Coles supermarket will be introducing a 14-day payment policy for its small suppliers which provide up AUD $1 million in product each year.

John Durkan, Chief Executive of Coles, said it is a move intended to help small Australian businesses.

The new payment policy is expected to affect over 1, 000 businesses and will come into place 1 July 2017. Those who are already on payment policies shorter than 14 days will not have their payment periods extended.

Coles decision to help out it suppliers comes at a time when suppliers are relied upon to help produce private label products.

The supermarket however has a history of prior tensions with suppliers previously reported by Australian Food News, see;

• Coles admits to threatening suppliers, denies allegations of unconscionable conduct
• Kennett’s arbitration forces Coles to refund its suppliers

Small business ombudsmen welcomes news

The Australian Small Business and Family Enterprise Ombudsman (ASBFEO), Kate Carnell, welcomed the news from Coles.

“I congratulate Coles’ management for their leadership on this issue, and call on other big businesses to follow Coles’ lead and reduce their own payment times to small business suppliers,” Carnell said.

The ASBFEO is currently undertaking an inquiry into payment times and practices in Australia, with preliminary findings indicating small businesses have little – if any – power to influence payment terms in their agreements with larger companies.

“The inquiry has found that payment times have become worse in the last 12 months, with large multi-national companies being the worst offenders.  In fact, some large companies have moved payment terms to as long as 120 days,” Carnell said.

Coles Brand Roadshow coming to Sydney

Those food and beverage suppliers interested in having their products stocked in Coles supermarkets can attend the Coles Brand Roadshow held in Sydney 21 March 2017.

The Roadshow is hosted by Coles, the NSW Government and Food Innovation Australia Limited.

The day will cover the Coles brand vision and suppliers will have an opportunity to network with key Coles team members including Coles Brand General Manager, Michael Lovsin, Head of Coles brand Mark Field along with brand managers, developers and technologists from Coles.

Food and agribusinesses will also have an opportunity to secure a one-to-one meeting with a Coles Brand managers (interest can be registered here link). You will be notified by email of your appointment invitation time before the event.

Coles Brand National Roadshow – Sydney

Date: Tuesday 21 March 2017

Time: 9.30am to 2.30pm

Location: CSIRO Ag and Food Research Centre, Building 53, 11 Julius Avenue, North Ryde, NSW 2113

Registrations close: Tuesday 14th March 2017

Note: This is a free event, however space is limited, so registration is essential

More information: www.fial.com.au

All questions can be directed to info@fial.com.au.

 

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