Background
In what could prove to be a watershed moment for grocery suppliers, the Groceries Code Adjudicator (GCA) has secured the right to intervene in a High Court case involving Aldi and two of its former sprout and brassica suppliers, marking a rare application of the Groceries Supply Code of Practice (GSCOP) directly by the GCA. A ruling this week by Deputy Master Bowles confirmed that the GCA, Mark White, can offer evidence in the £3.7m lawsuit, brought by suppliers John Clappison and Matthew Rawson, with Clappison claiming Aldi abruptly delisted his company, W Clappison Ltd (WCL), in breach of the GSCOP.
This case is only the second time the code has featured in a UK court case, and notably the first time the regulator has been permitted to take an active role, a move that could redefine how retailers treat their suppliers and how the Code itself is enforced. The decision follows months of legal wrangling with Aldi’s lawyers strongly opposing the GCA’s involvement, arguing it would bring “unnecessary complexity and costs” to the proceedings, and even branded the intervention “partisan.” But the judge disagreed, opening the door for the GCA to weigh in directly.
The dispute
The core of the dispute centres on claims that Aldi assured WCL of continued business, only to later drop them from its supply chain with minimal warning. The farmers, who had supplied Aldi with sprouts and brassicas for years, allege that the delisting forced the closure of their business and cost them millions in lost investment and earnings. GSCOP rules require retailers to provide “reasonable notice” before ending supplier relationships, taking into account factors such as the length of the business relationship, the value of the contract to the supplier, and the nature of the product. The GCA’s legal team has argued that these considerations should be “front and centre” of the trial.
Implications
The ruling comes just days before the GCA is set to publish its 2025 annual survey of suppliers, which is expected to address concerns over short-notice delistings and ongoing supplier pressure in the sector. The outcome of the trial, set for April 2026, could have far-reaching consequences and may bring some much needed clarity to the interpretation of the GSCOP in the context of a High Court dispute.
It is worth noting that the GSCOP does have legal force, with designated retailers (14 major supermarkets including Aldi) being obligated to comply with it. However, what has been lacking until now is a body of case law interpreting the GSCOP in court. This case could help establish case precedent and influence how other courts interpret and apply GSCOP in future legal disputes. The GCA’s first time intervention in a trial will mean the GSCOP, and the extent to which a retailer has abided by it, will be directly tested in a courtroom, specifically with input from its regulator, possibly making future enforcement more robust and predictable.
For suppliers, particularly smaller and more vulnerable producers, the High Court case could mark a turning point. If successful, it may embolden more businesses to stand their ground and test the strength of the GSCOP in court when they feel slighted by retailers, especially with the GCA now shown to be willing and able to play an active role.
Furthermore, in relation to Aldi, this is not the first time the retailer has found itself at the sharp end of legal scrutiny over its supplier and brand practices. In June 2025, the Supreme Court rejected the retailer’s attempt to appeal a ruling that it had infringed on Thatchers’ Cloudy Lemon Cider trade mark; a defeat that could potentially cause Aldi to rethink aspects of its own-label strategy – see our comment here. Combined, these two legal battles paint a picture of a retailer under growing pressure to modify longstanding practices, both in terms of how it works with suppliers and how it approaches the branding of its “own label” products which copy the market leaders.
With the High Court case scheduled for trial next April, all eyes will be on the courtroom and on the future of retail power dynamics in the UK grocery sector.
