with 52% in 2017. However, while progress has been made, Tacon maintained that issues still remain, such as delays in payments from supermarkets, forecasting of sales (a retailer should compensate a supplier if forecasts are wrong) and who pays for promotion activity.

But perhaps of greatest frustration for Tacon is the unwillingness of suppliers to approach her with information, with only 52% of suppliers indicating that they would pass on concerns.

There remains a significant fear that the retailer would find out, and there would be retribution. “I need suppliers to speak up more. I’m not telepathic. I have a statutory requirement to ensure confidentiality,” she said.

She also urged suppliers to get trained in the code, with a number of providers now offering the service. “People who raise issues are much more likely to have been trained,” insisted Tacon.

Looking ahead, her role has been reviewed by Government, although the outcome of that review is yet to be made known. In the meantime, she has agreed to stay in the role, but with a break-clause after a year. “I would have no issue with another 10 supermarkets being brought in under the code, but the code is not about prices,” she said.

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