Supermarket dirty deeds at an end?

[Fifichef]

GOOD NEWS about supermarkets. The government has agreed to appoint a regulater to keep an eye on their dirty deeds. Lets hope it goes far enough.

news.bbc.co.uk/1/hi/business/8457450.stm

Yes I hope so, but don't feel too optimistic about this tbh. No-one, not even the government, can control the big three or five. They will do what they want until their customers leave them. And we won't do that because we need cheap food, especially now.

Sorry. But at least it's something. And maybe it will work.

Erm, that link is a year old. The Conservatives would be quoting "too little too late" against their own actions.

I understand your negative reactions and also that the SM's with value for money are what alot of people need at this time. The problem is that they have become too controlling in many aspects of everyday life.
It's easy to give up and let them bulldoze their way on but any thing that can be done to limit the damage is a good thing. In most peoples minds it will be impossible to reverse some of the damage already done. I for one am going to stand up for the consumer - 'every little helps' hopefully!

This is intended to protect the supplier. I'm one, and if I capitulated every time the supermarkets I supplied hit me for cheaper prices or extra promotions I'd be bankrupt. Many suppliers opt to grimly hold on to an account earning nothing just for the sake of it - and that's not a viable strategy

The consumer gets the benefit of aggressive supermarket central buying policies... they're not the ones that need protecting.

Chil what do you do? Is it possible to stand firm against them? I veer between being a lazy shit terrified at my lack of money and acknowledging that if we are indeed "all in it together" then I should support suppliers (by supporting box schemes, small businesses, etc). I know I have a responsibility as a consumer to retain diversity but it is tough when you're poor and work all hours.

Yes - humble apologies - I have just realised the error of my out of date link!!
I received a letter yesterday from Daniel Kawczynski MP yesterday with a bit more up to date news and when I can work out the link I'll post it on here. During questions to the PM on 1st Dec last year he asked a question about the SM ombudsman.

Chil1234 - long time no hear. My understanding is that this regulator's brief is mainly to ensure that the farmers and producers are not abused. My concern also is that consumers are not mislead by supermarket tactics - mainly in the labelling department. None of the regulation will go far enough - we would be naive to think that. There should be many more objectives for the regulator that I'm sure will not be covered.

I also know a bit about supplying to the top grocery accounts. The whole process is totally screwed up. Worse than you would imagine.

It is the massive problem facing us all that organisations have grown so big that they can essentially veto the government. The government can try all they like to control Tesco and the way they work and buy, but it is too late.

Allegedly, Tesco break the competition laws every day and if the government wanted to they could prosecute them today. They don't and they won't. This will make no difference.

I sell a particular range within a category where 90% of the trade is via the supermarkets. Being brutally honest, if I relied on the independent retail trade I'm afraid I wouldn't have much of a business. :) Standing firm is a big part of it but it's crucial to convince them to work as a partnership ie. pay me enough to invest in developing the product long-term.

As a canny consumer, just make sure that you're getting value for money rather than homing in on a cheap price. All suppliers know ways to cut corners when the screws are on... you get what you pay for

Quite - most/all suppliers who have any decent level of business rely on the supermarkets and could never rely on the independent retailers. And those that are not in with the supermarkets, want it.

Yet, even companies who are selling £ 100m + a year to single supermarket accounts are still held over a barrel, and allegedly engaged in unlawful behaviours such as price fixing.

I've never personally experienced price-fixing. Prices for similar products often gravitate to the same level because supermarkets all benchmark each other and don't want to be out of line. When ASDA took banana prices down last year, everyone else followed and it was a brave supermarket that was the first to put them back up! But that's different to out and out price-fixing.

I wish I could write more, but I don't want to out myself and the suppliers/supermarkets that I know about.

Hi to you all - hope you had a good weekend.
I've been unable to work out how to do a link for my letter so I'm going to physically type it in here. Thought it might interest you.

Letter from Daniel Kawczynski MP

13th Jan'11

Dear Fifi

Thank you for contacting me about the establishment of an ombudsman to oversee the operation of the grocery market.

In it's Programme for Government, the new government set out it's commitment to establishing an ombudsman to proactively enforce the Grocery Supply Code of Practice(GSCOP).

I am strongly supportive of this commitment and am pleased that, in responding to it's consultation on the establishement of such an ombudsman, the government has announced that it will bring forward new legislation in order to set up a Groceries Code Adjudicator (GCA). However, I am afraid that it is too early to know whether the Bill can be introduced in this session of the Parliament or the next.

It is my understanding that the GCA will have the power to receive complaints about the way the supermarkets interact with theit primary suppliers from anyone in the supply chain at home or overseas, and deal with them anonymously. This includes farmers who may not directly supply the large supermarkets.

The businesses that grow and produce our food are worth more than £80 billion to the economy and employ 3.6 million people - and they need a fair market. The new GCA will help to strike a balance between food producers getting a fair deal, and supermarkets ensuring their customers can get the high quality food they want at a price they can afford.

I take a keen interest in this issue and am lobbying the Prime Minister to bring this legislation in as soon as possible.

I do hope that this is useful, and thank you again for taking the time to contact me.

Yours....

Daniel Kawczynski MP

Your comments please.