Oireachtas Joint and Select Committees

Tuesday, 26 March 2013

Joint Oireachtas Committee on Agriculture, Food and the Marine

Groceries Sector: Discussion with Musgrave Group and Tesco

5:30 pm

Mr. Tony Keohane:

Our promotions are contained within our contracts and agreements. As the Deputy and another member described, the cost of fresh food promotions is normally borne by the retailer. Particular product promotions are agreements between suppliers and retailers. The contract allows for an agreement on how to fund the promotion. Promotions are agreed weeks and months before they occur because of the complexity of the supply chain. It is not done on a whim. There is a misrepresentation of what occurs. These are long-term agreements and a process has been set down. We could not run a business that reacted and changed on a weekly basis. The only obstacle to good, regular planning is the weather.

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