Welcome from the Groceries Code Adjudicator

Edition 26: News from the Adjudicator (PDF, 323KB, 2 pages)

I am delighted that the analysis of the GCA 2021 survey is now complete and I can report on the detailed findings which tell a very positive story. As I revealed in my last newsletter the response to the survey was tremendous – up 60% on last year’s record high and as a result I have an extremely comprehensive view of the sector, how the retailers are performing and suppliers’ concerns for the months ahead.

The top-level message is that suppliers are continuing to experience real progress in the behaviour of the retailers I regulate. As well as a further fall in the numbers who experienced Code-related issues in the past year, suppliers reported more retailers had improved their Code-related behaviour overall in the year with suppliers reporting eight out of 13 having positive net improvement scores (performing better minus performing worse) compared to six in 2020. Only three retailers – Asda, Iceland and Ocado – received net negative improvement scores.

Each year suppliers have also given an overall assessment of how they believe each retailer complies with the Code. This provides a clear measure for the GCA to benchmark progress. Every year since 2014, when the percentage range for mostly or consistently complying with the Code was between 58% and 90%, the survey has shown marked improvement. In 2021 suppliers see more retailers performing at high levels. It really is now extremely tight at the top with more than half the retailers scoring 95% or more (compared with one in 2020). Iceland was the sole performer below 90% but on the positive side the retailer has risen 5% in the year to 86%. I believe it is a testimony to the Code’s positive influence that we have seen such results in a year of massive challenge for the sector.

New top retailer

For the first time in the history of the survey there is a new name at the top of the table. Congratulations to Sainsbury’s which scored an all-time high of 98%, but close behind were Co-op and Aldi on 97%. This graphic shows the 2021 overall compliance ranking of retailers by suppliers. Aldi, which has been the top-ranked retailer for the past seven years, did rank highest when suppliers were asked whether the retailers conducted trading relationships fairly, in good faith and without duress.

The story of improvement also ran through other elements of the survey. In terms of issues in supplier language, the percentage reporting having experienced the issue reduced in all cases except one – requests for lump sum payments relating to better positioning in a retailer’s virtual store (not in relation to a promotion) – which rose by 1%.

This year I was keen to see how retailers were performing in two areas where there have been recent developments. I asked suppliers two new questions:

• whether they had experienced Brexit-related retrospective or unilateral changes to supply agreements – which was reported by 8% of suppliers (placing it joint 6th) and

• whether they had experienced difficulty in securing appropriate Electronic Point of Sale/warehouse data to validate timely payment from the retailer – which was reported by 6% of suppliers (placing it joint 11th).

Looking ahead to the new challenges

I also asked suppliers to comment on what they thought would be the main issues in the next six to twelve months. The overwhelming response to this question was Brexit – of 958 suppliers who provided a comment, 400 mentioned Brexit. Other strongly-identified issues were Covid-19 (mentioned by 255) and price (mentioned by 143), followed by range reviews, forecasting and de-listing. My message to suppliers is that clearly we are in a period of great change and they should be prepared to engage with retailers at pace as well as let me know if there are any issues which they would like to discuss. I will be monitoring any Code-related issues closely.

A final pleasing result was to see suppliers responding to the message that the GCA can be trusted to treat information in confidence. This year there was an increase of 12% in the number of suppliers saying they would raise an issue with the GCA and 78% told me they knew the GCA operates confidentially. As a reminder I have established a platform hosted by a third party – Tell the GCA – so suppliers can provide information to me confidentially if they wish to.

Work on the survey continues. Each of the retailers will be receiving individual packs highlighting those areas where they need to do more work and I will be discussing the findings with the Code Compliance Officers and the Chairs of the retailers’ Audit Committees. YouGov has also begun to carry out a number of deep dive interviews with several suppliers to explore some topics in more detail. Many thanks to suppliers who responded to the survey agreeing to further contact. You may hear from YouGov shortly.

Mark White

Save the Date – Meet the GCA

Mark White will be attending the Food and Drink Expo at the NEC Birmingham on 6 and 7 July. He will be touring the exhibits to meet suppliers as well as taking part in a session with The Grocer Editor Adam Leyland at 3pm on 6 July at The Grocer Talking Shop Live focusing on the Groceries Supply Code of Practice in the Post-Covid-19 World.

On 7 July, Mark will be speaking at a breakfast for suppliers at the Expo. Join him at 9.15am for coffee and croissants also at The Grocer Talking Shop Live to hear how the Code can benefit your business and ways to be Code confident as well as the latest developments in the sector.

As Covid-19 restrictions begin to lift the Adjudicator intends to meet as many suppliers as possible. Check out the GCA website for announcements of upcoming events.

