Tesco News
Cauliflower couscous, carrot spaghetti, and courgette ribbons products unveiled at the UK’s largest supermarket
Tesco has released a range of new vegetable products to cater for the latest diet craze.
Two of the hottest trends among foodies and the diet-conscious at the moment involve blitzing produce in a food processor or ‘spiralising’ vegetables to create less calorific replacements for carbohydrates.
Among the most popular are vegetable substitutes for pasta, mash, rice, couscous, pizza bases and bread.
For the first time a range of ready-prepared vegetable substitutes for popular carbs is to go on sale across the UK, launched by Tesco.
Included in the new Tesco prepared vegetable range are: Cauliflower couscous, carrot spaghetti, and courgette ribbons.
Tesco prepared veg buyer Emma Bonny, said: “Creating vegetable substitutes for carbs such as potatoes, rice and pasta is really growing in popularity right now, and not just for the diet-conscious.
“Look on foodie websites and you’ll find wonderful recipes from adventurous home chefs who have spiralised and mashed their non-carb vegetables or created cauliflower breadsticks and other bread alternatives.
“It’s easy if you’ve got a decent food processor and spiraliser, but not everybody has, so we think these new ready-prepared fresh vegetable packs will provide shoppers with a simple option for lowering their carb intake.”
While the carrot spaghetti and courgette ribbons are intended as a substitute for pasta, the cauliflower couscous – which can be eaten hot or cold – can be used as an alternative to rice and even mashed potato.
The three packs each cost £1, and are available to buy in 235 Tesco stores across the UK. They are currently available in a 3 for 2 meal deal offer.
Cookery clubs will be set up and concentrated in disadvantaged areas with a high proportion of low-income families
The Children’s Food Trust has confirmed a brand-new partnership with The Tesco Eat Happy Project worth almost £5 million to expand ‘Let’s Get Cooking’ – the UK’s biggest network of school cooking clubs.
The new clubs will be concentrated in disadvantaged areas with a high proportion of low-income families.
Research shows children from poorer homes are more likely to be obese – over a fifth of children from low-income households were classed as obese in 2013, compared with only 7% of children in higher-income groups.
Children learn how to cook a variety of meals at Let’s Get Cooking clubs, from healthy favourites like salads, omelettes and soups, to world cuisine like curries, stir fries and chilli.
The clubs have been proved to have a real and lasting impact on children’s relationship with their food – research shows that almost all children who take part cook again at home, and more than half have said that they eat more healthily since learning to cook at a club.
As well as keeping around 3,000 existing clubs going, the new partnership with Tesco will help the Children’s Food Trust set up an additional 1,000 clubs across the UK during 2016.
This means up to 72,000 more children will get to benefit from learning how to cook at the clubs.
Linda Cregan, CEO of the Children’s Food Trust, said: “If we want children in the UK to eat better, we have to give them the skills they need to cook – and companies like Tesco can have enormous influence to make that happen so we’re thrilled to be working with them.
“This funding is an incredible opportunity to give many more children the chance to make that connection between where food comes from and the meal on a plate, and to grow our army of inspirational cooking club champions right across the UK.”
Originally established seven years ago with £20m of investment from the Big Lottery Fund, The Children’s Food Trust’s Let’s Get Cooking programme has established a network of 3,000 successful primary and special school clubs in England, and has so far helped almost two million children and parents improve their cooking skills.
Josh Hardie, corporate responsibility director for Tesco, said: “The Tesco Eat Happy Project is our long-term commitment to help the next generation have a happier and healthier relationship with their food. A crucial part of this means giving children the tools they need to make better decisions about what they put on their plates when they grow up.
“We’re thrilled to be supporting Let’s Get Cooking clubs – it means we can reach as many children as possible, creating a real legacy for cooking skills in this country.”
The Tesco Eat Happy Project is the retailer’s long-term commitment to help children aged between four and 11 have a healthier and happier relationship with food.
Tesco has worked with the Children’s Food Trust since 2014, delivering more than cooking courses to more than 3,500 children in stores across the UK.
CEO of Tesco, Dave Lewis says move is ‘aimed at insulating more of our businesses from indexed rent reviews’
Tesco has regained sole ownership of 21 superstores in a transaction with British Land.
The agreement comes as Tesco aims to strengthen its core UK business.
The 21 superstores and associated debt were part of a joint venture between Tesco and British Land, and were all subject to RPI-indexed rent increases.
In exchange for the superstores, British Land will take over Tesco’s stake in three shopping centres, three retail parks and three standalone stores which are held in two joint ventures between the two companies.
Tesco will continue to lease the stores at these sites at market rents which are not subject to RPI-indexed increases.
As part of the transaction, Tesco will also receive £96 million from British Land.
Dave Lewis, commented: “Last year we identified the opportunity to increase the proportion of our stores we own as freehold. This transaction with British Land allows us to increase our ownership and thereby insulate more of our businesses from indexed rent reviews.
“We have a long way to go but it’s a transaction which takes us in the right direction. This agreement makes our business simpler and stronger.”
