Dairy Price Fixing Highlights Market Power of Retailers
11 Dec 2007
ACS (the Association of Convenience Stores) has reacted to the news that supermarket firms Sainsbury’s and Asda, and Dairy firms Dairy Crest and Wiseman, have admitted being a part of a dairy price fixing group, ACS has highlighted the worrying implication of this for future competition in the market.
James Lowman, ACS Chief Executive said; “This case proves that highly concentrated markets, where a few large retailers hold sway over suppliers, threaten the interests of the consumer. We should see the scandal over milk pricing as a symptom of the current grocery market, and this must be a wake-up call to the Competition Commission, who are proposing to allow these retailers to continue to hold substantial market power.
“It is also becoming increasingly clear that suppliers did not benefit from this price fixing in the way that the superstore PR machines would have us believe. The way to protect suppliers is to have greater transparency in the supply chain, or at very least to have a supermarket code of practice that works and that is pro-actively and independently enforced.”
ACS will continue to push for action to be taken to promote competition in the Grocery market.
Contacts:
Shane Brennan Public Affairs and Communications Manager
01252 515001/ 07921 372 978
Nina Collins Communications Coordinator
01252 515001
Michael Saxton/ Julie Kirby Grappa PR
020 7602 9222
Notes to Editors:
1. ACS (Association of Convenience Stores) is the voice of local shops, representing over 33,000 convenience stores. ACS helps local shops thrive through lobbying, support and networking opportunities
2. OFT statement; http://www.oft.gov.uk/news/press/2007/170-07
James Lowman, ACS Chief Executive said; “This case proves that highly concentrated markets, where a few large retailers hold sway over suppliers, threaten the interests of the consumer. We should see the scandal over milk pricing as a symptom of the current grocery market, and this must be a wake-up call to the Competition Commission, who are proposing to allow these retailers to continue to hold substantial market power.
“It is also becoming increasingly clear that suppliers did not benefit from this price fixing in the way that the superstore PR machines would have us believe. The way to protect suppliers is to have greater transparency in the supply chain, or at very least to have a supermarket code of practice that works and that is pro-actively and independently enforced.”
ACS will continue to push for action to be taken to promote competition in the Grocery market.
Contacts:
Shane Brennan Public Affairs and Communications Manager
01252 515001/ 07921 372 978
Nina Collins Communications Coordinator
01252 515001
Michael Saxton/ Julie Kirby Grappa PR
020 7602 9222
Notes to Editors:
1. ACS (Association of Convenience Stores) is the voice of local shops, representing over 33,000 convenience stores. ACS helps local shops thrive through lobbying, support and networking opportunities
2. OFT statement; http://www.oft.gov.uk/news/press/2007/170-07