Morrisons has issued a writ against the OFT accusing it of libel, which could result in a multimillion pound claim for damages. According to the Daily Mail, Morrisons has claimed the competition watchdog wrongly named it last September in relation to an investigation into milk price-fixing. It has decided to pursue the OFT because of damage to its reputation, said the paper.

Diet drinks may cause weight gain rather than weight loss, a study by researchers at Perdue University in Indiana has claimed. Authors Susan Swithers and Terry Davidson said artificial sweeteners made it harder for people to regulate food intake and would lead to over-eating, explaining why obesity levels and the use of artificial sweeteners had risen simultaneously.

Nestlé Rowntree is bringing back the blue Smartie it axed three years ago. The Mirror reported that Nestlé would use a natural dye from spirulina, an algae, to recreate the E133 brilliant blue colour. The paper compared the comeback with that of pop band Take That.

Sausage manufacturer Cranswick Foods took a "hammering" after it announced rising material costs would hit its full-year outcome by £1.8m, according to the FT. The company, which supplies Sainsbury's Taste the Difference, had been attempting to negotiate more favourable terms with its retail customers to offset rising costs.

Food producers across the country would see a surge in demand for ingredients sanctioned by Delia Smith in her latest bestseller, Delia's How to Cheat at Cooking, predicted The Observer. The book, published yesterday, recommended dozens of products for making quick and easy meals. Aunt Bessie's instant mashed potato, Marigold bouillon and M&S roasted red & yellow peppers were among the products expected to be big sellers.