Skip to main content
FIND A LAWYER
ARTICLE

Groceries Code Adjudicator advice on inflation

With inflation increasing ingredient costs, many suppliers to the major grocery retailers are having difficult conversations trying to pass on these price rises.

Mark White, the Groceries Code Adjudicator (GCA), has just asked suppliers to contact him where the major retailers have not handled a request for price increases appropriately and in particular where the retailer alleges that the Code requires suppliers to give fixed notice of any cost price increase (CPI), which is not true.

The GCA has identified seven ‘golden rules’ where retailers have dealt with CPI requests well:

1. Clear communication from the outset by retailers about the process and how long it will take;

2. Awareness, and prioritisation, of the possible greater impact on smaller suppliers;

3. Support for buyers from colleagues who have experience of dealing with CPI requests;

4. Only asking for the specific information from suppliers that is needed to make a CPI decision;

5. Clear communication of the outcome, so there can be no grey areas;

6. No automatic delists or fixed delist notice periods following CPI negotiations;

7, Reminding buyers about abiding by competition law e.g. never asking suppliers about other retailers’ plans or retail prices.

Suppliers are also encouraged to complete the GCA annual survey before the 27 Feb providing information on their experiences.  These comments help the GCA to require buyers to have the correct training and support for the role they are carrying out.  This is especially important when buyers move across product categories since the pressures on food businesses are very different to those specialising in cosmetics or household products.

Our experienced teams help with bespoke Groceries Code training, pursuing Code claims, and drafting and reviewing contracts.

This update is for general purposes and guidance only and does not constitute legal or professional advice. You should seek legal advice before relying on its content. This update relates to the prevailing circumstances at the date of its original publication and may not have been updated to reflect subsequent developments. If you have general queries about our updates, please email: mailinglists@greenwoods.co.uk




    By completing and submitting this form, you consent to Greenwoods Legal LLP processing your personal data to provide you with the email update services you have selected and any other materials and information about our services that Greenwoods Legal LLP reasonably believes will be of interest to you. You are free to withdraw your consent at any time by emailing mailinglists@greenwoods.co.uk





      By completing and submitting this form, you consent to Greenwoods Legal LLP processing your personal data to provide you with the email update services you have selected and any other materials and information about our services that Greenwoods Legal LLP reasonably believes will be of interest to you. You are free to withdraw your consent at any time by emailing mailinglists@greenwoods.co.uk