Oireachtas Joint and Select Committees

Thursday, 9 May 2013

Joint Oireachtas Committee on Agriculture, Food and the Marine

Groceries Sector: Discussion with Lidl Ireland

10:50 am

Mr. Kenneth McGrath:

We adhere to our agreements very much. Senator Ó Domhnaill commented on our code being perhaps general. It is certainly a set of principles as opposed to a specific code of practice setting out all the rules of engagement. It is a set of principles, that is for sure, but one that we honour. In that context, agreements are fundamental. We could not sustain our business in Ireland if we abused suppliers, contracts or relationships.

We have 1,500 products listed and there is very little duplication in our range. If one or more of those products were to go off sale, there would be a hole on our shelves for a considerable period of time. That would make us unattractive for the consumers. If they are used to buying a certain product on a weekly basis as part of their grocery spend and they cannot purchase it with us, they will go somewhere else. We are aware that there is a requirement to build a strong, mutual relationship that is ultimately sustainable and healthy. That requires fairness. In the case of nothing changing, however, the contract is honoured. That is our modus operandi.

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