ACR-News

A round-up of supermarket news and gossip
What goes round comes round. Tony Campbell, the man who helped Allan Leighton and Archie Norman to resurrect Asda in the 1990s has been lined up to chair archrival J Sainsbury if the Qatari-backed consortium Delta Two succeeds with a £10.4bn takeover bid for the Supermarket group. Delta Two is expected to retain Justin King as chief executive if it takes Sainsbury private. Delta is reported to be lining up a high powered board with retail experience. The company has David Mellor, the colourful former Tory cabinet minister lined up – possibly to mastermind shirt and footwear sales? The pension trustees of J Sainsbury are seeking a meeting with Delta Two. A source said that the trustees were eager to confer with Qataris and had requested a meeting as soon as possible. According to latest reported accounts for 2007, Sainsbury has a pension deficit of £103m, down from £658m last year, on a fund with £4.4bn of liabilities. Under new pension laws, trustees must be consulted in takeovers.

Asda has settled a row that would have seen customers missing out on the new Harry Potter book. Publisher Bloomsbury cancelled Asda’s order for 500,000 copies, claiming it owed money. This was a big mistake and the books ended up on the shelves. Surging sales of Coca-Cola in China and India led to the soft drinks manufacturer unveiling its best sales growth for nine years.

Wm Morrison has admitted a slide in sales for the first half of the year.

Chairman of Royal Mail Allan Leighton, has, it is reported, been in secret talks to buy BHS from Sir Philip Green, the retail billionaire and reintroduce food sales to the stores. BHS sold food more than 40 years ago and 150 of its 185 stores have valuable, but unused, planning consents that enable them to sell food. BHS opened its first store in 1928.

Cadbury was fined £1m for knowingly selling chocolate contaminated with salmonella. The unprecedented fine came after an outbreak of Salmonella Montevideo in the UK in 2006 that led to three people being treated in hospital and 39 – including babies and children under 10 – suffering from food poisoning after eating Cadbury’s chocolate bars. A million chocolate bars were withdrawn.

Shoppers at Tesco were urged to be vigilant after 14 stores were evacuated amid fears of a potential bomb attack. Several branches were closed recently after the company received threats. Police said that all of the stores had been searched and the all-clear to open given. The incident coincided with a national day of action against Tesco by the animal rights groups, including Vegetarians International and Voice for Animals. Detectives said that they do not think that the extremists are behind the threats.

The world is so awash with tea that in the UK we are paying far less for our tea than 30 years ago. Global over-production, supermarket price wars and a weak dollar mean we can satisfy our thirst for less than a penny a cup.

Tesco is plotting to open a new store every two and a half days in the USA. The company has pledged to have 50 stores open by the end of February 2008. The company has 100 sites in the pipeline – 30 in Phoenix and 14 in Las Vegas.

Asda has claimed an eco first with a range of “green” eggs produced in Lincolnshire at farms powered by carbon-neutral, renewable energy sources such as wind turbines and solar panels.

Waitrose is about to go even more up market by launching its first premium store, specialising in ethical and organic produce. The store is opening on Marylebone High Street. Waitrose hopes to introduce the look to its other 183 stores. It is also undertaking a major extension of its store in Southend-on sea.

Whole Food Markets, the American organic food chain that has opened a London store in Kensington is being investigated by trading standard officials after a complaint from Waitrose, based on the way Whole Foods defines local produce as food sourced from anywhere in Britain. Well at least its not based on produce sourced anywhere in Europe!

GEMINI