Waitrose is to license the Duchy Originals brand as a 500-strong super-premium range that will see the retailer adopt a three-tier product strategy for the first time.
Under the terms of the deal, the Prince of Wales’ food brand - which has seen profits plummet over the past two years - will close its office in Richmond and halt supply of Duchy products to all other supermarkets.
The move will help Duchy slash its operational costs, which for the year to March 2008 rose to £4m, while the Prince’s charities will receive a royalty payment for each product sold.
Duchy Originals chief executive Andrew Baker will be given an office in the Prince of Wales’ official residence, Clarence House, while all other Duchy staff will be transferred to the Waitrose head office in Bracknell.
Waitrose chief executive Mark Price described the deal as “the last piece of the puzzle” in Waitrose’s product strategy, following the introduction of the budget range Essential Waitrose earlier this year.
Read this Saturday's edition of The Grocer for a full report and analysis.