Metcash accused of supplier bullying
Metcash faces legal action over supplier payments and perks
Legal action has been launched against Metcash, Australia's third-largest grocery retailer, over supplier claims of "unconscionable conduct".
The case has been filed by two suppliers: Cofco Distributors and Fasttrack Logistics. According to the statement of claim Cofco and Fasttrack paid rebates of up to A$10.36m (A$8.1m) to Metcash. The companies allege this created cash flow problems and losses. The lawsuit also alleges Metcash asked the suppliers to fund business-class study tours to destinations including Japan, Las Vegas and Hawaii.
A spokesperson for Metcash told just-food that the group, which operates a wholesale business and IGA supermarkets, was unable to comment on pending legal action. "As the matter is before the courts I am not in a position to make a comment other than to say we will defend our position. When our defence is lodged you will have a detailed response."
In December, Australia's second largest supermarket Coles was hit with fines totalling A$10m for supplier mistreatment.
- Price an underlying tension across European FMCG
- Interview: UK trade body on Brexit's policy impact
- Danone's Q3 sales - what the analysts say
- Interview: UK trade body on the impact of Brexit
- It won't just be Unilever to push for Brexit hikes
- Nestle lowers outlook on "softer environment"
- UK announces "action plan" to drive food exports
- Bel takes majority stake in MOM Group
- Online snack seller Graze makes US retail debut
- Kraft Heinz: Innovation more important than ever
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Omega-3 in Food and Beverage:Time for a Reboot?
- Global Food Packaging: Innovating for Greater Convenience and Quality Image
- Packaged Food: Quarterly Statement Q3 2016
- Constellation Brands, Inc. (STZ) - Financial and Strategic SWOT Analysis Review