The Groceries Code adjudicator (GCA) is set to speak with supermarkets over alleged delayed payments.
Current GCA Mark White is to hold a series of meetings with retailers’ code compliance officers in coming weeks, as reported by The Grocer.
As well as the delays, White has said an increase in cost price increase (CPI) requests are risking the “survival” of some suppliers.
Last month, the GCA 2022 sector survey found that 26% of suppliers had experienced a refusal by a retailer to consider a request for a CPI or an unreasonable delay from the retailer in concluding the request.
It also said that this is the most raised issue in the GCA’s surveys over the last five years.
While the Groceries Supply Code of Practice (GSCOP) does not allow the adjudicator to step in over price concerns, he is able to act over unreasonable delays to payments.
This comes following seven “golden rules” published by the adjudicator earlier this year which all supermarkets voluntarily took up and included clear communication by retailers from the outset, as well as awareness and prioritisation of the possible greater impact on smaller suppliers.
“The GCA will be meeting the code compliance officers at the designated retailers in the coming weeks as part of his regular engagement with them,” a GCA spokesperson told The Grocer.
“Whilst price is not covered by the Code, he will be speaking to the retailers about how they are negotiating with their suppliers and whether they are following the GCA’s golden rules.
“Concerns continue to be expressed about how the implementation of agreed price rises is being delayed, which could risk the viability of suppliers, and how buyers are engaging with their suppliers during these difficult negotiations.”
