Terms to be imposed into supplier:retailer grocery contracts

On 4 February 2010 the Groceries (Supply Chain Practices) Market Investigation Order 2009 (the Order) comes into effect.

Major supermarkets, and possibly other retailers, will be obliged to have in place written terms with the majority of their suppliers of goods for resale, many of which terms are now prescribed by legislation.

Suppliers should urgently review their contractual strategy with retailers and be aware of  the new rights and the new levers that they have been given for negotiations. While retailers need to urgently review their contractual strategy with grocery suppliers and consider what changes they should be making.

Wragge & Co's competition, food and drink sector contract specialists have prepared an expert analysis on the impact of the Order, and practical actions to consider.