Blog: Chris Brook-CarterSuppliers 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?


BLOG

When life gives you lemons, make soap

Bacardi's 42 Below vodka brand has found a novel way to use the lemons left over from cocktail-making: Turn them into liquid soap....

BLOG

Small measures required as Philadelphia soda tax adds up

Philadelphia’s soda tax came into force on Sunday, and is reportedly causing a stir in the city's check-out aisles....

BLOG

Accolade Wines and a giant of the tennis world

Earlier this month, I was most-kindly invited by Accolade Wines to visit the Royal Albert Hall in London. The reason? They wanted to see a tennis great in action, and then give them a guided tour thro...

BLOG

Situation Vacant - Must love whisk(e)y

Do you like whisk(e)y? And, I mean, really like whisk(e)y? Are you at a loose end in the first half of 2017? If so, then I've found just the job for you....

just-drinks homepage



Forgot your password?