Grocery Supply Code of Practice

General Information

The Groceries Supply Code of Practice (GSCOP) came into force on 4th February 2010. It applies to all Grocery Retailers with grocery sales over £1 billion and requires them to submit an annual report to the Competition and Markets Authority and the Groceries Code Adjudicator (GCA).

Our last annual report was submitted in April 2019 covering the period 1st January 2018 to 31st December 2018.

Code-related Developments During 2018

The GCA Annual Survey 2018 revealed that Aldi was ranked top by Suppliers in terms of overall compliance with the Code for the 5th year in a row. Overall, 97% of Aldi Suppliers surveyed said Aldi complied with the Code ‘Consistently or Mostly Well’. Of these, 58% rated us at ‘Consistently Well’, 15% better than the next placed Grocery Retailer.

We are incredibly proud of these results and appreciate the feedback of all of our Suppliers who took part. Equally though, we recognise we can’t afford to become complacent. Trading conditions have been challenging for Retailers and Suppliers alike, competition is intense and uncertainty over Brexit during 2018 added further pressures.

We have therefore invested more focus on how we can continue to improve on what we do, and how we do it, to promote the long-term mutually beneficial supply relationships that we value.

During 2018 we have:

• Held a Category Immersion Event to share our strategy and allow Suppliers to get even closer to their buying teams

• Reviewed and revamped the GSCOP training our Primary and Senior buyers receive on joining our Buying Teams, and on which they are refreshed on annually

• Trained 193 colleagues using these new materials

• Commenced a review and refresh, where necessary, of a variety of GSCOP-related documentation and support material; whether that is to help Suppliers understand their rights or provide clarity to Aldi Colleagues on their responsibilities related to the Code

• Continued to issue a twice yearly GSCOP Supplier newsletter; highlighting important developments under the Code, the work of the GCA and the importance of Suppliers’ understanding the protections the Code provides them

• We have continued to have regular meetings and dialogue with the GCA. The collaborative approach the GCA adopts is welcomed by Aldi as a means to support continuous improvement utilising best practice from across the sector

Supplier Disputes

Aldi fully supports the requirements of GSCOP which are entirely consistent with the Aldi core values of Consistency, Simplicity and Responsibility. We pride ourselves on building long-term and mutually beneficial relationships with our Suppliers, and compliance with GSCOP firmly underpins this.

However, disputes can occur in any commercial relationship from time to time. Where these occur, we would encourage Suppliers to discuss any issues directly with their Buying Team in the first instance, so we have an opportunity to resolve them as quickly as possible. Where an issue can’t be resolved, Suppliers have the right to contact the Aldi Code Compliance Officer on any Code-related issue, raising a formal dispute under the Code if they so choose. Having carefully considered the circumstances, we will always seek to agree fair and reasonable resolutions to issues which our Suppliers have raised with us.

During 2018, two formal disputes in respect of alleged breaches of the Code were raised by our Suppliers. One of these was resolved during the reporting period with the second still in the course of being investigated by the Aldi CCO at the end of the reporting period, having been raised in December 2018. Three further issues raised by Suppliers were handled informally, and in all cases a mutually acceptable resolution was agreed with the Supplier.

Code Compliance Officer Details

If you are a current Aldi supplier and you have any GSCOP-related queries, please feel free to contact Chris Young, Aldi’s Code Compliance Officer using the details below:

Email Address: - CCO@aldi.co.uk

Telephone Number: - +44 (0)1827 710507

Contact details for Christine Tacon, the Groceries Code Adjudicator, can be found at: www.gov.uk/government/organisations/groceries-code-adjudicator