Aldi jumps Woolworths to sign Grocery Code of Conduct

Aldi is the first major supermarket group to sign and implement the Food and Grocery Code of Conduct, after it announced the initiative on June 15, beating competitor Woolworths, which revealed last week it was signing up to the Code.

An Aldi spokesperson said it has always supported the concept of a strong and sustainable Australian grocery industry for retailers and suppliers.

“Aldi’s commitment to opt in to and implement the Code before any other major supermarket is testament to our business values and dedication to quality supplier relationships.” the retailer said.

“The spirit of the Code reflects Aldi’s current practice with suppliers: forging long term, sustainable relationships and working in partnership to provide Australian shoppers with high-quality products at permanently low prices.”

Aldi said it has long been recognised for its excellent relationships with suppliers and that the benchmark industry supplier survey consistently rates Aldi as retailer of the year, with the highest net rating for quality of relationship.

Existing Aldi suppliers will transition to the new terms from August 3, 2015 and new suppliers will agree to the new terms from June 15.

Aldi now operates 372 stores nationally and is building a South Australian warehouse, with plans to open in October 2015.

Last week, CEO of the Australian Food and Grocery Council, Gary Dawson, congratulated Woolworths for agreeing to the Code as an industry-led solution to problems impacting on suppliers and consumers.

“It was the willingness of Coles and Woolworths to come to the table and develop a meaningful Code that has made it possible,” Mr Dawson said.

“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 unnecessary complexity or cost.”

He added that the Code has been tabled in Parliament as a regulation under the Competition and Consumer Act 2010.

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