Groceries Code

Our team has a track record of success in bringing claims against supermarkets on behalf of suppliers under the Groceries Code. We have acted for suppliers on a number of arbitrations before the Groceries Code Adjudicator (“GCA”).

GROCERIES SUPPLY CODE OF PRACTICE

The Groceries Supply Code of Practice (“GSCOP”, “the Groceries Code” or “the Code” for short) is a code of conduct that applies to the big supermarkets in this country to ensure they do not abuse their relationships with suppliers.

It was brought into being in 2009 recognising that, such is the imbalance of power and dependency between suppliers and big supermarkets, that supermarkets can’t be trusted to regulate these relationships alone through their contracts.

Regardless of whether a supplier has a written contract and regardless of what any written contract says, a supermarket cannot terminate or significantly reduce the supply without “reasonable notice”. This is just one of the ways that the Code helps to protect suppliers – there are a number of other provisions governing payments from suppliers, forecasting errors, late payments by supermarkets and changes to the supply.

The Code has legal force, meaning that if a supermarket is in breach, a supplier can bring an arbitration before the Groceries Code Adjudicator, or the “GCA” for short.

There are time limits for bringing an arbitration. In most cases, these will be:

• 6 years from the Code breach to request an arbitration;
• 4 months from initiating a dispute to request an arbitration.

It’s important that suppliers take legal advice before they initiate a dispute and before these time limits are up.

As one of the prominent law firms in this area, we have a track record of success acting for suppliers against supermarkets on a number of arbitrations before the GCA.

If you are a supplier to a supermarket and want to know where you stand on a potential claim or dispute with a supermarket, please contact Harry Wells or John Lord .