Ross Clark Ross Clark

Tesco finally meets its match

Only in the bizarre, upside-down, post-Brexit referendum world could Tesco try to portray itself as a victim of bullying by one of its suppliers. Isn’t Tesco supposed to be the nasty corporation which ruthlessly uses its might to squash the people who produce the goods which line its shelves? What about all those farmers, dairies and small-time cookie-makers apparently given a tough time by hard-nosed buyers at Tesco, who always want everything cheaper and for payment terms to be stretched out ever longer?

I don’t expect anyone to feel sorry for Tesco – I’m certainly not sobbing over my Marmite sandwiches – but the reality is that yes, the supermarket really has met its match. Tesco (market capitalisation £16 billion) is a tiddler compared with Unilever (£46 billion). Unilever has reportedly demanded a 10 per cent rise in the wholesale price for its products because it knows it can.

Comments

Join the debate for just $5 for 3 months

Be part of the conversation with other Spectator readers by getting your first three months for $5.

Already a subscriber? Log in