Food and Grocery Code agreed by supermarkets and food industry
The Australian Food and Grocery Council (AFGC) and Australia’s two largest supermarket retailers, Coles and Woolworths, have reached an historic agreement on the terms of a food and grocery industry code of conduct.
The Food and Grocery Code establishes a clear set of principles relating to key aspects of trading relationships between retailers and suppliers and will provide greater certainty and clarity about dealings in the industry without adding complexity or cost in a fast moving consumer goods sector.
Key aspects of the Code include:
* Tough restrictions on retrospective and unilateral variations to grocery supply agreements;
* Greater transparency on the basis of shelf allocation for branded and private label products;
* Recognition of the importance of intellectual property rights and confidentiality in driving innovation and investment in new products; and
* A low cost and fast track dispute resolution mechanism.
Agreement on the terms of the Code is the culmination of many months of discussions between the parties and highlights constructive dialogue and goodwill across the sector. It is hoped other retailers and industry groups agree to the Code.
It is proposed that this food and grocery industry code will be prescribed by the Federal Government under the Competition and Consumer Act.
The agreement on the terms of the Code was reached today at the inaugural meeting of the Retailer and Supplier Roundtable in Canberra. The Roundtable is a food and grocery industry initiative to facilitate collaborative approaches on relevant issues.
This media release was originally published on the Australian Food and Grocery Council website.
~ Tuesday November 26