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.