The UK’s premium retailers are getting drawn into the fray in the banana pricing battle with Waitrose this week dropping its retail to 58p a kilo on loose fruit. This came in response to the major multiples Tesco, Sainbury’s and Asda progressively lowering prices to reach a retail point at all three multiples of just 55p a kilo.
Waitrose, which only retails Fairtrade bananas, said it is taking the hit on the low price: “We’ve reduced our prices following price cuts in the market, but this is at no cost to our growers. Since February 2007, all of our bananas have been Fairtrade and the principle of providing fair and sustainable returns to all our growers is at the heart of how we do business.”
Meanwhile, Tesco and Asda continue to offer their Fairtrade fruit at a premium - £1.37 for pre-packs of six fruit. It is therefore the supermarkets that sell only Fairtade bananas - Sainsbury’s and Waitrose - that are hardest hit by the price-cutting.
The Co-op is resisting the price-slashing frenzy so far on its Fairtrade fruit, and its standard lines are still 11p above the other retailers for loose fruit. “All Co-operative stores now stock Fairtrade bananas," said a spokesperson. "Our cheapest Fairtrade bananas are 99p per kilo, but the cheapest bananas we sell are The Co-operative Simply Value Bananas, which are £1.00 per 1.5kg, which equates to 66.66p per kilo. We do not believe the current price war on bananas is sustainable and ultimately it could have a detrimental effect on banana growers.”
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