Brewers may benefit from supermarket inquiry

By Ewan Turney

- Last updated on GMT

Related tags: Good news, Retailing, Supermarket, Competition commission

Brewers may benefit from supermarket inquiry
The Competition Commission's report may yet prove good news for brewers and drinks suppliers. The Commission said it was not completely satisfied...

The Competition Commission's report may yet prove good news for brewers and drinks suppliers.

The Commission said it was not completely satisfied with the way retailers deal with their suppliers.

In particular, it is looking further into claims that suppliers are forced into bearing the burden for supermarkets' cheap deals.

"We are concerned that the transfer of unexpected costs and excessive risk on to suppliers is likely to affect their ability to invest and innovate, which could then adversely affect product quality and innovation for consumers,"​ said Inquiry chairman Peter Freeman.

The Commission will now consider changes to the Supermarkets Code of Practice which regulates the retailer-supplier relationship and may appoint an independent regulator to oversee agreements.

"Whilst the Code of Practice does have some effect, it does not entirely prevent the potential harm,"​ said Freeman.

Any such move would be welcomed by brewers who are increasingly being squeezed on price between a buying power sandwich of supermarkets and pubcos.

Figures unveiled exclusively by the MA​ last month revealed that Carling brewer Coors makes just 3.28p a pint.

Related topics: Legislation, Beer

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