If you would like to get in touch with the GCA and his team to tell him about your experiences, please email Enquiries@GroceriesCode.gov.uk or call 020 7215 6537. You can also report issues via the confidential third-party platform www.telltheGCA.co.uk

2021 Survey – Press release (PDF, 268KB, 3 pages)

9 June 2021

The 13 retailers regulated by the Groceries Code Adjudicator have continued to improve their behaviour towards suppliers in the face of Covid-19 and Brexit, the annual GCA survey has found.

Suppliers have reported the highest level of compliance with the Groceries Supply Code of Practice by UK supermarkets, surpassing even the record results of 2020.

According to the eighth GCA annual survey which takes a comprehensive look at the groceries sector, retailers are performing at a high level. As well as a new record low in the number of suppliers who experienced Code-related issues in the past year (down to 29% compared to 36% in 2020), suppliers reported a fall in all issues covered by the Code with one exception.

When described in supplier language only requests for lump sum payments relating to better to better positioning in a retailer’s virtual store (not in relation to a promotion) increased as a concern – by 1%.

Groceries Code Adjudicator Mark White said: “This year suppliers responded in record numbers to the annual survey, making up 2398 of the overall total of 2598. They provided frank answers to my questions and as a result I have an extremely comprehensive view of the sector, how the retailers are performing and suppliers’ concerns for the months ahead.

“I believe it is a testimony to the Code’s positive influence that we continue to see such significant improvements in a year of massive challenge for the sector.”

As in previous years suppliers were asked to give an overall assessment of how they believe each retailer complies with the Code to provide a clear measure for benchmarking progress.

Mr White said: “Every year since 2014, when the percentage range for mostly or consistently complying with the Code was between 58% and 90%, the survey has shown marked improvement.

“In 2021 suppliers see more retailers performing at high levels. It really is now extremely tight at the top with more than half the retailers scoring 95% or more (compared with one in 2020). Iceland was the sole performer below 90% but on the positive side the retailer has risen 5% in the year to 86%.

“For the first time in the history of the survey there is a new name at the top of the table. Congratulations to Sainsbury’s which scored an all-time high of 98%, but close behind were Co-op and Aldi on 97%.”

Aldi, which has been the top-ranked retailer for the past seven years, did rank highest when suppliers were asked whether the retailers conducted trading relationships fairly, in good faith and without duress.

This year suppliers were asked some new questions to allow the GCA to monitor performance in two areas where there have been recent developments

• Whether they had experienced Brexit-related retrospective or unilateral changes to supply agreements – which was reported by 8% of suppliers (placing it joint 6th) and

• Whether they had experienced difficulty in securing appropriate Electronic Point of Sale/warehouse data to validate timely payment from the retailer – which was reported by 6% of suppliers (placing it joint 11th)

They were also asked to comment on what they thought would be the main issues in the next six to twelve months. The overwhelming response to this question was Brexit – of 958 suppliers who provided a comment, it was mentioned by 400. Other strongly-identified issues were Covid-19 (mentioned by 255) and price (mentioned by 143), followed by range reviews, forecasting and de-listing.

Mr White said: “My message to suppliers is that clearly we are in a period of great change and they should be prepared to engage with retailers at pace as well as let me know if they are experiencing any issues. I will be monitoring any Code-related issues closely”

“A final pleasing result was to see suppliers responding to the message that the GCA can be trusted to treat information in confidence. This year there was an increase of 12% in the number of suppliers saying they would raise an issue with the GCA and 78% told me they knew the GCA operates confidentially.

“Building trust has been an important focus for me in my early days in the role and I have taken action such as establishing a platform hosted by a third party – Tell the GCA – so suppliers can provide information to me confidentially if they wish to.”

Each retailer will now receive company-specific analysis of the survey broken down by Code issue to help them identify and understand areas for further improvement.

Notes to editors:

• The survey was carried out between 11 January and 21 February 2021 by independent polling company YouGov.

• This is the eighth annual GCA and each year has shown a fall in the number of suppliers reporting experiencing a Code-related issue as the figure below shows:

• Suppliers who wish to report a Code-related issue confidentially to the GCA can do so via a platform hosted by a third party – www.telltheGCA.co.uk

London’s first dedicated detox unit for homeless people is set to open on 14 June to help save the lives of some of the city’s most vulnerable people and provide them with an avenue off the streets for good.

The Addiction Clinical Care Suite, based at St Thomas’ Hospital in Lambeth, will plug a known gap in treatment facilities for homeless people dealing with serious alcohol and substance dependence. Its location in a hospital setting will enable patients to receive the wide range of care needed to treat the complexity of health problems facing those living on London’s streets.

This vital new service is being provided thanks to a unique pan-London partnership among the capital’s leading public bodies.

Public Health England (PHE) London led the creation of the project with the Greater London Authority, Guy’s and St Thomas’ NHS Foundation Trust and London’s borough councils after funding was awarded by central government. The project was then commissioned by the City of London Corporation before St Thomas’ Hospital was chosen to deliver the service.

