Woolworths Limited
(ASX:WOW) has agreed to a voluntary code of conduct on its relationship with wine grape growers, according to media reports.
The supermarket giant reportedly signed the Wine Industry Code of Conduct in an attempt to work more collaboratively with the wine sector.
The code has guidelines on timely payments and standard terms for supply contracts and will mainly apply to Woolworths' private label winemaking business Pinnacle.
Woolworths liquor boss Brad Banducci told media the company was also very open to negotiating a code of conduct with the Winemakers' Federation of Australia, after the body called for a formal arrangement to stop large supermarkets misusing their power over wine producers.
Woolworths generated a full year net profit of $2.26 billion.
