Eiffel Tower - A creamy cow’s milk delight, featuring a chalky white rind and a cream-colored, buttery, soft interior that oozes when at the peak of ripeness and temperature
BelGioioso - Burrata & Stracciatella
Grocery Code Adjudicator Report Shows Tesco Must Treat Suppliers Better

Grocery Code Adjudicator Report Shows Tesco Must Treat Suppliers Better


UNITED KINGDOM
Wednesday, January 27th, 2016

An investigation by the Grocery Code Adjudicator (GCA) on Tesco’s buying practices has now become a rallying cry for farmers against the company’s business practices - the top interested party being the Ulster Farmers Union (UFU).

Ian Marshall, President, UFU“Every business has to make a profit... but power and dominance in the food sector comes with responsibilities, and the GCA report has made that clear,” UFU President Ian Marshall commented in news source News Letter.

The investigation was in response to recent questions raised about Tesco and other major retailers abusing their power within the supply chain as the local industry's biggest customers and their direct line to the mainstream market in the U.K.

Photo Source: Forbes

In the GCA’s report it is revealed that a vast majority of Tesco’s invoices were left undisputed. Evidence has shown, however, that whenever a dispute arose over payments, the retailer would either delay or deduct payments, with suppliers not receiving payments for as long as two years.

“There was also extensive evidence that where payments were otherwise than for goods supplied or there was any disagreement over amounts due, this resulted in Tesco deducting or deferring payment of money that was owed to suppliers for goods supplied,” the report states. “Sometimes this involved significant amounts that were delayed for long periods of time. Even where a debt had been acknowledged by Tesco, the money was sometimes not repaid for over 12 months. I received evidence that some repayments were not made for nearly 24 months and on other occasions the supplier gave up pursuing the amount owed.”

Read the Full Investigative Report Here

“At a disadvantage, farmers pay the price because they are expected to deliver top-quality produce at prices below the cost of production,” Marshall added. He says the report found that Tesco's applying pressure to suppliers forced prices and suppliers’ margins down, creating losses for those providers.

Despite the report’s findings, Tesco will not be fined by the GSA, as the breaches of conduct took place before last year’s ruling that the association had the government’s consent to fine companies up to 1% of its annual revenue according to The Guardian.

Continue following DeliMarket News for all the latest industry news.

Tesco


Eiffel Tower - A creamy cow’s milk delight, featuring a chalky white rind and a cream-colored, buttery, soft interior that oozes when at the peak of ripeness and temperatureBelGioioso - Burrata & Stracciatella

Have a new product, press release or story idea?

Let us know

In This Story


We are a team of over 530,000 people in 12 markets dedicated to bringing the best value, choice and service to our millions of customers each week. 

American Butter Institute Urges FDA to Address Mislabeled “Butter” Products

The company urges the USDA to take prompt enforcement action against seven “butter” substitutes that allegedly violate the agency’s food labeling requirements.
View Press Release

Harvest A Great Time This Fall With These Hampton Farms Recipes On Your Table

The company partners with and supports local farms to seed and harvest all its peanuts.
View Press Release

Beetology Introduces New Beverages

The company launches cold-pressed, simple, nutrition-packed wellness juices made from nature's superfood—beets.
View Press Release

The Spice Lab is Now USDA NOP Organic Certified

The USDA Organic seal assures consumers that products are 95% or more certified organic.
View Press Release

Valio Unveils On-Trend Food Innovations and Ingredients Solutions at SIAL Paris

The company plans to showcase its latest food innovations and tailor-made ingredients solutions at the upcoming show.
View Press Release

Charlotte-Based Hissho Sushi Makes N.C. Mid-Market Fast 40 List

This year marks 20 years since Hissho Sushi was founded in Charlotte, NC.
View Press Release

Anheuser-Busch Inbev & DS Smith Plastics Named 2018 Excellence in Reusable Packaging Award Winners

RPA announces two winners in the 2018 Excellence in Reusable Packaging award program.
View Press Release

It's Pumpkin Spice Season!

Litehouse debuts a fresh look for its line of deliciously indulgent caramel dips and a limited-edition flavor: Pumpkin Spice Caramel.
View Press Release

Time to Step Up Your Fall Menu Plan; Pereg Natural Foods Gets You Started

Suffering from pumpkin spice fatigue? Here are 14 savory reasons why you still need pumpkin spice in your life.
View Press Release

New Snack Bars Take the Tahini Craze to Healthy Delicious Heights

Absolutely Gluten Free introduces TahiniBAR, the energy bar made from sesame seeds, in three exciting flavors.
View Press Release