Supermarket backs down on supplier levy

23:16, Sep 18 2012

A major supermarket group has partially backed down on plans to slap its suppliers with a three per cent levy.

Foodstuffs Wellington sent a letter to suppliers on August 31 telling them it would levy a three per cent ''promotions rebate'' on all products sold in its stores, effective from October 1.

The rebate was subject to fierce criticism from the Food and Grocery Council, and some suppliers described the proposal as a ''profit grab''.

Foodstuffs Wellington, owner of the Pak'n Save, New World and Four Brands in the lower North Island, had defended the levy as being a more efficient means of paying for in-store promotions.

But in a statement this morning Foodstuffs communications director Antoinette Shallue said the levy would not be imposed from October 1, but would instead be subject to negotiations over the next six months.

''We appreciate that suppliers feel more consultation is required around the concessions that will be associated with the three per cent rebate charge,'' she said.

''Based on the feedback we have received further collaboration would be highly beneficial.''