Most food and drink suppliers believe they are spending too much on funding in-store promotions, new research reveals.

A survey of 200 big-name manufacturers by Billetts Marketing Services exclusively for The Grocer found 75% of suppliers believed they were spending either "too much" or "far too much" on promotions. In 2005 just 48% said the same.

The survey also found that 80% of all companies quizzed had generated more than a quarter of their total sales on promotion. Two years ago just 52% were in this position.

Shoppers obsessed with bargains were fuelling the problem, and there was no sign it would ease any time soon, said Ian Fermor, director of promotional services at Billetts. "Retailers are good marketers that know what their consumers want," he said. "If they want aggressive promotions then retailers will ask their suppliers for it.

"Retailers are competing hard with each other and suppliers are inevitably used as pawns in their game."

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