Tesco's demands worry South African producers

Friday, 14 November 2008

South African wine producers have warned that suppliers' ethical concerns may be forgotten after Tesco changed its trading terms.

One supplier told Off Licence News that the firm's demands are "a threat to [its] sustainability".

The source said: "It's not just about treating employees decently, we also have to remunerate them properly. In order to have something flowing back, we need some sort of return in the marketplace."

UK market manager at Wines of Africa Jo Mason added: "When cost cuts are being considered they have an effect all the way down the supply chain, to the farm workers."

Tesco refused to comment on any individual cases of negotiations with suppliers.

In the UK, National Farmers' Union president Peter Kendall said supermarkets are "beating up" their suppliers.

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Andrey Lebkowski said:

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Why all the uproar from the wine industry, you go to bed with the devil and what do you think the price will be when you wake up? Supermarkets do not wish to understand or indeed care about the constant difficulties that wineries endure to provide consistent quality product on supermarket shelves,and thanks to uneducated marketeers, we have sunken to the depths of FMCG, the world of toothpaste, tomato sauce and frozen takeaway. Vikings had a better understanding of fair play. Indeed, there are certain WW2 dictators who would pale into insignificance against current senior supermarket management and buyers in their quest to facilitate fairness towards suppliers. Even the largest of suppliers cow tail to the whims of the supermarket conglomerates. That may even change when Tesco and their brothers in arms place Brand Name labels up against traditional brands, then nobody in the wine industry will need to worry, because we will be no longer be independent suppliers.

November 17, 2008
Votes: +0

Mark Kears said:

	... As we discussed last week...Regards, Ulli
	report abuse vote down vote up

November 17, 2008
Votes: +0

Daniel Lambert said:

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As I have said before Tesco has and will never have any consideration for it's suppliers. Tesco's only cares about Tesco. If suppliers say yes to there demands this time then they will keep on making impossible demands. To supply this greedy and frankly ruthless company just does not make sence if you are losing money. It's time the agents of the world stood up to these bully's and said go forth and multiple.