Aldi faces £3.7m legal action by British Brussels sprout supplier
German supermarket giant Aldi has been hit with legal proceedings by a Yorkshire-based Brussels sprout supplier over being de-list with no reason.
W Clappison, based in the East Riding of Yorkshire, have supplied sprouts for over 23 years and as of 2023, were the last remaining supplier of brassicas in the northern county.
Last month the business filed a claim to the Business List of the English High Court against the retail giant.
According to its claim form as seen by City PM, W Clappison supplied sprouts to Aldi from around 2010 to 24 March 2023, with Aldi representing around 47 per cent of its business in the supply year 2022-2023.
The veg supplier instructed Yorkshire-based law firm Gordons, with lawyer Lauren Barclay leading its case.
The claim alleges that Aldi, on numerous occasions, assured the business that it could have confidence in it as a customer and, therefore, be confident in making investments in reliance on Aldi.
This meant the business had to invest in order to meet its request and requirements including borrowing around £400,000 in order to build a state-of-the-art packing facility.
The claim form stated that the business made clear that it could only invest in land for the supply of sprouts by borrowing money and was therefore dependent on the continuation of supply. It stated that Aldi was aware of the investments made by W Clappison and “the fact that they were made in reliance on Aldi’s assurances”.
However, the claimants state in its claim that it was informed in February 2023 that it had not won any business for the 2023-2024 season.
It is stated that Aldi did not provide any written reasons for its decision until 7 March 2023, when they were emailed to say it had not won business “due to being uncommercial and Aldi looking to consolidate business.”
The claim alleges that in light of the fact that sprouts were grown and procured on a yearly basis, it is averred that Aldi was required to provide W Clappison with at least 24 months’ notice in advance of any de-listing, being 12 months’ notice ahead of the final period of supply by W Clappison to Aldi.
The claim form outlines that W Clappison was forced to cease sprout production.
The claim against the retail chain shows that the claimants are seeking damages in the sum of £3,694,518.15 plus interest and cost. This is made up of breach of contract and loss business from being forced to terminate agreements with Morrisons and Iceland.
The High Court claim’s system has named London-based law firm Freeths on for Aldi’s defence.
Aldi was approached for comment.
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