Exclusive Julian Hunt Iceland has reacted strongly to complaints from suppliers that the frozen food specialist has been employing strong arm tactics as it tries to negotiate better terms. Suppliers have contacted The Grocer to voice their concerns. One national account manager told us he had been asked for a one off cash payment that amounted to more than double the net profit his company made on its business with Iceland. None of these suppliers wanted to be named. An Iceland spokeswoman confirmed the company was meeting with suppliers to discuss improved terms. But she added: "As these discussions are to gain mutual benefit, we are both surprised and disappointed that any supplier feels aggrieved to the point of contacting The Grocer ­ particularly as we pride ourselves on the close and professional relationship we have with suppliers." The discussions under way were all about trying to improve Iceland's value proposition and increase volumes through its stores, explained the spokeswoman. She added: "The main drivers behind volume and sales improvement take many different guises: increased promotional activity, increased advertising, improved availability and many others." - Iceland has completed the Booker meger ­ see p8. {{NEWS }}

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