Tesco is mulling the launch of “Finest” upmarket convenience stores to compete with Marks and Spencer’s Simply Food stores. It mooted the idea to analysts and investors at its capital markets day. It suggested the format could generate about 7% operating margin – twice as much as Tesco is making as a whole Financial Times (£). The Times (£) says the concept is believed to be at an early stage and a trial is not thought to be imminent. The Mail says the retailer showed an illustration depicting a store with the Tesco Finest banner over its doors and its premium products on display, alongside a café with indoor and outdoor seating. Tesco also revealed it was testing a delivery robot.

The Guardian, which also reports on the two initiatives, says that Tesco claimed a tenfold increase in plant-based ready meals would contribute towards growth at the group. The newspaper also reports that Tesco said there was still room for it to open more small stores including more than 100 One Stops. The article says Tesco is aiming to eventually increase Booker’s sales by £2.5bn from the current £6bn. It will do this partly by adding services for its clients including online ordering finance and phone contracts. 

John Lewis Partnership has launched a new service to make online shopping more convenient by allowing shoppers to send back items bought either on its website or via click and collect via Waitrose drivers after delivering online grocery orders (The Telegraph). The initiative, launched on Monday, comes as retailers scramble to simplify an often complex returns process that remains a barrier for some people to online shopping (The Mail). It could also act as an incentive for shoppers to buy their groceries from Waitrose.com.

Sainsbury’s says it has cut prices on more than a thousand household staples after it hit back at claims earlier this month that it hiked prices on about 500 own-brand goods in the wake of the “humiliating” collapse of its merger with Asda (The Daily Mail). It said it had cut prices on the likes of semi-skimmed milk, tomatoes, potatoes, cheddar, toilet roll and strawberries since February.

Scottish vertical farm technology start-up Intelligent Growth Solutions has raised £5.4m from US investors. It says it can cut power usage by up to half in answer to critics of vertical farms’ sustainability. It has patented a technology that reduces energy use and costs (Financial Times £).

Experts will raise their objections today at a House of Lords hearing to an EU proposal to restrict the use of words like “sausage” and “burger” to foods that contain meat (BBC). It would mean vegetarian and vegan variants would have to be given names such as “vegetable tubes” or “veggie discs”. The British Meat Processors Association approves of the idea, believing it will add clarity. The National Farmers Union, supports the plan but with caveats.

Forget the hype surrounding the Luckin Coffee chain – China prefers tea to coffee, says the Financial Times (£). Chinese consumers are drinking more tea than ever, including fruit and bubble tea. Food delivery app Meituan Dianping says tea order increased 24-fold between 2016 and 2018 whereas coffee orders rose 10-fold.

China has decided to block pork imports from a third Canadian business – Frigo Royal Inc after a shipment was found to contain ractopamine, a banned feed additive (Reuters). It follows the halting of imports from Olymel LP and Drummon Export in April because of labelling issues. It has also blocked canola imports.

Lux Management & Investment Group, increased revenues to 9.3% to £27.4m in the year to August 2018 Evening Standard. Pre-tax profits fell £300,000 to £1.6m. It owns Caffe Concerto, which has taken on nine sites once occupied by Patisserie Valerie.

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