News of Christine Tacon’s investigation over Tesco’s treatment of suppliers rumbles on this morning with (The Guardian) publishing a note from ShoreCap analyst Clive Black accusing the Groceries Adjudicator of being guilty of “self-preservation” rather than tackling unfair treatment in the food chain.
Tesco was top of Tacon’s list with a “legendary” reputation for tough tactics in driving down prices it pays to suppliers and getting special deals, (The Independent) comment.
Long-serving Asda boss Andy Clarke has also offered some commentary on Tesco along with some advice for ‘Drastic’ Dave Lewis. Tesco’s new chief executive was performing the equivalent of “heart surgery” on the supermarket chain in his bid to revive it, Clarke said. He also likened Tesco’s reliance on vouchers to quantitative easing as he outlined how Asda is plotting to steal market share from the three other major multiples. (The Guardian). (The Times £) reported the Asda chief had questioned the strength of Tesco’s turnaround plan.
A possible £4.3bn US takeover by Ball Corporation of London-listed Rexam to create the world’s biggest drinks can manufacturer gains plenty of coverage with (The Times £) noting it would be certain to trigger scrutiny by competition authorities.
Elsewhere there is plenty of punning to be had as (The Financial Times £) cracks that Rexam popping open the can on the much-rumoured bid sent shares fizzing 27 per cent higher.
The paper’s Lombard column joins in the fun advising a “can-do” Rexam should run with the Ball and delist from the stock market. It notes the Exchange would be “guiltily relieved” to see it go after a “stolid performance” (The Financial Times £).
Rupert Steiner at This is Money reports that former Tesco boss Sir Terry Leahy is cashing in on the rise and rise of discounter B&M – of which he is chairman – through a “secretive deal” where his profits are funnelled through a tax haven (The Daily Mail).
Cost-cutting and efficiencies have cost two of the world’s biggest cigarette makers dearly in the short term as Japan Tobacco and Philip Morris International post falling profits in their final results (The Financial Times £).
Dairy Crest sold enough flavoured milkshakes and cheddar cheese to weather the storm of plunging milk prices, which battered its poorly performing dairy operations in the third quarter (The Financial Times £).
Finally, a light note before entering the weekend as (The Guardian) tells of the latest Coca-cola campaign to be pulled after the drinks giant was tricked into quoting Mein Kampf.
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