Issue 1   < Cover page TOP STORY & ANALYSIS In NPD, More Is More FMCG NEWS UPDATE Supermarket Labelling Misleading Co-Op CEO Targets Big Four Divine Chocolate MD Honoured In New Year's List Nestle's Mantra Remains Onwards And Upwards Food Factories To Close Down The Aisle... Birds Eye's Profits Up Out To Launch... Wosits New Flavour Supermarket News... Every Little Bit Helps- Tesco's Price Cuts Beverage Bulletin... GlenDronach Distillery Defies Economic Downturn Healthy New Year! RETAIL Up The High Street... M&S To Close Stores Green Room... Reckitt Benckiser Launches Major Carbon Initiative MARKETING Sales & Marketing... Brains Need Water From Britvic Movers & Groovers... New Marketing Director For Whyte & Mackay CLICK AWAY Internet Retailing... 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Every Little Bit Helps- Tesco's Price Cuts Tesco, The Co-operative Group, Tesco, Sainsbury's Asda strong Christmas, Waitrose, Asda Tesco has announced it will invest £100m in permanent price cuts and promotions on over 3,000 staple products, building on an investment of £100m already announced in the period between Christmas and New Year. "This year the cost of shopping will be more important to customers than it has ever been," Tesco Commercial and Marketing Director Richard Brasher said. Discounts include three packs of meat for £10 and three Hovis loaves for £3. The announcement precedes the launch of a new advertising campaign from Tesco that will compare the prices of a basket of goods across different retailers. The Co-operative Group, the country's biggest mutual retailer, saw a 6% rise in underlying sales at its food shops in the three weeks to January 3, it said on Tuesday. Britain's fifth-biggest food retailer, which expects to complete its £1.57 bn  purchase of rival Somerfield in the first quarter of this year, said like-for-like sales excluding fuel were up 5.2% in the 13 weeks to Jan 3, the last quarter of its financial year. "These results represent a good trading performance from our food business in an increasingly competitive market place and a difficult economic climate," Chief Executive Peter Marks said in a statement. Tesco is under the microscope for using cheap deals on alcohol as “bait” for luring in punters. One of two separate investigations facing the supermarket concerns claims Tesco ran special offers while failing to ensure it had enough stock to meet demand Sainsbury's plans to expand the number of its low-cost "Basics" products to 630, with half of them priced at £1 or less Asda claims it had enjoyed a strong Christmas, with 1.3 million more shoppers being served in the week before Christmas and a record trading day on December 23. In the week before Christmas, eight stores recorded sales of over £4m compared to six in 2007, and 47 managed over £3m compared to 41 the year before. Waitrose weekly sales jumped to £111.29m as the supermarket had its strongest ever day of trading just before December 25, John Lewis Partnership said. In the wake of a wave of retailing collapses around Christmas, Asda said it would cut prices on 1,000 lines across its stores –Birds Eye chicken grills will be cut from £2.49 to £1 while Herbal Essences shampoo will also cost £1 against a previous price tag of £1.98 – to help shoppers “make ends meet” in 2009.Asda said it would fund price cuts through cost savings. It promised to sell 200 health and beauty lines at £1 each. The move could herald a price war between chains battling for business. More on this story [PRINTER FRIENDLY VERSION] Published by diane@emailgatherers.co.uk - FMCGenews Copyright © 2009 FMCG. All rights reserved.

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