As well as supporting people who sleep rough to safely withdraw from alcohol and drugs as part of the first steps in a treatment journey, the service will also provide peer support, groups, and activities alongside a range of other initiatives focusing on stopping smoking, healthy eating, essential screening, vaccinations and mental wellbeing.

It includes a holistic support programme, with access to psychiatrists and psychologists to help patients begin a recovery from life on the streets and harmful substance use.

The intention is to meet immediate needs while providing opportunities for long term change, contributing to ending rough sleeping and tackling entrenched health inequalities.

The service is funded through a combination of grants from the Ministry of Housing, Communities and Local Government and local authority treatment budgets. Referrals will come from across London and local authorities will ensure that people supported by the service have somewhere suitable to go after their detox period has been completed.

This is the first of several new pan-London substance misuse services due to open this year thanks to the PHE-led partnership and commissioning from the City of London. These initiatives will give people who sleep rough a life-saving opportunity to access valuable treatment services that have been designed to meet their needs and specific vulnerabilities.

Alison Keating, Head of Alcohol, Drugs and Tobacco at PHE London, said:

We are delighted to have been able to lead on the creation of this fantastic new unit that will provide life-changing and life-saving treatments to some of London’s most vulnerable homeless people.

Joint working with some of the city’s leading organisations has helped us to provide this avenue off the streets and out of addiction. We will continue to work across organisational boundaries to build on this innovation and make a real and sustained difference to London’s most vulnerable populations.

The Mayor of London, Sadiq Khan, said:

I am delighted to be supporting this landmark new service, providing vital support to some of the most vulnerable Londoners.

The window for helping those with addictions can often be incredibly small and ensuring immediate access to appropriate detoxification and treatment can be life changing. The health issues experienced by people who are homeless are often complex and entrenched, there are no quick fixes.

Therefore, it is vital we continue to invest in addiction support and substance misuse therapies to address these life-threatening health inequalities.

Dr Ian Abbs, Chief Executive Officer of Guy’s and St Thomas’ NHS Foundation Trust, said:

We are very proud to be part of this new service at St Thomas’ Hospital, which is a lifeline to people living in incredibly difficult circumstances.

Our expert medical and nursing teams will work with mental health colleagues to provide specialist care in one suite.

Getting this right will mean we can give this group of patients a chance to live healthier and happier lives.

Chairman of the City of London Corporation’s Community and Children Services Committee, Ruby Sayed, said:

Rough sleeping is the most acute and visible form of homelessness, and an issue that remains a challenge not only in the Square Mile, but right across London and indeed the country.

Every single person has the right to feel safe, secure and protected. The new facility at St Thomas’ Hospital will provide a holistic support programme, allowing people to begin a recovery from life on the streets and harmful substance use.

In collaboration with our partners, we are proud to support some of the most vulnerable people in our society.

Eddie Hughes MP, Minister for Rough Sleeping and Housing, said:

We know that one of the many issues facing rough sleepers, or those at risk of homelessness, is drug or alcohol misuse and the crippling effect this can have on people’s lives.

The detox unit at St Thomas’ Hospital will offer transformative care to rough sleepers in London suffering from addiction, to ensure some of London’s most vulnerable people get the help they need.

This is one of many projects supported by the government’s £750 million investment this year to help end rough sleeping, which includes £52 million specifically allocated to substance misuse support services.

The government, the Mayor of London and London local authorities are working collaboratively to end rough sleeping in the capital. In December 2020, the government announced extra funding for substance misuse treatment services for people who sleep rough.

In London, some of the extra funding has been used to establish a new pan-London programme to tackle substance misuse amongst London’s homeless to reduce drug and alcohol related harm, save lives, and help people move away from the streets and into housing they have a better chance of sustaining. This new inpatient detoxification unit is one of several new services that will be delivered in the coming months.

The average life expectancy for a rough sleeper in England is 44 years old and this new programme offers a unique opportunity to maximise the engagement of London’s rough sleepers in substance misuse treatment and recovery as part of a wider homeless health and resettlement programme.

The burden on the NHS linked to substance misuse is also increasing. Over the past 10 years the rate of alcohol admissions for mental and behavioural disorders in London has increased from 295 per 100,000 hospital admissions to 425 per 100,000 in 2018 to 2019.

The City of London has taken on responsibility for commissioning and contracting this and several other new pan-London services.

The Addiction Clinical Care Suite has been developed following a pilot conducted by Guy’s and St Thomas’ NHS Foundation Trust which demonstrated that hospital-based detoxification can be required to address the complexity of physical and mental health needs that homeless people face.

For more information or to arrange an interview, please contact london-pressoffice@phe.gov.uk