Oireachtas Joint and Select Committees
Thursday, 18 April 2013
Joint Oireachtas Committee on Agriculture, Food and the Marine
Groceries Sector: Discussion (Resumed)
10:20 am
Pat O'Neill (Fine Gael) | Oireachtas source
Gary Mackay was very good to Ireland when he scored a goal against Bulgaria to send us to Germany in 1988.
Many of the issues have been dealt with. We are going to get the answer some day from a multiple about gross margins in this country. Aldi is operating in nine countries. Is the gross margin taken out of this country in the top third, the middle third or the bottom third compared to the other countries in which Aldi operates?
It has been said that annual tendering does not influence Aldi as to who is the producer for the primary supplier to the company. However, it must have a big effect in the case of fresh produce, especially fruit and vegetables or meat. If I negotiate with Aldi and put in a tender that is accepted, renegotiation can work both ways, as was mentioned. For example, a supplier could say the price must increase because his or her costs have gone up or Aldi could say to a supplier after one month that its costs have risen and that it must reduce the price paid to the supplier. That could have an effect on the primary producer, namely, the farmer. In the tender process a price is agreed for a product to be supplied. Does part of the annual tender relate to different credit agreements with suppliers? Are there different credit agreements with each supplier on the length of time for which Aldi is given credit? Could the credit agreement be renegotiated when the annual tender takes place or at any stage during the term of supply?
I have asked all the multiples about the proposal on minimum pricing for the sale of alcohol in supermarkets and off-licences. What is the company policy on below-cost selling of alcohol and its use as a loss leader to attract people into stores? Perhaps Aldi could not give a figure, but what percentage of sales in its stores is represented by alcohol products?
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