20 September 2010 - 12:28pm | posted by | 6 comments

Molson Coors entered into 'Hall of Shame' over supplier payment terms

International brewery Molson Coors has been entered by The Forum of Private Business into its ‘Hall of Shame’ over its supplier payment terms.

The brewer, which owns brands such as Carling, Grolsch and Cobra, has extended its supplier payment terms to over three months having written in September to suppliers to inform them that their invoices would not be processed for more than 90 days from receipt.

The letter to suppliers blamed the move on its need to invest and said that its move to extend supplier payment terms would allow it to become ‘more consistent with the industry standard’.

 Arguing that the payment practice will simply ‘squeeze’ smaller companies, Phil Orford has written to Molson Coors to argue that it should reverse its decision and sign up to its Prompt Payment Code.

Until it does, Molson Coors has been added to the ‘Hall of Shame’, an online directory of big businesses which put suppliers under pressure through extended payment terms being placed upon them.

Speaking on behalf of the Forum for Private Business, Phil McCabe said: “We are very disappointed that yet another big business has seen fit to profit at the expense of its struggling small suppliers.

“Maintaining a healthy cash flow is hugely important to small businesses, especially in the current economic climate, and many SMEs simply can’t afford to wait months and months to be paid for work they have carried out.

“As a result, paying late often works to the detriment of big businesses as they shrink the pool of suppliers and contractors who are able or willing to work for them, hampering competition and choice. We have written to Molson Coors urging them to reverse the extension to their terms and sign up to the Prompt Payment Code.”

Rival brewer Carlsberg was also recently entered into the Hall of Shame for taking up to 120 days to pay suppliers, while Dell also made an entry having extended its payment terms to 65 days.

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Comments

20 Sep 2010 - 13:35
will_atkinson's picture
130
comments

Should be illegal. Government after government have said they'll do something about late payment but never do. But then maybe big business is more important to them than the average person in the street.

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Anonymous (not verified)
20 Sep 2010 - 13:44
Anonymous's picture

Fine by me... if they're prepared to extend me three months credit on every pint I buy.

Then, when they phone up chasing their money, I can string them along with a load of transparent excuses like: "I can't seem to locate your invoice on the system - could you send another copy?", or "We're doing a cheque run at the end of the month", or "There's a cheque on his desk for signing - I'll let him know when he gets back from his (three week) lunch."

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Anonymous (not verified)
20 Sep 2010 - 13:54
Anonymous's picture

Thugs.

Try investing in a decent working relationship.

Do they pay their employees three months in arrears?

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Anonymous (not verified)
20 Sep 2010 - 14:26
Anonymous's picture

Is this why Leith isn't repitching for the coors light account?

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Anonymous (not verified)
20 Sep 2010 - 16:02
Anonymous's picture

Hall of Shame? yeah good one Molson Coors must be quaking in their boots from that...

not that im fussed....mines always a corona

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Anonymous (not verified)
20 Sep 2010 - 23:32
Anonymous's picture

Worst we have is a client that's on 60 days terms, but that's a construction industry standard arrangement. I hope that if any suppliers go bust on them they either charge them an arm and a leg for any files they hold or throw the lot in the bin.

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