The surprise landmark supply deal agreed by McColl’s and Morrisons is in the spotlight in today’s papers. The Telegraph writes that Morrisons is bringing back Safeway as part of the wholesale deal, which spells further trouble for wholesalers Palmer & Harvey and Nisa. McColl’s partnership with Morrisons will bring an end its relationship with Nisa and Palmer & Harvey, The Times adds. The loss of the contract could be difficult for Palmer & Harvey, which has had to refinance and is looking to raise cash in a competitive market, the paper says. The Mail puts the value of the contract at £1bn and says the agreement angered rival chains, who had hoped to secure the lucrative deal. It quotes Nisa CEO Nick Read as saying: “We are disappointed that the tender process has been halted nine weeks early – before there had been a chance for follow up conversations and proposals, especially when sales at Nisa-supplied McColl’s stores were 8.4% ahead of budget.”
Another strong set of Greggs (GRG) results put the food-on-the-go chain in focus, particularly its plans to open more drive-through stores. The move comes after the business was encouraged by the popularity of the first drive-through it opened in June (The Telegraph). The Financial Times adds that Greggs was also considering expansion into home delivery and hospital shops, alongside more drive-throughs, as it announced that its push into healthier foods had boosted first-half revenues. “It’s all about convenience and the most convenient thing is not having to get out of your car,” The Guardian reports Greggs CEO Roger Whiteside as saying. “You can just drive up and order a coffee, sausage roll or doughnut.”
British American Tobacco is under formal investigation by the UK’s Serious Fraud Office over claims that it bribed officials in east Africa to undermine anti-smoking laws (The Financial Times). The misconduct allegations were first made by the BBC’s Panorama in December 2015, which broadcast claims by whistleblower Paul Hopkins, who had worked for the tobacco company in Kenya. Describing his role as that of “a commercial hitman”, he told the programme: “BAT is bribing people and I’m facilitating it.” (The Times).
Investors including Bill Gates, Li Ka-shing and a Facebook founder are backing a new $75m fundraising round by Impossible Foods, a Silicon Valley company that is developing plant-based alternatives to meat, starting with juicy burgers that look like beef (The Financial Times).
Procter & Gamble told shareholders that Nelson Peltz, owner of activist investor Trian Fund Management who is seeking a seat on P&G’s board, has a “fundamental misunderstanding” of the company and is basing opinions on “outdated information” and unreliable sources, The Financial Times writes.
Costco co-founder and chairman Jeff Brotman died early Tuesday morning, the company announced (The Financial Times).
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