Suppliers on edge after Woolworths wins cash-demand case
The grocery industry is wary of the consequences of a Federal Court ruling that Woolworths did not behave unconscionably by demanding as much as $60 million in cash from suppliers to plug a profit shortfall.
The decision has left suppliers on watch, particularly as the big chains cull product lines, said Gary Dawson, chief executive of the Australian Food and Grocery Council. The council represents packaged food, drink and grocery manufacturers.
"We will obviously keep a close eye on how the retailers respond to this judgment," Mr Dawson said. "We think it would be pretty appalling if it were seen as a green light to do the same thing again." Sydney Morning Herald – Read more…
The decision has left suppliers on watch, particularly as the big chains cull product lines, said Gary Dawson, chief executive of the Australian Food and Grocery Council. The council represents packaged food, drink and grocery manufacturers.
"We will obviously keep a close eye on how the retailers respond to this judgment," Mr Dawson said. "We think it would be pretty appalling if it were seen as a green light to do the same thing again." Sydney Morning Herald – Read more…
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