Blog: Suppliers should brace for the King of tough years
Chris Brook-Carter | 13 January 2011
If you remain under any illusions as to how tough the UK retail scene continues to be - and let's face it, it will probably get worse this year - then look no further than an article on our sister site just-food yesterday, quoting Sainsbury's CEO, Justin King.
Suppliers, he said, would have to "work very hard" to justify price increases as commodity costs continue to rise.
Speaking exclusively to just-food, King said that many of the commodity cost increases, particularly on wheat, had been "widely predicted" and that suppliers should have prepared by hedging against them.
It's unusual to hear rhetoric like this in the public domain. We all know that negotiations between suppliers and supermarket buyers are robust, but they largely remain behind closed doors. That King has made these comments in public is perhaps a reflection of the inevitably more heated nature of the debate in coming months.
Over Christmas I had a couple of conversations with well-placed sources who believed we would see a small number of high profile desertions of the UK supermarket sector from within the wine trade this year.
With no sign that margin pressures will go anywhere positive again this year, who can blame them?
Here's a round-up of the top stories on just-drinks last week, featuring William Grant & Sons, the Southern hemisphere's winemakers, SABMiller and Heineken, and Coke Light....
How many beer mugs can one man carry? ...
Here's a round-up of the top stories on just-drinks last week, featuring Pernod Ricard, The Coca-Cola Co, SABMiller's new Scotch whisky and Santa Rita Estates....
The US state of Arkansas goes to the polls on 4 November to decide whether to end so-called “dry” counties, meaning ones that don't allow any alcohol sales. About half of the state's 75 counties are a...
- Comment - Heineken's 'No' Cuts SABMiller Options
- Irish whiskey eyes a slice of Scotch's global pie
- Guinness: A Great Day for St James's Gate
- SABMiller spurned by Heineken: The start of the en
- Wines of the Beautiful South Ups its Game
- Patron Spirits' Patron Citrónge Lime
- Wm Grant CMO to head Orangina Scweppes Int'l
- Heineken rejects SABMiller purchase proposal
- Bacardi-Martini appoints Southern Europe chief
- William Grant gives Sailor Jerry pack revamp