FDII Says New Grocery Rules Will Address Unfair Pressures on Suppliers

02 Feb 2016 --- Food and Drink Industry Ireland (FDII) has welcomed the rubber-stamping of the new grocery sector regulations, which it says will “address of the unfair pressures” currently put on suppliers by major retailers.

The new rules, which have been signed by the minister for jobs, enterprise and innovation Richard Bruton, have been struck in order to ensure there are fairer dealings between industry stakeholders.

The rules cover a gamut of issues, such as jobs and sustainable food.

The FDII, which has long campaigned for the changes, said fundamentally the rule changes will help address the major imbalance in the relationship between suppliers and the big grocery retailers.

FDII director Paul Kelly, said: “Unfair practices faced by food companies include a failure to respect contractual terms, de-listing threats and unilateral deduction of-invoice without sound business reasons. In the short-term these demands impact on individual suppliers, but ultimately they are also bad for consumers.

“Consumers are best served by a grocery market that is both fair and competitive, one that offers choice and convenience, and provides an outlet for new products and suppliers. Ireland has been slow to act, but the new rules will help it address some of the unfair pressures currently put on suppliers by major retailers.

“The regulations present a unique opportunity to create a fair trading environment in the Irish grocery sector.”

The new rules come into effect from the end of April.