France to further regulate supplier-retailer relationships | Progresiv

France plans to further regulate the relation between suppliers and retailers, a measure expected to also impact international purchasing alliances. The planned law amendments dubbed 'Loi Sapin 2' by the name of its original initiator refer to:

• Creating a special status for producers organizations that could undertake prices, volumes and quantities negotiations on behalf of producers.
• Provisional payments made to suppliers to be indicated in the trade agreements with the producers.
• Penalties for late payments that disrupt the supply chain.
• Mandatory annual meetings between the agricultural subsidiaries.
• Up to three years long contracts once the revision price is set.
• Own and private label cost allocation to retailers.
• Service costs relating to international purchasing groups. (www.kantarretailiq.eu)