Total Produce has hit back against allegations of bullying and extortion made by one of its potato suppliers.
A terms-of-trade letter sent from Total Produce to its wholesale suppliers, forwarded to FPJ by George Best of Borders Premium Potatoes, stipulated that “from February 1, a rebate of 20p per pack will be levied on each pack procured by the group [Total Produce]”.
Best said: “I have never come across bullying supermarket tactics like this in wholesale before. They are expecting a rebate to subsidise their business - but don’t they think our costs have gone up? We are not there to underpin their business. Everyone else in wholesale pays equal - they are trying to steal a march. To me, this is extortion.”
But Total Produce chairman Denis Punter robustly defended the move.
“The letter we sent out was a terms of trade, dealing with a whole raft of issues,” he told freshinfo. “The rebate was just one element of a general letter about due diligence and payment terms, and it is a mistake to focus on the one point.
“We have dealt with suppliers in this way for 15 years - rebates are not a new issue at all. It is not high-handed and never will be, and in 99 per cent of cases we strike a good arrangement with our suppliers after the terms of trade have been sent. We are seeking to invest in quality and raise our brand, and share the benefits of this with our suppliers.”
Best said: “Total Produce is now saying we will get our base price, but I want that in writing - or we will cease supplying them as of February 1.”
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