Supermarkets have been accused of using “shocking” tactics with their suppliers, with a number of major issues still needing to be stamped out.
Groceries Code Adjudicator Christine Tacon told a Westminster Forum that one supplier was told to pay £25,000 for a table at a charity ball, while others are still being asked to pay to keep their goods on shelves.
The Times quoted Tacon as saying: “I had a supplier expected to pay £25,000 for a table at a charity ball. They come under pressure like being told, ‘Well, if you don’t buy a table, your name will be on a list of people to the chief executive that are not supporting our charity.’
“They are also told they can meet buyers if they buy tickets for golf or fishing days.”
Tacon said an analysis of 20 suppliers showed they lost a combined £15 million to “drop and drive”, where perishable food is sent to distributors but fails to appear on the payment system and supermarkets claim it was never received. “The supermarkets are genuinely not paying for goods that they are selling. If 20 suppliers are losing £15 million, then what’s the cost to the industry?” she said.
Then there’s the issue of suppliers being charged over frivolous complaints, with one apparently fined £45 after claiming they’d found a teabag inside an egg, according to the paper.
