There is growing disquiet in the meat supply chain about what appears to be a beef price war between the UK’s two largest grocers, Tesco and Asda.
Of particular concern to farmers is the intensity of competition on minced beef which accounts for about 45% of all fresh beef sales.
Data gathered by The Grocer 33 shopping survey shows that in the seven days after October 11 both Tesco and Asda dropped the price of their cheapest own label fresh lean beef steak mince from £3.26/kg to £2.76/kg, where it remained as we went to press.
Equivalent prices in Sainsbury and Morrisons were £3.86 and £2.85 respectively.
Neither Asda nor Tesco
denied they were engaged in a price war, but nor would they comment in detail on the cuts.
An Asda spokeswoman said: “We were reacting to competitive price changes and have no plans to move further downward.” And a spokesman for Tesco said: “As always our focus is on the customer. We have lowered our beef prices, reflecting our commitment to offering the best value available.”
The battle on the beef fixture prompted the Meat and Livestock Commission to run its own analysis of how prices had fallen in the two retailers’ stores since the summer.
Richard Lowe, marketing director, said it wasn’t only in minced beef that competition was fierce. “There were also price cuts on rump and sirloin steaks in September and October,” he said, adding: “The price war is destroying value in the beef category at a time when it is buoyant and doesn’t need stimulation through reductions.”
Lowe blamed both retailers, saying Tesco had taken the lead on steak, while Asda showed the way on minced beef.
The National Beef Association chairman Robert Robinson said the two retailers were “risking domestic supply security”.
Richard Clarke
Of particular concern to farmers is the intensity of competition on minced beef which accounts for about 45% of all fresh beef sales.
Data gathered by The Grocer 33 shopping survey shows that in the seven days after October 11 both Tesco and Asda dropped the price of their cheapest own label fresh lean beef steak mince from £3.26/kg to £2.76/kg, where it remained as we went to press.
Equivalent prices in Sainsbury and Morrisons were £3.86 and £2.85 respectively.
Neither Asda nor Tesco
denied they were engaged in a price war, but nor would they comment in detail on the cuts.
An Asda spokeswoman said: “We were reacting to competitive price changes and have no plans to move further downward.” And a spokesman for Tesco said: “As always our focus is on the customer. We have lowered our beef prices, reflecting our commitment to offering the best value available.”
The battle on the beef fixture prompted the Meat and Livestock Commission to run its own analysis of how prices had fallen in the two retailers’ stores since the summer.
Richard Lowe, marketing director, said it wasn’t only in minced beef that competition was fierce. “There were also price cuts on rump and sirloin steaks in September and October,” he said, adding: “The price war is destroying value in the beef category at a time when it is buoyant and doesn’t need stimulation through reductions.”
Lowe blamed both retailers, saying Tesco had taken the lead on steak, while Asda showed the way on minced beef.
The National Beef Association chairman Robert Robinson said the two retailers were “risking domestic supply security”.
Richard Clarke
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