The UK Grocery Supply Code of Practice - A role model for the EU?

4 minute read
13 July 2016

This is a brief summary of an article which was originally published in Lebensmittel Zeitung on Monday, 20 June  2016.

Pesticides in fruit, traces of antibiotics in milkpowder, splinters of glass in meat - few things are as likely to raise consumers' attention to such an extent as threats to their health which stem from issues in the food supply chain. Apart from such health and safety issues, food's sustainability, food waste and unfair trading practices manage to attract headlines regularly: we are most vulnerable when it comes to our food and beverages. Public scandals often leave people with the impression that legislative authorities just don't care sufficiently - are they entirely mistaken?

In a recently published article for "Lebensmittelzeitung", the leading German special interest food magazine, Dr Ina Gerstberger and David Lowe discuss the UK approach - a binding code with a regulator who has the power to investigate and ultimately fine - and whether this could serve as a role model for the European Union. With a reach of 80 000 professionals from the foods and consumer goods industry, "Lebensmittelzeitung" is the most high-profile magazine for this industry in Germany. Editors are highly selective when it comes to the experts they ask for contribution.

A brief summary

Looking at the EU, there is much diversity and fragmentation regarding the regulation of the food supply chain. Even though the European Commission had - already back in 2014 - asked small and mid-sized companies affected by unfair trading practices to get involved in initiatives like the SCI (European Supply Chain Initiative), these are voluntary and very unlikely to have sufficient deterrent effect. Great Britain, however, is one step ahead: the Grocery Supply Code of Practice (GSCOP) brings with it a number of obligations for the ten UK food companies with the highest turnover. In addition to a legally binding code, there is a specialist regulator, the Groceries Code Adjudicator, who has the power to investigate and ultimately fine. The UK approach is more than just a vague landmark for politicians in Europe. With the possibilities it offers to control food supply chain and to sanction unfair and risky practices, it is trend-setting for European legislation.

The authors

Ina is specialising in food and related regulated areas of law and leads the German Food & Drink/Life Sciences practice of our Munich office. David is a commercial law specialist based in our London office and Head of the UK Food & Drink Sector Team. For this article, David provided extensive information on the history and content of the GSCOP, the initiatives of the GCA (Groceries Code Adjudicator) and its enforcement, and the Tesco investigation with latest developments and discussions. Ina discussed the overall situation in the EU with the Supply Chain Initiative, its pros and cons, and the current German approach relying on the existing unfair competition, antitrust and civil laws to combat unfair trading practices. Together, they argue convincingly why the GSCOP, with its increased powers in enforcing the rules, is a possible (and also advisable) role model for future EU regulations - even in the light of recent political developments.


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