The government is to consider extending the role of Groceries Code Adjudicator Christine Tacon to cover a raft of further food and drink retailers, wholesalers and hospitality companies, The Grocer can exclusively reveal.
The Department for Business, Energy & Industrial Strategy is set to launch its consultation into the role and remit of the GCA, in what sources expect to herald a “tidal wave” of calls for it to be extended to cover the relationship between food producers and farmers.
However, The Grocer understands influential sources are pushing ministers instead to look at a major extension of the remit further into the retail and wholesale sectors of the industry.
If such a move goes ahead it could see a host of companies, including the likes of Boots, B&M Stores, Holland & Barrett, Ocado and Poundland brought under the jurisdiction of the GCA for the first time.
There are also calls for Tacon’s remit to include the likes of wholesale giant Booker, foodservice companies such as Compass and also operators in Northern Ireland, including Dunnes and Musgrave.
“There is a strong case to extend the remit to cover some or all of these companies, some of whom may actually have a turnover approaching £1bn anyway but who certainly are key players in the food and drink industry and whose actions have a major impact on suppliers. The idea would be to create a much more even playing field across wider sections of the industry.”
BEIS’ review will look at whether the role of the Adjudicator has been effective since it was launched in 2013, with the original remit due to run out in May next year.
The Grocer understands the GCA has received many complaints from suppliers about possible breaches of the Groceries Supply Code of Practice relating to companies that are not currently covered by Tacon’s office.
A source close to the consultation said: “There is a strong case to extend the remit to cover some or all of these companies, some of whom may actually have a turnover approaching £1bn anyway but who certainly are key players in the food and drink industry and whose actions have a major impact on suppliers. The idea would be to create a much more even playing field across wider sections of the industry.”
Sources are also suggesting the government will look at whether Amazon will eventually have to be covered by the Code because of its growing importance in the industry.
Business minister Margot James is overseeing the consultation, which follows repeated promises by the government, including a pledge by former prime minister David Cameron, that it will look to extend the role to cover the farm industry.
However, Tacon herself had been among those resisting the idea of policing 8,000 suppliers, which the Competition & Markets Authority has warned would require a fresh investigation and possibly also primary regulation, which could take years to get off the ground.
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