Why is Co-op Making Changes to its Supplier Network?
Co-op is taking deliberate steps to create a more ethical and sustainable supply chain by dropping 17 countries from its supplier network.
This phased withdrawal focuses on removing items tied to regions linked with human rights abuses or breaches of international law.
The shift forms part of the organisation's wider ethical positioning under its 'Hate Divides Communities, Co-operation Builds Them' campaign.
At the heart of this move is a redefined sourcing policy driven by ethical assessments and reinforced by Co-op’s long-term supply chain commitments to values such as democracy, solidarity and equality.
Cutting suppliers
The decision has a direct impact on around 100 products, from ingredients used in Co-op’s own-label goods to standalone imports such as Russian vodka and Israeli carrots. These items are being phased out in alignment with revised supplier criteria developed by Co-op’s board and based on input from its members.
- There has been an agreement across respected assessments that there has been repeated behaviour which can be described as large scale human rights abuses or international law violations
- The actions taken by the Co-op would alleviate suffering and make a difference to those affected, either directly or indirectly
- The actions taken by the Co-op would not negatively impact the Co-op’s integrity or go against co-operative values and principles
The affected list spans 17 countries: Afghanistan, Belarus, Central African Republic, Democratic People’s Republic of Korea (North Korea), Democratic Republic of Congo (DRC), Haiti, Iran, Israel, Libya, Mali, Myanmar, Russia, Somalia, South Sudan, Sudan, Syria and Yemen.
The company makes it clear that this is not a blanket boycott, but a focused supply chain shift based on a combination of ethical principles and practical procurement decisions.
Chair of the Co-op Group Board, Debbie White, says: “This policy, which has been developed over the past year as a part of our 'Hate Divides Communities, Co-operation Builds Them’ campaign, is a clear demonstration of our co-operative values in action, where the voices of our members have been listened to and then acted upon.”
An ethical company
Co-op’s ethical credentials are well established in its supply chain history. The business has supported Fairtrade for three decades, integrating fair pricing, improved working conditions and more sustainable trading relationships across global operations.
“As a business, we have a long-standing legacy of doing the right thing, supporting Fairtrade and championing ethical sourcing and this policy is a natural progression of this,” Debbie says.
The development of this sourcing decision shows how member feedback has shaped policy. Co-op presents its sourcing framework as more than a commercial move—it is a reflection of community-led governance within supply chains.
Debbie adds: “Our 'Hate Divides Communities, Co-operation Builds Them' campaign has once again positioned our Co-op with those who advocate for and build peace.”
Upholding consumer expectations
This change also aligns with a broader supply chain trend where businesses react to political and ethical scrutiny. Other brands have faced challenges and backlash over delayed decisions on trading with contentious regions.
In 2022, brewing company Carlsberg confirmed its exit from the Russian market, though legal complexities delayed closure until 2024.
In another case, Ben & Jerry’s declared in 2021 it would stop selling in Israel, but parent company Unilever blocked the move and transferred the licence to an Israeli distributor, allowing product sales to continue.
Consumer response has proven influential. Vocation Brewery halted exports to Israel following customer pushback. A company statement confirmed it had “decided to cease exports of our beer to Israel with immediate effect".
Consumer purchasing patterns also point to longer-term shifts in supply chain expectations, with a 2020 McKinsey study found that over 60% of consumers would pay more for goods with sustainable packaging.
Between 2017 and 2022, frozen dessert products labelled “plant based” saw a 4.1% higher growth rate than non-labelled alternatives, showing the impact of sustainability on supply and demand.
The Co-op’s supply chain recalibration is both a reflection of its internal ethical framework and a response to evolving public expectations. With pressure mounting on other retailers to follow suit, the policy signals that supply chains are now central to a business’s public identity and political accountability.
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