Supermarkets Accused of Short-Changing Suppliers on Packaging

Another supplier told the CC that different specifications for similar packaging formats were not always reflected in the price paid by the supermarket.

13/07/07 Supermarkets are failing to reimburse suppliers for changes to packaging, according to new submissions to the Competition Commission's (CC) grocery market enquiry.

Anti-poverty group Action Aid told of a South African grape producer that was forced to change its packaging from open to sealed bags, but the price stayed "exactly the same" and "wasn't even discussed".

As well as the increased cost of changing formats, productivity fell because it took 20-30% longer to close the bags.

Action Aid also told of an Indian cashew nut manufacturer that found itself "stuck with an order" because a supermarket decided to change the packaging material after the product had already been packaged.

Another supplier told the CC that different specifications for similar packaging formats were not always reflected in the price paid by the supermarket.

And a UK farmer criticised supermarket promotions for creating "a mountain of unnecessary packaging", for which they should be charged.

"Supermarkets should be made to pay towards the costs of the recycling problem," the farmer said.

The CC plans to issue its provisional findings in September and publish a final report by February 2008.