Wine suppliers ink new code of conduct with Woolworths

A new set of principles that promises Australian wine suppliers better protection in their dealings with Woolworths has been signed off after more than a year of negotiations.

The principles, which set out the guidelines for fair and transparent dealings between the retailer and wine companies, was an important step for the wine industry in trying to lift profitability, according to The Winemakers' Federation of Australia (WFA).

Federation President Tony D’Aloisio said the principles were an important step in setting a clear direction for a sound business culture in dealings between Woolworths and wine suppliers.

“The principles will be welcomed across the industry as they will provide more transparency, certainty and fairness for negotiations and agreements,” D’Aloisio said.

Woolworths is the biggest retailer of wine in Australia through stores such as Dan Murphy's and BWS and the Wine Federation of Australia plans to start negotiations with Coles for a similar agreement.

The principles apply to all wine suppliers dealing with WLG and not just federation members.