MUSGRAVE GROUP STATEMENT RE FINE GAEL FAIR TRADE BILL

12 August 2009

In response to the Fine Gael Bill on Fair Trade published today Musgrave Group has stated that it is categorically opposed to illegal, unfair and unsustainable business practices which put the existence of suppliers at risk and damage the reputation of the industry and responsible players within it.

Musgrave Group does not engage in the practice of ‘Hello Money’ and would welcome any moves to control and eliminate such “sharp practices” from the Irish grocery sector.  However, a distinction needs to be made between sharp practices and legitimate negotiation which is vital to driving down costs and delivering value to consumers.

Musgrave Group has today written to Fine Gael to outline its position on its approach to working with its suppliers which is based on developing long term mutually beneficial relationships and to point out that it is fundamentally opposed to and does not engage in the practice of ‘Hello Money’.

In response to the Bill, Musgrave Group also reiterated its commitment to Irish suppliers and producers.  The Group has invested €200 million this year to deliver price reductions to consumers across its Irish brands including SuperValu and Centra. Unlike other retailer’s price reduction initiatives, these reductions have been introduced without compromising Irish jobs or Musgrave’s commitment to purchase from Irish suppliers. Currently 75% of everything sold through Mugrave’s retail brands is sourced or produced in Ireland and this is set to continue. These purchases are worth in excess of €2.85 billion every year to the Irish economy and indirectly support 14,000 Irish jobs.

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For further information please contact:

Joe Carmody
Edelman
01 6789333

Edel Clancy
Musgrave
Director of Communications
021 4522123