A market review of supermarkets would be positive for the food supplier industry, says FGC Chief Executive Katherine Rich.

Labour has pledged to launch a review before the end of this year if it is re-elected, saying it had seen “some evidence to suggest competition problems exist in the market”.

Mrs Rich says suppliers face the most concentrated market in terms of supermarket ownership in the world, and for that reason a reviews would be a positive move.

“It would be valuable to make transparent the effects such market power and the impact of the array of costs, rebates, deductions, claims, discounts, shelf auctions and supermarket margin expectations have on final prices.

“The Food & Grocery Council regularly deals with reports of additional demands being made at the store level.

“This announcement in itself should have an effect on some of the more questionable claims and demands being made of suppliers by stores that, from time to time, overstep the line between robust negotiation and bullying.”