Suppliers in protest over CRS pricing

Co-operative Retail Services claims groceries suppliers are refusing to deal with its Leos, Pioneer and Lo Cost supermarkets in protest at major in-store price cuts.

CRS claims some suppliers of cut-price brands – including Anchor Butter – are either refusing to supply the chain, or are increasing prices on re-orders to stop CRS making continued reductions.

According to CRS, the suppliers taking action have had their products included in the chain’s “Super Six” Low Price Zone promotion. These are six items reduced in rotation even further than the 150 lines included in the year-long promotion. The initiative was launched nationally two months ago.

Anchor Foods claims it has supported the latest promotion, supplying CRS with large volumes of butter. Anchor sales director Mike Darragh says: “We supplied CRS with a very large amount before the promotion. We have a quota on the amount of butter we can import from New Zealand. If we supplied everything CRS wants it would be at the expense of our other customers.”

Anchor’s 500g butter was being sold at 99p between April 8 and 20. It has an average retail price of 1.63.

CRS refuses to identify the other suppliers involved, which include a fresh produce supplier and a major drinks company.

A spokeswoman says there are no plans to axe the “Super Six” campaign because the chain has 18,000 other product lines it can include in the promotion.

David Messom, CRS food division’s buying controller, says: “We will maintain our stance to ensure all our shoppers receive a wide choice of products at a price they can afford.”

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here