The grocery industry adopted a code designed to regulate the relationship between supermarkets and their suppliers in 2010, and the pub trade has looked to Tacon to see what challenges may lay ahead for its as yet unnamed adjudicator.
However, Tacon says she has been left stunned by the number of suppliers who still know very little about the code and have received no training in how to use it.
In an online video, Tacon said: “I often go to speak to groups of suppliers and am shocked by people who actually want me to teach them about the code, because what I want to do is update them about the various issues and the progress I’m making.
“The code has been in place for over five years and my role for two years. There is really no excuse why suppliers haven’t got to grips with it.”
Her remarks have caused fears that the pub industry may face similar problems with a lack of awareness and education. Fair Deal for your Local campaigner Simon Clarke said he expected similar issues when the legislation is first introduced.
“What we have found in the past is that most tied tenants are already working at the extremity of their strength and time so it will be for genuine tenant organisations to make sure they are well placed to offer advice where it is sought. Even now we find new tenants to the industry who have not appreciated the full effect of the tied terms of their lease on their profitability and earning capability. Few consider issues that are seen as not imminent so I doubt many have got much of a grasp on what is potentially going to happen.”
He added that the legislation has already thrown up some tricky situations for licensees.
“We’ve seen some tenants coming to the Pubs Advisory Service saying that they are up for a rent review a week before the code comes in to affect and asking how MRO will affect them.”
Association of Licensed Multiple Retailers chief executive Kate Nicholls the ALMR would ensure licensees feel confident using the code.
The Government has indicated that the code will be in place before summer next year so it is imperative that not just the ALMR, but the sector at large, hits the ground running.
“Once the details of the code are known, the ALMR will be working with other licensee groups, including the BII, on a series of workshops and briefings. We will ensure that lessees know their way around the code, are aware of how to use it and briefed on dispute resolution mechanisms to solve issues which may arise. The work we carry out with our members will be practically-based so they understand the ins and outs of the code and the consequences of their actions and engagement.”