Groceries Code Adjudicator intervention: A bid to ensure retailer accountability?
9th July 2025
“The Groceries Supply Code of Practice forms a handrail from which retailers and suppliers can forge respectful relationships, whilst being afforded adequate protections. Its application isn’t always smooth sailing though, with terms such as ‘reasonable notice’ making way for conflict in certain circumstances.”
Background
In a claim brought against Aldi Stores Limited (Aldi) issued in April 2024 in the High Court, W Clappinson Ltd (WCL) is claiming damages from Aldi of over £3.6 million for losses suffered because of Aldi’s de-listing of WCL. WCL contends that this was in breach of the Groceries Supply Code of Practice (GSCOP). WLC is a Yorkshire based supplier of brussels sprouts to the supermarket sector run by two farmers, Mr Clappinson and Mr Rawson.
Latest development
In the latest development, on 16 June 2025, an order was granted adding the Groceries Code Adjudicator (GCA) as a party to proceedings as an intervener. The intervention is limited to written submissions (of no more than 30 pages) and 1 hour of oral submissions at trial. Aldi has been subjected to a £30k cost order.
A relationship under strain
WCL supplied sprouts to Aldi from around 2010 to 28 March 2023. WCL was told at the end of February 2023 that it had not been successful in its tender to Aldi for the supply of sprouts for the 2023/2024 season, with Aldi factoring into its decision WCL’s price, the quality of the sprouts and its market shift to focus on suppliers who were able to supply a variety of products.
Paragraph 16 of GSCOP states that a Supplier can only be de-listed for ‘genuine commercial reasons’ and must receive ‘reasonable notice’ of the de-listing from the Retailer. GSCOP and the GCA’s guidance sets out that reasonable notice will generally be determined with reference to various factors, including the duration of the supply agreement, the value of the order and the overall impact.
WCL argues that Aldi failed to comply with the requirements of GSCOP by providing inadequate notice of the de-listing which it says was delivered orally on the 22 February 2023 and followed up in writing on 7 March 2023. WCL asserts that it should have been provided with 24 months’ notice given that sprouts are grown annually; having regard to the impact the de-listing would have on the business and to allow for the opportunity to tender for other business.
Aldi in its defence says that de-listing took effect at the start of the next season, in this case on 6 September 2023, which means that Aldi, in its view, provided WCL with six months’ ‘reasonable notice’ taking into account the requirements of GSCOP. Aldi argues that the expenditure WCL made in relation to the supply of sprouts before the conclusion of the tendering process was at WCL’s commercial risk.
What does this mean?
Under the 19.2.(2)(a) of the Civil Procedure Rules, the power to permit intervention was not deemed limited to cases where the proposed intervener would be directly, or indirectly, affected by the outcome. In allowing the intervention, the court considered that the GCA would be able to provide an objective view on matters, as well as assist in its understanding of broader context and the interpretation of GSCOP.
The GCA is adopting an increasingly proactive role in resolving disputes, with separate investigatory action being taken in parallel against other retailers. With food security and supply chain continuity high on the agendas of consumers and businesses alike, we should expect to see a continuation of the GCA’s involvement in similar matters.
The Walker Morris Competition team will keep you informed of further significant developments. For all GSCOP queries, please contact Della Heptinstall.