Retailer asked how it can balance stable consumer prices with sustainable margins for producers
Tesco has come under fire from farmers and growers who claim guaranteeing stable prices to consumers is pushing volatility in the market back down the supply chain.
Speaking in a workshop session on ‘future-proofing your business for volatility’, at the NFU Conference this week, Tesco’s agriculture director Tom Hind said the retailer’s move to become closer to its suppliers through direct sourcing models has helped minimise volatility.
“We are working closer to our suppliers in order to manage volatility. We believe there are other opportunities in producer contracts and increasingly we’ve been able to extend relationships at farm level. Secondly we are asking, how can the retailer help to manage risk by forward buying?” he said.
But Hind came under pressure from the floor, after one questioner asked how Tesco can balance stable prices for both consumers and producers.
“You have hinted that Tesco wants to offer stable prices to customers – now what that means is you want to push volatility back down the supply chain,” one farmer asked.
“Can Tesco give its customers stable prices and its producers stable margins? You talk the talk but we need to see evidence that you can support us, because your profits always look better than mine,” he continued.
Hind replied: “You’re losing sight of the bigger issues here, which are consumption and competition. We need to focus on quality, and ensuring the product remains relatively affordable faced with the competition.”
He added that Tesco has worked with key top fruit suppliers to help them maximise packing facilities outside of the British season, using fruit from overseas.
Elsewhere in the session, HSBC’s agriculture manager, Allan Wilkinson, warned that businesses’ should look to internal management skills in order to ride out difficult market conditions.
“Management improvement and cutting costs of operation are the most important aspects, and will enable you to thrive once the prices go back up,” he said.
“What we know about volatility is that prices will go back up, we just don’t know when. One year’s loss doesn’t make a bad business,” he continued.
Another panelist stressed that management skills are crucial to helping a business through difficult times.
Managing director of arable farming group Brixworth Farming, Charles Matts, said: “To me, it’s really important that any farm manager has good management skills that extend beyond their technical ability.”
John Allan, formerly of Dixons and Deutsche Post, set to take over from outgoing chairman Richard Broadbent on March the 1st.
Outgoing chairman Richard Broadbent will step down from the board on the same date.
Allan brings experience from a number of industries to the beleaguered retailer.
Broadbent, outgoing chairman, said: “I am delighted that John has agreed to join us and take on the role of chairman of the board. I am sure that his wide expertise, his experience and his personal qualities will contribute greatly to the future of the group.”
Patrick Cescau, senior independent director at Tesco, said: “Following a deep and thorough process run by a committee of independent non-executive directors, the board unanimously agreed that John Allan was the right candidate to chair Tesco at this important time.
“On behalf of the board I would like to thank Richard for his work as chairman. He has served the business with unflinching commitment through a period of unprecedented change, and put in place a new senior leadership team for the next stage of Tesco’s development.”
Allan added: “I’m very pleased to be taking on this role at such a critical moment for the business and look forward to working with the new executive team and the board.”
Who is John Allan?
Allan’s early career was with Lever Bros and Bristol-Myers in a variety of marketing roles. He then spent eight years at Fine Fare, a subsidiary of ABF, before serving as divisional CEO at BET for nine years.
He became CEO of Ocean Group in 1994, and then of logistics firm Exel when Ocean Group merged with NFC in 2000. Exel was acquired by Deutsche Post in 2005, and Allan joined the board of Deutsche Post to manage the integration, and subsequently the new logistics division. In 2007 he was invited to become CFO of Deutsche Post – a post he held until his retirement and return to the UK in 2009.
From there, he became chairman of Dixons Retail in September 2009. The retailer merged with Carphone Warehouse in August 2014 to form Dixons Carphone, and Allan is currently a deputy chairman and SID of the new company, as well as chairman of housing developer Barratt Developments and chairman of payment processing company Worldpay.
Following his appointment to the Tesco board, Allan will step down from the boards of Dixons Carphone and Royal Mail. He will be resigning with immediate effect from his role as a senior advisor to Alix Partners, and he will step down as chair of the DHL UK Foundation as soon as a successor is found, which is anticipated to be within three months.
He is expected to continue in his other roles as chairman of Barratt Developments and WorldPay.
Allan will be paid a fee of £650,000 per annum at Tesco, fixed for three years, inclusive of all board fees.
Supermarket confirms it will speak during the conference session about multiple retail supply chains
Tesco will be speaking at this year’s UK Fruit & Vegetable Congress – FPJ Live in Warwickshire on the 28th of April.
Britain’s largest supermarket has confirmed it will be sending a senior representative from its agriculture or fresh produce buying team to address the audience during the morning session on multiple retail.
Tesco, which has undergone a period of change in recent months and is implementing a new strategy under chief executive Dave Lewis, will discuss how it sees the evolving supply chain and the development of closer working with growers.
Tesco’s appearance bolsters a strong focus on the rapid evolution of the supply chain at the event, which is set to be the major fresh produce-specific conference in the calendar this year.
Marks & Spencer’s technical manager Johnathan Sutton will give his view on modern supply, while Kantar Worldpanel’s Ed Garner will analyse the rapid rise of the discounters.
