New Grocery Regulation puts affected players at risk

New regulations have been introduced for the marketing, sale and distribution of groceries and alcohol products. Duncan Grehan explains what they mean in the November Gazette.

Published:

The Grocery Regulation 2016

From 1 February 2016, Irish law places new limits on the commercial arrangements between wholesalers, retailers, and suppliers of grocery goods and alcohol products in the Irish marketplace whose worldwide turnover exceeds €50 million.

The limits placed by the Grocery Regulation 2016 have international significance, particularly as many of the groceries and alcoholic beverages available in the Irish marketplace these days are imported rather than being produced here.

Devil in the detail

The Grocery Regulation (which came into effect on 30 April 2016) requires all contracts between wholesalers, suppliers and retailers to be signed and in writing by all parties. It applies to any arrangement for sales or supply of food and alcoholic drink products in Ireland between parties whose worldwide turnover exceeds €50 million. However, it excludes food and drink served or supplied by caterers, in restaurants, or food take-out premises.

The regulation sets out certain imposed contract terms, which cannot be waived; and implied terms, which can only be excluded from contracts by agreement. Duncan Grehan (principal of Duncan Grehan & Partners Solicitors) explores the regulation in detail for the November Gazette. He delves into the detail of both imposed and implied contract terms – and the penalties for non-compliance.

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