The UK's Groceries Code Adjudicator (GCA), Christine Tacon has today launched an investigation into Co-operative Group, having formed a reasonable suspicion that the retailer may have broken the Groceries Supply Code of Practice (the Code).
The GCA holds a reasonable suspicion that the retailer may have broken the Code through some of its practices. These relate to de-listing and the introduction of benchmarking and depot quality control charges over a period from early 2016 to at least summer 2017.
In addition, the GCA will consider the retailer’s Code-related training for its buyers and the culture contributing to the retailer’s approach to Code compliance.
The Co-op responded, 'We acknowledge that we have fallen short and have been discussing the two issues raised with the GCA for some months. We have already taken decisive steps in line with our commitment to ensure the fair treatment of all of our suppliers.
'The actions we have taken include:
- Steps to strengthen our systems and processes for the future
- Retraining of 450 commercial colleagues in the operation of the Groceries Supply Code of Practice
- Writing to all of our 1500 direct suppliers to seek information on any delisting decisions that they believe may have been taken without appropriate consultation. A small number of suppliers have raised concerns which we are working through with them.
- Reviewing every case where a supplier was charged for benchmarking and quality
control. As a result 110 suppliers have been refunded a total of approximately £500k.
We have communicated in detail with suppliers to explain where and when these charges
should be applied.
Jo Whitfield, CEO of Co-op Food, said, “We care deeply about our relationships with our suppliers and we are very sorry that in these two areas we have failed to live up to our usual high standards. We are already addressing the issues with the GCA and our suppliers and we hope the investigation will help bring to light any additional cases so that we can put these right as quickly as possible.”