Food industry welcomes long-awaited grocery sector regulations

Food and Drink Industry Ireland, the Ibec group that represents the Irish food sector, today welcomed the signing into law of new grocery sector regulations by the Minister for Jobs, Enterprise and Innovation Richard Bruton. The group said the regulations, which it has long campaigned for, will help address the major imbalance in the relationship between major grocery retailers and suppliers. Only last week the problem was highlighted by both the UK Groceries Code Adjudicator and the European Commission.

FDII Director Paul Kelly said: "Unfair practices faced by food companies include a failure to respect contractual terms, de-listing threats and unilateral deductions off-invoice without sound business reasons. In the short-term these demands impact on individual suppliers, but ultimately they are also bad for consumers.

"Consumers are best served by a grocery market that is both fair and competitive, one that offers choice and convenience, and provides an outlet for new products and suppliers. Ireland has been slow to act, but the new rules will help to address some of the unfair pressures currently put on suppliers by major retailers.

"The regulations present a unique opportunity to create a fair trading environment in the Irish grocery sector, it is now up to the Competition and Consumer Protection Commission to effectively and efficiently enforce the rules."


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