Sir; The sale of Somerfield is the latest major step in the consolidation of the grocery market ('Asda tipped to buy Somerfield for £2bn', The Grocer, 19 January, p4).

Speculation suggests that bidders are three of the existing big four grocery retailers. We have taken this matter up with the Competition Commission and have warned about the repercussions of further acquisitions in the UK grocery market.

It is this ongoing consolidation of the market into the hands of so few companies that reduces the opportunity for businesses to enter and grow in the market. The lack of choice and diversity this presents is a major blow to consumer interests.

The competition authorities should not allow Somerfield to be sold to one of the existing big four retailers as this will further entrench their dominance of the market. Nor should the authorities allow a fire sale whereby hundreds of shops are sold to the existing dominant retailers. The end result of either is poorer prospects for healthy competition in the long term and reduced choice.

As the grocery market inquiry nears its conclusion, this development must make the commission take a long hard look at its work so far and realise that now is the time to act. If the investigation does not make it possible for other companies to compete and survive in the UK grocery market, it has failed

consumers.

Being green is about more than bag use Sandra Bell Supermarkets campaigner, Friends of the Earth



Sir; We were bombarded with 'green' promises from all the major supermarkets on every issue from plastic bags to air freight last year.

However, 2008 did not get off to a very good start with The Grocer 33 online survey showing that supermarket are using more plastic bags than before for their online deliveries ('G33 finds online services are using even more plastic bags', The Grocer, 12 January, p5).

Many customers will be disappointed to find that one of the most visible, and straightforward, commitments is not being delivered on. But there is a bigger point here, too. How are shoppers to judge the supermarkets' real environmental performance against their claims when the issue is more complex than counting plastic bags?

While supermarkets claim to be making their own transport operations more efficient to reduce emissions, the number of car-based shopping trips is growing rapidly as the supermarkets continue to develop giant out-of-town stores. This is set to get worse if the big stores get their way and planning rules are relaxed to allow even more new outlets to be built outside town centres.

Vegan labels would be good for business Nigel Winter CEO, The Vegan Society



Sir; In your 12 January issue, The Grocer published a comment on rennet in Mars chocolate products that was attributed in error to The Vegan Society ('Mars still using rennet in choc bars', The Grocer, 12 January, p5).

We would like to clarify that no Mars chocolate products are suitable for vegans. Vegans eat a plant-based diet with no meat, dairy, eggs, honey or any other product from living or dead animals.

However, the Vegan Society does call for all animal products used in food manufacture to be clearly listed on packaging. A policy of clearly stating 'Suitable for vegans', 'Suitable for vegetarians' or 'Not suitable for vegans' would be great for customers and good for business.

Manufacturers can also register to use our Sunflower Trade Mark logo on suitable products.

Editor's comment: The comment was taken from an interview with the North East Vegan Society. Apologies for any confusion.



Look at automation in the longer term Andy Keith Founding partner, Total Logistics



Sir; Logistics managers in the retail sector are often criticised for putting too much focus on the technology involved in warehouse automation and not enough on the strategy of their business ('Sainsbury's tears it out and starts again,' The Grocer, 19 January, p31).

In our experience this is not usually the case. Recent projects we have carried out with some of the biggest names in retailing suggest that while most businesses go into warehouse automation projects with their eyes wide open, problems occur further down the line. Typically, issues only come to the fore once capital expenditure is approved and the implementation stage of the project is reached.

We see major automation projects go awry for two reasons. Either the senior team delegates responsibility too far down the business to operational managers or the business undergoes a major change that was never anticipated.

Once an automation project has been given the green light, the ongoing responsibility is passed on to the operations team, which is assigned a budget to negotiate with suppliers. This is usually where problems start as equipment vendors are well-versed at highlighting the merits of their respective systems. This is the stage of the project that needs serious due diligence but rarely gets it.

It's here that a cynical eye is needed to evaluate the true benefit of each solution and how it will bring tangible benefits to the supply chain. Businesses need to take a long-term view of the project with rigorous analysis of the benefits and limitations of any proposal.

They should also think carefully about the future direction of their business and how the equipment can flex to accommodate changing market demands.

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