Woolworths signs up to the Food and Grocery Industry Code of Conduct

Woolworths’ announcement today that it is signing up to the Food and Grocery Industry Code of Conduct is another step towards establishing greater transparency and certainty for food and grocery suppliers in their transactions with supermarkets, said the Australian Food and Grocery Council (AFGC).

AFGC CEO Mr Gary Dawson welcomed the announcement by Woolworths CEO Mr Grant O’Brien today as integral to achieving a meaningful and enforceable Code that will drive behavioural change to encourage fair and effective competition in the long term interests of consumers.

“We congratulate Woolworths for agreeing to the Code as an industry-led solution to problems impacting on suppliers and consumers,” said Mr Dawson. “Woolworths has been instrumental in establishing this Code with the AFGC.  It was the willingness of Coles and Woolworths to come to the table and develop a meaningful Code that has made it possible.

“Signing onto the Code marks Woolworths commitment to fair dealing and to improving the operation of one of the most dynamic and competitive sectors of the economy – the fast moving consumer goods sector.

“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.

“The Code has been tabled in Parliament as a regulation under the Competition and Consumer Act 2010 to give it real teeth,” said Mr Dawson

Key aspects of the Code include:

  • Tough restrictions on retrospective and unilateral variations to grocery supply agreements;
  • Greater transparency on the basis of shelf allocation for branded and private label products;
  • Recognition of the importance of intellectual property rights and confidentiality in driving innovation and investment in new products; and
  • A low cost and fast track dispute resolution mechanism.



AFGC Media Contact: James Mathews 0407 416 002