Tesco’s David May defended the supermarket’s strategy at the Re:fresh Conference saying that the store does not make excessive profits at the expense of growers.
Category technical manager May said that it is not in the supermarket’s interest to see UK growers struggle. He said: “We have been accused of driving supplier margins down. Competition in our business is cut throat and on many fresh lines we barely cover our costs. We are eager to support UK growers, and not just to support our farmers but because it is what shoppers want.”
May said that enhanced communication is key to improving the supply chain. “We want to work with suppliers who are experts in their own fields. The real challenge is to work in closer partnership with our growers... Our suppliers must have a clear customer focus and we want to see them pushing our supplier teams with a range of new ideas.”
Overall May said that Tesco is seeking a reduction in the number of suppliers it uses. But at the same time, the chain is trying to carry local lines wherever possible. May added: “We do carry more than 7,000 local lines in our stores. We provide year-round Cornish cauliflowers and a Lincolnshire shallot grower has taken over from an imported supplier.”
Farm assurance schemes such as Nature’s Choice are also growing in consumer significance according to May. He said: “Nature’s Choice gives reassurance to those customers who believe that they cannot afford organics, but want natural, wholesome foods. Consumers want products such as these available.
“The same has occurred with the launch of our Fairtrade flowers. From research we know our consumers are interested in how they are produced.”
No comments yet