Relationships between retailers and suppliers are often strained. That’s especially true in markets where a small number of chains hold the lion’s share of sales.
Case in point: Australia, where two companies–Coles and Woolworths–dominate.
Suppliers in the land down under have long chafed at the duopoly’s hold over their businesses. But a new voluntary code of conduct might help.
The code, developed over the past 14 months will, among other things, prohibit Woolworths and Coles from using suppliers’ intellectual property to develop their own private-label products.
Retailers will also no longer be able to charge suppliers for products stolen from supermarkets.
The code was developed was negotiated by the Australian Food and Grocery Council with Coles and Woolworth’s and is based on the UK Grocery Code of Conduct
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