Food Industry Welcomes Bill To Establish Grocery Code Of Conduct

01 Apr 2014 --- Food and Drink Industry Ireland (FDII), which represents the Irish food sector, today welcomed the publication of the Competition and Consumer Bill and its provision to allow for a statutory code of conduct in the grocery goods sector.

FDII Director Paul Kelly said: "A statutory code is critical if the food industry is to continue to provide high-quality Irish products, choice and convenience to Irish consumers at a fair price. The code must be properly and effectively enforced by the Competition and Consumer Protection Commission.

"Unfair practices faced by food companies include a failure to respect contractual terms, de-listing threats and unilateral deductions off-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."

"Across Europe, authorities are taking steps to better regulate trading relationships to stop large retailers making unfair demands of suppliers. The UK last year appointed a Groceries Code Adjudicator to enforce their code. The government said legislation to introduce an Irish code would be published in the final quarter of 2012, so it is critical that the provisions in the Bill to implement a code are undertaken urgently."