Oct 18, 2024
Suppliers struggling to get cost price increase requests approved
According to a YouGov report commissioned by Groceries Code Adjudicator Mark White and released at the recent GCA conference in London, there is evidence that supermarket buyers have been using avoidance tactics or flat-out refusal to engage over requests for cost price increases from suppliers. In-depth evidence submitted as part of GCA’s annual survey found that some suppliers still faced continued high commodity prices and came up against a brick wall when it came to trying to get CPI requests approved.
The Grocer highlighted that 14% of suppliers claimed to have had their products delisted without reasonable notice in the past year, partly as a knock-on impact.
Gavin Ellison, research director at YouGov who compiled the report for White, said: “Cost recovery is still at an existential point for some suppliers who are reliant on expensive commodities such as cocoa and glass.”
He added: “Retailers that had previously granted CPIs are now using avoidance tactics or flat-out refusing to engage… “Retailers are continuing to ask for extensive evidence for cost justification, including ‘efficiency initiatives’.”
If you or your sales teams are locked into one of these discussions, did you realise that:
- Fair and lawful trading is at the heart of GSCOP (Groceries Supply Code of Practice),
- The GCA has published golden rules for cost price increases as part of GSCOP.
If you need to train your teams on how GSCOP can help and support them and are looking for easy access to training, then why not contact the British Brands Group which lobbies on behalf of suppliers of all sizes for both fair trading and effective brand protection.
To support your customer and legal teams, the British Brands Group provides a range of functional training with courses covering GSCOP, Competition law and compliance and Trading with Amazon, whether as a vendor or a seller.
Discover more about our training or book on a course:
GSCOP training
Competition Law and Compliance training
Trading with Amazon
