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ACC suing Coles over breach of contract

Coles beefSupermarket giant Coles’ biggest Brisbane beef supplier Australian Country Choice (ACC) is suing the supermarket giant over an alleged breach of contract.

According to a statement of claim filed with the Queensland Supreme court yesterday afternoon, the dispute centres around alleged claims over what products sold to third parties require a commission to be paid back to the ACC, The Australian has reported.

“For most of our 40-year partnership with Coles, the relationship has been a strong and mutually beneficial one but we consider that, in recent times, Coles has repeatedly breached its obligations, failed to act in good faith and taken steps that threaten the very core of our business,” ACC managing director David Foote told The Australian.

“The ACC beef supply chain is well-known and highly-regarded, which gives us great confidence in our long-term future and in our ability to build new customer relationships.”

Coles managing director John Durkan has in the past complained about grocery prices being too high compared to other international markets such as the UK and has been working across its supply chain to decrease wholesale prices in an attempt to pass on savings to customers.

Law firm Kinneally Miley is representing ACC while Allens Linklaters is representing Coles. 

ACC is operated by Queensland’s Lee family, which supplies fresh beef to Coles under the Coles Finest, Coles Butcher, Aussie Bites, Coles Grill and Drovers Choice brands.

Inside FMCG has contacted Coles and ACC for comment.

This story has been updated since first being published.

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