Irish supermarket group Superquinn has defended itself over the charging of fees for promotional shelf space.

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Reports have suggested Superquinn charges suppliers up to EUR1,200 (US$1,687) a week for promotional shelf space in fridges or freezers and up to EUR1,000 a week for special stand displays.


The list of charges comes as Irish political party Fine Gael last week launched a stinging attack on the supermarket sector, accusing it of jeopardising Irish jobs.


The party said that “forced payments” and “hello money” demanded by supermarkets are damaging Irish agribusiness.


However, Superquinn has denied it is doing anything wrong, saying that a ‘rate card’ is sent to all suppliers at the beginning of each year, making it clear that it is not necessary to take advantage of the promotional offers in order to supply to Superquinn.

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“Superquinn believe in being honest and up front with their suppliers, hence the reason all suppliers get the same cost list at the beginning of the year. This price list then helps suppliers to plan what, if any, Superquinn promotional activity they wish to engage in during the year ahead,” a spokesperson said.


“In addition to the normal shelf space afforded to products free of charge, suppliers often request or agree to their products receiving additional promotion or advertisement for which a set fee is charged.  This is standard practice across the industry in Ireland and in the UK.”


Superquinn said the Competition Authority reviewed the 2008 version of the price list last year and was satisfied that the communication was part of normal business practice.


The supermarket group added that there has been no increase in costs and that the 2009 price list contains the same prices as last year.