Aldi comes to the party as grocery code tabled
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Australian Small Business Minister Bruce Billson has won support for the grocery industry code of conduct from discounter Aldi but is disappointed that wholesaler Metcash has agreed to adopt elements of the code rather than sign up in full.
The code, which was tabled in Parliament on Monday and takes effect on Tuesday, prohibits certain types of unfair conduct by retailers and wholesalers in their dealings with suppliers and provides a clearer framework for retailer and supplier negotiations.
Aldi, which was originally reluctant to sign the code until it was confident it would not increase costs and push up prices for consumers, said on Monday it would sign up to the code as a party.
Questions & Answers
Q.What is the purpose of the new grocery industry code of conduct?
What is the purpose of the new grocery industry code of conduct?
The code aims to prevent unfair behaviour by retailers and wholesalers when dealing with suppliers. It also provides a more defined structure for discussions between retailers and suppliers, taking effect on Tuesday.
Q.Why was Aldi initially hesitant to sign the grocery code of conduct?
Why was Aldi initially hesitant to sign the grocery code of conduct?
Aldi was reluctant to sign the code because it wanted to be sure it would not lead to higher costs for the company, which could then result in increased prices for consumers.
Q.What is Metcash's position regarding the new grocery code?
What is Metcash's position regarding the new grocery code?
Wholesaler Metcash has agreed to adopt only certain aspects of the code. The Small Business Minister, Bruce Billson, is disappointed that Metcash has not committed to signing up to the code in its entirety.