Australia | Following the support for the independent review of the Food and Grocery Code of Conduct from the Treasurer, Woolworths has responded to the proposed mandatory code.
Woolworths said that healthy retailer and supplier relationships are vital to the success and prosperity of the Australian grocery industry, following the recent Independent Review of the Food and Grocery Code of Conduct.
As a foundation signatory to the Food and Grocery Code of Conduct, Woolworths has supported it becoming mandatory for all large retailers and wholesalers of groceries to engender public trust and to level the playing field for retailers and wholesalers alike.
A spokesperson for Woolworths said the Code should apply to all major retailers operating in Australia.
"This would include global retail giants such as Amazon and Costco, which have global revenues many times the size of Australian supermarkets, as well as large Australian retailers such as Bunnings and Chemist Warehouse, which also compete in grocery categories including everyday needs such as household products (e.g., cleaning), and personal care."
Woolworths said that customers have more choices than ever, in-store and online, to fill their shopping baskets and that consumers can, and do, shop widely. It added that suppliers also have more channels to market.
"We support the recommendation to retain fast and cost-effective avenues for dispute resolution, which will benefit suppliers, especially smaller ones."
Previous changes to the code, particularly the introduction of the informal complaints mechanism, have increased contact between the Woolworths Independent Code Arbiter and suppliers. This means issues can be promptly surfaced, investigated, and addressed while minimising any concern on the part of suppliers that may impact their commercial relationships.
Woolworths has published its Trade Partner Integrity Policy, which has clarified that Woolworths will not tolerate any reprisal against a Trade Partner for making a complaint under the Grocery Code. This has been closely monitored by Woolworths Supermarkets' senior management.
"We believe the Code's protections are best directed at supporting smaller suppliers. Large Australian and foreign-owned global Consumer Goods Companies supply over 70 percent of our packaged products by sales and more than 60 percent of sales across all products."
Woolworths' largest suppliers are sophisticated global companies, many times larger than Woolworths, and many of which supply "must-stock" brands and products.
At the same time, Woolworths acknowledged that smaller, generally local, suppliers can find dealing with a large retailer daunting, as pointed out by the Grocery Code Independent Review author, Chris Leptos and the Woolworths Code Arbiter, Helen McKenzie. For this reason, Woolworths has established a dedicated team to support small suppliers when they begin working with the company, which has received very positive feedback from a range of smaller businesses.
Woolworths said it would consider the interim report in detail and remain committed to continuing to engage constructively with Dr Craig Emerson and the Independent Review.
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