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Kennett hired as Coles peacemaker

Aug 06, 2014

Coles has recruited one of its fiercest critics, former Victorian premier Jeff Kennett, to help sort out disputes with the supermarket giant’s suppliers.

Kennett has been appointed as an independent adviser to improve Coles’ often rocky relationship with some suppliers.

The former premier insists that while he will be paid by Coles, he will have “absolute independence” from the supermarket chain.

His appointment comes as Coles prepares for a lengthy trial focusing on claims it used its size and power to force extra payments from 200 small suppliers to help bolster its profits.

Kennett helped spark a separate court case against Coles after he complained to the competition watchdog about claims the supermarket made about its bread being freshly baked.

The Australian Competition and Consumer Commission won that case, with the Federal Court finding in June that Coles misled consumers by claiming its Cuisine Royale bread was freshly baked when it had been prepared in Ireland months before.

Now the pair appears to be on better terms, with Kennett keen to sort out any problems Coles has with its suppliers.

He said that before taking on the job he had ensured he would be able to act independently in resolving disputes with suppliers.

“I’m not owned by anyone and I’m always prepared to speak my mind,” he told Fairfax Radio today.

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“I made sure that my role, and the conditions of my role, gave me the absolute independence that I required from Coles.

“Yes, I am receiving a stipend from them to do it but this is very much in the interest of the suppliers.”

Coles chief executive John Durkan said Kennett’s decision on disputes would be binding on the supermarket and he was free to make his decisions public if he wished.

“Mr Kennett will make recommendations directly to me on proposals to resolve disputes. Should there continue to be disagreements, Mr Kennett’s final recommendations will be binding on Coles,” Mr Durkan said.

“If Mr Kennett feels the need, he is free to publish his decisions or raise any concerns externally, as he sees fit, including through the media, the Australian Consumer and Competition Commission and other relevant authorities.”

Kennett launched a public attack on Coles in 2012 when he complained to the ACCC that the supermarket giant was deceiving customers by selling foreign bread as freshly baked.

He sent a box of the Irish-made Cuisine Royal bread and muffins to the ACCC, calling on the watchdog to investigate Coles’ claims it was baked fresh.

The former premier claimed Coles was trying to drive local producers and farmers out of business.

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