Food manufacturers who supply retail chains in Slovakia will be protected against “unfair conditions in contracts”, according to new legislation introduced by the country’s government.
It is understood that the new regulation, an amendment to an existing law, is expected to come into effect in April, after receiving parliamentary approval.
The amendment is designed to toughen the existing legal framework protecting suppliers from retailers making “unreasonable” demands.
According to the Slovak Ministry of Economy, the move is necessary to protect suppliers from various retailer demands – including requiring manufacturers to fund advertising.
The move has been welcomed by food processors, particularly the Agricultural and Food Industry Chamber.
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By GlobalDataHowever, retailers remain more sceptical. “We consider the [entire] law unnecessary because it does not solve anything”, Lenka Juríková, a spokesman for Ahold Retail Slovakia, told just-food.