Ken Murphy Tesco

Tesco has warned that its profits will be lower this year to give it more wriggle room to cut prices, after rival Asda signalled the start of a potential price war in the fiercely competitive UK supermarket industry (Financial Times). Tesco is now forecasting adjusted operating profits of between £2.7bn and £3bn, compared to £3.13bn in the most recent financial year to the end of February (Telegraph). Britain’s biggest grocer said it was deepening an existing drive to cut costs to help offset higher operating costs (Guardian). CEO Ken Murphy (pictured above) refused to rule out further job losses, saying it “would be naive” to do so (Sky). Clive Black, an analyst at Shore Capital, said Tesco was “getting the knuckle-duster out” (Times).

Barry Callebaut’s stock tumbled almost 20% to a 12-year low yesterday (10 April) after the world’s biggest chocolatier revised down its sales forecast for the year, citing “unprecedented volatility” in the cocoa market (Financial Times). The Swiss business is planning to increase its US production to fend off effects of the “disruptive environment” in North America and stay close to its customers (Reuters)

Consumer tolerance for soaring coffee prices is at breaking point, the chief executive of Italian coffee roaster Lavazza, Antonio Baravalle, has warned as he blamed the growing cost of the commodity on speculation in financial markets (Financial Times).

In the US, retailers are warning of a cascade of price increases and product shortages as early as this month as a result of Donald Trump’s tariffs (Financial Times).

The boss of Remy Cointreau has quit as the troubled business grapples with tariffs and a tumbling share price. After leading the cognac maker for five years, Eric Vallat said he would leave the French group for another project this summer (Daily Mail).

A leaked document shows the trade body Animal Agriculture Alliance may have been behind a “mud-slinging” PR campaign to discredit a landmark environment study, which recommended cutting global red meat eating by 50% (Guardian).

Penny Mordaunt, the former Conservative cabinet minister, has become a paid adviser to British American Tobacco, provoking criticism from anti-smoking campaigners (Times).

Andrew Rennie, chief executive of Domino’s Pizza Group, admits the runway for growth with store openings will run out “in the next five, ten years” (Times). 

Wagyu beef is overrated, claims Callum Graham, head chef at Bohemia, the only Michelin-starred restaurant in Jersey (Sky).

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