Sell your food or drink product in a supermarket

Supermarkets exert considerable buyer power and their behaviour and buying practices can adversely impact suppliers. Common concerns include:

• delayed payments to suppliers
• demands for lumps sums in order to continue stocking products
• making suppliers pay for better positioning on shelves

In the UK, legislation is in place that aims to ensure retailers treat suppliers fairly and lawfully, in good faith and without duress.

Groceries Supply Code of Practice

The Groceries Supply Code of Practice (GSCOP) is legislation designed to regulate the relationship between supermarkets and their suppliers. It puts certain restrictions on the purchasing activities of the biggest supermarket chains, aiming to protect suppliers from some of their more extreme buying practices.

Which supermarkets must abide by the Groceries Supply Code of Practice?

The code only applies to certain 'designated retailers'. To be classed as a designated retailer, a company's UK grocery sales turnover must be greater than £1 billion. Because of this, the list can change.

Currently, the following retailers are covered by the code:

• Amazon
• Aldi Stores Ltd
• Asda Stores Ltd
• B&M European Value Retail SA
• Co-operative Group Ltd
• Iceland Foods Ltd
• Lidl GB Ltd
• J Sainsbury plc
• Ocado Retail Ltd
• Marks & Spencer plc
• Tesco plc
• TJ Morris Ltd (trading as Home Bargains)
• Waitrose Ltd
• Wm Morrison Supermarkets plc

What protections for direct suppliers are set out in the code?

The Groceries Supply Code of Practice requires the regulated retailers to deal fairly and lawfully with their direct suppliers across a range of supply chain practices. These include:

• making payments on time
• not varying supply agreements without notice
• paying compensation for forecasting errors
• not charging for shrinkage or wastage

There are also restrictions on listing fees and marketing costs as well as particular processes that should be followed when retailers are de-listing suppliers. This list is not exhaustive. Full details of the provisions are available in the Groceries Supply Code of Practice.

Dealing with issues

If you are in a disagreement with a supermarket that is selling your product, and the issue falls under the remit of the Groceries Supply Code of Practice, in the first instance you should approach the retailer's Code Compliance Officer. If this doesn't help resolve the issue, you can reach out to the Groceries Code Adjudicator.

Groceries Code Adjudicator (GCA)

The GCA monitors and encourages compliance with and enforces the Groceries Supply Code of Practice in the UK. They also investigate complaints and arbitrate in disputes.

The GCA cannot advise you about whether the retailer has breached the code, because they may later be asked to arbitrate on the issue or may launch an investigation into the practice. However, if asked, the GCA Team will often be able to direct you to the relevant part of the code, a case study or guidance. You can contact the GCA Team via email enquiries@groceriescode.gov.uk or Tel 020 7215 6537.

The Adjudicator is not able to consider issues that do not relate to the code. Before raising a complaint with the GCA, read their guidance on raising issues, and the disputes and escalation process.

Making a complaint about a supermarket as a direct supplier

If your business is a direct supplier to a supermarket and you feel that you have been unlawfully or unfairly treated by the supermarket, you can complain to the GCA.

You can raise a complaint directly with them at enquiries@groceriescode.gov.uk or use their confidential reporting platform - 'Tell the GCA' – if you want to remain anonymous.

If you are seeking arbitration, you should refer to the GCA Arbitration policy. You should send the arbitration request form to enquiries@groceriescode.gov.uk and the other party at the same time.