Robbie Smith, a retail consultant who until recently was head of fresh commodity trading at Musgrave Retail Partners GB, will also outline what it takes for growers and suppliers to align their businesses to meet modern supermarket needs.
Further speakers will be announced in the coming days.
The event, supported by headline sponsor NFU, takes place at Chesford Grange on April 28. Early bird delegate rates are available now at www.fpjconferences.com
FPJ editor and programme manager Michael Barker said: “This year’s event puts a strong focus on what it takes to succeed in the modern market place. We will be hearing both from the supermarkets themselves and analysts with years of experience in UK retailing. This is an unprecedented opportunity to interact with retailers and retail experts and I’d urge everybody with an interest in the sector to book up early to secure their place.”
UK’s largest retailer continues its year of woes with warning that full-year group profit is £500m less than expected
Tesco has warned that its group trading profit for the full year will not meet expectations, despite already having slashed forecasts earlier this year.
A company statement said that the figure “will not exceed £1.4 billion” for the 12 months to February 2015, already £500million below what was expected by the market.
The retailer has admitted it overstated its half-year profit forecasts by £263m, but in August, and before the accounting irregularities came to light, it had already reduced its full-year forecast from £2.8bn to £2.4bn.
Partner at business analysts Begbies Traynor, Julie Palmer, said despite Lewis’ efforts to rebuild the Tesco brand using price reductions and extra staff hours, the latest profit forecast cut implies bigger problems.
“New CEO Dave Lewis is working hard to rebuild Tesco’s brand with shoppers by investing more in price reductions, short-term promotions and extra staff hours, but today’s profit warning implies more serious woes for the company as it struggles to maintain its leading market share, with UK grocery trading losses expected in the second half of the year,” she said.
“For some time, UK consumers have been voting with their feet, preferring the combination of value and quality provided by Tesco’s smaller peers, and with today’s negative share price reaction, it seems investors too are heading for the checkout.
The news comes as it was announced that Tesco’s suspended head of Group Food Sourcing (GFS), Matt Simister, is to return to his position, while chief executive Dave Lewis will run Tesco UK on a temporary basis..
First marketing campaign following recent signing of direct supply deal with AMC Group offers boost for Spanish fruit
Tesco is promoting Spanish citrus to the general public in London this week, giving away a high volume of fresh oranges to passing commuters at King’s Cross and Waterloo railway stations.
The promotion, organised by London-based PR agency The Little Big Voice, is the first major promotion to be run by the retailer following the recent contract signing of a five-year deal with its major citrus supplier, Murcia-based AMC Group, to form a joint venture direct supply company AMT Fruit.
AMT is now supplying citrus to Tesco on a global basis via the retailer’s international Group Food Sourcing hubs, sourcing and distributing lemons, limes, satsumas, clementines, oranges, tangerines and grapefruit for sale through its various regional businesses.
The partnership is also aiming to deliver new ranges and produce to Tesco customers and the best varieties in the market through AMC’s varietal development and breeding programme, Citrus Genesis.
Speaking at the Eurofruit Congress Southern Hemisphere in Lima on 6 November, AMC chief executive Alvaro Muñoz revealed that around 857ha had already been planted with Citrus Genesis varieties in South Africa, Peru, Spain, Turkey, Israel, Morocco, Australia, Egypt and Chile.
Production of the group’s protected varieties is expected to reach 14,000 tonnes this year and estimated to rise to 45,000 tonnes by 2017, he added.
Sir Richard Broadbent is to step down as Tesco’s chairman after a gross overstatement of profits totalling £263m.
Accountancy firm Deloitte concluded its investigation into Tesco’s interim results, which found total overstatement to be £263m, of which £118m related to the first half of this year, £70m in the 2013-2014 financial year and £75m before 2013.
Sir Richard announced his resignation in a statement: “The issues that have come to light over recent weeks are a matter of profound regret. We have acted quickly to clarify the financial performance of the company. A new management team is in place to address the root causes of the mis-statement and to develop and implement the actions that will build the company’s future. I am confident the new chief executive and chief financial officer will move rapidly and effectively in this respect.
“Once this transition is complete and business plans are in place, it will mark the beginning of a new phase for the company and I will begin now to prepare the ground to ensure an orderly process for my own succession at that time. My decision reflects the important principle of accountability on behalf of the Board and will support the company to draw a line under the past as it enters the next phase of its development.”
In the half-year results, Tesco also reported profit before tax fell to £112m, a 91.9% decrease on the same period last year, while like-for-like sales also fell 4.6%
However newly appointed chief executive Dave Lewis remained optimistic in his response to the results, stating the supermarket needed to focus on the customer to regain trust.
“Our business is operating in challenging times. Trading conditions are tough and our underlying profitability is under pressure. We do, however, face these challenges from a position of market strength and I have been heartened by the team’s welcome and their determination to stay focused on doing the very best for our customers. While my review of the whole business continues, three immediate priorities are clear: to recover our competitiveness in the UK; to protect and strengthen our balance sheet; and to begin the long journey back to building trust and transparency into our business and brand.”